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

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

UNITED STATES

SECURITIES AND EXCHANGE COMMISSION

Washington, DC 20549

FORM N-CSR

CERTIFIED SHAREHOLDER REPORT OF REGISTERED

MANAGEMENT INVESTMENT COMPANIES

Investment Company Act file number 811-23124

Franklin Templeton ETF Trust

(Exact name of registrant as specified in charter)

One Franklin Parkway, San Mateo, CA 94403-1906

(Address of principal executive offices) (Zip code)

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: 650 312-2000

Date of fiscal year end: 3/31

Date of reporting period: 03/31/21

Item 1.

Reports to Stockholders.

ANNUAL REPORT

FRANKLIN TEMPLETON

ETF TRUST

March 31, 2021

LOGO


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



Contents

Annual Report

Economic and Market Overview			2
Franklin LibertyQ Emerging Markets ETF			3
Franklin LibertyQ Global Dividend ETF			10
Franklin LibertyQ Global Equity ETF			16
Franklin LibertyQ International Equity Hedged ETF			23
Financial Highlights and Statements of Investments			30
Financial Statements			67
Notes to Financial Statements			71
Report of Independent Registered Public Accounting Firm			83
Tax Information			84
Board Members and Officers			85
Shareholder Information			88

Visit franklintempleton.com for fund updates and documents, or to find helpful financial planning tools.


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



franklintempleton.com	Annual Report	1

ANNUAL REPORT

Economic and Market Overview

Global developed and emerging market equities, as measured by the MSCI All Country World Index-NR (net of taxes on dividends), advanced strongly during the 12 months ended March 31, 2021. Following sharp declines in early 2020 amid the onset of the novel coronavirus (COVID-19) pandemic, global equities began to rebound in the spring amid monetary and fiscal stimulus measures, easing lockdown restrictions, and vaccine and treatment development. Stocks declined again in September and October, due to geopolitical tensions and rising infection rates, but began to rebound in November as successful trials of COVID-19 vaccines, the start of vaccination programs and expectations for additional fiscal stimulus led many equity markets to reach new highs. Indications of economic recovery in many countries also helped drive stocks higher.

In the U.S., equities rallied following the initial shock of pandemic-related restrictions and mass layoffs, which pushed the unemployment rate to 14.8% in April 2020.¹ Equities began to rebound in the spring amid the government’s fiscal and monetary stimulus measures, partial economic reopening, rising retail sales and optimism about treatments and potential vaccines for COVID-19. Following a record annualized decline in the second-quarter 2020 gross domestic product (GDP), resilient consumer spending helped drive the third-quarter GDP to expand at a record annualized rate, although growth slowed in the fourth quarter. Equities continued to rise during the summer but declined in the fall due to concerns about possible new restrictions amid rising COVID-19 infection rates and uncertainties about additional fiscal stimulus and the U.S. presidential election. Investor sentiment improved beginning in November following the outcome of the U.S. presidential election, the start of COVID-19 vaccination programs and the passage of a new U.S. stimulus bill. The U.S. economy’s continued recovery, with the unemployment rate ending the period at 6.0%, helped drive U.S. equities, as measured by the Standard & Poor’s^® 500 Index, to reach all-time price highs in March 2021.¹

The U.S. Federal Reserve (Fed) kept the federal funds target rate at a record-low range of 0.00%–0.25% and continued its

program of open-ended bond purchases to help keep markets functioning. Furthermore, the Fed reiterated that interest rates would potentially remain low, even if inflation moderately exceeded the Fed’s 2% target.

In the eurozone, economic recovery remained uneven, as growth resumed in the third quarter of 2020 but contracted in the fourth quarter. GDP growth rates varied widely among the region’s largest economies amid renewed lockdowns and delays in COVID-19 vaccine distribution. Germany’s and Spain’s GDP expanded modestly in the fourth quarter, while France’s contracted. Despite investor concerns about rising infection rates and a slow vaccination rollout, general optimism that successful vaccine programs would lift global growth, along with a Brexit resolution, contributed to strong gains for European developed market equities, as measured by the MSCI Europe Index-NR.

Asian developed and emerging market equities, as measured by the MSCI All Country Asia Index-NR, advanced sharply for the period. China, a key driver of regional economies, began to recover in the second quarter of 2020 and was the only major global economy to post positive GDP growth for full-year 2020 amid strong manufacturing gains. Despite paring gains in March 2021, Asian equity markets finished the period sharply higher amid optimism that economic revitalization would be further spurred by COVID-19 vaccines.

Global emerging market stocks, as measured by the MSCI Emerging Markets Index-NR, also rose significantly for the period. Improving economic activity, stabilizing oil prices and U.S. dollar weakness supported emerging market equities. Despite higher COVID-19 cases in some countries, emerging market stocks rallied amid easing political uncertainty, commencement of COVID-19 vaccinations and rising commodity prices.

The foregoing information reflects our analysis and opinions as of March 31, 2021. 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: U.S. Bureau of Labor Statistics.

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



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Franklin LibertyQ Emerging Markets ETF

This annual report for Franklin LibertyQ Emerging Markets ETF covers the fiscal year ended March 31, 2021.

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 12-month period, the Fund posted cumulative total returns of +44.24% based on market price and +42.57% based on net asset value (NAV). In comparison, the LibertyQ EM Index-NR posted a +43.27% total return for the same period, while the MSCI EM Index-NR posted a +58.39% 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 recent month-end performance, go to franklintempleton.com or call (800) 342-5236.


Geographic Composition*

3/31/21

	% of Total Net Assets
Asia		67.2%
Europe		13.3%
Middle East & Africa		11.2%
Latin America & Caribbean		8.0%
North America		0.1%
Short-Term Investments & Other Net Assets		0.1%

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

Investment Strategy

The Fund, using a passive or indexing investment approach, seeks investment results that closely correspond, before fees and expenses, to the performance of the LibertyQ 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 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. They do not reflect any fees, expenses or sales charges. One cannot invest directly in an index. Net Returns (NR) include income net of tax withholding when dividends are paid.

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 31.



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FRANKLIN LIBERTYQ EMERGING MARKETS ETF


Top 10 Sectors/Industries

3/31/21

	% of Total Net Assets
Banks		13.4%
Oil, Gas & Consumable Fuels		10.0%
Metals & Mining		8.8%
Diversified Telecommunication Services		4.7%
Semiconductors & Semiconductor Equipment		4.5%
IT Services		4.2%
Wireless Telecommunication Services		4.2%
Food Products		3.9%
Technology Hardware, Storage & Peripherals		3.9%
Beverages		3.6%


Top 10 Holdings

3/31/21

Company *Sector/Industry, Country*	% of Total Net Assets
Vale SA Metals & Mining, Brazil		1.3%
Country Garden Services Holdings Co. Ltd. Commercial Services & Supplies, China		1.3%
Al-Rajhi Bank Banks, Saudi Arabia		1.2%
Infosys Ltd. IT Services, India		1.2%
Novatek Microelectronics Corp. Ltd. Semiconductors & Semiconductor Equipment, Taiwan		1.2%
LUKOIL PJSC Oil, Gas & Consumable Fuels, Russia		1.2%
Gazprom PJSC Oil, Gas & Consumable Fuels, Russia		1.2%
Tata Consultancy Services Ltd. IT Services, India		1.1%
HCL Technologies Ltd. IT Services, India		1.1%
NetEase Inc. Entertainment, China		1.1%


Top 10 Countries

3/31/21

	% of Total Net Assets
China		27.2%
India		12.8%
Taiwan		12.3%
Russia		11.3%
South Korea		8.3%
Brazil		4.1%
Saudi Arabia		4.1%
South Africa		3.7%
Mexico		2.7%
Indonesia		2.1%

Manager’s Discussion

For the fiscal year ended March 31, 2021, individual holdings that lifted the Fund’s absolute return included Taiwan Semiconductor Manufacturing Co., Infosys and HCL Technologies. Individual holdings that hindered the Fund’s absolute return included China Mobile, Top Glove and China Minsheng Banking.

The Fund’s research-based selection process focuses on four investment factors: value, quality, momentum and low volatility. Of the four target-style factors, low volatility significantly detracted from the Fund’s relative performance for the reporting period, while value and quality also detracted. In contrast, the momentum factor was a marginal contributor to the Fund’s relative return.



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FRANKLIN LIBERTYQ EMERGING MARKETS ETF

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

Dina Ting, CFA

Hailey Harris

Portfolio Management Team

The foregoing information reflects our analysis, opinions and portfolio holdings as of March 31, 2021, 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 March 31, 2021

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

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

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

Performance as of 3/31/21¹

Cumulative Total Return²

Average Annual Total Return²

Based on

NAV³

Based on

market price⁴

Based on

NAV³

Based on

market price⁴

1-Year

+42.57%

+44.24%

+42.57%

+44.24%

3-Year

+4.76%

+3.60%

+1.56%

+1.19%

Since Inception (6/1/16)

+40.35%

+40.65%

+7.27%

+7.32%

See page 8 for Performance Summary footnotes.



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FRANKLIN LIBERTYQ EMERGING MARKETS ETF

PERFORMANCE SUMMARY

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

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

6/1/16–3/31/21

LOGO

See page 8 for Performance Summary footnotes.



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FRANKLIN LIBERTYQ EMERGING MARKETS ETF

PERFORMANCE SUMMARY

Distributions (4/1/20–3/31/21)

Net Investment
Income

$0.805252

Total Annual Operating Expenses⁶

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 Rule 12b-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) other non-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. Source: FactSet. 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. The NR or Net Dividends Index reflects the deduction of withholding taxes on reinvested dividends.

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

See www.franklintempletondatasources.com for additional provider information.



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FRANKLIN LIBERTYQ EMERGING MARKETS ETF

Your Fund’s Expenses

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

Actual Fund Expenses

The table below provides information about actual account values and actual expenses in the columns under the heading “Actual.” In these columns the Fund’s actual return, which includes the effect of Fund expenses, is used to calculate the “Ending Account Value.” 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 10/1/20		Ending Account Value 3/31/21		Expenses Paid During Period 10/1/20–3/31/21^1,2		Ending Account Value 3/31/21		Expenses Paid During Period 10/1/20–3/31/21^1,2		Net Annualized Expense Ratio²
	$1,000.00	$	1,223.20	$	2.49	$	1,022.69	$	2.27		0.45	%

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

2. Reflects expenses after fee waivers and expense reimbursements.



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Franklin LibertyQ Global Dividend ETF

This annual report for Franklin LibertyQ Global Dividend ETF covers the fiscal year ended March 31, 2021.

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 12-month period, the Fund posted cumulative total returns of +47.12% based on market price and +47.20% based on net asset value (NAV). In comparison, the LibertyQ Global Dividend Index-NR posted a +47.09% total return for the same period, while the MSCI ACWI ex REITs Index-NR posted a +55.12% 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.


Geographic Composition*

3/31/21

	% of Total Net Assets
North America		49.3%
Europe		21.7%
Asia		16.7%
Australia & New Zealand		5.7%
Middle East & Africa		4.6%
Latin America & Caribbean		1.7%
Short-Term Investments & Other Net Assets		0.3%

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

Investment Strategy

The Fund, using a passive or indexing investment approach, seeks investment results that closely correspond, before fees and expenses, to the performance of the LibertyQ Global 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 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 41.



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FRANKLIN LIBERTYQ GLOBAL DIVIDEND ETF


Top 10 Sectors/Industries

3/31/21

	% of Total Net Assets
Banks		15.5%
Pharmaceuticals		9.4%
Insurance		8.4%
Semiconductors & Semiconductor Equipment		6.1%
Tobacco		5.0%
IT Services		4.1%
Diversified Telecommunication Services		3.8%
Machinery		3.8%
Capital Markets		3.8%
Household Products		3.6%


Top 10 Holdings

3/31/21

Company *Sector/Industry, Country*	% of Total Net Assets
Unilever PLC Personal Products, United Kingdom		3.4%
Altria Group Inc. Tobacco, United States		2.3%
Cisco Systems Inc. Communications Equipment, United States		2.3%
The Toronto-Dominion Bank Banks, Canada		2.3%
Target Corp. Multiline Retail, United States		2.2%
Taiwan Semiconductor Manufacturing Co. Ltd. Semiconductors & Semiconductor Equipment, Taiwan		2.2%
Emerson Electric Co. Electrical Equipment, United States		2.2%
Royal Bank of Canada Banks, Canada		2.1%
Commonwealth Bank of Australia Banks, Australia		2.1%
Philip Morris International Inc. Tobacco, United States		2.1%


Top 10 Countries

3/31/21

	% of Total Net Assets
United States		42.6%
Japan		8.3%
United Kingdom		7.5%
Switzerland		6.9%
Canada		6.7%
Australia		5.3%
Finland		2.9%
Taiwan		2.8%
Germany		2.6%
Singapore		2.5%

Manager’s Discussion

For the fiscal year ended March 31, 2021, individual holdings that lifted the Fund’s absolute return included Taiwan Semiconductor Manufacturing Co., Macquarie Group and United Parcel Service. Individual holdings that hindered the Fund’s absolute return included Tryg, SATS and Lawson.

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

Dina Ting, CFA

Hailey Harris

Portfolio Management Team



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FRANKLIN LIBERTYQ GLOBAL DIVIDEND ETF

Performance Summary as of March 31, 2021

Performance as of 3/31/21¹

Cumulative Total Return²

Average Annual Total Return²

Based on
NAV³

Based on
market price⁴

Based on
NAV³

Based on
market price⁴

1-Year

+47.20%

+47.12%

+47.20%

+47.12%

3-Year

+30.51%

+29.72%

+9.28%

+9.06%

Since Inception (6/1/16)

+53.20%

+53.17%

+9.23%

See page 14 for Performance Summary footnotes.



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FRANKLIN LIBERTYQ GLOBAL DIVIDEND ETF

PERFORMANCE SUMMARY

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

6/1/16–3/31/21

LOGO

See page 14 for Performance Summary footnotes.



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FRANKLIN LIBERTYQ GLOBAL DIVIDEND ETF

PERFORMANCE SUMMARY

Distributions (4/1/20–3/31/21)

Net Investment
Income

$0.895677

Total Annual Operating Expenses⁶

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.

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

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

4. Assumes reinvestment of distributions based on market price.

5. Source: FactSet. 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. The NR or Net Dividends Index reflects the deduction of withholding taxes on reinvested dividends.

See www.franklintempletondatasources.com for additional provider information.



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FRANKLIN LIBERTYQ GLOBAL DIVIDEND ETF

Your Fund’s Expenses

Actual Fund Expenses

Hypothetical Example for Comparison with Other Funds


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

Beginning Account Value 10/1/20		Ending Account Value 3/31/21		Expenses Paid During Period 10/1/20–3/31/21^1,2		Ending Account Value 3/31/21		Expenses Paid During Period 10/1/20–3/31/21^1,2		Net Annualized Expense Ratio²
	$1,000.00	$	1,210.70	$	2.48	$	1,022.69	$	2.27		0.45	%

2. Reflects expenses after fee waivers and expense reimbursements.



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Franklin LibertyQ Global Equity ETF

This annual report for Franklin LibertyQ Global Equity ETF covers the fiscal year ended March 31, 2021.

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 12-month period, the Fund posted cumulative total returns of +45.36% based on market price and +44.55% based on net asset value (NAV). In comparison, the LibertyQ Global Equity Index-NR posted a +44.39% total return for the same period, while the MSCI ACWI-NR posted a +54.60% total return.² You can find more of the Fund’s performance data in the Performance Summary beginning on page 19.


Geographic Composition*

3/31/21

	% of Total Net Assets
North America		58.2%
Asia		17.3%
Europe		17.1%
Australia & New Zealand		4.9%
Middle East & Africa		1.2%
Latin America & Caribbean		1.1%
Short-Term Investments & Other Net Assets		0.2%

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

Investment Strategy

The Fund, using a passive or indexing investment approach, seeks investment results that closely correspond, before fees and expenses, to the performance of the LibertyQ Global Equity Index. The investment manager seeks to achieve, over time, a correlation between the Fund’s performance, before fees and expenses, and that of the Underlying Index of 0.95 or better. A figure of 1.00 would indicate perfect correlation. The Fund’s 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 46.



16	Annual Report	franklintempleton.com

FRANKLIN LIBERTYQ GLOBAL EQUITY ETF


Top 10 Sectors/Industries

3/31/21

	% of Total Net Assets
Pharmaceuticals		9.2%
Semiconductors & Semiconductor Equipment		9.0%
Metals & Mining		5.3%
IT Services		4.9%
Biotechnology		4.8%
Software		4.8%
Diversified Telecommunication Services		3.7%
Tobacco		3.2%
Technology Hardware, Storage & Peripherals		3.0%
Banks		2.6%


Top 10 Holdings

3/31/21

Company *Sector/Industry, Country*	% of Total Net Assets
Intel Corp. Semiconductors & Semiconductor Equipment, United States		1.3%
Eli Lilly and Co. Pharmaceuticals, United States		1.2%
Cisco Systems Inc. Communications Equipment, United States		1.1%
Texas Instruments Inc. Semiconductors & Semiconductor Equipment, United States		1.1%
Unilever PLC Personal Products, United Kingdom		1.1%
Taiwan Semiconductor Manufacturing Co. Ltd. Semiconductors & Semiconductor Equipment, Taiwan		1.1%
Accenture PLC, A IT Services, United States		1.1%
Lowe’s Cos. Inc. Specialty Retail, United States		1.0%
Philip Morris International Inc. Tobacco, United States		1.0%
Johnson & Johnson Pharmaceuticals, United States		1.0%


Top 10 Countries

3/31/21

	% of Total Net Assets
United States		55.8%
Japan		6.1%
United Kingdom		5.9%
Australia		4.7%
China		3.6%
Switzerland		3.5%
Canada		2.4%
Taiwan		2.2%
India		2.0%
South Korea		1.8%

Manager’s Discussion

For the fiscal year ended March 31, 2021, individual holdings that lifted the Fund’s absolute return included Taiwan Manufacturing Semiconductor Co., Apple and Lowe’s. Individual holdings that hindered the Fund’s absolute return included Biogen, Gilead Sciences and Vertex Pharmaceuticals.

The Fund’s research-based selection process focuses on four investment factors: value, quality, momentum and low volatility. Of the four target-style factors, low volatility significantly detracted from the Fund’s relative performance for the reporting period, while value and quality also detracted. The momentum factor had no significant impact on the Fund’s relative return.



franklintempleton.com	Annual Report	17

FRANKLIN LIBERTYQ GLOBAL EQUITY ETF

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

Dina Ting, CFA

Hailey Harris

Portfolio Management Team



18	Annual Report	franklintempleton.com

FRANKLIN LIBERTYQ GLOBAL EQUITY ETF

Performance Summary as of March 31, 2021

Performance as of 3/31/21¹

Cumulative Total Return²

Average Annual Total Return²

Based on
NAV³

Based on
market price⁴

Based on
NAV³

Based on

market price⁴

1-Year

+44.55%

+45.36%

+44.55%

+45.36%

3-Year

+36.45%

+37.11%

+10.91%

+11.09%

Since Inception (6/1/16)

+70.78%

+71.12%

+11.72%

+11.76%

See page 21 for Performance Summary footnotes.



franklintempleton.com	Annual Report	19

FRANKLIN LIBERTYQ GLOBAL EQUITY ETF

PERFORMANCE SUMMARY

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

6/1/16–3/31/21

LOGO

See page 21 for Performance Summary footnotes.



20	Annual Report	franklintempleton.com

FRANKLIN LIBERTYQ GLOBAL EQUITY ETF

PERFORMANCE SUMMARY

Distributions (4/1/20–3/31/21)

Net Investment
Income

$0.899661

Total Annual Operating Expenses⁶

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.

5. Source: FactSet. The LibertyQ Global Equity Index is a systematic, rules-based proprietary index that is owned and calculated by MSCI Inc. (MSCI). It is based on the MSCI ACWI Index using a methodology developed with Franklin Templeton to reflect Franklin Templeton’s desired investment strategy. The MSCI ACWI Index is a free float-adjusted market capitalization-weighted index that is designed to measure the equity market performance of developed and emerging markets. The NR or Net Dividends Index reflects the deduction of withholding taxes on reinvested dividends.

See www.franklintempletondatasources.com for additional provider information.



franklintempleton.com	Annual Report	21

FRANKLIN LIBERTYQ GLOBAL EQUITY ETF

Your Fund’s Expenses

Actual Fund Expenses

Hypothetical Example for Comparison with Other Funds


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

Beginning Account Value 10/1/20		Ending Account Value 3/31/21		Expenses Paid During Period 10/1/20–3/31/21^1,2		Ending Account Value 3/31/21		Expenses Paid During Period 10/1/20–3/31/21^1,2		Net Annualized Expense Ratio²
	$1,000.00	$	1,164.70	$	1.83	$	1,023.24	$	1.72		0.34	%

2. Reflects expenses after fee waivers and expense reimbursements.



22	Annual Report	franklintempleton.com

Franklin LibertyQ International Equity Hedged ETF

This annual report for Franklin LibertyQ International Equity Hedged ETF covers the fiscal year ended March 31, 2021.

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 against non-U.S. currency fluctuations by reflecting the impact of rolling monthly currency forward contracts on the currencies represented in the Underlying Index.

Performance Overview

During the 12-month period, the Fund posted cumulative total returns of +29.08% based on market price and +27.54% based on net asset value (NAV). In comparison, LibertyQ International Equity Hedged Index-NR posted a +27.91% total return for the same period, while the MSCI EAFE 100% Hedged to USD Index-NR posted a +37.75% total return.² You can find more of the Fund’s performance data in the Performance Summary beginning on page 26.


Geographic Composition*

3/31/21

	% of Total Net Assets
Europe		54.3%
Asia		29.8%
Australia & New Zealand		15.2%
Middle East & Africa		0.5%
Short-Term Investments & Other Net Assets		0.2%

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

Investment Strategy

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

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 61.



franklintempleton.com	Annual Report	23

FRANKLIN LIBERTYQ INTERNATIONAL EQUITY HEDGED ETF


Top 10 Sectors/Industries

3/31/21

	% of Total Net Assets
Pharmaceuticals		11.7%
Metals & Mining		11.1%
Diversified Telecommunication Services		4.5%
Personal Products		4.3%
Electric Utilities		4.2%
Tobacco		3.6%
Automobiles		3.1%
Food & Staples Retailing		3.1%
Health Care Equipment & Supplies		2.8%
Machinery		2.8%


Top 10 Holdings

3/31/21

Company *Sector/Industry, Country*	% of Total Net Assets
Unilever PLC Personal Products, United Kingdom		3.5%
BHP Group Ltd. Metals & Mining, Australia		2.4%
Rio Tinto PLC Metals & Mining, Australia		2.3%
Toyota Motor Corp. Automobiles, Japan		2.1%
Novo Nordisk AS, B Pharmaceuticals, Denmark		1.9%
Tokyo Electron Ltd. Semiconductors & Semiconductor Equipment, Japan		1.9%
British American Tobacco PLC Tobacco, United Kingdom		1.9%
Novartis AG Pharmaceuticals, Switzerland		1.9%
GlaxoSmithKline PLC Pharmaceuticals, United Kingdom		1.8%
Royal Dutch Shell PLC, A Oil, Gas & Consumable Fuels, United Kingdom		1.8%


Top 10 Countries

3/31/21

	% of Total Net Assets
Japan		26.6%
United Kingdom		21.6%
Australia		14.5%
Switzerland		8.7%
Spain		4.8%
Denmark		3.7%
Italy		3.3%
France		3.2%
Sweden		3.1%
Netherlands		1.9%

Manager’s Discussion

For the fiscal year ended March 31, 2021, individual holdings that lifted the Fund’s absolute return included BHP Group, Rio Tinto and Tokyo Electron. Individual holdings that hindered the Fund’s absolute return included KAO, M3 and a2 Milk. The Fund’s use of currency forward contracts—designed to offset the Fund’s exposure to the component currencies and replicate the hedge impact incorporated in the calculations of the Underlying Index—also detracted from the Fund’s absolute performance.

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



24	Annual 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.

Dina Ting, CFA

Hailey Harris

Portfolio Management Team



franklintempleton.com	Annual Report	25

FRANKLIN LIBERTYQ INTERNATIONAL EQUITY HEDGED ETF

Performance Summary as of March 31, 2021

Performance as of 3/31/21¹

Cumulative Total Return²

Average Annual Total Return²

Based on
NAV³

Based on
market price⁴

Based on
NAV³

Based on
market price⁴

1-Year

+27.54%

+29.08%

+27.54%

+29.08%

3-Year

+27.57%

+28.34%

+8.45%

+8.67%

Since Inception (6/1/16)

+42.77%

+44.09%

+7.65%

+7.86%

See page 28 for Performance Summary footnotes.



26	Annual Report	franklintempleton.com

FRANKLIN LIBERTYQ INTERNATIONAL EQUITY HEDGED ETF

PERFORMANCE SUMMARY

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

6/1/16–3/31/21

LOGO

See page 28 for Performance Summary footnotes.



franklintempleton.com	Annual Report	27

FRANKLIN LIBERTYQ INTERNATIONAL EQUITY HEDGED ETF

PERFORMANCE SUMMARY

Distributions (4/1/20–3/31/21)



Net Investment Income	Short-Term Capital Gain		Long-Term Capital Gain		Total
$0.910024		$0.549235		$0.574673		$2.033932

Total Annual Operating Expenses⁶

0.40%

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. Source: FactSet. 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. The NR or Net Dividends Index reflects the deduction of withholding taxes on reinvested dividends.

See www.franklintempletondatasources.com for additional provider information.



28	Annual Report	franklintempleton.com

FRANKLIN LIBERTYQ INTERNATIONAL EQUITY HEDGED ETF

Your Fund’s Expenses

Actual Fund Expenses

Hypothetical Example for Comparison with Other Funds


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

Beginning Account Value 10/1/20		Ending Account Value 3/31/21		Expenses Paid During Period 10/1/20–3/31/21^1,2		Ending Account Value 3/31/21		Expenses Paid During Period 10/1/20–3/31/21^1,2		Net Annualized Expense Ratio²
	$1,000.00	$	1,154.60	$	2.15	$	1,022.94	$	2.02		0.40	%

2. Reflects expenses after fee waivers and expense reimbursements.



franklintempleton.com	Annual Report	29

FRANKLIN TEMPLETON ETF TRUST

Financial Highlights

Franklin LibertyQ Emerging Markets ETF



	Year Ended March 31,

	2021			2020			2019			2018			2017^a

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

Net asset value, beginning of year		$22.20			$29.70			$33.41			$29.29			$25.66


Income from investment operations^b:

Net investment income^c		0.84			1.24			1.14			0.83			0.47

Net realized and unrealized gains (losses)		8.55			(6.96	)		(3.76	)		4.15			3.25


Total from investment operations		9.39			(5.72	)		(2.62	)		4.98			3.72


Less distributions from net investment income		(0.81	)		(1.78	)		(1.09	)		(0.86	)		(0.09	)


Net asset value, end of year		$30.78			$22.20			$29.70			$33.41			$29.29


Total return^d		42.57%			(20.55)%			(7.70)%			17.20%			14.55%

Ratios to average net assets^e

Expenses before waiver and payments by affiliates		0.45%			0.49%			0.55%			0.69%	^f		0.75%

Expenses net of waiver and payments by affiliates		0.45%			0.49%			0.55%			0.54%	^f		0.55%

Net investment income		3.15%			4.26%			3.75%			2.61%			2.09%

Supplemental data

Net assets, end of year (000’s)		$24,627			$57,711			$344,484			$400,908			$328,086

Portfolio turnover rate^g		40.22%	^h		44.11%	^h		52.42%			32.87%			31.66%

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

^bThe amount shown for a share outstanding throughout the period may not correlate with the Statement of Operations for the period due to the timing of sales and repurchases of Creation Unit Fund shares in relation to income earned and/or fluctuating fair value of the investments of the Fund.

^cBased on average daily shares outstanding.

^dTotal return is not annualized for periods 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 includes portfolio transactions that are executed as a result of the Fund offering and redeeming Creation Units solely for cash (“Cash creations”).

^hPortfolio turnover rate excluding cash creations was as follows:

36.91%

41.78%



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

FRANKLIN TEMPLETON ETF TRUST

Statement of Investments, March 31, 2021

Franklin LibertyQ Emerging Markets ETF



		Industry		Shares		Value
	Common Stocks 98.3%
	Brazil 3.3%
	Ambev SA		Beverages		81,200	$	220,015
	BB Seguridade Participacoes SA		Insurance		23,200		99,699
	Engie Brasil Energia SA		Independent Power and Renewable Electricity Producers		4,800		35,581
	Telefonica Brasil SA		Diversified Telecommunication Services		12,009		94,127
	TIM SA		Wireless Telecommunication Services		18,000		40,415
	Vale SA		Metals & Mining		18,160		315,282


							805,119

	Chile 0.9%
	Colbun SA		Independent Power and Renewable Electricity Producers		167,688		32,725
	Compania Cervecerias Unidas SA		Beverages		3,092		27,193
	Enel Americas SA		Electric Utilities		658,444		110,077
a	Enel Chile SA		Electric Utilities		630,188		49,194


							219,189

	China 27.2%
	A-Living Services Co. Ltd., H		Commercial Services & Supplies		7,000		31,063
	Agricultural Bank of China Ltd., A		Banks		68,800		35,652
	Agricultural Bank of China Ltd., H		Banks		524,000		209,615
	Anhui Conch Cement Co. Ltd., A		Construction Materials		4,800		37,471
	Anhui Conch Cement Co. Ltd., H		Construction Materials		26,230		170,549
	Anhui Kouzi Distillery Co. Ltd., A		Beverages		800		7,560
	Apeloa Pharmaceutical Co. Ltd., A		Pharmaceuticals		1,200		5,203
	Asymchem Laboratories Tianjin Co. Ltd., A		Pharmaceuticals		200		8,805
	Autobio Diagnostics Co. Ltd., A		Health Care Equipment & Supplies		300		5,021
	Bank of Beijing Co. Ltd., A		Banks		25,500		18,655
	Bank of Chengdu Co. Ltd., A		Banks		2,400		4,119
	Bank of China Ltd., A		Banks		14,000		7,148
	Bank of China Ltd., H		Banks		620,000		236,055
	Bank of Communications Co. Ltd., A		Banks		49,800		37,571
	Bank of Communications Co. Ltd., H		Banks		219,400		139,692
	Bank of Hangzhou Co. Ltd.		Banks		6,900		17,762
	Bank of Nanjing Co. Ltd., A		Banks		11,200		17,275
	Baoshan Iron & Steel Co. Ltd., A		Metals & Mining		22,000		27,093
	Beijing Kunlun Tech Co. Ltd.		Entertainment		1,200		4,336
	Brilliance China Automotive Holdings Ltd.		Automobiles		66,000		61,972
	By-health Co. Ltd., A		Personal Products		800		3,490
	C&S Paper Co. Ltd., A		Household Products		800		3,151
	Chaozhou Three-Circle Group Co. Ltd.		Electronic Equipment, Instruments & Components		1,200		7,660
	China Cinda Asset Management Co. Ltd., H		Capital Markets		208,000		43,342
	China CITIC Bank Corp. Ltd., H		Banks		240,000		121,938
	China Conch Venture Holdings Ltd.		Construction & Engineering		37,360		175,640
	China Construction Bank Corp., H		Banks		292,000		245,635
	China Everbright Bank Co. Ltd., A		Banks		45,900		28,542
	China Everbright Bank Co. Ltd., H		Banks		80,000		34,884
b,c	China Feihe Ltd., 144A, Reg S		Food Products		19,000		53,766
	China Hongqiao Group Ltd.		Metals & Mining		28,000		37,384
	China Lesso Group Holdings Ltd.		Building Products		22,000		47,314
	China Medical System Holdings Ltd.		Pharmaceuticals		36,000		71,218
	China Merchants Port Holdings Co. Ltd.		Transportation Infrastructure		20,000		30,665
	China Minsheng Banking Corp. Ltd., A		Banks		44,400		34,174
	China Minsheng Banking Corp. Ltd., H		Banks		158,000		91,657
	China National Building Material Co. Ltd., H		Construction Materials		66,000		95,251
	China Overseas Property Holdings Ltd.		Real Estate Management & Development		19,400		18,116
	China Pacific Insurance Group Co. Ltd., A		Insurance		6,000		34,603
	China Pacific Insurance Group Co. Ltd., H		Insurance		43,200		170,312



franklintempleton.com	Annual Report	31

FRANKLIN TEMPLETON ETF TRUST

STATEMENT OF INVESTMENTS

Franklin LibertyQ Emerging Markets ETF (continued)



		Industry		Shares		Value
	Common Stocks (continued)
	China (continued)
	China Railway Group Ltd., H		Construction & Engineering		40,000	$	21,146
	China Resources Cement Holdings Ltd.		Construction Materials		66,000		74,112
	China Resources Power Holdings Co. Ltd.		Independent Power and Renewable Electricity Producers		24,000		31,858
	China Shenhua Energy Co. Ltd., A		Oil, Gas & Consumable Fuels		7,600		23,282
	China Shenhua Energy Co. Ltd., H		Oil, Gas & Consumable Fuels		97,120		200,125
	China South Publishing & Media Group Co. Ltd., A		Media		2,000		3,198
	China Taiping Insurance Holdings Co. Ltd.		Insurance		26,400		53,789
	China Yangtze Power Co. Ltd., A		Independent Power and Renewable Electricity Producers		25,200		82,346
	Chongqing Brewery Co. Ltd., A		Beverages		800		13,570
	Country Garden Services Holdings Co. Ltd.		Commercial Services & Supplies		30,400		308,127
	Da An Gene Co. Ltd. of Sun Yat-Sen University		Biotechnology		850		3,942
	Dali Foods Group Co. Ltd.		Food Products		53,500		30,416
	Daqin Railway Co. Ltd., A		Road & Rail		22,000		23,505
	DaShenLin Pharmaceutical Group Co. Ltd., A		Food & Staples Retailing		400		5,117
	Dongfeng Motor Group Co. Ltd., H		Automobiles		72,000		66,865
	East Money Information Co. Ltd.		Capital Markets		8,000		33,238
	Far East Horizon Ltd.		Diversified Financial Services		36,000		43,249
	Focus Media Information Technology Co. Ltd.		Media		17,200		24,327
	Foshan Haitian Flavouring & Food Co. Ltd.		Food Products		4,000		97,421
	Fujian Sunner Development Co. Ltd.		Food Products		2,000		7,849
	Fuyao Glass Industry Group Co. Ltd., A		Auto Components		2,400		16,855
	G-bits Network Technology Xiamen Co. Ltd., A		Entertainment		100		5,673
a,d	GSX Techedu Inc., ADR		Diversified Consumer Services		1,368		46,348
	Guangdong Haid Group Co. Ltd.		Food Products		1,600		19,021
	Guangdong Xinbao Electrical Appliances Holdings Co. Ltd.		Household Durables		400		2,134
	Guangzhou R&F Properties Co. Ltd., H		Real Estate Management & Development		19,200		25,338
	Guangzhou Shiyuan Electronic Technology Co. Ltd., A		Electronic Equipment, Instruments & Components		800		15,890
	Guangzhou Wondfo Biotech Co. Ltd., A		Health Care Equipment & Supplies		300		3,758
	Haitian International Holdings Ltd.		Machinery		8,000		31,899
	Hangzhou Robam Appliances Co. Ltd., A		Household Durables		1,200		6,679
	Hefei Meiya Optoelectronic Technology Inc.		Machinery		800		5,156
	Heilongjiang Agriculture Co. Ltd., A		Food Products		2,000		4,770
	Henan Shuanghui Investment & Development Co. Ltd.		Food Products		3,900		24,371
	Hengan International Group Co. Ltd.		Personal Products		7,000		46,010
	Hithink RoyalFlush Information Network Co. Ltd.		Capital Markets		600		10,919
	Hopson Development Holdings Ltd.		Real Estate Management & Development		8,000		28,812
	Hualan Biological Engineering Inc.		Biotechnology		2,100		12,723
	Huaxia Bank Co. Ltd., A		Banks		8,400		8,245
	Huaxin Cement Co. Ltd., A		Construction Materials		2,000		7,237
	Hubei Jumpcan Pharmaceutical Co. Ltd., A		Pharmaceuticals		1,200		3,652
	Hunan Valin Steel Co. Ltd.		Metals & Mining		7,600		8,108
	Industrial and Commercial Bank of China Ltd.		Banks		14,400		12,159
	Industrial and Commercial Bank of China Ltd., H		Banks		356,000		255,514



32	Annual Report	franklintempleton.com

FRANKLIN TEMPLETON ETF TRUST

STATEMENT OF INVESTMENTS

Franklin LibertyQ Emerging Markets ETF (continued)



		Industry		Shares		Value
	Common Stocks (continued)
	China (continued)
	Inner Mongolia Junzheng Energy & Chemical Industry Group Co. Ltd., A		Chemicals		10,000	$	8,047
	Inner Mongolia Yili Industrial Group Co. Ltd., A		Food Products		6,000		36,606
	Intco Medical Technology Co. Ltd.		Health Care Equipment & Supplies		400		9,851
	Jafron Biomedical Co. Ltd., A		Health Care Equipment & Supplies		870		10,077
	Jason Furniture Hangzhou Co. Ltd., A		Household Durables		400		4,911
	Jiangsu Expressway Co. Ltd., H		Transportation Infrastructure		29,000		36,108
	Jiangsu Hengli Hydraulic Co. Ltd., A		Machinery		800		10,907
	Jiangsu Yanghe Brewery JST Co. Ltd., A		Beverages		1,500		37,653
	Jiangsu Yangnong Chemical Co. Ltd., A		Chemicals		400		7,311
	Jiangsu Zhongtian Technology Co. Ltd., A		Electrical Equipment		2,800		4,886
	Jiangxi Zhengbang Technology Co. Ltd., A		Food Products		2,800		6,457
	Juewei Food Co. Ltd., A		Food Products		800		9,389
	Kweichow Moutai Co. Ltd., A		Beverages		840		257,203
	Lee & Man Paper Manufacturing Ltd.		Paper & Forest Products		32,000		29,430
	Lomon Billions Group Co. Ltd.		Chemicals		2,000		8,712
	LONGi Green Energy Technology Co. Ltd., A		Semiconductors & Semiconductor Equipment		2,400		32,189
	Luenmei Quantum Co. Ltd., A		Water Utilities		1,600		2,558
	Luzhou Laojiao Co. Ltd., A		Beverages		1,800		61,732
	Muyuan Foods Co. Ltd.		Food Products		4,400		67,081
	NanJi E-Commerce Co. Ltd.		Media		2,800		3,918
	NetEase Inc., ADR		Entertainment		2,660		274,672
	New Hope Liuhe Co. Ltd.		Food Products		4,400		13,412
	Nine Dragons Paper Holdings Ltd.		Paper & Forest Products		37,000		54,159
	Offcn Education Technology Co. Ltd., A		Diversified Consumer Services		1,600		6,870
	Ovctek China Inc., A		Health Care Equipment & Supplies		850		11,679
	Perfect World Co. Ltd.		Entertainment		1,600		4,824
	PICC Property and Casualty Co. Ltd., H		Insurance		72,000		62,420
	Postal Savings Bank of China Co. Ltd., H		Banks		164,000		122,560
	RiseSun Real Estate Development Co. Ltd.		Real Estate Management & Development		5,200		5,112
	SAIC Motor Corp Ltd		Automobiles		8,400		25,183
	Sany Heavy Industry Co. Ltd., A		Machinery		9,300		48,405
a	Seazen Group Ltd.		Real Estate Management & Development		24,000		29,481
	Seazen Holdings Co. Ltd., A		Real Estate Management & Development		2,400		17,850
	Shaanxi Coal Industry Co. Ltd.		Oil, Gas & Consumable Fuels		12,100		20,397
	Shandong Buchang Pharmaceuticals Co. Ltd., A		Pharmaceuticals		1,600		5,567
	Shandong Hualu Hengsheng Chemical Co. Ltd., A		Chemicals		2,000		11,446
	Shandong Sun Paper Industry JSC Ltd.		Paper & Forest Products		2,400		5,750
	Shanghai M&G Stationery Inc., A		Commercial Services & Supplies		1,200		15,621
	Shanxi Lu’an Environmental Energy Development Co. Ltd., A		Oil, Gas & Consumable Fuels		3,600		3,363
	Shanxi Xinghuacun Fen Wine Factory Co. Ltd., A		Beverages		600		30,433
	Shengyi Technology Co. Ltd., A		Electronic Equipment, Instruments & Components		2,000		6,926
	Shenzhen Goodix Technology Co. Ltd., A		Semiconductors & Semiconductor Equipment		600		10,248
	Shenzhen International Holdings Ltd.		Transportation Infrastructure		14,000		23,446
	Shenzhen Investment Ltd.		Real Estate Management & Development		32,000		11,113
	Shenzhen Mindray Bio-Medical Electronics Co. Ltd., A		Health Care Equipment & Supplies		1,173		71,352
	Shenzhen Salubris Pharmaceuticals Co. Ltd.		Pharmaceuticals		1,200		6,924
	Sichuan Chuantou Energy Co Ltd., A		Independent Power and Renewable Electricity Producers		4,800		9,174



franklintempleton.com	Annual Report	33

FRANKLIN TEMPLETON ETF TRUST

STATEMENT OF INVESTMENTS

Franklin LibertyQ Emerging Markets ETF (continued)



		Industry		Shares		Value
	Common Stocks (continued)
	China (continued)
	Sichuan Swellfun Co. Ltd., A		Beverages		400	$	4,361
	Suofeiya Home Collection Co. Ltd.		Household Durables		800		4,015
	Tangshan Jidong Cement Co. Ltd.		Construction Materials		1,200		2,862
	The People’s Insurance Co. Group of China Ltd., H		Insurance		92,000		29,821
	Toly Bread Co. Ltd., A		Food Products		800		5,831
	Tonghua Dongbao Pharmaceutical Co. Ltd.		Pharmaceuticals		1,200		2,270
	Tongkun Group Co. Ltd., A		Chemicals		1,600		5,036
a	Topchoice Medical Investment Corp., A		Health Care Providers & Services		400		15,272
a	Vipshop Holdings Ltd., ADR		Internet & Direct Marketing Retail		4,788		142,970
	Wanhua Chemical Group Co. Ltd., A		Chemicals		3,600		57,941
	Want Want China Holdings Ltd.		Food Products		52,000		38,994
	Weifu High-Technology Group Co. Ltd., A		Auto Components		1,200		4,331
	Weihai Guangwei Composites Co. Ltd., A		Chemicals		400		4,226
	Wens Foodstuffs Group Co. Ltd.		Food Products		8,400		21,662
	Wuhu Sanqi Interactive Entertainment NetworkTechnology Group Co. Ltd.		Entertainment		3,200		10,710
	Wuliangye Yibin Co. Ltd., A		Beverages		4,500		183,794
	Xiamen C & D Inc., A		Trading Companies & Distributors		2,800		3,593
b	Yadea Group Holdings Ltd., Reg S		Automobiles		12,000		26,641
	Yanzhou Coal Mining Co. Ltd., A		Oil, Gas & Consumable Fuels		2,400		4,839
	Yanzhou Coal Mining Co. Ltd., H		Oil, Gas & Consumable Fuels		32,000		37,868
	Yealink Network Technology Corp. Ltd.		Communications Equipment		1,000		10,390
a	Yihai International Holding Ltd.		Food Products		8,400		86,977
	Yuexiu Property Co. Ltd.		Real Estate Management & Development		136,000		30,788
	Yunda Holding Co. Ltd.		Air Freight & Logistics		2,650		5,671
	Zhejiang Longsheng Group Co. Ltd., A		Chemicals		2,000		4,414
	Zhejiang NHU Co. Ltd.		Pharmaceuticals		2,400		13,984
	Zhejiang Semir Garment Co. Ltd.		Textiles, Apparel & Luxury Goods		2,400		3,705
	Zhejiang Supor Co. Ltd.		Household Durables		800		8,724
	Zhejiang Weixing New Building Materials Co. Ltd.		Building Products		2,000		7,700
	Zhejiang Wolwo Bio-Pharmaceutical Co. Ltd., A		Pharmaceuticals		400		3,594
	Zhengzhou Yutong Bus Co. Ltd., A		Machinery		1,600		3,499
d	ZTO Express Cayman Inc., ADR		Air Freight & Logistics		5,980		174,317


							6,694,325

	Colombia 0.3%
	Ecopetrol SA		Oil, Gas & Consumable Fuels		108,148		69,627

	Egypt 0.1%
	Eastern Co. SAE		Tobacco		32,824		23,849
	ElSewedy Electric Co.		Electrical Equipment		21,804		12,513


							36,362

	Greece 0.3%
	Hellenic Telecommunications Organization SA		Diversified Telecommunication Services		2,660		42,768
	JUMBO SA		Specialty Retail		1,180		21,676


							64,444

	Hong Kong 0.5%
	Kingboard Laminates Holdings Ltd.		Electronic Equipment, Instruments & Components		24,000		51,924
	The Wharf Holdings Ltd.		Real Estate Management & Development		24,000		63,593


							115,517

	India 12.8%
	Asian Paints Ltd.		Chemicals		6,248		216,836
	Bajaj Auto Ltd.		Automobiles		1,820		91,371
	Bharti Infratel Ltd.		Diversified Telecommunication Services		7,908		26,499



34	Annual Report	franklintempleton.com

FRANKLIN TEMPLETON ETF TRUST

STATEMENT OF INVESTMENTS

Franklin LibertyQ Emerging Markets ETF (continued)



		Industry			Shares		Value
	Common Stocks (continued)
	India (continued)
	Britannia Industries Ltd.		Food Products			1,964	$	97,377
	Coal India Ltd.		Oil, Gas & Consumable Fuels			40,072		71,442
	Colgate-Palmolive (India) Ltd.		Personal Products			2,448		52,210
	Container Corp. of India Ltd.		Road & Rail			2,868		23,457
	Dabur India Ltd.		Personal Products			11,544		85,340
	Eicher Motors Ltd.		Automobiles			2,916		103,854
	GAIL India Ltd.		Gas Utilities			37,992		70,410
	HCL Technologies Ltd.		IT Services			20,772		279,176
b,c	HDFC Asset Management Co. Ltd., 144A, Reg S		Capital Markets			1,172		46,791
	Hero Motocorp Ltd.		Automobiles			2,668		106,320
	Hindustan Petroleum Corp. Ltd.		Oil, Gas & Consumable Fuels			16,472		52,831
	Hindustan Unilever Ltd.		Household Products			7,936		263,923
	Indraprastha Gas Ltd.		Gas Utilities			4,300		30,133
	Infosys Ltd.		IT Services			15,232		285,010
	IPCA Laboratories Ltd.		Pharmaceuticals			728		18,956
	ITC Ltd.		Tobacco			81,368		243,168
b	Larsen & Toubro Infotech Ltd., Reg S		IT Services			580		32,162
	Marico Ltd.		Personal Products			12,056		67,821
	Nestle India Ltd.		Food Products			772		181,245
	Oil & Natural Gas Corp. Ltd.		Oil, Gas & Consumable Fuels			54,932		76,748
	Page Industries Ltd.		Textiles, Apparel & Luxury Goods			132		54,735
	Petronet LNG Ltd.		Oil, Gas & Consumable Fuels			14,236		43,742
	Pidilite Industries Ltd.		Chemicals			3,016		74,639
	REC Ltd.		Diversified Financial Services			15,452		27,718
	Tata Consultancy Services Ltd.		IT Services			6,436		279,737
	Tech Mahindra Ltd.		IT Services			11,664		158,168


								3,161,819

	Indonesia 2.1%
	Adaro Energy Tbk PT		Oil, Gas & Consumable Fuels			337,600		27,310
a	Gudang Garam Tbk PT		Tobacco			10,000		24,905
	Indofood CBP Sukses Makmur Tbk PT		Food Products			50,000		31,670
	Indofood Sukses Makmur Tbk PT		Food Products			48,800		22,174
	Perusahaan Perseroan (Persero) PT TelekomunikasiIndonesia Tbk, B		Diversified Telecommunication Services			1,008,800		237,528
	Unilever Indonesia Tbk PT		Household Products			220,400		99,768
	United Tractors Tbk PT		Oil, Gas & Consumable Fuels			42,000		63,976


								507,331

	Kuwait 0.2%
	Mobile Telecommunications Co. KSCP		Wireless Telecommunication Services			24,300		48,640

	Malaysia 1.9%
	AMMB Holdings Bhd.		Beverages			18,400		13,002
	Digi.com Bhd.		Wireless Telecommunication Services			82,400		72,335
	Hartalega Holdings Bhd.		Health Care Equipment & Supplies			42,800		92,175
	Kossan Rubber Industries		Health Care Equipment & Supplies			15,200		11,950
	Nestle (Malaysia) Bhd.		Food Products			2,000		65,115
	Petronas Dagangan Bhd.		Oil, Gas & Consumable Fuels			4,800		23,198
	Petronas Gas Bhd.		Gas Utilities			17,200		66,369
	Supermax Corp. Bhd		Health Care Equipment & Supplies			21,262		19,537
	Top Glove Corp. Bhd.		Health Care Equipment & Supplies			79,200		86,334
	Westports Holdings Bhd.		Transportation Infrastructure			20,800		21,068


								471,083

	Mexico 2.7%
	Fibra Uno Administracion SA de CV		Equity Real Estate Investment Trusts (REITs	)		61,552		71,869
	Grupo Mexico SAB de CV, B		Metals & Mining			46,848		246,049



franklintempleton.com	Annual Report	35

FRANKLIN TEMPLETON ETF TRUST

STATEMENT OF INVESTMENTS

Franklin LibertyQ Emerging Markets ETF (continued)



		Industry		Shares		Value
	Common Stocks (continued)
	Mexico (continued)
	Kimberly-Clark de Mexico SAB de CV, A		Household Products		38,972	$	66,533
	Megacable Holdings SAB de CV		Media		6,736		24,112
	Wal-Mart de Mexico SAB de CV, V		Food & Staples Retailing		80,192		252,681


							661,244

	Pakistan 0.1%
	MCB Bank Ltd.		Banks		9,629		10,855
	Oil & Gas Development Co. Ltd.		Oil, Gas & Consumable Fuels		19,952		13,277


							24,132

	Philippines 0.5%
	Globe Telecom Inc.		Wireless Telecommunication Services		880		34,085
	Manila Electric Co.		Electric Utilities		5,600		31,382
	Metro Pacific Investments Corp.		Diversified Financial Services		244,000		18,801
	PLDT Inc.		Wireless Telecommunication Services		1,500		37,734


							122,002

	Poland 0.4%
	Polski Koncern Naftowy Orlen SA		Oil, Gas & Consumable Fuels		4,640		74,621
	Polskie Gornictwo Naftowe i Gazownictwo SA		Oil, Gas & Consumable Fuels		18,888		28,787


							103,408

	Qatar 1.5%
	Industries Qatar QSC		Industrial Conglomerates		41,636		136,652
	Masraf Al Rayan QSC		Banks		74,972		88,335
	Mesaieed Petrochemical Holding Co.		Chemicals		87,080		44,485
	Qatar Electricity & Water Co. QSC		Multi-Utilities		12,832		59,843
	Qatar Fuel QSC		Oil, Gas & Consumable Fuels		10,348		48,742


							378,057

	Russia 10.8%
	Alrosa PJSC		Metals & Mining		77,268		108,199
	Gazprom PJSC		Oil, Gas & Consumable Fuels		93,324		282,065
	Inter RAO UES PJSC		Electric Utilities		1,151,664		78,233
	LUKOIL PJSC		Oil, Gas & Consumable Fuels		3,492		282,967
	MMC Norilsk Nickel PJSC		Metals & Mining		832		262,098
	Mobile TeleSystems PJSC, ADR		Wireless Telecommunication Services		13,128		109,487
	Moscow Exchange MICEX		Capital Markets		28,840		66,373
	NLMK PJSC		Metals & Mining		39,212		125,302
b	Novatek PJSC, GDR, Reg S		Oil, Gas & Consumable Fuels		1,368		270,180
b	PhosAgro PJSC, GDR, Reg S		Chemicals		3,784		65,917
	Polymetal International PLC		Metals & Mining		6,228		122,385
	Polyus Gold OJSC		Metals & Mining		932		172,587
	Rosneft PJSC		Oil, Gas & Consumable Fuels		26,044		196,885
	Severstal PAO		Metals & Mining		8,068		164,418
	Surgutneftegas PJSC		Oil, Gas & Consumable Fuels		179,832		82,274
	Tatneft PAO		Oil, Gas & Consumable Fuels		33,516		265,354


							2,654,724

	Saudi Arabia 4.1%
	Abdullah Al Othaim Markets Co.		Food & Staples Retailing		784		26,423
	Advanced Petrochemical Co.		Chemicals		2,712		52,788
	Al-Rajhi Bank		Banks		11,524		303,586
a	Bupa Arabia for Cooperative Insurance Co.		Insurance		1,068		34,058
	Jarir Marketing Co.		Specialty Retail		1,584		76,869
	Saudi Airlines Catering Co.		Hotels, Restaurants & Leisure		964		19,535
	Saudi Arabian Fertilizer Co.		Chemicals		4,296		112,715
	Saudi Cement Co.		Construction Materials		1,612		28,540



36	Annual Report	franklintempleton.com

FRANKLIN TEMPLETON ETF TRUST

STATEMENT OF INVESTMENTS

Franklin LibertyQ Emerging Markets ETF (continued)



		Industry		Shares		Value
	Common Stocks (continued)
	Saudi Arabia (continued)
	Saudi Telecom Co.		Diversified Telecommunication Services		7,916	$	267,638
	Yanbu National Petrochemical Co.		Chemicals		5,040		92,995


							1,015,147

	South Africa 3.7%
	African Rainbow Minerals Ltd.		Metals & Mining		1,468		27,648
	AngloGold Ashanti Ltd.		Metals & Mining		7,292		158,934
	Clicks Group Ltd.		Food & Staples Retailing		5,816		94,687
	Exxaro Resources Ltd.		Oil, Gas & Consumable Fuels		7,460		87,835
	Impala Platinum Holdings Ltd.		Metals & Mining		8,728		161,796
	Kumba Iron Ore Ltd.		Metals & Mining		2,292		94,451
	Mr. Price Group Ltd.		Specialty Retail		6,932		90,890
	Tiger Brands Ltd.		Food Products		3,528		50,353
	Vodacom Group Ltd.		Wireless Telecommunication Services		16,312		139,477


							906,071

	South Korea 8.1%
	BGF Retail Co. Ltd.		Food & Staples Retailing		148		20,662
	Coway Co. Ltd.		Household Durables		1,204		69,681
	Hana Financial Group Inc.		Banks		6,976		263,815
	Hyundai Marine & Fire Insurance Co. Ltd.		Insurance		1,324		28,662
	Industrial Bank of Korea		Banks		6,760		54,713
	KB Financial Group Inc.		Banks		5,360		266,165
	Korea Zinc Co. Ltd.		Metals & Mining		156		56,308
	KT&G Corp.		Tobacco		2,836		203,977
	Kumho Petrochemical Co. Ltd.		Chemicals		348		81,484
	NCSoft Corp.		Entertainment		316		243,753
a	Pearl Abyss Corp.		Entertainment		128		34,846
	S-1 Corp.		Commercial Services & Supplies		372		26,854
	Samsung Card Co. Ltd.		Consumer Finance		605		18,416
	Samsung Electronics Co. Ltd.		Technology Hardware, Storage & Peripherals		3,324		239,075
	Seegene Inc.		Biotechnology		224		25,750
	Shinhan Financial Group Co. Ltd.		Banks		7,496		248,045
	Woori Financial Group Inc.		Banks		11,408		101,808


							1,984,014

	Taiwan 12.3%
	Accton Technology Corp.		Communications Equipment		11,260		108,918
	Advantech Co. Ltd.		Technology Hardware, Storage & Peripherals		7,435		92,244
	Asia Cement Corp.		Construction Materials		40,000		67,010
	ASMedia Technology Inc.		Semiconductors & Semiconductor Equipment		320		16,711
	Asustek Computer Inc.		Technology Hardware, Storage & Peripherals		12,000		156,661
	Catcher Technology Co. Ltd.		Technology Hardware, Storage & Peripherals		14,280		105,850
	Chicony Electronics Co. Ltd.		Technology Hardware, Storage & Peripherals		15,860		56,419
	Chunghwa Telecom Co. Ltd.		Diversified Telecommunication Services		58,880		230,089
	Eclat Textile Co. Ltd.		Textiles, Apparel & Luxury Goods		3,800		63,926
a	Far EasTone Telecommunications Co. Ltd.		Wireless Telecommunication Services		33,000		74,135
	Feng Tay Enterprise Co. Ltd.		Textiles, Apparel & Luxury Goods		9,076		62,027
	Globalwafers Co. Ltd.		Semiconductors & Semiconductor Equipment		4,980		130,901
	Largan Precision Co. Ltd.		Electronic Equipment, Instruments & Components		1,840		207,002
	Lite-On Technology Corp.		Technology Hardware, Storage & Peripherals		48,000		105,646
	Micro-Star International Co. Ltd.		Technology Hardware, Storage & Peripherals		12,000		73,178
	Nien Made Enterprise Co. Ltd.		Household Durables		4,500		62,769
	Novatek Microelectronics Corp. Ltd.		Semiconductors & Semiconductor Equipment		14,080		283,742
	Pegatron Corp.		Technology Hardware, Storage & Peripherals		22,000		57,134
	Powertech Technology Inc.		Semiconductors & Semiconductor Equipment		14,600		53,983
	Ruentex Development Co. Ltd.		Real Estate Management & Development		15,000		26,023
	Synnex Technology International Corp.		Electronic Equipment, Instruments & Components		24,000		45,842



franklintempleton.com	Annual Report	37

FRANKLIN TEMPLETON ETF TRUST

STATEMENT OF INVESTMENTS

Franklin LibertyQ Emerging Markets ETF (continued)



		Industry		Shares		Value
	Common Stocks (continued)
	Taiwan (continued)
	Taiwan Cement Corp.		Construction Materials		96,201	$	157,789
	Taiwan Mobile Co. Ltd.		Wireless Telecommunication Services		37,400		128,717
	Taiwan Semiconductor Manufacturing Co. Ltd.		Semiconductors & Semiconductor Equipment		13,080		269,091
	United Microelectronics Corp.		Semiconductors & Semiconductor Equipment		124,000		218,161
	Vanguard International Semiconductor Corp.		Semiconductors & Semiconductor Equipment		22,000		83,272
	Walsin Technology Corp.		Electronic Equipment, Instruments & Components		6,400		55,963
	Wiwynn Corp.		Technology Hardware, Storage & Peripherals		1,280		37,817


							3,031,020

	Thailand 1.7%
	Advanced Info Service PCL		Wireless Telecommunication Services		32,400		179,885
	Bumrungrad Hospital PCL		Health Care Providers & Services		9,600		41,779
	Home Product Center PCL, NVDR		Specialty Retail		100,800		47,739
	Intouch Holdings PCL		Wireless Telecommunication Services		61,200		113,587
	Krung Thai Bank PCL		Banks		39,200		15,304
	Osotspa PCL, NVDR		Beverages		14,400		16,243


							414,537

	Turkey 1.3%
	Aselsan Elektronik Sanayi Ve Ticaret A/S		Aerospace & Defense		11,248		20,318
	BIM Birlesik Magazalar A/S		Food & Staples Retailing		11,768		100,386
	Eregli Demir ve Celik Fabrikalari TAS		Metals & Mining		38,116		70,279
	Ford Otomotiv Sanayi AS		Automobiles		2,068		48,300
	Haci Omer Sabanci Holding A/S		Diversified Financial Services		16,392		17,033
	Turkcell Iletisim Hizmetleri A/S		Wireless Telecommunication Services		28,756		52,014
a	Turkiye Is Bankasi A/S, C		Banks		35,108		20,447


							328,777

	United Arab Emirates 1.5%
	Aldar Properties PJSC		Real Estate Management & Development		79,456		81,335
	Dubai Islamic Bank PJSC		Banks		38,724		47,968
	Emirates Telecommunications Group Co. PJSC		Diversified Telecommunication Services		41,868		246,661

							375,964

	Total Common Stocks (Cost $19,967,741)						24,192,553

	Preferred Stocks 1.6%
	Brazil 0.9%
e	Companhia Paranaense de Energia, 43.478%, pfd.		Electric Utilities		12,000		15,162
e	Itausa SA, 2.490%, pfd.		Banks		108,400		198,244

							213,406

	Chile 0.0%^†
e	Embotelladora Andina SA, 5.990%, pfd., B		Beverages		3,732		9,922

	Russia 0.5%
e	Surgutneftegas PJSC, 2.310%, pfd.		Oil, Gas & Consumable Fuels		210,708		117,186

	South Korea 0.2%
e	LG Household & Health Care Ltd., 1.613%, pfd.		Personal Products		36		21,789
e	Samsung Electronics Co. Ltd., 4.103%, pfd.		Technology Hardware, Storage & Peripherals		612		39,475

						61,264

	Total Preferred Stocks (Cost $386,464)						401,778

	Total Investments before Short Term Investments (Cost $20,354,205)						24,594,331



38	Annual Report	franklintempleton.com

FRANKLIN TEMPLETON ETF TRUST

STATEMENT OF INVESTMENTS

Franklin LibertyQ Emerging Markets ETF (continued)



		Industry		Shares		Value
	Short Term Investments (Cost $33,900) 0.1%
	Investments from Cash Collateral Received for Loaned Securities 0.1%
	United States 0.1%
f,g	Institutional Fiduciary Trust Portfolio, 0.01%		Money Market Funds		33,900	$	33,900

	Total Investments (Cost $20,388,105) 100.0%						24,628,231
	Other Assets, less Liabilities 0.0%^†						(1,440	)

	Net Assets 100.0%					$	24,626,791

^†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. At March 31, 2021, the aggregate value of these securities was $495,457, representing 2.0% 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. At March 31, 2021, the aggregate value of these securities was $100,557, representing 0.4% of net assets.

^dA portion or all of the security is on loan at March 31, 2021 .

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

^fSee Note 5 regarding investments in affiliated management investment companies.

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

At March 31, 2021, 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

66,125

6/18/21

173

*As of Period end.



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

FRANKLIN TEMPLETON ETF TRUST

Financial Highlights

Franklin LibertyQ Global Dividend ETF



	Year Ended March 31,

	2021			2020			2019			2018			2017^a

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

Net asset value, beginning of year	$	23.32		$	28.20		$	28.22		$	27.31		$	25.43


Income from investment operations^b:

Net investment income^c		0.92			1.04			0.95			0.86			0.67

Net realized and unrealized gains (losses)		9.95			(4.90	)		(0.02	)		1.03			1.79


Total from investment operations		10.87			(3.86	)		0.93			1.89			2.46


Less distributions from net investment income		(0.90	)		(1.02	)		(0.95	)		(0.98	)		(0.58	)


Net asset value, end of year	$	33.29		$	23.32		$	28.20		$	28.22		$	27.31


Total return^d		47.20%			(14.34)%			3.51%			6.91%			9.79%

Ratios to average net assets^e

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

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

Net investment income		3.21%			3.60%			3.43%			3.05%			3.11%

Supplemental data

Net assets, end of year (000’s)		$26,632			$18,653			$16,920			$16,933			$27,306

Portfolio turnover rate^g		42.38%	^h		19.79%	^h		25.75%			43.32%			13.38%

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

^cBased on average daily shares outstanding.

^eRatios are annualized for periods less than one year.

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

^gPortfolio turnover rate includes portfolio transactions that are executed as a result of the Fund offering and redeeming Creation Units solely for cash (“Cash creations”).

^hPortfolio turnover rate excluding cash creations was as follows:

42.38%

19.79%



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

FRANKLIN TEMPLETON ETF TRUST

Statement of Investments, March 31, 2021

Franklin LibertyQ Global Dividend ETF



		Industry		Shares		Value
	Common Stocks 98.2%
	Australia 5.3%
	Australian Stock Exchange Ltd.		Capital Markets		3,496	$	189,187
	Commonwealth Bank of Australia		Banks		8,660		567,906
	Macquarie Group Ltd.		Capital Markets		4,824		561,528
	Sonic Healthcare Ltd.		Health Care Providers & Services		3,104		82,958


							1,401,579

	Belgium 0.2%
	Proximus SADP		Diversified Telecommunication Services		2,260		49,298

	Canada 6.7%
	Canadian Imperial Bank of Commerce		Banks		4,856		475,419
	IGM Financial Inc.		Capital Markets		1,748		53,267
	Royal Bank of Canada		Banks		6,172		569,001
	TELUS Corp.		Diversified Telecommunication Services		4,280		85,236
	The Toronto-Dominion Bank		Banks		9,404		613,241


							1,796,164

	China 1.4%
	China Vanke Co. Ltd., A		Real Estate Management & Development		7,700		35,207
	China Vanke Co. Ltd., H		Real Estate Management & Development		23,200		90,867
	Far East Horizon Ltd.		Diversified Financial Services		29,000		34,840
	Hubei Jumpcan Pharmaceutical Co. Ltd., A		Pharmaceuticals		400		1,217
a,b	Longfor Group Holdings Ltd., 144A, Reg S		Real Estate Management & Development		30,500		202,040


							364,171

	Denmark 0.2%
	Tryg AS		Insurance		2,616		61,845

	Finland 2.9%
	Elisa OYJ		Diversified Telecommunication Services		2,288		137,520
	Kone OYJ, B		Machinery		5,556		454,877
	Orion OYJ		Pharmaceuticals		1,236		49,638
	UPM-Kymmene OYJ		Paper & Forest Products		3,548		127,726


							769,761

	Germany 2.6%
	Allianz SE		Insurance		2,080		530,605
	Hannover Rueck SE		Insurance		852		156,011


							686,616

	Hong Kong 0.1%
	Sino Land Co. Ltd.		Real Estate Management & Development		28,000		38,969

	Indonesia 0.4%
	Bank Rakyat Indonesia Persero Tbk PT		Banks		362,900		109,932

	Japan 8.3%
	Daito Trust Construction Co. Ltd.		Real Estate Management & Development		1,900		220,606
	Japan Tobacco Inc.		Tobacco		8,100		155,769
	KDDI Corp.		Wireless Telecommunication Services		16,500		506,946
	Lawson Inc.		Food & Staples Retailing		560		27,519
	MS&AD Insurance Group Holdings Inc.		Insurance		5,900		173,476
	Nippon Telegraph & Telephone Corp.		Diversified Telecommunication Services		9,400		241,763
	Nomura Real Estate Holdings Inc.		Real Estate Management & Development		1,200		28,941
	ORIX Corp.		Diversified Financial Services		20,200		341,481
	Sekisui House Ltd.		Household Durables		7,300		156,834
	Tokio Marine Holdings Inc.		Insurance		7,200		343,059


							2,196,394



franklintempleton.com	Annual Report	41

FRANKLIN TEMPLETON ETF TRUST

STATEMENT OF INVESTMENTS

Franklin LibertyQ Global Dividend ETF (continued)



		Industry		Shares			Value
	Common Stocks (continued)
	Macau 0.9%
c	Sands China Ltd.		Hotels, Restaurants & Leisure		50,400		$	251,856

	Malaysia 0.1%
	Petronas Gas Bhd.		Gas Utilities		5,400			20,837

	Mexico 0.2%
c	Grupo Aeroportuario del Pacifico SAB de CV		Transportation Infrastructure		4,284			44,736

	New Zealand 0.4%
	Spark New Zealand Ltd.		Diversified Telecommunication Services		36,436			114,320

	Norway 0.2%
	Orkla ASA		Food Products		5,476			53,783

	Philippines 0.1%
	Globe Telecom Inc.		Wireless Telecommunication Services		360			13,944

	Qatar 1.8%
	Masraf Al Rayan QSC		Banks		50,924			60,001
	Qatar International Islamic Bank QSC		Banks		5,640			13,538
	Qatar Islamic Bank SAQ		Banks		17,104			77,323
	Qatar National Bank SAQ		Banks		68,352			337,724


								488,586

	Russia 0.8%
	Polymetal International PLC		Metals & Mining		1,912	��		37,572
	Tatneft PAO		Oil, Gas & Consumable Fuels		21,328			168,859


								206,431

	Saudi Arabia 2.2%
	Al-Rajhi Bank		Banks		10,896			287,043
	Jarir Marketing Co.		Specialty Retail		968			46,975
	National Commercial Bank		Banks		16,896			239,222


								573,240

	Singapore 2.5%
	DBS Group Holdings Ltd.		Banks		18,200			389,981
	Singapore Telecommunications Ltd.		Diversified Telecommunication Services		118,200			214,653
	Venture Corp. Ltd.		Electronic Equipment, Instruments & Components		4,000			59,720


								664,354

	South Africa 0.3%
	Mr. Price Group Ltd.		Specialty Retail		5,040			66,083
	Rand Merchant Investment Holdings Ltd.		Insurance		9,728			20,179


								86,262

	South Korea 0.1%
	Coway Co. Ltd.		Household Durables		608			35,188

	Spain 0.3%
	Red Electrica Corp. SA		Electric Utilities		4,744			84,192

	Switzerland 6.9%
	Novartis AG		Pharmaceuticals		5,668			486,431
	Roche Holding AG		Pharmaceuticals		1,448			469,948
	SGS SA		Professional Services		98			279,167
	Swisscom AG		Diversified Telecommunication Services		168			90,502
	Zurich Insurance Group AG		Insurance		1,196			512,635


								1,838,683



42	��	Annual Report	franklintempleton.com

FRANKLIN TEMPLETON ETF TRUST

STATEMENT OF INVESTMENTS

Franklin LibertyQ Global Dividend ETF (continued)



		Industry		Shares		Value
	Common Stocks (continued)
	Taiwan 2.8%
	Chailease Holding Co. Ltd.		Diversified Financial Services		18,100	$	124,968
	Taiwan Semiconductor Manufacturing Co. Ltd.		Semiconductors & Semiconductor Equipment		28,200		580,149
	Vanguard International Semiconductor Corp.		Semiconductors & Semiconductor Equipment		14,000		52,991


							758,108

	Turkey 0.1%
	Ford Otomotiv Sanayi AS		Automobiles		1,140		26,626

	United Arab Emirates 0.3%
	Emirates Telecommunications Group Co. PJSC		Diversified Telecommunication Services		12,336		72,676

	United Kingdom 7.5%
	GlaxoSmithKline PLC		Pharmaceuticals		26,872		477,530
	Legal & General Group PLC		Insurance		79,840		307,443
	Schroders PLC		Capital Markets		1,668		80,547
	Smiths Group PLC		Industrial Conglomerates		4,816		102,161
	St. James’s Place Capital PLC		Capital Markets		6,560		115,308
	Unilever PLC		Personal Products		16,372		916,188


							1,999,177

	United States 42.6%
	Altria Group Inc.		Tobacco		12,228		625,584
	Cisco Systems Inc.		Communications Equipment		11,896		615,142
	Cummins Inc.		Machinery		2,104		545,167
	Eaton Corp. PLC		Electrical Equipment		2,772		383,312
	Emerson Electric Co.		Electrical Equipment		6,402		577,588
	Fidelity National Financial Inc.		Insurance		3,020		122,793
	Garmin Ltd.		Household Durables		2,692		354,940
	Gilead Sciences Inc.		Biotechnology		8,076		521,952
	International Business Machines Corp.		IT Services		4,204		560,225
	Johnson & Johnson		Pharmaceuticals		3,332		547,614
	Kimberly-Clark Corp.		Household Products		3,488		485,006
	Las Vegas Sands Corp.		Hotels, Restaurants & Leisure		4,756		288,975
	LyondellBasell Industries NV, A		Chemicals		4,360		453,658
	Maxim Integrated Products Inc.		Semiconductors & Semiconductor Equipment		5,960		544,565
	Merck & Co. Inc.		Pharmaceuticals		6,128		472,408
	Nucor Corp.		Metals & Mining		2,276		182,695
	Packaging Corp. of America		Containers & Packaging		1,116		150,080
	Paychex Inc.		IT Services		5,352		524,603
	Philip Morris International Inc.		Tobacco		6,348		563,322
	QUALCOMM Inc.		Semiconductors & Semiconductor Equipment		3,340		442,851
	Seagate Technology PLC		Technology Hardware, Storage & Peripherals		4,276		328,183
	Target Corp.		Multiline Retail		2,944		583,118
	The Coca-Cola Co.		Beverages		9,352		492,944
	The Procter & Gamble Co.		Household Products		3,516		476,172
	United Parcel Service Inc., B		Air Freight & Logistics		2,916		495,691


							11,338,588

	Total Common Stocks (Cost $22,794,313)						26,146,316

	Preferred Stocks (Cost $455,703) 1.5%
	Brazil 1.5%
d	Itau Unibanco Holding SA, 1.949%, pfd.		Banks		79,400		393,553

	Total Investments (Cost $23,250,016) 99.7%						26,539,869
	Other Assets, less Liabilities 0.3%						92,017

	Net Assets 100.0%					$	26,631,886



franklintempleton.com	Annual Report	43

FRANKLIN TEMPLETON ETF TRUST

STATEMENT OF INVESTMENTS

Franklin LibertyQ Global Dividend ETF (continued)

^aSecurity was purchased pursuant to Rule 144A under the Securities Act of 1933 and may be sold in transactions exempt from registration only to qualified institutional buyers or in a public offering registered under the Securities Act of 1933. At March 31, 2021, the value of this security was $202,040, representing 0.8% of net assets.

^bSecurity was purchased pursuant to Regulation S under the Securities Act of 1933, which exempts from registration securities offered and sold outside of the United States. Such a security cannot be sold in the United States without either an effective registration statement filed pursuant to the Securities Act of 1933, or pursuant to an exemption from registration. At March 31, 2021, the value of this security was $202,040, representing 0.8% of net assets.

^cNon-income producing.

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

At March 31, 2021, 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

68,770

6/18/21

(683

)

*As of period end.



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

FRANKLIN TEMPLETON ETF TRUST

Financial Highlights

Franklin LibertyQ Global Equity ETF



	Year Ended March 31,

	2021			2020			2019			2018			2017^a

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

Net asset value, beginning of year	$	26.77		$	30.90		$	30.14		$	27.18		$	25.32


Income from investment operations^b:

Net investment income^c		0.81			0.90			0.89			0.74			0.56

Net realized and unrealized gains (losses)		10.97			(4.00	)		0.67			3.01			1.92


Total from investment operations		11.78			(3.10	)		1.56			3.75			2.48


Less distributions from net investment income		(0.90	)		(1.03	)		(0.80	)		(0.79	)		(0.62	)


Net asset value, end of year	$	37.65		$	26.77		$	30.90		$	30.14		$	27.18


Total return^d		44.55%			(10.53)%			5.44%			13.91%			9.95%

Ratios to average net assets^e

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

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

Net investment income		2.45%			2.86%			2.99%			2.53%			2.60%

Supplemental data

Net assets, end of year (000’s)		$15,059			$16,059			$24,721			$18,082			$21,744

Portfolio turnover rate^g		31.70%	^h		27.85%	^h		34.99%			35.01%			13.84%

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

^cBased on average daily shares outstanding.

^eRatios are annualized for periods less than one year.

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

^gPortfolio turnover rate includes portfolio transactions that are executed as a result of the Fund offering and redeeming Creation Units solely for cash (“Cash creations”).

^hPortfolio turnover rate excluding cash creations was as follows:

31.70%

27.85%



franklintempleton.com	The accompanying notes are an integral part of these financial statements. \| Annual Report	45

FRANKLIN TEMPLETON ETF TRUST

Statement of Investments, March 31, 2021

Franklin LibertyQ Global Equity ETF



		Industry			Shares		Value
	Common Stocks and Other Equity Interests 98.3%
	Australia 4.7%
	AGL Energy Ltd.		Multi-Utilities			822	$	6,042
	Aurizon Holdings Ltd.		Road & Rail			2,360		7,010
	BHP Group Ltd.		Metals & Mining			3,776		130,282
	Brambles Ltd.		Commercial Services & Supplies			1,742		14,038
a	Cimic Group Ltd.		Construction & Engineering			76		1,018
	Coca-Cola Amatil Ltd.		Beverages			504		5,155
	Coles Group Ltd.		Food & Staples Retailing			1,498		18,267
	CSL Ltd.		Biotechnology			560		112,880
	Evolution Mining Ltd.		Metals & Mining			1,606		4,991
	Fortescue Metals Group Ltd.		Metals & Mining			3,426		52,162
	Magellan Financial Group Ltd.		Capital Markets			144		4,954
	Medibank Private Ltd.		Insurance			4,082		8,705
	Newcrest Mining Ltd.		Metals & Mining			718		13,354
	Northern Star Resources Ltd.		Metals & Mining			648		4,679
	REA Group Ltd.		Interactive Media & Services			62		6,693
	Rio Tinto Ltd.		Metals & Mining			584		49,262
	Rio Tinto PLC		Metals & Mining			1,698		130,022
	Sonic Healthcare Ltd.		Health Care Providers & Services			456		12,187
	Telstra Corp. Ltd.		Diversified Telecommunication Services			5,156		13,352
	Washington H. Soul Pattinson & Co. Ltd.		Oil, Gas & Consumable Fuels			42		1,010
	Wesfarmers Ltd.		Multiline Retail			1,522		61,057
	Woolworths Group Ltd.		Food & Staples Retailing			1,448		45,074


								702,194

	Austria 0.0%^†
	OMV AG		Oil, Gas & Consumable Fuels			74		3,762

	Belgium 0.1%
	Colruyt SA		Food & Staples Retailing			72		4,304
	Proximus SADP		Diversified Telecommunication Services			180		3,926


								8,230

	Brazil 0.6%
	Ambev SA		Beverages			4,400		11,922
	BB Seguridade Participacoes SA		Insurance			1,200		5,157
	Engie Brasil Energia SA		Independent Power and Renewable Electricity Producers			200		1,483
	Hypera SA		Pharmaceuticals			400		2,270
	Telefonica Brasil SA		Diversified Telecommunication Services			600		4,703
	TIM SA		Wireless Telecommunication Services			1,200		2,694
	Vale SA		Metals & Mining			3,800		65,973


								94,202

	Canada 2.4%
	Algonquin Power & Utilities Corp.		Multi-Utilities			440		6,970
	Alimentation Couche-Tard Inc., B		Food & Staples Retailing			444		14,314
	B2Gold Corp.		Metals & Mining			1,056		4,546
	BCE Inc.		Diversified Telecommunication Services			186		8,395
	Canadian Apartment Properties REIT		Equity Real Estate Investment Trusts (REITs	)		80		3,428
	Canadian National Railway Co.		Road & Rail			766		88,884
a	CGI Inc., A		IT Services			230		19,156
	Constellation Software Inc.		Software			24		33,513
	Dollarama Inc.		Multiline Retail			166		7,333
	Empire Co. Ltd., A		Food & Staples Retailing			156		4,863
	Franco-Nevada Corp.		Metals & Mining			198		24,811
	Hydro One Ltd.		Electric Utilities			280		6,521
	IGM Financial Inc.		Capital Markets			70		2,133
	Keyera Corp.		Oil, Gas & Consumable Fuels			152		3,159
	Kirkland Lake Gold Ltd.		Metals & Mining			334		11,278



46	Annual Report	franklintempleton.com

FRANKLIN TEMPLETON ETF TRUST

STATEMENT OF INVESTMENTS

Franklin LibertyQ Global Equity ETF (continued)



		Industry			Shares		Value
	Common Stocks and Other Equity Interests (continued)
	Canada (continued)
	Magna International Inc.		Auto Components			352	$	30,998
	Metro Inc., A		Food & Staples Retailing			284		12,954
	Power Corp. of Canada		Insurance			580		15,242
	Quebecor Inc., B		Media			154		4,134
	RioCan Real Estate Investment Trust		Equity Real Estate Investment Trusts (REITs	)		168		2,601
	Rogers Communications Inc., B		Wireless Telecommunication Services			346		15,953
	Saputo Inc.		Food Products			224		6,735
	Shaw Communications Inc.		Media			376		9,777
	TELUS Corp.		Diversified Telecommunication Services			416		8,285
	Wheaton Precious Metals Corp.		Metals & Mining			420		16,040


								362,023

	Chile 0.1%
	Colbun SA		Independent Power and Renewable Electricity Producers			10,188		1,988
	Compania Cervecerias Unidas SA		Beverages			138		1,214
	Enel Americas SA		Electric Utilities			33,256		5,560
a	Enel Chile SA		Electric Utilities			32,890		2,567


								11,329

	China 3.6%
	A-Living Services Co. Ltd., H		Commercial Services & Supplies			500		2,219
	Agricultural Bank of China Ltd., A		Banks			1,000		518
	Agricultural Bank of China Ltd., H		Banks			36,000		14,401
	Anhui Conch Cement Co. Ltd., A		Construction Materials			400		3,123
	Anhui Conch Cement Co. Ltd., H		Construction Materials			1,670		10,858
	Bank of Beijing Co. Ltd., A		Banks			600		439
	Bank of China Ltd., A		Banks			3,200		1,634
	Bank of China Ltd., H		Banks			104,000		39,596
	Bank of Communications Co. Ltd., A		Banks			2,000		1,509
	Bank of Communications Co. Ltd., H		Banks			10,000		6,367
	Baoshan Iron & Steel Co. Ltd., A		Metals & Mining			1,200		1,478
	Beijing Enterprises Holdings Ltd.		Gas Utilities			1,000		3,531
	Brilliance China Automotive Holdings Ltd.		Automobiles			4,000		3,756
	China Cinda Asset Management Co. Ltd., H		Capital Markets			12,000		2,500
	China CITIC Bank Corp. Ltd., H		Banks			10,000		5,081
	China Conch Venture Holdings Ltd.		Construction & Engineering			2,000		9,403
	China Construction Bank Corp., H		Banks			100,000		84,122
	China Everbright Bank Co. Ltd., A		Banks			800		497
	China Everbright Bank Co. Ltd., H		Banks			6,000		2,616
b,c	China Feihe Ltd., 144A, Reg S		Food Products			2,000		5,660
	China Hongqiao Group Ltd.		Metals & Mining			2,000		2,670
	China Medical System Holdings Ltd.		Pharmaceuticals			2,000		3,957
	China Minsheng Banking Corp. Ltd., A		Banks			600		462
	China Minsheng Banking Corp. Ltd., H		Banks			8,000		4,641
	China National Building Material Co. Ltd., H		Construction Materials			2,000		2,886
	China Pacific Insurance Group Co. Ltd., A		Insurance			200		1,153
	China Pacific Insurance Group Co. Ltd., H		Insurance			2,000		7,885
	China Petroleum & Chemical Corp., A		Oil, Gas & Consumable Fuels			2,000		1,320
	China Railway Group Ltd., H		Construction & Engineering			2,000		1,057
	China Resources Cement Holdings Ltd.		Construction Materials			4,000		4,492
	China Shenhua Energy Co. Ltd., A		Oil, Gas & Consumable Fuels			800		2,451
	China Shenhua Energy Co. Ltd., H		Oil, Gas & Consumable Fuels			5,000		10,303
	China Taiping Insurance Holdings Co. Ltd.		Insurance			400		815
	China Yangtze Power Co. Ltd., A		Independent Power and Renewable Electricity Producers			1,200		3,921
	Chongqing Rural Commercial Bank Co. Ltd., H		Banks			2,000		862



franklintempleton.com	Annual Report	47

FRANKLIN TEMPLETON ETF TRUST

STATEMENT OF INVESTMENTS

Franklin LibertyQ Global Equity ETF (continued)



		Industry		Shares		Value
	Common Stocks and Other Equity Interests (continued)
	China (continued)
	Country Garden Services Holdings Co. Ltd.		Commercial Services & Supplies		1,500	$	15,204
	Dali Foods Group Co. Ltd.		Food Products		3,000		1,706
	Daqin Railway Co. Ltd., A		Road & Rail		2,800		2,991
	Dongfeng Motor Group Co. Ltd., H		Automobiles		4,000		3,715
	East Money Information Co. Ltd.		Capital Markets		400		1,662
	Far East Horizon Ltd.		Diversified Financial Services		4,000		4,805
	Focus Media Information Technology Co. Ltd.		Media		460		651
	Foshan Haitian Flavouring & Food Co. Ltd.		Food Products		240		5,845
	Fuyao Glass Industry Group Co. Ltd., A		Auto Components		400		2,809
	Fuyao Group Glass Industries Co. Ltd., H		Auto Components		400		2,380
	Great Wall Motor Co. Ltd., H		Automobiles		2,000		5,544
a	GSX Techedu Inc., ADR		Diversified Consumer Services		64		2,168
	Guangdong Investment Ltd.		Water Utilities		4,000		6,514
	Guangzhou R&F Properties Co. Ltd., H		Real Estate Management & Development		1,600		2,111
	Henan Shuanghui Investment & Development Co. Ltd.		Food Products		200		1,250
	Hualan Biological Engineering Inc.		Biotechnology		400		2,423
	Industrial and Commercial Bank of China Ltd.		Banks		3,200		2,702
	Industrial and Commercial Bank of China Ltd., H		Banks		66,000		47,371
	Inner Mongolia Yili Industrial Group Co. Ltd., A		Food Products		400		2,440
	Jiangsu Expressway Co. Ltd., H		Transportation Infrastructure		2,000		2,490
	Jiangsu Hengli Hydraulic Co. Ltd., A		Machinery		200		2,727
	Jiangsu Yanghe Brewery JST Co. Ltd., A		Beverages		200		5,020
	Kingboard Holdings Ltd.		Electronic Equipment, Instruments & Components		1,000		5,402
	Kweichow Moutai Co. Ltd., A		Beverages		67		20,515
	Lee & Man Paper Manufacturing Ltd.		Paper & Forest Products		2,000		1,839
b,c	Longfor Group Holdings Ltd., 144A, Reg S		Real Estate Management & Development		2,000		13,248
	LONGi Green Energy Technology Co. Ltd., A		Semiconductors & Semiconductor Equipment		200		2,682
	Luzhou Laojiao Co. Ltd., A		Beverages		100		3,430
	Muyuan Foods Co. Ltd.		Food Products		170		2,592
	NetEase Inc., ADR		Entertainment		304		31,391
	New Hope Liuhe Co. Ltd.		Food Products		400		1,219
	Nine Dragons Paper Holdings Ltd.		Paper & Forest Products		2,000		2,927
	PICC Property and Casualty Co. Ltd., H		Insurance		4,000		3,468
b	Postal Savings Bank of China Co. Ltd., H		Banks		8,000		5,979
	SAIC Motor Corp Ltd		Automobiles		400		1,199
	Shaanxi Coal Industry Co. Ltd.		Oil, Gas & Consumable Fuels		200		337
	Shandong Hualu Hengsheng Chemical Co. Ltd., A		Chemicals		200		1,145
	Shanghai Pharmaceuticals Holding Co. Ltd., H		Health Care Providers & Services		400		785
	Shanghai Pudong Development Bank Co. Ltd., A		Banks		400		670
	Shanxi Xinghuacun Fen Wine Factory Co. Ltd., A		Beverages		100		5,072
	Shenzhen Goodix Technology Co. Ltd., A		Semiconductors & Semiconductor Equipment		200		3,416
	Shenzhen International Holdings Ltd.		Transportation Infrastructure		2,000		3,349
	Shenzhen Mindray Bio-Medical Electronics Co. Ltd., A		Health Care Equipment & Supplies		100		6,083
	Sinotruk Hong Kong Ltd.		Machinery		1,000		2,997
	The People’s Insurance Co. Group of China Ltd., H		Insurance		6,000		1,945
a	Vipshop Holdings Ltd., ADR		Internet & Direct Marketing Retail		234		6,987
	Wanhua Chemical Group Co. Ltd., A		Chemicals		200		3,219
	Want Want China Holdings Ltd.		Food Products		4,000		3,000
	Wens Foodstuffs Group Co. Ltd.		Food Products		720		1,857
	Wuhu Sanqi Interactive Entertainment NetworkTechnology Group Co. Ltd.		Entertainment		400		1,339
	Wuliangye Yibin Co. Ltd., A		Beverages		300		12,253
a	Yihai International Holding Ltd.		Food Products		600		6,213
	Yuexiu Property Co. Ltd.		Real Estate Management & Development		8,000		1,811



48	Annual Report	franklintempleton.com

FRANKLIN TEMPLETON ETF TRUST

STATEMENT OF INVESTMENTS

Franklin LibertyQ Global Equity ETF (continued)



		Industry			Shares		Value
	Common Stocks and Other Equity Interests (continued)
	China (continued)
	Zhejiang NHU Co. Ltd.		Pharmaceuticals			200	$	1,165
	ZTO Express Cayman Inc., ADR		Air Freight & Logistics			284		8,279


								540,524

	Colombia 0.0%^†
	Ecopetrol SA		Oil, Gas & Consumable Fuels			5,884		3,788

	Denmark 1.3%
	Coloplast AS, B		Health Care Equipment & Supplies			192		28,940
	Novo Nordisk AS, B		Pharmaceuticals			2,046		138,950
	Novozymes AS		Chemicals			174		11,172
	Pandora AS		Textiles, Apparel & Luxury Goods			162		17,398
	Tryg AS		Insurance			108		2,553


								199,013

	Egypt 0.0%^†
	Eastern Co. SAE		Tobacco			2,424		1,761
	ElSewedy Electric Co.		Electrical Equipment			742		426


								2,187

	Finland 0.4%
	Elisa OYJ		Diversified Telecommunication Services			160		9,617
	Kone OYJ, B		Machinery			288		23,579
	Orion OYJ		Pharmaceuticals			138		5,542
	UPM-Kymmene OYJ		Paper & Forest Products			408		14,688


								53,426

	France 0.4%
	Biomerieux		Health Care Equipment & Supplies			30		3,826
	Hermes International		Textiles, Apparel & Luxury Goods			38		42,160
	Ipsen SA		Pharmaceuticals			14		1,204
	Klepierre SA		Equity Real Estate Investment Trusts (REITs	)		98		2,290
	Sartorius Stedim Biotech		Life Sciences Tools & Services			22		9,081


								58,561

	Germany 0.1%
a	HelloFresh SE		Internet & Direct Marketing Retail			90		6,727
	Hochtief AG		Construction & Engineering			16		1,435
	Rational AG		Machinery			4		3,115


								11,277

	Greece 0.0%^†
	Hellenic Telecommunications Organization SA		Diversified Telecommunication Services			204		3,280
	JUMBO SA		Specialty Retail			112		2,057


								5,337

	Hong Kong 0.7%
	CK Asset Holdings Ltd.		Real Estate Management & Development			2,000		12,142
	CK Hutchison Holdings Ltd.		Industrial Conglomerates			1,500		11,953
	HKT Trust and HKT Ltd.		Diversified Telecommunication Services			6,000		8,551
	Jardine Matheson Holdings Ltd.		Industrial Conglomerates			200		13,078
	Kingboard Laminates Holdings Ltd.		Electronic Equipment, Instruments & Components			1,000		2,164
	Power Assets Holdings Ltd.		Electric Utilities			1,500		8,856
	Sino Land Co. Ltd.		Real Estate Management & Development			4,000		5,567
	Sun Hung Kai Properties Ltd.		Real Estate Management & Development			1,000		15,152
	The Wharf Holdings Ltd.		Real Estate Management & Development			2,000		5,299
c	WH Group Ltd., Reg S		Food Products			5,000		4,052



franklintempleton.com	Annual Report	49

FRANKLIN TEMPLETON ETF TRUST

STATEMENT OF INVESTMENTS

Franklin LibertyQ Global Equity ETF (continued)



		Industry		Shares		Value
	Common Stocks and Other Equity Interests (continued)
	Hong Kong (continued)
	Wharf Real Estate Investment Co. Ltd.		Real Estate Management & Development		1,000	$	5,602
	Xinyi Glass Holdings Ltd.		Building Products		2,000		6,534


							98,950

	India 1.0%
	Bajaj Auto Ltd.		Automobiles		70		3,514
	Eicher Motors Ltd.		Automobiles		100		3,561
	Hero Motocorp Ltd.		Automobiles		100		3,985
	Hindustan Unilever Ltd.		Household Products		880		29,266
	Infosys Ltd., ADR		IT Services		4,208		78,774
	Tata Consultancy Services Ltd.		IT Services		800		34,772


							153,872

	Indonesia 0.2%
	Adaro Energy Tbk PT		Oil, Gas & Consumable Fuels		13,000		1,052
a	Gudang Garam Tbk PT		Tobacco		600		1,494
	Indofood CBP Sukses Makmur Tbk PT		Food Products		3,000		1,900
	Indofood Sukses Makmur Tbk PT		Food Products		3,200		1,454
	Kalbe Farma Tbk PT		Pharmaceuticals		16,600		1,794
	Perusahaan Perseroan (Persero) PT TelekomunikasiIndonesia Tbk, B		Diversified Telecommunication Services		60,600		14,269
	Unilever Indonesia Tbk PT		Household Products		12,000		5,432
	United Tractors Tbk PT		Oil, Gas & Consumable Fuels		2,000		3,047


							30,442

	Israel 0.1%
	Azrieli Group Ltd.		Real Estate Management & Development		28		1,731
a	Check Point Software Technologies Ltd.		Software		156		17,467
	ICL Group Ltd.		Chemicals		606		3,556


							22,754

	Italy 0.9%
	DiaSorin SpA		Health Care Equipment & Supplies		26		4,180
	Enel SpA		Electric Utilities		7,496		74,824
	Ferrari NV		Automobiles		130		27,250
a	Moncler SpA		Textiles, Apparel & Luxury Goods		226		12,981
	Recordati Industria Chimica e Farmaceutica SpA		Pharmaceuticals		130		7,008
	Snam SpA		Gas Utilities		2,004		11,136
	Telecom Italia SpA/Milano, di Risp		Diversified Telecommunication Services		4,460		2,570


							139,949

	Japan 6.1%
	ABC-Mart Inc.		Specialty Retail		50		2,824
	Advantest Corp.		Semiconductors & Semiconductor Equipment		200		17,520
	Astellas Pharma Inc.		Pharmaceuticals		2,100		32,346
	Azbil Corp.		Electronic Equipment, Instruments & Components		100		4,312
	Bandai Namco Holdings Inc.		Leisure Products		200		14,286
	Bridgestone Corp.		Auto Components		600		24,299
	Brother Industries Ltd.		Technology Hardware, Storage & Peripherals		200		4,433
	Calbee Inc.		Food Products		100		2,554
	Capcom Co. Ltd.		Entertainment		200		6,507
	Chugai Pharmaceutical Co. Ltd.		Pharmaceuticals		620		25,187
	Daito Trust Construction Co. Ltd.		Real Estate Management & Development		100		11,611
	Hitachi Ltd.		Electronic Equipment, Instruments & Components		800		36,228
	Hoya Corp.		Health Care Equipment & Supplies		470		55,315
	Iida Group Holdings Co. Ltd.		Household Durables		200		4,843
	ITOCHU Corp.		Trading Companies & Distributors		1,600		51,939
	Japan Post Bank Co. Ltd.		Banks		600		5,777



50	Annual Report	franklintempleton.com

FRANKLIN TEMPLETON ETF TRUST

STATEMENT OF INVESTMENTS

Franklin LibertyQ Global Equity ETF (continued)



		Industry		Shares		Value
	Common Stocks and Other Equity Interests (continued)
	Japan (continued)
	Japan Tobacco Inc.		Tobacco		1,600	$	30,769
	Kajima Corp.		Construction & Engineering		400		5,687
	Kakaku.com Inc.		Interactive Media & Services		200		5,466
	KAO Corp.		Personal Products		507		33,554
	KDDI Corp.		Wireless Telecommunication Services		2,300		70,665
	M3 Inc.		Health Care Technology		200		13,703
	Meiji Holdings Co. Ltd.		Food Products		100		6,444
	Mitsubishi Gas Chemical Co. Inc.		Chemicals		200		4,912
	Monotaro Co. Ltd.		Trading Companies & Distributors		200		5,419
	MS&AD Insurance Group Holdings Inc.		Insurance		400		11,761
	Murata Manufacturing Co. Ltd.		Electronic Equipment, Instruments & Components		300		24,005
	Nexon Co. Ltd.		Entertainment		600		19,493
	Nihon M&A Center Inc.		Professional Services		200		5,417
	Nintendo Co. Ltd.		Entertainment		104		58,174
	Nippon Telegraph & Telephone Corp.		Diversified Telecommunication Services		1,800		46,295
	Nitori Holdings Co. Ltd.		Specialty Retail		70		13,572
	Nitto Denko Corp.		Chemicals		100		8,561
	Nomura Research Institute Ltd.		IT Services		200		6,199
	Obayashi Corp.		Construction & Engineering		600		5,511
	OBIC Co. Ltd.		IT Services		60		10,985
	Ono Pharmaceutical Co. Ltd.		Pharmaceuticals		200		5,231
	Oracle Corp. Japan		Software		50		4,887
	Pigeon Corp.		Household Products		100		3,801
	Sekisui House Ltd.		Household Durables		800		17,187
	SG Holdings Co. Ltd.		Air Freight & Logistics		200		4,592
	SHIMANO Inc.		Leisure Products		40		9,548
	Shimizu Corp.		Construction & Engineering		400		3,243
	Shionogi & Co. Ltd.		Pharmaceuticals		300		16,159
	Shoei Co. Ltd.		Real Estate Management & Development		300		3,543
	Softbank Corp.		Wireless Telecommunication Services		3,000		39,054
	Sumitomo Mitsui Financial Group Inc.		Banks		700		25,384
	Taisei Corp.		Construction & Engineering		100		3,864
	Tokyo Electron Ltd.		Semiconductors & Semiconductor Equipment		180		76,219
	Tosoh Corp.		Chemicals		400		7,667
	Tsuruha Holdings Inc.		Food & Staples Retailing		20		2,585
	USS Co. Ltd.		Specialty Retail		200		3,917
	Welcia Holdings Co. Ltd.		Food & Staples Retailing		100		3,439
	Zozo Inc.		Internet & Direct Marketing Retail		200		5,919


							922,812

	Kuwait 0.0%^†
	Mobile Telecommunications Co. KSCP		Wireless Telecommunication Services		792		1,585

	Macau 0.1%
a	Galaxy Entertainment Group Ltd.		Hotels, Restaurants & Leisure		2,000		18,008

	Malaysia 0.2%
	AMMB Holdings Bhd.		Beverages		800		565
	Digi.com Bhd.		Wireless Telecommunication Services		2,800		2,458
	Fraser & Neave Holdings Bhd.		Beverages		400		2,894
	Hartalega Holdings Bhd.		Health Care Equipment & Supplies		2,000		4,307
	Kossan Rubber Industries		Health Care Equipment & Supplies		800		629
	Nestle (Malaysia) Bhd.		Food Products		140		4,558
	Petronas Dagangan Bhd.		Oil, Gas & Consumable Fuels		200		967
	Petronas Gas Bhd.		Gas Utilities		1,200		4,631
	Supermax Corp. Bhd		Health Care Equipment & Supplies		822		755
	Top Glove Corp. Bhd.		Health Care Equipment & Supplies		5,000		5,450
	Westports Holdings Bhd.		Transportation Infrastructure		200		203


							27,417



franklintempleton.com	Annual Report	51

FRANKLIN TEMPLETON ETF TRUST

STATEMENT OF INVESTMENTS

Franklin LibertyQ Global Equity ETF (continued)



		Industry			Shares		Value
	Common Stocks and Other Equity Interests (continued)
	Mexico 0.2%
	Fibra Uno Administracion SA de CV		Equity Real Estate Investment Trusts (REITs	)		2,372	$	2,769
	Grupo Mexico SAB de CV, B		Metals & Mining			1,952		10,252
	Kimberly-Clark de Mexico SAB de CV, A		Household Products			2,042		3,486
	Megacable Holdings SAB de CV		Media			388		1,389
	Wal-Mart de Mexico SAB de CV, V		Food & Staples Retailing			6,106		19,240


								37,136

	Netherlands 0.5%
a	Adyen NV		IT Services			10		22,372
	Koninklijke Ahold Delhaize NV		Food & Staples Retailing			1,256		35,059
	Koninklijke KPN NV		Diversified Telecommunication Services			1,636		5,564
	Koninklijke Vopak NV		Oil, Gas & Consumable Fuels			50		2,495
	NN Group NV		Insurance			206		10,094


								75,584

	New Zealand 0.2%
	Fisher & Paykel Healthcare Corp. Ltd.		Health Care Equipment & Supplies			826		18,570
	Spark New Zealand Ltd.		Diversified Telecommunication Services			2,526		7,925
a	The a2 Milk Co. Ltd.		Food Products			706		4,262


								30,757

	Norway 0.3%
	Mowi ASA		Food Products			468		11,634
	Orkla ASA		Food Products			836		8,211
	Telenor ASA		Diversified Telecommunication Services			762		13,434
	Yara International ASA		Chemicals			90		4,689


								37,968

	Philippines 0.0%^†
	Globe Telecom Inc.		Wireless Telecommunication Services			50		1,937
	Manila Electric Co.		Electric Utilities			300		1,681
	Metro Pacific Investments Corp.		Diversified Financial Services			4,000		308
	PLDT Inc.		Wireless Telecommunication Services			70		1,761


								5,687

	Poland 0.0%^†
	Polski Koncern Naftowy Orlen SA		Oil, Gas & Consumable Fuels			180		2,895
	Polskie Gornictwo Naftowe i Gazownictwo SA		Oil, Gas & Consumable Fuels			944		1,438


								4,333

	Portugal 0.0%^†
	Jeronimo Martins SGPS SA		Food & Staples Retailing			246		4,149

	Qatar 0.1%
	Industries Qatar QSC		Industrial Conglomerates			2,152		7,063
	Masraf Al Rayan QSC		Banks			2,934		3,457
	Mesaieed Petrochemical Holding Co.		Chemicals			4,942		2,525
	Qatar Electricity & Water Co. QSC		Multi-Utilities			764		3,563
	Qatar Fuel QSC		Oil, Gas & Consumable Fuels			600		2,826


								19,434

	Russia 1.6%
	Alrosa PJSC		Metals & Mining			3,864		5,411
	Evraz PLC		Metals & Mining			872		6,954
	Gazprom PJSC		Oil, Gas & Consumable Fuels			16,050		48,510
	Inter RAO UES PJSC		Electric Utilities			58,124		3,948
	LUKOIL PJSC		Oil, Gas & Consumable Fuels			626		50,727
	MMC Norilsk Nickel PJSC		Metals & Mining			112		35,282
	Mobile TeleSystems PJSC, ADR		Wireless Telecommunication Services			516		4,304



52	Annual Report	franklintempleton.com

FRANKLIN TEMPLETON ETF TRUST

STATEMENT OF INVESTMENTS

Franklin LibertyQ Global Equity ETF (continued)



		Industry		Shares		Value
	Common Stocks and Other Equity Interests (continued)
	Russia (continued)
	Moscow Exchange MICEX		Capital Markets		708	$	1,629
	NLMK PJSC		Metals & Mining		1,966		6,282
c	Novatek PJSC, GDR, Reg S		Oil, Gas & Consumable Fuels		98		19,355
c	PhosAgro PJSC, GDR, Reg S		Chemicals		146		2,543
	Polymetal International PLC		Metals & Mining		290		5,699
	Polyus Gold OJSC		Metals & Mining		42		7,778
	Rosneft PJSC		Oil, Gas & Consumable Fuels		1,260		9,525
	Severstal PAO		Metals & Mining		422		8,600
	Surgutneftegas PJSC		Oil, Gas & Consumable Fuels		7,460		3,413
	Tatneft PAO		Oil, Gas & Consumable Fuels		2,380		18,843


							238,803

	Saudi Arabia 0.5%
	Abdullah Al Othaim Markets Co.		Food & Staples Retailing		40		1,348
	Advanced Petrochemical Co.		Chemicals		158		3,075
	Al-Rajhi Bank		Banks		1,058		27,872
a	Bupa Arabia for Cooperative Insurance Co.		Insurance		52		1,658
	Jarir Marketing Co.		Specialty Retail		94		4,562
	Saudi Airlines Catering Co.		Hotels, Restaurants & Leisure		30		608
	Saudi Arabian Fertilizer Co.		Chemicals		226		5,930
	Saudi Cement Co.		Construction Materials		104		1,841
	Saudi Telecom Co.		Diversified Telecommunication Services		570		19,272
	Yanbu National Petrochemical Co.		Chemicals		264		4,871


							71,037

	Singapore 0.2%
	Singapore Exchange Ltd.		Capital Markets		1,200		8,905
	Singapore Telecommunications Ltd.		Diversified Telecommunication Services		9,200		16,707
	Venture Corp. Ltd.		Electronic Equipment, Instruments & Components		300		4,479


							30,091

	South Africa 0.3%
	African Rainbow Minerals Ltd.		Metals & Mining		66		1,243
	AngloGold Ashanti Ltd.		Metals & Mining		358		7,803
	Clicks Group Ltd.		Food & Staples Retailing		268		4,363
	Exxaro Resources Ltd.		Oil, Gas & Consumable Fuels		340		4,003
	Impala Platinum Holdings Ltd.		Metals & Mining		414		7,674
	Kumba Iron Ore Ltd.		Metals & Mining		128		5,275
	Mr. Price Group Ltd.		Specialty Retail		326		4,274
	Tiger Brands Ltd.		Food Products		204		2,912
	Vodacom Group Ltd.		Wireless Telecommunication Services		792		6,772


							44,319

	South Korea 1.6%
	BGF Retail Co. Ltd.		Food & Staples Retailing		4		558
	Coway Co. Ltd.		Household Durables		62		3,588
	Hana Financial Group Inc.		Banks		348		13,160
	Hyundai Marine & Fire Insurance Co. Ltd.		Insurance		68		1,472
	Industrial Bank of Korea		Banks		200		1,619
	KB Financial Group Inc.		Banks		444		22,048
	Korea Zinc Co. Ltd.		Metals & Mining		8		2,888
	KT&G Corp.		Tobacco		150		10,789
	Kumho Petrochemical Co. Ltd.		Chemicals		18		4,215
	NCSoft Corp.		Entertainment		16		12,342
a	Pearl Abyss Corp.		Entertainment		10		2,722
	S-1 Corp.		Commercial Services & Supplies		16		1,155
	Samsung Card Co. Ltd.		Consumer Finance		14		426
	Samsung Electronics Co. Ltd.		Technology Hardware, Storage & Peripherals		2,014		144,855



franklintempleton.com	Annual Report	53

FRANKLIN TEMPLETON ETF TRUST

STATEMENT OF INVESTMENTS

Franklin LibertyQ Global Equity ETF (continued)



		Industry		Shares		Value
	Common Stocks and Other Equity Interests (continued)
	South Korea (continued)
	Seegene Inc.		Biotechnology		10	$	1,150
	Shinhan Financial Group Co. Ltd.		Banks		452		14,957
	Woori Financial Group Inc.		Banks		528		4,712


							242,656

	Spain 1.4%
a	Banco Santander SA		Banks		13,775		46,902
	Enagas SA		Gas Utilities		264		5,746
	Endesa SA		Electric Utilities		364		9,651
	Iberdrola SA		Electric Utilities		5,637		72,778
	Industria de Diseno Textil SA		Specialty Retail		1,284		42,405
	Red Electrica Corp. SA		Electric Utilities		502		8,909
	Telefonica SA		Diversified Telecommunication Services		4,138		18,564


							204,955

	Sweden 0.5%
	Boliden AB		Metals & Mining		300		11,151
	Epiroc AB, A		Machinery		390		8,850
	Epiroc AB, B		Machinery		250		5,219
b,c	Evolution Gaming Group AB, 144A, Reg S		Hotels, Restaurants & Leisure		140		20,656
	ICA Gruppen AB		Food & Staples Retailing		88		4,311
a	Kinnevik AB, B		Diversified Financial Services		112		5,456
a	Svenska Cellulosa AB, B		Paper & Forest Products		446		7,908
	Swedish Match AB		Tobacco		128		10,012


							73,563

	Switzerland 3.5%
	EMS-Chemie Holding AG		Chemicals		14		12,555
	Geberit AG		Building Products		42		26,847
	Kuehne + Nagel International AG		Marine		30		8,597
	Logitech International SA		Technology Hardware, Storage & Peripherals		158		16,644
	Nestle SA		Food Products		1,194		133,641
	Novartis AG		Pharmaceuticals		1,592		136,626
	Partners Group Holding AG		Capital Markets		26		33,344
	Roche Holding AG		Pharmaceuticals		404		131,118
	SGS SA		Professional Services		4		11,395
	Swiss Prime Site AG		Real Estate Management & Development		40		3,704
	Swisscom AG		Diversified Telecommunication Services		32		17,238


							531,709

	Taiwan 2.2%
	Accton Technology Corp.		Communications Equipment		400		3,869
	Advantech Co. Ltd.		Technology Hardware, Storage & Peripherals		373		4,628
	Asia Cement Corp.		Construction Materials		4,000		6,701
	Asustek Computer Inc.		Technology Hardware, Storage & Peripherals		400		5,222
	Catcher Technology Co. Ltd.		Technology Hardware, Storage & Peripherals		670		4,966
	Chicony Electronics Co. Ltd.		Technology Hardware, Storage & Peripherals		1,345		4,785
	China Development Financial Holding Corp.		Insurance		12,000		4,416
	Chunghwa Telecom Co. Ltd.		Diversified Telecommunication Services		4,000		15,631
a	Far EasTone Telecommunications Co. Ltd.		Wireless Telecommunication Services		2,000		4,493
	Feng Tay Enterprise Co. Ltd.		Textiles, Apparel & Luxury Goods		666		4,552
	Globalwafers Co. Ltd.		Semiconductors & Semiconductor Equipment		200		5,257
	Largan Precision Co. Ltd.		Electronic Equipment, Instruments & Components		120		13,500
	Lite-On Technology Corp.		Technology Hardware, Storage & Peripherals		4,000		8,804
	Novatek Microelectronics Corp. Ltd.		Semiconductors & Semiconductor Equipment		670		13,502
	Pegatron Corp.		Technology Hardware, Storage & Peripherals		2,000		5,194
	Powertech Technology Inc.		Semiconductors & Semiconductor Equipment		700		2,588
	Ruentex Development Co. Ltd.		Real Estate Management & Development		2,000		3,470



54	Annual Report	franklintempleton.com

FRANKLIN TEMPLETON ETF TRUST

STATEMENT OF INVESTMENTS

Franklin LibertyQ Global Equity ETF (continued)



		Industry			Shares		Value
	Common Stocks and Other Equity Interests (continued)
	Taiwan (continued)
	Synnex Technology International Corp.		Electronic Equipment, Instruments & Components			4,000	$	7,640
	Taiwan Cement Corp.		Construction Materials			6,000		9,841
	Taiwan Mobile Co. Ltd.		Wireless Telecommunication Services			2,000		6,883
	Taiwan Semiconductor Manufacturing Co. Ltd.		Semiconductors & Semiconductor Equipment			7,940		163,347
	United Microelectronics Corp.		Semiconductors & Semiconductor Equipment			6,000		10,556
	Vanguard International Semiconductor Corp.		Semiconductors & Semiconductor Equipment			1,000		3,785
	Walsin Technology Corp.		Electronic Equipment, Instruments & Components			400		3,498
	WPG Holdings Ltd.		Electronic Equipment, Instruments & Components			4,000		6,841


								323,969

	Thailand 0.3%
	Advanced Info Service PCL		Wireless Telecommunication Services			1,600		8,883
	Bumrungrad Hospital PCL		Health Care Providers & Services			600		2,611
	Home Product Center PCL, NVDR		Specialty Retail			6,000		2,842
	Intouch Holdings PCL		Wireless Telecommunication Services			3,200		5,939
	Krung Thai Bank PCL		Banks			1,400		547
	Osotspa PCL, NVDR		Beverages			1,000		1,128
	PTT Exploration and Production PCL, NVDR		Oil, Gas & Consumable Fuels			1,600		5,837
	The Siam Cement PCL		Construction Materials			800		10,214


								38,001

	Turkey 0.1%
	Aselsan Elektronik Sanayi Ve Ticaret A/S		Aerospace & Defense			548		990
	BIM Birlesik Magazalar A/S		Food & Staples Retailing			594		5,067
	Eregli Demir ve Celik Fabrikalari TAS		Metals & Mining			2,200		4,057
	Ford Otomotiv Sanayi AS		Automobiles			122		2,849
	Haci Omer Sabanci Holding A/S		Diversified Financial Services			402		418
	Turkcell Iletisim Hizmetleri A/S		Wireless Telecommunication Services			1,416		2,561
a	Turkiye Is Bankasi A/S, C		Banks			446		260


								16,202

	United Arab Emirates 0.1%
	Aldar Properties PJSC		Real Estate Management & Development			4,402		4,506
	Dubai Islamic Bank PJSC		Banks			1,248		1,546
	Emirates Telecommunications Group Co. PJSC		Diversified Telecommunication Services			2,118		12,478


								18,530

	United Kingdom 5.9%
	Admiral Group PLC		Insurance			310		13,263
	Anglo American PLC		Metals & Mining			1,324		51,925
a	Auto Trader Group PLC		Interactive Media & Services			1,126		8,613
	BAE Systems PLC		Aerospace & Defense			1,676		11,677
	BHP Group PLC		Metals & Mining			2,582		74,614
	British American Tobacco PLC		Tobacco			2,496		95,529
	British Land Co. PLC		Equity Real Estate Investment Trusts (REITs	)		960		6,686
a	BT Group PLC		Diversified Telecommunication Services			10,832		23,135
	Croda International PLC		Chemicals			112		9,809
	Direct Line Insurance Group PLC		Insurance			1,576		6,812
	Ferguson PLC		Trading Companies & Distributors			198		23,679
	GlaxoSmithKline PLC		Pharmaceuticals			6,254		111,137
	Hargreaves Lansdown PLC		Capital Markets			506		10,762
	Hikma Pharmaceuticals PLC		Pharmaceuticals			128		4,019
	Imperial Brands PLC		Tobacco			1,470		30,260
	Intertek Group PLC		Professional Services			176		13,603
a	Kingfisher PLC		Specialty Retail			2,078		9,126
	Land Securities Group PLC		Equity Real Estate Investment Trusts (REITs	)		714		6,798
	M&G PLC		Diversified Financial Services			2,672		7,646
	Mondi PLC		Paper & Forest Products			534		13,630



franklintempleton.com	Annual Report	55

FRANKLIN TEMPLETON ETF TRUST

STATEMENT OF INVESTMENTS

Franklin LibertyQ Global Equity ETF (continued)



		Industry			Shares		Value
	Common Stocks and Other Equity Interests (continued)
	United Kingdom (continued)
a	Next PLC		Multiline Retail			166	$	18,016
a	Persimmon PLC		Household Durables			420		17,037
	RELX PLC		Professional Services			2,306		57,873
	Royal Dutch Shell PLC, A		Oil, Gas & Consumable Fuels			3,806		74,241
	Spirax-Sarco Engineering PLC		Machinery			38		5,977
	The Berkeley Group Holdings PLC		Household Durables			146		8,942
	Unilever PLC		Personal Products			2,920		163,405
	William Morrison Supermarkets PLC		Food & Staples Retailing			1,716		4,320


								882,534

	United States 55.8%
	3M Co.		Industrial Conglomerates			464		89,404
	A O Smith Corp.		Building Products			98		6,626
	AbbVie Inc.		Biotechnology			1,400		151,508
a	ABIOMED Inc.		Health Care Equipment & Supplies			36		11,474
	Accenture PLC, A		IT Services			574		158,567
a	Adobe Inc.		Software			300		142,611
	Air Products and Chemicals Inc.		Chemicals			228		64,146
a	Alexion Pharmaceuticals Inc.		Biotechnology			186		28,441
a	Alphabet Inc., A		Interactive Media & Services			40		82,501
a	Alphabet Inc., C		Interactive Media & Services			40		82,745
	Altria Group Inc.		Tobacco			2,924		149,592
	American Tower Corp.		Equity Real Estate Investment Trusts (REITs	)		476		113,793
	Amgen Inc.		Biotechnology			602		149,784
	Apple Inc.		Technology Hardware, Storage & Peripherals			1,160		141,694
	Applied Materials Inc.		Semiconductors & Semiconductor Equipment			1,068		142,685
a	Arista Networks Inc.		Communications Equipment			44		13,283
	AT&T Inc.		Diversified Telecommunication Services			4,826		146,083
	Best Buy Co. Inc.		Specialty Retail			274		31,458
a	Bio-Rad Laboratories Inc., A		Life Sciences Tools & Services			12		6,854
a	Biogen Inc.		Biotechnology			260		72,735
a	Booking Holdings Inc.		Internet & Direct Marketing Retail			38		88,534
	BorgWarner Inc.		Auto Components			208		9,643
	Bristol-Myers Squibb Co.		Pharmaceuticals			2,214		139,770
	Broadridge Financial Solutions Inc.		IT Services			118		18,066
	C.H. Robinson Worldwide Inc.		Air Freight & Logistics			162		15,460
	Cabot Oil & Gas Corp., A		Oil, Gas & Consumable Fuels			476		8,939
a	Cadence Design Systems Inc.		Software			324		44,385
	Campbell Soup Co.		Food Products			190		9,551
	Carrier Global Corp.		Building Products			734		30,989
	Celanese Corp.		Chemicals			110		16,479
	Cerner Corp.		Health Care Technology			222		15,957
	Church & Dwight Co. Inc.		Household Products			250		21,837
	Cisco Systems Inc.		Communications Equipment			3,334		172,401
	Citrix Systems Inc.		Software			130		18,247
	Clorox Co.		Household Products			190		36,647
	Cognizant Technology Solutions Corp., A		IT Services			590		46,091
	Colgate-Palmolive Co.		Household Products			804		63,379
	Conagra Brands Inc.		Food Products			260		9,776
a	Copart Inc.		Commercial Services & Supplies			238		25,849
	Cummins Inc.		Machinery			176		45,603
	D.R. Horton Inc.		Household Durables			336		29,944
	Dollar General Corp.		Multiline Retail			266		53,897
	Domino’s Pizza Inc.		Hotels, Restaurants & Leisure			28		10,298
	eBay Inc.		Internet & Direct Marketing Retail			634		38,826
	Electronic Arts Inc.		Entertainment			256		34,655
	Eli Lilly and Co.		Pharmaceuticals			986		184,205
	Erie Indemnity Co., A		Insurance			30		6,627



56	Annual Report	franklintempleton.com

FRANKLIN TEMPLETON ETF TRUST

STATEMENT OF INVESTMENTS

Franklin LibertyQ Global Equity ETF (continued)



		Industry			Shares		Value
	Common Stocks and Other Equity Interests (continued)
	United States (continued)
	Expeditors International of Washington Inc.		Air Freight & Logistics			204	$	21,969
	Extra Space Storage Inc.		Equity Real Estate Investment Trusts (REITs	)		124		16,436
a	F5 Networks Inc.		Communications Equipment			66		13,769
a	Facebook Inc., A		Interactive Media & Services			504		148,443
	FactSet Research Systems Inc.		Capital Markets			44		13,578
	Fastenal Co.		Trading Companies & Distributors			740		37,207
a	Fortinet Inc.		Software			78		14,385
	Fox Corp.		Media			332		11,989
	Fox Corp., B		Media			162		5,659
	Garmin Ltd.		Household Durables			168		22,151
	General Mills Inc.		Food Products			700		42,924
	Gilead Sciences Inc.		Biotechnology			1,608		103,925
	Hewlett Packard Enterprise Co.		Technology Hardware, Storage & Peripherals			688		10,829
	Hormel Foods Corp.		Food Products			388		18,539
	HP Inc.		Technology Hardware, Storage & Peripherals			1,140		36,195
a	IDEXX Laboratories Inc.		Health Care Equipment & Supplies			88		43,059
	Illinois Tool Works Inc.		Machinery			350		77,532
	Intel Corp.		Semiconductors & Semiconductor Equipment			3,066		196,224
	International Business Machines Corp.		IT Services			1,036		138,057
	Intuit Inc.		Software			314		120,281
	Invesco Ltd.		Capital Markets			394		9,937
	Jack Henry & Associates Inc.		IT Services			84		12,744
a	Jazz Pharmaceuticals PLC		Pharmaceuticals			54		8,876
	JB Hunt Transport Services Inc.		Road & Rail			88		14,790
	Johnson & Johnson		Pharmaceuticals			936		153,832
	Kellogg Co.		Food Products			252		15,952
	Kimberly-Clark Corp.		Household Products			422		58,679
	KLA Corp.		Semiconductors & Semiconductor Equipment			178		58,811
	Lam Research Corp.		Semiconductors & Semiconductor Equipment			158		94,048
	Lockheed Martin Corp.		Aerospace & Defense			318		117,501
	Lowe’s Cos. Inc.		Specialty Retail			828		157,469
a	Lululemon Athletica Inc.		Textiles, Apparel & Luxury Goods			128		39,259
	Lumen Technologies Inc.		Diversified Telecommunication Services			566		7,556
	LyondellBasell Industries NV, A		Chemicals			342		35,585
	MarketAxess Holdings Inc.		Capital Markets			46		22,904
a	Masimo Corp.		Health Care Equipment & Supplies			40		9,186
	Mastercard Inc., A		IT Services			408		145,268
	Maxim Integrated Products Inc.		Semiconductors & Semiconductor Equipment			326		29,787
	Merck & Co. Inc.		Pharmaceuticals			1,708		131,670
a	Mettler-Toledo International Inc.		Life Sciences Tools & Services			26		30,048
	Microsoft Corp.		Software			650		153,250
	Monolithic Power Systems		Semiconductors & Semiconductor Equipment			24		8,477
a	Monster Beverage Corp.		Beverages			446		40,626
	Moody’s Corp.		Capital Markets			200		59,722
	NetApp Inc.		Technology Hardware, Storage & Peripherals			262		19,040
	NRG Energy Inc.		Electric Utilities			124		4,679
	Nucor Corp.		Metals & Mining			296		23,760
	NVIDIA Corp.		Semiconductors & Semiconductor Equipment			256		136,686
a	NVR Inc.		Household Durables			4		18,844
a	O’Reilly Automotive Inc.		Specialty Retail			86		43,623
	Old Dominion Freight Line Inc.		Road & Rail			114		27,407
	Omnicom Group Inc.		Media			218		16,165
	Oracle Corp.		Software			1,780		124,903
	PACCAR Inc.		Machinery			356		33,080
	Packaging Corp. of America		Containers & Packaging			102		13,717
	Paychex Inc.		IT Services			362		35,483
	PepsiCo Inc.		Beverages			962		136,075



franklintempleton.com	Annual Report	57

FRANKLIN TEMPLETON ETF TRUST

STATEMENT OF INVESTMENTS

Franklin LibertyQ Global Equity ETF (continued)



		Industry			Shares		Value
	Common Stocks and Other Equity Interests (continued)
	United States (continued)
	Pfizer Inc.		Pharmaceuticals			3,802	$	137,746
	Philip Morris International Inc.		Tobacco			1,774		157,425
	Pool Corp.		Distributors			24		8,286
	PPL Corp.		Electric Utilities			668		19,265
	Public Storage		Equity Real Estate Investment Trusts (REITs	)		230		56,755
	PulteGroup Inc.		Household Durables			286		14,998
	QUALCOMM Inc.		Semiconductors & Semiconductor Equipment			936		124,104
a	Regeneron Pharmaceuticals Inc.		Biotechnology			118		55,831
	Robert Half International Inc.		Professional Services			152		11,867
	Rockwell Automation Inc.		Electrical Equipment			122		32,384
	Rollins Inc.		Commercial Services & Supplies			252		8,674
	S&P Global Inc.		Capital Markets			338		119,270
	Seagate Technology PLC		Technology Hardware, Storage & Peripherals			352		27,016
	SEI Investments Co.		Capital Markets			108		6,580
	Simon Property Group Inc.		Equity Real Estate Investment Trusts (REITs	)		412		46,873
	Skyworks Solutions Inc.		Semiconductors & Semiconductor Equipment			234		42,934
	Snap-on Inc.		Machinery			56		12,921
	Steel Dynamics Inc.		Metals & Mining			216		10,964
	T. Rowe Price Group Inc.		Capital Markets			224		38,438
a	Take-Two Interactive Software Inc.		Entertainment			94		16,610
	Target Corp.		Multiline Retail			606		120,030
	TE Connectivity Ltd.		Electronic Equipment, Instruments & Components			316		40,799
	Teradyne Inc.		Semiconductors & Semiconductor Equipment			140		17,035
	Texas Instruments Inc.		Semiconductors & Semiconductor Equipment			902		170,469
	The Hershey Co.		Food Products			188		29,734
	The J.M. Smucker Co.		Food Products			92		11,641
	The Kroger Co.		Food & Staples Retailing			902		32,463
	The Procter & Gamble Co.		Household Products			998		135,159
	The Progressive Corp.		Insurance			502		47,996
	Tractor Supply Co.		Specialty Retail			128		22,666
	Tyson Foods Inc.		Food Products			316		23,479
	United Parcel Service Inc., B		Air Freight & Logistics			822		139,732
a	Veeva Systems Inc.		Health Care Technology			108		28,214
	Verizon Communications Inc.		Diversified Telecommunication Services			2,274		132,233
a	Vertex Pharmaceuticals Inc.		Biotechnology			222		47,706
	ViacomCBS Inc., B		Media			560		25,256
	W.W. Grainger Inc.		Trading Companies & Distributors			50		20,046
	Walgreens Boots Alliance Inc.		Food & Staples Retailing			834		45,787
	Walmart Inc.		Food & Staples Retailing			924		125,507
	West Pharmaceutical Services Inc.		Health Care Equipment & Supplies			58		16,343
	Western Union Co.		IT Services			364		8,976
	Whirlpool Corp.		Household Durables			46		10,136
	Xilinx Inc.		Semiconductors & Semiconductor Equipment			268		33,205
a	Zoom Video Communications Inc., A		Software			132		42,410


								8,400,592

	Total Common Stocks and Other Equity Interests (Cost $12,076,561)							14,803,651

	Management Investment Companies (Cost $116,110) 1.0%
	India 1.0%
	iShares MSCI India ETF		Diversified Financial Services			3,600		151,848



58	Annual Report	franklintempleton.com

FRANKLIN TEMPLETON ETF TRUST

STATEMENT OF INVESTMENTS

Franklin LibertyQ Global Equity ETF (continued)

Industry

Shares

Value

Preferred Stocks 0.5%

Brazil 0.1%

Companhia Paranaense de Energia, 43.478%, pfd.

Electric Utilities

2,000

2,527

Itausa SA, 2.490%, pfd.

Banks

5,000

9,144

11,671

Germany 0.1%

Fuchs Petrolub SE, 2.375%, pfd.

Chemicals

3,072

Porsche Automobil Holding SE, 2.444%, pfd.

Automobiles

174

18,491

21,563

Russia 0.1%

Surgutneftegas PJSC, 2.310%, pfd.

Oil, Gas & Consumable Fuels

12,006

6,677

South Korea 0.2%

LG Household & Health Care Ltd., 1.613%, pfd.

Personal Products

2,421

Samsung Electronics Co. Ltd., 4.103%, pfd.

Technology Hardware, Storage & Peripherals

376

24,253

26,674

Total Preferred Stocks (Cost $43,199)

66,585

Rights 0.0%^†

Italy 0.0%^†

Snam SpA, rts., 4/7/21

Gas Utilities

2,004

—

Total Investments (Cost $12,235,870) 99.8%

15,022,084

Other Assets, less Liabilities 0.2%

37,302

Net Assets 100.0%

15,059,386

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

^aNon-income producing.

^bSecurity was purchased pursuant to Rule 144A under the Securities Act of 1933 and may be sold in transactions exempt from registration only to qualified institutional buyers or in a public offering registered under the Securities Act of 1933. At March 31, 2021, the aggregate value of these securities was $45,543, representing 0.3% of net assets.

^cSecurity was purchased pursuant to Regulation S under the Securities Act of 1933, which exempts from registration securities offered and sold outside of the United States. Such a security cannot be sold in the United States without either an effective registration statement filed pursuant to the Securities Act of 1933, or pursuant to an exemption from registration. At March 31, 2021, the aggregate value of these securities was $65,514, representing 0.4% of net assets.

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

At March 31, 2021, 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

34,385

6/18/21

(341

)

*As of period end.

See Abbreviations on page 82.



franklintempleton.com	The accompanying notes are an integral part of these financial statements. \| Annual Report	59

FRANKLIN TEMPLETON ETF TRUST

Financial Highlights

Franklin LibertyQ International Equity Hedged ETF



	Year Ended March 31,

	2021			2020			2019			2018			2017^a

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

Net asset value, beginning of year	$	22.55		$	24.70		$	24.25		$	24.70		$	25.45


Income from investment operations^b:

Net investment income^c		0.73			0.89			0.93			0.77			0.52

Net realized and unrealized gains (losses)		5.27			(2.61	)		0.79			0.10			1.45


Total from investment operations		6.00			(1.72	)		1.72			0.87			1.97


Less distributions from:

Net investment income and net foreign currency gains		(0.91	)		(0.19	)		(0.30	)		(1.32	)		(2.72	)

Net realized gains		(1.12	)		(0.24	)		(0.97	)		—			—

Total distributions		(2.03	)		(0.43	)		(1.27	)		(1.32	)		(2.72	)


Net asset value, end of year	$	26.52		$	22.55		$	24.70		$	24.25		$	24.70


Total return^d		27.54%			(7.12)%			7.53%			3.47%			8.30%

Ratios to average net assets^e

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

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

Net investment income		2.97%			3.44%			3.75%			3.07%			2.47%

Supplemental data

Net assets, end of year (000’s)		$13,260			$9,021			$7,410			$9,702			$9,880

Portfolio turnover rate^g		42.33%	^h		26.82%	^h		39.24%			32.55%			19.09%

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

^cBased on average daily shares outstanding.

^eRatios are annualized for periods less than one year.

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

^gPortfolio turnover rate includes portfolio transactions that are executed as a result of the Fund offering and redeeming Creation Units solely for cash (“Cash creations”).

^hPortfolio turnover rate excluding cash creations was as follows:

41.62%

26.82%



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

FRANKLIN TEMPLETON ETF TRUST

Statement of Investments, March 31, 2021

Franklin LibertyQ International Equity Hedged ETF



		Industry			Shares		Value
	Common Stocks and Other Equity Interests 99.3%
	Australia 14.5%
	AGL Energy Ltd.		Multi-Utilities			2,555	$	18,779
	Aurizon Holdings Ltd.		Road & Rail			7,325		21,759
	Australian Stock Exchange Ltd.		Capital Markets			590		31,928
	BHP Group Ltd.		Metals & Mining			9,225		318,288
	Brambles Ltd.		Commercial Services & Supplies			5,720		46,093
a	Cimic Group Ltd.		Construction & Engineering			350		4,689
	Coca-Cola Amatil Ltd.		Beverages			1,795		18,361
	Coles Group Ltd.		Food & Staples Retailing			4,805		58,592
	CSL Ltd.		Biotechnology			1,090		219,712
	Evolution Mining Ltd.		Metals & Mining			5,070		15,755
	Fortescue Metals Group Ltd.		Metals & Mining			10,965		166,946
	Magellan Financial Group Ltd.		Capital Markets			450		15,482
	Medibank Private Ltd.		Insurance			11,530		24,589
	Newcrest Mining Ltd.		Metals & Mining			2,220		41,291
	Northern Star Resources Ltd.		Metals & Mining			2,065		14,910
	REA Group Ltd.		Interactive Media & Services			215		23,211
	Rio Tinto Ltd.		Metals & Mining			1,875		158,161
	Rio Tinto PLC		Metals & Mining			3,900		298,636
	Sonic Healthcare Ltd.		Health Care Providers & Services			1,510		40,357
	Telstra Corp. Ltd.		Diversified Telecommunication Services			16,435		42,560
	Washington H. Soul Pattinson & Co. Ltd.		Oil, Gas & Consumable Fuels			175		4,209
	Wesfarmers Ltd.		Multiline Retail			4,850		194,563
	Woolworths Group Ltd.		Food & Staples Retailing			4,520		140,702


								1,919,573

	Austria 0.1%
	OMV AG		Oil, Gas & Consumable Fuels			230		11,694

	Belgium 0.2%
	Colruyt SA		Food & Staples Retailing			220		13,151
	Proximus SADP		Diversified Telecommunication Services			610		13,306


								26,457

	Denmark 3.7%
	Coloplast AS, B		Health Care Equipment & Supplies			590		88,930
a	Genmab A/S		Biotechnology			105		34,630
	Novo Nordisk AS, B		Pharmaceuticals			3,705		251,618
	Novozymes AS		Chemicals			725		46,550
	Pandora AS		Textiles, Apparel & Luxury Goods			525		56,383
	Rockwool International AS, B		Building Products			15		6,338
	Tryg AS		Insurance			415		9,811


								494,260

	Finland 1.6%
	Elisa OYJ		Diversified Telecommunication Services			555		33,358
	Kone OYJ, B		Machinery			1,225		100,293
	Orion OYJ		Pharmaceuticals			445		17,871
	UPM-Kymmene OYJ		Paper & Forest Products			1,715		61,739


								213,261

	France 3.2%
	Biomerieux		Health Care Equipment & Supplies			95		12,115
	Hermes International		Textiles, Apparel & Luxury Goods			118		130,919
	Ipsen SA		Pharmaceuticals			60		5,158
	Klepierre SA		Equity Real Estate Investment Trusts (REITs	)		305		7,128
	Sanofi		Pharmaceuticals			2,430		240,616
	Sartorius Stedim Biotech		Life Sciences Tools & Services			70		28,894


								424,830



franklintempleton.com	Annual Report	61

FRANKLIN TEMPLETON ETF TRUST

STATEMENT OF INVESTMENTS

Franklin LibertyQ International Equity Hedged ETF (continued)



		Industry		Shares		Value
	Common Stocks and Other Equity Interests (continued)
	Germany 0.4%
a	HelloFresh SE		Internet & Direct Marketing Retail		275	$	20,556
	Hochtief AG		Construction & Engineering		70		6,277
	Knorr-Bremse AG		Machinery		150		18,761
	Rational AG		Machinery		10		7,787


							53,381

	Hong Kong 1.9%
	CK Asset Holdings Ltd.		Real Estate Management & Development		6,800		41,284
	CK Infrastructure Holdings Ltd.		Electric Utilities		2,000		11,885
	HKT Trust and HKT Ltd.		Diversified Telecommunication Services		13,000		18,527
	Hongkong Land Holdings Ltd.		Real Estate Management & Development		2,000		9,820
	Jardine Matheson Holdings Ltd.		Industrial Conglomerates		700		45,773
	Power Assets Holdings Ltd.		Electric Utilities		4,500		26,568
	Sino Land Co. Ltd.		Real Estate Management & Development		9,500		13,222
	Sun Hung Kai Properties Ltd.		Real Estate Management & Development		2,500		37,881
b	WH Group Ltd., Reg S		Food Products		15,000		12,155
	Wharf Real Estate Investment Co. Ltd.		Real Estate Management & Development		3,000		16,805
	Xinyi Glass Holdings Ltd.		Building Products		4,000		13,068


							246,988

	Israel 0.5%
	Azrieli Group Ltd.		Real Estate Management & Development		95		5,871
a	Check Point Software Technologies Ltd.		Software		450		50,387
	ICL Group Ltd.		Chemicals		2,140		12,559


							68,817

	Italy 3.3%
	DiaSorin SpA		Health Care Equipment & Supplies		85		13,666
	Enel SpA		Electric Utilities		23,695		236,519
	Ferrari NV		Automobiles		415		86,990
a	Moncler SpA		Textiles, Apparel & Luxury Goods		680		39,057
	Recordati Industria Chimica e Farmaceutica SpA		Pharmaceuticals		375		20,217
	Snam SpA		Gas Utilities		6,050		33,619
	Telecom Italia SpA/Milano, di Risp		Diversified Telecommunication Services		13,510		7,787


							437,855

	Japan 26.6%
	ABC-Mart Inc.		Specialty Retail		105		5,929
	Advantest Corp.		Semiconductors & Semiconductor Equipment		650		56,941
	AEON Mall Co. Ltd.		Real Estate Management & Development		300		5,226
	Astellas Pharma Inc.		Pharmaceuticals		6,570		101,196
	Azbil Corp.		Electronic Equipment, Instruments & Components		200		8,624
	Bandai Namco Holdings Inc.		Leisure Products		700		50,001
	Bridgestone Corp.		Auto Components		1,950		78,971
	Brother Industries Ltd.		Technology Hardware, Storage & Peripherals		300		6,649
	Calbee Inc.		Food Products		220		5,618
	Capcom Co. Ltd.		Entertainment		340		11,062
	Chugai Pharmaceutical Co. Ltd.		Pharmaceuticals		2,400		97,499
	Cosmos Pharmaceutical Corp.		Food & Staples Retailing		52		8,127
	Daito Trust Construction Co. Ltd.		Real Estate Management & Development		300		34,833
	Hitachi Ltd.		Electronic Equipment, Instruments & Components		2,400		108,684
	Hoya Corp.		Health Care Equipment & Supplies		1,470		173,008
	Iida Group Holdings Co. Ltd.		Household Durables		500		12,109
	ITOCHU Corp.		Trading Companies & Distributors		5,150		167,177
	Japan Post Bank Co. Ltd.		Banks		1,300		12,518
	Japan Tobacco Inc.		Tobacco		4,870		93,654
	Kajima Corp.		Construction & Engineering		1,550		22,037
	Kakaku.com Inc.		Interactive Media & Services		630		17,218



62	Annual Report	franklintempleton.com

FRANKLIN TEMPLETON ETF TRUST

STATEMENT OF INVESTMENTS

Franklin LibertyQ International Equity Hedged ETF (continued)



		Industry		Shares		Value
	Common Stocks and Other Equity Interests (continued)
	Japan (continued)
	KAO Corp.		Personal Products		1,647	$	109,000
	KDDI Corp.		Wireless Telecommunication Services		7,200		221,213
	Kobe Bussan Co. Ltd.		Food & Staples Retailing		300		8,050
	Koei Tecmo Holdings Co. Ltd.		Entertainment		97		4,358
	Lasertec Corp.		Semiconductors & Semiconductor Equipment		130		17,082
	M3 Inc.		Health Care Technology		680		46,591
	McDonald’s Holdings Co. Japan Ltd.		Hotels, Restaurants & Leisure		150		6,923
	Meiji Holdings Co. Ltd.		Food Products		180		11,598
	Mitsubishi Gas Chemical Co. Inc.		Chemicals		500		12,281
	Monotaro Co. Ltd.		Trading Companies & Distributors		700		18,966
	MS&AD Insurance Group Holdings Inc.		Insurance		1,470		43,222
	Murata Manufacturing Co. Ltd.		Electronic Equipment, Instruments & Components		890		71,216
	Nexon Co. Ltd.		Entertainment		1,750		56,855
	Nihon M&A Center Inc.		Professional Services		800		21,669
	Nintendo Co. Ltd.		Entertainment		324		181,235
	Nippon Telegraph & Telephone Corp.		Diversified Telecommunication Services		5,370		138,113
	Nitori Holdings Co. Ltd.		Specialty Retail		210		40,717
	Nitto Denko Corp.		Chemicals		250		21,403
	Nomura Research Institute Ltd.		IT Services		850		26,346
	Obayashi Corp.		Construction & Engineering		2,300		21,127
	OBIC Co. Ltd.		IT Services		170		31,123
	Ono Pharmaceutical Co. Ltd.		Pharmaceuticals		850		22,231
	Oracle Corp. Japan		Software		138		13,488
	ORIX Corp.		Diversified Financial Services		4,200		71,001
	Otsuka Corp.		IT Services		220		10,313
	Pigeon Corp.		Household Products		400		15,204
	SCSK Corp.		IT Services		120		7,124
	Sekisui House Ltd.		Household Durables		2,400		51,562
	SG Holdings Co. Ltd.		Air Freight & Logistics		750		17,219
	SHIMANO Inc.		Leisure Products		120		28,642
	Shimizu Corp.		Construction & Engineering		900		7,298
	Shin-Etsu Chemical Co. Ltd.		Chemicals		1,000		168,416
	Shionogi & Co. Ltd.		Pharmaceuticals		1,100		59,251
	Shoei Co. Ltd.		Real Estate Management & Development		1,020		12,046
	Softbank Corp.		Wireless Telecommunication Services		9,600		124,974
	Sumitomo Mitsui Financial Group Inc.		Banks		2,100		76,151
	Sundrug Co. Ltd.		Food & Staples Retailing		170		6,231
	Sysmex Corp.		Health Care Equipment & Supplies		250		26,980
	Taisei Corp.		Construction & Engineering		750		28,982
	Tokyo Electron Ltd.		Semiconductors & Semiconductor Equipment		590		249,829
	Tosoh Corp.		Chemicals		1,000		19,167
	Toyo Suisan Kaisha Ltd.		Food Products		150		6,312
	Toyota Motor Corp.		Automobiles		3,500		272,905
	Tsuruha Holdings Inc.		Food & Staples Retailing		80		10,338
	USS Co. Ltd.		Specialty Retail		800		15,667
	Welcia Holdings Co. Ltd.		Food & Staples Retailing		250		8,597
	Zozo Inc.		Internet & Direct Marketing Retail		500		14,796


							3,530,893

	Macau 0.5%
a	Galaxy Entertainment Group Ltd.		Hotels, Restaurants & Leisure		7,000		63,027

	Netherlands 1.9%
a	Adyen NV		IT Services		30		67,115
	Koninklijke Ahold Delhaize NV		Food & Staples Retailing		3,920		109,420
	Koninklijke KPN NV		Diversified Telecommunication Services		8,900		30,272
	Koninklijke Vopak NV		Oil, Gas & Consumable Fuels		165		8,232



franklintempleton.com	Annual Report	63

FRANKLIN TEMPLETON ETF TRUST

STATEMENT OF INVESTMENTS

Franklin LibertyQ International Equity Hedged ETF (continued)



		Industry		Shares		Value
	Common Stocks and Other Equity Interests (continued)
	Netherlands (continued)
	NN Group NV		Insurance		770	$	37,729


							252,768

	New Zealand 0.7%
	Fisher & Paykel Healthcare Corp. Ltd.		Health Care Equipment & Supplies		2,630		59,126
	Spark New Zealand Ltd.		Diversified Telecommunication Services		8,495		26,653
a	The a2 Milk Co. Ltd.		Food Products		2,185		13,191


							98,970

	Norway 0.9%
	Mowi ASA		Food Products		1,505		37,412
	Orkla ASA		Food Products		2,615		25,683
	Telenor ASA		Diversified Telecommunication Services		2,415		42,578
	Yara International ASA		Chemicals		285		14,850


							120,523

	Portugal 0.1%
	Jeronimo Martins SGPS SA		Food & Staples Retailing		785		13,239

	Russia 0.2%
	Evraz PLC		Metals & Mining		2,555		20,375

	Singapore 0.8%
	Singapore Exchange Ltd.		Capital Markets		4,100		30,423
	Singapore Technologies Engineering Ltd.		Aerospace & Defense		2,500		7,238
	Singapore Telecommunications Ltd.		Diversified Telecommunication Services		29,500		53,573
	Venture Corp. Ltd.		Electronic Equipment, Instruments & Components		900		13,437


							104,671

	Spain 4.8%
a	Banco Santander SA		Banks		41,390		140,926
	Enagas SA		Gas Utilities		780		16,978
	Endesa SA		Electric Utilities		1,165		30,890
	Iberdrola SA		Electric Utilities		17,590		227,098
	Industria de Diseno Textil SA		Specialty Retail		4,045		133,590
	Red Electrica Corp. SA		Electric Utilities		1,535		27,242
	Telefonica SA		Diversified Telecommunication Services		13,211		59,266


							635,990

	Sweden 3.1%
	Atlas Copco AB		Machinery		1,285		67,005
	Atlas Copco AB, A		Machinery		1,545		94,228
	Boliden AB		Metals & Mining		970		36,057
	Epiroc AB, A		Machinery		1,615		36,649
	Epiroc AB, B		Machinery		955		19,935
b,c	Evolution Gaming Group AB, 144A, Reg S		Hotels, Restaurants & Leisure		450		66,393
	ICA Gruppen AB		Food & Staples Retailing		315		15,432
a	Kinnevik AB, B		Diversified Financial Services		410		19,973
a	Svenska Cellulosa AB, B		Paper & Forest Products		1,405		24,912
	Swedish Match AB		Tobacco		390		30,506


							411,090

	Switzerland 8.7%
	EMS-Chemie Holding AG		Chemicals		35		31,387
	Geberit AG		Building Products		145		92,686
	Kuehne + Nagel International AG		Marine		95		27,224
	Logitech International SA		Technology Hardware, Storage & Peripherals		500		52,670
	Nestle SA		Food Products		2,150		240,643
	Novartis AG		Pharmaceuticals		2,865		245,876
	Partners Group Holding AG		Capital Markets		86		110,293



64	Annual Report	franklintempleton.com

FRANKLIN TEMPLETON ETF TRUST

STATEMENT OF INVESTMENTS

Franklin LibertyQ International Equity Hedged ETF (continued)



		Industry			Shares		Value
	Common Stocks and Other Equity Interests (continued)
	Switzerland (continued)
	Roche Holding AG		Pharmaceuticals			735	$	238,544
	SGS SA		Professional Services			18		51,275
	Swiss Prime Site AG		Real Estate Management & Development			165		15,279
	Swisscom AG		Diversified Telecommunication Services			96		51,715


								1,157,592

	United Kingdom 21.6%
	Admiral Group PLC		Insurance			975		41,715
	Anglo American PLC		Metals & Mining			4,115		161,382
a	Auto Trader Group PLC		Interactive Media & Services			3,710		28,378
	BAE Systems PLC		Aerospace & Defense			11,090		77,269
	BHP Group PLC		Metals & Mining			8,085		233,639
	British American Tobacco PLC		Tobacco			6,510		249,156
	British Land Co. PLC		Equity Real Estate Investment Trusts (REITs	)		3,170		22,078
a	BT Group PLC		Diversified Telecommunication Services			34,090		72,809
	Bunzl PLC		Trading Companies & Distributors			530		16,987
	Croda International PLC		Chemicals			340		29,778
	Direct Line Insurance Group PLC		Insurance			4,815		20,813
	Ferguson PLC		Trading Companies & Distributors			640		76,539
	GlaxoSmithKline PLC		Pharmaceuticals			13,620		242,035
	Halma PLC		Electronic Equipment, Instruments & Components			880		28,824
	Hargreaves Lansdown PLC		Capital Markets			1,510		32,115
	Hikma Pharmaceuticals PLC		Pharmaceuticals			435		13,660
	Imperial Brands PLC		Tobacco			4,785		98,500
	Intertek Group PLC		Professional Services			585		45,215
a	Kingfisher PLC		Specialty Retail			6,625		29,094
	Land Securities Group PLC		Equity Real Estate Investment Trusts (REITs	)		2,295		21,851
	M&G PLC		Diversified Financial Services			8,860		25,353
	Mondi PLC		Paper & Forest Products			1,690		43,136
a	Next PLC		Multiline Retail			535		58,062
	Pearson PLC		Media			2,345		24,964
a	Persimmon PLC		Household Durables			1,330		53,949
	Prudential PLC		Insurance			5,670		120,512
	RELX PLC		Professional Services			7,255		182,077
	Royal Dutch Shell PLC, A		Oil, Gas & Consumable Fuels			12,370		241,292
	Spirax-Sarco Engineering PLC		Machinery			185		29,098
a	Taylor Wimpey PLC		Household Durables			12,715		31,656
	The Berkeley Group Holdings PLC		Household Durables			460		28,173
	Unilever PLC		Personal Products			8,295		464,194
	William Morrison Supermarkets PLC		Food & Staples Retailing			5,635		14,185


								2,858,488

	Total Common Stocks and Other Equity Interests (Cost $11,169,140)							13,164,742

	Preferred Stocks 0.5%
	Germany 0.5%
d	Fuchs Petrolub SE, 2.375%, pfd.		Chemicals			240		11,520
d	Porsche Automobil Holding SE, 2.444%, pfd.		Automobiles			520		55,261

	Total Preferred Stocks (Cost $46,098)							66,781

	Rights 0.0%^†
	Italy 0.0%^†
a	Snam SpA, rts., 4/7/21		Gas Utilities			5,870		—

	Total Investments (Cost $11,215,238) 99.8%							13,231,523
	Other Assets, less Liabilities 0.2%							28,003

	Net Assets 100.0%						$	13,259,526



franklintempleton.com	Annual Report	65

FRANKLIN TEMPLETON ETF TRUST

STATEMENT OF INVESTMENTS

Franklin LibertyQ International Equity Hedged ETF (continued)

^†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. At March 31, 2021, the value of this security was $66,393, representing 0.5% of net assets.

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

At March 31, 2021 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
Israeli Shekel		BOFA		Buy		58,300	$	17,482		4/02/21	$	—	$	—
Israeli Shekel		BOFA		Sell		58,300		17,606		4/02/21		123		—
Japanese Yen		BOFA		Buy		368,685,800		3,336,457		4/02/21		67		—
Japanese Yen		BOFA		Sell		368,685,800		3,461,705		4/02/21		125,182		—
Singapore Dollar		BOFA		Buy		135,900		101,144		4/05/21		2		—
Singapore Dollar		BOFA		Sell		135,900		102,185		4/05/21		1,039		—
Australian Dollar		DBAB		Buy		2,208,500		1,681,552		4/06/21		552		—
Australian Dollar		DBAB		Sell		2,208,500		1,710,017		4/06/21		27,913		—
Euro		BOFA		Buy		1,673,700		1,967,059		4/06/21		39		—
Euro		BOFA		Sell		1,673,700		2,033,154		4/06/21		66,055		—
Great British Pound		BOFA		Buy		741,309		1,022,763		4/06/21		21		—
Great British Pound		HSBK		Buy		741,309		1,022,800		4/06/21		—		(15	)
Great British Pound		UBSW		Buy		741,309		1,022,774		4/06/21		11		—
Great British Pound		BOFA		Sell		741,309		1,036,618		4/06/21		13,834		—
Great British Pound		HSBK		Sell		741,309		1,036,635		4/06/21		13,851		—
Great British Pound		UBSW		Sell		741,309		1,036,644		4/06/21		13,859		—
New Zealand Dollar		BOFA		Buy		133,400		93,425		4/06/21		2		—
New Zealand Dollar		BOFA		Sell		133,400		96,989		4/06/21		3,563		—
Swedish Krona		BOFA		Buy		3,225,200		370,012		4/06/21		7		—
Swedish Krona		BOFA		Sell		3,225,200		384,088		4/06/21		14,069		—
Swiss Franc		MSCO		Buy		991,200		1,053,153		4/06/21		26		—
Swiss Franc		MSCO		Sell		991,200		1,095,983		4/06/21		42,803		—
Danish Krone		BOFA		Buy		3,028,300		478,550		4/07/21		10		—
Danish Krone		BOFA		Sell		3,028,300		494,568		4/07/21		16,008		—
Hong Kong Dollar		MSCO		Buy		1,923,600		247,413		4/07/21		12		—
Hong Kong Dollar		MSCO		Sell		1,923,600		247,975		4/07/21		549		—
Norwegian Krone		BOFA		Buy		975,100		114,227		4/07/21		2		—
Norwegian Krone		BOFA		Sell		975,100		113,216		4/07/21		—		(1,013	)
Australian Dollar		DBAB		Sell		2,121,600		1,615,611		5/04/21		—		(545	)
Danish Krone		BOFA		Sell		3,127,600		494,447		5/04/21		—		(28	)
Euro		BOFA		Sell		1,826,800		2,148,218		5/04/21		—		(63	)
Hong Kong Dollar		MSCO		Sell		2,018,100		259,587		5/04/21		—		(15	)
Israeli Shekel		BOFA		Sell		62,700		18,806		5/04/21		—		(1	)
New Zealand Dollar		BOFA		Sell		142,400		99,718		5/04/21		—		(7	)
Norwegian Krone		BOFA		Sell		1,034,700		121,207		5/04/21		—		(7	)
Singapore Dollar		BOFA		Sell		143,700		106,930		5/04/21		—		(6	)
Swedish Krona		BOFA		Sell		3,593,700		412,386		5/04/21		—		(18	)
Swiss Franc		MSCO		Sell		1,097,200		1,166,661		5/04/21		—		(37	)
Great British Pound		BOFA		Sell		773,222		1,066,886		5/05/21		—		(34	)
Great British Pound		HSBK		Sell		773,222		1,066,932		5/05/21		13		—
Great British Pound		UBSW		Sell		773,222		1,066,900		5/05/21		—		(19	)
Japanese Yen		BOFA		Sell		397,467,800		3,598,094		5/07/21		—		(103	)

Total Forward Exchange Contracts											$	339,612	$	(1,911	)

Net unrealized appreciation (depreciation)													$	337,701

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

See Abbreviations on page 82.



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FRANKLIN TEMPLETON ETF TRUST

FINANCIAL STATEMENTS

Statements of Assets and Liabilities

March 31, 2021



	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	$	20,354,205		$	23,250,016	$	12,235,870	$	11,215,238
Cost – Non-controlled affiliates (Note 3c)		33,900			—		—		—

Value – Unaffiliated issuers⁺	$	24,594,331		$	26,539,869	$	15,022,084	$	13,231,523
Value – Non-controlled affiliates (Note 3c)		33,900			—		—		—
Cash		—			—		—		—
Foreign currency, at value (cost $16,101, $38,923, $73,882 and $31,075)		16,117			38,756		73,651		31,017
Receivables:
Investment securities sold		—			—		40,072		—
Dividends and interest		127,337			131,680		54,404		89,133
Variation margin on futures contracts		425			246		136		—
Deposits with brokers for:
Futures contracts		4,293			4,689		2,345		—
Unrealized appreciation on OTC forward exchange contracts		—			—		—		339,612

Total assets		24,776,403			26,715,240		15,192,692		13,691,285

Liabilities:
Payables:
Management fees		9,342			10,004		4,290		4,425
Investment securities purchased		—			35,615		96,768		387,122
Funds advanced by custodian		45,611			37,735		32,008		38,301
Deferred tax		60,759			—		240		—
Payable upon return of securities loaned		33,900			—		—		—
Unrealized depreciation on OTC forward exchange contracts		—			—		—		1,911

Total liabilities		149,612			83,354		133,306		431,759

Net assets, at value	$	24,626,791		$	26,631,886	$	15,059,386	$	13,259,526

Net assets consist of:
Paid-in capital	$	51,851,991		$	24,735,248	$	12,986,976	$	12,371,205
Total distributable earnings (loss)		(27,225,200	)		1,896,638		2,072,410		888,321

Net assets, at value	$	24,626,791		$	26,631,886	$	15,059,386	$	13,259,526

Shares outstanding		800,000			800,000		400,000		500,000

Net asset value per share	$	30.78		$	33.29	$	37.65	$	26.52

⁺Includes securities loaned	$	33,182			—		—		—



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

FRANKLIN TEMPLETON ETF TRUST

FINANCIAL STATEMENTS

Statements of Operations

for the year ended March 31, 2021



	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	$	905,417		$	843,021		$	378,546		$	343,848
Interest from securities loaned: (Note 1d)
Unaffiliated issuers (net of fees and rebates)		404			—			60			8

Total investment income		905,821			843,021			378,606			343,856

Expenses:
Management fees (Note 3a)		113,084			103,567			47,434			40,764
Other		115			110			116			—

Total expenses		113,199			103,677			47,550			40,764
Expenses waived/paid by affiliates (Note 3c)		(50	)		(2	)		(1,453	)		—

Net expenses		113,149			103,675			46,097			40,764

Net investment income		792,672			739,346			332,509			303,092

Realized and unrealized gains (losses):
Net realized gain (loss) from:
Investments:
Unaffiliated issuers		(3,261,786	)		(923,462	)		(372,248	)		(760,008	)
In-kind redemptions		(3,767,280	)		—			(48,113	)		—
Foreign currency transactions		(124,584	)		6,626			(606	)		110
Forward exchange contracts		—			—			—			(708,270	)
Futures contracts		144,091			27,278			17,816			10,420

Net realized gain (loss)		(7,009,559	)		(889,558	)		(403,151	)		(1,457,748	)

Net change in unrealized appreciation (depreciation) on:
Investments:
Unaffiliated issuers		15,840,301			8,849,408			5,091,879			3,500,599
Translation of other assets and liabilities denominated in foreign currencies		74,116			409			633			483
Futures contracts		(50,663	)		(4,535	)		(4,193	)		(3,852	)
Forward exchange contracts		—			—			—			124,538
Change in deferred taxes on unrealized appreciation		(60,759	)		—			(240	)		—

Net change in unrealized appreciation (depreciation)		15,802,995			8,845,282			5,088,079			3,621,768

Net realized and unrealized gain (loss)		8,793,436			7,955,724			4,684,928			2,164,020

Net increase (decrease) in net assets resulting from operations	$	9,586,108		$	8,695,070		$	5,017,437		$	2,467,112


^aForeign taxes withheld on dividends	$	116,218	$	48,490	$	19,650	$	24,538



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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

	Year Ended March 31, 2021			Year Ended March 31, 2020			Year Ended March 31, 2021			Year Ended March 31, 2020
Increase (decrease) in net assets:
Operations:
Net investment income	$	792,672		$	11,640,469		$	739,346		$	719,261
Net realized gain (loss)		(7,009,559	)		(7,582,437	)		(889,558	)		1,622,691
Net change in unrealized appreciation (depreciation)		15,802,995			(22,115,336	)		8,845,282			(6,642,585	)

Net increase (decrease) in net assets resulting from operations		9,586,108			(18,057,304	)		8,695,070			(4,300,633	)

Distributions to shareholders (Note 1f)		(652,807	)		(13,252,802	)		(716,542	)		(632,323	)

Capital share transactions: (Note 2)		(42,017,238	)		(255,463,490	)		—			6,666,193

Net increase (decrease) in net assets		(33,083,937	)		(286,773,596	)		7,978,528			1,733,237
Net assets:
Beginning of Year		57,710,728			344,484,324			18,653,358			16,920,121

End of Year (Note 1f)	$	24,626,791		$	57,710,728		$	26,631,886		$	18,653,358



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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

	Year Ended March 31, 2021			Year Ended March 31, 2020			Year Ended March 31, 2021			Year Ended March 31, 2020
Increase (decrease) in net assets:
Operations:
Net investment income	$	332,509		$	575,032		$	303,092		$	313,525
Net realized gain (loss)		(403,151	)		1,745,461			(1,457,748	)		374,263
Net change in unrealized appreciation (depreciation)		5,088,079			(4,248,435	)		3,621,768			(1,517,636	)

Net increase (decrease) in net assets resulting from operations		5,017,437			(1,927,942	)		2,467,112			(829,848	)

Distributions to shareholders (Note 1f)		(359,864	)		(618,417	)		(813,573	)		(155,010	)

Capital share transactions: (Note 2)		(5,657,628	)		(6,115,499	)		2,584,649			2,596,506

Net increase (decrease) in net assets		(1,000,055	)		(8,661,858	)		4,238,188			1,611,648
Net assets:
Beginning of Year		16,059,441			24,721,299			9,021,338			7,409,690

End of Year (Note 1f)	$	15,059,386		$	16,059,441		$	13,259,526		$	9,021,338



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

FRANKLIN TEMPLETON ETF TRUST

Notes to Financial Statements

1. Organization and Significant Accounting Policies

Franklin Templeton ETF Trust (Trust) is registered under the Investment Company Act of 1940 (1940 Act) as an open-end management investment company, consisting of forty-five 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, exchange traded funds and derivative financial instruments listed on an exchange or on the NASDAQ National Market System are valued at the last quoted sale price or the official closing price of the day, respectively. Foreign equity securities are valued as of the close of trading on the foreign stock exchange on which the security is primarily traded or as of 4 p.m. Eastern time. The value is then converted into its U.S. dollar equivalent at the foreign exchange rate in effect at 4 p.m. London time on the day that the value of the security is determined. Over-the-counter (OTC) securities are valued within the range of the most recent quoted bid and ask prices. Securities that trade in multiple markets or on multiple exchanges are valued according to the broadest and most representative market. Certain equity securities are valued based upon fundamental characteristics or relationships to similar securities.

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

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

The 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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NOTES TO FINANCIAL STATEMENTS

When the last day of the reporting period is a non-business day, certain foreign markets may be open on those days that the Funds’ NAV is not calculated, which could result in differences between the value of the Funds’ portfolio securities on the last business day and the last calendar day of the reporting period. Any significant security valuation changes due to an open foreign market are adjusted and reflected by the Funds for financial reporting purposes.

b. Foreign Currency Translation

Portfolio securities and other assets and liabilities denominated in foreign currencies are translated into U.S. dollars based on the exchange rate of such currencies against U.S. dollars on the date of valuation. The Funds may enter into foreign currency exchange contracts to facilitate transactions denominated in a foreign currency. Purchases and sales of securities, income and expense items denominated in foreign currencies are translated into U.S. dollars at the exchange rate in effect on the transaction date. Portfolio securities and assets and liabilities denominated in foreign currencies contain risks that those currencies will decline in value relative to the U.S. dollar. Occasionally, events may impact the availability or reliability of foreign exchange rates used to convert the U.S. dollar equivalent value. If such an event occurs, the foreign exchange rate will be valued at fair value using procedures established and approved by the Board.

The Funds do not separately report the effect of changes in foreign exchange rates from changes in market prices on securities held. Such changes are included in net realized and unrealized gain or loss from investments in the Statements of Operations.

Realized foreign exchange gains or losses arise from sales of foreign currencies, currency gains or losses realized between the trade and settlement dates on securities transactions and the difference between the recorded amounts of dividends, interest, and foreign withholding taxes and the U.S. dollar equivalent of the amounts actually received or paid. Net unrealized foreign exchange gains and losses arise from changes in foreign exchange rates on foreign denominated assets and liabilities other than investments in securities held at the end of the reporting period.

1. Organization and Significant Accounting Policies (continued)

a. Financial Instrument Valuation (continued)

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 counterparty non-performance.

Certain or all Funds entered into exchange traded futures contracts primarily to manage and/or gain exposure to equity price risk. A futures contract is an agreement between the Fund and a counterparty to buy or sell an asset at a specified price on a future date. Required initial margins are pledged by the Fund, and the daily change in fair value is accounted for as a variation margin payable or receivable in the Statements of Assets and Liabilities.



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NOTES TO FINANCIAL STATEMENTS

1. Organization and Significant Accounting Policies (continued)

c. Derivative Financial Instruments (continued)

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 8 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. 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.

recorded based on the tax regulations and rates that exist in the foreign markets in which the Funds invest. When a capital gain tax is determined to apply, certain or all Funds record an estimated deferred tax liability in an amount that would be payable if the securities were disposed of on the valuation date.

Each Fund may recognize an income tax liability related to its uncertain tax positions under U.S. GAAP when the uncertain tax position has a less than 50% probability that it will be sustained upon examination by the tax authorities based on its technical merits. As of March 31, 2021, 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. Interest Income and estimated expenses are accrued daily. Dividend income is recorded on the ex-dividend date except for certain dividends from securities where the dividend rate is not available. In such cases, the dividend is recorded as soon as the information is received by the Funds. Distributions to shareholders are recorded on the ex-dividend date. Distributable earnings are determined according to income tax regulations (tax basis) and may differ from earnings recorded in accordance with U.S. GAAP. These differences may be permanent or temporary. Permanent differences are reclassified among capital accounts to reflect their tax character. These reclassifications have no impact on net assets or the results of operations. Temporary differences are not reclassified, as they may reverse in subsequent periods.

Common expenses incurred by the Trust are allocated among the Funds based on the ratio of net assets of each Fund to the combined net assets of the Trust. Certain Fund specific expenses are allocated directly to the 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



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NOTES TO FINANCIAL STATEMENTS

1. Organization and Significant Accounting Policies (continued)

g. Accounting Estimates (continued)

assumptions that affect the reported amounts of assets and liabilities at the date of the financial statements and the amounts of income and expenses during the reporting period. Actual results could differ from those estimates.

h. Guarantees and Indemnifications

Under the Trust’s organizational documents, its officers and trustees are indemnified by the Trust against certain liabilities

arising out of the performance of their duties to the Trust. Additionally, in the normal course of business, the Trust, on behalf of the Funds, enters into contracts with service providers that contain general indemnification clauses. The Trust’s maximum exposure under these arrangements is unknown as this would involve future claims that may be made against the Trust that have not yet occurred. Currently, the Trust expects the risk of loss to be remote.

2. Shares of Beneficial Interest

Shares of the Funds are issued and redeemed at their respective NAV only in aggregations of a 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 March 31, 2021, there were an unlimited number of shares authorized (without par value). Transactions in the Funds’ shares were as follows:



	Franklin LibertyQ Emerging Markets ETF

	Year Ended March 31, 2021						Year Ended March 31, 2020

	Shares			Amount			Shares			Amount
Shares sold		—		$	34,086			400,000		$	12,375,393
Shares redeemed		(1,800,000	)		(42,051,324	)		(9,400,000	)		(267,838,883	)

Net increase (decrease)		(1,800,000	)	$	(42,017,238	)		(9,000,000	)	$	(255,463,490	)


	Franklin LibertyQ Global Dividend ETF

	Year Ended March 31, 2021						Year Ended March 31, 2020

	Shares			Amount			Shares			Amount
Shares sold		—		$	—			800,000		$	23,907,607
Shares redeemed		—			—			(600,000	)		(17,241,414	)

Net increase (decrease)		—		$	—			200,000		$	6,666,193



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NOTES TO FINANCIAL STATEMENTS

2. Shares of Beneficial Interest (continued)


	Franklin LibertyQ Global Equity ETF

	Year Ended March 31, 2021						Year Ended March 31, 2020

	Shares			Amount			Shares			Amount
Shares sold		—		$	—			200,000		$	6,595,214
Shares redeemed		(200,000	)		(5,657,628	)		(400,000	)		(12,710,713	)

Net increase (decrease)		(200,000	)	$	(5,657,628	)		(200,000	)	$	(6,115,499	)


	Franklin LibertyQ International Equity Hedged ETF

	Year Ended March 31, 2021						Year Ended March 31, 2020

	Shares			Amount			Shares			Amount
Shares sold		100,000		$	2,584,649			100,000		$	2,596,506

Net increase (decrease)		100,000		$	2,584,649			100,000		$	2,596,506

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’ Rule 12b-1 plan (if any), brokerage expenses (including any costs incidental to transactions in portfolio securities or instruments), taxes, interest (including borrowing costs and dividend expenses on securities sold short and overdraft charges), litigation expenses (including litigation to which the Trust or a Fund may be a party and indemnification of the Trustees and officers with respect thereto), and other non-routine or extraordinary expenses. The 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%

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.



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NOTES TO FINANCIAL STATEMENTS

3. Transactions with Affiliates (continued)

c. Investments in Affiliated Management Investment Companies

Certain or all Funds invest in one or more affiliated management investment companies. As defined in the 1940 Act, an investment is deemed to be a “Controlled Affiliate” of a fund when a fund owns, either directly or indirectly, 25% or more of the affiliated fund’s outstanding shares or has the power to exercise control over management or policies of such fund. The Funds do not invest for purposes of exercising a controlling influence over the management or policies. Management fees paid by the Funds are waived on assets invested in the affiliated management investment companies, as noted in the Statements of Operations, in an amount not to exceed the management and administrative fees paid directly or indirectly by each affiliate. During the year ended March 31, 2021, investments in affiliated management investment companies were as follows:



	Value at Beginning of Year		Purchases		Sales			Realized Gain (Loss)		Net Change in Unrealized Appreciation (Depreciation)		Value at End of Year		Number of Shares Held at End of Year		Investment Income
Franklin LibertyQ Emerging Markets ETF																Income from securities loaned
Non-Controlled Affiliates																Income from securities loaned

Institutional Fiduciary Trust Money Market Portfolio 0.01%	$	—	$	608,244	$	(574,344	)	$	—	$	—	$	33,900		33,900	$	—

4. Income Taxes

For tax purposes, capital losses may be carried over to offset future capital gains, if any. At March 31, 2021, the capital loss carryforwards were as follows:



	Franklin LibertyQ Emerging Markets ETF		Franklin LibertyQ Global Dividend ETF		Franklin LibertyQ Global Equity ETF		Franklin LibertyQ International Equity Hedged ETF
Capital loss carryforwards not subject to expiration:
Short term	$	17,040,699	$	474,389	$	367,777	$	402,906
Long term		13,874,667		1,004,341		422,506		802,614

Total capital loss carryforwards	$	30,915,366	$	1,478,730	$	790,283	$	1,205,520

The tax character of distributions paid during the years ended March 31, 2021 and 2020, were as follows:



	Franklin LibertyQ Emerging Markets ETF				Franklin LibertyQ Global Dividend ETF

	2021		2020		2021		2020
Distributions paid from ordinary income	$	652,807	$	13,252,802	$	716,542	$	632,323


	Franklin LibertyQ Global Equity ETF				Franklin LibertyQ International Equity Hedged ETF

	2021		2020		2021		2020
Distributions paid from:
Ordinary income	$	359,864	$	618,417	$	583,704	$	57,514
Long-term Capital Gain	$	—	$	—	$	229,869	$	97,496

	$	359,864	$	618,417	$	813,573	$	155,010



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NOTES TO FINANCIAL STATEMENTS

4. Income Taxes (continued)

At March 31, 2021, 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	$	21,055,931		$	23,366,328		$	12,265,402		$	11,316,601

Unrealized appreciation	$	5,513,184		$	3,858,439		$	3,178,913		$	2,558,015
Unrealized depreciation		(1,940,884	)		(684,898	)		(422,231	)		(643,093	)

Net unrealized appreciation (depreciation)	$	3,572,300		$	3,173,541		$	2,756,682		$	1,914,922

Distributable earnings – undistributed ordinary income	$	122,357		$	201,707		$	106,242		$	179,349

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

5. Investment Transactions

Purchases and sales of investments (excluding short term securities and in-kind transactions, if any) for the year ended March 31, 2021, 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	$	10,245,564	$	9,629,520	$	4,287,513	$	4,286,353
Sales	$	32,977,615	$	9,612,638	$	4,742,975	$	5,235,041

In-kind transactions associated with creation and redemptions for the year ended March 31, 2021, 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	$	—	$	—	$	—	$	2,504,374
Value of Securities Delivered^a	$	18,261,944	$	—	$	5,180,438	$	—

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

At March 31, 2021, in connection with securities lending transactions, certain or all Funds loaned investments and received cash collateral as follows:



	Franklin LibertyQ Emerging Markets ETF
Securities lending transactions^a:
Equity Investments^b	$	33,900

^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.



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NOTES TO FINANCIAL STATEMENTS

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 March 31, 2021, Franklin LibertyQ Emerging Markets ETF had 11.3% of its net assets invested in Russia. The remaining Funds in the Trust did not have significant investment in Russia.

7. Novel Coronavirus Pandemic

The global outbreak of the novel coronavirus disease, known as COVID-19, has caused adverse effects on many companies, sectors, nations, regions and the markets in general, and may continue for an unpredictable duration. The effects of this pandemic may materially impact the value and performance of the Funds, their ability to buy and sell fund investments at appropriate valuations and their ability to achieve their investment objectives.

8. Other Derivative Information

At March 31, 2021, 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	$	173	^a	Variation margin on futures contracts	$	—

Franklin LibertyQ Global Dividend ETF

Equity contracts	Variation margin on futures contracts	$	—		Variation margin on futures contracts	$	683	^a

Franklin LibertyQ Global Equity ETF

Equity contracts	Variation margin on futures contracts	$	—		Variation margin on futures contracts	$	341	^a

Franklin LibertyQ International Equity Hedged ETF

Equity contracts	Variation margin on futures contracts	$	—		Variation margin on futures contracts	$	—

Foreign exchange contracts	Unrealized appreciation on OTC forward exchange contracts		339,612		Unrealized depreciation on OTC forward exchange contracts		1,911

Totals		$	339,612			$	1,911

^aThis amount reflects the cumulative appreciation (depreciation) of futures contracts as reported in the Statement of Investments. Only the variation margin receivable/payable at period end is separately reported within the Statements of Assets and Liabilities. Prior variation margin movements were recorded to cash upon receipt or payment.



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NOTES TO FINANCIAL STATEMENTS

8. Other Derivative Information (continued)

For the year ended March 31, 2021, 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 contract	Futures contracts	$	144,091		Futures contracts	$	(50,663	)

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

Equity contract	Futures contracts	$	27,278		Futures contracts	$	(4,535	)

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

Equity contract	Futures contracts	$	17,816		Futures contracts	$	(4,193	)

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

Equity contract	Futures contracts	$	10,420		Futures contracts	$	(3,852	)

Foreign exchange contracts	Forward exchange contract	$	(708,270	)	Forward exchange contract	$	124,538


Totals		$	(697,850	)		$	120,686

For the year ended March 31, 2021, 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	$	164,105	$	58,103	$	32,603	$	11,161
Forward exchange contracts	$	—	$	—	$	—	$	30,901,265

At March 31, 2021, 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	$	339,612	$	1,911

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



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NOTES TO FINANCIAL STATEMENTS

8. Other Derivative Information (continued)

At March 31, 2021, 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 LibertyQ International Equity Hedged ETF
Counterparty
BOFA	$	240,023	$	(1,280	)	$	—	$	—	$	238,743
DBAB		28,465		(545	)		—		—		27,920
HSBK		13,864		(15	)		—		—		13,849
MSCO		43,390		(52	)		—		—		43,338
UBS AG		13,870		(19	)		—		—		13,851

Total	$	339,612	$	(1,911	)	$	—	$	—	$	337,701

At March 31, 2021, 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^a		Cash Collateral Pledged^a		Net Amount (Not less than zero)
Franklin LibertyQ International Equity Hedged ETF
Counterparty
BOFA	$	1,280	$	(1,280	)	$	—	$	—	$	—
DBAB		545		(545	)		—		—		—
HSBK		15		(15	)		—		—		—
MSCO		52		(52	)		—		—		—
UBS AG		19		(19	)		—		—		—

Total	$	1,911	$	(1,911	)	$	—	$	—	$	—

See Note 1(c) regarding derivative financial instruments.

9. 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)



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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.

A summary of inputs used as of March 31, 2021, in valuing the Funds’ assets and liabilities carried at fair value, is as follows:



	Level 1		Level 2		Level 3		Total

Franklin LibertyQ International Equity Hedged ETF

Assets:
Investments in Securities:^a
Equity Investments^b	$	13,231,523	$	—	$	—	$	13,231,523

Other Financial Instruments:
Forward Exchange Contracts	$	—	$	339,612	$	—	$	339,612


Liabilities:
Other Financial Instruments:
Forward Exchange Contracts	$	—	$	1,911	$	—	$	1,911


Franklin LibertyQ Emerging Markets ETF

Assets:
Investments in Securities:^a
Equity Investments^b	$	24,594,331	$	—	$	—	$	24,594,331
Short-Term Investments		33,900		—		—		33,900

Total Investments in Securities	$	24,628,231	$	—	$	—	$	24,628,231

Other Financial Instruments:
Futures Contracts	$	173	$	—	$	—	$	173


Franklin LibertyQ Global Dividend ETF

Assets:
Investments in Securities:^a
Equity Investments^b	$	26,539,869	$	—	$	—	$	26,539,869


Liabilities:
Other Financial Instruments:
Futures Contracts	$	683	$	—	$	—	$	683


Franklin LibertyQ Global Equity ETF

Assets:
Investments in Securities:^a
Equity Investments^b	$	15,022,084	$	—	$	—	$	15,022,084


Liabilities:
Other Financial Instruments:
Futures Contracts	$	341	$	—	$	—	$	341

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

^bIncludes common and preferred stocks.



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NOTES TO FINANCIAL STATEMENTS

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
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.
DBAB		Deutsche Bank AG
HSBK		HSBC Bank PLC
IDR		International Depository Receipt
MSCO		Morgan Stanley
UBSW		UBS AG



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Report of Independent Registered Public Accounting Firm

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

Opinions on the Financial Statements

We have audited the accompanying statements of assets and liabilities, including the statements of investments, of Franklin LibertyQ Emerging Markets ETF, Franklin LibertyQ Global Dividend ETF, Franklin LibertyQ Global Equity ETF and Franklin LibertyQ International Equity Hedged ETF (four of the funds constituting Franklin Templeton ETF Trust, hereafter collectively referred to as the “Funds”) as of March 31, 2021, the related statements of operations for the year ended March 31, 2021, the statements of changes in net assets for each of the two years in the period ended March 31, 2021, including the related notes, and the financial highlights for each of the periods indicated therein (collectively referred to as the “financial statements”). In our opinion, the financial statements present fairly, in all material respects, the financial position of each of the Funds as of March 31, 2021, the results of each of their operations for the year then ended, the changes in each of their net assets for each of the two years in the period ended March 31, 2021 and each of the financial highlights for each of the periods indicated therein in conformity with accounting principles generally accepted in the United States of America.

Basis for Opinions

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

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

Our audits included performing procedures to assess the risks of material misstatement of the financial statements, whether due to error or fraud, and performing procedures that respond to those risks. Such procedures included examining, on a test basis, evidence regarding the amounts and disclosures in the financial statements. Our audits also included evaluating the accounting principles used and significant estimates made by management, as well as evaluating the overall presentation of the financial statements. Our procedures included confirmation of securities owned as of March 31, 2021 by correspondence with the custodian and brokers; when replies were not received from brokers, we performed other auditing procedures. We believe that our audits provide a reasonable basis for our opinions.

PricewaterhouseCoopers LLP

San Francisco, California

May 20, 2021

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



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Tax information (unaudited)

Under Section 854(b)(1)(A) of the Internal Revenue Code, the Funds hereby report the following percentage amounts of the ordinary income dividends as income qualifying for the dividends received deduction for the fiscal year ended March 31, 2021.



Franklin LibertyQ Global Dividend ETF		Franklin LibertyQ Global Equity ETF
	34.12%		46.24%

Under Section 854(b)(1)(B) of the Internal Revenue Code, the Funds hereby report the maximum amount allowable but no less than the following amounts as qualified dividends for purposes of the maximum rate under Section 1(h)(11) of the Internal Revenue Code for the fiscal year ended March 31, 2021.



Franklin LibertyQ Emerging Markets ETF		Franklin LibertyQ Global Dividend ETF		Franklin LibertyQ Global Equity ETF		Franklin LibertyQ International Equity Hedged ETF
	652,977		806,542		362,995		$319,340

Distributions, including qualified dividend income, paid during calendar year 2021 will be reported to shareholders on Form 1099-DIV by mid-February 2022. Shareholders are advised to check with their tax advisors for information on the treatment of these amounts on their individual income tax returns.

At March 31, 2021, more than 50% of the following Funds’ total assets were invested in securities of foreign issuers. In most instances, foreign taxes were withheld from income paid to the Funds on these investments. The Funds elect to treat foreign taxes paid as allowed under Section 853 of the Internal Revenue Code. This election will allow shareholders of record as of the June 2021 distribution, to treat their proportionate share of foreign taxes paid by the Funds as having been paid directly by them. The shareholder shall consider these amounts as foreign taxes paid in the tax year in which they receive the Fund distribution.

Franklin LibertyQ Emerging Markets ETF

Franklin LibertyQ Global Dividend ETF

Franklin LibertyQ International Equity Hedged ETF

Under Section 852(b)(3)(C) of the Internal Revenue Code, the Funds hereby report the maximum amount allowable but no less than the following amounts as long term capital gain dividends for the fiscal year ended March 31, 2021:


Franklin LibertyQ International Equity Hedged ETF		$	229,869

Under Section 871(k)(2)(C) of the Internal Revenue Code, the Funds hereby report the maximum amount allowable but no less than the following amounts as short term capital gain dividends for purposes of the tax imposed under Section 871(a)(1)(A) of the Internal Revenue Code for the fiscal year ended March 31, 2021


Franklin LibertyQ Emerging Markets ETF	$	942,482
Franklin LibertyQ Global Dividend ETF	$	535,776
Franklin LibertyQ International Equity Hedged ETF	$	219,694



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Board Members and Officers

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

Independent Board Members



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

Rohit Bhagat (1964) One Franklin Parkway San Mateo, CA 94403-1906	Lead Independent Trustee	Since 2016	49	AssetMark Financial Holdings, Inc. (investment solutions) (2018-present) and PhonePe (December 2020) (payment and financial services); formerly, Axis Bank (financial) (2013-2021), FlipKart Limited (2019-December 2020) (eCommerce company); CapFloat Financial Services Pvt., Ltd. (non-banking finance company) (2018) and Zentific Investment Management (hedge fund) (2015-2018).

Principal Occupation During at Least the Past 5 Years:
Managing Member, Mukt Capital, LLC (private investment firm) (2014-present); Advisor, Optimal Asset Management (investment technology and advisory services company) (2015-present); Chief Executive Officer and Director, FinTech Evolution Acquisition (eCommerce company) (February 2021-present); and formerly, Chairman, Asia Pacific, BlackRock (2009-2012); Global Chief Operating Officer, Barclays Global Investors (investment management) (2005-2009); and Senior Partner, The Boston Consulting Group (management consulting) (1992-2005).

Deborah D. McWhinney (1955) One Franklin Parkway San Mateo, CA 94403-1906	Trustee	Since 2020	49	IHS Markit (information services) (2015-present), Borg Warner (automotive) (2018-present), LegalShield (consumer services) (2020-present); and formerly, Fluor Corporation (construction and engineering) (2014-2020) and Focus Financial Partner, LLC (financial services) (2018-2020).

Principal Occupation During at Least the Past 5 Years:
Director of various companies; and formerly, Board Member, Lloyds Banking Group (2015-2018) (financial institution)) and Fresenius Medical Group (2016-2018) (healthcare); Chief Executive Officer (2013-2014) and Chief Operating Officer (2011-2013), CitiGroup Global Enterprise Payments (financial services); and President, Citi’s Personal Banking and Wealth Management (2009-2011).

Anantha K. Pradeep (1963) One Franklin Parkway San Mateo, CA 94403-1906	Trustee	Since 2016	49	None

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



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Interested Board Members and Officers



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

**Jennifer M. Johnson (1964) One Franklin Parkway San Mateo, CA 94403-1906	Trustee and Chairperson of the Board	Since 2016	60	None

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

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

Principal Occupation During at Least the Past 5 Years:
Deputy General Counsel, Franklin Templeton; and officer of some of the other subsidiaries of Franklin Resources, Inc. and of 42 of the investment companies in Franklin Templeton.

Breda M. Beckerle (1958) 280 Park Avenue New York, NY 10017	Chief Compliance Officer	Since November 2020	Not Applicable	Not Applicable

Principal Occupation During at Least the Past 5 Years:
Chief Compliance Officer, Fiduciary Investment Management International, Inc., Franklin Advisers, Inc., Franklin Advisory Services, LLC, Franklin Mutual Advisers, LLC, Franklin Templeton Institutional, LLC; and officer of 42 of the investment companies in Franklin Templeton.

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

Principal Occupation During at Least the Past 5 Years:
Senior Associate General Counsel, Franklin Templeton; Vice President, Franklin Templeton Distributors, Inc. and FASA, LLC; and officer of 42 of the investment companies in Franklin Templeton.

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

Principal Occupation During at Least the Past 5 Years:
Senior Vice President, Franklin Templeton Services, LLC; officer of 42 of the investment companies in Franklin Templeton; and formerly, Vice President, Global Tax (2012-April 2017) and Treasurer/Assistant Treasurer, Franklin Templeton (2009-2017).

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

Principal Occupation During at Least the Past 5 Years:
Vice President, Franklin Templeton Companies, LLC; Chief Compliance Officer, Franklin Templeton Distributors, Inc. and Franklin Templeton Investor Services, LLC; and officer of 42 of the investment companies in Franklin Templeton.



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Interested Board Members and Officers (continued)



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

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

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

Vivek Pai (1970) 300 S.E. 2nd Street Fort Lauderdale, FL 33301-1923	Treasurer, Chief Financial Officer and Chief Accounting Officer	Since 2019	Not Applicable	Not Applicable

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

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

Principal Occupation During at Least the Past 5 Years:
Associate General Counsel and officer of 42 of the investment companies in Franklin Templeton.

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

Principal Occupation During at Least the Past 5 Years:
General Counsel and Executive Vice President, Franklin Resources, Inc.; and officer of some of the other subsidiaries of Franklin Resources, Inc. and of 42 of the investment companies in Franklin Templeton.

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

Principal Occupation During at Least the Past 5 Years:
Senior Associate General Counsel, Franklin Templeton; Assistant Secretary, Franklin Resources, Inc.; Vice President and Secretary, Templeton Investment Counsel, LLC; and officer of 42 of the investment companies in Franklin Templeton.

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

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

Note 1: Officer information is current as of the date of this report. It is possible that after this date, information about officers may change.

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

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



franklintempleton.com	Annual Report	87

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 recent 12-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 Form 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

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



88	Annual Report	franklintempleton.com

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

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

ANNUAL REPORT

FRANKLIN TEMPLETON

ETF TRUST

March 31, 2021

LOGO


Franklin Liberty Investment Grade Corporate ETF		Franklin Liberty U.S. Low Volatility ETF
Franklin Liberty Ultra Short Bond ETF		Franklin Liberty U.S. Treasury Bond ETF
Franklin Liberty U.S. Core Bond ETF



Contents

Annual Report

Franklin Liberty Investment Grade Corporate ETF			2
Franklin Liberty Ultra Short Bond ETF			9
Franklin Liberty U.S. Core Bond ETF			16
Franklin Liberty U.S. Low Volatility ETF			22
Franklin Liberty U.S. Treasury Bond ETF			29
Financial Highlights and Statements of Investments			35
Financial Statements			60
Notes to Financial Statements			67
Report of Independent Registered Public Accounting Firm			80
Tax Information			82
Board Members and Officers			83
Shareholder Information			86

Visit franklintempleton.com for fund updates and documents, or to find helpful financial planning tools.


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



franklintempleton.com	Annual Report	1

ANNUAL REPORT

Franklin Liberty Investment Grade Corporate ETF

This annual report for Franklin Liberty Investment Grade Corporate ETF covers the fiscal year ended March 31, 2021.

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 the 12-month period, the Fund posted cumulative total returns of +10.28% based on market price and +9.43% based on net asset value (NAV).¹ In comparison, the Bloomberg Barclays U.S. Corporate Investment Grade Index posted a +8.73% total return for the same period.¹ You can find more of the Fund’s performance data in the Performance Summary beginning on page 5.


Top 10 Sectors/Industries

3/31/21

	% of Total Net Assets
Banks		17.2%
Oil, Gas & Consumable Fuels		9.7%
Electric Utilities		8.4%
Insurance		4.2%
Capital Markets		3.6%
Diversified Telecommunication Services		3.4%
Health Care Providers & Services		3.2%
Pharmaceuticals		2.9%
Aerospace & Defense		2.8%
Tobacco		2.8%

Economic and Market Overview

The U.S. bond market, as measured by the Bloomberg Barclays U.S. Aggregate Bond Index, posted marginally positive total returns during the 12 months ended March 31, 2021. The period began at the height of the economic and social disruption that came in the wake of the novel coronavirus (COVID-19) pandemic, which significantly impacted U.S. bond markets. Throughout the 12-month period, as the U.S. economy adapted to the presence of COVID-19, investor appetite for risk increased. Consequently, lower-rated bonds posted significantly greater returns than higher-rated bonds. In early 2021, however, the implementation of mass vaccination programs alongside improving economic indicators prompted investors to anticipate that increased inflation would lead to higher interest rates.

The U.S. Federal Reserve (Fed) maintained the federal funds target rate at a range of 0.00%–0.25% and continued its program of open-ended purchasing of government-backed and corporate bonds as necessary to provide liquidity to bond markets. Furthermore, the Fed signaled that interest rates would potentially remain low, even if inflation moderately exceeded the Fed’s 2% target for some time.

U.S. Treasury bonds, as measured by the Bloomberg Barclays U.S. Treasury Index, posted negative total returns during the period. The 10-year U.S. Treasury yield (which moves inversely to price) was at or near all-time lows for the first half of the reporting period. However, yields rose in the period’s second half, as renewed strength in the economy prompted investors to increase their inflation expectations. Mortgage-backed securities (MBS), as measured by the Bloomberg Barclays MBS Index, had marginally negative total returns for the period despite Fed support, as lower interest rates accelerated prepayments from mortgage refinancing, which weighed on MBS returns.

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.

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 36.



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FRANKLIN LIBERTY INVESTMENT GRADE CORPORATE ETF

Index, posted a strong advance, outpacing investment-grade corporate bonds, as represented by the Bloomberg Barclays U.S. Corporate Bond Index, which nevertheless posted solid returns.

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 short-term U.S. government securities, 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 in non-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.


Top 10 Holdings

3/31/21

Issue/Issuer	% of Total Net Assets
HSBC Holdings PLC, senior note, 1.645% to 4/18/25, FRN thereafter, 4/18/26		1.6%
Enel Finance International NV, senior note, 144A,13.625%, 5/25/2027		1.4%
Bank of America Corp., sub. bond, 4.183%, 11/25/2027		1.3%
BNP Paribas SA, senior note, 144A, 4.705% to 1/10/24, FRN thereafter,1/10/25		1.3%
BPCE SA, senior note, 144A, 5.70%, 10/22/23		1.3%
AT&T Inc., senior note, 3.80%, 2/15/27		1.3%
Imperial Brands Finance PLC, senior note, 144A, 4.25%, 7/21/25		1.3%
Tencent Holdings Ltd., senior note, 144A, 3.595%, 1/19/28		1.3%
Northrop Grumman Corp., senior bond, 5.25%, 5/01/50		1.1%
National Australia Bank Ltd., sub. note, 144A, 2.332%, 8/21/30		1.1%

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

Manager’s Discussion

Investment-grade (IG) corporate bonds performed well for most of the 12 months under review, helped by lower U.S. Treasury yields for most of 2020 and tighter bond spreads. Performance turned negative in the later months of the review period, as Treasury yields rebounded to levels last seen in early 2020.

The Fund outperformed its benchmark for the 12 months under review. Our allocation across quality segments was the main contributor to performance, relative to the benchmark, and our allocation across industries also helped. By contrast, security selection within industry sectors and the Fund’s yield curve positioning detracted from relative returns.

The Fund’s overweighted allocation to lower-quality issues was positive for relative performance during the period, as those bonds rebounded strongly after the initial novel coronavirus shock to financial markets in early 2020. Industry allocation also helped performance, helped by a significant overweighted allocation to the energy industry. Underweighted positions in banking and technology were positive drivers as well.

Security selection hurt performance during the period, as some of the higher-quality issues in the portfolio lagged returns within their sector, as spreads tightened. Duration and yield curve positioning was a modest negative, too, although the Fund’s duration remained close to the benchmark’s duration during the entire review period.

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.



franklintempleton.com	Annual Report	3

FRANKLIN LIBERTY INVESTMENT GRADE CORPORATE ETF

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

Marc Kremer, CFA

Shawn Lyons, CFA

Thomas Runkel, CFA

Pururav Thoutireddy, Ph.D.

Portfolio Management Team

The foregoing information reflects our analysis, opinions and portfolio holdings as of March 31, 2021, 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.



4	Annual Report	franklintempleton.com

FRANKLIN LIBERTY INVESTMENT GRADE CORPORATE ETF

Performance Summary as of March 31, 2021

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 3/31/21¹

Cumulative Total Return²

Average Annual Total Return²

Based on
NAV³

Based on
market price⁴

Based on
NAV³

Based on
market price⁴

1-Year

+9.43%

+10.28%

+9.43%

+10.28%

3-Year

+18.91%

+19.33%

+5.94%

+6.07%

Since Inception (10/3/16)

+19.51%

+19.68%

+4.05%

+4.08%



	30-Day Standardized Yield⁶
Distribution Rate⁵	(with fee waiver)		(without fee waiver)
3.40%		2.10%		1.93%

See page 7 for Performance Summary footnotes.



franklintempleton.com	Annual Report	5

FRANKLIN LIBERTY INVESTMENT GRADE CORPORATE ETF

PERFORMANCE SUMMARY

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

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

10/3/16–3/31/21

LOGO

See page 7 for Performance Summary footnotes.



6	Annual Report	franklintempleton.com

FRANKLIN LIBERTY INVESTMENT GRADE CORPORATE ETF

PERFORMANCE SUMMARY

Distributions (4/1/20–3/31/21)



Net Investment Income	Short-Term Capital Gain		Long-Term Capital Gain		Total
$0.825997		$0.147958		$0.083062		$1.057017

Total Annual Operating Expenses⁸



With Fee Waiver	Without Fee Waiver
0.35%		0.58%

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. Events such as the spread of deadly diseases, disasters, and financial, political or social disruptions, may heighten risks and adversely affect performance. 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 March dividend and the NAV per share on 3/31/21.

6. The Fund’s 30-day standardized yield is calculated over a trailing 30-day period using the yield to maturity on bonds and/or the dividends accrued on stocks. It may not equal the Fund’s actual income distribution rate, which reflects the Fund’s past dividends paid to shareholders.

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

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

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



franklintempleton.com	Annual Report	7

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


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

Beginning Account Value 10/1/20		Ending Account Value 3/31/21		Expenses Paid During Period 10/1/20–3/31/21^1,2		Ending Account Value 3/31/21		Expenses Paid During Period 10/1/20–3/31/21^1,2		Net Annualized Expense Ratio²
	$1,000.00	$	978.30	$	1.73	$	1,023.19	$	1.77		0.35	%

2. Reflects expenses after fee waivers and expense reimbursements.



8	Annual Report	franklintempleton.com

Franklin Liberty Ultra Short Bond ETF

This annual report for Franklin Liberty Ultra Short Bond ETF covers the period since the Fund’s inception on July 14, 2020, through March 31, 2021.

Your Fund’s Goal and Main Investments

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 bonds and investments that provide exposure to bonds.

Performance Overview

For the period since inception on July 14, 2020, through March 31, 2021, the Fund posted cumulative total returns of +0.91% based on market price and +0.91% based on net asset value (NAV). In comparison, the ICE BofA U.S. 3-Month Treasury Bill Index, which tracks the performance of short-term U.S. government securities with a remaining term to final maturity of less than three months, posted a +0.09% total return.¹ You can find more of the Fund’s performance data in the Performance Summary beginning on page 12.


Top 10 Sectors/Industries

3/31/2021

	% of Total Net Assets
Banks		20.3%
Pharmaceuticals		12.2%
Capital Markets		8.1%
Oil, Gas & Consumable Fuels		6.2%
Health Care Providers & Services		6.2%
Aerospace & Defence		6.1%
Chemicals		4.2%
Biotechnology		4.1%
Consumer Finance		4.1%
Insurance		2.1%

Economic and Market Overview

The U.S. bond market, as measured by the Bloomberg Barclays U.S. Aggregate Bond Index, posted negative total returns during the period since Fund’s inception on July 14, 2020, through March 31, 2021. Prior to the review period, the novel coronavirus (COVID-19) pandemic caused economic and social disruption that significantly impacted U.S. bond markets. Throughout the review period, as the U.S. economy adapted to the presence of COVID-19, investor appetite for risk increased. Consequently, lower-rated bonds posted significantly greater returns than higher-rated bonds. In early 2021, however, the implementation of mass vaccination programs alongside improving economic indicators prompted investors to anticipate that increased inflation would lead to higher interest rates.

U.S. Treasury bonds, as measured by the Bloomberg Barclays U.S. Treasury Index, posted negative total returns during the period. The 10-year U.S. Treasury yield (which moves inversely to price) was at or near all-time lows prior to the reporting period. However, yields rose during the review period, as renewed strength in the economy prompted investors to increase their inflation expectations. Mortgage-backed securities (MBS), as measured by the Bloomberg Barclays MBS Index, had marginally negative total returns for the period despite Fed support, as lower interest rates accelerated prepayments from mortgage refinancing, which weighed on MBS returns.

1. Source: Morningstar. Treasuries, if held to maturity, offer a fixed rate of return and a fixed principal value; their interest payments and principal are guaranteed.

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 43.



franklintempleton.com	Annual Report	9

FRANKLIN LIBERTY ULTRA SHORT BOND ETF

Index, posted a strong advance, outpacing investment-grade corporate bonds, as represented by the Bloomberg Barclays U.S. Corporate Bond Index, which posted negative returns.

Investment Strategy

The Fund targets securities with an estimated average portfolio duration of one year or less. The Fund invests predominantly in U.S. dollar denominated, investment-grade debt securities and investments. The Fund generally expects to invest a substantial portion of its assets in cash, cash equivalents and high-quality money market securities, including commercial paper, certificates of deposit, repurchase agreements and affiliated or unaffiliated money market funds. The Fund may invest in securities issued or guaranteed by the U.S. government or by non-U.S. governments or their respective agencies or instrumentalities, including mortgage-backed securities and inflation-indexed securities issued by the U.S. Treasury. The Fund may also invest in mortgage dollar rolls, asset-backed securities and U.S. dollar denominated foreign securities.

The Fund may enter into certain interest rate-related derivatives 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.


Top 10 Holdings

3/31/2021

Issue/Issuer	% of Total Net Assets
Citigroup Inc., senior note, FRN thereafter, 1.621%, 9/1/23		4.1%
The Boeing Co.,sr.Unsecured, 1.167%, 2/4/23		4.1%
Citibank Credit Card Issuance Trust, Series 2017-A5, Class A5, A5, FRN thereafter, 0.731%, 4/22/26		4.1%
Discover Card Execution Note Trust, Series 2017-A5,Class A5, FRN thereafter, 0.76%, 12/15/26		4.1%
JPMorgan Chase & Co., senior note, FRN thereafter, 1.118%, 4/25/23		4.1%
AmerisourceBergen Corp., Sr.unsecured, 0.737%, 3/15/23		4.0%
Kinder Morgan Inc., 144A, 5.626%, 11/15/23		2.2%
LYB International Finance BV, senior note, 4%,7/15/23		2.2%
CVS Health Corp., senior note, 3.7%, 3/9/23		2.1%
Liberty Mutual Group Inc., senior note, 144A, 7.94%, 5/1/22		2.1%

Manager’s Discussion

While five-year and longer Treasury yields rose sharply, two-year and shorter Treasury rates remained stable during the period with the Fed Funds rate anchored at 0.00% to 0.25%. Short-term investment grade corporate bond spreads narrowed during the period as demand for higher yielding alternatives to government bonds remained strong. Corporate bonds were also aided by the Fed’s pledge to support the investment grade market particularly on the short end of the yield curve. Most high quality short-term fixed income sectors posted modestly positive returns for the period with spread sectors outperforming government sectors.

The Fund outperformed its benchmark during the review period. Our overweighted position in corporate credit was the biggest contributor to relative performance as tighter spreads and Fed support helped investment-grade credit outperform short-term Treasuries. Industry allocations that contributed to performance included an overweighting to banking, energy and capital goods. Positive contributors from individual positions included Boeing, Canadian Imperial Bank, and Bank of Montreal while detractors included Woodside Finance, Bank of NY Mellon and Textron. Duration positioning had minimal impact on relative performance.

While the ETF has the ability to invest in derivative securities, it held no derivatives during the period under review.



10	Annual Report	franklintempleton.com

FRANKLIN LIBERTY ULTRA SHORT BOND ETF

Thank you for your participation in Franklin Liberty Ultra Short Bond ETF. We look forward to serving your future investment needs.

David Yuen, CFA, FRM

Shawn Lyons, CFA

Thomas Runkel, CFA

Kent Burns, CFA

Johnson Ng

Portfolio Management Team



franklintempleton.com	Annual Report	11

FRANKLIN LIBERTY ULTRA SHORT BOND ETF

Performance Summary as of March 31, 2021

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 (7/16/20), the NAV of the Fund is used as a proxy for the Market Price to calculate market returns. Market and NAV returns assume that dividends and capital gain distributions have been reinvested at Market Price and NAV.

Performance as of 3/31/21¹

Cumulative Total Return²

Average Annual Total Return²

Based on
NAV³

Based on

market price⁴

Based on
NAV³

Based on

market price⁴

Since Inception (7/14/20)

+0.91%

+1.28%



	30-Day Standardized Yield⁶
Distribution Rate⁵	(with fee waiver)		(without fee waiver)
2.09%		0.38%		-2.89%

See page 14 for Performance Summary footnotes.



12	Annual Report	franklintempleton.com

FRANKLIN LIBERTY ULTRA SHORT BOND ETF

PERFORMANCE SUMMARY

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

Class A (7/14/20–3/31/21)

LOGO

See page 14 for Performance Summary footnotes.



franklintempleton.com	Annual Report	13

FRANKLIN LIBERTY ULTRA SHORT BOND ETF

PERFORMANCE SUMMARY

Distributions (7/14/20–3/31/21)



Net Investment Income	Short-Term Capital Gain		Long-Term Capital Gain		Total
$0.330584		$0.015610		$—		$0.346194

Total Annual Operating Expenses⁸



With Fee Waiver	Without Fee Waiver
0.15%		0.75%

All investments involve risk, including possible loss of principal. Changes in the financial strength of a bond issuer or in a bond’s credit rating may affect its value. 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 is not a money market fund and does not seek to maintain a stable net value of $1.00 per share. Interest rate movements, unanticipated changes in mortgage prepayment rates 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 opposite direction of interest rates. Therefore, as the price of bonds in the Fund adjust to rise in interest rates, the Fund’s share price may decline. By focusing its investments in financials related industries, the Fund carries much greater risks of adverse developments and price movements in such industries than a fund that invests in a wide variety of industries. Because the Fund concentrates in a specific industry or group of industries, there is also the risk that the Fund will perform poorly during a slump in demand for securities of companies and such industries. The Fund’s investment 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 involves special risks as such may not achieve the anticipated benefits and/or may result in losses to the Fund. Events such as the spread of deadly diseases, disasters, and financial, political or social disruptions, may heighten risks and adversely affect performance. 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 March dividend and the NAV per share on 3/31/21.

7. Source: Morningstar. The ICE BofA U.S. 3-Month Treasury Bill Index tracks the performance of short-term U.S. government securities with a remaining term to final maturity of less than three months.

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



14	Annual Report	franklintempleton.com

FRANKLIN LIBERTY ULTRA SHORT 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


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

Beginning Account Value 10/1/20		Ending Account Value 3/31/21		Expenses Paid During Period 10/1/20–3/31/21^1,2		Ending Account Value 3/31/21		Expenses Paid During Period 10/1/20–3/31/21^1,2		Net Annualized Expense Ratio²
	$1,000.00	$	1,005.30	$	0.75	$	1,024.18	$	0.76		0.15	%

2. Reflects expenses after fee waivers and expense reimbursements.



franklintempleton.com	Annual Report	15

Franklin Liberty U.S. Core Bond ETF

This annual report for Franklin Liberty U.S. Core Bond ETF covers the fiscal year ended March 31, 2021.

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

During the 12-month period, the Fund posted cumulative total returns of +2.23% based on market price and +2.07% 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 +0.71% total return.¹ You can find more of the Fund’s performance data in the Performance Summary beginning on page 18.


Portfolio Composition

3/31/21

	% of Total Net Assets
U.S. Government & Agency Securities		38.5%
Corporate Bonds & Notes		28.5%
Mortgage-Backed Securities		22.3%
Foreign Government and Agency Securities		4.5%
Municipal Bonds		3.1%
Asset-Backed Securities		1.6%
Short-Term Investments & Other Net Assets		1.5%

Economic and Market Overview

appetite for risk increased. Consequently, lower-rated bonds posted significantly greater returns than higher-rated bonds. In early 2021, however, the implementation of mass vaccination programs alongside improving economic indicators prompted investors to anticipate that increased inflation would lead to higher interest rates.

Fed action was a catalyst for the recovery in the corporate bond market, which advanced overall but varied significantly based on credit rating. The strengthening economy and prospect of a return to normal conditions tempered concerns about credit quality, which benefited lower-quality bonds. Consequently, high-yield corporate bonds, as represented by the Bloomberg Barclays U.S. Corporate High Yield Bond Index, posted a strong advance, outpacing investment-grade corporate bonds, as represented by the Bloomberg Barclays U.S. Corporate Bond Index, which nevertheless posted solid returns.

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

1. 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 46.



16	Annual Report	franklintempleton.com

FRANKLIN LIBERTY U.S. CORE BOND ETF

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 the to-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.

In choosing investments, we select securities in various market sectors based on our assessment of changing economic, market, industry and issuer conditions. We use a top-down analysis of macroeconomic trends, combined with a bottom-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.


Top 10 Holdings

3/31/21

	% of Total Net Assets
U.S. Treasury Note, 2.125%, 2/29/2024		7.3%
U.S. Treasury Note, 0.375%, 11/30/2025		6.1%
U.S. Treasury Note, 1.375%, 8/31/2023		4.6%
U.S. Treasury Note, 1.875%, 9/30/2022		4.2%
U.S. Treasury Note, 0.50%, 3/31/2025		3.5%
U.S. Treasury Note, 1.50%, 3/31/2023		2.1%
U.S. Treasury Bond, 3.50%, 2/15/2039		1.9%
Federal Home Loan Mortgage Corp., 3.00%, 3/1/2050		1.7%
U.S. Treasury Bond, 2.25%, 8/15/2046		1.7%
U.S. Treasury Note, 0.25%, 6/30/2025		1.6%

Manager’s Discussion

Over the period under review, the Fund outperformed its benchmark. The Fund’s sector allocations were the main drivers of outperformance over the Fund’s performance during the previous 12-month period. We maintained overweighted positioning in investment-grade (IG) corporate bonds, sovereign hard-currency emerging market (EM) debt and taxable and tax-exempt municipal (muni) securities, which all boosted returns throughout the year. Additionally, underweighted exposure to asset-backed securities (ABS) was accretive to relative performance. In contrast, with market value positioning lower than the benchmark, both commercial mortgage-backed securities (CMBS) and non-U.S. developed nations debt curbed returns. Security selection was also a strong source of outperformance, led by selection in IG corporate bonds, agency mortgage-backed securities, and non-U.S. developed nations debt. This was partially offset by selection in the sovereign EM, ABS, and taxable muni sectors, which hindered relative returns. Throughout the period, the duration of the portfolio was roughly in line with the underlying benchmark, but curve positioning detracted modestly from results.

The Fund utilized interest rate futures to manage the duration profile of the portfolio.

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

David Yuen, CFA, FRM

Patrick Klein, Ph.D.

Tina Chou

Portfolio Management Team



franklintempleton.com	Annual Report	17

FRANKLIN LIBERTY U.S. CORE BOND ETF

Performance Summary as of March 31, 2021

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 3/31/21¹

Cumulative Total Return²

Average Annual Total Return²

Based on
NAV³

Based on

market price⁴

Based on
NAV³

Based on

market price⁴

1-Year

+2.07%

+2.23%

+2.07%

+2.23%

Since Inception (9/17/19)

+5.26%

+5.42%

+3.39%

+3.49%



	30-Day Standardized Yield⁶
Distribution Rate⁵	(with fee waiver)		(without fee waiver)
2.78%		1.31%		1.27%

See page 20 for Performance Summary footnotes.



18	Annual Report	franklintempleton.com

FRANKLIN LIBERTY U.S. CORE BOND ETF

PERFORMANCE SUMMARY

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

9/17/19–3/31/21

LOGO

See page 20 for Performance Summary footnotes.



franklintempleton.com	Annual Report	19

FRANKLIN LIBERTY U.S. CORE BOND ETF

PERFORMANCE SUMMARY

Distributions (4/1/20–3/31/21)



Net Investment Income	Short-Term Capital Gain		Long-Term Capital Gain		Total
$0.652832		$0.168863		$0.021510		$0.843205

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. Events such as the spread of deadly diseases, disasters, and financial, political or social disruptions, may heighten risks and adversely affect performance. 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 March dividend and the NAV per share on 3/31/21.

7. Source: Morningstar. The Bloomberg Barclays U.S. Aggregate Bond Index tracks the U.S. investment-grade, taxable bond market.

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



20	Annual Report	franklintempleton.com

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


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

Beginning Account Value 10/1/20		Ending Account Value 3/31/21		Expenses Paid During Period 10/1/20–3/31/21^1,2		Ending Account Value 3/31/21		Expenses Paid During Period 10/1/20–3/31/21^1,2		Net Annualized Expense Ratio²
	$1,000.00	$	977.50	$	0.74	$	1,024.18	$	0.76		0.15	%

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

2. Reflects expenses after fee waivers and expense reimbursements.



franklintempleton.com	Annual Report	21

Franklin Liberty U.S. Low Volatility ETF

This annual report for Franklin Liberty U.S. Low Volatility ETF covers the fiscal year ended March 31, 2021.

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 the 12-month period, the Fund posted cumulative total returns of +43.74% based on market price and +43.52% based on net asset value (NAV). In comparison, the Russell 1000^® Index posted a +60.59% total return for the same period.¹ You can find more of the Fund’s performance data in the Performance Summary beginning on page 25.


Top 10 Sectors/Industries

3/31/21

	% of Total Net Assets
Information Technology		27.4%
Health Care		12.9%
Consumer Discretionary		12.3%
Financials		11.5%
Communication Services		10.2%
Industrials		8.5%
Consumer Staples		5.8%
Real Estate		3.1%
Materials		2.8%
Energy		2.6%

Economic and Market Overview

U.S. equities, as measured by the Standard & Poor’s^® 500 Index (S&P 500^®), advanced strongly during the 12 months ended March 31, 2021. Equities rose throughout the reporting period amid the U.S. recovery from the initial shock of the novel coronavirus (COVID-19) pandemic and related restrictions. Better understanding of safety standards that could reduce transmission led many states to partially reopen in April and May 2020, boosting equities. Several significant rounds of stimulus, including direct payments to individuals and programs designed to keep employees on payroll, also supported stock prices. In November 2020, the development of several vaccines bolstered investor confidence, and the implementation of mass vaccination programs in early 2021 led to further gains, as U.S. equities reached an all-time high in March 2021.

The U.S. economy was severely impacted by the pandemic, as business closures and restrictions on gatherings disrupted everyday life. As a result, second-quarter 2020 gross domestic product (GDP) experienced a record annualized decline, and mass layoffs drove the unemployment rate to a peak of 14.8% in April.² However, economic conditions improved rapidly thereafter, with GDP rebounding at a record annualized pace in 2020’s third quarter and expanding more slowly in the fourth quarter. Similarly, the unemployment rate declined notably, reaching 6.0% in March 2021 as jobless claims fell and employment openings began to increase.²

To support the U.S. economy, the U.S. Federal Reserve (Fed) kept the federal funds target rate at a record-low range of 0.00%–0.25%. The Fed also enacted quantitative easing measures aimed at ensuring credit flows to borrowers and supporting credit markets with open-ended bond purchasing. Furthermore, the Fed signaled that interest rates would potentially remain low, even if inflation moderately exceeded its 2% target.

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.

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 56.



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FRANKLIN LIBERTY U.S. LOW VOLATILITY ETF

These factors led investors to anticipate a surge in spending. Nonetheless, areas of economic weakness remained, including total employment numbers that stayed well below pre-pandemic levels, and inflation expectations that increased to the highest level in more than 10 years near period-end.


Top 10 Holdings

3/31/21

Company *Sector/Industry*	% of Total Net Assets
Synopsys Inc. Information Technology		1.5%
Texas Instruments Inc. Information Technology		1.5%
Keysight Technologies Inc. Information Technology		1.5%
Oracle Corp. Information Technology		1.5%
Cisco Systems Inc. Information Technology		1.5%
Amphenol Corp., A Information Technology		1.5%
ANSYS Inc. Information Technology		1.5%
Accenture PLC, A Information Technology		1.5%
International Business Machines Corp. Information Technology		1.5%
Jack Henry & Associates Inc. Information Technology		1.5%

Investment Strategy

The Fund invests primarily in equity securities (principally common stocks) of U.S. companies.³ 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, while also incorporating fundamental view of individual stocks. The Fund’s sector weightings generally are based on the current sector weightings within the Russell

1000^® Index. Individual securities in the Fund’s portfolio are generally weighted equally within each sector. The investment manager may, from time to time, make adjustments to the Fund’s portfolio as a result of corporate actions, changes to the volatility profile of the Fund’s holdings, or for risk management related purposes.

Manager’s Discussion

The Fund generated strong positive absolute returns but underperformed its benchmark, the Russell 1000^® Index, for the 12-month period ended March 31, 2021. Stock selection in the information technology sector was the most significant detractor from relative performance largely due to an underweighting in Apple whose shares reached record highs over the period as pandemic lockdowns drove consumers to its products. In contrast, the sector benefited from investments in chipmakers Synopsys and Texas Instruments and in fiber-optic cable manufacturer Amphenol.

Although consumer discretionary was a relative detractor at the sector level, the Fund’s investments in Tractor Supply Company and Target boosted results. COVID-19 restrictions gave rise to e-commerce growth and homesteading trends, which benefited Tractor Supply’s business. Likewise, in the midst of the pandemic, Target saw strong momentum from a growing e-commerce customer base and demand for consumer products for the home.

Medical product companies Baxter International and Becton, Dickinson and Company underperformed in the health care sector. In the energy sector, low oil prices and refining margins along with a slowdown in energy demand were a drag on the shares of oil companies, including our holding in Royal Dutch Shell. Elsewhere, the pandemic introduced a new set of challenges for urban apartment property company Equity Residential as work-from-home mandates allowed city renters to relocate to cheaper parts of the country.

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

Todd Brighton, CFA

Portfolio Manager

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

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



franklintempleton.com	Annual Report	23

FRANKLIN LIBERTY U.S. LOW VOLATILITY ETF



24	Annual Report	franklintempleton.com

FRANKLIN LIBERTY U.S. LOW VOLATILITY ETF

Performance Summary as of March 31, 2021

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

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

Performance as of 3/31/21¹

Cumulative Total Return²

Average Annual Total Return²

Based on
NAV³

Based on

market price⁴

Based
on NAV³

Based on

market price⁴

1-Year

+43.52%

+43.74%

+43.52%

+43.74%

3-Year

+53.90%

+54.05%

+15.46%

+15.49%

Since Inception (9/20/16)

+88.65%

+88.95%

+15.05%

+15.10%

See page 27 for Performance Summary footnotes.



franklintempleton.com	Annual Report	25

FRANKLIN LIBERTY U.S. LOW VOLATILITY ETF

PERFORMANCE SUMMARY

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

9/20/16–3/31/21

LOGO

See page 27 for Performance Summary footnotes.



26	Annual Report	franklintempleton.com

FRANKLIN LIBERTY U.S. LOW VOLATILITY ETF

PERFORMANCE SUMMARY

Distributions (4/1/20–3/31/21)

Net Investment

Income

$0.635812

Total Annual Operating Expenses⁶



With Fee Waiver	Without Fee Waiver
0.29%		0.53%

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. Source: Morningstar. The Russell 1000 Index is market capitalization weighted and measures performance of the approximately 1,000 largest companies in the Russell 3000 Index, which represents the majority of the U.S. market’s total capitalization.

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



franklintempleton.com	Annual Report	27

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


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

Beginning Account Value 10/1/20		Ending Account Value 3/31/21		Expenses Paid During Period 10/1/20–3/31/21^1,2		Ending Account Value 3/31/21		Expenses Paid During Period 10/1/20–3/31/21^1,2		Net Annualized Expense Ratio²
	$1,000.00	$	1,135.10	$	1.54	$	1,023.49	$	1.46		0.29	%

2. Reflects expenses after fee waivers and expense reimbursements.



28	Annual Report	franklintempleton.com

Franklin Liberty U.S. Treasury Bond ETF

This annual report for Franklin Liberty U.S. Treasury Bond ETF covers the period since the Fund’s inception on June 9, 2020, through March 31, 2021.

Your Fund’s Goal and Main Investments

The Fund seeks income. Under normal market conditions, the Fund invests at least 80% of its net assets in direct obligations of the U.S. Treasury.

Performance Overview

For the period since inception on June 9, 2020, through March 31, 2021, the Fund posted cumulative total returns of -3.15% based on market price and -3.36% based on net asset value (NAV). In comparison, the Bloomberg Barclays U.S. Treasury Index, which measures the performance of U.S. Treasury bills, posted a -3.85% total return.¹ You can find more of the Fund’s performance data in the Performance Summary beginning on page 31.


Portfolio Composition

3/31/21

	% of Total Net Assets
U.S. Government & Agency Securities		93.2%
Mortgage-Backed Securities		1.9%
Short-Term Investments & Other Net Assets		4.9%

Economic and Market Overview

The U.S. bond market, as measured by the Bloomberg Barclays U.S. Aggregate Bond Index, posted negative total returns during the period since the Fund’s inception on June 9, 2020, through March 31, 2021. Prior to the review period, the novel coronavirus (COVID-19) pandemic caused economic and social disruptions that significantly impacted U.S. bond markets. Throughout the review period, as the U.S. economy adapted to the presence of COVID-19,

investor appetite for risk increased. Consequently, lower-rated bonds posted significantly greater returns than higher-rated bonds. In early 2021, however, the implementation of mass vaccination programs alongside improving economic indicators prompted investors to anticipate that increased inflation would lead to higher interest rates.

U.S. Treasury bonds, as measured by the Bloomberg Barclays U.S. Treasury Index, posted negative total returns during the period. The 10-year U.S. Treasury yield (which moves inversely to price) was at or near all-time lows prior to the reporting period. However, yields rose during the review period, as renewed strength in the economy prompted investors to increase their inflation expectations. Mortgage-backed securities (MBS), as measured by the Bloomberg Barclays MBS Index, had marginally negative total returns for the period despite Fed support, as lower interest rates accelerated prepayments from mortgage refinancing, which weighed on MBS returns.

Investment Strategy

The Fund invests at least 80% of its net assets in direct obligations of the U.S. Treasury, including Treasury bonds, bills and notes and investments that provide exposure to direct obligations of the U.S. Treasury. The Fund may also invest in

1. Source: Morningstar. Treasuries, if held to maturity, offer a fixed rate of return and a fixed principal value; their interest payments and principal are guaranteed.

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 59.



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FRANKLIN LIBERTY U.S. TREASURY BOND ETF

securities issued or guaranteed by the U.S. government, its agencies, or instrumentalities, including government sponsored entities and mortgage-backed securities (MBS).

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

To pursue its investment goal, the Fund may enter into certain interest rate-related derivative transactions, principally interest rate/bond futures contracts and interest rate swaps. The use of these derivative transactions may allow the Fund to obtain net long or short exposures to select interest rates or durations. These derivatives may be used 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 a top-down analysis of macroeconomic trends, combined with a bottom-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.


Top 10 Holdings

3/31/21

	% of Total Net Assets
U.S. Treasury Note, 0.125%, 5/31/22		11.8%
U.S. Treasury Note, 1.875%, 7/31/26		7.8%
U.S. Treasury Note, 0.50%, 6/32/27		6.2%
U.S. Treasury Note, 2.50%, 5/15/24		3.6%
U.S. Treasury Note, 1.50%, 11/30/24		3.5%
U.S. Treasury Note, 2.25%, 11/15/24		3.4%
U.S. Treasury Note, 2.125%, 3/31/24		3.3%
U.S. Treasury Note, 2.125%, 11/30/24		3.3%
U.S. Treasury Note, 2.00%, 4/30/24		3.2%
U.S. Treasury Note, 1.50%, 9/30/24		3.1%

Manager’s Discussion

During the period since the Fund’s inception on June 9, 2020, through March 31, 2021, the Fund posted a negative return, although outperforming the benchmark Bloomberg Barclays U.S. Treasury Index.

Our non-benchmark allocation to U.S. Treasury Inflation-Protected Securities as well as security selection within the fixed-rate agency mortgage-backed security (MBS) sector were the primary contributors to relative performance. Conversely, our allocation to MBS hindered results. Our overall duration positioning contributed to relative returns over the period, mainly from the 10-year duration portion of the curve.

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

Warren Keyser

Patrick Klein, Ph.D.

Portfolio Management Team



30	Annual Report	franklintempleton.com

FRANKLIN LIBERTY U.S. TREASURY BOND ETF

Performance Summary as of March 31, 2021

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 (6/11/20), the NAV of the Fund is used as a proxy for the Market Price to calculate market returns. Market and NAV returns assume that dividends and capital gain distributions have been reinvested at Market Price and NAV.

Performance as of 3/31/21¹

Cumulative Total Return²

Average Annual Total Return²

Based on
NAV³

Based on

market price⁴

Based on
NAV³

Based on

market price⁴

Since Inception (6/9/20)

-3.36%

-3.15%

-4.14%

-3.89%



	30-Day Standardized Yield⁶
Distribution Rate⁵	(with fee waiver)		(without fee waiver)
1.93%		0.85%		0.44%

See page 33 for Performance Summary footnotes.



franklintempleton.com	Annual Report	31

FRANKLIN LIBERTY U.S. TREASURY BOND ETF

PERFORMANCE SUMMARY

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

6/9/20–3/31/21

LOGO

See page 33 for Performance Summary footnotes.



32	Annual Report	franklintempleton.com

FRANKLIN LIBERTY U.S. TREASURY BOND ETF

PERFORMANCE SUMMARY

Distributions (6/9/20–3/31/21)

Net Investment

Income

$0.342827

Total Annual Operating Expenses⁸



With Fee Waiver	Without Fee Waiver
0.09%		0.59%

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. Events such as the spread of deadly diseases, disasters, and financial, political or social disruptions, may heighten risks and adversely affect performance. 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 March dividend and the NAV per share on 3/31/21.

7. Source: Morningstar. The Bloomberg Barclays U.S. Treasury Index measures the performance of U.S. Treasury bills.

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



franklintempleton.com	Annual Report	33

FRANKLIN LIBERTY U.S. TREASURY 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


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

Beginning Account Value 10/1/20		Ending Account Value 3/31/21		Expenses Paid During Period 10/1/20–3/31/21^1,2		Ending Account Value 3/31/21		Expenses Paid During Period 10/1/20–3/31/21^1,2		Net Annualized Expense Ratio²
	$1,000.00	$	953.90	$	0.44	$	1,024.48	$	0.45		0.09	%

2. Reflects expenses after fee waivers and expense reimbursements.



34	Annual Report	franklintempleton.com

FRANKLIN TEMPLETON ETF TRUST

Financial Highlights

Franklin Liberty Investment Grade Corporate ETF



	Year Ended March 31,

	2021			2020			2019			2018			2017^a

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

Net asset value, beginning of year	$	24.22		$	24.09		$	23.97		$	24.21		$	25.00


Income from investment operations^b:

Net investment income^c		0.60			0.73			0.82			0.80			0.32

Net realized and unrealized gains (losses)		1.71			0.27			0.21			(0.22	)		(0.78	)


Total from investment operations		2.31			1.00			1.03			0.58			(0.46	)


Less distributions from:

Net investment income		(0.83	)		(0.81	)		(0.91	)		(0.82	)		(0.33	)

Net realized gains		(0.23	)		(0.06	)		—			—			—


Total Distributions		(1.06	)		(0.87	)		(0.91	)		(0.82	)		(0.33	)


Net asset value, end of year	$	25.47		$	24.22		$	24.09		$	23.97		$	24.21


Total return^d		9.43%			4.02%			4.46%			2.38%			(1.83)%

Ratios to average net assets^e

Expenses before waiver and payments by affiliates		0.50%			0.58%			1.07%			1.04%			1.06%

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

Net investment income		2.27%			2.86%			3.49%			3.27%			2.76%

Supplemental data

Net assets, end of year (000’s)		$1,018,639			$553,338			$18,065			$39,554			$53,268

Portfolio turnover rate^f		53.32%	^g		52.17%	^g		22.02%			63.14%			17.85%

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

^cBased on average daily shares outstanding.

^eRatios are annualized for periods less than one year.

^fPortfolio turnover rate includes portfolio transactions that are executed as a result of the Fund offering and redeeming Creation Units solely for cash (“Cash creations”).

^gPortfolio turnover rate excluding cash creations was as follows:

53.32%

52.17%



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

FRANKLIN TEMPLETON ETF TRUST

Statement of Investments, March 31, 2021

Franklin Liberty Investment Grade Corporate ETF



		Country		Principal Amount*		Value
	Corporate Bonds & Notes 96.9%
	Aerospace & Defense 2.8%
	Lockheed Martin Corp., senior note, 4.07%, 12/15/42		United States		4,100,000	$	4,749,124
	Northrop Grumman Corp., senior bond, 5.25%, 5/01/50		United States		8,750,000		11,376,608
	Teledyne Technologies Inc., senior note, 0.95%, 4/01/24		United States		5,000,000		4,982,527
	The Boeing Co.,
	senior note, 2.196%, 2/04/26		United States		5,000,000		4,987,904
	senior note, 4.508%, 5/01/23		United States		2,000,000		2,141,384


							28,237,547

	Air Freight & Logistics 0.8%
	FedEx Corp., senior bond, 4.75%, 11/15/45		United States		7,000,000		8,208,246

	Airlines 1.0%
a	Delta Air Lines Inc./SkyMiles IP Ltd., first lien, 144A, 4.50%, 4.50%, 10/20/25		United States		5,000,000		5,340,152
	United Airlines, senior bond, 3.45%, 1/07/30		United States		4,076,609		4,094,403
	United Airlines 2020-1 Class B Pass Through Trust 4.875%, 1/15/26		United States		1,000,000		1,049,751


							10,484,306

	Banks 17.2%
	Banco Santander SA, sub. note, 2.749%, 12/03/30		Spain		8,900,000		8,484,575
	Bancolombia SA, senior note, 3.00%, 1/29/25		Colombia		6,200,000		6,345,545
	Bank of America Corp.,
	senior note, 2.592% to 4/29/30, FRN thereafter, 4/29/31		United States		5,300,000		5,295,312
	sub. bond, 4.183%, 11/25/27		United States		12,150,000		13,521,927
a	BNP Paribas SA, senior note, 144A, 4.705% to 1/10/24, FRN thereafter,1/10/25		France		11,900,000		13,093,502
a	BPCE SA, senior note, 144A, 5.70%, 10/22/23		France		11,700,000		13,080,797
	Citigroup Inc.,
	senior bond, 3.668% to 7/23/27, FRN thereafter, 7/24/28		United States		6,600,000		7,221,997
	senior note, 2.876% to 7/24/22, FRN thereafter, 7/24/23		United States		1,500,000		1,545,382
	Deutsche Bank AG/New York NY, senior note, 2.129% to 11/24/24, FRN thereafter,11/24/26		Germany		8,000,000		8,025,419
	HSBC Holdings PLC,
	senior bond, 2.848% to 6/04/30, FRN thereafter, 6/04/31		United Kingdom		3,000,000		3,003,895
	senior note, 1.645% to 4/18/25, FRN thereafter, 4/18/26		United Kingdom		16,500,000		16,519,760
	JPMorgan Chase & Co.,
	senior bond, 2.522% to 4/22/30, FRN thereafter, 4/22/31		United States		8,000,000		7,989,577
	senior note, 1.04% to 2/04/26, FRN thereafter, 2/04/27		United States		4,000,000		3,903,171
	sub. bond, 4.25%, 10/01/27		United States		7,100,000		8,051,405
a	National Australia Bank Ltd., sub. note, 144A, 2.332%, 8/21/30		Australia		12,000,000		11,359,284
a	Standard Chartered PLC, senior note, 144A, 1.456%, to 1/14/26 FRN thereafter, 1.456%, 1/14/27		United Kingdom		10,000,000		9,772,358
	SVB Financial Group, senior note, 3.125%, 6/05/30		United States		4,500,000		4,683,321
	Truist Bank, sub. note, 3.30%, 5/15/26		United States		6,800,000		7,370,998
	Truist Financial Corp., sub. bond, 3.875%, 3/19/29		United States		7,300,000		8,111,323
	US Bancorp, senior note, 1.45%, 5/12/25		United States		4,000,000		4,057,093
	Wachovia Corp., Subordinated, 5.50%, 8/01/35		United States		3,600,000		4,491,052
	Wells Fargo & Co., sub. bond, 4.75%, 12/07/46		United States		8,000,000		9,464,585


							175,392,278

	Beverages 1.0%
	Anheuser-Busch Companies LLC/Anheuser-Busch InBev Worldwide Inc. 4.90%, 2/01/46		United States		5,000,000		5,986,248
	Anheuser-Busch InBev Worldwide Inc., senior bond, 5.80%, 1/23/59		Belgium		3,000,000		4,079,658


							10,065,906

	Biotechnology 1.2%
	AbbVie Inc., 4.25%, 11/21/49		United States		3,000,000		3,400,418
	senior note, 2.30%, 11/21/22		United States		4,000,000		4,116,975



36	Annual Report	franklintempleton.com

FRANKLIN TEMPLETON ETF TRUST

STATEMENT OF INVESTMENTS

Franklin Liberty Investment Grade Corporate ETF (continued)



		Country		Principal Amount*		Value
	Corporate Bonds & Notes (continued)
	Biotechnology (continued)
	Amgen Inc., senior note, 2.45%, 2/21/30		United States		5,000,000	$	5,042,431


							12,559,824

	Building Products 0.8%
	Carrier Global Corp., senior note, 3.577%, 4/05/50		United States		8,700,000		8,558,632

	Capital Markets 3.6%
	Brixmor Operating Partnership LP, senior bond, 4.125%, 5/15/29		United States		3,200,000		3,460,403
	Credit Suisse Group AG, ^asenior bond,144A, 3.869% to 1/12/28, FRN thereafter, 1/12/29		Switzerland		3,900,000		4,186,855
	^asenior note, 144A, 2.997% to 12/14/22, FRN thereafter, 12/14/23		Switzerland		8,400,000		8,687,492
	Morgan Stanley, senior note, 1.794%, 2/13/32		United States		9,200,000		8,594,571
	senior note, 2.188% to 4/28/25, FRN thereafter, 4/28/26		United States		1,450,000		1,499,061
	The Goldman Sachs Group Inc., senior note, 2.908% to 6/05/22, FRN thereafter, 6/05/23		United States		3,200,000		3,286,398
	senior note, Series FXD, .481%, 1/27/23		United States		4,000,000		3,995,595
	sub. note, 4.25%, 10/21/25		United States		2,875,000		3,211,086


							36,921,461

	Chemicals 1.4%
a	Alpek SAB de CV, 144A, 3.25%, 2/25/31		Mexico		3,200,000		3,169,248
	EI du Pont de Nemours and Co., senior note, 1.70%, 7/15/25		United States		1,500,000		1,525,911
	The Sherwin-Williams Co., senior bond, 2.30%, 5/15/30		United States		10,000,000		9,864,816


							14,559,975

	Commercial Services & Supplies 0.2%
a	Ashtead Capital Inc., secured note, second lien, 144A, 4.125%, 8/15/25		United Kingdom		1,770,000		1,820,144

	Computers & Peripherals 0.9%
	Apple Inc., senior note, 3.20%, 5/11/27		United States		8,000,000		8,737,667

	Containers & Packaging 1.0%
	WRKCo Inc., senior bond, 4.90%, 3/15/29		United States		7,546,000		8,819,225
	senior note, 3.90%, 6/01/28		United States		1,000,000		1,101,207


							9,920,432

	Diversified Financial Services 1.4%
	AON Corp., senior note, 2.80%, 5/15/30		United States		9,000,000		9,211,413
	Aon PLC 4.60%, 6/14/44		Ireland		4,000,000		4,772,575


							13,983,988

	Diversified Telecommunication Services 3.4%
	AT&T Inc., senior note, 3.80%, 2/15/27		United States		11,800,000		13,062,752
	Bell Canada Inc., senior bond, 4.30%, 7/29/49		Canada		7,000,000		7,874,490
	France Telecom SA, senior bond, 9.00%, 3/01/31		France		6,600,000		10,212,899
	Verizon Communications Inc., senior bond, 3.40%, 3/22/41		United States		3,000,000		3,049,886


							34,200,027

	Electric Utilities 8.4%
	Commonwealth Edison Co., first mortgage, Secured, 4.00%, 3/01/48		United States		3,500,000		3,923,297
	Duke Energy Corp., senior bond, 3.75%, 4/15/24		United States		4,000,000		4,316,189
	senior bond, 4.80%, 12/15/45		United States		2,865,000		3,302,992
	Duke Energy Progress LLC, senior bond, 2.50%, 8/15/50		United States		5,000,000		4,273,614
a	EDP Finance BV, senior note, 144A, 1.71%, 1/24/28		Netherlands		8,000,000		7,723,747
a	Electricite de France SA, senior note, 144A, 4.50%, 9/21/28		France		2,200,000		2,509,511
	Enel Finance International NV, ^asenior bond, 144A, 4.75%, 5/25/47		Italy		1,300,000		1,540,655
	^asenior note, 144A, 3.625%, 5/25/27		Italy		13,500,000		14,623,500



franklintempleton.com	Annual Report	37

FRANKLIN TEMPLETON ETF TRUST

STATEMENT OF INVESTMENTS

Franklin Liberty Investment Grade Corporate ETF (continued)



		Country		Principal Amount*		Value
	Corporate Bonds & Notes (continued)
	Electric Utilities (continued)
	Exelon Corp., senior bond, 4.05%, 4/15/30		United States		10,000,000	$	11,151,108
	Georgia Power Co., senior bond, 4.30%, 3/15/42		United States		3,545,000		3,955,000
	senior bond, 4.75%, 9/01/40		United States		5,150,000		6,008,694
	PSEG Power LLC, senior note, 3.85%, 6/01/23		United States		4,100,000		4,373,662
	Public Service Electric and Gas Co., First Mortgage, 3.15%, 1/01/50		United States		2,250,000		2,252,871
a	Saudi Electricity Global Sukuk Co. 2, senior bond, 144A, 5.06%, 4/08/43		Saudi Arabia		300,000		344,437
	Virginia Electric and Power Co., senior note, 3.50%, 3/15/27		United States		7,200,000		7,903,303
a	Vistra Operations Co. LLC, senior secured note, first lien, 144A, 3.55%, 7/15/24		United States		7,400,000		7,748,451


							85,951,031

	Electronic Equipment, Instruments & Components 1.7%
	Flex Ltd., senior note, 3.75%, 2/01/26		Singapore		5,300,000		5,691,835
	FLIR Systems Inc., senior note, 2.50%, 8/01/30		United States		6,500,000		6,371,580
	Jabil Inc., senior note, 3.60%, 1/15/30		United States		5,000,000		5,244,014


							17,307,429

	Energy Equipment & Services 1.8%
	Baker Hughes a GE Co. LLC/Baker Hughes Co-Obligor Inc., senior bond, 4.08%, 12/15/47		United States		2,485,000		2,653,319
	Schlumberger Holdings Corp., ^asenior bond, 144A, 4.30%, 5/01/29		United States		6,500,000		7,231,518
	^asenior note, 144A, 3.75%, 5/01/24		United States		2,600,000		2,806,066
	Total Capital International SA, senior note, 3.455%, 2/19/29		France		5,000,000		5,436,580


							18,127,483

	Entertainment 0.6%
	The Walt Disney Co., senior bond, 6.20%, 12/15/34		United States		4,300,000		5,965,632

	Equity Real Estate Investment Trusts (REITs) 2.2%
	Essex Portfolio LP, senior bond, 2.65%, 3/15/32		United States		8,800,000		8,670,789
a	Global Net Lease Inc / Global Net Lease Operating Partnership LP, senior note, 144A, 3.75%, 12/15/27		United States		3,400,000		3,317,943
	Simon Property Group LP, senior note, 3.375%, 12/01/27		United States		10,000,000		10,764,170


							22,752,902

	Food & Staples Retailing 1.0%
	Walmart Inc., senior bond, 3.95%, 6/28/38		United States		9,000,000		10,416,804

	Gas Utilities 0.5%
	Eastern Energy Gas Holdings LLC, senior bond, 3.90%, 11/15/49		United States		5,000,000		5,146,893

	Health Care Providers & Services 3.2%
	Anthem Inc., senior bond, 3.70%, 9/15/49		United States		1,000,000		1,040,687
	Cigna Corp., senior bond, 4.90%, 12/15/48		United States		5,450,000		6,691,723
	Cigna Holding Co. 3.05%, 10/15/27		United States		1,100,000		1,174,005
	CVS Health Corp., senior bond, 5.30%, 12/05/43		United States		9,000,000		11,186,119
	HCA Inc., senior secured bond, first lien, 4.50%, 2/15/27		United States		6,156,000		6,909,717
	STERIS Irish FinCo UnLtd Co. 3.75%, 3/15/51		Ireland		5,000,000		5,045,715


							32,047,966

	Hotels, Restaurants & Leisure 1.2%
	Las Vegas Sands Corp. 3.90%, 8/08/29		United States		6,000,000		6,172,018
	Marriott International Inc., senior bond, 3.125%, 6/15/26		United States		6,000,000		6,300,204


							12,472,222

	Household Durables 0.7%
	Mohawk Industries Inc., senior bond, 3.625%, 5/15/30		United States		7,000,000		7,521,862



38	Annual Report	franklintempleton.com

FRANKLIN TEMPLETON ETF TRUST

STATEMENT OF INVESTMENTS

Franklin Liberty Investment Grade Corporate ETF (continued)



		Country		Principal Amount*		Value
	Corporate Bonds & Notes (continued)
	Household Products 2.6%
	DR Horton Inc. 1.40%, 10/15/27		United States		3,500,000	$	3,408,280
a	Kimberly-Clark de Mexico SAB de CV, senior bond, 144A, 2.431%, 7/01/31		Mexico		10,375,000		10,141,096
	PulteGroup Inc. 5.00%, 1/15/27		United States		1,500,000		1,727,812
	The Procter & Gamble Co., senior bond, 3.00%, 3/25/30		United States		10,000,000		10,772,266


							26,049,454

	Insurance 4.2%
	Aflac Inc., senior bond, 4.75%, 1/15/49		United States		6,000,000		7,448,758
	Arch Capital Group Ltd., senior bond, 3.635%, 6/30/50		Bermuda		5,900,000		5,926,992
	AXA SA 8.60%, 12/15/30		France		6,100,000		9,330,105
	Marsh & McLennan Cos. Inc., senior bond, 4.90%, 3/15/49		United States		7,000,000		8,958,500
	MetLife Inc., junior sub. bond, 6.40%, 12/15/66		United States		4,910,000		6,175,311
	The Allstate Corp., senior bond, 4.20%, 12/15/46		United States		4,000,000		4,621,875


							42,461,541

	Interactive Media & Services 1.3%
a	Tencent Holdings Ltd., senior note, 144A, 3.595%, 1/19/28		China		12,000,000		12,877,550

	Internet & Direct Marketing Retail 1.8%
	Alibaba Group Holding Ltd., senior note, 2.125%, 2/09/31		China		3,600,000		3,437,206
	senior note, 3.40%, 12/06/27		China		8,650,000		9,285,228
	Amazon.com Inc., senior bond, 2.70%, 6/03/60		United States		6,400,000		5,689,711


							18,412,145

	IT Services 1.1%
	Fiserv Inc., senior bond, 3.50%, 7/01/29		United States		4,800,000		5,184,527
	senior bond, 4.40%, 7/01/49		United States		5,000,000		5,784,285


							10,968,812

	Machinery 1.1%
	Caterpillar Inc., senior note, 2.60%, 4/09/30		United States		7,400,000		7,583,405
	John Deere Capital Corp., senior note, 1.20%, 4/06/23		United States		4,000,000		4,065,419


							11,648,824

	Media 2.0%
	Charter Communications Operating LLC/Charter Communications Operating Capital, senior bond, 2.80%, 4/01/31		United States		7,150,000		7,062,355
	Comcast Corp., senior bond, 4.95%, 10/15/58		United States		7,000,000		9,176,259
	Fox Corp., senior bond, 5.476%, 1/25/39		United States		3,000,000		3,746,781


							19,985,395

	Metals & Mining 0.5%
a	Antofagasta PLC, senior note, 144A, 2.375%, 10/14/30		United Kingdom		5,000,000		4,897,725

	Multi-Utilities 1.0%
	Berkshire Hathaway Energy Co., senior bond, 3.80%, 7/15/48		United States		7,600,000		8,100,998
	Sr. Unsecured, 5.15%, 11/15/43		United States		1,900,000		2,363,543


							10,464,541

	Multiline Retail 1.2%
	Dollar Tree Inc., senior note, 3.70%, 5/15/23		United States		5,050,000		5,363,183
	senior note, 4.00%, 5/15/25		United States		6,100,000		6,737,529


							12,100,712



franklintempleton.com	Annual Report	39

FRANKLIN TEMPLETON ETF TRUST

STATEMENT OF INVESTMENTS

Franklin Liberty Investment Grade Corporate ETF (continued)



	Country		Principal Amount*		Value
Corporate Bonds & Notes (continued)
Oil, Gas & Consumable Fuels 9.7%
Aker BP ASA, ^asenior bond, 144A, 4.00%, 1/15/31		Norway		3,350,000	$	3,499,067
^asenior note, 144A, 3.75%, 1/15/30		Norway		5,000,000		5,168,682
Canadian Natural Resources Ltd., senior bond, 3.85%, 6/01/27		Canada		7,700,000		8,342,920
Cheniere Corpus Christi Holdings LLC, senior secured note, first lien, 5.875%, 3/31/25		United States		6,700,000		7,641,165
Chevron Corp., senior bond, 3.078%, 5/11/50		United States		4,200,000		4,026,357
Devon Energy Corp., Sr. Unsecured, 4.75%, 5/15/42		United States		2,700,000		2,872,096
Energy Transfer Operating LP, senior bond, 6.05%, 6/01/41		United States		1,100,000		1,259,305
senior note, 4.50%, 4/15/24		United States		6,000,000		6,549,724
Exxon Mobil Corp., senior bond, 2.61%, 10/15/30		United States		7,800,000		7,958,358
senior bond, 3.567%, 3/06/45		United States		5,000,000		5,132,844
MPLX LP, senior bond, 5.50%, 2/15/49		United States		1,775,000		2,088,465
senior note, 4.875%, 12/01/24		United States		5,000,000		5,613,817
senior note, 4.875%, 6/01/25		United States		8,000,000		9,018,877
Shell International Finance BV, senior bond, 3.25%, 4/06/50		Netherlands		7,000,000		6,870,829
TransCanada PipeLines Ltd., senior bond, 4.25%, 5/15/28		Canada		8,200,000		9,225,500
senior note, 6.10%, 6/01/40		Canada		3,400,000		4,416,840
Valero Energy Corp., senior note, 4.35%, 6/01/28		United States		8,000,000		8,834,712


						98,519,558

Paper & Forest Products 0.5%
Suzano Austria GmbH, senior bond, 3.75%, 1/15/31		Austria		5,000,000		5,152,925

Pharmaceuticals 2.9%
AmerisourceBergen Corp., senior note, 0.737%, 3/15/23		United States		5,000,000		5,004,990
Bristol-Myers Squibb Co., senior bond, 4.125%, 6/15/39		United States		3,450,000		4,023,209
senior bond, 5.00%, 8/15/45		United States		3,186,000		4,102,752
senior note, 2.90%, 7/26/24		United States		2,649,000		2,832,097
Royalty Pharma PLC, senior secured note, 1.75%, 9/02/27		United Kingdom		4,200,000		4,082,262
Takeda Pharmaceutical Co. Ltd. 3.175%, 7/09/50		Japan		10,200,000		9,769,340


						29,814,650

Real Estate Management & Development 0.6%
ERP Operating LP, senior bond, 4.50%, 7/01/44		United States		3,500,000		4,134,693
Healthcare Trust of America Holdings LP, senior bond, 3.75%, 7/01/27		United States		2,050,000		2,271,905


						6,406,598

Road & Rail 0.8%
Burlington Northern Santa Fe LLC, Sr. Unsecured, 5.75%, 5/01/40		United States		4,800,000		6,441,269
CSX Corp., senior bond, 4.25%, 11/01/66		United States		1,800,000		2,051,696


						8,492,965

Semiconductors & Semiconductor Equipment 0.5%
Maxim Integrated Products Inc., senior note, 3.375%, 3/15/23		United States		2,900,000		3,038,089
Micron Technology Inc., senior note, 2.497%, 4/24/23		United States		2,100,000		2,181,407


						5,219,496

Software 1.5%
Microsoft Corp., senior bond, 2.675%, 6/01/60		United States		3,600,000		3,312,405
senior note, 2.65%, 11/03/22		United States		2,500,000		2,589,179
ServiceNow Inc., senior bond, 1.40%, 9/01/30		United States		10,300,000		9,322,112


						15,223,696



40	Annual Report	franklintempleton.com

FRANKLIN TEMPLETON ETF TRUST

STATEMENT OF INVESTMENTS

Franklin Liberty Investment Grade Corporate ETF (continued)



		Country		Principal Amount*		Value
	Corporate Bonds & Notes (continued)
	Specialty Retail 1.0%
	AutoZone Inc.,
	senior bond, 1.65%, 1/15/31		United States		7,000,000	$	6,419,506
	senior note, 3.75%, 4/18/29		United States		3,300,000		3,581,280


							10,000,786

	Tobacco 2.8%
a	BAT International Finance PLC, senior note, 144A, 3.95%, 6/15/25		United Kingdom		6,500,000		7,118,593
	Imperial Brands Finance PLC,
	^asenior bond, 144A, 3.875%, 7/26/29		United Kingdom		3,400,000		3,627,836
	^a senior note, 144A, 4.25%, 7/21/25		United Kingdom		11,765,000		12,940,655
	Reynolds American Inc., senior bond, 5.85%, 8/15/45		United Kingdom		3,705,000		4,376,161


							28,063,245

	Wireless Telecommunication Services 1.8%
a	Sprint Spectrum Co. LLC, senior secured bond, first lien, 144A, 5.152%, 9/20/29		United States		5,500,000		6,283,750
a	Sprint Spectrum Co. LLC/Sprint Spectrum Co. II LLC/Sprint Spectrum Co. III LLC, first lien, 144A, 3.36%, 3/20/23		United States		975,000		983,838
	T-Mobile USA Inc.,
	^asenior note, 144A, 2.05%, 2/15/28		United States		3,550,000		3,485,284
	^asenior note, 144A, 3.75%, 4/15/27		United States		7,000,000		7,659,120


							18,411,992

	Total Corporate Bonds & Notes (Cost $987,282,302)						986,533,267

	U.S. Government & Agency Securities 0.4%
	U.S. Treasury Bond 1.125%, 8/15/40		United States		5,500,000		4,474,336

	Total Investments (Cost $992,530,075) 97.3%						991,007,603
	Other Assets, less Liabilities 2.7%						27,631,553

	Net Assets 100.0%					$	1,018,639,156

See Abbreviations on page 79.

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

^aSecurity was purchased pursuant to Rule 144A under the Securities Act of 1933 and may be sold in transactions exempt from registration only to qualified institutional buyers or in a public offering registered under the Securities Act of 1933. At March 31, 2021, the aggregate value of these securities was $197,038,856, representing 19.3% of net assets.

At March 31, 2021, 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		97	$	14,995,594		6/21/21	$	(527,570	)
CME Ultra Long Term U.S. Treasury Bond		Short		14		2,537,063		6/21/21		106,075
Ultra 10 Yr. U.S. Treasury Note		Short		64		9,196,000		6/21/21		314,191
U.S. Treasury 5 Yr. Note		Short		102		12,586,641		6/30/21		146,485
U.S. Treasury 10 Yr. Note		Short		124		16,236,250		6/21/21		395,080

Total Futures Contracts									$	434,261

*As of period end.



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

FRANKLIN TEMPLETON ETF TRUST

Financial Highlights

Franklin Liberty Ultra Short Bond ETF



	Year Ended March 31 2021^a

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

Net asset value, beginning of year	$	25.00


Income from investment operations^b:

Net investment income^c		0.10

Net realized and unrealized gains (losses)		0.13


Total from investment operations		0.23


Less distributions from:

Net investment income		(0.33	)

Net realized gains		(0.02	)


Total Distributions		(0.35	)


Net asset value, end of year	$	24.88


Total return^d		0.91%

Ratios to average net assets^e

Expenses before waiver and payments by affiliates		4.17%

Expenses net of waiver and payments by affiliates		0.15%

Net investment income		0.58%

Supplemental data

Net assets, end of year (000’s)		$2,488

Portfolio turnover rate^f		10.49%	^g

^aFor the period July 14, 2020 (commencement of operations) to March 31, 2021.

^cBased on average daily shares outstanding.

^eRatios are annualized for periods less than one year.

^fPortfolio turnover rate includes portfolio transactions that are executed as a result of the Fund offering and redeeming Creation Units solely for cash (“Cash creations”).


^gPortfolio turnover rate excluding cash creations was as follows:			10.49%



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

FRANKLIN TEMPLETON ETF TRUST

Statement of Investments, March 31, 2021

Franklin Liberty Ultra Short Bond ETF



		Country		Principal Amount*		Value
	Corporate Bonds & Notes 92.1%
	Aerospace & Defense 6.1%
	Textron Inc., senior note, 5.95%, 9/21/21		United States		50,000	$	50,546
	The Boeing Co., senior note, 1.167%, 2/04/23		United States		100,000		101,353

							151,899

	Automobiles 2.1%
a	Hyundai Capital America, Senior note, 144A, 2.375%, 2/10/23		United States		50,000		51,358

	Banks 20.3%
	Bank of America Corp., senior note, FRN thereafter, 1.218%, 4/24/23		United States		50,000		50,432
	Bank of Montreal, senior note, FRN thereafter, 0.69%, 3/10/23		Canada		50,000		50,447
	Canadian Imperial Bank of Commerce, senior note, FRN thereafter, 0.81%, 3/17/23		Canada		50,000		50,441
	Citigroup Inc., senior note, FRN thereafter, 1.621%, 9/01/23		United States		100,000		101,615
	JPMorgan Chase & Co., senior note, FRN thereafter, 1.118%, 4/25/23		United States		100,000		100,782
	M&T Bank Corp., senior note, FRN thereafter, 0.895%, 7/26/23		United States		50,000		50,519
	Sumitomo Mitsui Financial Group Inc., senior note, FRN thereafter, 0.963%, 1/17/23		Japan		50,000		50,362
	Wells Fargo & Co., senior note, FRN thereafter, 1.328%, 1/24/23		United States		50,000		50,386

							504,984

	Biotechnology 4.1%
	Abbvie Inc. 0.832%, 11/21/22		United States		50,000		50,324
	Gilead Sciences Inc., senior note, 4.40%, 12/01/21		United States		50,000		50,814

							101,138

	Capital Markets 8.1%
	Deutsche Bank AG, senior note, 3.375%, 5/12/21		Germany		50,000		50,140
	Goldman Sachs Group Inc., senior note, FRN thereafter, 0.925%, 2/23/23		United States		50,000		50,357
	Morgan Stanley, Sr Unsecured, GMTN, FRN thereafter, 0.725%, 1/20/23		United States		50,000		50,159
	The Bank of New York Mellon Corp., senior note, 2.05%, 5/03/21		United States		50,000		50,000

							200,656

	Chemicals 4.2%
	DuPont de Nemours Inc., senior note, FRN thereafter, 1.304%, 11/15/23		United States		50,000		51,022
	LYB International Finance BV, senior note, 4.00%, 7/15/23		United States		50,000		53,793

							104,815

	Consumer Finance 4.1%
	American Express Credit Corp., senior note, 2.25%, 5/05/21		United States		50,000		50,000
	Capital One Financial Corp., senior note, 2.60%, 5/11/23		United States		50,000		52,025

							102,025

	Energy Equipment & Services 2.1%
a	Schlumberger Finance Canada Ltd., senior note, 144A, 2.65%, 11/20/22		Canada		50,000		51,684

	Food Products 2.1%
	BAT Capital Corp., senior note, 2.764%, 8/15/22		United States		50,000		51,446

	Health Care Providers & Services 6.2%
	Cigna Corp., Sr Unsecured, FRN thereafter, 1.131%, 7/15/23		United States		50,000		50,625
	CVS Health Corp., senior note, 3.70%, 3/09/23		United States		50,000		53,078
	UnitedHealth Group Inc., senior note, 3.15%, 6/15/21		United States		50,000		50,285

							153,988

	Household Products 2.0%
	The Procter & Gamble Co., senior note, 1.70%, 11/03/21		United States		50,000		50,454

	Industrial Conglomerates 2.0%
	General Electric Co., FRN thereafter, 1.184%, 3/15/23		United States		50,000		50,554

	Insurance 2.1%
a	Liberty Mutual Group Inc., senior note, 144A, 4.95%, 5/01/22		United States		50,000		52,328



franklintempleton.com	Annual Report	43

FRANKLIN TEMPLETON ETF TRUST

STATEMENT OF INVESTMENTS

Franklin Liberty Ultra Short Bond ETF (continued)



		Country		Principal Amount*		Value
	Corporate Bonds & Notes (continued)
	Internet & Direct Marketing Retail 2.0%
	eBay Inc., senior note, 1.082%, 1/30/23		United States		50,000	$	50,549

	Metals & Mining 2.1%
a	Glencore Finance Canada Ltd., senior bond, 144A, 4.95%, 11/15/21		Canada		50,000		51,407

	Oil, Gas & Consumable Fuels 6.2%
a	Kinder Morgan Inc., 144A, 5.625%, 11/15/23		United States		50,000		55,581
	MPLX LP, senior note, FRN thereafter, 1.285%, 9/09/22		United States		50,000		50,026
	Valero Energy Corp., FRN thereafter, 1.334%, 9/15/23		United States		50,000		50,174

							155,781

	Pharmaceuticals 12.2%
	AmerisourceBergen Corp., senior note, 0.737%, 3/15/23		United States		100,000		100,100
	AstraZeneca PLC, senior note, 0.857%, 8/17/23		United Kingdom		50,000		50,468
	Becton Dickinson and Co., senior note, 2.894%, 6/06/22		United States		50,000		51,304
a	Bristol-Myers Squibb Co., senior note, 144A, 2.60%, 5/16/22		United States		50,000		51,292
	GlaxoSmithKline Capital PLC, senior note, 0.534%, 10/01/23		United Kingdom		50,000		50,079

							303,243

	Road & Rail 2.1%
a	Penske Truck Leasing Co. LP/PTL Finance Corp., senior note, 144A, 2.70%, 3/14/23		United States		50,000		51,880

	Software 2.0%
	Oracle Corp., senior note, 2.50%, 5/15/22		United States		50,000		50,986

	Total Corporate Bonds & Notes (Cost $2,282,993)						2,291,175

	Asset-Backed Securities 8.1%
	Citibank Credit Card Issuance Trust, Series 2017-A5, Class A5, FRN thereafter, 0.731%, 4/22/26		United States		100,000		101,265
	Discover Card Execution Note Trust, Series 2017-A5, Class A5, FRN thereafter, 0.706%, 12/15/26		United States		100,000		101,208

	Total Asset-Backed Securities (Cost $200,922)						202,473

	Total Investments before Short Term Investments (Cost $2,483,915)						2,493,648

	Short Term Investments 0.9%
	Money Market Funds 0.9%
b,c	Institutional Fiduciary Trust Portfolio 0.01%		United States		22,444		22,444

	Total Short Term Investments (Cost $22,444)						22,444

	Total Investments (Cost $2,506,359) 101.1%						2,516,092
	Other Assets, less Liabilities (1.1)%						(28,451	)

	Net Assets 100.0%					$	2,487,641

See Abbreviations on page 79.

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

^aSecurity was purchased pursuant to Rule 144A under the Securities Act of 1933 and may be sold in transactions exempt from registration only to qualified institutional buyers or in a public offering registered under the Securities Act of 1933. At March 31, 2021, the aggregate value of these securities was $365,530, representing 14.7% of net assets.

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

^cThe rate shown is the annualized seven-day effective yield at period end.



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

FRANKLIN TEMPLETON ETF TRUST

Financial Highlights

Franklin Liberty U.S. Core Bond ETF


	Year Ended March 31

	2021			2020^a

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

Net asset value, beginning of year	$	25.44		$	25.00


Income from investment operations^b:

Net investment income^c		0.51			0.29

Net realized and unrealized gains (losses)		0.03			0.49


Total from investment operations		0.54			0.78


Less distributions from:

Net investment income		(0.65	)		(0.31	)

Net realized gains		(0.19	)		(0.03	)


Total Distributions		(0.84	)		(0.34	)


Net asset value, end of year	$	25.14		$	25.44


Total return^d		2.07%			3.12%

Ratios to average net assets^e

Expenses before waiver and payments by affiliates		0.17%			0.19%

Expenses net of waiver and payments by affiliates		0.15%			0.15%

Net investment income		1.95%			2.14%

Supplemental data

Net assets, end of year (000’s)		$1,460,597			$853,532

Portfolio turnover rate^f		90.99%	^g		126.68%	^g

^aFor the period September 17, 2019 (commencement of operations) to March 31, 2020.

^cBased on average daily shares outstanding.

^eRatios are annualized for periods less than one year.

^fPortfolio turnover rate includes portfolio transactions that are executed as a result of the Fund offering and redeeming Creation Units solely for cash (“Cash creations”).


^gPortfolio turnover rate excluding cash creations was as follows:			90.99%				126.68%



franklintempleton.com	The accompanying notes are an integral part of these financial statements. \| Annual Report	45

FRANKLIN TEMPLETON ETF TRUST

Statement of Investments, March 31, 2021

Franklin Liberty U.S. Core Bond ETF



		Country		Principal Amount*		Value
	Corporate Bonds & Notes 28.5%
	Aerospace & Defense 0.3%
	Lockheed Martin Corp., senior bond, 4.09%, 9/15/52		United States		1,600,000	$	1,880,733
	Northrop Grumman Corp., senior bond, 5.25%, 5/01/50		United States		2,300,000		2,990,423


							4,871,156

	Air Freight & Logistics 0.4%
	FedEx Corp., senior bond, 4.05%, 2/15/48		United States		2,000,000		2,183,225
	United Parcel Service Inc., senior bond, 5.30%, 4/01/50		United States		2,800,000		3,803,420


							5,986,645

	Airlines 1.2%
	American Airlines 2016-3 Class A Pass Through Trust 3.25%, 10/15/28		United States		4,847,311		4,677,704
a	Delta Air Lines Inc./SkyMiles IP Ltd., first lien, 144A, 4.50%, 10/20/25		United States		7,700,000		8,223,833
	United Airlines 2019-2 Class A Pass Through Trust, Series A, 2.90%, 5/01/28		United States		2,453,209		2,360,253
	United Airlines 2020-1 Class A Pass Through Trust, Series 20-1, 5.875%, 10/15/27		United States		97,583		108,402
	United Airlines 2020-1 Class B Pass Through Trust 4.875%, 1/15/26		United States		2,400,000		2,519,403


							17,889,595

	Banks 2.0%
	Banco Santander SA, sub. note, 2.749%, 12/03/30		Spain		1,400,000		1,334,652
	Bancolombia SA, senior note, 3.00%, 1/29/25		Colombia		1,100,000		1,125,823
	Citigroup Inc., senior bond, 5.875%, 1/30/42		United States		1,100,000		1,496,991
	sub. bond, 4.45%, 9/29/27		United States		1,500,000		1,694,326
	subordinate, 4.125%, 7/25/28		United States		2,300,000		2,546,858
	HSBC Holdings PLC, senior note, 2.013% to 9/22/27, FRN thereafter, 9/22/28		United Kingdom		4,100,000		4,032,534
	senior note, 2.357% to 8/18/30, FRN thereafter, 8/18/31		United Kingdom		1,300,000		1,252,132
	Industrial & Commercial Bank of China Ltd., senior note, 3.538%, 11/08/27		China		1,200,000		1,320,240
	JPMorgan Chase & Co., senior bond, 2.522% to 4/22/30, FRN thereafter, 4/22/31		United States		2,000,000		1,997,394
	Merrill Lynch & Co. Inc., sub. bond, 7.75%, 5/14/38		United States		2,800,000		4,303,610
	Truist Bank, sub. Bond, 2.25%, 3/11/30		United States		4,300,000		4,200,790
	Wells Fargo & Co., senior bond, 2.879% to 10/30/29, FRN thereafter, 10/30/30		United States		3,700,000		3,814,303


							29,119,653

	Beverages 0.6%
	Anheuser-Busch InBev Worldwide Inc., senior bond, 3.50%, 6/01/30		Belgium		6,000,000		6,505,237
	senior bond, 5.55%, 1/23/49		Belgium		1,200,000		1,552,125


							8,057,362

	Biotechnology 0.1%
	AbbVie Inc., senior bond, 4.75%, 3/15/45		United States		1,400,000		1,676,777

	Building Products 0.3%
	Carrier Global Corp., senior note, 3.577%, 4/05/50		United States		3,000,000		2,951,253
	CRH America Finance Inc., senior note, 3.40%, 5/09/27		Ireland		1,850,000		2,005,861


							4,957,114

	Capital Markets 0.9%
	Morgan Stanley, senior note, 3.622% to 4/01/30, FRN thereafter, 4/01/31		United States		2,700,000		2,934,904
	sub. bond, 3.95%, 4/23/27		United States		3,600,000		3,986,912



46	Annual Report	franklintempleton.com

FRANKLIN TEMPLETON ETF TRUST

STATEMENT OF INVESTMENTS

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



		Country		Principal Amount*		Value
	Corporate Bonds & Notes (continued)
	Capital Markets (continued)
	The Goldman Sachs Group Inc., senior bond, 3.691% to 6/05/27, FRN thereafter, 6/05/28		United States		2,500,000	$	2,736,925
	senior bond, 3.814% to 4/23/28, FRN thereafter, 4/23/29		United States		3,600,000		3,946,699


							13,605,440

	Chemicals 0.9%
	EI du Pont de Nemours and Co., senior bond, 2.30%, 7/15/30		United States		6,000,000		6,016,834
	The Sherwin-Williams Co., senior bond, 2.30%, 5/15/30		United States		1,600,000		1,578,371
	senior note, 2.95%, 8/15/29		United States		4,900,000		5,112,135


							12,707,340

	Commercial Services & Supplies 0.3%
	Boardwalk Pipelines LP, senior note, 4.80%, 5/03/29		United States		3,950,000		4,372,252

	Consumer Finance 0.5%
	Capital One Financial Corp., senior note, 3.75%, 3/09/27		United States		4,850,000		5,328,283
	senior sub. note, 4.20%, 10/29/25		United States		2,000,000		2,215,940


							7,544,223

	Containers & Packaging 0.2%
	Bemis Co. Inc., senior note, 2.63%, 6/19/30		United States		1,000,000		998,631
	WRKCo Inc., Sr. Unsecured, 4.00%, 3/15/28		United States		1,100,000		1,220,087


							2,218,718

	Diversified Financial Services 0.5%
	AON Corp., senior note, 2.80%, 5/15/30		United States		7,200,000		7,369,130

	Diversified Telecommunication Services 0.5%
	France Telecom SA, senior bond, 9.00%, 3/01/31		France		4,300,000		6,653,859

	Education Services 0.5%
	Rockefeller University, Series 2020, 3.75%, 7/01/51		United States		7,000,000		7,766,311

	Electric Utilities 2.7%
	Baltimore Gas and Electric Co., senior bond, 3.50%, 8/15/46		United States		1,400,000		1,434,291
	Berkshire Hathaway Energy Co., 3.70%, 7/15/30		United States		4,800,000		5,327,025
	Duke Energy Corp., senior bond, 3.75%, 9/01/46		United States		6,400,000		6,451,921
a	EDP Finance BV, senior note, 144A, 1.71%, 1/24/28		Netherlands		3,500,000		3,379,139
	Enel Finance International NV, ^a senior bond, 144A, 3.50%, 4/06/28		Italy		2,700,000		2,891,281
	^a senior note, 144A, 3.625%, 5/25/27		Italy		3,500,000		3,791,278
	Exelon Corp., senior bond, 4.05%, 4/15/30		United States		3,000,000		3,345,332
	Georgia Power Co., senior bond, 4.75%, 9/01/40		United States		1,400,000		1,633,431
	MidAmerican Energy Co., secured bond, 3.65%, 8/01/48		United States		1,100,000		1,167,279
a	Perusahaan Perseroan Persero PT Perusahaan Listrik Negara, senior bond, 144A, 4.875%, 7/17/49		Indonesia		750,000		795,161
a	State Grid Overseas Investment 2016 Ltd., senior note, 144A, 3.50%, 5/04/27		China		3,300,000		3,596,047
	The Southern Co., senior bond, 3.70%, 4/30/30		United States		4,000,000		4,328,574
	Virginia Electric and Power Co., senior bond, 3.80%, 9/15/47		United States		1,100,000		1,199,351


							39,340,110

	Electronic Equipment, Instruments & Components 0.8%
	Flex Ltd., senior note, 4.875%, 5/12/30		Singapore		4,800,000		5,444,764
	FLIR Systems Inc., senior note, 2.50%, 8/01/30		United States		6,000,000		5,881,459


							11,326,223



franklintempleton.com	Annual Report	47

FRANKLIN TEMPLETON ETF TRUST

STATEMENT OF INVESTMENTS

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



		Country		Principal Amount*		Value
	Corporate Bonds & Notes (continued)
	Energy Equipment & Services 0.4%
a	Schlumberger Holdings Corp., senior note, 144A, 3.90%, 5/17/28		United States		1,950,000	$	2,123,857
	Total Capital International SA, senior note, 3.455%, 2/19/29		France		3,900,000		4,240,532


							6,364,389

	Equity Real Estate Investment Trusts (REITs) 0.5%
	Kimco Realty Corp., Sr. Unsecured, 4.25%, 4/01/45		United States		750,000		808,669
	Simon Property Group LP, senior note, 3.375%, 12/01/27		United States		6,000,000		6,458,502


							7,267,171

	Food & Staples Retailing 0.3%
	Walmart Inc., senior bond, 2.95%, 9/24/49		United States		5,100,000		5,031,108

	Food Products 0.6%
	BAT Capital Corp., senior bond, 4.54%, 8/15/47		United Kingdom		750,000		756,312
	Kraft Heinz Foods Co., senior bond, 3.00%, 6/01/26		United States		4,100,000		4,317,571
	Mondelez International Inc., senior bond, 2.625%, 9/04/50		United States		5,000,000		4,312,728


							9,386,611

	Health Care Providers & Services 1.5%
	Anthem Inc., senior bond, 5.10%, 1/15/44		United States		2,000,000		2,491,379
	CVS Health Corp., senior bond, 4.30%, 3/25/28		United States		2,877,000		3,268,999
	senior bond, 4.875%, 7/20/35		United States		1,400,000		1,650,792
	HCA Inc., senior secured bond, first lien, 4.50%, 2/15/27		United States		4,100,000		4,601,988
	senior secured bond, first lien, 5.50%, 6/15/47		United States		900,000		1,121,934
	Quest Diagnostics Inc., senior bond, 2.80%, 6/30/31		United States		6,800,000		6,920,695
	STERIS Irish FinCo UnLtd Co. 2.70%, 3/15/31		Ireland		1,700,000		1,688,717


							21,744,504

	Hotels, Restaurants & Leisure 0.7%
	Las Vegas Sands Corp. 3.90%, 8/08/29		United States		4,700,000		4,834,747
	Marriott International Inc., Series EE, 5.75%, 5/01/25		United States		4,700,000		5,396,143


							10,230,890

	Household Durables 0.5%
	Mohawk Industries Inc., senior bond, 3.625%, 5/15/30		United States		6,200,000		6,662,221

	Independent Power Producers & Energy Traders 0.4%
a	Colbun SA, senior note, 144A, 3.95%, 10/11/27		Chile		5,550,000		6,063,154

	Insurance 1.7%
	Arch Capital Group Ltd., senior bond, 3.635%, 6/30/50		United States		1,700,000		1,707,777
	AXA SA 8.60%, 12/15/30		France		3,600,000		5,506,291
a	Five Corners Funding Trust II, senior note, 144A, 2.85%, 5/15/30		United States		4,000,000		4,125,652
	Marsh & McLennan Cos. Inc., senior bond, 4.90%, 3/15/49		United States		3,000,000		3,839,357
	MetLife Inc., senior bond, 5.875%, 2/06/41		United States		1,100,000		1,517,514
	Prudential PLC, senior note, 3.125%, 4/14/30		United Kingdom		5,000,000		5,280,314
	Reinsurance Group of America Inc., Sr. Unsecured, 3.90%, 5/15/29		United States		2,250,000		2,468,766


							24,445,671

	Interactive Media & Services 0.4%
a	Tencent Holdings Ltd., Sr Unsecured, 144A, 3.28%, 4/11/24		China		5,200,000		5,544,650

	Internet & Direct Marketing Retail 0.6%
	Alibaba Group Holding Ltd., senior note, 2.125%, 2/09/31		China		2,800,000		2,673,383
	senior note, 3.40%, 12/06/27		China		5,200,000		5,581,871


							8,255,254



48	Annual Report	franklintempleton.com

FRANKLIN TEMPLETON ETF TRUST

STATEMENT OF INVESTMENTS

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



		Country		Principal Amount*		Value
	Corporate Bonds & Notes (continued)
	IT Services 0.5%
	Fiserv Inc., senior bond, 2.65%, 6/01/30		United States		4,700,000	$	4,739,090
	senior bond, 4.40%, 7/01/49		United States		2,400,000		2,776,457


							7,515,547

	Media 0.7%
	Charter Communications Operating LLC/Charter Communications Operating Capital, senior bond, 2.80%, 4/01/31		United States		5,000,000		4,938,709
	Comcast Corp., senior bond, 4.25%, 1/15/33		United States		2,000,000		2,312,510
	Fox Corp., senior bond, 5.576%, 1/25/49		United States		1,200,000		1,533,339
	NBCUniversal Media LLC, senior bond, 4.45%, 1/15/43		United States		1,100,000		1,302,958


							10,087,516

	Metals & Mining 0.2%
a	Corp. Nacional del Cobre de Chile, Sr. Unsecured, 144A, 4.50%, 8/01/47		Chile		2,360,000		2,666,861

	Multiline Retail 0.4%
	Dollar Tree Inc., senior bond, 4.20%, 5/15/28		United States		5,100,000		5,724,179

	Oil, Gas & Consumable Fuels 2.7%
	Canadian Natural Resources Ltd., senior bond, 3.85%, 6/01/27		Canada		3,000,000		3,250,488
	Cheniere Corpus Christi Holdings LLC, senior secured note, first lien, 5.875%, 3/31/25		United States		3,400,000		3,877,606
	Enable Midstream Partners LP, senior note, 3.90%, 5/15/24		United States		2,650,000		2,824,301
	Energy Transfer Operating LP, senior bond, 5.15%, 3/15/45		United States		850,000		879,884
	Enterprise Products Operating LLC, senior bond, 4.25%, 2/15/48		United States		1,150,000		1,225,450
	Equinor ASA, senior note, 2.375%, 5/22/30		Norway		3,000,000		2,996,337
	Exxon Mobil Corp., senior bond, 2.61%, 10/15/30		United States		5,000,000		5,101,512
	MPLX LP, senior bond, 4.70%, 4/15/48		United States		1,250,000		1,356,589
a	Pertamina Persero PT, senior bond, 144A, 4.70%, 7/30/49		Indonesia		1,000,000		1,042,225
	Sabine Pass Liquefaction LLC, senior secured bond, first lien, 4.20%, 3/15/28		United States		4,000,000		4,390,808
	Shell International Finance B.V., senior note, 6.375%, 12/15/38		Netherlands		3,000,000		4,306,585
a	Sinopec Group Overseas Development 2018 Ltd., 144A, 3.35%, 5/13/50		British Virgin Islands		1,700,000		1,636,700
	TC PipeLines LP, senior note, 3.90%, 5/25/27		United States		2,550,000		2,769,792
	The Williams Cos. Inc., senior bond, 3.50%, 11/15/30		United States		1,000,000		1,061,348
	senior bond, 5.10%, 9/15/45		United States		300,000		344,784
	Valero Energy Corp., senior bond, 4.00%, 4/01/29		United States		500,000		539,325
	senior note, 4.35%, 6/01/28		United States		1,500,000		1,656,509


							39,260,243

	Pharmaceuticals 1.4%
	AstraZeneca PLC, senior note, 1.375%, 8/06/30		United Kingdom		5,000,000		4,590,091
	Bristol-Myers Squibb Co., senior bond, 4.125%, 6/15/39		United States		3,200,000		3,731,672
	GlaxoSmithKline Capital Inc., senior bond, 6.375%, 5/15/38		United States		3,600,000		5,282,044
	Royalty Pharma PLC, senior secured note, 1.75%, 9/02/27		United Kingdom		1,300,000		1,263,557
	Takeda Pharmaceutical Co. Ltd., senior note, 2.05%, 3/31/30		Japan		2,600,000		2,507,888
	senior note, 5.00%, 11/26/28		Japan		2,700,000		3,199,397


							20,574,649

	Road & Rail 0.3%
	Burlington Northern Santa Fe LLC, senior bond, 4.15%, 4/01/45		United States		2,300,000		2,622,910
	senior bond, 4.90%, 4/01/44		United States		1,100,000		1,386,210



franklintempleton.com	Annual Report	49

FRANKLIN TEMPLETON ETF TRUST

STATEMENT OF INVESTMENTS

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



		Country		Principal Amount*		Value
	Corporate Bonds & Notes (continued)
	Road & Rail (continued)
	CSX Corp., senior bond, 4.25%, 11/01/66		United States		750,000	$	854,873


							4,863,993

	Software 0.1%
	ServiceNow Inc., senior bond, 1.40%, 9/01/30		United States		2,000,000		1,810,119

	Tobacco 1.1%
	Altria Group Inc., senior note, 3.40%, 5/06/30		United States		6,600,000		6,915,710
a	BAT International Finance PLC, senior note, 144A, 3.95%, 6/15/25		United Kingdom		2,600,000		2,847,437
a	Imperial Brands Finance PLC, senior note, 144A, 3.50%, 7/26/26		United Kingdom		6,000,000		6,420,305


							16,183,452

	Wireless Telecommunication Services 0.8%
	T-Mobile USA Inc., ^a senior bond, 144A, 3.30%, 2/15/51		United States		2,000,000		1,871,640
	^a senior note, 144A, 3.75%, 4/15/27		United States		5,000,000		5,470,800
	^a senior secured bond, 144A, 3.875%, 4/15/30		United States		1,000,000		1,086,610
	Vodafone Group PLC, senior bond, 6.15%, 2/27/37		United Kingdom		2,300,000		3,071,992


							11,501,042

	Total Corporate Bonds & Notes (Cost $416,802,817)						416,645,132

	U.S. Government & Agency Securities 38.5%
	U.S. Treasury Bond, 1.125%, 8/15/40		United States		213,000		173,279
	1.25%, 5/15/50		United States		1,977,000		1,492,558
	1.375%, 8/15/50		United States		2,784,000		2,173,260
	2.00%, 2/15/50		United States		11,100,000		10,154,982
	2.25%, 8/15/46		United States		25,354,000		24,616,159
	2.25%, 8/15/49		United States		2,350,000		2,273,304
	2.50%, 5/15/46		United States		8,298,000		8,459,746
	2.75%, 8/15/42		United States		3,712,000		3,983,512
	2.75%, 11/15/42		United States		5,924,000		6,351,176
	3.00%, 11/15/44		United States		11,365,000		12,675,083
	3.00%, 2/15/49		United States		4,315,000		4,849,403
	3.50%, 2/15/39		United States		23,270,000		27,910,365
	U.S. Treasury Note, 0.25%, 6/30/25		United States		24,509,000		24,017,863
	0.375%, 11/30/25		United States		91,791,000		89,801,000
	0.375%, 1/31/26		United States		12,237,000		11,934,899
	0.50%, 3/31/25		United States		51,900,000		51,580,693
	1.375%, 8/31/23		United States		64,750,000		66,562,241
	1.50%, 3/31/23		United States		30,273,000		31,083,630
	1.50%, 9/30/24		United States		9,050,000		9,363,745
	1.50%, 10/31/24		United States		5,750,000		5,947,993
	1.875%, 9/30/22		United States		59,500,000		61,061,875
	2.125%, 2/29/24		United States		100,665,000		105,900,760

	Total U.S. Government & Agency Securities (Cost $573,348,886)						562,367,526

	Municipal Bonds 3.1%
	Alabama 0.3%
	Southeast Alabama Gas Supply District, Libor Project 2, Series 2018B, Monthly, VRDN, 0.923%, 6/01/49				5,000,000		5,035,316

	California 1.2%
	California Health Facilities Financing Authority, State of California Personal Income Tax Revenue, 2.934%, 6/01/32				530,000		550,646
	State of California Personal Income Tax Revenue, 2.984%, 6/01/33				460,000		476,407
	State of California Personal Income Tax Revenue, 3.034%, 6/01/34				345,000		352,455



50	Annual Report	franklintempleton.com

FRANKLIN TEMPLETON ETF TRUST

STATEMENT OF INVESTMENTS

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



	Country		Principal Amount*		Value
Municipal Bonds (continued)
California (continued)
Contra Costa Community College District, Refunding, 2.926%, 8/01/38				4,000,000	$	4,057,296
Foothill-Eastern Transportation Corridor Agency, Refunding, Series 2019A, 4.094%, 1/15/49				275,000		286,731
Gilroy Unified School District, Refunding, 3.364%, 8/01/47				1,145,000		1,152,680
State of California, 4.00%, 3/01/46				2,500,000		2,925,982
Whittier City School District, Refunding, 3.306%, 8/01/43				7,500,000		7,690,386


						17,492,583

Florida 0.0%^†
County of Broward, Airport System Revenue, Refunding, Series 2019C, 3.477%, 10/01/43				560,000		576,404

Missouri 0.1%
Metropolitan St Louis Sewer District, Refunding, Series 2019C, 3.259%, 5/01/45				1,215,000		1,240,572

New York 0.3%
Metropolitan Transportation Authority, Climate Bond Certified, 4.00%, 11/15/45				1,095,000		1,222,632
Green Bond, Series 2019B, 5.00%, 11/15/52				2,655,000		3,131,641


						4,354,273

Ohio 0.1%
Greenville City School District, Refunding, 3.541%, 1/01/51				1,295,000		1,295,406

Pennsylvania 0.2%
Pennsylvania State University, Series 2020B, 2.888%, 9/01/50				3,500,000		3,415,245

Texas 0.9%
City of Austin, Electric Utility Revenue, Refunding, 6.262%, 11/15/32				1,000,000		1,240,511
Grand Parkway Transportation Corp., Subordinate Tier Toll, Refunding, 3.236%, 10/01/52				6,800,000		6,842,118
Texas Water Development Board, State Water Implementation Revenue Fund, Series 2019A, 4.00%, 10/15/44				3,750,000		4,429,108


						12,511,737

Total Municipals (Cost $45,657,662)						45,921,536

Mortgage-Backed Securities 22.3%
Fannie Mae 6.5%
Federal Home Loan Mortgage Corp., 2.00%, 10/01/35		United States		2,421,166		2,487,644
2.00%, 10/01/35		United States		2,437,093		2,506,266
2.00%, 11/01/35		United States		2,387,313		2,452,861
2.00%, 12/01/35		United States		849,158		872,473
2.50%, 10/01/50		United States		11,659,500		12,013,918
2.50%, 11/01/50		United States		1,806,575		1,866,726
2.50%, 2/01/51		United States		2,486,564		2,579,866
3.00%, 3/01/50		United States		24,005,698		25,259,023
3.00%, 3/01/50		United States		9,348,711		9,875,479
3.50%, 2/01/47		United States		2,805,218		2,997,373
3.50%, 2/01/47		United States		4,672,229		5,021,079
3.50%, 3/01/48		United States		3,031,730		3,240,126
4.00%, 6/01/48		United States		9,955,211		10,934,201
4.00%, 5/01/50		United States		11,377,972		12,426,061


						94,533,096



franklintempleton.com	Annual Report	51

FRANKLIN TEMPLETON ETF TRUST

STATEMENT OF INVESTMENTS

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



		Country		Principal Amount*		Value
	Mortgage-Backed Securities (continued)
	Freddie Mac 12.7%
	Federal National Mortgage Association, 2.00%, 9/01/35		United States		1,310,719	$	1,351,476
	2.00%, 10/01/35		United States		4,820,356		4,952,709
	2.00%, 2/01/36		United States		2,514,727		2,584,664
	2.00%, 4/01/36		United States		7,798,000		8,012,110
	2.00%, 10/01/50		United States		9,763,334		9,754,820
	2.00%, 12/01/50		United States		837,009		836,488
	2.00%, 2/01/51		United States		2,569,475		2,575,220
	2.50%, 10/01/35		United States		9,597,417		9,993,037
	2.50%, 3/01/36		United States		1,163,448		1,211,223
	2.50%, 9/01/50		United States		12,326,846		12,707,865
	2.50%, 9/01/50		United States		12,217,074		12,640,957
	2.50%, 10/01/50		United States		4,987,832		5,135,209
	2.50%, 11/01/50		United States		2,622,124		2,694,068
	3.00%, 1/01/31		United States		995,827		1,058,061
	3.00%, 11/01/34		United States		2,429,543		2,578,554
	3.00%, 7/01/50		United States		16,446,579		17,285,576
	3.00%, 9/01/50		United States		7,565,510		7,995,543
	3.50%, 11/01/48		United States		14,318,202		15,488,137
	3.50%, 8/01/49		United States		18,544,616		19,915,612
	3.50%, 4/01/51		United States		6,130,000		6,476,010
	4.00%, 9/01/48		United States		10,772,107		11,703,591
	4.50%, 7/01/47		United States		9,918,460		11,018,323
	4.50%, 5/01/48		United States		5,211,130		5,785,321
	4.50%, 12/01/48		United States		7,494,600		8,323,422
	4.50%, 2/01/50		United States		3,126,701		3,457,992


							185,535,988

	Ginnie Mae 3.1%
	Government National Mortgage Association, 2.00%, 10/20/50		United States		6,889,374		6,960,718
	2.50%, 10/20/50		United States		16,778,245		17,328,997
	3.00%, 10/20/50		United States		2,475,814		2,585,415
	3.00%, 11/20/50		United States		2,238,796		2,352,330
	3.50%, 8/20/50		United States		2,221,642		2,351,804
	3.50%, 12/20/50		United States		2,224,685		2,370,386
	3.50%, 2/20/51		United States		2,420,002		2,592,524
	4.00%, 9/20/50		United States		2,421,060		2,589,863
	4.00%, 12/20/50		United States		676,912		730,367
	4.50%, 12/20/50		United States		1,685,544		1,838,337
	4.50%, 1/20/51		United States		2,381,215		2,605,718
	4.50%, 2/20/51		United States		730,544		799,294


							45,105,753

	Total Mortgage-Backed Securities (Cost $326,740,282)						325,174,837

	Foreign Government and Agency Securities 4.5%
	Chile 0.1%
	Chile Government International Bond, Sr. Unsecured, 3.50%, 1/25/2050				1,100,000		1,122,770

	Colombia 0.4%
	Colombia Government International Bond, senior bond, 5.00%, 6/15/45				3,250,000		3,474,770
	senior bond, 5.625%, 2/26/44				2,000,000		2,276,820


							5,751,590

	India 0.1%
a	Export-Import Bank of India, senior note, 144A, 3.25%, 1/15/30				1,000,000		995,950



52	Annual Report	franklintempleton.com

FRANKLIN TEMPLETON ETF TRUST

STATEMENT OF INVESTMENTS

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



		Country		Principal Amount*		Value
	Foreign Government and Agency Securities (continued)
	Indonesia 0.5%
	Indonesia Government International Bond, ^a senior bond, 144A, 4.35%, 1/08/27				3,150,000	$	3,538,127
	^a senior note, 144A, 4.125%, 1/15/25				3,500,000		3,842,611


							7,380,738

	Kazakhstan 0.3%
a	Kazakhstan Government International Bond, senior note, 144A, 5.125%, 7/21/25				4,070,000		4,733,410

	Mexico 0.6%
	Mexico Government International Bond, senior bond, 3.60%, 1/30/25				2,700,000		2,948,157
	senior note, 4.15%, 3/28/27				4,500,000		4,998,083


							7,946,240

	Panama 0.4%
a	Panama Notas del Tesoro, senior note, 144A, 3.75%, 4/17/26				5,950,000		6,398,422

	Peru 0.4%
	Peruvian Government International Bond, senior bond, 2.783%, 1/23/31				5,850,000		5,870,241

	Philippines 0.3%
	Philippine Government International Bond, senior bond, 3.95%, 1/20/40				4,620,000		4,978,569

	Romania 0.2%
a	Romanian Government International Bond, senior bond, 144A, 5.125%, 6/15/48				2,270,000		2,575,508

	Russia 0.4%
a	Russian Foreign Bond - Eurobond, senior bond, 144A, 5.10%, 3/28/35				4,800,000		5,540,102

	Supranational 0.4%
a	African Export-Import Bank, senior bond, 144A, 3.994%, 9/21/29				6,100,000		6,409,642

	Uruguay 0.4%
	Uruguay Government International Bond, senior bond, 4.375%, 1/23/31				3,875,000		4,505,288
	senior bond, 4.50%, 8/14/24				1,400,000		1,519,035


							6,024,323

	Total Foreign Government and Agency Securities (Cost $65,852,411)						65,727,505

	Asset-Backed Securities 1.6%
	American Express Credit Account Master Trust, Series 2019-1, Class A, ABS, 2.87%, 10/15/24		United States		1,500,000		1,539,965
a	BX Commercial Mortgage Trust Series 2020-BXLP, Class A, 144A, FRN thereafter, 0.906%, 12/15/36		United States		3,083,749		3,088,829
	Capital One Multi-Asset Execution Trust, Series 2019-A1, Class A1, 2.84%, 12/15/24		United States		4,460,000		4,563,633
	Series 2019-A2, Class A2, 1.72%, 8/15/24		United States		5,510,000		5,621,684
	CF Hippolyta LLC, ^a Series 2020-1, Class A1, ABS, 144A, 1.69%, 7/15/60		United States		2,071,002		2,089,167
	^a Series 2021-1A, Class A1, ABS, 144A, 1.53%, 3/15/61		United States		1,198,000		1,195,261
	Citibank Credit Card Issuance Trust, Series 2017-A7 , Class A7, 0.474%, 8/08/23, FRN thereafter, 8/08/24		United States		2,000,000		2,010,712
	Discover Card Execution Note Trust, Series 2019-A3, Class A, 1.89%, 10/15/24		United States		3,220,000		3,298,569

	Total Asset-Backed Securities (Cost $23,155,965)						23,407,820

	Total Investments before Short Term Investments (Cost $1,451,558,023)						1,439,244,356



franklintempleton.com	Annual Report	53

FRANKLIN TEMPLETON ETF TRUST

STATEMENT OF INVESTMENTS

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



		Country		Principal Amount*		Value
	Short Term Investments 1.5%
	Money Market Funds 1.5%
b,c	Institutional Fiduciary Trust Portfolio, 0.01%		United States		21,162,095	$	21,162,095

	Total Short Term Investments (Cost $21,162,095)						21,162,095

	Total Investments (Cost $1,472,720,118) 100.0%						1,460,406,451
	Other Assets, less Liabilities 0.0%^†						190,464

	Net Assets 100.0%					$	1,460,596,915

See Abbreviations on Page 79.

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

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

^aSecurity was purchased pursuant to Rule 144A under the Securities Act of 1933 and may be sold in transactions exempt from registration only to qualified institutional buyers or in a public offering registered under the Securities Act of 1933. At March 31, 2021, the aggregate value of these securities was $103,983,659, representing 7.1% of net assets.

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

^cThe rate shown is the annualized seven-day effective yield at period end.

At March 31, 2021, 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 5 Yr. Note		Long		417	$	51,457,149		6/30/21	$	(557,481	)
Ultra 10 Yr. U.S. Treasury Note		Short		215		30,892,813		6/21/21		907,882

Total Futures Contracts									$	350,401

*As of period end.



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

FRANKLIN TEMPLETON ETF TRUST

Financial Highlights

Franklin Liberty U.S. Low Volatility ETF



	Year Ended March 31,

	2021			2020			2019			2018			2017^a

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

Net asset value, beginning of year	$	30.93		$	33.61		$	30.03		$	26.97		$	25.05


Income from investment operations^b:

Net investment income^c		0.67			0.64			0.52			0.45			0.23

Net realized and unrealized gains (losses)		12.73			(2.84	)		3.88			3.06			1.87


Total from investment operations		13.40			(2.20	)		4.40			3.51			2.10


Less distributions from:

Net investment income		(0.64	)		(0.48	)		(0.47	)		(0.45	)		(0.18	)

Net realized gains		—			—			(0.35	)		—			—


Total Distributions		(0.64	)		(0.48	)		(0.82	)		(0.45	)		(0.18	)


Net asset value, end of year	$	43.69		$	30.93		$	33.61		$	30.03		$	26.97


Total return^d		43.52%			(6.74)%			14.98%			13.08%			8.40%

Ratios to average net assets^e

Expenses net of waiver and payments by affiliates		0.37%			0.57%			1.12%			2.11%			2.96%

Expenses net of waiver and payments by affiliates		0.29%			0.33%			0.50%			0.50%			0.50%

Net investment income		1.71%			1.75%			1.64%			1.56%			1.69%

Supplemental data

Net assets, end of year (000’s)		$139,822			$74,223			$13,443			$6,005			$5,393

Portfolio turnover rate^f		40.54%	^g		32.61%	^g		46.90%			65.68%			12.55%

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

^cBased on average daily shares outstanding.

^eRatios are annualized for periods less than one year.

^fPortfolio turnover rate includes portfolio transactions that are executed as a result of the Fund offering and redeeming Creation Units solely for cash (“Cash creations”).

^gPortfolio turnover rate excluding cash creations was as follows:

40.54%

32.61%



franklintempleton.com	The accompanying notes are an integral part of these financial statements. \| Annual Report	55

FRANKLIN TEMPLETON ETF TRUST

Statement of Investments, March 31, 2021

Franklin Liberty U.S. Low Volatility ETF



		Shares		Value
	Common Stocks 99.6%
	Communication Services 10.2%
a	Alphabet Inc., A		882	$	1,819,143
	AT&T Inc.		60,529		1,832,213
a	Charter Communications Inc., A		2,855		1,761,592
	Comcast Corp., A		32,479		1,757,439
a	Liberty Broadband Corp., C		11,713		1,758,707
a	T-Mobile U.S. Inc.		14,501		1,816,830
	TELUS Corp.		86,360		1,721,155
	Verizon Communications Inc.		31,830		1,850,914

					14,317,993

	Consumer Discretionary 12.3%
a	Amazon.com Inc.		538		1,664,615
	Dollar General Corp.		8,863		1,795,821
	McDonald’s Corp.		7,478		1,676,119
	NIKE Inc., B		12,108		1,609,032
a	NVR Inc.		369		1,738,333
a	O’Reilly Automotive Inc.		3,409		1,729,215
	Target Corp.		8,872		1,757,277
	The Home Depot Inc.		5,752		1,755,798
	The TJX Cos. Inc.		25,944		1,716,196
	Tractor Supply Co.		9,622		1,703,864

					17,146,270

	Consumer Staples 5.8%
	McCormick & Co. Inc.		17,972		1,602,383
	PepsiCo Inc.		11,562		1,635,445
	The Coca-Cola Co.		30,618		1,613,875
	The Procter & Gamble Co.		12,148		1,645,204
	Walmart Inc.		11,806		1,603,609

					8,100,516

	Energy 2.6%
	Chevron Corp.		17,424		1,825,861
	Exxon Mobil Corp.		31,889		1,780,363

					3,606,224

	Financials 11.5%
	Aflac Inc.		30,676		1,569,997
	Arthur J Gallagher & Co.		12,917		1,611,654
	BlackRock Inc.		2,199		1,657,958
	Intercontinental Exchange Inc.		14,110		1,575,805
	JPMorgan Chase & Co.		10,560		1,607,549
	Nasdaq Inc.		10,767		1,587,702
	S&P Global Inc.		4,514		1,592,855
	The Progressive Corp.		17,254		1,649,655
	The Travelers Cos. Inc.		10,510		1,580,704
	US Bancorp		29,455		1,629,156

					16,063,035

	Health Care 12.9%
	Abbott Laboratories		14,750		1,767,640
	AbbVie Inc.		17,155		1,856,514
	Becton Dickinson and Co.		7,416		1,803,200
	Bristol-Myers Squibb Co.		28,296		1,786,327
	Danaher Corp.		8,023		1,805,817
	Johnson & Johnson		11,084		1,821,655
	Medtronic PLC		15,208		1,796,521
	Merck & Co. Inc.		22,885		1,764,205
	Pfizer Inc.		49,934		1,809,109
	Quest Diagnostics Inc.		14,160		1,817,294

					18,028,282



56	Annual Report	franklintempleton.com

FRANKLIN TEMPLETON ETF TRUST

STATEMENT OF INVESTMENTS

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



		Shares		Value
	Common Stocks (continued)
	Industrials 8.5%
	BWX Technologies Inc.		17,671	$	1,165,226
	Honeywell International Inc.		5,590		1,213,421
	IDEX Corp.		5,750		1,203,590
	Illinois Tool Works Inc.		5,235		1,159,657
	Lockheed Martin Corp.		3,225		1,191,637
	Republic Services Inc.		11,936		1,185,842
	Roper Technologies Inc.		2,899		1,169,283
	Union Pacific Corp.		5,602		1,234,737
	United Parcel Service Inc., B		7,194		1,222,908
	Verisk Analytics Inc.		6,668		1,178,169

					11,924,470

	Information Technology 27.4%
	Accenture PLC, A		7,553		2,086,516
	Amphenol Corp., A		31,837		2,100,287
	Analog Devices Inc.		13,110		2,033,099
a	ANSYS Inc.		6,145		2,086,596
	Apple Inc.		16,603		2,028,056
	Automatic Data Processing Inc.		10,824		2,039,999
a	Black Knight Inc.		27,116		2,006,313
	Booz Allen Hamilton Holding Corp.		14,371		1,157,297
	Cisco Systems Inc.		40,677		2,103,408
	International Business Machines Corp.		15,454		2,059,400
	Intuit Inc.		5,221		1,999,956
	Jack Henry & Associates Inc.		13,450		2,040,634
a	Keysight Technologies Inc.		14,785		2,120,169
	Mastercard Inc., A		5,586		1,988,895
	Microsoft Corp.		8,649		2,039,175
	Oracle Corp.		30,066		2,109,731
a	Synopsys Inc.		8,740		2,165,597
	Texas Instruments Inc.		11,316		2,138,611
	Visa Inc., A		9,627		2,038,325

					38,342,064

	Materials 2.8%
	Air Products and Chemicals Inc.		4,608		1,296,415
	Ecolab Inc.		6,110		1,307,968
	Linde PLC		4,704		1,317,778

					3,922,161

	Real Estate 3.1%
	Crown Castle International Corp.		8,235		1,417,490
	Equinix Inc.		2,085		1,416,945
	Public Storage		5,843		1,441,819

					4,276,254

	Utilities 2.5%
	American Electric Power Co. Inc.		8,152		690,474
	Consolidated Edison Inc.		9,435		705,738
	Dominion Energy Inc.		9,300		706,428
	Duke Energy Corp.		7,352		709,689
	NextEra Energy Inc.		9,629		728,049

					3,540,378

	Total Investments (Cost $119,696,037) 99.6%				139,267,647
	Other Assets, less Liabilities 0.4%				553,971

	Net Assets 100.0%			$	139,821,618

^aNon-income producing.



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

FRANKLIN TEMPLETON ETF TRUST

Financial Highlights

Franklin Liberty U.S. Treasury Bond ETF



	Year Ended March 31, 2021^a

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

Net asset value, beginning of year	$	25.00


Income from investment operations^b:

Net investment income^c		0.11

Net realized and unrealized gains (losses)		(0.94	)


Total from investment operations		(0.83	)


Less distributions from net investment income		(0.34	)


Net asset value, end of year	$	23.83


Total return^d		(3.36)%

Ratios to average net assets^e

Expenses before waiver and payments by affiliates		0.50%

Expenses net of waiver and payments by affiliates		0.09%

Net investment income		0.54%

Supplemental data

Net assets, end of year (000’s)		$418,199

Portfolio turnover rate^f		102.09%	^g

^aFor the period June 9, 2020 (commencement of operations) to March 31, 2021.

^cBased on average daily shares outstanding.

^eRatios are annualized for periods less than one year.

^fPortfolio turnover rate includes portfolio transactions that are executed as a result of the Fund offering and redeeming Creation Units solely for cash (“Cash creations”).



^gPortfolio turnover rate excluding cash creations was as follows:			102.09%



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

FRANKLIN TEMPLETON ETF TRUST

Statement of Investments, March 31, 2021

Franklin Liberty U.S. Treasury Bond ETF



		Country		Principal Amount*		Value
	U.S. Government & Agency Securities 93.2%
	U.S. Treasury Bond, 1.125%, 8/15/40		United States		11,320,000	$	9,208,997
	2.25%, 8/15/46		United States		9,330,000		9,058,482
	2.25%, 8/15/49		United States		8,550,000		8,270,956
	2.50%, 2/15/45		United States		8,932,000		9,122,154
	2.75%, 11/15/47		United States		8,790,000		9,401,695
	2.875%, 5/15/49		United States		4,980,000		5,470,705
	3.00%, 5/15/47		United States		1,800,000		2,015,508
	3.375%, 11/15/48		United States		8,760,000		10,524,490
	4.375%, 2/15/38		United States		3,650,000		4,830,190
	4.50%, 2/15/36		United States		6,910,000		9,144,413
	4.50%, 5/15/38		United States		6,080,000		8,163,944
	U.S. Treasury Note, 0.125%, 5/31/22		United States		49,500,000		49,519,336
	0.50%, 6/30/27		United States		27,050,000		25,820,599
	1.125%, 2/29/28		United States		6,000,000		5,895,937
	1.25%, 8/31/24		United States		12,670,000		13,001,845
	1.50%, 9/30/24		United States		12,610,000		13,047,163
	1.50%, 11/30/24		United States		13,959,000		14,436,387
	1.625%, 8/15/29		United States		7,522,000		7,550,648
	1.75%, 7/31/24		United States		7,080,000		7,386,570
	1.875%, 7/31/26		United States		31,250,000		32,648,315
	2.00%, 4/30/24		United States		12,569,000		13,194,750
	2.00%, 5/31/24		United States		12,230,000		12,845,561
	2.125%, 3/31/24		United States		13,131,000		13,825,250
	2.125%, 9/30/24		United States		9,390,000		9,920,938
	2.125%, 11/30/24		United States		12,920,000		13,660,124
	2.25%, 10/31/24		United States		10,600,000		11,249,250
	2.25%, 11/15/24		United States		13,470,000		14,298,458
	2.375%, 2/29/24		United States		11,908,000		12,614,340
	2.50%, 5/15/24		United States		14,085,000		15,015,655
	2.875%, 8/15/28		United States		1,764,000		1,940,710
	3.125%, 11/15/28		United States		7,727,000		8,643,223
	United States Treasury Inflation Protected Security, 0.375%, 1/15/27		United States		7,308,495		8,065,605

	Total U.S. Government & Agency Securities (Cost $404,928,645)						389,792,198

	Mortgage-Backed Securities 1.9%
	Fannie Mae 0.6%
	Federal National Mortgage Association		United States		2,653,207		2,726,004

	Ginnie Mae 1.3%
	Government National Mortgage Association		United States		5,000,000		5,266,415

	Total Mortgage-Backed Securities (Cost $8,029,368)						7,992,419

	Total Investments before Short Term Investments (Cost $412,958,013)						397,784,617

	Short Term Investments 4.7%
	Money Market Funds 4.7%
a,b	Institutional Fiduciary Trust Portfolio, 0.01%		United States		19,594,757		19,594,757

	Total Short Term Investments (Cost $19,594,757)						19,594,757

	Total Investments (Cost $432,552,770) 99.8%						417,379,374
	Other Assets, less Liabilities 0.2%						819,602

	Net Assets 100.0%					$	418,198,976

See Abbreviation on Page 79.

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

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

^bThe rate shown is the annualized seven-day effective yield at period end.



franklintempleton.com	The accompanying notes are an integral part of these financial statements. \| Annual Report	59

FRANKLIN TEMPLETON ETF TRUST

FINANCIAL STATEMENTS

Statements of Assets and Liabilities

March 31, 2021



	Franklin Liberty Investment Grade Corporate ETF			Franklin Liberty Ultra Short Bond ETF			Franklin Liberty U.S. Core Bond ETF
Assets:
Investments in securities:
Cost – Unaffiliated issuers	$	992,530,075		$	2,483,915		$	1,451,558,023
Cost – Non-controlled affiliates (Note 3d)		—			22,444			21,162,095

Value – Unaffiliated issuers	$	991,007,603		$	2,493,648		$	1,439,244,356
Value – Non-controlled affiliates (Note 3d)		—			22,444			21,162,095
Cash		26,562,729			—			—
Receivables:
Interest		9,032,336			—			6,726,192
Dividends and interest		—			11,311			—
Affiliates		—			14,651			—
Deposits with Brokers for:		—			—			5,040,464
Variation margin on futures contracts		43,453			—			5,491
Futures contracts		258,760			—			299,902

Total assets		1,026,904,881			2,542,054			1,472,478,500

Liabilities:
Payables:
Investment securities purchased		4,976,000			1			8,197,407
Management fees		259,928			—			110,010
Transfer agent fees		12,000			8,862			12,000
Trustees’ fees and expenses		1,347			3			2,143
Distributions to shareholders		2,885,080			4,342			3,386,998
Custodian fees		17,963			1,033			8,836
Professional fees		37,375			28,059			44,089
Reports to shareholders		5,658			3,278			2,490
Registration and filing fees		57,810			287			91,467
Accrued expenses and other liabilities		12,564			8,548			26,145

Total liabilities		8,265,725			54,413			11,881,585

Net assets, at value	$	1,018,639,156		$	2,487,641		$	1,460,596,915

Net assets consist of:
Paid-in capital	$	1,026,226,670		$	2,500,000		$	1,478,520,465
Total distributable earnings (loss)		(7,587,514	)		(12,359	)		(17,923,550	)

Net assets, at value	$	1,018,639,156		$	2,487,641		$	1,460,596,915

Shares outstanding		40,000,000			100,000			58,100,000

Net asset value per share	$	25.47		$	24.88		$	25.14



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

FRANKLIN TEMPLETON ETF TRUST

FINANCIAL STATEMENTS

Statements of Assets and Liabilities (continued)

March 31, 2021



	Franklin Liberty U.S. Low Volatility ETF		Franklin Liberty U.S. Treasury Bond ETF
Assets:
Investments in securities:
Cost – Unaffiliated issuers	$	119,696,037	$	412,958,013
Cost – Non-controlled affiliates (Note 3d)		—		19,594,757

Value – Unaffiliated issuers	$	139,267,647	$	397,784,617
Value – Non-controlled affiliates (Note 3d)		—		19,594,757
Cash		507,182		—
Receivables:
Interest		127,447		—
Dividends and interest		—		1,586,685
Affiliates		—		16,496
Deposits with Brokers for:		—		—
Variation margin on futures contracts		—		—
Futures contracts		—		—

Total assets		139,902,276		418,982,555

Liabilities:
Payables:
Investment securities purchased		—		95
Management fees		24,094		—
Transfer agent fees		12,000		11,875
Trustees’ fees and expenses		160		537
Distributions to shareholders		—		674,095
Custodian fees		1,259		1,028
Professional fees		23,025		35,058
Reports to shareholders		3,899		3,272
Registration and filing fees		10,958		49,059
Accrued expenses and other liabilities		5,263		8,560

Total liabilities		80,658		783,579

Net assets, at value	$	139,821,618	$	418,198,976

Net assets consist of:
Paid-in capital	$	123,061,275	$	440,900,395
Total distributable earnings (loss)		16,760,343		(22,701,419	)

Net assets, at value	$	139,821,618	$	418,198,976

Shares outstanding		3,200,000		17,550,000

Net asset value per share	$	43.69	$	23.83



franklintempleton.com	The accompanying notes are an integral part of these financial statements. \| Annual Report	61

FRANKLIN TEMPLETON ETF TRUST

FINANCIAL STATEMENTS

Statements of Operations

for the year ended March 31, 2021



	Franklin Liberty Investment Grade Corporate ETF			Franklin Liberty Ultra Short Bond ETF^b			Franklin Liberty U.S. Core Bond ETF
Investment income:
Dividends: (net of foreign taxes)^a
Unaffiliated issuers	$	—		$	—		$	290
Interest:
Unaffiliated issuers		24,286,647			12,954			32,898,912

Total investment income		24,286,647			12,954			32,899,202

Expenses:
Management fees (Note 3a)		4,423,232			10,858			2,347,386
Transfer agent fees		15,600			8,862			15,607
Custodian fees		25,434			1,033			11,457
Reports to shareholders		14,067			4,274			12,264
Registration and filing fees		60,131			4,443			102,652
Professional fees		59,896			36,119			114,937
Trustees’ fees and expenses		50,866			67			87,061
Other		23,378			8,548			40,246

Total expenses		4,672,604			74,204			2,731,610
Expenses waived/paid by affiliates (Note 3c)		(1,426,758	)		(71,534	)		(384,225	)

Net expenses		3,245,846			2,670			2,347,385

Net investment income		21,040,801			10,284			30,551,817

Realized and unrealized gains (losses):
Net realized gain (loss) from:
Investments:
Unaffiliated issuers		11,944,385			2,243			9,185,543
In-kind redemptions		—			—			—
Foreign currency transactions		—			—			(859	)
Futures contracts		(310,406	)		—			3,596,003
Swap contracts		7,082			—			31,987

Net realized gain (loss)		11,641,061			2,243			12,812,674

Net change in unrealized appreciation (depreciation) on:
Investments:
Unaffiliated issuers		18,096,413			9,733			(21,081,256	)
Translation of other assets and liabilities denominated in foreign currencies		—			—			—
Futures contracts		502,020			—			(37,204	)
Swap contracts		—			—			575,441

Net change in unrealized appreciation (depreciation)		18,598,433			9,733			(20,543,019	)

Net realized and unrealized gain (loss)		30,239,494			11,976			(7,730,345	)

Net increase (decrease) in net assets resulting from operations	$	51,280,295		$	22,260		$	22,821,472

^bFor the period July 14, 2020 (commencement of operations) to March 31, 2021.



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FINANCIAL STATEMENTS

Statements of Operations (continued)

for the year ended March 31, 2021



	Franklin Liberty U.S. Low Volatility ETF			Franklin Liberty U.S. Treasury Bond ETF^a
Investment income:
Dividends:
Unaffiliated issuers	$	2,281,881		$	93
Interest:
Unaffiliated issuers		—			1,681,948
Inflation principal adjustments		—			292,295

Total investment income		2,281,881			1,974,336

Expenses:
Management fees (Note 3a)		331,408			1,419,565
Transfer agent fees		15,600			12,608
Custodian fees		1,852			1,172
Reports to shareholders		15,672			4,849
Registration and filing fees		12,873			54,186
Professional fees		28,703			50,166
Trustees’ fees and expenses (Note 3a)		6,574			10,794
Other		7,753			9,700

Total expenses		420,435			1,563,040
Expenses waived/paid by affiliates (Note 3c)		(89,027	)		(1,279,127	)

Net expenses		331,408			283,913

Net investment income		1,950,473			1,690,423

Realized and unrealized gains (losses):
Net realized gain (loss) from:
Investments:
Unaffiliated issuers		1,820			(3,618,092	)
In-kind redemptions		6,731,931			—
Foreign currency transactions		(820	)		—
Futures contracts		—			—
Swap contracts		—

Net realized gain (loss)		6,732,931			(3,618,092	)

Net change in unrealized appreciation (depreciation) on:
Investments:
Unaffiliated issuers		28,827,990			(15,173,396	)
Translation of other assets and liabilities denominated in foreign currencies		483			—
Futures contracts		—			—
Swap contracts		—			—

Net change in unrealized appreciation (depreciation)		28,828,473			(15,173,396	)

Net realized and unrealized gain (loss)		35,561,404			(18,791,488	)

Net increase (decrease) in net assets resulting from operations	$	37,511,877		$	(17,101,065	)

^aFor the period June 9, 2020 (commencement of operations) to March 31, 2021.


^aForeign taxes withheld on dividends	$	14,060



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FINANCIAL STATEMENTS

Statements of Changes in Net Assets



	Franklin Liberty Investment Grade Corporate ETF						Franklin Liberty Ultra Short Bond ETF

	Year Ended March 31, 2021			Year Ended March 31, 2020			Year Ended March 31, 2021^a
Increase (decrease) in net assets:
Operations:
Net investment income	$	21,040,801		$	9,749,119		$	10,284
Net realized gain (loss)		11,641,061			3,290,963			2,243
Net change in unrealized appreciation (depreciation)		18,598,433			(19,848,085	)		9,733

Net increase (decrease) in net assets resulting from operations		51,280,295			(6,808,003	)		22,260

Distributions to shareholders: (Note 1e)		(38,161,818	)		(12,798,430	)		(34,619	)

Capital share transactions: (Note 2)		452,182,964			554,879,195			2,500,000

Net increase (decrease) in net assets		465,301,441			535,272,762			2,487,641
Net assets:
Beginning of year		553,337,715			18,064,953			—

End of year (Note 1e)	$	1,018,639,156		$	553,337,715		$	2,487,641

^aFor the period July 14, 2020 (commencement of operations) to March 31, 2021.



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FINANCIAL STATEMENTS

Statements of Changes in Net Assets (continued)



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

	Year Ended March 31, 2021			Year Ended March 31, 2020^a			Year Ended March 31, 2021			Year Ended March 31, 2020
Increase (decrease) in net assets:
Operations:
Net investment income	$	30,551,817		$	9,777,030		$	1,950,473		$	758,854
Net realized gain (loss)		12,812,674			5,129,841			6,732,931			(2,881,061	)
Net change in unrealized appreciation (depreciation)		(20,543,019	)		8,579,753			28,828,473			(11,385,777	)

Net increase (decrease) in net assets resulting from operations		22,821,472			23,486,624			37,511,877			(13,507,984	)

Distributions to shareholders: (Note 1e)		(51,084,574	)		(12,075,002	)		(1,913,171	)		(613,357	)

Capital share transactions: (Note 2)		635,328,246			842,120,149			30,000,322			74,900,836

Net increase (decrease) in net assets		607,065,144			853,531,771			65,599,028			60,779,495
Net assets:
Beginning of year		853,531,771			—			74,222,590			13,443,095

End of year (Note 1e)	$	1,460,596,915		$	853,531,771		$	139,821,618		$	74,222,590

^aFor the period September 17, 2019 (commencement of operations) to March 31, 2020.



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FINANCIAL STATEMENTS

Statements of Changes in Net Assets (continued)



	Franklin Liberty U.S. Treasury Bond ETF

	Year Ended March 31, 2021^b
Increase (decrease) in net assets:
Operations:
Net investment income	$	1,690,423
Net realized gain (loss)		(3,618,092	)
Net change in unrealized appreciation (depreciation)		(15,173,396	)

Net increase (decrease) in net assets resulting from operations		(17,101,065	)

Distributions to shareholders: (Note 1e)		(5,600,354	)

Capital share transactions: (Note 2)		440,900,395

Net increase (decrease) in net assets		418,198,976
Net assets:
Beginning of year		—

End of year (Note 1e)	$	418,198,976

^bFor the period June 9, 2020 (commencement of operations) to March 31, 2021.



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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 an open-end management investment company, consisting of forty-five separate funds, five 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 the Franklin Liberty U.S. Treasury Bond ETF Fund commenced operations on June 9, 2020 & the Franklin Liberty Ultra Short Bond ETF Fund commenced operations on July 14, 2020.

The following summarizes the Funds’ significant accounting policies.

a. Financial Instrument Valuation

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.

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.



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NOTES TO FINANCIAL STATEMENTS

1. Organization and Significant Accounting Policies (continued)

a. Financial Instrument Valuation (continued)

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.

b. Foreign Currency Translation

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

Derivative counterparty credit risk is managed through a formal evaluation of the creditworthiness of all potential counterparties. Certain or all Funds attempt to reduce their exposure to counterparty credit risk on OTC derivatives, whenever possible, by entering into International Swaps and Derivatives Association (ISDA) master agreements with certain counterparties. These agreements contain various provisions, including but not limited to collateral requirements, events of default, or early termination.

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



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NOTES TO FINANCIAL STATEMENTS

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 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.

and/or received by the Fund, if any, is held in segregated accounts with the Fund’s custodian/counterparty broker and can be in the form of cash and/or securities. Unrestricted cash may be invested according to the Funds’ investment objectives. To the extent that the amounts due to the Fund from its counterparties are not subject to collateralization or are not fully collateralized, the Fund bears the risk of loss from counterparty non-performance.

See Note 8 regarding other derivative information.

d. Income and Deferred Taxes

The Funds may be subject to foreign taxation related to income received, capital gains on the sale of securities and certain foreign currency transactions in the foreign jurisdictions in which the Funds invest. Foreign taxes, if any, are recorded based on the tax regulations and rates that exist in the foreign markets in which the Funds invest. When a capital gain tax is determined to apply, certain or all Funds record an estimated deferred tax liability in an amount that would be payable if the securities were disposed of on the valuation date.



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NOTES TO FINANCIAL STATEMENTS

1. Organization and Significant Accounting Policies (continued)

e. Security Transactions, Investment Income, Expenses and Distributions

Security transactions are accounted for on trade date. Realized gains and losses on security transactions are determined on a specific identification basis. Interest income and estimated expenses are accrued daily. Amortization of premium and accretion of discount on debt securities are included in interest income. Dividend income and capital gain distributions are recorded on the ex-dividend date except for certain dividends from securities where the dividend rate is not available. In such cases, the dividend is recorded as soon as the information is received by the Funds. Distributions to shareholders are recorded on the ex-dividend date. Distributable earnings are determined according to income tax regulations (tax basis) and may differ from earnings recorded in accordance with U.S. GAAP. These differences may be permanent or temporary. Permanent differences are reclassified among capital accounts to reflect their tax character. These reclassifications have no impact on net assets or the results of operations. Temporary differences are not reclassified, as they may reverse in subsequent periods.

f. Accounting Estimates

The preparation of financial statements in accordance with U.S. GAAP requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities at the date of the financial statements and the amounts of income and expenses during the reporting period. Actual results could differ from those estimates.

g. Guarantees and Indemnifications

Under the Trust’s organizational documents, its officers and trustees are indemnified by the Trust against certain liabilities

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).



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NOTES TO FINANCIAL STATEMENTS

At March 31, 2021, there were an unlimited number of shares authorized (without par value). Transactions in the Funds’ shares were as follows:



	Franklin Liberty Investment Grade Corporate ETF

	Year Ended March 31, 2021						Year Ended March 31, 2020

	Shares			Amount			Shares			Amount
Shares sold		22,300,000		$	585,231,109			22,100,000		$	554,879,195
Shares redeemed		(5,150,000	)		(133,048,145	)		—			—

Net increase (decrease)		17,150,000		$	452,182,964			22,100,000		$	554,879,195


	Franklin Liberty Ultra Short Bond ETF

	Year Ended March 31, 2021^b

	Shares			Amount
Shares sold		100,001		$	2,500,025
Shares redeemed		(1	)		(25	)

Net increase (decrease)		100,000		$	2,500,000


	Franklin Liberty U.S. Core Bond ETF

	Year Ended March 31, 2021						Year Ended March 31, 2020^a

	Shares			Amount			Shares			Amount
Shares sold		37,350,000		$	966,046,417			38,500,001		$	968,931,821
Shares redeemed		(12,800,000	)		(330,718,171	)		(4,950,001	)		(126,811,672	)

Net increase (decrease)		24,550,000		$	635,328,246			33,550,000		$	842,120,149


	Franklin Liberty U.S. Low Volatility ETF

	Year Ended March 31, 2021						Year Ended March 31, 2020

	Shares			Amount			Shares			Amount
Shares sold		1,450,000		$	55,893,889			2,050,000		$	76,346,270
Shares redeemed		(650,000	)		(25,893,567	)		(50,000	)		(1,445,434	)

Net increase (decrease)		800,000		$	30,000,322			2,000,000		$	74,900,836


	Franklin Liberty U.S. Treasury Bond ETF

	Year Ended March 31, 2021^a

	Shares			Amount
Shares sold		17,950,001		$	450,866,696
Shares redeemed		(400,001	)		(9,966,301	)

Net increase (decrease)		17,550,000		$	440,900,395

^aFor the period June 09, 2020 (commencement of operations) to March 31, 2021.

^bFor the period July 14, 2020 (commencement of operations) to March 31, 2021.



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NOTES TO FINANCIAL STATEMENTS

3. Transactions with Affiliates

Franklin Resources, Inc. is the holding company for various subsidiaries that together are referred to as Franklin Templeton . Certain officers and trustees of the Funds are also officers and/or directors of the following subsidiaries:



Subsidiary		Affiliation
Franklin Advisers, Inc. (Advisers)		Investment manager
Franklin Templeton Institutional, LLC (FT Institutional)		Investment manager
Franklin Templeton Investimentos (Brasil) Ltda. (FTI Brasil)		Investment manager
Franklin Templeton Investment Management Limited (FTIML)		Investment manager
Franklin Templeton Investment Trust Management Co., Ltd. (FT Korea)		Investment manager
Franklin Templeton Investments (ME) Limited (FTIME)		Investment manager
Franklin Templeton Investments Corp. (FTIC)		Investment manager
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 U.S. Low Volatility ETF, Franklin Liberty U.S. Core Bond ETF, Franklin Liberty U.S. Treasury Bond ETF and Franklin Liberty Ultra Short Bond ETF pay an investment management fee to Advisers of 0.290%, 0.150%, 0.450% and 0.610%, respectively, per year of the average daily net assets of each of the Funds.

Franklin Liberty Investment Grade Corporate ETF pays an investment management fee to Advisers based on the average daily net assets of the fund as follows:



Annualized Fee Rate		Net Assets
0.625%		Up to and including $100 million
0.500%		Over $100 million, up to and including $250 million
0.450%		Over $250 million, up to and including $7.5 billion
0.440%		Over $7.5 billion, up to and including $10 billion
0.430%		Over $10 billion, up to and including $12.5 billion
0.420%		Over $12.5 billion, up to and including $15 billion
0.400%		Over $15 billion, up to and including $17.5 billion
0.380%		Over $17.5 billion, up to and including $20 billion
0.360%		Over $20 billion, up to and including $35 billion
0.355%		Over $35 billion, up to and including $50 billion
0.350%		In excess of $50 billion

For the year ended March 31, 2021, the gross effective investment management fee rate was 0.480% of the Franklin Liberty Investment Grade Corporate ETF’s average daily net assets.

b. Administrative Fees



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NOTES TO FINANCIAL STATEMENTS

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 Investment Grade Corporate ETF, Franklin Liberty U.S. Low Volatility ETF, Franklin Liberty U.S. Core Bond ETF, Franklin Liberty U.S. Treasury Bond ETF and Franklin Liberty Ultra Short Bond ETF so that the expenses (including acquired fund fees and expenses) of the Funds do not exceed 0.35%, 0.29%, 0.15%, 0.09% and 0.15%, respectively, 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, 2021. Total expenses waived or paid are not subject to recapture subsequent to the Funds’ fiscal year end.

d. Investments in Affiliated Management Investment Companies



	Value at Beginning Year		Purchases		Sales			Realized Gain (Loss)		Net Change In (Depreciation)		Value at End of Year		Number of Shares Held at End of Year		Investment Income

Franklin Liberty Ultra Short Bond ETF
Non-Controlled Affiliates																Dividend Income

Institutional Fiduciary Trust Money Market Portfolio 0.01%	$	—	$	1,268,261	$	(1,245,817	)	$	—	$	—	$	22,444	$	22,444	$	—


Franklin Liberty U.S. Core Bond ETF
Non-Controlled Affiliates																Dividend Income

Institutional Fiduciary Trust Money Market Portfolio 0.01%	$	—	$	754,038,632		(732,876,537	)	$	—	$	—	$	21,162,095		21,162,095	$	—


Franklin Liberty U.S. Treasury Bond ETF
Non-Controlled Affiliates																Dividend Income

Institutional Fiduciary Trust Money Market Portfolio 0.01%	$	—	$	97,297,002		(77,702,245	)	$	—	$	—	$	19,594,757		19,594,757	$	—



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NOTES TO FINANCIAL STATEMENTS

3. Transactions with Affiliates (continued)

e. Other Affiliated Transactions

At March 31, 2021, the shares of the funds were owned by the following investment companies:



Funds	Shares		Percentage of Outstanding Shares^a
Franklin Liberty Investment Grade Corporate ETF
Franklin Moderate Allocation Fund		2,165,075		5.4%
Franklin Total Return Fund		18,335,000		45.8%
Franklin 529 Portfolios		12,652,950		31.6%

		33,153,025		82.80%


Franklin Liberty Ultra Short Bond ETF
Franklin Resources Inc.		43,000		43.0%


Franklin Liberty U.S. Core Bond ETF
Franklin Conservative Allocation Fund		9,113,623		15.7%
Franklin Moderate Allocation Fund		11,277,948		19.4%
Franklin 529 Portfolios		25,496,241		43.9%

		45,887,812		79.0%


Franklin Liberty U.S. Low Volatility ETF
Franklin Managed Income Fund		1,000,000		31.3%


Franklin Liberty U.S. Treasury Bond ETF
Franklin Conservative Allocation Fund		2,004,700		11.4%
Franklin Moderate Allocation Fund		2,515,100		14.3%
Franklin Growth Allocation Fund		1,155,300		6.6%
Franklin 529 Portfolios		10,780,258		61.4%

		16,455,358		93.70%

^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, 2021, the capital loss carryforwards were as follows:



	Franklin Liberty U.S. Low Volatility ETF		Franklin Liberty U.S. Treasury Bond ETF
Capital loss carryforwards not subject to expiration:
Short term	$	3,011,178	$	5,704,428

For tax purposes, the Funds may elect to defer any portion of late-year ordinary loss to the first day of the following fiscal year.

At March 31, 2021, the deferred losses were as follows:



	Franklin Liberty Ultra Short Bond ETF			Franklin Liberty U.S. Core Bond ETF
Post October capital losses	$	(4,648	)	$	—



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NOTES TO FINANCIAL STATEMENTS

The tax character of distributions paid during the years ended March 31, 2021 and 2020, were as follows:



	Franklin Liberty Investment Grade Corporate ETF				Franklin Liberty Ultra Short Bond ETF		Franklin Liberty U.S Core Bond ETF

	2021		2020		2021		2021		2020
Distributions paid from:
Ordinary income	$	34,905,788	$	12,798,430	$	34,619	$	48,744,964	$	11,995,769
Long-term Capital Gain		3,256,030		—		—		2,339,610		79,233

Total	$	38,161,818	$	12,798,430	$	34,619	$	51,084,574	$	12,075,002

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

	2021		2020		2021
Distributions paid from:
Ordinary income	$	1,913,171	$	613,357	$	5,600,354
Long-term Capital Gain		—		—		—

Total	$	1,913,171	$	613,357	$	5,600,354

At March 31, 2021, the cost of investments and net unrealized appreciation (depreciation) for income tax purposes were as follows:



	Franklin Liberty Investment Grade Corporate ETF			Franklin Liberty Ultra Short Bond ETF			Franklin Liberty U.S. Core Bond ETF			Franklin Liberty U.S. Low Volatility ETF			Franklin Liberty U.S. Treasury Bond ETF
Cost of investments	$	998,288,471		$	2,523,953		$	1,478,399,385		$	119,696,347		$	434,414,131

Unrealized appreciation	$	19,566,232		$	23,884		$	20,324,132			20,362,347		$	1,035
Unrealized depreciation		(26,847,100	)		(31,745	)		(38,317,066	)		(791,047	)		(17,035,792	)

Net unrealized appreciation (depreciation)	$	(7,280,868	)	$	(7,861	)	$	(17,992,934	)	$	19,571,300		$	(17,034,757	)

Distributable earnings – undistributed ordinary income	$	721,757		$	4,492		$	—		$	200,120		$	711,862

Distributable earnings – undistributed capital gains	$	1,856,677		$	—		$	3,456,382		$	—		$	—

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 and in-kind transactions, if any) for the period ended March 31, 2021, were as follows:



	Franklin Liberty Investment Grade Corporate ETF		Franklin Liberty Ultra Short Bond ETF		Franklin Liberty U.S. Core Bond ETF		Franklin Liberty U.S. Low Volatility ETF		Franklin Liberty U.S. Treasury Bond ETF
Purchases	$	807,399,908	$	2,505,102	$	2,051,730,968	$	46,360,265	$	819,503,634
Sales	$	484,831,215	$	207,346	$	1,411,634,204	$	45,575,948	$	399,280,363



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NOTES TO FINANCIAL STATEMENTS

5. Investment Transactions (continued)

In-kind transactions associated with creation and redemptions for the period ended March 31, 2021, were as follows:



	Franklin Liberty Investment Grade Corporate ETF		Franklin Liberty Ultra Short Bond ETF		Franklin Liberty U.S. Core Bond ETF		Franklin Liberty U.S. Low Volatility ETF		Franklin Liberty U.S. Treasury Bond ETF
Cost of Securities Received	$	104,225,523	$	—	$	—	$	55,064,606	$	—
Value of Securities Delivered	$	—	$	—	$	—	$	25,517,095	$	—

6. Concentration of Risk

7. Novel Coronavirus Pandemic

8. Other Derivative Information

At March 31, 2021, 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 futures contracts

961,831

Variation margin on futures contracts

527,570

Franklin Liberty U.S. Core Bond ETF

Interest rate contracts

Variation margin on futures contracts

907,882

Variation margin on futures contracts

557,481

For the period ended March 31, 2021, 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	$	(310,406	)	Futures contracts	$	502,020

Credit Default contracts	Swap Contracts		7,082		Swap Contracts		—

Totals		$	(303,324	)		$	502,020



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NOTES TO FINANCIAL STATEMENTS



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	$	3,596,003	Futures contracts	$	(37,204	)

Credit Default contracts	Swap Contracts		31,987	Swap Contracts		575,441

Totals		$	3,627,990		$	538,237

For the period ended March 31, 2021, the average month end notional amount of futures and swaps contracts were as follows:



	Franklin Liberty Investment Grade Corporate ETF		Franklin Liberty Ultra Short Bond ETF		Franklin Liberty U.S. Core Bond ETF		Franklin Liberty U.S. Low Volatility ETF		Franklin Liberty U.S. Treasury Bond ETF
Futures contracts	$	62,284,596	$	—	$	89,616,435	$	—	$	—
Credit Default contracts	$	1,923,077	$	—	$	3,144,231	$	—	$	—

See Note 1(c) regarding derivative financial instruments.

9. Fair Value Measurements

•

Level 1 – quoted prices in active markets for identical financial instruments

•

Level 2 – other significant observable inputs (including quoted prices for similar financial instruments, interest rates, prepayment speed, credit risk, etc.)

•

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

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

A summary of inputs used as of March 31, 2021, in valuing the Funds’ assets and liabilities carried at fair value, is as follows:



	Level 1		Level 2		Level 3		Total

Franklin Liberty Investment Grade Corporate ETF

Assets:
Investments in Securities:^a
Corporate Bonds & Notes	$	—	$	986,533,267	$	—	$	986,533,267
U.S. Government & Agency Securities			$	$4,474,336			$	4,474,336

Total Investments in Securities	$	—	$	991,007,603	$	—	$	991,007,603

Other Financial Instruments:
Futures Contracts	$	961,831			$		$	961,831


Liabilities:
Other Financial Instruments:
Futures Contracts	$	527,570	$	—	$	—	$	527,570



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NOTES TO FINANCIAL STATEMENTS

9. Fair Value Measurements (continued)



	Level 1		Level 2		Level 3		Total

Franklin Liberty Ultra Short Bond ETF

Assets:
Investments in Securities:^a
Corporate Bonds & Notes	$	—	$	2,291,175	$	—	$	2,291,175
Asset-Backed Securities		—		202,473		—		202,473
Short-Term Investments		22,444		—		—		22,444

Total Investments in Securities	$	22,444	$	2,493,648	$	—	$	2,516,092


Franklin Liberty U.S. Core Bond ETF

Assets:
Investments in Securities:^a
Corporate Bonds & Notes	$	—	$	416,645,132	$	—	$	416,645,132
U.S. Government & Agency Securities		—		562,367,526		—		562,367,526
Municipal Bonds		—		45,921,536		—		45,921,536
Mortgage-Backed Securities		—		325,174,837		—		325,174,837
Foreign Government and Agency Securities		—		65,727,505		—		65,727,505
Asset-Backed Securities		—		23,407,820		—		23,407,820
Short-Term Investments		21,162,095		—		—		21,162,095

Total Investments in Securities	$	21,162,095	$	1,439,244,356	$	—	$	1,460,406,451

Other Financial Instruments:
Futures Contracts	$	907,882	$	—	$	—	$	907,882


Liabilities:
Other Financial Instruments:
Futures Contracts	$	557,481	$	—	$	—	$	557,481


Franklin Liberty U.S. Low Volatility ETF

Assets:
Investments in Securities:^a
Equity Investments^b	$	139,267,647	$	—	$	—	$	139,267,647

Total Investments in Securities	$	139,267,647	$	—	$	—	$	139,267,647


Franklin Liberty U.S. Treasury Bond ETF

Assets:
Investments in Securities:^a
U.S. Government and Agency Securities	$	—	$	389,792,198	$	—	$	389,792,198
Mortgage-Backed Securities		—		7,992,419		—		7,992,419
Short-Term Investments		19,594,757		—		—		19,594,757

Total Investments in Securities	$	19,594,757	$	397,784,617	$	—	$	417,379,374

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

^bIncludes common and preferred stocks.

10. New Accounting Pronouncements

In March 2020, the Financial Accounting Standards Board (FASB) issued Accounting Standards Update (ASU) No. 2020-04, Reference Rate Reform (Topic 848) – Facilitation of the Effects of Reference Rate Reform on Financial Reporting. The amendments in the ASU provides optional temporary financial reporting relief from the effect of certain types of contract modifications due to the planned discontinuation of the London Interbank Offered Rate (LIBOR) and other interbank-offered based reference rates as of the end of 2021. The ASU is effective for certain reference rate-related contract modifications that occur during the period March 12, 2020 through December 31, 2022. Management has reviewed the requirements and believes the adoption of this ASU will not have a material impact on the financial statements.



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NOTES TO FINANCIAL STATEMENTS

11. Subsequent Events

The Funds have evaluated subsequent events through the issuance of the financial statements and determined that no events have occurred that require disclosure.

Abbreviations


Selected Portfolio
FHLB		Federal Home Loan Bank
FRN		Floating Rate Note
REIT		Real Estate Investment Trust
ADR		American Depositary Receipt+
GO		General Obligation
MTA		Metropolitan Transit Authority
REIT		Real Estate Investment Trust



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Report of Independent Registered Public Accounting Firm

To the Board of Trustees of Franklin Templeton ETF Trust and Shareholders of Franklin Liberty Investment Grade Corporate ETF, Franklin Liberty U.S. Core Bond ETF, Franklin Liberty U.S. Low Volatility ETF, Franklin Liberty U.S. Treasury Bond ETF, and Franklin Liberty Ultra Short Bond ETF

Opinions on the Financial Statements

We have audited the accompanying statements of assets and liabilities, including the statements of investments, of Franklin Liberty Investment Grade Corporate ETF, Franklin Liberty U.S. Core Bond ETF, Franklin Liberty U.S. Low Volatility ETF, Franklin Liberty U.S. Treasury Bond ETF, and Franklin Liberty Ultra Short Bond ETF (five of the funds constituting Franklin Templeton ETF Trust, hereafter collectively referred to as the “Funds”) as of March 31, 2021, the related statements of operations and of changes in net assets for each of the periods indicated in the table below, including the related notes, and the financial highlights for each of the periods indicated in the table below (collectively referred to as the “financial statements”). In our opinion, the financial statements present fairly, in all material respects, the financial position of each of the Funds as of March 31, 2021, the results of each of their operations, the changes in each of their net assets, and each of the financial highlights for each of the periods indicated in the table below, in conformity with accounting principles generally accepted in the United States of America.



Franklin Templeton ETF Trust	Statements of Operations	Statement of changes in net assets	Financial Highlights
Franklin Liberty Investment Grade Corporate ETF Franklin Liberty U.S. Low Volatility ETF	For the year ended March 31, 2021	For the years ended March 31, 2021 and 2020	For the years ended March 31, 2021, 2020, 2019, and the period from October 3, 2016 (commencement of operations) to March 3, 2017
Franklin Liberty U.S. Core Bond ETF	For the year ended March 31, 2021	For the year ended March 31, 2021 and the period from September 17, 2019 (commencement of operations) through March 31, 2020	For the year ended March 31, 2021 and the period from September 17, 2019 (commencement of operations) through March 31, 2020
Franklin Liberty U.S. Treasury Bond ETF	For the period from June 9, 2020 (commencement of operations) through March 31, 2021
Franklin Liberty Ultra Short Bond ETF	For the period from July 14, 2020 (commencement of operations) through March 31, 2021

Basis for Opinions



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with the custodian, transfer agent and brokers; when replies were not received from brokers, we performed other auditing procedures. We believe that our audits provide a reasonable basis for our opinions.

PricewaterhouseCoopers LLP

San Francisco, California

May 20, 2021

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



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Tax Information (unaudited)



Franklin Liberty Investment Grade Corporate ETF	Franklin Liberty U.S. Core Bond ETF
$3,540,625		$2,595,889



Franklin Liberty Investment Grade Corporate ETF	Franklin Liberty Ultra Short Bond ETF		Franklin Liberty U.S. Core Bond ETF
$5,287,511		$1,561		$8,432,832

Under Section 854(b)(1)(A) of the Internal Revenue Code, Franklin Liberty U.S. Low Volatility ETF hereby reports 100.00% of the ordinary income dividends as income qualifying for the dividends received deduction for the fiscal year ended March 31, 2021.



		Franklin Liberty U.S. Low Volatility ETF
		$2,197,777

Under Section 871(k)(1)(C) of the Internal Revenue Code, the Funds hereby report the maximum amount allowable but no less than the following amounts as interest related dividends for purposes of the tax imposed under Section 871(a)(1)(A) of the Internal Revenue Code for the fiscal year ended March 31, 2021:



Franklin Liberty Investment Grade Corporate ETF		Franklin Liberty Ultra Short Bond ETF		Franklin Liberty U.S. Core Bond ETF		Franklin Liberty U.S. Low Volatility ETF		Franklin Liberty U.S. Treasury Bond ETF
	$24,478,594		$26,338		$31,603,002		$179		$5,638,031



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Board Members and Officers

Independent Board Members



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

Rohit Bhagat (1964) One Franklin Parkway San Mateo, CA 94403-1906	Lead Independent Trustee	Since 2016	49	AssetMark Financial Holdings, Inc. (investment solutions) (2018-present) and PhonePe (December 2020) (payment and financial services); formerly, Axis Bank (financial) (2013-2021), FlipKart Limited (2019-December 2020) (eCommerce company); CapFloat Financial Services Pvt., Ltd. (non-banking finance company) (2018) and Zentific Investment Management (hedge fund) (2015-2018).

Principal Occupation During at Least the Past 5 Years:
Managing Member, Mukt Capital, LLC (private investment firm) (2014-present); Advisor, Optimal Asset Management (investment technology and advisory services company) (2015-present); Chief Executive Officer and Director, FinTech Evolution Acquisition (eCommerce company) (February 2021-present); and formerly, Chairman, Asia Pacific, BlackRock (2009-2012); Global Chief Operating Officer, Barclays Global Investors (investment management) (2005-2009); and Senior Partner, The Boston Consulting Group (management consulting) (1992-2005).

Deborah D. McWhinney (1955) One Franklin Parkway San Mateo, CA 94403-1906	Trustee	Since 2020	49	IHS Markit (information services) (2015-present), Borg Warner (automotive) (2018-present), LegalShield (consumer services) (2020-present); and formerly, Fluor Corporation (construction and engineering) (2014-2020) and Focus Financial Partner, LLC (financial services) (2018-2020).

Principal Occupation During at Least the Past 5 Years:
Director of various companies; and formerly, Board Member, Lloyds Banking Group (2015-2018) (financial institution)) and Fresenius Medical Group (2016-2018) (healthcare); Chief Executive Officer (2013-2014) and Chief Operating Officer (2011-2013), CitiGroup Global Enterprise Payments (financial services); and President, Citi’s Personal Banking and Wealth Management (2009-2011).

Anantha K. Pradeep (1963) One Franklin Parkway San Mateo, CA 94403-1906	Trustee	Since 2016	49	None

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



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Interested Board Members and Officers



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

**Jennifer M. Johnson (1964) One Franklin Parkway San Mateo, CA 94403-1906	Trustee and Chairperson of the Board	Since 2016	60	None

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

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

Principal Occupation During at Least the Past 5 Years:
Deputy General Counsel, Franklin Templeton; and officer of some of the other subsidiaries of Franklin Resources, Inc. and of 42 of the investment companies in Franklin Templeton.

Breda M. Beckerle (1958) 280 Park Avenue New York, NY 10017	Chief Compliance Officer	Since November 2020	Not Applicable	Not Applicable

Principal Occupation During at Least the Past 5 Years:
Chief Compliance Officer, Fiduciary Investment Management International, Inc., Franklin Advisers, Inc., Franklin Advisory Services, LLC, Franklin Mutual Advisers, LLC, Franklin Templeton Institutional, LLC; and officer of 42 of the investment companies in Franklin Templeton.

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

Principal Occupation During at Least the Past 5 Years:
Senior Associate General Counsel, Franklin Templeton; Vice President, Franklin Templeton Distributors, Inc. and FASA, LLC; and officer of 42 of the investment companies in Franklin Templeton.

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

Principal Occupation During at Least the Past 5 Years:
Senior Vice President, Franklin Templeton Services, LLC; officer of 42 of the investment companies in Franklin Templeton; and formerly, Vice President, Global Tax (2012-April 2017) and Treasurer/Assistant Treasurer, Franklin Templeton (2009-2017).

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

Principal Occupation During at Least the Past 5 Years:
Vice President, Franklin Templeton Companies, LLC; Chief Compliance Officer, Franklin Templeton Distributors, Inc. and Franklin Templeton Investor Services, LLC; and officer of 42 of the investment companies in Franklin Templeton.



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Interested Board Members and Officers (continued)



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

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

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

Vivek Pai (1970) 300 S.E. 2nd Street Fort Lauderdale, FL 33301-1923	Treasurer, Chief Financial Officer and Chief Accounting Officer	Since 2019	Not Applicable	Not Applicable

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

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

Principal Occupation During at Least the Past 5 Years:
Associate General Counsel and officer of 42 of the investment companies in Franklin Templeton.

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

Principal Occupation During at Least the Past 5 Years:
General Counsel and Executive Vice President, Franklin Resources, Inc.; and officer of some of the other subsidiaries of Franklin Resources, Inc. and of 42 of the investment companies in Franklin Templeton.

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

Principal Occupation During at Least the Past 5 Years:
Senior Associate General Counsel, Franklin Templeton; Assistant Secretary, Franklin Resources, Inc.; Vice President and Secretary, Templeton Investment Counsel, LLC; and officer of 42 of the investment companies in Franklin Templeton.

Note 1: Officer information is current as of the date of this report. It is possible that after this date, information about officers may change.



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Shareholder Information

Proxy Voting Policies and Procedures

Quarterly Statement of Investments

Premium/Discount Information

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



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

ANNUAL REPORT

FRANKLIN TEMPLETON

ETF TRUST

March 31, 2021

LOGO


Franklin LibertyQ U.S. Equity ETF		Franklin LibertyQ U.S. Small Cap Equity ETF
Franklin LibertyQ U.S. Mid Cap Equity ETF



Contents

Annual Report

Economic and Market Overview			2
Franklin LibertyQ U.S. Equity ETF			3
Franklin LibertyQ U.S. Mid Cap Equity ETF			9
Franklin LibertyQ U.S. Small Cap Equity ETF			15
Financial Highlights and Statements of Investments			21
Financial Statements			45
Notes to Financial Statements			49
Report of Independent Registered Public Accounting Firm			57
Tax Information			58
Board Members and Officers			59
Shareholder Information			62


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

Visit franklintempleton.com for fund updates and documents, or to find helpful financial planning tools.



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ANNUAL REPORT

Economic and Market Overview

The U.S. economy was severely impacted by the pandemic, as business closures and restrictions on gatherings disrupted everyday life. As a result, second-quarter 2020 gross domestic product (GDP) experienced a record annualized decline, and mass layoffs drove the unemployment rate to a peak of 14.8% in April.¹ However, economic conditions improved rapidly thereafter, with GDP rebounding at a record annualized pace in 2020’s third quarter and expanding more slowly in the fourth quarter. Similarly, the unemployment rate declined notably, reaching 6.0% in March 2021 as jobless claims fell and employment openings began to increase.¹

The combination of large stimulus payments, increasing asset prices and rising savings during lockdowns led to the strengthening of household balance sheets, as wealth levels rose and credit card debt declined in 2020’s fourth quarter. These factors led investors to anticipate a surge in spending. Nonetheless, areas of economic weakness remained, including total employment numbers that stayed well below pre-pandemic levels, and inflation expectations that increased to the highest level in more than 10 years near period-end.

1. Source: Bureau of Labor Statistics.



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Franklin LibertyQ U.S. Equity ETF

This annual report for Franklin LibertyQ U.S. Equity ETF covers the fiscal year ended March 31, 2021.

Your Fund’s Goal and Main Investments

The Fund seeks to provide investment results that closely correspond, before fees and expenses, to the performance of the LibertyQ U.S. Large Cap Equity Index (the Underlying Index).^{1 Under normal market conditions, the Fund invests at least 80% of its assets in the component securities of the Underlying Index. The Underlying Index seeks to achieve a lower level of risk and higher risk-adjusted performance than the Russell 1000® Index over the long term by applying a multi-factor selection process, which is designed to select equity securities from the Russell 1000® Index that have favorable exposure to four investment style factors: quality, value, momentum and low volatility.}

Performance Overview

For the 12 months under review, the Fund posted cumulative total returns of +48.29% based on market price and +48.22% based on net asset value (NAV). In comparison, the LibertyQ U.S. Large Cap Equity Index posted a +48.42% total return for the same period, while the Russell 1000^® Index posted a +60.59% 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

3/31/21

	% of Total Net Assets
Information Technology		26.0%
Health Care		14.7%
Industrials		13.9%
Consumer Staples		13.5%
Consumer Discretionary		10.9%
Communication Services		5.8%
Utilities		5.6%
Financials		3.8%
Materials		3.1%
Real Estate		2.4%

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 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 capi-talization 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.

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 22.



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Top 10 Holdings

3/31/21

Company *Sector/Industry*	% of Total Net Assets
Applied Materials Inc. Information Technology		1.5%
Intel Corp. Information Technology		1.2%
Lam Research Corp. Information Technology		1.2%
Eli Lilly and Co. Health Care		1.2%
Cisco Systems Inc. Information Technology		1.1%
Philip Morris International Inc. Consumer Staples		1.1%
Texas Instruments Inc. Information Technology		1.1%
Altria Group Inc. Consumer Staples		1.1%
Johnson & Johnson Health Care		1.1%
Estee Lauder Cos. Inc., A Consumer Staples		1.0%

Manager’s Discussion

For the fiscal year ended March 31, 2021, individual holdings that lifted the Fund’s absolute return included Applied Materials, Lam Research and Apple. Individual holdings that hindered the Fund’s absolute return included Biogen, Raytheon and Vertex Pharmaceuticals.

The Fund’s research-based selection process focuses on four investment factors: value, quality, momentum and low volatility. Of the four target-style factors, low volatility significantly detracted from the Fund’s relative performance for the reporting period, while the quality factor also detracted. In contrast, the value and momentum factors modestly

contributed to the Fund’s relative return. The Fund’s net long position in the S&P 500 Index, through the use of futures contracts, also contributed to the Fund’s absolute performance, as stocks rose during the period.

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

Dina Ting, CFA

Hailey Harris

Portfolio Management Team

CFA^® is a trademark owned by CFA Institute.



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FRANKLIN LIBERTYQ U.S. EQUITY ETF

Performance Summary as of March 31, 2021

Net asset value or “NAV” is the value of one share of a fund as calculated in accordance with the standard formula for valuing mutual fund shares. The price used to calculate market return (Market Price) is determined by using the midpoint between the highest bid and the lowest offer on the primary stock exchange on which shares of a fund are listed for trading, as of the time that such fund’s NAV is calculated. Since shares of the Fund did not trade in the secondary market until after the Fund’s inception, for the period from inception to the first day of secondary trading (4/28/17), the NAV of the Fund is used as a proxy for the Market Price to calculate market returns. Market and NAV returns assume that dividends and capital gain distributions have been reinvested at Market Price and NAV.

Performance as of 3/31/21¹

Cumulative Total Return²

Average Annual Total Return²

Based on

NAV³

Based on

market price⁴

Based on

NAV³

Based on

market price⁴

1-Year

+48.22%

+48.29%

+48.22%

+48.29%

3-Year

+48.91%

+48.35%

+14.19%

+14.05%

Since Inception (4/26/17)

+69.52%

+69.60%

+14.38%

+14.39%

See page 7 for Performance Summary footnotes.



franklintempleton.com	Annual Report	5

FRANKLIN LIBERTYQ U.S. EQUITY ETF

PERFORMANCE SUMMARY

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

4/26/17–3/31/21

LOGO

See page 7 for Performance Summary footnotes.



6	Annual Report	franklintempleton.com

FRANKLIN LIBERTYQ U.S. EQUITY ETF

PERFORMANCE SUMMARY

Distributions (4/1/20–3/31/21)

Net Investment

Income

$0.777484

Total Annual Operating Expenses⁶

0.15%

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. Source: FactSet. The LibertyQ U.S. Large Cap Equity Index is a systematic, rules-based proprietary index maintained and calculated by FTSE Russell (Russell) based on the Russell 1000 Index using a methodology developed with Franklin Templeton to reflect Franklin Templeton’s desired investment strategy. Russell 1000 Index is market capitalization weighted and measures performance of the largest companies in the Russell 3000 Index, which represents the majority of the U.S. market’s total capitalization.

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



franklintempleton.com	Annual Report	7

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


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

Beginning Account Value 10/1/20		Ending Account Value 3/31/21		Expenses Paid During Period 10/1/20–3/31/21^1,2		Ending Account Value 3/31/21		Expenses Paid During Period 10/1/20–3/31/21^1,2		Net Annualized Expense Ratio²
	$1,000.00	$	1,165.80	$	0.81	$	1,024.18	$	0.76		0.15	%

2. Reflects expenses after fee waivers and expense reimbursements.



8	Annual Report	franklintempleton.com

Franklin LibertyQ U.S. Mid Cap Equity ETF

This annual report for Franklin LibertyQ U.S. Mid Cap Equity ETF covers the fiscal year ended March 31, 2021.

Your Fund’s Goal and Main Investments

The Fund seeks to provide investment results that closely correspond, before fees and expenses, to the performance of the LibertyQ U.S. Mid Cap Equity Index (the Underlying Index).¹Under normal market conditions, the Fund invests at least 80% of its assets in the component securities of the Underlying Index. The Underlying Index seeks to achieve a lower level of risk and higher risk-adjusted performance than the Russell Midcap^® Index over the long term by applying a multi-factor selection process, which is designed to select equity securities from the Russell Midcap^® Index that have favorable exposure to four investment style factors: quality, value, momentum and low volatility.

Performance Overview

For the 12 months under review, the Fund posted cumulative total returns of +66.27% based on market price and +65.69% based on net asset value (NAV). In comparison, the LibertyQ U.S. Mid Cap Equity Index posted a +66.21% total return for the same period, while the Russell Midcap^® Index posted a +73.64% total return for the same period.² You can find more of the Fund’s performance data in the Performance Summary beginning on page 11.


Top 10 Sectors/Industries

3/31/21

	% of Total Net Assets
Industrials		19.0%
Information Technology		18.9%
Consumer Discretionary		16.8%
Health Care		11.5%
Financials		11.1%
Consumer Staples		7.2%
Real Estate		6.9%
Utilities		3.6%
Communication Services		2.6%
Materials		2.4%

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 portfolio is reconstituted semiannually following the semiannual reconstitution of the Underlying Index.

1. Frank Russell Company is the source and owner of the trademarks, service marks and copyrights related to the Russell Indexes. Russell^® is a trademark of Frank Russell Company. The LibertyQ U.S. Mid Cap Equity Index is a systematic, rules-based proprietary index that is maintained and calculated by FTSE Russell (Russell). It is based on the Russell Midcap^® Index using a methodology developed with Franklin Templeton to reflect Franklin Templeton’s desired investment strategy. Russell Midcap^® Index is market capitalization weighted and measures performance of the smallest companies in the Russell 1000^® Index, which represents a modest amount of the Russell 1000^® Index’s total market capitalization.

2. Source: FactSet.

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

The dollar value, number of shares or principal amount, and names of all portfolio holdings are listed in the Fund’s Statement of Investments (SOI). The SOI begins on page 29.



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FRANKLIN LIBERTYQ U.S. MID CAP EQUITY ETF


Top 10 Holdings

3/31/21

Company *Sector/Industry*	% of Total Net Assets
HP Inc. Information Technology		1.3%
KLA Corp. Information Technology		1.2%
Discover Financial Services Financials		1.1%
Tractor Supply Co. Consumer Discretionary		1.1%
CDW Corp. Information Technology		1.1%
Old Dominion Freight Line Inc. Industrials		1.1%
Cadence Design Systems Inc. Information Technology		1.1%
O’Reilly Automotive Inc. Consumer Discretionary		1.0%
AutoZone Inc. Consumer Discretionary		1.0%
Trane Technologies PLC Industrials		1.0%

Manager’s Discussion

For the fiscal year ended March 31, 2021, individual holdings that lifted the Fund’s absolute return included Align Technology, KLA and Cadence Design Systems. Individual holdings that hindered the Fund’s absolute return included ResMed, Neurocrine Biosciences and Ionis Pharmaceuticals.

momentum was a further marginal detractor. In contrast, the value factor significantly contributed to the Fund’s relative return.

Thank you for your participation in Franklin LibertyQ U.S. Mid Cap Equity ETF. We look forward to serving your future investment needs.

Dina Ting, CFA

Hailey Harris

Portfolio Management Team



10	Annual Report	franklintempleton.com

FRANKLIN LIBERTYQ U.S. MID CAP EQUITY ETF

Performance Summary as of March 31, 2021

Net asset value or “NAV” is the value of one share of a fund as calculated in accordance with the standard formula for valuing mutual fund shares. The price used to calculate market return (Market Price) is determined by using the midpoint between the highest bid and the lowest offer on the primary stock exchange on which shares of a fund are listed for trading, as of the time that such fund’s NAV is calculated. Since shares of the Fund did not trade in the secondary market until after the Fund’s inception, for the period from inception to the first day of secondary trading (4/28/17), the NAV of the Fund is used as a proxy for the Market Price to calculate market returns. Market and NAV returns assume that dividends and capital gain distributions have been reinvested at Market Price and NAV.

Performance as of 3/31/21¹

Cumulative Total Return²

Average Annual Total Return²

Based on

NAV³

Based on

market price⁴

Based on

NAV³

Based on

market price⁴

1-Year

+65.69%

+66.27%

+65.69%

+66.27%

3-Year

+53.46%

+53.06%

+15.34%

+15.24%

Since Inception (4/26/17)

+68.94%

+69.23%

+14.28%

+14.33%

See page 13 for Performance Summary footnotes.



franklintempleton.com	Annual Report	11

FRANKLIN LIBERTYQ U.S. MID CAP EQUITY ETF

PERFORMANCE SUMMARY

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

4/26/17–3/31/21

LOGO

See page 13 for Performance Summary footnotes.



12	Annual Report	franklintempleton.com

FRANKLIN LIBERTYQ U.S. MID CAP EQUITY ETF

PERFORMANCE SUMMARY

Distributions (4/1/20–3/31/21)

Net Investment

Income

$0.412404

Total Annual Operating Expenses⁶

0.30%

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. Source: FactSet. The LibertyQ U.S. Mid Cap Equity Index is a systematic, rules-based proprietary index maintained and calculated by FTSE Russell (Russell) based on the Russell Midcap Index using a methodology developed with Franklin Templeton to reflect Franklin Templeton’s desired investment strategy. Russell Midcap Index is market capitalization weighted and measures performance of the smallest companies in the Russell 1000 Index, which represents a modest amount of the Russell 1000 Index’s total market capitalization.

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



franklintempleton.com	Annual Report	13

FRANKLIN LIBERTYQ U.S. MID CAP EQUITY ETF

Your Fund’s Expenses

Actual Fund Expenses

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

Hypothetical Example for Comparison with Other Funds


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

Beginning Account Value 10/1/20		Ending Account Value 3/31/21		Expenses Paid During Period 10/1/20–3/31/21^1,2		Ending Account Value 3/31/21		Expenses Paid During Period 10/1/20–3/31/21^1,2		Net Annualized Expense Ratio²
	$1,000.00	$	1,244.00	$	1.68	$	1,023.44	$	1.51		0.30	%

2. Reflects expenses after fee waivers and expense reimbursements.



14	Annual Report	franklintempleton.com

Franklin LibertyQ U.S. Small Cap Equity ETF

This annual report for Franklin LibertyQ U.S. Small Cap Equity ETF covers the fiscal year ended March 31, 2021.

Your Fund’s Goal and Main Investments

The Fund seeks to provide investment results that closely correspond, before fees and expenses, to the performance of the LibertyQ U.S. Small Cap Equity Index (the Underlying Index).¹Under normal market conditions, the Fund invests at least 80% of its assets in the component securities of the Underlying Index. The Underlying Index seeks to achieve a lower level of risk and higher risk-adjusted performance than the Russell 2000^® Index over the long term by applying a multi-factor selection process, which is designed to select equity securities from the Russell 2000^® Index that have favorable exposure to four investment style factors: quality, value, momentum and low volatility.

Performance Overview

For the 12 months under review, the Fund posted cumulative total returns of +82.25% based on market price and +80.74% based on net asset value (NAV). In comparison, the LibertyQ U.S. Small Cap Equity Index posted a +81.44% total return for the same period, while the Russell 2000^® Index posted a +94.85% total return.² You can find more of the Fund’s performance data in the Performance Summary beginning on page 17.


Top 10 Sectors/Industries

3/31/21

	% of Total Net Assets
Consumer Discretionary		26.4%
Industrials		19.5%
Information Technology		13.8%
Health Care		10.1%
Financials		8.4%
Consumer Staples		5.7%
Real Estate		5.2%
Utilities		4.5%
Communication Services		3.4%
Materials		2.3%

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 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 approximately 2,000 smallest companies in the Russell 3000^® Index, which represent a small amount of the total market capitalization of the Russell 3000^® Index.

2. Source: FactSet.

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

The dollar value, number of shares or principal amount, and names of all portfolio holdings are listed in the Fund’s Statement of Investments (SOI). The SOI begins on page 35.



franklintempleton.com	Annual Report	15

FRANKLIN LIBERTYQ U.S. SMALL CAP EQUITY ETF


Top 10 Holdings

3/31/21

Company *Sector/Industry*	% of Total Net Assets
Builders FirstSource Inc. Industrials		1.2%
Lithia Motors Inc. Consumer Discretionary		1.1%
Deckers Outdoor Corp. Consumer Discretionary		1.1%
SAIA Inc. Industrials		1.0%
Texas Roadhouse Inc., A Consumer Discretionary		1.0%
GameStop Corp., A Consumer Discretionary		1.0%
J2 Global Inc. Information Technology		0.9%
SiteOne Landscape Supply Inc. Industrials		0.9%
Silicon Laboratories Inc. Information Technology		0.9%
MicroStrategy Inc. Information Technology		0.8%

Manager’s Discussion

For the fiscal year ended March 31, 2021, individual holdings that lifted the Fund’s absolute return included Lithia Motors, Deckers Outdoor and SAIA. Individual holdings that hindered the Fund’s absolute return included Liberty Latin America, Strayer Education and Cogent Communications Holdings.

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

contrast, the quality factor significantly contributed to the Fund’s relative return and value also contributed.

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

Hailey Harris

Portfolio Management Team



16	Annual Report	franklintempleton.com

FRANKLIN LIBERTYQ U.S. SMALL CAP EQUITY ETF

Performance Summary as of March 31, 2021

Net asset value or “NAV” is the value of one share of a fund as calculated in accordance with the standard formula for valuing mutual fund shares. The price used to calculate market return (Market Price) is determined by using the midpoint between the highest bid and the lowest offer on the primary stock exchange on which shares of a fund are listed for trading, as of the time that such fund’s NAV is calculated. Since shares of the Fund did not trade in the secondary market until after the Fund’s inception, for the period from inception to the first day of secondary trading (4/28/17), the NAV of the Fund is used as a proxy for the Market Price to calculate market returns. Market and NAV returns assume that dividends and capital gain distributions have been reinvested at Market Price and NAV.

Performance as of 3/31/21¹

Cumulative Total Return²

Average Annual Total Return²

Based on

NAV³

Based on

market price⁴

Based on

NAV³

Based on

market price⁴

1-Year

+80.74%

+82.25%

+80.74%

+82.25%

3-Year

+42.71%

+43.12%

+12.59%

+12.69%

Since Inception (4/26/17)

+51.75%

+52.13%

+11.20%

+11.27%

See page 19 for Performance Summary footnotes.



franklintempleton.com	Annual Report	17

FRANKLIN LIBERTYQ U.S. SMALL CAP EQUITY ETF

PERFORMANCE SUMMARY

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

4/26/17–3/31/21

LOGO

See page 19 for Performance Summary footnotes.



18	Annual Report	franklintempleton.com

FRANKLIN LIBERTYQ U.S. SMALL CAP EQUITY ETF

PERFORMANCE SUMMARY

Distributions (4/1/20–3/31/21)

Net Investment

Income

$0.37615

Total Annual Operating Expenses⁶

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.

5. Source: FactSet. The LibertyQ U.S. Small Cap Equity Index is a systematic, rules-based proprietary index that is maintained and calculated by FTSE Russell (Russell) based on the Russell 2000 Index using a methodology developed with Franklin Templeton to reflect Franklin Templeton’s desired investment strategy. Russell 2000 Index is market capitalization weighted and measures performance of the approximately 2,000 smallest companies in the Russell 3000 Index, which represent a small amount of the total market capitalization of the Russell 3000 Index.

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



franklintempleton.com	Annual Report	19

FRANKLIN LIBERTYQ U.S. SMALL CAP EQUITY ETF

Your Fund’s Expenses

Actual Fund Expenses

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

Hypothetical Example for Comparison with Other Funds


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

Beginning Account Value 10/1/20		Ending Account Value 3/31/21		Expenses Paid During Period 10/1/20–3/31/21^1,2		Ending Account Value 3/31/21		Expenses Paid During Period 10/1/20–3/31/21^1,2		Net Annualized Expense Ratio²
	$1,000.00	$	1,428.00	$	2.12	$	1,023.19	$	1.77		0.35	%

2. Reflects expenses after fee waivers and expense reimbursements.



20	Annual Report	franklintempleton.com

FRANKLIN TEMPLETON ETF TRUST

Financial Highlights

Franklin LibertyQ U.S. Equity ETF



	Year Ended March 31,

	2021			2020			2019			2018^a

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

Net asset value, beginning of year	$	27.61		$	31.41		$	28.51		$	25.44


Income from investment operations^b:

Net investment income^c		0.72			0.76			0.66			0.53

Net realized and unrealized gains (losses)		12.49			(3.89	)		2.71			2.98


Total from investment operations		13.21			(3.13	)		3.37			3.51


Less distributions from net investment income		(0.78	)		(0.67	)		(0.47	)		(0.44	)


Net asset value, end of year	$	40.04		$	27.61		$	31.41		$	28.51


Total return^d		48.22%			(10.27)%			11.97%			13.84%

Ratios to average net assets^e

Expenses before waiver and payments by affiliates		0.15%			0.18%			0.25%			0.32%	^f

Expenses net of waiver and payments by affiliates		0.15%			0.18%			0.25%			0.25%	^f

Net investment income		2.06%			2.32%			2.20%			2.10%

Supplemental data

Net assets, end of year (000’s)		$1,353,407			$1,311,583			$1,008,255			$108,326

Portfolio turnover rate^g		25.05%	^h		19.44%	^h		18.04%			20.80%

^aFor the period April 26, 2017 (commencement of operations) to March 31, 2018.

^cBased on average daily shares outstanding.

^eRatios are annualized for periods less than one year.

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

^gPortfolio turnover rate includes portfolio transactions that are executed as a result of the Fund offering and redeeming Creation Units solely for cash (“Cash creations”).

^hPortfolio turnover rate excluding cash creations was as follows:

25.05%

19.44%



franklintempleton.com	The accompanying notes are an integral part of these financial statements. \| Annual Report	21

FRANKLIN TEMPLETON ETF TRUST

Statement of Investments, March 31, 2021

Franklin LibertyQ U.S. Equity ETF



		Shares		Value
	Common Stocks 99.8%
	Communication Services 5.8%
	Activision Blizzard Inc.		67,636	$	6,290,148
a	Alphabet Inc., A		3,605		7,435,385
	AT&T Inc.		434,028		13,138,027
	Comcast Corp., A		248,128		13,426,206
	Electronic Arts Inc.		27,040		3,660,405
a	Facebook Inc., A		45,292		13,339,853
	Lumen Technologies Inc.		54,756		730,993
a	Match Group Inc.		19,333		2,655,967
	Omnicom Group Inc.		47,320		3,508,778
	The Interpublic Group of Cos. Inc.		70,304		2,052,877
	Verizon Communications Inc.		206,892		12,030,770

					78,269,409

	Consumer Discretionary 10.9%
a	AutoZone Inc.		4,550		6,389,565
	Best Buy Co. Inc.		56,108		6,441,759
	Carter’s Inc.		9,464		841,633
	D.R. Horton Inc.		39,208		3,494,217
	Dollar General Corp.		53,440		10,828,013
	Domino’s Pizza Inc.		10,140		3,729,391
	eBay Inc.		33,124		2,028,514
	Foot Locker Inc.		27,716		1,559,025
	Garmin Ltd.		32,484		4,283,015
	Gentex Corp.		61,516		2,194,276
a	Grand Canyon Education Inc.		4,056		434,398
	H&R Block Inc.		50,054		1,091,177
	Hanesbrands Inc.		52,052		1,023,863
a	Lululemon Athletica Inc.		25,372		7,781,846
	McDonald’s Corp.		57,460		12,879,084
	NIKE Inc., B		92,612		12,307,209
a	NVR Inc.		712		3,354,182
a	O’Reilly Automotive Inc.		16,900		8,572,525
	Pool Corp.		8,788		3,033,969
	PulteGroup Inc.		39,884		2,091,517
	Qurate Retail Inc., A		20,307		238,810
	Ross Stores Inc.		84,536		10,136,712
	Target Corp.		69,628		13,791,218
	The TJX Cos. Inc.		196,752		13,015,145
	Tractor Supply Co.		27,716		4,907,949
	Williams-Sonoma Inc.		18,928		3,391,898
	Yum! Brands Inc.		76,388		8,263,654

					148,104,564

	Consumer Staples 13.5%
	Altria Group Inc.		284,629		14,561,620
a	Boston Beer Inc., A		897		1,082,033
	Brown-Forman Corp., A		10,816		688,655
	Brown-Forman Corp., B		22,308		1,538,583
	Campbell Soup Co.		17,576		883,546
	Casey’s General Stores Inc.		7,436		1,607,589
	Church & Dwight Co. Inc.		55,432		4,841,985
	Clorox Co.		33,124		6,388,957
	Colgate-Palmolive Co.		146,052		11,513,279
	Costco Wholesale Corp.		32,448		11,437,271
	Estee Lauder Cos. Inc., A		48,672		14,156,251
	Flowers Foods Inc.		42,618		1,014,308
	General Mills Inc.		139,968		8,582,838
	Hormel Foods Corp.		65,572		3,133,030



22	Annual Report	franklintempleton.com

FRANKLIN TEMPLETON ETF TRUST

STATEMENT OF INVESTMENTS

Franklin LibertyQ U.S. Equity ETF (continued)



		Shares		Value
	Common Stocks (continued)
	Consumer Staples (continued)
	Ingredion Inc.		14,196	$	1,276,504
	Kellogg Co.		41,948		2,655,308
a	Monster Beverage Corp.		77,100		7,023,039
	Nu Skin Enterprises Inc., A		10,816		572,058
	PepsiCo Inc.		86,528		12,239,386
	Philip Morris International Inc.		164,944		14,637,131
a	Sprouts Farmers Market Inc.		21,632		575,844
	The Coca-Cola Co.		242,041		12,757,981
	The Hershey Co.		37,856		5,987,305
	The J.M. Smucker Co.		20,280		2,566,028
	The Kroger Co.		132,496		4,768,531
	The Procter & Gamble Co.		89,908		12,176,240
	Tyson Foods Inc.		61,516		4,570,639
	Walgreens Boots Alliance Inc.		146,016		8,016,278
	Walmart Inc.		81,796		11,110,351

					182,362,568

	Energy 0.1%
	Cabot Oil & Gas Corp., A		68,276		1,282,223

	Financials 3.8%
	American National Group Inc.		2,028		218,760
	Associated Banc-Corp.		7,436		158,684
	Erie Indemnity Co., A		2,421		534,823
	Evercore Inc.		3,380		445,281
	FactSet Research Systems Inc.		8,788		2,711,889
	Invesco Ltd.		68,276		1,721,921
	Jefferies Financial Group Inc.		20,280		610,428
	Lazard Ltd., A		24,336		1,058,859
	MarketAxess Holdings Inc.		8,555		4,259,706
	Moody’s Corp.		25,688		7,670,694
	Morningstar Inc.		4,056		912,762
	People’s United Financial Inc.		22,984		411,414
	S&P Global Inc.		31,096		10,972,845
	Santander Consumer USA Holdings Inc.		19,604		530,484
	SEI Investments Co.		23,020		1,402,609
	T. Rowe Price Group Inc.		28,392		4,872,067
	The Progressive Corp.		54,080		5,170,589
	Wells Fargo & Co.		191,308		7,474,404

					51,138,219

	Health Care 14.7%
	AbbVie Inc.		119,012		12,879,479
a	ABIOMED Inc.		4,056		1,292,769
a	Align Technology Inc.		8,112		4,392,891
	Amgen Inc.		56,108		13,960,231
a	Bio-Rad Laboratories Inc., A		1,089		622,004
a	Biogen Inc.		35,542		9,942,875
	Bristol-Myers Squibb Co.		200,096		12,632,060
	Cerner Corp.		60,840		4,373,179
	Chemed Corp.		3,154		1,450,272
	Eli Lilly and Co.		85,852		16,038,871
a	Exelixis Inc.		56,811		1,283,360
	Gilead Sciences Inc.		177,148		11,449,075
a	Horizon Pharma PLC		16,936		1,558,789
	Humana Inc.		11,492		4,818,021
a	IDEXX Laboratories Inc.		5,408		2,646,188
	Johnson & Johnson		86,564		14,226,793



franklintempleton.com	Annual Report	23

FRANKLIN TEMPLETON ETF TRUST

STATEMENT OF INVESTMENTS

Franklin LibertyQ U.S. Equity ETF (continued)



		Shares		Value
	Common Stocks (continued)
	Health Care (continued)
	Merck & Co. Inc.		154,840	$	11,936,616
a	Mettler-Toledo International Inc.		5,650		6,529,649
	Pfizer Inc.		325,865		11,806,089
	Premier Inc., A		10,816		366,122
	Quest Diagnostics Inc.		6,760		867,578
a	Quidel Corp.		2,028		259,442
a	Regeneron Pharmaceuticals Inc.		12,611		5,966,769
	ResMed Inc.		31,096		6,033,246
	Thermo Fisher Scientific Inc.		20,065		9,157,265
	UnitedHealth Group Inc.		37,180		13,833,563
a	Veeva Systems Inc.		12,844		3,355,367
a	Vertex Pharmaceuticals Inc.		24,336		5,229,563
a	Waters Corp.		6,760		1,920,989
	West Pharmaceutical Services Inc.		7,436		2,095,316
	Zoetis Inc.		41,912		6,600,302

					199,524,733

	Industrials 13.9%
	3M Co.		72,332		13,936,930
	A O Smith Corp.		12,168		822,678
	Allegion PLC		10,816		1,358,706
	Allison Transmission Holdings Inc.		19,640		801,901
	BWX Technologies Inc.		8,788		579,481
	C.H. Robinson Worldwide Inc.		32,448		3,096,513
	Cintas Corp.		17,576		5,998,865
a	Copart Inc.		45,968		4,992,584
	Corelogic Inc.		4,056		321,438
	Cummins Inc.		34,476		8,933,076
	Eaton Corp. PLC		20,280		2,804,318
	Emerson Electric Co.		129,116		11,648,845
	Expeditors International of Washington Inc.		38,532		4,149,511
	Fastenal Co.		141,284		7,103,760
a	FTI Consulting Inc.		2,704		378,857
a	Generac Holdings Inc.		5,408		1,770,850
	Graco Inc.		36,540		2,616,995
	GrafTech International Ltd.		9,464		115,745
	Honeywell International Inc.		60,876		13,214,353
	Hubbell Inc., B		2,704		505,351
	Huntington Ingalls Industries Inc.		8,788		1,809,010
	Illinois Tool Works Inc.		51,376		11,380,811
	JB Hunt Transport Services Inc.		19,604		3,294,844
	Landstar System Inc.		8,788		1,450,547
	Lennox International Inc.		5,408		1,685,079
	Lincoln Electric Holdings Inc.		5,408		664,860
	Lockheed Martin Corp.		34,193		12,634,313
	MSC Industrial Direct Co. Inc., A		9,464		853,558
	Northrop Grumman Corp.		18,928		6,125,858
	Old Dominion Freight Line Inc.		12,844		3,087,826
	Otis Worldwide Corp.		35,828		2,452,427
	PACCAR Inc.		49,348		4,585,416
	Robert Half International Inc.		29,744		2,322,114
	Rockwell Automation Inc.		27,040		7,177,498
	Rollins Inc.		52,728		1,814,898
	Schneider National Inc., B		4,765		118,982
	Snap-on Inc.		9,464		2,183,723
	Toro Co.		25,012		2,579,738
	Trane Technologies PLC		12,168		2,014,534
a	Trex Co. Inc.		10,816		990,097



24	Annual Report	franklintempleton.com

FRANKLIN TEMPLETON ETF TRUST

STATEMENT OF INVESTMENTS

Franklin LibertyQ U.S. Equity ETF (continued)



		Shares		Value
	Common Stocks (continued)
	Industrials (continued)
	Union Pacific Corp.		60,876	$	13,417,679
	United Parcel Service Inc., B		73,008		12,410,630
	Verisk Analytics Inc.		14,232		2,514,652
	W.W. Grainger Inc.		10,816		4,336,459
	Watsco Inc.		6,760		1,762,670

					188,818,980

	Information Technology 26.0%
	Accenture PLC, A		50,024		13,819,130
a	Adobe Inc.		26,081		12,398,125
a	Akamai Technologies Inc.		14,196		1,446,572
a	Alphabet Inc., C		3,499		7,238,136
	Amdocs Ltd.		30,420		2,133,963
	Apple Inc.		104,780		12,798,877
	Applied Materials Inc.		151,424		20,230,247
a	Arista Networks Inc.		5,408		1,632,621
a	Aspen Technology Inc.		12,168		1,756,208
	Automatic Data Processing Inc.		71,656		13,505,006
	Booz Allen Hamilton Holding Corp.		20,956		1,687,587
	Broadridge Financial Solutions Inc.		26,364		4,036,328
a	Cadence Design Systems Inc.		45,968		6,297,156
a	Cirrus Logic Inc.		4,732		401,226
	Cisco Systems Inc.		290,713		15,032,769
	Citrix Systems Inc.		20,280		2,846,501
	Cognizant Technology Solutions Corp., A		99,408		7,765,753
a	Dell Technologies Inc.		14,196		1,251,377
a	F5 Networks Inc.		14,196		2,961,570
a	Fair Isaac Corp.		2,478		1,204,432
a	Fortinet Inc.		11,492		2,119,355
	HP Inc.		356,285		11,312,049
	Intel Corp.		258,265		16,528,960
	International Business Machines Corp.		100,760		13,427,278
	Intuit Inc.		35,512		13,603,227
	Jack Henry & Associates Inc.		17,576		2,666,631
	KLA Corp.		34,476		11,390,870
	Lam Research Corp.		27,633		16,448,267
	Mastercard Inc., A		37,180		13,237,939
	Maxim Integrated Products Inc.		61,552		5,624,006
	Microsoft Corp.		58,136		13,706,725
	Monolithic Power Systems		4,056		1,432,620
	Motorola Solutions Inc.		34,512		6,489,982
	NetApp Inc.		50,024		3,635,244
	NVIDIA Corp.		23,284		12,432,026
	Oracle Corp.		162,949		11,434,131
	Paychex Inc.		78,416		7,686,336
	QUALCOMM Inc.		84,536		11,208,628
	Skyworks Solutions Inc.		42,588		7,814,046
	Teradyne Inc.		8,112		987,068
	Texas Instruments Inc.		77,100		14,571,129
a	Tyler Technologies Inc.		3,380		1,434,911
	Visa Inc., A		59,488		12,595,394
a,b	VMware Inc., A		6,760		1,017,042
a	Vontier Corp.		6,084		184,163
	Western Union Co.		21,632		533,445
	Xerox Holdings Corp.		14,872		360,944
	Xilinx Inc.		57,460		7,119,294

					351,445,294



franklintempleton.com	Annual Report	25

FRANKLIN TEMPLETON ETF TRUST

STATEMENT OF INVESTMENTS

Franklin LibertyQ U.S. Equity ETF (continued)



		Shares		Value
	Common Stocks (continued)
	Materials 3.1%
	Air Products and Chemicals Inc.		33,800	$	9,509,292
	Ardagh Group SA		676		17,177
	Avery Dennison Corp.		7,436		1,365,621
	Celanese Corp.		17,576		2,633,061
	Eastman Chemical Co.		23,660		2,605,439
	Huntsman Corp.		18,288		527,243
	International Paper Co.		20,956		1,133,091
	LyondellBasell Industries NV, A		70,980		7,385,469
	NewMarket Corp.		1,352		513,976
	Newmont Corp.		70,304		4,237,222
	Nucor Corp.		43,940		3,527,064
	Packaging Corp. of America		18,928		2,545,437
	Reliance Steel & Aluminum Co.		8,112		1,235,376
	Sonoco Products Co.		20,956		1,326,515
	Southern Copper Corp.		4,056		275,281
	Steel Dynamics Inc.		35,152		1,784,316
	Valvoline Inc.		27,067		705,637

					41,327,217

	Real Estate 2.4%
	Coresite Realty Corp.		3,380		405,093
	EPR Properties		16,224		755,876
	Extra Space Storage Inc.		6,760		896,038
	Kimco Realty Corp.		79,125		1,483,594
	National Retail Properties Inc.		38,568		1,699,692
	Omega Healthcare Investors Inc.		11,492		420,952
	Public Storage		39,544		9,757,877
	Realty Income Corp.		71,016		4,509,516
	Simon Property Group Inc.		58,812		6,691,041
	Spirit Realty Capital Inc.		22,984		976,820
	STORE Capital Corp.		45,328		1,518,488
	VICI Properties Inc.		28,392		801,790
	WP Carey Inc.		32,448		2,296,021

					32,212,798

	Utilities 5.6%
	Alliant Energy Corp.		47,996		2,599,463
	Ameren Corp.		39,884		3,244,962
	American Electric Power Co. Inc.		56,108		4,752,348
��	Atmos Energy Corp.		23,660		2,338,791
	Consolidated Edison Inc.		66,924		5,005,915
	Dominion Energy Inc.		118,300		8,986,068
	Evergy Inc.		37,180		2,213,325
	Eversource Energy		62,192		5,385,205
	Hawaiian Electric Industries Inc.		22,308		991,145
	NextEra Energy Inc.		169,676		12,829,202
	PPL Corp.		125,736		3,626,226
	Public Service Enterprise Group Inc.		110,188		6,634,420
	The Southern Co.		171,740		10,675,359
	WEC Energy Group Inc.		27,076		2,534,043
	Xcel Energy Inc.		61,516		4,091,429

					75,907,901

	Total Investments before Short Term Investments (Cost $1,148,390,238)				1,350,393,906



26	Annual Report	franklintempleton.com

FRANKLIN TEMPLETON ETF TRUST

STATEMENT OF INVESTMENTS

Franklin LibertyQ U.S. Equity ETF (continued)



		Shares		Value
	Short Term Investments 0.1%
	Investments from Cash Collateral Received for Loaned Securities 0.1%
	Money Market Funds 0.1%
c,d	Institutional Fiduciary Trust Portfolio, 0.01%		735,495	$	735,495

	Total Short Term Investments (Cost $735,495)				735,495

	Total Investments (Cost $1,149,125,733) 99.9%				1,351,129,401
	Other Assets, less Liabilities 0.1%				2,277,116

	Net Assets 100.0%			$	1,353,406,517

^aNon-income producing.

^bA portion or all of the security is on loan at March 31, 2021 Note 1(c).

^cThe rate shown is the annualized seven-day effective yield at period end.

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

At March 31, 2021, the Fund had the following futures contracts outstanding. See Note 1(b).

Futures Contracts

Description

Type

Number of
Contracts

Notional
Amount*

Expiration
Date

Value/Unrealized
Appreciation
(Depreciation)

Index Contracts

S&P 500 E-Mini

Long

1,785,330

6/18/21

15,510

*As of period end.

See note 7 regarding other derivative information.



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

FRANKLIN TEMPLETON ETF TRUST

Financial Highlights

Franklin LibertyQ U.S. Mid Cap Equity ETF



	Year Ended March 31,

	2021			2020			2019			2018^a

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

Net asset value, beginning of year	$	24.94		$	30.32		$	27.70		$	25.51


Income from investment operations^b:

Net investment income^c		0.45			0.50			0.47			0.38

Net realized and unrealized gains (losses)		15.86			(5.41	)		2.53			2.18


Total from investment operations		16.31			(4.91	)		3.00			2.56


Less distributions from net investment income		(0.41	)		(0.47	)		(0.38	)		(0.37	)


Net asset value, end of year	$	40.84		$	24.94		$	30.32		$	27.70


Total return^d		65.69%			(16.50)%			10.92%			10.09%

Ratios to average net assets^e

Expenses before waiver and payments by affiliates		0.30%			0.30%			0.30%			0.99%^f

Expenses net of waiver and payments by affiliates		0.30%			0.30%			0.30%			0.30%^f

Net investment income		1.30%			1.60%			1.65%			1.58%

Supplemental data

Net assets, end of year (000’s)		$36,759			$13,718			$10,612			$2,770

Portfolio turnover rate^g		25.02%	^h		24.20%	^h		23.49%			36.21%

^aFor the period April 26, 2017 (commencement of operations) to March 31, 2018.

^cBased on average daily shares outstanding.

^eRatios are annualized for periods less than one year.

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

^gPortfolio turnover rate includes portfolio transactions that are executed as a result of the Fund offering and redeeming Creation Units solely for cash (“Cash creations”).

^hPortfolio turnover rate excluding cash creations was as follows:

25.02%

24.20%



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

FRANKLIN TEMPLETON ETF TRUST

Statement of Investments, March 31, 2021

Franklin LibertyQ U.S. Mid Cap Equity ETF



		Shares		Value
	Common Stocks 100.0%
	Communication Services 2.6%
	John Wiley & Sons Inc., A		684	$	37,073
	Lumen Technologies Inc.		12,672		169,171
a	Match Group Inc.		1,962		269,540
	Omnicom Group Inc.		3,600		266,940
	Telephone and Data Systems Inc.		1,116		25,623
	ViacomCBS Inc., A		72		3,396
	ViacomCBS Inc., B		3,744		168,854
	World Wrestling Entertainment Inc.		522		28,324

					968,921

	Consumer Discretionary 16.8%
a	AutoZone Inc.		270		379,161
	Best Buy Co. Inc.		3,060		351,319
	BorgWarner Inc.		3,456		160,220
a	Capri Holdings Ltd.		2,214		112,914
	Carter’s Inc.		774		68,832
	Columbia Sportswear Co.		342		36,125
	Dick’s Sporting Goods Inc.		1,134		86,354
	Domino’s Pizza Inc.		450		165,505
	Foot Locker Inc.		1,926		108,338
	Garmin Ltd.		2,268		299,036
	Gentex Corp.		3,438		122,633
	Genuine Parts Co.		2,232		257,997
	H&R Block Inc.		3,672		80,050
	Hanesbrands Inc.		6,228		122,505
	Hasbro Inc.		1,890		181,667
	Kohl’s Corp.		2,592		154,509
	L Brands Inc.		3,744		231,604
a	Leslie’s Inc.		342		8,376
a	Lululemon Athletica Inc.		900		276,039
	Nordstrom Inc.		2,052		77,709
a	NVR Inc.		51		240,257
a	O’Reilly Automotive Inc.		756		383,481
a	Ollie’s Bargain Outlet Holdings Inc.		738		64,206
	Penske Automotive Group Inc.		576		46,218
	Pool Corp.		882		304,502
	Qurate Retail Inc., A		2,718		31,964
	Tapestry Inc.		4,824		198,797
	Tempur Sealy International Inc.		2,934		107,267
	Tractor Supply Co.		2,268		401,617
a	Ulta Beauty Inc.		918		283,818
	Whirlpool Corp.		846		186,416
	Williams-Sonoma Inc.		1,548		277,402
	Yum China Holdings Inc.		5,868		347,444

					6,154,282

	Consumer Staples 7.2%
b	Albertsons Cos Inc.		414		7,895
a	Boston Beer Inc., A		108		130,278
	Brown-Forman Corp., A		774		49,281
	Brown-Forman Corp., B		3,060		211,048
	Campbell Soup Co.		2,862		143,873
	Church & Dwight Co. Inc.		3,780		330,183
	Clorox Co.		1,638		315,937
	Flowers Foods Inc.		4,158		98,960
a	Herbalife Ltd.		1,674		74,259
	Kellogg Co.		4,032		255,226
	Nu Skin Enterprises Inc., A		990		52,361



franklintempleton.com	Annual Report	29

FRANKLIN TEMPLETON ETF TRUST

STATEMENT OF INVESTMENTS

Franklin LibertyQ U.S. Mid Cap Equity ETF (continued)



		Shares		Value
	Common Stocks (continued)
	Consumer Staples (continued)
	Reynolds Consumer Products Inc.		342	$	10,185
a	Sprouts Farmers Market Inc.		2,286		60,853
	The Hershey Co.		2,232		353,013
	The J.M. Smucker Co.		1,404		177,648
	The Kroger Co.		10,080		362,779

					2,633,779

	Financials 11.1%
	Affiliated Managers Group Inc.		540		80,476
	Ally Financial Inc.		5,490		248,203
	American National Group Inc.		144		15,533
	Apollo Global Management Inc., A		2,052		96,465
	Brown & Brown Inc.		3,960		181,012
	Cincinnati Financial Corp.		2,790		287,621
	Citizens Financial Group Inc.		4,644		205,033
	CNA Financial Corp.		468		20,887
a	Credit Acceptance Corp.		180		64,841
	Discover Financial Services		4,230		401,808
	Erie Indemnity Co., A		306		67,599
	Evercore Inc.		612		80,625
	FactSet Research Systems Inc.		648		199,966
	First American Financial Corp.		1,656		93,812
	Globe Life Inc.		1,602		154,801
	Invesco Ltd.		3,870		97,601
	Lazard Ltd., A		1,530		66,570
	MarketAxess Holdings Inc.		558		277,839
	Mercury General Corp.		432		26,270
	MSCI Inc.		810		339,617
	Nasdaq Inc.		1,980		291,971
	PacWest Bancorp		1,548		59,056
	Prosperity Bancshares Inc.		1,278		95,710
	Santander Consumer USA Holdings Inc.		1,440		38,966
	SEI Investments Co.		2,448		149,157
	Synchrony Financial		8,712		354,230
	Unum Group		3,348		93,175

					4,088,844

	Health Care 11.5%
a	ABIOMED Inc.		522		166,377
a	Acadia Healthcare Co. Inc.		1,458		83,310
a	Align Technology Inc.		689		373,114
a	Amedisys Inc.		378		100,091
a	Bio-Rad Laboratories Inc., A		223		127,371
	Bio-Techne Corp.		378		144,370
	Cardinal Health Inc.		2,250		136,687
	Cerner Corp.		4,194		301,465
	Chemed Corp.		198		91,044
	Encompass Health Corp.		1,728		141,523
a	Exelixis Inc.		3,978		89,863
a	Globus Medical Inc., A		864		53,283
a	Henry Schein Inc.		2,106		145,819
a	IDEXX Laboratories Inc.		720		352,303
a	Ionis Pharmaceuticals Inc.		1,368		61,505
a	Masimo Corp.		792		181,891
a	Mettler-Toledo International Inc.		288		332,839
a	Molina Healthcare Inc.		918		214,592
a	Quidel Corp.		306		39,147
	ResMed Inc.		1,152		223,511



30	Annual Report	franklintempleton.com

FRANKLIN TEMPLETON ETF TRUST

STATEMENT OF INVESTMENTS

Franklin LibertyQ U.S. Mid Cap Equity ETF (continued)



		Shares		Value
	Common Stocks (continued)
	Health Care (continued)
	Royalty Pharma PLC		864	$	37,688
a	United Therapeutics Corp.		486		81,293
	Universal Health Services Inc., B		1,332		177,675
a	Waters Corp.		1,224		347,824
	West Pharmaceutical Services Inc.		774		218,098

					4,222,683

	Industrials 19.0%
	A O Smith Corp.		882		59,632
	Allegion PLC		1,584		198,982
	Allison Transmission Holdings Inc.		1,836		74,964
	BWX Technologies Inc.		1,476		97,327
	C.H. Robinson Worldwide Inc.		2,358		225,024
	Carrier Global Corp.		8,712		367,821
	Cintas Corp.		936		319,466
	Cummins Inc.		1,440		373,118
	Curtiss-Wright Corp.		450		53,370
	Donaldson Co. Inc.		2,070		120,391
	Dover Corp.		1,764		241,897
	Expeditors International of Washington Inc.		2,988		321,778
	Fastenal Co.		6,786		341,200
	Graco Inc.		3,186		228,181
	GrafTech International Ltd.		1,260		15,410
	Hubbell Inc., B		792		148,017
	Landstar System Inc.		612		101,017
	Lennox International Inc.		540		168,259
	Lincoln Electric Holdings Inc.		900		110,646
	ManpowerGroup Inc.		972		96,131
	MSA Safety Inc.		432		64,809
	MSC Industrial Direct Co. Inc., A		810		73,054
	Nordson Corp.		936		185,964
	Old Dominion Freight Line Inc.		1,638		393,792
	Otis Worldwide Corp.		4,716		322,810
	Robert Half International Inc.		2,250		175,657
	Rockwell Automation Inc.		1,296		344,010
	Rollins Inc.		4,490		154,546
	Schneider National Inc., B		1,026		25,619
	Snap-on Inc.		864		199,359
	Toro Co.		1,764		181,939
	Trane Technologies PLC		2,268		375,490
	W.W. Grainger Inc.		792		317,537
	Watsco Inc.		666		173,660
	Xylem Inc.		2,952		310,491

					6,961,368

	Information Technology 18.9%
	Amdocs Ltd.		1,764		123,745
a	Arista Networks Inc.		738		222,795
a	Aspen Technology Inc.		1,278		184,454
	Booz Allen Hamilton Holding Corp.		2,916		234,825
	Broadridge Financial Solutions Inc.		1,206		184,639
a	Cadence Design Systems Inc.		2,862		392,065
	CDW Corp.		2,412		399,789
a	Ciena Corp.		1,746		95,541
	Citrix Systems Inc.		2,070		290,545
	Dolby Laboratories Inc., A		432		42,647
a	F5 Networks Inc.		1,170		244,085
a	Fair Isaac Corp.		486		236,220



franklintempleton.com	Annual Report	31

FRANKLIN TEMPLETON ETF TRUST

STATEMENT OF INVESTMENTS

Franklin LibertyQ U.S. Mid Cap Equity ETF (continued)



		Shares		Value
	Common Stocks (continued)
	Information Technology (continued)
a	Fortinet Inc.		1,386	$	255,606
a	GrubHub Inc.		1,062		63,720
	HP Inc.		15,156		481,203
	Juniper Networks Inc.		4,824		122,192
	KLA Corp.		1,314		434,146
a	Manhattan Associates Inc.		1,134		133,109
	Maxim Integrated Products Inc.		1,800		164,466
	Monolithic Power Systems		522		184,376
	National Instruments Corp.		2,430		104,940
	NetApp Inc.		4,518		328,323
	Paychex Inc.		3,564		349,343
a	Paycom Software Inc.		558		206,493
a	Synopsys Inc.		1,458		361,263
	Teradyne Inc.		1,134		137,985
a	Tyler Technologies Inc.		450		191,039
	Ubiquiti Inc.		144		42,955
a	VeriSign Inc.		1,332		264,748
a	Vontier Corp.		828		25,064
	Western Union Co.		6,930		170,894
	Xilinx Inc.		2,286		283,235

					6,956,450

	Materials 2.4%
	AptarGroup Inc.		432		61,201
	Avery Dennison Corp.		1,458		267,762
	NewMarket Corp.		90		34,214
	Reliance Steel & Aluminum Co.		792		120,614
	RPM International Inc.		2,016		185,170
	Sonoco Products Co.		1,350		85,455
	The Scotts Miracle-Gro Co., A		558		136,693

					891,109

	Real Estate 6.9%
	Apple Hospitality REIT Inc.		3,744		54,550
	AvalonBay Communities Inc.		1,584		292,264
	Brixmor Property Group Inc.		3,186		64,453
	Camden Property Trust		1,350		148,379
	Coresite Realty Corp.		684		81,977
	CubeSmart		2,178		82,394
	Duke Realty Corp.		3,726		156,231
	EPR Properties		1,152		53,672
	First Industrial Realty Trust Inc.		1,332		60,992
	Highwoods Properties Inc.		1,548		66,471
	Host Hotels & Resorts Inc.		13,014		219,286
	Lamar Advertising Co., A		1,350		126,792
	National Retail Properties Inc.		3,132		138,027
	Realty Income Corp.		5,166		328,041
	Simon Property Group Inc.		2,304		262,126
	STORE Capital Corp.		2,538		85,023
	Ventas Inc.		5,814		310,119

					2,530,797

	Utilities 3.6%
	Ameren Corp.		3,636		295,825
	American Water Works Co. Inc.		1,926		288,746
	Consolidated Edison Inc.		4,086		305,633
	FirstEnergy Corp.		3,582		124,260



32	Annual Report	franklintempleton.com

FRANKLIN TEMPLETON ETF TRUST

STATEMENT OF INVESTMENTS

Franklin LibertyQ U.S. Mid Cap Equity ETF (continued)



		Shares		Value
	Common Stocks (continued)
	Utilities (continued)
	PPL Corp.		10,980	$	316,663

					1,331,127

	Total Investments before Short Term Investments (Cost $28,751,749)				36,739,360

	Short Term Investments 0.0%^†
	Investments from Cash Collateral Received for Loaned Securities 0.0%^†
	Money Market Funds 0.0%^†
c,d	Institutional Fiduciary Trust Portfolio, 0.01%		6,075		6,075

	Total Short Term Investments (Cost $6,075)				6,075

	Total Investments (Cost $28,757,824) 100.0%				36,745,435
	Other Assets, less Liabilities 0.0%^†				13,699

	Net Assets 100.0%			$	36,759,134

See Abbreviations on page 56.

^aNon-income producing.

^bA portion or all of the security is on loan at March 31, 2021. 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.

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



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

FRANKLIN TEMPLETON ETF TRUST

Financial Highlights

Franklin LibertyQ U.S. Small Cap Equity ETF



	Year Ended March 31,

	2021			2020			2019			2018^a

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

Net asset value, beginning of year	$	20.48		$	27.66		$	26.66		$	25.36


Income from investment operations^b:

Net investment income^c		0.28			0.39			0.47			0.33

Net realized and unrealized gains (losses)		16.15			(7.15	)		0.87			1.27


Total from investment operations		16.43			(6.76	)		1.34			1.60


Less distributions from net investment income		(0.38	)		(0.42	)		(0.34	)		(0.30	)


Net asset value, end of year	$	36.53		$	20.48		$	27.66		$	26.66


Total return^d		80.74%			(24.83)%			5.05%			6.34%

Ratios to average net assets^e

Expenses before waiver and payments by affiliates		0.35%			0.35%			0.35%			1.15%	^f

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

Net investment income		0.99%			1.41%			1.69%			1.40%

Supplemental data

Net assets, end of year (000’s)		$14,613			$13,310			$17,979			$2,666

Portfolio turnover rate^g		34.77%	^h		23.83%	^h		22.17%			23.99%

^aFor the period April 26, 2017 (commencement of operations) to March 31, 2018.

^cBased on average daily shares outstanding.

^eRatios are annualized for periods less than one year.

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

^gPortfolio turnover rate includes portfolio transactions that are executed as a result of the Fund offering and redeeming Creation Units solely for cash (“Cash creations”).

^hPortfolio turnover rate excluding cash creations was as follows:

34.77%

23.83%



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

FRANKLIN TEMPLETON ETF TRUST

Statement of Investments, March 31, 2021

Franklin LibertyQ U.S. Small Cap Equity ETF



		Shares		Value
	Common Stocks 99.9%
	Communication Services 3.4%
	Alaska Communications Systems Group Inc.		760	$	2,470
a,b	AMC Networks Inc., A		480		25,517
a	Bandwidth Inc., A		178		22,560
a	CarGurus Inc.		1,320		31,456
b	Cinemark Holdings Inc.		1,568		32,003
	Cogent Communications Holdings Inc.		888		61,059
	Entravision Communications Corp., A		568		2,295
a	Glu Mobile Inc.		2,048		25,559
a	IDT Corp., B		184		4,169
a	Liberty Latin America Ltd.		2,552		33,125
a	Liberty Latin America Ltd., A		864		11,085
a	Media Alpha Inc.		112		3,968
	Meredith Corp.		816		24,300
a	Ooma Inc.		192		3,043
	Scholastic Corp.		576		17,343
	Spok Holdings Inc.		352		3,692
a	TechTarget Inc.		424		29,447
	TEGNA Inc.		3,648		68,692
	Tribune Publishing Co.		248		4,462
a	TrueCar Inc.		2,336		11,178
a	WideOpenWest Inc.		1,000		13,590
a	Yelp Inc.		1,576		61,464


					492,477

	Consumer Discretionary 26.4%
a,b	1-800-FLOWERS.Com Inc.		608		16,787
	Abercrombie & Fitch Co., A		1,584		54,347
	Acushnet Holdings Corp.		808		33,395
a	America’s Car-Mart Inc.		136		20,722
	American Eagle Outfitters Inc.		3,320		97,077
a	American Public Education Inc.		296		10,546
a	Asbury Automotive Group Inc.		472		92,748
	Big Lots Inc.		1,096		74,857
	Bloomin’ Brands Inc.		2,040		55,182
	Buckle Inc.		768		30,167
a,b	Carparts.com Inc.		320		4,570
a	Chuy’s Holdings Inc.		352		15,601
	Citi Trends Inc.		272		22,788
	Core-Mark Holding Co. Inc.		856		33,119
	Cracker Barrel Old Country Store Inc.		584		100,962
a	Crocs Inc.		1,432		115,204
	Dave & Buster’s Entertainment Inc.		992		47,517
a	Deckers Outdoor Corp.		472		155,958
	Del Taco Restaurants Inc.		544		5,212
	Designer Brands Inc., A		1,320		22,968
	Dillard’s Inc., A		168		16,224
a	Dorman Products Inc.		528		54,194
a	Duluth Holdings Inc.		240		4,066
a	Envela Corp.		120		602
	Escalade Inc.		224		4,684
	Ethan Allen Interiors Inc.		624		17,229
a	Fiesta Restaurant Group Inc.		424		5,338
a,b	GameStop Corp., A		776		147,300
a	Genesco Inc.		328		15,580
a	Green Brick Partners Inc.		216		4,899
	Group 1 Automotive Inc.		392		61,854
	Hamilton Beach Brands Holding Co., A		152		2,756
	Haverty Furniture Cos. Inc.		472		17,554



franklintempleton.com	Annual Report	35

FRANKLIN TEMPLETON ETF TRUST

STATEMENT OF INVESTMENTS

Franklin LibertyQ U.S. Small Cap Equity ETF (continued)



		Shares		Value
	Common Stocks (continued)
	Consumer Discretionary (continued)
a	Helen of Troy Ltd.		512	$	107,858
a	Hibbett Sports Inc.		352		24,249
	Hooker Furniture Corp.		216		7,875
	Installed Building Products Inc.		360		39,917
a,b	iRobot Corp.		560		68,421
	Johnson Outdoors Inc., A		112		15,988
a	K12 Inc.		760		22,884
	Kontoor Brands Inc.		1,112		53,965
	La-Z-Boy Inc.		960		40,781
a	Lakeland Industries Inc.		112		3,120
	LCI Industries		472		62,436
a	LGI Homes Inc.		384		57,335
	Lifetime Brands Inc.		264		3,878
a	Liquidity Services Inc.		256		4,756
	Lithia Motors Inc.		416		162,277
a	Lumber Liquidators Holdings Inc.		288		7,235
a	Macy’s Inc.		4,376		70,847
a	Malibu Boats Inc., A		280		22,310
	Marine Products Corp.		168		2,733
a	MarineMax Inc.		200		9,872
	Monro Inc.		632		41,586
	Movado Group Inc.		400		11,380
a	MSG Networks Inc., A		344		5,174
	Murphy USA Inc.		488		70,545
a	National Vision Holdings Inc.		1,184		51,895
a,b	Nautilus Inc.		280		4,379
a	OneWater Marine Inc., A		112		4,476
	Oxford Industries Inc.		416		36,367
	Papa John’s International Inc.		560		49,638
a	Perdoceo Education Corp.		1,576		18,849
b	PetMed Express Inc.		456		16,040
	Rent-A-Center Inc.		1,280		73,805
	Rocky Brands Inc.		136		7,352
a	Sally Beauty Holdings Inc.		2,496		50,244
	Shoe Carnival Inc.		216		13,366
	Shutterstock Inc.		472		42,027
a	Signet Jewelers Ltd.		1,128		65,401
a	Sleep Number Corp.		600		86,094
	Smith & Wesson Brands Inc.		528		9,214
	Sonic Automotive Inc.		536		26,570
a	Sonos Inc.		1,432		53,657
a	Sportsman’s Warehouse Holdings Inc.		1,088		18,757
a	Stamps.com Inc.		352		70,228
	Standard Motor Products Inc.		456		18,960
	Steven Madden Ltd.		1,704		63,491
a	Stitch Fix Inc., A		1,216		60,241
	Strategic Education Inc.		446		40,992
	Sturm Ruger & Co. Inc.		344		22,728
	Superior Group of Cos. Inc.		232		5,897
a	Texas Roadhouse Inc., A		1,576		151,201
	The Cato Corp., A		448		5,376
	The Cheesecake Factory Inc.		1,080		63,191
a	The Container Store Group Inc.		440		7,322
a	The Lovesac Co.		160		9,056
a	The Michaels Cos. Inc.		1,416		31,067
	The ODP Corp.		1,128		48,831
a	Tilly’s Inc., A		512		5,796



36	Annual Report	franklintempleton.com

FRANKLIN TEMPLETON ETF TRUST

STATEMENT OF INVESTMENTS

Franklin LibertyQ U.S. Small Cap Equity ETF (continued)



		Shares		Value
	Common Stocks (continued)
	Consumer Discretionary (continued)
a	Tupperware Brands Corp.		1,296	$	34,227
a	Turtle Beach Corp.		144		3,840
a	Universal Technical Institute Inc.		448		2,616
a	Vera Bradley Inc.		440		4,444
a	Vista Outdoor Inc.		536		17,190
a,b	Waitr Holdings Inc.		832		2,438
	Weyco Group Inc.		128		2,769
	Wingstop Inc.		608		77,319
	Winmark Corp.		64		11,932
	Wolverine World Wide Inc.		1,648		63,151
a	XPEL Inc.		280		14,540
a	YETI Holdings Inc		1,288		93,006
a	Zumiez Inc.		408		17,503


					3,856,912

	Consumer Staples 5.7%
b	B&G Foods Inc., A		1,248		38,763
a	BellRing Brands Inc., A		600		14,166
a	Bridgford Foods Corp.		32		496
a	Celsius Holdings Inc		472		22,679
a	Central Garden & Pet Co.		216		12,530
a	Central Garden & Pet Co., A		856		44,418
	Coca-Cola Consolidated Inc.		96		27,723
a	Freshpet Inc.		728		115,614
	Ingles Markets Inc., A		368		22,687
	Inter Parfums Inc.		392		27,804
	John B. Sanfilippo & Son Inc.		184		16,628
	Lancaster Colony Corp.		392		68,741
a	Lifevantage Corp.		280		2,618
	Medifast Inc.		288		61,004
b	National Beverage Corp.		568		27,781
	Natural Grocers by Vitamin Cottage Inc.		200		3,510
	Natures Sunshine Products Inc.		200		3,992
	Oil-Dri Corp. of America		72		2,480
	PriceSmart Inc.		512		49,536
	SpartanNash Co.		832		16,332
a	The Chefs’ Warehouse Inc.		584		17,789
b	Tootsie Roll Industries Inc.		313		10,374
	Universal Corp.		528		31,147
a	USANA Health Sciences Inc.		192		18,739
	Vector Group Ltd.		2,864		39,953
	Village Super Market Inc., A		232		5,468
a	Vital Farms Inc.		96		2,097
	WD-40 Co.		352		107,775
	Weis Markets Inc.		240		13,565


					826,409

	Energy 0.5%
a	CONSOL Energy Inc.		576		5,599
	DHT Holdings Inc.		1,616		9,583
b	Frontline Ltd.		1,568		11,211
a	Renewable Energy Group Inc.		632		41,737
	Solaris Oilfield Infrastructure Inc.		464		5,693


					73,823

	Financials 8.4%
	1st Source Corp.		280		13,322
	A-Mark Precious Metals Inc.		48		1,728



franklintempleton.com	Annual Report	37

FRANKLIN TEMPLETON ETF TRUST

STATEMENT OF INVESTMENTS

Franklin LibertyQ U.S. Small Cap Equity ETF (continued)



		Shares		Value
	Common Stocks (continued)
	Financials (continued)
a	Amerant Bancorp Inc.		368	$	6,834
	Ames National Corp.		176		4,502
	Arrow Financial Corp.		272		9,060
	Banco Latinoamericano de Comercio Exterior SA		568		8,594
	BanCorpSouth Bank		1,376		44,693
	Bar Harbor Bankshares		280		8,238
	Cadence Bancorp		2,216		45,938
a	California Bancorp Inc.		120		2,137
	Capstead Mortgage Corp.		928		5,781
a	Carter Bankshares Inc.		296		4,132
	Central Pacific Financial Corp.		464		12,380
	Citizens & Northern Corp.		240		5,707
	Citizens Holding Company		72		1,433
	Codorus Valley Bancorp Inc.		176		3,240
	Community Bankers Trust Corp.		200		1,764
	Community Trust Bancorp Inc.		224		9,863
	Diamond Hill Investment Group Inc.		32		4,992
	Donegal Group Inc.		248		3,685
a	Donnelley Financial Solutions Inc.		272		7,570
	Enterprise Bancorp Inc.		128		4,163
	ESSA Bancorp Inc.		184		2,944
	Essent Group Ltd.		2,160		102,578
a	EZCORP Inc., A		1,098		5,457
	FBL Financial Group Inc., A		160		8,947
	Federated Hermes Inc., B		2,000		62,600
	FedNat Holding Co.		136		630
	Financial Institutions Inc.		328		9,935
	First Bancorp Inc.		184		5,371
	First Bancorp Puerto Rico		3,632		40,896
	First Business Financial Services Inc.		136		3,363
a	Genworth Financial Inc., A		10,808		35,883
	German American Bancorp Inc.		344		15,900
	Greene County Bancorp Inc.		56		1,401
	Hanmi Financial Corp.		464		9,155
	Heritage Financial Corp.		736		20,785
	Hope Bancorp Inc.		1,064		16,024
	Houlihan Lokey Inc.		696		46,291
	Investors Title Co.		8		1,328
	James River Group Holdings Ltd.		600		27,372
	Kinsale Capital Group Inc.		344		56,691
	LCNB Corp.		248		4,340
a	MainStreet Bancshares Inc.		104		2,159
	MFA Financial Inc.		4,136		16,834
	Middlefield Banc Corp.		88		1,844
	Midwestone Financial Group Inc.		288		8,919
	Moelis & Co., A		848		46,538
	National Western Life Group Inc., A		64		15,936
	NBT Bancorp Inc.		632		25,217
	Nelnet Inc., A		360		26,186
	Northfield Bancorp Inc.		1,032		16,429
	Northwest Bancshares Inc.		2,336		33,755
	Norwood Financial Corp.		104		2,767
	Ohio Valley Banc Corp.		64		1,554
a	Oportun Financial Corp.		272		5,633
	Penns Woods Bancorp Inc.		128		3,084
	Peoples Bancorp Inc.		280		9,288
	Peoples Financial Services Corp.		152		6,421



38	Annual Report	franklintempleton.com

FRANKLIN TEMPLETON ETF TRUST

STATEMENT OF INVESTMENTS

Franklin LibertyQ U.S. Small Cap Equity ETF (continued)



		Shares		Value
	Common Stocks (continued)
	Financials (continued)
	PJT Partners Inc., A		376	$	25,436
	Premier Financial Bancorp Inc.		256		4,759
	ProAssurance Corp.		880		23,549
	Protective Insurance Corp., B		176		4,025
	Provident Financial Services Inc.		1,368		30,479
	Pzena Investment Management Inc., A		312		3,285
	RBB Bancorp		240		4,865
	Red River Bancshares Inc.		88		4,929
	RLI Corp.		360		40,165
	Salisbury Bancorp Inc.		40		1,776
	Southern Missouri Bancorp Inc.		144		5,676
	StepStone Group Inc.		192		6,772
	Stewart Information Services Corp.		456		23,726
a	SWK Holdings Corp.		40		582
	The Bank of Princeton		96		2,748
	The Hingham Institution for Savings		16		4,540
	Tompkins Financial Corp.		312		25,802
	TrustCo Bank Corp. NY		2,048		15,094
	United Fire Group Inc.		400		13,920
	United Insurance Holdings Corp.		216		1,557
	United Security Bancshares		232		1,900
	Waddell & Reed Financial Inc., A		1,232		30,862
	Washington Trust Bancorp Inc.		256		13,217
	West Bancorp Inc.		312		7,516
	Westamerica BanCorp		376		23,605
	Westwood Holdings Group Inc.		168		2,429


					1,233,425

	Health Care 10.1%
a	Addus Homecare Corp.		280		29,285
a	AMN Healthcare Services Inc.		1,096		80,775
a	AtriCure Inc.		832		54,513
	Atrion Corp.		32		20,522
a	Axogen Inc.		560		11,346
a	Blueprint Medicines Corp.		504		49,004
a	Cardiovascular Systems Inc.	��	832		31,899
a	Catalyst Pharmaceuticals Inc.		1,624		7,487
a	Champions Oncology Inc.		80		904
a	Coherus Biosciences Inc.		848		12,389
a	Community Health Systems Inc.		1,872		25,309
	CONMED Corp.		512		66,862
a	Corcept Therapeutics Inc.		2,416		57,477
a	CorVel Corp.		168		17,235
a	Cross Country Healthcare Inc.		656		8,193
a	Eagle Pharmaceuticals Inc.		192		8,014
a	Electromed Inc.		112		1,180
a	Emergent BioSolutions Inc.		608		56,489
a	Enanta Pharmaceuticals Inc.		368		18,150
a	Fonar Corp.		80		1,447
a	Forma Therapeutics Holdings Inc.		168		4,707
a	Hanger Inc.		832		18,986
a	Inari Medical Inc.		80		8,560
a	InfuSystem Holdings Inc.		216		4,398
a	Innoviva Inc.		608		7,266
a	Inogen Inc.		336		17,647
	Invacare Corp.		528		4,235
a	iRadimed Corp.		104		2,680
a	Ironwood Pharmaceuticals Inc.		2,592		28,979



franklintempleton.com	Annual Report	39

FRANKLIN TEMPLETON ETF TRUST

STATEMENT OF INVESTMENTS

Franklin LibertyQ U.S. Small Cap Equity ETF (continued)



		Shares		Value
	Common Stocks (continued)
	Health Care (continued)
a	Keros Therapeutics Inc.		120	$	7,386
a	Lantheus Holdings Inc.		848		18,122
	LeMaitre Vascular Inc.		376		18,341
a	LHC Group Inc.		576		110,137
	Luminex Corp.		584		18,630
a	Mednax Inc.		824		20,987
a	Meridian Bioscience Inc.		920		24,150
a	Merit Medical Systems Inc.		1,144		68,503
	National Healthcare Corp.		296		23,061
	National Research Corp., A		272		12,738
a	Neogen Corp.		816		72,534
a	NeoGenomics Inc.		968		46,687
a	Omeros Corp.		728		12,958
a	OraSure Technologies Inc.		896		10,456
a	Orthofix International Nv		376		16,300
	Owens & Minor Inc.		744		27,967
	Patterson Cos. Inc.		1,672		53,420
	Phibro Animal Health Corp.		488		11,907
a	Prestige Consumer Healthcare Inc.		976		43,022
a	Repro-Med Systems Inc.		408		1,436
a	Sharps Compliance Corp.		192		2,759
	Simulations Plus Inc.		280		17,707
a	STAAR Surgical Co.		704		74,209
a	Supernus Pharmaceuticals Inc.		1,136		29,741
a	Surmodics Inc.		184		10,317
a	Tactile Systems Technology Inc.		408		22,232
a	The Joint Corp.		264		12,770
	Utah Medical Products Inc.		72		6,235
a	Viemed Healthcare Inc.		528		5,343
a	Vocera Communications Inc.		656		25,230


					1,481,223

	Industrials 19.5%
	ABM Industries Inc.		1,336		68,149
	Acco Brands Corp.		1,784		15,057
a	Aegion Corp.		520		14,950
a	Air Transport Services Group Inc.		840		24,578
	Alamo Group Inc.		176		27,482
a	Allegiant Travel Co.		248		60,527
	Allied Motion Technologies Inc.		152		7,802
a,b	Alpha Pro Tech Ltd.		200		1,952
	Applied Industrial Technologies Inc.		848		77,312
a	Atlas Air Worldwide Holdings Inc.		232		14,022
	BGSF Inc.		200		2,800
	Boise Cascade Co.		352		21,060
	Brady Corp., A		1,136		60,719
a	Builders FirstSource Inc.		3,867		179,313
a	Casella Waste Systems Inc., A		768		48,822
a	Cimpress PLC		352		35,246
	Comfort Systems USA Inc.		320		23,926
	CompX International Inc.		32		576
	Costamare Inc.		824		7,927
a	Covenant Logistics Group Inc.		264		5,436
	CRA International Inc.		120		8,957
	CSW Industrials Inc.		272		36,720
	Deluxe Corp.		992		41,624
	Ennis Inc.		544		11,614
	Exponent Inc.		1,216		118,499



40	Annual Report	franklintempleton.com

FRANKLIN TEMPLETON ETF TRUST

STATEMENT OF INVESTMENTS

Franklin LibertyQ U.S. Small Cap Equity ETF (continued)



		Shares		Value
	Common Stocks (continued)
	Industrials (continued)
	Forward Air Corp.		624	$	55,417
a	Franklin Covey Co.		216		6,111
	Franklin Electric Co. Inc.		816		64,415
a	GMS Inc.		664		27,722
	H&E Equipment Services Inc.		576		21,888
	Healthcare Services Group Inc.		1,472		41,260
	Heartland Express Inc.		1,104		21,616
	Heidrick & Struggles International Inc.		512		18,289
a	Heritage-Crystal Clean Inc.		384		10,418
	Herman Miller Inc.		1,280		52,672
	Hillenbrand Inc.		1,296		61,832
	HNI Corp.		1,008		39,877
	Hurco Cos. Inc.		104		3,671
	Hyster-Yale Materials Handling Inc.		192		16,727
a	IBEX Ltd.		48		1,056
	ICF International Inc.		368		32,163
a	IES Holdings Inc.		120		6,049
	Insperity Inc.		752		62,973
	Interface Inc.		1,032		12,879
	John Bean Technologies Corp.		520		69,337
	Kadant Inc.		224		41,442
	KAR Auction Services Inc.		1,952		29,280
	Kelly Services Inc., A		680		15,144
	Kforce Inc.		520		27,872
	Kimball International Inc., B		866		12,124
	Knoll Inc.		1,088		17,963
	Korn Ferry		1,384		86,320
a	Lawson Products Inc.		104		5,393
	LSI Industries Inc.		360		3,071
	Luxfer Holdings PLC		248		5,277
	Marten Transport Ltd.		976		16,563
a	Mastech Digital Inc.		56		986
	McGrath RentCorp		472		38,067
	Miller Industries Inc.		216		9,977
	National Presto Industries Inc.		104		10,615
	NL Industries Inc.		80		596
	Omega Flex Inc.		64		10,104
a	Orion Energy Systems Inc.		256		1,782
a	P.A.M. Transportation Services Inc.		40		2,468
	Park-Ohio Holdings Corp.		120		3,779
	Preformed Line Products Co.		56		3,850
a	Radiant Logistics Inc.		784		5,449
	Rush Enterprises Inc., B		136		6,132
a	SAIA Inc.		656		151,261
	Simpson Manufacturing Co. Inc.		928		96,262
a	SiteOne Landscape Supply Inc.		744		127,031
	Standex International Corp.		232		22,172
	Steelcase Inc., A		2,016		29,010
	Systemax Inc.		296		12,172
	Tennant Co.		368		29,400
	Tetra Tech Inc.		872		118,348
a	Transcat Inc.		144		7,068
	Triton International Ltd./Bermuda		560		30,794
	UFP Industries Inc.		992		75,233
	UniFirst Corp.		280		62,639
	Universal Logistics Holdings Inc.		160		4,210
a	US Xpress Enterprises Inc., A		472		5,546



franklintempleton.com	Annual Report	41

FRANKLIN TEMPLETON ETF TRUST

STATEMENT OF INVESTMENTS

Franklin LibertyQ U.S. Small Cap Equity ETF (continued)



		Shares		Value
	Common Stocks (continued)
	Industrials (continued)
a	Vectrus Inc.		152	$	8,123
a	Veritiv Corp.		120		5,105
a	Vicor Corp.		376		31,971
	Watts Water Technologies Inc., A		544		64,633
	Werner Enterprises Inc.		1,512		71,321


					2,847,995

	Information Technology 13.8%
a	A10 Networks Inc.		1,272		12,224
a	Alarm.com Holdings Inc.		1,048		90,526
a	Altair Engineering Inc.		840		52,559
	American Software Inc., A		584		12,089
a	Appfolio Inc.		296		41,857
a	Avid Technology Inc.		664		14,017
	Badger Meter Inc.		608		56,586
a	Brightcove Inc.		384		7,726
a	Calix Inc.		744		25,787
a	Cambium Networks Corp.		56		2,616
a	CEVA Inc.		432		24,257
a	ChannelAdvisor Corp.		568		13,376
a	Clearfield Inc.		104		3,133
a	CommVault Systems Inc.		856		55,212
a,b	Corsair Gaming Inc.		136		4,527
	CSG Systems International Inc.		728		32,680
a	CyberOptics Corp.		104		2,701
	Daktronics Inc.		736		4,615
a	eGain Corp.		400		3,796
a	ePlus Inc.		248		24,711
	EVERTEC Inc.		1,112		41,389
a	Genasys Inc.		488		3,265
	Hackett Group Inc.		568		9,309
a	Information Services Group Inc.		680		2,992
a	Insight Enterprises Inc.		696		66,412
a	Intelligent Systems Corp.		120		4,909
a	Iteris Inc.		752		4,640
a	J2 Global Inc.		1,080		129,449
a	Lattice Semiconductor Corp.		1,944		87,519
	ManTech International Corp., A		560		48,692
	MAXIMUS Inc.		1,128		100,437
	Methode Electronics Inc.		584		24,516
a	MicroStrategy Inc.		176		119,469
a	Mimecast Ltd.		824		33,133
a	Napco Security Technologies Inc.		240		8,359
	NIC Inc.		1,416		48,045
a	Novanta Inc.		736		97,071
	NVE Corp.		104		7,290
a	OSI Systems Inc.		288		27,677
	PC Connection Inc.		216		10,020
	PCTEL Inc.		256		1,779
a	Ping Identity Holding Corp.		432		9,474
	Power Integrations Inc.		952		77,569
	Progress Software Corp.		880		38,773
	QAD Inc., A		224		14,914
a	Qualys Inc.		760		79,633
a	Quantum Corp.		432		3,599
a	Rimini Street Inc.		408		3,660
a	Semtech Corp.		1,112		76,728
a	Silicon Laboratories Inc.		888		125,270



42	Annual Report	franklintempleton.com

FRANKLIN TEMPLETON ETF TRUST

STATEMENT OF INVESTMENTS

Franklin LibertyQ U.S. Small Cap Equity ETF (continued)



		Shares		Value
	Common Stocks (continued)
	Information Technology (continued)
a	Smith Micro Software Inc.		512	$	2,819
a	SPS Commerce Inc.		800		79,448
a	Sykes Enterprises Inc.		680		29,974
	Vishay Intertechnology Inc.		2,288		55,095
a	Workiva Inc		360		31,774
	Xperi Holding Corp.		1,536		33,439


					2,023,536

	Materials 2.3%
b	Caledonia Mining Corp PLC		176		2,515
	Compass Minerals International Inc.		304		19,067
	FutureFuel Corp.		360		5,231
	Greif Inc., A		536		30,552
	Greif Inc., B		128		7,327
	Kronos Worldwide Inc.		208		3,182
	Myers Industries Inc.		744		14,701
a	Orion Engineered Carbons SA		992		19,562
	Quaker Chemical Corp.		232		56,555
	Schweitzer-Mauduit International Inc.		648		31,733
	Sensient Technologies Corp.		840		65,520
	Stepan Co.		312		39,658
	Warrior Met Coal Inc.		952		16,308
	Worthington Industries Inc.		336		22,542


					334,453

	Professional Services 0.1%
	Resources Connection Inc.		776		10,507

	Real Estate 5.2%
	Agree Realty Corp.		896		60,310
	American Assets Trust Inc.		880		28,547
	Broadstone Net Lease Inc.		376		6,881
	CoreCivic Inc.		2,568		23,240
	CorePoint Lodging Inc.		552		4,985
	Diversified Healthcare Trust		3,328		15,908
	Franklin Street Properties Corp.		2,016		10,987
	Healthcare Realty Trust Inc.		1,824		55,304
	Kite Realty Group Trust		1,200		23,148
	Lexington Realty Trust		5,504		61,149
a	Marcus & Millichap Inc.		248		8,358
	Monmouth Real Estate Investment Corp., A		1,736		30,710
	Newmark Group Inc.		1,904		19,050
	Piedmont Office Realty Trust Inc., A		1,800		31,266
	Preferred Apartment Communities Inc., A		1,072		10,559
	PS Business Parks Inc.		464		71,725
	QTS Realty Trust Inc., A		1,184		73,455
	RE/MAX Holdings Inc., A		416		16,386
	Retail Properties of America Inc., A		3,072		32,195
	RPT Realty		1,600		18,256
	Service Properties Trust		1,584		18,786
b	Tanger Factory Outlet Centers Inc.		1,904		28,807
	The RMR Group Inc., A		232		9,468
	Uniti Group Inc.		2,952		32,561
	Universal Health Realty Income Trust		248		16,809
	Urstadt Biddle Properties, A		600		9,990
	Whitestone REIT		744		7,217
a	Xenia Hotels & Resorts Inc.		1,664		32,448


					758,505



franklintempleton.com	Annual Report	43

FRANKLIN TEMPLETON ETF TRUST

STATEMENT OF INVESTMENTS

Franklin LibertyQ U.S. Small Cap Equity ETF (continued)



		Shares		Value
	Common Stocks (continued)
	Utilities 4.5%
	American States Water Co.		760	$	57,471
	Artesian Resources Corp., A		152		5,986
	Avista Corp.		1,336		63,794
	Black Hills Corp.		1,192		79,590
	California Water Service Group		1,008		56,791
	Clearway Energy Inc., A		672		17,815
	Clearway Energy Inc., C		1,488		41,872
	Consolidated Water Co. Ltd.		248		3,336
	Genie Energy Ltd., B		288		1,826
	Global Water Resources Inc.		224		3,653
	MGE Energy Inc.		728		51,972
	NorthWestern Corp.		920		59,984
	PNM Resources Inc.		1,560		76,518
	SJW Group		512		32,251
a	Southwest Gas Holdings Inc.		1,096		75,306
b	Spark Energy Inc., A		264		2,819
	Unitil Corp.		280		12,793
	York Water Co.		280		13,712


					657,489

	Total Investments before Short Term Investments (Cost $12,088,691)				14,596,754

	Short Term Investments 1.4%
	Investments from Cash Collateral Received for Loaned Securities 1.4%
	Money Market Funds 1.4%
c,d	Institutional Fiduciary Trust Portfolio, 0.01%		209,649		209,649

	Total Short Term Investments (Cost $209,649)				209,649

	Total Investments (Cost $12,298,340) 101.3%				14,806,403
	Other Assets, less Liabilities (1.3)%				(193,356	)

	Net Assets 100.0%			$	14,613,047

See Abbreviations on page 56.

^aNon-income producing.

^bA portion or all of the security is on loan at March 31, 2021. See Note 1(c).

^cThe rate shown is the annualized seven-day effective yield at period end.

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



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

FRANKLIN TEMPLETON ETF TRUST

FINANCIAL STATEMENTS

Statements of Assets and Liabilities

March 31, 2021



	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	$	1,148,390,238	$	28,751,749	$	12,088,691
Cost – Non-controlled affiliates (Note 3c)		735,495		6,075		209,649

Value – Unaffiliated issuers+	$	1,350,393,906	$	36,739,360	$	14,596,754
Value – Non-controlled affiliates (Note 3c)		735,495		6,075		209,649
Cash		1,137,692		—		12,703
Receivables:
Capital shares sold		72,074,903		—		—
Dividends		1,519,371		34,912		8,227
Investment securities sold		1,986,129		—		—
Variation margin on futures contracts		8,843		—		—
Deposits with brokers for:
Futures contracts		99,000		—		—

Total assets		1,427,955,339		36,780,347		14,827,333

Liabilities:
Payables:
Investment securities purchased		71,648,648		—		—
Capital shares redeemed		1,997,654		—		—
Management fees		167,025		9,205		4,637
Funds advanced by custodian		—		5,933		—
Payable upon return of securities loaned		735,495		6,075		209,649

Total liabilities		74,548,822		21,213		214,286

Net assets, at value	$	1,353,406,517	$	36,759,134	$	14,613,047

Net assets consist of:
Paid-in capital	$	1,243,101,315	$	29,380,878	$	13,698,260
Total distributable earnings (loss)		110,305,202		7,378,256		914,787

Net assets, at value	$	1,353,406,517	$	36,759,134	$	14,613,047

Shares outstanding		33,800,000		900,000		400,000

Net asset value per share	$	40.04	$	40.84	$	36.53


+Includes securities loaned		720,912		5,925		204,703



franklintempleton.com	The accompanying notes are an integral part of these financial statements. \| Annual Report	45

FRANKLIN TEMPLETON ETF TRUST

FINANCIAL STATEMENTS

Statements of Operations

for the year ended March 31, 2021



	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: (net of foreign taxes)^a
Unaffiliated issuers	$	30,042,630		$	400,620		$	177,167
Interest from securities loaned:
Unaffiliated issuers (net of fees and rebates)		41,863			1,569			4,476

Total investment income		30,084,493			402,189			181,643

Expenses:
Management fees (Note 3a)		2,038,360			75,557			47,407

Total expenses		2,038,360			75,557			47,407
Expenses waived/paid by affiliates (Note 3c)		(2,857	)		(132	)		(423	)

Net expenses		2,035,503			75,425			46,984

Net investment income		28,048,990			326,764			134,659

Realized and unrealized gains (losses):
Net realized gain (loss) from:
Investments:
Unaffiliated issuers		(76,706,325	)		(475,656	)		(583,966	)
In-kind redemptions		153,078,336			637,024			839,349
Futures contracts		1,035,304			—			—

Net realized gain (loss)		77,407,315			161,368			255,383

Net change in unrealized appreciation (depreciation) on:
Investments:
Unaffiliated issuers		419,630,574			10,818,121			7,366,599
Futures contracts		126,552			—			—

Net change in unrealized appreciation (depreciation)		419,757,126			10,818,121			7,366,599

Net realized and unrealized gain (loss)		497,164,441			10,979,489			7,621,982

Net increase (decrease) in net assets resulting from operations	$	525,213,431		$	11,306,253		$	7,756,641


^aForeign taxes withheld on dividends	$	15	$	3	$	110



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

FRANKLIN TEMPLETON ETF TRUST

FINANCIAL STATEMENTS

Statements of Changes in Net Assets



	Franklin LibertyQ U.S. Equity ETF						Franklin LibertyQ U.S. Mid Cap Equity ETF

	Year Ended March 31, 2021			Year Ended March 31, 2020			Year Ended March 31, 2021			Year Ended March 31, 2020
Increase (decrease) in net assets:
Operations:
Net investment income	$	28,048,990		$	29,448,084		$	326,764		$	212,642
Net realized gain (loss)		77,407,315			56,693,326			161,368			534,820
Net change in unrealized appreciation (depreciation)		419,757,126			(258,171,969	)		10,818,121			(3,745,164	)

Net increase (decrease) in net assets resulting from operations		525,213,431			(172,030,559	)		11,306,253			(2,997,702	)

Distributions to shareholders		(29,458,618	)		(26,642,033	)		(316,682	)		(202,973	)

Capital share transactions: (Note 2)		(453,931,621	)		502,001,368			12,051,367			6,306,864

Net increase (decrease) in net assets		41,823,192			303,328,776			23,040,938			3,106,189
Net assets:
Beginning of year		1,311,583,325			1,008,254,549			13,718,196			10,612,007

End of year	$	1,353,406,517		$	1,311,583,325		$	36,759,134		$	13,718,196



franklintempleton.com	The accompanying notes are an integral part of these financial statements. \| Annual Report	47

FRANKLIN TEMPLETON ETF TRUST

FINANCIAL STATEMENTS

Statements of Changes in Net Assets



	Franklin LibertyQ U.S. Small Cap Equity ETF

	Year Ended March 31, 2021			Year Ended March 31, 2020
Increase (decrease) in net assets:
Operations:
Net investment income	$	134,659		$	291,733
Net realized gain (loss)		255,383			76,852
Net change in unrealized appreciation (depreciation)		7,366,599			(5,286,481	)

Net increase (decrease) in net assets resulting from operations		7,756,641			(4,917,896	)

Distributions to shareholders		(167,502	)		(314,153	)

Capital share transactions: (Note 2)		(6,285,768	)		562,588

Net increase (decrease) in net assets		1,303,371			(4,669,461	)
Net assets:
Beginning of year		13,309,676			17,979,137

End of year	$	14,613,047		$	13,309,676



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

FRANKLIN TEMPLETON ETF TRUST

Notes to Financial Statements

1. Organization and Significant Accounting Policies

Franklin Templeton ETF Trust (Trust) is registered under the Investment Company Act of 1940 (1940 Act) as an open-end management investment company, consisting of forty-five separate funds, three of which are included in this report (Funds) and applies the specialized accounting and reporting guidance in U.S. Generally Accepted Accounting Principles (U.S. GAAP). Each of the Funds are an exchange traded fund (ETF) and seek to provide the investment results that closely correspond, before fees and expenses, to the performance of each Fund’s corresponding underlying index.

The following summarizes the Funds’ significant accounting policies.

a. Financial Instrument Valuation

The Funds may utilize independent pricing services, quotations from securities and financial instrument dealers, and other market sources to determine fair value.

Equity securities listed on an exchange or on the NASDAQ National Market System are valued at the last quoted sale price or the official closing price of the day, respectively. Over-the-counter (OTC) securities are valued within the range of the most recent quoted bid and ask prices. Securities that trade in multiple markets or on multiple exchanges are valued according to the broadest and most representative market. Certain equity securities are valued based upon fundamental characteristics or relationships to similar securities.

Investments 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.



franklintempleton.com	Annual Report	49

FRANKLIN TEMPLETON ETF TRUST

NOTES TO FINANCIAL STATEMENTS

1. Organization and Significant Accounting Policies (continued)

a. Financial Instrument Valuation (continued)

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. Derivative Financial Instruments

Termination events applicable to the Funds include failure of the Funds to maintain certain net asset levels and/or limit the decline in net assets over various periods of time. In the event of default or early termination, the ISDA master agreement gives the non-defaulting party the right to net and close-out all transactions traded, whether or not arising under the ISDA agreement, to one net amount payable by one counterparty to the other. However, absent an event of default or early termination, OTC derivative assets and liabilities are presented gross and not offset in the Statements of

Assets and Liabilities. Early termination by the counterparty may result in an immediate payment by the Funds of any net liability owed to that counterparty under the ISDA agreement.

See Note 7 regarding other derivative information.

c. Securities Lending



50	Annual Report	franklintempleton.com

FRANKLIN TEMPLETON ETF TRUST

NOTES TO FINANCIAL STATEMENTS

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

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

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



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NOTES TO FINANCIAL STATEMENTS

2. Shares of Beneficial Interest (continued)

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 March 31, 2021, there were an unlimited number of shares authorized (without par value). Transactions in the Funds’ shares were as follows:



	Franklin LibertyQ U.S. Equity ETF

	Year Ended March 31, 2021						Year Ended March 31, 2020

	Shares			Amount			Shares			Amount
Shares sold		11,400,000		$	412,925,317			25,800,000		$	846,426,405
Shares redeemed		(25,100,000	)		(866,856,938	)		(10,400,000	)		(344,425,037	)

Net increase (decrease)		(13,700,000	)	$	(453,931,621	)		15,400,000		$	502,001,368


	Franklin LibertyQ U.S. Mid Cap Equity ETF

	Year Ended March 31, 2021						Year Ended March 31, 2020

	Shares			Amount			Shares			Amount
Shares sold		400,000		$	13,938,821			300,000		$	9,365,575
Shares redeemed		(50,000	)		(1,887,454	)		(100,000	)		(3,058,711	)

Net increase (decrease)		350,000		$	12,051,367			200,000		$	6,306,864


	Franklin LibertyQ U.S. Small Cap Equity ETF

	Year Ended March 31, 2021						Year Ended March 31, 2020

	Shares			Amount			Shares			Amount
Shares sold		100,000		$	2,973,184			250,000		$	6,943,400
Shares redeemed		(350,000	)		(9,258,952	)		(250,000	)		(6,380,812	)

Net increase (decrease)		(250,000	)	$	(6,285,768	)		—		$	562,588

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



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NOTES TO FINANCIAL STATEMENTS

a. Management Fees

The Funds pay a unified management fee to Advisers whereby Advisers has agreed to reimburse the Funds’ acquired fund fees and expenses (if any) and pay all of the ordinary operating expenses of the Funds, including custody, transfer agency, and Trustee fees and expenses, among others, but excluding payments under the Funds’ Rule 12b-1 plan (if any), brokerage expenses (including any costs incidental to transactions in portfolio securities or instruments), taxes, interest (including borrowing costs and dividend expenses on securities sold short and overdraft charges), litigation expenses (including litigation to which the Trust or a Fund may be a party and indemnification of the Trustees and officers with respect thereto), and other non routine or extraordinary expenses. The 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%

b. Administrative Fees

c. Investments in Affiliated Management Investment Companies



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

Franklin LibertyQ U.S. Equity ETF																Income from Securities loaned
Non-Controlled Affiliates																Income from Securities loaned

Institutional Fiduciary Trust Money Market Portfolio 0.01%	$	911,900	$	19,252,231	$	(19,428,636	)	$	—	$	—	$	735,495		735,495	$	—


Franklin LibertyQ U.S. Mid Cap Equity ETF																Income from Securities loaned
Non-Controlled Affiliates																Income from Securities loaned

Institutional Fiduciary Trust Money Market Portfolio 0.01%	$	75,900	$	1,159,036	$	(1,228,861	)	$	—	$	—	$	6,075		6,075	$	—


Franklin LibertyQ U.S. Small Cap Equity ETF																Income from Securities loaned
Non-Controlled Affiliates																Income from Securities loaned

Institutional Fiduciary Trust Money Market Portfolio 0.01%	$	131,291	$	3,544,362	$	(3,466,004	)	$	—	$	—	$	209,649		209,649	$	—



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NOTES TO FINANCIAL STATEMENTS

3. Transactions with Affiliates (continued)

d. Other Affiliated Transactions

At March 31, 2021, the shares of Franklin LibertyQ U.S. Equity ETF were owned by the following entities:



Funds	Shares		Percentage of Outstanding Shares^a

Franklin LibertyQ U.S. Equity ETF
Franklin Moderate Allocation Fund		4,072,331		12.0%
Franklin Growth Allocation Fund		3,532,433		10.5%
Franklin 529 Portfolios		10,883,321		32.2%

		18,488,085		54.7%

^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, 2021, the capital loss carryforwards were as follows:



	Franklin LibertyQ U.S. Equity ETF		Franklin LibertyQ U.S. Mid Cap Equity ETF		Franklin LibertyQ U.S. Small Cap Equity ETF
Capital loss carryforwards not subject to expiration:
Short term	$	45,674,804	$	265,363	$	635,288
Long term		48,033,544		347,479		944,858

Total capital loss carryforwards	$	93,708,348	$	612,842	$	1,580,146

The tax character of distributions paid during the years ended March 31, 2021 and 2020, 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

	2021		2020		2021		2020		2021		2020
Distributions paid from ordinary income	$	29,458,618	$	26,642,033	$	316,682	$	202,973	$	167,502	$	314,153

At March 31, 2021, the cost of investments and net unrealized appreciation (depreciation) and undistributed ordinary income for income tax purposes were as follows:



	Franklin LibertyQ U.S. Equity ETF			Franklin LibertyQ U.S. Mid Cap Equity ETF			Franklin LibertyQ U.S. Small Cap Equity ETF
Cost of investments	$	1,149,806,479		$	28,792,942		$	12,311,524

Unrealized appreciation	$	219,207,262		$	8,115,319		$	3,085,470
Unrealized depreciation		(17,884,340	)		(162,826	)		(590,591	)

Net unrealized appreciation (depreciation)	$	201,322,922		$	7,952,493		$	2,494,879

Distributable earnings – undistributed ordinary income	$	2,690,628		$	38,605		$	54

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



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NOTES TO FINANCIAL STATEMENTS

5. Investment Transactions

Purchases and sales of investments (excluding short term securities and in-kind transactions, if any) for the year ended March 31, 2021, 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	$	332,823,247	$	6,290,769	$	4,668,884
Sales	$	334,311,976	$	6,228,571	$	4,666,994

In-kind transactions associated with creation and redemptions for the year ended March 31, 2021, 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	$	399,679,147	$	13,921,496	$	2,969,253
Value of Securities Delivered	$	847,114,609	$	1,881,255	$	9,246,819

At March 31, 2021, 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	$	735,495	$	6,075	$	209,649

^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. Novel Coronavirus Pandemic

7. Other Derivative Information

At March 31, 2021, 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	$	15,510	^a	Variation margin on futures contracts	$	—

Totals		$	15,510			$	—



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NOTES TO FINANCIAL STATEMENTS

7. Other Derivative Information (continued)

For the year ended March 31, 2021, the effect of derivative contracts in the Funds’ Statements of Operations was as follows:

Derivative Contracts
Not Accounted for as
Hedging Instruments

Statements of
Operations Locations

Net Realized
Gain (Loss)
for the Year

Statements of
Operations Locations

Net Change in
Unrealized
Appreciation
(Depreciation)
for the Year

Franklin LibertyQ U.S. Equity ETF

Net realized gain (loss) from:

Net change in unrealized appreciation (depreciation) on:

Equity contracts

Future Contracts

1,035,304

Future Contracts

126,552

For the year ended March 31, 2021, the average month end notional amount of futures contracts was $2,548,266.

See Note 1(b) 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.

At March 31, 2021, all of the Funds’ investments in financial instruments carried at fair value were valued using Level 1 inputs.

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
REIT		Real Estate Investment Trust



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Report of Independent Registered Public Accounting Firm

To the Board of Trustees of Franklin Templeton ETF Trust and Shareholders of Franklin LibertyQ U.S. Equity ETF, Franklin LibertyQ U.S. Mid Cap Equity ETF, and Franklin LibertyQ U.S. Small Cap Equity ETF

Opinions on the Financial Statements

We have audited the accompanying statements of assets and liabilities, including the statements of investments, of Franklin LibertyQ U.S. Equity ETF, Franklin LibertyQ U.S. Mid Cap Equity ETF, and Franklin LibertyQ U.S. Small Cap Equity ETF (three of the funds constituting Franklin Templeton ETF Trust, hereafter collectively referred to as the “Funds”) as of March 31, 2021, the related statements of operations for the year ended March 31, 2021, the statements of changes in net assets for each of the two years in the period ended March 31, 2021, including the related notes, and the financial highlights for each of the periods indicated therein (collectively referred to as the “financial statements”). In our opinion, the financial statements present fairly, in all material respects, the financial position of each of the Funds as of March 31, 2021 , the results of each of their operations for the year then ended, the changes in each of their net assets for each of the two years in the period ended March 31, 2021 and each of the financial highlights for each of the periods indicated therein in conformity with accounting principles generally accepted in the United States of America.

Basis for Opinions

PricewaterhouseCoopers LLP

San Francisco, California

May 20, 2021

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



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Tax Information (unaudited)



Franklin LibertyQ U.S. Equity ETF		Franklin LibertyQ U.S. Mid Cap Equity ETF		Franklin LibertyQ U.S. Small Cap Equity ETF
	100.00%		100.00%		100.00%



Franklin LibertyQ U.S. Equity ETF		Franklin LibertyQ U.S. Mid Cap Equity ETF		Franklin LibertyQ U.S. Small Cap Equity ETF
	$28,343,104		$356,567		$151,507



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Board Members and Officers

Independent Board Members



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

Rohit Bhagat (1964) One Franklin Parkway San Mateo, CA 94403-1906	Lead Independent Trustee	Since 2016	49	AssetMark Financial Holdings, Inc. (investment solutions) (2018-present) and PhonePe (December 2020) (payment and financial services); formerly, Axis Bank (financial) (2013-2021), FlipKart Limited (2019-December 2020) (eCommerce company); CapFloat Financial Services Pvt., Ltd. (non-banking finance company) (2018) and Zentific Investment Management (hedge fund) (2015-2018).

Principal Occupation During at Least the Past 5 Years:
Managing Member, Mukt Capital, LLC (private investment firm) (2014-present); Advisor, Optimal Asset Management (investment technology and advisory services company) (2015-present); Chief Executive Officer and Director, FinTech Evolution Acquisition (eCommerce company) (February 2021-present); and formerly, Chairman, Asia Pacific, BlackRock (2009-2012); Global Chief Operating Officer, Barclays Global Investors (investment management) (2005-2009); and Senior Partner, The Boston Consulting Group (management consulting) (1992-2005).

Deborah D. McWhinney (1955) One Franklin Parkway San Mateo, CA 94403-1906	Trustee	Since 2020	49	IHS Markit (information services) (2015-present), Borg Warner (automotive) (2018-present), LegalShield (consumer services) (2020-present); and formerly, Fluor Corporation (construction and engineering) (2014-2020) and Focus Financial Partner, LLC (financial services) (2018-2020).

Principal Occupation During at Least the Past 5 Years:
Director of various companies; and formerly, Board Member, Lloyds Banking Group (2015-2018) (financial institution)) and Fresenius Medical Group (2016-2018) (healthcare); Chief Executive Officer (2013-2014) and Chief Operating Officer (2011-2013), CitiGroup Global Enterprise Payments (financial services); and President, Citi’s Personal Banking and Wealth Management (2009-2011).

Anantha K. Pradeep (1963) One Franklin Parkway San Mateo, CA 94403-1906	Trustee	Since 2016	49	None

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



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Interested Board Members and Officers



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

**Jennifer M. Johnson (1964) One Franklin Parkway San Mateo, CA 94403-1906	Trustee and Chairperson of the Board	Since 2016	60	None

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

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

Principal Occupation During at Least the Past 5 Years:
Deputy General Counsel, Franklin Templeton; and officer of some of the other subsidiaries of Franklin Resources, Inc. and of 42 of the investment companies in Franklin Templeton.

Breda M. Beckerle (1958) 280 Park Avenue New York, NY 10017	Chief Compliance Officer	Since November 2020	Not Applicable	Not Applicable

Principal Occupation During at Least the Past 5 Years:
Chief Compliance Officer, Fiduciary Investment Management International, Inc., Franklin Advisers, Inc., Franklin Advisory Services, LLC, Franklin Mutual Advisers, LLC, Franklin Templeton Institutional, LLC; and officer of 42 of the investment companies in Franklin Templeton.

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

Principal Occupation During at Least the Past 5 Years:
Senior Associate General Counsel, Franklin Templeton; Vice President, Franklin Templeton Distributors, Inc. and FASA, LLC; and officer of 42 of the investment companies in Franklin Templeton.

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

Principal Occupation During at Least the Past 5 Years:
Senior Vice President, Franklin Templeton Services, LLC; officer of 42 of the investment companies in Franklin Templeton; and formerly, Vice President, Global Tax (2012-April 2017) and Treasurer/Assistant Treasurer, Franklin Templeton (2009-2017).

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

Principal Occupation During at Least the Past 5 Years:
Vice President, Franklin Templeton Companies, LLC; Chief Compliance Officer, Franklin Templeton Distributors, Inc. and Franklin Templeton Investor Services, LLC; and officer of 42 of the investment companies in Franklin Templeton.



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Interested Board Members and Officers (continued)



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

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

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

Vivek Pai (1970) 300 S.E. 2nd Street Fort Lauderdale, FL 33301-1923	Treasurer, Chief Financial Officer and Chief Accounting Officer	Since 2019	Not Applicable	Not Applicable

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

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

Principal Occupation During at Least the Past 5 Years:
Associate General Counsel and officer of 42 of the investment companies in Franklin Templeton.

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

Principal Occupation During at Least the Past 5 Years:
General Counsel and Executive Vice President, Franklin Resources, Inc.; and officer of some of the other subsidiaries of Franklin Resources, Inc. and of 42 of the investment companies in Franklin Templeton.

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

Principal Occupation During at Least the Past 5 Years:
Senior Associate General Counsel, Franklin Templeton; Assistant Secretary, Franklin Resources, Inc.; Vice President and Secretary, Templeton Investment Counsel, LLC; and officer of 42 of the investment companies in Franklin Templeton.

Note 1: Officer information is current as of the date of this report. It is possible that after this date, information about officers may change.



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Shareholder Information

Proxy Voting Policies and Procedures

Quarterly Statement of Investments

Premium/Discount Information



62	Annual Report	franklintempleton.com

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

ANNUAL REPORT

FRANKLIN TEMPLETON

ETF TRUST

March 31, 2021

LOGO

Franklin Liberty Federal Intermediate Tax-Free Bond Opportunities ETF

Formerly, Franklin Liberty Intermediate Municipal Opportunities ETF

Franklin Liberty Federal Tax-Free Bond ETF

Formerly, Franklin Liberty Municipal Bond ETF



Contents

Annual Report

Municipal Bond Market Overview			2
Franklin Liberty Federal Intermediate Tax-Free Bond Opportunities ETF			3
Franklin Liberty Federal Tax-Free Bond ETF			9
Financial Highlights and Statements of Investments			15
Financial Statements			33
Notes to Financial Statements			36
Report of Independent Registered Public Accounting Firm			42
Tax Information			43
Board Members and Officers			44
Shareholder Information			47

Visit franklintempleton.com for fund updates and documents, or to find helpful financial planning tools


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



franklintempleton.com	Annual Report	1

ANNUAL REPORT

Municipal Bond Market Overview

During the 12 months ended March 31, 2021, the novel coronavirus (COVID-19) pandemic had a severe economic impact across the globe and in the U.S. As whole states enacted strong social distancing protocols (including, in some cases, stay-at-home orders), there were record numbers of jobs lost and a strong contraction of gross domestic product (GDP) in both the first and second quarters of 2020.

After seeing large disruptions in March 2020, fixed income market sectors—including municipal (muni) bonds—began the slow process of recovery following swift policy responses from both monetary and fiscal authorities. The U.S. Federal Reserve set up a number of new emergency facilities to restore investor confidence in the market. Included in these measures were programs to purchase muni bonds in the secondary market and to provide direct loans to muni bond issuers. Although these programs were ultimately thinly subscribed, they provided a backstop to the muni bond market. The U.S. federal government also undertook a number of fiscal spending packages in 2020—$2.9 trillion in April and an additional $900 billion in December—to provide much-needed resources to individuals and businesses in an attempt to provide bridge funding and lessen the potential for scarring in the overall economy.

Through the summer of 2020, infection rates fell across the U.S., allowing some states to begin the process of reopening parts of their economies. However, starting in the fall, new cases and hospitalizations increased to all-time highs as the virus spread to areas in the U.S. that had not seen large numbers of infections, causing some states to slow or abandon their reopening plans. This was tempered by the emergency approval of COVID-19 vaccines from multiple pharmaceutical manufacturers by the U.S. Food and Drug Administration in December 2020 with plans to provide mass inoculations in the first half of 2021. As the vaccination program progressed during the first quarter of 2021, case rates and hospitalizations dropped significantly, allowing the resumption of the reopening process including a return to in-person schooling.

Valuations in the muni bond market improved starting in April 2020 due to strong technical conditions. After seeing record outflows in March and April of 2020, funds flowed back into muni bond retail vehicles, creating significant demand for bonds. These flows outstripped new issuance of tax-exempt bonds as many issuers turned to the taxable muni bond market for refundings and new issuance. Ratios of muni bond

yields versus duration-matched U.S. Treasuries (USTs) improved from their all-time highs seen in March 2020 throughout the remainder of 2020 and into 2021. Although these ratios moved higher in February 2021 as UST yields rose sharply, they more than recovered in March 2021, moving to all-time bests by the end of the month. Starting in February 2021, UST yields rose sharply, which put pressure on muni bond absolute returns given the longer-duration profile of the sector.

State and local muni bond issuers projected severe budget deficits for 2020 and going forward as they anticipated tax receipts and usage fees falling and outlays for social programs such as health care and unemployment benefits strongly rising. By the end of 2020, many of these deficit projection fears were unfounded as consumer spending recovered more quickly than anticipated, leading to higher sales tax collections. A strong U.S. housing market also provided additional support. In March 2021, the U.S. federal government passed a $1.9 trillion additional fiscal spending bill, providing large one-time cash payments to individuals and continuation of enhanced unemployment benefits. Included in this package was $350 billion worth of grants to state and local governments intended to further support budgets and improve the credit profile of the muni sector as a whole.

The Investment Company Institute (ICI) reported net inflows of approximately $5 billion into muni bond retail vehicles in March 2021. For the 12-month period, muni bond retail vehicles had approximately $85 billion of net inflows, according to the ICI.

For the 12-month period, U.S. fixed income sectors broadly underperformed relative to equities, as measured by the Standard & Poor’s^® 500 Index, which posted a +56.35% total return for the period.¹Investment-grade muni bonds, as measured by the Bloomberg Barclays Municipal Bond Index, posted a +5.51% total return, while USTs, as measured by the Bloomberg Barclays U.S. Treasury Index, posted a -4.43% total return, and investment-grade corporate bonds, as measured by the Bloomberg Barclays U.S. Corporate Bond Index, posted a +8.73% total return.¹

The foregoing information reflects our analysis and opinions as of March 31, 2021. 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.

1. Source: Morningstar. Treasuries, if held to maturity, offer a fixed rate of return and a fixed principal value; their interest payments and principal are guaranteed.

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



2	Annual Report	franklintempleton.com

Franklin Liberty Federal Intermediate Tax-Free Bond Opportunities ETF

Formerly, Franklin Liberty Intermediate Municipal Opportunities ETF

This annual report for Franklin Liberty Federal Intermediate Tax-Free Bond Opportunities ETF covers the fiscal year ended March 31, 2021.

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 normally 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 three to 10 years, and may invest in municipal securities in any rating category by U.S. nationally recognized rating services (or comparable unrated or short-term rated securities).


Credit Quality Composition*

3/31/2021

Ratings	% of Total Investments
AAA		3.11%
AA		14.50%
A		14.49%
BBB		25.28%
BB		18.90%
B		21.39%
CCC		0.41%
C		0.81%
D		1.10%

*Ratings shown are assigned by one or more Nationally Recognized Statistical Rating Organizations (NRSRO), such as Standard & Poor’s, Moody’s and Fitch. 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 Refunded category consists of refunded bonds secured by U.S. government or other high quality securities. The Not Rated category consists of ratable securities that have not been rated by an NRSRO. The Not Applicable category consists of third-party ETFs and securities that only have a short-term rating and are not cash equivalents. Cash includes equivalents, which may be rated.

Performance Overview

For the 12 months under review, the Fund posted cumulative total returns of +8.93% based on market price and +8.84%

based on net asset value (NAV). In comparison, the Bloomberg Barclays Municipal 1-15 Year Index posted a +4.92% 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 a buy-and-hold strategy. This means we generally hold securities in the Fund’s portfolio for income purposes, rather than trading securities for capital gains, although we may sell a security at any time if we believe it could help the Fund meet its goal. The Fund is an actively managed exchange-traded fund (ETF) that does not seek to replicate the performance of a specified index.


Portfolio Composition

3/31/2021

	% of Total Investments
Special Tax		36.70%
Health Care		14.44%
Education		10.75%
Local		7.56%
Transportation		6.53%
Industrial Dev. Revenue and Pollution Control		5.68%
Lease		5.40%
Utilities		4.73%
Housing		4.22%
State General Obligation		3.29%
Cash & Cash Equivalents		0.71%

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 Form W-9 and non-U.S. investors on Form W-8BEN.

2. Source: Morningstar.

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

The dollar value, number of shares or principal amount, and names of all portfolio holdings are listed in the Fund’s Statement of Investments (SOI). The SOI begins on page 16.



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FRANKLIN LIBERTY FEDERAL INTERMEDIATE TAX-FREE BOND OPPORTUNITIES ETF

Manager’s Discussion

During the reporting period, we continued to find value in securities in the eight- to 15-year maturity range. Given the Fund’s average maturity cannot exceed 10 years, this represented the longer end of our target universe. The municipal yield curve remains positively sloped, and we believe focusing on longer maturities provides us with the best opportunities to achieve our objective of maximizing after-tax income for investors. Over the period, we maintained a portion of the portfolio in cash that has allowed us to take advantage of relative value opportunities that have been created by increased volatility in the market. This cash position, however, detracted from performance over the period.

The Fund’s overweight to securities with BBB and lower ratings relative to the benchmark curbed results over the past year. Since the COVID-19 crisis, the recovery of lower-rated bonds has lagged higher-rated issues, but over the most recent quarter they have shown significant improvement in valuations. Additionally, our focus on revenue-related bonds versus general obligation issues, when compared to the benchmark, hurt returns due to the uneven recovery of many sectors including education and special tax. In contrast, our selection of securities across sectors provided strong returns lifting overall performance above the Fund’s reference index.

Given the Fund’s mandate, we will continue to look for opportunities to add high-yielding securities with a focus on the seven- to 15-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. As general interest rates rise, our turnover will typically increase 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 Federal Intermediate Tax-Free Bond Opportunities ETF. We look forward to serving your future investment needs.

The foregoing information reflects our analysis, opinions and portfolio holdings as of March 31, 2021, the end of the reporting period. The way we implement our main investment strategies and the resulting portfolio holdings may change depending on factors such as market and economic conditions. These opinions may not be relied upon as investment advice or an offer for a particular security. The information is not a complete analysis of every aspect of any market, state, industry, security or the Fund. Statements of fact are from sources considered reliable, but the investment manager makes no representation or warranty as to their completeness or accuracy. Although historical performance is no guarantee of future results, these insights may help you understand our investment management philosophy.



4	Annual Report	franklintempleton.com

FRANKLIN LIBERTY FEDERAL INTERMEDIATE TAX-FREE BOND OPPORTUNITIES ETF

Performance Summary as of March 31, 2021

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

Net asset value or “NAV” is the value of one share of a fund as calculated in accordance with the standard formula for valuing mutual fund shares. The price used to calculate market return (Market Price) is determined by using the midpoint between the highest bid and the lowest offer on the primary stock exchange on which shares of a fund are listed for trading, as of the time that such fund’s NAV is calculated. Since shares of the Fund did not trade in the secondary market until after the Fund’s inception, for the period from inception to the first day of secondary trading (9/5/17), the NAV of the Fund is used as a proxy for the Market Price to calculate market returns. Market and NAV returns assume that dividends and capital gain distributions have been reinvested at Market Price and NAV.

Performance as of 3/31/21¹

Cumulative Total Return²

Average Annual Total Return²

Based on
NAV³

Based on

market price⁴

Based on
NAV³

Based on

market price⁴

1-Year

+8.84%

+8.93%

+8.84%

+8.93%

3-Year

+16.10%

+15.68%

+5.10%

+4.97%

Since Inception (8/31/17)

+14.34%

+14.33%

+3.81%



	30-Day Standardized Yield⁶				Taxable Equivalent 30-Day Standardized Yield⁷
Distribution Rate⁵	(with fee waiver)		(without fee waiver)		(with fee waiver)		(without fee waiver)
2.79%		1.89%		1.25%		3.19%		2.11%

See page 7 for Performance Summary footnotes.



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FRANKLIN LIBERTY FEDERAL INTERMEDIATE TAX-FREE BOND OPPORTUNITIES ETF

PERFORMANCE SUMMARY

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

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

8/31/17–3/31/21

LOGO

See page 7 for Performance Summary footnotes.



6	Annual Report	franklintempleton.com

FRANKLIN LIBERTY FEDERAL INTERMEDIATE TAX-FREE BOND OPPORTUNITIES ETF

PERFORMANCE SUMMARY

Distributions (4/1/20–3/31/21)

Net Investment

Income

$0.575858

Total Annual Operating Expenses⁹



With Waiver	Without Waiver
0.30%		1.46%

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. Puerto Rico municipal bonds have been impacted by recent adverse economic and market changes, which may cause the Fund’s share price to 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. Events such as the spread of deadly diseases, disasters, and financial, political or social disruptions, may heighten risks and adversely affect performance. 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 March dividend and the NAV per share on 3/31/21.

7. Taxable equivalent yield assumes the 2021 maximum federal income tax rate of 37.00% plus 3.80% Medicare tax.

8. Source: Morningstar. Bloomberg Barclays 1-15 Year Municipal Index measures the performance of municipal bonds with maturities from one to 17 years. It is a component of the Municipal Bond Index, which is a market value-weighted index engineered for the long-term tax-exempt bond market. To be included in the index, bonds must be fixed rate, have at least one year to final maturity and be rated investment grade (Baa3/BBB- or higher) by at least two of the following agencies: Moody’s, S&P and Fitch.

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

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



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FRANKLIN LIBERTY FEDERAL INTERMEDIATE TAX-FREE BOND 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


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

Beginning Account Value 10/1/20		Ending Account Value 3/31/21		Expenses Paid During Period 10/1/20–3/31/21^1,2		Ending Account Value 3/31/21		Expenses Paid During Period 10/1/20–3/31/21^1,2		Net Annualized Expense Ratio²
	$1,000.00	$	1,039.90	$	1.53	$	1,023.44	$	1.51		0.30	%

2. Reflects expenses after fee waivers and expense reimbursements.



8	Annual Report	franklintempleton.com

Franklin Liberty Federal Tax-Free Bond ETF

Formerly, Franklin Liberty Municipal Bond ETF

This annual report for Franklin Liberty Federal Tax-Free Bond ETF covers the fiscal year ended March 31, 2021.

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 normally investing at least 80% of its net assets in municipal securities that pay interest free from such taxes.¹ The Fund seeks to maintain a dollar-weighted average portfolio maturity (the time in which the debt must be repaid) of five to 15 years, and only buys securities rated, at the time of purchase, in one of the top four ratings categories by one or more U.S. nationally recognized rating services (or comparable unrated or short-term rated securities).


Credit Quality Composition*

3/31/2021

Ratings	% of Total Investments
AAA		13.34%
AA		52.50%
A		25.10%
BB		9.06%

Performance Overview

For the 12 months under review, the Fund posted cumulative total returns of +4.87% based on market price and +5.16% based on net asset value (NAV). In comparison, the Bloomberg Barclays Municipal Bond Index posted a +5.51%

total return for the same period.² You can find more of the Fund’s performance data in the Performance Summary beginning on page 11.

Investment Strategy

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 a buy-and-hold strategy. This means it generally holds securities in the Fund’s portfolio for income purposes, rather than trading securities for capital gains, although we may sell a security at any time if we believe it could help the Fund meet its goal. The Fund is an actively managed exchange-traded fund (ETF) that does not seek to replicate the performance of a specified index.


Portfolio Composition

3/31/2021

	% of Total Investments
Utilities		16.62%
Local		15.74%
State General Obligation		12.59%
Industrial Dev. Revenue and Pollution Control		9.25%
Health Care		9.13%
Lease		8.81%
Special Tax		8.20%
Transportation		6.01%
Education		4.52%
Others		4.37%
Cash & Cash Equivalents		4.77%

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 26.



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FRANKLIN LIBERTY FEDERAL TAX-FREE BOND ETF

Manager’s Discussion

During the 12-month reporting period, the Fund maintained its average maturity near 12 years, on the longer end of the target 5- to 15-year range, but similar to that of the benchmark index. Our focus on bonds with longer-maturity profiles contributed to performance over the period as municipal bond valuations improved following the severe market disruptions in March 2020 due to the COVID-19 crisis. The municipal yield curve remains positively sloped and we believe focusing on longer maturities within that range provides us with the best opportunities to maximize both after-tax income and total return potential. The Fund is highly diversified across multiple metrics, including by individual issuer, sector, state, term structure and coupon rate. As market volatility moved higher, we were able to add positions that we felt provided strong risk/reward returns in some of the more challenged areas of the market. Some examples included sectors and issuers where the investing public appeared tentative but the prospects for improving prices looked constructive due to government support, essential function, and/or a lack of understanding of the underlying security. At period-end, the Fund had grown to $126 million in total assets, which we believe provides exciting momentum for continued asset growth moving forward.

Security selection was a key contributor to the Fund’s performance. Due to continuing cash flows from maturing securities and new investors, our cash position was larger than the benchmark, which allowed us to remain agile and take advantage of pockets of value in the market. This cash allocation detracted from performance as municipal bonds rallied throughout the year. We will continue to look for opportunities to add high-quality names at attractive prices with a focus on all parts of the yield curve, while striving to maintain a portfolio average maturity of close to 13 years. The Fund does not use leverage or derivatives. We believe our consistent, disciplined strategy can help our investors achieve high, tax-free income over the long term.

Thank you for your participation in Franklin Liberty Federal Tax-Free Bond ETF. We look forward to serving your future investment needs.

The foregoing information reflects our analysis, opinions and portfolio holdings as of March 31, 2021, the end of the reporting period. The way we implement our main investment strategies and the resulting portfolio holdings may change depending on factors such as market and economic conditions. These opinions may not be relied upon as investment advice or an offer for a particular security. The information is not a complete analysis of every aspect of any market, state, industry, security or the Fund. Statements of fact are from sources considered reliable, but the investment manager makes no representation or warranty as to their completeness or accuracy. Although historical performance is no guarantee of future results, these insights may help you understand our investment management philosophy.



10	Annual Report	franklintempleton.com

FRANKLIN LIBERTY FEDERAL TAX-FREE BOND ETF

Performance Summary as of March 31, 2021

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

Net asset value or “NAV” is the value of one share of a fund as calculated in accordance with the standard formula for valuing mutual fund shares. The price used to calculate market return (Market Price) is determined by using the midpoint between the highest bid and the lowest offer on the primary stock exchange on which shares of a fund are listed for trading, as of the time that such fund’s NAV is calculated. Since shares of the Fund did not trade in the secondary market until after the Fund’s inception, for the period from inception to the first day of secondary trading (9/5/17), the NAV of the Fund is used as a proxy for the Market Price to calculate market returns. Market and NAV returns assume that dividends and capital gain distributions have been reinvested at Market Price and NAV.

Performance as of 3/31/21¹

Cumulative Total Return²

Average Annual Total Return²

Based on
NAV³

Based on

market price⁴

Based on
NAV³

Based on

market price⁴

1-Year

+5.16%

+4.87%

+5.16%

+4.87%

3-Year

+18.49%

+18.14%

+5.82%

+5.71%

Since Inception (8/31/17)

+16.77%

+16.80%

+4.42%

+4.43%



	30-Day Standardized Yield⁶				Taxable Equivalent 30-Day Standardized Yield⁷
Distribution Rate⁵	(with fee waiver)		(without fee waiver)		(with fee waiver)		(without fee waiver)
2.12%		1.18%		0.76%		1.99%		1.28%

See page 13 for Performance Summary footnotes.



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FRANKLIN LIBERTY FEDERAL TAX-FREE BOND ETF

PERFORMANCE SUMMARY

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

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

8/31/17–3/31/21

LOGO

See page 13 for Performance Summary footnotes.



12	Annual Report	franklintempleton.com

FRANKLIN LIBERTY FEDERAL TAX-FREE BOND ETF

PERFORMANCE SUMMARY

Distributions(4/1/20–3/31/21)

Net Investment

Income

$0.546501

Total Annual Operating Expenses⁹



With Waiver	Without Waiver
0.30%		1.00%

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. Puerto Rico municipal bonds have been impacted by recent adverse economic and market changes, which may cause the Fund’s share price to 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. Events such as the spread of deadly diseases, disasters, and financial, political or social disruptions, may heighten risks and adversely affect performance. 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 March dividend and the NAV per share on 3/31/21.

7. Taxable equivalent yield assumes the 2021 maximum federal income tax rate of 37.00% plus 3.80% Medicare tax.

8. Source: Morningstar. The Bloomberg Barclays Municipal Bond Index is a market value-weighted index engineered for the long-term tax-exempt bond market. To be included in the index, bonds must be fixed rate, have at least one year to final maturity and be rated investment grade (Baa3/BBB- or higher) by at least two of the following agencies: Moody’s, S&P and Fitch.

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



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FRANKLIN LIBERTY FEDERAL TAX-FREE 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


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

Beginning Account Value 10/1/20		Ending Account Value 3/31/21		Expenses Paid During Period 10/1/20–3/31/21^1,2		Ending Account Value 3/31/21		Expenses Paid During Period 10/1/20–3/31/21²		Net Annualized Expense Ratio²
	$1,000.00	$	1,010.60	$	1.50	$	1,023.44	$	1.51		0.30	%

2. Reflects expenses after fee waivers and expense reimbursements.



14	Annual Report	franklintempleton.com

FRANKLIN TEMPLETON ETF TRUST

Financial Highlights

Franklin Liberty Federal Intermediate Tax-Free Bond Opportunities ETF^a



	Year Ended March 31,

	2021			2020			2019			2018^b

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

Net asset value, beginning of year	$	24.72		$	24.97		$	24.40		$	25.00


Income from investment operations^c:

Net investment income^d		0.59			0.58			0.63			0.22

Net realized and unrealized gains (losses)		1.59			(0.17	)		0.57			(0.60	)


Total from investment operations		2.18			0.41			1.20			(0.38	)


Less distributions from net investment income		(0.58	)		(0.66	)		(0.63	)		(0.22	)


Net asset value, end of year	$	26.32		$	24.72		$	24.97		$	24.40


Total return^e		8.84%			1.61%			4.99%			(1.53)%

Ratios to average net assets^f

Expenses before waiver and payments by affiliates		1.01%			1.46%			2.15%			1.71%

Expenses net of waiver and payments by affiliates		0.30%			0.30%			0.30%			0.30%

Net investment income		2.29%			2.29%			2.57%			1.55%

Supplemental data

Net assets, end of year (000’s)		$42,112			$12,362			$7,490			$7,319

Portfolio turnover rate^g		14.05%	^h		35.28%	^h		35.63%			17.49%

^aEffective September 14, 2020, Franklin Liberty Intermediate Municipal Opportunities ETF was renamed Franklin Liberty Federal Intermediate Tax-Free Bond Opportunities ETF.

^bFor the period August 31, 2017 (commencement of operations) to March 31, 2018.

^cThe amount shown for a share outstanding throughout the period may not correlate with the Statement of Operations for the period due to the timing of sales and repurchases of Creation Unit Fund shares in relation to income earned and/or fluctuating fair value of the investments of the Fund.

^dBased on average daily shares outstanding.

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

^fRatios are annualized for periods less than one year.

^gPortfolio turnover rate includes portfolio transactions that are executed as a result of the Fund offering and redeeming Creation Units solely for cash (“Cash creations”).

^hPortfolio turnover rate excluding cash creations was as follows:

14.05%

35.28%



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FRANKLIN TEMPLETON ETF TRUST

Statement of Investments, March 31, 2021

Franklin Liberty Federal Intermediate Tax-Free Bond Opportunities ETF



		Principal Amount*		Value
	Municipal Bonds 99.7%
	Alabama 0.3%
	Homewood Educational Building Authority, Samford University, Refunding, Series 2019A, 4.00%, 12/01/33		100,000	$	115,881

	Alaska 0.7%
	Alaska Industrial Development & Export Authority, Greater Fairbanks Community Hospital Foundation Obligated Group, Refunding, 4.00%, 4/01/32		100,000		115,011
	Borough of Matanuska-Susitna, State of Alaska Department of Administration, Refunding, 4.00%, 9/01/30		150,000		162,243

					277,254

	Arizona 2.1%
	City of Phoenix Civic Improvement Corp., Wastewater Revenue, Series 2018A, 5.00%, 7/01/25		100,000		118,709
	Glendale Industrial Development Authority, People of Faith, Inc. Obligated Group, 4.00%, 5/15/31		160,000		175,103
	Industrial Development Authority of the City of Phoenix, Downtown Phoenix Student Housing II LLC, 5.00%, 7/01/31		100,000		118,098
	La Paz County Industrial Development Authority,
	Harmony Public Schools, 5.00%, 2/15/28		100,000		115,030
	Harmony Public Schools, 5.00%, 2/15/31		100,000		124,139
	Maricopa County Union High School District No 210-Phoenix, Series 2020C, 5.00%, 7/01/31		170,000		218,858

					869,937

	Arkansas 0.6%
	Arkansas Development Finance Authority,
	Baptist Health Obligated Group, 4.00%, 12/01/34		100,000		114,604
	Baptist Memorial Health Care Obligated Group, Refunding, 5.00%, 9/01/32		100,000		127,430

					242,034

	California 12.4%
	California Municipal Finance Authority,
	Biola University, Inc., Refunding, 5.00%, 10/01/29		100,000		120,871
	Series 2020B, 4.00%, 9/01/30		50,000		56,066
	Senior Lien, Linxs APM Project, AMT, Sereis 2018A, 3.50%, 12/31/35		100,000		109,083
a	California Pollution Control Financing Authority, CalPlant I LLC, AMT, 7.50%, 7/01/32		250,000		162,500
	California School Finance Authority,
	Classical Academy Obligated Group, Series 2020A, 3.00%, 10/01/30		215,000		226,968
	Summit Public Schools Obligated Group, 5.00%, 6/01/27		100,000		119,419
	California Statewide Communities Development Authority,
	4.00%, 9/01/31		200,000		227,177
	Community Facilities District No 2018, 4.00%, 9/01/30		150,000		172,791
	Community Facilities District No 2016-02, 4.00%, 9/01/30		130,000		148,211
	Community Facilities District No 2015, 4.00%, 9/01/29		110,000		126,204
	Special Assessment, Series 2020B, 4.00%, 9/02/30		250,000		282,436
	California Baptist University, Refunding, Series 2017A, 3.00%, 11/01/22		50,000		50,833
	Community Facilities District No 2015-01, 5.00%, 9/01/27		85,000		96,354
	Chino Community Facilities District, City of Chino Community Facilities District No 2019-1, 4.00%, 9/01/30		150,000		169,257
b	Chula Vista Community Facilities District, 4.00%, 9/01/31		100,000		112,379
	City of Calimesa, Community Facilities District No 2018-1, 4.00%, 9/01/33		150,000		169,962
	City of Fontana, City of Fontana Community Facilities District No 85, 4.00%, 9/01/30		150,000		171,201
	City of Ontario, Community Facilities District No 45, 4.00%, 9/01/31		150,000		171,441
	City of Sacramento, Greenbriar Community Facilities District No 2018-03, 4.00%, 9/01/31		200,000		225,219
	Corona-Norco Unified School District, Corona-Norco Unified School District Community Facilities District No 17-1, 4.00%, 9/01/34		105,000		119,079
	County of Orange, Village of Esencia, No 2017-1, Series 2018A, 5.00%, 8/15/28		100,000		124,965
	CSCDA Community Improvement Authority, Jefferson Anaheim Social Bonds, 2.875%, 8/01/41		250,000		242,295
	Irvine Unified School District, Series 2020A, 5.00%, 9/01/32		250,000		324,848



16	Annual Report	franklintempleton.com

FRANKLIN TEMPLETON ETF TRUST

STATEMENT OF INVESTMENTS

Franklin Liberty Federal Intermediate Tax-Free Bond Opportunities ETF (continued)



	Principal Amount*		Value
Municipal Bonds (continued)
California (continued)
Marina Redevelopment Agency Successor Agency, Series 2020A, 4.00%, 9/01/32		135,000	$	148,317
Perris Joint Powers Authority, Refunding, Series 2017B, 5.00%, 9/01/25		100,000		117,971
Poway Unified School District, Poway Unified School District Community Facilities District No 16, 5.00%, 9/01/32		250,000		324,594
Riverside Unified School District, 4.00%, 9/01/30		245,000		274,100
Romoland School District, Series 2020A, 4.00%, 9/01/33		140,000		159,085
Sacramento Municipal Utility District, Electric System Revenue, 5.00%, 8/15/30		250,000		335,727
Sierra View Local Health Care District, Tulare County, Refunding, 5.00%, 7/01/30		100,000		128,196

				5,217,549

Colorado 3.5%
Board of Water Commissioners City & County of Denver, Refunding, Series 2020B, 4.00%, 9/15/33		250,000		309,011
Colorado Health Facilities Authority,
Christian Living Neighborhoods Obligated Group, Refunding, 4.00%, 1/01/29		100,000		109,607
CommonSpirit Health Obligated Group, Series 2019A-1, 5.00%, 8/01/33		160,000		200,878
Boulder Community Health Obligated Group, Refunding, 5.00%, 10/01/32		150,000		192,012
Regional Transportation District,
Denver Transit Partners LLC, Refunding, 5.00%, 1/15/32		250,000		322,486
Sales Tax Revenue, Refunding, Series 2013A, 5.00%, 11/01/27		100,000		126,748
Southglenn Metropolitan District, Refunding, 5.00%, 12/01/30		100,000		104,184
Southlands Metropolitan District No 1, Refunding, Series 2017A-1, 3.50%, 12/01/27		100,000		107,031

				1,471,957

Connecticut 1.8%
Connecticut Housing Finance Authority, Refunding, Series 2016A-1, 2.875%, 11/15/30		150,000		157,472
Connecticut State Health & Educational Facilities Authority,
McLean Affiliates Obligated Group, Series 2020A, 5.00%, 1/01/30		150,000		168,530
Sacred Heart University, Series 2017I-1, 5.00%, 7/01/29		135,000		163,486
State of Connecticut, Series 2021A, 3.00%, 1/15/32		250,000		280,620

				770,108

Delaware 0.3%
County of Kent, CHF-Dover LLC, 5.00%, 7/01/29		100,000		111,987

Florida 17.3%
Astonia Community Development District, Assessment Area One Project, Special Assessment, 3.375%, 5/01/30		150,000		154,520
Avalon Groves Community Development District, Assessment Area 3, Special Assessment, 2.375%, 5/01/26		150,000		149,288
Avalon Park West Community Development District, Special Assessment, Refunding, 3.25%, 5/01/30		100,000		102,562
Babcock Ranch Community Independent Special District,
Assessment Area 2C, Special Assessment, 3.00%, 5/01/30		50,000		51,162
Assessment Area 3B, Special Assessment, 3.00%, 5/01/30		145,000		148,368
Bannon Lakes Community Development District, Special Assessment, 3.00%, 5/01/31		200,000		199,825
Belmond Reserve Community Development District, Special Assessment, Series 2020, 3.25%, 5/01/30		100,000		102,638
Berry Bay Community Development District, Assessment Area 1, Special Assessment, 3.125%, 5/01/31		100,000		100,427
Capital Projects Finance Authority, University Project, Series 2020A-1, 5.00%, 10/01/32		105,000		127,250
Capital Trust Agency, Inc.,
Liza Jackson Preparatory School, Inc., 4.00%, 8/01/30		100,000		112,644
Lutz Preparatory School, Inc., Refunding, 4.00%, 6/01/31		200,000		219,571
City of Tampa, State of Florida Cigarette Tax Revenue, Series 2020A, zero cpn., 9/01/34		150,000		104,533
Coral Keys Homes Community Development District, Special Assessment, 3.125%, 5/01/30		165,000		169,746
County of Osceola, Transportation Revenue, Refunding, Series 2020A-2, zero cpn., 10/01/32		150,000		111,092
Crestview II Community Development District, Special Assessment, Refunding, 4.00%, 5/01/31		126,000		139,864



franklintempleton.com	Annual Report	17

FRANKLIN TEMPLETON ETF TRUST

STATEMENT OF INVESTMENTS

Franklin Liberty Federal Intermediate Tax-Free Bond Opportunities ETF (continued)



		Principal Amount*		Value
	Municipal Bonds (continued)
	Florida (continued)
	Cypress Bluff Community Development District, Special Assessment, Series 2020A, 3.125%, 5/01/30		60,000	$	61,644
	DW Bayview Community Development District, Special Assessment, 3.00%, 5/01/32		100,000		98,975
	Edgewater East Community Development District, Special Assessment, 3.10%, 5/01/31		100,000		100,427
	Enbrook Community Development District, Special Assessment, 3.00%, 5/01/30		100,000		101,804
	Epperson North Community Development District, Assessment Area 2, Special Assessment, 3.00%, 5/01/31		100,000		99,568
	Florida Development Finance Corp., Brightline Trains Florida LLC, AMT, VRDN, 6.375%, 1/01/49		175,000		170,629
	Forest Lake Community Development District, Assessment Area 1 Project, Special Assessment, 3.25%, 5/01/30		150,000		153,948
	Grand Oaks Community Development District, Special Assessment, 4.00%, 5/01/30		150,000		157,520
	Hammock Reserve Community Development District, Assessment Area One Project, Special Assessment, 3.25%, 5/01/30		100,000		102,367
	Herons Glen Recreation District, Special Assessment, Refunding, 3.00%, 5/01/32		100,000		108,643
	Hills Minneola Community Development District, South Parcel Assessment Area, Special Assessment, 3.50%, 5/01/31		100,000		104,662
	Holly Hill Road East Community Development District, Assessment Area 3 Project, Special Assessment, 4.00%, 11/01/25		110,000		113,420
	Kindred Community Development District II, Special Assessment, 3.00%, 5/01/30		155,000		158,396
	Kingman Gate Community Development District,
	2.50%, 6/15/26		100,000		100,184
	Special Assessment, 3.125%, 6/15/30		110,000		114,135
	Lakes of Sarasota Community Development District,
	^b Series A-1, 3.40%, 5/01/31		135,000		134,997
	^b Series B-1, 3.00%, 5/01/26		115,000		115,032
	Lakewood Ranch Stewardship District,
	Azario Project, Special Assessment, 3.20%, 5/01/30		175,000		180,446
	Lorraine Lakes Project, Special Assessment, 3.125%, 5/01/30		60,000		61,576
	Northeast Sector Project, Special Assessment, Refunding, 3.20%, 5/01/30		100,000		102,896
	Magnolia Park Community Development District, Special Assessment, Refunding, 4.00%, 5/01/31		47,000		52,170
	Miami Health Facilities Authority, Miami Jewish Health Systems Obligated Group, Refunding, 5.00%, 7/01/28		150,000		143,915
	Mirada II Community Development District, Special Assessment, 3.125%, 5/01/31		100,000		99,741
	New Port Tampa Bay Community Development District, Special Assessment, 2.875%, 5/01/26		100,000		100,203
	Old Hickory Community Development District, Special Assessment, 3.00%, 6/15/30		100,000		102,224
	Parkview at Long Lake Ranch Community Development District, Special Assessment, 3.125%, 5/01/30		100,000		102,447
	Parrish Plantation Community Development District, Special Assessment, 3.125%, 5/01/31		100,000		100,069
	Pine Ridge Plantation Community Development District, Subordinate Lien, Special Assessment, Refunding, Series 2020A-2, 3.30%, 5/01/30		150,000		154,333
	Preserve at South Branch Community Development District, Phase 3, Special Assessment, Series 2021, 3.00%, 5/01/31		100,000		100,070
	River Hall Community Development District, Assessment Area 3, Special Assessment, Series 2020A, 3.25%, 5/01/31		100,000		103,156
	Saddle Creek Preserve of Polk County Community Development District, Special Assessment, 3.00%, 6/15/30		80,000		81,467
	Sandmine Road Community Development District, Assessment Area One, Special Assessment, 3.125%, 5/01/30		100,000		102,838
	Sandridge Community Development District, Special Assessment, Series 2021A1, 2.875%, 5/01/26		140,000		139,376
	Sarasota National Community Development District, Special Assessment, Refunding, 3.50%, 5/01/31		100,000		106,459
	Six Mile Creek Community Development District, Assessment Area 3, Phase 1, Special Assessment, 3.00%, 5/01/31		100,000		98,883
b	Stillwater Community Development District, 3.00%, 6/15/31		100,000		99,997
b	Tamarindo Community Development District, 3.00%, 5/01/31		100,000		100,141



18	Annual Report	franklintempleton.com

FRANKLIN TEMPLETON ETF TRUST

STATEMENT OF INVESTMENTS

Franklin Liberty Federal Intermediate Tax-Free Bond Opportunities ETF (continued)



		Principal Amount*		Value
	Municipal Bonds (continued)
	Florida (continued)
	Timber Creek Southwest Community Development District, Special Assessment, Series 2020, 3.00%, 6/15/30		150,000	$	153,839
	Tohoqua Community Development District,
	2.50%, 5/01/26		140,000		140,248
	Phase 2 Project, Special Assessment, 2.875%, 5/01/31		100,000		98,703
	Trevesta Community Development District, Assessment Area Two, Special Assessment, 3.25%, 5/01/30		100,000		102,498
	V-Dana Community Development District, Assessment Area One, Special Assessment, 3.50%, 5/01/31		150,000		155,836
	Veranda Community Development District II, Special Assessment, Refunding, 3.10%, 5/01/31		100,000		100,715
	Village Community Development District No 13, Limited Offering, Special Assessment, 3.00%, 5/01/29		100,000		105,735
	West Villages Improvement District,
	Unit of Devision # 8, Speceail Assessment, 2.50%, 5/01/26		100,000		100,087
	Unit of Devision # 7, Speceail Assessment, 3.125%, 5/01/31		100,000		100,211
	Windward Community Development District, Special Assessment, Series 2020A-1, 3.65%, 5/01/30		100,000		103,287


					7,283,407

	Georgia 1.4%
	Athens-Clarke County Unified Government Development Authority, University of Georgia Athletic Association, Inc., Series 2005B, Daily, VRDN, 0.05%, 7/01/35		100,000		100,000
b	George L Smith II Congress Center Authority, 3.625%, 1/01/31		250,000		256,142
	Main Street Natural Gas, Inc., Series 2019A, 5.00%, 5/15/29		100,000		126,597
	Municipal Electric Authority of Georgia, Refunding, Series 2019A, 5.00%, 1/01/33		100,000		123,561


					606,300

	Guam 0.3%
	Guam Government Waterworks Authority, Refunding, 5.00%, 7/01/30		125,000		147,851

	Illinois 5.7%
	Chicago Park District, Refunding, Series 2020F-2, 5.00%, 1/01/31		100,000		125,247
	City of Chicago, zero cpn., 1/01/31		525,000		408,362
	Illinois Finance Authority,
	^a 2018 Blue Island LLC, 4.25%, 12/01/28		100,000		63,000
	Navistar International Corp. Refunding, VRDN, 4.75%, 10/15/40		150,000		157,459
	Lifespace Communities, Refunding, Series 2015A, 5.00%, 5/15/24		245,000		273,264
	Metropolitan Pier & Exposition Authority,
	McCormick Project, Refunding, zero cpn., 6/15/28		100,000		87,563
	McCormick Project, zero cpn., 12/15/32		85,000		63,783
	Railsplitter Tobacco Settlement Authority, 5.00%, 6/01/27		100,000		119,232
	Southwestern Illinois Development Authority, Madison County Community Unit School District No 7 Edwardsville, Refunding, zero cpn., 12/01/24		245,000		234,535
	State of Illinois,
	Series 2017C, 5.00%, 11/01/29		200,000		233,690
	Series 2020B, 5.00%, 10/01/31		150,000		185,326
	Refunding, Series 2018B, 5.00%, 10/01/31		100,000		118,991
	5.50%, 5/01/30		175,000		223,652
	Upper Illinois River Valley Development Authority, 2018 IAVF Timber Oaks & Prairie View Obligated Group, Refunding, 3.50%, 12/01/32		125,000		126,295

					2,420,399

	Indiana 0.6%
	City of Jeffersonville, Vivera Senior Living of Columbus LLC, Series 2020A, 4.75%, 11/01/30		100,000		101,030
	Indiana Finance Authority, Ohio Valley Electric Corp. Series 2012C, 3.00%, 11/01/30		150,000		155,771

					256,801



franklintempleton.com	Annual Report	19

FRANKLIN TEMPLETON ETF TRUST

STATEMENT OF INVESTMENTS

Franklin Liberty Federal Intermediate Tax-Free Bond Opportunities ETF (continued)



	Principal Amount*		Value
Municipal Bonds (continued)
Kentucky 0.5%
County of Owen, American Water Capital Corp., Refunding, VRDN, 2.45%, 6/01/39		100,000	$	106,139
Louisville/Jefferson County Metropolitan Government, Bellarmine University, Inc., Refunding, 4.00%, 5/01/29		100,000		104,105

				210,244

Louisiana 0.5%
Louisiana Local Government Environmental Facilities & Community Development Authority, Provident Group - ULM Properties LLC, 5.00%, 7/01/29		100,000		106,093
Port New Orleans Board of Commissioners, AMT, Series 2020E, 5.00%, 4/01/34		100,000		126,440

				232,533

Maryland 1.6%
City of Baltimore, Harbor Point Special Taxing District, Refunding, 3.25%, 6/01/31		100,000		103,414
County of Frederick, MD Oakdale-Lake Linganore Development District, 3.25%, 7/01/29		140,000		145,922
Maryland Economic Development Corp., Ports America Chesapeake LLC, Refunding, Series 2017A, 5.00%, 6/01/27		100,000		117,183
Maryland Health & Higher Educational Facilities Authority,
Adventist Healthcare Obligated Group, Refunding, 4.00%, 1/01/30		145,000		165,623
Stevenson University, Inc., Refunding, 5.00%, 6/01/30		100,000		125,511

				657,653

Massachusetts 0.9%
Massachusetts Development Finance Agency,
Foxborough Regional Charter School, Refunding, 5.00%, 7/01/27		100,000		112,503
Wellforce Obligated Group, Refunding, Series 2020C, 5.00%, 10/01/30		200,000		261,110

				373,613

Michigan 0.7%
City of Detroit, Series 2021A, 5.00%, 4/01/30		175,000		214,089
Grand Rapids Economic Development Corp., Michigan Christian Home Obligated Group, Refunding, 4.00%, 11/01/27		100,000		101,851

				315,940

Minnesota 1.2%
City of Eagan, Series 2018A, 4.00%, 2/01/26		100,000		115,637
County of Mille Lacs, Series 2018A, 3.00%, 2/01/24		135,000		144,488
Northern Municipal Power Agency, Refunding, 5.00%, 1/01/36		100,000		117,025
St Louis Park Independent School District No 283, Series 2018A, 5.00%, 2/01/25		100,000		117,214

				494,364

Missouri 1.7%
Cape Girardeau County Industrial Development Authority, SoutheastHEALTH Obligated Group, 5.00%, 3/01/29		130,000		142,878
City of Maryland Heights, Westport Plaza Redevelopment, 3.625%, 11/01/31		100,000		105,311
Curators of the University of Missouri, Refunding, Series 2020B, 5.00%, 11/01/30		250,000		335,811
St Louis County Industrial Development Authority, Friendship Village St Louis Obligated Group, Refunding, 5.00%, 9/01/27		100,000		117,294

				701,294

Montana 0.3%
Cascade County High School District A Great Falls, 5.00%, 7/01/25		100,000		117,971

Nevada 2.0%
City of Carson City, Carson Tahoe Regional Healthcare Obligated Group, 5.00%, 9/01/28		115,000		140,894
City of Las Vegas,
Special Improvement District No 611, Special Assessment, 3.50%, 6/01/31		160,000		170,585
Special Improvement District No 812, Special Assessment, 4.00%, 12/01/22		95,000		98,354
Tahoe-Douglas Visitors Authority, 5.00%, 7/01/31		250,000		298,113
Washoe County School District, Series 2017C, 5.00%, 10/01/26		100,000		123,273

				831,219



20	Annual Report	franklintempleton.com

FRANKLIN TEMPLETON ETF TRUST

STATEMENT OF INVESTMENTS

Franklin Liberty Federal Intermediate Tax-Free Bond Opportunities ETF (continued)



	Principal Amount*		Value
Municipal Bonds (continued)
New Hampshire 0.3%
New Hampshire Health and Education Facilities Authority Act, University System of New Hampshire Obligated Group, Refunding, Series 2017A, 5.00%, 7/01/27		100,000	$	124,351

New Jersey 4.7%
New Jersey Economic Development Authority,
New Jersey-American Water Co., Inc., AMT, Refunding, VRDN, 2.20%, 10/01/39		100,000		104,825
Provident Group-Kean Properties LLC, 5.00%, 7/01/32		100,000		103,007
Self Designated Social Bonds, 5.00%, 6/15/31		200,000		255,293
New Jersey Educational Facilities Authority, Seton Hall University, Series 2016C, 5.00%, 7/01/29		240,000		277,317
New Jersey Transportation Trust Fund Authority,
Refunding, 5.00%, 12/15/28		100,000		125,734
Series 2006C, zero cpn., 12/15/30		880,000		725,361
Series 2006C, .01%, 12/15/31		210,000		167,700
Pinelands Regional School District, 3.00%, 8/01/27		100,000		110,482
State of New Jersey, COVID-19 General Obligation Emergency Bonds, Series 2020A, 4.00%, 6/01/31		100,000		122,266

				1,991,985

New Mexico 0.8%
Las Cruces School District No 2, Refunding, 5.00%, 8/01/28		250,000		319,193

New York 4.5%
Metropolitan Transportation Authority,
Green Bond, Series 2017C-1, 5.00%, 11/15/28		270,000		334,017
Green Bond, Series 2017C-1, 5.00%, 11/15/30		530,000		647,943
New York State Dormitory Authority, St Joseph’s College, 5.00%, 7/01/30		65,000		78,565
New York Transportation Development Corp.,
Laguardia Gateway Partners LLC, Term B, AMT, 5.00%, 7/01/30		100,000		113,434
American Airlines, Inc., AMT, 5.25%, 8/01/31		100,000		121,619
Delta Air Lines, Inc., AMT, 4.00%, 10/01/30		125,000		145,218
JFK International Air Terminal LLC, AMT, Refunding, 5.00%, 12/01/30		100,000		126,115
JFK International Air Terminal LLC, Refunding, 5.00%, 12/01/30		100,000		127,222
Triborough Bridge & Tunnel Authority, Refunding, Series 2001C, Daily, VRDN, 0.05%, 1/01/32		200,000		200,000

				1,894,133

North Carolina 0.3%
North Carolina Medical Care Commission, United Methodist Retirement Homes, Inc. Obligated Group, 5.00%, 10/01/27		100,000		110,000

Ohio 2.7%
Akron Bath Copley Joint Township Hospital District, Summa Health System Obligated Group, Refunding, 4.00%, 11/15/33		150,000		173,543
County of Franklin,
Wesley Communities Obligated Group, Refunding, 5.00%, 11/15/30		100,000		113,918
Nationwide Children’s Hospital, Inc., 5.00%, 11/01/28		100,000		124,847
Trinity Health Corp. Obligated Group, Series 2019A, 5.00%, 12/01/31		100,000		129,891
County of Hamilton, UC Health Obligated Group, 5.00%, 9/15/33		100,000		126,498
Franklin County Convention Facilities Authority, 5.00%, 12/01/30		100,000		119,600
Ohio Air Quality Development Authority, Pratt Paper, Inc., AMT, 3.75%, 1/15/28		100,000		108,550
State of Ohio, Premier Health Partners Obligated Group, Refunding, 5.00%, 11/15/33		200,000		253,206

				1,150,053

Oregon 1.3%
Medford Hospital Facilities Authority, Asante Health System Obligated Group, Series 2020A, 5.00%, 8/15/33		200,000		259,555
Oregon State Facilities Authority, PeaceHealth Obligated Group, Refunding, Series 2018B, Daily, VRDN, 0.06%, 8/01/34		200,000		200,000
Polk County Hospital Facility Authority, Dallas Mennonite Retirement Community Obligated Group, 4.00%, 7/01/24		100,000		100,163

				559,718



franklintempleton.com	Annual Report	21

FRANKLIN TEMPLETON ETF TRUST

STATEMENT OF INVESTMENTS

Franklin Liberty Federal Intermediate Tax-Free Bond Opportunities ETF (continued)



		Principal Amount*		Value
	Municipal Bonds (continued)
	Pennsylvania 2.9%
	Allegheny County Higher Education Building Authority, Robert Morris University, 5.00%, 10/15/26		100,000	$	112,495
	Allentown Neighborhood Improvement Zone Development Authority, 5.00%, 5/01/28		100,000		120,425
	Bucks County Industrial Development Authority, Grand View Hospital Obligated Group, 5.00%, 7/01/32		150,000		181,798
	East Hempfield Township Industrial Development Authority, Student Services, Inc., 4.00%, 7/01/21		150,000		150,039
	Franklin County Industrial Development Authority, Menno Haven, Inc. Obligated Group, 5.00%, 12/01/28		100,000		112,031
	Luzerne County Industrial Development Authority, Pennsylvania-American Water Co., AMT, Refunding, VRDN, 2.45%, 12/01/39		100,000		107,049
	Pennsylvania Economic Development Financing Authority, UPMC Obligated Group, Series 2017A, 3.375%, 11/15/33		125,000		136,884
	Philadelphia Authority for Industrial Development, MaST Community Charter School II, 5.00%, 8/01/30		150,000		177,379
	Westmoreland County Industrial Development Authority, Excela Health Obligated Group, Refunding, Series 2020A, 5.00%, 7/01/30		100,000		124,803

					1,222,903

	Puerto Rico 7.2%
a	Commonwealth of Puerto Rico, Refunding, Series 2014A, 8.00%, 7/01/35		260,000		204,750
	Puerto Rico Electric Power Authority,
	Refunding, Series 2007VV, 5.25%, 7/01/27		170,000		200,506
	Refunding, Series 2007VV, 5.25%, 7/01/32		175,000		194,535
	Puerto Rico Highway & Transportation Authority,
	Refunding, Series 2007CC, 5.25%, 7/01/32		200,000		243,721
	Series 2007CC, 5.50%, 7/01/28		155,000		187,247
	Refunding, Series 2007CC, 5.50%, 7/01/29		250,000		304,473
	Puerto Rico Infrastructure Financing Authority,
	Series 2005A, zero cpn., 7/01/29		320,000		226,698
	Refunding, Series 2005C, 5.50%, 7/01/27		100,000		110,652
	Puerto Rico Sales Tax Financing Corp., Sales Tax Revenue, Series 2018A-1, 0.01%, 7/01/31		1,801,000		1,380,629

					3,053,211

	South Carolina 0.3%
	Patriots Energy Group, Gas Sytem Improvement, Refunding, 4.00%, 6/01/33		100,000		112,208

	Tennessee 0.8%
	City of Lawrenceburg, Refunding, 2.50%, 6/01/27		100,000		103,240
	Metropolitan Government of Nashville & Davidson County, Refunding, 4.00%, 7/01/29		100,000		118,566
	Metropolitan Nashville Airport Authority, Subordinate, AMT, Series 2019B, 5.00%, 7/01/30		100,000		128,492

					350,298

	Texas 11.0%
	Arlington Higher Education Finance Corp., Riverwalk Education Foundation, Inc., 4.00%, 8/15/33		100,000		118,390
	City of Cedar Park, Refunding, 5.00%, 2/15/24		100,000		113,181
	City of Celina,
	Special Assessment, 3.625%, 9/01/30		125,000		128,688
	Special Assessment, Refunding, 4.00%, 9/01/30		190,000		209,392
	Wells South Public Improvement District, Special Assessment, 3.125%, 9/01/30		150,000		155,176
	Wells North Public Improvement District, Special Assessment, 3.25%, 9/01/30		180,000		187,715
	Edgewood Creek Public Improvement District, Special Assessment, 3.75%, 9/01/31		180,000		179,995
	City of Fate, Williamsburg East Public Improvement District, Special Assessment, 3.375%, 8/15/30		145,000		150,166
	City of Garland, Refunding, 5.00%, 2/15/27		100,000		123,999
	City of Horseshoe Bay, Escondido Public Improvement District, Special Assessment, Refunding, 3.00%, 10/01/30		140,000		145,084



22	Annual Report	franklintempleton.com

FRANKLIN TEMPLETON ETF TRUST

STATEMENT OF INVESTMENTS

Franklin Liberty Federal Intermediate Tax-Free Bond Opportunities ETF (continued)



		Principal Amount*		Value
	Municipal Bonds (continued)
	Texas (continued)
	City of Kaufman, Public Improvement District No 1, Special Assessment, 3.125%, 9/15/31		100,000	$	99,381
	City of Kyle, Creeks Public Improvement District, Special Assessment, 3.125%, 9/01/30		105,000		105,837
	City of Lago Vista,
	Tessera on Lake Travis Public Improvement District, Special Assessment, Refunding, 3.125%, 9/01/30		130,000		135,537
	Tessera on Lake Travis Public Improvement District, Special Assessment, Refunding, 5.00%, 9/01/30		140,000		140,807
	City of Leander, Oak Creek Public Improvement District, Special Assessment, Refunding, 3.25%, 9/01/32		100,000		107,138
	City of Liberty Hill, Summerlyn West Public Improvement District, Special Assessment, 3.125%, 9/01/30		75,000		77,682
	City of Mclendon-Chisholm, Special Assessment, 3.125%, 9/15/31		240,000		235,583
b	City of Midlothian, 3.50%, 9/15/31		110,000		110,321
	City of Oak Point, Oak Point Public Improvement District No 2, Special Assessment, 3.25%, 9/01/30		155,000		161,513
	City of Princeton, Winchester Public Improvement District, Special Assessment, 3.25%, 9/01/30		100,000		106,984
	City of Royse City, Creekshaw Public Improvement District, Special Assessment, 3.125%, 9/15/25		150,000		153,616
	City of Tomball, Raburn Reserve Public Improvement District, Special Assessment, 3.375%, 9/15/30		100,000		102,873
	County of Hays, La Cima Public Improvement District, Special Assessment, 3.25%, 9/15/30		150,000		156,708
	County of Medina, 3.50%, 9/01/26		100,000		99,998
	Ector County Hospital District, Refunding, 5.00%, 9/15/31		100,000		122,134
	New Hope Cultural Education Facilities Finance Corp.,
	CHF-Collegiate Housing Island Campus LLC, 5.00%, 4/01/29		100,000		106,815
	CHF-Collegiate Housing College Station I LLC, 5.00%, 4/01/29		100,000		100,658
	CHF-Collegiate Housing Corpus Christi II LLC, 5.00%, 4/01/31		100,000		105,384
	CHF-Collegiate Housing Island Campus LLC, 4.00%, 4/01/22		30,000		31,207
	Wesleyan Homes Obligated Group, 4.00%, 1/01/29		80,000		80,494
	Port Freeport, AMT, Series 2019A, 5.00%, 6/01/31		100,000		123,198
	Texas Municipal Gas Acquisition & Supply Corp III, Refunding, 5.00%, 12/15/30		250,000		322,322
	Town of Flower Mound, River Walk Public Improvement District No 1, Special Assessment, Refunding, 3.25%, 9/01/31		150,000		147,264
	Viridian Municipal Management District,
	Viridian Public Improvement District, Special Assessment, 2.375%, 12/01/25		65,000		65,870
	Viridian Public Improvement District, Special Assessment, 2.875%, 12/01/30		100,000		102,167

					4,613,277

	Utah 0.5%
	City of Provo, Refunding, 4.00%, 1/01/23		100,000		106,683
	Utah State Building Ownership Authority, Master Lease Program, 2.50%, 5/15/27		100,000		106,020

					212,703

	Vermont 0.3%
	Vermont Public Power Supply Authority, Project 10, Swanton Peaking Facility, Refunding, Series 2017A, 5.00%, 7/01/28		100,000		122,168

	Virginia 0.5%
	Peninsula Town Center Community Development Authority, Special Assessment, Refunding, 4.50%, 9/01/28		100,000		106,392
	Virginia Small Business Financing Authority, National Senior Campuses, Inc., Obligated Group, Refunding, 5.00%, 1/01/33		100,000		121,530

					227,922

	Washington 2.0%
	City of Seattle, Drainage & Wastewater Revenue, 4.00%, 7/01/28		100,000		119,099
	Skagit County Public Hospital District No 1, Refunding, 5.00%, 12/01/29		100,000		115,493
	Spokane County School District No 356 Central Valley, 5.00%, 12/01/26		100,000		123,963



franklintempleton.com	Annual Report	23

FRANKLIN TEMPLETON ETF TRUST

STATEMENT OF INVESTMENTS

Franklin Liberty Federal Intermediate Tax-Free Bond Opportunities ETF (continued)



	Principal Amount*		Value
Municipal Bonds (continued)
Washington (continued)
University of Washington, Series 2016A, 5.00%, 12/01/26		100,000	$	124,339
Washington Health Care Facilities Authority, Seattle Cancer Care Alliance Obligated Group, 3.00%, 12/01/34		125,000		131,514
Washington State Housing Finance Commission,
Presbyterian Retirement Communities Northwest Obligated Group, Series 2019A, 5.00%, 1/01/34		100,000		111,464
Spokane United Methodist Homes Obligated Group, 5.00%, 1/01/32		100,000		107,346

				833,218

Wisconsin 3.2%
City of Brookfield, Refunding, 3.00%, 12/01/25		115,000		127,761
Public Finance Authority,
Masonic & Eastern Star Home of NC, Inc. Obligated Group, Refunding, 4.00%, 3/01/27		65,000		68,782
Friends Homes Obligated Group, Refunding, 4.00%, 9/01/29		100,000		120,201
UMA Education, Inc., Refunding, 5.00%, 10/01/29		100,000		111,845
UMA Education, Inc., Refunding, 5.00%, 10/01/24		100,000		110,595
Blue Ridge Healthcare Obligated Group, Refunding, 5.00%, 1/01/30		250,000		321,607
WV 2020 Holdings LLC Obligated Group, VRDN, 3.50%, 12/01/50		100,000		99,771
Wisconsin Center District, Series 2020C, zero cpn., 12/15/30		365,000		302,017
Wisconsin Health & Educational Facilities Authority, St John’s Communities, Inc., Obligated Group, Series 2018A, 4.00%, 9/15/27		100,000		103,993

				1,366,572

Total Investments (Cost $40,644,076) 99.7%				41,990,209
Other Assets, less Liabilities 0.3%				121,917

Net Assets 100.0%			$	42,112,126

SeeAbbreviations on page 41.

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

^aSee Note 7 regarding defaulted securities.

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



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

FRANKLIN TEMPLETON ETF TRUST

Financial Highlights

Franklin Liberty Federal Tax-Free Bond ETF^a



	Year Ended March 31,

	2021			2020			2019			2018^b

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

Net asset value, beginning of year	$	26.07		$	25.20		$	24.34		$	25.00


Income from investment operations^c:

Net investment income^d		0.40			0.46			0.67			0.30

Net realized and unrealized gains (losses)		0.94			1.02			0.85			(0.66	)


Total from investment operations		1.34			1.48			1.52			(0.36	)


Less distributions from net investment income		(0.55	)		(0.61	)		(0.66	)		(0.30	)


Net asset value, end of year	$	26.86		$	26.07		$	25.20		$	24.34


Total return^e		5.16%			5.92%			6.38%			(1.45)%

Ratios to average net assets^f

Expenses before waiver and payments by affiliates		0.78%			1.00%			2.05%			1.71%

Expenses net of waiver and payments by affiliates		0.30%			0.30%			0.30%			0.30%

Net investment income		1.50%			1.77%			2.74%			2.11%

Supplemental data

Net assets, end of year (000’s)		$126,221			$28,674			$8,820			$7,302

Portfolio turnover rate^g		11.86%	^h		17.21%	^h		21.21%			5.00%

^aEffective September 14, 2020, Franklin Liberty Municipal Bond ETF was renamed Franklin Liberty Federal Tax-Free Bond ETF.

^bFor the period August 31, 2017 (commencement of operations) to March 31, 2018.

^dBased on average daily shares outstanding.

^fRatios are annualized for periods less than one year.

^gPortfolio turnover rate includes portfolio transactions that are executed as a result of the Fund offering and redeeming Creation Units solely for cash (“Cash creations”).

^hPortfolio turnover rate excluding cash creations was as follows:

11.86%

17.21%



franklintempleton.com	The accompanying notes are an integral part of these financial statements. \| Annual Report	25

FRANKLIN TEMPLETON ETF TRUST

Statement of Investments, March 31, 2021

Franklin Liberty Federal Tax-Free Bond ETF



	Principal Amount*		Value
Municipal Bonds 96.6%
Alabama 2.6%
Black Belt Energy Gas District,
^a4.00%, 12/01/23		435,000	$	475,506
^a4.00%, 12/01/24		475,000		532,913
City of Huntsville, Series 2019A, 5.00%, 5/01/37		250,000		316,037
Lower Alabama Gas District, 4.00%, 12/01/50		1,750,000		1,994,679

				3,319,135

Alaska 0.6%
Alaska Municipal Bond Bank Authority, Refunding, Series 2020-1, 5.00%, 12/01/31		425,000		545,812
Borough of Matanuska-Susitna, State of Alaska Department of Administration, Refunding, 4.00%, 9/01/30		150,000		162,243

				708,055

Arizona 1.8%
City of Phoenix Civic Improvement Corp., Wastewater Revenue, Series 2018A, 5.00%, 7/01/25		100,000		118,709
Glendale Industrial Development Authority, People of Faith, Inc. Obligated Group, 4.00%, 5/15/31		400,000		437,756
Maricopa County Union High School District No 210-Phoenix, Series 2020C, 4.00%, 7/01/36		455,000		542,763
Salt River Project Agricultural Improvement & Power District, Salt River Project, Refunding, 5.00%, 1/01/39		315,000		386,393
Scottsdale Municipal Property Corp., Refunding, 5.00%, 7/01/34		100,000		138,135
University of Arizona, Refunding, 5.00%, 6/01/37		545,000		649,589

				2,273,345

California 6.5%
Anaheim Public Financing Authority, Series 1997C, zero cpn., 9/01/30		2,615,000		2,215,083
Burbank Redevelopment Agency Successor Agency, Refunding, 3.00%, 12/01/32		100,000		109,211
California Health Facilities Financing Authority, Kaiser Foundation Hospitals, Subseries 2017A-2, 4.00%, 11/01/38		1,005,000		1,158,969
Clovis Unified School District, Refunding, zero cpn., 8/01/35		200,000		131,993
Konocti Unified School District, Series 2004C, zero cpn., 8/01/28		150,000		127,992
Los Angeles Department of Water & Power System Revenue, Series 2018D, 5.00%, 7/01/31		400,000		509,577
Perris Joint Powers Authority, Refunding, Series 2017B, 5.00%, 9/01/37		100,000		117,069
Sacramento Municipal Utility District, Electric System Revenue, 5.00%, 8/15/38		500,000		654,252
Sierra View Local Health Care District, Tulare County, Refunding, 4.00%, 7/01/26		500,000		568,600
South Tahoe Joint Powers Financing Authority, Project Area 1, Refunding, Series 2017A, 5.00%, 10/01/30		100,000		121,161
State of California, Refunding, 3.00%, 10/01/37		2,220,000		2,421,973
University of California, Limited Project, Series 2017M, 5.00%, 5/15/34		100,000		123,689

				8,259,569

Colorado 4.5%
Adams & Weld Counties School District No 27J Brighton, 5.00%, 12/01/42		100,000		122,116
Arapahoe County School District No 5 Cherry Creek, Series 2017C, 5.00%, 12/15/35		100,000		124,182
Board of Governors of Colorado State University System, Refunding, Series 2017A, 4.00%, 3/01/35		115,000		132,191
City of Colorado Springs, Utilities System Revenue, Refunding, Series 2017A-1, 4.00%, 11/15/33		100,000		116,769
City of Greeley, Water Revenue, 4.00%, 8/01/31		100,000		118,313
City of Westminster, Water & Wastewater Utility Revenue, Refunding, 5.00%, 12/01/30		200,000		268,650
Colorado Water Resources & Power Development Authority State Revolving Fund, Series 2019A, 4.00%, 9/01/31		150,000		182,575
Denver City & County School District No 1, 3.00%, 12/01/36		500,000		563,717
Regional Transportation District,
Denver Transit Partners LLC, Refunding, 5.00%, 7/15/31		900,000		1,163,587
Denver Transit Partners LLC, Refunding, 5.00%, 1/15/32		250,000		322,486
Sterling Ranch Community Authority Board, Sterling Ranch Colorado Metropolitan District No 2, Refunding, Series 2020A, 3.375%, 12/01/30		100,000		108,654



26	Annual Report	franklintempleton.com

FRANKLIN TEMPLETON ETF TRUST

STATEMENT OF INVESTMENTS

Franklin Liberty Federal Tax-Free Bond ETF (continued)



	Principal Amount*		Value
Municipal Bonds (continued)
Colorado (continued)
Weld County School District No Re-5J, 4.00%, 12/01/40		2,000,000	$	2,413,519

				5,636,759

Connecticut 2.7%
Connecticut State Health & Educational Facilities Authority, Yale-New Haven Health Obligated Group, Refunding, Series 2014B, VRDN, 1.80%, 7/01/49		225,000		233,518
State of Connecticut,
Series 2020C, 4.00%, 6/01/37		1,000,000		1,183,553
Series 2021A, 3.00%, 1/15/33		500,000		556,152
Series 2021A, 3.00%, 1/15/34		1,000,000		1,102,445
Special Tax, Transportation Infrastructure Purposes, Series 2015A, 5.00%, 8/01/31		320,000		375,069

				3,450,737

Delaware 0.6%
Delaware Transportation Authority, Refunding, 4.00%, 7/01/37		365,000		438,287
University of Delaware, 5.00%, 11/01/37		250,000		317,139

				755,426

District of Columbia 0.5%
District of Columbia, Income Tax Revenue, Series 2019A, 5.00%, 3/01/33		500,000		651,358

Florida 3.8%
City of Fort Myers, Utility System Revenue, Series 2019A, 4.00%, 10/01/34		500,000		587,968
City of Gainesville, Utilities System Revenue, Series 2017A, 5.00%, 10/01/36		250,000		308,711
City of Pompano Beach, John Knox Village of Florida, Inc., Obligated Group, 3.50%, 9/01/30		250,000		272,159
County of Miami-Dade,
Aviation Revenue, Refunding, Series 2020A, 4.00%, 10/01/34		1,000,000		1,191,417
Transit System, Refunding, 4.00%, 7/01/36		600,000		704,052
County of Pasco, Series 2019B, 5.00%, 10/01/36		455,000		582,151
County of Sarasota,
5.00%, 10/01/34		250,000		324,865
Utility System Revenue, Refunding, Series 2019A, 5.00%, 10/01/34		100,000		127,582
State of Florida, Department of Transportation Turnpike System Revenue, Refunding, Series 2020A, 3.00%, 7/01/36		650,000		718,907

				4,817,812

Georgia 3.0%
City of Atlanta, Department of Aviation, Series 2019A, 5.00%, 7/01/34		175,000		222,007
Cobb County Kennestone Hospital Authority, WellStar Health System Obligated Group, 3.00%, 4/01/37		910,000		961,590
Coweta County, Water & Sewage Authority, Refunding, 4.00%, 6/01/35		100,000		118,274
Georgia State Road & Tollway Authority, 5.00%, 6/01/32		1,500,000		1,976,018
Main Street Natural Gas, Inc.,
Series 2018A, VRDN, 4.00%, 4/01/48		100,000		108,005
Series 2018B, Monthly, VRDN, 0.823%, 4/01/48		425,000		427,378

				3,813,272

Hawaii 0.2%
State of Hawaii, State Highway Fund, Refunding, Series 2016B, 5.00%, 1/01/29		255,000		308,913

Illinois 7.1%
City of Chicago,
zero cpn.,1/01/31		1,000,000		777,832
Wastewater Transmission Revenue, Refunding, Series 1998A, zero cpn.,1/01/27		1,580,000		1,468,895
County of Cook,
Sales Tax Revenue, Refunding, Series 2021A, 4.00%, 11/15/39		1,250,000		1,463,442
Sales Tax Revenue, Refunding, Series 2021A, 4.00%, 11/15/40		500,000		583,685
Illinois Finance Authority,
Field Museum of Natural History, Refunding, Monthly, VRDN, 0.584%, 11/01/34		290,000		288,837
State of Illinois Water Revolving Fund, Clean Water Program, 4.00%, 7/01/38		1,500,000		1,802,941



franklintempleton.com	Annual Report	27

FRANKLIN TEMPLETON ETF TRUST

STATEMENT OF INVESTMENTS

Franklin Liberty Federal Tax-Free Bond ETF (continued)



	Principal Amount*		Value
Municipal Bonds (continued)
Illinois (continued)
State of Illinois,
Series 2020B, 5.00%, 10/01/31		750,000	$	926,632
Series 2019B, 4.00%, 11/01/38		200,000		218,606
5.50%, 5/01/30		100,000		127,801
5.50%, 5/01/39		250,000		307,797
Refunding, 5.00%, 2/01/28		700,000		822,298
Upper Illinois River Valley Development Authority, 2018 IAVF Timber Oaks & Prairie View Obligated Group, Refunding, 3.50%, 12/01/32		150,000		151,554

				8,940,320

Indiana 0.2%
East Allen Multi School Building Corp., East Allen County Schools, 5.00%, 1/15/38		250,000		303,086

Iowa 2.2%
Iowa Finance Authority, Iowa Finance Authority State Revolving Fund, Series 2020A, 5.00%, 8/01/33		2,130,000		2,834,040

Kansas 0.1%
Douglas County Unified School District No 497 Lawrence, Series 2017A, 3.50%, 9/01/32		100,000		109,895

Kentucky 0.8%
Kentucky Municipal Power Agency, Prairie State Project, Refunding, 5.00%, 9/01/34		285,000		346,445
Louisville/Jefferson County Metropolitan Government, Norton Healthcare Obligated Group, VRDN, 5.00%, 10/01/47		500,000		646,308

				992,753

Louisiana 2.2%
City of New Orleans, Sewerage Service Revenue, Series 2020B, 5.00%, 6/01/30		800,000		1,027,291
Consolidated Govt of the City of Baton Rouge & Parish of E Baton Rouge Sales Tax, Refunding, 5.00%, 8/01/30		250,000		328,230
State of Louisiana, Series 2017B, 4.00%, 10/01/34		240,000		280,250
Terrebonne Levee & Conservation District, Green Bond, Series 2020B, 4.00%, 6/01/39		1,000,000		1,123,680

				2,759,451

Maine 0.6%
Maine Municipal Bond Bank, Series 2017C, 5.00%, 11/01/31		135,000		167,255
Maine State Housing Authority, Series 2018F, 3.85%, 11/15/33		500,000		546,758

				714,013

Maryland 1.5%
City of Baltimore, Water Project, Series 2020A, 4.00%, 7/01/37		1,030,000		1,246,624
County of Prince George’s, Series 2017A, 3.00%, 9/15/32		100,000		110,302
Maryland Health & Higher Educational Facilities Authority, Adventist Healthcare Obligated Group, Refunding, 4.00%, 1/01/30		365,000		416,913
State of Maryland, Series 2019-1, 5.00%, 3/15/32		135,000		174,016

				1,947,855

Massachusetts 4.1%
Commonwealth of Massachusetts,
Series 2019G, 5.00%, 9/01/27		550,000		697,093
Consolidated Loan, Series 2020, 5.00%, 7/01/37		350,000		452,933
Refunding, Series 2020D, 3.00%, 11/01/38		1,000,000		1,094,028
Massachusetts Bay Transportation Authority, Sustainability Bond, Series 2017A-1, 5.00%, 7/01/33		100,000		123,311
Massachusetts Development Finance Agency,
Worcester Polytechnic Institute, 4.00%, 9/01/44		400,000		450,899
Beth Israel Lahey Health Obligated Group, Refunding, Series 2016I, 5.00%, 7/01/34		490,000		584,020
Massachusetts Water Resources Authority, Series 2020B, 5.00%, 8/01/36		1,000,000		1,311,941
Town of Braintree, 4.00%, 6/01/32		250,000		296,722
University of Massachusetts, Refunding, Series 2019-1, 5.00%, 5/01/31		100,000		129,158

				5,140,105



28	Annual Report	franklintempleton.com

FRANKLIN TEMPLETON ETF TRUST

STATEMENT OF INVESTMENTS

Franklin Liberty Federal Tax-Free Bond ETF (continued)



	Principal Amount*		Value
Municipal Bonds (continued)
Michigan 1.7%
Lansing Board of Water & Light, Refunding, Series 2019A, 5.00%, 7/01/35		225,000	$	288,128
Michigan Finance Authority, Tobacco Settlement Revenue, Refunding, Class 2, Series 2020B-1, 1.25%, 6/01/30		500,000		501,129
State of Michigan, Trunk Line Revenue, 5.00%, 11/15/32		1,000,000		1,332,611

				2,121,868

Minnesota 2.5%
City of Center City, Hazelden Betty Ford Foundation, Refunding, 4.00%, 11/01/34		125,000		141,421
Dakota County Community Development Agency, Refunding, Series 2020B, 5.00%, 1/01/28		1,000,000		1,272,420
Minnesota Higher Education Facilities Authority, Macalester College, 3.00%, 3/01/35		500,000		528,856
Minnesota Housing Finance Agency,
Series 2019A, 4.00%, 8/01/34		250,000		296,327
Series 2020D, 4.00%, 8/01/29		500,000		611,882
Northern Municipal Power Agency, Refunding, 5.00%, 1/01/36		100,000		117,025
Southern Minnesota Municipal Power Agency, Series 2017A, 5.00%, 1/01/31		100,000		123,097

				3,091,028

Missouri 1.8%
Curators of the University of Missouri, Refunding, Series 2020B, 5.00%, 11/01/30		500,000		671,622
Health & Educational Facilities Authority of the State of Missouri, St Luke’s Episcopal-Presbyterian Hospitals Obligated Group, 4.00%, 12/01/35		755,000		859,914
Kansas City Industrial Development Authority, Airport Revenue, AMT, 5.00%, 3/01/33		500,000		629,108
Park Hill School District of Platte County, 3.00%, 3/01/33		100,000		107,251

				2,267,895

Montana 0.1%
Cascade County High School District A Great Falls, 5.00%, 7/01/25		100,000		117,971

Nevada 0.6%
City of Las Vegas, Refunding, Series 2019C, 4.00%, 6/01/32		500,000		574,490
Clark County School District, Series 2017A, 5.00%, 6/15/26		100,000		121,109

				695,599

New Hampshire 0.1%
New Hampshire Health and Education Facilities Authority Act, University System of New Hampshire Obligated Group, Refunding, Series 2017A, 5.00%, 7/01/27		100,000		124,351

New Jersey 7.7%
New Jersey Economic Development Authority,
Municipal Rehabilitation, Refunding, Series 2019A, VRDN, 5.25%, 4/01/28		1,000,000		1,258,534
State of New Jersey Department of the Treasury, Refunding, Weekly, VRDN, 1.65%, 3/01/28		1,000,000		1,002,433
New Jersey Transportation Trust Fund Authority,
5.00%, 6/15/34		1,000,000		1,221,936
Series 2006C, zero cpn.,12/15/29		870,000		753,763
Series 2020AA, 4.00%, 6/15/36		1,000,000		1,144,821
New Jersey Turnpike Authority, Series 2021A, 4.00%, 1/01/42		625,000		729,972
Pinelands Regional School District, 3.00%, 8/01/27		100,000		110,482
State of New Jersey,
COVID-19 General Obligation Emergency Bonds, Series 2020A, 4.00%, 6/01/32		2,000,000		2,460,976
COVID-19 General Obligation Emergency Bonds, Series 2020A, 3.00%, 6/01/32		940,000		1,047,467

				9,730,384

New Mexico 0.1%
City of Santa, Wastewater Utility System Revenue, 4.00%, 6/01/35		100,000		116,159

New York 9.7%
City of New York,
Subseries 2018F-1, 5.00%, 4/01/37		500,000		610,200
Series 2017B-1, 4.00%, 10/01/36		100,000		115,576



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FRANKLIN TEMPLETON ETF TRUST

STATEMENT OF INVESTMENTS

Franklin Liberty Federal Tax-Free Bond ETF (continued)



	Principal Amount*		Value
Municipal Bonds (continued)
New York (continued)
Long Island Power Authority, Series 2019A, 5.00%, 9/01/28		300,000	$	385,642
Metropolitan Transportation Authority,
Climate Bond Certified, 5.00%, 11/15/32		500,000		639,202
Libor Variable, Refunding, Subseries 2012G-4, Monthly, VRDN, 0.627%, 11/01/30		1,000,000		996,203
Green Bond, Refunding, Series 2017B, 5.00%, 11/15/28		100,000		125,261
New York City Industrial Development Agency,
Yankee Stadium LLC, Refunding, 5.00%, 3/01/30		1,000,000		1,288,602
Yankee Stadium LLC, Refunding, 2.50%, 3/01/37		1,000,000		1,008,003
Queens Ballpark Co. LLC, Refunding, 5.00%, 1/01/26		1,000,000		1,200,662
New York City Transitional Finance Authority, Future Tax Secured Revenue, Subseries 2017B-1, 5.00%, 8/01/34		100,000		122,784
New York City Water & Sewer System, 5.00%, 6/15/26		1,000,000		1,225,362
New York Liberty Development Corp., Goldman Sachs Headquarters LLC, Refunding, 5.25%, 10/01/35		1,300,000		1,829,890
New York State Dormitory Authority,
Refunding, 3.00%, 10/01/33		100,000		106,912
Sales Tax Revenue, Series 2018A, Group 2, 5.00%, 3/15/33		670,000		830,839
Rochester Institute of Technology, 5.00%, 7/01/39		300,000		372,839
New York State Urban Development Corp., State of New York Personal Income Tax Revenue, Series 2013C, 5.00%, 3/15/31		630,000		686,314
New York Transportation Development Corp.,
JFK International Air Terminal LLC, AMT, Refunding, 5.00%, 12/01/30		100,000		126,115
JFK International Air Terminal LLC, Refunding, 5.00%, 12/01/34		500,000		620,577

				12,290,983

North Carolina 0.2%
City of Winston-Salem, Water & Sewer System Revenue, 4.00%, 6/01/33		100,000		116,460
University of North Carolina at Charlotte, 4.00%, 10/01/34		100,000		113,766

				230,226

Ohio 2.2%
American Municipal Power, Inc., Refunding, 5.00%, 2/15/33		705,000		908,985
City of Columbus, Series 2017A, 3.00%, 4/01/28		100,000		112,421
County of Franklin,
Nationwide Children’s Hospital, Inc., 3.125%, 11/01/33		50,000		54,061
Sales Tax Revenue, 5.00%, 6/01/43		450,000		550,929
Hudson City School District, 4.00%, 12/01/31		100,000		113,784
Licking Heights Local School District, 5.00%, 10/01/30		100,000		123,243
Northeast Ohio Regional Sewer District,
Refunding, 3.00%, 11/15/35		500,000		559,416
Refunding, 4.00%, 11/15/34		100,000		118,052
Ohio Water Development Authority, Refunding, 4.00%, 12/01/30		100,000		125,243
State of Ohio, Highway, Series 2016S, 5.00%, 5/01/23		100,000		110,022

				2,776,156

Oklahoma 0.8%
City of Oklahoma City, 4.00%, 3/01/33		500,000		575,190
Oklahoma Water Resources Board, Series 2020A, 2.25%, 10/01/36		400,000		414,781

				989,971

Oregon 4.4%
City of Beaverton, Water Revenue, 5.00%, 4/01/34		500,000		648,557
Clackamas County School District No 7J Lake Oswego, 5.00%, 6/01/29		310,000		385,527
County of Washington, 5.00%, 3/01/25		175,000		205,759
Deschutes County Hospital Facilities Authority, St Charles Health System Obligated Group, 4.00%, 1/01/38		1,000,000		1,161,063
Portland Community College District, 5.00%, 6/15/25		100,000		118,671



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FRANKLIN TEMPLETON ETF TRUST

STATEMENT OF INVESTMENTS

Franklin Liberty Federal Tax-Free Bond ETF (continued)



	Principal Amount*		Value
Municipal Bonds (continued)
Oregon (continued)
Salem-Keizer School District No 24J,
Series 2020C, 4.00%, 6/15/36		500,000	$	602,214
Series 2020B, 0.00%, 6/15/30		1,815,000		2,398,472
State of Oregon Housing & Community Services Department, Series 2017D, 3.15%, 7/01/32		85,000		90,440

				5,610,703

Pennsylvania 3.8%
Albert Gallatin Area School District, Series 2020B, 4.00%, 9/01/27		1,000,000		1,176,165
Delaware Valley Regional Finance Authority, Series 1998A, 5.50%, 8/01/28		810,000		1,044,827
Geisinger Authority, Geisinger Health System Obligated Group, 4.00%, 4/01/39		1,775,000		2,077,469
Pennsylvania Economic Development Financing Authority, UPMC Obligated Group, Series 2017A, 3.375%, 11/15/33		125,000		136,884
Pennsylvania State University, Series 2019A, 5.00%, 9/01/38		250,000		318,102

				4,753,447

Puerto Rico 0.7%
Puerto Rico Highway & Transportation Authority,
Refunding, Series 2007N, 5.25%, 7/01/36		200,000		249,099
Series 2007CC, 5.50%, 7/01/28		550,000		664,425

				913,524

South Dakota 1.1%
South Dakota Board of Regents Housing & Auxiliary Facilities System, Refunding, 3.00%, 4/01/34		1,230,000		1,351,902

Tennessee 0.9%
Chattanooga Health Educational & Housing Facility Board, CommonSpirit Health Obligated Group, Series 2019A-1, 5.00%, 8/01/25		250,000		293,371
City of Kingsport, Series 2017B, 3.00%, 3/01/35		130,000		137,928
City of Lawrenceburg, Refunding, 2.50%, 6/01/27		100,000		103,239
Metropolitan Government of Nashville & Davidson County, Refunding, 4.00%, 7/01/29		100,000		118,566
Water & Sewer Revenue, Series 2017A, 5.00%, 7/01/36		100,000		122,424
Tennessee Housing Development Agency, Refunding, 1.95%, 1/01/26		250,000		261,691
Tennessee State School Bond Authority, Higher Educational Facility 2nd Program, 5.00%, 11/01/37		100,000		122,734


				1,159,953

Texas 5.8%
Central Texas Regional Mobility Authority, Senior Lien, Refunding, Series 2020B, 5.00%, 1/01/33		400,000		509,252
City of El Paso, Water & Sewer Revenue, 4.00%, 3/01/33		100,000		114,183
City of Fort Worth, Water & Sewer System Revenue, 5.00%, 2/15/32		295,000		367,650
City of Round Rock, Utility System Revenue, Refunding, 2.75%, 8/01/29		100,000		106,686
Cypress-Fairbanks Independent School District, 4.00%, 2/15/34		750,000		913,750
Lamar Consolidated Independent School District, 4.00%, 2/15/30		600,000		729,304
Lewisville Independent School District, 5.00%, 8/15/32		750,000		978,019
Pflugerville Independent School District, Series 2019A, 5.00%, 2/15/29		100,000		126,740
Texas A&M University, Refunding, Series 2017C, 5.00%, 5/15/33		100,000		122,829
Texas Municipal Gas Acquisition & Supply Corp III, Refunding, 5.00%, 12/15/31		1,000,000		1,308,381
Refunding, 5.00%, 12/15/32		1,000,000		1,323,584
Texas Water Development Board, State Water Implementation Revenue Fund, Series 2017A, 4.00%, 10/15/35		500,000		588,738
State Water Implementation Revenue Fund, Series 2017A, 4.00%, 10/15/33		115,000		135,981


				7,325,097

Utah 1.6%
City of Provo, Refunding, 4.00%, 1/01/23		100,000		106,683



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FRANKLIN TEMPLETON ETF TRUST

STATEMENT OF INVESTMENTS

Franklin Liberty Federal Tax-Free Bond ETF (continued)



	Principal Amount*		Value
Municipal Bonds (continued)
Utah (continued)
City of South Jordan, 5.00%, 8/15/38		325,000	$	412,850
Utah Infrastructure Agency, 4.00%, 10/15/30		500,000		598,264
Utah State Building Ownership Authority, Master Lease Program, 2.50%, 5/15/27		100,000		106,020
Utah Transit Authority, Refunding, Series 2015A, 5.00%, 6/15/29		500,000		586,979
Utah Water Finance Agency, Central Valley Water Reclamation Facility, Series 2019B, 5.00%, 3/01/38		200,000		250,750


				2,061,546

Virginia 0.6%
County of Arlington, 4.00%, 6/15/35		500,000		602,338
Virginia College Building Authority, 5.00%, 9/01/32		100,000		127,382


				729,720

Washington 1.7%
City of Seattle,
Drainage & Wastewater Revenue, 4.00%, 4/01/31		125,000		142,586
Municipal Light & Power Revenue, Series 2017C, 4.00%, 9/01/35		700,000		808,230
King & Snohomish Counties School District No 417 Northshore, 5.00%, 12/01/31		100,000		126,120
Spokane County School District No 356 Central Valley,
5.00%, 12/01/26		100,000		123,963
5.00%, 12/01/28		310,000		390,896
Washington Health Care Facilities Authority,
Multicare Health System Obligated Group, Refunding, Series 2017B, 5.00%, 8/15/29		125,000		156,987
Seattle Cancer Care Alliance Obligated Group, 5.00%, 12/01/32		250,000		328,678


				2,077,460

Wisconsin 2.1%
City of Brookfield, Refunding, 3.00%, 12/01/25		100,000		111,096
Public Finance Authority, WV 2020 Holdings LLC Obligated Group, VRDN, 3.50%, 12/01/50		200,000		199,543
State of Wisconsin, Series 2020A, 5.00%, 5/01/31		1,365,000		1,736,982
Wisconsin Center District, Series 2020C, zero cpn., 12/15/30		680,000		562,662


				2,610,283

Wyoming 0.8%
County of Laramie, Cheyenne Regional Medical Center, Refunding, 3.00%, 5/01/42		1,000,000		1,051,761

Total Investments (Cost $120,483,091) 96.6%				121,933,886
Other Assets, less Liabilities 3.4%				4,287,089

Net Assets 100.0%			$	126,220,975

See Abbreviations on page 41.

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

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



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FRANKLIN TEMPLETON ETF TRUST

FINANCIAL STATEMENTS

Statements of Assets and Liabilities

March 31, 2021



	Franklin Liberty Federal Intermediate Tax-Free Bond Opportunities ETF		Franklin Liberty Federal Tax-Free Bond ETF
Assets:
Investments in securities:
Cost – Unaffiliated issuers	$	40,644,076	$	120,483,091

Value – Unaffiliated issuers	$	41,990,209	$	121,933,886
Cash		1,049,968		4,891,533
Receivables:
Interest		346,577		1,056,282
Investment securities sold		—		1,668,070
Affiliates		7,856		—

Total assets		43,394,610		129,549,771

Liabilities:
Payables:
Investment securities purchased		1,121,889		3,025,959
Management fees		—		7,339
Transfer agent fees		12,000		12,000
Trustees’ fees and expenses		27		64
Distributions to shareholders		97,930		224,505
Custodian fees		936		1,034
Professional fees		23,589		23,589
Reports to shareholders		5,935		5,740
Registration and filing fees		11,966		20,350
Accrued expenses and other liabilities		8,212		8,216

Total liabilities		1,282,484		3,328,796

Net assets, at value	$	42,112,126	$	126,220,975

Net assets consist of:
Paid-in capital	$	41,052,871	$	125,610,155
Total distributable earnings (loss)		1,059,255		610,820

Net assets, at value	$	42,112,126	$	126,220,975

Shares outstanding		1,600,000		4,700,000

Net asset value per share	$	26.32	$	26.86



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FRANKLIN TEMPLETON ETF TRUST

FINANCIAL STATEMENTS

Statements of Operations

for the year ended March 31, 2021



	Franklin Liberty Federal Intermediate Tax-Free Bond Opportunities ETF			Franklin Liberty Federal Tax-Free Bond ETF
Investment income:
Interest:
Unaffiliated issuers	$	667,071		$	1,194,202

Total investment income		667,071			1,194,202

Expenses:
Management fees (Note 3a)		160,802			408,858
Transfer agent fees		15,600			15,600
Custodian fees		1,262			1,450
Reports to shareholders		9,642			10,280
Registration and filing fees		14,958			23,365
Professional fees		45,107			45,250
Trustee fees (Note 3a)		1,160			2,768
Other		10,387			10,616

Total expenses		258,918			518,187
Expenses waived/paid by affiliates (Note 3c)		(181,733	)		(319,303	)

Net expenses		77,185			198,884

Net investment income		589,886			995,318

Realized and unrealized gains (losses):
Net realized gain (loss) from:
Investments:
Unaffiliated issuers		(100,405	)		(62,096	)

Net realized gain (loss)		(100,405	)		(62,096	)

Net change in unrealized appreciation (depreciation) on:
Investments:
Unaffiliated issuers		1,451,268			616,576

Net change in unrealized appreciation (depreciation)		1,451,268			616,576

Net realized and unrealized gain (loss)		1,350,863			554,480

Net increase (decrease) in net assets resulting from operations	$	1,940,749		$	1,549,798



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FRANKLIN TEMPLETON ETF TRUST

FINANCIAL STATEMENTS

Statements of Changes in Net Assets



	Franklin Liberty Federal Intermediate Tax-Free Bond Opportunities ETF						Franklin Liberty Federal Tax-Free Bond ETF

	Year Ended March 31, 2021			Year Ended March 31, 2020			Year Ended March 31, 2021			Year Ended March 31, 2020
Increase (decrease) in net assets:
Operations:
Net investment income	$	589,886		$	210,664		$	995,318		$	383,073
Net realized gain (loss)		(100,405	)		(14,462	)		(62,096	)		(195,163	)
Net change in unrealized appreciation (depreciation)		1,451,268			(215,491	)		616,576			681,191

Net increase (decrease) in net assets resulting from operations		1,940,749			(19,289	)		1,549,798			869,101

Distributions to shareholders (Note 1d)		(611,513	)		(240,496	)		(1,352,931	)		(528,067	)

Capital share transactions: (Note 2)		28,420,573			5,132,298			97,349,967			19,513,471

Net increase (decrease) in net assets		29,749,809			4,872,513			97,546,834			19,854,505
Net assets:
Beginning of year		12,362,317			7,489,804			28,674,141			8,819,636

End of year	$	42,112,126		$	12,362,317		$	126,220,975		$	28,674,141



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FRANKLIN TEMPLETON ETF TRUST

Notes to Financial Statements

1. Organization and Significant Accounting Policies

Effective 09/14/2020, the following name changes occurred:

Old name

*	Franklin Liberty Intermediate Municipal Opportunities ETF

*	Franklin Liberty Municipal Bond ETF

New name

*	Franklin Liberty Federal Intermediate Tax-Free Bond Opportunities ETF

*	Franklin Liberty Federal Tax-Free Bond ETF

The following summarizes the Fund’s significant accounting policies.

a. Financial Instrument Valuation

The Funds may utilize independent pricing services, quotations from securities and financial instrument dealers, and other market sources to determine fair value.

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.

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

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



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FRANKLIN TEMPLETON ETF TRUST

NOTES TO FINANCIAL STATEMENTS

1. Organization and Significant Accounting Policies (continued)

sustained upon examination by the tax authorities based on its technical merits. As of March 31, 2021, 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.

d. Security Transactions, Investment Income, Expenses and Distributions

Security transactions are accounted for on trade date. Realized gains and losses on security transactions are determined on a specific identification basis. Interest income and estimated expenses are accrued daily. Amortization of premium and accretion of discount on debt securities are included in interest income. 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



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FRANKLIN TEMPLETON ETF TRUST

NOTES TO FINANCIAL STATEMENTS

2. Shares of Beneficial Interest (continued)

At March 31, 2021, there were an unlimited number of shares authorized (without par value). Transactions in the Funds’ shares were as follows:



	Franklin Liberty Federal Intermediate Tax-Free Bond Opportunities ETF

	Year Ended March 31, 2021						Year Ended March 31, 2020

	Shares			Amount			Shares			Amount
Shares sold		1,100,000		$	28,420,573			250,000		$	6,287,252
Shares redeemed		—			—			(50,000	)		(1,154,954	)

Net increase (decrease)		1,100,000		$	28,420,573			200,000		$	5,132,298


	Franklin Liberty Federal Tax-Free Bond ETF

	Year Ended March 31, 2021						Year Ended March 31, 2020

	Shares			Amount			Shares			Amount
Shares sold		3,650,000		$	98,699,200			800,000		$	20,827,910
Shares redeemed		(50,000	)		(1,349,233	)		(50,000	)		(1,314,439	)

Net increase (decrease)		3,600,000		$	97,349,967			750,000		$	19,513,471

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

3. Transactions with Affiliates (continued)

a. Management Fees (continued)

For the year ended March 31, 2021, each Fund’s gross effective investment management fee rate based on average daily net

assets was as follows:


		Annualized Fee Rate
Franklin Liberty Federal Intermediate Tax-Free Bond Opportunities ETF		0.625%
Franklin Liberty Federal Tax-Free Bond ETF		0.617%

b. Administrative Fees

c. Waiver and Expense Reimbursements

Advisers have contractually agreed in advance to waive or limit its fees and to assume as their 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, 2021. Total expenses waived or paid are not subject to recapture subsequent to the Funds’ fiscal year end.

d. Other Affiliated Transactions

At March 31, 2021, the shares of the Funds were owned by the following entities:



Fund	Shares		Outstanding Shares^a

Franklin Liberty Federal Intermediate Tax-Free Bond Opportunities ETF
Franklin High Yield Tax-Free Income		1,255,000		78.4%

Franklin Liberty Federal Tax-Free Bond ETF
Franklin Federal Limited-Term Tax-Free Income Fund		2515000		53.5%
Franklin Federal Intermediate-Term Tax-Free Income Fund		1,400,000		29.8%

		3,915,000		83.3%

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

4. Income Taxes

For tax purposes, capital losses may be carried over to offset future capital gains. At March 31, 2021, the capital loss carryforwards were as follows:



	Franklin Liberty Federal Intermediate Tax-Free Bond Opportunities ETF		Franklin Liberty Federal Tax-Free Bond ETF
Capital loss carryforwards not subject to expiration:
Short term	$	75,122	$	319,758
Long term		162,794		39,440

Total capital loss carryforwards	$	237,916	$	359,198



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FRANKLIN TEMPLETON ETF TRUST

NOTES TO FINANCIAL STATEMENTS

4. Income Taxes (continued)

The tax character of distributions paid during the year ended March 31, 2021 and 2020 were as follows:



	Franklin Liberty Federal Intermediate Tax-Free Bond Opportunities ETF				Franklin Liberty Federal Tax-Free Bond ETF

	2021		2020		2021		2020
Distributions paid from:
Tax exempt income	$	611,513	$	240,496	$	1,352,931	$	528,067
Ordinary income		—		—		—		—

Distributions paid from ordinary income	$	611,513	$	240,496	$	1,352,931	$	528,067

At March 31, 2021, the cost of investments, net unrealized appreciation (depreciation) and undistributed ordinary income for income tax purposes were as follows:



	Franklin Liberty Federal Intermediate Tax-Free Bond Opportunities ETF			Franklin Liberty Federal Tax-Free Bond ETF
Cost of investments	$	40,680,205		$	120,907,092

Unrealized appreciation	$	1,498,956		$	2,443,007
Unrealized depreciation		(188,952	)		(1,416,213	)

Net unrealized appreciation (depreciation)	$	1,310,004		$	1,026,794

Distributions earning – undistributed tax except income	$	85,097		$	167,729

5. Investment Transactions

Purchases and sales of investments (excluding short term securities and in-kind transactions, if any) for the year ended March 31, 2021, were as follows:



	Franklin Liberty Federal Intermediate Tax-Free Bond Opportunities ETF		Franklin Liberty Federal Tax-Free Bond ETF
Purchases	$	33,870,290	$	101,770,384
Sales	$	3,536,950	$	7,859,505

6. Novel Coronavirus Pandemic

7. Credit Risk and Defaulted Securities

At March 31, 2021, Franklin Liberty Federal Intermediate Tax-Free Bond Opportunities ETF had 49.94% and Franklin Liberty Federal Tax-Free Bond ETF had 0.46% 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.



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FRANKLIN TEMPLETON ETF TRUST

NOTES TO FINANCIAL STATEMENTS

7. Credit Risk and Defaulted Securities (continued)

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 March 31, 2021, the aggregate long value of distressed company securities for which interest recognition has been discontinued representing 1.02% of the Fund’s net assets. For information as to specific securities, see the accompanying Statement of Investments.

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.

At March 31, 2021, all of the Fund’s investments in financial instruments carried at fair value were valued using Level 2 inputs.

9. New Accounting Pronouncements

In March 2020, the Financial Accounting Standards Board (FASB) issued Accounting Standards Update (ASU) No. 2020-04, Reference Rate Reform (Topic 848)–Facilitation of the Effects of Reference Rate Reform on Financial Reporting. The amendments in the ASU provides optional temporary financial reporting relief from the effect of certain types of contract modifications due to the planned discontinuation of the London Interbank Offered Rate (LIBOR) and other interbank-offered based reference rates as of the end of 2021. The ASU is effective for certain reference rate-related contract modifications that occur during the period March 12, 2020 through December 31, 2022. Management has reviewed the requirements and believes the adoption of this ASU will not have a material impact on the financial statements.

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
CSCDA		California Statewide Communities Development Authority



franklintempleton.com	Annual Report	41

FRANKLIN TEMPLETON ETF TRUST

Report of Independent Registered Public Accounting Firm

To the Board of Trustees of Franklin Templeton ETF Trust and Shareholders of Franklin Liberty Intermediate Municipal Opportunities ETF and Franklin Liberty Municipal Bond ETF

Opinions on the Financial Statements

We have audited the accompanying statements of assets and liabilities, including the statements of investments, of Franklin Liberty Intermediate Municipal Opportunities ETF and Franklin Liberty Municipal Bond ETF (two of the funds constituting Franklin Templeton ETF Trust, hereafter collectively referred to as the “Funds”) as of March 31, 2021, the related statements of operations for the year ended March 31, 2021, the statements of changes in net assets for each of the two years in the period ended March 31, 2021, including the related notes, and the financial highlights for each of the periods indicated therein (collectively referred to as the “financial statements”). In our opinion, the financial statements present fairly, in all material respects, the financial position of each of the Funds as of March 31, 2021, the results of each of their operations for the year then ended, the changes in each of their net assets for each of the two years in the period ended March 31, 2021 and each of the financial highlights for each of the periods indicated therein in conformity with accounting principles generally accepted in the United States of America.

Basis for Opinions

PricewaterhouseCoopers LLP

San Francisco, California

May 20, 2021

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



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FRANKLIN TEMPLETON ETF TRUST

Tax information (unaudited)

Under Section 852(b)(5)(A) of the Internal Revenue Code, the Funds hereby report 100% of the distributions paid from net investment income as exempt-interest dividends for the fiscal year ended March 31, 2021. A portion of the Funds’ exempt interest dividends may be subject to the federal alternative minimum tax. By mid-February 2022, shareholders will be notified of amounts for use in preparing their 2021 income tax returns.



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FRANKLIN TEMPLETON ETF TRUST

Board Members and Officers

Independent Board Members



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

Rohit Bhagat (1964) One Franklin Parkway San Mateo, CA 94403-1906	Lead Independent Trustee	Since 2016	49	AssetMark Financial Holdings, Inc. (investment solutions) (2018-present) and PhonePe (December 2020) (payment and financial services); formerly, Axis Bank (financial) (2013-2021), FlipKart Limited (2019-December 2020) (eCommerce company); CapFloat Financial Services Pvt., Ltd. (non-banking finance company) (2018) and Zentific Investment Management (hedge fund) (2015-2018).

Principal Occupation During at Least the Past 5 Years:
Managing Member, Mukt Capital, LLC (private investment firm) (2014-present); Advisor, Optimal Asset Management (investment technology and advisory services company) (2015-present); Chief Executive Officer and Director, FinTech Evolution Acquisition (eCommerce company) (February 2021-present); and formerly, Chairman, Asia Pacific, BlackRock (2009-2012); Global Chief Operating Officer, Barclays Global Investors (investment management) (2005-2009); and Senior Partner, The Boston Consulting Group (management consulting) (1992-2005).

Deborah D. McWhinney (1955) One Franklin Parkway San Mateo, CA 94403-1906	Trustee	Since 2020	49	IHS Markit (information services) (2015-present), Borg Warner (automotive) (2018-present), LegalShield (consumer services) (2020-present); and formerly, Fluor Corporation (construction and engineering) (2014-2020) and Focus Financial Partner, LLC (financial services) (2018-2020).

Principal Occupation During at Least the Past 5 Years:
Director of various companies; and formerly, Board Member, Lloyds Banking Group (2015-2018) (financial institution)) and Fresenius Medical Group (2016-2018) (healthcare); Chief Executive Officer (2013-2014) and Chief Operating Officer (2011-2013), CitiGroup Global Enterprise Payments (financial services); and President, Citi’s Personal Banking and Wealth Management (2009-2011).

Anantha K. Pradeep (1963) One Franklin Parkway San Mateo, CA 94403-1906	Trustee	Since 2016	49	None

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



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FRANKLIN TEMPLETON ETF TRUST

Interested Board Members and Officers



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

**Jennifer M. Johnson (1964) One Franklin Parkway San Mateo, CA 94403-1906	Trustee and Chairperson of the Board	Since 2016	60	None

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

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

Principal Occupation During at Least the Past 5 Years:
Deputy General Counsel, Franklin Templeton; and officer of some of the other subsidiaries of Franklin Resources, Inc. and of 42 of the investment companies in Franklin Templeton.

Breda M. Beckerle (1958) 280 Park Avenue New York, NY 10017	Chief Compliance Officer	Since November 2020	Not Applicable	Not Applicable

Principal Occupation During at Least the Past 5 Years:
Chief Compliance Officer, Fiduciary Investment Management International, Inc., Franklin Advisers, Inc., Franklin Advisory Services, LLC, Franklin Mutual Advisers, LLC, Franklin Templeton Institutional, LLC; and officer of 42 of the investment companies in Franklin Templeton.

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

Principal Occupation During at Least the Past 5 Years:
Senior Associate General Counsel, Franklin Templeton; Vice President, Franklin Templeton Distributors, Inc. and FASA, LLC; and officer of 42 of the investment companies in Franklin Templeton.

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

Principal Occupation During at Least the Past 5 Years:
Senior Vice President, Franklin Templeton Services, LLC; officer of 42 of the investment companies in Franklin Templeton; and formerly, Vice President, Global Tax (2012-April 2017) and Treasurer/Assistant Treasurer, Franklin Templeton (2009-2017).

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

Principal Occupation During at Least the Past 5 Years:
Vice President, Franklin Templeton Companies, LLC; Chief Compliance Officer, Franklin Templeton Distributors, Inc. and Franklin Templeton Investor Services, LLC; and officer of 42 of the investment companies in Franklin Templeton.



franklintempleton.com	Annual Report	45

FRANKLIN TEMPLETON ETF TRUST

Interested Board Members and Officers (continued)



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

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

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

Vivek Pai (1970) 300 S.E. 2nd Street Fort Lauderdale, FL 33301-1923	Treasurer, Chief Financial Officer and Chief Accounting Officer	Since 2019	Not Applicable	Not Applicable

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

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

Principal Occupation During at Least the Past 5 Years:
Associate General Counsel and officer of 42 of the investment companies in Franklin Templeton.

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

Principal Occupation During at Least the Past 5 Years:
General Counsel and Executive Vice President, Franklin Resources, Inc.; and officer of some of the other subsidiaries of Franklin Resources, Inc. and of 42 of the investment companies in Franklin Templeton.

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

Principal Occupation During at Least the Past 5 Years:
Senior Associate General Counsel, Franklin Templeton; Assistant Secretary, Franklin Resources, Inc.; Vice President and Secretary, Templeton Investment Counsel, LLC; and officer of 42 of the investment companies in Franklin Templeton.

Note 1: Officer information is current as of the date of this report. It is possible that after this date, information about officers may change.



46	Annual Report	franklintempleton.com

FRANKLIN TEMPLETON ETF TRUST

Shareholder Information

Proxy Voting Policies and Procedures

Quarterly Statement of Investments

Premium/Discount Information



franklintempleton.com	Annual Report	47

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

ANNUAL REPORT

FRANKLIN TEMPLETON

ETF TRUST

March 31, 2021

LOGO


Franklin FTSE Asia ex Japan ETF		Franklin FTSE Japan ETF
Franklin FTSE Australia ETF		Franklin FTSE Japan Hedged ETF
Franklin FTSE Brazil ETF		Franklin FTSE Latin America ETF
Franklin FTSE Canada ETF		Franklin FTSE Mexico ETF
Franklin FTSE China ETF		Franklin FTSE Russia ETF
Franklin FTSE Europe ETF		Franklin FTSE Saudi Arabia ETF
Franklin FTSE Europe Hedged ETF		Franklin FTSE South Africa ETF
Franklin FTSE France ETF		Franklin FTSE South Korea ETF
Franklin FTSE Germany ETF		Franklin FTSE Switzerland ETF
Franklin FTSE Hong Kong ETF		Franklin FTSE Taiwan ETF
Franklin FTSE India ETF		Franklin FTSE United Kingdom ETF
Franklin FTSE Italy ETF

Franklin Templeton



Contents

Annual Report

Economic and Market Overview			2
Franklin FTSE Asia ex Japan ETF			3
Franklin FTSE Australia ETF			9
Franklin FTSE Brazil ETF			15
Franklin FTSE Canada ETF			21
Franklin FTSE China ETF			27
Franklin FTSE Europe ETF			33
Franklin FTSE Europe Hedged ETF			39
Franklin FTSE France ETF			45
Franklin FTSE Germany ETF			51
Franklin FTSE Hong Kong ETF			57
Franklin FTSE India ETF			63
Franklin FTSE Italy ETF			69
Franklin FTSE Japan ETF			75
Franklin FTSE Japan Hedged ETF			81
Franklin FTSE Latin America ETF			87


Franklin FTSE Mexico ETF			93
Franklin FTSE Russia ETF			99
Franklin FTSE Saudi Arabia ETF			105
Franklin FTSE South Africa ETF			111
Franklin FTSE South Korea ETF			117
Franklin FTSE Switzerland ETF			123
Franklin FTSE Taiwan ETF			129
Franklin FTSE United Kingdom ETF			135
Financial Highlights and Statements of Investments			141
Financial Statements			304
Notes to Financial Statements			328
Report of Independent Registered Public Accounting Firm			356
Tax Information			358
Board Members and Officers			360
Shareholder Information			363


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

Visit franklintempleton.com for fund updates and documents, or to find helpful financial planning tools.



franklintempleton.com	Annual Report	1

ANNUAL REPORT

Economic and Market Overview

Global developed and emerging market equities, as measured by the FTSE All-World Index, advanced strongly during the 12 months ended March 31, 2021. Following sharp declines in early 2020 amid the onset of the novel coronavirus (COVID-19) pandemic, global equities began to rebound in the spring amid monetary and fiscal stimulus measures, easing lockdown restrictions, and vaccine and treatment development. Stocks declined again in September and October, due to geopolitical tensions and rising infection rates, but began to rebound in November as successful trials of COVID-19 vaccines, the start of vaccination programs and expectations for additional fiscal stimulus led many equity markets to reach new highs. Indications of economic recovery in many countries also helped drive stocks higher.

The U.S. Federal Reserve (Fed) kept the federal funds target rate at a record-low range of 0.00%–0.25% and continued its program of open-ended bond purchases to help keep

markets functioning. Furthermore, the Fed reiterated that interest rates would potentially remain low, even if inflation moderately exceeded the Fed’s 2% target.

Asian developed and emerging market equities, as measured by the FTSE Asia Pacific Index, advanced sharply for the period. China, a key driver of regional economies, began to recover in the second quarter of 2020 and was the only major global economy to post positive GDP growth for full-year 2020 amid strong manufacturing gains. Despite paring gains in March 2021, Asian equity markets finished the period sharply higher amid optimism that economic revitalization would be further spurred by COVID-19 vaccines.

Global emerging market stocks, as measured by the FTSE Emerging Index, also rose significantly for the period. Improving economic activity, stabilizing oil prices and U.S. dollar weakness supported emerging market equities. Despite higher COVID-19 cases in some countries, emerging market stocks rallied amid easing political uncertainty, commencement of COVID-19 vaccinations and rising commodity prices.

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



2	Annual Report	franklintempleton.com

Franklin FTSE Asia ex Japan ETF

This annual report for Franklin FTSE Asia ex Japan ETF covers the fiscal year ended March 31, 2021.

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 the 12-month period, the Fund posted cumulative total returns of +60.54% based on market price and +58.16% based on net asset value. In comparison, the FTSE Asia ex Japan Capped Index posted a +59.00% total return for the same period.² You can find more of the Fund’s performance data in the Performance Summary beginning on page 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

3/31/21

	% of Total Net Assets
Banks		9.8%
Semiconductors & Semiconductor Equipment		9.8%
Internet & Direct Marketing Retail		9.3%
Interactive Media & Services		8.2%
Technology Hardware, Storage & Peripherals		6.3%
Insurance		4.7%
Real Estate Management & Development		3.5%
Electronic Equipment, Instruments & Components		3.1%
Automobiles		3.0%
Oil, Gas & Consumable Fuels		2.8%

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 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- and mid-capitalization stocks from developed and emerging Asian countries, excluding Japan. The Chinese constituents in the FTSE Asia ex Japan Capped Index are represented by H-shares, B-shares, A-shares, N-shares, Red Chips, P-Chips and S-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 142.



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FRANKLIN FTSE ASIA EX JAPAN ETF


Top 10 Holdings

3/31/21

Company *Sector/Industry, Country*	% of Total Net Assets
Taiwan Semiconductor Manufacturing Co. Ltd. Semiconductors & Semiconductor Equipment, Taiwan		6.7%
Tencent Holdings Ltd. Interactive Media & Services, China		6.1%
Alibaba Group Holding Ltd. Internet & Direct Marketing Retail, China		5.4%
Samsung Electronics Co. Ltd. Technology Hardware, Storage & Peripherals, South Korea		4.6%
AIA Group Ltd. Insurance, Hong Kong		2.0%
Meituan Dianping S, B, Reg S Internet & Direct Marketing Retail, China		1.9%
Reliance Industries Ltd. Oil, Gas & Consumable Fuels, India		1.2%
China Construction Bank Corp., A, H Banks, China		1.1%
Hong Kong Exchanges and Clearing Ltd. Capital Markets, Hong Kong		1.0%
JD.com Inc., ADR Internet & Direct Marketing Retail, China		1.0%


Top 10 Countries

3/31/21

	% of Total Net Assets
China		40.9%
Taiwan		15.4%
South Korea		14.8%
India		11.5%
Hong Kong		7.4%
Singapore		2.8%
Thailand		2.3%
Malaysia		1.8%
Indonesia		1.4%
Philippines		0.8%

Manager’s Discussion

For the fiscal year ended March 31, 2021, the sectors that contributed most to the Fund’s absolute performance were information technology, consumer discretionary and financials. Individual holdings that lifted the Fund’s absolute return included Taiwan Semiconductor Manufacturing, Tencent Holdings and Samsung Electronics.

For the same period, no sectors detracted from the Fund’s absolute performance. Individual holdings that hindered the Fund’s absolute return included China Mobile, China Tower and Ascendas REIT.

Thank you for your participation in Franklin FTSE Asia ex Japan ETF. We look forward to serving your future investment needs.

CFA^® is a trademark owned by CFA Institute.

Dina Ting, CFA

Hailey Harris

Portfolio Management Team



4	Annual Report	franklintempleton.com

FRANKLIN FTSE ASIA EX JAPAN ETF

Performance Summary as of March 31, 2021

Net asset value or “NAV” is the value of one share of a fund as calculated in accordance with the standard formula for valuing mutual fund shares. The price used to calculate market return (Market Price) is determined by using the midpoint between the highest bid and the lowest offer on the primary stock exchange on which shares of a fund are listed for trading, as of the time that such fund’s NAV is calculated. Since shares of the Fund did not trade in the secondary market until after the Fund’s inception, for the period from inception to the first day of secondary trading (2/9/18), the NAV of the Fund is used as a proxy for the Market Price to calculate market returns. Market and NAV returns assume that dividends and capital gain distributions have been reinvested at Market Price and NAV.

Performance as of 3/31/21

Cumulative Total Return¹

Average Annual Total Return¹

Based on
NAV²

Based on

market price³

Based on
NAV²

Based on

market price³

1-Year

+58.16%

+60.54%

+58.16%

+60.54%

3-Year

+29.14%

+27.28%

+8.90%

+8.37%

Since Inception (2/6/18)

+28.86%

+29.86%

+8.40%

+8.66%

See page 7 for Performance Summary footnotes.



franklintempleton.com	Annual Report	5

FRANKLIN FTSE ASIA EX JAPAN ETF

PERFORMANCE SUMMARY

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

Total return represents the change in value of an investment over the period shown. It includes any applicable maximum sales charge, Fund expenses, account fees and reinvested distributions. The unmanaged index includes reinvestment of any income or distributions. It differs from the Fund in composition and does not pay management fees or expenses. One cannot invest directly in an index.

2/6/18–3/31/21

LOGO

See page 7 for Performance Summary footnotes.



6	Annual Report	franklintempleton.com

FRANKLIN FTSE ASIA EX JAPAN ETF

PERFORMANCE SUMMARY

Distributions (4/1/20–3/31/21)

Net Investment
Income

$0.434564

Total Annual Operating Expenses⁵

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. Source: FactSet. The FTSE Asia ex Japan Capped Index is a free float-adjusted market capitalization-weighted index maintained and calculated by FTSE Russell with a capping methodology applied quarterly to issuer weights so that no single issuer of a component exceeds 25% of the index weight, and all issuers with weights above 5% do not cumulatively exceed 50% of the index’s weight. The FTSE Asia ex Japan Capped Index is based on the FTSE Asia ex Japan Index and is designed to measure the performance of large- and mid-capitalization stocks from developed and emerging Asian countries, excluding Japan. The Chinese constituents in the FTSE Asia ex Japan Capped Index are represented by H-shares, B-shares, N-shares, Red Chips, P-Chips and S-Chips.

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

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



franklintempleton.com	Annual Report	7

FRANKLIN FTSE ASIA EX JAPAN ETF

Your Fund’s Expenses

Actual Fund Expenses

Hypothetical Example for Comparison with Other Funds


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

Beginning Account Value 10/1/20		Ending Account Value 3/31/21		Expenses Paid During Period 10/1/20–3/31/21^1,2		Ending Account Value 3/31/21		Expenses Paid During Period 10/1/20–3/31/21^1,2		Net Annualized Expense Ratio²
	$1,000.00	$	1,223.40	$	1.05	$	1,023.98	$	0.96		0.19	%

2. Reflects expenses after fee waivers and expense reimbursements.



8	Annual Report	franklintempleton.com

Franklin FTSE Australia ETF

This annual report for Franklin FTSE Australia ETF covers the fiscal year ended March 31, 2021.

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 the 12-month period, the Fund posted cumulative total returns of +68.25% based on market price and +71.72% based on net asset value. In comparison, the FTSE Australia Capped Index posted a +71.61% total return for the same period.² You can find more of the Fund’s performance data in the Performance Summary beginning on page 11.

Investment Strategy

The Fund, using a “passive” or indexing investment approach, seeks investment results that closely correspond, before fees and expenses, to the performance of the FTSE Australia Capped Index. We seek to achieve, over time, a correlation between the Fund’s performance, before fees and expenses, and that of the Underlying Index of 0.95 or better. A figure of 1.00 would indicate perfect correlation. Our intention is to


Top 10 Sectors/Industries

3/31/21

	% of Total Net Assets
Banks		24.7%
Metals & Mining		17.4%
Biotechnology		7.1%
Equity Real Estate Investment Trusts (REITs)		6.0%
Food & Staples Retailing		4.5%
Capital Markets		4.5%
Oil, Gas & Consumable Fuels		3.9%
Multiline Retail		3.7%
Transportation Infrastructure		3.2%
Hotels, Restaurants & Leisure		2.8%

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- and mid-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 177.



franklintempleton.com	Annual Report	9

FRANKLIN FTSE AUSTRALIA ETF


Top 10 Holdings

3/31/21

Company *Sector/Industry, Country*	% of Total Net Assets
Commonwealth Bank of Australia Banks, Australia		9.0%
BHP Group Ltd. Metals & Mining, Australia		7.9%
CSL Ltd. Biotechnology, Australia		7.1%
Westpac Banking Corp. Banks, Australia		5.3%
National Australia Bank Ltd. Banks, Australia		5.0%
Australia & New Zealand Banking Group Ltd. Banks, Australia		4.7%
Wesfarmers Ltd. Multiline Retail, Australia		3.5%
Woolworths Group Ltd. Food & Staples Retailing, Australia		3.0%
Macquarie Group Ltd. Capital Markets, Australia		3.0%
Rio Tinto Ltd. Metals & Mining, Australia		2.4%

Manager’s Discussion

For the fiscal year ended March 31, 2021, the sectors that contributed most to the Fund’s absolute performance were financials, materials and consumer discretionary. Individual holdings that lifted the Fund’s absolute return included BHP Group, Commonwealth Bank of Australia and National Australia Bank.

For the same period, no sectors detracted from the Fund’s absolute performance. Individual holdings that hindered the Fund’s absolute return included Appen, AGL Energy and Insurance Australia Group.

Thank you for your participation in Franklin FTSE Australia ETF. We look forward to serving your future investment needs.

Dina Ting, CFA

Hailey Harris

Portfolio Management Team



10	Annual Report	franklintempleton.com

FRANKLIN FTSE AUSTRALIA ETF

Performance Summary as of March 31, 2021

Net asset value or “NAV” is the value of one share of a fund as calculated in accordance with the standard formula for valuing mutual fund shares. The price used to calculate market return (Market Price) is determined by using the midpoint between the highest bid and the lowest offer on the primary stock exchange on which shares of a fund are listed for trading, as of the time that such fund’s NAV is calculated. Since shares of the Fund did not trade in the secondary market until after the Fund’s inception, for the period from inception to the first day of secondary trading (11/6/17), the NAV of the Fund is used as a proxy for the Market Price to calculate market returns. Market and NAV returns assume that dividends and capital gain distributions have been reinvested at Market Price and NAV.

Performance as of 3/31/21

Cumulative Total Return¹

Average Annual Total Return¹

Based on
NAV²

Based on

market price³

Based on
NAV²

Based on

market price³

1-Year

+71.72%

+68.25%

+71.72%

+68.25%

3-Year

+31.75%

+30.71%

+9.63%

+9.34%

Since Inception (11/2/17)

+29.06%

+29.33%

+7.77%

+7.84%

See page 13 for Performance Summary footnotes.



franklintempleton.com	Annual Report	11

FRANKLIN FTSE AUSTRALIA ETF

PERFORMANCE SUMMARY

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

11/2/17–3/31/21

LOGO

See page 13 for Performance Summary footnotes.



12	Annual Report	franklintempleton.com

FRANKLIN FTSE AUSTRALIA ETF

PERFORMANCE SUMMARY

Distributions (4/1/20–3/31/21)

Net Investment
Income

$0.615871

Total Annual Operating Expenses⁵

0.09%

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

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

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

3. Assumes reinvestment of distributions based on market price.

4. Source: FactSet. The FTSE Australia Capped Index is a free float-adjusted market capitalization-weighted index maintained and calculated by FTSE Russell with a capping methodology applied quarterly to issuer weights so that no single issuer of a component exceeds 25% of the index weight, and all issuers with weights above 5% do not cumulatively exceed 50% of the index’s weight. The FTSE Australia Capped Index is based on the FTSE Australia Index and is designed to measure the performance of Australian large- and mid-capitalization stocks.

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



franklintempleton.com	Annual Report	13

FRANKLIN FTSE AUSTRALIA ETF

Your Fund’s Expenses

Actual Fund Expenses

Hypothetical Example for Comparison with Other Funds


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

Beginning Account Value 10/1/20		Ending Account Value 3/31/21		Expenses Paid During Period 10/1/20–3/31/21^1,2		Ending Account Value 3/31/21		Expenses Paid During Period 10/1/20–3/31/21^1,2		Net Annualized Expense Ratio²
	$1,000.00	$	1,269.00	$	0.51	$	1,024.48	$	0.45		0.09	%

2. Reflects expenses after fee waivers and expense reimbursements.



14	Annual Report	franklintempleton.com

Franklin FTSE Brazil ETF

This annual report for Franklin FTSE Brazil ETF covers the fiscal year ended March 31, 2021.

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 the 12-month period, the Fund posted cumulative total returns of +47.09% based on market price and +46.83% based on net asset value. In comparison, the FTSE Brazil Capped Index posted a +47.06% total return for the same period.² You can find more of the Fund’s performance data in the Performance Summary beginning on page 17.

Investment Strategy

The Fund, using a “passive” or indexing investment approach, seeks investment results that closely correspond, before fees and expenses, to the performance of the FTSE Brazil Capped Index. We seek to achieve, over time, a correlation between the Fund’s performance, before fees and expenses, and that of the Underlying Index of 0.95 or better. A figure of 1.00 would indicate perfect correlation. Our intention is to replicate


Top 10 Sectors/Industries

3/31/21

	% of Total Net Assets
Metals & Mining		18.9%
Banks		18.1%
Oil, Gas & Consumable Fuels		11.1%
Capital Markets		6.1%
Electric Utilities		5.1%
Multiline Retail		5.0%
Health Care Providers & Services		3.9%
Road & Rail		3.0%
Beverages		3.0%
Food Products		2.7%

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- and mid-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 181.



franklintempleton.com	Annual Report	15

FRANKLIN FTSE BRAZIL ETF


Top 10 Holdings

3/31/21

Company *Sector/Industry, Country*	% of Total Net Assets
Vale SA Metals & Mining, Brazil		14.7%
Itau Unibanco Holding SA Banks, Brazil		6.1%
Banco Bradesco SA Banks, Brazil		5.2%
B3 SA - Brasil Bolsa Balcao Capital Markets, Brazil		5.1%
Petroleo Brasileiro SA Oil, Gas & Consumable Fuels, Brazil		5.0%
Petroleo Brasileiro SA Oil, Gas & Consumable Fuels, Brazil		4.0%
Ambev SA Beverages, Brazil		3.0%
WEG SA Electrical Equipment, Brazil		2.5%
Magazine Luiza SA Multiline Retail, Brazil		2.4%
Suzano SA Paper & Forest Products, Brazil		2.3%

Manager’s Discussion

For the fiscal year ended March 31, 2021, the sectors that contributed most to the Fund’s absolute performance were materials, financials and energy. Individual holdings that lifted the Fund’s absolute return included Vale, Petroleo Brasileiro and B3 – Brasil Bolsa Balcao.

For the same period, the only sector that detracted from the Fund’s absolute performance was communication services. Individual holdings that hindered the Fund’s absolute return included IRB Brasil Resseguros, Telefonica Brasil and CVC Brasil Operadora e Agencia de Viagens.

Thank you for your participation in Franklin FTSE Brazil ETF. We look forward to serving your future investment needs.

Dina Ting, CFA

Hailey Harris

Portfolio Management Team



16	Annual Report	franklintempleton.com

FRANKLIN FTSE BRAZIL ETF

Performance Summary as of March 31, 2021

Net asset value or “NAV” is the value of one share of a fund as calculated in accordance with the standard formula for valuing mutual fund shares. The price used to calculate market return (Market Price) is determined by using the midpoint between the highest bid and the lowest offer on the primary stock exchange on which shares of a fund are listed for trading, as of the time that such fund’s NAV is calculated. Since shares of the Fund did not trade in the secondary market until after the Fund’s inception, for the period from inception to the first day of secondary trading (11/7/17), the NAV of the Fund is used as a proxy for the Market Price to calculate market returns. Market and NAV returns assume that dividends and capital gain distributions have been reinvested at Market Price and NAV.

Performance as of 3/31/21

Cumulative Total Return¹

Average Annual Total Return¹

Based on
NAV²

Based on

market price³

Based on
NAV²

Based on

market price³

1-Year

+46.83%

+47.09%

+46.83%

+47.09%

3-Year

-17.78%

-18.34%

-6.32%

-6.53%

Since Inception (11/3/17)

-5.57%

-5.26%

-1.67%

-1.57%

See page 19 for Performance Summary footnotes.



franklintempleton.com	Annual Report	17

FRANKLIN FTSE BRAZIL ETF

PERFORMANCE SUMMARY

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

11/3/17–3/31/21

LOGO

See page 19 for Performance Summary footnotes.



18	Annual Report	franklintempleton.com

FRANKLIN FTSE BRAZIL ETF

PERFORMANCE SUMMARY

Distributions (4/1/20–3/31/21)

Net Investment
Income

$0.528636

Total Annual Operating Expenses⁵

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. Source: FactSet. The FTSE Brazil Capped Index is a free float-adjusted market capitalization-weighted index maintained and calculated by FTSE Russell with a capping methodology applied quarterly to issuer weights so that no single issuer of a component exceeds 25% of the index weight, and all issuers with weights above 5% do not cumulatively exceed 50% of the index’s weight. The FTSE Brazil Capped Index is based on the FTSE Brazil Index and is designed to measure the performance of Brazilian large- and mid-capitalization stocks.

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



franklintempleton.com	Annual Report	19

FRANKLIN FTSE BRAZIL ETF

Your Fund’s Expenses

Actual Fund Expenses

Hypothetical Example for Comparison with Other Funds


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

Beginning Account Value 10/1/20		Ending Account Value 3/31/21		Expenses Paid During Period 10/1/20–3/31/21^1,2		Ending Account Value 3/31/21		Expenses Paid During Period 10/1/20–3/31/21^1,2		Net Annualized Expense Ratio²
	$1,000.00	$	1,232.20	$	1.06	$	1,023.98	$	0.96		0.19	%

2. Reflects expenses after fee waivers and expense reimbursements.



20	Annual Report	franklintempleton.com

Franklin FTSE Canada ETF

This annual report for Franklin FTSE Canada ETF covers the fiscal year ended March 31, 2021.

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 the 12-month period, the Fund posted cumulative total returns of +58.62% based on market price and +59.10% based on net asset value. In comparison, the FTSE Canada Capped Index posted a +58.52% total return for the same period.² You can find more of the Fund’s performance data in the Performance Summary beginning on page 23.

Investment Strategy

The Fund, using a “passive” or indexing investment approach, seeks investment results that closely correspond, before fees and expenses, to the performance of the FTSE Canada Capped Index. We seek to achieve, over time, a correlation between the Fund’s performance, before fees and expenses, and that of the Underlying Index of 0.95 or better. A figure of 1.00 would indicate perfect correlation. Our intention is to


Top 10 Sectors/Industries

3/31/21

	% of Total Net Assets
Banks		29.0%
Oil, Gas & Consumable Fuels		14.0%
IT Services		9.1%
Road & Rail		8.7%
Insurance		7.9%
Metals & Mining		6.4%
Capital Markets		4.0%
Food & Staples Retailing		3.4%
Chemicals		2.0%
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- and mid-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 185.



franklintempleton.com	Annual Report	21

FRANKLIN FTSE CANADA ETF


Top 10 Holdings

3/31/21

Company *Sector/Industry, Country*	% of Total Net Assets
Royal Bank of Canada Banks, Canada		8.5%
Shopify Inc., A IT Services, Canada		7.9%
The Toronto-Dominion Bank Banks, Canada		7.6%
Canadian National Railway Co. Road & Rail, Canada		5.3%
The Bank of Nova Scotia Banks, Canada		4.9%
Enbridge Inc. Oil, Gas & Consumable Fuels, Canada		4.8%
Brookfield Asset Management Inc., A Capital Markets, Canada		3.8%
Bank of Montreal Banks, Canada		3.7%
Canadian Pacific Railway Ltd. Road & Rail, Canada		3.4%
TC Energy Corp. Oil, Gas & Consumable Fuels, Canada		2.9%

Manager’s Discussion

For the fiscal year ended March 31, 2021, the sectors that contributed most to the Fund’s absolute performance were financials, information technology and energy. Individual holdings that lifted the Fund’s absolute return included Shopify, Royal Bank of Canada and The Toronto-Dominion Bank.

For the same period, no sectors detracted from the Fund’s absolute performance. Similarly, no individual holdings hindered the Fund’s absolute return.

Thank you for your participation in Franklin FTSE Canada ETF. We look forward to serving your future investment needs.

Dina Ting, CFA

Hailey Harris

Portfolio Management Team



22	Annual Report	franklintempleton.com

FRANKLIN FTSE CANADA ETF

Performance Summary as of March 31, 2021

Net asset value or “NAV” is the value of one share of a fund as calculated in accordance with the standard formula for valuing mutual fund shares. The price used to calculate market return (Market Price) is determined by using the midpoint between the highest bid and the lowest offer on the primary stock exchange on which shares of a fund are listed for trading, as of the time that such fund’s NAV is calculated. Since shares of the Fund did not trade in the secondary market until after the Fund’s inception, for the period from inception to the first day of secondary trading (11/6/17), the NAV of the Fund is used as a proxy for the Market Price to calculate market returns. Market and NAV returns assume that dividends and capital gain distributions have been reinvested at Market Price and NAV.

Performance as of 3/31/21

Cumulative Total Return¹

Average Annual Total Return¹

Based on
NAV²

Based on

market price³

Based on
NAV²

Based on

market price³

1-Year

+59.10%

+58.62%

+59.10%

+58.62%

3-Year

+37.56%

+37.69%

+11.22%

+11.25%

Since Inception (11/2/17)

+31.97%

+32.37%

+8.48%

+8.58%

See page 25 for Performance Summary footnotes.



franklintempleton.com	Annual Report	23

FRANKLIN FTSE CANADA ETF

PERFORMANCE SUMMARY

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

11/2/17–3/31/21

LOGO

See page 25 for Performance Summary footnotes.



24	Annual Report	franklintempleton.com

FRANKLIN FTSE CANADA ETF

PERFORMANCE SUMMARY

Distributions (4/1/20–3/31/21)

Net Investment
Income

$0.682955

Total Annual Operating Expenses⁵

0.09%

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

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

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

3. Assumes reinvestment of distributions based on market price.

4. Source: FactSet. The FTSE Canada Capped Index is a free float-adjusted market capitalization-weighted index maintained and calculated by FTSE Russell with a capping methodology applied quarterly to issuer weights so that no single issuer of a component exceeds 25% of the index weight, and all issuers with weights above 5% do not cumulatively exceed 50% of the index’s weight. The FTSE Canada Capped Index is based on the FTSE Canada Index and is designed to measure the performance of Canadian large- and mid-capitalization stocks.

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



franklintempleton.com	Annual Report	25

FRANKLIN FTSE CANADA ETF

Your Fund’s Expenses

Actual Fund Expenses

Hypothetical Example for Comparison with Other Funds


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

Beginning Account Value 10/1/20		Ending Account Value 3/31/21		Expenses Paid During Period 10/1/20–3/31/21^1,2		Ending Account Value 3/31/21		Expenses Paid During Period 10/1/20–3/31/21^1,2		Net Annualized Expense Ratio²
	$1,000.00	$	1,255.50	$	0.51	$	1,024.48	$	0.45		0.09	%

2. Reflects expenses after fee waivers and expense reimbursements.



26	Annual Report	franklintempleton.com

Franklin FTSE China ETF

This annual report for Franklin FTSE China ETF covers the fiscal year ended March 31, 2021.

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 the 12-month period, the Fund posted cumulative total returns of +46.71% based on market price and +44.67% based on net asset value. In comparison, the FTSE China Capped Index posted a +45.12% total return for the same period.² You can find more of the Fund’s performance data in the Performance Summary beginning on page 29.

Investment Strategy

The Fund, using a “passive” or indexing investment approach, seeks investment results that closely correspond, before fees and expenses, to the performance of the FTSE China Capped Index. We seek to achieve, over time, a correlation between the Fund’s performance, before fees and expenses, and that of the Underlying Index of 0.95 or better. A figure of 1.00 would indicate perfect correlation. Our intention is to


Top 10 Sectors/Industries

3/31/21

	% of Total Net Assets
Internet & Direct Marketing Retail		23.2%
Interactive Media & Services		18.0%
Banks		9.4%
Insurance		4.3%
Real Estate Management & Development		4.2%
Automobiles		4.1%
Entertainment		2.5%
Beverages		2.4%
Pharmaceuticals		1.9%
Capital Markets		1.8%

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- and mid-capitalization stocks, as represented by H-shares, B-shares, A-shares, N-shares, Red Chips, P-Chips and S-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 188.



franklintempleton.com	Annual Report	27

FRANKLIN FTSE CHINA ETF


Top 10 Holdings

3/31/21

Company *Sector/Industry, Country*	% of Total Net Assets
Tencent Holdings Ltd. Interactive Media & Services, China		15.1%
Alibaba Group Holding Ltd. Internet & Direct Marketing Retail, China		13.4%
Meituan Dianping, B, Reg S Internet & Direct Marketing Retail, China		4.7%
China Construction Bank Corp., H Banks, China		2.6%
JD.com Inc., ADR Internet & Direct Marketing Retail, China		2.5%
Ping An Insurance Group Co. of China Ltd., A, H Insurance, China		2.4%
Baidu Inc., ADR Interactive Media & Services, China		2.0%
Industrial and Commercial Bank of China Ltd., H Banks, China		1.9%
NIO Inc., ADR Automobiles, China		1.6%
NetEase Inc. Entertainment, China		1.3%

Manager’s Discussion

For the fiscal year ended March 31, 2021, the sectors that contributed most to the Fund’s absolute performance were consumer discretionary, communication services and health care. Individual holdings that lifted the Fund’s absolute return included Tencent Holdings, Alibaba Group Holding and Meituan Dianping.

For the same period, no sectors detracted from the Fund’s absolute performance. Individual holdings that hindered the Fund’s absolute return included China Mobile, China Tower and Kuaishou Technology.

Thank you for your participation in Franklin FTSE China ETF. We look forward to serving your future investment needs.

Dina Ting, CFA

Hailey Harris

Portfolio Management Team



28	Annual Report	franklintempleton.com

FRANKLIN FTSE CHINA ETF

Performance Summary as of March 31, 2021

Net asset value or “NAV” is the value of one share of a fund as calculated in accordance with the standard formula for valuing mutual fund shares. The price used to calculate market return (Market Price) is determined by using the midpoint between the highest bid and the lowest offer on the primary stock exchange on which shares of a fund are listed for trading, as of the time that such fund’s NAV is calculated. Since shares of the Fund did not trade in the secondary market until after the Fund’s inception, for the period from inception to the first day of secondary trading (11/6/17), the NAV of the Fund is used as a proxy for the Market Price to calculate market returns. Market and NAV returns assume that dividends and capital gain distributions have been reinvested at Market Price and NAV.

Performance as of 3/31/21

Cumulative Total Return¹

Average Annual Total Return¹

Based on
NAV²

Based on

market price³

Based on
NAV²

Based on

market price³

1-Year

+44.67%

+46.71%

+44.67%

+46.71%

3-Year

+28.40%

+27.62%

+8.69%

+8.47%

Since Inception (11/2/17)

+33.76%

+35.40%

+8.91%

+9.30%

See page 31 for Performance Summary footnotes.



franklintempleton.com	Annual Report	29

FRANKLIN FTSE CHINA ETF

PERFORMANCE SUMMARY

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

11/2/17–3/31/21

LOGO

See page 31 for Performance Summary footnotes.



30	Annual Report	franklintempleton.com

FRANKLIN FTSE CHINA ETF

PERFORMANCE SUMMARY

Distributions (4/1/20–3/31/21)

Net Investment
Income

$0.291059

Total Annual Operating Expenses⁵

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. Source: FactSet. The FTSE China Capped Index is a free float-adjusted market capitalization-weighted index maintained and calculated by FTSE Russell with a capping methodology applied quarterly to issuer weights so that no single issuer of a component exceeds 25% of the index weight, and all issuers with weights above 5% do not cumulatively exceed 50% of the index’s weight. The FTSE China Capped Index is based on the FTSE China Index and is designed to measure the performance of Chinese large- and mid-capitalization stocks, as represented by H-shares, B-shares, N-shares, Red Chips, P-Chips and S-Chips.

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



franklintempleton.com	Annual Report	31

FRANKLIN FTSE CHINA ETF

Your Fund’s Expenses

Actual Fund Expenses

Hypothetical Example for Comparison with Other Funds


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

Beginning Account Value 10/1/20		Ending Account Value 3/31/21		Expenses Paid During Period 10/1/20–3/31/21^1,2		Ending Account Value 3/31/21		Expenses Paid During Period 10/1/20–3/31/21^1,2		Net Annualized Expense Ratio²
	$1,000.00	$	1,112.00	$	1.00	$	1,023.98	$	0.96		0.19	%

2. Reflects expenses after fee waivers and expense reimbursements.



32	Annual Report	franklintempleton.com

Franklin FTSE Europe ETF

This annual report for Franklin FTSE Europe ETF covers the fiscal year ended March 31, 2021.

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 the 12-month period, the Fund posted cumulative total returns of +46.06% based on market price and +46.23% based on net asset value. In comparison, the FTSE Developed Europe Capped Index posted a +45.96% 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


Top 10 Sectors/Industries

3/31/21

	% of Total Net Assets
Pharmaceuticals		9.2%
Banks		7.1%
Insurance		5.5%
Oil, Gas & Consumable Fuels		4.4%
Textiles, Apparel & Luxury Goods		4.4%
Food Products		4.2%
Chemicals		3.9%
Machinery		3.3%
Semiconductors & Semiconductor Equipment		3.3%
Metals & Mining		3.0%

A figure of 1.00 would indicate perfect correlation. Our intention is to replicate the component securities of the Underlying Index as closely as possible (i.e., invest in all of the component securities in their respective weightings in the Underlying Index). However, under various circumstances, it may not be possible or practicable to replicate the Underlying Index. In these circumstances, we may use a “representative sampling” strategy whereby we would invest in what we believe to be a representative sample of the component securities of the Underlying Index, but may not track the Underlying Index with the same degree of accuracy as would an investment vehicle replicating the entire Underlying Index. Under the representative sampling technique, we will select securities that collectively have an investment profile similar to that of the Underlying Index, including securities that resemble those included in the Underlying Index in terms of risk factors, performance attributes and other characteristics, such as market capitalization and industry weightings. The Fund will concentrate its investments (i.e., hold 25% or more of its net assets) in a particular industry or group of industries to approximately the same extent that the Underlying Index is concentrated.

1. The FTSE 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- and mid-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 208.



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FRANKLIN FTSE EUROPE ETF


Top 10 Holdings

3/31/21

Company *Sector/Industry, Country*	% of Total Net Assets
Nestle SA Food Products, Switzerland		2.9%
ASML Holding NV Semiconductors & Semiconductor Equipment, Netherlands		2.3%
Roche Holding AG Pharmaceuticals, Switzerland		2.1%
Novartis AG Pharmaceuticals, Switzerland		1.7%
LVMH Moet Hennessy Louis Vuitton SE Textiles, Apparel & Luxury Goods, France		1.6%
Unilever PLC Personal Products, United Kingdom		1.3%
SAP SE Software, Germany		1.3%
AstraZeneca PLC Pharmaceuticals, United Kingdom		1.2%
Siemens AG Industrial Conglomerates, Germany		1.2%
HSBC Holdings PLC Bank, United Kingdom		1.1%


Top 10 Countries

3/31/21

	% of Total Net Assets
United Kingdom		21.7%
France		16.4%
Germany		15.0%
Switzerland		14.4%
Netherlands		6.4%
Sweden		5.9%
Spain		3.8%
Denmark		3.6%
Italy		3.4%
Finland		2.1%

Manager’s Discussion

For the fiscal year ended March 31, 2021, the sectors that contributed most to the Fund’s absolute performance were industrials, financials and consumer discretionary. Individual holdings that lifted the Fund’s absolute return included ASML Holding, Siemens and LVMH Moet Hennessy Louis Vuitton.

For the same period, no sectors detracted from the Fund’s absolute performance. Individual holdings that hindered the Fund’s absolute return included Wirecard, Galapagos and Grifols.

Thank you for your participation in Franklin FTSE Europe ETF. We look forward to serving your future investment needs.

Dina Ting, CFA

Hailey Harris

Portfolio Management Team



34	Annual Report	franklintempleton.com

FRANKLIN FTSE EUROPE ETF

Performance Summary as of March 31, 2021

Net asset value or “NAV” is the value of one share of a fund as calculated in accordance with the standard formula for valuing mutual fund shares. The price used to calculate market return (Market Price) is determined by using the midpoint between the highest bid and the lowest offer on the primary stock exchange on which shares of a fund are listed for trading, as of the time that such fund’s NAV is calculated. Since shares of the Fund did not trade in the secondary market until after the Fund’s inception, for the period from inception to the first day of secondary trading (11/6/17), the NAV of the Fund is used as a proxy for the Market Price to calculate market returns. Market and NAV returns assume that dividends and capital gain distributions have been reinvested at Market Price and NAV.

Performance as of 3/31/21

Cumulative Total Return¹

Average Annual Total Return¹

Based on
NAV²

Based on

market price³

Based on
NAV²

Based on

market price³

1-Year

+46.23%

+46.06%

+46.23%

+46.06%

3-Year

+19.09%

+18.53%

+6.00%

+5.83%

Since Inception (11/2/17)

+18.79%

+18.89%

+5.18%

+5.21%

See page 37 for Performance Summary footnotes.



franklintempleton.com	Annual Report	35

FRANKLIN FTSE EUROPE ETF

PERFORMANCE SUMMARY

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

11/2/17–3/31/21

LOGO

See page 37 for Performance Summary footnotes.



36	Annual Report	franklintempleton.com

FRANKLIN FTSE EUROPE ETF

PERFORMANCE SUMMARY

Distributions (4/1/20–3/31/21)

Net Investment
Income

$0.489423

Total Annual Operating Expenses⁵

0.09%

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

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

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

3. Assumes reinvestment of distributions based on market price.

4. Source: FactSet. The FTSE Developed Europe Capped Index is a free float-adjusted market capitalization-weighted index maintained and calculated by FTSE Russell with a capping methodology applied quarterly to issuer weights so that no single issuer of a component exceeds 25% of the index weight, and all issuers with weights above 5% do not cumulatively exceed 50% of the index’s weight. The FTSE Developed Europe Capped Index is based on the FTSE Developed Europe Index and is designed to measure the performance of large- and mid-capitalization stocks from developed European countries.

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



franklintempleton.com	Annual Report	37

FRANKLIN FTSE EUROPE ETF

Your Fund’s Expenses

Actual Fund Expenses

Hypothetical Example for Comparison with Other Funds


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

Beginning Account Value 10/1/20		Ending Account Value 3/31/21		Expenses Paid During Period 10/1/20–3/31/21^1,2		Ending Account Value 3/31/21		Expenses Paid During Period 10/1/20–3/31/21^1,2		Net Annualized Expense Ratio²
	$1,000.00	$	1,204.30	$	0.49	$	1,024.48	$	0.45		0.09	%

2. Reflects expenses after fee waivers and expense reimbursements.



38	Annual Report	franklintempleton.com

Franklin FTSE Europe Hedged ETF

This annual report for Franklin FTSE Europe Hedged ETF covers the fiscal year ended March 31, 2021.

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 the 12-month period, the Fund posted cumulative total returns of +39.21% based on market price and +36.92% based on net asset value. In comparison, the FTSE Developed Europe Capped Hedged Index posted a +36.76% total return for the same period.² You can find more of the Fund’s performance data in the Performance Summary beginning on page 41.

Investment Strategy

The Fund, using a “passive” or indexing investment approach, seeks investment results that closely correspond, before fees and expenses, to the performance of the FTSE Developed Europe Capped Hedged Index. We seek to achieve, over time, a correlation between the Fund’s performance, before fees and expenses, and that of the Underlying Index of 0.95 or better. A figure of 1.00 would indicate perfect correlation. Our intention is to replicate the component securities of the Underlying Index as closely as possible (i.e., invest in all of the component securities in their respective weightings in the


Top 10 Sectors/Industries

3/31/21

	% of Total Net Assets
Pharmaceuticals		9.2%
Banks		7.1%
Insurance		5.5%
Textiles, Apparel & Luxury Goods		4.4%
Oil, Gas & Consumable Fuels		4.4%
Food Products		4.1%
Chemicals		3.9%
Machinery		3.3%
Semiconductors & Semiconductor Equipment		3.2%
Metals & Mining		3.0%

Underlying Index). However, under various circumstances, it may not be possible or practicable to replicate the Underlying Index. In these circumstances, we may use a “representative sampling” strategy whereby we would invest in what we believe to be a representative sample of the component securities of the Underlying Index, but may not track the Underlying Index with the same degree of accuracy as would an investment vehicle replicating the entire Underlying Index. Under the representative sampling technique, we will select securities that collectively have an investment profile similar to that of the Underlying Index, including securities that resemble those included in the Underlying Index in terms of risk factors, performance attributes and other characteristics, such as market capitalization and industry weightings. We intend to enter into monthly foreign currency forward contracts and/or currency futures contracts designed to offset the Fund’s exposure to the component currencies, in order to replicate the hedge impact incorporated in the calculation of the Underlying 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.

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- and mid-capitalization stocks from developed European countries. The FTSE Developed Europe Capped Hedged Index incorporates a hedge against non-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 222.



franklintempleton.com	Annual Report	39

FRANKLIN FTSE EUROPE HEDGED ETF


Top 10 Holdings

3/31/21

Company *Sector/Industry, Country*	% of Total Net Assets
Nestle SA Food Products, Switzerland		2.9%
ASML Holding NV Semiconductors & Semiconductor Equipment, Netherlands		2.3%
Roche Holding AG Pharmaceuticals, Switzerland		2.2%
Novartis AG Pharmaceuticals, Switzerland		1.7%
LVMH Moet Hennessy Louis Vuitton SE Textiles, Apparel & Luxury Goods, France		1.6%
Royal Dutch Shell Plc, A, B Oil, Gas & Consumable Fuels, United Kingdom		1.4%
Unilever PLC Personal Products, United Kingdom		1.3%
SAP SE Software, Germany		1.3%
AstraZeneca PLC Pharmaceuticals, United Kingdom		1.2%
Siemens AG Industrial Conglomerates, Germany		1.2%


Top 10 Countries

3/31/21

	% of Total Net Assets
United Kingdom		21.7%
France		16.4%
Germany		15.0%
Switzerland		14.4%
Netherlands		6.3%
Sweden		5.9%
Spain		3.8%
Denmark		3.6%
Italy		3.4%
Finland		2.1%

Manager’s Discussion

For the same period, no sectors detracted from the Fund’s absolute performance. Individual holdings that hindered the Fund’s absolute return included Wirecard, Galapagos and Grifols. The Fund’s use of currency forward contracts—designed to offset the Fund’s exposure to the component currencies and to replicate the hedge impact incorporated in the calculation of the Underlying Index—also detracted from the Fund’s absolute performance.

Thank you for your participation in Franklin FTSE Europe Hedged ETF. We look forward to serving your future investment needs.

Dina Ting, CFA

Hailey Harris

Portfolio Management Team



40	Annual Report	franklintempleton.com

FRANKLIN FTSE EUROPE HEDGED ETF

Performance Summary as of March 31, 2021

Net asset value or “NAV” is the value of one share of a fund as calculated in accordance with the standard formula for valuing mutual fund shares. The price used to calculate market return (Market Price) is determined by using the midpoint between the highest bid and the lowest offer on the primary stock exchange on which shares of a fund are listed for trading, as of the time that such fund’s NAV is calculated. Since shares of the Fund did not trade in the secondary market until after the Fund’s inception, for the period from inception to the first day of secondary trading (11/6/17), the NAV of the Fund is used as a proxy for the Market Price to calculate market returns. Market and NAV returns assume that dividends and capital gain distributions have been reinvested at Market Price and NAV.

Performance as of 3/31/21

Cumulative Total Return¹

Average Annual Total Return¹

Based on
NAV²

Based on

market price³

Based on
NAV²

Based on

market price³

1-Year

+36.92%

+39.21%

+36.92%

+39.21%

3-Year

+30.85%

+29.52%

+9.38%

+9.00%

Since Inception (11/2/17)

+24.82%

+25.67%

+6.72%

+6.94%

See page 43 for Performance Summary footnotes.



franklintempleton.com	Annual Report	41

FRANKLIN FTSE EUROPE HEDGED ETF

PERFORMANCE SUMMARY

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

11/2/17–3/31/21

LOGO

See page 43 for Performance Summary footnotes.



42	Annual Report	franklintempleton.com

FRANKLIN FTSE EUROPE HEDGED ETF

PERFORMANCE SUMMARY

Distributions (4/1/20–3/31/21)

Net Investment
Income

$0.465815

Total Annual Operating Expenses⁵

0.09%

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

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

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

3. Assumes reinvestment of distributions based on market price.

4. Source: FactSet. The FTSE Developed Europe Capped 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- and mid-capitalization stocks from developed European countries. The FTSE Developed Europe Capped Hedged Index incorporates a hedge against non-U.S. currency fluctuations by reflecting the impact of rolling monthly currency forward contracts on the currencies represented in the FTSE Developed Europe Capped Hedged Index.

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



franklintempleton.com	Annual Report	43

FRANKLIN FTSE EUROPE HEDGED ETF

Your Fund’s Expenses

Actual Fund Expenses

Hypothetical Example for Comparison with Other Funds


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

Beginning Account Value 10/1/20		Ending Account Value 3/31/21		Expenses Paid During Period 10/1/20–3/31/21^1,2		Ending Account Value 3/31/21		Expenses Paid During Period 10/1/20–3/31/21^1,2		Net Annualized Expense Ratio²
	$1,000.00	$	1,192.50	$	0.49	$	1,024.48	$	0.45		0.09	%

2. Reflects expenses after fee waivers and expense reimbursements.



44	Annual Report	franklintempleton.com

Franklin FTSE France ETF

This annual report for Franklin FTSE France ETF covers the fiscal year ended March 31, 2021.

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 the 12-month period, the Fund posted cumulative total returns of +51.30% based on market price and +49.47% based on net asset value. In comparison, the FTSE France Capped Index posted a +49.21% total return for the same period.² You can find more of the Fund’s performance data in the Performance Summary beginning on page 47.

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

3/31/21

	% of Total Net Assets
Textiles, Apparel & Luxury Goods		17.1%
Aerospace & Defense		6.8%
Oil, Gas & Consumable Fuels		6.5%
Pharmaceuticals		6.3%
Electrical Equipment		6.0%
Banks		5.9%
Personal Products		5.3%
Chemicals		4.8%
IT Services		3.8%
Construction & Engineering		3.6%

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- and mid-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 237.



franklintempleton.com	Annual Report	45

FRANKLIN FTSE FRANCE ETF


Top 10 Holdings

3/31/21

Company *Sector/Industry, Country*	% of Total Net Assets
LVMH Moet Hennessy Louis Vuitton SE Textiles, Apparel & Luxury Goods, France		9.5%
Total SE Oil, Gas & Consumable Fuels, France		6.5%
Sanofi Pharmaceuticals, France		6.2%
L’Oreal SA Personal Products, France		5.3%
Schneider Electric SE Electrical Equipment, France		4.6%
Air Liquide SA Chemicals, France		4.3%
BNP Paribas SA Banks, France		3.8%
Airbus SE Aerospace & Defense, France		3.6%
AXA SA Insurance, France		3.0%
Kering SA Textiles, Apparel & Luxury Goods, France		2.9%

Manager’s Discussion

For the fiscal year ended March 31, 2021, the sectors that contributed most to the Fund’s absolute performance were consumer discretionary, industrials and financials. Individual holdings that lifted the Fund’s absolute return included LVMH Moet Hennessy Louis Vuitton, Schneider Electric and BNP Paribas.

For the same period, no sectors detracted from the Fund’s absolute performance. Individual holdings that hindered the Fund’s absolute return included Casino Guichard-Perrachon, Air France-KLM and ICADE.

Thank you for your participation in Franklin FTSE France ETF. We look forward to serving your future investment needs.

Dina Ting, CFA

Hailey Harris

Portfolio Management Team



46	Annual Report	franklintempleton.com

FRANKLIN FTSE FRANCE ETF

Performance Summary as of March 31, 2021

Net asset value or “NAV” is the value of one share of a fund as calculated in accordance with the standard formula for valuing mutual fund shares. The price used to calculate market return (Market Price) is determined by using the midpoint between the highest bid and the lowest offer on the primary stock exchange on which shares of a fund are listed for trading, as of the time that such fund’s NAV is calculated. Since shares of the Fund did not trade in the secondary market until after the Fund’s inception, for the period from inception to the first day of secondary trading (11/6/17), the NAV of the Fund is used as a proxy for the Market Price to calculate market returns. Market and NAV returns assume that dividends and capital gain distributions have been reinvested at Market Price and NAV.

Performance as of 3/31/21

Cumulative Total Return¹

Average Annual Total Return¹

Based on
NAV²

Based on

market price³

Based on
NAV²

Based on

market price³

1-Year

+49.47%

+51.30%

+49.47%

+51.30%

3-Year

+20.14%

+18.65%

+6.31%

+5.87%

Since Inception (11/2/17)

+20.45%

+20.69%

+5.61%

+5.67%

See page 49 for Performance Summary footnotes.



franklintempleton.com	Annual Report	47

FRANKLIN FTSE FRANCE ETF

PERFORMANCE SUMMARY

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

11/2/17–3/31/21

LOGO

See page 49 for Performance Summary footnotes.



48	Annual Report	franklintempleton.com

FRANKLIN FTSE FRANCE ETF

PERFORMANCE SUMMARY

Distributions (4/1/20–3/31/21)

Net Investment
Income

$0.403821

Total Annual Operating Expenses⁵

0.09%

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

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

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

3. Assumes reinvestment of distributions based on market price.

4. Source: FactSet. The FTSE France Capped Index is a free float-adjusted market capitalization-weighted index maintained and calculated by FTSE Russell with a capping methodology applied quarterly to issuer weights so that no single issuer of a component exceeds 25% of the index weight, and all issuers with weights above 5% do not cumulatively exceed 50% of the index’s weight. The FTSE France Capped Index is based on the FTSE France Index and is designed to measure the performance of French large- and mid-capitalization stocks.

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



franklintempleton.com	Annual Report	49

FRANKLIN FTSE FRANCE ETF

Your Fund’s Expenses

Actual Fund Expenses

Hypothetical Example for Comparison with Other Funds


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

Beginning Account Value 10/1/20		Ending Account Value 3/31/21		Expenses Paid During Period 10/1/20–3/31/21^1,2		Ending Account Value 3/31/21		Expenses Paid During Period 10/1/20–3/31/21^1,2		Net Annualized Expense Ratio²
	$1,000.00	$	1,245.60	$	0.50	$	1,024.48	$	0.45		0.09	%

2. Reflects expenses after fee waivers and expense reimbursements.



50	Annual Report	franklintempleton.com

Franklin FTSE Germany ETF

This annual report for Franklin FTSE Germany ETF covers the fiscal year ended March 31, 2021.

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 the 12-month period, the Fund posted cumulative total returns of +60.97% based on market price and +59.79% based on net asset value. In comparison, the FTSE Germany Capped Index posted a +59.42% total return for the same period.² You can find more of the Fund’s performance data in the Performance Summary beginning on page 53.

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

3/31/21

	% of Total Net Assets
Automobiles		12.0%
Insurance		10.2%
Software		9.3%
Industrial Conglomerates		8.1%
Chemicals		7.8%
Pharmaceuticals		5.3%
Diversified Telecommunication Services		4.5%
Real Estate Management & Development		4.5%
Textiles, Apparel & Luxury Goods		4.4%
Capital Markets		3.6%

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- and mid-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 240.



franklintempleton.com	Annual Report	51

FRANKLIN FTSE GERMANY ETF


Top 10 Holdings

3/31/21

Company *Sector/Industry, Country*	% of Total Net Assets
SAP SE Software, Germany		8.7%
Siemens AG Industrial Conglomerates, Germany		7.8%
Allianz SE Insurance, Germany		6.6%
BASF SE Chemicals, Germany		4.8%
Daimler AG Automobiles, Germany		4.6%
Deutsche Telekom AG Diversified Telecommunication Services, Germany		4.1%
Volkswagen AG Automobiles, Germany		3.9%
Bayer AG Pharmaceuticals, Germany		3.9%
Adidas AG Textiles, Apparel & Luxury Goods, Germany		3.8%
Infineon Technologies AG Semiconductors & Semiconductor Equipment, Germany		3.5%

Manager’s Discussion

For the same period, no sectors detracted from the Fund’s absolute performance. The only individual holdings that hindered the Fund’s absolute return were Wirecard and Grenkeleasing.

Thank you for your participation in Franklin FTSE Germany ETF. We look forward to serving your future investment needs.

Dina Ting, CFA

Hailey Harris

Portfolio Management Team



52	Annual Report	franklintempleton.com

FRANKLIN FTSE GERMANY ETF

Performance Summary as of March 31, 2021

Net asset value or “NAV” is the value of one share of a fund as calculated in accordance with the standard formula for valuing mutual fund shares. The price used to calculate market return (Market Price) is determined by using the midpoint between the highest bid and the lowest offer on the primary stock exchange on which shares of a fund are listed for trading, as of the time that such fund’s NAV is calculated. Since shares of the Fund did not trade in the secondary market until after the Fund’s inception, for the period from inception to the first day of secondary trading (11/6/17), the NAV of the Fund is used as a proxy for the Market Price to calculate market returns. Market and NAV returns assume that dividends and capital gain distributions have been reinvested at Market Price and NAV.

Performance as of 3/31/21

Cumulative Total Return¹

Average Annual Total Return¹

Based on
NAV²

Based on

market price³

Based on
NAV²

Based on

market price³

1-Year

+59.79%

+60.97%

+59.79%

+60.97%

3-Year

+14.42%

+14.10%

+4.59%

+4.50%

Since Inception (11/2/17)

+10.17%

+2.88%

See page 55 for Performance Summary footnotes.



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FRANKLIN FTSE GERMANY ETF

PERFORMANCE SUMMARY

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

11/2/17–3/31/21

LOGO

See page 55 for Performance Summary footnotes.



54	Annual Report	franklintempleton.com

FRANKLIN FTSE GERMANY ETF

PERFORMANCE SUMMARY

Distributions (4/1/20–3/31/21)

Net Investment
Income

$0.649004

Total Annual Operating Expenses⁵

0.09%

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

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

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

3. Assumes reinvestment of distributions based on market price.

4. Source: FactSet. The FTSE Germany Capped Index is a free float-adjusted market capitalization-weighted index maintained and calculated by FTSE Russell with a capping methodology applied quarterly to issuer weights so that no single issuer of a component exceeds 25% of the index weight, and all issuers with weights above 5% do not cumulatively exceed 50% of the index’s weight. The FTSE Germany Capped Index is based on the FTSE Germany Index and is designed to measure the performance of German large- and mid-capitalization stocks.

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



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FRANKLIN FTSE GERMANY ETF

Your Fund’s Expenses

Actual Fund Expenses

Hypothetical Example for Comparison with Other Funds


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

Beginning Account Value 10/1/20		Ending Account Value 3/31/21		Expenses Paid During Period 10/1/20–3/31/21^1,2		Ending Account Value 3/31/21		Expenses Paid During Period 10/1/20–3/31/21^1,2		Net Annualized Expense Ratio²
	$1,000.00	$	1,160.90	$	0.48	$	1,024.48	$	0.45		0.09	%

2. Reflects expenses after fee waivers and expense reimbursements.



56	Annual Report	franklintempleton.com

Franklin FTSE Hong Kong ETF

This annual report for Franklin FTSE Hong Kong ETF covers the fiscal year ended March 31, 2021.

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 the 12-month period, the Fund posted cumulative total returns of +42.79% based on market price and +41.14% based on net asset value. In comparison, the FTSE Hong Kong Capped Index posted a +41.41% total return for the same period.² You can find more of the Fund’s performance data in the Performance Summary beginning on page 59.

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

3/31/21

	% of Total Net Assets
Insurance		19.7%
Real Estate Management & Development		16.5%
Capital Markets		12.7%
Hotels, Restaurants & Leisure		7.3%
Industrial Conglomerates		7.2%
Banks		5.0%
Electric Utilities		4.6%
Machinery		3.6%
Equity Real Estate Investment Trusts (REITs)		3.3%
Food Products		3.1%

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- and mid-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 243.



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FRANKLIN FTSE HONG KONG ETF


Top 10 Holdings

3/31/21

Company *Sector/Industry, Country*	% of Total Net Assets
AIA Group Ltd. Insurance, Hong Kong		19.7%
Hong Kong Exchanges & Clearing Ltd. Capital Markets, Hong Kong		12.5%
Sun Hung Kai Properties Ltd. Real Estate Management & Development, Hong Kong		3.6%
CK Hutchison Holdings Ltd. Industrial Conglomerates, Hong Kong		3.6%
Techtronic Industries Co. Ltd. Machinery, Hong Kong		3.6%
Galaxy Entertainment Group Ltd. Hotels, Restaurants & Leisure, Macau		3.2%
Link REIT Equity Real Estate Investment Trusts (REITs), Hong Kong		3.2%
Hong Kong & China Gas Co. Ltd. Gas Utilities, Hong Kong		2.7%
CLP Holdings Ltd. Electric Utilities, Hong Kong		2.7%
CK Asset Holdings Ltd. Real Estate Management & Development, Hong Kong		2.4%

Manager’s Discussion

For the fiscal year ended March 31, 2021, the sectors that contributed most to the Fund’s absolute performance were financials, consumer discretionary and industrials. Individual holdings that lifted the Fund’s absolute return included Hong Kong Exchanges and Clearing, AIA Group and Techtronic.

For the same period, the only sector that detracted from the Fund’s absolute performance was energy. Individual holdings that hindered the Fund’s absolute return included Sun Art Retail Group, WH Group and Television Broadcasts.

Thank you for your participation in Franklin FTSE Hong Kong ETF. We look forward to serving your future investment needs.

Dina Ting, CFA

Hailey Harris

Portfolio Management Team



58	Annual Report	franklintempleton.com

FRANKLIN FTSE HONG KONG ETF

Performance Summary as of March 31, 2021

Net asset value or “NAV” is the value of one share of a fund as calculated in accordance with the standard formula for valuing mutual fund shares. The price used to calculate market return (Market Price) is determined by using the midpoint between the highest bid and the lowest offer on the primary stock exchange on which shares of a fund are listed for trading, as of the time that such fund’s NAV is calculated. Since shares of the Fund did not trade in the secondary market until after the Fund’s inception, for the period from inception to the first day of secondary trading (11/6/17), the NAV of the Fund is used as a proxy for the Market Price to calculate market returns. Market and NAV returns assume that dividends and capital gain distributions have been reinvested at Market Price and NAV.

Performance as of 3/31/21

Cumulative Total Return¹

Average Annual Total Return¹

Based on
NAV²

Based on

market price³

Based on
NAV²

Based on

market price³

1-Year

+41.14%

+42.79%

+41.14%

+42.79%

3-Year

+17.19%

+15.92%

+5.43%

+5.05%

Since Inception (11/2/17)

+21.52%

+22.56%

+5.89%

+6.15%

See page 61 for Performance Summary footnotes.



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FRANKLIN FTSE HONG KONG ETF

PERFORMANCE SUMMARY

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

11/2/17–3/31/21

LOGO

See page 61 for Performance Summary footnotes.



60	Annual Report	franklintempleton.com

FRANKLIN FTSE HONG KONG ETF

PERFORMANCE SUMMARY

Distributions (4/1/20–3/31/21)

Net Investment
Income

$0.811670

Total Annual Operating Expenses⁵

0.09%

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

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

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

3. Assumes reinvestment of distributions based on market price.

4. Source: FactSet. The FTSE Hong Kong Capped Index is a free float-adjusted market capitalization-weighted index maintained and calculated by FTSE Russell with a capping methodology applied quarterly to issuer weights so that no single issuer of a component exceeds 25% of the index weight, and all issuers with weights above 5% do not cumulatively exceed 50% of the index’s weight. The FTSE Hong Kong Capped Index is based on the FTSE Hong Kong Index and is designed to measure the performance of Hong Kong large- and mid-capitalization stocks.

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



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FRANKLIN FTSE HONG KONG ETF

Your Fund’s Expenses

Actual Fund Expenses

Hypothetical Example for Comparison with Other Funds


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

Beginning Account Value 10/1/20		Ending Account Value 3/31/21		Expenses Paid During Period 10/1/20–3/31/21^1,2		Ending Account Value 3/31/21		Expenses Paid During Period 10/1/20–3/31/21^1,2		Net Annualized Expense Ratio²
	$1,000.00	$	1,259.10	$	0.51	$	1,024.48	$	0.45		0.09	%

2. Reflects expenses after fee waivers and expense reimbursements.



62	Annual Report	franklintempleton.com

Franklin FTSE India ETF

This annual report for Franklin FTSE India ETF covers the fiscal year ended March 31, 2021.

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 the 12-month period, the Fund posted cumulative total returns of +78.65% based on market price and +74.87% based on net asset value. In comparison, the FTSE India Capped Index posted a +80.68% 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 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

3/31/21

	% of Total Net Assets
IT Services		17.4%
Oil, Gas & Consumable Fuels		13.1%
Thrifts & Mortgage Finance		7.4%
Banks		6.8%
Automobiles		5.2%
Pharmaceuticals		4.2%
Chemicals		3.9%
Metals & Mining		3.5%
Household Products		3.5%
Construction Materials		3.4%

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- and mid-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 INDIA ETF


Top 10 Holdings

3/31/21

Company *Sector/Industry, Country*	% of Total Net Assets
Reliance Industries Ltd. Oil, Gas & Consumable Fuels, India		10.2%
Infosys Ltd. IT Services, India		8.1%
Housing Development Finance Corp. Ltd. Thrifts & Mortgage Finance, India		7.1%
Tata Consultancy Services Ltd. IT Services, India		5.2%
Hindustan Unilever Ltd. Household Products, India		3.5%
Axis Bank Ltd. Banks, India		2.6%
Bharti Airtel Ltd. Wireless Telecommunication Services, India		1.9%
Bajaj Finance Ltd. Consumer Finance, India		1.9%
HCL Technologies Ltd. IT Services, India		1.8%
Asian Paints Ltd. Chemicals, India		1.7%

Manager’s Discussion

For the fiscal year ended March 31, 2021, the sectors that contributed most to the Fund’s absolute performance were information technology, financials and energy. Individual holdings that lifted the Fund’s absolute return included Reliance Industries, Infosys and Housing Development Finance.

For the same period, no sectors detracted from the Fund’s absolute performance. Individual holdings that hindered the Fund’s absolute return included Yes Bank, Bayer Cropscience and Rajesh Exports.

Thank you for your participation in Franklin FTSE India ETF. We look forward to serving your future investment needs.

Dina Ting, CFA

Hailey Harris

Portfolio Management Team



64	Annual Report	franklintempleton.com

FRANKLIN FTSE INDIA ETF

Performance Summary as of March 31, 2021

Net asset value or “NAV” is the value of one share of a fund as calculated in accordance with the standard formula for valuing mutual fund shares. The price used to calculate market return (Market Price) is determined by using the midpoint between the highest bid and the lowest offer on the primary stock exchange on which shares of a fund are listed for trading, as of the time that such fund’s NAV is calculated. Since shares of the Fund did not trade in the secondary market until after the Fund’s inception, for the period from inception to the first day of secondary trading (2/9/18), the NAV of the Fund is used as a proxy for the Market Price to calculate market returns. Market and NAV returns assume that dividends and capital gain distributions have been reinvested at Market Price and NAV.

Performance as of 3/31/21

Cumulative Total Return¹

Average Annual Total Return¹

Based on
NAV²

Based on

market price³

Based on
NAV²

Based on

market price³

1-Year

+74.87%

+78.65%

+74.87%

+78.65%

3-Year

+25.11%

+24.21%

+7.75%

+7.49%

Since Inception (2/6/18)

+19.94%

+21.23%

+5.95%

+6.31%

See page 67 for Performance Summary footnotes.



franklintempleton.com	Annual Report	65

FRANKLIN FTSE INDIA ETF

PERFORMANCE SUMMARY

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

2/6/18–3/31/21

LOGO

See page 67 for Performance Summary footnotes.



66	Annual Report	franklintempleton.com

FRANKLIN FTSE INDIA ETF

PERFORMANCE SUMMARY

Distributions (4/1/20–3/31/21)

Net Investment
Income

$0.178538

Total Annual Operating Expenses⁵

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. Source: FactSet. The FTSE India Capped Index is a free float-adjusted market capitalization-weighted index maintained and calculated by FTSE Russell with a capping methodology applied quarterly to issuer weights so that no single issuer of a component exceeds 25% of the index weight, and all issuers with weights above 5% do not cumulatively exceed 50% of the index’s weight. The FTSE India Capped Index is based on the FTSE India Index and is designed to measure the performance of Indian large- and mid-capitalization stocks.

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



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FRANKLIN FTSE INDIA ETF

Your Fund’s Expenses

Actual Fund Expenses

Hypothetical Example for Comparison with Other Funds


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

Beginning Account Value 10/1/20		Ending Account Value 3/31/21		Expenses Paid During Period 10/1/20–3/31/21^1,2		Ending Account Value 3/31/21		Expenses Paid During Period 10/1/20–3/31/21^1,2		Net Annualized Expense Ratio²
	$1,000.00	$	1,258.00	$	1.07	$	1,023.98	$	0.96		0.19	%

2. Reflects expenses after fee waivers and expense reimbursements.



68	Annual Report	franklintempleton.com

Franklin FTSE Italy ETF

This annual report for Franklin FTSE Italy ETF covers the fiscal year ended March 31, 2021.

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 the 12-month period, the Fund posted cumulative total returns of +55.47% based on market price and +54.64% based on net asset value. In comparison, the FTSE Italy Capped Index posted a +54.51% total return for the same period.² You can find more of the Fund’s performance data in the Performance Summary beginning on page 71.

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

3/31/21

	% of Total Net Assets
Electric Utilities		20.1%
Banks		18.5%
Automobiles		13.1%
Insurance		7.8%
Oil, Gas & Consumable Fuels		7.0%
Gas Utilities		3.9%
Diversified Telecommunication Services		3.4%
Machinery		3.4%
Diversified Financial Services		3.0%
Textiles, Apparel & Luxury Goods		2.7%

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- and mid-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 ITALY ETF


Top 10 Holdings

3/31/21

Company *Sector/Industry, Country*	% of Total Net Assets
Enel SpA Electric Utilities, Italy		17.3%
Intesa Sanpaolo SpA Banks, Italy		9.5%
Stellantis NV Automobiles, Netherlands		8.2%
Eni SpA Oil, Gas & Consumable Fuels, Italy		7.0%
Assicurazioni Generali SpA Insurance, Italy		5.9%
Ferrari NV Automobiles, Italy		4.9%
UniCredit SpA Banks, Italy		4.3%
CNH Industrial NV Machinery, United Kingdom		3.4%
Snam SpA Gas Utilities, Italy		3.0%
Terna Rete Elettrica Nazionale SpA Electric Utilities, Italy		2.8%

Manager’s Discussion

For the fiscal year ended March 31, 2021, the sectors that contributed most to the Fund’s absolute performance were financials, utilities and consumer discretionary. Individual holdings that lifted the Fund’s absolute return included Enel, Stellantis and Intesa Sanpaolo.

For the same period, no sectors detracted from the Fund’s absolute performance. Individual holdings that hindered the Fund’s absolute return included Saipem, Mediaset and Faurecia.

Thank you for your participation in Franklin FTSE Italy ETF. We look forward to serving your future investment needs.

Dina Ting, CFA

Hailey Harris

Portfolio Management Team



70	Annual Report	franklintempleton.com

FRANKLIN FTSE ITALY ETF

Performance Summary as of March 31, 2021

Net asset value or “NAV” is the value of one share of a fund as calculated in accordance with the standard formula for valuing mutual fund shares. The price used to calculate market return (Market Price) is determined by using the midpoint between the highest bid and the lowest offer on the primary stock exchange on which shares of a fund are listed for trading, as of the time that such fund’s NAV is calculated. Since shares of the Fund did not trade in the secondary market until after the Fund’s inception, for the period from inception to the first day of secondary trading (11/6/17), the NAV of the Fund is used as a proxy for the Market Price to calculate market returns. Market and NAV returns assume that dividends and capital gain distributions have been reinvested at Market Price and NAV.

Performance as of 3/31/21

Cumulative Total Return¹

Average Annual Total Return¹

Based on
NAV²

Based on

market price³

Based on
NAV²

Based on

market price³

1-Year

+54.64%

+55.47%

+54.64%

+55.47%

3-Year

+10.57%

+12.75%

+3.41%

+4.08%

Since Inception (11/2/17)

+14.10%

+14.31%

+3.95%

+4.00%

See page 73 for Performance Summary footnotes.



franklintempleton.com	Annual Report	71

FRANKLIN FTSE ITALY ETF

PERFORMANCE SUMMARY

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

11/2/17–3/31/21

LOGO

See page 73 for Performance Summary footnotes.



72	Annual Report	franklintempleton.com

FRANKLIN FTSE ITALY ETF

PERFORMANCE SUMMARY

Distributions (4/1/20–3/31/21)

Net Investment
Income

$0.576935

Total Annual Operating Expenses⁵

0.09%

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

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

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

3. Assumes reinvestment of distributions based on market price.

4. Source: FactSet. The FTSE Italy Capped Index is a free float-adjusted market capitalization-weighted index maintained and calculated by FTSE Russell with a capping methodology applied quarterly to issuer weights so that no single issuer of a component exceeds 25% of the index weight, and all issuers with weights above 5% do not cumulatively exceed 50% of the index’s weight. The FTSE Italy Capped Index is based on the FTSE Italy Index and is designed to measure the performance of Italian large- and mid-capitalization stocks.

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



franklintempleton.com	Annual Report	73

FRANKLIN FTSE ITALY ETF

Your Fund’s Expenses

Actual Fund Expenses

Hypothetical Example for Comparison with Other Funds


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

Beginning Account Value 10/1/20		Ending Account Value 3/31/21		Expenses Paid During Period 10/1/20–3/31/21^1,2		Ending Account Value 3/31/21		Expenses Paid During Period 10/1/20–3/31/21^1,2		Net Annualized Expense Ratio²
	$1,000.00	$	1,290.70	$	0.51	$	1,024.48	$	0.45		0.09	%

2. Reflects expenses after fee waivers and expense reimbursements.



74	Annual Report	franklintempleton.com

Franklin FTSE Japan ETF

This annual report for Franklin FTSE Japan ETF covers the fiscal year ended March 31, 2021.

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 the 12-month period, the Fund posted cumulative total returns of +42.24% based on market price and +40.23% based on net asset value. In comparison, the FTSE Japan Capped Index posted a +40.06% total return for the same period.² You can find more of the Fund’s performance data in the Performance Summary beginning on page 77.

Investment Strategy

The Fund, using a “passive” or indexing investment approach, seeks investment results that closely correspond, before fees and expenses, to the performance of the FTSE Japan Capped Index. We seek to achieve, over time, a correlation between the Fund’s performance, before fees and expenses, and that of the Underlying Index of 0.95 or better. A figure of 1.00 would indicate perfect correlation. Our intention is to replicate the component securities of the Underlying

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.


Top 10 Sectors/Industries

3/31/21

	% of Total Net Assets
Automobiles		6.8%
Electronic Equipment, Instruments & Components		6.1%
Pharmaceuticals		5.8%
Machinery		5.6%
Banks		4.8%
Chemicals		4.7%
Wireless Telecommunication Services		4.6%
Household Durables		4.4%
Trading Companies & Distributors		3.6%
Road & Rail		3.2%

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- and mid-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 JAPAN ETF


Top 10 Holdings

3/31/21

Company *Sector/Industry, Country*	% of Total Net Assets
Toyota Motor Corp. Automobiles, Japan		4.3%
Sony Corp. Household Durables, Japan		2.9%
SoftBank Group Corp. Wireless Telecommunication Services, Japan		2.6%
Keyence Corp. Electronic Equipment, Instruments & Components, Japan		1.8%
Shin-Etsu Chemical Co. Ltd. Chemicals, Japan		1.5%
Mitsubishi UFJ Financial Group Inc. Banks, Japan		1.5%
Recruit Holdings Co. Ltd. Professional Services, Japan		1.5%
Tokyo Electron Ltd. Semiconductors & Semiconductor Equipment, Japan		1.4%
Nintendo Co. Ltd. Entertainment, Japan		1.3%
Nidec Corp. Electrical Equipment, Japan		1.3%

Manager’s Discussion

For the same period, the only sector that detracted from the Fund’s absolute performance was utilities. Individual holdings that hindered the Fund’s absolute return included KAO, West Japan Railway and East Japan Railway.

Thank you for your participation in Franklin FTSE Japan ETF. We look forward to serving your future investment needs.

Dina Ting, CFA

Hailey Harris

Portfolio Management Team



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FRANKLIN FTSE JAPAN ETF

Performance Summary as of March 31, 2021

Net asset value or “NAV” is the value of one share of a fund as calculated in accordance with the standard formula for valuing mutual fund shares. The price used to calculate market return (Market Price) is determined by using the midpoint between the highest bid and the lowest offer on the primary stock exchange on which shares of a fund are listed for trading, as of the time that such fund’s NAV is calculated. Since shares of the Fund did not trade in the secondary market until after the Fund’s inception, for the period from inception to the first day of secondary trading (11/6/17), the NAV of the Fund is used as a proxy for the Market Price to calculate market returns. Market and NAV returns assume that dividends and capital gain distributions have been reinvested at Market Price and NAV.

Performance as of 3/31/21

Cumulative Total Return¹

Average Annual Total Return¹

Based on
NAV²

Based on

market price³

Based on
NAV²

Based on

market price³

1-Year

+40.23%

+42.24%

+40.23%

+42.24%

3-Year

+20.55%

+19.50%

+6.43%

+6.12%

Since Inception (11/2/17)

+23.37%

+24.05%

+6.36%

+6.53%

See page 79 for Performance Summary footnotes.



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FRANKLIN FTSE JAPAN ETF

PERFORMANCE SUMMARY

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

11/2/17–3/31/21

LOGO

See page 79 for Performance Summary footnotes.



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FRANKLIN FTSE JAPAN ETF

PERFORMANCE SUMMARY

Distributions (4/1/20–3/31/21)

Net Investment
Income

$0.450669

Total Annual Operating Expenses⁵

0.09%

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

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

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

3. Assumes reinvestment of distributions based on market price.

4. Source: FactSet. The FTSE 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- and mid-capitalization stocks.

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



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FRANKLIN FTSE JAPAN ETF

Your Fund’s Expenses

Actual Fund Expenses

Hypothetical Example for Comparison with Other Funds


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

Beginning Account Value 10/1/20		Ending Account Value 3/31/21		Expenses Paid During Period 10/1/20–3/31/21^1,2		Ending Account Value 3/31/21		Expenses Paid During Period 10/1/20–3/31/21^1,2		Net Annualized Expense Ratio²
	$1,000.00	$	1,172.00	$	0.49	$	1,024.48	$	0.45		0.09	%

2. Reflects expenses after fee waivers and expense reimbursements.



80	Annual Report	franklintempleton.com

Franklin FTSE Japan Hedged ETF

This annual report for Franklin FTSE Japan Hedged ETF covers the fiscal year ended March 31, 2021.

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 the 12-month period, the Fund posted cumulative total returns of +46.44% based on market price and +43.84% based on net asset value. In comparison, the FTSE Japan Capped Hedged Index posted a +43.76% total return for the same period.² You can find more of the Fund’s performance data in the Performance Summary beginning on page 83.

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 Underlying Index as closely as possible (i.e., invest in all of the component securities in their respective weightings in the


Top 10 Sectors/Industries

3/31/21

	% of Total Net Assets
Automobiles		6.7%
Electronic Equipment, Instruments & Components		6.1%
Pharmaceuticals		5.8%
Machinery		5.6%
Banks		4.8%
Chemicals		4.7%
Wireless Telecommunication Services		4.5%
Household Durables		4.4%
Trading Companies & Distributors		3.6%
Road & Rail		3.2%

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. 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 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- and mid-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 264.



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FRANKLIN FTSE JAPAN HEDGED ETF


Top 10 Holdings

3/31/21

Company *Sector/Industry, Country*	% of Total Net Assets
Toyota Motor Corp. Automobiles, Japan		4.2%
Sony Corp. Household Durables, Japan		2.9%
SoftBank Group Corp. Wireless Telecommunication Services, Japan		2.6%
Keyence Corp. Electronic Equipment, Instruments & Components, Japan		1.8%
Shin-Etsu Chemical Co. Ltd. Chemicals, Japan		1.5%
Mitsubishi UFJ Financial Group Inc. Banks, Japan		1.5%
Recruit Holdings Co. Ltd. Professional Services, Japan		1.4%
Tokyo Electron Ltd. Semiconductors & Semiconductor Equipment, Japan		1.4%
Nintendo Co. Ltd. Entertainment, Japan		1.3%
Nidec Corp. Electrical Equipment, Japan		1.3%

Manager’s Discussion

For the fiscal year ended March 31, 2021, the sectors that contributed most to the Fund’s absolute performance were industrials, consumer discretionary and information technology. Individual holdings that lifted the Fund’s absolute return included Softbank Group, Sony and Toyota Motor. The Fund’s use of currency forward contracts—designed to offset the Fund’s exposure to the Japanese yen and to replicate the hedge impact incorporated in the calculation of the Underlying Index—also contributed to the Fund’s absolute performance. However, one cannot expect the same result in future periods.

For the same period, no sectors posted negative returns. Individual holdings that hindered the Fund’s absolute return included KAO, Central Japan Railway and East Japan Railway.

Thank you for your participation in Franklin FTSE Japan Hedged ETF. We look forward to serving your future investment needs.

Dina Ting, CFA

Hailey Harris

Portfolio Management Team



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FRANKLIN FTSE JAPAN HEDGED ETF

Performance Summary as of March 31, 2021

Net asset value or “NAV” is the value of one share of a fund as calculated in accordance with the standard formula for valuing mutual fund shares. The price used to calculate market return (Market Price) is determined by using the midpoint between the highest bid and the lowest offer on the primary stock exchange on which shares of a fund are listed for trading, as of the time that such fund’s NAV is calculated. Since shares of the Fund did not trade in the secondary market until after the Fund’s inception, for the period from inception to the first day of secondary trading (11/6/17), the NAV of the Fund is used as a proxy for the Market Price to calculate market returns. Market and NAV returns assume that dividends and capital gain distributions have been reinvested at Market Price and NAV.

Performance as of 3/31/21

Cumulative Total Return¹

Average Annual Total Return¹

Based on
NAV²

Based on

market price³

Based on
NAV²

Based on

market price³

1-Year

+43.84%

+46.44%

+43.84%

+46.44%

3-Year

+30.37%

+31.46%

+9.24%

+9.55%

Since Inception (11/2/17)

+25.45%

+26.14%

+6.88%

+7.05%

See page 85 for Performance Summary footnotes.



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FRANKLIN FTSE JAPAN HEDGED ETF

PERFORMANCE SUMMARY

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

11/2/17–3/31/21

LOGO

See page 85 for Performance Summary footnotes.



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FRANKLIN FTSE JAPAN HEDGED ETF

PERFORMANCE SUMMARY

Total Annual Operating Expenses⁵

0.09%

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

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

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

3. Assumes reinvestment of distributions based on market price.

4. Source: FactSet. The FTSE 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- and mid-capitalization stocks. The FTSE Japan Capped Hedged Index incorporates a hedge against fluctuations of the Japanese yen by reflecting the impact of rolling monthly currency forward contracts on the Japanese yen.

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



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FRANKLIN FTSE JAPAN HEDGED ETF

Your Fund’s Expenses

Actual Fund Expenses

Hypothetical Example for Comparison with Other Funds


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

Beginning Account Value 10/1/20		Ending Account Value 3/31/21		Expenses Paid During Period 10/1/20–3/31/21^1,2		Ending Account Value 3/31/21		Expenses Paid During Period 10/1/20–3/31/21^1,2		Net Annualized Expense Ratio²
	$1,000.00	$	1,227.90	$	0.50	$	1,024.48	$	0.45		0.09	%

2. Reflects expenses after fee waivers and expense reimbursements.



86	Annual Report	franklintempleton.com

Franklin FTSE Latin America ETF

This annual report for Franklin FTSE Latin America ETF covers the fiscal year ended March 31, 2021.

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 the 12-month period, the Fund posted cumulative total returns of +50.71% based on market price and +50.80% based on net asset value. In comparison, the FTSE Latin America Capped Index posted a +51.03% total return for the same period.² You can find more of the Fund’s performance data in the Performance Summary beginning on page 89.

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. Our


Top 10 Sectors/Industries

3/31/21

	% of Total Net Assets
Banks		18.5%
Metals & Mining		15.3%
Oil, Gas & Consumable Fuels		8.6%
Beverages		5.5%
Electric Utilities		4.8%
Food & Staples Retailing		4.8%
Multiline Retail		4.0%
Capital Markets		3.9%
Wireless Telecommunication Services		3.9%
Food Products		3.1%

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- and mid-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 275.



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Top 10 Holdings

3/31/21

Company *Sector/Industry, Country*	% of Total Net Assets
Vale SA Metals & Mining, Brazil		9.4%
Petroleo Brasileiro SA Oil, Gas & Consumable Fuels, Brazil		5.8%
Itau Unibanco Holding SA Banks, Brazil		4.3%
Banco Bradesco SA Banks, Brazil		4.2%
America Movil SAB de CV, L Wireless Telecommunication Services, Mexico		3.4%
B3 SA - Brasil Bolsa Balcao Capital Markets, Brazil		3.3%
Grupo Mexico SAB de CV, B Metals & Mining, Mexico		2.7%
Grupo Financiero Banorte SAB de CV Banks, Mexico		2.7%
Wal-Mart de Mexico SAB de CV, V Food & Staples Retailing, Mexico		2.7%
Fomento Economico Mexicano SAB de CV Beverages, Mexico		2.3%


Country Composition

3/31/21

	% of Total Net Assets
Brazil		62.9%
Mexico		24.7%
Chile		8.6%
Colombia		2.9%
United States		0.9%

Manager’s Discussion

For the same period, no sectors detracted from the Fund’s absolute performance. Individual holdings that hindered the Fund’s absolute return included IRB Brasil Resseguros, Telefonica Brasil and Cielo.

Thank you for your participation in Franklin FTSE Latin America ETF. We look forward to serving your future investment needs.

Dina Ting, CFA

Hailey Harris

Portfolio Management Team



88	Annual Report	franklintempleton.com

FRANKLIN FTSE LATIN AMERICA ETF

Performance Summary as of March 31, 2021

Net asset value or “NAV” is the value of one share of a fund as calculated in accordance with the standard formula for valuing mutual fund shares. The price used to calculate market return (Market Price) is determined by using the midpoint between the highest bid and the lowest offer on the primary stock exchange on which shares of a fund are listed for trading, as of the time that such fund’s NAV is calculated. Since shares of the Fund did not trade in the secondary market until after the Fund’s inception, for the period from inception to the first day of secondary trading (10/11/18), the NAV of the Fund is used as a proxy for the Market Price to calculate market returns. Market and NAV returns assume that dividends and capital gain distributions have been reinvested at Market Price and NAV.

Performance as of 3/31/21

Cumulative Total Return¹

Average Annual Total Return¹

Based on
NAV²

Based on

market price³

Based on
NAV²

Based on

market price³

1-Year

+50.80%

+50.71%

+50.80%

+50.71%

Since Inception (10/9/18)

-8.99%

-8.52%

-3.73%

-3.53%

See page 91 for Performance Summary footnotes.



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FRANKLIN FTSE LATIN AMERICA ETF

PERFORMANCE SUMMARY

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

10/9/18–3/31/21

LOGO

See page 91 for Performance Summary footnotes.



90	Annual Report	franklintempleton.com

FRANKLIN FTSE LATIN AMERICA ETF

PERFORMANCE SUMMARY

Distributions (4/1/20–3/31/21)

Net Investment
Income

$0.500235

Total Annual Operating Expenses⁵

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. Source: FactSet. 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- and mid-capitalization stocks.

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



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FRANKLIN FTSE LATIN AMERICA ETF

Your Fund’s Expenses

Actual Fund Expenses

Hypothetical Example for Comparison with Other Funds


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

Beginning Account Value 10/1/20		Ending Account Value 3/31/21		Expenses Paid During Period 10/1/20–3/31/21^1,2		Ending Account Value 3/31/21		Expenses Paid During Period 10/1/20–3/31/21^1,2		Net Annualized Expense Ratio²
	$1,000.00	$	1,280.50	$	1.08	$	1,023.98	$	0.96		0.19	%

2. Reflects expenses after fee waivers and expense reimbursements.



92	Annual Report	franklintempleton.com

Franklin FTSE Mexico ETF

This annual report for Franklin FTSE Mexico ETF covers the fiscal year ended March 31, 2021.

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 the 12-month period, the Fund posted cumulative total returns of +58.75% based on market price and +56.94% based on net asset value. In comparison, the FTSE Mexico Capped Index posted a +57.10% total return for the same period.² You can find more of the Fund’s performance data in the Performance Summary beginning on page 95.

Investment Strategy

The Fund, using a “passive” or indexing investment approach, seeks investment results that closely correspond, before fees and expenses, to the performance of the FTSE Mexico Capped Index. We seek to achieve, over time, a correlation between the Fund’s performance, before fees and expenses, and that of the Underlying Index of 0.95 or better. A figure of 1.00 would indicate perfect correlation. Our intention is to replicate the component securities of the Underlying


Top 10 Sectors/Industries

3/31/21

	% of Total Net Assets
Banks		14.8%
Beverages		13.5%
Wireless Telecommunication Services		11.7%
Metals & Mining		11.0%
Transportation Infrastructure		9.4%
Food & Staples Retailing		9.3%
Food Products		6.4%
Construction Materials		5.4%
Media		4.1%
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- and mid-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 280.



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FRANKLIN FTSE MEXICO ETF


Top 10 Holdings

3/31/21

Company *Sector/Industry, Country*	% of Total Net Assets
America Movil SAB de CV, L Wireless Telecommunication Services, Mexico		11.7%
Grupo Mexico SAB de CV, B Metals & Mining, Mexico		9.5%
Wal-Mart de Mexico SAB de CV, V Food & Staples Retailing, Mexico		9.3%
Grupo Financiero Banorte SAB de CV Banks, Mexico		9.3%
Fomento Economico Mexicano SAB de CV Beverages, Mexico		8.1%
Cemex SAB de CV Construction Materials, Mexico		4.3%
Grupo Bimbo SAB de CV, A Food Products, Mexico		3.2%
Grupo Elektra SAB de CV Banks, Mexico		3.1%
Grupo Televisa SA Media, Mexico		3.1%
Grupo Aeroportuario del Sureste SAB de CV, B Transportation Infrastructure, Mexico		3.0%

Manager’s Discussion

For the fiscal year ended March 31, 2021, the sectors that contributed most to the Fund’s absolute performance were materials, consumer staples and industrials. Individual holdings that lifted the Fund’s absolute return included Grupo Mexico, Grupo Financiero Banorte and Cemex.

For the same period, no sectors detracted from the Fund’s absolute performance. Individual holdings that hindered the Fund’s absolute return included Banco del Bajio, Banregio Grupo Financiero and Controladora Nemak.

Thank you for your participation in Franklin FTSE Mexico ETF. We look forward to serving your future investment needs.

Dina Ting, CFA

Hailey Harris

Portfolio Management Team



94	Annual Report	franklintempleton.com

FRANKLIN FTSE MEXICO ETF

Performance Summary as of March 31, 2021

Net asset value or “NAV” is the value of one share of a fund as calculated in accordance with the standard formula for valuing mutual fund shares. The price used to calculate market return (Market Price) is determined by using the midpoint between the highest bid and the lowest offer on the primary stock exchange on which shares of a fund are listed for trading, as of the time that such fund’s NAV is calculated. Since shares of the Fund did not trade in the secondary market until after the Fund’s inception, for the period from inception to the first day of secondary trading (11/7/17), the NAV of the Fund is used as a proxy for the Market Price to calculate market returns. Market and NAV returns assume that dividends and capital gain distributions have been reinvested at Market Price and NAV.

Performance as of 3/31/21

Cumulative Total Return¹

Average Annual Total Return¹

Based on
NAV²

Based on

market price³

Based on
NAV²

Based on

market price³

1-Year

+56.94%

+58.75%

+56.94%

+58.75%

3-Year

-4.80%

-6.14%

-1.63%

-2.09%

Since Inception (11/3/17)

-4.20%

-3.85%

-1.25%

-1.15%

See page 97 for Performance Summary footnotes.



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FRANKLIN FTSE MEXICO ETF

PERFORMANCE SUMMARY

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

11/3/17–3/31/21

LOGO

See page 97 for Performance Summary footnotes.



96	Annual Report	franklintempleton.com

FRANKLIN FTSE MEXICO ETF

PERFORMANCE SUMMARY

Distributions (4/1/20–3/31/21)

Net Investment
Income

$0.319659

Total Annual Operating Expenses⁵

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. Source: FactSet. The FTSE Mexico Capped Index is a free float-adjusted market capitalization-weighted index maintained and calculated by FTSE Russell with a capping methodology applied quarterly to issuer weights so that no single issuer of a component exceeds 25% of the index weight, and all issuers with weights above 5% do not cumulatively exceed 50% of the index’s weight. The FTSE Mexico Capped Index is based on the FTSE Mexico Index and is designed to measure the performance of Mexican large- and mid-capitalization stocks.

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



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FRANKLIN FTSE MEXICO ETF

Your Fund’s Expenses

Actual Fund Expenses

Hypothetical Example for Comparison with Other Funds


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

Beginning Account Value 10/1/20		Ending Account Value 3/31/21		Expenses Paid During Period 10/1/20–3/31/21^1,2		Ending Account Value 3/31/21		Expenses Paid During Period 10/1/20–3/31/21^1,2		Net Annualized Expense Ratio²
	$1,000.00	$	1,349.90	$	1.11	$	1,023.98	$	0.96		0.19	%

2. Reflects expenses after fee waivers and expense reimbursements.



98	Annual Report	franklintempleton.com

Franklin FTSE Russia ETF

This annual report for Franklin FTSE Russia ETF covers the fiscal year ended March 31, 2021.

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 the 12-month period, the Fund posted cumulative total returns of +56.05% based on market price and +52.27% based on net asset value. In comparison, the FTSE Russia Capped Index posted a +52.29% total return for the same period.² You can find more of the Fund’s performance data in the Performance Summary beginning on page 101.

Investment Strategy

The Fund, using a “passive” or indexing investment approach, seeks investment results that closely correspond, before fees and expenses, to the performance of the FTSE Russia Capped Index. We seek to achieve, over time, a correlation between the Fund’s performance, before fees and expenses, and that of the Underlying Index of 0.95 or better. A figure of 1.00 would indicate perfect correlation. Our intention is to replicate the component securities of the Underlying


Top 10 Sectors/Industries

3/31/21

	% of Total Net Assets
Oil, Gas & Consumable Fuels		45.5%
Banks		18.5%
Metals & Mining		18.3%
Electric Utilities		4.5%
Wireless Telecommunication Services		3.7%
Food & Staples Retailing		2.9%
Capital Markets		2.6%
Chemicals		1.6%
Diversified Telecommunication Services		1.2%
Airlines		0.8%

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- and mid-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 282.



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FRANKLIN FTSE RUSSIA ETF


Top 10 Holdings

3/31/21

Company *Sector/Industry, Country*	% of Total Net Assets
Sberbank of Russia PJSC Banks, Russia		15.0%
Gazprom PJSC Oil, Gas & Consumable Fuels, Russia		12.3%
LUKOIL PJSC Oil, Gas & Consumable Fuels, Russia		11.4%
NovaTek PJSC Oil, Gas & Consumable Fuels, Russia		8.6%
MMC Norilsk Nickel PJSC Metals & Mining, Russia		4.5%
Tatneft PAO Oil, Gas & Consumable Fuels, Russia		3.6%
Rosneft PJSC Oil, Gas & Consumable Fuels, Russia		3.4%
Magnit PJSC Food & Staples Retailing, Russia		2.9%
NLMK PJSC Metals & Mining, Russia		2.9%
Severstal PAO Metals & Mining, Russia		2.8%

Manager’s Discussion

For the fiscal year ended March 31, 2021, the sectors that contributed most to the Fund’s absolute performance were energy, financials and materials. Individual holdings that lifted the Fund’s absolute return included Sberbank of Russia, LUKOIL and Gazprom.

For the same period, no sectors detracted from the Fund’s absolute performance. The only individual holdings that hindered the Fund’s absolute return were Russneft and Credit Bank of Moscow.

Thank you for your participation in Franklin FTSE Russia ETF. We look forward to serving your future investment needs.

Dina Ting, CFA

Hailey Harris

Portfolio Management Team



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FRANKLIN FTSE RUSSIA ETF

Performance Summary as of March 31, 2021

Net asset value or “NAV” is the value of one share of a fund as calculated in accordance with the standard formula for valuing mutual fund shares. The price used to calculate market return (Market Price) is determined by using the midpoint between the highest bid and the lowest offer on the primary stock exchange on which shares of a fund are listed for trading, as of the time that such fund’s NAV is calculated. Since shares of the Fund did not trade in the secondary market until after the Fund’s inception, for the period from inception to the first day of secondary trading (2/9/18), the NAV of the Fund is used as a proxy for the Market Price to calculate market returns. Market and NAV returns assume that dividends and capital gain distributions have been reinvested at Market Price and NAV.

Performance as of 3/31/21

Cumulative Total Return¹

Average Annual Total Return¹

Based on
NAV²

Based on

market price³

Based on
NAV²

Based on

market price³

1-Year

+52.27%

+56.05%

+52.27%

+56.05%

3-Year

+30.29%

+29.58%

+9.22%

+9.02%

Since Inception (2/6/18)

+32.14%

+32.45%

+9.26%

+9.35%

See page 103 for Performance Summary footnotes.



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FRANKLIN FTSE RUSSIA ETF

PERFORMANCE SUMMARY

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

2/6/18–3/31/21

LOGO

See page 103 for Performance Summary footnotes.



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FRANKLIN FTSE RUSSIA ETF

PERFORMANCE SUMMARY

Distributions (4/1/20–3/31/21)

Net Investment
Income

$1.679656

Total Annual Operating Expenses⁵

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. Source: FactSet: The FTSE Russia Capped Index is a free float-adjusted market capitalization-weighted index maintained and calculated by FTSE Russell with a capping methodology applied quarterly to issuer weights so that no single issuer of a component exceeds 25% of the index weight, and all issuers with weights above 5% do not cumulatively exceed 50% of the index’s weight. The FTSE Russia Capped Index is based on the FTSE Russia Index and is designed to measure the performance of Russian large- and mid-capitalization stocks.

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



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FRANKLIN FTSE RUSSIA ETF

Your Fund’s Expenses

Actual Fund Expenses

Hypothetical Example for Comparison with Other Funds


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

Beginning Account Value 10/1/20		Ending Account Value 3/31/21		Expenses Paid During Period 10/1/20–3/31/21^1,2		Ending Account Value 3/31/21		Expenses Paid During Period 10/1/20–3/31/21^1,2		Net Annualized Expense Ratio²
	$1,000.00	$	1,325.70	$	1.10	$	1,023.98	$	0.96		0.19	%

2. Reflects expenses after fee waivers and expense reimbursements.



104	Annual Report	franklintempleton.com

Franklin FTSE Saudi Arabia ETF

This annual report for Franklin FTSE Saudi Arabia ETF covers the fiscal year ended March 31, 2021.

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 the 12-month period, the Fund posted cumulative total returns of +52.65% based on market price and +54.12% based on net asset value. In comparison, the FTSE Saudi Arabia Capped Index posted a +54.82% total return for the same period.² You can find more of the Fund’s performance data in the Performance Summary beginning on page 107.

Investment Strategy

The Fund, using a “passive” or indexing investment approach, seeks investment results that closely correspond, before fees and expenses, to the performance of the FTSE Saudi Arabia Capped Index. We seek to achieve, over time, a correlation between the Fund’s performance, before fees and expenses, and that of the Underlying Index of 0.95 or better. A figure of 1.00 would indicate perfect correlation. Our


Top 10 Sectors/Industries

3/31/21

	% of Total Net Assets
Banks		39.3%
Chemicals		20.5%
Oil, Gas & Consumable Fuels		9.9%
Diversified Telecommunication Services		8.0%
Food Products		3.2%
Metals & Mining		2.8%
Construction Materials		2.6%
Health Care Providers & Services		2.4%
Electric Utilities		2.3%
Wireless Telecommunication Services		2.2%

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- and mid-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 284.



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FRANKLIN FTSE SAUDI ARABIA ETF


Top 10 Holdings

3/31/21

Company *Sector/Industry, Country*	% of Total Net Assets
Al-Rajhi Bank Banks, Saudi Arabia		12.2%
Saudi Basic Industries Corp. Chemicals, Saudi Arabia		10.8%
Saudi Aramco, 144A, Reg S Oil, Gas & Consumable Fuels, Saudi Arabia		9.4%
Saudi Telecom Co. Diversified Telecommunication Services, Saudi Arabia		8.0%
National Commercial Bank Banks, Saudi Arabia		7.0%
Samba Financial Group Banks, Saudi Arabia		4.5%
Riyad Bank Banks, Saudi Arabia		4.0%
Saudi British Bank Banks, Saudi Arabia		2.9%
Saudi Arabian Mining Co. Metals & Mining, Saudi Arabia		2.8%
Banque Saudi Fransi Banks, Saudi Arabia		2.4%

Manager’s Discussion

For the fiscal year ended March 31, 2021, the sectors that contributed most to the Fund’s absolute performance were financials, materials and communication services. Individual holdings that lifted the Fund’s absolute return included Al Rajhi Bank, Saudi Basic Industries and Saudi Telecom.

For the same period, no sectors detracted from the Fund’s absolute performance. Individual holdings that hindered the Fund’s absolute return included Saudi Dairy & Foodstuff, Saudi British Bank and Yamama Cement.

Thank you for your participation in Franklin FTSE Saudi Arabia ETF. We look forward to serving your future investment needs.

Dina Ting, CFA

Hailey Harris

Portfolio Management Team



106	Annual Report	franklintempleton.com

FRANKLIN FTSE SAUDI ARABIA ETF

Performance Summary as of March 31, 2021

Net asset value or “NAV” is the value of one share of a fund as calculated in accordance with the standard formula for valuing mutual fund shares. The price used to calculate market return (Market Price) is determined by using the midpoint between the highest bid and the lowest offer on the primary stock exchange on which shares of a fund are listed for trading, as of the time that such fund’s NAV is calculated. Since shares of the Fund did not trade in the secondary market until after the Fund’s inception, for the period from inception to the first day of secondary trading (10/11/18), the NAV of the Fund is used as a proxy for the Market Price to calculate market returns. Market and NAV returns assume that dividends and capital gain distributions have been reinvested at Market Price and NAV.

Performance as of 3/31/21

Cumulative Total Return¹

Average Annual Total Return¹

Based on
NAV²

Based on

market price³

Based on
NAV²

Based on

market price³

1-Year

+54.12%

+52.65%

+54.12%

+52.65%

Since Inception (10/9/18)

+29.58%

+30.52%

+11.04%

+11.37%

See page 109 for Performance Summary footnotes.



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FRANKLIN FTSE SAUDI ARABIA ETF

PERFORMANCE SUMMARY

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

10/9/18–3/31/21

LOGO

See page 109 for Performance Summary footnotes.



108	Annual Report	franklintempleton.com

FRANKLIN FTSE SAUDI ARABIA ETF

PERFORMANCE SUMMARY

Distributions (4/1/20–3/31/21)

Net Investment
Income

$0.568915

Total Annual Operating Expenses⁵

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.

4. Source: FactSet. 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- and mid-capitalization stocks.

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



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FRANKLIN FTSE SAUDI ARABIA ETF

Your Fund’s Expenses

Actual Fund Expenses

Hypothetical Example for Comparison with Other Funds


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

Beginning Account Value 10/1/20		Ending Account Value 3/31/21		Expenses Paid During Period 10/1/20–3/31/21^1,2		Ending Account Value 3/31/21		Expenses Paid During Period 10/1/20–3/31/21^1,2		Net Annualized Expense Ratio²
	$1,000.00	$	1,224.20	$	2.16	$	1,022.99	$	1.97		0.39	%

2. Reflects expenses after fee waivers and expense reimbursements.



110	Annual Report	franklintempleton.com

Franklin FTSE South Africa ETF

This annual report for Franklin FTSE South Africa ETF covers the fiscal year ended March 31, 2021.

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 the 12-month period, the Fund posted cumulative total returns of +88.29% based on market price and +85.24% based on net asset value. In comparison, the FTSE/JSE South Africa Capped Index posted a +85.36% total return for the same period.² You can find more of the Fund’s performance data in the Performance Summary beginning on page 113.

Investment Strategy

The Fund, using a “passive” or indexing investment approach, seeks investment results that closely correspond, before fees and expenses, to the performance of the FTSE/JSE South Africa Capped Index. We seek to achieve, over time, a correlation between the Fund’s performance, before fees and expenses, and that of the Underlying Index of 0.95 or better.


Top 10 Sectors/Industries

3/31/21

	% of Total Net Assets
Metals & Mining		22.6%
Internet & Direct Marketing Retail		20.8%
Banks		9.9%
Diversified Financial Services		7.1%
Food & Staples Retailing		6.9%
Insurance		6.3%
Wireless Telecommunication Services		5.4%
Specialty Retail		3.0%
Chemicals		2.7%
Equity Real Estate Investment Trusts (REITs)		2.3%

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- and mid-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 286.



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FRANKLIN FTSE SOUTH AFRICA ETF


Top 10 Holdings

3/31/21

Company *Sector/Industry, Country*	% of Total Net Assets
Naspers Ltd., N Internet & Direct Marketing Retail, South Africa		20.8%
FirstRand Ltd. Diversified Financial Services, South Africa		5.9%
Impala Platinum Holdings Ltd. Metals & Mining, South Africa		5.0%
Sibanye Stillwater Ltd. Metals & Mining, South Africa		4.4%
Standard Bank Group Ltd. Banks, South Africa		3.7%
MTN Group Ltd. Wireless Telecommunication Services, South Africa		3.6%
AngloGold Ashanti Ltd. Metals & Mining, South Africa		3.1%
Anglo American Platinum Ltd. Metals & Mining, South Africa		3.0%
Capitec Bank Holdings Ltd. Banks, South Africa		2.9%
Gold Fields Ltd. Metals & Mining, South Africa		2.8%

Thank you for your participation in Franklin FTSE South Africa ETF. We look forward to serving your future investment needs.

Dina Ting, CFA

Hailey Harris

Portfolio Management Team

Manager’s Discussion

For the fiscal year ended March 31, 2021, the sectors that contributed most to the Fund’s absolute performance were materials, consumer discretionary and financials. Individual holdings that lifted the Fund’s absolute return included Naspers, Impala Platinum Holdings and Sibanye Stillwater.

For the same period, no sectors detracted from the Fund’s absolute performance. Individual holdings that hindered the Fund’s absolute return included Dis-Chem Pharmacies, Vukile Property Fund and Reunert.



112	Annual Report	franklintempleton.com

FRANKLIN FTSE SOUTH AFRICA ETF

Performance Summary as of March 31, 2021

Net asset value or “NAV” is the value of one share of a fund as calculated in accordance with the standard formula for valuing mutual fund shares. The price used to calculate market return (Market Price) is determined by using the midpoint between the highest bid and the lowest offer on the primary stock exchange on which shares of a fund are listed for trading, as of the time that such fund’s NAV is calculated. Since shares of the Fund did not trade in the secondary market until after the Fund’s inception, for the period from inception to the first day of secondary trading (10/11/18), the NAV of the Fund is used as a proxy for the Market Price to calculate market returns. Market and NAV returns assume that dividends and capital gain distributions have been reinvested at Market Price and NAV.

Performance as of 3/31/21

Cumulative Total Return¹

Average Annual Total Return¹

Based on
NAV²

Based on

market price³

Based on
NAV²

Based on

market price³

1-Year

+85.24%

+88.29%

+85.24%

+88.29%

Since Inception (10/10/18)

+24.56%

+25.01%

+9.29%

+9.46%

See page 115 for Performance Summary footnotes.



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FRANKLIN FTSE SOUTH AFRICA ETF

PERFORMANCE SUMMARY

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

10/10/18–3/31/21

LOGO

See page 115 for Performance Summary footnotes.



114	Annual Report	franklintempleton.com

FRANKLIN FTSE SOUTH AFRICA ETF

PERFORMANCE SUMMARY

Distributions (4/1/20–3/31/21)

Net Investment
Income

$0.951393

Total Annual Operating Expenses⁵

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. Source: FactSet. 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- and mid-capitalization stocks.

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



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FRANKLIN FTSE SOUTH AFRICA ETF

Your Fund’s Expenses

Actual Fund Expenses

Hypothetical Example for Comparison with Other Funds


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

Beginning Account Value 10/1/20		Ending Account Value 3/31/21		Expenses Paid During Period 10/1/20–3/31/21^1,2		Ending Account Value 3/31/21		Expenses Paid During Period 10/1/20–3/31/21^1,2		Net Annualized Expense Ratio²
	$1,000.00	$	1,384.90	$	1.13	$	1,023.98	$	0.96		0.19	%

2. Reflects expenses after fee waivers and expense reimbursements.



116	Annual Report	franklintempleton.com

Franklin FTSE South Korea ETF

This annual report for Franklin FTSE South Korea ETF covers the fiscal year ended March 31, 2021.

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 the 12-month period, the Fund posted cumulative total returns of +94.53% based on market price and +92.55% based on net asset value. In comparison, the FTSE South Korea Capped Index posted a +92.72% total return for the same period.² You can find more of the Fund’s performance data in the Performance Summary beginning on page 119.

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.


Top 10 Sectors/Industries

3/31/21

	% of Total Net Assets
Technology Hardware, Storage & Peripherals		19.6%
Interactive Media & Services		7.7%
Semiconductors & Semiconductor Equipment		6.9%
Banks		6.4%
Chemicals		6.3%
Automobiles		5.8%
Electronic Equipment, Instruments & Components		5.4%
Biotechnology		4.2%
Industrial Conglomerates		3.1%
Metals & Mining		2.9%

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- and mid-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 289.



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FRANKLIN FTSE SOUTH KOREA ETF


Top 10 Holdings

3/31/21

Company *Sector/Industry, Country*	% of Total Net Assets
Samsung Electronics Co. Ltd. Technology Hardware, Storage & Peripherals, South Korea		19.6%
SK Hynix Inc. Semiconductors & Semiconductor Equipment, South Korea		6.9%
Naver Corp. Interactive Media & Services, South Korea		5.0%
LG Chem Ltd. Chemicals, South Korea		4.0%
Hyundai Motor Co. Automobiles, South Korea		3.6%
Samsung SDI Co. Ltd. Electronic Equipment, Instruments & Components, South Korea		3.5%
Celltrion Inc. Biotechnology, South Korea		3.4%
Kakao Corp. Interactive Media & Services, South Korea		2.7%
KB Financial Group Inc. Banks, South Korea		2.2%
POSCO Metals & Mining, South Korea		2.1%

Manager’s Discussion

For the fiscal year ended March 31, 2021, the sectors that contributed most to the Fund’s absolute performance were information technology, consumer discretionary and communication services. Individual holdings that lifted the Fund’s absolute return included Samsung Electronics, Naver and LG Chem.

For the same period, no sectors detracted from the Fund’s absolute performance. Individual holdings that hindered the Fund’s absolute return included Alteogen, SK Biopharmaceuticals and Helixmith.

Thank you for your participation in Franklin FTSE South Korea ETF. We look forward to serving your future investment needs.

Dina Ting, CFA

Hailey Harris

Portfolio Management Team



118	Annual Report	franklintempleton.com

FRANKLIN FTSE SOUTH KOREA ETF

Performance Summary as of March 31, 2021

Net asset value or “NAV” is the value of one share of a fund as calculated in accordance with the standard formula for valuing mutual fund shares. The price used to calculate market return (Market Price) is determined by using the midpoint between the highest bid and the lowest offer on the primary stock exchange on which shares of a fund are listed for trading, as of the time that such fund’s NAV is calculated. Since shares of the Fund did not trade in the secondary market until after the Fund’s inception, for the period from inception to the first day of secondary trading (11/6/17), the NAV of the Fund is used as a proxy for the Market Price to calculate market returns. Market and NAV returns assume that dividends and capital gain distributions have been reinvested at Market Price and NAV.

Performance as of 3/31/21

Cumulative Total Return¹

Average Annual Total Return¹

Based on
NAV²

Based on

market price³

Based on
NAV²

Based on

market price³

1-Year

+92.55%

+94.53%

+92.55%

+94.53%

3-Year

+27.75%

+26.79%

+8.50%

+8.23%

Since Inception (11/2/17)

+30.08%

+31.54%

+8.02%

+8.38%

See page 121 for Performance Summary footnotes.



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FRANKLIN FTSE SOUTH KOREA ETF

PERFORMANCE SUMMARY

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

11/2/17–3/31/21

LOGO

See page 121 for Performance Summary footnotes.



120	Annual Report	franklintempleton.com

FRANKLIN FTSE SOUTH KOREA ETF

PERFORMANCE SUMMARY

Distributions (4/1/20–3/31/21)

Net Investment
Income

$0.304038

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.

4. Source: FactSet. The FTSE South Korea Capped Index is a free float-adjusted market capitalization-weighted index maintained and calculated by FTSE Russell with a capping methodology applied quarterly to issuer weights so that no single issuer of a component exceeds 25% of the index weight, and all issuers with weights above 5% do not cumulatively exceed 50% of the index’s weight. The FTSE South Korea Capped Index is based on the FTSE South Korea Index and is designed to measure the performance of South Korean large- and mid-capitalization stocks.

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



franklintempleton.com	Annual Report	121

FRANKLIN FTSE SOUTH KOREA ETF

Your Fund’s Expenses

Actual Fund Expenses

Hypothetical Example for Comparison with Other Funds


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

Beginning Account Value 10/1/20		Ending Account Value 3/31/21		Expenses Paid During Period 10/1/20–3/31/21^1,2		Ending Account Value 3/31/21		Expenses Paid During Period 10/1/20–3/31/21^1,2		Net Annualized Expense Ratio²
	$1,000.00	$	1,401.30	$	0.54	$	1,024.48	$	0.45		0.09	%

2. Reflects expenses after fee waivers and expense reimbursements.



122	Annual Report	franklintempleton.com

Franklin FTSE Switzerland ETF

This annual report for Franklin FTSE Switzerland ETF covers the fiscal year ended March 31, 2021.

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 the 12-month period, the Fund posted cumulative total returns of +27.42% based on market price and +27.54% based on net asset value. In comparison, the FTSE Switzerland Capped Index posted a +26.81% total return for the same period.² You can find more of the Fund’s performance data in the Performance Summary beginning on page 125.

Investment Strategy

The Fund, using a “passive” or indexing investment approach, seeks investment results that closely correspond, before fees and expenses, to the performance of the FTSE Switzerland Capped Index. We seek to achieve, over time, a correlation between the Fund’s performance, before fees and expenses, and that of the Underlying Index of 0.95 or better. A figure of 1.00 would indicate perfect correlation. Our intention is to


Top 10 Sectors/Industries

3/31/21

	% of Total Net Assets
Pharmaceuticals		28.0%
Food Products		22.1%
Capital Markets		7.9%
Insurance		7.8%
Chemicals		5.7%
Textiles, Apparel & Luxury Goods		4.0%
Health Care Equipment & Supplies		3.9%
Electrical Equipment		3.4%
Life Sciences Tools & Services		3.1%
Machinery		2.3%

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- and mid-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 294.



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FRANKLIN FTSE SWITZERLAND ETF


Top 10 Holdings

3/31/21

Company *Sector/Industry, Country*	% of Total Net Assets
Nestle SA Food Products, Switzerland		20.4%
Roche Holding AG Pharmaceuticals, Switzerland		15.5%
Novartis AG Pharmaceuticals, Switzerland		12.0%
Zurich Insurance Group AG Insurance, Switzerland		4.2%
UBS Group AG Capital Markets, Switzerland		3.4%
ABB Ltd. Electrical Equipment, Switzerland		3.4%
Cie Financiere Richemont SA Textiles, Apparel & Luxury Goods, Switzerland		3.2%
Lonza Group AG Life Sciences Tools & Services, Switzerland		2.7%
Sika AG Chemicals, Switzerland		2.6%
Givaudan AG Chemicals, Switzerland		2.4%

Manager’s Discussion

For the fiscal year ended March 31, 2021, the sectors that contributed most to the Fund’s absolute performance were financials, industrials and health care. Individual holdings that lifted the Fund’s absolute return included Nestle, ABB and UBS Group.

For the same period, the only sectors that detracted from the Fund’s absolute performance were real estate and utilities. Individual holdings that hindered the Fund’s absolute return included Swiss Prime Site, ams and BKW.

Thank you for your participation in Franklin FTSE Switzerland ETF. We look forward to serving your future investment needs.

Dina Ting, CFA

Hailey Harris

Portfolio Management Team



124	Annual Report	franklintempleton.com

FRANKLIN FTSE SWITZERLAND ETF

Performance Summary as of March 31, 2021

Net asset value or “NAV” is the value of one share of a fund as calculated in accordance with the standard formula for valuing mutual fund shares. The price used to calculate market return (Market Price) is determined by using the midpoint between the highest bid and the lowest offer on the primary stock exchange on which shares of a fund are listed for trading, as of the time that such fund’s NAV is calculated. Since shares of the Fund did not trade in the secondary market until after the Fund’s inception, for the period from inception to the first day of secondary trading (2/9/18), the NAV of the Fund is used as a proxy for the Market Price to calculate market returns. Market and NAV returns assume that dividends and capital gain distributions have been reinvested at Market Price and NAV.

Performance as of 3/31/21

Cumulative Total Return¹

Average Annual Total Return¹

Based on
NAV²

Based on

market price³

Based on
NAV²

Based on

market price³

1-Year

+27.54%

+27.42%

+27.54%

+27.42%

3-Year

+40.36%

+39.84%

+11.97%

+11.83%

Since Inception (2/6/18)

+37.68%

+36.93%

+10.70%

+10.51%

See page 127 for Performance Summary footnotes.



franklintempleton.com	Annual Report	125

FRANKLIN FTSE SWITZERLAND ETF

PERFORMANCE SUMMARY

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

2/6/18–3/31/21

LOGO

See page 127 for Performance Summary footnotes.



126	Annual Report	franklintempleton.com

FRANKLIN FTSE SWITZERLAND ETF

PERFORMANCE SUMMARY

Distributions (4/1/20–3/31/21)

Net Investment
Income

$0.698650

Total Annual Operating Expenses⁵

0.09%

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

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

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

3. Assumes reinvestment of distributions based on market price.

4. Source: FactSet. The FTSE Switzerland Capped Index is a free float-adjusted market-capitalization weighted index maintained and calculated by FTSE Russell with a capping methodology applied quarterly to issuer weights so that no single issuer of a component exceeds 25% of the index weight, and all issuers with weights above 5% do not cumulatively exceed 50% of the index’s weight. The FTSE Switzerland Capped Index is based on the FTSE Switzerland Index and is designed to measure the performance of Swiss large- and mid-capitalization stocks.

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



franklintempleton.com	Annual Report	127

FRANKLIN FTSE SWITZERLAND ETF

Your Fund’s Expenses

Actual Fund Expenses

Hypothetical Example for Comparison with Other Funds


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

Beginning Account Value 10/1/20		Ending Account Value 3/31/21		Expenses Paid During Period 10/1/20–3/31/21^1,2		Ending Account Value 3/31/21		Expenses Paid During Period 10/1/20–3/31/21^1,2		Net Annualized Expense Ratio²
	$1,000.00	$	1,078.70	$	0.47	$	1,024.48	$	0.45		0.09	%

2. Reflects expenses after fee waivers and expense reimbursements.



128	Annual Report	franklintempleton.com

Franklin FTSE Taiwan ETF

This annual report for Franklin FTSE Taiwan ETF covers the fiscal year ended March 31, 2021.

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 the 12-month period, the Fund posted cumulative total returns of +84.14% based on market price and +81.35% based on net asset value. In comparison, the FTSE Taiwan Capped Index posted a +81.03% total return for the same period.² You can find more of the Fund’s performance data in the Performance Summary beginning on page 131.

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


Top 10 Sectors/Industries

3/31/21

	% of Total Net Assets
Semiconductors & Semiconductor Equipment		36.2%
Electronic Equipment, Instruments & Components		15.9%
Banks		9.9%
Technology Hardware, Storage & Peripherals		7.7%
Chemicals		5.8%
Insurance		4.9%
Diversified Financial Services		2.2%
Diversified Telecommunication Services		1.9%
Construction Materials		1.5%
Food Products		1.5%

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- and mid-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 297.



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FRANKLIN FTSE TAIWAN ETF


Top 10 Holdings

3/31/21

Company *Sector/Industry, Country*	% of Total Net Assets
Taiwan Semiconductor Manufacturing Co. Ltd. Semiconductors & Semiconductor Equipment, Taiwan		18.7%
Hon Hai Precision Industry Co. Ltd. Electronic Equipment, Instruments & Components, Taiwan		6.5%
MediaTek Inc. Semiconductors & Semiconductor Equipment, Taiwan		6.3%
Delta Electronics Inc. Electronic Equipment, Instruments & Components, Taiwan		2.7%
United Microelectronics Corp. Semiconductors & Semiconductor Equipment, Taiwan		2.6%
Formosa Plastics Corp. Chemicals, Taiwan		2.2%
Nan Ya Plastics Corp. Chemicals, Taiwan		2.0%
Chunghwa Telecom Co. Ltd. Diversified Telecommunication Services, Taiwan		1.9%
Fubon Financial Holding Co. Ltd. Insurance, Taiwan		1.8%
CTBC Financial Holding Co. Ltd. Banks, Taiwan		1.8%

Manager’s Discussion

For the fiscal year ended March 31, 2021, the sectors that contributed most to the Fund’s absolute performance were information technology, financials and materials. Individual holdings that lifted the Fund’s absolute return included Taiwan Semiconductor Manufacturing, MediaTek and Hon Hai Precision Industry.

For the same period, no sectors posted negative returns. Individual holdings that hindered the Fund’s absolute return included Oneness Biotech, Largan Precision and Genius Electronic Optical.

Thank you for your participation in Franklin FTSE Taiwan ETF. We look forward to serving your future investment needs.

Dina Ting, CFA

Hailey Harris

Portfolio Management Team



130	Annual Report	franklintempleton.com

FRANKLIN FTSE TAIWAN ETF

Performance Summary as of March 31, 2021

Net asset value or “NAV” is the value of one share of a fund as calculated in accordance with the standard formula for valuing mutual fund shares. The price used to calculate market return (Market Price) is determined by using the midpoint between the highest bid and the lowest offer on the primary stock exchange on which shares of a fund are listed for trading, as of the time that such fund’s NAV is calculated. Since shares of the Fund did not trade in the secondary market until after the Fund’s inception, for the period from inception to the first day of secondary trading (11/6/17), the NAV of the Fund is used as a proxy for the Market Price to calculate market returns. Market and NAV returns assume that dividends and capital gain distributions have been reinvested at Market Price and NAV.

Performance as of 3/31/21

Cumulative Total Return¹

Average Annual Total Return¹

Based on
NAV²

Based on

market price³

Based on
NAV²

Based on

market price³

1-Year

+81.35%

+84.14%

+81.35%

+84.14%

3-Year

+67.43%

+67.95%

+18.74%

+18.87%

Since Inception (11/2/17)

+71.23%

+73.59%

+17.09%

+17.57%

See page 133 for Performance Summary footnotes.



franklintempleton.com	Annual Report	131

FRANKLIN FTSE TAIWAN ETF

PERFORMANCE SUMMARY

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

11/2/17–3/31/21

LOGO

See page 133 for Performance Summary footnotes.



132	Annual Report	franklintempleton.com

FRANKLIN FTSE TAIWAN ETF

PERFORMANCE SUMMARY

Distributions (4/1/20–3/31/21)

Net Investment
Income

$0.786655

Total Annual Operating Expenses⁵

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. Source: FactSet. The FTSE Taiwan Capped Index is a free float-adjusted market capitalization-weighted index maintained and calculated by FTSE Russell with a capping methodology applied quarterly to issuer weights so that no single issuer of a component exceeds 25% of the index weight, and all issuers with weights above 5% do not cumulatively exceed 50% of the index’s weight. The FTSE Taiwan Capped Index is based on the FTSE Taiwan Index and is designed to measure the performance of Taiwanese large- and mid-capitalization stocks.

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



franklintempleton.com	Annual Report	133

FRANKLIN FTSE TAIWAN ETF

Your Fund’s Expenses

Actual Fund Expenses

Hypothetical Example for Comparison with Other Funds


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

Beginning Account Value 10/1/20		Ending Account Value 3/31/21		Expenses Paid During Period 10/1/20–3/31/21^1,2		Ending Account Value 3/31/21		Expenses Paid During Period 10/1/20–3/31/21^1,2		Net Annualized Expense Ratio²
	$1,000.00	$	1,351.60	$	1.11	$	1,023.98	$	0.96		0.19	%

2. Reflects expenses after fee waivers and expense reimbursements.



134	Annual Report	franklintempleton.com

Franklin FTSE United Kingdom ETF

This annual report for Franklin FTSE United Kingdom ETF covers the fiscal year ended March 31, 2021.

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 the 12-month period, the Fund posted cumulative total returns of +38.64% based on market price and +36.19% based on net asset value. In comparison, the FTSE UK Capped Index posted a +36.20% total return for the same period.² You can find more of the Fund’s performance data in the Performance Summary beginning on page 137.

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

3/31/21

	% of Total Net Assets
Metals & Mining		10.1%
Banks		9.2%
Oil, Gas & Consumable Fuels		9.0%
Pharmaceuticals		8.8%
Personal Products		5.6%
Insurance		5.3%
Hotels, Restaurants & Leisure		4.3%
Tobacco		4.2%
Beverages		3.9%
Capital Markets		3.7%

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- and mid-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 300.



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FRANKLIN FTSE UNITED KINGDOM ETF


Top 10 Holdings

3/31/21

Company *Sector/Industry, Country*	% of Total Net Assets
Royal Dutch Shell PLC, A, B Oil, Gas & Consumable Fuels, United Kingdom		5.8%
Unilever PLC Personal Products, United Kingdom		5.6%
AstraZeneca PLC Pharmaceuticals, United Kingdom		5.1%
HSBC Holdings PLC Banks, United Kingdom		4.7%
Diageo PLC Beverages, United Kingdom		3.7%
GlaxoSmithKline PLC Pharmaceuticals, United Kingdom		3.4%
British American Tobacco PLC Tobacco, United Kingdom		3.4%
Rio Tinto PLC Metals & Mining, Australia		3.3%
BP PLC Oil, Gas & Consumable Fuels, United Kingdom		3.2%
BHP Group PLC Metals & Mining, United Kingdom		2.4%

Manager’s Discussion

For the fiscal year ended March 31, 2021, the sectors that contributed most to the Fund’s absolute performance were materials, financials and industrials. Individual holdings that lifted the Fund’s absolute return included Rio Tinto, BHP Group and Anglo American.

For the same period, no sectors detracted from the Fund’s absolute performance. Individual holdings that hindered the Fund’s absolute return included Babcock International Group, Micro Focus International and THG.

Thank you for your participation in Franklin FTSE United Kingdom ETF. We look forward to serving your future investment needs.

Dina Ting, CFA

Hailey Harris

Portfolio Management Team



136	Annual Report	franklintempleton.com

FRANKLIN FTSE UNITED KINGDOM ETF

Performance Summary as of March 31, 2021

Net asset value or “NAV” is the value of one share of a fund as calculated in accordance with the standard formula for valuing mutual fund shares. The price used to calculate market return (Market Price) is determined by using the midpoint between the highest bid and the lowest offer on the primary stock exchange on which shares of a fund are listed for trading, as of the time that such fund’s NAV is calculated. Since shares of the Fund did not trade in the secondary market until after the Fund’s inception, for the period from inception to the first day of secondary trading (11/6/17), the NAV of the Fund is used as a proxy for the Market Price to calculate market returns. Market and NAV returns assume that dividends and capital gain distributions have been reinvested at Market Price and NAV.

Performance as of 3/31/21

Cumulative Total Return¹

Average Annual Total Return¹

Based on
NAV²

Based on

market price³

Based on
NAV²

Based on

market price³

1-Year

+36.19%

+38.64%

+36.19%

+38.64%

3-Year

+5.13%

+1.68%

Since Inception (11/2/17)

+7.02%

+7.54%

+2.01%

+2.15%

See page 139 for Performance Summary footnotes.



franklintempleton.com	Annual Report	137

FRANKLIN FTSE UNITED KINGDOM ETF

PERFORMANCE SUMMARY

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

11/2/17–3/31/21

LOGO

See page 139 for Performance Summary footnotes.



138	Annual Report	franklintempleton.com

FRANKLIN FTSE UNITED KINGDOM ETF

PERFORMANCE SUMMARY

Distributions (4/1/20–3/31/21)

Net Investment
Income

$0.595298

Total Annual Operating Expenses⁵

0.09%

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

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

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

3. Assumes reinvestment of distributions based on market price.

4. Source: FactSet. The FTSE UK Capped Index is a free float-adjusted market capitalization-weighted index maintained and calculated by FTSE Russell with a capping methodology applied quarterly to issuer weights so that no single issuer of a component exceeds 25% of the index weight, and all issuers with weights above 5% do not cumulatively exceed 50% of the index’s weight. The FTSE UK Capped Index is based on the FTSE UK Index and is designed to measure the performance of U.K. large- and mid-capitalization stocks.

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



franklintempleton.com	Annual Report	139

FRANKLIN FTSE UNITED KINGDOM ETF

Your Fund’s Expenses

Actual Fund Expenses

Hypothetical Example for Comparison with Other Funds


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

Beginning Account Value 10/1/20		Ending Account Value 3/31/21		Expenses Paid During Period 10/1/20–3/31/21^1,2		Ending Account Value 3/31/21		Expenses Paid During Period 10/1/20–3/31/21^1,2		Net Annualized Expense Ratio²
	$1,000.00	$	1,245.00	$	0.50	$	1,024.48	$	0.45		0.09	%

2. Reflects expenses after fee waivers and expense reimbursements.



140	Annual Report	franklintempleton.com

FRANKLIN TEMPLETON ETF TRUST

Financial Highlights

Franklin FTSE Asia ex Japan ETF



	Year Ended March 31,

	2021			2020			2019			2018^a

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

Net asset value, beginning of year	$	18.39		$	21.86		$	23.63		$	23.64


Income from investment operations^b:

Net investment income^c		0.44			0.49			0.51			0.04

Net realized and unrealized gains (losses)		10.21			(3.46	)		(1.82	)		(0.05	)


Total from investment operations		10.65			(2.97	)		(1.31	)		(0.01	)


Less distributions from net investment income		(0.44	)		(0.50	)		(0.46	)		—


Net asset value, end of year	$	28.60		$	18.39		$	21.86		$	23.63


Total return^d		58.16%			(13.88)%			(5.34)%			(0.04)%

Ratios to average net assets^e

Expenses before waiver and payments by affiliates		0.19%			0.19%			0.19%			0.19%

Expenses net of waiver and payments by affiliates		0.19%			0.19%			—%			—%

Net investment income		1.78%			2.32%			2.34%			1.06%

Supplemental data

Net assets, end of year (000’s)		$34,317			$14,712			$17,488			$9,451

Portfolio turnover rate^f		11.64%^g			11.42%^g			7.11%			0.96%

^aFor the period February 6, 2018 (commencement of operations) to March 31, 2018.

^cBased on average daily shares outstanding.

^eRatios are annualized for periods less than one year.

^fPortfolio turnover rate includes portfolio transactions that are executed as a result of the Fund offering and redeeming Creation Units solely for cash (“Cash creations”).

^gPortfolio turnover rate excluding cash creations was as follows:

11.45%

11.42%



franklintempleton.com	The accompanying notes are an integral part of these financial statements. \| Annual Report	141

FRANKLIN TEMPLETON ETF TRUST

Statement of Investments, March 31, 2021

Franklin FTSE Asia ex Japan ETF



		Industry		Shares		Value
	Common Stocks and Other Equity Interests 98.7%
	Cambodia 0.0%^†
	NagaCorp Ltd.		Hotels, Restaurants & Leisure		6,000	$	7,085

	China 40.9%
	360 Security Technology Inc., A		Software		900		1,909
a	3SBio Inc.		Biotechnology		6,000		5,302
a	51job Inc., ADR		Professional Services		135		8,451
	A-Living Services Co. Ltd., H		Commercial Services & Supplies		1,500		6,656
	AAC Technologies Holdings Inc.		Electronic Equipment, Instruments & Components		3,000		15,107
	Addsino Co. Ltd., A		Communications Equipment		600		1,690
	AECC Aero-Engine Control Co. Ltd.		Aerospace & Defense		300		800
	AECC Aviation Power Co. Ltd., A		Aerospace & Defense		900		6,254
	Agile Group Holdings Ltd.		Real Estate Management & Development		6,000		9,832
	Agricultural Bank of China Ltd., A		Banks		42,600		22,075
	Agricultural Bank of China Ltd., H		Banks		144,000		57,604
	Aier Eye Hospital Group Co. Ltd.		Health Care Providers & Services		1,280		11,559
	Air China Ltd., A		Airlines		2,100		2,897
	Air China Ltd., H		Airlines		10,000		8,657
	Airtac International Group		Machinery		720		25,360
a	Alibaba Group Holding Ltd.		Internet & Direct Marketing Retail		65,280		1,847,282
a	Alibaba Health Information Technology Ltd.		Health Care Technology		22,000		62,255
a	Alpha Group, A		Leisure Products		300		249
a	Aluminum Corp. of China Ltd., A		Metals & Mining		4,500		2,586
a	Aluminum Corp. of China Ltd., H		Metals & Mining		18,000		7,409
	An Hui Wenergy Co. Ltd.		Independent Power and Renewable Electricity Producers		900		636
	Angang Steel Co. Ltd.		Metals & Mining		1,500		850
	Angang Steel Co. Ltd., H		Metals & Mining		6,000		2,994
	Angel Yeast Co. Ltd., A		Food Products		300		2,526
	Anhui Anke Biotechnology Group Co. Ltd.		Biotechnology		360		828
	Anhui Conch Cement Co. Ltd., A		Construction Materials		1,200		9,368
	Anhui Conch Cement Co. Ltd., H		Construction Materials		5,500		35,761
	Anhui Expressway Co. Ltd., A		Transportation Infrastructure		300		333
	Anhui Gujing Distillery Co. Ltd., A		Beverages		100		3,203
	Anhui Gujing Distillery Co. Ltd., B		Beverages		600		8,412
	Anhui Xinhua Media Co. Ltd., A		Distributors		300		223
	Anhui Zhongding Sealing Parts Co. Ltd.		Auto Components		300		454
	Anta Sports Products Ltd.		Textiles, Apparel & Luxury Goods		5,000		81,549
	Autohome Inc., ADR		Interactive Media & Services		303		28,261
	Avary Holding Shenzhen Co. Ltd., A		Electronic Equipment, Instruments & Components		300		1,632
	AVIC Aircraft Co. Ltd.		Aerospace & Defense		900		3,328
	Avic Aviation High-Technology Co. Ltd., A		Machinery		600		2,343
	Avic Capital Co. Ltd., A		Diversified Financial Services		5,100		3,109
	AVIC Electromechanical Systems Co. Ltd.		Aerospace & Defense		1,500		2,227
	Avic Heavy Machinery Co. Ltd., A		Machinery		300		804
	AVIC Jonhon OptronicTechnology Co. Ltd.		Electronic Equipment, Instruments & Components		300		3,091
	AVIC Shenyang Aircraft Co. Ltd., A		Aerospace & Defense		300		2,968
	AviChina Industry & Technology Co. Ltd., H		Aerospace & Defense		12,000		8,042
	AVICOPTER PLC, A		Aerospace & Defense		300		2,312
	BAIC Motor Corp. Ltd., H		Automobiles		12,000		3,843
a	Baidu Inc., ADR		Interactive Media & Services		1,300		282,815
	Bank of Beijing Co. Ltd., A		Banks		7,200		5,267
	Bank of Changsha Co. Ltd., A		Banks		900		1,433
	Bank of Chengdu Co. Ltd., A		Banks		300		515
	Bank of China Ltd., A		Banks		24,000		12,254
	Bank of China Ltd., H		Banks		351,000		133,638
	Bank of Communications Co. Ltd., A		Banks		12,000		9,053



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STATEMENT OF INVESTMENTS

Franklin FTSE Asia ex Japan ETF (continued)



		Industry		Shares		Value
	Common Stocks and Other Equity Interests (continued)
	China (continued)
	Bank of Communications Co. Ltd., H		Banks		36,000	$	22,921
	Bank of Guiyang Co. Ltd., A		Banks		900		1,119
	Bank of Hangzhou Co. Ltd.		Banks		2,100		5,406
	Bank of Jiangsu Co. Ltd., A		Banks		1,080		1,065
	Bank of Nanjing Co. Ltd., A		Banks		3,300		5,090
	Bank of Ningbo Co. Ltd., A		Banks		1,800		10,666
	Bank of Qingdao Co. Ltd., A		Banks		300		233
	Bank of Shanghai Co. Ltd., A		Banks		4,580		6,136
	Bank of Zhengzhou Co. Ltd.		Banks		2,440		1,402
	Baoshan Iron & Steel Co. Ltd., A		Metals & Mining		6,000		7,389
	BBMG Corp., A		Construction Materials		3,600		1,619
	BBMG Corp., H		Construction Materials		12,000		2,501
	Beijing Capital Co. Ltd., A		Water Utilities		4,200		2,093
	Beijing Capital Development Co. Ltd., A		Real Estate Management & Development		600		530
	Beijing Capital International Airport Co. Ltd.		Transportation Infrastructure		6,000		4,669
	Beijing Dabeinong Technology Group Co. Ltd.		Food Products		900		1,155
	Beijing Enlight Media Co. Ltd.		Entertainment		600		1,096
	Beijing Enterprises Holdings Ltd.		Gas Utilities		3,000		10,592
	Beijing Enterprises Water Group Ltd.		Water Utilities		24,000		9,107
	Beijing Jingneng Clean Energy Co. Ltd., H		Independent Power and Renewable Electricity Producers		6,000		1,358
	Beijing Kunlun Tech Co. Ltd.		Entertainment		600		2,168
	Beijing New Building Materials PLC		Building Products		600		3,947
	Beijing Orient National Communication Science &Technology Co. Ltd.		Software		300		430
	Beijing Oriental Yuhong Waterproof Technology Co. Ltd.		Construction Materials		900		7,018
	Beijing Originwater Technology Co. Ltd.		Commercial Services & Supplies		600		734
	Beijing Sanju Environmental Protection and New Material Co. Ltd.		Chemicals		300		266
	Beijing Shiji Information Technology Co. Ltd.		Software		600		2,700
a	Beijing Shougang Co. Ltd.		Metals & Mining		1,500		1,054
	Beijing Shunxin Agriculture Co. Ltd., A		Beverages		300		2,146
	Beijing Sinnet Technology Co. Ltd., A		IT Services		600		1,570
	Beijing SL Pharmaceutical Co. Ltd.		Biotechnology		300		433
	Beijing Tiantan Biological Products Corp. Ltd., A		Biotechnology		340		1,692
a	Beijing Ultrapower Software Co. Ltd.		IT Services		600		427
	Beijing Yanjing Brewery Co. Ltd.		Beverages		600		671
	Beijing Zhong Ke San Huan High-Tech Co. Ltd.		Electronic Equipment, Instruments & Components		300		433
	Beijing-Shanghai High Speed Railway Co. Ltd.		Road & Rail		3,000		2,675
a	Bilibili Inc., ADR		Entertainment		723		77,404
	Blue Sail Medical Co. Ltd., A		Health Care Equipment & Supplies		300		881
a	Bluefocus Intelligent Communications Group Co. Ltd.		Media		600		587
	Bluestar Adisseo Co., A		Chemicals		300		637
	BOE Technology Group Co. Ltd.		Electronic Equipment, Instruments & Components		11,700		11,181
	BOE Technology Group Co. Ltd.		Electronic Equipment, Instruments & Components		4,200		2,020
	Bosideng International Holdings Ltd.		Textiles, Apparel & Luxury Goods		12,000		5,402
	Bright Dairy & Food Co. Ltd., A		Food Products		300		838
	Brilliance China Automotive Holdings Ltd.		Automobiles		12,000		11,268
	BTG Hotels Group Co. Ltd., A		Hotels, Restaurants & Leisure		300		1,246
	Budweiser Brewing Co. APAC Ltd.		Beverages		8,100		24,171



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STATEMENT OF INVESTMENTS

Franklin FTSE Asia ex Japan ETF (continued)



		Industry		Shares		Value
	Common Stocks and Other Equity Interests (continued)
	China (continued)
	By-health Co. Ltd., A		Personal Products		600	$	2,617
	BYD Co. Ltd.		Automobiles		600		15,044
	BYD Co. Ltd., H		Automobiles		3,500		74,237
	BYD Electronic International Co. Ltd.		Communications Equipment		3,500		20,439
	C&S Paper Co. Ltd., A		Household Products		300		1,181
	Caitong Securities Co. Ltd., A		Capital Markets		300		509
	Camel Group Co. Ltd., A		Electrical Equipment		360		584
a,b,c	CanSino Biologics Inc., 144A, Reg S		Pharmaceuticals		400		15,126
	CECEP Solar Energy Co. Ltd.		Independent Power and Renewable Electricity Producers		1,200		1,253
	CECEP Wind-Power Corp		Independent Power and Renewable Electricity Producers		600		393
a	Central China Securities Co. Ltd., A		Capital Markets		900		617
a	Central China Securities Co. Ltd., H		Capital Markets		3,000		575
	Centre Testing International Group Co. Ltd., A		Professional Services		400		1,738
	Changchun High & New Technology Industry Group Inc.		Pharmaceuticals		100		6,900
	Changjiang Securities Co. Ltd.		Capital Markets		3,000		3,228
	Changzhou Xingyu Automotive LightingSystems Co. Ltd., A		Auto Components		100		2,881
	Chaozhou Three-Circle Group Co. Ltd.		Electronic Equipment, Instruments & Components		600		3,830
	Chengdu Xingrong Environment Co. Ltd.		Water Utilities		1,200		986
	China Aerospace Times Electronics Co. Ltd., A		Aerospace & Defense		600		653
	China Aoyuan Group Ltd.		Real Estate Management & Development		6,000		6,444
	China Avic Avionics Equipment Co. Ltd., A		Aerospace & Defense		300		690
	China Baoan Group Co. Ltd.		Industrial Conglomerates		1,200		1,588
a	China Biologic Products Holdings Inc.		Biotechnology		108		12,788
	China Cinda Asset Management Co. Ltd., H		Capital Markets		42,000		8,752
	China CITIC Bank Corp. Ltd., A		Banks		3,300		2,741
	China CITIC Bank Corp. Ltd., H		Banks		45,000		22,863
	China Coal Energy Co. Ltd., A		Oil, Gas & Consumable Fuels		2,100		1,968
	China Coal Energy Co. Ltd., H		Oil, Gas & Consumable Fuels		12,000		5,526
	China Communications Services Corp. Ltd.		Construction & Engineering		12,000		5,387
	China Conch Venture Holdings Ltd.		Construction & Engineering		7,500		35,260
	China Construction Bank Corp., A		Banks		3,600		4,033
	China Construction Bank Corp., H		Banks		432,000		363,406
a	China COSCO Holdings Co. Ltd., A		Marine		3,000		6,182
a	China CSSC Holdings Ltd., A		Machinery		900		2,103
b,c	China East Education Holdings Ltd., 144A, Reg S		Diversified Consumer Services		1,500		3,268
	China Eastern Airlines Corp. Ltd., A		Airlines		3,300		2,746
	China Eastern Airlines Corp. Ltd., H		Airlines		6,000		2,825
	China Enterprise Co. Ltd., A		Real Estate Management & Development		2,700		1,399
	China Everbright Bank Co. Ltd., A		Banks		12,900		8,022
	China Everbright Bank Co. Ltd., H		Banks		15,000		6,541
	China Everbright Environment Group Ltd.		Commercial Services & Supplies		15,503		10,489
	China Everbright Ltd.		Capital Markets		2,000		2,614
	China Evergrande Group		Real Estate Management & Development		12,000		22,844
b,c	China Feihe Ltd., 144A, Reg S		Food Products		12,000		33,957
	China Film Co. Ltd., A		Entertainment		300		648
	China Fortune Land Development Co. Ltd., A		Real Estate Management & Development		1,540		1,474
	China Galaxy Securities Co. Ltd., A		Capital Markets		600		946
	China Galaxy Securities Co. Ltd., H		Capital Markets		18,000		11,113



144	Annual Report	franklintempleton.com

FRANKLIN TEMPLETON ETF TRUST

STATEMENT OF INVESTMENTS

Franklin FTSE Asia ex Japan ETF (continued)



		Industry		Shares		Value
	Common Stocks and Other Equity Interests (continued)
	China (continued)
	China Gas Holdings Ltd.		Gas Utilities		12,000	$	49,161
	China Gezhouba Group Co. Ltd., A		Construction & Engineering		1,200		1,386
	China Great Wall Securities Co. Ltd., A		Capital Markets		600		998
	China Greatwall Technology Group Co. Ltd.		Technology Hardware, Storage & Peripherals		600		1,359
	China Hongqiao Group Ltd.		Metals & Mining		13,500		18,024
	China Huarong Asset Management Co. Ltd., H		Capital Markets		54,000		7,085
a	China International Capital Corp. Ltd., H		Capital Markets		6,900		16,721
	China International Marine Containers (Group) Co. Ltd., H		Machinery		2,100		3,684
	China International Marine Containers Group Co. Ltd.		Machinery		900		2,193
	China Jinmao Holdings Group Ltd.		Real Estate Management & Development		30,000		12,039
	China Jushi Co. Ltd., A		Construction Materials		1,200		3,512
	China Lesso Group Holdings Ltd.		Building Products		4,000		8,603
	China Life Insurance Co. Ltd., A		Insurance		1,800		8,730
	China Life Insurance Co. Ltd., H		Insurance		34,000		70,235
a	China Literature Ltd.		Media		1,200		11,877
a	China Lodging Group Ltd., ADR		Hotels, Restaurants & Leisure		885		48,587
	China Longyuan Power Group Corp.		Independent Power and Renewable Electricity Producers		15,000		20,374
	China Medical System Holdings Ltd.		Pharmaceuticals		6,000		11,870
	China Meheco Co. Ltd., A		Trading Companies & Distributors		300		632
	China Mengniu Dairy Co. Ltd.		Food Products		13,000		74,410
	China Merchants Bank Co. Ltd., A		Banks		6,900		53,739
	China Merchants Bank Co. Ltd., H		Banks		17,500		133,595
	China Merchants Energy Shipping Co. Ltd., A		Oil, Gas & Consumable Fuels		2,400		1,909
	China Merchants Expressway Network & Technology Holdings Co. Ltd.		Transportation Infrastructure		300		359
	China Merchants Port Holdings Co. Ltd.		Transportation Infrastructure		6,000		9,199
	China Merchants Securities Co. Ltd.		Capital Markets		5,400		7,446
	China Merchants Securities Co. Ltd., A		Capital Markets		2,720		8,146
	China Merchants Shekou Industrial Zone Holdings Co. Ltd., A		Real Estate Management & Development		2,700		5,049
	China Minsheng Banking Corp. Ltd., A		Banks		11,700		9,005
	China Minsheng Banking Corp. Ltd., H		Banks		30,000		17,403
	China Molybdenum Co. Ltd., A		Metals & Mining		3,000		2,414
	China Molybdenum Co. Ltd., H		Metals & Mining		18,000		10,905
	China National Building Material Co. Ltd., H		Construction Materials		18,000		25,977
	China National Chemical Engineering Co. Ltd., A		Construction & Engineering		1,800		1,918
	China National Medicines Corp. Ltd., A		Health Care Providers & Services		300		1,548
	China National Software & Service Co. Ltd., A		Software		300		2,449
a	China Nonferrous Metal Industry’s Foreign Engineeringand Construction Co. Ltd.		Metals & Mining		600		481
a	China Northern Rare Earth Group High-Tech Co. Ltd., A		Metals & Mining		1,200		3,497
	China Oilfield Services Ltd., A		Energy Equipment & Services		600		1,356
	China Oilfield Services Ltd., H		Energy Equipment & Services		8,000		8,232
	China Orient Securities Co. Ltd., A		Capital Markets		2,100		2,836
	China Overseas Land & Investment Ltd.		Real Estate Management & Development		18,000		46,769
	China Pacific Insurance Group Co. Ltd., A		Insurance		2,100		12,111
	China Pacific Insurance Group Co. Ltd., H		Insurance		12,000		47,309
	China Petroleum & Chemical Corp., A		Oil, Gas & Consumable Fuels		11,700		7,721



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STATEMENT OF INVESTMENTS

Franklin FTSE Asia ex Japan ETF (continued)



		Industry		Shares		Value
	Common Stocks and Other Equity Interests (continued)
	China (continued)
	China Petroleum & Chemical Corp., H		Oil, Gas & Consumable Fuels		120,000	$	63,902
	China Power International Development Ltd.		Independent Power and Renewable Electricity Producers		24,000		5,588
	China Railway Group Ltd., A		Construction & Engineering		6,600		5,945
	China Railway Group Ltd., H		Construction & Engineering		18,000		9,516
	China Railway Signal & Communication Corp. Ltd., A		Electronic Equipment, Instruments & Components		2,000		1,728
b	China Railway Signal & Communication Corp. Ltd., H, Reg S		Electronic Equipment, Instruments & Components		9,000		3,693
	China Railway Tielong Container Logistics Co. Ltd., A		Road & Rail		600		520
	China Reinsurance Group Corp., H		Insurance		33,000		3,523
	China Resources Beer Holdings Co. Ltd.		Beverages		7,800		61,150
	China Resources Cement Holdings Ltd.		Construction Materials		12,000		13,475
	China Resources Double Crane Pharmaceutical Co. Ltd., A		Pharmaceuticals		300		536
	China Resources Gas Group Ltd.		Gas Utilities		4,000		22,175
	China Resources Land Ltd.		Real Estate Management & Development		13,500		65,378
	China Resources Pharmaceutical Group Ltd.		Pharmaceuticals		9,000		5,615
	China Resources Power Holdings Co. Ltd.		Independent Power and Renewable Electricity Producers		10,500		13,938
	China Resources Sanjiu Medical & Pharmaceutical Co. Ltd.		Pharmaceuticals		300		1,118
	China Satellite Communications Co. Ltd., A		Media		600		1,422
	China Shenhua Energy Co. Ltd., A		Oil, Gas & Consumable Fuels		2,100		6,433
	China Shenhua Energy Co. Ltd., H		Oil, Gas & Consumable Fuels		16,500		34,000
	China Shipping Container Lines Co. Ltd., A		Trading Companies & Distributors		3,300		1,393
	China Shipping Development Co. Ltd., A		Oil, Gas & Consumable Fuels		1,500		1,518
	China South Publishing & Media Group Co. Ltd., A		Media		600		959
a	China Southern Airlines Co. Ltd., A		Airlines		4,200		4,398
a	China Southern Airlines Co. Ltd., H		Airlines		6,000		4,445
	China State Construction Engineering Corp. Ltd., A		Construction & Engineering		13,500		10,679
	China State Construction International Holdings Ltd.		Construction & Engineering		6,000		4,113
	China Taiping Insurance Holdings Co. Ltd.		Insurance		7,200		14,670
	China Tourism Group Duty Free Corp. Ltd., A		Specialty Retail		600		27,990
b,c	China Tower Corp. Ltd., H, 144A, Reg S		Diversified Telecommunication Services		222,000		32,838
	China Traditional Chinese Medicine Co. Ltd.		Pharmaceuticals		12,000		7,486
	China TransInfo Technology Co. Ltd.		IT Services		900		2,163
a	China Travel International Investment Hong Kong Ltd.		Hotels, Restaurants & Leisure		12,000		2,037
	China Vanke Co. Ltd., A		Real Estate Management & Development		3,300		15,089
	China Vanke Co. Ltd., H		Real Estate Management & Development		9,000		35,250
	China Yangtze Power Co. Ltd., A		Independent Power and Renewable Electricity Producers		4,800		15,685
	China Zheshang Bank Co. Ltd., A		Banks		3,300		2,047
	Chinese Universe Publishing and Media Group Co. Ltd., A		Media		300		483
	Chongqing Brewery Co. Ltd., A		Beverages		300		5,089
a	Chongqing Changan Automobile Co. Ltd.		Automobiles		1,500		3,244
a	Chongqing Changan Automobile Co. Ltd., B		Automobiles		3,900		2,930



146	Annual Report	franklintempleton.com

FRANKLIN TEMPLETON ETF TRUST

STATEMENT OF INVESTMENTS

Franklin FTSE Asia ex Japan ETF (continued)



		Industry		Shares			Value
	Common Stocks and Other Equity Interests (continued)
	China (continued)
	Chongqing Fuling Zhacai Group Co. Ltd., A		Food Products		300		$	1,921
	Chongqing Rural Commercial Bank Co. Ltd., A		Banks		2,700			1,745
	Chongqing Rural Commercial Bank Co. Ltd., H		Banks		12,000			5,171
	Chongqing Water Group Co. Ltd., A		Water Utilities		300			295
	Chongqing Zhifei Biological Products Co. Ltd.		Biotechnology		400			10,516
	Chow Tai Fook Jewellery Co. Ltd.		Specialty Retail		8,400			12,836
	CIFI Holdings Group Co. Ltd.		Real Estate Management & Development		18,000			17,457
	Cinda Real Estate Co. Ltd., A		Real Estate Management & Development		600			351
a	CITIC Guoan Information Industry Co. Ltd.		Media		600			189
	Citic Pacific Ltd.		Industrial Conglomerates		24,000			22,721
	Citic Pacific Special Steel Group Co. Ltd., A		Metals & Mining		1,580			6,357
	CITIC Securities Co. Ltd., A		Capital Markets		3,300			12,016
	CITIC Securities Co. Ltd., H		Capital Markets		10,500			24,175
a	CMST Development Co. Ltd., A		Air Freight & Logistics		300			235
	CNOOC Energy Technology & Services Ltd.		Energy Equipment & Services		2,100			851
	Contemporary Amperex Technology Co. Ltd.		Electrical Equipment		300			14,731
	COSCO SHIPPING Development Co. Ltd., H		Trading Companies & Distributors		18,000			2,940
	COSCO SHIPPING Energy Transportation Co. Ltd., H		Oil, Gas & Consumable Fuels		6,000			2,632
a	COSCO Shipping Holdings Co. Ltd.		Marine		12,000			15,435
	COSCO SHIPPING Ports Ltd.		Transportation Infrastructure		6,000			4,368
	Country Garden Holdings Co. Ltd.		Real Estate Management & Development		33,000			42,362
	Country Garden Services Holdings Co. Ltd.		Commercial Services & Supplies		6,000			60,815
	CSC Financial Co. Ltd., A		Capital Markets		300			1,454
	CSC Financial Co. Ltd., H		Capital Markets		4,500			5,904
	CSG Holding Co. Ltd.		Construction Materials		600			575
	CSG Holding Co. Ltd.		Construction Materials		4,601			1,770
	CSPC Pharmaceutical Group Ltd.		Pharmaceuticals		37,600			45,462
a	CSSC Offshore and Marine Engineering Group Co. Ltd.		Machinery		2,000	��		2,086
a	CSSC Offshore and Marine Engineering Group Co. Ltd., A		Machinery		300			1,118
	Da An Gene Co. Ltd. of Sun Yat-Sen University		Biotechnology		320			1,484
a	Dada Nexus Ltd., ADR		Internet & Direct Marketing Retail		90			2,443
	Dali Foods Group Co. Ltd.		Food Products		10,500			5,970
	Daqin Railway Co. Ltd., A		Road & Rail		5,100			5,449
	Datang International Power Generation Co. Ltd., A		Independent Power and Renewable Electricity Producers		2,400			1,035
	Datang International Power Generation Co. Ltd., H		Independent Power and Renewable Electricity Producers		18,000			2,871
	DHC Software Co. Ltd.		IT Services		900			1,021
	Dian Diagnostics Group Co. Ltd.		Health Care Providers & Services		300			1,596
	Digital China Information Service Co. Ltd.		IT Services		300			672
	Do-Fluoride Chemicals Co. Ltd., A		Chemicals		300			914
	Dong-E-E-Jiao Co. Ltd., A		Pharmaceuticals		300			1,727
	Dongfang Electric Corp. Ltd., A		Electrical Equipment		1,200			2,325
	Dongfang Electric Corp. Ltd., H		Electrical Equipment		1,200			1,107
	Dongfeng Motor Group Co. Ltd., H		Automobiles		12,000			11,144



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STATEMENT OF INVESTMENTS

Franklin FTSE Asia ex Japan ETF (continued)



		Industry		Shares		Value
	Common Stocks and Other Equity Interests (continued)
	China (continued)
	Dongguan Development Holdings Co. Ltd., A		Transportation Infrastructure		600	$	883
	Dongxing Securities Co. Ltd., A		Capital Markets		600		1,001
a	Doushen Beijing Education & Technology Inc.		IT Services		300		310
	East Money Information Co. Ltd.		Capital Markets		2,700		11,218
a	Ecovacs Robotics Co. Ltd., A		Household Durables		300		6,241
	ENN Ecological Holdings Co. Ltd., A		Chemicals		900		2,409
	ENN Energy Holdings Ltd.		Gas Utilities		3,600		57,743
	Eternal Asia Supply Chain Management Ltd.		Commercial Services & Supplies		300		202
	Eve Energy Co. Ltd.		Electrical Equipment		480		5,498
	Everbright Securities Co. Ltd., A		Capital Markets		1,800		4,458
	Everbright Securities Co. Ltd., H		Capital Markets		600		531
a	Fangda Carbon New Material Co. Ltd.		Electrical Equipment		760		945
	Far East Horizon Ltd.		Diversified Financial Services		9,000		10,812
a	Faw Jiefang Group Co. Ltd.		Automobiles		900		1,498
	Fiberhome Telecommunication Technologies Co. Ltd., A		Communications Equipment		600		1,683
a	FIH Mobile Ltd.		Electronic Equipment, Instruments & Components		15,000		2,122
	Financial Street Holdings Co. Ltd.		Real Estate Management & Development		900		937
	First Capital Securities Co. Ltd.		Capital Markets		1,200		1,408
	Flat Glass Group Co Ltd., H		Semiconductors & Semiconductor Equipment		3,000		9,087
	Focus Media Information Technology Co. Ltd.		Media		5,700		8,062
	Foshan Haitian Flavouring & Food Co. Ltd.		Food Products		340		8,281
	Fosun International Ltd.		Industrial Conglomerates		10,500		14,694
a	Founder Securities Co. Ltd., A		Capital Markets		3,600		4,774
	Foxconn Industrial Internet Co. Ltd., A		Electronic Equipment, Instruments & Components		900		1,971
	Fujian Funeng Co. Ltd., A		Independent Power and Renewable Electricity Producers		300		442
	Fujian Longking Co. Ltd., A		Machinery		300		441
	Fujian Sunner Development Co. Ltd.		Food Products		300		1,177
	Fuyao Glass Industry Group Co. Ltd., A		Auto Components		600		4,214
	Fuyao Group Glass Industries Co. Ltd., H		Auto Components		2,400		14,278
	Ganfeng Lithium Co. Ltd.		Metals & Mining		300		4,310
	Ganfeng Lithium Co. Ltd., H		Metals & Mining		600		7,324
a	GCL System Integration Technology Co. Ltd.		Semiconductors & Semiconductor Equipment		1,200		604
a	GDS Holdings Ltd., ADR		IT Services		519		42,086
	Geely Automobile Holdings Ltd.		Automobiles		25,000		63,606
	GEM Co. Ltd.		Metals & Mining		1,200		1,566
	Gemdale Corp., A		Real Estate Management & Development		1,500		2,746
a	Genscript Biotech Corp.		Life Sciences Tools & Services		3,000		5,279
	GF Securities Co. Ltd.		Capital Markets		2,400		5,732
	GF Securities Co. Ltd., H		Capital Markets		7,800		11,959
	Gigadevice Semiconductor Beijing Inc., A		Semiconductors & Semiconductor Equipment		100		2,604
	Glarun Technology Co. Ltd., A		Communications Equipment		600		1,287
a	Global Top E-Commerce Co. Ltd.		Internet & Direct Marketing Retail		300		214
	Glodon Co. Ltd.		Software		200		2,024
	GoerTek Inc.		Electronic Equipment, Instruments & Components		1,200		4,966
a	GOME Retail Holdings Ltd.		Specialty Retail		63,000		11,669
	Grandjoy Holdings Group Co. Ltd., A		Real Estate Management & Development		600		353
	Great Wall Motor Co. Ltd., A		Automobiles		900		4,133
	Great Wall Motor Co. Ltd., H		Automobiles		15,000		41,579
	Greattown Holdings Ltd., A		Real Estate Management & Development		300		173
	Gree Electric Appliances Inc. of Zhuhai		Household Durables		600		5,734



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STATEMENT OF INVESTMENTS

Franklin FTSE Asia ex Japan ETF (continued)



		Industry		Shares		Value
	Common Stocks and Other Equity Interests (continued)
	China (continued)
	Greendland Holdings Corp. Ltd., A		Real Estate Management & Development		3,300	$	2,812
	Greentown China Holdings Ltd.		Real Estate Management & Development		3,000		3,874
	GRG Banking Equipment Co. Ltd.		Technology Hardware, Storage & Peripherals		600		1,042
a	GSX Techedu Inc., ADR		Diversified Consumer Services		210		7,115
	Guangdong Baolihua New Energy Stock Co. Ltd.		Independent Power and Renewable Electricity Producers		900		953
	Guangdong Electric Power Development Co. Ltd., B		Independent Power and Renewable Electricity Producers		6,000		2,053
	Guangdong Ellington Electronics Technology Co. Ltd., A		Electronic Equipment, Instruments & Components		300		315
	Guangdong Golden Dragon Development Inc.		Capital Markets		300		690
	Guangdong Haid Group Co. Ltd.		Food Products		600		7,133
a	Guangdong HEC Technology Holding Co. Ltd., A		Metals & Mining		600		454
	Guangdong Investment Ltd.		Water Utilities		12,000		19,541
	Guangdong Kinlong Hardware Products Co. Ltd.		Building Products		100		2,527
	Guangdong LY Intelligent Manufacturing Co. Ltd.		Electronic Equipment, Instruments & Components		2,400		2,992
	Guangdong Xinbao Electrical Appliances Holdings Co. Ltd.		Household Durables		300		1,600
a	Guanghui Energy Co. Ltd., A		Oil, Gas & Consumable Fuels		1,800		850
	Guangshen Railway Co. Ltd., A		Road & Rail		2,700		930
	Guangshen Railway Co. Ltd., H		Road & Rail		12,000		2,377
	Guangxi Guiguan Electric Power Co. Ltd., A		Independent Power and Renewable Electricity Producers		900		765
	Guangxi Liugong Machinery Co. Ltd.		Machinery		1,200		1,807
	Guangxi Wuzhou Zhongheng Group Co. Ltd., A		Pharmaceuticals		1,500		636
	Guangzhou Automobile Group Co. Ltd., A		Automobiles		900		1,401
	Guangzhou Automobile Group Co. Ltd., H		Automobiles		14,000		11,759
	Guangzhou Baiyun International Airport Co. Ltd., A		Transportation Infrastructure		900		1,830
	Guangzhou Baiyunshan Pharmaceutical Holdings Co. Ltd., A		Pharmaceuticals		600		2,547
	Guangzhou Baiyunshan Pharmceutical Holdings Co. Ltd.		Pharmaceuticals		900		2,183
	Guangzhou Haige Communications Group Inc. Co.		Communications Equipment		600		925
	Guangzhou Kingmed Diagnostics Group Co. Ltd.		Health Care Providers & Services		100		1,936
	Guangzhou R&F Properties Co. Ltd., H		Real Estate Management & Development		7,200		9,502
	Guangzhou TInc.i Materials Technology Co. Ltd.		Chemicals		300		3,731
	Guangzhou Zhujiang Brewery Co. Ltd.		Beverages		300		473
	Guizhou Panjiang Refined Coal Co. Ltd., A		Oil, Gas & Consumable Fuels		1,200		1,246
a	Guizhou Xinbang Pharmaceutical Co. Ltd.		Pharmaceuticals		300		402
a	Guolian Securities Co. Ltd., A		Capital Markets		600		1,393
	Guosen Securities Co. Ltd.		Capital Markets		2,100		3,828
a	Guosheng Financial Holding Inc.		Electrical Equipment		300		467
	Guotai Junan Securities Co. Ltd.		Capital Markets		3,000		4,330
	Guotai Junan Securities Co. Ltd., A		Capital Markets		2,400		5,940
a	Guoxuan High-Tech Co. Ltd.		Electrical Equipment		300		1,647
	Guoyuan Securities Co. Ltd.		Capital Markets		720		846
b,c	Haidilao International Holding Ltd., 144A, Reg S		Hotels, Restaurants & Leisure		4,200		28,713



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Franklin FTSE Asia ex Japan ETF (continued)



		Industry		Shares		Value
	Common Stocks and Other Equity Interests (continued)
	China (continued)
	Haier Smart Home Co. Ltd., A		Household Durables		2,100	$	9,980
a	Haier Smart Home Co. Ltd., H		Household Durables		8,400		33,602
	Haisco Pharmaceutical Group Co. Ltd.		Pharmaceuticals		300		1,126
	Haitian International Holdings Ltd.		Machinery		3,000		11,962
	Haitong Securities Co. Ltd., A		Capital Markets		2,700		4,555
	Haitong Securities Co. Ltd., H		Capital Markets		16,800		15,537
	Han’s Laser Technology Industry Group Co. Ltd., A		Machinery		300		1,937
a	Hang Zhou Great Star Industrial Co. Ltd.		Household Durables		300		1,605
	Hangzhou Binjiang Real Estate Group Co. Ltd.		Real Estate Management & Development		600		409
	Hangzhou Century Co. Ltd.		Electronic Equipment, Instruments & Components		300		365
	Hangzhou First Applied Material Co. Ltd., A		Semiconductors & Semiconductor Equipment		300		3,928
	Hangzhou Oxygen Plant Group Co. Ltd.		Machinery		300		1,366
	Hangzhou Robam Appliances Co. Ltd., A		Household Durables		300		1,670
	Hangzhou Shunwang Technology Co. Ltd.		Entertainment		300		584
	Hangzhou Tigermed Consulting Co. Ltd.		Life Sciences Tools & Services		300		6,864
a,b,c	Hangzhou Tigermed Consulting Co. Ltd., H, 144A, Reg S		Life Sciences Tools & Services		600		11,862
a	Hansoh Pharmaceutical Group Co. Ltd.		Pharmaceuticals		5,000		23,957
	Health & Happiness H&H International Holdings Ltd.		Food Products		500		1,897
	Hefei Meiya Optoelectronic Technology Inc.		Machinery		300		1,934
	Heilongjiang Agriculture Co. Ltd., A		Food Products		600		1,431
	Henan Shuanghui Investment & Development Co. Ltd.		Food Products		1,200		7,499
	Hengan International Group Co. Ltd.		Personal Products		3,000		19,718
	Hengdian Group DMEGC Magnetics Co. Ltd.		Electronic Equipment, Instruments & Components		600		1,385
	Hengli Petrochemical Co. Ltd., A		Chemicals		1,060		4,738
a	HengTen Networks Group Ltd.		Internet & Direct Marketing Retail		8,800		11,047
	Hengtong Optic-electric Co. Ltd., A		Communications Equipment		900		1,682
	Hengyi Petrochemical Co. Ltd., A		Chemicals		900		2,010
a	Hesteel Co. Ltd.		Metals & Mining		2,100		755
	Hithink RoyalFlush Information Network Co. Ltd.		Capital Markets		200		3,640
	Holitech Technology Co. Ltd.		Electronic Equipment, Instruments & Components		600		304
	Hongfa Technology Co. Ltd., A		Electrical Equipment		300		2,258
	Hongta Securities Co. Ltd., A		Capital Markets		600		1,291
	Hopson Development Holdings Ltd.		Real Estate Management & Development		3,000		10,805
a,b	Hua Hong Semiconductor Ltd., Reg S		Semiconductors & Semiconductor Equipment		2,000		10,895
	Huaan Securities Co. Ltd., A		Capital Markets		600		584
	Huadian Power International Corp. Ltd., A		Independent Power and Renewable Electricity Producers		900		508
	Huadian Power International Corp. Ltd., H		Independent Power and Renewable Electricity Producers		12,000		3,704
	Huadong Medicine Co. Ltd., A		Health Care Providers & Services		600		3,373
	Huafa Industrial Co. Ltd. Zhuhai, A		Real Estate Management & Development		600		562
	Huafon Chemical Co. Ltd.		Chemicals		1,200		2,140
	Huagong Tech Co. Ltd.		Electronic Equipment, Instruments & Components		300		950
	Huaibei Mining Holdings Co. Ltd., A		Metals & Mining		900		1,550
	Hualan Biological Engineering Inc.		Biotechnology		720		4,362
	Huaneng Power International Inc., A		Independent Power and Renewable Electricity Producers		1,200		807
	Huaneng Power International Inc., H		Independent Power and Renewable Electricity Producers		20,000		7,100
	Huapont Life Sciences Co. Ltd.		Chemicals		900		739
	Huatai Securities Co. Ltd., A		Capital Markets		2,100		5,428
	Huatai Securities Co. Ltd., H		Capital Markets		7,800		11,959



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STATEMENT OF INVESTMENTS

Franklin FTSE Asia ex Japan ETF (continued)



		Industry		Shares		Value
	Common Stocks and Other Equity Interests (continued)
	China (continued)
	Huaxi Securities Co. Ltd.		Capital Markets		600	$	910
	Huaxia Bank Co. Ltd., A		Banks		5,100		5,006
	Huaxin Cement Co. Ltd., A		Construction Materials		300		1,085
	Huaxin Cement Co. Ltd., B		Construction Materials		1,500		3,239
	Huayu Automotive Systems Co. Ltd.		Auto Components		1,200		5,042
	Hubei Biocause Pharmaceutical Co. Ltd.		Insurance		2,100		1,322
	Hubei Energy Group Co. Ltd.		Independent Power and Renewable Electricity Producers		1,200		1,178
	Hubei Xinyangfeng Fertilizer Co. Ltd.		Chemicals		600		1,627
	Huizhou Desay Sv Automotive Co. Ltd.		Household Durables		100		1,307
	Humanwell Healthcare Group Co. Ltd., A		Pharmaceuticals		600		2,815
	Hunan Gold Corp. Ltd.		Metals & Mining		300		365
	Hunan Valin Steel Co. Ltd.		Metals & Mining		2,100		2,240
	Hundsun Technologies Inc., A		Software		300		3,841
	Huolinhe Opencut Coal Industry Corp. Ltd. of Inner Mongolia		Oil, Gas & Consumable Fuels		300		458
a	Hytera Communications Corp. Ltd., A		Communications Equipment		300		249
a	HyUnion Holding Co. Ltd.		Auto Components		300		283
	Iflytek Co. Ltd.		Software		600		4,420
	IInner Mongolia MengDian HuaNeng Thermal Power Co. Ltd., A		Independent Power and Renewable Electricity Producers		1,800		746
	Industrial and Commercial Bank of China Ltd.		Banks		25,200		21,278
	Industrial and Commercial Bank of China Ltd., H		Banks		363,000		260,538
	Industrial Bank Co. Ltd., A		Banks		6,900		25,334
	Industrial Securities Co. Ltd., A		Capital Markets		1,800		2,318
	Inmyshow Digital Technology Group Co. Ltd.		Media		600		913
a	Inner Mongolia BaoTou Steel Union Co. Ltd., A		Metals & Mining		13,200		3,138
	Inner Mongolia First Machinery Group Co. Ltd., A		Machinery		300		451
	Inner Mongolia Junzheng Energy & Chemical Industry Group Co. Ltd., A		Chemicals		2,400		1,931
	Inner Mongolia Yili Industrial Group Co. Ltd., A		Food Products		1,800		10,982
	Inner Mongolia Yitai Coal Co. Ltd., B		Oil, Gas & Consumable Fuels		5,400		2,959
a	Innovent Biologics Inc.		Biotechnology		6,000		60,853
	Inspur Electronic Information Industry Co. Ltd.		Technology Hardware, Storage & Peripherals		624		2,604
	Intco Medical Technology Co. Ltd.		Health Care Equipment & Supplies		100		2,463
a	Iqiyi Inc., ADR		Entertainment		1,212		20,143
a	JA Solar Technology Co. Ltd., A		Semiconductors & Semiconductor Equipment		600		2,641
	Jafron Biomedical Co. Ltd., A		Health Care Equipment & Supplies		300		3,475
	Jason Furniture Hangzhou Co. Ltd., A		Household Durables		300		3,683
a	JD Health International Inc.,		Internet & Direct Marketing Retail		900		12,908
a	JD.com Inc., ADR		Internet & Direct Marketing Retail		4,077		343,813
	Jiajiayue Group Co. Ltd., A		Food & Staples Retailing		300		947
a	Jiangsu Changjiang Electronics Technology Co. Ltd., A		Semiconductors & Semiconductor Equipment		600		3,127
	Jiangsu Eastern Shenghong Co. Ltd.		Chemicals		1,200		2,582
	Jiangsu Expressway Co. Ltd., A		Transportation Infrastructure		300		455
	Jiangsu Expressway Co. Ltd., H		Transportation Infrastructure		6,000		7,471
	Jiangsu Hengli Hydraulic Co. Ltd., A		Machinery		396		5,399
	Jiangsu Hengrui Medicine Co. Ltd., A		Pharmaceuticals		1,860		26,106
	Jiangsu King’s Luck Brewery JSC Ltd		Beverages		300		2,243



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STATEMENT OF INVESTMENTS

Franklin FTSE Asia ex Japan ETF (continued)



		Industry		Shares		Value
	Common Stocks and Other Equity Interests (continued)
	China (continued)
	Jiangsu Linyang Energy Co. Ltd., A		Electrical Equipment		900	$	973
	Jiangsu Yanghe Brewery JST Co. Ltd., A		Beverages		600		15,061
	Jiangsu Yuyue Medical Equipment & Supply Co. Ltd.		Health Care Equipment & Supplies		300		1,200
	Jiangsu Zhangjiagang Rural Commercial Bank Co. Ltd.		Banks		300		255
	Jiangsu Zhongnan Construction Group Co. Ltd.		Real Estate Management & Development		1,500		1,596
	Jiangsu Zhongtian Technology Co. Ltd., A		Electrical Equipment		600		1,047
	Jiangxi Copper Co. Ltd., A		Metals & Mining		600		2,023
	Jiangxi Copper Co. Ltd., H		Metals & Mining		6,000		11,468
	Jiangxi Zhengbang Technology Co. Ltd., A		Food Products		1,200		2,767
	Jiayuan International Group Ltd.		Real Estate Management & Development		6,000		2,470
	Jilin Aodong Pharmaceutical Group Co. Ltd.		Pharmaceuticals		600		1,456
	Jinduicheng Molybdenum Co. Ltd., A		Metals & Mining		900		823
	Jinke Properties Group Co. Ltd.		Real Estate Management & Development		2,100		2,109
b,c	Jinxin Fertility Group Ltd., 144A, Reg S		Health Care Providers & Services		6,000		12,904
	Jinyu Bio-Technology Co. Ltd., A		Biotechnology		300		874
	Jizhong Energy Resources Co. Ltd.		Oil, Gas & Consumable Fuels		1,500		860
	JoInc.are Pharmaceutical Group Industry Co. Ltd., A		Pharmaceuticals		600		1,172
	Jointo Energy Investment Co. Ltd.		Independent Power and Renewable Electricity Producers		300		298
a	Jointown Pharmaceutical Group Co. Ltd., A		Health Care Providers & Services		300		825
	Jonjee Hi-Tech Industrial And Commercial Holding Co. Ltd., A		Food Products		300		2,214
	Joyoung Co. Ltd.		Household Durables		300		1,408
	JOYY Inc., ADR		Interactive Media & Services		249		23,339
a	KE Holdings Inc., ADR		Real Estate Management & Development		510		29,060
	Kingboard Holdings Ltd.		Electronic Equipment, Instruments & Components		3,000		16,207
	Kingdee International Software Group Co. Ltd.		Software		12,000		37,199
	Kingfa Sci & Tech Co. Ltd.		Chemicals		900		2,978
a	Kingsoft Cloud Holdings Ltd., ADR		IT Services		168		6,606
	Kingsoft Corp. Ltd.		Software		4,000		26,549
a,c	Kuaishou Technology, 144A, B		Interactive Media & Services		1,200		41,675
a	Kuang-Chi Technologies Co. Ltd.		Auto Components		600		1,849
	Kunlun Energy Co. Ltd.		Gas Utilities		12,000		12,611
	Kweichow Moutai Co. Ltd., A		Beverages		400		122,478
	KWG Group Holdings Ltd.		Real Estate Management & Development		6,000		10,264
b	KWG Living Group Holdings Ltd., Reg S		Real Estate Management & Development		3,000		3,048
	Lakala Payment Co. Ltd., A		IT Services		300		1,378
	Lao Feng Xiang Co. Ltd., B		Textiles, Apparel & Luxury Goods		900		2,682
	Laobaixing Pharmacy Chain JSC		Food & Staples Retailing		300		3,132
	Lee & Man Paper Manufacturing Ltd.		Paper & Forest Products		6,000		5,518
d	Legend Holdings Corp., H		Technology Hardware, Storage & Peripherals		2,700		4,279
	Lenovo Group Ltd.		Technology Hardware, Storage & Peripherals		36,000		51,214
	Lens Technology Co. Ltd.		Electronic Equipment, Instruments & Components		1,800		7,169
	Leo Group Co. Ltd.		Media		1,800		807
	Lepu Medical Technology Beijing Co. Ltd.		Health Care Equipment & Supplies		600		2,680
	Leyard Optoelectronic Co. Ltd.		Electronic Equipment, Instruments & Components		1,200		1,320
a	Li Auto Inc., ADR		Automobiles		1,998		49,950
	Li Ning Co. Ltd.		Textiles, Apparel & Luxury Goods		10,000		64,956
	Lianhe Chemical Technology Co. Ltd.		Chemicals		300		1,133
	Liaoning Cheng Da Co. Ltd., A		Distributors		600		1,865
	Liaoning Port Co. Ltd., A		Transportation Infrastructure		5,700		1,538
	Liuzhou Iron & Steel Co. Ltd., A		Metals & Mining		300		295



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STATEMENT OF INVESTMENTS

Franklin FTSE Asia ex Japan ETF (continued)



		Industry		Shares		Value
	Common Stocks and Other Equity Interests (continued)
	China (continued)
	Livzon Pharmaceutical Group Inc.		Pharmaceuticals		300	$	1,909
	Livzon Pharmaceutical Group Inc., H		Pharmaceuticals		900		3,838
	Logan Group Co. Ltd.		Real Estate Management & Development		6,000		10,110
	Lomon Billions Group Co. Ltd.		Chemicals		600		2,614
b,c	Longfor Group Holdings Ltd., 144A, Reg S		Real Estate Management & Development		8,250		54,650
	LONGi Green Energy Technology Co. Ltd., A		Semiconductors & Semiconductor Equipment		1,200		16,095
	Luenmei Quantum Co. Ltd., A		Water Utilities		600		959
a	Lufax Holding Ltd., ADR		Consumer Finance		810		11,761
	Luxi Chemical Group Co. Ltd., A		Chemicals		600		1,420
	Luxshare Precision Industry Co. Ltd., A		Electronic Equipment, Instruments & Components		2,295		11,833
	Luye Pharma Group Ltd.		Pharmaceuticals		9,000		5,753
	Luzhou Laojiao Co. Ltd., A		Beverages		500		17,148
	Maanshan Iron & Steel Co. Ltd., A		Metals & Mining		1,200		585
	Maanshan Iron & Steel Co. Ltd., H		Metals & Mining		6,000		2,045
	Mango Excellent Media Co. Ltd.		Entertainment		440		3,898
	Maxscend Microelectronics Co. Ltd.		Electronic Equipment, Instruments & Components		100		9,282
a	Meinian Onehealth Healthcare Holdings Co. Ltd.		Health Care Providers & Services		1,320		3,102
a,b	Meituan Dianping, B, Reg S		Internet & Direct Marketing Retail		16,800		644,388
	Metallurgical Corp. of China Ltd.		Construction & Engineering		15,000		3,897
	Metallurgical Corp. of China Ltd., A		Construction & Engineering		4,200		2,189
	Microport Scientific Corp.		Health Care Equipment & Supplies		2,000		11,255
a	Ming Yuan Cloud Group Holdings Ltd.		Software		2,000		9,120
	Minth Group Ltd.		Auto Components		3,000		12,503
a	MMG Ltd.		Metals & Mining		12,000		6,699
	Momo Inc., ADR		Interactive Media & Services		738		10,878
	Montage Technology Co. Ltd.		Semiconductors & Semiconductor Equipment		200		1,866
a	Montnets Rongxin Technology Group Co. Ltd.		Software		300		691
	Muyuan Foods Co. Ltd.		Food Products		1,040		15,856
	NanJi E-Commerce Co. Ltd.		Media		600		839
	Nanjing Iron & Steel Co. Ltd., A		Metals & Mining		900		531
	Nanjing King-Friend Biochemical Pharmaceutical Co. Ltd.		Pharmaceuticals		300		1,829
	Nanjing Securities Co. Ltd., A		Capital Markets		900		1,391
	Nanyang Topsec Technologies Group Inc., A		Electrical Equipment		600		1,822
	Nari Technology Development Co. Ltd., A		Electrical Equipment		1,500		7,119
	NAURA Technology Group Co. Ltd., A		Semiconductors & Semiconductor Equipment		100		2,188
	NavInfo Co. Ltd.		Household Durables		300		666
	NetEase Inc., ADR		Entertainment		1,764		182,151
	New China Life Insurance Co. Ltd., A		Insurance		600		4,440
	New China Life Insurance Co. Ltd., H		Insurance		4,200		16,261
	New Hope Liuhe Co. Ltd.		Food Products		1,500		4,572
a	New Oriental Education & Technology Group Inc., ADR		Diversified Consumer Services		6,846		95,844
	Newland Digital Technology Co. Ltd.		Software		300		647
	Nexteer Automotive Group Ltd.		Auto Components		3,000		3,677
	Nine Dragons Paper Holdings Ltd.		Paper & Forest Products		6,000		8,783
	Ninestar Corp.		Technology Hardware, Storage & Peripherals		300		1,137
	Ningbo Joyson Electronic Corp.		Auto Components		900		2,470
	Ningbo Sanxing Medical Electric Co. Ltd., A		Electrical Equipment		300		305
	Ningbo Tuopu Group Co. Ltd., A		Auto Components		300		1,529
	Ningbo Zhoushan Port Co. Ltd., A		Transportation Infrastructure		3,300		2,097
	Ningxia Baofeng Energy Group Co. Ltd.		Chemicals		900		2,148
a	NIO Inc., ADR		Automobiles		5,811		226,513
	North Huajin Chemical Industries Co. Ltd.		Chemicals		1,200		1,053
	Northeast Securities Co. Ltd.		Capital Markets		600		788
	NSFOCUS Information Technology Co. Ltd.		Software		300		783



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STATEMENT OF INVESTMENTS

Franklin FTSE Asia ex Japan ETF (continued)



		Industry		Shares		Value
	Common Stocks and Other Equity Interests (continued)
	China (continued)
	Oceanwide Holdings Co. Ltd.		Diversified Financial Services		600	$	251
	Offcn Education Technology Co. Ltd., A		Diversified Consumer Services		600		2,576
	Offshore Oil Engineering Co. Ltd., A		Energy Equipment & Services		1,500		1,036
	OFILM Group Co. Ltd.		Electronic Equipment, Instruments & Components		600		793
a	OneConnect Financial Technology Co. Ltd., ADR		Software		240		3,547
	Oppein Home Group Inc., A		Household Durables		100		2,402
	ORG Technology Co. Ltd.		Containers & Packaging		600		492
	Orient Securities Co. Ltd. of China, H		Capital Markets		4,800		3,099
	Oriental Pearl Group Co. Ltd., A		Media		1,200		1,758
a	Ourpalm Co. Ltd.		Entertainment		1,200		925
	Ovctek China Inc., A		Health Care Equipment & Supplies		300		4,122
a	Pangang Group Vanadium Titanium & Resources Co. Ltd., A		Metals & Mining		2,100		704
	People.cn Co. Ltd.		Media		600		1,513
	Perfect World Co. Ltd.		Entertainment		600		1,809
	PetroChina Co. Ltd., H		Oil, Gas & Consumable Fuels		96,000		34,698
b,c	Pharmaron Beijing Co. Ltd., H, 144A, Reg S		Life Sciences Tools & Services		600		11,337
	PICC Property and Casualty Co. Ltd., H		Insurance		30,000		26,008
a	Pinduoduo Inc., ADR		Internet & Direct Marketing Retail		1,344		179,935
	Ping An Bank Co. Ltd., A		Banks		6,300		21,134
a,b	Ping An Healthcare and Technology Co. Ltd., Reg S		Health Care Technology		1,800		22,574
	Ping An Insurance Group Co. of China Ltd., A		Insurance		3,600		43,181
	Ping An Insurance Group Co. of China Ltd., H		Insurance		27,500		327,370
	Pingdingshan Tianan Coal Mining Co. Ltd., A		Oil, Gas & Consumable Fuels		900		738
	Poly Developments and Holdings Group Co. Ltd., A		Real Estate Management & Development		3,900		8,458
	Poly Property Services Co. Ltd., H		Real Estate Management & Development		600		4,168
	Postal Savings Bank of China Co. Ltd., H		Banks		45,000		33,629
	Power Construction Corp. of China Ltd.		Construction & Engineering		3,900		2,449
	Proya Cosmetics Co. Ltd.		Personal Products		100		2,429
	Qingdao Port International Co. Ltd., A		Transportation Infrastructure		300		319
	Qingdao TGOOD Electric Co. Ltd.		Electrical Equipment		300		1,160
	Qinhuangdao Port Co. Ltd., A		Transportation Infrastructure		600		255
	Rainbow Department Store Co. Ltd.		Multiline Retail		300		392
a	Realcan Pharmaceutical Group Co. Ltd.		Health Care Providers & Services		300		206
	Red Star Macalline Group Corp. Ltd.		Real Estate Management & Development		3,000		1,775
	Red Star Macalline Group Corp. Ltd., A		Real Estate Management & Development		320		444
	RiseSun Real Estate Development Co. Ltd.		Real Estate Management & Development		900		885
	Rongsheng Petro Chemical Co. Ltd.		Chemicals		700		2,938
	SAIC Motor Corp Ltd		Automobiles		3,300		9,893
	Sanan Optoelectronics Co. Ltd., A		Semiconductors & Semiconductor Equipment		1,500		5,322
	Sangfor Technologies Inc.		Software		100		3,765
	Sansteel Minguang Co. Ltd.		Metals & Mining		600		679
	Sany Heavy Industry Co. Ltd., A		Machinery		2,700		14,053
	SDIC Capital Co. Ltd., A		Capital Markets		600		1,117
	SDIC Power Holdings Co. Ltd., A		Independent Power and Renewable Electricity Producers		2,400		3,632
	Sealand Securities Co. Ltd.		Capital Markets		1,080		736
	Seazen Group Ltd.		Real Estate Management & Development		10,000		12,284
	Seazen Holdings Co. Ltd., A		Real Estate Management & Development		600		4,463
	SF Holding Co. Ltd.		Air Freight & Logistics		900		11,114
	Shaanxi Coal Industry Co. Ltd.		Oil, Gas & Consumable Fuels		2,700		4,551



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STATEMENT OF INVESTMENTS

Franklin FTSE Asia ex Japan ETF (continued)



		Industry		Shares		Value
	Common Stocks and Other Equity Interests (continued)
	China (continued)
	Shaanxi International Trust Co. Ltd.		Capital Markets		600	$	305
	Shandong Chenming Paper Holdings Ltd., A		Paper & Forest Products		600		925
	Shandong Chenming Paper Holdings Ltd., B		Paper & Forest Products		4,200		3,220
	Shandong Chenming Paper Holdings Ltd., H		Paper & Forest Products		1,500		1,387
	Shandong Denghai Seeds Co. Ltd.		Food Products		300		757
b,c	Shandong Gold Mining Co. Ltd., 144A, Reg S		Metals & Mining		3,000		5,626
	Shandong Gold Mining Co. Ltd., A		Metals & Mining		1,320		4,287
	Shandong Hi-speed Co. Ltd., A		Transportation Infrastructure		900		864
	Shandong Himile Mechanical Science & Technology Co. Ltd.		Machinery		300		1,347
	Shandong Hualu Hengsheng Chemical Co. Ltd., A		Chemicals		600		3,434
	Shandong Humon Smelting Co. Ltd.		Metals & Mining		300		536
	Shandong Linglong Tyre Co. Ltd., A		Auto Components		300		2,140
	Shandong Nanshan Aluminum Co. Ltd., A		Metals & Mining		4,200		2,208
	Shandong Pharmaceutical Glass Co. Ltd., A		Health Care Equipment & Supplies		300		1,815
	Shandong Publishing & Media Co. Ltd., A		Media		600		544
	Shandong Sinocera Functional Material Co. Ltd., A		Chemicals		300		1,941
	Shandong Sun Paper Industry JSC Ltd.		Paper & Forest Products		600		1,438
	Shandong Weigao Group Medical Polymer Co. Ltd., H		Health Care Equipment & Supplies		12,000		23,678
a	Shandong XInc.hao Energy Corp. Ltd., A		Oil, Gas & Consumable Fuels		600		136
	Shanghai 2345 Network Holding Group Co. Ltd.		Software		900		263
	Shanghai AJ Group Co. Ltd., A		Diversified Financial Services		300		326
	Shanghai Bailian Group Co. Ltd.		Food & Staples Retailing		600		1,626
	Shanghai Bailian Group Co. Ltd., B		Food & Staples Retailing		1,200		1,163
	Shanghai Bairun Investment Holding Group Co. Ltd.		Beverages		200		3,323
	Shanghai Baosight Software Co. Ltd., A		Software		300		2,672
	Shanghai Baosight Software Co. Ltd., B		Software		1,800		6,282
	Shanghai Construction Group Co. Ltd., A		Construction & Engineering		2,100		970
	Shanghai Dazhong Public Utilities Group Co. Ltd., A		Gas Utilities		600		368
a	Shanghai Electric Group Co. Ltd., A		Electrical Equipment		3,300		2,791
a	Shanghai Electric Group Co. Ltd., H		Electrical Equipment		12,000		4,322
	Shanghai Electric Power Co. Ltd., A		Independent Power and Renewable Electricity Producers		300		358
	Shanghai Environment Group Co. Ltd., A		Commercial Services & Supplies		300		535
	Shanghai Fosun Pharmaceutical Group Co. Ltd., A		Pharmaceuticals		600		3,639
	Shanghai Fosun Pharmaceutical Group Co. Ltd., H		Pharmaceuticals		3,000		12,792
	Shanghai Huayi Group Co. Ltd., B		Chemicals		1,800		889
	Shanghai Industrial Development Co. Ltd., A		Real Estate Management & Development		300		220
	Shanghai Industrial Holdings Ltd.		Industrial Conglomerates		3,000		4,476
	Shanghai International Airport Co. Ltd., A		Transportation Infrastructure		600		5,295
	Shanghai International Port Group Co. Ltd., A		Transportation Infrastructure		3,900		2,841
	Shanghai Jahwa United Co. Ltd., A		Personal Products		300		2,196



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STATEMENT OF INVESTMENTS

Franklin FTSE Asia ex Japan ETF (continued)



		Industry		Shares		Value
	Common Stocks and Other Equity Interests (continued)
	China (continued)
	Shanghai Jinjiang International Hotels Co. Ltd.		Hotels, Restaurants & Leisure		900	$	1,937
	Shanghai Jinjiang International Hotels Co. Ltd., A		Hotels, Restaurants & Leisure		200		1,692
	Shanghai Jinqiao Export Processing Zone Development Co. Ltd., B		Real Estate Management & Development		1,500		1,449
a,b,c	Shanghai Junshi Biosciences Co. Ltd., H, 144A, Reg S		Biotechnology		600		6,267
	Shanghai Lingang Holdings Corp. Ltd.		Real Estate Management & Development		600		1,677
	Shanghai Lujiazui Finance & Trade Zone Development Co. Ltd., A		Real Estate Management & Development		600		994
	Shanghai Lujiazui Finance & Trade Zone Development Co. Ltd., B		Real Estate Management & Development		5,180		4,564
	Shanghai M&G Stationery Inc., A		Commercial Services & Supplies		300		3,905
	Shanghai Mechanical and Electrical Industry Co. Ltd., A		Machinery		300		882
	Shanghai Mechanical and Electrical Industry Co. Ltd., B		Machinery		1,200		1,716
	Shanghai Pharmaceuticals Holding Co. Ltd., A		Health Care Providers & Services		600		1,793
	Shanghai Pharmaceuticals Holding Co. Ltd., H		Health Care Providers & Services		4,500		8,833
	Shanghai Pudong Development Bank Co. Ltd., A		Banks		9,000		15,075
	Shanghai Putailai New Energy Technology Co. Ltd., A		Chemicals		300		4,344
	Shanghai RAAS Blood Products Co. Ltd., A		Biotechnology		1,500		1,701
	Shanghai Shibei Hi-Tech Co. Ltd., B		Real Estate Management & Development		2,700		905
	Shanghai Shimao Co. Ltd., A		Real Estate Management & Development		1,200		794
	Shanghai Tunnel Engineering Co. Ltd., A		Construction & Engineering		1,200		999
	Shanghai Waigaoqiao Free Trade Zone Group Co. Ltd.		Trading Companies & Distributors		1,200		1,139
	Shanghai Yuyuan Tourist Mart Group Co. Ltd., A		Specialty Retail		1,500		2,451
	Shanghai Zhangjiang High-Tech Park Development Co. Ltd., A		Real Estate Management & Development		300		763
	Shanghai Zhenhua Port Machinery Co. Ltd., B		Machinery		6,080		1,544
	Shangri-La Asia Ltd.		Hotels, Restaurants & Leisure		6,000		5,997
	Shanxi Lu’an Environmental Energy Development Co. Ltd., A		Oil, Gas & Consumable Fuels		600		561
	Shanxi Securities Co. Ltd.		Capital Markets		720		771
	Shanxi Xinghuacun Fen Wine Factory Co. Ltd., A		Beverages		300		15,217
	Shanxi Xishan Coal & Electricity Power Co. Ltd.		Oil, Gas & Consumable Fuels		1,080		825
a	Shanying International Holding Co. Ltd., A		Paper & Forest Products		900		502
	Shenergy Co. Ltd., A		Independent Power and Renewable Electricity Producers		1,700		1,606
a	Shenghe Resources Holding Co. Ltd., A		Metals & Mining		300		797
	Shengyi Technology Co. Ltd., A		Electronic Equipment, Instruments & Components		900		3,117
	Shenwan Hongyuan Group Co. Ltd.		Capital Markets		6,600		4,667
b,c	Shenwan Hongyuan Group Co. Ltd., 144A, Reg S		Capital Markets		7,200		2,019
	Shenzhen Accord Pharmaceutical Co. Ltd., B		Health Care Providers & Services		300		889
	Shenzhen Agricultural Products Group Co. Ltd.		Food & Staples Retailing		300		268



156	Annual Report	franklintempleton.com

FRANKLIN TEMPLETON ETF TRUST

STATEMENT OF INVESTMENTS

Franklin FTSE Asia ex Japan ETF (continued)



		Industry		Shares		Value
	Common Stocks and Other Equity Interests (continued)
	China (continued)
	Shenzhen Airport Co. Ltd.		Transportation Infrastructure		600	$	812
	Shenzhen Aisidi Co. Ltd.		Electronic Equipment, Instruments & Components		300		383
	Shenzhen Energy Group Co. Ltd.		Independent Power and Renewable Electricity Producers		1,580		2,702
	Shenzhen Everwin Precision Technology Co. Ltd.		Electronic Equipment, Instruments & Components		300		1,016
	Shenzhen Expressway Co. Ltd., H		Transportation Infrastructure		6,000		6,498
	Shenzhen Gas Corporation Ltd., A		Gas Utilities		900		1,033
a	Shenzhen Hepalink Pharmaceutical Group Co. Ltd.		Pharmaceuticals		500		743
	Shenzhen Huaqiang Industry Co. Ltd.		Real Estate Management & Development		300		544
	Shenzhen Inovance Technology Co. Ltd.		Machinery		600		7,820
	Shenzhen International Holdings Ltd.		Transportation Infrastructure		4,500		7,536
	Shenzhen Investment Ltd.		Real Estate Management & Development		12,000		4,168
	Shenzhen Jinjia Group Co. Ltd.		Containers & Packaging		300		444
	Shenzhen Kaifa Technology Co. Ltd.		Technology Hardware, Storage & Peripherals		300		875
	Shenzhen Kangtai Biological Products Co. Ltd.		Biotechnology		300		6,263
	Shenzhen Kingdom Sci-Tech Co. Ltd., A		Software		300		665
	Shenzhen Mindray Bio-Medical Electronics Co. Ltd., A		Health Care Equipment & Supplies		300		18,249
a	Shenzhen MTC Co. Ltd.		Household Durables		1,800		1,460
	Shenzhen Overseas Chinese Town Co. Ltd.		Hotels, Restaurants & Leisure		3,000		4,659
	Shenzhen Salubris Pharmaceuticals Co. Ltd.		Pharmaceuticals		300		1,731
	Shenzhen Sunway Communication Co. Ltd.		Communications Equipment		300		1,298
	Shenzhen YUTO Packaging Technology Co. Ltd.		Containers & Packaging		300		1,332
	Shenzhen Zhongjin Lingnan Nonfemet Co. Ltd., A		Metals & Mining		900		623
	Shenzhou International Group Holdings Ltd.		Textiles, Apparel & Luxury Goods		3,600		74,598
a	Shijiazhuang Changshan BeiMing Technology Co. Ltd.		Textiles, Apparel & Luxury Goods		300		229
	Shijiazhuang Yiling Pharmaceutical Co. Ltd.		Pharmaceuticals		300		1,126
	Shimao Group Holdings Ltd.		Real Estate Management & Development		6,500		20,442
	Shougang Fushan Resources Group Ltd.		Metals & Mining		18,000		4,468
	Shui On Land Ltd.		Real Estate Management & Development		19,500		2,985
a	Siasun Robot & Automation Co. Ltd.		Machinery		300		518
	Sichuan Chuantou Energy Co Ltd., A		Independent Power and Renewable Electricity Producers		1,200		2,293
	Sichuan Expressway Co. Ltd., A		Transportation Infrastructure		1,500		750
a	Sichuan Hebang Biotechnology Co. Ltd., A		Chemicals		1,800		420
	Sichuan Kelun Pharmaceutical Co. Ltd.		Pharmaceuticals		600		2,020
	Sichuan Languang Development Co. Ltd., A		Real Estate Management & Development		300		192
	Sichuan Road & Bridge Co. Ltd., A		Construction & Engineering		1,500		1,388
	Sichuan Swellfun Co. Ltd., A		Beverages		300		3,271
	Sieyuan Electric Co. Ltd.		Electrical Equipment		300		1,358
	Silergy Corp.		Semiconductors & Semiconductor Equipment		300		24,235
	Sino-Ocean Land Holdings Ltd.		Real Estate Management & Development		15,000		3,338
	Sinolink Securities Co. Ltd., A		Capital Markets		600		1,235
	Sinoma International Engineering Co.		Construction & Engineering		900		1,291
	Sinoma Science & Technology Co. Ltd.		Chemicals		600		2,132
	Sinopec Engineering Group Co. Ltd.		Construction & Engineering		7,500		4,139



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FRANKLIN TEMPLETON ETF TRUST

STATEMENT OF INVESTMENTS

Franklin FTSE Asia ex Japan ETF (continued)



		Industry		Shares		Value
	Common Stocks and Other Equity Interests (continued)
	China (continued)
a	Sinopec Oilfield Service Corp.		Energy Equipment & Services		12,000	$	1,050
a	Sinopec Oilfield Service Corp., A		Energy Equipment & Services		900		277
	Sinopec Shanghai Petrochemical Co. Ltd., A		Chemicals		2,700		1,453
	Sinopec Shanghai Petrochemical Co. Ltd., H		Chemicals		18,000		4,260
	Sinopharm Group Co. Ltd., H		Health Care Providers & Services		6,000		14,525
	Sinotrans Ltd., A		Air Freight & Logistics		1,500		983
	Sinotrans Ltd., H		Air Freight & Logistics		9,000		3,334
	Sinotruk Hong Kong Ltd.		Machinery		3,000		8,991
	SITC International Holdings Co. Ltd.		Marine		6,000		20,336
a	Smoore International Holdings Ltd.		Tobacco		4,000		24,336
	Soho China Ltd.		Real Estate Management & Development		10,500		3,214
	Songcheng Performance Development Co. Ltd.		Hotels, Restaurants & Leisure		1,060		3,464
	SooChow Securities Co. Ltd., A		Capital Markets		720		1,059
	Southwest Securities Co. Ltd., A		Capital Markets		1,200		852
	Spring Airlines Co. Ltd., A		Airlines		300		2,723
	STO Express Co. Ltd.		Air Freight & Logistics		300		422
	Sun Art Retail Group Ltd.		Food & Staples Retailing		8,000		6,545
	Sunac China Holdings Ltd.		Real Estate Management & Development		12,000		51,476
	Sunac Services Holdings Ltd.		Real Estate Management & Development		3,000		9,454
	Sungrow Power Supply Co. Ltd.		Electrical Equipment		500		5,470
	Suning Universal Co. Ltd.		Real Estate Management & Development		1,500		910
	Suning.com Co. Ltd.		Specialty Retail		3,600		3,775
	Sunny Optical Technology Group Co. Ltd.		Electronic Equipment, Instruments & Components		3,000		68,378
	Sunwoda Electronic Co. Ltd., A		Electrical Equipment		600		1,777
	Suofeiya Home Collection Co. Ltd.		Household Durables		300		1,506
	Suzhou Dongshan Precision Manufacturing Co. Ltd., A		Electronic Equipment, Instruments & Components		600		1,675
	Suzhou Gold Mantis Construction Decoration Co. Ltd.		Construction & Engineering		600		865
a	Tahoe Group Co. Ltd.		Real Estate Management & Development		300		140
a	TAL Education Group, ADR		Diversified Consumer Services		1,821		98,061
	Tangshan Jidong Cement Co. Ltd.		Construction Materials		300		716
	TangShan Port Group Co. Ltd., A		Transportation Infrastructure		1,200		503
	Tangshan Sanyou Chemical Industries Co. Ltd., A		Chemicals		600		990
	TBEA Co. Ltd., A		Electrical Equipment		1,500		2,558
	TCL Corp.		Household Durables		4,800		6,833
	Tencent Holdings Ltd.		Interactive Media & Services		26,600		2,087,093
a	Tencent Music Entertainment Group, ADR		Entertainment		2,172		44,504
a	The China Pacific Securities Co. Ltd., A		Capital Markets		1,500		741
	The People’s Insurance Co. Group of China Ltd., H		Insurance		42,000		13,614
	Thunder Software Technology Co. Ltd.		Software		300		5,571
	Tian Di Science & Technology Co. Ltd., A		Machinery		1,200		615
	Tianfeng Securities Co. Ltd., A		Capital Markets		1,540		1,183
	Tianjin Capital Environmental Protection Group Co. Ltd., A		Commercial Services & Supplies		300		322
	Tianjin Chase Sun Pharmaceutical Co. Ltd.		Pharmaceuticals		1,500		940
	Tianjin Zhonghuan Semiconductor Co. Ltd.		Semiconductors & Semiconductor Equipment		900		3,881
	Tianma Microelectronics Co. Ltd.		Electronic Equipment, Instruments & Components		1,200		2,561
	Tianshui Huatian Technology Co. Ltd., A		Semiconductors & Semiconductor Equipment		900		1,602
	Times China Holdings Ltd.		Real Estate Management & Development		3,000		4,129
	Tingyi Cayman Islands Holding Corp.		Food Products		8,000		14,694
a,b	Tongcheng-Elong Holdings Ltd., Reg S		Internet & Direct Marketing Retail		3,600		8,122
a	TongFu Microelectronics Co. Ltd., A		Semiconductors & Semiconductor Equipment		600		1,781
	Tonghua Dongbao Pharmaceutical Co. Ltd.		Pharmaceuticals		600		1,135
	Tongkun Group Co. Ltd., A		Chemicals		900		2,833



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FRANKLIN TEMPLETON ETF TRUST

STATEMENT OF INVESTMENTS

Franklin FTSE Asia ex Japan ETF (continued)



		Industry		Shares		Value
	Common Stocks and Other Equity Interests (continued)
	China (continued)
	Tongling Nonferrous Metals Group Co. Ltd.		Metals & Mining		4,200	$	1,709
	Tongwei Co. Ltd., A		Food Products		1,500		7,485
a	Topchoice Medical Investment Corp., A		Health Care Providers & Services		100		3,818
	Topsports International Holdings Ltd.		Specialty Retail		6,000		8,937
	Towngas China Co. Ltd.		Gas Utilities		6,000		2,994
	TravelSky Technology Ltd., H		IT Services		4,000		9,354
a	Trip.com Group Ltd., ADR		Internet & Direct Marketing Retail		2,187		86,671
	Tsingtao Brewery Co. Ltd., A		Beverages		300		3,870
	Tsingtao Brewery Co. Ltd., H		Beverages		2,100		18,611
a	Tus-Sound Environmental Resources Co. Ltd.		Commercial Services & Supplies		300		305
	Uni-President China Holdings Ltd.		Food Products		6,000		7,301
	Unigroup Guoxin Microelectronics Co. Ltd.		Semiconductors & Semiconductor Equipment		300		4,892
	Unisplendour Corp. Ltd.		Electronic Equipment, Instruments & Components		760		2,298
	Universal Scientific Industrial Shanghai Co. Ltd., A		Electronic Equipment, Instruments & Components		300		885
a	Vipshop Holdings Ltd., ADR		Internet & Direct Marketing Retail		1,950		58,227
	Walvax Biotechnology Co. Ltd.		Biotechnology		600		4,132
	Wangfujing Group Co. Ltd., A		Multiline Retail		300		1,373
	Wangsu Science & Technology Co. Ltd.		IT Services		600		588
	Wanhua Chemical Group Co. Ltd., A		Chemicals		900		14,485
	Want Want China Holdings Ltd.		Food Products		24,000		17,997
	Wanxiang Qianchao Co. Ltd.		Auto Components		1,200		856
a	Weibo Corp., ADR		Interactive Media & Services		273		13,776
	Weichai Power Co. Ltd., A		Machinery		2,100		6,158
	Weichai Power Co. Ltd., H		Machinery		9,000		22,227
	Weifu High-Technology Co. Ltd., B		Auto Components		900		1,820
	Weifu High-Technology Group Co. Ltd., A		Auto Components		300		1,083
	Weihai Guangwei Composites Co. Ltd., A		Chemicals		300		3,170
	Wens Foodstuffs Group Co. Ltd.		Food Products		720		1,857
	Western Securities Co. Ltd.		Capital Markets		900		1,208
	Westone Information Industry Inc.		Electronic Equipment, Instruments & Components		300		820
	Will Semiconductor Ltd., A		Semiconductors & Semiconductor Equipment		200		7,825
	Wilmar International Ltd.		Food Products		9,900		39,936
	Wingtech Technology Co. Ltd., A		Electronic Equipment, Instruments & Components		400		5,975
	Winning Health Technology Group Co. Ltd.		Health Care Technology		1,080		2,701
	Wolong Electric Group Co. Ltd., A		Electrical Equipment		300		498
	Wuchan Zhongda Group Co. Ltd., A		Distributors		900		667
	Wuhan Guide Infrared Co. Ltd.		Electronic Equipment, Instruments & Components		440		2,401
	Wuhu Sanqi Interactive Entertainment NetworkTechnology Group Co. Ltd.		Entertainment		600		2,008
	Wuliangye Yibin Co. Ltd., A		Beverages		1,300		53,096
	WUS Printed Circuit Kunshan Co. Ltd.		Electronic Equipment, Instruments & Components		900		2,296
	WuXi AppTec Co. Ltd., A		Life Sciences Tools & Services		300		6,410
	WuXi AppTec Co. Ltd., H		Life Sciences Tools & Services		1,200		23,600
a	WuXi Biologics (Cayman) Inc.		Life Sciences Tools & Services		14,500		181,566
	Wuxi Lead Intelligent Equipment Co. Ltd.		Electronic Equipment, Instruments & Components		300		3,612
	XCMG Construction Machinery Co. Ltd.		Machinery		2,100		2,429
	Xiamen C & D Inc., A		Trading Companies & Distributors		900		1,155
	Xiamen ITG Group Corp. Ltd., A		Trading Companies & Distributors		600		605
	Xiamen Meiya Pico Information Co. Ltd.		Electronic Equipment, Instruments & Components		300		787
	Xiamen Tungsten Co. Ltd., A		Metals & Mining		300		839
	Xinhu Zhongbao Co. Ltd., A		Real Estate Management & Development		1,800		839
	Xinhua Winshare Publishing and Media Co. Ltd., H		Distributors		3,000		2,068
	Xinjiang Goldwind Science & Technology Co. Ltd.		Electrical Equipment		900		1,944
	Xinjiang Goldwind Science & Technology Co. Ltd., H		Electrical Equipment		3,000		5,634



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STATEMENT OF INVESTMENTS

Franklin FTSE Asia ex Japan ETF (continued)



		Industry		Shares		Value
	Common Stocks and Other Equity Interests (continued)
	China (continued)
	Xinjiang Zhongtai Chemical Co. Ltd., A		Chemicals		900	$	1,270
	Xinxing Ductile Iron Pipes Co. Ltd.		Metals & Mining		1,500		919
	Xinyi Solar Holdings Ltd.		Semiconductors & Semiconductor Equipment		20,000		32,877
a	XPeng Inc., ADR		Automobiles		540		19,715
	Yadea Group Holdings Ltd., Reg S		Automobiles		4,000		8,880
	Yang Quan Coal Industry Group Co. Ltd., A		Oil, Gas & Consumable Fuels		900		694
	Yango Group Co. Ltd.		Real Estate Management & Development		1,800		1,668
b	Yangtze Optical Fibre and Cable Joint Stock Ltd. Co., H, Reg S		Communications Equipment		1,500		1,906
	Yanlord Land Group Ltd.		Real Estate Management & Development		3,300		3,046
	Yantai Changyu Pioneer Wine Co. Ltd., B		Beverages		1,200		2,362
	Yantai Eddie Precision Machinery Co. Ltd., A		Machinery		100		918
	Yantai Jereh Oilfield Services Group Co. Ltd.		Energy Equipment & Services		300		1,598
	Yanzhou Coal Mining Co. Ltd., A		Oil, Gas & Consumable Fuels		300		605
	Yanzhou Coal Mining Co. Ltd., H		Oil, Gas & Consumable Fuels		10,000		11,834
	Yealink Network Technology Corp. Ltd.		Communications Equipment		300		3,117
	Yifan Pharmaceutical Co. Ltd.		Pharmaceuticals		300		930
	Yifeng Pharmacy Chain Co. Ltd.		Food & Staples Retailing		200		2,704
	Yihai International Holding Ltd.		Food Products		2,400		24,851
	Yintai Gold Co. Ltd.		Metals & Mining		1,280		1,738
	Yonghui Superstores Co. Ltd., A		Food & Staples Retailing		3,000		3,109
	Yonyou Network Technology Co. Ltd., A		Software		1,080		5,878
	Yotrio Group Co. Ltd.		Leisure Products		600		324
	Youngor Group Co. Ltd., A		Real Estate Management & Development		2,100		2,599
	YTO Express Group Co. Ltd., A		Air Freight & Logistics		900		1,532
a	Yuan Longping High-tech Agriculture Co. Ltd.		Food Products		300		815
	Yuexiu Property Co. Ltd.		Real Estate Management & Development		30,000		6,791
	Yunda Holding Co. Ltd.		Air Freight & Logistics		600		1,284
a	Yunnan Aluminium Co. Ltd.		Metals & Mining		900		1,326
	Yunnan Baiyao Group Co. Ltd.		Pharmaceuticals		300		5,510
a	Yunnan Copper Co. Ltd.		Metals & Mining		300		617
	Yunnan Energy New Material Co. Ltd.		Containers & Packaging		300		5,117
	Yunnan Hongxiang Yixintang Pharmaceutical Co. Ltd.		Food & Staples Retailing		200		1,413
a	Yunnan Tin Co. Ltd.		Metals & Mining		300		563
a	Zai Lab Ltd., ADR		Biotechnology		312		41,630
	Zhangzhou Pientzehuang Pharmaceutical Co. Ltd.		Pharmaceuticals		200		8,747
	Zhaojin Mining Industry Co. Ltd., H		Metals & Mining		4,500		4,092
	Zhefu Holding Group Co. Ltd.		Electrical Equipment		1,800		1,561
a	Zhejiang Century Huatong Group Co. Ltd., A		Entertainment		2,400		2,608
	Zhejiang China Commodities City Group Co. Ltd., A		Real Estate Management & Development		1,800		1,374
	Zhejiang Chint Electrics Co. Ltd., A		Electrical Equipment		300		1,660
	Zhejiang Crystal-Optech Co. Ltd.		Electronic Equipment, Instruments & Components		180		297
	Zhejiang Dahua Technology Co. Ltd.		Electronic Equipment, Instruments & Components		600		2,256
	Zhejiang Dingli Machinery Co. Ltd.		Machinery		100		1,468
	Zhejiang Expressway Co. Ltd., H		Transportation Infrastructure		6,000		5,317
	Zhejiang Hailiang Co. Ltd.		Metals & Mining		300		404
a	Zhejiang Hisoar Pharmaceutical Co. Ltd., A		Pharmaceuticals		300		407
	Zhejiang Huace Film & TV Co. Ltd., A		Entertainment		300		277
	Zhejiang Huahai Pharmaceutical Co. Ltd., A		Pharmaceuticals		660		2,586
a	Zhejiang Huayou Cobalt Co. Ltd., A		Metals & Mining		300		3,143
	Zhejiang Jingsheng Mechanical & Electrical Co. Ltd., A		Semiconductors & Semiconductor Equipment		300		1,506
	Zhejiang Juhua Co. Ltd., A		Chemicals		600		843
	Zhejiang Longsheng Group Co. Ltd., A		Chemicals		1,200		2,648
	Zhejiang Medicine Co. Ltd., A		Pharmaceuticals		300		641



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STATEMENT OF INVESTMENTS

Franklin FTSE Asia ex Japan ETF (continued)



		Industry			Shares		Value
	Common Stocks and Other Equity Interests (continued)
	China (continued)
	Zhejiang NHU Co. Ltd.		Pharmaceuticals			600	$	3,496
	Zhejiang Runtu Co. Ltd.		Chemicals			300		449
	Zhejiang Sanhua Intelligent Controls Co. Ltd.		Machinery			1,240		3,897
	Zhejiang Satellite Petrochemical Co. Ltd.		Chemicals			300		1,722
	Zhejiang Semir Garment Co. Ltd.		Textiles, Apparel & Luxury Goods			300		463
	Zhejiang Supor Co. Ltd.		Household Durables			300		3,272
	Zhejiang Wanfeng Auto Wheel Co. Ltd.		Auto Components			300		248
	Zhejiang Wanliyang Co. Ltd.		Machinery			300		344
	Zhejiang Weixing New Building Materials Co. Ltd.		Building Products			600		2,310
	Zhejiang Wolwo Bio-Pharmaceutical Co. Ltd., A		Pharmaceuticals			300		2,696
	Zhejiang Yasha Decoration Co. Ltd.		Diversified Consumer Services			900		1,191
	Zhengzhou Coal Mining Machinery Group Co. Ltd., A		Machinery			300		525
	Zhengzhou Yutong Bus Co. Ltd., A		Machinery			600		1,312
	Zheshang Securities Co. Ltd., A		Capital Markets			300		585
a,b	ZhongAn Online P & C Insurance Co. Ltd., Reg S		Insurance			1,500		9,049
	Zhongji Innolight Co. Ltd.		Communications Equipment			300		1,611
	Zhongjin Gold Corp. Ltd., A		Metals & Mining			1,800		2,288
	Zhongshan Public Utilities Group Co. Ltd.		Water Utilities			600		805
	Zhongsheng Group Holdings Ltd.		Specialty Retail			3,000		21,146
a	Zhongtai Securities Co. Ltd., A		Capital Markets			900		1,830
	Zhuzhou CRRC Times Electric Co. Ltd., H		Electrical Equipment			2,400		8,952
	Zijin Mining Group Co. Ltd., A		Metals & Mining			6,600		9,677
	Zijin Mining Group Co. Ltd., H		Metals & Mining			26,000		31,971
	Zoomlion Heavy Industry Science and Technology Co. Ltd.		Machinery			2,400		4,649
	Zoomlion Heavy Industry Science and Technology Development Co. Ltd., H		Machinery			6,600		9,423
	ZTE Corp.		Communications Equipment			1,500		6,703
	ZTE Corp., H		Communications Equipment			3,600		9,141
	ZTO Express Cayman Inc., ADR		Air Freight & Logistics			1,898		55,327


								14,044,496

	Hong Kong 7.4%
	AIA Group Ltd.		Insurance			56,000		679,251
a	Alibaba Pictures Group Ltd.		Entertainment			60,000		7,795
	ASM Pacific Technology Ltd.		Semiconductors & Semiconductor Equipment			1,500		19,111
	BOC Hong Kong (Holdings) Ltd.		Banks			16,500		57,621
	Cafe de Coral Holdings Ltd.		Hotels, Restaurants & Leisure			2,000		4,332
	Cathay Pacific Airways Ltd.		Airlines			6,000		5,595
	Champion REIT		Equity Real Estate Investment Trusts (REITs	)		9,000		5,279
	CK Asset Holdings Ltd.		Real Estate Management & Development			11,100		67,390
	CK Hutchison Holdings Ltd.		Industrial Conglomerates			12,500		99,605
	CK Infrastructure Holdings Ltd.		Electric Utilities			3,000		17,828
	CLP Holdings Ltd.		Electric Utilities			7,800		75,748
	Dah Sing Banking Group Ltd.		Banks			2,400		2,717
	Dah Sing Financial Group		Banks			1,200		3,951
	Dairy Farm International Holdings Ltd.		Food & Staples Retailing			1,500		6,465
a,b,c	ESR Cayman Ltd., 144A, Reg S		Real Estate Management & Development			8,400		27,498
	Guotai Junan International holdings Ltd.		Capital Markets			15,000		2,759
	Haitong International Securities Group Ltd.		Capital Markets			15,000		4,785
	Hang Lung Group Ltd.		Real Estate Management & Development			3,000		7,594
	Hang Lung Properties Ltd.		Real Estate Management & Development			9,000		23,384
	Hang Seng Bank Ltd.		Banks			3,300		63,882
	Henderson Land Development Co. Ltd.		Real Estate Management & Development			6,000		26,934
	Hong Kong and China Gas Co. Ltd.		Gas Utilities			48,000		75,941
	Hong Kong Exchanges and Clearing Ltd.		Capital Markets			5,900		347,119



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STATEMENT OF INVESTMENTS

Franklin FTSE Asia ex Japan ETF (continued)



		Industry			Shares		Value
	Common Stocks and Other Equity Interests (continued)
	Hong Kong (continued)
	Hongkong Land Holdings Ltd.		Real Estate Management & Development			5,400	$	26,514
	Huabao International Holdings Ltd.		Chemicals			3,000		3,045
	Hutchison Telecommunications Hong Kong Holdings Ltd.		Wireless Telecommunication Services			6,000		1,142
	Hysan Development Co. Ltd.		Real Estate Management & Development			3,000		11,731
	Jardine Matheson Holdings Ltd.		Industrial Conglomerates			950		62,121
	Jardine Strategic Holdings Ltd.		Industrial Conglomerates			900		29,718
	Johnson Electric Holdings Ltd.		Auto Components			1,500		4,032
	JS Global Lifestyle Co. Ltd.		Household Durables			3,000		8,123
	Kerry Logistics Network Ltd.		Air Freight & Logistics			3,000		8,991
	Kerry Properties Ltd.		Real Estate Management & Development			3,000		9,666
	Kingboard Laminates Holdings Ltd.		Electronic Equipment, Instruments & Components			4,500		9,736
	Lifestyle International Holdings Ltd.		Multiline Retail			3,000		2,612
	Link REIT		Equity Real Estate Investment Trusts (REITs	)		9,600		87,425
	Man Wah Holdings Ltd.		Household Durables			7,200		14,929
	Melco International Development Ltd.		Hotels, Restaurants & Leisure			3,000		6,112
	MTR Corp. Ltd.		Road & Rail			6,500		36,829
	New World Development Co. Ltd.		Real Estate Management & Development			6,500		33,610
	NWS Holdings Ltd.		Industrial Conglomerates			6,000		6,336
	PCCW Ltd.		Diversified Telecommunication Services			19,341		10,896
	Power Assets Holdings Ltd.		Electric Utilities			6,000		35,424
	Samsonite International SA		Textiles, Apparel & Luxury Goods			6,300		12,155
	Shun Tak Holdings Ltd.		Industrial Conglomerates			8,000		2,449
	Sino Biopharmaceutical Ltd.		Pharmaceuticals			45,000		45,032
	Sino Land Co. Ltd.		Real Estate Management & Development			15,000		20,876
	Sun Hung Kai Properties Ltd.		Real Estate Management & Development			6,500		98,489
	Swire Pacific Ltd., A		Real Estate Management & Development			2,000		14,998
	Swire Pacific Ltd., B		Real Estate Management & Development			2,500		2,952
	Swire Properties Ltd.		Real Estate Management & Development			4,800		14,849
	Techtronic Industries Co. Ltd.		Machinery			6,000		102,644
	The Bank of East Asia Ltd.		Banks			6,000		12,780
	The Wharf Holdings Ltd.		Real Estate Management & Development			6,000		15,898
a	United Energy Group Ltd.		Oil, Gas & Consumable Fuels			36,000		6,946
	Vinda International Holdings Ltd.		Household Products			1,000		3,376
	Vitasoy International Holdings Ltd.		Food Products			4,500		17,307
	VTech Holdings Ltd.		Communications Equipment			900		8,104
b	WH Group Ltd., Reg S		Food Products			39,000		31,604
	Wharf Real Estate Investment Co. Ltd.		Real Estate Management & Development			8,000		44,814
	Xinyi Glass Holdings Ltd.		Building Products			10,000		32,671
	Yue Yuen Industrial Holdings Ltd.		Textiles, Apparel & Luxury Goods			3,000		7,486


								2,537,006

	India 11.5%
a	3M India Ltd.		Industrial Conglomerates			12		4,996
	ABB India Ltd.		Electrical Equipment			255		4,918
	ACC Ltd.		Construction Materials			348		9,059
a	Adani Enterprises Ltd.		Trading Companies & Distributors			1,257		17,728
a	Adani Gas Ltd.		Gas Utilities			1,284		16,881
a	Adani Green Energy Ltd.		Independent Power and Renewable Electricity Producers			1,875		28,334
a	Adani Ports And Special Economic Zone Ltd.		Transportation Infrastructure			3,567		34,268
a	Adani Power Ltd.		Independent Power and Renewable Electricity Producers			4,806		5,591
a	Aditya Birla Capital Ltd.		Diversified Financial Services			2,646		4,317
	Alkem Laboratories Ltd.		Pharmaceuticals			129		4,887
	Ambuja Cements Ltd.		Construction Materials			3,186		13,458
	Apollo Hospitals Enterprise Ltd.		Health Care Providers & Services			474		18,818



162	Annual Report	franklintempleton.com

FRANKLIN TEMPLETON ETF TRUST

STATEMENT OF INVESTMENTS

Franklin FTSE Asia ex Japan ETF (continued)



		Industry			Shares		Value
	Common Stocks and Other Equity Interests (continued)
	India (continued)
a	Ashok Leyland Ltd.		Machinery			6,303	$	9,785
	Asian Paints Ltd.		Chemicals			1,902		66,009
	Astral Poly Technik Ltd.		Building Products			363		8,027
a	AU Small Finance Bank Ltd.		Banks			705		11,840
	Aurobindo Pharma Ltd.		Pharmaceuticals			1,215		14,645
a	Avenue Supermarts Ltd.		Food & Staples Retailing			690		26,982
a	Axis Bank Ltd.		Banks			10,596		101,078
	Bajaj Auto Ltd.		Automobiles			342		17,170
a	Bajaj Finance Ltd.		Consumer Finance			1,020		71,845
a	Bajaj Finserv Ltd.		Insurance			171		22,613
a	Bajaj Holdings & Investment Ltd.		Diversified Financial Services			135		6,080
	Balkrishna Industries Ltd.		Auto Components			375		8,660
a	Bandhan Bank Ltd		Banks			3,789		17,563
a	Bank of Baroda		Banks			3,999		4,053
a	Bank of India		Banks			1,458		1,353
	Bata India Ltd.		Textiles, Apparel & Luxury Goods			261		5,020
	Bayer Cropscience Ltd.		Chemicals			54		3,945
	Berger Paints India Ltd.		Chemicals			1,080		11,300
	Bharat Electronics Ltd.		Aerospace & Defense			4,602		7,874
a	Bharat Forge Ltd.		Auto Components			1,002		8,167
a	Bharat Heavy Electricals Ltd.		Electrical Equipment			5,592		3,729
	Bharat Petroleum Corp. Ltd.		Oil, Gas & Consumable Fuels			4,554		26,656
	Bharti Airtel Ltd.		Wireless Telecommunication Services			10,530		74,503
	Bharti Infratel Ltd.		Diversified Telecommunication Services			5,979		20,035
a	Biocon Ltd.		Biotechnology			1,926		10,771
	Bosch Ltd.		Auto Components			36		6,937
	Britannia Industries Ltd.		Food Products			480		23,799
a	Cadila Healthcare Ltd.		Pharmaceuticals			1,224		7,381
a	Canara Bank Ltd.		Banks			1,386		2,885
	Castrol India Ltd.		Chemicals			2,112		3,619
	Cholamandalam Investment and Finance Co. Ltd.		Consumer Finance			1,554		11,877
a	Cipla Ltd.		Pharmaceuticals			2,151		23,980
	Coal India Ltd.		Oil, Gas & Consumable Fuels			8,262		14,730
	Colgate-Palmolive (India) Ltd.		Personal Products			555		11,837
	Container Corp. of India Ltd.		Road & Rail			1,101		9,005
	Coromandel International Ltd.		Chemicals			474		5,021
	Cummins India Ltd.		Machinery			564		7,094
	Dabur India Ltd.		Personal Products			2,493		18,430
a	Dalmia Bharat Ltd.		Construction Materials			213		4,629
a	Divi’s Laboratories Ltd.		Life Sciences Tools & Services			534		26,460
	DLF Ltd.		Real Estate Management & Development			2,757		10,824
	Dr Reddy’s Laboratories Ltd.		Pharmaceuticals			513		31,686
	Eicher Motors Ltd.		Automobiles			615		21,903
	Emami Ltd.		Personal Products			900		5,982
	Embassy Office Parks REIT		Equity Real Estate Investment Trusts (REITs	)		1,800		8,012
	Exide Industries Ltd.		Auto Components			1,893		4,754
a	Federal Bank Ltd.		Banks			6,876		7,129
	GAIL India Ltd.		Gas Utilities			7,548		13,989
	Gillette India Ltd.		Personal Products			42		3,389
	GlaxoSmithKline Pharmaceuticals Ltd.		Pharmaceuticals			201		3,961
	Glenmark Pharmaceuticals Ltd.		Pharmaceuticals			711		4,519
a	GMR Infrastructure Ltd.		Transportation Infrastructure			8,970		2,981
	Godrej Consumer Products Ltd.		Personal Products			1,707		17,035
a	Godrej Industries Ltd.		Industrial Conglomerates			345		2,575
a	Godrej Properties Ltd.		Real Estate Management & Development			360		6,927
	Grasim Industries Ltd.		Construction Materials			1,659		32,914



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STATEMENT OF INVESTMENTS

Franklin FTSE Asia ex Japan ETF (continued)



		Industry		Shares		Value
	Common Stocks and Other Equity Interests (continued)
	India (continued)
	Gujarat Gas Ltd.		Gas Utilities		825	$	6,200
	Havell’s India Ltd.		Electrical Equipment		1,065		15,300
	HCL Technologies Ltd.		IT Services		5,094		68,463
b,c	HDFC Asset Management Co. Ltd., 144A, Reg S		Capital Markets		279		11,139
a	HDFC Life Insurance Co. Ltd.		Insurance		2,988		28,452
	Hero Motocorp Ltd.		Automobiles		567		22,595
	Hindalco Industries Ltd.		Metals & Mining		5,949		26,595
	Hindustan Aeronautics Ltd.		Aerospace & Defense		165		2,245
	Hindustan Petroleum Corp. Ltd.		Oil, Gas & Consumable Fuels		3,393		10,882
	Hindustan Unilever Ltd.		Household Products		4,113		136,784
	Hindustan Zinc Ltd.		Metals & Mining		1,035		3,863
	Honeywell Automation India Ltd.		Electronic Equipment, Instruments & Components		9		5,845
	Housing Development Finance Corp. Ltd.		Thrifts & Mortgage Finance		8,025		274,193
a	ICICI Bank Ltd.		Banks		7,200		57,323
b,c	ICICI Lombard General Insurance Co. Ltd., 144A, Reg S		Insurance		927		18,171
a,b	ICICI Prudential Life Insurance Co. Ltd., Reg S		Insurance		1,569		9,562
a	IDFC First Bank Ltd.		Banks		12,675		9,656
	Indiabulls Housing Finance Ltd.		Thrifts & Mortgage Finance		1,731		4,652
	Indian Oil Corp. Ltd.		Oil, Gas & Consumable Fuels		11,976		15,045
	Indian Railway Catering and Tourism Corp. Ltd.		Commercial Services & Supplies		243		5,840
	Indraprastha Gas Ltd.		Gas Utilities		1,665		11,668
	Info Edge India Ltd.		Interactive Media & Services		336		19,672
	Infosys Ltd.		IT Services		16,671		311,935
a,b	InterGlobe Aviation Ltd., Reg S		Airlines		429		9,576
	IPCA Laboratories Ltd.		Pharmaceuticals		297		7,733
	ITC Ltd.		Tobacco		13,638		40,757
a	Jindal Steel & Power Ltd.		Metals & Mining		1,890		8,882
	JSW Energy Ltd.		Independent Power and Renewable Electricity Producers		2,028		2,437
	JSW Steel Ltd.		Metals & Mining		4,632		29,678
a	Jubilant Foodworks Ltd.		Hotels, Restaurants & Leisure		330		13,139
	Kansai Nerolac Paints Ltd.		Chemicals		642		5,278
a	L&T Finance Holdings Ltd.		Diversified Financial Services		3,855		5,054
b	Larsen & Toubro Infotech Ltd., Reg S		IT Services		189		10,480
	Larsen & Toubro Ltd.		Construction & Engineering		2,784		54,028
	LIC Housing Finance Ltd.		Thrifts & Mortgage Finance		1,329		7,783
	Lupin Ltd.		Pharmaceuticals		1,053		14,697
a	Mahindra & Mahindra Financial Services Ltd.		Consumer Finance		3,156		8,588
	Mahindra & Mahindra Ltd.		Automobiles		3,867		42,061
a	Mangalore Refinery and Petrochemicals Ltd.		Oil, Gas & Consumable Fuels		669		355
	Marico Ltd.		Personal Products		2,430		13,670
	Maruti Suzuki India Ltd.		Automobiles		597		56,008
	Mindtree Ltd.		IT Services		180		5,130
a	Motherson Sumi Systems Ltd.		Auto Components		5,307		14,622
	Mphasis Ltd.		IT Services		405		9,841
	MRF Ltd.		Auto Components		11		12,376
a	Muthoot Finance Ltd.		Consumer Finance		477		7,867
	Nestle India Ltd.		Food Products		150		35,216
	NHPC Ltd.		Independent Power and Renewable Electricity Producers		9,912		3,315
	Nippon Life India Asset Management Ltd.		Capital Markets		621		2,873
	NMDC Ltd.		Metals & Mining		3,852		7,131



164	Annual Report	franklintempleton.com

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STATEMENT OF INVESTMENTS

Franklin FTSE Asia ex Japan ETF (continued)



		Industry		Shares		Value
	Common Stocks and Other Equity Interests (continued)
	India (continued)
	NTPC Ltd.		Independent Power and Renewable Electricity Producers		18,219	$	26,551
a	Oberoi Realty Ltd.		Real Estate Management & Development		435		3,422
	Oil & Natural Gas Corp. Ltd.		Oil, Gas & Consumable Fuels		13,983		19,536
	Oil India Ltd.		Oil, Gas & Consumable Fuels		1,617		2,716
	Oracle Financial Services Software Ltd.		Software		114		4,988
	Page Industries Ltd.		Textiles, Apparel & Luxury Goods		27		11,196
	Petronet LNG Ltd.		Oil, Gas & Consumable Fuels		3,315		10,186
	PI Industries Ltd.		Chemicals		333		10,285
	Pidilite Industries Ltd.		Chemicals		639		15,814
	Piramal Enterprises Ltd.		Diversified Financial Services		549		13,164
	Power Finance Corp. Ltd.		Diversified Financial Services		4,758		7,402
	Power Grid Corp. of India Ltd.		Electric Utilities		10,584		31,218
a	Punjab National Bank Ltd.		Banks		4,809		2,411
	Rajesh Exports Ltd.		Textiles, Apparel & Luxury Goods		591		3,870
a,b	RBL Bank Ltd., Reg S		Banks		2,040		5,791
	REC Ltd.		Diversified Financial Services		3,999		7,173
	Reliance Industries Ltd.		Oil, Gas & Consumable Fuels		14,473		396,517
	Reliance Industries Ltd.		Oil, Gas & Consumable Fuels		783		11,679
	SBI Cards & Payment Services Ltd.		Consumer Finance		651		8,265
	SBI Life Insurance Co. Ltd.		Insurance		1,683		20,276
a	Shree Cement Ltd.		Construction Materials		57		22,971
	Shriram Transport Finance Co. Ltd.		Consumer Finance		885		17,216
	Siemens Ltd.		Industrial Conglomerates		405		10,214
	SRF Ltd.		Chemicals		111		8,215
a	State Bank of India		Banks		8,385		41,779
	Steel Authority of India Ltd.		Metals & Mining		4,977		5,364
	Sun Pharmaceutical Industries Ltd.		Pharmaceuticals		5,046		41,258
	Sun TV Network Ltd.		Media		501		3,223
	Tata Communications Ltd.		Diversified Telecommunication Services		484		7,036
	Tata Consultancy Services Ltd.		IT Services		4,620		200,806
	Tata Consumer Products Ltd.		Food Products		2,475		21,628
a	Tata Motors Ltd.		Automobiles		7,758		32,024
a	Tata Motors Ltd., A		Automobiles		1,545		2,706
	Tata Power Co. Ltd.		Electric Utilities		8,280		11,693
	Tata Steel Ltd.		Metals & Mining		2,928		32,512
	Tech Mahindra Ltd.		IT Services		2,694		36,532
	Titan Co. Ltd.		Textiles, Apparel & Luxury Goods		1,809		38,550
	Torrent Pharmaceuticals Ltd.		Pharmaceuticals		216		7,519
	Torrent Power Ltd.		Electric Utilities		912		5,286
	Trent Ltd.		Multiline Retail		864		8,875
	TVS Motor Co. Ltd.		Automobiles		852		6,818
	UltraTech Cement Ltd.		Construction Materials		534		49,212
a	Union Bank of India Ltd.		Banks		1,926		897
	United Breweries Ltd.		Beverages		351		5,960
a	United Spirits Ltd.		Beverages		1,332		10,136
	UPL Ltd.		Chemicals		2,451		21,517
	Varun Beverages Ltd.		Beverages		405		5,556
	Vedanta Ltd.		Metals & Mining		7,458		23,334
a	Vodafone Idea Ltd.		Wireless Telecommunication Services		37,110		4,695
	Voltas Ltd.		Construction & Engineering		912		12,498
	Whirlpool of India Ltd.		Household Durables		153		4,659
	Wipro Ltd.		IT Services		5,850		33,137
a	Yes Bank Ltd.		Banks		4,442		948
	Zee Entertainment Enterprises Ltd.		Media		3,849		10,697


							3,941,808



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STATEMENT OF INVESTMENTS

Franklin FTSE Asia ex Japan ETF (continued)



		Industry		Shares		Value
	Common Stocks and Other Equity Interests (continued)
	Indonesia 1.4%
	Adaro Energy Tbk PT		Oil, Gas & Consumable Fuels		57,900	$	4,684
	Astra Agro Lestari Tbk PT		Food Products		2,100		1,449
	Astra International Tbk PT		Automobiles		95,700		34,755
	Bank Central Asia Tbk PT		Banks		44,700		95,632
d	Bank Danamon Indonesia Tbk PT		Banks		3,600		677
	Bank Mandiri Persero Tbk PT		Banks		85,500		36,201
a	Bank Negara Indonesia Persero Tbk PT		Banks		36,000		14,189
a	Bank Rakyat Indonesia Persero Tbk PT		Banks		245,100		74,247
	Bukit Asam Tbk PT		Oil, Gas & Consumable Fuels		17,400		3,139
a	Bumi Serpong Damai Tbk PT		Real Estate Management & Development		37,800		2,915
	Charoen Pokphand Indonesia Tbk PT		Food Products		34,800		16,771
	First Pacific Co. Ltd.		Diversified Financial Services		12,000		3,952
	Golden Agri-Resources Ltd.		Food Products		31,800		4,970
a	Gudang Garam Tbk PT		Tobacco		2,400		5,977
	Hanjaya Mandala Sampoerna Tbk PT		Tobacco		42,600		4,033
	Indah Kiat Pulp & Paper Corp Tbk PT		Paper & Forest Products		12,000		8,633
	Indocement Tunggal Prakarsa Tbk PT		Construction Materials		6,600		5,555
	Indofood CBP Sukses Makmur Tbk PT		Food Products		11,700		7,411
	Indofood Sukses Makmur Tbk PT		Food Products		21,600		9,815
	Jasa Marga Persero Tbk PT		Transportation Infrastructure		12,000		3,338
	Kalbe Farma Tbk PT		Pharmaceuticals		86,400		9,339
	Mayora Indah Tbk PT		Food Products		16,800		3,030
a	Media Nusantara Citra Tbk PT		Media		28,500		1,874
	Perusahaan Gas Negara Tbk PT		Gas Utilities		47,700		4,319
	Perusahaan Perseroan (Persero) PT TelekomunikasiIndonesia Tbk, B		Diversified Telecommunication Services		215,700		50,788
a	PT Barito Pacific Tbk		Chemicals		113,400		7,495
	PT XL Axiata Tbk		Wireless Telecommunication Services		19,200		2,763
	Sarana Menara Nusantara Tbk PT		Diversified Telecommunication Services		120,600		9,133
	Semen Indonesia (Persero) Tbk PT		Construction Materials		13,500		9,689
a	Smartfren Telecom Tbk PT		Wireless Telecommunication Services		195,300		1,035
a	Surya Citra Media Tbk PT		Media		24,000		2,809
	Tower Bersama Infrastructure Tbk PT		Diversified Telecommunication Services		43,500		6,199
	Unilever Indonesia Tbk PT		Household Products		27,300		12,358
	United Tractors Tbk PT		Oil, Gas & Consumable Fuels		7,200		10,967
a	Vale Indonesia Tbk PT		Metals & Mining		10,500		3,166


							473,307

	Italy 0.0%^†
a	Prada SpA		Textiles, Apparel & Luxury Goods		2,400		14,987

	Luxembourg 0.0%^†
	L’Occitane International SA		Personal Products		2,250		6,266

	Macau 0.5%
a	Galaxy Entertainment Group Ltd.		Hotels, Restaurants & Leisure		9,900		89,138
	MGM China Holdings Ltd.		Hotels, Restaurants & Leisure		3,600		6,390
a	Sands China Ltd.		Hotels, Restaurants & Leisure		11,200		55,968
	SJM Holdings Ltd.		Hotels, Restaurants & Leisure		9,000		11,762
a	Wynn Macau Ltd.		Hotels, Restaurants & Leisure		7,200		14,003


							177,261

	Malaysia 1.8%
a	AirAsia Group Bhd		Airlines		5,400		1,276
a	Alliance Bank Malaysia Bhd.		Banks		4,200		2,684
	AMMB Holdings Bhd.		Beverages		9,000		6,360
	Astro Malaysia Holdings Bhd.		Media		8,100		1,875
	Axiata Group Bhd.		Wireless Telecommunication Services		20,400		17,957



166	Annual Report	franklintempleton.com

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STATEMENT OF INVESTMENTS

Franklin FTSE Asia ex Japan ETF (continued)



		Industry		Shares		Value
	Common Stocks and Other Equity Interests (continued)
	Malaysia (continued)
	British American Tobacco Malaysia Bhd.		Tobacco		600	$	1,896
	CIMB Group Holdings Bhd.		Banks		33,300		34,854
	Dialog Group Bhd.		Energy Equipment & Services		21,300		15,976
	Digi.com Bhd.		Wireless Telecommunication Services		16,500		14,485
	FGV Holdings Bhd.		Food Products		4,200		1,367
	Fraser & Neave Holdings Bhd.		Beverages		600		4,341
a	Gamuda Bhd.		Construction & Engineering		10,200		8,807
	Genting Bhd.		Hotels, Restaurants & Leisure		10,200		12,373
	Genting Malaysia Bhd.		Hotels, Restaurants & Leisure		13,200		9,773
	HAP Seng Consolidated Bhd.		Industrial Conglomerates		3,000		6,041
	Hartalega Holdings Bhd.		Health Care Equipment & Supplies		7,200		15,506
	Hong Leong Bank Bhd.		Banks		3,000		13,530
	Hong Leong Financial Group Bhd.		Banks		1,200		5,041
	IHH Healthcare Bhd.		Health Care Providers & Services		13,800		17,706
	IJM Corp. Bhd.		Construction & Engineering		15,900		6,480
	IOI Corp. Bhd.		Food Products		14,400		14,551
	IOI Properties Group Bhd.		Real Estate Management & Development		9,900		3,414
	Kuala Lumpur Kepong Bhd.		Food Products		2,100		11,618
	Malayan Banking Bhd.		Banks		27,900		55,511
	Malaysia Airports Holdings Bhd.		Transportation Infrastructure		3,900		5,878
	Maxis Bhd.		Wireless Telecommunication Services		12,900		14,062
	MISC Bhd.		Marine		7,800		12,829
	Nestle (Malaysia) Bhd.		Food Products		300		9,767
	Petronas Chemicals Group Bhd.		Chemicals		13,200		25,467
	Petronas Dagangan Bhd.		Oil, Gas & Consumable Fuels		1,500		7,250
	Petronas Gas Bhd.		Gas Utilities		2,700		10,418
	PPB Group Bhd.		Food Products		3,000		13,385
	Press Metal Aluminium Holdings Bhd.		Metals & Mining		8,700		20,772
	Public Bank Bhd.		Banks		72,000		72,929
	QL Resources Bhd.		Food Products		4,900		7,161
	RHB Bank Bhd		Banks		7,500		9,713
	Sime Darby Bhd.		Industrial Conglomerates		16,800		9,724
	Sime Darby Plantation Bhd.		Food Products		16,200		18,128
	Sime Darby Property Bhd.		Real Estate Management & Development		14,700		2,304
	Supermax Corp. Bhd		Health Care Equipment & Supplies		7,500		6,891
	Telekom Malaysia Bhd.		Diversified Telecommunication Services		5,700		8,427
	Tenaga Nasional Bhd.		Electric Utilities		18,000		43,931
	Top Glove Corp. Bhd.		Health Care Equipment & Supplies		24,900		27,143
	Westports Holdings Bhd.		Transportation Infrastructure		4,800		4,862
	Wing Tai Holdings Ltd.		Real Estate Management & Development		1,800		2,572
a	YTL Corp. Bhd.		Multi-Utilities		23,813		3,877


							620,912

	Pakistan 0.0%^†
	Fauji Fertilizer Co. Ltd.		Chemicals		3,000		2,053
	Habib Bank Ltd.		Banks		3,000		2,283
	Oil & Gas Development Co. Ltd.		Oil, Gas & Consumable Fuels		3,000		1,996
	Pakistan Petroleum Ltd.		Oil, Gas & Consumable Fuels		3,006		1,719


							8,051

	Philippines 0.8%
	Aboitiz Power Corp.		Independent Power and Renewable Electricity Producers		7,800		3,777
	Alliance Global Group Inc.		Industrial Conglomerates		16,500		3,617
	Ayala Corp.		Industrial Conglomerates		1,530		23,326
	Ayala Land Inc.		Real Estate Management & Development		36,000		25,477
	Bank of the Philippine Islands		Banks		8,550		14,356
	BDO Unibank Inc.		Banks		8,970		18,850



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STATEMENT OF INVESTMENTS

Franklin FTSE Asia ex Japan ETF (continued)



		Industry			Shares		Value
	Common Stocks and Other Equity Interests (continued)
	Philippines (continued)
	Bloomberry Resorts Corp.		Hotels, Restaurants & Leisure			17,700	$	2,538
a	DMCI Holdings Inc.		Industrial Conglomerates			21,000		2,401
	Globe Telecom Inc.		Wireless Telecommunication Services			120		4,648
	GT Capital Holdings Inc.		Industrial Conglomerates			480		5,162
	International Container Terminal Services Inc.		Transportation Infrastructure			5,130		12,789
	JG Summit Holdings Inc.		Industrial Conglomerates			13,980		17,210
	Jollibee Foods Corp.		Hotels, Restaurants & Leisure			1,890		6,888
	LT Group Inc.		Industrial Conglomerates			13,500		3,755
	Manila Electric Co.		Electric Utilities			1,230		6,893
	Megaworld Corp.		Real Estate Management & Development			54,000		3,983
	Metro Pacific Investments Corp.		Diversified Financial Services			63,000		4,854
	Metropolitan Bank & Trust Co.		Banks			8,700		7,958
	PLDT Inc.		Wireless Telecommunication Services			435		10,943
	Puregold Price Club Inc.		Food & Staples Retailing			4,560		3,692
	San Miguel Corp.		Industrial Conglomerates			1,860		4,560
	San Miguel Pure Foods Co. Inc.		Food Products			3,300		4,015
	Semirara Mining and Power Corp.		Oil, Gas & Consumable Fuels			6,000		1,679
	SM Investments Corp.		Industrial Conglomerates			2,250		44,502
	SM Prime Holdings Inc.		Real Estate Management & Development			41,400		29,853
	Universal Robina Corp.		Food Products			4,200		11,509


								279,235

	Singapore 2.8%
	Ascendas REIT		Equity Real Estate Investment Trusts (REITs	)		15,147		34,384
	Ascott Residence Trust		Equity Real Estate Investment Trusts (REITs	)		7,800		6,212
	BOC Aviation Ltd.		Trading Companies & Distributors			900		8,717
	CapitaLand Ltd.		Real Estate Management & Development			12,000		33,581
	CapitaLand Mall Trust		Equity Real Estate Investment Trusts (REITs	)		19,936		32,198
	City Developments Ltd.		Real Estate Management & Development			2,100		12,472
	ComfortDelGro Corp. Ltd.		Road & Rail			9,900		12,600
	DBS Group Holdings Ltd.		Banks			8,300		177,848
	Frasers Logistics & Commercial Trust		Equity Real Estate Investment Trusts (REITs	)		11,700		12,627
	Genting Singapore Ltd.		Hotels, Restaurants & Leisure			27,300		18,693
	Hutchison Port Holdings Trust		Transportation Infrastructure			22,500		5,062
	Jardine Cycle & Carriage Ltd.		Distributors			400		6,701
	Keppel Corp. Ltd.		Industrial Conglomerates			6,600		26,133
	Keppel DC REIT		Equity Real Estate Investment Trusts (REITs	)		5,700		11,454
	Keppel REIT		Equity Real Estate Investment Trusts (REITs	)		9,600		8,717
	Mapletree Commercial Trust		Equity Real Estate Investment Trusts (REITs	)		10,500		16,567
b	Mapletree Greater China Commercial Trust, Reg S		Equity Real Estate Investment Trusts (REITs	)		10,200		8,047
	Mapletree Industrial Trust		Equity Real Estate Investment Trusts (REITs	)		7,800		15,907
	Mapletree Logistics Trust		Equity Real Estate Investment Trusts (REITs	)		13,200		18,961
b	NetLink NBN Trust, Reg S		Diversified Telecommunication Services			13,800		9,706
	Olam International Ltd.		Food & Staples Retailing			2,700		3,456
	Oversea-Chinese Banking Corp. Ltd.		Banks			16,200		141,672
a	SATS Ltd.		Transportation Infrastructure			3,000		9,713
	SembCorp Industries Ltd.		Industrial Conglomerates			4,800		6,573
a	SembCorp Marine Ltd.		Machinery			35,515		4,494
	SIA Engineering Co. Ltd.		Transportation Infrastructure			1,200		1,938
a	Singapore Airlines Ltd.		Airlines			5,700		23,545
	Singapore Exchange Ltd.		Capital Markets			3,900		28,939
	Singapore Post Ltd.		Air Freight & Logistics			7,800		4,064
	Singapore Press Holdings Ltd.		Media			8,100		9,224
	Singapore Technologies Engineering Ltd.		Aerospace & Defense			7,200		20,845
	Singapore Telecommunications Ltd.		Diversified Telecommunication Services			34,500		62,653
	StarHub Ltd.		Wireless Telecommunication Services			3,300		3,144
	Suntec REIT		Equity Real Estate Investment Trusts (REITs	)		10,200		11,843



168	Annual Report	franklintempleton.com

FRANKLIN TEMPLETON ETF TRUST

STATEMENT OF INVESTMENTS

Franklin FTSE Asia ex Japan ETF (continued)



		Industry		Shares		Value
	Common Stocks and Other Equity Interests (continued)
	Singapore (continued)
	United Overseas Bank Ltd.		Banks		6,000	$	115,347
	UOL Group Ltd.		Real Estate Management & Development		2,400		14,111
	Venture Corp. Ltd.		Electronic Equipment, Instruments & Components		1,200		17,916
	Yangzijiang Shipbuilding Holdings Ltd.		Machinery		9,600		9,146


							965,210

	South Korea 13.9%
a	Alteogen Inc.		Biotechnology		130		10,292
	Amorepacific Corp.		Personal Products		144		32,891
	AmorePacific Group		Personal Products		126		7,225
	BGF Retail Co. Ltd.		Food & Staples Retailing		30		4,188
	BNK Financial Group Inc.		Banks		1,401		8,405
a	Celltrion Healthcare Co. Ltd.		Health Care Providers & Services		333		40,016
a	Celltrion Inc.		Biotechnology		486		139,348
a	Celltrion Pharm Inc.		Pharmaceuticals		88		11,663
	Cheil Worldwide Inc.		Media		333		6,252
	CJ CheilJedang Corp.		Food Products		36		13,074
	CJ Corp.		Industrial Conglomerates		60		4,983
	CJ ENM Co. Ltd.		Internet & Direct Marketing Retail		42		5,281
a	CJ Logistics Corp.		Road & Rail		36		5,821
a	Coway Co. Ltd.		Household Durables		252		14,584
	Daelim Industrial Co. Ltd.		Construction & Engineering		49		3,788
a	Daewoo Engineering & Construction Co. Ltd.		Construction & Engineering		837		4,888
a	Daewoo Shipbuilding & Marine Engineering Co. Ltd.		Machinery		210		5,251
	DB Insurance Co. Ltd.		Insurance		210		8,777
	DGB Financial Group Inc.		Banks		795		5,929
a	DL E&C Co. Ltd.		Construction & Engineering		72		7,666
	Dongsuh Cos. Inc.		Food & Staples Retailing		132		3,726
a	Doosan Bobcat Inc.		Machinery		99		3,683
a	Doosan Heavy Industries and Construction Co. Ltd.		Electrical Equipment		946		10,866
a	Doosan Infracore Co. Ltd.		Machinery		648		6,499
	Doosan Solus Co. Ltd.		Electronic Equipment, Instruments & Components		54		2,250
	E-MART Inc.		Food & Staples Retailing		93		14,052
	Fila Holdings Corp.		Textiles, Apparel & Luxury Goods		249		9,494
	Green Cross Corp.		Biotechnology		24		7,645
	GS Engineering & Construction Corp.		Construction & Engineering		264		10,030
	GS Holdings Corp.		Oil, Gas & Consumable Fuels		231		7,981
	GS Retail Co. Ltd.		Food & Staples Retailing		132		4,450
	Hana Financial Group Inc.		Banks		1,350		51,054
a	Hanjin Kal Corp.		Airlines		141		7,151
	Hankook Tire & Technology Co. Ltd.		Auto Components		336		14,562
	Hanmi Pharm Co. Ltd.		Pharmaceuticals		36		10,068
	Hanmi Science Co. Ltd.		Pharmaceuticals		66		3,382
	Hanon Systems		Auto Components		717		11,182
	Hanssem Co. Ltd.		Household Durables		45		4,632
	Hanwha Aerospace Co. Ltd.		Aerospace & Defense		150		5,421
	Hanwha Corp.		Industrial Conglomerates		120		1,522
	Hanwha Corp.		Industrial Conglomerates		180		5,066
	Hanwha Life Insurance Co. Ltd.		Insurance		1,410		3,999
a	Hanwha Solutions Corp.		Chemicals		442		19,566
	HDC Hyundai Development Co-Engineering & Construction		Construction & Engineering		219		5,679
a	Helixmith Co. Ltd.		Biotechnology		148		3,374
	Hite Jinro Co. Ltd.		Beverages		150		4,884



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FRANKLIN TEMPLETON ETF TRUST

STATEMENT OF INVESTMENTS

Franklin FTSE Asia ex Japan ETF (continued)



		Industry		Shares		Value
	Common Stocks and Other Equity Interests (continued)
	South Korea (continued)
a	HLB Inc.		Leisure Products		414	$	14,340
a	HMM Co. Ltd.		Marine		1,299		33,286
	Hotel Shilla Co. Ltd.		Specialty Retail		144		11,057
	Hyundai Department Store Co. Ltd.		Multiline Retail		72		5,770
	Hyundai Engineering & Construction Co. Ltd.		Construction & Engineering		345		13,428
	Hyundai Glovis Co. Ltd.		Air Freight & Logistics		84		13,916
	Hyundai Heavy Industries Holdings Co. Ltd.		Machinery		48		12,363
	Hyundai Marine & Fire Insurance Co. Ltd.		Insurance		309		6,689
a	Hyundai Mipo Dockyard Co. Ltd.		Machinery		102		6,029
	Hyundai Mobis Co. Ltd.		Auto Components		297		76,628
	Hyundai Motor Co.		Automobiles		645		124,241
	Hyundai Steel Co.		Metals & Mining		357		15,157
	Hyundai Wia Corp.		Auto Components		66		4,496
a	Industrial Bank of Korea		Banks		1,185		9,591
	Kakao Corp.		Interactive Media & Services		249		109,567
a	Kangwon Land Inc.		Hotels, Restaurants & Leisure		501		11,200
	KB Financial Group Inc.		Banks		1,782		88,490
	KCC Corp.		Chemicals		24		5,036
	KEPCO Plant Service and Engineering Co. Ltd.		Commercial Services & Supplies		84		2,338
	Kia Motors Corp.		Automobiles		1,188		87,020
	Korea Aerospace Industries Ltd.		Aerospace & Defense		288		9,352
	Korea Electric Power Corp.		Electric Utilities		1,200		24,546
a	Korea Gas Corp.		Gas Utilities		114		3,395
	Korea Investment Holdings Co. Ltd.		Capital Markets		180		13,614
a	Korea Shipbuilding & Offshore Engineering Co Ltd.		Machinery		195		23,002
	Korea Zinc Co. Ltd.		Metals & Mining		45		16,243
a	Korean Air Lines Co. Ltd.		Airlines		807		19,395
a	KT&G Corp.		Tobacco		498		35,818
a	Kumho Petrochemical Co. Ltd.		Chemicals		78		18,264
	LG Chem Ltd.		Chemicals		210		149,370
	LG Corp.		Industrial Conglomerates		414		33,069
a	LG Display Co. Ltd.		Electronic Equipment, Instruments & Components		1,065		21,408
	LG Electronics Inc.		Household Durables		495		65,606
	LG Household & Health Care Ltd.		Personal Products		42		58,264
	LG Innotek Co. Ltd.		Electronic Equipment, Instruments & Components		66		11,984
	LG Uplus Corp.		Diversified Telecommunication Services		999		10,813
	Lotte Chemical Corp.		Chemicals		69		18,351
	Lotte Chilsung Beverage Co. Ltd.		Beverages		18		2,171
	Lotte Corp.		Industrial Conglomerates		114		3,425
	LOTTE Fine Chemical Co. Ltd.		Chemicals		81		4,201
	Lotte Shopping Co. Ltd.		Multiline Retail		48		5,344
	LS Corp.		Electrical Equipment		81		4,903
a	Mando Corp.		Auto Components		147		8,547
	Medytox Inc.		Biotechnology		21		3,500
	Mirae Asset Daewoo Co. Ltd.		Capital Markets		753		2,961
	Mirae Asset Daewood Co. Ltd.		Capital Markets		1,638		14,271
	Naver Corp.		Interactive Media & Services		612		203,865
	NCSoft Corp.		Entertainment		75		57,853
	Netmarble Corp		Entertainment		81		9,233
	NH Investment & Securities Co. Ltd.		Capital Markets		582		5,991
a	NHN Corp.		Entertainment		45		2,883
	Nongshim Co. Ltd.		Food Products		15		3,757
a	OCI Co. Ltd.		Chemicals		81		8,696
	Orion Corp.		Food Products		102		11,806
	Ottogi Corp.		Food Products		6		3,022



170	Annual Report	franklintempleton.com

FRANKLIN TEMPLETON ETF TRUST

STATEMENT OF INVESTMENTS

Franklin FTSE Asia ex Japan ETF (continued)



		Industry		Shares		Value
	Common Stocks and Other Equity Interests (continued)
	South Korea (continued)
a	Paradise Co. Ltd.		Hotels, Restaurants & Leisure		204	$	3,001
	POSCO		Metals & Mining		306		86,521
	POSCO Chemical Co. Ltd.		Construction Materials		126		17,256
	Posco International Corp.		Trading Companies & Distributors		252		4,487
	S-1 Corp.		Commercial Services & Supplies		81		5,847
a	S-Oil Corp.		Oil, Gas & Consumable Fuels		201		14,421
a	Samsung Biologics Co. Ltd.		Life Sciences Tools & Services		63		41,638
	Samsung C&T Corp.		Industrial Conglomerates		390		42,903
	Samsung Card Co. Ltd.		Consumer Finance		159		4,840
	Samsung Electro-Mechanics Co. Ltd.		Electronic Equipment, Instruments & Components		255		42,247
	Samsung Electronics Co. Ltd.		Technology Hardware, Storage & Peripherals		21,795		1,567,584
a	Samsung Engineering Co. Ltd.		Construction & Engineering		729		9,018
	Samsung Fire & Marine Insurance Co. Ltd.		Insurance		153		25,686
a	Samsung Heavy Industries Co. Ltd.		Machinery		2,088		14,335
	Samsung Life Insurance Co. Ltd.		Insurance		303		20,909
	Samsung SDI Co. Ltd.		Electronic Equipment, Instruments & Components		240		139,960
	Samsung SDS Co. Ltd.		IT Services		150		25,646
	Samsung Securities Co. Ltd.		Capital Markets		300		10,457
	Seegene Inc.		Biotechnology		69		7,932
	Shin Poong Pharmaceutical Co. Ltd.		Pharmaceuticals		159		11,956
a	Shinhan Financial Group Co. Ltd.		Banks		2,298		76,042
	Shinsegae Co. Ltd.		Multiline Retail		30		7,449
a,d	SillaJen Inc.		Biotechnology		196		2,096
a	SK Biopharmaceuticals Co. Ltd.		Pharmaceuticals		117		10,648
	SK Chemicals Co. Ltd.		Chemicals		42		9,296
	SK Holdings Co. Ltd.		Industrial Conglomerates		147		36,628
	SK Hynix Inc.		Semiconductors & Semiconductor Equipment		2,400		280,981
a	SK Innovation Co. Ltd.		Oil, Gas & Consumable Fuels		252		48,763
	SK Networks Co. Ltd.		Trading Companies & Distributors		624		3,104
	SK Telecom Co. Ltd.		Wireless Telecommunication Services		120		29,158
	SKC Co. Ltd.		Chemicals		90		10,219
	Ssangyong Cement Industrial Co. Ltd.		Construction Materials		558		3,787
a	Woori Financial Group Inc.		Banks		2,385		21,284
	Yuhan Corp.		Pharmaceuticals		229		12,747


							4,760,951

	Taiwan 15.4%
	Accton Technology Corp.		Communications Equipment		2,400		23,215
	Acer Inc.		Technology Hardware, Storage & Peripherals		12,000		13,227
	Advantech Co. Ltd.		Technology Hardware, Storage & Peripherals		1,950		24,193
	ASE Industrial Holding Co. Ltd.		Semiconductors & Semiconductor Equipment		16,000		60,281
	Asia Cement Corp.		Construction Materials		12,000		20,103
	ASMedia Technology Inc.		Semiconductors & Semiconductor Equipment		150		7,833
	Asustek Computer Inc.		Technology Hardware, Storage & Peripherals		3,000		39,165
a	AU Optronics Corp.		Electronic Equipment, Instruments & Components		42,000		30,985
	Capital Securities Corp.		Capital Markets		9,000		4,921
	Catcher Technology Co. Ltd.		Technology Hardware, Storage & Peripherals		3,720		27,574
	Cathay Financial Holding Co. Ltd.		Insurance		39,000		65,540
	Chailease Holding Co. Ltd.		Diversified Financial Services		6,000		41,426
	Chang Hwa Commercial Bank Ltd.		Banks		30,000		18,452
	Cheng Shin Rubber Industry Co. Ltd.		Auto Components		9,000		15,203
	Chicony Electronics Co. Ltd.		Technology Hardware, Storage & Peripherals		3,000		10,672
a	China Airlines Ltd.		Airlines		12,000		6,414
	China Development Financial Holding Corp.		Insurance		66,000		24,288
	China Life Insurance Co. Ltd.		Insurance		9,600		8,664
a,d	China Motor Corp.		Automobiles		800		1,859



franklintempleton.com	Annual Report	171

FRANKLIN TEMPLETON ETF TRUST

STATEMENT OF INVESTMENTS

Franklin FTSE Asia ex Japan ETF (continued)



		Industry		Shares		Value
	Common Stocks and Other Equity Interests (continued)
	Taiwan (continued)
	China Steel Corp.		Metals & Mining		57,000	$	51,740
	Chunghwa Telecom Co. Ltd.		Diversified Telecommunication Services		18,000		70,340
	Compal Electronics Inc.		Technology Hardware, Storage & Peripherals		18,000		16,844
	CTBC Financial Holding Co. Ltd.		Banks		84,000		65,061
	Delta Electronics Inc.		Electronic Equipment, Instruments & Components		10,000		100,936
	E.Sun Financial Holding Co. Ltd.		Banks		57,000		52,140
	Eclat Textile Co. Ltd.		Textiles, Apparel & Luxury Goods		960		16,150
a	ENNOSTAR Inc.		Semiconductors & Semiconductor Equipment		3,500		10,071
	Eternal Materials Co. Ltd.		Chemicals		3,000		3,780
	EVA Airways Corp.		Airlines		12,000		6,603
a	Evergreen Marine Corp. Taiwan Ltd.		Marine		12,000		19,136
	Far Eastern International Bank		Banks		9,000		3,375
	Far Eastern New Century Corp.		Industrial Conglomerates		18,000		19,052
	Far EasTone Telecommunications Co. Ltd.		Wireless Telecommunication Services		8,000		17,972
	Feng Tay Enterprise Co. Ltd.		Textiles, Apparel & Luxury Goods		1,980		13,532
	First Financial Holding Co. Ltd.		Banks		47,020		36,584
a	FIT Hon Teng Ltd.		Electronic Equipment, Instruments & Components		6,000		1,883
	Formosa Chemicals & Fibre Corp.		Chemicals		16,000		49,122
	Formosa Petrochemical Corp.		Oil, Gas & Consumable Fuels		6,000		20,355
	Formosa Plastics Corp.		Chemicals		22,500		79,645
	Formosa Taffeta Co. Ltd.		Textiles, Apparel & Luxury Goods		6,000		6,477
	Foxconn Technology Co. Ltd.		Electronic Equipment, Instruments & Components		6,000		15,266
	Fubon Financial Holding Co. Ltd.		Insurance		33,000		65,692
	Genius Electronic Optical Co. Ltd.		Electronic Equipment, Instruments & Components		390		6,615
	Giant Manufacturing Co. Ltd.		Leisure Products		1,000		12,056
	Globalwafers Co. Ltd.		Semiconductors & Semiconductor Equipment		1,050		27,600
	Hiwin Technologies Corp.		Machinery		1,200		16,928
	Hon Hai Precision Industry Co. Ltd.		Electronic Equipment, Instruments & Components		55,000		239,021
	Hotai Motor Co. Ltd.		Specialty Retail		1,500		30,912
a	HTC Corp.		Technology Hardware, Storage & Peripherals		3,000		3,244
	Hua Nan Financial Holdings Co. Ltd.		Banks		45,000		29,413
	Innolux Corp.		Electronic Equipment, Instruments & Components		39,000		28,840
	Inventec Corp.		Technology Hardware, Storage & Peripherals		15,000		14,194
	Largan Precision Co. Ltd.		Electronic Equipment, Instruments & Components		480		54,001
	Lite-On Technology Corp.		Technology Hardware, Storage & Peripherals		9,000		19,809
	MediaTek Inc.		Semiconductors & Semiconductor Equipment		6,900		234,329
	Mega Financial Holding Co. Ltd.		Banks		51,000		57,018
	Micro-Star International Co. Ltd.		Technology Hardware, Storage & Peripherals		3,000		18,295
	momo.com Inc.		Internet & Direct Marketing Retail		210		7,286
	Nan Ya Plastics Corp.		Chemicals		27,000		75,513
	Nan Ya Printed Circuit Board Corp.		Electronic Equipment, Instruments & Components		1,000		12,407
	Nanya Technology Corp.		Semiconductors & Semiconductor Equipment		3,000		9,662
	Nien Made Enterprise Co. Ltd.		Household Durables		660		9,206
	Novatek Microelectronics Corp. Ltd.		Semiconductors & Semiconductor Equipment		2,700		54,411
a	Oneness Biotech Co. Ltd.		Pharmaceuticals		1,200		11,124
	Parade Technologies Ltd.		Semiconductors & Semiconductor Equipment		318		13,653
	Pegatron Corp.		Technology Hardware, Storage & Peripherals		9,000		23,373
	Pou Chen Corp.		Textiles, Apparel & Luxury Goods		12,000		13,879
	Powertech Technology Inc.		Semiconductors & Semiconductor Equipment		3,000		11,092
	President Chain Store Corp.		Food & Staples Retailing		3,000		28,598
	Quanta Computer Inc.		Technology Hardware, Storage & Peripherals		12,000		41,215
	Realtek Semiconductor Corp.		Semiconductors & Semiconductor Equipment		2,400		41,552
	Shin Kong Financial Holding Co. Ltd.		Insurance		57,000		18,279
	Sino-American Silicon Products Inc.		Semiconductors & Semiconductor Equipment		2,000		11,846
	SinoPac Financial Holdings Co. Ltd.		Banks		51,000		22,968
	Synnex Technology International Corp.		Electronic Equipment, Instruments & Components		6,000		11,460
	Taishin Financial Holding Co. Ltd.		Banks		48,000		22,542
	Taiwan Business Bank		Banks		24,000		8,378



172	Annual Report	franklintempleton.com

FRANKLIN TEMPLETON ETF TRUST

STATEMENT OF INVESTMENTS

Franklin FTSE Asia ex Japan ETF (continued)



		Industry		Shares		Value
	Common Stocks and Other Equity Interests (continued)
	Taiwan (continued)
	Taiwan Cement Corp.		Construction Materials		24,000	$	39,365
	Taiwan Cooperative Financial Holding Co. Ltd.		Banks		45,000		33,356
	Taiwan Fertilizer Co. Ltd.		Chemicals		3,000		5,940
a	Taiwan Glass Industry Corp.		Building Products		6,000		4,185
	Taiwan High Speed Rail Corp.		Transportation Infrastructure		9,000		9,920
	Taiwan Mobile Co. Ltd.		Wireless Telecommunication Services		7,500		25,812
	Taiwan Secom Co. Ltd.		Commercial Services & Supplies		1,000		3,270
	Taiwan Semiconductor Manufacturing Co. Ltd.		Semiconductors & Semiconductor Equipment		111,250		2,288,710
	Teco Electric & Machinery Co. Ltd.		Electrical Equipment		9,000		10,204
	The Shanghai Commercial & Savings Bank Ltd.		Banks		15,000		22,053
a	TPK Holding Co. Ltd.		Electronic Equipment, Instruments & Components		1,000		1,759
	Transcend Information Inc.		Technology Hardware, Storage & Peripherals		1,000		2,289
	U-Ming Marine Transport Corp.		Marine		3,000		4,342
	Uni-President Enterprises Corp.		Food Products		23,000		58,844
	Unimicron Technology Corp.		Electronic Equipment, Instruments & Components		6,000		19,241
	United Microelectronics Corp.		Semiconductors & Semiconductor Equipment		54,000		95,006
	Vanguard International Semiconductor Corp.		Semiconductors & Semiconductor Equipment		4,000		15,140
	Walsin Lihwa Corp.		Electrical Equipment		15,000		9,988
	Walsin Technology Corp.		Electronic Equipment, Instruments & Components		2,100		18,363
	Wan Hai Lines Ltd.		Marine		3,000		5,793
	Win Semiconductors Corp.		Semiconductors & Semiconductor Equipment		1,920		26,311
	Winbond Electronics Corp.		Semiconductors & Semiconductor Equipment		15,000		15,508
	Wistron Corp.		Technology Hardware, Storage & Peripherals		12,000		14,089
	Wiwynn Corp.		Technology Hardware, Storage & Peripherals		390		11,522
	Yageo Corp.		Electronic Equipment, Instruments & Components		2,100		40,700
	Yuanta Financial Holding Co. Ltd.		Diversified Financial Services		54,000		42,582
a	Yulon Motor Co. Ltd.		Automobiles		3,271		5,050
	Zhen Ding Technology Holding Ltd.		Electronic Equipment, Instruments & Components		3,000		12,669


							5,268,501

	Thailand 2.3%
	Advanced Info Service PCL		Wireless Telecommunication Services		5,100		28,315
	Airports of Thailand Public Co. Ltd., NVDR		Transportation Infrastructure		19,800		43,719
	Asset World Corp PCL		Hotels, Restaurants & Leisure		30,900		5,043
	B Grimm Power PCL, NVDR		Independent Power and Renewable Electricity Producers		3,600		5,270
	Bangkok Bank PCL, fgn.		Banks		2,700		10,886
	Bangkok Bank PCL, NVDR		Banks		1,200		4,838
	Bangkok Dusit Medical Services PCL		Health Care Providers & Services		41,100		28,408
	Bangkok Expressway and Metro PCL, NVDR		Transportation Infrastructure		35,400		9,912
	Bangkok Life Assurance PCL, NVDR		Insurance		2,100		1,747
	Banpu PCL, NVDR		Oil, Gas & Consumable Fuels		19,200		7,742
	Berli Jucker PCL, NVDR		Food & Staples Retailing		3,300		4,145
	BTS Group Holdings PCL, NVDR		Road & Rail		38,400		11,858
	Bumrungrad Hospital PCL		Health Care Providers & Services		1,800		7,834
	Carabao Group PCL		Beverages		1,200		4,954
	Central Pattana PCL		Real Estate Management & Development		11,400		21,250
	Central Retail Corp. PCL		Multiline Retail		12,600		15,019
	Charoen Pokphand Foods PCL, NVDR		Food Products		17,100		16,142
	CP ALL PCL		Food & Staples Retailing		23,700		52,519
	Delta Electronics Thailand PCL		Electronic Equipment, Instruments & Components		1,200		11,136
	Digital Telecommunications Infrastructure Fund, fgn.		Diversified Financial Services		25,500		9,792
	Electricity Generating PCL		Independent Power and Renewable Electricity Producers		1,200		7,123
	Energy Absolute PCL, NVDR		Independent Power and Renewable Electricity Producers		8,100		16,070



franklintempleton.com	Annual Report	173

FRANKLIN TEMPLETON ETF TRUST

STATEMENT OF INVESTMENTS

Franklin FTSE Asia ex Japan ETF (continued)



		Industry		Shares		Value
	Common Stocks and Other Equity Interests (continued)
	Thailand (continued)
	Global Power Synergy PCL		Independent Power and Renewable Electricity Producers		3,000	$	7,392
	Gulf Energy Development PCL, NVDR		Independent Power and Renewable Electricity Producers		19,600		21,011
	Home Product Center PCL, NVDR		Specialty Retail		27,000		12,787
	Indorama Ventures PCL, NVDR		Chemicals		8,400		11,962
	Intouch Holdings PCL		Wireless Telecommunication Services		10,200		18,931
	IRPC PCL		Oil, Gas & Consumable Fuels		47,100		5,607
	Kasikornbank PCL, fgn.		Banks		5,700		26,631
	Kasikornbank PCL, NVDR		Banks		3,000		13,920
	Krung Thai Bank PCL		Banks		29,400		11,478
	Krungthai Card PCL, NVDR		Consumer Finance		6,000		15,168
	Land and Houses PCL, NVDR		Real Estate Management & Development		29,700		8,126
	Minor International PCL		Hotels, Restaurants & Leisure		18,000		18,720
	Muangthai Capital PCL		Consumer Finance		3,000		6,792
	Osotspa PCL, NVDR		Beverages		5,400		6,091
	PTT Exploration and Production PCL, NVDR		Oil, Gas & Consumable Fuels		6,300		22,983
	PTT Global Chemical PCL, NVDR		Chemicals		9,300		18,675
	PTT PCL		Oil, Gas & Consumable Fuels		66,000		86,592
	Ratch Group PCL, NVDR		Independent Power and Renewable Electricity Producers		3,900		6,396
	Siam City Cement PCL, NVDR		Construction Materials		300		1,594
	Siam Commercial Bank PCL		Banks		11,400		40,675
	Siam Makro Public Company Ltd.		Food & Staples Retailing		1,500		1,824
	Sri Trang Gloves Thailand PCL, NVDR		Health Care Equipment & Supplies		4,200		5,510
	Srisawad Corp. PCL		Consumer Finance		3,300		9,002
	Thai Oil PCL		Oil, Gas & Consumable Fuels		4,800		9,331
	Thai Union Group PCL		Food Products		12,900		6,068
	The Siam Cement PCL		Construction Materials		3,900		49,795
	TMB Bank PCL		Banks		222,000		8,738
	Total Access Communication PCL		Wireless Telecommunication Services		3,600		3,773
	True Corporation PCL, NVDR		Diversified Telecommunication Services		46,500		5,059


							784,353

	Total Common Stocks and Other Equity Interests (Cost $30,175,646)						33,889,429

	Preferred Stocks 0.9%
	South Korea 0.9%
f	Amorepacific Corp., 0.964%, pfd.		Personal Products		45		3,320
f	CJ CheilJedang Corp., 2.201%, pfd.		Food Products		6		975
f	Hyundai Motor Co., 3.163%, pfd.		Automobiles		165		14,288
f	Hyundai Motor Co., 3.050%, pfd.		Automobiles		99		8,747
f	LG Chem Ltd., 2.617%, pfd.		Chemicals		36		12,215
f	LG Electronics Inc., 1.773%, pfd.		Household Durables		81		5,046
f	LG Household & Health Care Ltd., 1.613%, pfd.		Personal Products		9		5,447
f	Samsung Electronics Co. Ltd., 4.103%, pfd.		Technology Hardware, Storage & Peripherals		3,846		248,074
f	Samsung Fire & Marine Insurance Co. Ltd., 5.969%, pfd.		Insurance		12		1,564
f	Samsung SDI Co. Ltd., 0.233%, pfd.		Electronic Equipment, Instruments & Components		6		2,391

	Total Preferred Stocks (Cost $233,548)						302,067

	Total Investments before Short Term Investments (Cost $30,409,194)						34,191,496



174	Annual Report	franklintempleton.com

FRANKLIN TEMPLETON ETF TRUST

STATEMENT OF INVESTMENTS

Franklin FTSE Asia ex Japan ETF (continued)

Industry

Shares

Value

Short Term Investments 0.2%

Investments from Cash Collateral Received for Loaned Securities 0.2%

United States 0.2%

Institutional Fiduciary Trust Portfolio, 0.01%

Money Market Funds

58,810

Total Investments (Cost $30,468,004) 99.8%

34,250,306

Other Assets, less Liabilities 0.2%

66,270

Net Assets 100.0%

34,316,576

See Abbreviations on page 355.

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

^aNon-income producing.

^dFair valued using significant unobservable inputs. See Note 9 regarding fair value measurements.

^eA portion or all of the security is on loan at March 31, 2021.

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

At March 31, 2021, 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

178,440

6/18/21

(8,013

)

*As of period end.

See Note 8 regarding other derivative information.



franklintempleton.com	The accompanying notes are an integral part of these financial statements. \| Annual Report	175

FRANKLIN TEMPLETON ETF TRUST

Financial Highlights

Franklin FTSE Australia ETF



	Year Ended March 31,

	2021			2020			2019			2018^a

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

Net asset value, beginning of year	$	17.38		$	24.63		$	24.67		$	25.23


Income from investment operations^b:

Net investment income^c		0.81			1.07			1.29			0.52

Net realized and unrealized gains (losses)		11.55			(7.18	)		(0.37	)		(1.03	)


Total from investment operations		12.36			(6.11	)		0.92			(0.51	)


Less distributions from net investment income		(0.62	)		(1.14	)		(0.96	)		(0.05	)


Net asset value, end of year	$	29.12		$	17.38		$	24.63		$	24.67


Total return^d		71.72%			(26.23)%			4.00%			(2.05)%

Ratios to average net assets^e

Total expenses		0.09%			0.09%			0.09%			0.09%

Net investment income		3.25%			4.28%			5.30%			4.96%

Supplemental data

Net assets, end of year (000’s)		$23,295			$7,820			$7,389			$2,467

Portfolio turnover rate^f		6.98%^g			8.16%^g			4.56%			1.63%

^aFor the period November 2, 2017 (commencement of operations) to March 31, 2018.

^cBased on average daily shares outstanding.

^eRatios are annualized for periods less than one year.

^fPortfolio turnover rate includes portfolio transactions that are executed as a result of the Fund offering and redeeming Creation Units solely for cash (“Cash creations”).

^gPortfolio turnover rate excluding cash creations was as follows:

6.98%

8.16%



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

FRANKLIN TEMPLETON ETF TRUST

Statement of Investments, March 31, 2021

Franklin FTSE Australia ETF



		Industry			Shares		Value
	Common Stocks 99.8%
	Australia 97.3%
	Adbri Ltd.		Construction Materials			8,224	$	21,798
a	Afterpay Ltd.		IT Services			3,968		306,756
	AGL Energy Ltd.		Multi-Utilities			11,408		83,848
	ALS Ltd.		Professional Services			8,720		64,291
	Altium Ltd.		Software			1,952		39,354
	Alumina Ltd.		Metals & Mining			45,424		60,199
	AMP Ltd.		Diversified Financial Services			61,968		59,705
	Ampol Ltd.		Oil, Gas & Consumable Fuels			4,288		80,179
	Ansell Ltd.		Health Care Equipment & Supplies			2,336		69,816
	Apa Group		Gas Utilities			21,200		161,793
	Appen Ltd.		IT Services			1,984		23,921
	Aristocrat Leisure Ltd.		Hotels, Restaurants & Leisure			11,504		300,975
	Atlas Arteria Ltd.		Transportation Infrastructure			17,408		78,890
	Aurizon Holdings Ltd.		Road & Rail			32,032		95,149
	AusNet Services		Electric Utilities			33,152		46,334
	Australia & New Zealand Banking Group Ltd.		Banks			51,184		1,098,577
	Australian Stock Exchange Ltd.		Capital Markets			3,504		189,620
	Bank of Queensland Ltd.		Banks			11,488		75,686
	Beach Energy Ltd.		Oil, Gas & Consumable Fuels			32,016		41,820
	Bendigo and Adelaide Bank Ltd.		Banks			9,600		73,557
	BHP Group Ltd.		Metals & Mining			53,168		1,834,442
	Bluescope Steel Ltd.		Metals & Mining			9,008		132,759
a	Boral Ltd.		Construction Materials			22,160		92,661
	Brambles Ltd.		Commercial Services & Supplies			26,528		213,769
	carsales.com Ltd.		Interactive Media & Services			3,888		52,741
	Challenger Ltd.		Diversified Financial Services			12,080		58,885
	Charter Hall Group		Equity Real Estate Investment Trusts (REITs	)		8,432		82,718
a	Cimic Group Ltd.Cimic Group Ltd.Cimic Group Ltd.		Construction & Engineering			1,728		23,151
	Cleanaway Waste Management Ltd.		Commercial Services & Supplies			24,512		41,073
	Coca-Cola Amatil Ltd.		Beverages			9,248		94,597
	Cochlear Ltd.		Health Care Equipment & Supplies			1,152		185,110
	Coles Group Ltd.		Food & Staples Retailing			22,880		278,999
	Commonwealth Bank of Australia		Banks			31,952		2,095,350
a	Computershare Ltd.		IT Services			984		11,122
	Computershare Ltd.		IT Services			8,653		99,122
a	Crown Resorts Ltd.		Hotels, Restaurants & Leisure			6,304		56,465
	CSL Ltd.		Biotechnology			8,176		1,648,042
	CSR Ltd.		Construction Materials			8,768		38,600
	Deterra Royalties Ltd.		Metals & Mining			7,600		22,691
	Dexus		Equity Real Estate Investment Trusts (REITs	)		19,600		145,551
a	Domain Holdings Australia Ltd.		Interactive Media & Services			4,144		13,256
	Domino’s Pizza Enterprises Ltd.		Hotels, Restaurants & Leisure			1,104		80,933
	Downer EDI Ltd.		Commercial Services & Supplies			12,720		49,700
	Evolution Mining Ltd.		Metals & Mining			29,120		90,491
a	Flight Centre Travel Group Ltd.		Hotels, Restaurants & Leisure			2,608		35,735
	Fortescue Metals Group Ltd.		Metals & Mining			28,704		437,029
	Goodman Group		Equity Real Estate Investment Trusts (REITs	)		32,720		451,572
	GPT Group		Equity Real Estate Investment Trusts (REITs	)		35,376		123,943
	Harvey Norman Holdings Ltd.		Multiline Retail			10,752		46,925
	IDP Education Ltd.		Diversified Consumer Services			2,528		45,980
	IGO Ltd.		Metals & Mining			11,056		52,883
	Iluka Resources Ltd.		Metals & Mining			7,584		41,648
a	Incitec Pivot Ltd.		Chemicals			35,184		77,982
	Insurance Australia Group Ltd.		Insurance			44,288		157,866
	IOOF Holdings Ltd.		Capital Markets			11,536		30,928
	James Hardie Industries PLC, CDI		Construction Materials			7,984		242,268
	JB Hi-Fi Ltd.		Specialty Retail			2,048		80,770
	Lendlease Crop. Ltd.		Real Estate Management & Development			12,320		121,235



franklintempleton.com	Annual Report	177

FRANKLIN TEMPLETON ETF TRUST

STATEMENT OF INVESTMENTS

Franklin FTSE Australia ETF (continued)



		Industry			Shares		Value
	Common Stocks (continued)
	Australia (continued)
	Macquarie Group Ltd.		Capital Markets			5,904	$	687,243
	Magellan Financial Group Ltd.		Capital Markets			2,448		84,220
	Medibank Private Ltd.Medibank Private Ltd.Medibank Private Ltd.		Insurance			50,016		106,665
	Metcash Ltd.		Food & Staples Retailing			18,464		51,752
	Mineral Resources Ltd.		Metals & Mining			2,528		73,206
	Mirvac Group		Equity Real Estate Investment Trusts (REITs	)		70,480		134,203
	National Australia Bank Ltd.		Banks			59,360		1,175,500
	Newcrest Mining Ltd.		Metals & Mining			14,720		273,785
a	NEXTDC Ltd.		IT Services			8,224		65,269
	Northern Star Resources Ltd.		Metals & Mining			20,272		146,373
a	Nufarm Ltd.		Chemicals			5,712		23,101
	Oil Search Ltd.		Oil, Gas & Consumable Fuels			37,200		116,167
	Orica Ltd.		Chemicals			7,344		78,030
	Origin Energy Ltd.		Oil, Gas & Consumable Fuels			31,888		113,908
	Orora Ltd.		Containers & Packaging			16,416		38,010
	OZ Minerals Ltd.		Metals & Mining			5,776		100,480
	Perpetual Ltd.		Capital Markets			1,024		25,730
	Platinum Asset Management Ltd.		Capital Markets			5,392		20,534
a	Qantas Airways Ltd.		Airlines			13,360		51,794
	QBE Insurance Group Ltd.		Insurance			26,208		192,028
	Qube Logistics Holdings Ltd.		Transportation Infrastructure			26,336		59,976
	Ramsay Health Care Ltd.		Health Care Providers & Services			3,168		161,665
	REA Group Ltd.		Interactive Media & Services			896		96,729
	Reece Ltd.		Trading Companies & Distributors			4,720		61,618
	Rio Tinto Ltd.		Metals & Mining			6,704		565,501
	Santos Ltd.		Oil, Gas & Consumable Fuels			33,808		182,824
	Scentre Group		Equity Real Estate Investment Trusts (REITs	)		93,440		200,695
a	Seek Ltd.		Interactive Media & Services			6,304		136,889
	Seven Group Holdings Ltd.		Trading Companies & Distributors			2,400		41,221
	Shopping Centres Australasia Property Group		Equity Real Estate Investment Trusts (REITs	)		19,456		37,195
	Sonic Healthcare Ltd.		Health Care Providers & Services			8,544		228,350
	South32 Ltd.		Metals & Mining			86,224		184,540
	Stockland		Equity Real Estate Investment Trusts (REITs	)		42,784		143,380
	Suncorp-Metway Ltd.		Insurance			23,040		173,729
a	Sydney Airport		Transportation Infrastructure			24,016		113,226
	Tabcorp Holdings Ltd.		Hotels, Restaurants & Leisure			37,216		132,657
	Telstra Corp. Ltd.		Diversified Telecommunication Services			74,896		193,951
a	The Star Entertainment Group Ltd.		Hotels, Restaurants & Leisure			15,424		44,524
	TPG Telecom Limited		Diversified Telecommunication Services			6,624		31,936
	Transurban Group		Transportation Infrastructure			49,312		500,279
	Treasury Wine Estates Ltd.		Beverages			13,088		103,174
	Vicinity Centres		Equity Real Estate Investment Trusts (REITs	)		68,064		85,797
a	Vocus Group Ltd.		Diversified Telecommunication Services			10,832		44,964
	Washington H Soul Pattinson & Co. Ltd.		Oil, Gas & Consumable Fuels			1,648		39,639
	Wesfarmers Ltd.		Multiline Retail			20,432		819,652
	Westpac Banking Corp.		Banks			66,144		1,229,741
a	Whitehaven Coal Ltd.		Oil, Gas & Consumable Fuels			15,408		20,713
	Wisetech Global Ltd.		Software			1,536		33,985
	Woodside Petroleum Ltd.		Oil, Gas & Consumable Fuels			17,168		313,824
	Woolworths Group Ltd.		Food & Staples Retailing			22,800		709,733
	Worley Ltd.		Energy Equipment & Services			5,840		46,660


								22,658,025

	New Zealand 0.9%
a	Xero Ltd.		Software			2,224		214,330



178	Annual Report	franklintempleton.com

FRANKLIN TEMPLETON ETF TRUST

STATEMENT OF INVESTMENTS

Franklin FTSE Australia ETF (continued)

Industry

Shares

Value

Common Stocks (continued)

United Kingdom 1.4%

Amcor PLC, IDR

Containers & Packaging

28,240

331,024

United States 0.2%

Sims Ltd.

Metals & Mining

2,992

33,818

Rights 0.0%^†

Australia 0.0%^†

Computershare Ltd., rts., 4/19/21

IT Services

983

1,139

Total Investments (Cost $20,754,361) 99.8%

23,238,336

Other Assets, less Liabilities 0.2%

56,733

Net Assets 100.0%

23,295,069

See Abbreviations on page 355.

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

^aNon-income producing.



franklintempleton.com	The accompanying notes are an integral part of these financial statements. \| Annual Report	179

FRANKLIN TEMPLETON ETF TRUST

Financial Highlights

Franklin FTSE Brazil ETF



	Year Ended March 31,

	2021			2020			2019			2018^a

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

Net asset value, beginning of year	$	14.46		$	25.72		$	27.87		$	24.37


Income from investment operations^b:

Net investment income^c		0.46			1.07			0.80			0.50

Net realized and unrealized gains (losses)		6.31			(11.33	)		(2.07	)		3.11


Total from investment operations		6.77			(10.26	)		(1.27	)		3.61


Less distributions from net investment income		(0.53	)		(1.00	)		(0.88	)		(0.11	)


Net asset value, end of year	$	20.70		$	14.46		$	25.72		$	27.87


Total return^d		46.83%			(41.69)%			(3.98)%			14.86%

Ratios to average net assets^e

Total expenses		0.19%			0.23%			0.19%			0.19%

Net investment income		2.43%			4.26%			3.37%			4.53%

Supplemental data

Net assets, end of year (000’s)		$107,656			$102,700			$20,579			$44,593

Portfolio turnover rate^f		21.01%^g			36.07%^g			39.76%			4.79%

^aFor the period November 3, 2017 (commencement of operations) to March 31, 2018.

^cBased on average daily shares outstanding.

^eRatios are annualized for periods less than one year, except for non-recurring expenses, if any.

^fPortfolio turnover rate includes portfolio transactions that are executed as a result of the Fund offering and redeeming Creation Units solely for cash (“Cash creations”).

^gPortfolio turnover rate excluding cash creations was as follows:

9.31%

17.47%



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

FRANKLIN TEMPLETON ETF TRUST

Statement of Investments, March 31, 2021

Franklin FTSE Brazil ETF



		Industry		Shares		Value
	Common Stocks 74.3%
	Brazil 73.0%
a	Aliansce Sonae Shopping Centers SA		Real Estate Management & Development		36,400	$	177,517
	Ambev SA		Beverages		1,206,420		3,268,857
	Atacadao Distribuicao Comercio e Industria Ltd.		Food & Staples Retailing		109,200		449,340
a	Azul SA		Airlines		78,000		523,179
a	B2W Cia Digital		Internet & Direct Marketing Retail		57,200		615,789
	B3 SA—Brasil Bolsa Balcao		Capital Markets		564,400		5,462,968
	Banco Bradesco SA		Banks		348,400		1,451,512
	Banco BTG Pactual SA		Capital Markets		65,000		1,117,889
	Banco do Brasil SA		Banks		239,204		1,290,761
	Banco Inter SA		Banks		28,900		268,514
	Banco Santander Brasil SA		Banks		104,000		729,825
	BB Seguridade Participacoes SA		Insurance		187,200		804,466
a	BR Malls Participacoes SA		Real Estate Management & Development		234,000		419,649
a	BRF SA		Food Products		176,800		790,164
	CCR SA		Transportation Infrastructure		306,800		702,438
	Centrais Eletricas Brasileiras SA		Electric Utilities		114,400		694,752
	Cia Brasileira de Distribuicao		Food & Staples Retailing		46,877		275,630
	Cia de Saneamento do Parana		Water Utilities		68,800		268,226
	Cia Siderurgica Nacional SA		Metals & Mining		176,800		1,187,439
	Cielo SA		IT Services		306,800		202,250
a	Cogna Educacao		Diversified Consumer Services		514,800		363,088
	Companhia de Locacao das Americas		Road & Rail		93,600		411,024
	Companhia de Saneamento Basico do Estado de Sao Paulo		Water Utilities		93,600		683,381
	Companhia Energetica de Minas Gerais		Electric Utilities		54,138		151,487
	Companhia Paranaense de Energia-Copel		Electric Utilities		57,200		70,955
	Cosan SA		Oil, Gas & Consumable Fuels		87,401		1,415,942
	CPFL Energia SA		Electric Utilities		52,000		280,319
	Cyrela Brazil Realty SA Empreendimentos e Participacoes		Household Durables		78,000		340,723
	Duratex SA		Paper & Forest Products		83,200		275,564
	EDP—Energias do Brasil SA		Electric Utilities		83,200		291,782
	Energisa SA		Electric Utilities		67,680		542,351
a	Eneva SA		Independent Power and Renewable Electricity Producers		187,200		554,003
	Engie Brasil Energia SA		Independent Power and Renewable Electricity Producers		46,800		346,915
	Equatorial Energia SA		Electric Utilities		249,600		1,096,948
	Ez Tec Empreendimentos e Participacoes SA		Household Durables		26,000		147,670
	Fleury SA		Health Care Providers & Services		67,600		306,674
	Grendene SA		Textiles, Apparel & Luxury Goods		72,800		101,917
	Guararapes Confeccoes SA		Textiles, Apparel & Luxury Goods		26,000		63,169
b,c	Hapvida Participacoes e Investimentos SA, 144A, Reg S		Health Care Providers & Services		291,200		767,864
	Hypera SA		Pharmaceuticals		109,200		619,826
	IRB Brasil Resseguros SA		Insurance		309,633		336,355
	Itau Unibanco Holding SA		Banks		124,800		555,330
a	Klabin SA		Containers & Packaging		88,400		432,836
	Localiza Rent a Car SA		Road & Rail		152,800		1,617,357
b	Locaweb Servicos de Internet SA, 144A		IT Services		109,200		442,180
	Lojas Americanas SA		Multiline Retail		78,841		290,607
	Lojas Renner SA		Multiline Retail		218,470		1,648,881
	M Dias Branco SA		Food Products		20,800		113,160
	Magazine Luiza SA		Multiline Retail		733,242		2,629,952
a	Marfrig Global Foods SA		Food Products		104,000		324,551
	Multiplan Empreendimentos Imobiliarios SA		Real Estate Management & Development		72,800		315,944



franklintempleton.com	Annual Report	181

FRANKLIN TEMPLETON ETF TRUST

STATEMENT OF INVESTMENTS

Franklin FTSE Brazil ETF (continued)



		Industry		Shares		Value
	Common Stocks (continued)
	Brazil (continued)
a	Natura & Co. Holding SA		Personal Products		232,016	$	1,979,311
	Neoenergia SA		Electric Utilities		67,600		199,458
	Notre Dame Intermedica Participacoes SA		Health Care Providers & Services		143,400		2,104,115
	Odontoprev SA		Health Care Providers & Services		72,800		169,647
	Petrobras Distribuidora SA		Specialty Retail		202,800		793,518
	Petroleo Brasileiro SA		Oil, Gas & Consumable Fuels		1,024,440		4,346,109
	Porto Seguro SA		Insurance		26,000		216,459
	Qualicorp Consultoria e Corretora de Seguros SA		Health Care Providers & Services		67,600		363,576
	Raia Drogasil SA		Food & Staples Retailing		317,203		1,408,667
b	Rede D’Or Sao Luiz SA, 144A		Health Care Providers & Services		41,600		478,514
a	Rumo SA		Road & Rail		348,460		1,250,455
	Sao Martinho SA		Food Products		46,800		245,984
a	Sendas Distribuidora SA		Food & Staples Retailing		46,877		613,397
	Sul America SA		Insurance		82,241		497,993
a	Suzano SA		Paper & Forest Products		200,972		2,441,366
	Telefonica Brasil SA		Diversified Telecommunication Services		124,800		978,186
	TIM SA		Wireless Telecommunication Services		223,600		502,040
	Totvs SA		Software		135,200		693,131
	Transmissora Alianca de Energia Eletrica SA		Electric Utilities		62,400		430,375
	Ultrapar Participacoes SA		Oil, Gas & Consumable Fuels		223,600		840,432
	Usinas Siderurgicas de Minas Gerais SA Usiminas		Metals & Mining		46,800		148,370
	Vale SA		Metals & Mining		912,000		15,833,535
a	Via Varejo SA		Specialty Retail		322,400		689,592
	WEG SA		Electrical Equipment		204,900		2,707,309
	YDUQS Participacoes SA		Diversified Consumer Services		83,200		393,810


							78,565,269

	United States 1.3%
	JBS SA		Food Products		270,400		1,450,951

	Total Common Stocks (Cost $93,458,376)						80,016,220

	Preferred Stocks 25.3%
	Brazil 25.3%
d	Alpargatas SA, 0.149%, pfd.		Textiles, Apparel & Luxury Goods		46,800		305,531
d	Banco Bradesco SA, 2.477%, pfd.		Banks		1,180,438		5,599,916
d	Banco Inter SA, 0.134%, pfd.		Banks		72,800		672,139
d	Bradespar SA, 2.932%, pfd.		Metals & Mining		62,400		755,368
a	Braskem SA, pfd., A		Chemicals		52,000		365,742
d	Centrais Eletricas Brasileiras SA, 9.671%, pfd.		Electric Utilities		78,000		481,159
d	Cia de Transmissao de Energia Eletrica Paulista, 13.193%, pfd.		Electric Utilities		52,000		233,415
d	Cia Energetica de Sao Paulo, 8.082%, pfd.		Independent Power and Renewable Electricity Producers		52,000		259,493
d	Companhia Energetica de Minas Gerais, 4.635%, pfd.		Electric Utilities		275,680		636,560
d	Companhia Paranaense de Energia, 43.478%, pfd.		Electric Utilities		280,800		354,794
d	Gerdau SA, 1.489%, pfd.		Metals & Mining		296,400		1,587,313
d	Itau Unibanco Holding SA, 1.949%, pfd.		Banks		1,331,200		6,598,204
d	Itausa SA, 2.490%, pfd.		Banks		1,248,060		2,282,470
d	Lojas Americanas SA, 0.957%, pfd.		Multiline Retail		218,419		865,470



182	Annual Report	franklintempleton.com

FRANKLIN TEMPLETON ETF TRUST

STATEMENT OF INVESTMENTS

Franklin FTSE Brazil ETF (continued)



		Industry		Shares		Value
	Preferred Stocks (continued)
	Brazil (continued)
d	Metalurgica Gerdau SA, 1.939%, pfd.		Metals & Mining		197,600	$	469,576
d	Petroleo Brasileiro SA, 0.004%, pfd.		Oil, Gas & Consumable Fuels		1,263,640		5,396,726
d	Usinas Siderurgicas de Minas Gerais SA Usiminas, 0.251%, pfd.		Metals & Mining		114,400		346,667

	Total Preferred Stocks (Cost $39,562,066)						27,210,543

	Total Investments (Cost $133,020,442) 99.6%						107,226,763
	Other Assets, less Liabilities 0.4%						429,643

	Net Assets 100.0%					$	107,656,406

See Abbreviations on page 355.

^aNon-income producing.

^cSecurity was purchased pursuant to Regulation S under the Securities Act of 1933, which exempts from registration securities offered and sold outside of the United States. Such a security cannot be sold in the United States without either an effective registration statement filed pursuant to the Securities Act of 1933, or pursuant to an exemption from registration. At March 31, 2021, the value of this security was $767,864, representing 0.7% of net assets.

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

At March 31, 2021, 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

104

429,536

4/14/21

13,374

*As of period end.

See Note 8 regarding other derivative information.



franklintempleton.com	The accompanying notes are an integral part of these financial statements. \| Annual Report	183

FRANKLIN TEMPLETON ETF TRUST

Financial Highlights

Franklin FTSE Canada ETF



	Year Ended March 31,

	2021			2020			2019			2018^a

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

Net asset value, beginning of year	$	19.50		$	24.13		$	23.77		$	24.80


Income from investment operations^b:

Net investment income^c		0.75			0.69			0.67			0.24

Net realized and unrealized gains (losses)		10.63			(4.72	)		0.33			(1.25	)


Total from investment operations		11.38			(4.03	)		1.00			(1.01	)


Less distributions from net investment income		(0.68	)		(0.60	)		(0.64	)		(0.02	)


Net asset value, end of year	$	30.20		$	19.50		$	24.13		$	23.77


Total return^d		59.10%			(17.25)%			4.48%			(4.06)%

Ratios to average net assets^e

Total expenses		0.09%			0.09%			0.09%			0.09%

Net investment income		2.88%			2.73%			2.79%			2.39%

Supplemental data

Net assets, end of year (000’s)		$24,160			$4,876			$4,827			$2,377

Portfolio turnover rate^f		3.14%^g			4.57%^g			6.95%			1.26%

^aFor the period November 2, 2017 (commencement of operations) to March 31, 2018.

^cBased on average daily shares outstanding.

^eRatios are annualized for periods less than one year.

^fPortfolio turnover rate includes portfolio transactions that are executed as a result of the Fund offering and redeeming Creation Units solely for cash (“Cash creations”).

^gPortfolio turnover rate excluding cash creations was as follows:

3.14%

4.57%



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

FRANKLIN TEMPLETON ETF TRUST

Statement of Investments, March 31, 2021

Franklin FTSE Canada ETF



		Industry		Shares		Value
	Common Stocks 99.9%
	Canada 97.4%
	Agnico Eagle Mines Ltd.		Metals & Mining		3,760	$	217,340
	Alimentation Couche-Tard Inc., B		Food & Staples Retailing		12,832		413,695
	Bank of Montreal		Banks		10,000		891,276
	Barrick Gold Corp.		Metals & Mining		27,584		547,137
	BCE Inc.		Diversified Telecommunication Services		4,704		212,323
	Brookfield Asset Management Inc., A		Capital Markets		20,816		925,818
	Canadian Imperial Bank of Commerce		Banks		6,960		681,408
	Canadian National Railway Co.		Road & Rail		11,104		1,288,465
	Canadian Natural Resources Ltd.		Oil, Gas & Consumable Fuels		18,048		557,875
	Canadian Pacific Railway Ltd.		Road & Rail		2,120		809,643
	Canadian Tire Corp. Ltd., A		Multiline Retail		880		124,860
	Canadian Utilities Ltd., A		Multi-Utilities		1,920		51,542
a	Canopy Growth Corp.		Pharmaceuticals		3,616		116,117
	Cenovus Energy Inc.		Oil, Gas & Consumable Fuels		19,648		147,573
a	CGI Inc., A		IT Services		3,488		290,507
	Constellation Software Inc.		Software		298		416,121
	Dollarama Inc.		Multiline Retail		4,512		199,313
	Enbridge Inc.		Oil, Gas & Consumable Fuels		31,616		1,151,594
	Fairfax Financial Holdings Ltd.		Insurance		424		185,054
	Fortis Inc.		Electric Utilities		7,232		313,769
	Franco-Nevada Corp.		Metals & Mining		2,912		364,889
	George Weston Ltd.		Food & Staples Retailing		1,120		99,163
	Great-West Lifeco Inc.		Insurance		4,208		111,959
	Hydro One Ltd.		Electric Utilities		4,912		114,393
	IGM Financial Inc.		Capital Markets		1,264		38,518
	Imperial Oil Ltd.		Oil, Gas & Consumable Fuels		3,504		84,864
	Intact Financial Corp.		Insurance		2,224		272,504
	Loblaw Cos. Ltd.		Food & Staples Retailing		2,528		141,199
	Magna International Inc.		Auto Components		4,304		379,016
	Manulife Financial Corp.		Insurance		30,256		650,690
	Metro Inc., A		Food & Staples Retailing		3,872		176,618
	National Bank of Canada		Banks		5,232		355,377
	Nutrien Ltd.		Chemicals		8,896		479,181
	Pembina Pipeline Corp.		Oil, Gas & Consumable Fuels		8,576		247,690
	Power Corp. of Canada		Insurance		8,528		224,116
	Restaurant Brands International Inc.		Hotels, Restaurants & Leisure		4,608		299,647
	Rogers Communications Inc., B		Wireless Telecommunication Services		5,472		252,299
	Royal Bank of Canada		Banks		22,256		2,051,798
	Saputo Inc.		Food Products		3,648		109,685
	Shaw Communications Inc.		Media		7,056		183,467
a	Shopify Inc., A		IT Services		1,732		1,911,946
	Sun Life Financial Inc.		Insurance		9,152		462,461
	Suncor Energy Inc.		Oil, Gas & Consumable Fuels		23,824		497,956
	TC Energy Corp.		Oil, Gas & Consumable Fuels		15,280		700,387
	Teck Resources Ltd., B		Metals & Mining		7,232		138,500
	TELUS Corp.		Diversified Telecommunication Services		6,576		130,960
	The Bank of Nova Scotia		Banks		18,880		1,181,005
	The Toronto-Dominion Bank		Banks		28,240		1,841,549
	Thomson Reuters Corp.		Professional Services		2,624		229,841
	Wheaton Precious Metals Corp.		Metals & Mining		6,992		267,029


							23,540,137



franklintempleton.com	Annual Report	185

FRANKLIN TEMPLETON ETF TRUST

STATEMENT OF INVESTMENTS

Franklin FTSE Canada ETF (continued)



		Industry		Shares		Value
	Common Stocks (continued)
	United States 2.5%
a	Bausch Health Cos. Inc.		Pharmaceuticals		4,848	$	153,789
	Waste Connections Inc.		Commercial Services & Supplies		4,112		444,195


							597,984

	Total Investments (Cost $22,039,750) 99.9%						24,138,121
	Other Assets, less Liabilities 0.1%						22,129

	Net Assets 100.0%					$	24,160,250

See Abbreviations on page 355.

^aNon-income producing.



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

FRANKLIN TEMPLETON ETF TRUST

Financial Highlights

Franklin FTSE China ETF



	Year Ended March 31,

	2021			2020			2019			2018^a

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

Net asset value, beginning of year	$	22.19		$	24.01		$	25.99		$	24.95


Income from investment operations^b:

Net investment income (loss)^c		0.32			0.45			0.40			(0.01	)

Net realized and unrealized gains (losses)		9.56			(1.78	)		(1.99	)		1.05


Total from investment operations		9.88			(1.33	)		(1.59	)		1.04


Less distributions from net investment income		(0.29	)		(0.49	)		(0.39	)		—^d


Net asset value, end of year	$	31.78		$	22.19		$	24.01		$	25.99


Total return^e		44.67%			(5.64)%			(5.94)%			4.17%

Ratios to average net assets^f

Expenses before waiver and payments by affiliates		0.19%			0.19%			0.19%			0.19%

Expenses net of waiver and payments by affiliates		0.19%			0.19%			—%			—%

Net investment income (loss)		1.06%			1.94%			1.70%			(0.12)%

Supplemental data

Net assets, end of year (000’s)		$120,782			$48,807			$43,220			$31,191

Portfolio turnover rate^g		15.97%^h			32.47%^h			7.21%			2.71%

^aFor the period November 2, 2017 (commencement of operations) to March 31, 2018.

^cBased on average daily shares outstanding.

^dAmount rounds to less than $0.01 per share.

^fRatios are annualized for periods less than one year.

^gPortfolio turnover rate includes portfolio transactions that are executed as a result of the Fund offering and redeeming Creation Units solely for cash (“Cash creations”).

^hPortfolio turnover rate excluding cash creations was as follows:

15.31%

32.47%



franklintempleton.com	The accompanying notes are an integral part of these financial statements. \| Annual Report	187

FRANKLIN TEMPLETON ETF TRUST

Statement of Investments, March 31, 2021

Franklin FTSE China ETF



		Industry		Shares		Value
	Common Stocks 99.8%
	China 99.2%
	360 Security Technology Inc., A		Software		3,800	$	8,062
a	3SBio Inc.		Biotechnology		47,500		41,974
a	51job Inc., ADR		Professional Services		1,159		72,553
	A-Living Services Co. Ltd., H		Commercial Services & Supplies		14,250		63,236
	Addsino Co. Ltd., A		Communications Equipment		3,800		10,703
	AECC Aviation Power Co. Ltd., A		Aerospace & Defense		7,600		52,808
	Agile Group Holdings Ltd.		Real Estate Management & Development		58,000		95,045
	Agricultural Bank of China Ltd., A		Banks		389,500		201,838
	Agricultural Bank of China Ltd., H		Banks		1,237,000		494,835
	Aier Eye Hospital Group Co. Ltd.		Health Care Providers & Services		12,390		111,886
	Air China Ltd., A		Airlines		15,200		20,966
	Air China Ltd., H		Airlines		76,000		65,790
a	Alibaba Group Holding Ltd.		Internet & Direct Marketing Retail		571,432		16,170,281
a	Alibaba Health Information Technology Ltd.		Health Care Technology		192,000		543,318
a	Alpha Group, A		Leisure Products		5,700		4,726
a	Aluminum Corp. of China Ltd., A		Metals & Mining		47,500		27,293
a	Aluminum Corp. of China Ltd., H		Metals & Mining		152,000		62,564
	Angang Steel Co. Ltd.		Metals & Mining		15,200		8,618
	Angang Steel Co. Ltd., H		Metals & Mining		56,000		27,948
	Angel Yeast Co. Ltd., A		Food Products		1,900		15,996
	Anhui Anke Biotechnology Group Co. Ltd.		Biotechnology		4,130		9,499
	Anhui Conch Cement Co. Ltd., A		Construction Materials		11,400		88,994
	Anhui Conch Cement Co. Ltd., H		Construction Materials		47,500		308,848
	Anhui Expressway Co. Ltd., H		Transportation Infrastructure		18,000		12,456
	Anhui Gujing Distillery Co. Ltd., A		Beverages		1,100		35,235
	Anhui Gujing Distillery Co. Ltd., B		Beverages		5,700		79,916
	Anta Sports Products Ltd.		Textiles, Apparel & Luxury Goods		41,730		680,609
	Asymchem Laboratories Tianjin Co. Ltd., A		Pharmaceuticals		200		8,805
	Autohome Inc., ADR		Interactive Media & Services		2,565		239,238
	Avary Holding Shenzhen Co. Ltd., A		Electronic Equipment, Instruments & Components		1,900		10,338
	AVIC Aircraft Co. Ltd.		Aerospace & Defense		7,600		28,101
	Avic Aviation High-Technology Co. Ltd., A		Machinery		3,800		14,838
	Avic Capital Co. Ltd., A		Diversified Financial Services		24,700		15,058
	AVIC Electromechanical Systems Co. Ltd.		Aerospace & Defense		11,400		16,923
	Avic Heavy Machinery Co. Ltd., A		Machinery		3,800		10,187
	AVIC Jonhon OptronicTechnology Co. Ltd.		Electronic Equipment, Instruments & Components		3,800		39,151
	AVIC Shenyang Aircraft Co. Ltd., A		Aerospace & Defense		3,800		37,593
	AviChina Industry & Technology Co. Ltd., H		Aerospace & Defense		95,000		63,664
	AVICOPTER PLC, A		Aerospace & Defense		1,900		14,641
	BAIC Motor Corp. Ltd., H		Automobiles		95,000		30,427
a	Baidu Inc., ADR		Interactive Media & Services		11,324		2,463,536
	Bank of Beijing Co. Ltd., A		Banks		60,800		44,480
	Bank of Changsha Co. Ltd., A		Banks		9,500		15,131
	Bank of Chengdu Co. Ltd., A		Banks		3,800		6,521
	Bank of China Ltd., A		Banks		216,600		110,591
	Bank of China Ltd., H		Banks		3,078,000		1,171,900
	Bank of Communications Co. Ltd., A		Banks		110,200		83,139
	Bank of Communications Co. Ltd., H		Banks		294,500		187,508
	Bank of Guiyang Co. Ltd., A		Banks		5,700		7,089
	Bank of Hangzhou Co. Ltd.		Banks		17,100		44,019
	Bank of Jiangsu Co. Ltd., A		Banks		16,000		15,778
	Bank of Nanjing Co. Ltd., A		Banks		28,500		43,958
	Bank of Ningbo Co. Ltd., A		Banks		17,100		101,330
	Bank of Qingdao Co. Ltd., A		Banks		5,700		4,431
	Bank of Shanghai Co. Ltd., A		Banks		36,100		48,363
	Bank of Suzhou Co. Ltd., A		Banks		3,800		4,454
	Bank of Zhengzhou Co. Ltd.		Banks		22,800		13,101



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FRANKLIN TEMPLETON ETF TRUST

STATEMENT OF INVESTMENTS

Franklin FTSE China ETF (continued)



		Industry		Shares		Value
	Common Stocks (continued)
	China (continued)
	Baoshan Iron & Steel Co. Ltd., A		Metals & Mining		51,300	$	63,175
	BBMG Corp., A		Construction Materials		28,500		12,814
	BBMG Corp., H		Construction Materials		95,000		19,796
	Beijing Capital Co. Ltd., A		Water Utilities		22,800		11,363
	Beijing Capital Development Co. Ltd., A		Real Estate Management & Development		5,700		5,039
	Beijing Capital International Airport Co. Ltd.		Transportation Infrastructure		76,000		59,142
	Beijing Dabeinong Technology Group Co. Ltd.		Food Products		13,300		17,068
	Beijing E-Hualu Information Technology Co. Ltd., A		Software		1,900		7,274
	Beijing Enlight Media Co. Ltd.		Entertainment		7,600		13,877
	Beijing Enterprises Holdings Ltd.		Gas Utilities		24,000		84,739
	Beijing Enterprises Water Group Ltd.		Water Utilities		228,000		86,514
a	Beijing Jetsen Technology Co. Ltd.		Software		9,500		4,706
	Beijing Jingneng Clean Energy Co. Ltd., H		Independent Power and Renewable Electricity Producers		76,000		17,205
	Beijing Kunlun Tech Co. Ltd.		Entertainment		3,800		13,732
	Beijing New Building Materials PLC		Building Products		5,700		37,495
	Beijing Orient National Communication Science &Technology Co. Ltd.		Software		3,800		5,444
	Beijing Oriental Yuhong Waterproof Technology Co. Ltd.		Construction Materials		6,200		48,344
	Beijing Originwater Technology Co. Ltd.		Commercial Services & Supplies		9,500		11,627
	Beijing Sanju Environmental Protection and New Material Co. Ltd.		Chemicals		6,900		6,110
	Beijing Shiji Information Technology Co. Ltd.		Software		3,800		17,103
a	Beijing Shougang Co. Ltd.		Metals & Mining		14,400		10,118
	Beijing Shunxin Agriculture Co. Ltd., A		Beverages		1,900		13,590
	Beijing Sinnet Technology Co. Ltd., A		IT Services		4,000		10,468
	Beijing Tiantan Biological Products Corp. Ltd., A		Biotechnology		4,200		20,907
a	Beijing Ultrapower Software Co. Ltd.		IT Services		5,700		4,057
	Beijing Yanjing Brewery Co. Ltd.		Beverages		7,600		8,502
	Beijing Zhong Ke San Huan High-Tech Co. Ltd.		Electronic Equipment, Instruments & Components		1,900		2,745
	Beijing-Shanghai High Speed Railway Co. Ltd.		Road & Rail		26,600		23,717
a	Bilibili Inc., ADR		Entertainment		6,289		673,300
	Blue Sail Medical Co. Ltd., A		Health Care Equipment & Supplies		1,900		5,580
a	Bluefocus Intelligent Communications Group Co. Ltd.		Media		7,600		7,436
	Bluestar Adisseo Co., A		Chemicals		3,800		8,068
	BOC International China Co. Ltd., A		Capital Markets		3,800		10,286
	BOE Technology Group Co. Ltd.		Electronic Equipment, Instruments & Components		39,900		19,194
	BOE Technology Group Co. Ltd.		Electronic Equipment, Instruments & Components		98,800		94,415
	Bosideng International Holdings Ltd.		Textiles, Apparel & Luxury Goods		114,000		51,322
	Boya Bio-pharmaceutical Group Co. Ltd., A		Biotechnology		1,900		8,076
	Bright Dairy & Food Co. Ltd., A		Food Products		3,800		10,616
	Brilliance China Automotive Holdings Ltd.		Automobiles		108,000		101,409
	BTG Hotels Group Co. Ltd., A		Hotels, Restaurants & Leisure		1,900		7,891
	By-health Co. Ltd., A		Personal Products		3,800		16,576
	BYD Co. Ltd.		Automobiles		5,700		142,917
	BYD Co. Ltd., H		Automobiles		31,500		668,131
	BYD Electronic International Co. Ltd.		Communications Equipment		31,000		181,029
	C&S Paper Co. Ltd., A		Household Products		3,800		14,966
	Caitong Securities Co. Ltd., A		Capital Markets		3,800		6,452
	Camel Group Co. Ltd., A		Electrical Equipment		3,800		6,168
a,b,c	CanSino Biologics Inc., 144A, Reg S		Pharmaceuticals		2,600		98,322
	CECEP Solar Energy Co. Ltd.		Independent Power and Renewable Electricity Producers		7,600		7,935



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STATEMENT OF INVESTMENTS

Franklin FTSE China ETF (continued)



		Industry		Shares		Value
	Common Stocks (continued)
	China (continued)
	CECEP Wind-Power Corp		Independent Power and Renewable Electricity Producers		15,200	$	9,962
a	Central China Securities Co. Ltd., A		Capital Markets		13,300		9,122
a	Central China Securities Co. Ltd., H		Capital Markets		38,000		7,283
	Centre Testing International Group Co. Ltd., A		Professional Services		1,900		8,253
	Changchun High & New Technology Industry Group Inc.		Pharmaceuticals		1,200		82,801
	Changjiang Securities Co. Ltd.		Capital Markets		15,200		16,356
	Changsha Jingjia Microelectronics Co. Ltd., A		Semiconductors & Semiconductor Equipment		900		10,809
	Changzhou Xingyu Automotive LightingSystems Co. Ltd., A		Auto Components		600		17,283
	Chaozhou Three-Circle Group Co. Ltd.		Electronic Equipment, Instruments & Components		5,700		36,383
	China Aerospace Times Electronics Co. Ltd., A		Aerospace & Defense		5,700		6,203
	China Aoyuan Group Ltd.		Real Estate Management & Development		57,000		61,220
	China Avic Avionics Equipment Co. Ltd., A		Aerospace & Defense		3,800		8,740
	China Baoan Group Co. Ltd.		Industrial Conglomerates		9,500		12,568
a	China Biologic Products Holdings Inc.		Biotechnology		893		105,740
	China Cinda Asset Management Co. Ltd., H		Capital Markets		342,000		71,264
	China CITIC Bank Corp. Ltd., A		Banks		28,500		23,673
	China CITIC Bank Corp. Ltd., H		Banks		380,000		193,068
	China Coal Energy Co. Ltd., A		Oil, Gas & Consumable Fuels		19,000		17,809
	China Coal Energy Co. Ltd., H		Oil, Gas & Consumable Fuels		95,000		43,746
	China Communications Services Corp. Ltd.		Construction & Engineering		94,000		42,197
	China Conch Venture Holdings Ltd.		Construction & Engineering		66,500		312,636
	China Construction Bank Corp., A		Banks		26,600		29,798
	China Construction Bank Corp., H		Banks		3,781,000		3,180,642
a	China COSCO Holdings Co. Ltd., A		Marine		25,200		51,927
a	China CSSC Holdings Ltd., A		Machinery		5,700		13,318
b,c	China East Education Holdings Ltd., 144A, Reg S		Diversified Consumer Services		19,000		41,400
	China Eastern Airlines Corp. Ltd., A		Airlines		28,500		23,717
	China Eastern Airlines Corp. Ltd., H		Airlines		76,000		35,779
	China Enterprise Co. Ltd., A		Real Estate Management & Development		20,900		10,830
	China Everbright Bank Co. Ltd., A		Banks		108,300		67,345
	China Everbright Bank Co. Ltd., H		Banks		133,000		57,994
	China Everbright Environment Group Ltd.		Commercial Services & Supplies		152,000		102,839
	China Everbright Ltd.		Capital Markets		38,000		49,660
	China Evergrande Group		Real Estate Management & Development		95,000		180,849
b,c	China Feihe Ltd., 144A, Reg S		Food Products		105,000		297,127
	China Film Co. Ltd., A		Entertainment		5,700		12,310
	China Fortune Land Development Co. Ltd., A		Real Estate Management & Development		9,696		9,280
	China Galaxy Securities Co. Ltd., A		Capital Markets		7,600		11,989
	China Galaxy Securities Co. Ltd., H		Capital Markets		152,000		93,846
	China Gas Holdings Ltd.		Gas Utilities		106,400		435,894
	China Gezhouba Group Co. Ltd., A		Construction & Engineering		15,200		17,560
	China Great Wall Securities Co. Ltd., A		Capital Markets		7,600		12,637
	China Greatwall Technology Group Co. Ltd.		Technology Hardware, Storage & Peripherals		7,600		17,213
	China Hongqiao Group Ltd.		Metals & Mining		114,000		152,206
	China Huarong Asset Management Co. Ltd., H		Capital Markets		437,000		57,334
a	China International Capital Corp. Ltd., H		Capital Markets		60,800		147,338



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STATEMENT OF INVESTMENTS

Franklin FTSE China ETF (continued)



		Industry		Shares		Value
	Common Stocks (continued)
	China (continued)
	China International Marine Containers (Group) Co. Ltd., H		Machinery		19,000	$	33,335
	China International Marine Containers Group Co. Ltd.		Machinery		4,100		9,992
	China Jinmao Holdings Group Ltd.		Real Estate Management & Development		266,000		106,750
	China Jushi Co. Ltd., A		Construction Materials		9,500		27,800
	China Lesso Group Holdings Ltd.		Building Products		38,000		81,724
	China Life Insurance Co. Ltd., A		Insurance		15,200		73,716
	China Life Insurance Co. Ltd., H		Insurance		304,000		627,985
a	China Literature Ltd.		Media		8,600		85,121
a,d	China Lodging Group Ltd., ADR		Hotels, Restaurants & Leisure		7,733		424,542
	China Longyuan Power Group Corp.		Independent Power and Renewable Electricity Producers		138,000		187,445
	China Medical System Holdings Ltd.		Pharmaceuticals		57,000		112,762
	China Meheco Co. Ltd., A		Trading Companies & Distributors		3,800		8,004
	China Mengniu Dairy Co. Ltd.		Food Products		106,000		606,731
	China Merchants Bank Co. Ltd., A		Banks		58,900		458,726
	China Merchants Bank Co. Ltd., H		Banks		152,000		1,160,365
	China Merchants Energy Shipping Co. Ltd., A		Oil, Gas & Consumable Fuels		20,900		16,628
	China Merchants Expressway Network & Technology Holdings Co. Ltd.		Transportation Infrastructure		7,600		9,104
	China Merchants Port Holdings Co. Ltd.		Transportation Infrastructure		54,000		82,794
	China Merchants Property Operation & Service Co. Ltd., A		Real Estate Management & Development		3,800		11,438
	China Merchants Securities Co. Ltd.		Capital Markets		49,400		68,116
	China Merchants Securities Co. Ltd., A		Capital Markets		21,300		63,791
	China Merchants Shekou Industrial Zone Holdings Co. Ltd., A		Real Estate Management & Development		20,900		39,085
	China Minsheng Banking Corp. Ltd., A		Banks		102,600		78,969
	China Minsheng Banking Corp. Ltd., H		Banks		256,500		148,797
	China Molybdenum Co. Ltd., A		Metals & Mining		30,400		24,464
	China Molybdenum Co. Ltd., H		Metals & Mining		171,000		103,597
	China National Accord Medicines Corp. Ltd., A		Health Care Providers & Services		1,900		12,191
	China National Building Material Co. Ltd., H		Construction Materials		152,000		219,365
	China National Chemical Engineering Co. Ltd., A		Construction & Engineering		13,300		14,169
	China National Medicines Corp. Ltd., A		Health Care Providers & Services		1,900		9,802
	China National Software & Service Co. Ltd., A		Software		1,300		10,610
a	China Northern Rare Earth Group High-Tech Co. Ltd., A		Metals & Mining		11,400		33,221
	China Oilfield Services Ltd., A		Energy Equipment & Services		5,700		12,883
	China Oilfield Services Ltd., H		Energy Equipment & Services		76,000		78,205
	China Orient Securities Co. Ltd., A		Capital Markets		17,100		23,091
	China Overseas Land & Investment Ltd.		Real Estate Management & Development		152,000		394,935
	China Pacific Insurance Group Co. Ltd., A		Insurance		19,000		109,578
	China Pacific Insurance Group Co. Ltd., H		Insurance		106,400		419,471
	China Petroleum & Chemical Corp., A		Oil, Gas & Consumable Fuels		98,800		65,202
	China Petroleum & Chemical Corp., H		Oil, Gas & Consumable Fuels		1,026,000		546,359
	China Power International Development Ltd.		Independent Power and Renewable Electricity Producers		190,000		44,235
	China Railway Group Ltd., A		Construction & Engineering		57,000		51,343
	China Railway Group Ltd., H		Construction & Engineering		152,000		80,356
	China Railway Signal & Communication Corp. Ltd., A		Electronic Equipment, Instruments & Components		13,722		11,858



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STATEMENT OF INVESTMENTS

Franklin FTSE China ETF (continued)



		Industry		Shares		Value
	Common Stocks (continued)
	China (continued)
c	China Railway Signal & Communication Corp. Ltd., H, Reg S		Electronic Equipment, Instruments & Components		57,000	$	23,388
	China Reinsurance Group Corp., H		Insurance		285,000		30,427
	China Resources Beer Holdings Co. Ltd.		Beverages		62,700		491,554
	China Resources Cement Holdings Ltd.		Construction Materials		86,000		96,570
	China Resources Gas Group Ltd.		Gas Utilities		38,000		210,664
	China Resources Land Ltd.		Real Estate Management & Development		112,300		543,845
	China Resources Pharmaceutical Group Ltd.		Pharmaceuticals		66,500		41,485
	China Resources Power Holdings Co. Ltd.		Independent Power and Renewable Electricity Producers		76,200		101,150
	China Resources Sanjiu Medical & Pharmaceutical Co. Ltd.		Pharmaceuticals		1,900		7,083
	China Satellite Communications Co. Ltd., A		Media		3,800		9,006
	China Shenhua Energy Co. Ltd., A		Oil, Gas & Consumable Fuels		20,900		64,026
	China Shenhua Energy Co. Ltd., H		Oil, Gas & Consumable Fuels		135,812		279,854
	China Shipping Container Lines Co. Ltd., A		Trading Companies & Distributors		30,400		12,834
	China Shipping Development Co. Ltd., A		Oil, Gas & Consumable Fuels		11,400		11,537
	China South Publishing & Media Group Co. Ltd., A		Media		5,700		9,113
a	China Southern Airlines Co. Ltd., A		Airlines		30,400		31,831
a	China Southern Airlines Co. Ltd., H		Airlines		76,000		56,308
	China State Construction Engineering Corp. Ltd., A		Construction & Engineering		123,500		97,690
	China State Construction International Holdings Ltd.		Construction & Engineering		76,000		52,104
	China Taiping Insurance Holdings Co. Ltd.		Insurance		60,800		123,877
	China Tourism Group Duty Free Corp. Ltd., A		Specialty Retail		5,700		265,905
b,c	China Tower Corp. Ltd., H, 144A, Reg S		Diversified Telecommunication Services		1,900,000		281,049
	China Traditional Chinese Medicine Co. Ltd.		Pharmaceuticals		76,000		47,412
	China TransInfo Technology Co. Ltd.		IT Services		3,800		9,133
	China Vanke Co. Ltd., A		Real Estate Management & Development		26,600		121,624
	China Vanke Co. Ltd., H		Real Estate Management & Development		77,900		305,109
	China World Trade Center Co. Ltd., A		Real Estate Management & Development		1,900		3,487
	China Yangtze Power Co. Ltd., A		Independent Power and Renewable Electricity Producers		41,800		136,590
	China Zheshang Bank Co. Ltd., A		Banks		22,800		14,143
	Chinese Universe Publishing and Media Group Co. Ltd., A		Media		3,800		6,122
	Chongqing Brewery Co. Ltd., A		Beverages		1,900		32,227
a	Chongqing Changan Automobile Co. Ltd.		Automobiles		13,300		28,764
a	Chongqing Changan Automobile Co. Ltd., B		Automobiles		34,200		25,690
	Chongqing Department Store Co. Ltd., A		Multiline Retail		1,900		8,748
	Chongqing Fuling Zhacai Group Co. Ltd., A		Food Products		1,900		12,165
	Chongqing Rural Commercial Bank Co. Ltd., A		Banks		15,200		9,823
	Chongqing Rural Commercial Bank Co. Ltd., H		Banks		95,000		40,935
	Chongqing Zhifei Biological Products Co. Ltd.		Biotechnology		3,800		99,900
	CIFI Holdings Group Co. Ltd.		Real Estate Management & Development		152,000		147,416
	Cinda Real Estate Co. Ltd., A		Real Estate Management & Development		7,600		4,448
	Citic Pacific Ltd.		Industrial Conglomerates		199,000		188,391
	Citic Pacific Special Steel Group Co. Ltd., A		Metals & Mining		14,180		57,055
	CITIC Securities Co. Ltd., A		Capital Markets		30,400		110,690
	CITIC Securities Co. Ltd., H		Capital Markets		95,000		218,729
	CNOOC Energy Technology & Services Ltd.		Energy Equipment & Services		24,700		10,014
	COFCO Sugar Holding Co. Ltd., A		Food Products		5,700		8,279
	Contemporary Amperex Technology Co. Ltd.		Electrical Equipment		2,400		117,846
	COSCO SHIPPING Development Co. Ltd., H		Trading Companies & Distributors		171,000		27,934
	COSCO SHIPPING Energy Transportation Co. Ltd., H		Oil, Gas & Consumable Fuels		50,000		21,931
a	COSCO Shipping Holdings Co. Ltd.		Marine		104,500		134,415
	COSCO SHIPPING Ports Ltd.		Transportation Infrastructure		76,000		55,330
	Country Garden Holdings Co. Ltd.		Real Estate Management & Development		304,000		390,242



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STATEMENT OF INVESTMENTS

Franklin FTSE China ETF (continued)



		Industry		Shares			Value
	Common Stocks (continued)
	China (continued)
	Country Garden Services Holdings Co. Ltd.		Commercial Services & Supplies		55,500		$	562,535
	CSC Financial Co. Ltd., A		Capital Markets		3,800			18,423
	CSC Financial Co. Ltd., H		Capital Markets		38,000			49,856
	CSG Holding Co. Ltd.		Construction Materials		55,100			21,191
	CSG Holding Co. Ltd.		Construction Materials		7,600			7,286
	CSPC Pharmaceutical Group Ltd.		Pharmaceuticals		342,000			413,508
a	CSSC Offshore and Marine Engineering Group Co. Ltd.		Machinery		10,000			10,432
a	CSSC Offshore and Marine Engineering Group Co. Ltd., A		Machinery		1,900			7,083
	Da An Gene Co. Ltd. of Sun Yat-Sen University		Biotechnology		2,000			9,276
a	Dada Nexus Ltd., ADR		Internet & Direct Marketing Retail		817			22,173
	Dali Foods Group Co. Ltd.		Food Products		85,500			48,609
	Daqin Railway Co. Ltd., A		Road & Rail		43,700			46,689
	DaShenLin Pharmaceutical Group Co. Ltd., A		Food & Staples Retailing		800			10,235
	Datang International Power Generation Co. Ltd., A		Independent Power and Renewable Electricity Producers		22,800			9,834
	Datang International Power Generation Co. Ltd., H		Independent Power and Renewable Electricity Producers		114,000			18,183
	DHC Software Co. Ltd.		IT Services		9,500			10,772
	Dian Diagnostics Group Co. Ltd.		Health Care Providers & Services		1,900			10,106
	Dong-E-E-Jiao Co. Ltd., A		Pharmaceuticals		1,900			10,940
	Dongfang Electric Corp. Ltd., A		Electrical Equipment		7,600			14,722
	Dongfang Electric Corp. Ltd., H		Electrical Equipment		15,200			14,018
	Dongfeng Motor Group Co. Ltd., H		Automobiles		114,000			105,870
	Dongxing Securities Co. Ltd., A		Capital Markets		7,600			12,684
	East Group Co. Ltd., A		Electrical Equipment		7,600			7,448
	East Money Information Co. Ltd.		Capital Markets		23,880			99,215
a	Easysight Supply Chain Management Co. Ltd., A		Air Freight & Logistics		3,800			4,819
a	Ecovacs Robotics Co. Ltd., A		Household Durables		1,900			39,528
	ENN Ecological Holdings Co. Ltd., A		Chemicals		5,700			15,255
	ENN Energy Holdings Ltd.		Gas Utilities		30,900			495,627
	Eve Energy Co. Ltd.		Electrical Equipment		5,700			65,286
	Everbright Securities Co. Ltd., A		Capital Markets		11,400			28,234
	Everbright Securities Co. Ltd., H		Capital Markets		11,400			10,088
a	Fangda Carbon New Material Co. Ltd.		Electrical Equipment		13,300			16,541
	Far East Horizon Ltd.		Diversified Financial Services		95,000			114,130
a	Faw Jiefang Group Co. Ltd.		Automobiles		7,600			12,649
	Fiberhome Telecommunication Technologies Co. Ltd., A		Communications Equipment		3,800			10,657
	Financial Street Holdings Co. Ltd.		Real Estate Management & Development		9,500			9,889
	First Capital Securities Co. Ltd.		Capital Markets		11,400			13,379
	Flat Glass Group Co Ltd., H		Semiconductors & Semiconductor Equipment		19,000	��		57,554
	Flat Glass Group Co. Ltd., A		Semiconductors & Semiconductor Equipment		1,900			7,793
	Focus Media Information Technology Co. Ltd.		Media		41,800			59,121
	Foshan Haitian Flavouring & Food Co. Ltd.		Food Products		3,820			93,037
	Fosun International Ltd.		Industrial Conglomerates		95,000			132,948
a	Founder Securities Co. Ltd., A		Capital Markets		24,700			32,752
	Foxconn Industrial Internet Co. Ltd., A		Electronic Equipment, Instruments & Components		11,400			24,968
	Fu Jian Anjoy Foods Co. Ltd., A		Food Products		700			22,251
	Fujian Funeng Co. Ltd., A		Independent Power and Renewable Electricity Producers		3,800			5,595
	Fujian Sunner Development Co. Ltd.		Food Products		3,800			14,913
	Fuyao Glass Industry Group Co. Ltd., A		Auto Components		5,700			40,032
	Fuyao Group Glass Industries Co. Ltd., H		Auto Components		22,800			135,637
	G-bits Network Technology Xiamen Co. Ltd., A		Entertainment		100			5,673



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STATEMENT OF INVESTMENTS

Franklin FTSE China ETF (continued)



		Industry		Shares		Value
	Common Stocks (continued)
	China (continued)
	Ganfeng Lithium Co. Ltd.		Metals & Mining		3,800	$	54,592
	Ganfeng Lithium Co. Ltd., H		Metals & Mining		6,000		73,240
a	GCL System Integration Technology Co. Ltd.		Semiconductors & Semiconductor Equipment		19,000		9,556
a,d	GDS Holdings Ltd., ADR		IT Services		4,446		360,526
	Geely Automobile Holdings Ltd.		Automobiles		214,000		544,466
	GEM Co. Ltd.		Metals & Mining		13,300		17,352
	Gemdale Corp., A		Real Estate Management & Development		13,300		24,345
	Genimous Technology Co. Ltd.		Software		5,700		4,822
a	Genscript Biotech Corp.		Life Sciences Tools & Services		38,000		66,865
	GF Securities Co. Ltd.		Capital Markets		17,100		40,840
	GF Securities Co. Ltd., H		Capital Markets		64,600		99,046
	Gigadevice Semiconductor Beijing Inc., A		Semiconductors & Semiconductor Equipment		1,320		34,378
	Glarun Technology Co. Ltd., A		Communications Equipment		3,800		8,149
	Glodon Co. Ltd.		Software		1,600		16,190
	GoerTek Inc.		Electronic Equipment, Instruments & Components		9,500		39,311
a	GOME Retail Holdings Ltd.		Specialty Retail		532,000		98,538
	Gongniu Group Co. Ltd., A		Electrical Equipment		600		16,341
	Grandjoy Holdings Group Co. Ltd., A		Real Estate Management & Development		13,300		7,824
	Great Wall Motor Co. Ltd., A		Automobiles		9,500		43,625
	Great Wall Motor Co. Ltd., H		Automobiles		123,500		342,330
	Gree Electric Appliances Inc. of Zhuhai		Household Durables		4,400		42,047
	Greendland Holdings Corp. Ltd., A		Real Estate Management & Development		17,100		14,569
	Greentown China Holdings Ltd.		Real Estate Management & Development		28,500		36,805
	GRG Banking Equipment Co. Ltd.		Technology Hardware, Storage & Peripherals		7,600		13,205
a	GSX Techedu Inc., ADR		Diversified Consumer Services		1,786		60,510
	Guangdong Baolihua New Energy Stock Co. Ltd.		Independent Power and Renewable Electricity Producers		7,600		8,050
	Guangdong Electric Power Development Co. Ltd., B		Independent Power and Renewable Electricity Producers		26,600		9,101
	Guangdong Golden Dragon Development Inc.		Capital Markets		1,900		4,370
	Guangdong Haid Group Co. Ltd.		Food Products		4,700		55,874
a	Guangdong HEC Technology Holding Co. Ltd., A		Metals & Mining		11,400		8,618
	Guangdong Investment Ltd.		Water Utilities		118,100		192,315
	Guangdong Kinlong Hardware Products Co. Ltd.		Building Products		700		17,692
	Guangdong LY Intelligent Manufacturing Co. Ltd.		Electronic Equipment, Instruments & Components		19,000		23,688
	Guangdong Xinbao Electrical Appliances Holdings Co. Ltd.		Household Durables		1,900		10,135
a	Guanghui Energy Co. Ltd., A		Oil, Gas & Consumable Fuels		20,900		9,875
	Guangshen Railway Co. Ltd., A		Road & Rail		9,500		3,272
	Guangshen Railway Co. Ltd., H		Road & Rail		76,000		15,054
	Guangxi Guiguan Electric Power Co. Ltd., A		Independent Power and Renewable Electricity Producers		11,400		9,695
	Guangxi Liugong Machinery Co. Ltd.		Machinery		3,800		5,722
	Guangzhou Automobile Group Co. Ltd., A		Automobiles		9,500		14,783
	Guangzhou Automobile Group Co. Ltd., H		Automobiles		124,000		104,151
	Guangzhou Baiyun International Airport Co. Ltd., A		Transportation Infrastructure		5,700		11,589
	Guangzhou Baiyunshan Pharmaceutical Holdings Co. Ltd., A		Pharmaceuticals		3,800		16,130
	Guangzhou Baiyunshan Pharmceutical Holdings Co. Ltd.		Pharmaceuticals		11,400		27,655
	Guangzhou Haige Communications Group Inc. Co.		Communications Equipment		5,700		8,792
	Guangzhou Kingmed Diagnostics Group Co. Ltd.		Health Care Providers & Services		1,900		36,791
	Guangzhou R&F Properties Co. Ltd., H		Real Estate Management & Development		60,800		80,238
	Guangzhou Shiyuan Electronic Technology Co. Ltd., A		Electronic Equipment, Instruments & Components		700		13,904



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FRANKLIN TEMPLETON ETF TRUST

STATEMENT OF INVESTMENTS

Franklin FTSE China ETF (continued)



		Industry		Shares		Value
	Common Stocks (continued)
	China (continued)
	Guangzhou TInc.i Materials Technology Co. Ltd.		Chemicals		1,900	$	23,633
	Guangzhou Yuexiu Financial Holdings Group Co. Ltd., A		Capital Markets		3,800		8,126
	Guangzhou Zhujiang Brewery Co. Ltd.		Beverages		5,700		8,992
	Guizhou Bailing Group Pharmaceutical Co. Ltd., A		Pharmaceuticals		5,700		6,907
a	Guizhou Xinbang Pharmaceutical Co. Ltd.		Pharmaceuticals		5,700		7,645
a	Guolian Securities Co. Ltd., A		Capital Markets		5,700		13,231
	Guosen Securities Co. Ltd.		Capital Markets		15,200		27,707
a	Guosheng Financial Holding Inc.		Electrical Equipment		5,700		8,879
	Guotai Junan Securities Co. Ltd.		Capital Markets		30,400		43,873
	Guotai Junan Securities Co. Ltd., A		Capital Markets		20,900		51,731
a	Guoxuan High-Tech Co. Ltd.		Electrical Equipment		3,800		20,867
	Guoyuan Securities Co. Ltd.		Capital Markets		13,300		15,629
b,c	Haidilao International Holding Ltd., 144A, Reg S		Hotels, Restaurants & Leisure		38,000		259,787
	Haier Smart Home Co. Ltd., A		Household Durables		17,100		81,262
a	Haier Smart Home Co. Ltd., H		Household Durables		77,600		310,422
	Haitian International Holdings Ltd.		Machinery		24,000		95,698
	Haitong Securities Co. Ltd., A		Capital Markets		28,500		48,085
	Haitong Securities Co. Ltd., H		Capital Markets		136,800		126,516
	Han’s Laser Technology Industry Group Co. Ltd., A		Machinery		1,900		12,267
a	Hang Zhou Great Star Industrial Co. Ltd.		Household Durables		3,800		20,329
	Hangzhou Binjiang Real Estate Group Co. Ltd.		Real Estate Management & Development		11,400		7,767
	Hangzhou First Applied Material Co. Ltd., A		Semiconductors & Semiconductor Equipment		1,900		24,878
	Hangzhou Oxygen Plant Group Co. Ltd.		Machinery		1,900		8,650
	Hangzhou Robam Appliances Co. Ltd., A		Household Durables		1,900		10,576
	Hangzhou Shunwang Technology Co. Ltd.		Entertainment		1,900		3,698
	Hangzhou Tigermed Consulting Co. Ltd.		Life Sciences Tools & Services		1,900		43,469
a,b,c	Hangzhou Tigermed Consulting Co. Ltd., H, 144A , Reg S		Life Sciences Tools & Services		4,900		96,872
a	Hansoh Pharmaceutical Group Co. Ltd.		Pharmaceuticals		38,000		182,071
	Harbin Boshi Automation Co. Ltd.		Machinery		3,800		8,201
	Health & Happiness H&H International Holdings Ltd.		Food Products		3,400		12,901
	Hefei Meiya Optoelectronic Technology Inc.		Machinery		1,900		12,246
	Heilongjiang Agriculture Co. Ltd., A		Food Products		5,700		13,596
	Henan Shuanghui Investment & Development Co. Ltd.		Food Products		9,500		59,364
	Hengan International Group Co. Ltd.		Personal Products		29,500		193,898
	Hengdian Group DMEGC Magnetics Co. Ltd.		Electronic Equipment, Instruments & Components		5,700		13,153
	Hengli Petrochemical Co. Ltd., A		Chemicals		9,500		42,467
a	HengTen Networks Group Ltd.		Internet & Direct Marketing Retail		94,800		119,011
	Hengtong Optic-electric Co. Ltd., A		Communications Equipment		5,700		10,651
	Hengyi Petrochemical Co. Ltd., A		Chemicals		9,500		21,212
a	Hesteel Co. Ltd.		Metals & Mining		20,900		7,518
	Hithink RoyalFlush Information Network Co. Ltd.		Capital Markets		1,300		23,657
	Holitech Technology Co. Ltd.		Electronic Equipment, Instruments & Components		11,400		5,768
	Hongfa Technology Co. Ltd., A		Electrical Equipment		1,900		14,300
	Hongta Securities Co. Ltd., A		Capital Markets		3,800		8,178
	Hopson Development Holdings Ltd.		Real Estate Management & Development		24,000		86,437
a,c	Hua Hong Semiconductor Ltd., Reg S		Semiconductors & Semiconductor Equipment		19,000		103,499
	Huaan Securities Co. Ltd., A		Capital Markets		7,600		7,402
	Huadian Power International Corp. Ltd., A		Independent Power and Renewable Electricity Producers		20,900		11,786
	Huadian Power International Corp. Ltd., H		Independent Power and Renewable Electricity Producers		76,000		23,461



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STATEMENT OF INVESTMENTS

Franklin FTSE China ETF (continued)



		Industry		Shares		Value
	Common Stocks (continued)
	China (continued)
	Huadong Medicine Co. Ltd., A		Health Care Providers & Services		5,700	$	32,039
	Huafa Industrial Co. Ltd. Zhuhai, A		Real Estate Management & Development		7,600		7,124
	Huafon Chemical Co. Ltd.		Chemicals		9,500		16,941
	Huagong Tech Co. Ltd.		Electronic Equipment, Instruments & Components		3,800		12,035
	Huaibei Mining Holdings Co. Ltd., A		Metals & Mining		7,600		13,089
	Hualan Biological Engineering Inc.		Biotechnology		4,460		27,020
	Huaneng Power International Inc., A		Independent Power and Renewable Electricity Producers		20,900		14,048
	Huaneng Power International Inc., H		Independent Power and Renewable Electricity Producers		190,000		67,452
	Huapont Life Sciences Co. Ltd.		Chemicals		3,800		3,122
	Huatai Securities Co. Ltd., A		Capital Markets		20,900		54,024
	Huatai Securities Co. Ltd., H		Capital Markets		64,600		99,046
	Huaxi Securities Co. Ltd.		Capital Markets		5,700		8,644
	Huaxia Bank Co. Ltd., A		Banks		45,600		44,758
	Huaxin Cement Co. Ltd., A		Construction Materials		3,800		13,749
	Huaxin Cement Co. Ltd., B		Construction Materials		13,300		28,715
	Huayu Automotive Systems Co. Ltd.		Auto Components		9,500		39,919
	Hubei Biocause Pharmaceutical Co. Ltd.		Insurance		17,100		10,764
	Hubei Energy Group Co. Ltd.		Independent Power and Renewable Electricity Producers		14,400		14,134
	Hubei Xinyangfeng Fertilizer Co. Ltd.		Chemicals		3,800		10,303
	Huizhou Desay Sv Automotive Co. Ltd.		Household Durables		1,900		24,834
	Humanwell Healthcare Group Co. Ltd., A		Pharmaceuticals		3,800		17,827
	Hunan Valin Steel Co. Ltd.		Metals & Mining		19,000		20,271
	Hundsun Technologies Inc., A		Software		3,000		38,408
	Huolinhe Opencut Coal Industry Corp. Ltd. of Inner Mongolia		Oil, Gas & Consumable Fuels		3,800		5,803
a	HyUnion Holding Co. Ltd.		Auto Components		5,700		5,386
	Iflytek Co. Ltd.		Software		5,700		41,986
	IInner Mongolia MengDian HuaNeng Thermal Power Co. Ltd., A		Independent Power and Renewable Electricity Producers		7,600		3,151
	Industrial and Commercial Bank of China Ltd.		Banks		216,600		182,888
	Industrial and Commercial Bank of China Ltd., H		Banks		3,192,000		2,291,012
	Industrial Bank Co. Ltd., A		Banks		58,900		216,256
	Industrial Securities Co. Ltd., A		Capital Markets		19,000		24,470
a	Ingenic Semiconductor Co. Ltd., A		Semiconductors & Semiconductor Equipment		1,900		17,659
a	Inner Mongolia BaoTou Steel Union Co. Ltd., A		Metals & Mining		104,500		24,846
	Inner Mongolia First Machinery Group Co. Ltd., A		Machinery		5,700		8,575
	Inner Mongolia Junzheng Energy & Chemical Industry Group Co. Ltd., A		Chemicals		19,000		15,290
	Inner Mongolia Yili Industrial Group Co. Ltd., A		Food Products		17,100		104,327
	Inner Mongolia Yitai Coal Co. Ltd., B		Oil, Gas & Consumable Fuels		39,900		21,865
a	Innovent Biologics Inc.		Biotechnology		53,000		537,536
	Inspur Electronic Information Industry Co. Ltd.		Technology Hardware, Storage & Peripherals		3,908		16,308
	Intco Medical Technology Co. Ltd.		Health Care Equipment & Supplies		450		11,083
a,d	Iqiyi Inc., ADR		Entertainment		10,374		172,416
a	JA Solar Technology Co. Ltd., A		Semiconductors & Semiconductor Equipment		3,800		16,726
	Jafron Biomedical Co. Ltd., A		Health Care Equipment & Supplies		1,900		22,008
	Jason Furniture Hangzhou Co. Ltd., A		Household Durables		1,900		23,329
a,b	JD Health International Inc., 144A		Internet & Direct Marketing Retail		7,600		108,998
a	JD.com Inc., ADR		Internet & Direct Marketing Retail		35,720		3,012,268
	Jiajiayue Group Co. Ltd., A		Food & Staples Retailing		1,900		6,000
	Jiangling Motors Corp. Ltd., A		Automobiles		1,900		8,314
a	Jiangsu Changjiang Electronics Technology Co. Ltd., A		Semiconductors & Semiconductor Equipment		3,800		19,802
	Jiangsu Eastern Shenghong Co. Ltd.		Chemicals		9,500		20,444
	Jiangsu Expressway Co. Ltd., A		Transportation Infrastructure		5,700		8,644



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FRANKLIN TEMPLETON ETF TRUST

STATEMENT OF INVESTMENTS

Franklin FTSE China ETF (continued)



		Industry		Shares		Value
	Common Stocks (continued)
	China (continued)
	Jiangsu Expressway Co. Ltd., H		Transportation Infrastructure		48,000	$	59,765
	Jiangsu Hengli Hydraulic Co. Ltd., A		Machinery		3,180		43,354
	Jiangsu Hengrui Medicine Co. Ltd., A		Pharmaceuticals		15,200		213,340
	Jiangsu King’s Luck Brewery JSC Ltd		Beverages		3,800		28,408
	Jiangsu Linyang Energy Co. Ltd., A		Electrical Equipment		5,700		6,159
	Jiangsu Yanghe Brewery JST Co. Ltd., A		Beverages		4,400		110,449
	Jiangsu Yangnong Chemical Co. Ltd., A		Chemicals		900		16,449
	Jiangsu Yuyue Medical Equipment & Supply Co. Ltd.		Health Care Equipment & Supplies		3,800		15,197
	Jiangsu Zhongnan Construction Group Co. Ltd.		Real Estate Management & Development		11,400		12,128
	Jiangsu Zhongtian Technology Co. Ltd., A		Electrical Equipment		9,500		16,579
	Jiangxi Copper Co. Ltd., A		Metals & Mining		5,700		19,217
	Jiangxi Copper Co. Ltd., H		Metals & Mining		57,000		108,949
	Jiangxi Zhengbang Technology Co. Ltd., A		Food Products		7,600		17,525
	Jiayuan International Group Ltd.		Real Estate Management & Development		38,000		15,641
	Jilin Aodong Pharmaceutical Group Co. Ltd.		Pharmaceuticals		3,800		9,220
	Jinduicheng Molybdenum Co. Ltd., A		Metals & Mining		5,700		5,212
	Jinke Properties Group Co. Ltd.		Real Estate Management & Development		15,200		15,267
b,c	Jinxin Fertility Group Ltd., 144A, Reg S		Health Care Providers & Services		48,000		103,230
	Jinyu Bio-Technology Co. Ltd., A		Biotechnology		3,800		11,068
	JiuGui Liquor Co. Ltd., A		Beverages		900		20,872
	JoInc.are Pharmaceutical Group Industry Co. Ltd., A		Pharmaceuticals		5,700		11,137
a	Jointown Pharmaceutical Group Co. Ltd., A		Health Care Providers & Services		5,700		15,681
	Jonjee Hi-Tech Industrial And Commercial Holding Co. Ltd., A		Food Products		1,900		14,024
	Joyoung Co. Ltd.		Household Durables		1,900		8,916
	JOYY Inc., ADR		Interactive Media & Services		2,166		203,019
a	KE Holdings Inc., ADR		Real Estate Management & Development		4,579		260,911
	Kingboard Holdings Ltd.		Electronic Equipment, Instruments & Components		28,500		153,966
	Kingdee International Software Group Co. Ltd.		Software		103,000		319,289
	Kingfa Sci & Tech Co. Ltd.		Chemicals		7,600		25,147
a	Kingsoft Cloud Holdings Ltd., ADR		IT Services		1,387		54,537
	Kingsoft Corp. Ltd.		Software		34,000		225,662
a,b	Kuaishou Technology, 144A, B		Interactive Media & Services		11,400		395,912
a	Kuang-Chi Technologies Co. Ltd.		Auto Components		5,700		17,566
	Kunlun Energy Co. Ltd.		Gas Utilities		126,000		132,411
a	Kunwu Jiuding Investment Holdings Co. Ltd., A		Capital Markets		1,900		4,578
	Kweichow Moutai Co. Ltd., A		Beverages		3,500		1,071,679
	KWG Group Holdings Ltd.		Real Estate Management & Development		47,500		81,260
c	KWG Living Group Holdings Ltd., Reg S		Real Estate Management & Development		39,500		40,138
	Lao Feng Xiang Co. Ltd., B		Textiles, Apparel & Luxury Goods		7,600		22,648
	Laobaixing Pharmacy Chain JSC		Food & Staples Retailing		1,900		19,836
e	Legend Holdings Corp., H		Technology Hardware, Storage & Peripherals		20,900		33,120
	Lens Technology Co. Ltd.		Electronic Equipment, Instruments & Components		13,300		52,967
	Leo Group Co. Ltd.		Media		20,900		9,365
	Lepu Medical Technology Beijing Co. Ltd.		Health Care Equipment & Supplies		5,700		25,463
	Leyard Optoelectronic Co. Ltd.		Electronic Equipment, Instruments & Components		5,700		6,272
a	Li Auto Inc., ADR		Automobiles		17,480		437,000
	Li Ning Co. Ltd.		Textiles, Apparel & Luxury Goods		86,000		558,625
	LianChuang Electronic Technology Co. Ltd.		Electronic Equipment, Instruments & Components		4,460		6,784
	Lianhe Chemical Technology Co. Ltd.		Chemicals		1,900		7,179
	Liaoning Cheng Da Co. Ltd., A		Distributors		3,800		11,809
	Liaoning Port Co. Ltd., A		Transportation Infrastructure		32,300		8,714
	Livzon Pharmaceutical Group Inc.		Pharmaceuticals		1,900		12,093
	Livzon Pharmaceutical Group Inc., H		Pharmaceuticals		5,700		24,305
	Logan Group Co. Ltd.		Real Estate Management & Development		38,000		64,030



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STATEMENT OF INVESTMENTS

Franklin FTSE China ETF (continued)



		Industry		Shares		Value
	Common Stocks (continued)
	China (continued)
	Lomon Billions Group Co. Ltd.		Chemicals		5,700	$	24,829
b,c	Longfor Group Holdings Ltd., 144A, Reg S		Real Estate Management & Development		73,650		487,877
	LONGi Green Energy Technology Co. Ltd., A		Semiconductors & Semiconductor Equipment		11,400		152,899
	Luenmei Quantum Co. Ltd., A		Water Utilities		3,800		6,075
a,d	Lufax Holding Ltd., ADR		Consumer Finance		7,125		103,455
	Luxi Chemical Group Co. Ltd., A		Chemicals		5,700		13,492
	Luxshare Precision Industry Co. Ltd., A		Electronic Equipment, Instruments & Components		19,099		98,476
	Luye Pharma Group Ltd.		Pharmaceuticals		66,500		42,512
	Luzhou Laojiao Co. Ltd., A		Beverages		4,400		150,900
	Maanshan Iron & Steel Co. Ltd., A		Metals & Mining		9,500		4,633
	Maanshan Iron & Steel Co. Ltd., H		Metals & Mining		38,000		12,953
	Maccura Biotechnology Co. Ltd.		Life Sciences Tools & Services		1,900		11,766
	Mango Excellent Media Co. Ltd.		Entertainment		5,730		50,757
	Maxscend Microelectronics Co. Ltd.		Electronic Equipment, Instruments & Components		400		37,127
a	Meinian Onehealth Healthcare Holdings Co. Ltd.		Health Care Providers & Services		11,400		26,792
a,c	Meituan Dianping, B, Reg S		Internet & Direct Marketing Retail		147,000		5,638,392
	Metallurgical Corp. of China Ltd.		Construction & Engineering		133,000		34,557
	Metallurgical Corp. of China Ltd., A		Construction & Engineering		39,600		20,641
a	Ming Yuan Cloud Group Holdings Ltd.		Software		19,000		86,636
	Momo Inc., ADR		Interactive Media & Services		6,327		93,260
	Montage Technology Co. Ltd.		Semiconductors & Semiconductor Equipment		2,800		26,117
	Muyuan Foods Co. Ltd.		Food Products		9,900		150,932
	NanJi E-Commerce Co. Ltd.		Media		7,600		10,633
	Nanjing Hanrui Cobalt Co. Ltd., A		Metals & Mining		800		8,056
	Nanjing Iron & Steel Co. Ltd., A		Metals & Mining		19,000		11,207
	Nanjing King-Friend Biochemical Pharmaceutical Co. Ltd.		Pharmaceuticals		2,200		13,412
	Nanjing Securities Co. Ltd., A		Capital Markets		11,400		17,618
a	Nanyang Topsec Technologies Group Inc.		Electrical Equipment		3,800		11,537
	Nari Technology Development Co. Ltd., A		Electrical Equipment		13,300		63,123
	NAURA Technology Group Co. Ltd., A		Semiconductors & Semiconductor Equipment		1,300		28,440
	NavInfo Co. Ltd.		Household Durables		5,700		12,658
	NetEase Inc., ADR		Entertainment		15,390		1,589,171
	New China Life Insurance Co. Ltd., A		Insurance		5,700		42,178
	New China Life Insurance Co. Ltd., H		Insurance		36,100		139,767
	New Hope Liuhe Co. Ltd.		Food Products		13,300		40,541
a	New Oriental Education & Technology Group Inc., ADR		Diversified Consumer Services		59,470		832,580
	Newland Digital Technology Co. Ltd.		Software		3,800		8,195
	Nine Dragons Paper Holdings Ltd.		Paper & Forest Products		63,000		92,217
	Ninestar Corp.		Technology Hardware, Storage & Peripherals		1,900		7,199
	Ningbo Joyson Electronic Corp.		Auto Components		3,800		10,431
	Ningbo Tuopu Group Co. Ltd., A		Auto Components		1,900		9,684
	Ningbo Zhoushan Port Co. Ltd., A		Transportation Infrastructure		22,800		14,491
	Ningxia Baofeng Energy Group Co. Ltd.		Chemicals		5,700		13,605
a	NIO Inc., ADR		Automobiles		50,635		1,973,752
	Northeast Securities Co. Ltd.		Capital Markets		7,600		9,985
	NSFOCUS Information Technology Co. Ltd.		Software		1,900		4,961
	Oceanwide Holdings Co. Ltd.		Diversified Financial Services		15,200		6,371
	Offcn Education Technology Co. Ltd., A		Diversified Consumer Services		5,700		24,473
	Offshore Oil Engineering Co. Ltd., A		Energy Equipment & Services		15,200		10,494
	OFILM Group Co. Ltd.		Electronic Equipment, Instruments & Components		7,600		10,043
a	OneConnect Financial Technology Co. Ltd., ADR		Software		2,071		30,609
	Oppein Home Group Inc., A		Household Durables		500		12,011
	Orient Securities Co. Ltd. of China, H		Capital Markets		30,400		19,629



198	Annual Report	franklintempleton.com

FRANKLIN TEMPLETON ETF TRUST

STATEMENT OF INVESTMENTS

Franklin FTSE China ETF (continued)



		Industry		Shares		Value
	Common Stocks (continued)
	China (continued)
	Oriental Pearl Group Co. Ltd., A		Media		9,500	$	13,914
a	Ourpalm Co. Ltd.		Entertainment		9,500		7,326
	Ovctek China Inc., A		Health Care Equipment & Supplies		1,900		26,106
a	Pangang Group Vanadium Titanium & Resources Co. Ltd., A		Metals & Mining		24,700		8,282
	People.cn Co. Ltd.		Media		3,800		9,585
	Perfect World Co. Ltd.		Entertainment		3,800		11,456
	PetroChina Co. Ltd., H		Oil, Gas & Consumable Fuels		836,000		302,164
	Pharmaron Beijing Co. Ltd., A		Life Sciences Tools & Services		1,000		22,845
b,c	Pharmaron Beijing Co. Ltd., H, 144A, Reg S		Life Sciences Tools & Services		5,700		107,703
	PICC Property and Casualty Co. Ltd., H		Insurance		266,000		230,607
a	Pinduoduo Inc., ADR		Internet & Direct Marketing Retail		11,799		1,579,650
	Ping An Bank Co. Ltd., A		Banks		55,100		184,837
a,c	Ping An Healthcare and Technology Co. Ltd., Reg S		Health Care Technology		15,200		190,624
	Ping An Insurance Group Co. of China Ltd., A		Insurance		30,400		364,641
	Ping An Insurance Group Co. of China Ltd., H		Insurance		241,500		2,874,908
	Poly Developments and Holdings Group Co. Ltd., A		Real Estate Management & Development		34,200		74,173
	Poly Property Services Co. Ltd., H		Real Estate Management & Development		4,800		33,340
	Postal Savings Bank of China Co. Ltd., H		Banks		380,000		283,981
	Power Construction Corp. of China Ltd.		Construction & Engineering		34,200		21,475
	Proya Cosmetics Co. Ltd.		Personal Products		300		7,286
	Qingdao Rural Commercial Bank Corp., A		Banks		5,700		3,840
	Qingdao TGOOD Electric Co. Ltd.		Electrical Equipment		3,800		14,688
	Raytron Technology Co. Ltd., A		Electronic Equipment, Instruments & Components		1,000		13,519
	Red Star Macalline Group Corp. Ltd.		Real Estate Management & Development		24,000		14,200
	Red Star Macalline Group Corp. Ltd., A		Real Estate Management & Development		4,000		5,554
	RiseSun Real Estate Development Co. Ltd.		Real Estate Management & Development		9,500		9,339
	Rongsheng Petro Chemical Co. Ltd.		Chemicals		5,700		23,925
	SAIC Motor Corp Ltd		Automobiles		28,500		85,441
	Sanan Optoelectronics Co. Ltd., A		Semiconductors & Semiconductor Equipment		13,300		47,190
	Sangfor Technologies Inc.		Software		300		11,294
	Sansteel Minguang Co. Ltd.		Metals & Mining		9,500		10,758
	Sany Heavy Industry Co. Ltd., A		Machinery		24,700		128,560
	SDIC Capital Co. Ltd., A		Capital Markets		9,500		17,693
	SDIC Power Holdings Co. Ltd., A		Independent Power and Renewable Electricity Producers		19,000		28,755
	Sealand Securities Co. Ltd.		Capital Markets		16,240		11,064
	Seazen Group Ltd.		Real Estate Management & Development		76,000		93,357
	Seazen Holdings Co. Ltd., A		Real Estate Management & Development		5,700		42,395
	SF Holding Co. Ltd.		Air Freight & Logistics		7,600		93,847
	SG Micro Corp., A		Semiconductors & Semiconductor Equipment		300		10,576
	Shaanxi Coal Industry Co. Ltd.		Oil, Gas & Consumable Fuels		20,900		35,230
	Shaanxi International Trust Co. Ltd.		Capital Markets		13,300		6,770
	Shandong Chenming Paper Holdings Ltd., A		Paper & Forest Products		5,700		8,783
	Shandong Chenming Paper Holdings Ltd., B		Paper & Forest Products		32,300		24,762
	Shandong Chenming Paper Holdings Ltd., H		Paper & Forest Products		19,000		17,572
	Shandong Denghai Seeds Co. Ltd.		Food Products		1,900		4,795
b,c	Shandong Gold Mining Co. Ltd., 144A, Reg S		Metals & Mining		29,000		54,386
	Shandong Gold Mining Co. Ltd., A		Metals & Mining		10,184		33,076
	Shandong Hi-speed Co. Ltd., A		Transportation Infrastructure		7,600		7,297
	Shandong Himile Mechanical Science & Technology Co. Ltd.		Machinery		1,900		8,528
	Shandong Hualu Hengsheng Chemical Co. Ltd., A		Chemicals		3,800		21,748
	Shandong Linglong Tyre Co. Ltd., A		Auto Components		1,900		13,552



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FRANKLIN TEMPLETON ETF TRUST

STATEMENT OF INVESTMENTS

Franklin FTSE China ETF (continued)



		Industry		Shares		Value
	Common Stocks (continued)
	China (continued)
	Shandong Nanshan Aluminum Co. Ltd., A		Metals & Mining		28,500	$	14,986
	Shandong Pharmaceutical Glass Co. Ltd., A		Health Care Equipment & Supplies		1,900		11,496
	Shandong Sinocera Functional Material Co. Ltd., A		Chemicals		1,900		12,296
	Shandong Sun Paper Industry JSC Ltd.		Paper & Forest Products		7,600		18,209
	Shandong Weigao Group Medical Polymer Co. Ltd., H		Health Care Equipment & Supplies		93,800		185,080
	Shanghai 2345 Network Holding Group Co. Ltd.		Software		11,400		3,336
	Shanghai AJ Group Co. Ltd., A		Diversified Financial Services		7,600		8,259
	Shanghai Bailian Group Co. Ltd.		Food & Staples Retailing		3,800		10,298
	Shanghai Bailian Group Co. Ltd., B		Food & Staples Retailing		7,600		7,364
	Shanghai Bairun Investment Holding Group Co. Ltd.		Beverages		1,900		31,564
	Shanghai Baosight Software Co. Ltd., A		Software		1,900		16,920
	Shanghai Baosight Software Co. Ltd., B		Software		11,420		39,856
	Shanghai Construction Group Co. Ltd., A		Construction & Engineering		22,800		10,529
	Shanghai Dazhong Public Utilities Group Co. Ltd., A		Gas Utilities		5,700		3,492
a	Shanghai Electric Group Co. Ltd., A		Electrical Equipment		22,800		19,286
a	Shanghai Electric Group Co. Ltd., H		Electrical Equipment		114,000		41,058
	Shanghai Electric Power Co. Ltd., A		Independent Power and Renewable Electricity Producers		9,500		11,323
	Shanghai Environment Group Co. Ltd., A		Commercial Services & Supplies		3,800		6,776
	Shanghai Fosun Pharmaceutical Group Co. Ltd., A		Pharmaceuticals		5,700		34,567
	Shanghai Fosun Pharmaceutical Group Co. Ltd., H		Pharmaceuticals		19,000		81,015
	Shanghai Huayi Group Co. Ltd., B		Chemicals		11,400		5,632
	Shanghai Industrial Holdings Ltd.		Industrial Conglomerates		19,000		28,349
	Shanghai International Airport Co. Ltd., A		Transportation Infrastructure		5,700		50,300
	Shanghai International Port Group Co. Ltd., A		Transportation Infrastructure		32,300		23,531
	Shanghai Jahwa United Co. Ltd., A		Personal Products		1,900		13,906
	Shanghai Jinjiang International Hotels Co. Ltd.		Hotels, Restaurants & Leisure		5,700		12,266
	Shanghai Jinjiang International Hotels Co. Ltd., A		Hotels, Restaurants & Leisure		1,900		16,072
	Shanghai Jinqiao Export Processing Zone Development Co. Ltd., A		Real Estate Management & Development		3,800		7,019
	Shanghai Jinqiao Export Processing Zone Development Co. Ltd., B		Real Estate Management & Development		11,400		11,012
a	Shanghai Junshi Biosciences Co. Ltd., A		Biotechnology		600		7,836
a,b,c	Shanghai Junshi Biosciences Co. Ltd., H, 144A, Reg S		Biotechnology		7,600		79,378
	Shanghai Lingang Holdings Corp. Ltd.		Real Estate Management & Development		3,800		10,622
	Shanghai Lujiazui Finance & Trade Zone Development Co. Ltd., A		Real Estate Management & Development		5,700		9,443
	Shanghai Lujiazui Finance & Trade Zone Development Co. Ltd., B		Real Estate Management & Development		43,700		38,500
	Shanghai M&G Stationery Inc., A		Commercial Services & Supplies		1,900		24,733
	Shanghai Mechanical and Electrical Industry Co. Ltd., A		Machinery		1,900		5,589
	Shanghai Mechanical and Electrical Industry Co. Ltd., B		Machinery		13,300		19,019
	Shanghai Pharmaceuticals Holding Co. Ltd., A		Health Care Providers & Services		5,700		17,036
	Shanghai Pharmaceuticals Holding Co. Ltd., H		Health Care Providers & Services		36,100		70,859
	Shanghai Pudong Development Bank Co. Ltd., A		Banks		83,615		140,055
	Shanghai Putailai New Energy Technology Co. Ltd., A		Chemicals		1,400		20,271
	Shanghai RAAS Blood Products Co. Ltd., A		Biotechnology		17,100		19,390
	Shanghai Shibei Hi-Tech Co. Ltd., B		Real Estate Management & Development		20,900		7,002
	Shanghai Shimao Co. Ltd., A		Real Estate Management & Development		7,600		5,027
	Shanghai Tunnel Engineering Co. Ltd., A		Construction & Engineering		11,400		9,487
	Shanghai Waigaoqiao Free Trade Zone Group Co. Ltd.		Trading Companies & Distributors		5,700		5,409
	Shanghai Yuyuan Tourist Mart Group Co. Ltd., A		Specialty Retail		11,400		18,626
	Shanghai Zhangjiang High-Tech Park Development Co. Ltd., A		Real Estate Management & Development		3,800		9,660
	Shanghai Zhenhua Port Machinery Co. Ltd., B		Machinery		41,800		10,617
	Shanxi Lu’an Environmental Energy Development Co. Ltd., A		Oil, Gas & Consumable Fuels		11,400		10,651



200	Annual Report	franklintempleton.com

FRANKLIN TEMPLETON ETF TRUST

STATEMENT OF INVESTMENTS

Franklin FTSE China ETF (continued)



		Industry			Shares		Value
	Common Stocks (continued)
	China (continued)
	Shanxi Securities Co. Ltd.		Capital Markets	��		9,700	$	10,393
	Shanxi Xinghuacun Fen Wine Factory Co. Ltd., A		Beverages			2,500		126,806
	Shanxi Xishan Coal & Electricity Power Co. Ltd.		Oil, Gas & Consumable Fuels			9,500		7,254
a	Shanying International Holding Co. Ltd., A		Paper & Forest Products			15,200		8,479
	Shenergy Co. Ltd., A		Independent Power and Renewable Electricity Producers			17,100		16,159
a	Shenghe Resources Holding Co. Ltd., A		Metals & Mining			5,700		15,142
	Shengyi Technology Co. Ltd., A		Electronic Equipment, Instruments & Components			7,600		26,317
	Shennan Circuits Co. Ltd., A		Electronic Equipment, Instruments & Components			1,100		14,758
	Shenwan Hongyuan Group Co. Ltd.		Capital Markets			64,600		45,684
b,c	Shenwan Hongyuan Group Co. Ltd., 144A, Reg S		Capital Markets			76,000		21,311
	Shenzhen Accord Pharmaceutical Co. Ltd., B		Health Care Providers & Services			1,900		5,633
	Shenzhen Agricultural Products Group Co. Ltd.		Food & Staples Retailing			7,600		6,799
	Shenzhen Airport Co. Ltd.		Transportation Infrastructure			7,600		10,286
	Shenzhen Capchem Technology Co. Ltd., A		Chemicals			1,900		22,136
	Shenzhen Energy Group Co. Ltd.		Independent Power and Renewable Electricity Producers			15,200		25,993
	Shenzhen Everwin Precision Technology Co. Ltd.		Electronic Equipment, Instruments & Components			1,900		6,437
	Shenzhen Expressway Co. Ltd., H		Transportation Infrastructure			38,000		41,155
	Shenzhen Gas Corporation Ltd., A		Gas Utilities			6,400		7,345
	Shenzhen Goodix Technology Co. Ltd., A		Semiconductors & Semiconductor Equipment			200		3,416
a	Shenzhen Hepalink Pharmaceutical Group Co. Ltd.		Pharmaceuticals			9,500		14,126
	Shenzhen Hepalink Pharmaceutical Group Co. Ltd., A		Pharmaceuticals			1,900		4,955
	Shenzhen Huaqiang Industry Co. Ltd.		Real Estate Management & Development			3,800		6,892
a	Shenzhen Infogem Technologies Co. Ltd., A		Software			1,900		4,581
	Shenzhen Inovance Technology Co. Ltd.		Machinery			5,700		74,286
	Shenzhen International Holdings Ltd.		Transportation Infrastructure			38,000		63,639
	Shenzhen Investment Ltd.		Real Estate Management & Development			114,000		39,591
	Shenzhen Jinjia Group Co. Ltd.		Containers & Packaging			3,800		5,624
	Shenzhen Kaifa Technology Co. Ltd.		Technology Hardware, Storage & Peripherals			3,800		11,079
	Shenzhen Kangtai Biological Products Co. Ltd.		Biotechnology			1,900		39,667
	Shenzhen Kingdom Sci-Tech Co. Ltd., A		Software			1,900		4,213
	Shenzhen Mindray Bio-Medical Electronics Co. Ltd., A		Health Care Equipment & Supplies			2,600		158,155
a	Shenzhen MTC Co. Ltd.		Household Durables			15,200		12,325
a	Shenzhen Neptunus Bioengineering Co. Ltd.		Health Care Providers & Services			11,400		5,438
	Shenzhen Overseas Chinese Town Co. Ltd.		Hotels, Restaurants & Leisure			20,900		32,459
	Shenzhen Salubris Pharmaceuticals Co. Ltd.		Pharmaceuticals			1,900		10,964
	Shenzhen SC New Energy Technology Corp., A		Semiconductors & Semiconductor Equipment			500		8,255
	Shenzhen Sunway Communication Co. Ltd.		Communications Equipment			1,900		8,221
	Shenzhen Yan Tian Port Holding Co. Ltd., A		Transportation Infrastructure			5,700		5,178
	Shenzhen YUTO Packaging Technology Co. Ltd.		Containers & Packaging			1,900		8,436
	Shenzhen Zhongjin Lingnan Nonfemet Co. Ltd., A		Metals & Mining			9,500		6,573
	Shenzhou International Group Holdings Ltd.		Textiles, Apparel & Luxury Goods			30,400		629,940
a	Shijiazhuang Changshan BeiMing Technology Co. Ltd.		Textiles, Apparel & Luxury Goods			5,700		4,352
	Shijiazhuang Yiling Pharmaceutical Co. Ltd.		Pharmaceuticals			1,900		7,132
	Shimao Group Holdings Ltd.		Real Estate Management & Development			57,000		179,260
	Shougang Fushan Resources Group Ltd.		Metals & Mining			152,000		37,734
a	Siasun Robot & Automation Co. Ltd.		Machinery			3,800		6,562



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FRANKLIN TEMPLETON ETF TRUST

STATEMENT OF INVESTMENTS

Franklin FTSE China ETF (continued)



		Industry		Shares		Value
	Common Stocks (continued)
	China (continued)
	Sichuan Chuantou Energy Co Ltd., A		Independent Power and Renewable Electricity Producers		11,400	$	21,788
	Sichuan Expressway Co. Ltd., H		Transportation Infrastructure		38,000		9,336
	Sichuan Kelun Pharmaceutical Co. Ltd.		Pharmaceuticals		3,800		12,794
	Sichuan Languang Development Co. Ltd., A		Real Estate Management & Development		7,600		4,865
	Sichuan Road & Bridge Co. Ltd., A		Construction & Engineering		13,300		12,304
	Sichuan Swellfun Co. Ltd., A		Beverages		1,900		20,714
	Sieyuan Electric Co. Ltd.		Electrical Equipment		1,900		8,603
	Sino-Ocean Land Holdings Ltd.		Real Estate Management & Development		123,500		27,482
	Sinolink Securities Co. Ltd., A		Capital Markets		9,500		19,561
	Sinoma International Engineering Co.		Construction & Engineering		5,700		8,175
	Sinoma Science & Technology Co. Ltd.		Chemicals		5,700		20,250
	Sinopec Engineering Group Co. Ltd.		Construction & Engineering		57,000		31,453
a	Sinopec Oilfield Service Corp.		Energy Equipment & Services		152,000		13,295
a	Sinopec Oilfield Service Corp., A		Energy Equipment & Services		17,100		5,265
	Sinopec Shanghai Petrochemical Co. Ltd., A		Chemicals		9,500		5,111
	Sinopec Shanghai Petrochemical Co. Ltd., H		Chemicals		152,000		35,974
	Sinopharm Group Co. Ltd., H		Health Care Providers & Services		53,200		128,784
	Sinotrans Ltd., A		Air Freight & Logistics		15,200		9,962
	Sinotrans Ltd., H		Air Freight & Logistics		76,000		28,154
	Sinotruk Hong Kong Ltd.		Machinery		28,500		85,414
	Skshu Paint Co. Ltd., A		Chemicals		700		21,252
a	Smoore International Holdings Ltd.		Tobacco		38,000		231,193
	Soho China Ltd.		Real Estate Management & Development		85,500		26,174
	Songcheng Performance Development Co. Ltd.		Hotels, Restaurants & Leisure		6,360		20,783
	SooChow Securities Co. Ltd., A		Capital Markets		10,580		15,561
	Southwest Securities Co. Ltd., A		Capital Markets		20,900		14,844
	Spring Airlines Co. Ltd., A		Airlines		1,900		17,247
	STO Express Co. Ltd.		Air Freight & Logistics		3,800		5,340
	Sunac China Holdings Ltd.		Real Estate Management & Development		99,000		424,680
	Sunac Services Holdings Ltd.		Real Estate Management & Development		20,898		65,857
	Sungrow Power Supply Co. Ltd.		Electrical Equipment		3,800		41,572
	Suning Universal Co. Ltd.		Real Estate Management & Development		9,500		5,763
	Suning.com Co. Ltd.		Specialty Retail		28,500		29,885
	Sunny Optical Technology Group Co. Ltd.		Electronic Equipment, Instruments & Components		26,600		606,283
	Sunwoda Electronic Co. Ltd., A		Electrical Equipment		3,800		11,253
	Suofeiya Home Collection Co. Ltd.		Household Durables		1,900		9,536
a	Suzhou Anjie Technology Co. Ltd., A		Electrical Equipment		1,900		4,405
	Suzhou Dongshan Precision Manufacturing Co. Ltd., A		Electronic Equipment, Instruments & Components		5,700		15,915
	Suzhou Gold Mantis Construction Decoration Co. Ltd.		Construction & Engineering		5,700		8,218
a	Tahoe Group Co. Ltd.		Real Estate Management & Development		9,500		4,431
	Taiji Computer Corp. Ltd.		IT Services		1,900		6,159
a	TAL Education Group, ADR		Diversified Consumer Services		15,770		849,214
	Tangshan Jidong Cement Co. Ltd.		Construction Materials		5,400		12,880
	TangShan Port Group Co. Ltd., A		Transportation Infrastructure		12,600		5,281
	Tangshan Sanyou Chemical Industries Co. Ltd., A		Chemicals		5,900		9,739
	TBEA Co. Ltd., A		Electrical Equipment		9,500		16,202
	TCL Corp.		Household Durables		41,800		59,503
	Tencent Holdings Ltd.		Interactive Media & Services		232,400		18,234,602
a	Tencent Music Entertainment Group, ADR		Entertainment		18,886		386,974
a	The China Pacific Securities Co. Ltd., A		Capital Markets		19,000		9,382
	The People’s Insurance Co. Group of China Ltd., H		Insurance		342,000		110,855
	Thunder Software Technology Co. Ltd.		Software		1,900		35,285



202	Annual Report	franklintempleton.com

FRANKLIN TEMPLETON ETF TRUST

STATEMENT OF INVESTMENTS

Franklin FTSE China ETF (continued)



		Industry		Shares		Value
	Common Stocks (continued)
	China (continued)
	Tian Di Science & Technology Co. Ltd., A		Machinery		3,800	$	1,946
	Tianfeng Securities Co. Ltd., A		Capital Markets		21,150		16,246
	Tianjin 712 Communication & Broadcasting Co. Ltd., A		Communications Equipment		1,900		9,924
	Tianjin Chase Sun Pharmaceutical Co. Ltd.		Pharmaceuticals		11,400		7,141
	Tianjin Zhonghuan Semiconductor Co. Ltd.		Semiconductors & Semiconductor Equipment		9,500		40,961
	Tianma Microelectronics Co. Ltd.		Electronic Equipment, Instruments & Components		5,700		12,162
	Tianshui Huatian Technology Co. Ltd., A		Semiconductors & Semiconductor Equipment		7,600		13,529
	Times China Holdings Ltd.		Real Estate Management & Development		30,000		41,289
a,c	Tongcheng-Elong Holdings Ltd., Reg S		Internet & Direct Marketing Retail		34,000		76,708
a	TongFu Microelectronics Co. Ltd., A		Semiconductors & Semiconductor Equipment		3,800		11,282
	Tonghua Dongbao Pharmaceutical Co. Ltd.		Pharmaceuticals		7,600		14,375
	Tongkun Group Co. Ltd., A		Chemicals		5,700		17,940
	Tongling Nonferrous Metals Group Co. Ltd.		Metals & Mining		38,000		15,464
	Tongwei Co. Ltd., A		Food Products		13,300		66,366
a	Topchoice Medical Investment Corp., A		Health Care Providers & Services		900		34,361
	Topsports International Holdings Ltd.		Specialty Retail		57,000		84,901
	TravelSky Technology Ltd., H		IT Services		38,000		88,860
a	Trip.com Group Ltd., ADR		Internet & Direct Marketing Retail		19,076		755,982
	Tsingtao Brewery Co. Ltd., A		Beverages		1,900		24,510
	Tsingtao Brewery Co. Ltd., H		Beverages		19,400		171,930
	Unigroup Guoxin Microelectronics Co. Ltd.		Semiconductors & Semiconductor Equipment		1,900		30,982
	Unisplendour Corp. Ltd.		Electronic Equipment, Instruments & Components		3,800		11,491
	Universal Scientific Industrial Shanghai Co. Ltd., A		Electronic Equipment, Instruments & Components		3,800		11,207
	Valiant Co. Ltd.		Chemicals		3,800		10,408
a	Vipshop Holdings Ltd., ADR		Internet & Direct Marketing Retail		17,081		510,039
	Visual China Group Co. Ltd., A		Internet & Direct Marketing Retail		1,900		4,213
	Walvax Biotechnology Co. Ltd.		Biotechnology		3,800		26,172
	Wangfujing Group Co. Ltd., A		Multiline Retail		1,900		8,693
	Wangsu Science & Technology Co. Ltd.		IT Services		7,600		7,448
	Wanhua Chemical Group Co. Ltd., A		Chemicals		9,500		152,899
	Wanxiang Qianchao Co. Ltd.		Auto Components		9,500		6,776
a,d	Weibo Corp., ADR		Interactive Media & Services		2,318		116,966
	Weichai Power Co. Ltd., A		Machinery		17,100		50,144
	Weichai Power Co. Ltd., H		Machinery		79,000		195,101
	Weifu High-Technology Co. Ltd., B		Auto Components		7,600		15,367
	Weifu High-Technology Group Co. Ltd., A		Auto Components		1,900		6,857
	Weihai Guangwei Composites Co. Ltd., A		Chemicals		1,900		20,074
	Wens Foodstuffs Group Co. Ltd.		Food Products		5,700		14,699
	Western Securities Co. Ltd.		Capital Markets		13,300		17,858
	Western Superconducting Technologies Co. Ltd., A		Metals & Mining		1,000		7,706
	Westone Information Industry Inc.		Electronic Equipment, Instruments & Components		1,900		5,192
	Will Semiconductor Ltd., A		Semiconductors & Semiconductor Equipment		1,900		74,341
	Wingtech Technology Co. Ltd., A		Electronic Equipment, Instruments & Components		3,800		56,758
	Winning Health Technology Group Co. Ltd.		Health Care Technology		6,600		16,507
	Wolong Electric Group Co. Ltd., A		Electrical Equipment		3,800		6,307
	Wuchan Zhongda Group Co. Ltd., A		Distributors		15,200		11,259
	Wuhan Guide Infrared Co. Ltd.		Electronic Equipment, Instruments & Components		3,870		21,122
	Wuhu Sanqi Interactive Entertainment NetworkTechnology Group Co. Ltd.		Entertainment		3,800		12,718
	Wuliangye Yibin Co. Ltd., A		Beverages		10,900		445,190
	WUS Printed Circuit Kunshan Co. Ltd.		Electronic Equipment, Instruments & Components		3,800		9,695
	WuXi AppTec Co. Ltd., A		Life Sciences Tools & Services		2,300		49,147
	WuXi AppTec Co. Ltd., H		Life Sciences Tools & Services		10,600		208,470
a	WuXi Biologics (Cayman) Inc.		Life Sciences Tools & Services		124,400		1,557,710



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FRANKLIN TEMPLETON ETF TRUST

STATEMENT OF INVESTMENTS

Franklin FTSE China ETF (continued)



		Industry		Shares		Value
	Common Stocks (continued)
	China (continued)
	Wuxi Lead Intelligent Equipment Co. Ltd.		Electronic Equipment, Instruments & Components		1,900	$	22,874
	XCMG Construction Machinery Co. Ltd.		Machinery		24,700		28,573
	Xiamen C & D Inc., A		Trading Companies & Distributors		9,500		12,191
	Xiamen ITG Group Corp. Ltd., A		Trading Companies & Distributors		7,600		7,668
	Xiamen Meiya Pico Information Co. Ltd.		Electronic Equipment, Instruments & Components		1,900		4,984
	Xiamen Tungsten Co. Ltd., A		Metals & Mining		3,800		10,622
	Xinfengming Group Co. Ltd., A		Chemicals		1,900		4,807
	Xinhu Zhongbao Co. Ltd., A		Real Estate Management & Development		24,700		11,520
	Xinhua Winshare Publishing and Media Co. Ltd., H		Distributors		19,000		13,099
	Xinjiang Goldwind Science & Technology Co. Ltd.		Electrical Equipment		9,500		20,517
	Xinjiang Goldwind Science & Technology Co. Ltd., H		Electrical Equipment		26,600		49,953
	Xinjiang Zhongtai Chemical Co. Ltd., A		Chemicals		5,700		8,045
	Xinxing Ductile Iron Pipes Co. Ltd.		Metals & Mining		13,300		8,149
	Xinyi Solar Holdings Ltd.		Semiconductors & Semiconductor Equipment		170,000		279,454
a	XPeng Inc., ADR		Automobiles		4,731		172,729
	Xuji Electric Co. Ltd.		Electrical Equipment		3,800		8,919
c	Yadea Group Holdings Ltd., Reg S		Automobiles		38,000		84,364
	Yango Group Co. Ltd.		Real Estate Management & Development		13,300		12,325
c	Yangtze Optical Fibre and Cable Joint Stock Ltd. Co., H, Reg S		Communications Equipment		9,500		12,073
	Yanlord Land Group Ltd.		Real Estate Management & Development		24,700		22,795
	Yantai Changyu Pioneer Wine Co. Ltd., A		Beverages		1,900		9,382
	Yantai Changyu Pioneer Wine Co. Ltd., B		Beverages		7,600		14,957
	Yantai Eddie Precision Machinery Co. Ltd., A		Machinery		1,900		17,441
	Yantai Jereh Oilfield Services Group Co. Ltd.		Energy Equipment & Services		1,900		10,121
	Yanzhou Coal Mining Co. Ltd., A		Oil, Gas & Consumable Fuels		3,800		7,662
	Yanzhou Coal Mining Co. Ltd., H		Oil, Gas & Consumable Fuels		76,000		89,936
	Yealink Network Technology Corp. Ltd.		Communications Equipment		2,500		25,975
	Yifan Pharmaceutical Co. Ltd.		Pharmaceuticals		3,800		11,786
	Yifeng Pharmacy Chain Co. Ltd.		Food & Staples Retailing		1,300		17,575
	Yihai International Holding Ltd.		Food Products		19,000		196,734
	Yintai Gold Co. Ltd.		Metals & Mining		7,800		10,592
	Yonghui Superstores Co. Ltd., A		Food & Staples Retailing		26,600		27,568
	Yonyou Network Technology Co. Ltd., A		Software		8,590		46,752
	Yotrio Group Co. Ltd.		Leisure Products		7,600		4,100
	Youngor Group Co. Ltd., A		Real Estate Management & Development		15,200		18,811
	YTO Express Group Co. Ltd., A		Air Freight & Logistics		7,600		12,938
a	Yuan Longping High-tech Agriculture Co. Ltd.		Food Products		3,800		10,326
	Yuexiu Property Co. Ltd.		Real Estate Management & Development		266,000		60,218
	Yunda Holding Co. Ltd.		Air Freight & Logistics		4,100		8,773
a	Yunnan Aluminium Co. Ltd.		Metals & Mining		9,190		13,544
	Yunnan Baiyao Group Co. Ltd.		Pharmaceuticals		3,800		69,795
a	Yunnan Copper Co. Ltd.		Metals & Mining		5,700		11,728
	Yunnan Energy New Material Co. Ltd.		Containers & Packaging		1,900		32,410
	Yunnan Hongxiang Yixintang Pharmaceutical Co. Ltd.		Food & Staples Retailing		1,900		13,425
a	Yunnan Tin Co. Ltd.		Metals & Mining		3,800		7,135
a	Zai Lab Ltd., ADR		Biotechnology		2,767		369,201
	Zhangzhou Pientzehuang Pharmaceutical Co. Ltd.		Pharmaceuticals		1,900		83,098
	Zhaojin Mining Industry Co. Ltd., H		Metals & Mining		38,000		34,557
	Zhefu Holding Group Co. Ltd.		Electrical Equipment		15,200		13,182
a	Zhejiang Century Huatong Group Co. Ltd., A		Entertainment		20,900		22,712
	Zhejiang China Commodities City Group Co. Ltd., A		Real Estate Management & Development		13,300		10,156



204	Annual Report	franklintempleton.com

FRANKLIN TEMPLETON ETF TRUST

STATEMENT OF INVESTMENTS

Franklin FTSE China ETF (continued)



		Industry		Shares		Value
	Common Stocks (continued)
	China (continued)
	Zhejiang Chint Electrics Co. Ltd., A		Electrical Equipment		3,800	$	21,024
	Zhejiang Crystal-Optech Co. Ltd.		Electronic Equipment, Instruments & Components		3,800		6,278
	Zhejiang Dahua Technology Co. Ltd.		Electronic Equipment, Instruments & Components		9,500		35,720
	Zhejiang Dingli Machinery Co. Ltd.		Machinery		1,900		27,887
	Zhejiang Expressway Co. Ltd., H		Transportation Infrastructure		56,000		49,629
a	Zhejiang Hisoar Pharmaceutical Co. Ltd., A		Pharmaceuticals		5,700		7,741
	Zhejiang Huace Film & TV Co. Ltd., A, A		Entertainment		5,700		5,265
	Zhejiang Huahai Pharmaceutical Co. Ltd., A		Pharmaceuticals		4,000		15,674
a	Zhejiang Huayou Cobalt Co. Ltd., A		Metals & Mining		3,800		39,812
	Zhejiang Jingsheng Mechanical & Electrical Co. Ltd., A		Semiconductors & Semiconductor Equipment		2,800		14,057
	Zhejiang Juhua Co. Ltd., A		Chemicals		5,700		8,010
a	Zhejiang Kaishan Compressor Co. Ltd., A		Machinery		3,800		8,502
	Zhejiang Longsheng Group Co. Ltd., A		Chemicals		7,600		16,773
	Zhejiang Medicine Co. Ltd., A		Pharmaceuticals		1,900		4,060
	Zhejiang NHU Co. Ltd.		Pharmaceuticals		5,700		33,212
	Zhejiang Sanhua Intelligent Controls Co. Ltd.		Machinery		9,500		29,856
	Zhejiang Satellite Petrochemical Co. Ltd.		Chemicals		3,800		21,817
	Zhejiang Supor Co. Ltd.		Household Durables		1,400		15,267
	Zhejiang Wanfeng Auto Wheel Co. Ltd.		Auto Components		7,600		6,290
	Zhejiang Wanliyang Co. Ltd.		Machinery		5,700		6,533
	Zhejiang Weixing New Building Materials Co. Ltd.		Building Products		3,800		14,630
	Zhejiang Wolwo Bio-Pharmaceutical Co. Ltd., A		Pharmaceuticals		1,900		17,074
	Zhejiang Yasha Decoration Co. Ltd.		Diversified Consumer Services		5,700		7,541
a	Zhejiang Yongtai Technology Co. Ltd.		Chemicals		3,800		5,178
	Zhengzhou Coal Mining Machinery Group Co. Ltd., A		Machinery		3,800		6,655
	Zhengzhou Yutong Bus Co. Ltd., A		Machinery		5,700		12,466
	Zheshang Securities Co. Ltd., A		Capital Markets		3,800		7,413
a,c	ZhongAn Online P & C Insurance Co. Ltd., Reg S		Insurance		13,300		80,233
	Zhongji Innolight Co. Ltd.		Communications Equipment		1,900		10,205
	Zhongjin Gold Corp. Ltd., A		Metals & Mining		13,300		16,906
	Zhongsheng Group Holdings Ltd.		Specialty Retail		24,500		172,694
a	Zhongtai Securities Co. Ltd., A		Capital Markets		7,600		15,452
	Zhuzhou CRRC Times Electric Co. Ltd., H		Electrical Equipment		20,900		77,960
	Zhuzhou Kibing Group Co. Ltd., A		Building Products		5,700		11,233
	Zijin Mining Group Co. Ltd., A		Metals & Mining		53,200		78,002
	Zijin Mining Group Co. Ltd., H		Metals & Mining		238,000		292,661
	Zoomlion Heavy Industry Science and Technology Co. Ltd.		Machinery		19,000		36,806
	Zoomlion Heavy Industry Science and Technology Development Co. Ltd., H		Machinery		60,800		86,807
	ZTE Corp.		Communications Equipment		10,800		48,262
	ZTE Corp., H		Communications Equipment		30,400		77,188
	ZTO Express Cayman Inc., ADR		Air Freight & Logistics		16,587		483,511


							119,843,129

	Hong Kong 0.5%
a	Alibaba Pictures Group Ltd.		Entertainment		570,000		74,050
	Kingboard Laminates Holdings Ltd.		Electronic Equipment, Instruments & Components		41,600		90,002
	Sino Biopharmaceutical Ltd.		Pharmaceuticals		399,000		399,285


							563,337



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FRANKLIN TEMPLETON ETF TRUST

STATEMENT OF INVESTMENTS

Franklin FTSE China ETF (continued)

Industry

Shares

Value

Common Stocks (continued)

Singapore 0.1%

Yangzijiang Shipbuilding Holdings Ltd.

Machinery

83,600

79,643

Total Common Stocks (Cost $104,133,624)

120,486,109

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, 0.01%

Money Market Funds

517,219

Total Investments (Cost $104,650,843) 100.2%

121,003,328

Other Assets, less Liabilities (0.2)%

(221,238

)

Net Assets 100.0%

120,782,090

See Abbreviations on page 355.

^aNon-income producing.

^dA portion or all of the security is on loan at March 31, 2021. See Note 1(d).

^eFair valued using significant unobservable inputs. See Note 9 regarding fair value measurements.

^fThe rate shown is the annualized seven-day effective yield at period end.

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

At March 31, 2021, 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

118,960

6/18/21

(5,342

)

*As of period end.

See Note 8 regarding other derivative information.



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

FRANKLIN TEMPLETON ETF TRUST

Financial Highlights

Franklin FTSE Europe ETF



	Year Ended March 31,

	2021			2020			2019			2018^a

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

Net asset value, beginning of year	$	19.03		$	23.24		$	24.98		$	25.05


Income from investment operations^b:

Net investment income^c		0.60			0.76			0.86			0.24

Net realized and unrealized gains (losses)		8.14			(4.21	)		(1.79	)		(0.30	)


Total from investment operations		8.74			(3.45	)		(0.93	)		(0.06	)


Less distributions from net investment income		(0.49	)		(0.76	)		(0.81	)		(0.01	)


Net asset value, end of year	$	27.28		$	19.03		$	23.24		$	24.98


Total return^d		46.23%			(15.44)%			(3.69)%			(0.26)%

Ratios to average net assets^e

Expenses before waiver and payments by affiliates		0.09%			0.09%			0.09%			0.09%

Expenses net of waiver and payments by affiliates		0.09%			0.09%			—%			—%

Net investment income		2.53%			3.23%			3.61%			2.35%

Supplemental data

Net assets, end of year (000’s)		$229,126			$91,356			$74,359			$104,911

Portfolio turnover rate^f		5.00%^g			4.47%^g			5.81%			0.96%

^aFor the period November 2, 2017 (commencement of operations) to March 31, 2018.

^cBased on average daily shares outstanding.

^eRatios are annualized for periods less than one year.

^fPortfolio turnover rate includes portfolio transactions that are executed as a result of the Fund offering and redeeming Creation Units solely for cash (“Cash creations”).

^gPortfolio turnover rate excluding cash creations was as follows:

4.92%

4.47%



franklintempleton.com	The accompanying notes are an integral part of these financial statements. \| Annual Report	207

FRANKLIN TEMPLETON ETF TRUST

Statement of Investments, March 31, 2021

Franklin FTSE Europe ETF



		Industry			Shares		Value
	Common Stocks and Other Equity Interests 98.6%
	Australia 1.2%
a	Glencore PLC		Metals & Mining			232,638	$	912,359
	Rio Tinto PLC		Metals & Mining			23,478		1,797,790


								2,710,149

	Austria 0.4%
a	ams AG		Semiconductors & Semiconductor Equipment			5,502		110,139
	ANDRITZ AG		Machinery			1,470		66,240
a	Erste Group Bank AG		Banks			6,132		208,424
	OMV AG		Oil, Gas & Consumable Fuels			3,066		155,886
a	Raiffeisen Bank International AG		Banks			2,856		62,870
	Telekom Austria AG		Diversified Telecommunication Services			3,024		23,884
	Verbund AG		Electric Utilities			1,428		104,056
	voestalpine AG		Metals & Mining			2,478		102,895


								834,394

	Belgium 1.5%
	Ackermans & van Haaren NV		Diversified Financial Services			462		73,629
	Ageas SA/NV		Insurance			3,822		231,607
	Anheuser-Busch InBev SA/NV		Beverages			17,934		1,132,933
	Colruyt SA		Food & Staples Retailing			1,092		65,275
	Elia Group SA/NV		Electric Utilities			756		83,432
a	Galapagos NV		Biotechnology			1,008		78,332
	Groupe Bruxelles Lambert SA		Diversified Financial Services			2,310		239,621
a	KBC Groep NV		Banks			5,922		431,528
	Proximus SADP		Diversified Telecommunication Services			2,982		65,048
	Sofina SA		Diversified Financial Services			336		113,929
	Solvay SA		Chemicals			1,512		188,723
	Telenet Group Holding NV		Media			1,008		40,967
	UCB SA		Pharmaceuticals			2,604		248,266
	Umicore SA		Chemicals			4,452		236,663
	Warehouses De Pauw CVA		Equity Real Estate Investment Trusts (REITs	)		3,024		100,155


								3,330,108

	Brazil 0.3%
	Stellantis NV		Automobiles			44,142		782,559

	China 0.5%
a	Prosus NV		Internet & Direct Marketing Retail			9,366		1,043,545

	Denmark 3.6%
	A.P. Moeller-Maersk AS, A		Marine			92		200,779
	Ambu AS, B		Health Care Equipment & Supplies			3,654		172,019
	AP Moeller-Maersk A/S, B		Marine			126		293,398
	Carlsberg AS, B		Beverages			2,142		329,900
a	Chr. Hansen Holding AS		Chemicals			2,268		206,588
	Coloplast A/S, B		Health Care Equipment & Supplies			2,898		436,810
a	Danske Bank AS		Banks			14,154		265,501
	DSV Panalpina A/S		Air Freight & Logistics			4,326		850,782
a	Genmab A/S		Biotechnology			1,260		415,556
	GN Store Nord AS		Health Care Equipment & Supplies			2,814		222,080
	H. Lundbeck AS		Pharmaceuticals			1,302		44,587
	Novo Nordisk AS, B		Pharmaceuticals			34,818		2,364,594
	Novozymes AS		Chemicals			4,368		280,457
b	Orsted AS, 144A		Electric Utilities			4,074		659,584
	Pandora AS		Textiles, Apparel & Luxury Goods			2,100		225,533
	ROCKWOOL International AS, B		Building Products			126		53,244
	SimCorp AS		Software			840		104,271
	Tryg AS		Insurance			6,643		157,048



208	Annual Report	franklintempleton.com

FRANKLIN TEMPLETON ETF TRUST

STATEMENT OF INVESTMENTS

Franklin FTSE Europe ETF (continued)



		Industry			Shares		Value
	Common Stocks and Other Equity Interests (continued)
	Denmark (continued)
	Vestas Wind Systems AS		Electrical Equipment			4,326	$	890,091
a	William Demant Holding AS		Health Care Equipment & Supplies			2,352		99,872


								8,272,694

	Finland 2.1%
	Elisa OYJ		Diversified Telecommunication Services			3,108		186,806
c	Fortum OYJ, Reg S		Electric Utilities			9,324		249,415
	Huhtamaki OYJ		Containers & Packaging			1,974		89,461
	Kesko OYJ		Food & Staples Retailing			5,880		180,233
	Kojamo OYJ		Real Estate Management & Development			4,116		80,690
	Kone OYJ, B		Machinery			8,526		698,035
	Metso Outotec OYJ		Machinery			13,170		147,125
	Neste Oil OYJ		Oil, Gas & Consumable Fuels			8,988		478,108
a	Nokia OYJ, A		Communications Equipment			120,876		483,662
	Nokian Renkaat OYJ		Auto Components			2,940		106,702
a	Nordea Bank Abp		Banks			73,080		722,428
	Orion OYJ		Pharmaceuticals			2,226		89,396
	Sampo Oyj, A		Insurance			10,920		493,734
	Stora Enso OYJ, R		Paper & Forest Products			12,306		230,038
	UPM-Kymmene OYJ		Paper & Forest Products			11,466		412,770
	Wartsila OYJ Abp		Machinery			10,332		108,487


								4,757,090

	France 16.4%
a	Accor SA		Hotels, Restaurants & Leisure			3,906		147,638
a	Adevinta ASA, B		Interactive Media & Services			4,788		70,617
a	Aeroports de Paris SA		Transportation Infrastructure			630		75,451
	Air Liquide SA		Chemicals			10,038		1,643,413
a	Airbus SE		Aerospace & Defense			11,970		1,358,157
b	ALD SA, 144A		Road & Rail			1,890		27,722
a	Alstom SA		Machinery			5,884		294,045
a,b	Amundi SA, 144A		Capital Markets			1,218		97,629
a	ArcelorMittal SA		Metals & Mining			15,162		438,904
	Arkema SA		Chemicals			1,428		173,455
a	Atos SE		IT Services			2,058		160,896
	AXA SA		Insurance			41,580		1,118,366
	Biomerieux		Health Care Equipment & Supplies			924		117,828
a	BNP Paribas SA		Banks			23,352		1,423,877
	Bollore		Entertainment			21,210		102,654
	Bouygues SA		Construction & Engineering			4,620		185,648
a	Bureau Veritas SA		Professional Services			6,132		174,912
	Capgemini SE		IT Services			3,402		580,163
	Carrefour SA		Food & Staples Retailing			12,422		225,490
a	Casino Guichard-Perrachon SA		Food & Staples Retailing			1,218		40,712
	Cie Generale des Etablissements Michelin SCA		Auto Components			3,780		567,102
a	CNP Assurances		Insurance			3,234		61,613
a	Compagnie de Saint-Gobain		Building Products			10,290		608,562
	Covivio		Equity Real Estate Investment Trusts (REITs	)		1,092		93,690
a	Credit Agricole SA		Banks			25,242		366,238
	Danone SA		Food Products			12,936		889,415
a	Dassault Aviation SA		Aerospace & Defense			50		55,768
	Dassault Systemes		Software			2,856		612,254
	Edenred		IT Services			5,292		277,025
a	EDF SA		Electric Utilities			10,973		147,537



franklintempleton.com	Annual Report	209

FRANKLIN TEMPLETON ETF TRUST

STATEMENT OF INVESTMENTS

Franklin FTSE Europe ETF (continued)



		Industry			Shares		Value
	Common Stocks and Other Equity Interests (continued)
	France (continued)
a	Eiffage SA		Construction & Engineering			1,638	$	164,330
a	Engie SA		Multi-Utilities			35,700		507,904
	EssilorLuxottica SA		Textiles, Apparel & Luxury Goods			6,342		1,034,953
a	Eurazeo SE		Diversified Financial Services			930		70,938
a	Faurecia SE		Auto Components			2,518		134,446
	Gecina SA		Equity Real Estate Investment Trusts (REITs	)		1,134		156,470
a	Getlink SE		Transportation Infrastructure			9,702		149,148
	Hermes International		Textiles, Apparel & Luxury Goods			672		745,572
	ICADE		Equity Real Estate Investment Trusts (REITs	)		672		49,244
	Iliad SA		Diversified Telecommunication Services			336		64,013
	Imerys SA		Construction Materials			798		38,941
	Ipsen SA		Pharmaceuticals			756		64,996
a	JCDecaux SA		Media			1,596		40,329
	Kering SA		Textiles, Apparel & Luxury Goods			1,596		1,104,083
	Klepierre SA		Equity Real Estate Investment Trusts (REITs	)		3,948		92,268
	L’Oreal SA		Personal Products			5,166		1,984,198
b	La Francaise des Jeux SAEM, 144A		Hotels, Restaurants & Leisure			1,932		88,034
	Legrand SA		Electrical Equipment			5,754		536,415
	LVMH Moet Hennessy Louis Vuitton SE		Textiles, Apparel & Luxury Goods			5,376		3,589,489
a	Natixis SA		Capital Markets			18,354		88,055
a,b	Neoen SA, 144A		Independent Power and Renewable Electricity Producers			546		27,433
	Orange SA		Diversified Telecommunication Services			41,076		507,146
a	Orpea		Health Care Providers & Services			1,050		121,926
	Pernod Ricard SA		Beverages			4,494		845,351
	Plastic Omnium SA		Auto Components			1,176		43,178
	Publicis Groupe		Media			4,788		292,846
	Remy Cointreau SA		Beverages			509		94,221
a	Renault SA		Automobiles			4,032		175,004
a	Rexel SA		Trading Companies & Distributors			6,636		131,808
	Rubis SCA		Gas Utilities			2,021		95,961
a	Safran SA		Aerospace & Defense			6,972		950,936
	Sanofi		Pharmaceuticals			23,520		2,328,926
	Sartorius Stedim Biotech		Life Sciences Tools & Services			504		208,034
	Schneider Electric SE		Electrical Equipment			11,340		1,735,958
a	SCOR SE		Insurance			3,360		114,916
	SEB SA		Household Durables			648		114,544
a	Societe Generale SA		Banks			16,674		437,306
a	Sodexo SA		Hotels, Restaurants & Leisure			1,848		177,622
a	SOITEC		Semiconductors & Semiconductor Equipment			462		94,643
	Suez SA		Multi-Utilities			7,980		169,383
a	Technip Energies NV		Energy Equipment & Services			2,010		30,592
	Teleperformance		Professional Services			1,260		460,257
	Thales SA		Aerospace & Defense			2,184		217,464
	Total SE		Oil, Gas & Consumable Fuels			52,332		2,446,392
a	Ubisoft Entertainment SA		Entertainment			2,058		156,930
a	Unibail-Rodamco-Westfield		Equity Real Estate Investment Trusts (REITs	)		86		6,908
a	Unibail-Rodamco-Westfield		Equity Real Estate Investment Trusts (REITs	)		2,854		229,233
	Valeo SA		Auto Components			5,124		174,464
	Veolia Environnement SA		Multi-Utilities			10,794		277,320
	Vinci SA		Construction & Engineering			9,744		1,000,457
	Vivendi SA		Entertainment			16,800		552,861
	Wendel SE		Diversified Financial Services			588		73,185
a,b,c	Worldline SA, 144A, Reg S		IT Services			5,208		437,281


								37,571,093



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FRANKLIN TEMPLETON ETF TRUST

STATEMENT OF INVESTMENTS

Franklin FTSE Europe ETF (continued)



		Industry		Shares		Value
	Common Stocks and Other Equity Interests (continued)
	Germany 13.9%
	1&1 Drillisch AG		Wireless Telecommunication Services		1,050	$	29,581
a	Adidas AG		Textiles, Apparel & Luxury Goods		4,158		1,300,891
	Allianz SE		Insurance		8,862		2,260,685
	Aroundtown SA		Real Estate Management & Development		26,082		186,071
	BASF SE		Chemicals		19,782		1,647,014
	Bayer AG		Pharmaceuticals		21,210		1,345,120
	Bayerische Motoren Werke AG		Automobiles		6,930		720,573
	Bechtle AG		IT Services		588		110,503
	Beiersdorf AG		Personal Products		2,142		226,826
	Brenntag AG		Trading Companies & Distributors		3,318		283,894
	Carl Zeiss Meditec AG		Health Care Equipment & Supplies		798		120,519
a	Commerzbank AG		Banks		22,092		135,744
a	Continental AG		Auto Components		2,310		305,974
b	Covestro AG, 144A		Chemicals		3,864		260,401
a	CTS Eventim AG & Co. KGaA		Entertainment		1,302		75,655
	Daimler AG		Automobiles		17,766		1,587,117
a,b	Delivery Hero SE, 144A		Internet & Direct Marketing Retail		3,192		414,547
a	Deutsche Bank AG		Capital Markets		44,100		528,051
	Deutsche Boerse AG		Capital Markets		3,948		657,500
a	Deutsche Lufthansa AG		Airlines		6,552		87,055
	Deutsche Post AG		Air Freight & Logistics		21,126		1,160,028
	Deutsche Telekom AG		Diversified Telecommunication Services		69,846		1,409,485
	Deutsche Wohnen AG		Real Estate Management & Development		7,476		349,528
b	DWS Group GmbH & Co. KGaA, 144A		Capital Markets		756		32,764
	E.ON SE		Multi-Utilities		46,578		543,270
	Evonik Industries AG		Chemicals		4,116		145,900
a	Evotec SE		Life Sciences Tools & Services		3,150		113,805
a	Fielmann AG		Specialty Retail		504		40,309
a	Fraport AG Frankfurt Airport Services Worldwide		Transportation Infrastructure		756		46,070
	Fresenius Medical Care AG & Co. KGaA		Health Care Providers & Services		4,200		309,602
	Fresenius SE and Co. KGaA		Health Care Providers & Services		8,652		386,207
	Fuchs Petrolub SE		Chemicals		714		28,783
	GEA Group AG		Machinery		3,570		146,644
	Hannover Rueck SE		Insurance		1,302		238,411
	HeidelbergCement AG		Construction Materials		3,192		290,596
a	Hella GmbH & Co. KGaA		Auto Components		966		54,292
a	HelloFresh SE		Internet & Direct Marketing Retail		3,192		238,599
	Henkel AG & Co. KGaA		Household Products		2,184		216,771
	Hochtief AGHochtief AG		Construction & Engineering		420		37,664
	Infineon Technologies AG		Semiconductors & Semiconductor Equipment		28,056		1,192,182
a,b,c	Just Eat Takeaway.com NV, 144A, Reg S		Internet & Direct Marketing Retail		2,562		236,407
	KION Group AG		Machinery		1,685		166,748
	Knorr-Bremse AG		Machinery		1,428		178,608
	Lanxess AG		Chemicals		1,806		133,426
	LEG Immobilien AG		Real Estate Management & Development		1,554		204,851
	Merck KGaA		Pharmaceuticals		2,772		475,006
	METRO AG		Food & Staples Retailing		2,814		29,799
	MTU Aero Engines AG		Aerospace & Defense		1,134		267,491
	Muenchener Rueckversicherungs-Gesellschaft Aktiengesellschaft in Muenchen		Insurance		3,024		933,308
	Nemetschek AG		Software		1,176		75,189
a	Osram Licht AG		Electrical Equipment		630		39,362
a	ProSiebenSat.1 Media SE		Media		3,360		68,851
a	Puma SE		Textiles, Apparel & Luxury Goods		1,974		193,816
	Rational AG		Machinery		84		65,405
	Rheinmetall AG		Industrial Conglomerates		924		93,828



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FRANKLIN TEMPLETON ETF TRUST

STATEMENT OF INVESTMENTS

Franklin FTSE Europe ETF (continued)



		Industry		Shares		Value
	Common Stocks and Other Equity Interests (continued)
	Germany (continued)
	RWE AG		Multi-Utilities		13,608	$	534,502
	SAP SE		Software		24,192		2,968,958
b,c	Scout24 AG, 144A, Reg S		Interactive Media & Services		2,100		159,688
	Siemens AG		Industrial Conglomerates		16,254		2,674,464
a	Siemens Energy AG		Electrical Equipment		8,171		293,959
b	Siemens Healthineers AG, 144A		Health Care Equipment & Supplies		4,872		264,544
	Symrise AG		Chemicals		2,730		331,766
a	Talanx AG		Insurance		1,176		49,979
a,b	TeamViewer AG, 144A		Software		3,402		145,661
	Telefonica Deutschland Holding AG		Diversified Telecommunication Services		14,742		43,316
a	thyssenkrupp AG		Metals & Mining		9,954		133,192
	Traton SE		Machinery		1,050		28,383
a,d	TUI AG		Hotels, Restaurants & Leisure		15,649		79,282
	Uniper SE		Independent Power and Renewable Electricity Producers		2,436		88,410
	United Internet AG		Diversified Telecommunication Services		2,268		91,163
a	Varta AG		Electrical Equipment		294		43,365
	Volkswagen AG		Automobiles		672		244,207
	Vonovia SE		Real Estate Management & Development		12,222		800,103
	Wacker Chemie AG		Chemicals		336		47,921
a,b	Zalando SE, 144A		Internet & Direct Marketing Retail		3,486		342,681


							31,792,270

	Ireland 1.1%
a	AIB Group PLC		Banks		16,548		43,604
	CRH PLC		Construction Materials		16,926		791,894
a	Flutter Entertainment PLC		Hotels, Restaurants & Leisure		3,528		754,719
	Glanbia PLC		Food Products		4,284		63,995
	Kerry Group		Food Products		3,360		421,359
a	Kingspan Group PLC		Building Products		3,234		274,806
	Smurfit Kappa Group PLC		Containers & Packaging		5,586		262,501


							2,612,878

	Italy 3.4%
	A2A SpA		Multi-Utilities		32,214		58,760
a	Amplifon SpA		Health Care Providers & Services		2,562		95,573
a	Assicurazioni Generali SpA		Insurance		27,300		547,382
a	Atlantia SpA		Transportation Infrastructure		10,584		198,408
a	Banca Mediolanum SpA		Diversified Financial Services		5,544		52,453
	Buzzi Unicem SpA		Construction Materials		2,092		54,510
	Davide Campari-Milano NV		Beverages		10,752		120,707
	DiaSorin SpA		Health Care Equipment & Supplies		504		81,034
	Enel SpA		Electric Utilities		168,042		1,677,365
	Eni SpA		Oil, Gas & Consumable Fuels		53,256		656,838
	Ferrari NV		Automobiles		2,604		545,836
a	FinecoBank Banca Fineco SpA		Banks		13,104		214,923
	Hera SpA		Multi-Utilities		15,036		57,751
b,c	Infrastrutture Wireless Italiane SpA, 144A, Reg S		Diversified Telecommunication Services		6,888		76,907
a	Intesa Sanpaolo SpA		Banks		334,170		907,448
	Italgas Reti SpA		Gas Utilities		10,626		69,125
	Leonardo SpA		Aerospace & Defense		8,526		69,182
a	Mediobanca Banca di Credito Finanziario SpA		Banks		14,616		162,437
a	Moncler SpA		Textiles, Apparel & Luxury Goods		4,116		236,410
a,b	Nexi SpA, 144A		IT Services		9,408		164,531
a,b	Pirelli & C SpA, 144A		Auto Components		9,870		58,024
b,c	Poste Italiane SpA, 144A, Reg S		Insurance		9,702		123,606



212	Annual Report	franklintempleton.com

FRANKLIN TEMPLETON ETF TRUST

STATEMENT OF INVESTMENTS

Franklin FTSE Europe ETF (continued)



		Industry		Shares		Value
	Common Stocks and Other Equity Interests (continued)
	Italy (continued)
	Prysmian SpA		Electrical Equipment		5,460	$	177,819
	Recordati Industria Chimica e Farmaceutica SpA		Pharmaceuticals		2,100		113,213
	Snam SpA		Gas Utilities		46,956		260,926
	Telecom Italia SpA/Milano		Diversified Telecommunication Services		231,042		125,236
	Telecom Italia SpA/Milano, di Risp		Diversified Telecommunication Services		129,150		74,438
	Tenaris SA		Energy Equipment & Services		10,206		115,297
	Terna Rete Elettrica Nazionale SpA		Electric Utilities		29,862		225,953
a	UniCredit SpA		Banks		46,116		488,506
	UnipolSai Assicurazioni SpA		Insurance		11,088		33,413


							7,844,011

	Kazakhstan 0.0%^†
	KAZ Minerals PLC		Metals & Mining		4,704		56,269

	Luxembourg 0.1%
a	Eurofins Scientific SE		Life Sciences Tools & Services		2,604		249,460
a	RTL Group SA		Media		798		46,857


							296,317

	Netherlands 6.4%
	Aalberts NV		Machinery		2,100		106,623
a,b	ABN AMRO Bank NV, 144A		Banks		8,778		106,882
a,b	Adyen NV, 144A		IT Services		578		1,293,091
	Aegon NV		Insurance		37,926		180,526
	Akzo Nobel NV		Chemicals		4,032		451,514
a	Argenx SE		Biotechnology		1,092		300,835
	ASM International NV		Semiconductors & Semiconductor Equipment		1,050		306,048
	ASML Holding NV		Semiconductors & Semiconductor Equipment		8,610		5,231,693
	ASR Nederland NV		Insurance		2,940		132,030
b,c	Euronext NV, 144A, Reg S		Capital Markets		1,344		135,688
	EXOR NV		Diversified Financial Services		2,268		191,762
a,b	GrandVision NV, 144A		Specialty Retail		1,092		33,754
	Heineken Holding NV		Beverages		2,268		202,317
	Heineken NV		Beverages		5,124		527,668
	IMCD Group NV		Trading Companies & Distributors		1,218		169,634
a	ING Groep NV		Banks		84,252		1,032,990
a	JDE Peet’s BV		Beverages		1,806		66,437
	Koninklijke Ahold Delhaize NV		Food & Staples Retailing		22,890		638,937
	Koninklijke DSM NV		Chemicals		3,738		633,949
	Koninklijke KPN NV		Diversified Telecommunication Services		71,148		241,997
a	Koninklijke Philips NV		Health Care Equipment & Supplies		19,614		1,122,072
	Koninklijke Vopak NV		Oil, Gas & Consumable Fuels		1,386		69,150
	NN Group NV		Insurance		6,804		333,384
a	QIAGEN NV		Life Sciences Tools & Services		4,746		230,203
	Randstad NV		Professional Services		2,352		165,803
a,b	Signify NV, 144A		Electrical Equipment		2,730		141,049
	Wolters Kluwer NV		Professional Services		5,754		501,249


							14,547,285

	Norway 1.1%
	Aker ASA		Diversified Financial Services		504		38,643
	Aker BP ASA		Oil, Gas & Consumable Fuels		2,394		68,093
a	DNB ASA		Banks		22,050		470,119
	Equinor ASA		Oil, Gas & Consumable Fuels		20,706		405,807
	Gjensidige Forsikring ASA		Insurance		3,654		85,867
	Leroy Seafood Group ASA		Food Products		5,544		47,475



franklintempleton.com	Annual Report	213

FRANKLIN TEMPLETON ETF TRUST

STATEMENT OF INVESTMENTS

Franklin FTSE Europe ETF (continued)



		Industry		Shares		Value
	Common Stocks and Other Equity Interests (continued)
	Norway (continued)
	Mowi ASA		Food Products		9,156	$	227,603
	Norsk Hydro ASA		Metals & Mining		28,728		184,288
	Orkla ASA		Food Products		16,422		161,289
	Salmar ASA		Food Products		1,134		78,378
b	Scatec ASA, 144A		Independent Power and Renewable Electricity Producers		2,520		76,341
a	Schibsted ASA, A		Media		1,638		68,887
a	Schibsted ASA, B		Media		2,100		75,278
	Telenor ASA		Diversified Telecommunication Services		13,692		241,397
	TOMRA Systems ASA		Commercial Services & Supplies		2,530		109,749
	Yara International ASA		Chemicals		3,612		188,209


							2,527,423

	Poland 0.5%
a,b	Allegro.eu, 144A		Internet & Direct Marketing Retail		8,274		116,519
a	Bank Pekao SA		Banks		3,444		61,636
a	CD Projekt SA		Entertainment		1,386		66,911
	Cyfrowy Polsat SA		Media		5,628		42,160
a,b	Dino Polska SA, 144A		Food & Staples Retailing		1,050		69,344
a	InPost SA		Air Freight & Logistics		4,410		72,387
a	KGHM Polska Miedz SA		Metals & Mining		2,940		141,710
a	LPP SA		Textiles, Apparel & Luxury Goods		25		51,476
	Polski Koncern Naftowy ORLEN SA		Oil, Gas & Consumable Fuels		6,720		108,072
	Polskie Gornictwo Naftowe i Gazownictwo SA		Oil, Gas & Consumable Fuels		37,170		56,650
a	Powszechna Kasa Oszczednosci Bank Polski SA		Banks		18,522		153,630
a	Powszechny Zaklad Ubezpieczen SA		Insurance		12,054		104,167
a	Santander Bank Polska SA		Banks		630		34,901


							1,079,563

	Portugal 0.2%
	EDP - Energias de Portugal SA		Electric Utilities		60,690		347,372
	Galp Energia SGPS SA, B		Oil, Gas & Consumable Fuels		11,298		131,723
	Jeronimo Martins SGPS SA		Food & Staples Retailing		5,334		89,961


							569,056

	Russia 0.1%
	Evraz PLC		Metals & Mining		12,474		99,476
	Polymetal International PLC		Metals & Mining		7,644		149,707


							249,183

	Spain 3.8%
	Acciona SA		Electric Utilities		504		84,647
	ACS Actividades de Construccion y Servicios SA		Construction & Engineering		4,868		161,686
a,b	Aena SME SA, 144A		Transportation Infrastructure		1,512		245,766
a	Amadeus IT Group SA		IT Services		9,156		649,752
	Banco Bilbao Vizcaya Argentaria SA		Banks		143,556		746,760
a	Banco Santander SA		Banks		369,394		1,257,728
	Bankinter SA		Banks		14,490		100,818
	CaixaBank SA		Banks		95,102		294,971
b	Cellnex Telecom SA, 144A		Diversified Telecommunication Services		7,308		421,724
	Corporacion Mapfre SA		Insurance		21,714		45,324
	EDP Renovaveis SA		Independent Power and Renewable Electricity Producers		5,208		111,524
	Enagas SA		Gas Utilities		5,376		117,017
	Endesa SA		Electric Utilities		6,762		179,293
	Ferrovial SA		Construction & Engineering		10,229		267,252



214	Annual Report	franklintempleton.com

FRANKLIN TEMPLETON ETF TRUST

STATEMENT OF INVESTMENTS

Franklin FTSE Europe ETF (continued)



		Industry			Shares		Value
	Common Stocks and Other Equity Interests (continued)
	Spain (continued)
	Grifols SA		Biotechnology			7,224	$	189,590
	Iberdrola SA		Electric Utilities			126,488		1,633,044
	Industria de Diseno Textil SA		Specialty Retail			22,680		749,028
	Inmobiliaria Colonial SA		Equity Real Estate Investment Trusts (REITs	)		7,014		68,051
	Merlin Properties Socimi SA		Equity Real Estate Investment Trusts (REITs	)		7,056		72,314
	Naturgy Energy Group SA		Gas Utilities			6,468		158,878
	Red Electrica Corp. SA		Electric Utilities			9,240		163,983
	Repsol SA		Oil, Gas & Consumable Fuels			29,475		365,819
	Siemens Gamesa Renewable Energy SA		Electrical Equipment			4,788		185,702
	Telefonica SA		Diversified Telecommunication Services			103,320		463,506
	Zardoya Otis SA		Machinery			3,906		25,019


								8,759,196

	Sweden 5.9%
a	Alfa Laval AB		Machinery			6,720		203,536
	Assa Abloy AB, B		Building Products			19,824		570,864
	Atlas Copco AB		Machinery			8,106		422,677
	Atlas Copco AB, A		Machinery			13,608		829,941
	Boliden AB		Metals & Mining			5,880		218,570
	Castellum AB		Real Estate Management & Development			5,838		129,000
	Electrolux AB, B		Household Durables			4,956		137,713
	Elekta AB, B		Health Care Equipment & Supplies			7,686		99,863
	Epiroc AB, A		Machinery			13,398		304,042
	Epiroc AB, B		Machinery			8,064		168,333
	EQT AB		Capital Markets			4,410		145,460
	Ericsson, B		Communications Equipment			64,680		857,448
	Essity AB, B		Household Products			13,062		413,456
b,c	Evolution Gaming Group AB, 144A, Reg S		Hotels, Restaurants & Leisure			3,444		508,127
a	Fastighets AB Balder, B		Real Estate Management & Development			2,184		108,394
	Getinge AB, B		Health Care Equipment & Supplies			4,830		134,378
a	Hennes & Mauritz AB, B		Specialty Retail			18,858		425,675
	Hexagon AB, B		Electronic Equipment, Instruments & Components			5,502		508,520
	Holmen AB, B		Paper & Forest Products			2,100		92,372
	Husqvarna AB, A		Household Durables			546		7,893
	Husqvarna AB, B		Household Durables			8,736		126,084
	ICA Gruppen AB		Food & Staples Retailing			1,638		80,243
a	Industrivarden AB, A		Diversified Financial Services			4,494		165,606
a	Industrivarden AB, C		Diversified Financial Services			3,612		126,971
a	Indutrade AB		Trading Companies & Distributors			6,048		139,885
	Investment AB Latour, B		Industrial Conglomerates			3,108		80,657
	Investor AB, A		Diversified Financial Services			2,856		226,906
	Investor AB, B		Diversified Financial Services			9,786		781,865
	Kinnevik AB, A		Diversified Financial Services			336		17,424
	Kinnevik AB, B		Diversified Financial Services			5,124		249,607
a	L E Lundbergforetagen AB, B		Diversified Financial Services			1,596		87,305
	Lifco AB, B		Industrial Conglomerates			966		89,991
	Lundin Energy AB		Oil, Gas & Consumable Fuels			4,116		129,577
	Nibe Industrier AB		Building Products			6,468		200,949
a	Saab AB, B		Aerospace & Defense			2,016		55,279
	Sagax AB, B		Real Estate Management & Development			3,738		80,967
	Sagax AB, D		Real Estate Management & Development			2,520		9,353
a	Sandvik AB		Machinery			23,184		634,639
	Securitas AB, B		Commercial Services & Supplies			6,720		114,489
a,b,c	Sinch AB, 144A, Reg S		Software			966		170,230
a	Skandinaviska Enskilda Banken AB, A		Banks			31,038		379,059
a	Skandinaviska Enskilda Banken AB, C		Banks			462		5,650



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FRANKLIN TEMPLETON ETF TRUST

STATEMENT OF INVESTMENTS

Franklin FTSE Europe ETF (continued)



		Industry		Shares		Value
	Common Stocks and Other Equity Interests (continued)
	Sweden (continued)
	Skanska AB, B		Construction & Engineering		7,644	$	192,058
	SKF AB, B		Machinery		8,232		234,409
a	Svenska Cellulosa AB, A		Paper & Forest Products		504		8,997
a	Svenska Cellulosa AB, B		Paper & Forest Products		12,768		226,391
a	Svenska Handelsbanken AB, A		Banks		32,004		348,301
a	Svenska Handelsbanken AB, B		Banks		798		9,778
	Sweco AB, B		Construction & Engineering		4,200		68,713
a	Swedbank AB, A		Banks		21,588		381,170
	Swedish Match AB		Tobacco		3,234		252,968
a	Swedish Orphan Biovitrum AB		Biotechnology		3,780		60,562
	Tele2 AB, B		Wireless Telecommunication Services		11,424		154,394
	Telefonaktiebolaget LM Ericsson, A		Communications Equipment		798		10,840
	Telia Co. AB		Diversified Telecommunication Services		55,356		240,253
a	Trelleborg AB, B		Machinery		5,250		133,715
a	Volvo AB, A		Machinery		4,368		111,752
a	Volvo AB, B		Machinery		32,466		822,796


							13,496,095

	Switzerland 14.4%
	ABB Ltd.		Electrical Equipment		36,582		1,110,112
	Adecco Group AG		Professional Services		3,318		224,361
a	Alcon Inc.		Health Care Equipment & Supplies		10,080		708,808
	Baloise Holding AG		Insurance		966		165,046
	Banque Cantonale Vaudoise		Banks		588		57,604
	Barry Callebaut AG		Food Products		69		156,600
	BKW AG		Electric Utilities		378		41,288
	Chocoladefabriken Lindt & Spruengli AG		Food Products		44		385,698
	Cie Financiere Richemont SA		Textiles, Apparel & Luxury Goods		11,004		1,060,939
	Clariant AG		Chemicals		4,830		97,816
a	Coca-Cola HBC AG		Beverages		4,158		132,520
	Credit Suisse Group AG		Capital Markets		52,122		548,385
	DKSH Holding AG		Professional Services		756		58,277
	EMS-Chemie Holding AG		Chemicals		168		150,658
a	Flughafen Zurich AG		Transportation Infrastructure		420		69,305
	Geberit AG		Building Products		776		496,033
	Georg Fischer AG		Machinery		89		119,436
	Givaudan AG		Chemicals		201		777,817
	Helvetia Holding AG		Insurance		756		89,163
	Julius Baer Group Ltd.		Capital Markets		4,662		299,390
	Kuehne + Nagel International AG		Marine		1,092		312,928
	LafargeHolcim Ltd., B		Construction Materials		11,004		649,378
	Logitech International SA		Technology Hardware, Storage & Peripherals		3,150		331,819
	Lonza Group AG		Life Sciences Tools & Services		1,596		896,060
	Nestle SA		Food Products		60,144		6,731,731
	Novartis AG		Pharmaceuticals		45,738		3,925,260
	OC Oerlikon Corp. AG		Machinery		4,158		48,289
	Partners Group Holding AG		Capital Markets		484		620,717
	PSP Swiss Property AG		Real Estate Management & Development		924		113,101
	Roche Holding AG		Pharmaceuticals		588		201,800
	Roche Holding AG		Pharmaceuticals		15,036		4,879,930
	Schindler Holding AG		Machinery		420		120,848
	Schindler Holding AG, PC		Machinery		882		260,153
	SGS SA		Professional Services		126		358,929
	SIG Combibloc Group AG		Containers & Packaging		6,888		159,987
	Sika AG		Chemicals		2,982		855,485
a	Sonova Holding AG		Health Care Equipment & Supplies		1,134		301,709



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FRANKLIN TEMPLETON ETF TRUST

STATEMENT OF INVESTMENTS

Franklin FTSE Europe ETF (continued)



		Industry			Shares		Value
	Common Stocks and Other Equity Interests (continued)
	Switzerland (continued)
	STMicroelectronics NV		Semiconductors & Semiconductor Equipment			13,608	$	519,628
	Straumann Holding AG		Health Care Equipment & Supplies			218		273,094
	Sulzer AG		Machinery			378		42,694
	Swatch Group AG		Textiles, Apparel & Luxury Goods			630		182,008
	Swatch Group AG		Textiles, Apparel & Luxury Goods			966		54,040
	Swiss Life Holding AG		Insurance			672		331,734
	Swiss Prime Site AG		Real Estate Management & Development			1,638		151,678
	Swiss Re AG		Insurance			6,048		597,378
	Swisscom AG		Diversified Telecommunication Services			546		294,132
	Tecan Group AG		Life Sciences Tools & Services			252		112,298
	Temenos AG		Software			1,302		188,213
	UBS Group AG		Capital Markets			73,831		1,148,081
b,c	VAT Group AG, 144A, Reg S		Machinery			546		153,621
	Vifor Pharma AG		Pharmaceuticals			1,092		149,270
	Zurich Insurance Group AG		Insurance			3,217		1,378,885


								33,094,134

	United Arab Emirates 0.0%^†
a,d	NMC Health PLC		Health Care Providers & Services			1,159		—

	United Kingdom 21.7%
	3i Group PLC		Capital Markets			20,454		325,522
	Admiral Group PLC		Insurance			4,452		190,477
	Anglo American PLC		Metals & Mining			26,502		1,039,355
	Antofagasta PLC		Metals & Mining			7,434		173,338
	Ashmore Group PLC		Capital Markets			9,786		52,846
	Ashtead Group PLC		Trading Companies & Distributors			9,660		576,699
a	Associated British Foods PLC		Food Products			7,476		249,099
	AstraZeneca PLC		Pharmaceuticals			28,350		2,834,628
a,b	Auto Trader Group PLC, 144A		Interactive Media & Services			20,076		153,563
b	Avast PLC, 144A		Software			11,970		75,308
	AVEVA Group PLC		Software			2,466		116,428
	Aviva PLC		Insurance			84,546		476,158
	B&M European Value Retail SA		Multiline Retail			19,194		139,772
	BAE Systems PLC		Aerospace & Defense			69,426		483,725
a	Barclays PLC		Banks			372,792		956,263
a	Barratt Developments PLC		Household Durables			21,798		224,598
	Bellway PLC		Household Durables			2,688		126,205
	BHP Group PLC		Metals & Mining			44,898		1,297,455
	BP PLC		Oil, Gas & Consumable Fuels			427,518		1,737,984
	British American Tobacco PLC		Tobacco			49,182		1,882,337
	British Land Co. PLC		Equity Real Estate Investment Trusts (REITs	)		19,908		138,654
a	BT Group PLC		Diversified Telecommunication Services			187,866		401,240
	Bunzl PLC		Trading Companies & Distributors			7,224		231,532
a	Burberry Group PLC		Textiles, Apparel & Luxury Goods			8,610		225,527
a	Centrica PLC		Multi-Utilities			125,454		93,710
a	CNH Industrial NV		Machinery			21,168		328,275
a	Compass Group PLC		Hotels, Restaurants & Leisure			38,430		774,915
b	ConvaTec Group PLC, 144A		Health Care Equipment & Supplies			34,944		94,544
	Croda International PLC		Chemicals			2,898		253,817
	DCC PLC		Industrial Conglomerates			2,142		185,890
	Derwent London PLC		Equity Real Estate Investment Trusts (REITs	)		2,184		97,268
	Diageo PLC		Beverages			49,560		2,044,159
	Direct Line Insurance Group PLC		Insurance			29,778		128,718
a	DS Smith PLC		Containers & Packaging			27,678		155,690
a	easyJet PLC		Airlines			4,746		64,053



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FRANKLIN TEMPLETON ETF TRUST

STATEMENT OF INVESTMENTS

Franklin FTSE Europe ETF (continued)



		Industry			Shares		Value
	Common Stocks and Other Equity Interests (continued)
	United Kingdom (continued)
a	Entain PLC		Hotels, Restaurants & Leisure			12,558	$	263,013
	Experian PLC		Professional Services			19,446		669,937
	Ferguson PLC		Trading Companies & Distributors			4,830		577,631
	Fresnillo PLC		Metals & Mining			3,990		47,574
	GlaxoSmithKline PLC		Pharmaceuticals			106,512		1,892,776
	Halma PLC		Electronic Equipment, Instruments & Components			8,148		266,880
	Hargreaves Lansdown PLC		Capital Markets			8,190		174,186
	Hikma Pharmaceuticals PLC		Pharmaceuticals			3,570		112,105
a	Hiscox Ltd.		Insurance			7,350		87,251
	HomeServe PLC		Commercial Services & Supplies			6,006		99,521
a	Howden Joinery Group PLC		Trading Companies & Distributors			12,096		122,329
a	HSBC Holdings PLC		Banks			440,286		2,570,783
	IMI PLC		Machinery			5,880		108,223
	Imperial Brands PLC		Tobacco			20,286		417,590
a	Informa PLC		Media			32,340		249,780
a	InterContinental Hotels Group PLC		Hotels, Restaurants & Leisure			3,948		270,991
	Intermediate Capital Group PLC		Capital Markets			6,006		152,637
a	International Consolidated Airlines Group SA		Airlines			24,020		65,717
	Intertek Group PLC		Professional Services			3,486		269,436
a	ITV PLC		Media			79,674		132,076
	J Sainsbury PLC		Food & Staples Retailing			35,406		118,460
a	JD Sports Fashion PLC		Specialty Retail			9,870		112,291
	Johnson Matthey PLC		Chemicals			4,074		169,358
a	Kingfisher PLC		Specialty Retail			45,402		199,387
	Land Securities Group PLC		Equity Real Estate Investment Trusts (REITs	)		15,414		146,762
	Legal & General Group PLC		Insurance			127,470		490,854
a	Lloyds Banking Group PLC		Banks			1,517,124		890,333
	London Stock Exchange Group PLC		Capital Markets			7,812		748,008
	M&G PLC		Diversified Financial Services			56,280		161,045
a	Meggitt PLC		Aerospace & Defense			17,010		112,040
a	Melrose Industries PLC		Electrical Equipment			103,278		237,820
	Mondi PLC		Paper & Forest Products			10,458		266,935
	National Grid PLC		Multi-Utilities			76,356		910,210
a	Natwest Group PLC		Banks			97,314		263,493
a	Next PLC		Multiline Retail			2,730		296,279
a	Ocado Group PLC		Internet & Direct Marketing Retail			10,458		293,628
	Pearson PLC		Media			16,170		172,142
	Pennon Group PLC		Water Utilities			9,072		122,037
	Persimmon PLC		Household Durables			6,804		275,992
	Phoenix Group Holdings PLC		Insurance			11,634		117,850
	Prudential PLC		Insurance			56,448		1,199,762
b	Quilter PLC, 144A		Capital Markets			37,674		83,088
	Reckitt Benckiser Group PLC		Household Products			13,608		1,219,997
	RELX PLC		Professional Services			40,068		1,005,577
a	Renishaw PLC		Electronic Equipment, Instruments & Components			756		66,860
a	Rentokil Initial PLC		Commercial Services & Supplies			39,900		266,662
a	Rightmove PLC		Interactive Media & Services			18,900		151,816
a	Rolls-Royce Holdings PLC		Aerospace & Defense			161,028		233,945
	Royal Dutch Shell PLC, A		Oil, Gas & Consumable Fuels			88,746		1,731,098
	Royal Dutch Shell PLC, B		Oil, Gas & Consumable Fuels			79,842		1,470,610
	RSA Insurance Group PLC		Insurance			22,386		210,334
	Schroders PLC		Capital Markets			2,394		115,605
	Segro PLC		Equity Real Estate Investment Trusts (REITs	)		25,620		331,422
	Severn Trent PLC		Water Utilities			5,082		161,688
	Smith & Nephew PLC		Health Care Equipment & Supplies			18,900		359,332
	Smiths Group PLC		Industrial Conglomerates			8,484		179,970



218	Annual Report	franklintempleton.com

FRANKLIN TEMPLETON ETF TRUST

STATEMENT OF INVESTMENTS

Franklin FTSE Europe ETF (continued)



		Industry			Shares		Value
	Common Stocks and Other Equity Interests (continued)
	United Kingdom (continued)
	Spirax-Sarco Engineering PLC		Machinery			1,596	$	251,028
	SSE PLC		Electric Utilities			22,428		450,234
	St. James’s Place Capital PLC		Capital Markets			11,466		201,542
a	Standard Chartered PLC		Banks			55,692		383,807
	Standard Life Aberdeen PLC		Capital Markets			46,074		184,285
	Tate & Lyle PLC		Food Products			10,206		108,031
a	Taylor Wimpey PLC		Household Durables			78,750		196,061
	TechnipFMC PLC		Energy Equipment & Services			10,038		76,850
	Tesco PLC		Food & Staples Retailing			164,728		520,120
	The Berkeley Group Holdings PLC		Household Durables			2,478		151,765
	The Sage Group PLC		Software			23,772		200,988
a	THG PLC		Internet & Direct Marketing Retail			13,314		114,533
a	Travis Perkins PLC		Trading Companies & Distributors			5,460		116,124
	Unilever PLC		Personal Products			54,894		3,071,904
	United Utilities Group PLC		Water Utilities	��		14,574		186,158
	Vodafone Group PLC		Wireless Telecommunication Services			576,744		1,049,414
a	Weir Group PLC		Machinery			5,544		135,924
a	Whitbread PLC		Hotels, Restaurants & Leisure			4,368		206,469
	William Morrison Supermarkets PLC		Food & Staples Retailing			47,208		118,835
	WPP PLC		Media			25,536		324,346


								49,821,296

	Total Common Stocks and Other Equity Interests (Cost $185,419,193)							226,046,608

	Preferred Stocks 1.1%
	Germany 1.1%
e	Bayerische Motoren Werke AG, 3.714%, pfd.		Automobiles			1,218		97,128
e	Fuchs Petrolub SE, 2.375%, pfd.		Chemicals			1,470		70,559
e	Henkel AG & Co. KGaA, 1.930%, pfd.		Household Products			3,780		425,871
e	Porsche Automobil Holding SE, 2.444%, pfd.		Automobiles			3,318		352,606
e	Sartorius AG, 0.085%, pfd.		Health Care Equipment & Supplies			756		377,801
e	Volkswagen AG, 2.037%, pfd.		Automobiles			3,948		1,107,124

	Total Preferred Stocks (Cost $1,534,552)							2,431,089

	Rights 0.0%^†
	Italy 0.0%^†
a	Snam SpA, rts., 4/7/21		Gas Utilities			50,310		—

	Total Investments before Short Term Investments (Cost $186,953,745)							228,477,697

	Short Term Investments 0.0%^†
	Investments from Cash Collateral Received for Loaned Securities 0.0%^†
	United States 0.0%^†
f,g	Institutional Fiduciary Trust Portfolio, 0.01%		Money Market Funds			64,200		64,200

	Total Investments (Cost $187,017,945) 99.7%							228,541,897
	Other Assets, less Liabilities 0.3%							584,530

	Net Assets 100.0%						$	229,126,427

See abbreviation on page 355.

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

^aNon-income producing.



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FRANKLIN TEMPLETON ETF TRUST

STATEMENT OF INVESTMENTS

Franklin FTSE Europe ETF (continued)

^dA portion or all of the security is on loan at March 31, 2021. See Note 1(d).

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

^fThe rate shown is the annualized seven-day effective yield at period end.

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

At March 31, 2021, 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		7	$	318,060		6/18/21	$	6,872
FTSE 100 Index		Long		4		368,628		6/18/21		(1,688	)

Total Futures Contracts									$	5,184

*As of period end.

See Note 8 regarding other derivative information.



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

FRANKLIN TEMPLETON ETF TRUST

Financial Highlights

Franklin FTSE Europe Hedged ETF


	Year Ended March 31,

	2021			2020			2019			2018^a

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

Net asset value, beginning of year	$	19.15		$	22.81		$	23.88		$	25.05


Income from investment operations^b:

Net investment income^c		0.59			0.73			0.79			0.25

Net realized and unrealized gains (losses)		6.45			(2.92	)		0.62			(1.40	)


Total from investment operations		7.04			(2.19	)		1.41			(1.15	)


Less distributions from:

Net investment income		(0.47	)		(1.47	)		(0.38	)		(0.02	)

Net realized gains		—			—			(2.10	)		—^d


Total distributions		(0.47	)		(1.47	)		(2.48	)		(0.02	)


Net asset value, end of year	$	25.72		$	19.15		$	22.81		$	23.88


Total return^e		36.92%			(10.67)%			6.98%			(4.61)%

Ratios to average net assets^f

Expenses before waiver and payments by affiliates		0.09%			0.09%			0.09%			0.09%

Expenses net of waiver and payments by affiliates		0.09%			0.09%			0.09%			—%

Net investment income		2.58%			3.10%			3.28%			2.47%

Supplemental data

Net assets, end of year (000’s)		$15,429			$3,831			$4,563			$33,428

Portfolio turnover rate^g		12.87%^h			14.81%^h			26.81%			5.33%

^aFor the period November 2, 2017 (commencement of operations) to March 31, 2018.

^cBased on average daily shares outstanding.

^dAmount rounds to less than $0.001 per share.

^fRatios are annualized for periods less than one year.

^gPortfolio turnover rate includes portfolio transactions that are executed as a result of the Fund offering and redeeming Creation Units solely for cash (“Cash creations”).

^hPortfolio turnover rate excluding cash creations was as follows:

12.87%

14.81%



franklintempleton.com	The accompanying notes are an integral part of these financial statements. \| Annual Report	221

FRANKLIN TEMPLETON ETF TRUST

Statement of Investments, March 31, 2021

Franklin FTSE Europe Hedged ETF



		Industry			Shares		Value
	Common Stocks and Other Equity Interests 98.4%
	Australia 1.2%
a	Glencore PLC		Metals & Mining			15,642	$	61,345
	Rio Tinto PLC		Metals & Mining			1,575		120,603


								181,948

	Austria 0.4%
a	ams AG		Semiconductors & Semiconductor Equipment			368		7,367
	Andritz AG		Machinery			102		4,596
a	Erste Group Bank AG		Banks			416		14,140
	OMV AG		Oil, Gas & Consumable Fuels			210		10,677
a	Raiffeisen Bank International AG		Banks			183		4,029
	Telekom Austria AG		Diversified Telecommunication Services			192		1,516
	Verbund AG		Electric Utilities			97		7,068
	Voestalpine AG		Metals & Mining			165		6,851


								56,244

	Belgium 1.5%
	Ackermans & van Haaren NV		Diversified Financial Services			33		5,259
	Ageas SA/NV		Insurance			260		15,756
	Anheuser-Busch InBev SA/NV		Beverages			1,205		76,123
	Colruyt SA		Food & Staples Retailing			73		4,364
	Elia Group SA/NV		Electric Utilities			53		5,849
a	Galapagos NV		Biotechnology			72		5,595
	Groupe Bruxelles Lambert SA		Diversified Financial Services			156		16,182
a	KBC Groep NV		Banks			398		29,002
	Proximus SADP		Diversified Telecommunication Services			201		4,384
	Sofina SA		Diversified Financial Services			23		7,799
	Solvay SA		Chemicals			99		12,357
	Telenet Group Holding NV		Media			66		2,682
	UCB SA		Pharmaceuticals			176		16,780
	Umicore SA		Chemicals			297		15,788
	Warehouses De Pauw CVA		Equity Real Estate Investment Trusts (REITs	)		198		6,558


								224,478

	China 0.4%
a	Prosus NV		Internet & Direct Marketing Retail			627		69,859

	Denmark 3.6%
	Ambu AS, B		Health Care Equipment & Supplies			254		11,958
	AP Moeller-Maersk A/S, B		Marine			8		18,628
	AP Moller—Maersk A/S, A		Marine			6		13,094
	Carlsberg AS, B		Beverages			144		22,178
a	Chr. Hansen Holding AS		Chemicals			147		13,390
	Coloplast AS, B		Health Care Equipment & Supplies			193		29,091
	Danske Bank AS		Banks			956		17,933
	DSV Panalpina A/S		Air Freight & Logistics			292		57,427
a	Genmab A/S		Biotechnology			86		28,363
	GN Store Nord AS		Health Care Equipment & Supplies			189		14,916
	H. Lundbeck AS		Pharmaceuticals			87		2,979
	Novo Nordisk AS, B		Pharmaceuticals			2,341		158,984
	Novozymes AS		Chemicals			293		18,813
	Orsted AS		Electric Utilities			273		44,199
	Pandora AS		Textiles, Apparel & Luxury Goods			138		14,821
	Rockwool International AS, B		Building Products			9		3,803
	SimCorp A/S		Software			57		7,076
	Tryg AS		Insurance			455		10,757
	Vestas Wind Systems AS		Electrical Equipment			291		59,874



222	Annual Report	franklintempleton.com

FRANKLIN TEMPLETON ETF TRUST

STATEMENT OF INVESTMENTS

Franklin FTSE Europe Hedged ETF (continued)



		Industry			Shares		Value
	Common Stocks and Other Equity Interests (continued)
	Denmark (continued)
a	William Demant Holding AS		Health Care Equipment & Supplies			150	$	6,369


								554,653

	Finland 2.1%
	Elisa OYJ		Diversified Telecommunication Services			204		12,261
b	Fortum OYJ, Reg S		Electric Utilities			626		16,745
	Huhtamaki OYJ		Containers & Packaging			132		5,982
	Kesko OYJ		Food & Staples Retailing			384		11,770
	Kojamo Oyj		Real Estate Management & Development			276		5,411
	Kone OYJ, B		Machinery			569		46,585
	Metso Outotec Oyj		Machinery			861		9,618
	Neste Oil OYJ		Oil, Gas & Consumable Fuels			603		32,076
a	Nokia OYJ, A		Communications Equipment			8,142		32,579
	Nokian Renkaat OYJ		Auto Components			192		6,968
	Nordea Bank Abp		Banks			4,914		48,577
	Orion OYJ		Pharmaceuticals			144		5,783
	Sampo OYJ, A		Insurance			733		33,142
	Stora Enso OYJ, R		Paper & Forest Products			834		15,590
	UPM-Kymmene OYJ		Paper & Forest Products			773		27,828
	Wartsila OYJ ABP		Machinery			687		7,214


								318,129

	France 16.4%
a	Accor SA		Hotels, Restaurants & Leisure			270		10,205
a	Adevinta ASA, B		Interactive Media & Services			318		4,690
a	Aeroports de Paris SA		Transportation Infrastructure			43		5,150
	Air Liquide SA		Chemicals			674		110,347
a	Airbus SE		Aerospace & Defense			804		91,225
c	ALD SA, 144A		Road & Rail			117		1,716
a	Alstom SA		Machinery			394		19,690
a	Amundi SA		Capital Markets			84		6,733
a	ArcelorMittal SA		Metals & Mining			1,022		29,584
	Arkema SA		Chemicals			96		11,661
a	Atos SE		IT Services			135		10,554
	AXA SA		Insurance			2,790		75,042
	Biomerieux		Health Care Equipment & Supplies			60		7,651
a	BNP Paribas SA		Banks			1,570		95,730
	Bollore		Entertainment			1,466		7,095
	Bouygues SA		Construction & Engineering			303		12,176
a	Bureau Veritas SA		Professional Services			418		11,923
	Capgemini SE		IT Services			228		38,882
	Carrefour SA		Food & Staples Retailing			844		15,321
a	Casino Guichard-Perrachon SA		Food & Staples Retailing			81		2,707
	Cie Generale des Etablissements Michelin SCA		Auto Components			254		38,107
a	CNP Assurances		Insurance			207		3,944
a	Compagnie de Saint-Gobain		Building Products			692		40,926
	Covivio		Equity Real Estate Investment Trusts (REITs	)		72		6,177
a	Credit Agricole SA		Banks			1,692		24,549
	Danone SA		Food Products			869		59,748
a	Dassault Aviation SA		Aerospace & Defense			3		3,346
	Dassault Systemes		Software			191		40,946
	Edenred		IT Services			357		18,688
a	EDF SA		Electric Utilities			757		10,178
a	Eiffage SA		Construction & Engineering			110		11,036
a	Engie SA		Multi-Utilities			2,401		34,159
	EssilorLuxottica SA		Textiles, Apparel & Luxury Goods			428		69,845



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STATEMENT OF INVESTMENTS

Franklin FTSE Europe Hedged ETF (continued)



		Industry			Shares		Value
	Common Stocks and Other Equity Interests (continued)
	France (continued)
a	Eurazeo SE		Diversified Financial Services			63	$	4,805
a	Faurecia SE		Auto Components			174		9,291
	Gecina SA		Equity Real Estate Investment Trusts (REITs	)		75		10,349
a	Getlink SE		Transportation Infrastructure			671		10,315
	Hermes International		Textiles, Apparel & Luxury Goods			45		49,927
	ICADE		Equity Real Estate Investment Trusts (REITs	)		45		3,298
	Iliad SA		Diversified Telecommunication Services			21		4,001
	Imerys SA		Construction Materials			54		2,635
	Ipsen SA		Pharmaceuticals			48		4,127
a	JCDecaux SA		Media			105		2,653
	Kering SA		Textiles, Apparel & Luxury Goods			108		74,712
	Klepierre SA		Equity Real Estate Investment Trusts (REITs	)		267		6,240
	L’Oreal SA		Personal Products			348		133,663
	La Francaise des Jeux SAEM		Hotels, Restaurants & Leisure			126		5,741
	Legrand SA		Electrical Equipment			387		36,078
	LVMH Moet Hennessy Louis Vuitton SE		Textiles, Apparel & Luxury Goods			361		241,035
a	Natixis SA		Capital Markets			1,188		5,700
a,c	Neoen SA, 144A		Independent Power and Renewable Electricity Producers			36		1,809
	Orange SA		Diversified Telecommunication Services			2,772		34,225
a	Orpea		Health Care Providers & Services			69		8,012
	Pernod Ricard SA		Beverages			301		56,620
	Plastic Omnium SA		Auto Components			75		2,754
	Publicis Groupe		Media			322		19,694
	Remy Cointreau SA		Beverages			36		6,664
a	Renault SA		Automobiles			269		11,676
a	Rexel SA		Trading Companies & Distributors			447		8,879
	Rubis SCA		Gas Utilities			135		6,410
a	Safran SA		Aerospace & Defense			467		63,696
	Sanofi		Pharmaceuticals			1,580		156,450
	Sartorius Stedim Biotech		Life Sciences Tools & Services			35		14,447
	Schneider Electric SE		Electrical Equipment			763		116,802
a	SCOR SE		Insurance			222		7,593
	SEB SA		Household Durables			42		7,424
a	Societe Generale SA		Banks			1,122		29,426
a	Sodexo SA		Hotels, Restaurants & Leisure			128		12,303
a	SOITEC		Semiconductors & Semiconductor Equipment			30		6,146
	Suez SA		Multi-Utilities			544		11,547
a	Technip Energies NV		Energy Equipment & Services			129		1,963
	Teleperformance		Professional Services			84		30,684
	Thales SA		Aerospace & Defense			146		14,537
	Total SE		Oil, Gas & Consumable Fuels			3,517		164,411
a	Ubisoft Entertainment SA		Entertainment			135		10,294
a	Unibail-Rodamco-Westfield		Equity Real Estate Investment Trusts (REITs	)		6		482
a	Unibail-Rodamco-Westfield		Equity Real Estate Investment Trusts (REITs	)		192		15,421
	Valeo SA		Auto Components			350		11,917
	Veolia Environnement SA		Multi-Utilities			729		18,729
	Vinci SA		Construction & Engineering			655		67,252
	Vivendi SA		Entertainment			1,132		37,252
	Wendel SE		Diversified Financial Services			39		4,854
a,b	Worldline SA, Reg S		IT Services			352		29,555


								2,524,229

	Germany 13.9%
	1&1 Drillisch AG		Wireless Telecommunication Services			66		1,859
a	Adidas AG		Textiles, Apparel & Luxury Goods			279		87,289
	Allianz SE		Insurance			595		151,784



224	Annual Report	franklintempleton.com

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STATEMENT OF INVESTMENTS

Franklin FTSE Europe Hedged ETF (continued)



		Industry			Shares		Value
	Common Stocks and Other Equity Interests (continued)
	Germany (continued)
	Aroundtown SA		Real Estate Management & Development			1,742	$	12,428
	BASF SE		Chemicals			1,328		110,567
	Bayer AG		Pharmaceuticals			1,426		90,436
	Bayerische Motoren Werke AG		Automobiles			466		48,454
	Bechtle AG		IT Services			39		7,329
	Beiersdorf AG		Personal Products			146		15,461
	Brenntag AG		Trading Companies & Distributors			225		19,251
	Carl Zeiss Meditec AG		Health Care Equipment & Supplies			54		8,155
a	Commerzbank AG		Banks			1,545		9,493
a	Continental AG		Auto Components			157		20,796
	Covestro AG		Chemicals			262		17,657
a	CTS Eventim AG & Co. KGaA		Entertainment			84		4,881
	Daimler AG		Automobiles			1,192		106,487
a	Delivery Hero SE		Internet & Direct Marketing Retail			215		27,922
a	Deutsche Bank AG		Capital Markets			2,966		35,515
	Deutsche Boerse AG		Capital Markets			266		44,300
a	Deutsche Lufthansa AG		Airlines			423		5,620
	Deutsche Post AG		Air Freight & Logistics			1,417		77,807
	Deutsche Telekom AG		Diversified Telecommunication Services			4,683		94,502
	Deutsche Wohnen AG		Real Estate Management & Development			503		23,517
c	DWS Group GmbH & Co. KGaA, 144A		Capital Markets			51		2,210
	E.ON SE		Multi-Utilities			3,141		36,636
	Evonik Industries AG		Chemicals			283		10,032
	Evotec SE		Life Sciences Tools & Services			207		7,479
a	Fielmann AG		Specialty Retail			33		2,639
a	Fraport AG Frankfurt Airport Services Worldwide		Transportation Infrastructure			51		3,108
	Fresenius Medical Care AG & Co. KGaA		Health Care Providers & Services			283		20,861
	Fresenius SE and Co. KGaA		Health Care Providers & Services			585		26,113
	Fuchs Petrolub SE		Chemicals			51		2,056
	GEA Group AG		Machinery			237		9,735
	Hannover Rueck SE		Insurance			87		15,931
	HeidelbergCement AG		Construction Materials			216		19,664
a	Hella GmbH & Co. KGaA		Auto Components			68		3,822
a	HelloFresh SE		Internet & Direct Marketing Retail			214		15,996
	Henkel AG & Co. KGaA		Household Products			149		14,789
	Hochtief AG		Construction & Engineering			27		2,421
	Infineon Technologies AG		Semiconductors & Semiconductor Equipment			1,887		80,184
a,b,c	Just Eat Takeaway.com NV, 144A, Reg S		Internet & Direct Marketing Retail			173		15,963
	KION Group AG		Machinery			111		10,985
	Knorr-Bremse AG		Machinery			96		12,007
	Lanxess AG		Chemicals			120		8,866
	LEG Immobilien AG		Real Estate Management & Development			105		13,841
	Merck KGaA		Pharmaceuticals			188		32,215
	METRO AG		Food & Staples Retailing			183		1,938
	MTU Aero Engines AG		Aerospace & Defense	��		77		18,163
	Muenchener Rueckversicherungs-Gesellschaft Aktiengesellschaft in Muenchen		Insurance			203		62,653
	Nemetschek AG		Software			78		4,987
a	Osram Licht AG		Electrical Equipment			42		2,624
a	ProSiebenSat.1 Media SE		Media			222		4,549
a	Puma SE		Textiles, Apparel & Luxury Goods			129		12,666
	Rational AG		Machinery			6		4,672
	Rheinmetall AG		Industrial Conglomerates			65		6,601
	RWE AG		Multi-Utilities			914		35,901
	SAP SE		Software			1,627		199,673



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STATEMENT OF INVESTMENTS

Franklin FTSE Europe Hedged ETF (continued)



		Industry		Shares		Value
	Common Stocks and Other Equity Interests (continued)
	Germany (continued)
b	Scout24 AG, Reg S		Interactive Media & Services		145	$	11,026
	Siemens AG		Industrial Conglomerates		1,090		179,351
a	Siemens Energy AG		Electrical Equipment		547		19,679
	Siemens Healthineers AG		Health Care Equipment & Supplies		326		17,701
	Symrise AG		Chemicals		183		22,239
a	Talanx AG		Insurance		75		3,187
a	TeamViewer AG		Software		230		9,848
	Telefonica Deutschland Holding AG		Diversified Telecommunication Services		903		2,653
a	thyssenkrupp AG		Metals & Mining		689		9,219
	Traton SE		Machinery		72		1,946
a	TUI AG		Hotels, Restaurants & Leisure		1,021		5,173
	Uniper SE		Independent Power and Renewable Electricity Producers		159		5,771
	United Internet AG		Diversified Telecommunication Services		156		6,270
a	Varta AG		Electrical Equipment		21		3,098
	Volkswagen AG		Automobiles		47		17,080
	Vonovia SE		Real Estate Management & Development		821		53,746
	Wacker Chemie AG		Chemicals		21		2,995
a	Zalando SE		Internet & Direct Marketing Retail		235		23,101


							2,137,573

	Ireland 1.1%
a	AIB Group PLC		Banks		1,056		2,783
	CRH PLC		Construction Materials		1,138		53,242
a	Flutter Entertainment PLC		Hotels, Restaurants & Leisure		237		50,700
	Glanbia PLC		Food Products		298		4,452
	Kerry Group		Food Products		223		27,965
	Kingspan Group PLC		Building Products		219		18,609
	Smurfit Kappa Group PLC		Containers & Packaging		376		17,669


							175,420

	Italy 3.4%
	A2A SpA		Multi-Utilities		2,145		3,913
a	Amplifon SpA		Health Care Providers & Services		171		6,379
a	Assicurazioni Generali SpA		Insurance		1,833		36,753
a	Atlantia SpA		Transportation Infrastructure		720		13,497
a	Banca Mediolanum SpA		Diversified Financial Services		369		3,491
	Buzzi Unicem SpA		Construction Materials		139		3,622
	Davide Campari-Milano NV		Beverages		711		7,982
	DiaSorin SpA		Health Care Equipment & Supplies		33		5,306
	Enel SpA		Electric Utilities		11,275		112,545
	Eni SpA		Oil, Gas & Consumable Fuels		3,591		44,290
	Ferrari NV		Automobiles		176		36,892
a	FinecoBank Banca Fineco SpA		Banks		884		14,499
	Hera SpA		Multi-Utilities		972		3,733
b	Infrastrutture Wireless Italiane SpA, Reg S		Diversified Telecommunication Services		465		5,192
a	Intesa Sanpaolo SpA		Banks		22,515		61,140
	Italgas Reti SpA		Gas Utilities		711		4,625
	Leonardo SpA		Aerospace & Defense		549		4,455
a	Mediobanca Banca di Credito Finanziario SpA		Banks		998		11,091
a	Moncler SpA		Textiles, Apparel & Luxury Goods		278		15,967
a	Nexi SpA		IT Services		639		11,175
a	Pirelli & C SpA		Auto Components		633		3,721
b	Poste Italiane SpA, Reg S		Insurance		651		8,294
	Prysmian SpA		Electrical Equipment		372		12,115



226	Annual Report	franklintempleton.com

FRANKLIN TEMPLETON ETF TRUST

STATEMENT OF INVESTMENTS

Franklin FTSE Europe Hedged ETF (continued)



		Industry		Shares		Value
	Common Stocks and Other Equity Interests (continued)
	Italy (continued)
	Recordati Industria Chimica e Farmaceutica SpA		Pharmaceuticals		138	$	7,440
	Snam SpA		Gas Utilities		3,166		17,593
a	Snam SpA, rts., 4/7/21		Gas Utilities		2,070		—
	Telecom Italia SpA/Milano		Diversified Telecommunication Services		15,108		8,189
	Telecom Italia SpA/Milano, di Risp		Diversified Telecommunication Services		8,511		4,905
	Tenaris SA		Energy Equipment & Services		660		7,456
	Terna Rete Elettrica Nazionale SpA		Electric Utilities		2,033		15,383
a	UniCredit SpA		Banks		3,099		32,828
	UnipolSai Assicurazioni SpA		Insurance		717		2,161


							526,632

	Kazakhstan 0.0%^†
	KAZ Minerals PLC		Metals & Mining		309		3,696

	Luxembourg 0.1%
a	Eurofins Scientific SE		Life Sciences Tools & Services		176		16,860
a	RTL Group SA		Media		54		3,171


							20,031

	Netherlands 6.3%
	Aalberts NV		Machinery		135		6,854
a	ABN AMRO Bank NV		Banks		585		7,123
a	Adyen NV		IT Services		39		87,250
	Aegon NV		Insurance		2,589		12,324
	Akzo Nobel NV		Chemicals		273		30,571
a	Argenx SE		Biotechnology		24		6,612
a	Argenx SE		Biotechnology		50		13,774
	ASM International NV		Semiconductors & Semiconductor Equipment		69		20,112
	ASML Holding NV		Semiconductors & Semiconductor Equipment		579		351,818
	ASR Nederland NV		Insurance		206		9,251
b	Euronext NV, Reg S		Capital Markets		87		8,783
	EXOR NV		Diversified Financial Services		153		12,936
a	Grandvision NV		Specialty Retail		72		2,226
	Heineken Holding NV		Beverages		155		13,827
	Heineken NV		Beverages		345		35,528
	IMCD Group NV		Trading Companies & Distributors		81		11,281
	ING Groep NV		Banks		5,660		69,396
a	JDE Peet’s BV		Beverages		117		4,304
	Koninklijke Ahold Delhaize NV		Food & Staples Retailing		1,538		42,931
	Koninklijke DSM NV		Chemicals		250		42,399
	Koninklijke KPN NV		Diversified Telecommunication Services		4,812		16,367
a	Koninklijke Philips NV		Health Care Equipment & Supplies		1,320		75,514
	Koninklijke Vopak NV		Oil, Gas & Consumable Fuels		90		4,490
	NN Group NV		Insurance		455		22,294
a	QIAGEN NV		Life Sciences Tools & Services		322		15,618
	Randstad NV		Professional Services		163		11,491
a	Signify NV		Electrical Equipment		180		9,300
	Wolters Kluwer NV		Professional Services		388		33,800


							978,174

	Norway 1.1%
	Aker ASA		Diversified Financial Services		33		2,530
	Aker BP ASA		Oil, Gas & Consumable Fuels		156		4,437
	DNB ASA		Banks		1,485		31,661
	Equinor ASA		Oil, Gas & Consumable Fuels		1,393		27,301
	Gjensidige Forsikring ASA		Insurance		234		5,499



franklintempleton.com	Annual Report	227

FRANKLIN TEMPLETON ETF TRUST

STATEMENT OF INVESTMENTS

Franklin FTSE Europe Hedged ETF (continued)



		Industry		Shares		Value
	Common Stocks and Other Equity Interests (continued)
	Norway (continued)
	Leroy Seafood Group ASA		Food Products		354	$	3,032
	Mowi ASA		Food Products		619		15,387
	Norsk Hydro ASA		Metals & Mining		1,969		12,631
	Orkla ASA		Food Products		1,123		11,030
	Salmar ASA		Food Products		75		5,184
c	Scatec ASA, 144A		Independent Power and Renewable Electricity Producers		168		5,089
a	Schibsted ASA, A		Media		111		4,668
a	Schibsted ASA, B		Media		135		4,839
	Telenor ASA		Diversified Telecommunication Services		923		16,273
	Tomra Systems ASA		Commercial Services & Supplies		165		7,158
	Yara International ASA		Chemicals		244		12,714


							169,433

	Poland 0.5%
a	Allegro.eu		Internet & Direct Marketing Retail		546		7,689
a	Bank Pekao SA		Banks		219		3,919
a	CD Projekt SA		Entertainment		90		4,345
	Cyfrowy Polsat SA		Media		369		2,764
a	Dino Polska SA		Food & Staples Retailing		69		4,557
a	InPost SA		Air Freight & Logistics		285		4,678
a	KGHM Polska Miedz SA		Metals & Mining		199		9,592
a	LPP SA		Textiles, Apparel & Luxury Goods		2		4,118
	Polski Koncern Naftowy Orlen SA		Oil, Gas & Consumable Fuels		438		7,044
	Polskie Gornictwo Naftowe i Gazownictwo SA		Oil, Gas & Consumable Fuels		2,403		3,662
a	Powszechna Kasa Oszczednosci Bank Polski SA		Banks		1,255		10,410
a	Powszechny Zaklad Ubezpieczen SA		Insurance		789		6,818
a	Santander Bank Polska SA		Banks		39		2,161


							71,757

	Portugal 0.2%
	EDP - Energias de Portugal SA		Electric Utilities		4,080		23,353
	Galp Energia SGPS SA, B		Oil, Gas & Consumable Fuels		738		8,604
	Jeronimo Martins SGPS SA		Food & Staples Retailing		345		5,819


							37,776

	Russia 0.1%
	Evraz PLC		Metals & Mining		816		6,508
	Polymetal International PLC		Metals & Mining		525		10,282


							16,790

	Spain 3.8%

	Acciona SA		Electric Utilities		33		5,542
	ACS Actividades de Construccion y Servicios SA		Construction & Engineering		328		10,894
a	Aena SME SA		Transportation Infrastructure		102		16,579
a	Amadeus IT Group SA		IT Services		617		43,785
	Banco Bilbao Vizcaya Argentaria SA		Banks		9,654		50,219
a	Banco Santander SA		Banks		24,825		84,525
	Bankinter SA		Banks		972		6,763
	CaixaBank SA		Banks		6,398		19,846
	Cellnex Telecom SA		Diversified Telecommunication Services		495		28,565
	Corporacion Mapfre SA		Insurance		1,374		2,868
	EDP Renovaveis SA		Independent Power and Renewable Electricity Producers		342		7,324
	Enagas SA		Gas Utilities		830		20,255



228	Annual Report	franklintempleton.com

FRANKLIN TEMPLETON ETF TRUST

STATEMENT OF INVESTMENTS

Franklin FTSE Europe Hedged ETF (continued)



		Industry			Shares		Value
	Common Stocks and Other Equity Interests (continued)
	Spain (continued)
	Ferrovial SA		Construction & Engineering			690	$	18,028
	Grifols SA		Biotechnology			480		12,597
	Iberdrola SA		Electric Utilities			8,513		109,909
	Industria de Diseno Textil SA		Specialty Retail			1,524		50,331
	Inmobiliaria Colonial SA		Equity Real Estate Investment Trusts (REITs	)		459		4,453
	Merlin Properties Socimi SA		Equity Real Estate Investment Trusts (REITs	)		477		4,889
	Naturgy Energy Group SA		Gas Utilities			436		10,710
	Red Electrica Corp. SA		Electric Utilities			615		10,914
	Repsol SA		Oil, Gas & Consumable Fuels			1,978		24,549
	Siemens Gamesa Renewable Energy SA		Electrical Equipment			331		12,838
	Telefonica SA		Diversified Telecommunication Services			6,963		31,237
	Zardoya Otis SA		Machinery			231		1,480


								589,100

	Sweden 5.9%
a	Alfa Laval AB		Machinery			456		13,811
	Assa Abloy AB, B		Building Products			1,330		38,299
	Atlas Copco AB		Machinery			548		28,575
	Atlas Copco AB, A		Machinery			913		55,683
	Boliden AB		Metals & Mining			400		14,869
	Castellum AB		Real Estate Management & Development			399		8,817
	Electrolux AB, B		Household Durables			341		9,475
	Elekta AB, B		Health Care Equipment & Supplies			504		6,548
	Epiroc AB, A		Machinery			902		20,469
	Epiroc AB, B		Machinery			548		11,439
	EQT AB		Capital Markets			285		9,400
	Ericsson, B		Communications Equipment			4,349		57,654
	Essity AB, B		Household Products			881		27,887
b,c	Evolution Gaming Group AB, 144A, Reg S		Hotels, Restaurants & Leisure			231		34,082
a	Fastighets AB Balder, B		Real Estate Management & Development			141		6,998
	Getinge AB, B		Health Care Equipment & Supplies			332		9,237
a	Hennes & Mauritz AB, B		Specialty Retail			1,271		28,690
	Hexagon AB, B		Electronic Equipment, Instruments & Components			370		34,197
	Holmen AB, B		Paper & Forest Products			138		6,070
	Husqvarna AB, A		Household Durables			36		520
	Husqvarna AB, B		Household Durables			576		8,313
	ICA Gruppen AB		Food & Staples Retailing			111		5,438
a	Industrivarden AB, A		Diversified Financial Services			307		11,313
a	Industrivarden AB, C		Diversified Financial Services			247		8,683
a	Indutrade AB		Trading Companies & Distributors			396		9,159
	Investment AB Latour, B		Industrial Conglomerates			204		5,294
	Investor AB, A		Diversified Financial Services			195		15,493
	Investor AB, B		Diversified Financial Services			658		52,572
a	Kinnevik AB, A		Diversified Financial Services			21		1,089
a	Kinnevik AB, B		Diversified Financial Services			349		17,001
a	L E Lundbergforetagen AB, B		Diversified Financial Services			105		5,744
	Lifco AB, B		Industrial Conglomerates			68		6,335
	Lundin Energy AB		Oil, Gas & Consumable Fuels			267		8,405
	Nibe Industrier AB		Building Products			438		13,608
a	Saab AB, B		Aerospace & Defense			129		3,537
	Sagax AB, B		Real Estate Management & Development			243		5,264
	Sagax AB, D		Real Estate Management & Development			165		612
a	Sandvik AB		Machinery			1,561		42,731
	Securitas AB, B		Commercial Services & Supplies			459		7,820
a,b	Sinch AB, Reg S		Software			63		11,102
a	Skandinaviska Enskilda Banken AB, A		Banks			2,083		25,439



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STATEMENT OF INVESTMENTS

Franklin FTSE Europe Hedged ETF (continued)



		Industry		Shares		Value
	Common Stocks and Other Equity Interests (continued)
	Sweden (continued)
a	Skandinaviska Enskilda Banken AB, C		Banks		30	$	367
	Skanska AB, B		Construction & Engineering		522		13,115
	SKF AB, B		Machinery		560		15,946
a	Svenska Cellulosa AB, A		Paper & Forest Products		36		643
a	Svenska Cellulosa AB, B		Paper & Forest Products		862		15,284
	Svenska Handelsbanken AB, A		Banks		2,153		23,431
	Svenska Handelsbanken AB, B		Banks		60		735
	Sweco AB, B		Construction & Engineering		282		4,614
	Swedbank AB, A		Banks		1,454		25,673
	Swedish Match AB		Tobacco		219		17,130
a	Swedish Orphan Biovitrum AB		Biotechnology		252		4,037
	Tele2 AB, B		Wireless Telecommunication Services		759		10,258
	Telefonaktiebolaget LM Ericsson, A		Communications Equipment		45		611
	Telia Co. AB		Diversified Telecommunication Services		3,725		16,167
a	Trelleborg AB, B		Machinery		360		9,169
a	Volvo AB, A		Machinery		304		7,778
a	Volvo AB, B		Machinery		2,189		55,477


							908,107

	Switzerland 14.4%
	ABB Ltd.		Electrical Equipment		2,466		74,833
	Adecco Group AG		Professional Services		226		15,282
a	Alcon Inc.		Health Care Equipment & Supplies		677		47,605
	Baloise Holding AG		Insurance		66		11,276
	Banque Cantonale Vaudoise		Banks		39		3,821
	Barry Callebaut AG		Food Products		4		9,078
	BKW AG		Electric Utilities		26		2,840
	Chocoladefabriken Lindt & Spruengli AG		Food Products		3		26,298
	Cie Financiere Richemont SA		Textiles, Apparel & Luxury Goods		740		71,346
	Clariant AG		Chemicals		335		6,784
	Coca-Cola HBC AG		Beverages		288		9,179
	Credit Suisse Group AG		Capital Markets		3,513		36,961
	DKSH Holding AG		Professional Services		51		3,931
	EMS-Chemie Holding AG		Chemicals		10		8,968
a	Flughafen Zurich AG		Transportation Infrastructure		27		4,455
	Geberit AG		Building Products		52		33,239
	Georg Fischer AG		Machinery		6		8,052
	Givaudan AG		Chemicals		13		50,307
	Helvetia Holding AG		Insurance		51		6,015
	Julius Baer Group Ltd.		Capital Markets		313		20,101
	Kuehne + Nagel International AG		Marine		73		20,919
a	LafargeHolcim Ltd., B		Construction Materials		742		43,788
	Logitech International SA		Technology Hardware, Storage & Peripherals		213		22,437
	Lonza Group AG		Life Sciences Tools & Services		107		60,074
	Nestle SA		Food Products		4,042		452,408
	Novartis AG		Pharmaceuticals		3,074		263,812
	OC Oerlikon Corp. AG		Machinery		264		3,066
	Partners Group Holding AG		Capital Markets		33		42,322
	PSP Swiss Property AG		Real Estate Management & Development		64		7,834
	Roche Holding AG		Pharmaceuticals		39		13,385
	Roche Holding AG		Pharmaceuticals		1,010		327,795
	Schindler Holding AG		Machinery		27		7,769
	Schindler Holding AG, PC		Machinery		59		17,403
	SGS SA		Professional Services		9		25,638
	SIG Combibloc Group AG		Containers & Packaging		464		10,777
	Sika AG		Chemicals		201		57,663



230	Annual Report	franklintempleton.com

FRANKLIN TEMPLETON ETF TRUST

STATEMENT OF INVESTMENTS

Franklin FTSE Europe Hedged ETF (continued)



		Industry			Shares		Value
	Common Stocks and Other Equity Interests (continued)
	Switzerland (continued)
a	Sonova Holding AG		Health Care Equipment & Supplies			77	$	20,486
	STMicroelectronics NV		Semiconductors & Semiconductor Equipment			917		35,016
	Straumann Holding AG		Health Care Equipment & Supplies			15		18,791
	Sulzer AG		Machinery			24		2,711
	Swatch Group AG		Textiles, Apparel & Luxury Goods			42		12,134
	Swatch Group AG		Textiles, Apparel & Luxury Goods			63		3,524
	Swiss Life Holding AG		Insurance			46		22,708
	Swiss Prime Site AG		Real Estate Management & Development			110		10,186
	Swiss Re AG		Insurance			407		40,201
	Swisscom AG		Diversified Telecommunication Services			37		19,932
	Tecan Group AG		Life Sciences Tools & Services			18		8,021
	Temenos AG		Software			88		12,721
	UBS Group AG		Capital Markets			4,862		75,605
b	VAT Group AG, Reg S		Machinery			38		10,692
	Vifor Pharma AG		Pharmaceuticals			75		10,252
	Zurich Insurance Group AG		Insurance			216		92,583


								2,223,024


	United Arab Emirates 0.0%^†
a	NMC Health PLC		Health Care Providers & Services			60		—

	United Kingdom 21.7%
	3i Group PLC		Capital Markets			1,381		21,978
	Admiral Group PLC		Insurance			302		12,921
	Anglo American PLC		Metals & Mining			1,784		69,965
	Antofagasta PLC		Metals & Mining			503		11,728
	Ashmore Group PLC		Capital Markets			657		3,548
	Ashtead Group PLC		Trading Companies & Distributors			648		38,685
a	Associated British Foods PLC		Food Products			504		16,793
	AstraZeneca PLC		Pharmaceuticals			1,904		190,375
a	Auto Trader Group PLC		Interactive Media & Services			1,394		10,663
	Avast PLC		Software			783		4,926
	AVEVA Group PLC		Software			159		7,507
	Aviva PLC		Insurance			5,680		31,989
	B&M European Value Retail SA		Multiline Retail			1,319		9,605
	BAE Systems PLC		Aerospace & Defense			4,661		32,475
	Barclays PLC		Banks			25,066		64,298
a	Barratt Developments PLC		Household Durables			1,468		15,126
	Bellway PLC		Household Durables			184		8,639
	BHP Group PLC		Metals & Mining			3016		87,156
	BP PLC		Oil, Gas & Consumable Fuels			28,767		116,946
	British American Tobacco PLC		Tobacco			3,311		126,721
	British Land Co. PLC		Equity Real Estate Investment Trusts (REITs	)		1,317		9,172
a	BT Group PLC		Diversified Telecommunication Services			12,615		26,943
	Bunzl PLC		Trading Companies & Distributors			492		15,769
a	Burberry Group PLC		Textiles, Apparel & Luxury Goods			588		15,402
a	Centrica PLC		Multi-Utilities			8,274		6,180
a	CNH Industrial NV		Machinery			1,427		22,130
a	Compass Group PLC		Hotels, Restaurants & Leisure			2,584		52,105
	ConvaTec Group PLC		Health Care Equipment & Supplies			2,250		6,088
	Croda International PLC		Chemicals			198		17,341
	DCC PLC		Industrial Conglomerates			144		12,497
	Derwent London PLC		Equity Real Estate Investment Trusts (REITs	)		141		6,280
	Diageo PLC		Beverages			3,327		137,226
	Direct Line Insurance Group PLC		Insurance			2,032		8,783
a	DS Smith PLC		Containers & Packaging			1,883		10,592
a	easyJet PLC		Airlines			324		4,373



franklintempleton.com	Annual Report	231

FRANKLIN TEMPLETON ETF TRUST

STATEMENT OF INVESTMENTS

Franklin FTSE Europe Hedged ETF (continued)



		Industry			Shares		Value
	Common Stocks and Other Equity Interests (continued)
	United Kingdom (continued)
	Experian PLC		Professional Services			1,314	$	45,269
	Ferguson PLC		Trading Companies & Distributors			326		38,987
	Fresnillo PLC		Metals & Mining			264		3,148
	GlaxoSmithKline PLC		Pharmaceuticals			7,150		127,059
a	GVC Holdings PLC		Hotels, Restaurants & Leisure			841		17,614
	Halma PLC		Electronic Equipment, Instruments & Components			549		17,982
	Hargreaves Lansdown PLC		Capital Markets			537		11,421
	Hikma Pharmaceuticals PLC		Pharmaceuticals			240		7,536
a	Hiscox Ltd.		Insurance			474		5,627
	HomeServe PLC		Commercial Services & Supplies			387		6,413
a	Howden Joinery Group PLC		Trading Companies & Distributors			807		8,161
	HSBC Holdings PLC		Banks			29,554		172,563
	IMI PLC		Machinery			401		7,380
	Imperial Brands PLC		Tobacco			1,367		28,140
a	Informa PLC		Media			2,169		16,752
a	InterContinental Hotels Group PLC		Hotels, Restaurants & Leisure			265		18,190
	Intermediate Capital Group PLC		Capital Markets			405		10,293
a	International Consolidated Airlines Group SA		Airlines			1,593		4,358
	Intertek Group PLC		Professional Services			234		18,086
a	ITV PLC		Media			5,521		9,152
	J Sainsbury PLC		Food & Staples Retailing			2,319		7,759
a	JD Sports Fashion PLC		Specialty Retail			645		7,338
	Johnson Matthey PLC		Chemicals			278		11,557
a	Kingfisher PLC		Specialty Retail			3,084		13,544
	Land Securities Group PLC		Equity Real Estate Investment Trusts (REITs	)		1,053		10,026
	Legal & General Group PLC		Insurance			8,592		33,086
a	Lloyds Banking Group PLC		Banks			102,006		59,863
	London Stock Exchange Group PLC		Capital Markets			525		50,269
	M&G PLC		Diversified Financial Services			3,823		10,939
a	Meggitt PLC		Aerospace & Defense			1,110		7,311
a	Melrose Industries PLC		Electrical Equipment			6,991		16,098
	Mondi PLC		Paper & Forest Products			703		17,944
	National Grid PLC		Multi-Utilities			5,144		61,320
	Natwest Group PLC		Banks			6,589		17,841
a	Next PLC		Multiline Retail			185		20,077
a	Ocado Group PLC		Internet & Direct Marketing Retail			704		19,766
	Pearson PLC		Media			1,108		11,795
	Pennon Group PLC		Water Utilities			597		8,031
	Persimmon PLC		Household Durables			460		18,659
	Phoenix Group Holdings PLC		Insurance			771		7,810
	Prudential PLC		Insurance			3,783		80,405
	Quilter PLC		Capital Markets			2,448		5,399
	Reckitt Benckiser Group PLC		Household Products			915		82,032
	RELX PLC		Professional Services			2,695		67,636
	Renishaw PLC		Electronic Equipment, Instruments & Components			48		4,245
^a	Rentokil Initial PLC		Commercial Services & Supplies			2,691		17,985
^a	Rightmove PLC		Interactive Media & Services			1,284		10,314
^a	Rolls-Royce Holdings PLC		Aerospace & Defense			10,836		15,743
	Royal Dutch Shell Plc, A		Oil, Gas & Consumable Fuels			5,952		116,101
	Royal Dutch Shell Plc, B		Oil, Gas & Consumable Fuels			5,379		99,076
	RSA Insurance Group PLC		Insurance			1,509		14,178
	Schroders PLC		Capital Markets			159		7,678
	Segro PLC		Equity Real Estate Investment Trusts (REITs	)		1,725		22,315
	Severn Trent PLC		Water Utilities			350		11,136
	Smith & Nephew PLC		Health Care Equipment & Supplies			1,269		24,127
	Smiths Group PLC		Industrial Conglomerates			583		12,367



232	Annual Report	franklintempleton.com

FRANKLIN TEMPLETON ETF TRUST

STATEMENT OF INVESTMENTS

Franklin FTSE Europe Hedged ETF (continued)



		Industry		Shares		Value
	Common Stocks and Other Equity Interests (continued)
	United Kingdom (continued)
	Spirax-Sarco Engineering PLC		Machinery		107	$	16,830
	SSE PLC		Electric Utilities		1,508		30,273
	St. James’s Place Capital PLC		Capital Markets		776		13,640
	Standard Chartered PLC		Banks		3,748		25,830
	Standard Life Aberdeen PLC		Capital Markets		3,078		12,311
	Tate & Lyle PLC		Food Products		694		7,346
a	Taylor Wimpey PLC		Household Durables		5,270		13,121
a	TechnipFMC PLC		Energy Equipment & Services		648		4,961
	Tesco PLC		Food & Staples Retailing		11,076		34,972
	The Berkeley Group Holdings PLC		Household Durables		167		10,228
	The Sage Group PLC		Software		1,596		13,494
a	THG PLC		Internet & Direct Marketing Retail		870		7,484
a	Travis Perkins PLC		Trading Companies & Distributors		376		7,997
	Unilever PLC		Personal Products		3,688		206,383
	United Utilities Group PLC		Water Utilities		1,005		12,837
	Vodafone Group PLC		Wireless Telecommunication Services		38,856		70,700
a	Weir Group PLC		Machinery		369		9,047
a	Whitbread PLC		Hotels, Restaurants & Leisure		295		13,944
	William Morrison Supermarkets PLC		Food & Staples Retailing		3,186		8,020
	WPP PLC		Media		1,721		21,859


							3,350,103

	United States 0.3%
	Stellantis NV		Automobiles		2,972		52,688

	Total Common Stocks and Other Equity Interests (Cost $14,654,340)						15,189,844

	Preferred Stocks 1.1%
	Germany 1.1%
d	Bayerische Motoren Werke AG, 3.714%, pfd.		Automobiles		81		6,459
d	Fuchs Petrolub SE, 2.375%, pfd.		Chemicals		96		4,608
d	Henkel AG & Co. KGaA, 1.930%, pfd.		Household Products		253		28,504
d	Porsche Automobil Holding SE, 2.444%, pfd.		Automobiles		222		23,592
d	Sartorius AG, 0.085%, pfd.		Health Care Equipment & Supplies		50		24,987
d	Volkswagen AG, 2.037%, pfd.		Automobiles		266		74,594

	Total Preferred Stocks (Cost $137,647)						162,744

	Total Investments before Short Term Investments (Cost $14,791,987)						15,352,588

	Short Term Investments (Cost $157,303) 1.0%
	United States 1.0%
e,f	Institutional Fiduciary Trust Portfolio, 0.01%		Money Market Funds		157,303		157,303

	Total Investments (Cost $14,949,290) 100.5%						15,509,891

	Other Assets, less Liabilities (0.5)%						(80,765	)

	Net Assets 100.0%					$	15,429,126

See Abbreviations on page 355.

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

^aNon-income producing.



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FRANKLIN TEMPLETON ETF TRUST

STATEMENT OF INVESTMENTS

Franklin FTSE Europe Hedged ETF (continued)

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

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

^fThe rate shown is the annualized seven-day effective yield at period end.

At March 31, 2021 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
Polish Zloty		BOFA		Buy		259,500	$	65,762		4/02/21	$	1	$	—
Polish Zloty		BOFA		Sell		173,000		46,459		4/02/21		2,617		—
Polish Zloty		BOFA		Sell		86,500		22,121		4/02/21		201		—
Euro		BOFA		Buy		2,017,601		2,371,237		4/06/21		47		—
Euro		HSBK		Buy		2,017,601		2,371,250		4/06/21		35		—
Euro		UBSW		Buy		2,017,601		2,371,262		4/06/21		23		—
Euro		BOFA		Sell		1,345,067		1,633,942		4/06/21		53,085		—
Euro		BOFA		Sell		672,534		795,847		4/06/21		5,418		—
Euro		HSBK		Sell		1,345,067		1,633,939		4/06/21		53,083		—
Euro		HSBK		Sell		672,534		795,853		4/06/21		5,424		—
Euro		UBSW		Sell		1,345,067		1,633,963		4/06/21		53,107		—
Euro		UBSW		Sell		672,534		795,851		4/06/21		5,422		—
Great British Pound		DBAB		Buy		2,528,100		3,484,227		4/06/21		3,793		—
Great British Pound		DBAB		Sell		1,685,400		2,356,868		4/06/21		31,521		—
Great British Pound		DBAB		Sell		842,700		1,157,109		4/06/21		—		(5,565	)
Swedish Krona		BOFA		Buy		6,900,600		791,673		4/06/21		16		—
Swedish Krona		BOFA		Sell		4,600,400		547,860		4/06/21		20,068		—
Swedish Krona		BOFA		Sell		2,300,200		267,606		4/06/21		3,710		—
Swiss Franc		MSCO		Buy		1,873,800		1,990,919		4/06/21		50		—
Swiss Franc		MSCO		Sell		1,249,200		1,381,257		4/06/21		53,945		—
Swiss Franc		MSCO		Sell		624,600		667,985		4/06/21		4,329		—
Danish Krone		BOFA		Buy		3,266,550		516,200		4/07/21		10		—
Danish Krone		BOFA		Sell		2,177,700		355,652		4/07/21		11,512		—
Danish Krone		BOFA		Sell		1,088,850		173,262		4/07/21		1,192		—
Norwegian Krone		BOFA		Buy		1,369,500		160,428		4/07/21		3		—
Norwegian Krone		BOFA		Sell		913,000		106,006		4/07/21		—		(948	)
Norwegian Krone		BOFA		Sell		456,500		53,307		4/07/21		—		(170	)
Danish Krone		BOFA		Sell		3,493,700		552,325		5/04/21		—		(31	)
Euro		BOFA		Sell		2,227,633		2,619,576		5/04/21		—		(77	)
Euro		HSBK		Sell		2,227,633		2,619,607		5/04/21		—		(46	)
Euro		UBSW		Sell		2,227,633		2,619,603		5/04/21		—		(51	)
Norwegian Krone		BOFA		Sell		1,500,700		175,795		5/04/21		—		(10	)
Swedish Krona		BOFA		Sell		7,945,200		911,732		5/04/21		—		(41	)
Swiss Franc		MSCO		Sell		2,077,300		2,208,809		5/04/21		—		(71	)
Great British Pound		DBAB		Sell		2,690,700		3,708,662		5/05/21		—		(4,062	)
Polish Zloty		BOFA		Sell		266,600		67,569		5/05/21		—		(3	)

Total Forward Exchange Contracts											$	308,612	$	(11,075	)

Net unrealized appreciation (depreciation)													$	297,537

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



234	Annual Report \|	franklintempleton.com

FRANKLIN TEMPLETON ETF TRUST

STATEMENT OF INVESTMENTS

Franklin FTSE Europe Hedged ETF (continued)

At March 31, 2021, 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

90,874

6/18/21

2,183

*As of period end.

See Note 8 regarding other derivative information.



franklintempleton.com	The accompanying notes are an integral part of these financial statements. \| Annual Report	235

FRANKLIN TEMPLETON ETF TRUST

Financial Highlights

Franklin FTSE France ETF



	Year Ended March 31,

	2021			2020			2019			2018^a

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

Net asset value, beginning of year	$	19.34		$	23.86		$	25.33		$	25.32


Income from investment operations^b:

Net investment income^c		0.40			0.52			0.70			0.08

Net realized and unrealized gains (losses)		9.10			(4.47	)		(1.48	)		(0.01	)


Total from investment operations		9.50			(3.95	)		(0.78	)		0.07


Less distributions from net investment income		(0.40	)		(0.57	)		(0.69	)		(0.06	)


Net asset value, end of year	$	28.44		$	19.34		$	23.86		$	25.33


Total return^d		49.47%			(17.08)%			(3.07)%			0.26%

Ratios to average net assets^e

Total expenses		0.09%			0.09%			0.09%			0.09%

Net investment income		1.68%			2.14%			2.90%			0.78%

Supplemental data

Net assets, end of year (000’s)		$7,111			$8,702			$2,386			$2,533

Portfolio turnover rate^f		4.56%^g			2.60%^g			5.80%			1.90%

^aFor the period November 2, 2017 (commencement of operations) to March 31, 2018.

^cBased on average daily shares outstanding.

^eRatios are annualized for periods less than one year.

^fPortfolio turnover rate includes portfolio transactions that are executed as a result of the Fund offering and redeeming Creation Units solely for cash (“Cash creations”).

^gPortfolio turnover rate excluding cash creations was as follows:

4.56%

2.60%



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

FRANKLIN TEMPLETON ETF TRUST

Statement of Investments, March 31, 2021

Franklin FTSE France ETF



		Industry		Shares		Value
	Common Stocks 99.9%
	France 97.3%
a	Accor SA		Hotels, Restaurants & Leisure		740	$	27,970
a	Aeroports de Paris SA		Transportation Infrastructure		115		13,773
	Air Liquide SA		Chemicals		1,885		308,611
a	Airbus SE		Aerospace & Defense		2,250		255,293
b	,17		Road & Rail		330		4,840
a	Alstom SA		Machinery		1,100		54,971
a,b	Amundi SA, 144A		Capital Markets		230		18,436
	Arkema SA		Chemicals		270		32,796
a	Atos SE		IT Services		380		29,709
	AXA SA		Insurance		7,805		209,929
	Biomerieux		Health Care Equipment & Supplies		175		22,316
a	BNP Paribas SA		Banks		4,395		267,983
	Bollore		Entertainment		4,005		19,384
	Bouygues SA		Construction & Engineering		860		34,558
a	Bureau Veritas SA		Professional Services		1,150		32,803
	Capgemini SE		IT Services		640		109,143
	Carrefour SA		Food & Staples Retailing		2,350		42,658
a	Casino Guichard-Perrachon SA		Food & Staples Retailing		225		7,521
	Cie Generale des Etablissements Michelin SCA		Auto Components		710		106,519
a	CNP Assurances		Insurance		605		11,526
a	Compagnie de Saint-Gobain		Building Products		1,935		114,438
	Covivio		Equity Real Estate Investment Trusts (REITs)		205		17,588
a	Credit Agricole SA		Banks		4,735		68,700
	Danone SA		Food Products		2,435		167,418
a	Dassault Aviation SA		Aerospace & Defense		10		11,154
	Dassault Systemes		Software		535		114,690
	Edenred		IT Services		995		52,086
a	EDF SA		Electric Utilities		2,080		27,966
a	Eiffage SA		Construction & Engineering		305		30,599
a	Engie SA		Multi-Utilities		6,710		95,463
	EssilorLuxottica SA		Textiles, Apparel & Luxury Goods		1,195		195,012
a	Eurazeo SE		Diversified Financial Services		175		13,348
a	Faurecia SE		Auto Components		480		25,629
	Gecina SA		Equity Real Estate Investment Trusts (REITs)		210		28,976
a	Getlink SE		Transportation Infrastructure		1,845		28,363
	Hermes International		Textiles, Apparel & Luxury Goods		125		138,685
	ICADE		Equity Real Estate Investment Trusts (REITs)		130		9,526
	Iliad SA		Diversified Telecommunication Services		60		11,431
	Imerys SA		Construction Materials		160		7,808
	Ipsen SA		Pharmaceuticals		140		12,036
a	JCDecaux SA		Media		295		7,454
	Kering SA		Textiles, Apparel & Luxury Goods		300		207,534
	Klepierre SA		Equity Real Estate Investment Trusts (REITs)		745		17,411
	L’Oreal SA		Personal Products		975		374,486
b	La Francaise des Jeux SAEM, 144A		Hotels, Restaurants & Leisure		355		16,176
	Legrand SA		Electrical Equipment		1,085		101,149
	LVMH Moet Hennessy Louis Vuitton SE		Textiles, Apparel & Luxury Goods		1,010		674,364
a	Natixis SA		Capital Markets		3,405		16,336
a,b	Neoen SA, 144A		Independent Power and Renewable Electricity Producers		110		5,527
	Orange SA		Diversified Telecommunication Services		7,745		95,624
a	Orpea		Health Care Providers & Services		200		23,224
	Pernod Ricard SA		Beverages		840		158,010
	Plastic Omnium SA		Auto Components		225		8,261
	Publicis Groupe		Media		900		55,046
	Remy Cointreau SA		Beverages		100		18,511
a	Renault SA		Automobiles		745		32,336
a	Rexel SA		Trading Companies & Distributors		1,225		24,332



franklintempleton.com	Annual Report	237

FRANKLIN TEMPLETON ETF TRUST

STATEMENT OF INVESTMENTS

Franklin FTSE France ETF (continued)



		Industry		Shares		Value
	Common Stocks (continued)
	France (continued)
	Rubis SCA		Gas Utilities		385	$	18,281
a	Safran SA		Aerospace & Defense		1,305		177,993
	Sanofi		Pharmaceuticals		4,420		437,664
	Sartorius Stedim Biotech		Life Sciences Tools & Services		95		39,213
	Schneider Electric SE		Electrical Equipment		2,135		326,832
a	SCOR SE		Insurance		635		21,718
	SEB SA		Household Durables		121		21,389
a	Societe Generale SA		Banks		3,140		82,352
a	Sodexo SA		Hotels, Restaurants & Leisure		350		33,641
a	SOITEC		Semiconductors & Semiconductor Equipment		85		17,413
	Suez SA		Multi-Utilities		1,510		32,051
a	Technip Energies NV		Energy Equipment & Services		373		5,677
	Teleperformance		Professional Services		235		85,842
	Thales SA		Aerospace & Defense		405		40,326
	Total SE		Oil, Gas & Consumable Fuels		9,840		459,996
a	Ubisoft Entertainment SA		Entertainment		385		29,358
	Valeo SA		Auto Components		970		33,027
	Veolia Environnement SA		Multi-Utilities		2,040		52,412
	Vinci SA		Construction & Engineering		1,830		187,894
	Vivendi SA		Entertainment		3,165		104,155
	Wendel SE		Diversified Financial Services		110		13,691
a,b,c	Worldline SA, 144A, Reg S		IT Services		985		82,704


							6,921,065

	Luxembourg 0.7%
a	Eurofins Scientific SE		Life Sciences Tools & Services		495		47,420

	Netherlands 0.3%
c	Euronext NV, 144A, Reg S		Capital Markets		250		25,240

	Switzerland 1.4%
	STMicroelectronics NV		Semiconductors & Semiconductor Equipment		2,565		97,946

	United Kingdom 0.2%
a	TechnipFMC PLC		Energy Equipment & Services		1,860		14,240

	Total Investments (Cost $6,739,237) 99.9%						7,105,911
	Other Assets, less Liabilities 0.1%						4,602

	Net Assets 100.0%					$	7,110,513

See Abbreviations on page 355.

^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 Trust’s Board of Trustees. At March 31, 2021, the aggregate value of these securities was $127,683, representing 1.8% of net assets.



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

FRANKLIN TEMPLETON ETF TRUST

Financial Highlights

Franklin FTSE Germany ETF



	Year Ended March 31,

	2021			2020			2019			2018^a

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

Net asset value, beginning of year	$	16.73		$	20.70		$	24.60		$	25.55


Income from investment operations^b:

Net investment income^c		0.61			0.52			0.53			0.05

Net realized and unrealized gains (losses)		9.29			(3.92	)		(3.83	)		(1.00	)


Total from investment operations		9.90			(3.40	)		(3.30	)		(0.95	)


Less distributions from net investment income		(0.65	)		(0.57	)		(0.60	)		—


Net asset value, end of year	$	25.98		$	16.73		$	20.70		$	24.60


Total return^d		59.79%			(17.00)%			(13.72)%			(3.72)%

Ratios to average net assets^e

Total expenses		0.09%			0.09%			0.09%			0.09%

Net investment income		2.66%			2.46%			2.44%			0.52%

Supplemental data

Net assets, end of year (000’s)		$9,093			$4,182			$4,140			$2,460

Portfolio turnover rate^f		5.79%^g			5.74%^g			10.75%			1.75%

^aFor the period November 2, 2017 (commencement of operations) to March 31, 2018.

^cBased on average daily shares outstanding.

^eRatios are annualized for periods less than one year.

^fPortfolio turnover rate includes portfolio transactions that are executed as a result of the Fund offering and redeeming Creation Units solely for cash (“Cash creations”).

^gPortfolio turnover rate excluding cash creations was as follows:

5.79%

5.74%



franklintempleton.com	The accompanying notes are an integral part of these financial statements. \| Annual Report	239

FRANKLIN TEMPLETON ETF TRUST

Statement of Investments, March 31, 2021

Franklin FTSE Germany ETF



		Industry		Shares		Value
	Common Stocks 92.8%
	Germany 92.0%
	1&1 Drillisch AG		Wireless Telecommunication Services		266	$	7,494
a	Adidas AG		Textiles, Apparel & Luxury Goods		1,106		346,028
	Allianz SE		Insurance		2,359		601,778
	Aroundtown SA		Real Estate Management & Development		6,888		49,139
	BASF SE		Chemicals		5,250		437,106
	Bayer AG		Pharmaceuticals		5,642		357,811
	Bayerische Motoren Werke AG		Automobiles		1,841		191,425
	Bechtle AG		IT Services		154		28,941
	Beiersdorf AG		Personal Products		574		60,783
	Brenntag AG		Trading Companies & Distributors		889		76,064
	Carl Zeiss Meditec AG		Health Care Equipment & Supplies		210		31,715
a	Commerzbank AG		Banks		5,978		36,732
a	Continental AG		Auto Components		623		82,520
b	Covestro AG, 144A		Chemicals		1,036		69,818
a	CTS Eventim AG & Co. KGaA		Entertainment		336		19,524
	Daimler AG		Automobiles		4,718		421,480
a	Delivery Hero SE		Internet & Direct Marketing Retail		854		110,909
a	Deutsche Bank AG		Capital Markets		11,732		140,478
	Deutsche Boerse AG		Capital Markets		1,050		174,867
a	Deutsche Lufthansa AG		Airlines		1,715		22,787
	Deutsche Post AG		Air Freight & Logistics		5,607		307,880
	Deutsche Telekom AG		Diversified Telecommunication Services		18,529		373,913
	Deutsche Wohnen AG		Real Estate Management & Development		1,988		92,946
b	DWS Group GmbH & Co. KGaA, 144A		Capital Markets		196		8,494
	E.ON SE		Multi-Utilities		12,439		145,084
	Evonik Industries AG		Chemicals		1,099		38,956
a	Evotec SE		Life Sciences Tools & Services		833		30,095
a	Fielmann AG		Specialty Retail		140		11,197
a	Fraport AG Frankfurt Airport Services Worldwide		Transportation Infrastructure		203		12,371
	Fresenius Medical Care AG & Co. KGaA		Health Care Providers & Services		1,120		82,561
	Fresenius SE and Co. KGaA		Health Care Providers & Services		2,317		103,426
	Fuchs Petrolub SE		Chemicals		196		7,901
	GEA Group AG		Machinery		952		39,105
	Hannover Rueck SE		Insurance		343		62,807
	HeidelbergCement AG		Construction Materials		854		77,747
a	Hella GmbH & Co. KGaA		Auto Components		252		14,163
a	HelloFresh SE		Internet & Direct Marketing Retail		847		63,312
	Henkel AG & Co. KGaA		Household Products		581		57,667
	Hochtief AGHochtief AG		Construction & Engineering		112		10,044
	Infineon Technologies AG		Semiconductors & Semiconductor Equipment		7,469		317,380
	KION Group AG		Machinery		448		44,334
	Knorr-Bremse AG		Machinery		378		47,279
	Lanxess AG		Chemicals		476		35,167
	LEG Immobilien AG		Real Estate Management & Development		413		54,442
	Merck KGaA		Pharmaceuticals		742		127,148
	METRO AG		Food & Staples Retailing		749		7,932
	MTU Aero Engines AG		Aerospace & Defense		301		71,001
	Muenchener Rueckversicherungs-Gesellschaft Aktiengesellschaft in Muenchen		Insurance		805		248,450
	Nemetschek AG		Software		308		19,692
a	Osram Licht AG		Electrical Equipment		168		10,496
a	ProSiebenSat.1 Media SE		Media		896		18,360
a	Puma SE		Textiles, Apparel & Luxury Goods		518		50,860
	Rational AG		Machinery		19		14,794
	Rheinmetall AG		Industrial Conglomerates		245		24,879
	RWE AG		Multi-Utilities		3,619		142,149
	SAP SE		Software		6,440		790,348



240	Annual Report	franklintempleton.com

FRANKLIN TEMPLETON ETF TRUST

STATEMENT OF INVESTMENTS

Franklin FTSE Germany ETF (continued)



		Industry		Shares		Value
	Common Stocks (continued)
	Germany (continued)
c	Scout24 AG, Reg S		Interactive Media & Services		567	$	43,116
	Siemens AG		Industrial Conglomerates		4,312		709,505
a	Siemens Energy AG		Electrical Equipment		2,163		77,816
	Siemens Healthineers AG		Health Care Equipment & Supplies		1,288		69,937
	Symrise AG		Chemicals		721		87,620
a	Talanx AG		Insurance		308		13,090
a	TeamViewer AG		Software		903		38,663
	Telefonica Deutschland Holding AG		Diversified Telecommunication Services		3,892		11,436
a	thyssenkrupp AG		Metals & Mining		2,667		35,687
	Traton SE		Machinery		287		7,758
	Uniper SE		Independent Power and Renewable Electricity Producers		644		23,373
	United Internet AG		Diversified Telecommunication Services		623		25,042
a	Varta AG		Electrical Equipment		84		12,390
	Volkswagen AG		Automobiles		182		66,139
	Vonovia SE		Real Estate Management & Development		3,248		212,628
	Wacker Chemie AG		Chemicals		84		11,980
a	Zalando SE		Internet & Direct Marketing Retail		931		91,519


							8,369,478

	Luxembourg 0.1%
a	RTL Group SA		Media		217		12,742

	Netherlands 0.7%
a	QIAGEN NV		Life Sciences Tools & Services		1,267		61,456

	Total Common Stocks (Cost $7,648,621)						8,443,676

	Preferred Stocks 7.1%
	Germany 7.1%
d	Bayerische Motoren Werke AG, 3.714%, pfd.		Automobiles		329		26,236
d	Fuchs Petrolub SE, 2.375%, pfd.		Chemicals		399		19,152
d	Henkel AG & Co. KGaA, 1.930%, pfd.		Household Products		1,001		112,777
d	Porsche Automobil Holding SE, 2.444%, pfd.		Automobiles		882		93,730
d	Sartorius AG, 0.085%, pfd.		Health Care Equipment & Supplies		196		97,948
d	Volkswagen AG, 2.037%, pfd.		Automobiles		1,050		294,448

	Total Preferred Stocks (Cost $455,645)						644,291

	Total Investments (Cost $8,104,266) 99.9%						9,087,967
	Other Assets, less Liabilities 0.1%						4,837

	Net Assets 100.0%					$	9,092,804

^aNon-income producing.

^cSecurity was purchased pursuant to Regulation S under the Securities Act of 1933, which exempts from registration securities offered and sold outside of the United States. Such a security cannot be sold in the United States without either an effective registration statement filed pursuant to the Securities Act of 1933, or pursuant to an exemption from registration. At March 31, 2021, the value of this security was $43,116, 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. \| Annual Report	241

FRANKLIN TEMPLETON ETF TRUST

Financial Highlights

Franklin FTSE Hong Kong ETF



	Year Ended March 31,

	2021			2020			2019			2018^a

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

Net asset value, beginning of year	$	20.58		$	26.82		$	26.17		$	25.30


Income from investment operations^b:

Net investment income^c		0.72			0.77			0.66			0.16

Net realized and unrealized gains (losses)		7.61			(6.25	)		0.59			0.78


Total from investment operations		8.33			(5.48	)		1.25			0.94


Less distributions from net investment income		(0.81	)		(0.76	)		(0.60	)		(0.07	)


Net asset value, end of year	$	28.10		$	20.58		$	26.82		$	26.17


Total return^d		41.14%			(20.90)%			4.97%			3.70%

Ratios to average net assets^e

Total expenses		0.09%			0.09%			0.09%			0.09%

Net investment income		2.99%			3.10%			2.67%			1.49%

Supplemental data

Net assets, end of year (000’s)		$16,862			$15,433			$20,118			$7,852

Portfolio turnover rate^f		14.84%^g			5.99%^g			5.33%			0.93%

^aFor the period November 2, 2017 (commencement of operations) to March 31, 2018.

^cBased on average daily shares outstanding.

^eRatios are annualized for periods less than one year.

^fPortfolio turnover rate includes portfolio transactions that are executed as a result of the Fund offering and redeeming Creation Units solely for cash (“Cash creations”).

^gPortfolio turnover rate excluding cash creations was as follows:

14.84%

5.99%



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

FRANKLIN TEMPLETON ETF TRUST

Statement of Investments, March 31, 2021

Franklin FTSE Hong Kong ETF



		Industry		Shares		Value
	Common Stocks 99.9%
	Cambodia 0.3%
	NagaCorp Ltd.		Hotels, Restaurants & Leisure		42,000	$	49,593

	China 8.0%
	AAC Technologies Holdings Inc.		Electronic Equipment, Instruments & Components		19,000		95,679
	Budweiser Brewing Co. APAC Ltd.		Beverages		47,600		142,045
a	China Travel International Investment Hong Kong Ltd.		Hotels, Restaurants & Leisure		72,000		12,225
	Chow Tai Fook Jewellery Co. Ltd.		Specialty Retail		48,800		74,570
a	FIH Mobile Ltd.		Electronic Equipment, Instruments & Components		84,000		11,885
	Lee & Man Paper Manufacturing Ltd.		Paper & Forest Products		40,000		36,787
	Lenovo Group Ltd.		Technology Hardware, Storage & Peripherals		212,000		301,593
	Microport Scientific Corp.		Health Care Equipment & Supplies		13,000		73,156
	Minth Group Ltd.		Auto Components		20,040		83,517
a	MMG Ltd.		Metals & Mining		64,000		35,727
	Nexteer Automotive Group Ltd.		Auto Components		24,000		29,419
	Shangri-La Asia Ltd.		Hotels, Restaurants & Leisure		32,000		31,982
	Shui On Land Ltd.		Real Estate Management & Development		98,000		15,000
	SITC International Holdings Co. Ltd.		Marine		33,000		111,847
	Sun Art Retail Group Ltd.		Food & Staples Retailing		44,000		35,995
	Tingyi Cayman Islands Holding Corp.		Food Products		52,000		95,513
	Towngas China Co. Ltd.		Gas Utilities		28,000		13,974
	Uni-President China Holdings Ltd.		Food Products		32,000		38,938
	Want Want China Holdings Ltd.		Food Products		152,000		113,984


							1,353,836

	Hong Kong 84.0%
	AIA Group Ltd.		Insurance		273,200		3,313,773
	ASM Pacific Technology Ltd.		Semiconductors & Semiconductor Equipment		8,400		107,020
	BOC Hong Kong (Holdings) Ltd.		Banks		102,000		356,205
	Cafe de Coral Holdings Ltd.		Hotels, Restaurants & Leisure		10,000		21,661
	Cathay Pacific Airways Ltd.		Airlines		28,000		26,111
	Champion REIT		Equity Real Estate Investment Trusts (REITs)		56,000		32,846
	CK Asset Holdings Ltd.		Real Estate Management & Development		67,000		406,768
	CK Hutchison Holdings Ltd.		Industrial Conglomerates		75,500		601,615
	CK Infrastructure Holdings Ltd.		Electric Utilities		17,500		103,994
	CLP Holdings Ltd.		Electric Utilities		46,300		449,633
	Dah Sing Banking Group Ltd.		Banks		9,600		10,866
	Dah Sing Financial Group		Banks		3,200		10,537
	Dairy Farm International Holdings Ltd.		Food & Staples Retailing		8,400		36,204
a,b	ESR Cayman Ltd., 144A, Reg S		Real Estate Management & Development		51,200		167,605
	Guotai Junan International holdings Ltd.		Capital Markets		72,000		13,243
	Haitong International Securities Group Ltd.		Capital Markets		72,000		22,968
	Hang Lung Group Ltd.		Real Estate Management & Development		24,000		60,753
	Hang Lung Properties Ltd.		Real Estate Management & Development		58,000		150,699
	Hang Seng Bank Ltd.		Banks		20,400		394,909
	Henderson Land Development Co. Ltd.		Real Estate Management & Development		37,000		166,095
	Hong Kong and China Gas Co. Ltd.		Gas Utilities		292,550		462,845
	Hong Kong Exchanges and Clearing Ltd.		Capital Markets		35,700		2,100,365
	Hongkong Land Holdings Ltd.		Real Estate Management & Development		32,400		159,084
	Huabao International Holdings Ltd.		Chemicals		24,000		24,357
	Hutchison Telecommunications Hong Kong Holdings Ltd.		Wireless Telecommunication Services		32,000		6,092
	Hysan Development Co. Ltd.		Real Estate Management & Development		17,000		66,474
	Jardine Matheson Holdings Ltd.		Industrial Conglomerates		5,800		379,262
	Jardine Strategic Holdings Ltd.		Industrial Conglomerates		5,200		171,704
	Johnson Electric Holdings Ltd.		Auto Components		10,000		26,883
	JS Global Lifestyle Co. Ltd.		Household Durables		18,000		48,737
	Kerry Logistics Network Ltd.		Air Freight & Logistics		16,000		47,952
	Kerry Properties Ltd.		Real Estate Management & Development		17,000		54,776
	Lifestyle International Holdings Ltd.		Multiline Retail		14,000		12,191



franklintempleton.com	Annual Report	243

FRANKLIN TEMPLETON ETF TRUST

STATEMENT OF INVESTMENTS

Franklin FTSE Hong Kong ETF (continued)



		Industry		Shares		Value
	Common Stocks (continued)
	Hong Kong (continued)
	Link REIT		Equity Real Estate Investment Trusts (REITs)		58,400	$	531,834
	Man Wah Holdings Ltd.		Household Durables		43,200		89,573
	Melco International Development Ltd.		Hotels, Restaurants & Leisure		22,000		44,824
	MTR Corp. Ltd.		Road & Rail		40,500		229,473
	New World Development Co. Ltd.		Real Estate Management & Development		40,000		206,831
	NWS Holdings Ltd.		Industrial Conglomerates		40,000		42,241
	PCCW Ltd.		Diversified Telecommunication Services		120,000		67,606
	Power Assets Holdings Ltd.		Electric Utilities		39,000		230,254
	Samsonite International SA		Textiles, Apparel & Luxury Goods		36,000		69,458
	Shun Tak Holdings Ltd.		Industrial Conglomerates		56,000		17,143
	Sino Land Co. Ltd.		Real Estate Management & Development		94,400		131,380
	Sun Hung Kai Properties Ltd.		Real Estate Management & Development		40,000		606,088
	Swire Pacific Ltd., A		Real Estate Management & Development		14,000		104,985
	Swire Pacific Ltd., B		Real Estate Management & Development		25,000		29,520
	Swire Properties Ltd.		Real Estate Management & Development		29,600		91,567
	Techtronic Industries Co. Ltd.		Machinery		35,000		598,756
	The Bank of East Asia Ltd.		Banks		35,200		74,978
	The Wharf Holdings Ltd.		Real Estate Management & Development		38,400		101,749
a	United Energy Group Ltd.		Oil, Gas & Consumable Fuels		216,000		41,675
	Vinda International Holdings Ltd.		Household Products		8,000		27,012
	Vitasoy International Holdings Ltd.		Food Products		22,200		85,380
	VTech Holdings Ltd.		Communications Equipment		4,400		39,617
b	WH Group Ltd., Reg S		Food Products		236,000		191,242
	Wharf Real Estate Investment Co. Ltd.		Real Estate Management & Development		46,000		257,677
	Xinyi Glass Holdings Ltd.		Building Products		56,000		182,958
	Yue Yuen Industrial Holdings Ltd.		Textiles, Apparel & Luxury Goods		20,000		49,907


							14,157,955

	Indonesia 0.1%
	First Pacific Co. Ltd.		Diversified Financial Services		64,000		21,074

	Italy 0.5%
a	Prada SpA		Textiles, Apparel & Luxury Goods		14,400		89,925

	Luxembourg 0.2%
	L’Occitane International SA		Personal Products		13,000		36,202

	Macau 6.3%
a	Galaxy Entertainment Group Ltd.		Hotels, Restaurants & Leisure		60,300		542,932
	MGM China Holdings Ltd.		Hotels, Restaurants & Leisure		20,800		36,921
a	Sands China Ltd.		Hotels, Restaurants & Leisure		67,600		337,807
	SJM Holdings Ltd.		Hotels, Restaurants & Leisure		52,000		67,956
a	Wynn Macau Ltd.		Hotels, Restaurants & Leisure		41,600		80,905


							1,066,521

	Singapore 0.4%
	BOC Aviation Ltd.		Trading Companies & Distributors		6,000		58,114

	Taiwan 0.1%
a	FIT Hon Teng Ltd.		Electronic Equipment, Instruments & Components		28,000		8,788

	Total Investments (Cost $15,203,140) 99.9%						16,842,008
	Other Assets, less Liabilities 0.1%						19,589

	Net Assets 100.0%					$	16,861,597

See Abbreviations on page 355.

^aNon-income producing.



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

FRANKLIN TEMPLETON ETF TRUST

Financial Highlights

Franklin FTSE India ETF


	Year Ended March 31,

	2021			2020			2019			2018^a

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

Net asset value, beginning of year	$	15.98		$	23.36		$	22.74		$	23.72


Income from investment operations^b:

Net investment income^c		0.20			0.26			0.29			0.09

Net realized and unrealized gains (losses)		11.70			(7.43	)		0.53			(1.07	)


Total from investment operations		11.90			(7.17	)		0.82			(0.98	)


Less distributions from net investment income		(0.18	)		(0.21	)		(0.20	)		—


Net asset value, end of year	$	27.70		$	15.98		$	23.36		$	22.74


Total return^d		74.87%			(30.98)%			3.66%			(4.13)%

Ratios to average net assets^e

Total expenses		0.19%			0.19%			0.19%			0.19%

Net investment income		0.89%			1.20%			1.33%			2.78%

Supplemental data

Net assets, end of year (000’s)		$23,544			$8,790			$7,007			$2,274

Portfolio turnover rate^f		23.48%^g			36.55%^g			8.03%			1.59%

^aFor the period February 6, 2018 (commencement of operations) to March 31, 2018.

^cBased on average daily shares outstanding.

^eRatios are annualized for periods less than one year.

^fPortfolio turnover rate includes portfolio transactions that are executed as a result of the Fund offering and redeeming Creation Units solely for cash (“Cash creations”).

^gPortfolio turnover rate excluding cash creations was as follows:

16.91%

6.83%



franklintempleton.com	The accompanying notes are an integral part of these financial statements. \| Annual Report	245

FRANKLIN TEMPLETON ETF TRUST

Statement of Investments March 31, 2021

Franklin FTSE India ETF



		Industry		Shares		Value
	Common Stocks 101.8%
	India 101.8%
a	3M India Ltd.		Industrial Conglomerates		68	$	28,308
	ABB India Ltd.		Electrical Equipment		1,530		29,507
	ACC Ltd.		Construction Materials		2,125		55,317
a	Adani Enterprises Ltd.		Trading Companies & Distributors		7,446		105,014
a	Adani Green Energy Ltd.		Independent Power and Renewable Electricity Producers		11,101		167,751
a	Adani Ports And Special Economic Zone Ltd.		Transportation Infrastructure		21,522		206,761
a	Adani Power Ltd.		Independent Power and Renewable Electricity Producers		26,180		30,454
a	Adani Gas Ltd.		Gas Utilities		7,773		102,194
a	Aditya Birla Capital Ltd.		Diversified Financial Services		13,855		22,607
	Alkem Laboratories Ltd.		Pharmaceuticals		680		25,761
	Ambuja Cements Ltd.		Construction Materials		19,397		81,938
	Apollo Hospitals Enterprise Ltd.		Health Care Providers & Services		2,805		111,360
a	Ashok Leyland Ltd.		Machinery		38,964		60,487
	Asian Paints Ltd.		Chemicals		11,594		402,368
	Astral Poly Technik Ltd.		Building Products		2,227		49,248
a	AU Small Finance Bank Ltd.		Banks		4,233		71,088
	Aurobindo Pharma Ltd.		Pharmaceuticals		7,433		89,596
a	Avenue Supermarts Ltd.		Food & Staples Retailing		4,200		164,237
a	Axis Bank Ltd.		Banks		63,959		610,121
a	Bajaj Auto Ltd.		Automobiles		2,091		104,976
a	Bajaj Finance Ltd.		Consumer Finance		6,222		438,254
a	Bajaj Finserv Ltd.		Insurance		1,071		141,630
a	Bajaj Holdings & Investment Ltd.		Diversified Financial Services		748		33,690
	Balkrishna Industries Ltd.		Auto Components		2,278		52,608
a	Bandhan Bank Ltd.		Banks		22,304		103,384
a	Bank of Baroda		Banks		26,044		26,395
a	Bank of India		Banks		10,523		9,765
	Bata India Ltd.		Textiles, Apparel & Luxury Goods		1,496		28,773
	Bayer Cropscience Ltd.		Chemicals		341		24,914
	Berger Paints India Ltd.		Chemicals		6,579		68,837
	Bharat Electronics Ltd.		Aerospace & Defense		27,251		46,627
a	Bharat Forge Ltd.		Auto Components		6,664		54,318
a	Bharat Heavy Electricals Ltd.		Electrical Equipment		33,711		22,477
	Bharat Petroleum Corp. Ltd.		Oil, Gas & Consumable Fuels		27,761		162,491
	Bharti Airtel Ltd.		Wireless Telecommunication Services		64,158		453,936
	Bharti Infratel Ltd.		Diversified Telecommunication Services		35,411		118,660
a	Biocon Ltd.		Biotechnology		11,577		64,746
	Bosch Ltd.		Auto Components		238		45,861
	Britannia Industries Ltd.		Food Products		2,924		144,975
a	Cadila Healthcare Ltd.		Pharmaceuticals		6,936		41,826
a	Canara Bank Ltd.		Banks		9,554		19,888
	Castrol India Ltd.		Chemicals		13,532		23,191
	Cholamandalam Investment and Finance Co. Ltd.		Consumer Finance		9,894		75,619
a	Cipla Ltd.		Pharmaceuticals		13,107		146,122
	Coal India Ltd.		Oil, Gas & Consumable Fuels		49,997		89,137
	Colgate-Palmolive (India) Ltd.		Personal Products		3,281		69,976
	Container Corp. Of India Ltd.		Road & Rail		7,293		59,650
	Coromandel International Ltd.		Chemicals		2,703		28,635
	Cummins India Ltd.		Machinery		3,332		41,911
	Dabur India Ltd.		Personal Products		14,977		110,719
a	Dalmia Bharat Ltd.		Construction Materials		1,258		27,340
a	Divi’s Laboratories Ltd.		Life Sciences Tools & Services		3,264		161,732
	DLF Ltd.		Real Estate Management & Development		16,796		65,942
	Dr Reddy’s Laboratories Ltd.		Pharmaceuticals		3,128		193,206
a	Eicher Motors Ltd.		Automobiles		3,791		135,017
	Emami Ltd.		Personal Products		5,219		34,692



246	Annual Report	franklintempleton.com

FRANKLIN TEMPLETON ETF TRUST

STATEMENT OF INVESTMENTS

Franklin FTSE India ETF (continued)



		Industry			Shares		Value
	Common Stocks (continued)
	India (continued)
	Embassy Office Parks REIT		Equity Real Estate Investment Trusts (REITs	)		11,800	$	52,525
	Exide Industries Ltd.		Auto Components			11,186		28,090
a	Federal Bank Ltd.		Banks			41,684		43,216
	GAIL India Ltd.		Gas Utilities			46,002		85,254
	Gillette India Ltd.		Personal Products			221		17,834
	GlaxoSmithKline Pharmaceuticals Ltd.		Pharmaceuticals			1,190		23,450
	Glenmark Pharmaceuticals Ltd.		Pharmaceuticals			4,156		26,415
a	GMR Infrastructure Ltd.		Transportation Infrastructure			54,553		18,131
	Godrej Consumer Products Ltd.		Personal Products			10,302		102,810
a	Godrej Industries Ltd.		Industrial Conglomerates			2,295		17,131
a	Godrej Properties Ltd.		Real Estate Management & Development			2,125		40,886
	Grasim Industries Ltd.		Construction Materials			10,404		206,412
	Gujarat Gas Ltd.		Gas Utilities			5,440		40,882
	Havell’s India Ltd.		Electrical Equipment			6,783		97,449
	HCL Technologies Ltd.		IT Services			30,685		412,407
b	HDFC Asset Management Co. Ltd., 144A, Reg S		Capital Markets			1,684		67,232
a	HDFC Life Insurance Co. Ltd.		Insurance			18,258		173,855
	Hero Motocorp Ltd.		Automobiles			3,434		136,846
	Hindalco Industries Ltd.		Metals & Mining			36,261		162,102
	Hindustan Aeronautics Ltd.		Aerospace & Defense			986		13,418
	Hindustan Petroleum Corp. Ltd.		Oil, Gas & Consumable Fuels			19,839		63,630
	Hindustan Unilever Ltd.		Household Products			25,027		832,308
	Hindustan Zinc Ltd.		Metals & Mining			6,511		24,303
	Honeywell Automation India Ltd.		Electronic Equipment, Instruments & Components			64		41,561
	Housing Development Finance Corp. Ltd.		Thrifts & Mortgage Finance			48,845		1,668,902
a	ICICI Bank Ltd.		Banks			43,877		349,330
b	ICICI Lombard General Insurance Co. Ltd., 144A, Reg S		Insurance			5,661		110,969
a,c	ICICI Prudential Life Insurance Co. Ltd., Reg S		Insurance			9,707		59,160
a	IDFC First Bank Ltd.		Banks			78,574		59,860
	Indiabulls Housing Finance Ltd.		Thrifts & Mortgage Finance			9,520		25,586
	Indian Oil Corp. Ltd.		Oil, Gas & Consumable Fuels			73,100		91,833
	Indian Railway Catering and Tourism Corp. Ltd.		Commercial Services & Supplies			1,479		35,542
	Indraprastha Gas Ltd.		Gas Utilities			9,894		69,333
	Info Edge India Ltd.		Interactive Media & Services			2,074		121,425
	Infosys Ltd.		IT Services			101,463		1,898,500
a,c	InterGlobe Aviation Ltd., Reg S		Airlines			2,720		60,712
	IPCA Laboratories Ltd.		Pharmaceuticals			1,768		46,036
	ITC Ltd.		Tobacco			83,436		249,348
a	Jindal Steel & Power Ltd.		Metals & Mining			11,186		52,569
	JSW Energy Ltd.		Independent Power and Renewable Electricity Producers			10,234		12,297
	JSW Steel Ltd.		Metals & Mining			28,237		180,918
a	Jubilant Foodworks Ltd.		Hotels, Restaurants & Leisure			2,040		81,221
	Kansai Nerolac Paints Ltd.		Chemicals			3,655		30,047
a	L&T Finance Holdings Ltd.		Diversified Financial Services			23,066		30,239
c	Larsen & Toubro Infotech Ltd., Reg S		IT Services			1,139		63,160
	Larsen & Toubro Ltd.		Construction & Engineering			16,966		329,255
	LIC Housing Finance Ltd.		Thrifts & Mortgage Finance			8,118		47,544
	Lupin Ltd.		Pharmaceuticals			6,630		92,535
a	Mahindra & Mahindra Financial Services Ltd.		Consumer Finance			16,694		45,426
	Mahindra & Mahindra Ltd.		Automobiles			23,562		256,281
a	Mangalore Refinery and Petrochemicals Ltd.		Oil, Gas & Consumable Fuels			6,290		3,342
	Marico Ltd.		Personal Products			14,161		79,662



franklintempleton.com	Annual Report	247

FRANKLIN TEMPLETON ETF TRUST

STATEMENT OF INVESTMENTS

Franklin FTSE India ETF (continued)



		Industry		Shares		Value
	Common Stocks (continued)
	India (continued)
	Maruti Suzuki India Ltd.		Automobiles		3,655	$	342,895
	Mindtree Ltd.		IT Services		1,224		34,887
a	Motherson Sumi Systems Ltd.		Auto Components		32,249		88,856
	Mphasis Ltd.		IT Services		2,380		57,829
	MRF Ltd.		Auto Components		65		73,131
a	Muthoot Finance Ltd.		Consumer Finance		2,720		44,862
	Nestle India Ltd.		Food Products		918		215,522
	NHPC Ltd.		Independent Power and Renewable Electricity Producers		62,747		20,983
	Nippon Life India Asset Management Ltd.		Capital Markets		4,142		19,165
	NMDC Ltd.		Metals & Mining		23,817		44,091
	NTPC Ltd.		Independent Power and Renewable Electricity Producers		110,483		161,009
a	Oberoi Realty Ltd.		Real Estate Management & Development		3,196		25,141
	Oil & Natural Gas Corp. Ltd.		Oil, Gas & Consumable Fuels		85,459		119,398
	Oil India Ltd.		Oil, Gas & Consumable Fuels		8,738		14,676
	Oracle Financial Services Software Ltd.		Software		646		28,264
	Page Industries Ltd.		Textiles, Apparel & Luxury Goods		158		65,516
	Petronet LNG Ltd.		Oil, Gas & Consumable Fuels		19,720		60,592
	PI Industries Ltd.		Chemicals		1,989		61,431
a	Pidilite Industries Ltd.		Chemicals		4,082		101,020
	Piramal Enterprises Ltd.		Diversified Financial Services		3,264		78,265
	Power Finance Corp. Ltd.		Diversified Financial Services		29,155		45,359
	Power Grid Corp. of India Ltd.		Electric Utilities		62,837		185,339
a	Punjab National Bank Ltd.		Banks		28,730		14,402
	Rajesh Exports Ltd.		Textiles, Apparel & Luxury Goods		3,842		25,160
a,c	RBL Bank Ltd., Reg S		Banks		12,495		35,470
	REC Ltd.		Diversified Financial Services		24,616		44,156
	Reliance Industries Ltd.		Oil, Gas & Consumable Fuels		4,743		70,742
	Reliance Industries Ltd.		Oil, Gas & Consumable Fuels		87,744		2,403,925
	SBI Cards & Payment Services Ltd.		Consumer Finance		4,998		63,454
a	SBI Life Insurance Co. Ltd.		Insurance		11,424		137,633
a	Shree Cement Ltd.		Construction Materials		340		137,023
	Shriram Transport Finance Co. Ltd.		Consumer Finance		5,270		102,519
	Siemens Ltd.		Industrial Conglomerates		2,414		60,883
	SRF Ltd.		Chemicals		697		51,582
a	State Bank of India		Banks		50,473		251,489
	Steel Authority of India Ltd.		Metals & Mining		27,863		30,030
	Sun Pharmaceutical Industries Ltd.		Pharmaceuticals		30,736		251,307
	Sun TV Network Ltd.		Media		2,686		17,278
	Tata Communications Ltd.		Diversified Telecommunication Services		3,213		46,705
	Tata Consultancy Services Ltd.		IT Services		28,120		1,222,221
	Tata Consumer Products Ltd.		Food Products		15,096		131,915
a	Tata Motors Ltd.		Automobiles		47,203		194,845
a	Tata Motors Ltd., A		Automobiles		10,489		18,370
	Tata Power Co. Ltd.		Electric Utilities		50,830		71,781
	Tata Steel Ltd.		Metals & Mining		17,850		198,205
	Tech Mahindra Ltd.		IT Services		16,031		217,386
	Titan Co. Ltd.		Textiles, Apparel & Luxury Goods		11,016		234,750
	Torrent Pharmaceuticals Ltd.		Pharmaceuticals		1,326		46,157
	Torrent Power Ltd.		Electric Utilities		5,406		31,336
	Trent Ltd.		Multiline Retail		5,070		52,081
	TVS Motor Co. Ltd.		Automobiles		5,032		40,266
	UltraTech Cement Ltd.		Construction Materials		3,230		297,667
a	Union Bank of India Ltd.		Banks		13,855		6,452
	United Breweries Ltd.		Beverages		1,938		32,907
a	United Spirits Ltd.		Beverages		8,143		61,963
	UPL Ltd.		Chemicals		15,164		133,122
	Varun Beverages Ltd.		Beverages		2,397		32,881
	Vedanta Ltd.		Metals & Mining		45,339		141,852



248	Annual Report	franklintempleton.com

FRANKLIN TEMPLETON ETF TRUST

STATEMENT OF INVESTMENTS

Franklin FTSE India ETF (continued)



		Industry		Shares		Value
	Common Stocks (continued)
	India (continued)
a	Vodafone Idea Ltd.		Wireless Telecommunication Services		226,950	$	28,713
	Voltas Ltd.		Construction & Engineering		5,559		76,180
	Whirlpool of India Ltd.		Household Durables		850		25,886
	Wipro Ltd.		IT Services		35,649		201,932
a	Yes Bank Ltd.		Banks		31,573		6,737
	Zee Entertainment Enterprises Ltd.		Media		23,443		65,154

	Total Investments (Cost $19,458,189) 101.8%						23,967,964
	Other Assets, less Liabilities (1.8)%						(423,816	)

	Net Assets 100.0%					$	23,544,148

See Abbreviations on page 355.

^aNon-income producing.



franklintempleton.com	The accompanying notes are an integral part of these financial statements. \| Annual Report	249

FRANKLIN TEMPLETON ETF TRUST

Financial Highlights

Franklin FTSE Italy ETF


	Year Ended March 31,

	2021			2020			2019			2018^a

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

Net asset value, beginning of year	$	17.61		$	23.13		$	26.27		$	25.51


Income from investment operations^b:

Net investment income^c		0.67			0.90			0.46			0.11

Net realized and unrealized gains (losses)		8.80			(5.52	)		(2.99	)		0.70


Total from investment operations		9.47			(4.62	)		(2.53	)		0.81


Less distributions from net investment income		(0.58	)		(0.90	)		(0.61	)		(0.05	)


Net asset value, end of year	$	26.50		$	17.61		$	23.13		$	26.27


Total return^d		54.64%			(20.84)%			(9.67)%			3.19%

Ratios to average net assets^e

Total expenses		0.09%			0.09%			0.09%			0.09%

Net investment income		3.04%			3.85%			2.05%			1.01%

Supplemental data

Net assets, end of year (000’s)		$3,974			$2,641			$10,410			$2,627

Portfolio turnover rate^f		17.45%^g			9.89%^g			16.67%			3.09%

^aFor the period November 2, 2017 (commencement of operations) to March 31, 2018.

^cBased on average daily shares outstanding.

^eRatios are annualized for periods less than one year.

^fPortfolio turnover rate includes portfolio transactions that are executed as a result of the Fund offering and redeeming Creation Units solely for cash (“Cash creations”).

^gPortfolio turnover rate excluding cash creations was as follows:

17.45%

9.89%



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

FRANKLIN TEMPLETON ETF TRUST

Statement of Investments March 31, 2021

Franklin FTSE Italy ETF



		Industry		Shares		Value
	Common Stocks 99.9%
	Italy 85.9%
	A2A SpA		Multi-Utilities		16,383	$	29,884
a	Amplifon SpA		Health Care Providers & Services		1,290		48,122
a	Assicurazioni Generali SpA		Insurance		11,610		232,788
a	Atlantia SpA		Transportation Infrastructure		5,223		97,911
a	Banca Mediolanum SpA		Diversified Financial Services		2,727		25,801
	Buzzi Unicem SpA		Construction Materials		1,044		27,203
	Davide Campari-Milano NV		Beverages		5,304		59,545
	DiaSorin SpA		Health Care Equipment & Supplies		237		38,105
	Enel SpA		Electric Utilities		68,724		685,990
	Eni SpA		Oil, Gas & Consumable Fuels		22,530		277,876
	Ferrari NV		Automobiles		924		193,684
a	FinecoBank Banca Fineco SpA		Banks		6,360		104,312
	Hera SpA		Multi-Utilities		7,434		28,553
b,c	Infrastrutture Wireless Italiane SpA, Reg S		Diversified Telecommunication Services		3,432		38,319
a	Intesa Sanpaolo SpA		Banks		139,431		378,629
	Italgas Reti SpA		Gas Utilities		5,196		33,801
	Leonardo SpA		Aerospace & Defense		4,182		33,934
a	Mediobanca Banca di Credito Finanziario SpA		Banks		7,209		80,118
a	Moncler SpA		Textiles, Apparel & Luxury Goods		1,902		109,245
a,c	Nexi SpA		IT Services		4,629		80,954
a,c	Pirelli & C SpA		Auto Components		4,836		28,430
b,c	Poste Italiane SpA, Reg S		Insurance		4,842		61,688
	Prysmian SpA		Electrical Equipment		2,682		87,346
	Recordati Industria Chimica e Farmaceutica SpA		Pharmaceuticals		1,026		55,313
	Snam SpA		Gas Utilities		21,753		120,877
a	Snam SpA, rts., 4/7/21		Gas Utilities		20,421		—
	Telecom Italia SpA/Milano		Diversified Telecommunication Services		112,929		61,213
	Telecom Italia SpA/Milano, di Risp		Diversified Telecommunication Services		64,017		36,897
	Tenaris SA		Energy Equipment & Services		4,959		56,022
	Terna Rete Elettrica Nazionale SpA		Electric Utilities		14,757		111,660
a	UniCredit SpA		Banks		16,287		172,528
	UnipolSai Assicurazioni SpA		Insurance		5,259		15,848

						3,412,596

	Netherlands 2.4%
	EXOR NV		Diversified Financial Services		1,104		93,345

	United Kingdom 3.4%
a	CNH Industrial NV		Machinery		8,796		136,409

	United States 8.2%
	Stellantis NV		Automobiles		18,489		327,777

	Total Investments (Cost $3,396,549) 99.9%						3,970,127
	Other Assets, less Liabilities 0.1%						4,246

	Net Assets 100.0%					$	3,974,373

See Abbreviations on page 355.

^aNon-income producing



franklintempleton.com	The accompanying notes are an integral part of these financial statements. \| Annual Report	251

FRANKLIN TEMPLETON ETF TRUST

Financial Highlights

Franklin FTSE Japan ETF


	Year Ended March 31,

	2021			2020			2019			2018^a

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

Net asset value, beginning of year	$	21.93		$	24.18		$	26.69		$	25.91


Income from investment operations^b:

Net investment income^c		0.53			0.56			0.59			0.44

Net realized and unrealized gains (losses)		8.24			(2.22	)		(2.76	)		0.37


Total from investment operations		8.77			(1.66	)		(2.17	)		0.81


Less distributions from net investment income		(0.45	)		(0.59	)		(0.34	)		(0.03	)


Net asset value, end of year	$	30.25		$	21.93		$	24.18		$	26.69


Total return^d		40.23%			(7.15)%			(8.10)%			3.11%

Ratios to average net assets^e

Expenses before waiver and payments by affiliates		0.09%			0.09%			0.09%			0.09%

Expenses net of waiver and payments by affiliates		0.09%			0.09%			0.09%			—%

Net investment income		1.98%			2.30%			2.39%			4.07%

Supplemental data

Net assets, end of year (000’s)		$598,934			$315,851			$290,205			$96,082

Portfolio turnover rate^f		5.76%^g			4.59%^g			4.35%			0.93%

^aFor the period November 2, 2017 (commencement of operations) to March 31, 2018.

^cBased on average daily shares outstanding.

^eRatios are annualized for periods less than one year.

^fPortfolio turnover rate includes portfolio transactions that are executed as a result of the Fund offering and redeeming Creation Units solely for cash (“Cash creations”).

^gPortfolio turnover rate excluding cash creations was as follows:

5.76%

4.51%



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

FRANKLIN TEMPLETON ETF TRUST

Statement of Investments, March 31, 2021

Franklin FTSE Japan ETF



		Industry			Shares		Value
	Common Stocks 99.0%
	Japan 99.0%
	ABC-Mart Inc.		Specialty Retail			3,300	$	186,353
	Acom Co. Ltd.		Consumer Finance			49,500		230,701
	Activia Properties Inc.		Equity Real Estate Investment Trusts (REITs	)		66		289,982
	Advance Residence Investment		Equity Real Estate Investment Trusts (REITs	)		132		414,516
	Advantest Corp.		Semiconductors & Semiconductor Equipment			26,400		2,312,688
	AEON Co. Ltd.		Food & Staples Retailing			92,400		2,758,621
	AEON Financial Service Co. Ltd.		Consumer Finance			16,500		221,742
	AEON Mall Co. Ltd.		Real Estate Management & Development			16,500		287,443
	AGC Inc.		Building Products			23,100		967,900
	Aica Kogyo Co. Ltd.		Building Products			6,600		238,317
	AIN Holdings Inc.		Food & Staples Retailing			3,300		213,231
	Air Water Inc.		Chemicals			23,100		405,557
	Aisin Seiki Co. Ltd.		Auto Components			23,100		878,009
	Ajinomoto Co. Inc.		Food Products			66,000		1,353,149
	Alfresa Holdings Corp.		Health Care Providers & Services			23,100		445,903
	Alps Alpine Co. Ltd.		Electronic Equipment, Instruments & Components			7,200		95,131
	Amada Co. Ltd.		Machinery			39,600		442,230
	Amano Corp.		Electronic Equipment, Instruments & Components			6,600		160,550
a	ANA Holdings Inc.		Airlines			19,800		460,865
	Anritsu Corp.		Electronic Equipment, Instruments & Components			16,500		360,760
	Aozora Bank Ltd.		Banks			13,200		302,704
	Ariake Japan Co. Ltd.		Food Products			3,300		200,389
	As One Corp.		Health Care Providers & Services			1,650		207,706
	Asahi Group Holdings Ltd.		Beverages			56,100		2,368,385
	Asahi Intecc Co. Ltd.		Health Care Equipment & Supplies			26,400		728,688
	Asahi Kasei Corp.		Chemicals			165,000		1,903,100
	Asics Corp.		Textiles, Apparel & Luxury Goods			23,100		368,973
	ASKUL Corp.		Internet & Direct Marketing Retail			3,300		126,326
	Astellas Pharma Inc.		Pharmaceuticals			247,500		3,812,172
	Azbil Corp.		Electronic Equipment, Instruments & Components			16,500		711,516
	Bandai Namco Holdings Inc.		Leisure Products			26,070		1,862,177
	BayCurrent Consulting Inc.		Professional Services			1,600		365,611
	Benefit One Inc.		Professional Services			6,600		175,542
	Benesse Holdings Inc.		Diversified Consumer Services			5,400		113,767
	BIC CAMERA Inc.		Specialty Retail			19,800		222,190
	Bridgestone Corp.		Auto Components			77,220		3,127,235
	Brother Industries Ltd.		Technology Hardware, Storage & Peripherals			29,700		658,238
	Calbee Inc.		Food Products			9,900		252,831
	CANON Inc.		Technology Hardware, Storage & Peripherals			132,000		2,989,412
	Canon Marketing Japan Inc.		Electronic Equipment, Instruments & Components			6,600		146,693
	Capcom Co. Ltd.		Entertainment			26,400		858,896
	Casio Computer Co. Ltd.		Household Durables			26,400		498,136
	Central Japan Railway Co.		Road & Rail			24,150		3,617,036
	Chubu Electric Power Co. Inc.		Electric Utilities			92,400		1,191,584
	Chugai Pharmaceutical Co. Ltd.		Pharmaceuticals			86,130		3,498,983
	Chuo Mitsui Trust Holdings Inc.		Banks			49,500		1,728,692
	Coca-Cola Bottlers Japan Holdings Inc.		Beverages			16,500		288,041
	COMSYS Holdings Corp.		Construction & Engineering			16,500		509,186
	Concordia Financial Group Ltd.		Banks			145,200		589,998
	Cosmo Energy Holdings Co. Ltd.		Oil, Gas & Consumable Fuels			6,600		157,504
	Cosmos Pharmaceutical Corp.		Food & Staples Retailing			2,310		361,029
	Credit Saison Co. Ltd.		Consumer Finance			19,800		237,958
	CyberAgent Inc.		Media			52,800		952,311
	Dai Nippon Printing Co. Ltd.		Commercial Services & Supplies			36,300		761,807
	Daicel Corp.		Chemicals			33,000		254,443
	Daido Steel Co. Ltd.		Metals & Mining			6,600		305,213
	Daifuku Co. Ltd.		Machinery			13,200		1,294,914
	Daiichi Sankyo Co. Ltd.		Pharmaceuticals			254,100		7,416,041



franklintempleton.com	Annual Report	253

FRANKLIN TEMPLETON ETF TRUST

STATEMENT OF INVESTMENTS

Franklin FTSE Japan ETF (continued)



	Industry			Shares		Value
Common Stocks (continued)
Japan (continued)
Daiichikosho Co. Ltd.		Entertainment			6,600	$	256,235
Daikin Industries Ltd.		Building Products			35,244		7,118,969
Daio Paper Corp.		Paper & Forest Products			9,900		170,137
Daito Trust Construction Co. Ltd.		Real Estate Management & Development			8,712		1,011,538
Daiwa House Industry Co. Ltd.		Real Estate Management & Development			85,800		2,516,541
Daiwa House Residential Investment Corp.		Equity Real Estate Investment Trusts (REITs	)		198		532,360
Daiwa Office Investment Corp.		Equity Real Estate Investment Trusts (REITs	)		33		232,643
Daiwa Securities Group Inc.		Capital Markets			198,000		1,025,120
DeNA Co. Ltd.		Entertainment			13,200		258,266
Denka Co. Ltd.		Chemicals			9,900		396,000
Denso Corp.		Auto Components			59,400		3,949,428
Dentsu Group Inc.		Media			29,700		954,163
DIC Corp.		Chemicals			9,900		256,862
Disco Corp.		Semiconductors & Semiconductor Equipment			3,696		1,162,317
DMG Mori Co. Ltd.		Machinery			13,200		216,695
Dowa Holdings Co. Ltd.		Metals & Mining			6,600		275,050
East Japan Railway Co.		Road & Rail			47,950		3,401,629
EBARA Corp.		Machinery			13,200		539,348
Eisai Co. Ltd.		Pharmaceuticals			34,980		2,348,567
Elecom Co. Ltd.		Technology Hardware, Storage & Peripherals			6,600		146,693
Electric Power Development Co. Ltd.		Independent Power and Renewable Electricity Producers			12,600		220,528
ENEOS Holdings Inc.		Oil, Gas & Consumable Fuels			399,300		1,812,569
Ezaki Glico Co. Ltd.		Food Products			6,600		265,493
Fancl Corp.		Personal Products			9,900		334,629
FANUC Corp.		Machinery			25,740		6,099,565
Fast Retailing Co. Ltd.		Specialty Retail			6,831		5,448,109
FP Corp.		Containers & Packaging			6,600		269,077
Fuji Electric Co. Ltd.		Electrical Equipment			16,500		688,371
Fuji Kyuko Co. Ltd.		Hotels, Restaurants & Leisure			3,300		175,602
Fuji Media Holdings Inc.		Media			6,600		80,932
Fuji Oil Holdings Inc.		Food Products			6,600		176,378
FUJIFILM Holdings Corp.		Technology Hardware, Storage & Peripherals			46,200		2,747,332
Fujitsu General Ltd.		Household Durables			6,600		184,262
Fujitsu Ltd.		IT Services			25,080		3,631,493
Fukuoka Financial Group Inc.		Banks			19,800		376,110
Fukuyama Transporting Co. Ltd.		Road & Rail			3,300		136,181
Furukawa Electric Co. Ltd.		Electrical Equipment			6,600		177,394
Fuyo General Lease Co. Ltd.		Diversified Financial Services			3,300		227,566
GLP J-REIT		Equity Real Estate Investment Trusts (REITs	)		396		651,519
GMO Internet Inc.		IT Services			6,600		189,339
GMO Payment Gateway Inc.		IT Services			5,280		701,452
Goldwin Inc.		Textiles, Apparel & Luxury Goods			4,620		296,014
GS Yuasa Corp.		Electrical Equipment			9,900		268,778
GungHo Online Entertainment Inc.		Entertainment			3,300		65,283
Gunma Bank Ltd.		Banks			52,800		189,698
Hachijuni Bank Ltd.		Banks			59,400		216,635
Hakuhodo DY Holdings Inc.		Media			29,700		495,896
Hamamatsu Photonics K.K.		Electronic Equipment, Instruments & Components			16,500		976,561
Hankyu Hanshin Holdings Inc.		Road & Rail			29,700		952,819
Haseko Corp.		Household Durables			36,300		508,857
Heiwa Corp.		Leisure Products			6,600		107,929
Hikari Tsushin Inc.		Specialty Retail			2,970		598,569
Hino Motors Ltd.		Machinery			36,300		312,738
Hirogin Holdings Inc.		Banks			39,600		242,617
Hirose Electric Co. Ltd.		Electronic Equipment, Instruments & Components			4,290		660,776
Hisamitsu Pharmaceutical Co. Inc.		Pharmaceuticals			9,900		645,964
Hitachi Capital Corp.		Consumer Finance			6,600		194,118



254	Annual Report	franklintempleton.com

FRANKLIN TEMPLETON ETF TRUST

STATEMENT OF INVESTMENTS

Franklin FTSE Japan ETF (continued)



		Industry			Shares		Value
	Common Stocks (continued)
	Japan (continued)
	Hitachi Construction Machinery Co. Ltd.		Machinery			13,200	$	423,475
	Hitachi Ltd.		Electronic Equipment, Instruments & Components			123,420		5,589,083
	Hitachi Metals Ltd.		Metals & Mining			26,400		435,301
	Hitachi Transport System Ltd.		Road & Rail			3,300		111,095
	Hokuriku Electric Power Co.		Electric Utilities			23,100		158,251
	Honda Motor Co. Ltd.		Automobiles			227,700		6,839,243
	HORIBA Ltd.		Electronic Equipment, Instruments & Components			6,600		416,905
	Hoshizaki Corp.		Machinery			6,600		590,118
	House Foods Group Inc.		Food Products			9,900		326,118
	Hoya Corp.		Health Care Equipment & Supplies			48,360		5,691,600
	Ibiden Co. Ltd.		Electronic Equipment, Instruments & Components			13,200		608,036
	Ichigo Inc.		Real Estate Management & Development			26,400		78,125
	Idemitsu Kosan Co. Ltd.		Oil, Gas & Consumable Fuels			29,700		767,093
	IHI Corp.		Machinery			16,500		335,226
	Iida Group Holdings Co. Ltd.		Household Durables			19,800		479,500
	Industrial & Infrastructure Fund Investment Corp.		Equity Real Estate Investment Trusts (REITs	)		198		340,273
	INPEX Corp.		Oil, Gas & Consumable Fuels			122,100		835,363
	IR Japan Holdings Ltd.		Professional Services			1,300		157,294
	Isetan Mitsukoshi Holdings Ltd.		Multiline Retail			46,200		325,281
	Isuzu Motors Ltd.		Automobiles			69,300		745,681
	Ito En Ltd.		Beverages			6,600		405,557
	ITOCHU Corp.		Trading Companies & Distributors			181,500		5,891,769
	ITOCHU Techno-Solutions Corp.		IT Services			13,200		425,864
	Itoham Yonekyu Holdings Inc.		Food Products			16,500		108,855
	Iwatani Corp.		Oil, Gas & Consumable Fuels			6,600		407,946
	Izumi Co. Ltd.		Multiline Retail			6,600		258,923
	J Front Retailing Co. Ltd.		Multiline Retail			33,000		313,873
a	Japan Airlines Co. Ltd.		Airlines			18,810		420,459
	Japan Airport Terminal Co. Ltd.		Transportation Infrastructure			6,600		324,923
	Japan Aviatn Elect		Electronic Equipment, Instruments & Components			6,600		106,914
	Japan Exchange Group Inc.		Capital Markets			69,300		1,627,452
	Japan Logistics Fund Inc.		Equity Real Estate Investment Trusts (REITs	)		99		279,529
	Japan Post Bank Co. Ltd.		Banks			52,800		508,409
	Japan Post Holdings Co. Ltd.		Insurance			178,200		1,591,221
	Japan Post Insurance Co. Ltd.		Insurance			23,100		475,379
	Japan Prime Realty Investment Corp.		Equity Real Estate Investment Trusts (REITs	)		99		370,018
	Japan Real Estate Investment Corp.		Equity Real Estate Investment Trusts (REITs	)		132		780,054
	Japan Retail Fund Investment Corp.		Equity Real Estate Investment Trusts (REITs	)		660		675,529
	Japan Tobacco Inc.		Tobacco			126,600		2,434,615
	JCR Pharmaceuticals Co. Ltd.		Pharmaceuticals			6,600		214,127
a	JFE Holdings Inc.		Metals & Mining			69,300		854,804
	JGC Holdings Corp.		Construction & Engineering			29,700		364,463
	JSR Corp.		Chemicals			23,100		698,226
	JTEKT Corp.		Auto Components			29,700		303,719
	Justsystems Corp.		Software			3,300		180,679
	K’s Holdings Corp.		Specialty Retail			23,100		317,965
	Kagome Co. Ltd.		Food Products			9,900		314,919
	Kajima Corp.		Construction & Engineering			59,400		844,501
	Kakaku.com Inc.		Interactive Media & Services			16,500		450,950
	Kaken Pharmaceutical Co. Ltd.		Pharmaceuticals			3,300		129,462
	Kamigumi Co. Ltd.		Transportation Infrastructure			13,200		250,501
	Kandenko Co. Ltd.		Construction & Engineering			13,200		115,993
	Kaneka Corp.		Chemicals			6,600		271,765
	Kansai Electric Power Co. Inc.		Electric Utilities			95,700		1,037,544
	Kansai Mirai Financial Group Inc		Banks			16,500		96,611
	Kansai Paint Co. Ltd.		Chemicals			26,400		705,991
	KAO Corp.		Personal Products			62,700		4,149,548
a	Kawasaki Heavy Industries Ltd.		Machinery			19,800		491,327



franklintempleton.com	Annual Report	255

FRANKLIN TEMPLETON ETF TRUST

STATEMENT OF INVESTMENTS

Franklin FTSE Japan ETF (continued)



		Industry			Shares		Value
	Common Stocks (continued)
	Japan (continued)
	KDDI Corp.		Wireless Telecommunication Services			226,540	$	6,960,211
	Keihan Holdings Co. Ltd.		Industrial Conglomerates			13,200		549,502
	Keikyu Corp.		Road & Rail			33,000		499,032
	Keio Corp.		Road & Rail			16,500		1,110,950
	Keisei Electric Railway Co. Ltd.		Road & Rail			19,800		648,652
	Kenedix Office Investment Corp.		Equity Real Estate Investment Trusts (REITs	)		37		263,520
	Kewpie Corp.		Food Products			13,200		301,032
	Keyence Corp.		Electronic Equipment, Instruments & Components			24,057		10,944,302
	Kikkoman Corp.		Food Products			26,400		1,574,443
	Kinden Corp.		Construction & Engineering			16,500		281,471
	Kintetsu Group Holdings Co. Ltd.		Road & Rail			23,100		882,190
	Kirin Holdings Co. Ltd.		Beverages			102,300		1,963,142
	Kobayashi Pharmaceutical Co. Ltd.		Personal Products			7,920		740,395
	Kobe Bussan Co. Ltd.		Food & Staples Retailing			6,600		177,095
a	Kobe Steel Ltd.		Metals & Mining			39,600		268,062
	Koei Tecmo Holdings Co. Ltd.		Entertainment			8,580		385,518
	Koito Manufacturing Co. Ltd.		Auto Components			15,180		1,019,327
	Kokuyo Co. Ltd.		Commercial Services & Supplies			9,900		153,562
	Komatsu Ltd.		Machinery			122,100		3,777,918
	Konami Holdings Corp.		Entertainment			13,200		787,222
	Konica Minolta Inc.		Technology Hardware, Storage & Peripherals			59,400		322,534
	KOSE Corp.		Personal Products			3,890		551,289
	Kotobuki Spirits Co. Ltd.		Food Products			3,300		214,724
	Kubota Corp.		Machinery			145,200		3,310,691
	Kuraray Co. Ltd.		Chemicals			46,200		528,060
	Kurita Water Industries Ltd.		Machinery			13,200		566,824
	Kusuri No Aoki Holdings Co. Ltd.		Food & Staples Retailing			1,980		151,949
	Kyocera Corp.		Electronic Equipment, Instruments & Components			41,200		2,619,276
	Kyoritsu Maintenance Co. Ltd.		Hotels, Restaurants & Leisure			3,300		109,452
	Kyowa Exeo Corp.		Construction & Engineering			13,200		349,053
	Kyowa Kirin Co. Ltd.		Pharmaceuticals			33,000		988,507
	Kyudenko Corp.		Construction & Engineering			6,600		252,652
	Kyushu Electric Power Co. Inc.		Electric Utilities			62,700		619,624
	Kyushu Financial Group Inc.		Banks			49,500		212,783
	Kyushu Railway Co.		Road & Rail			19,800		461,224
	LaSalle Logiport REIT		Equity Real Estate Investment Trusts (REITs	)		165		250,561
	Lasertec Corp.		Semiconductors & Semiconductor Equipment			9,900		1,300,887
	Lawson Inc.		Food & Staples Retailing			6,600		324,326
	LINTEC Corp.		Chemicals			6,600		149,560
	Lion Corp.		Household Products			33,000		644,769
	LIXIL Group Corp.		Building Products			36,300		1,010,158
	M3 Inc.		Health Care Technology			56,100		3,843,738
	Mabuchi Motor Co. Ltd.		Electrical Equipment			6,600		290,579
	Maeda Corp.		Construction & Engineering			16,500		142,751
	Maeda Road Construction Co. Ltd.		Construction & Engineering			3,300		63,999
	Makita Corp.		Machinery			33,000		1,417,059
	Mani Inc.		Health Care Equipment & Supplies			6,600		166,045
	Marubeni Corp.		Trading Companies & Distributors			207,900		1,732,437
	Marui Group Co. Ltd.		Multiline Retail			26,400		496,702
	Maruichi Steel Tube Ltd.		Metals & Mining			6,600		150,814
	Maruwa Unyu Kikan Co. Ltd.		Air Freight & Logistics			3,300		57,608
	Matsui Securities Co. Ltd.		Capital Markets			13,200		107,631
	Matsumotokiyoshi Holdings Co. Ltd.		Food & Staples Retailing			9,900		441,692
	Mazda Motor Corp.		Automobiles			75,900		619,564
	Mebuki Financial Group Inc.		Banks			132,000		311,783
	Medipal Holdings Corp.		Health Care Providers & Services			19,800		380,590
	Megmilk Snow Brand Co. Ltd.		Food Products			6,600		134,329



256	Annual Report	franklintempleton.com

FRANKLIN TEMPLETON ETF TRUST

STATEMENT OF INVESTMENTS

Franklin FTSE Japan ETF (continued)



		Industry			Shares		Value
	Common Stocks (continued)
	Japan (continued)
	Meiji Holdings Co. Ltd.		Food Products			19,800	$	1,275,801
	Minebea Mitsumi Inc.		Machinery			52,800		1,351,776
	Miraca Holdings Inc.		Health Care Providers & Services			6,600		221,891
	MISUMI Group Inc.		Machinery			36,300		1,056,149
	Mitsubishi Chemical Holdings Corp.		Chemicals			171,600		1,288,786
	Mitsubishi Corp.		Trading Companies & Distributors			158,400		4,486,805
	Mitsubishi Electric Corp.		Electrical Equipment			260,700		3,978,919
	Mitsubishi Estate Co. Ltd.		Real Estate Management & Development			151,800		2,654,783
	Mitsubishi Gas Chemical Co. Inc.		Chemicals			23,100		567,361
	Mitsubishi Heavy Industries Ltd.		Machinery			39,600		1,236,022
	Mitsubishi Logistics Corp.		Transportation Infrastructure			9,900		303,271
	Mitsubishi Materials Corp.		Metals & Mining			16,500		385,846
a	Mitsubishi Motors Corp.		Automobiles			45,000		128,281
	Mitsubishi Shokuhin Co. Ltd.		Food & Staples Retailing			3,300		92,430
	Mitsubishi UFJ Financial Group Inc.		Banks			1,663,200		8,906,022
	Mitsubishi UFJ Lease & Finance Co. Ltd.		Diversified Financial Services			59,400		359,088
	Mitsui & Co. Ltd.		Trading Companies & Distributors			217,800		4,537,336
	Mitsui Chemicals Inc.		Chemicals			23,100		730,629
	Mitsui Fudosan Co. Ltd.		Real Estate Management & Development			122,100		2,777,361
	Mitsui Fudosan Logistics Park Inc.		Equity Real Estate Investment Trusts (REITs	)		49		242,561
	Mitsui Mining and Smelting Co. Ltd.		Metals & Mining			6,600		229,357
	Mitsui O.S.K. Lines Ltd.		Marine			16,500		578,620
	Miura Co. Ltd.		Machinery			13,200		714,353
	Mizuho Financial Group Inc.		Banks			336,600		4,870,800
	Mochida Pharmaceutical Co. Ltd.		Pharmaceuticals			3,300		128,118
	Monotaro Co. Ltd.		Trading Companies & Distributors			31,020		840,488
	Mori Hills REIT Investment Corp.		Equity Real Estate Investment Trusts (REITs	)		165		228,909
	Morinaga & Co. Ltd.		Food Products			6,600		236,226
	Morinaga Milk Industry Co. Ltd.		Food Products			6,600		347,620
	MS&AD Insurance Group Holdings Inc.		Insurance			64,020		1,882,362
	Murata Manufacturing Co. Ltd.		Electronic Equipment, Instruments & Components			75,900		6,073,374
	Nabtesco Corp.		Machinery			16,500		755,566
	Nagase & Co. Ltd.		Trading Companies & Distributors			13,200		206,541
	Nagoya Railroad Co. Ltd.		Road & Rail			26,400		629,061
	Nankai Electric Railway Co. Ltd.		Road & Rail			13,200		303,660
	NEC Corp.		IT Services			36,300		2,141,864
	NEC System Integration & Construction Ltd.		IT Services			6,600		116,351
	Net One Systems Co. Ltd.		IT Services			9,900		316,710
	Nexon Co. Ltd.		Entertainment			54,450		1,769,009
	NGK Insulators Ltd.		Machinery			33,000		604,452
	NGK Spark Plug Co. Ltd.		Auto Components			26,400		456,565
	NH Foods Ltd.		Food Products			13,200		566,824
	NHK Spring Co. Ltd.		Auto Components			19,800		148,724
	Nichirei Corp.		Food Products			13,200		340,333
	Nidec Corp.		Electrical Equipment			62,040		7,543,053
	Nifco Inc.		Auto Components			9,900		361,507
	Nihon Kohden Corp.		Health Care Equipment & Supplies			9,900		289,385
	Nihon M&A Center Inc.		Professional Services			34,980		947,467
	Nihon Unisys Ltd.		IT Services			9,900		305,511
	Nikon Corp.		Household Durables			24,500		229,480
	Nintendo Co. Ltd.		Entertainment			14,223		7,955,870
	Nippo Corp.		Construction & Engineering			6,600		180,380
	Nippon Accommodations Fund Inc.		Equity Real Estate Investment Trusts (REITs	)		48		281,919
	Nippon Building Fund Inc.		Equity Real Estate Investment Trusts (REITs	)		148		871,928
	Nippon Electric Glass Co. Ltd.		Electronic Equipment, Instruments & Components			9,900		229,805
	Nippon Express Co. Ltd.		Road & Rail			9,900		738,244
	Nippon Kayaku Co. Ltd.		Chemicals			23,100		223,474
	Nippon Paint Holdings Co. Ltd.		Chemicals			102,300		1,476,638



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STATEMENT OF INVESTMENTS

Franklin FTSE Japan ETF (continued)



		Industry			Shares		Value
	Common Stocks (continued)
	Japan (continued)
	Nippon Paper Industries Co. Ltd.		Paper & Forest Products			13,200	$	158,400
	Nippon Prologis REIT Inc.		Equity Real Estate Investment Trusts (REITs	)		198		637,005
	Nippon Sanso Holdings Corp.		Chemicals			19,800		377,006
	Nippon Shinyaku Co. Ltd.		Pharmaceuticals			6,600		491,566
	Nippon Shobukai Co. Ltd.		Chemicals			3,300		189,339
a	Nippon Steel Corp.		Metals & Mining			108,900		1,859,184
	Nippon Telegraph & Telephone Corp.		Diversified Telecommunication Services			161,700		4,158,836
	Nippon Television Holdings Inc.		Media			3,300		43,423
	Nippon Yusen KK		Marine			19,800		676,425
	Nipro Corp.		Health Care Equipment & Supplies			16,500		199,643
	Nishi-Nippon Railroad Co. Ltd.		Road & Rail			9,900		264,926
	Nissan Chemical Corp.		Chemicals			19,800		1,058,986
a	Nissan Motor Co. Ltd.		Automobiles			257,400		1,434,685
	Nisshin Seifun Group Inc.		Food Products			33,000		552,489
	Nissin Foods Holdings Co. Ltd.		Food Products			9,900		735,557
	Nitori Holdings Co. Ltd.		Specialty Retail			9,900		1,919,525
	Nitto Denko Corp.		Chemicals			19,800		1,695,095
	Noevir Holdings Co. Ltd.		Personal Products			3,300		149,919
	NOF Corp.		Chemicals			9,900		518,742
	NOK Corp.		Auto Components			13,200		179,305
	Nomura Holdings Inc.		Capital Markets			399,300		2,100,932
	Nomura Real Estate Holdings Inc.		Real Estate Management & Development			16,500		397,941
	Nomura Real Estate Master Fund Inc.		Equity Real Estate Investment Trusts (REITs	)		429		646,024
	Nomura Research Institute Ltd.		IT Services			34,650		1,073,993
	NS Solutions Corp.		IT Services			3,300		104,824
	NSK Ltd.		Machinery			59,400		610,127
	NTT Data Corp.		IT Services			82,500		1,278,937
	Obayashi Corp.		Construction & Engineering			89,100		818,430
	OBIC Business Consultants Co. Ltd.		Software			3,300		173,213
	OBIC Co. Ltd.		IT Services			8,910		1,631,215
	Odakyu Electric Railway Co. Ltd.		Road & Rail			39,600		1,084,072
	Oji Holdings Corp.		Paper & Forest Products			118,800		769,781
	Okuma Corp.		Machinery			3,300		189,638
	Olympus Corp.		Health Care Equipment & Supplies			138,600		2,873,598
	Omron Corp.		Electronic Equipment, Instruments & Components			25,120		1,964,134
	Ono Pharmaceutical Co. Ltd.		Pharmaceuticals			56,100		1,467,231
	Open House Co. Ltd.		Real Estate Management & Development			9,900		422,878
	Oracle Corp. Japan		Software			4,455		435,421
	Orient Corp.		Consumer Finance			72,600		101,180
	Oriental Land Co. Ltd.		Hotels, Restaurants & Leisure			24,930		3,750,781
	ORIX Corp.		Diversified Financial Services			161,700		2,733,535
	ORIX JREIT Inc.		Equity Real Estate Investment Trusts (REITs	)		264		459,671
	Osaka Gas Co. Ltd.		Gas Utilities			52,800		1,030,675
	OSG Corp.		Machinery			9,900		176,587
	Otsuka Corp.		IT Services			13,200		618,787
	Otsuka Holdings Co. Ltd.		Pharmaceuticals			56,100		2,379,554
	Paltac Corp.		Distributors			3,300		178,887
	Pan Pacific International Holdings Corp.		Multiline Retail			69,300		1,637,487
	Panasonic Corp.		Household Durables			283,800		3,656,012
a	Park24 Co. Ltd.		Commercial Services & Supplies			13,200		247,157
	Penta-Ocean Construction Co. Ltd.		Construction & Engineering			36,300		285,472
a	PeptiDream Inc.		Biotechnology			11,600		531,186
	Persol Holdings Co. Ltd.		Professional Services			23,100		452,384
	Pigeon Corp.		Household Products			13,200		501,719
	Pola Orbis Holdings Inc.		Personal Products			9,900		238,675
	Rakuten Inc.		Internet & Direct Marketing Retail			105,600		1,260,510
	Recruit Holdings Co. Ltd.		Professional Services			178,200		8,710,029
	Relo Group Inc.		Real Estate Management & Development			13,200		279,768



258	Annual Report	franklintempleton.com

FRANKLIN TEMPLETON ETF TRUST

STATEMENT OF INVESTMENTS

Franklin FTSE Japan ETF (continued)



		Industry			Shares		Value
	Common Stocks (continued)
	Japan (continued)
a	Renesas Electronics Corp.		Semiconductors & Semiconductor Equipment			95,700	$	1,039,276
	Rengo Co. Ltd.		Containers & Packaging			26,400		229,596
a	RENOVA Inc.		Independent Power and Renewable Electricity Producers			6,600		222,489
	Resona Holdings Inc.		Banks			287,100		1,207,639
	Resorttrust Inc.		Hotels, Restaurants & Leisure			9,900		165,567
	Ricoh Co. Ltd.		Technology Hardware, Storage & Peripherals			89,100		906,320
	Rinnai Corp.		Household Durables			4,950		555,027
	Rohm Co. Ltd.		Semiconductors & Semiconductor Equipment			10,890		1,065,347
	Rohto Pharmaceutical Co. Ltd.		Personal Products			13,200		352,757
	Ryohin Keikaku Co. Ltd.		Multiline Retail			29,700		703,662
	Sankyo Co. Ltd.		Leisure Products			6,600		175,184
	Sankyu Inc.		Road & Rail			6,600		290,281
	Santen Pharmaceutical Co. Ltd.		Pharmaceuticals			46,200		636,766
	Sanwa Holdings Corp.		Building Products			26,400		346,186
	Sapporo Holdings Ltd.		Beverages			6,600		136,957
	Sawai Pharmaceutical Co. Ltd.		Pharmaceuticals			6,600		320,742
	SBI Holdings Inc.		Capital Markets			33,000		895,928
	SCREEN Holdings Co. Ltd.		Semiconductors & Semiconductor Equipment			6,600		581,756
	SCSK Corp.		IT Services			6,600		391,819
	Secom Co. Ltd.		Commercial Services & Supplies			26,400		2,225,006
	Sega Sammy Holdings Inc.		Leisure Products			26,400		412,605
	Seibu Holdings Inc.		Road & Rail			26,400		291,475
	Seiko Epson Corp.		Technology Hardware, Storage & Peripherals			36,300		591,312
	Seino Holdings Co. Ltd.		Road & Rail			16,500		230,253
	Sekisui Chemical Co. Ltd.		Household Durables			46,200		888,462
	Sekisui House Ltd.		Household Durables			75,900		1,630,648
	Sekisui House Reit Inc.		Equity Real Estate Investment Trusts (REITs	)		396		329,701
	Seven & i Holdings Co. Ltd.		Food & Staples Retailing			102,300		4,131,809
	Seven Bank Ltd.		Banks			85,800		196,447
	SG Holdings Co. Ltd.		Air Freight & Logistics			56,430		1,295,592
	Sharp Corp.		Household Durables			19,800		342,244
	Shikoku Electric Power Co. Inc.		Electric Utilities			19,800		154,100
	Shimadzu Corp.		Electronic Equipment, Instruments & Components			36,300		1,315,670
	Shimamura Co. Ltd.		Specialty Retail			3,300		381,367
	SHIMANO Inc.		Leisure Products			10,518		2,510,518
	Shimizu Corp.		Construction & Engineering			72,600		588,684
	Shin-Etsu Chemical Co. Ltd.		Chemicals			53,080		8,939,537
	Shinko Electric Industries Co. Ltd.		Semiconductors & Semiconductor Equipment			6,600		204,570
	Shinsei Bank Ltd.		Banks			23,100		373,990
	Shionogi & Co. Ltd.		Pharmaceuticals			37,290		2,008,598
	Ship Healthcare Holdings Inc.		Health Care Providers & Services			6,600		185,756
	Shiseido Co. Ltd.		Personal Products			51,400		3,452,405
	SHO-BOND Holdings Co. Ltd.		Construction & Engineering			6,600		284,905
a	Shochiku Co. Ltd.		Entertainment			1,155		143,408
	Shoei Co. Ltd.		Real Estate Management & Development			49,500		584,593
	Showa Denko K.K.		Chemicals			19,800		564,434
	Sky Perfect JSAT Holdings Inc.		Media			16,500		73,466
a	Skylark Holdings Co. Ltd.		Hotels, Restaurants & Leisure			26,400		395,642
	SMC Corp.		Machinery			7,656		4,455,723
	SMS Co. Ltd.		Professional Services			6,600		201,882
	Softbank Corp.		Wireless Telecommunication Services			366,300		4,768,530
	SoftBank Group Corp.		Wireless Telecommunication Services			184,800		15,603,475
	Sohgo Security Services Co. Ltd.		Commercial Services & Supplies			9,900		468,570
	Sojitz Corp.		Trading Companies & Distributors			158,400		447,247
	Sompo Holdings Inc.		Insurance			42,900		1,646,894
	Sony Corp.		Household Durables			165,000		17,313,801
	Sotetsu Holdings Inc.		Road & Rail			9,900		222,100



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FRANKLIN TEMPLETON ETF TRUST

STATEMENT OF INVESTMENTS

Franklin FTSE Japan ETF (continued)



		Industry		Shares		Value
	Common Stocks (continued)
	Japan (continued)
	Square Enix Holdings Co. Ltd.		Entertainment		9,900	$	550,995
	Stanley Electric Co. Ltd.		Auto Components		19,800		590,416
	Subaru Corp.		Automobiles		79,200		1,579,700
	Sugi Pharmacy Co. Ltd.		Food & Staples Retailing		3,300		261,909
	Sumco Corp.		Semiconductors & Semiconductor Equipment		29,700		678,934
	Sumitomo Bakelite Co. Ltd.		Chemicals		3,300		135,136
	Sumitomo Chemical Co. Ltd.		Chemicals		201,300		1,043,845
	Sumitomo Corp.		Trading Companies & Distributors		148,500		2,119,317
	Sumitomo Dainippon Pharma Co. Ltd.		Pharmaceuticals		19,800		345,290
	Sumitomo Electric Industries Ltd.		Auto Components		99,000		1,485,448
	Sumitomo Forestry Co. Ltd.		Household Durables		16,500		356,281
	Sumitomo Heavy Industries Ltd.		Machinery		16,500		459,163
	Sumitomo Metal Mining Co. Ltd.		Metals & Mining		33,000		1,427,213
	Sumitomo Mitsui Financial Group Inc.		Banks		171,600		6,222,635
	Sumitomo Realty & Development Co. Ltd.		Real Estate Management & Development		52,800		1,866,396
	Sumitomo Rubber Industries Ltd.		Auto Components		23,100		272,810
	Sundrug Co. Ltd.		Food & Staples Retailing		8,910		326,566
	Suntory Beverage & Food Ltd.		Beverages		16,500		614,457
	Sushiro Global Holdings Ltd.		Hotels, Restaurants & Leisure		13,200		584,145
	Suzuken Co. Ltd.		Health Care Providers & Services		9,900		387,489
	Suzuki Motor Corp.		Automobiles		59,400		2,701,222
	Sysmex Corp.		Health Care Equipment & Supplies		25,080		2,706,597
	T&D Holdings Inc.		Insurance		72,600		936,901
	Taiheiyo Cement Corp.		Construction Materials		16,500		434,674
	Taisei Corp.		Construction & Engineering		26,400		1,020,163
	Taisho Pharmaceutical Holdings Co. Ltd.		Pharmaceuticals		6,600		426,462
	Taiyo Yuden Co. Ltd.		Electronic Equipment, Instruments & Components		16,500		776,471
	Takara Bio Inc.		Biotechnology		6,600		177,274
	Takara Holdings Inc.		Beverages		23,100		315,038
	Takashimaya Co. Ltd.		Multiline Retail		19,800		211,618
	Takeda Pharmaceutical Co. Ltd.		Pharmaceuticals		204,600		7,378,561
	TBS Holdings Inc.		Media		3,300		64,865
	TDK Corp.		Electronic Equipment, Instruments & Components		15,880		2,203,081
	TechnoPro Holdings Inc.		Professional Services		4,660		388,825
	Teijin Ltd.		Chemicals		23,100		398,658
	Terumo Corp.		Health Care Equipment & Supplies		85,800		3,105,106
	The Bank of Kyoto Ltd.		Banks		9,900		610,127
	The Chiba Bank Ltd.		Banks		82,500		541,290
	The Chugoku Bank Ltd.		Banks		23,100		195,462
	The Chugoku Electric Power Co. Inc.		Electric Utilities		39,600		487,026
	The Dai-ichi Life Holdings Inc.		Insurance		141,900		2,442,478
	The Iyo Bank Ltd.		Banks		36,300		218,128
	The Shizuoka Bank Ltd.		Banks		66,000		519,638
	THK Co. Ltd.		Machinery		16,500		571,900
	TIS Inc.		IT Services		29,700		709,843
	Tobu Railway Co. Ltd.		Road & Rail		26,400		711,008
	Toda Corp.		Construction & Engineering		29,700		217,979
	Toho Co. Ltd.		Entertainment		13,200		536,362
	Toho Gas Co. Ltd.		Gas Utilities		13,200		815,891
	Tohoku Electric Power Co. Inc.		Electric Utilities		62,700		592,955
	Tokai Carbon Co. Ltd.		Chemicals		26,400		426,939
	Tokai Rika Co. Ltd.		Auto Components		6,600		112,051
	Tokio Marine Holdings Inc.		Insurance		86,790		4,135,288
	Tokuyama Corp.		Chemicals		9,900		250,233
	Tokyo Century Corp.		Diversified Financial Services		8,250		555,475
a	Tokyo Electric Power Co. Holdings Inc.		Electric Utilities		204,600		683,234
	Tokyo Electron Ltd.		Semiconductors & Semiconductor Equipment		19,800		8,384,090



260	Annual Report	franklintempleton.com

FRANKLIN TEMPLETON ETF TRUST

STATEMENT OF INVESTMENTS

Franklin FTSE Japan ETF (continued)



	Industry			Shares		Value
Common Stocks (continued)
Japan (continued)
Tokyo Gas Co. Ltd.		Gas Utilities			56,100	$	1,250,192
Tokyo Ohka Kogyo Co. Ltd.		Chemicals			4,950		309,991
Tokyo Tatemono Co. Ltd.		Real Estate Management & Development			26,400		401,614
TOKYU Corp.		Road & Rail			66,000		880,398
Tokyu Fudosan Holdings Corp.		Real Estate Management & Development			79,200		469,466
Toppan Printing Co. Ltd.		Commercial Services & Supplies			36,300		614,308
Toray Industries Inc.		Chemicals			201,300		1,297,975
Toshiba Corp.		Industrial Conglomerates			59,400		2,010,462
Toshiba Tec Corp.		Technology Hardware, Storage & Peripherals			3,300		121,100
Tosoh Corp.		Chemicals			36,300		695,777
TOTO Ltd.		Building Products			19,800		1,218,462
Toyo Seikan Group Holdings Ltd.		Containers & Packaging			19,800		235,808
Toyo Suisan Kaisha Ltd.		Food Products			13,200		555,475
Toyo Tire Corp.		Auto Components			13,200		233,897
Toyoda Gosei Co. Ltd.		Auto Components			9,900		260,536
Toyota Boshoku Corp.		Auto Components			6,600		109,303
Toyota Industries Corp.		Auto Components			23,100		2,061,231
Toyota Motor Corp.		Automobiles			328,680		25,628,117
Toyota Tsusho Corp.		Trading Companies & Distributors			29,700		1,248,475
Trend Micro Inc.		Software			16,500		827,240
TS TECH Co. Ltd.		Auto Components			13,200		196,985
Tsumura & Co.		Pharmaceuticals			9,900		354,339
Tsuruha Holdings Inc.		Food & Staples Retailing			4,950		639,692
TV Asahi Holdings Corp.		Media			3,300		62,147
Ube Industries Ltd.		Chemicals			13,200		281,680
Ulvac Inc.		Semiconductors & Semiconductor Equipment			6,600		278,036
Unicharm Corp.		Household Products			52,800		2,219,511
United Urban Investment Corp.		Equity Real Estate Investment Trusts (REITs	)		297		399,405
Ushio Inc.		Electrical Equipment			13,200		174,288
USS Co. Ltd.		Specialty Retail			26,400		517,010
Welcia Holdings Co. Ltd.		Food & Staples Retailing			13,200		453,937
West Japan Railway Co.		Road & Rail			26,400		1,465,738
Yakult Honsha Co. Ltd.		Food Products			16,500		836,199
Yamada Holdings Co. Ltd.		Specialty Retail			95,700		517,040
Yamaguchi Financial Group Inc.		Banks			29,700		197,821
Yamaha Corp.		Leisure Products			19,800		1,076,905
Yamaha Motor Co. Ltd.		Automobiles			36,300		890,582
Yamato Holdings Co. Ltd.		Air Freight & Logistics			46,200		1,268,932
Yamato Kogyo Co. Ltd.		Metals & Mining			3,300		98,104
Yamazaki Baking Co. Ltd.		Food Products			16,500		267,136
Yaoko Co. Ltd.		Food & Staples Retailing			3,300		203,077
YASKAWA Electric Corp.		Machinery			33,000		1,645,520
Yokogawa Electric Corp.		Electronic Equipment, Instruments & Components			33,000		608,633
Yokohama Rubber Co. Ltd.		Auto Components			13,200		236,525
Z Holdings Corp.		Interactive Media & Services			343,200		1,710,099
Zenkoku Hosho Co. Ltd.		Diversified Financial Services			6,600		303,421
Zensho Holdings Co. Ltd.		Hotels, Restaurants & Leisure			13,200		338,183
Zeon Corp.		Chemicals			19,800		316,979
Zozo Inc.		Internet & Direct Marketing Retail			13,200		390,624

Total Investments before Short Term Investments (Cost $548,161,162)							593,024,322



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FRANKLIN TEMPLETON ETF TRUST

STATEMENT OF INVESTMENTS

Franklin FTSE Japan ETF (continued)

Industry

Shares

Value

Short Term Investment 0.1%

Money Market Funds 0.1%

United States 0.1%

b,c

Institutional Fiduciary Trust Portfolio, 0.01%

Money Market Funds

292,353

Total Investments
(Cost $548,453,515) 99.1%

593,316,675

Other Assets, less Liabilities 0.9%

5,617,445

Net Assets 100.0%

598,934,120

See Abbreviations on page 355.

^a Non-income producing.

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

^c The rate shown is the annualized seven-day effective yield at period end.

At March 31, 2021, 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

5,043,783

6/10/21

(3,624

)

* As of period end.

See Note 8 regarding other derivative information.



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

FRANKLIN TEMPLETON ETF TRUST

Financial Highlights

Franklin FTSE Japan Hedged ETF



	Year Ended March 31,

	2021		2020			2019			2018^a

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

Net asset value, beginning of year	$	21.35	$	23.12		$	25.11		$	25.91


Income from investment operations^b:

Net investment income^c		0.88		0.38			0.38			0.32

Net realized and unrealized gains (losses)		8.47		(2.15	)		(1.11	)		(1.11	)


Total from investment operations		9.35		(1.77	)		(0.73	)		(0.79	)


Less distributions from:

Net investment income		—		—			(0.01	)		(0.01	)

Net realized gains		—		—			(1.25	)		—^d


Total distributions		—		—			(1.26	)		(0.01	)


Net asset value, end of year	$	30.70	$	21.35		$	23.12		$	25.11


Total return^e		43.84%		(7.66)%			(2.59)%			(3.04)%

Ratios to average net assets^f

Expenses before waiver and payments by affiliates		0.09%		0.09%			0.09%			0.09%

Expenses net of waiver and payments by affiliates		0.09%		0.09%			0.09%			—%

Net investment income		3.29%		1.59%			1.51%			3.10%

Supplemental data

Net assets, end of year (000’s)		$24,563		$4,269			$13,870			$45,197

Portfolio turnover rate^g		6.31%^h		10.06%^h			19.78%			1.92%

^aFor the period November 2, 2017 (commencement of operations) to March 31, 2018.

^cBased on average daily shares outstanding.

^dAmount rounds to less than $0.001 per share.

^fRatios are annualized for periods less than one year, except for non-recurring expenses, if any.

^gPortfolio turnover rate includes portfolio transactions that are executed as a result of the Fund offering and redeeming Creation Units solely for cash (“Cash creations”).

^hPortfolio turnover rate excluding cash creations was as follows:

6.31%

10.06%



franklintempleton.com	The accompanying notes are an integral part of these financial statements. \| Annual Report	263

FRANKLIN TEMPLETON ETF TRUST

Statement of Investments, March 31, 2021

Franklin FTSE Japan Hedged ETF



		Industry			Shares		Value

	Common Stocks 98.1%
	Japan 98.1%
	ABC-Mart Inc.		Specialty Retail			136	$	7,680
	Acom Co. Ltd.		Consumer Finance			2,000		9,321
	Activia Properties Inc.		Equity Real Estate Investment Trusts (REITs	)		3		13,181
	Advance Residence Investment		Equity Real Estate Investment Trusts (REITs	)		5		15,701
	Advantest Corp.		Semiconductors & Semiconductor Equipment			1,040		91,106
	AEON Co. Ltd.		Food & Staples Retailing			3,800		113,450
	AEON Financial Service Co. Ltd.		Consumer Finance			600		8,063
	AEON Mall Co. Ltd.		Real Estate Management & Development			600		10,452
	AGC Inc.		Building Products			1,036		43,409
	Aica Kogyo Co. Ltd.		Building Products			272		9,822
	AIN Holdings Inc.		Food & Staples Retailing			136		8,788
	Air Water Inc.		Chemicals			1,000		17,557
	Aisin Seiki Co. Ltd.		Auto Components			956		36,337
	Ajinomoto Co. Inc.		Food Products			2,646		54,249
	Alfresa Holdings Corp.		Health Care Providers & Services			900		17,373
	Alps Alpine Co. Ltd.		Electronic Equipment, Instruments & Components			1,072		14,164
	Amada Co. Ltd.		Machinery			1,700		18,985
	Amano Corp.		Electronic Equipment, Instruments & Components			400		9,730
a	ANA Holdings Inc.		Airlines			800		18,621
	Anritsu Corp.		Electronic Equipment, Instruments & Components			711		15,545
	Aozora Bank Ltd.		Banks			600		13,759
	Ariake Japan Co. Ltd.		Food Products			96		5,829
	As One Corp.		Health Care Providers & Services			64		8,056
	Asahi Group Holdings Ltd.		Beverages			2,272		95,917
	Asahi Intecc Co. Ltd.		Health Care Equipment & Supplies			1,060		29,258
	Asahi Kasei Corp.		Chemicals			6,700		77,277
	Asics Corp.		Textiles, Apparel & Luxury Goods			900		14,376
	ASKUL Corp.		Internet & Direct Marketing Retail			136		5,206
	Astellas Pharma Inc.		Pharmaceuticals			10,100		155,567
	Azbil Corp.		Electronic Equipment, Instruments & Components			672		28,978
	Bandai Namco Holdings Inc.		Leisure Equipment & Products			1,010		72,144
	BayCurrent Consulting Inc.		Professional Services			100		22,851
	Benefit One Inc.		Professional Services			272		7,234
	Benesse Holdings Inc.		Diversified Consumer Services			400		8,427
	BIC CAMERA Inc.		Specialty Retail			800		8,977
	Bridgestone Corp.		Auto Components			3,084		124,895
	Brother Industries Ltd.		Technology Hardware, Storage & Peripherals			1,300		28,812
	Calbee Inc.		Food Products			400		10,215
	CANON Inc.		Technology Hardware, Storage & Peripherals			5,400		122,294
	Canon Marketing Japan Inc.		Electronic Equipment, Instruments & Components			272		6,046
	Capcom Co. Ltd.		Entertainment			946		30,777
	Casio Computer Co. Ltd.		Household Durables			1,200		22,643
	Central Japan Railway Co.		Road & Rail			980		146,778
	Chubu Electric Power Co. Inc.		Electric Utilities			3,730		48,102
	Chugai Pharmaceutical Co. Ltd.		Pharmaceuticals			3,492		141,861
	Chuo Mitsui Trust Holdings Inc.		Banks			1,972		68,868
	Coca-Cola Bottlers Japan Holdings Inc.		Beverages			800		13,966
	COMSYS Holdings Corp.		Construction & Engineering			636		19,627
	Concordia Financial Group Ltd.		Banks			6,000		24,380
	Cosmo Energy Holdings Co. Ltd.		Oil, Gas & Consumable Fuels			320		7,637
	Cosmos Pharmaceutical Corp.		Food & Staples Retailing			95		14,848
	Credit Saison Co. Ltd.		Consumer Finance			800		9,614
	CyberAgent Inc.		Media			2,084		37,587
	Dai Nippon Printing Co. Ltd.		Commercial Services & Supplies			1,472		30,892
	Daicel Corp.		Chemicals			1,400		10,795
	Daido Steel Co. Ltd.		Metals & Mining			168		7,769
	Daifuku Co. Ltd.		Machinery			501		49,148



264	Annual Report	franklintempleton.com

FRANKLIN TEMPLETON ETF TRUST

STATEMENT OF INVESTMENTS

Franklin FTSE Japan Hedged ETF (continued)



	Industry			Shares		Value

Common Stocks (continued)
Japan (continued)
Daiichi Sankyo Co. Ltd.		Pharmaceuticals			10,300	$	300,611
Daiichikosho Co. Ltd.		Entertainment			240		9,318
Daikin Industries Ltd.		Building Products			1,430		288,847
Daio Paper Corp.		Paper & Forest Products			400		6,874
Daito Trust Construction Co. Ltd.		Real Estate Management & Development			344		39,941
Daiwa House Industry Co. Ltd.		Real Estate Management & Development			3,472		101,835
Daiwa House Residential Investment Corp.		Equity Real Estate Investment Trusts (REITs	)		8		21,509
Daiwa Office Investment Corp.		Equity Real Estate Investment Trusts (REITs	)		1		7,050
Daiwa Securities Group Inc.		Capital Markets			8,100		41,937
DeNA Co. Ltd.		Entertainment			536		10,487
Denka Co. Ltd.		Chemicals			500		20,000
Denso Corp.		Auto Components			2,500		166,222
Dentsu Group Inc.		Media			1,200		38,552
DIC Corp.		Chemicals			400		10,378
Disco Corp.		Semiconductors & Semiconductor Equipment			150		47,172
DMG Mori Co. Ltd.		Machinery			536		8,799
Dowa Holdings Co. Ltd.		Metals & Mining			272		11,335
East Japan Railway Co.		Road & Rail			1,980		140,464
EBARA Corp.		Machinery			480		19,613
Eisai Co. Ltd.		Pharmaceuticals			1,460		98,025
Elecom Co. Ltd.		Technology Hardware, Storage & Peripherals			360		8,001
Electric Power Development Co. Ltd.		Independent Power and Renewable Electricity Producers			900		15,752
ENEOS Holdings Inc.		Oil, Gas & Consumable Fuels			16,200		73,538
Ezaki Glico Co. Ltd.		Food Products			272		10,942
Fancl Corp.		Personal Products			332		11,222
FANUC Corp.		Machinery			1,040		246,447
Fast Retailing Co. Ltd.		Specialty Retail			278		221,721
FP Corp.		Containers & Packaging			272		11,089
Fuji Electric Co. Ltd.		Electrical Equipment			672		28,035
Fuji Kyuko Co. Ltd.		Hotels, Restaurants & Leisure			100		5,321
Fuji Media Holdings Inc.		Media			272		3,335
Fuji Oil Holdings Inc.		Food Products			272		7,269
FUJIFILM Holdings Corp.		Technology Hardware, Storage & Peripherals			1,954		116,197
Fujitsu General Ltd.		Household Durables			272		7,594
Fujitsu Ltd.		IT Services			1,021		147,837
Fukuoka Financial Group Inc.		Banks			900		17,096
Fukuyama Transporting Co. Ltd.		Road & Rail			136		5,612
Furukawa Electric Co. Ltd.		Electrical Equipment			312		8,386
Fuyo General Lease Co. Ltd.		Diversified Financial Services			100		6,896
GLP J-REIT		Equity Real Estate Investment Trusts (REITs	)		17		27,969
GMO Internet Inc.		IT Services			300		8,606
GMO Payment Gateway Inc.		IT Services			218		28,961
Goldwin Inc.		Textiles, Apparel & Luxury Goods			176		11,277
GS Yuasa Corp.		Electrical Equipment			400		10,860
GungHo Online Entertainment Inc.		Entertainment			200		3,957
Gunma Bank Ltd.		Banks			2,200		7,904
Hachijuni Bank Ltd.		Banks			2,400		8,753
Hakuhodo DY Holdings Inc.		Media			1,300		21,706
Hamamatsu Photonics K.K.		Electronic Equipment, Instruments & Components			672		39,773
Hankyu Hanshin Holdings Inc.		Road & Rail			1,200		38,498
Haseko Corp.		Household Durables			1,400		19,625
Heiwa Corp.		Leisure Equipment & Products			272		4,448
Hikari Tsushin Inc.		Specialty Retail			116		23,378
Hino Motors Ltd.		Machinery			1,500		12,923
Hirogin Holdings Inc.		Banks			1,600		9,803
Hirose Electric Co. Ltd.		Electronic Equipment, Instruments & Components			178		27,417
Hisamitsu Pharmaceutical Co. Inc.		Pharmaceuticals			400		26,100
Hitachi Capital Corp.		Consumer Finance			272		8,000



franklintempleton.com	Annual Report	265

FRANKLIN TEMPLETON ETF TRUST

STATEMENT OF INVESTMENTS

Franklin FTSE Japan Hedged ETF (continued)



		Industry			Shares		Value

	Common Stocks (continued)
	Japan (continued)
	Hitachi Construction Machinery Co. Ltd.		Machinery			536	$	17,196
	Hitachi Ltd.		Electronic Equipment, Instruments & Components			5,000		226,425
	Hitachi Metals Ltd.		Metals & Mining			1,072		17,676
	Hitachi Transport System Ltd.		Road & Rail			208		7,002
	Hokuriku Electric Power Co.		Electric Utilities			900		6,166
	Honda Motor Co. Ltd.		Automobiles			9,200		276,333
	HORIBA Ltd.		Electronic Equipment, Instruments & Components			200		12,633
	Hoshizaki Corp.		Machinery			272		24,320
	House Foods Group Inc.		Food Products			400		13,176
	Hoya Corp.		Health Care Equipment & Supplies			1,960		230,677
	Ibiden Co. Ltd.		Electronic Equipment, Instruments & Components			536		24,690
	Ichigo Inc.		Real Estate Management & Development			1,000		2,959
	Idemitsu Kosan Co. Ltd.		Oil, Gas & Consumable Fuels			1,288		33,267
	IHI Corp.		Machinery			672		13,653
	Iida Group Holdings Co. Ltd.		Household Durables			800		19,374
	Industrial & Infrastructure Fund Investment Corp.		Equity Real Estate Investment Trusts (REITs	)		8		13,748
	INPEX Corp.		Oil, Gas & Consumable Fuels			5,000		34,208
	IR Japan Holdings Ltd.		Professional Services			47		5,687
	Isetan Mitsukoshi Holdings Ltd.		Multiline Retail			1,900		13,377
	Isuzu Motors Ltd.		Automobiles			2,800		30,128
	Ito En Ltd.		Beverages			272		16,714
	ITOCHU Corp.		Trading Companies & Distributors			7,312		237,359
	ITOCHU Techno-Solutions Corp.		IT Services			500		16,131
	Itoham Yonekyu Holdings Inc.		Food Products			800		5,278
	Iwatani Corp.		Oil, Gas & Consumable Fuels			300		18,543
	Izumi Co. Ltd.		Multiline Retail			208		8,160
	J Front Retailing Co. Ltd.		Multiline Retail			1,300		12,365
a	Japan Airlines Co. Ltd.		Airlines			800		17,882
	Japan Airport Terminal Co. Ltd.		Transportation Infrastructure			280		13,785
	Japan Aviatn Elect		Electronic Equipment, Instruments & Components			272		4,406
	Japan Exchange Group Inc.		Capital Markets			2,872		67,447
	Japan Logistics Fund Inc.		Equity Real Estate Investment Trusts (REITs	)		3		8,471
	Japan Post Bank Co. Ltd.		Banks			2,200		21,184
	Japan Post Holdings Co. Ltd.		Insurance			7,200		64,292
	Japan Post Insurance Co. Ltd.		Insurance			996		20,497
	Japan Prime Realty Investment Corp.		Equity Real Estate Investment Trusts (REITs	)		4		14,950
	Japan Real Estate Investment Corp.		Equity Real Estate Investment Trusts (REITs	)		5		29,548
	Japan Retail Fund Investment Corp.		Equity Real Estate Investment Trusts (REITs	)		28		28,659
	Japan Tobacco Inc.		Tobacco			6,400		123,077
	JCR Pharmaceuticals Co. Ltd.		Pharmaceuticals			300		9,733
^a	JFE Holdings Inc.		Metals & Mining			2,800		34,538
	JGC Holdings Corp.		Construction & Engineering			1,200		14,726
	JSR Corp.		Chemicals			936		28,292
	JTEKT Corp.		Auto Components			1,200		12,271
	Justsystems Corp.		Software			200		10,950
	K’s Holdings Corp.		Specialty Retail			900		12,388
	Kagome Co. Ltd.		Food Products			400		12,724
	Kajima Corp.		Construction & Engineering			2,400		34,121
	Kakaku.com Inc.		Interactive Media & Services			672		18,366
	Kaken Pharmaceutical Co. Ltd.		Pharmaceuticals			160		6,277
	Kamigumi Co. Ltd.		Transportation Infrastructure			536		10,172
	Kandenko Co. Ltd.		Construction & Engineering			600		5,272
	Kaneka Corp.		Chemicals			272		11,200
	Kansai Electric Power Co. Inc.		Electric Utilities			3,900		42,282
	Kansai Mirai Financial Group Inc		Banks			800		4,684
	Kansai Paint Co. Ltd.		Chemicals			1,088		29,095
	KAO Corp.		Personal Products			2,524		167,041
a	Kawasaki Heavy Industries Ltd.		Machinery			800		19,852



266	Annual Report	franklintempleton.com

FRANKLIN TEMPLETON ETF TRUST

STATEMENT OF INVESTMENTS

Franklin FTSE Japan Hedged ETF (continued)



		Industry			Shares		Value

	Common Stocks (continued)
	Japan (continued)
	KDDI Corp.		Wireless Telecommunication Services			9,166	$	281,616
	Keihan Holdings Co. Ltd.		Industrial Conglomerates			492		20,481
	Keikyu Corp.		Road & Rail			1,300		19,659
	Keio Corp.		Road & Rail			600		40,398
	Keisei Electric Railway Co. Ltd.		Road & Rail			804		26,339
	Kenedix Office Investment Corp.		Equity Real Estate Investment Trusts (REITs	)		2		14,244
	Kewpie Corp.		Food Products			536		12,224
	Keyence Corp.		Electronic Equipment, Instruments & Components			978		444,924
	Kikkoman Corp.		Food Products			1,036		61,785
	Kinden Corp.		Construction & Engineering			672		11,464
	Kintetsu Group Holdings Co. Ltd.		Road & Rail			996		38,037
	Kirin Holdings Co. Ltd.		Beverages			4,100		78,679
	Kobayashi Pharmaceutical Co. Ltd.		Personal Products			324		30,289
	Kobe Bussan Co. Ltd.		Food & Staples Retailing			200		5,367
^a	Kobe Steel Ltd.		Metals & Mining			1,600		10,831
	Koei Tecmo Holdings Co. Ltd.		Entertainment			397		17,838
	Koito Manufacturing Co. Ltd.		Auto Components			595		39,954
	Kokuyo Co. Ltd.		Commercial Services & Supplies			500		7,756
	Komatsu Ltd.		Machinery			4,916		152,107
	Konami Holdings Corp.		Entertainment			476		28,388
	Konica Minolta Inc.		Technology Hardware, Storage & Peripherals			2,400		13,032
	KOSE Corp.		Personal Products			154		21,825
	Kotobuki Spirits Co. Ltd.		Food Products			100		6,507
	Kubota Corp.		Machinery			6,000		136,805
	Kuraray Co. Ltd.		Chemicals			1,900		21,717
	Kurita Water Industries Ltd.		Machinery			636		27,311
	Kusuri No Aoki Holdings Co. Ltd.		Food & Staples Retailing			80		6,139
	Kyocera Corp.		Electronic Equipment, Instruments & Components			1,692		107,568
	Kyoritsu Maintenance Co. Ltd.		Hotels, Restaurants & Leisure			136		4,511
	Kyowa Exeo Corp.		Construction & Engineering			536		14,174
	Kyowa Kirin Co. Ltd.		Pharmaceuticals			1,300		38,941
	Kyudenko Corp.		Construction & Engineering			180		6,890
	Kyushu Electric Power Co. Inc.		Electric Utilities			2,500		24,706
	Kyushu Financial Group Inc.		Banks			2,000		8,597
	Kyushu Railway Co.		Road & Rail			900		20,965
	LaSalle Logiport REIT		Equity Real Estate Investment Trusts (REITs	)		7		10,630
	Lasertec Corp.		Semiconductors & Semiconductor Equipment			410		53,875
	Lawson Inc.		Food & Staples Retailing			252		12,383
	LINTEC Corp.		Chemicals			272		6,164
	Lion Corp.		Household Products			1,400		27,354
	LIXIL Group Corp.		Building Products			1,436		39,961
	M3 Inc.		Health Care Technology			2,318		158,820
	Mabuchi Motor Co. Ltd.		Electrical Equipment			272		11,975
	Maeda Corp.		Construction & Engineering			700		6,056
	Maeda Road Construction Co. Ltd.		Construction & Engineering			172		3,336
	Makita Corp.		Machinery			1,328		57,026
	Mani Inc.		Health Care Equipment & Supplies			300		7,548
	Marubeni Corp.		Trading Companies & Distributors			8,500		70,831
	Marui Group Co. Ltd.		Multiline Retail			1,072		20,169
	Maruichi Steel Tube Ltd.		Metals & Mining			312		7,129
	Maruwa Unyu Kikan Co. Ltd.		Air Freight & Logistics			200		3,491
	Matsui Securities Co. Ltd.		Capital Markets			600		4,892
	Matsumotokiyoshi Holdings Co. Ltd.		Food & Staples Retailing			400		17,846
	Mazda Motor Corp.		Automobiles			3,100		25,305
	Mebuki Financial Group Inc.		Banks			5,600		13,227
	Medipal Holdings Corp.		Health Care Providers & Services			800		15,377
	Megmilk Snow Brand Co. Ltd.		Food Products			184		3,745
	Meiji Holdings Co. Ltd.		Food Products			693		44,653



franklintempleton.com	Annual Report	267

FRANKLIN TEMPLETON ETF TRUST

STATEMENT OF INVESTMENTS

Franklin FTSE Japan Hedged ETF (continued)



		Industry			Shares		Value

	Common Stocks (continued)
	Japan (continued)
	Minebea Mitsumi Inc.		Machinery			2,236	$	57,246
	Miraca Holdings Inc.		Health Care Providers & Services			272		9,145
	MISUMI Group Inc.		Machinery			1,480		43,061
	Mitsubishi Chemical Holdings Corp.		Chemicals			6,900		51,822
	Mitsubishi Corp.		Trading Companies & Distributors			6,473		183,353
	Mitsubishi Electric Corp.		Electrical Equipment			10,700		163,308
	Mitsubishi Estate Co. Ltd.		Real Estate Management & Development			6,201		108,447
	Mitsubishi Gas Chemical Co. Inc.		Chemicals			936		22,989
	Mitsubishi Heavy Industries Ltd.		Machinery			1,500		46,819
	Mitsubishi Logistics Corp.		Transportation Infrastructure			324		9,925
	Mitsubishi Materials Corp.		Metals & Mining			672		15,714
a	Mitsubishi Motors Corp.		Automobiles			3,300		9,407
	Mitsubishi Shokuhin Co. Ltd.		Food & Staples Retailing			136		3,809
	Mitsubishi UFJ Financial Group Inc.		Banks			67,600		361,981
	Mitsubishi UFJ Lease & Finance Co. Ltd.		Diversified Financial Services			2,300		13,904
	Mitsui & Co. Ltd.		Trading Companies & Distributors			8,800		183,327
	Mitsui Chemicals Inc.		Chemicals			936		29,605
	Mitsui Fudosan Co. Ltd.		Real Estate Management & Development			5,000		113,733
	Mitsui Fudosan Logistics Park Inc.		Equity Real Estate Investment Trusts (REITs	)		2		9,900
	Mitsui Mining and Smelting Co. Ltd.		Metals & Mining			272		9,452
	Mitsui O.S.K. Lines Ltd.		Marine			636		22,303
	Miura Co. Ltd.		Machinery			580		31,388
	Mizuho Financial Group Inc.		Banks			13,700		198,247
	Mochida Pharmaceutical Co. Ltd.		Pharmaceuticals			136		5,280
	Monotaro Co. Ltd.		Trading Companies & Distributors			1,220		33,056
	Mori Hills REIT Investment Corp.		Equity Real Estate Investment Trusts (REITs	)		6		8,324
	Morinaga & Co. Ltd.		Food Products			204		7,302
	Morinaga Milk Industry Co. Ltd.		Food Products			208		10,955
	MS&AD Insurance Group Holdings Inc.		Insurance			2,572		75,624
	Murata Manufacturing Co. Ltd.		Electronic Equipment, Instruments & Components			3,070		245,656
	Nabtesco Corp.		Machinery			676		30,955
	Nagase & Co. Ltd.		Trading Companies & Distributors			600		9,388
	Nagoya Railroad Co. Ltd.		Road & Rail			1,076		25,639
	Nankai Electric Railway Co. Ltd.		Road & Rail			636		14,631
	NEC Corp.		IT Services			1,460		86,147
	NEC System Integration & Construction Ltd.		IT Services			400		7,052
	Net One Systems Co. Ltd.		IT Services			400		12,796
	Nexon Co. Ltd.		Entertainment			2,172		70,565
	NGK Insulators Ltd.		Machinery			1,400		25,643
	NGK Spark Plug Co. Ltd.		Auto Components			1,000		17,294
	NH Foods Ltd.		Food Products			536		23,016
	NHK Spring Co. Ltd.		Auto Components			800		6,009
	Nichirei Corp.		Food Products			536		13,820
	Nidec Corp.		Electrical Equipment			2,530		307,607
	Nifco Inc.		Auto Components			500		18,258
	Nihon Kohden Corp.		Health Care Equipment & Supplies			400		11,692
	Nihon M&A Center Inc.		Professional Services			1,444		39,112
	Nihon Unisys Ltd.		IT Services			312		9,628
	Nikon Corp.		Household Durables			1,700		15,923
	Nintendo Co. Ltd.		Entertainment			578		323,314
	Nippo Corp.		Construction & Engineering			272		7,434
	Nippon Accommodations Fund Inc.		Equity Real Estate Investment Trusts (REITs	)		2		11,747
	Nippon Building Fund Inc.		Equity Real Estate Investment Trusts (REITs	)		6		35,348
	Nippon Electric Glass Co. Ltd.		Electronic Equipment, Instruments & Components			400		9,285
	Nippon Express Co. Ltd.		Road & Rail			400		29,828
	Nippon Kayaku Co. Ltd.		Chemicals			900		8,707
	Nippon Paint Holdings Co. Ltd.		Chemicals			4,250		61,346



268	Annual Report	franklintempleton.com

FRANKLIN TEMPLETON ETF TRUST

STATEMENT OF INVESTMENTS

Franklin FTSE Japan Hedged ETF (continued)



		Industry			Shares		Value

	Common Stocks (continued)
	Japan (continued)
	Nippon Paper Industries Co. Ltd.		Paper & Forest Products			500	$	6,000
	Nippon Prologis REIT Inc.		Equity Real Estate Investment Trusts (REITs	)		9		28,955
	Nippon Sanso Holdings Corp.		Chemicals			724		13,785
	Nippon Shinyaku Co. Ltd.		Pharmaceuticals			256		19,067
	Nippon Shobukai Co. Ltd.		Chemicals			156		8,951
a	Nippon Steel Corp.		Metals & Mining			4,400		75,119
	Nippon Telegraph & Telephone Corp.		Diversified Telecommunication Services			6,600		169,748
	Nippon Television Holdings Inc.		Media			200		2,632
	Nippon Yusen KK		Marine			900		30,747
	Nipro Corp.		Health Care Equipment & Supplies			600		7,260
	Nishi-Nippon Railroad Co. Ltd.		Road & Rail			400		10,704
	Nissan Chemical Corp.		Chemicals			712		38,081
a	Nissan Motor Co. Ltd.		Automobiles			10,400		57,967
	Nisshin Seifun Group Inc.		Food Products			1,400		23,439
	Nissin Foods Holdings Co. Ltd.		Food Products			352		26,153
	Nitori Holdings Co. Ltd.		Specialty Retail			399		77,363
	Nitto Denko Corp.		Chemicals			770		65,920
	Noevir Holdings Co. Ltd.		Personal Products			92		4,180
	NOF Corp.		Chemicals			400		20,959
	NOK Corp.		Auto Components			672		9,128
	Nomura Holdings Inc.		Capital Markets			16,300		85,763
	Nomura Real Estate Holdings Inc.		Real Estate Management & Development			600		14,471
	Nomura Real Estate Master Fund Inc.		Equity Real Estate Investment Trusts (REITs	)		18		27,106
	Nomura Research Institute Ltd.		IT Services			1,440		44,633
	NS Solutions Corp.		IT Services			136		4,320
	NSK Ltd.		Machinery			2,400		24,652
	NTT Data Corp.		IT Services			3,400		52,708
	Obayashi Corp.		Construction & Engineering			3,600		33,068
	OBIC Business Consultants Co. Ltd.		Software			84		4,409
	OBIC Co. Ltd.		IT Services			357		65,358
	Odakyu Electric Railway Co. Ltd.		Road & Rail			1,700		46,538
	Oji Holdings Corp.		Paper & Forest Products			4,800		31,102
	Okuma Corp.		Machinery			136		7,815
	Olympus Corp.		Health Care Equipment & Supplies			5,740		119,008
	Omron Corp.		Electronic Equipment, Instruments & Components			976		76,313
	Ono Pharmaceutical Co. Ltd.		Pharmaceuticals			2,304		60,258
	Open House Co. Ltd.		Real Estate Management & Development			400		17,086
	Oracle Corp. Japan		Software			160		15,638
	Orient Corp.		Consumer Finance			2,800		3,902
	Oriental Land Co. Ltd.		Hotels, Restaurants & Leisure			1,010		151,957
	ORIX Corp.		Diversified Financial Services			6,600		111,573
	ORIX JREIT Inc.		Equity Real Estate Investment Trusts (REITs	)		11		19,153
	Osaka Gas Co. Ltd.		Gas Utilities			2,100		40,993
	OSG Corp.		Machinery			400		7,135
	Otsuka Corp.		IT Services			536		25,127
	Otsuka Holdings Co. Ltd.		Pharmaceuticals			2,304		97,727
	Paltac Corp.		Distributors			160		8,673
	Pan Pacific International Holdings Corp.		Multiline Retail			2,728		64,460
	Panasonic Corp.		Household Durables			11,500		148,147
a	Park24 Co. Ltd.		Commercial Services & Supplies			572		10,710
	Penta-Ocean Construction Co. Ltd.		Construction & Engineering			1,600		12,583
a	PeptiDream Inc.		Biotechnology			460		21,064
	Persol Holdings Co. Ltd.		Professional Services			900		17,625
	Pigeon Corp.		Household Products			636		24,174
	Pola Orbis Holdings Inc.		Personal Products			400		9,643
	Rakuten Inc.		Internet & Direct Marketing Retail			4,300		51,328
	Recruit Holdings Co. Ltd.		Professional Services			7,274		355,537
	Relo Group Inc.		Real Estate Management & Development			536		11,360



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FRANKLIN TEMPLETON ETF TRUST

STATEMENT OF INVESTMENTS

Franklin FTSE Japan Hedged ETF (continued)



		Industry			Shares		Value

	Common Stocks (continued)
	Japan (continued)
a	Renesas Electronics Corp.		Semiconductors & Semiconductor Equipment			3,900	$	42,353
	Rengo Co. Ltd.		Containers & Packaging			1,100		9,567
a	RENOVA Inc.		Independent Power and Renewable Electricity Producers			200		6,742
	Resona Holdings Inc.		Banks			11,700		49,214
	Resorttrust Inc.		Hotels, Restaurants & Leisure			400		6,690
	Ricoh Co. Ltd.		Technology Hardware, Storage & Peripherals			3,700		37,636
	Rinnai Corp.		Household Durables			188		21,080
	Rohm Co. Ltd.		Semiconductors & Semiconductor Equipment			436		42,653
	Rohto Pharmaceutical Co. Ltd.		Personal Products			536		14,324
	Ryohin Keikaku Co. Ltd.		Multiline Retail			1,300		30,800
	Sankyo Co. Ltd.		Leisure Equipment & Products			272		7,220
	Sankyu Inc.		Road & Rail			272		11,963
	Santen Pharmaceutical Co. Ltd.		Pharmaceuticals			1,900		26,187
	Sanwa Holdings Corp.		Building Products			1,100		14,424
	Sapporo Holdings Ltd.		Beverages			300		6,225
	Sawai Pharmaceutical Co. Ltd.		Pharmaceuticals			188		9,136
	SBI Holdings Inc.		Capital Markets			1,312		35,620
	SCREEN Holdings Co. Ltd.		Semiconductors & Semiconductor Equipment			192		16,924
	SCSK Corp.		IT Services			224		13,298
	Secom Co. Ltd.		Commercial Services & Supplies			1,016		85,629
	Sega Sammy Holdings Inc.		Leisure Equipment & Products			1,026		16,035
	Seibu Holdings Inc.		Road & Rail			1,072		11,836
	Seiko Epson Corp.		Technology Hardware, Storage & Peripherals			1,500		24,434
	Seino Holdings Co. Ltd.		Road & Rail			700		9,768
	Sekisui Chemical Co. Ltd.		Household Durables			1,900		36,538
	Sekisui House Ltd.		Household Durables			3,100		66,601
	Sekisui House Reit Inc.		Equity Real Estate Investment Trusts (REITs	)		16		13,321
	Seven & i Holdings Co. Ltd.		Food & Staples Retailing			4,200		169,634
	Seven Bank Ltd.		Banks			3,500		8,014
	SG Holdings Co. Ltd.		Air Freight & Logistics			2,244		51,521
	Sharp Corp.		Household Durables			800		13,828
	Shikoku Electric Power Co. Inc.		Electric Utilities			800		6,226
	Shimadzu Corp.		Electronic Equipment, Instruments & Components			1,500		54,367
	Shimamura Co. Ltd.		Specialty Retail			116		13,406
	SHIMANO Inc.		Leisure Equipment & Products			420		100,249
	Shimizu Corp.		Construction & Engineering			3,000		24,326
	Shin-Etsu Chemical Co. Ltd.		Chemicals			2,152		362,432
	Shinko Electric Industries Co. Ltd.		Semiconductors & Semiconductor Equipment			400		12,398
	Shinsei Bank Ltd.		Banks			900		14,571
	Shionogi & Co. Ltd.		Pharmaceuticals			1,512		81,443
	Ship Healthcare Holdings Inc.		Health Care Providers & Services			400		11,258
	Shiseido Co. Ltd.		Personal Products			2,108		141,589
	SHO-BOND Holdings Co. Ltd.		Construction & Engineering			240		10,360
a	Shochiku Co. Ltd.		Entertainment			56		6,953
	Shoei Co. Ltd.		Real Estate Management & Development			2,000		23,620
	Showa Denko K.K.		Chemicals			752		21,437
	Sky Perfect JSAT Holdings Inc.		Media			800		3,562
a	Skylark Holdings Co. Ltd.		Hotels, Restaurants & Leisure			1,000		14,986
	SMC Corp.		Machinery			310		180,417
	SMS Co. Ltd.		Professional Services			280		8,565
	Softbank Corp.		Wireless Telecommunication Services			14,900		193,970
	SoftBank Group Corp.		Wireless Telecommunication Services			7,520		634,947
	Sohgo Security Services Co. Ltd.		Commercial Services & Supplies			328		15,524
	Sojitz Corp.		Trading Companies & Distributors			6,400		18,071
	Sompo Holdings Inc.		Insurance			1,736		66,644
	Sony Corp.		Household Durables			6,700		703,045
	Sotetsu Holdings Inc.		Road & Rail			400		8,974
	Square Enix Holdings Co. Ltd.		Entertainment			400		22,262



270	Annual Report	franklintempleton.com

FRANKLIN TEMPLETON ETF TRUST

STATEMENT OF INVESTMENTS

Franklin FTSE Japan Hedged ETF (continued)



		Industry		Shares		Value

	Common Stocks (continued)
	Japan (continued)
	Stanley Electric Co. Ltd.		Auto Components		816	$	24,332
	Subaru Corp.		Automobiles		3,300		65,821
	Sugi Pharmacy Co. Ltd.		Food & Staples Retailing		184		14,603
	Sumco Corp.		Semiconductors & Semiconductor Equipment		1,300		29,718
	Sumitomo Bakelite Co. Ltd.		Chemicals		136		5,569
	Sumitomo Chemical Co. Ltd.		Chemicals		8,200		42,521
	Sumitomo Corp.		Trading Companies & Distributors		6,100		87,056
	Sumitomo Dainippon Pharma Co. Ltd.		Pharmaceuticals		900		15,695
	Sumitomo Electric Industries Ltd.		Auto Components		4,100		61,519
	Sumitomo Forestry Co. Ltd.		Household Durables		700		15,115
	Sumitomo Heavy Industries Ltd.		Machinery		636		17,699
	Sumitomo Metal Mining Co. Ltd.		Metals & Mining		1,300		56,224
	Sumitomo Mitsui Financial Group Inc.		Banks		6,988		253,402
	Sumitomo Realty & Development Co. Ltd.		Real Estate Management & Development		2,100		74,232
	Sumitomo Rubber Industries Ltd.		Auto Components		1,000		11,810
	Sundrug Co. Ltd.		Food & Staples Retailing		340		12,462
	Suntory Beverage & Food Ltd.		Beverages		640		23,833
	Sushiro Global Holdings Ltd		Hotels, Restaurants & Leisure		560		24,782
	Suzuken Co. Ltd.		Health Care Providers & Services		400		15,656
	Suzuki Motor Corp.		Automobiles		2,432		110,595
	Sysmex Corp.		Health Care Equipment & Supplies		976		105,328
	T&D Holdings Inc.		Insurance		2,900		37,424
	Taiheiyo Cement Corp.		Construction Materials		600		15,806
	Taisei Corp.		Construction & Engineering		1,040		40,188
	Taisho Pharmaceutical Holdings Co. Ltd.		Pharmaceuticals		216		13,957
	Taiyo Yuden Co. Ltd.		Electronic Equipment, Instruments & Components		639		30,071
	Takara Bio Inc.		Biotechnology		272		7,306
	Takara Holdings Inc.		Beverages		900		12,274
	Takashimaya Co. Ltd.		Multiline Retail		800		8,550
	Takeda Pharmaceutical Co. Ltd.		Pharmaceuticals		8,290		298,965
	TBS Holdings Inc.		Media		172		3,381
	TDK Corp.		Electronic Equipment, Instruments & Components		650		90,176
	TechnoPro Holdings Inc.		Professional Services		176		14,685
	Teijin Ltd.		Chemicals		1,000		17,258
	Terumo Corp.		Health Care Equipment & Supplies		3,560		128,837
	The Bank of Kyoto Ltd.		Banks		400		24,652
	The Chiba Bank Ltd.		Banks		3,400		22,308
	The Chugoku Bank Ltd.		Banks		900		7,615
	The Chugoku Electric Power Co. Inc.		Electric Utilities		1,600		19,678
	The Dai-ichi Life Holdings Inc.		Insurance		5,700		98,112
	The Iyo Bank Ltd.		Banks		1,400		8,413
	The Shizuoka Bank Ltd.		Banks		2,700		21,258
	THK Co. Ltd.		Machinery		580		20,103
	TIS Inc.		IT Services		1,300		31,071
	Tobu Railway Co. Ltd.		Road & Rail		1,072		28,871
	Toda Corp.		Construction & Engineering		1,200		8,807
	Toho Co. Ltd.		Entertainment		560		22,755
	Toho Gas Co. Ltd.		Gas Utilities		463		28,618
	Tohoku Electric Power Co. Inc.		Electric Utilities		2,600		24,588
	Tokai Carbon Co. Ltd.		Chemicals		1,100		17,789
	Tokai Rika Co. Ltd.		Auto Components		272		4,618
	Tokio Marine Holdings Inc.		Insurance		3,482		165,907
	Tokuyama Corp.		Chemicals		400		10,110
	Tokyo Century Corp.		Diversified Financial Services		332		22,354
a	Tokyo Electric Power Co. Holdings Inc.		Electric Utilities		8,400		28,051
	Tokyo Electron Ltd.		Semiconductors & Semiconductor Equipment		800		338,751
	Tokyo Gas Co. Ltd.		Gas Utilities		2,297		51,189
	Tokyo Ohka Kogyo Co. Ltd.		Chemicals		192		12,024
	Tokyo Tatemono Co. Ltd.		Real Estate Management & Development		1,072		16,308
	TOKYU Corp.		Road & Rail		2,700		36,016
	Tokyu Fudosan Holdings Corp.		Real Estate Management & Development		3,200		18,968
	Toppan Printing Co. Ltd.		Commercial Services & Supplies		1,500		25,385
	Toray Industries Inc.		Chemicals		8,200		52,873



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FRANKLIN TEMPLETON ETF TRUST

STATEMENT OF INVESTMENTS

Franklin FTSE Japan Hedged ETF (continued)



		Industry			Shares		Value

	Common Stocks (continued)
	Japan (continued)
	Toshiba Corp.		Industrial Conglomerates			2,380	$	80,554
	Toshiba Tec Corp.		Technology Hardware, Storage & Peripherals			120		4,404
	Tosoh Corp.		Chemicals			1,472		28,214
	TOTO Ltd.		Building Products			756		46,523
	Toyo Seikan Group Holdings Ltd.		Containers & Packaging			800		9,528
	Toyo Suisan Kaisha Ltd.		Food Products			471		19,820
	Toyo Tire Corp.		Auto Components			536		9,498
	Toyoda Gosei Co. Ltd.		Auto Components			400		10,527
	Toyota Boshoku Corp.		Auto Components			300		4,968
	Toyota Industries Corp.		Auto Components			900		80,308
	Toyota Motor Corp.		Automobiles			13,341		1,040,236
	Toyota Tsusho Corp.		Trading Companies & Distributors			1,200		50,443
	Trend Micro Inc.		Software			608		30,483
	TS TECH Co. Ltd.		Auto Components			600		8,954
	Tsumura & Co.		Pharmaceuticals			400		14,317
	Tsuruha Holdings Inc.		Food & Staples Retailing			194		25,071
	TV Asahi Holdings Corp.		Media			136		2,561
	Ube Industries Ltd.		Chemicals			536		11,438
	Ulvac Inc.		Semiconductors & Semiconductor Equipment			272		11,458
	Unicharm Corp.		Household Products			2,100		88,276
	United Urban Investment Corp.		Equity Real Estate Investment Trusts (REITs	)		12		16,138
	Ushio Inc.		Electrical Equipment			600		7,922
	USS Co. Ltd.		Specialty Retail			1,100		21,542
	Welcia Holdings Co. Ltd.		Food & Staples Retailing			544		18,708
	West Japan Railway Co.		Road & Rail			1,020		56,631
	Yakult Honsha Co. Ltd.		Food Products			687		34,816
	Yamada Holdings Co. Ltd.		Specialty Retail			4,000		21,611
	Yamaguchi Financial Group Inc.		Banks			1,200		7,993
	Yamaha Corp.		Leisure Equipment & Products			800		43,511
	Yamaha Motor Co. Ltd.		Automobiles			1,496		36,703
	Yamato Holdings Co. Ltd.		Air Freight & Logistics			1,820		49,988
	Yamato Kogyo Co. Ltd.		Metals & Mining			136		4,043
	Yamazaki Baking Co. Ltd.		Food Products			672		10,880
	Yaoko Co. Ltd.		Food & Staples Retailing			136		8,369
	YASKAWA Electric Corp.		Machinery			1,420		70,807
	Yokogawa Electric Corp.		Electronic Equipment, Instruments & Components			1,300		23,976
	Yokohama Rubber Co. Ltd.		Auto Components			600		10,751
	Z Holdings Corp.		Interactive Media & Services			14,100		70,258
	Zenkoku Hosho Co. Ltd.		Diversified Financial Services			272		12,505
	Zensho Holdings Co. Ltd.		Hotels, Restaurants & Leisure			500		12,810
	Zeon Corp.		Chemicals			800		12,807
	Zozo Inc.		Internet & Direct Marketing Retail			536		15,862

	Total Common Stocks (Cost $24,527,047) 98.1%							24,107,061

	Short Term Investments (Cost $13,379) 0.1%

	Short-Term Investments 0.1%
	United States 0.1%
b,c	Institutional Fiduciary Trust Portfolio, 0.01%		Money Market Funds			13,379		13,379

	Total Investments (Cost $24,540,426) 98.2%							24,120,440
	Other Assets, less Liabilities 1.8%							442,746

	Net Assets 100.0%						$	24,563,186

See Abbreviations on page 355.

^aNon-income producing.

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

^cThe rate shown is the annualized seven-day effective yield at period end.



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

FRANKLIN TEMPLETON ETF TRUST

STATEMENT OF INVESTMENTS

Franklin FTSE Japan Hedged ETF (continued)

At March 31, 2021 the Fund had the following forward exchange contracts outstanding. See Note1(c).


Forward Exchange Contracts

Currency	Counterparty^a		Type		Quantity		Contract Amount		Settlement Date		Unrealized Appreciation		Unrealized Depreciation
OTC Forward Exchange Contracts
Japanese Yen		DBAB		Buy		729,885,000	$	6,607,088		4/02/21	$	—	$	(1,794	)
Japanese Yen		HSBK		Buy		729,885,000		6,605,193		4/02/21		102		—
Japanese Yen		MSCO		Buy		298,589,000		2,702,095		4/02/21		68		—
Japanese Yen		UBSW		Buy		729,885,000		6,605,228		4/02/21		66		—
Japanese Yen		DBAB		Sell		729,885,000		6,853,309		4/02/21		248,015		—
Japanese Yen		HSBK		Sell		729,885,000		6,853,149		4/02/21		247,854		—
Japanese Yen		MSCO		Sell		298,589,000		2,803,538		4/02/21		101,375		—
Japanese Yen		UBSW		Sell		729,885,000		6,853,277		4/02/21		247,983		—
Japanese Yen		DBAB		Sell		800,874,000		7,252,113		5/07/21		1,959		—
Japanese Yen		HSBK		Sell		800,874,000		7,249,992		5/07/21		—		(162	)
Japanese Yen		HSBK		Sell		327,630,000		2,965,887		5/07/21		—		(82	)
Japanese Yen		UBSW		Sell		800,874,000		7,250,025		5/07/21		—		(129	)

Total Forward Exchange Contracts											$	847,422	$	(2,167	)

Net unrealized appreciation (depreciation)													$	845,255

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

At March 31, 2021, 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

343,294

6/10/21

389

*As of period end.

See Note 8 regarding other derivative information.



franklintempleton.com	The accompanying notes are an integral part of these financial statements. \| Annual Report	273

FRANKLIN TEMPLETON ETF TRUST

Financial Highlights

Franklin FTSE Latin America ETF


	Year ended March 31,

	2021			2020			2019^a

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

Net asset value, beginning of year	$	15.20		$	26.41		$	26.17


Income from investment operations^b:

Net investment income^c		0.57			0.77			0.38

Net realized and unrealized gains (losses)		7.13			(11.08	)		(0.02	)


Total from investment operations		7.70			(10.31	)		0.36


Less distributions from net investment income		(0.50	)		(0.90	)		(0.12	)


Net asset value, end of year	$	22.40		$	15.20		$	26.41


Total return^d		50.80%			(40.49)%			1.42%

Ratios to average net assets^e

Total expenses		0.19%			0.21%			0.19%

Net investment income		2.86%			2.97%			3.08%

Supplemental data

Net assets, end of year (000’s)		$4,480			$1,520			$2,641

Portfolio turnover rate^f		10.21%^g			12.74%^g			4.08%

^aFor the period October 9, 2018 (commencement of operations) to March 31, 2019.

^cBased on average daily shares outstanding.

^eRatios are annualized for periods less than one year.

^fPortfolio turnover rate includes portfolio transactions that are executed as a result of the Fund offering and redeeming Creation Units solely for cash (“Cash creations”).

^gPortfolio turnover rate excluding cash creation was as follows:

10.21%

12.74%



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

FRANKLIN TEMPLETON ETF TRUST

Statement of Investments, March 31, 2021

Franklin FTSE Latin America ETF



		Industry		Shares		Value
	Common Stocks 81.8%
	Brazil 46.7%
a	Aliansce Sonae Shopping Centers SA		Real Estate Management & Development		1,000	$	4,877
	Ambev SA		Beverages		32,200		87,248
	Atacadao Distribuicao Comercio e Industria Ltd.		Food & Staples Retailing		2,900		11,933
a	Azul SA		Airlines		2,000		13,415
a	B2W Cia Digital		Internet & Direct Marketing Retail		1,583		17,042
	B3 SA – Brasil Bolsa Balcao		Capital Markets		15,100		146,157
	Banco Bradesco SA		Banks		9,290		38,704
	Banco BTG Pactual SA		Capital Markets		1,700		29,237
	Banco do Brasil SA		Banks		6,300		33,995
	Banco Inter SA		Banks		800		7,433
	Banco Santander Brasil SA		Banks		2,700		18,947
	BB Seguridade Participacoes SA		Insurance		5,000		21,487
a	BR Malls Participacoes SA		Real Estate Management & Development		6,200		11,119
a	BRF SA		Food Products		4,700		21,005
	CCR SA		Transportation Infrastructure		8,200		18,774
	Centrais Eletricas Brasileiras SA		Electric Utilities		3,000		18,219
	Cia Brasileira de Distribuicao		Food & Staples Retailing		1,200		7,056
	Cia de Saneamento do Parana		Water Utilities		1,850		7,212
	Cia Siderurgica Nacional SA		Metals & Mining		4,700		31,566
	Cielo SA		IT Services		8,200		5,406
a	Cogna Educacao		Diversified Consumer Services		13,800		9,733
	Companhia de Locacao das Americas		Road & Rail		2,500		10,978
	Companhia de Saneamento Basico do Estado de Sao Paulo		Water Utilities		2,500		18,253
	Companhia Energetica de Minas Gerais		Electric Utilities		1,428		3,996
	Companhia Paranaense de Energia-Copel		Electric Utilities		1,600		1,985
	Cosan SA		Oil, Gas & Consumable Fuels		2,354		38,130
	CPFL Energia SA		Electric Utilities		1,400		7,547
	Cyrela Brazil Realty SA Empreendimentos e Participacoes		Household Durables		2,100		9,173
	Duratex SA		Paper & Forest Products		2,200		7,286
	EDP – Energias do Brasil SA		Electric Utilities		2,200		7,715
	Energisa SA		Electric Utilities		1,800		14,424
a	Eneva SA		Independent Power and Renewable Electricity Producers		5,000		14,797
	Engie Brasil Energia SA		Independent Power and Renewable Electricity Producers		1,300		9,636
	Equatorial Energia SA		Electric Utilities		6,600		29,006
	Ez Tec Empreendimentos e Participacoes SA		Household Durables		700		3,976
	Fleury SA		Health Care Providers & Services		1,800		8,166
	Grendene SA		Textiles, Apparel & Luxury Goods		2,000		2,800
	Guararapes Confeccoes SA		Textiles, Apparel & Luxury Goods		600		1,458
b,c	Hapvida Participacoes e Investimentos SA, 144A, Reg S		Health Care Providers & Services		7,800		20,568
	Hypera SA		Pharmaceuticals		3,000		17,028
	IRB Brasil Resseguros SA		Insurance		8,274		8,988
	Itau Unibanco Holding SA		Banks		3,400		15,129
a	Klabin SA		Containers & Packaging		2,300		11,262
	Localiza Rent a Car SA		Road & Rail		4,105		43,451
b	Locaweb Servicos de Internet SA, 144A		IT Services		2,900		11,743
	Lojas Americanas SA		Multiline Retail		2,118		7,807
	Lojas Renner SA		Multiline Retail		5,860		44,228
	M Dias Branco SA		Food Products		600		3,264
	Magazine Luiza SA		Multiline Retail		19,524		70,028
a	Marfrig Global Foods SA		Food Products		2,800		8,738
	Multiplan Empreendimentos Imobiliarios SA		Real Estate Management & Development		2,000		8,680
a	Natura & Co. Holding SA		Personal Products		6,200		52,892
	Neoenergia SA		Electric Utilities		1,800		5,311



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FRANKLIN TEMPLETON ETF TRUST

STATEMENT OF INVESTMENTS

Franklin FTSE Latin America ETF (continued)



		Industry		Shares		Value
	Common Stocks (continued)
	Brazil (continued)
	Notre Dame Intermedica Participacoes SA		Health Care Providers & Services		3,800	$	55,758
	Odontoprev SA		Health Care Providers & Services		2,000		4,661
	Petrobras Distribuidora SA		Specialty Retail		5,400		21,129
	Petroleo Brasileiro SA		Oil, Gas & Consumable Fuels		27,300		115,818
	Porto Seguro SA		Insurance		700		5,828
	Qualicorp Consultoria e Corretora de Seguros SA		Health Care Providers & Services		1,800		9,681
	Raia Drogasil SA		Food & Staples Retailing		8,500		37,748
	Rede D’Or Sao Luiz SA		Health Care Providers & Services		1,100		12,653
a	Rumo SA		Road & Rail		9,200		33,014
	Sao Martinho SA		Food Products		1,200		6,307
a	Sendas Distribuidora SA		Food & Staples Retailing		1,200		15,702
	Sul America SA		Insurance		2,200		13,322
a	Suzano SA		Paper & Forest Products		5,400		65,598
	Telefonica Brasil SA		Diversified Telecommunication Services		3,300		25,865
	TIM SA		Wireless Telecommunication Services		6,000		13,472
	Totvs SA		Software		3,600		18,456
	Transmissora Alianca de Energia Eletrica SA		Electric Utilities		1,600		11,035
	Ultrapar Participacoes SA		Oil, Gas & Consumable Fuels		5,928		22,281
	Usinas Siderurgicas de Minas Gerais SA Usiminas		Metals & Mining		1,200		3,804
	Vale SA		Metals & Mining		24,280		421,533
^a	Via Varejo SA		Specialty Retail		8,600		18,395
	WEG SA		Electrical Equipment		5,500		72,671
	YDUQS Participacoes SA		Diversified Consumer Services		2,200		10,413

							2,094,152

	Chile 7.5%
	AES Gener SA		Independent Power and Renewable Electricity Producers		25,420		4,319
	Aguas Andinas SA, A		Water Utilities		20,312		6,302
	Banco de Chile		Banks		321,626		38,023
	Banco de Credito e Inversiones SA		Banks		348		18,457
	Banco Santander Chile		Banks		455,724		28,546
	CAP SA		Metals & Mining		548		8,900
	Cencosud SA		Food & Staples Retailing		9,906		21,236
	Cencosud Shopping SA		Real Estate Management & Development		3,558		7,430
a	Cia Sud Americana de Vapores SA		Marine		125,072		6,755
	Colbun SA		Independent Power and Renewable Electricity Producers		53,524		10,446
	Compania Cervecerias Unidas SA		Beverages		1,092		9,604
	E CL SA		Electric Utilities		3,680		4,200
	Empresa Nacional de Telecomunicaciones SA		Wireless Telecommunication Services		998		6,286
	Empresas CMPC SA		Paper & Forest Products		8,822		28,404
	Empresas COPEC SA		Oil, Gas & Consumable Fuels		3,590		44,465
	Enel Americas SA		Electric Utilities		197,306		32,985
a	Enel Chile SA		Electric Utilities		194,848		15,210
	Falabella SA		Multiline Retail		5,858		26,681
a	Itau CorpBanca Chile SA		Banks		1,252,536		4,812
	Parque Arauco SA		Real Estate Management & Development		4,446		8,695
	Plaza SA		Real Estate Management & Development		2,196		4,571

							336,327

	Colombia 2.0%
	Bancolombia SA		Banks		2,022		15,818
	Cementos Argos SA		Construction Materials		3,580		5,017
a	Corporacion Financiera Colombiana		Diversified Financial Services		866		7,713
	Ecopetrol SA		Oil, Gas & Consumable Fuels		34,864		22,446
	Grupo Argos SA		Construction Materials		2,218		7,110
	Grupo de Inversiones Suramericana SA		Diversified Financial Services		1,842		10,876
	Interconexion Electrica SA ESP		Electric Utilities		3,258		19,947


							88,927



276	Annual Report	franklintempleton.com

FRANKLIN TEMPLETON ETF TRUST

STATEMENT OF INVESTMENTS

Franklin FTSE Latin America ETF (continued)



		Industry			Shares		Value
	Common Stocks (continued)
	Mexico 24.7%
	Alfa SAB de CV		Industrial Conglomerates			14,606	$	8,424
a	Alpek SAB de CV		Chemicals			2,752		2,565
	America Movil SAB de CV, L		Wireless Telecommunication Services			224,958		153,487
	Arca Continental SAB de CV		Beverages			3,262		16,078
a	Banco Santander (Mexico), S.A., Institucion de Banca Multiple, Grupo Financiero Santander, B		Banks			4,232		4,658
	Becle SAB de CV		Beverages			4,054		9,265
a	Cemex SAB de CV		Construction Materials			111,806		78,798
	Coca-Cola FEMSA SA de CV		Beverages			3,886		17,931
	Concentradora Fibra Danhos SA de CV		Equity Real Estate Investment Trusts (REITs	)		1,694		2,111
a	Controladora Nemak SAB de CV		Auto Components			22,266		2,797
	El Puerto de Liverpool SAB de CV		Multiline Retail			1,478		5,174
	Fibra Uno Administracion SA de CV		Equity Real Estate Investment Trusts (REITs	)		21,698		25,335
	Fomento Economico Mexicano SAB de CV		Beverages			13,460		101,369
	Gruma SAB de CV		Food Products			1,560		18,405
a	Grupo Aeroportuario del Centro Norte SAB de CV		Transportation Infrastructure			2,464		15,477
a	Grupo Aeroportuario del Pacifico SAB de CV		Transportation Infrastructure			2,800		29,239
a	Grupo Aeroportuario del Sureste SAB de CV, B		Transportation Infrastructure			1,470		26,082
	Grupo Bimbo SAB de CV, A		Food Products			16,550		34,701
a	Grupo Carso SAB de CV		Industrial Conglomerates			3,364		9,187
	Grupo Cementos de Chihuahua SAB de CV		Construction Materials			1,202		8,334
	Grupo Elektra SAB de CV		Banks			468		31,434
a	Grupo Financiero Banorte SAB de CV		Banks			21,294		119,820
a	Grupo Financiero Inbursa SAB de CV		Banks			15,784		14,326
	Grupo Lala SAB de CV		Food Products			4,340		2,895
	Grupo Mexico SAB de CV, B		Metals & Mining			23,296		122,352
a	Grupo Televisa SA		Media			15,876		28,229
	Industrias Bachoco SAB de CV, B		Food Products			1,186		3,944
a	Industrias Penoles SA		Metals & Mining			910		11,725
a	Infraestructura Energetica Nova SAB de CV		Gas Utilities			3,786		14,596
	Kimberly-Clark de Mexico SAB de CV, A		Household Products			6,164		10,523
	Megacable Holdings SAB de CV		Media			2,216		7,932
	Orbia Advance Corp. SAB de CV		Chemicals			7,466		19,913
	Promotora y Operadora de Infraestructura SAB de CV		Transportation Infrastructure			1,616		12,350
	Qualitas Controladora SAB de CV		Insurance			1,262		6,934
a	Telesites SAB de CV		Diversified Telecommunication Services			9,194		9,549
	Wal-Mart de Mexico SAB de CV, V		Food & Staples Retailing			38,014		119,780


								1,105,719

	United States 0.9%
	JBS SA		Food Products			7,100		38,098

	Total Common Stocks (Cost $3,751,207)							3,663,223

	Preferred Stocks 18.2%
	Brazil 16.2%
d	Alpargatas SA, 0.149%, pfd.		Textiles, Apparel & Luxury Goods			1,250		8,161
d	Banco Bradesco SA, 2.477%, pfd.		Banks			31,442		149,159
d	Banco Inter SA, 0.134%, pfd.		Banks			2,000		18,465
d	Bradespar SA, 2.932%, pfd.		Metals & Mining			1,600		19,368
a	Braskem SA, pfd., A		Chemicals			1,400		9,847
d	Centrais Eletricas Brasileiras SA, 9.671%, pfd.		Electric Utilities			2,000		12,337
d	Cia de Transmissao de Energia Eletrica Paulista, 13.193%, pfd.		Electric Utilities			1,400		6,284
d	Cia Energetica de Sao Paulo, 8.082%, pfd.		Independent Power and Renewable Electricity Producers			1,400		6,986



franklintempleton.com	Annual Report	277

FRANKLIN TEMPLETON ETF TRUST

STATEMENT OF INVESTMENTS

Franklin FTSE Latin America ETF (continued)

Industry

Shares

Value

Preferred Stocks (continued)

Brazil (continued)

Companhia Energetica de Minas Gerais, 4.635%, pfd.

Electric Utilities

7,435

17,168

Companhia Paranaense de Energia, 43.478%, pfd.

Electric Utilities

7,400

9,350

Gerdau SA, 1.489%, pfd.

Metals & Mining

7,900

42,307

Itau Unibanco Holding SA, 1.949%, pfd.

Banks

35,500

175,959

Itausa SA, 2.490%, pfd.

Banks

33,200

60,717

Lojas Americanas SA, 0.957%, pfd.

Multiline Retail

5,855

23,200

Metalurgica Gerdau SA, 1.939%, pfd.

Metals & Mining

5,300

12,595

Petroleo Brasileiro SA, 0.004%, pfd.

Oil, Gas & Consumable Fuels

33,800

144,352

Usinas Siderurgicas de Minas Gerais SA Usiminas, 0.251%, pfd.

Metals & Mining

3,000

9,091

725,346

Chile 1.1%

Embotelladora Andina SA, 5.990%, pfd., B

Beverages

1,388

3,690

Sociedad Quimica y Minera de Chile SA, 1.135%, pfd., B

Chemicals

882

47,280

50,970

Colombia 0.9%

Bancolombia SA, 3.225%, pfd.

Banks

3,312

26,298

Grupo Aval Acciones y Valores SA, 5.245%, pfd.

Banks

30,000

9,339

Grupo de Inversiones Suramericana SA, 3.347%, pfd.

Diversified Financial Services

582

2,999

38,636

Total Preferred Stocks (Cost $940,603)

814,952

Rights 0.0%^†

Chile 0.0%^†

Sociedad Quimica y Minera de Chile SA, rts., 4/24/21

Chemicals

164

657

Total Investments
(Cost $4,691,810) 100.0%

4,478,832

Other Assets, less Liabilities 0.0%^†

868

Net Assets 100.0%

4,479,700

See Abbreviations on page 355.

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

^aNon-income producing.

^cSecurity was purchased pursuant to Regulation S under the Securities Act of 1933, which exempts from registration securities offered and sold outside of the United States. Such a security cannot be sold in the United States without either an effective registration statement filed pursuant to the Securities Act of 1933, or pursuant to an exemption from registration. At March 31, 2021, the value of this security was $20,568, representing 0.5% of net assets.

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



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

FRANKLIN TEMPLETON ETF TRUST

Financial Highlights

Franklin FTSE Mexico ETF


	Year Ended March 31,

	2021			2020			2019			2018^a

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

Net asset value, beginning of year	$	14.35		$	22.11		$	24.98		$	24.90


Income from investment operations^b:

Net investment income^c		0.33			0.64			0.51			0.12

Net realized and unrealized gains (losses)		7.78			(7.73	)		(2.86	)		0.04


Total from investment operations		8.11			(7.09	)		(2.35	)		0.16


Less distributions from net investment income		(0.32	)		(0.67	)		(0.52	)		(0.08	)


Net asset value, end of year	$	22.14		$	14.35		$	22.11		$	24.98


Total return^d		56.94%			(33.13)%			(9.28)%			0.63%

Ratios to average net assets^e

Total expenses		0.19%			0.19%			0.19%			0.19%

Net investment income		1.80%			2.93%			2.21%			1.18%

Supplemental data

Net assets, end of year (000’s)		$5,536			$2,871			$4,422			$2,498

Portfolio turnover rate^f		18.32%^g			19.32%^g			10.31%			9.64%

^aFor the period November 3, 2017 (commencement of operations) to March 31, 2018.

^cBased on average daily shares outstanding.

^eRatios are annualized for periods less than one year.

^fPortfolio turnover rate includes portfolio transactions that are executed as a result of the Fund offering and redeeming Creation Units solely for cash (“Cash creations”).

^gPortfolio turnover rate excluding cash creations was as follows:

18.32%

19.32%



franklintempleton.com	The accompanying notes are an integral part of these financial statements. \| Annual Report	279

FRANKLIN TEMPLETON ETF TRUST

Statement of Investments, March 31, 2021

Franklin FTSE Mexico ETF



		Industry			Shares		Value
	Common Stocks 99.9%
	Mexico 99.9%
	Alfa SAB de CV		Industrial Conglomerates			101,570	$	58,577
a	Alpek SAB de CV		Chemicals			19,120		17,821
	America Movil SAB de CV, L		Wireless Telecommunication Services			947,010		646,136
	Arca Continental SAB de CV		Beverages			22,610		111,445
a	Banco Santander (Mexico), S.A., Institucion de Banca Multiple, Grupo Financiero Santander, B		Banks			29,085		32,013
	Becle SAB de CV		Beverages			28,070		64,151
a	Cemex SAB de CV		Construction Materials			340,925		240,275
	Coca-Cola FEMSA SA de CV		Beverages			26,920		124,216
	Concentradora Fibra Danhos SA de CV		Equity Real Estate Investment Trusts (REITs	)		11,715		14,600
a	Controladora Nemak SAB de CV		Auto Components			152,005		19,093
	El Puerto de Liverpool SAB de CV		Multiline Retail			10,125		35,446
	Fibra Uno Administracion SA de CV		Equity Real Estate Investment Trusts (REITs	)		139,660		163,069
	Fomento Economico Mexicano SAB de CV		Beverages			59,375		447,159
	Gruma SAB de CV		Food Products			10,785		127,240
a	Grupo Aeroportuario del Centro Norte SAB de CV		Transportation Infrastructure			17,175		107,882
a	Grupo Aeroportuario del Pacifico SAB de CV		Transportation Infrastructure			15,425		161,076
a	Grupo Aeroportuario del Sureste SAB de CV, B		Transportation Infrastructure			9,255		164,211
	Grupo Bimbo SAB de CV, A		Food Products			84,680		177,550
a	Grupo Carso SAB de CV		Industrial Conglomerates			23,335		63,731
	Grupo Cementos de Chihuahua SAB de CV		Construction Materials			8,360		57,963
	Grupo Elektra SAB de CV		Banks			2,552		171,411
a	Grupo Financiero Banorte SAB de CV		Banks			91,745		516,244
a	Grupo Financiero Inbursa SAB de CV		Banks			109,255		99,160
	Grupo Lala SAB de CV		Food Products			30,145		20,111
	Grupo Mexico SAB de CV, B		Metals & Mining			100,445		527,544
a	Grupo Televisa SA		Media			95,775		170,294
	Industrias Bachoco SAB de CV, B		Food Products			8,240		27,402
a	Industrias Penoles SA		Metals & Mining			6,350		81,819
a	Infraestructura Energetica Nova SAB de CV		Gas Utilities			26,240		101,161
	Kimberly-Clark de Mexico SAB de CV, A		Household Products			42,685		72,871
	Megacable Holdings SAB de CV		Media			15,360		54,982
	Orbia Advance Corp. SAB de CV		Chemicals			51,930		138,502
	Promotora y Operadora de Infraestructura SAB de CV		Transportation Infrastructure			11,195		85,553
	Qualitas Controladora SAB de CV		Insurance			8,775		48,214
a	Telesites SAB de CV		Diversified Telecommunication Services			64,185		66,662
	Wal-Mart de Mexico SAB de CV, V		Food & Staples Retailing			164,135		517,181

	Total Investments (Cost $5,117,056) 99.9%							5,532,765
	Other Assets, less Liabilities 0.1%							3,137

	Net Assets 100.0%						$	5,535,902

See Abbreviations on page 355.

^aNon-income producing.



280	Annual Report	franklintempleton.com

FRANKLIN TEMPLETON ETF TRUST

Financial Highlights

Franklin FTSE Russia ETF


	Year Ended March 31,

	2021			2020			2019			2018^a

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

Net asset value, beginning of year	$	18.91		$	23.37		$	24.24		$	23.90


Income from investment operations^b:

Net investment income (loss)^c		1.41			1.73			1.03			(0.00	)^d

Net realized and unrealized gains (losses)		8.34			(4.44	)		(1.26	)		0.34


Total from investment operations		9.75			(2.71	)		(0.23	)		0.34


Less distributions from net investment income		(1.68	)		(1.75	)		(0.64	)		—


Net asset value, end of year	$	26.98		$	18.91		$	23.37		$	24.24


Total return^e		52.27%			(13.90)%			(0.63)%			1.42%

Ratios to average net assets^f

Expenses before waiver and payments by affiliates		0.19%			0.19%			0.19%			0.19%

Expenses net of waiver and payments by affiliates		0.19%			0.19%			—%			—%

Net investment income (loss)		6.02%			6.49%			4.57%			(0.13)%

Supplemental data

Net assets, end of year (000’s)		$10,794			$13,240			$11,683			$2,424

Portfolio turnover rate^g		18.82%^h			15.74%^h			31.57%			7.58%

^aFor the period February 6, 2018 (commencement of operations) to March 31, 2018.

^cBased on average daily shares outstanding.

^dAmount rounds to less than $0.01 per share.

^fRatios are annualized for periods less than one year.

^gPortfolio turnover rate includes portfolio transactions that are executed as a result of the Fund offering and redeeming Creation Units solely for cash (“Cash creations”).

^hPortfolio turnover rate excluding cash creations was as follows:

18.82%

15.74%



franklintempleton.com	The accompanying notes are an integral part of these financial statements. \| Annual Report	281

FRANKLIN TEMPLETON ETF TRUST

Statement of Investments, March 31, 2021

Franklin FTSE Russia ETF



		Industry		Shares		Value
	Common Stocks 95.1%
	Russia 95.1%
a	Aeroflot – Russian Airlines PJSC		Airlines		92,000	$	81,939
	Alrosa PJSC		Metals & Mining		198,640		278,158
a	Credit Bank of Moscow PJSC		Banks		1,223,016		115,275
	Federal Grid Co. Unified Energy System PJSC		Electric Utilities		24,127,536		69,329
	Federal Hydrogenerating Co.		Electric Utilities		10,655,152		114,892
	Gazprom PJSC		Oil, Gas & Consumable Fuels		438,152		1,324,283
	Inter RAO UES PJSC		Electric Utilities		3,289,816		223,478
	LUKOIL PJSC		Oil, Gas & Consumable Fuels		15,128		1,225,865
	M.Video PJSC		Specialty Retail		1,936		18,663
	Magnit PJSC		Food & Staples Retailing		4,408		311,343
	Magnitogorsk Iron & Steel Works		Metals & Mining		164,272		131,211
	MMC Norilsk Nickel PJSC		Metals & Mining		1,544		486,393
	Mobile TeleSystems PJSC		Wireless Telecommunication Services		66,648		278,970
	Moscow Exchange MICEX		Capital Markets		124,272		286,001
	Mosenergo PAO		Electric Utilities		746,296		22,532
	NLMK PJSC		Metals & Mining		96,808		309,350
	NovaTek PJSC		Oil, Gas & Consumable Fuels		46,720		923,156
	PhosAgro PJSC		Chemicals		3,272		175,344
	Polyus Gold OJSC		Metals & Mining		1,648		305,175
	Rosneft PJSC		Oil, Gas & Consumable Fuels		48,376		365,709
	Rosseti PJSC		Electric Utilities		2,737,304		54,787
a	Rostelecom PJSC		Diversified Telecommunication Services		87,144		124,302
	Sberbank of Russia PJSC		Banks		421,608		1,620,471
	Severstal PAO		Metals & Mining		15,088		307,479
	Sistema PJSFC		Wireless Telecommunication Services		267,824		121,502
	Surgutneftegas PJSC		Oil, Gas & Consumable Fuels		325,580		148,954
	Tatneft PAO		Oil, Gas & Consumable Fuels		48,688		385,474
	Unipro PJSC		Independent Power and Renewable Electricity Producers		960,528		37,508
a	United Co RUSAL International PJSC		Metals & Mining		236,440		154,978
	VTB Bank PJSC		Banks		468,176,796		264,284

	Total Common Stocks (Cost $9,093,419)						10,266,805

	Preferred Stocks 5.0%
	Russia 5.0%
b	Bashneft PJSC, 8.296%, pfd		Oil, Gas & Consumable Fuels		1,784		30,698
b	Surgutneftegas PJSC, 2.310%, pfd.		Oil, Gas & Consumable Fuels		351,036		195,230
b	Tatneft PJSC, 1.966%, pfd.		Oil, Gas & Consumable Fuels		4,768		35,136
b	Transneft PJSC, 7.924%, pfd.		Oil, Gas & Consumable Fuels		140		271,681

	Total Preferred Stocks (Cost $600,898)						532,745

	Total Investments (Cost $9,694,317) 100.1%						10,799,550
	Other Assets, less Liabilities (0.1)%						(5,685	)

	Net Assets 100.0%					$	10,793,865

^aNon-income producing.

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



282	Annual Report	franklintempleton.com

FRANKLIN TEMPLETON ETF TRUST

Financial Highlights

Franklin FTSE Saudi Arabia ETF


	Year Ended March 31,

	2021			2020			2019^a

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

Net asset value, beginning of year	$	20.15		$	27.89		$	24.71


Income from investment operations^b:

Net investment income^c		0.52			0.89			0.11

Net realized and unrealized gains (losses)		10.23			(7.80	)		3.07


Total from investment operations		10.75			(6.91	)		3.18


Less distributions from net investment income		(0.57	)		(0.83	)		—


Net asset value, end of year	$	30.33		$	20.15		$	27.89


Total return^d		54.12%			(25.51)%			12.87%

Ratios to average net assets^e

Total expenses		0.39%			0.39%			0.39%

Net investment income		2.11%			3.46%			0.93%

Supplemental data

Net assets, end of year (000’s)		$ 3,033			$ 2,015			$ 2,789

Portfolio turnover rate^f		16.74%^g			32.37%^g			12.41%

^aFor the period October 9, 2018 (commencement of operations) to March 31, 2019.

^cBased on average daily shares outstanding.

^eRatios are annualized for periods less than one year.

^fPortfolio turnover rate includes portfolio transactions that are executed as a result of the Fund offering and redeeming Creation Units solely for cash (“Cash creations”).

^gPortfolio turnover rate excluding cash creations was as follows:

16.74%

32.37%



franklintempleton.com	Annual Report \| The accompanying notes are an integral part of these financial statements.	283

FRANKLIN TEMPLETON ETF TRUST

Statement of Investments, March 31, 2021

Franklin FTSE Saudi Arabia ETF



		Industry		Shares		Value
	Common Stocks 99.8%
	Saudi Arabia 99.8%
	Abdullah Al Othaim Markets Co.		Food & Staples Retailing		622	$	20,963
	Advanced Petrochemical Co.		Chemicals		1,494		29,080
	Al-Rajhi Bank		Banks		14,092		371,238
a	Alinma Bank		Banks		13,796		67,685
	Almarai Co. JSC		Food Products		3,546		49,166
	Arab National Bank		Banks		9,044		50,352
	Arabian Centres Co. Ltd.		Real Estate Management & Development		2,304		13,700
	Bank Al-Jazira		Banks		5,656		23,617
	Bank AlBilad		Banks		5,174		48,561
	Banque Saudi Fransi		Banks		8,274		73,576
a	Bupa Arabia for Cooperative Insurance Co.		Insurance		806		25,703
	Dallah Healthcare Co.		Health Care Providers & Services		484		6,801
a	Dar Al Arkan Real Estate Development Co.		Real Estate Management & Development		7,450		18,275
	Dr Sulaiman Al Habib Medical Services Group Co.		Health Care Providers & Services		1,166		38,552
a	Emaar Economic City		Real Estate Management & Development		5,864		16,730
a	Etihad Etisalat Co.		Wireless Telecommunication Services		5,312		41,854
a	Fawaz Abdulaziz Al Hokair & Co.		Specialty Retail		904		5,428
	Jarir Marketing Co.		Specialty Retail		828		40,181
a	Mobile Telecommunications Co.		Wireless Telecommunication Services		6,176		24,701
	Mouwasat Medical Services Co.		Health Care Providers & Services		670		28,048
	National Commercial Bank		Banks		15,002		212,406
a	National Industrialization Co.		Chemicals		4,614		18,651
	National Petrochemical Co.		Chemicals		1,690		19,512
a	Rabigh Refining and Petrochemical Co.		Oil, Gas & Consumable Fuels		3,084		13,897
	Riyad Bank		Banks		20,110		120,325
	Sahara International Petrochemical Co.		Chemicals		5,058		29,805
a	Samba Financial Group		Banks		13,230		135,814
a	Saudi Airlines Catering Co.		Hotels, Restaurants & Leisure		564		11,429
	Saudi Arabian Fertilizer Co.		Chemicals		2,474		64,911
a	Saudi Arabian Mining Co.		Metals & Mining		5,686		86,418
b,c	Saudi Aramco, 144A, Reg S		Oil, Gas & Consumable Fuels		29,768		285,742
	Saudi Basic Industries Corp.		Chemicals		10,468		327,683
	Saudi British Bank		Banks		12,524		87,993
	Saudi Cement Co.		Construction Materials		1,052		18,625
	Saudi Electricity Co.		Electric Utilities		11,016		69,026
a	Saudi Ground Services Co.		Transportation Infrastructure		1,258		10,868
	Saudi Industrial Investment Group		Chemicals		3,104		26,899
a	Saudi Kayan Petrochemical Co.		Chemicals		10,348		43,981
a	Saudi Research and Marketing Group		Media		454		9,430
	Saudi Telecom Co.		Diversified Telecommunication Services		7,154		241,875
	Saudia Dairy & Foodstuff Co.		Food Products		216		9,538
	Savola Al-Azizia United Co.		Food Products		3,684		38,604
a	Seera Group Holding		Hotels, Restaurants & Leisure		2,076		10,451
	Southern Province Cement Co.		Construction Materials		966		22,666
a	The Company for Cooperative Insurance		Insurance		858		17,959
	The Qassim Cement		Construction Materials		622		14,114
	Yamama Cement Co.		Construction Materials		1,398		12,357
	Yanbu Cement		Construction Materials		1,088		12,518
	Yanbu National Petrochemical Co.		Chemicals		3,276		60,447

	Total Investments (Cost $2,435,364) 99.8%						3,028,155
	Other Assets, less Liabilities 0.2%						4,884

	Net Assets 100.0%					$	3,033,039

See Abbreviation on page 355.

^aNon-income producing.

^bSecurity was purchased pursuant to Rule 144A under the Securities Act of 1933 and may be sold in transactions exempt from registration only to qualified institutional buyers or in a public offering registered under the Securities Act of 1933. At March 31, 2021, the value of this security was $285,742, representing 9.4% of net assets.

^cSecurity was purchased pursuant to Regulation S under the Securities Act of 1933, which exempts from registration securities offered and sold outside of the United States. Such a security cannot be sold in the United States without either an effective registration statement filed pursuant to the Securities Act of 1933, or pursuant to an exemption from registration. At March 31, 2021, the value of this security was $285,742, representing 9.4% of net assets.



284	Annual Report	franklintempleton.com

FRANKLIN TEMPLETON ETF TRUST

Financial Highlights

Franklin FTSE South Africa ETF


	Year Ended March 31,

	2021			2020			2019^a

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

Net asset value, beginning of year	$	14.81		$	26.62		$	24.42


Income from investment operations^b:

Net investment income^c		1.03			2.65			0.22

Net realized and unrealized gains (losses)		11.33			(11.76	)		2.04


Total from investment operations		12.36			(9.11	)		2.26


Less distributions from net investment income		(0.95	)		(2.70	)		(0.06	)


Net asset value, end of year	$	26.22		$	14.81		$	26.62


Total return^d		85.24%			(38.46)%			9.26%

Ratios to average net assets^e

Total expenses		0.19%			0.19%			0.19%

Net investment income		4.94%			10.42%			1.75%

Supplemental data

Net assets, end of year (000’s)		$2,622			$1,481			$2,662

Portfolio turnover rate^f		11.08%^g			21.44%^g			7.12%

^aFor the period October 10, 2018 (commencement of operations) to March 31, 2019.

^cBased on average daily shares outstanding.

^eRatios are annualized for periods less than one year.

^fPortfolio turnover rate includes portfolio transactions that are executed as a result of the Fund offering and redeeming Creation Units solely for cash (“Cash creations”).

^gPortfolio turnover rate excluding cash creations was as follows:

11.08%

21.44%



franklintempleton.com	Annual Report \| The accompanying notes are an integral part of these financial statements.	285

FRANKLIN TEMPLETON ETF TRUST

Statement of Investments, March 31, 2021

Franklin FTSE South Africa ETF



		Industry			Shares			Value
	Common Stocks 99.9%
	Luxembourg 1.0%
	Reinet Investments SCA		Capital Markets			1,328		$	26,244

	Romania 0.9%
	NEPI Rockcastle PLC		Real Estate Management & Development			3,740			23,611

	South Africa 98.0%
	Absa Group Ltd.		Banks			6,494			55,453
	African Rainbow Minerals Ltd.		Metals & Mining			956			18,006
	Anglo American Platinum Ltd.		Metals & Mining			546			79,578
	AngloGold Ashanti Ltd.		Metals & Mining			3,764			82,039
a	Aspen Pharmacare Holdings Ltd.		Pharmaceuticals			3,450			33,728
	AVI Ltd.		Food Products			2,982			15,065
a	Barloworld Ltd.		Trading Companies & Distributors			1,772			10,833
a	Bid Corp. Ltd.		Food & Staples Retailing			3,004			58,185
	Bidvest Group Ltd.		Industrial Conglomerates			3,058			35,287
a	Capitec Bank Holdings Ltd.		Banks			788			75,770
	Clicks Group Ltd.		Food & Staples Retailing			2,244			36,533
	Coronation Fund Managers Ltd.		Capital Markets			2,322			8,617
a,b	Dis-Chem Pharmacies Ltd., Reg S		Food & Staples Retailing			3,118			4,848
	Discovery Ltd.		Insurance			3,690			33,131
a	Distell Group Holdings Ltd		Beverages			722			5,706
	Exxaro Resources Ltd.		Oil, Gas & Consumable Fuels			2,268			26,704
	FirstRand Ltd.		Diversified Financial Services			44,358			155,067
	Fortress REIT Ltd.		Equity Real Estate Investment Trusts (REITs	)		7,972			1,566
	Fortress REIT Ltd., A		Equity Real Estate Investment Trusts (REITs	)		10,664			9,829
	Gold Fields Ltd.		Metals & Mining			7,830			72,917
	Growthpoint Properties Ltd.		Equity Real Estate Investment Trusts (REITs	)		30,206			27,002
a	Harmony Gold Mining Co. Ltd.		Metals & Mining			4,710			19,968
	Impala Platinum Holdings Ltd.		Metals & Mining			7,030			130,319
	Investec Ltd.		Capital Markets			2,590			7,590
	Kumba Iron Ore Ltd.		Metals & Mining			490			20,192
	Liberty Holdings Ltd.		Insurance			1,088			4,344
a	Life Healthcare Group Holdings Ltd.		Health Care Providers & Services			12,412			15,550
	Momentum Metropolitan Holdings		Insurance			8,854			10,439
	Mr. Price Group Ltd.		Specialty Retail			2,320			30,419
	MTN Group Ltd.		Wireless Telecommunication Services			16,264			95,659
	MultiChoice Group Ltd.		Media			4,002			34,949
	Naspers Ltd., N		Internet & Direct Marketing Retail			2,282			545,796
	Nedbank Group Ltd.		Banks			3,154			29,903
a	Netcare Ltd.		Health Care Providers & Services			12,988			12,534
	Ninety One Ltd.		Capital Markets			1,326			4,310
^a	Northam Platinum Ltd.		Metals & Mining			3,112			54,243
	Old Mutual Ltd.		Insurance			41,240	��		35,274
a,b,c	Pepkor Holdings Ltd., 144A, Reg S		Specialty Retail			10,668			11,689
	Pick ‘N Pay Stores Ltd.		Food & Staples Retailing			3,102			11,291
	PSG Group Ltd.		Industrial Conglomerates			1,421			6,800
	Rand Merchant Investment Holdings Ltd.		Insurance			6,762			14,027
a	Redefine Properties Ltd.		Equity Real Estate Investment Trusts (REITs	)		48,998			12,443
	Remgro Ltd.		Diversified Financial Services			4,556			32,088
	Resilient REIT Ltd.		Equity Real Estate Investment Trusts (REITs	)		2,846			8,768
	Sanlam Ltd.		Insurance			15,088			60,827
a	Santam Ltd.		Insurance			374			6,176
a	Sappi Ltd.		Paper & Forest Products			4,926			15,336
a	Sasol Ltd.		Chemicals			5,014			71,884
	Shoprite Holdings Ltd.		Food & Staples Retailing			4,438			47,222
	Sibanye Stillwater Ltd.		Metals & Mining			26,176			115,225



286	Annual Report	franklintempleton.com

FRANKLIN TEMPLETON ETF TRUST

STATEMENT OF INVESTMENTS

Franklin FTSE South Africa ETF Fund (continued)



		Industry		Shares		Value
	Common Stocks (continued)
	South Africa (continued)
	Standard Bank Group Ltd.		Banks		11,564	$	98,229
	Telkom SA SOC Ltd.		Diversified Telecommunication Services		2,614		7,499
a	The Foschini Group Ltd.		Specialty Retail		2,918		24,265
	The Spar Group Ltd.		Food & Staples Retailing		1,744		22,427
	Tiger Brands Ltd.		Food Products		1,496		21,352
	Truworths International Ltd.		Specialty Retail		3,828		12,402
	Vodacom Group Ltd.		Wireless Telecommunication Services		5,386		46,053
^a	Woolworths Holdings Ltd.		Multiline Retail		7,858		26,315

							2,569,671

	Total Investments (Cost $2,229,984) 99.9%						2,619,526
	Other Assets, less Liabilities 0.1%						2,717

	Net Assets 100.0%					$	2,622,243

See Abbreviations on page 355.

^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. At March 31, 2021, the value of this security was $11,689, representing 0.4% of net assets.



franklintempleton.com	The accompanying notes are an integral part of these financial statements. \| Annual Report	287

FRANKLIN TEMPLETON ETF TRUST

Financial Highlights

Franklin FTSE South Korea ETF



	Year Ended March 31,

	2021			2020			2019			2018^a

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

Net asset value, beginning of year	$	16.52		$	21.19		$	25.98		$	25.75


Income from investment operations^b:

Net investment income^c		0.54			0.36			0.40			0.10

Net realized and unrealized gains (losses)		14.72			(4.58	)		(4.81	)		0.40


Total from investment operations		15.26			(4.22	)		(4.41	)		0.50


Less distributions from net investment income		(0.30	)		(0.45	)		(0.38	)		(0.27	)


Net asset value, end of year	$	31.48		$	16.52		$	21.19		$	25.98


Total return^d		92.55%			(20.24)%			(16.92)%			1.95%

Ratios to average net assets^e

Expenses before waiver and payments by affiliates		0.09%			0.09%			0.09%			0.09%

Expenses net of waiver and payments by affiliates		0.09%			0.09%			0.09%			—%

Net investment income		2.07%			1.78%			1.74%			0.94%

Supplemental data

Net assets, end of year (000’s)		$62,966			$11,562			$16,948			$25,981

Portfolio turnover rate^f		8.65%	^g		21.72%	^g		5.21%			3.85%

^aFor the period November 2, 2017 (commencement of operations) to March 31, 2018.

^cBased on average daily shares outstanding.

^eRatios are annualized for periods less than one year.

^fPortfolio turnover rate includes portfolio transactions that are executed as a result of the Fund offering and redeeming Creation Units solely for cash (“Cash creations”).

^gPortfolio turnover rate excluding cash creations was as follows:

8.65%

8.02%



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

FRANKLIN TEMPLETON ETF TRUST

Statement of Investments, March 31, 2021

Franklin FTSE South Korea ETF



		Industry		Shares		Value
	Common Stocks 95.1%
	South Korea 95.1%
a	Alteogen Inc.		Biotechnology		1,980	$	156,755
	Amorepacific Corp.		Personal Products		2,240		511,632
	AmorePacific Group		Personal Products		2,040		116,983
	BGF Retail Co. Ltd.		Food & Staples Retailing		440		61,427
	BNK Financial Group Inc.		Banks		20,510		123,051
a	Celltrion Healthcare Co. Ltd.		Health Care Providers & Services		5,162		620,307
a	Celltrion Inc.		Biotechnology		7,539		2,161,613
a	Celltrion Pharm Inc.		Pharmaceuticals		1,324		175,480
	Cheil Worldwide Inc.		Media		4,820		90,501
	CJ CheilJedang Corp.		Food Products		560		203,366
	CJ Corp.		Industrial Conglomerates		940		78,074
	CJ ENM Co. Ltd.		Internet & Direct Marketing Retail		700		88,014
a	CJ Logistics Corp.		Road & Rail		540		87,316
a	Coway Co. Ltd.		Household Durables		4,020		232,657
	Daelim Industrial Co. Ltd.		Construction & Engineering		880		68,036
a	Daewoo Engineering & Construction Co. Ltd.		Construction & Engineering		12,800		74,759
a	Daewoo Shipbuilding & Marine Engineering Co. Ltd.		Machinery		3,480		87,019
	DB Insurance Co. Ltd.		Insurance		3,120		130,396
	DGB Financial Group Inc.		Banks		10,680		79,646
a	DL E&C Co. Ltd.		Construction & Engineering		1,080		114,990
	Dongsuh Cos. Inc.		Food & Staples Retailing		2,240		63,237
a	Doosan Bobcat Inc.		Machinery		1,740		64,726
a	Doosan Heavy Industries and Construction Co. Ltd.		Electrical Equipment		14,520		166,786
a	Doosan Infracore Co. Ltd.		Machinery		9,840		98,683
	Doosan Solus Co. Ltd.		Electronic Equipment, Instruments & Components		820		34,162
	E-MART Inc.		Food & Staples Retailing		1,400		211,531
	Fila Holdings Corp.		Textiles, Apparel & Luxury Goods		3,660		139,544
	Green Cross Corp.		Biotechnology		380		121,043
	GS Engineering & Construction Corp.		Construction & Engineering		4,160		158,056
	GS Holdings Corp.		Oil, Gas & Consumable Fuels		3,600		124,374
	GS Retail Co. Ltd.		Food & Staples Retailing		1,940		65,395
	Hana Financial Group Inc.		Banks		20,580		778,285
a	Hanjin Kal Corp.		Airlines		2,120		107,522
	Hankook Tire & Technology Co. Ltd.		Auto Components		5,260		227,968
	Hanmi Pharm Co. Ltd.		Pharmaceuticals		526		147,099
	Hanmi Science Co. Ltd.		Pharmaceuticals		1,020		52,273
	Hanon Systems		Auto Components		11,400		177,787
	Hanssem Co. Ltd.		Household Durables		700		72,057
	Hanwha Aerospace Co. Ltd.		Aerospace & Defense		2,500		90,347
	Hanwha Corp.		Industrial Conglomerates		3,060		86,115
	Hanwha Corp.		Industrial Conglomerates		1,460		18,512
	Hanwha Life Insurance Co. Ltd.		Insurance		19,860		56,329
a	Hanwha Solutions Corp.		Chemicals		6,751		298,851
	HDC Hyundai Development Co-Engineering & Construction		Construction & Engineering		3,360		87,136
a	Helixmith Co. Ltd.		Biotechnology		2,163		49,309
	Hite Jinro Co. Ltd.		Beverages		2,220		72,284
a	HLB Inc.		Leisure Products		6,260		216,825
a	HMM Co. Ltd.		Marine		20,120		515,556
	Hotel Shilla Co. Ltd.		Specialty Retail		2,180		167,389
	Hyundai Department Store Co. Ltd.		Multiline Retail		1,060		84,950
	Hyundai Engineering & Construction Co. Ltd.		Construction & Engineering		5,180		201,616
	Hyundai Glovis Co. Ltd.		Air Freight & Logistics		1,300		215,374
	Hyundai Heavy Industries Holdings Co. Ltd.		Machinery		720		185,447
	Hyundai Marine & Fire Insurance Co. Ltd.		Insurance		4,220		91,354
a	Hyundai Mipo Dockyard Co. Ltd.		Machinery		1,480		87,486
	Hyundai Mobis Co. Ltd.		Auto Components		4,600		1,186,835



franklintempleton.com	Annual Report	289

FRANKLIN TEMPLETON ETF TRUST

STATEMENT OF INVESTMENTS

Franklin FTSE South Korea ETF (continued)



		Industry		Shares		Value
	Common Stocks (continued)
	South Korea (continued)
	Hyundai Motor Co.		Automobiles		10,000	$	1,926,220
	Hyundai Steel Co.		Metals & Mining		5,340		226,717
	Hyundai Wia Corp.		Auto Components		1,100		74,937
a	Industrial Bank of Korea		Banks		18,040		146,010
	Kakao Corp.		Interactive Media & Services		3,866		1,701,143
a	Kangwon Land Inc.		Hotels, Restaurants & Leisure		7,600		169,896
	KB Financial Group Inc.		Banks		27,720		1,376,509
	KCC Corp.		Chemicals		340		71,350
	KEPCO Plant Service and Engineering Co. Ltd.		Commercial Services & Supplies		1,520		42,306
	Kia Motors Corp.		Automobiles		18,380		1,346,324
	Korea Aerospace Industries Ltd.		Aerospace & Defense		4,580		148,721
	Korea Electric Power Corp.		Electric Utilities		18,220		372,691
a	Korea Gas Corp.		Gas Utilities		1,880		55,981
	Korea Investment Holdings Co. Ltd.		Capital Markets		2,720		205,727
a	Korea Shipbuilding & Offshore Engineering Co Ltd.		Machinery		3,080		363,313
	Korea Zinc Co. Ltd.		Metals & Mining		700		252,662
a	Korean Air Lines Co. Ltd.		Airlines		12,482		299,987
a	KT&G Corp.		Tobacco		7,760		558,130
a	Kumho Petrochemical Co. Ltd.		Chemicals		1,240		290,347
	LG Chem Ltd.		Chemicals		3,251		2,312,397
	LG Corp.		Industrial Conglomerates		6,420		512,806
a	LG Display Co. Ltd.		Electronic Equipment, Instruments & Components		15,920		320,018
	LG Electronics Inc.		Household Durables		7,680		1,017,893
	LG Household & Health Care Ltd.		Personal Products		622		862,858
	LG Innotek Co. Ltd.		Electronic Equipment, Instruments & Components		1,009		183,211
	LG Uplus Corp.		Diversified Telecommunication Services		15,280		165,390
	Lotte Chemical Corp.		Chemicals		1,040		276,598
	Lotte Chilsung Beverage Co. Ltd.		Beverages		260		31,359
	Lotte Corp.		Industrial Conglomerates		1,920		57,681
	LOTTE Fine Chemical Co. Ltd.		Chemicals		1,280		66,389
	Lotte Shopping Co. Ltd.		Multiline Retail		780		86,839
	LS Corp.		Electrical Equipment		1,260		76,262
a	Mando Corp.		Auto Components		2,320		134,885
	Medytox Inc.		Biotechnology		311		51,826
	Mirae Asset Daewoo Co. Ltd.		Capital Markets		10,260		40,342
	Mirae Asset Daewood Co. Ltd.		Capital Markets		24,980		217,630
	Naver Corp.		Interactive Media & Services		9,460		3,151,244
	NCSoft Corp.		Entertainment		1,200		925,646
b	Netmarble Corp		Entertainment		1,200		136,779
	NH Investment & Securities Co. Ltd.		Capital Markets		8,960		92,232
a	NHN Corp.		Entertainment		700		44,842
	Nongshim Co. Ltd.		Food Products		220		55,109
a	OCI Co. Ltd.		Chemicals		1,320		141,710
	Orion Corp.		Food Products		1,540		178,255
	Ottogi Corp.		Food Products		100		50,365
a	Paradise Co. Ltd.		Hotels, Restaurants & Leisure		3,340		49,137
	POSCO		Metals & Mining		4,780		1,351,535
	POSCO Chemical Co. Ltd.		Construction Materials		1,926		263,777
	Posco International Corp.		Trading Companies & Distributors		3,540		63,027
	S-1 Corp.		Commercial Services & Supplies		1,380		99,621
a	S-Oil Corp.		Oil, Gas & Consumable Fuels		2,920		209,502
a,b	Samsung Biologics Co. Ltd.		Life Sciences Tools & Services		950		627,877
	Samsung C&T Corp.		Industrial Conglomerates		5,980		657,840
	Samsung Card Co. Ltd.		Consumer Finance		2,160		65,750
	Samsung Electro-Mechanics Co. Ltd.		Electronic Equipment, Instruments & Components		3,980		659,377
	Samsung Electronics Co. Ltd.		Technology Hardware, Storage & Peripherals		148,050		10,648,350
a	Samsung Engineering Co. Ltd.		Construction & Engineering		11,140		137,804



290	Annual Report	franklintempleton.com

FRANKLIN TEMPLETON ETF TRUST

STATEMENT OF INVESTMENTS

Franklin FTSE South Korea ETF (continued)



		Industry		Shares		Value
	Common Stocks (continued)
	South Korea (continued)
	Samsung Fire & Marine Insurance Co. Ltd.		Insurance		2,340	$	392,843
a	Samsung Heavy Industries Co. Ltd.		Machinery		31,160		213,928
	Samsung Life Insurance Co. Ltd.		Insurance		4,540		313,297
	Samsung SDI Co. Ltd.		Electronic Equipment, Instruments & Components		3,760		2,192,710
	Samsung SDS Co. Ltd.		IT Services		2,280		389,821
	Samsung Securities Co. Ltd.		Capital Markets		4,500		156,859
	Seegene Inc.		Biotechnology		1,020		117,254
	Shin Poong Pharmaceutical Co. Ltd.		Pharmaceuticals		2,380		178,960
a	Shinhan Financial Group Co. Ltd.		Banks		35,560		1,176,693
	Shinsegae Co. Ltd.		Multiline Retail		500		124,144
a,c	SillaJen Inc.		Biotechnology		1,616		17,277
a	SK Biopharmaceuticals Co. Ltd.		Pharmaceuticals		1,740		158,357
	SK Chemicals Co. Ltd.		Chemicals		640		141,657
	SK Holdings Co. Ltd.		Industrial Conglomerates		2,220		553,161
	SK Hynix Inc.		Semiconductors & Semiconductor Equipment		37,001		4,331,904
a	SK Innovation Co. Ltd.		Oil, Gas & Consumable Fuels		3,872		749,254
	SK Networks Co. Ltd.		Trading Companies & Distributors		9,100		45,269
	SK Telecom Co. Ltd.		Wireless Telecommunication Services		1,880		456,815
	SKC Co. Ltd.		Chemicals		1,380		156,687
	Ssangyong Cement Industrial Co. Ltd.		Construction Materials		7,560		51,302
a	Woori Financial Group Inc.		Banks		36,400		324,842
	Yuhan Corp.		Pharmaceuticals		3,440		191,491

	Total Common Stocks (Cost $51,530,885)						59,871,924

	Preferred Stocks 4.0%
	South Korea 4.0%
d	Amorepacific Corp., 0.964%, pfd.		Personal Products		760		56,072
d	CJ CheilJedang Corp., 2.201%, pfd.		Food Products		100		16,258
d	Hyundai Motor Co., 3.050%, pfd.		Automobiles		1,580		139,607
d	Hyundai Motor Co., 3.163%, pfd.		Automobiles		2,520		218,211
d	LG Chem Ltd., 2.617%, pfd.		Chemicals		560		190,006
d	LG Electronics Inc., 1.773%, pfd.		Household Durables		1,260		78,489
d	LG Household & Health Care Ltd., 1.613%, pfd.		Personal Products		160		96,841
d	Samsung Electronics Co. Ltd., 4.103%, pfd.		Technology Hardware, Storage & Peripherals		25,940		1,673,179
d	Samsung Fire & Marine Insurance Co. Ltd., 5.969%, pfd.		Insurance		200		26,066
d	Samsung SDI Co. Ltd., 0.233%, pfd.		Electronic Equipment, Instruments & Components		100		39,850

	Total Preferred Stocks (Cost $21,20,853)						2,534,579

	Total Investments (Cost $53,651,738) 99.1%						62,406,503
	Other Assets, less Liabilities 0.9%						559,287

	Net Assets 100.0%					$	62,965,790

See Abbreviations on page 355.

^aNon-income producing.

^cFair valued using significant unobservable inputs. See Note 9 regarding fair value measurements.

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



franklintempleton.com	Annual Report	291

FRANKLIN TEMPLETON ETF TRUST

STATEMENT OF INVESTMENTS

Franklin FTSE South Korea ETF (continued)

At March 31, 2021, 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

Kospi 200 Mini

Long

439,814

4/08/21

2,310

*As of period end.

See Note 8 regarding other derivative information.



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

FRANKLIN TEMPLETON ETF TRUST

Financial Highlights

Franklin FTSE Switzerland ETF



	Year Ended March 31,

	2021			2020			2019			2018^a

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

Net asset value, beginning of year	$	24.44		$	23.86		$	23.11		$	23.56


Income from investment operations^b:

Net investment income^c		0.88			1.06			0.53			0.22

Net realized and unrealized gains (losses)		5.74			(0.16	)		0.83			(0.67	)


Total from investment operations		6.62			0.90			1.36			(0.45	)


Less distributions from net investment income		(0.70	)		(0.32	)		(0.61	)		—


Net asset value, end of year	$	30.36		$	24.44		$	23.86		$	23.11


Total return^d		27.54%			3.70%			6.13%			(1.91)%

Ratios to average net assets^e

Total expenses		0.09%			0.09%			0.09%			0.09%


Net investment income		3.13%			4.12%			2.35%			6.54%

Supplemental data

Net assets, end of year (000’s)		$48,570			$34,213			$2,386			$2,311

Portfolio turnover rate^f		12.59%	^g		16.25%	^g		14.06%			2.72%

^aFor the period February 6, 2018 (commencement of operations) to March 31, 2018.

^cBased on average daily shares outstanding.

^eRatios are annualized for periods less than one year.

^fPortfolio turnover rate includes portfolio transactions that are executed as a result of the Fund offering and redeeming Creation Units solely for cash (“Cash creations”).

^gPortfolio turnover rate excluding cash creations was as follows:

12.59%

16.25%



franklintempleton.com	The accompanying notes are an integral part of these financial statements. \| Annual Report	293

FRANKLIN TEMPLETON ETF TRUST

Statement of Investments, March 31, 2021

Franklin FTSE Switzerland ETF



		Industry		Shares		Value
	Common Stocks 99.2%
	Austria 0.3%
a	ams AG		Semiconductors & Semiconductor Equipment		8,128	$	162,707

	Switzerland 98.9%
	ABB Ltd.		Electrical Equipment		54,512		1,654,213
	Adecco Group AG		Professional Services		4,960		335,392
a	Alcon Inc.		Health Care Equipment & Supplies		14,960		1,051,961
	Baloise Holding AG		Insurance		1,440		246,031
	Banque Cantonale Vaudoise		Banks		896		87,777
	Barry Callebaut AG		Food Products		96		217,878
	BKW AG		Electric Utilities		576		62,915
	Chocoladefabriken Lindt & Spruengli AG		Food Products		66		578,547
	Cie Financiere Richemont SA		Textiles, Apparel & Luxury Goods		16,352		1,576,561
	Clariant AG		Chemicals		7,232		146,461
	Credit Suisse Group AG		Capital Markets		77,568		816,106
	DKSH Holding AG		Professional Services		1,136		87,570
	EMS-Chemie Holding AG		Chemicals		224		200,878
a	Flughafen Zurich AG		Transportation Infrastructure		608		100,327
	Geberit AG		Building Products		1,136		726,152
	Georg Fischer AG		Machinery		131		175,799
	Givaudan AG		Chemicals		295		1,141,571
	Helvetia Holding AG		Insurance		1,104		130,207
	Julius Baer Group Ltd.		Capital Markets		6,944		445,939
	Kuehne + Nagel International AG		Marine		1,600		458,503
a	LafargeHolcim Ltd., B		Construction Materials		16,384		966,867
	Logitech International SA		Technology Hardware, Storage & Peripherals		4,704		495,516
	Lonza Group AG		Life Sciences Tools & Services		2,368		1,329,492
	Nestle SA		Food Products		88,704		9,928,363
	Novartis AG		Pharmaceuticals		67,904		5,827,558
	OC Oerlikon Corp. AG		Machinery		6,080		70,610
	Partners Group Holding AG		Capital Markets		720		923,381
	PSP Swiss Property AG		Real Estate Management & Development		1,376		168,427
	Roche Holding AG		Pharmaceuticals		848		291,031
	Roche Holding AG		Pharmaceuticals		22,304		7,238,758
	Schindler Holding AG		Machinery		608		174,942
	Schindler Holding AG, PC		Machinery		1,296		382,266
	SGS SA		Professional Services		188		535,545
	SIG Combibloc Group AG		Containers & Packaging		10,288		238,958
	Sika AG		Chemicals		4,432		1,271,466
a	Sonova Holding AG		Health Care Equipment & Supplies		1,680		446,976
	Straumann Holding AG		Health Care Equipment & Supplies		320		400,871
	Sulzer AG		Machinery		576		65,057
	Swatch Group AG		Textiles, Apparel & Luxury Goods		928		268,101
	Swatch Group AG		Textiles, Apparel & Luxury Goods		1,408		78,767
	Swiss Life Holding AG		Insurance		1,008		497,601
	Swiss Prime Site AG		Real Estate Management & Development		2,400		222,239
	Swiss Re AG		Insurance		8,992		888,165
	Swisscom AG		Diversified Telecommunication Services		816		439,581
	Tecan Group AG		Life Sciences Tools & Services		384		171,120
	Temenos AG		Software		1,936		279,863
	UBS Group AG		Capital Markets		107,424		1,670,457
b	VAT Group AG, Reg S		Machinery		816		229,588
	Vifor Pharma AG		Pharmaceuticals		1,648		225,272
	Zurich Insurance Group AG		Insurance		4,768		2,043,682


							48,011,308

	Total Investments (Cost $46,994,852) 99.2%						48,174,015
	Other Assets, less Liabilities 0.8%						395,733

	Net Assets 100.0%					$	48,569,748



294	Annual Report	franklintempleton.com

FRANKLIN TEMPLETON ETF TRUST

STATEMENT OF INVESTMENTS

Franklin FTSE Switzerland ETF (continued)

See Abbreviations on page 355.

^aNon-income producing.

^bSecurity was purchased pursuant to Regulation S under the Securities Act of 1933, which exempts from registration securities offered and sold outside of the United States. Such a security cannot be sold in the United States without either an effective registration statement filed pursuant to the Securities Act of 1933, or pursuant to an exemption from registration. At March 31, 2021, the value of this security was $229,588, representing 0.5% of net assets.

At March 31, 2021, 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

Swiss Mid Cap Future Index

Long

293,864

6/18/21

8,660

*As of period end.

See Note 8 regarding other derivative information.



franklintempleton.com	The accompanying notes are an integral part of these financial statements. \| Annual Report	295

FRANKLIN TEMPLETON ETF TRUST

Financial Highlights

Franklin FTSE Taiwan ETF


	Year Ended March 31,

	2021			2020			2019			2018^a

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

Net asset value, beginning of year	$	23.18		$	24.72		$	26.34		$	25.59


Income from investment operations^b:

Net investment income (loss)^c		0.74			0.89			0.47			(0.02	)

Net realized and unrealized gains (losses)		17.99			(1.56	)		(1.85	)		0.77


Total from investment operations		18.73			(0.67	)		(1.38	)		0.75


Less distributions from net investment income		(0.79	)		(0.87	)		(0.24	)		(—	)^d


Net asset value, end of year	$	41.12		$	23.18		$	24.72		$	26.34


Total return^e		81.35%			(3.29)%			(5.15)%			2.93%

Ratios to average net assets^f

Total expenses		0.19%			0.19%			0.19%			0.19%

Net investment income (loss)		2.24%			3.39%			1.96%			(0.19)%

Supplemental data

Net assets, end of year (000’s)		$32,897			$13,906			$14,834			$5,268

Portfolio turnover rate^g		10.63%^h			12.57%^h			8.71%			3.63%

^aFor the period November 2, 2017 (commencement of operations) to March 31, 2018.

^cBased on average daily shares outstanding.

^dAmount rounds to less than $0.001 per share.

^fRatios are annualized for periods less than one year.

^gPortfolio turnover rate includes portfolio transactions that are executed as a result of the Fund offering and redeeming Creation Units solely for cash (“Cash creations”).

^hPortfolio turnover rate excluding cash creations was as follows:

10.63%

12.57%



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

FRANKLIN TEMPLETON ETF TRUST

Statement of Investments, March 31, 2021

Franklin FTSE Taiwan ETF



		Industry		Shares		Value
	Common Stocks 99.9%
	China 1.3%
	Airtac International Group		Machinery		6,000	$	211,334
	Silergy Corp.		Semiconductors & Semiconductor Equipment		2,460		198,728


							410,062

	Taiwan 98.6%
	Accton Technology Corp.		Communications Equipment		21,800		210,872
	Acer Inc.		Technology Hardware, Storage & Peripherals		120,000		132,268
	Advantech Co. Ltd.		Technology Hardware, Storage & Peripherals		16,928		210,020
	ASE Industrial Holding Co. Ltd.		Semiconductors & Semiconductor Equipment		139,000		523,692
	Asia Cement Corp.		Construction Materials		96,000		160,824
	ASMedia Technology Inc.		Semiconductors & Semiconductor Equipment		1,600		83,552
	Asustek Computer Inc.		Technology Hardware, Storage & Peripherals		28,800		375,986
a	AU Optronics Corp.		Electronic Equipment, Instruments & Components		360,000		265,587
	Capital Securities Corp.		Capital Markets		80,000		43,739
	Catcher Technology Co. Ltd.		Technology Hardware, Storage & Peripherals		29,730		220,373
	Cathay Financial Holding Co. Ltd.		Insurance		338,000		568,012
	Chailease Holding Co. Ltd.		Diversified Financial Services		52,023		359,182
	Chang Hwa Commercial Bank Ltd.		Banks		265,560		163,340
	Cheng Shin Rubber Industry Co. Ltd.		Auto Components		76,000		128,385
	Chicony Electronics Co. Ltd.		Technology Hardware, Storage & Peripherals		24,300		86,442
a	China Airlines Ltd.		Airlines		104,000		55,585
	China Development Financial Holding Corp.		Insurance		568,000		209,021
	China Life Insurance Co. Ltd.		Insurance		84,000		75,807
a	China Motor Corp.		Automobiles		12,000		27,883
	China Steel Corp.		Metals & Mining		504,000		457,491
	Chunghwa Telecom Co. Ltd.		Diversified Telecommunication Services		156,000		609,610
	Compal Electronics Inc.		Technology Hardware, Storage & Peripherals		168,000		157,207
	CTBC Financial Holding Co. Ltd.		Banks		745,000		577,034
	Delta Electronics Inc.		Electronic Equipment, Instruments & Components		89,000		898,328
	E.Sun Financial Holding Co. Ltd.		Banks		489,600		447,852
	Eclat Textile Co. Ltd.		Textiles, Apparel & Luxury Goods		8,000		134,581
a	ENNOSTAR Inc.		Semiconductors & Semiconductor Equipment		24,000		69,057
	Eternal Materials Co. Ltd.		Chemicals		40,630		51,192
	EVA Airways Corp.		Airlines		96,000		52,823
a	Evergreen Marine Corp. Taiwan Ltd.		Marine		98,035		156,331
	Far Eastern International Bank		Banks		85,732		32,150
	Far Eastern New Century Corp.		Industrial Conglomerates		160,000		169,348
	Far EasTone Telecommunications Co. Ltd.		Wireless Telecommunication Services		66,000		148,270
	Feng Tay Enterprise Co. Ltd.		Textiles, Apparel & Luxury Goods		18,000		123,015
	First Financial Holding Co. Ltd.		Banks		414,910		322,819
	Formosa Chemicals & Fibre Corp.		Chemicals		140,000		429,818
	Formosa Petrochemical Corp.		Oil, Gas & Consumable Fuels		56,000		189,984
	Formosa Plastics Corp.		Chemicals		200,000		707,952
	Formosa Taffeta Co. Ltd.		Textiles, Apparel & Luxury Goods		40,000		43,178
	Foxconn Technology Co. Ltd.		Electronic Equipment, Instruments & Components		45,000		114,499
	Fubon Financial Holding Co. Ltd.		Insurance		300,000		597,203
	Genius Electronic Optical Co. Ltd.		Electronic Equipment, Instruments & Components		3,330		56,486
	Giant Manufacturing Co. Ltd.		Leisure Products		12,000		144,675
	Globalwafers Co. Ltd.		Semiconductors & Semiconductor Equipment		8,700		228,683
	Hiwin Technologies Corp.		Machinery		10,940		154,325
	Hon Hai Precision Industry Co. Ltd.		Electronic Equipment, Instruments & Components		490,000		2,129,464
	Hotai Motor Co. Ltd.		Specialty Retail		13,040		268,725
a	HTC Corp.		Technology Hardware, Storage & Peripherals		28,000		30,274
	Hua Nan Financial Holdings Co. Ltd.		Banks		392,464		256,526
	Innolux Corp.		Electronic Equipment, Instruments & Components		344,000		254,386
	Inventec Corp.		Technology Hardware, Storage & Peripherals		124,000		117,338
	Largan Precision Co. Ltd.		Electronic Equipment, Instruments & Components		4,220		474,756
	Lite-On Technology Corp.		Technology Hardware, Storage & Peripherals		88,000		193,684
	MediaTek Inc.		Semiconductors & Semiconductor Equipment		60,600		2,058,017
	Mega Financial Holding Co. Ltd.		Banks		445,000		497,512
	Micro-Star International Co. Ltd.		Technology Hardware, Storage & Peripherals		28,000		170,750



franklintempleton.com	Annual Report	297

FRANKLIN TEMPLETON ETF TRUST

STATEMENT OF INVESTMENTS

Franklin FTSE Taiwan ETF (continued)



		Industry		Shares		Value
	Common Stocks (continued)
	Taiwan (continued)
	momo.com Inc.		Internet & Direct Marketing Retail		1,800	$	62,454
	Nan Ya Plastics Corp.		Chemicals		232,000		648,849
	Nan Ya Printed Circuit Board Corp.		Electronic Equipment, Instruments & Components		8,600		106,697
	Nanya Technology Corp.		Semiconductors & Semiconductor Equipment		33,000		106,287
	Nien Made Enterprise Co. Ltd.		Household Durables		5,800		80,903
	Novatek Microelectronics Corp. Ltd.		Semiconductors & Semiconductor Equipment		23,330		470,149
a	OBI Pharma Inc.		Biotechnology		5,194		27,305
a	Oneness Biotech Co. Ltd.		Pharmaceuticals		11,200		103,824
	Parade Technologies Ltd.		Semiconductors & Semiconductor Equipment		2,800		120,212
	Pegatron Corp.		Technology Hardware, Storage & Peripherals		82,000		212,953
	Pou Chen Corp.		Textiles, Apparel & Luxury Goods		108,000		124,908
	Powertech Technology Inc.		Semiconductors & Semiconductor Equipment		28,800		106,487
	President Chain Store Corp.		Food & Staples Retailing		22,800		217,348
	Quanta Computer Inc.		Technology Hardware, Storage & Peripherals		110,000		377,808
	Realtek Semiconductor Corp.		Semiconductors & Semiconductor Equipment		19,600		339,340
	Shin Kong Financial Holding Co. Ltd.		Insurance		484,530		155,380
	Sino-American Silicon Products Inc.		Semiconductors & Semiconductor Equipment		22,000		130,305
	SinoPac Financial Holdings Co. Ltd.		Banks		432,040		194,572
	Synnex Technology International Corp.		Electronic Equipment, Instruments & Components		56,000		106,964
	Taishin Financial Holding Co. Ltd.		Banks		424,000		199,124
	Taiwan Business Bank		Banks		205,050		71,577
	Taiwan Cement Corp.		Construction Materials		209,352		343,380
	Taiwan Cooperative Financial Holding Co. Ltd.		Banks		394,460		292,392
	Taiwan Fertilizer Co. Ltd.		Chemicals		30,000		59,405
a	Taiwan Glass Industry Corp.		Building Products		68,000		47,426
	Taiwan High Speed Rail Corp.		Transportation Infrastructure		84,000		92,588
	Taiwan Mobile Co. Ltd.		Wireless Telecommunication Services		66,660		229,419
	Taiwan Secom Co. Ltd.		Commercial Services & Supplies		12,000		39,239
	Taiwan Semiconductor Manufacturing Co. Ltd.		Semiconductors & Semiconductor Equipment		299,000		6,151,228
	Teco Electric & Machinery Co. Ltd.		Electrical Equipment		72,000		81,632
	The Shanghai Commercial & Savings Bank Ltd.		Banks		136,000		199,951
^a	TPK Holding Co. Ltd.		Electronic Equipment, Instruments & Components		13,000		22,872
	Transcend Information Inc.		Technology Hardware, Storage & Peripherals		12,000		27,463
	U-Ming Marine Transport Corp.		Marine		16,000		23,159
	Uni-President Enterprises Corp.		Food Products		196,000		501,454
	Unimicron Technology Corp.		Electronic Equipment, Instruments & Components		52,000		166,754
	United Microelectronics Corp.		Semiconductors & Semiconductor Equipment		477,000		839,218
	Vanguard International Semiconductor Corp.		Semiconductors & Semiconductor Equipment		37,000		140,048
	Walsin Lihwa Corp.		Electrical Equipment		128,000		85,235
	Walsin Technology Corp.		Electronic Equipment, Instruments & Components		20,000		174,885
	Wan Hai Lines Ltd.		Marine		30,000		57,933
	Win Semiconductors Corp.		Semiconductors & Semiconductor Equipment		16,400		224,736
	Winbond Electronics Corp.		Semiconductors & Semiconductor Equipment		120,000		124,067
	Wistron Corp.		Technology Hardware, Storage & Peripherals		116,000		136,193
	Wiwynn Corp.		Technology Hardware, Storage & Peripherals		3,400		100,452
	Yageo Corp.		Electronic Equipment, Instruments & Components		18,600		360,488
	Yuanta Financial Holding Co. Ltd.		Diversified Financial Services		477,560		376,585
a	Yulon Motor Co. Ltd.		Automobiles		22,165		34,219
	Yulon Nissan Motor Co. Ltd.		Automobiles		1,000		9,813
	Zhen Ding Technology Holding Ltd.		Electronic Equipment, Instruments & Components		26,000		109,803


							32,441,396

	Total Investments (Cost $22,238,688) 99.9%						32,851,458

	Other Assets, less Liabilities 0.1%						45,381

	Net Assets 100.0%					$	32,896,839

See Abbreviations on page 355.

^aNon-income producing.



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

FRANKLIN TEMPLETON ETF TRUST

Financial Highlights

Franklin FTSE United Kingdom ETF


	Year Ended March 31,

	2021			2020			2019			2018^a

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

Net asset value, beginning of year	$	17.92		$	24.23		$	25.23		$	24.89


Income from investment operations^b:

Net investment income^c		0.84			1.08			1.05			0.38

Net realized and unrealized gains (losses)		5.62			(6.30	)		(1.21	)		0.07


Total from investment operations		6.46			(5.22	)		(0.16	)		0.45


Less distributions from net investment income		(0.60	)		(1.09	)		(0.84	)		(0.11	)


Net asset value, end of year	$	23.78		$	17.92		$	24.23		$	25.23


Total return^d		36.19%			(22.42)%			(0.51)%			1.80%

Ratios to average net assets^e

Expenses before waiver and payments by affiliates		0.09%			0.09%			0.09%			0.09%

Expenses net of waiver and payments by affiliates		0.09%			0.09%			0.09%			0.09%

Net investment income		3.98%			4.84%			4.46%			3.68%

Supplemental data

Net assets, end of year (000’s)		$205,673			$89,624			$29,076			$2,523

Portfolio turnover rate^f		7.26%^g			4.41%^g			10.10%			1.61%

^aFor the period November 2, 2017 (commencement of operations) to March 31, 2018.

^cBased on average daily shares outstanding.

^eRatios are annualized for periods less than one year, except for non-recurring expenses, if any.

^fPortfolio turnover rate includes portfolio transactions that are executed as a result of the Fund offering and redeeming Creation Units solely for cash (“Cash creations”).

^gPortfolio turnover rate excluding cash creations was as follows:

7.26%

4.41%



franklintempleton.com	The accompanying notes are an integral part of these financial statements. \| Annual Report	299

FRANKLIN TEMPLETON ETF TRUST

Statement of Investments, March 31, 2021

Franklin FTSE United Kingdom ETF



		Industry			Shares		Value
	Common Stocks 99.1%
	Australia 4.9%
a	Glencore PLC		Metals & Mining			867,076	$	3,400,497
	Rio Tinto PLC		Metals & Mining			87,365		6,689,833


								10,090,330

	Germany 0.6%
a,b,c	Just Eat Takeaway.com NV, 144A, Reg S		Internet & Direct Marketing Retail			9,515		877,991
a,d	TUI AG		Hotels, Restaurants & Leisure			58,474		296,244

								1,174,235

	Ireland 3.3%
	CRH PLC		Construction Materials			62,972		2,946,185
a	Flutter Entertainment PLC		Hotels, Restaurants & Leisure			13,148		2,812,654
	Smurfit Kappa Group PLC		Containers & Packaging			20,587		967,437


								6,726,276

	Kazakhstan 0.1%
	KAZ Minerals PLC		Metals & Mining			17,992		215,220

	Russia 0.4%
	Evraz PLC		Metals & Mining			46,883		373,877
	Polymetal International PLC		Metals & Mining			28,199		552,273


								926,150

	Switzerland 0.2%
	Coca-Cola HBC AG		Beverages			15,743		501,747

	United Arab Emirates 0.0%^†
a	NMC Health PLC		Health Care Providers & Services			3,705		—

	United Kingdom 89.6%
	3i Group PLC		Capital Markets			76,812		1,222,451
	Admiral Group PLC		Insurance			16,781		717,967
	Anglo American PLC		Metals & Mining			98,783		3,874,070
	Antofagasta PLC		Metals & Mining			27,507		641,379
	Ashmore Group PLC		Capital Markets			36,503		197,122
	Ashtead Group PLC		Trading Companies & Distributors			35,984		2,148,232
^a	Associated British Foods PLC		Food Products			27,853		928,055
	AstraZeneca PLC		Pharmaceuticals			105,530		10,551,617
^a	Auto Trader Group PLC		Interactive Media & Services			75,774		579,600
	Avast PLC		Software			44,807		281,900
	AVEVA Group PLC		Software			9,169		432,899
	Aviva PLC		Insurance			315,898		1,779,118
	B&M European Value Retail SA		Multiline Retail			71,622		521,556
	BAE Systems PLC		Aerospace & Defense			257,424		1,793,598
	Barclays PLC		Banks			1,388,325		3,561,247
a	Barratt Developments PLC		Household Durables			81,310		837,786
	Bellway PLC		Household Durables			9,861		462,986
	BHP Group PLC		Metals & Mining			167,291		4,834,346
	BP PLC		Oil, Gas & Consumable Fuels			1,594,541		6,482,267
	British American Tobacco PLC		Tobacco			183,553		7,025,104
	British Land Co. PLC		Equity Real Estate Investment Trusts (REITs	)		74,217		516,901
a	BT Group PLC		Diversified Telecommunication Services			701,515		1,498,279
	Bunzl PLC		Trading Companies & Distributors			27,161		870,522
a	Burberry Group PLC		Textiles, Apparel & Luxury Goods			32,178		842,858
a	Centrica PLC		Multi-Utilities			469,176		350,460
a	Compass Group PLC		Hotels, Restaurants & Leisure			143,244		2,888,418
	ConvaTec Group PLC		Health Care Equipment & Supplies			129,577		350,583
	Croda International PLC		Chemicals			10,899		954,571
	DCC PLC		Industrial Conglomerates			7,958		690,620



300	Annual Report	franklintempleton.com

FRANKLIN TEMPLETON ETF TRUST

STATEMENT OF INVESTMENTS

Franklin FTSE United Kingdom ETF (continued)



		Industry			Shares		Value
	Common Stocks (continued)
	United Kingdom (continued)
	Derwent London PLC		Equity Real Estate Investment Trusts (REITs	)		8,131	$	362,128
	Diageo PLC		Beverages			184,591		7,613,667
	Direct Line Insurance Group PLC		Insurance			109,682		474,112
a	DS Smith PLC		Containers & Packaging			102,589		577,067
a	easyJet PLC		Airlines			18,165		245,159
	Experian PLC		Professional Services			73,006		2,515,139
	Ferguson PLC		Trading Companies & Distributors			18,165		2,172,397
	Fresnillo PLC		Metals & Mining			15,051		179,459
	GlaxoSmithKline PLC		Pharmaceuticals			396,343		7,043,230
a	GVC Holdings PLC		Hotels, Restaurants & Leisure			46,537		974,664
	Halma PLC		Electronic Equipment, Instruments & Components			30,621		1,002,963
	Hargreaves Lansdown PLC		Capital Markets			30,448		647,571
	Hikma Pharmaceuticals PLC		Pharmaceuticals			13,667		429,171
a	Hiscox Ltd.		Insurance			26,815		318,319
	HomeServe PLC		Commercial Services & Supplies			22,317		369,797
a	Howden Joinery Group PLC		Trading Companies & Distributors			46,364		468,889
	HSBC Holdings PLC		Banks			1,639,002		9,569,956
	IMI PLC		Machinery			21,625		398,013
	Imperial Brands PLC		Tobacco			75,774		1,559,818
a	Informa PLC		Media			120,235		928,643
a	InterContinental Hotels Group PLC		Hotels, Restaurants & Leisure			14,705		1,009,353
	Intermediate Capital Group PLC		Capital Markets			22,663		575,959
a	International Consolidated Airlines Group SA		Airlines			91,171		249,439
	Intertek Group PLC		Professional Services			12,975		1,002,848
a	ITV PLC		Media			303,961		503,879
	J Sainsbury PLC		Food & Staples Retailing			133,210		445,691
a	JD Sports Fashion PLC		Specialty Retail			36,676		417,263
	Johnson Matthey PLC		Chemicals			15,397		640,059
a	Kingfisher PLC		Specialty Retail			169,540		744,550
	Land Securities Group PLC		Equity Real Estate Investment Trusts (REITs	)		57,263		545,219
	Legal & General Group PLC		Insurance			475,750		1,831,991
a	Lloyds Banking Group PLC		Banks			5,647,758		3,314,418
	London Stock Exchange Group PLC		Capital Markets			29,064		2,782,913
	M&G PLC		Diversified Financial Services			208,984		598,007
a	Meggitt PLC		Aerospace & Defense			62,453		411,359
a	Melrose Industries PLC		Electrical Equipment			386,655		890,358
	Mondi PLC		Paper & Forest Products			39,271		1,002,371
	National Grid PLC		Multi-Utilities			284,931		3,396,552
	Natwest Group PLC		Banks			365,203		988,846
a	Next PLC		Multiline Retail			10,207		1,107,738
a	Ocado Group PLC		Internet & Direct Marketing Retail			38,925		1,092,893
	Pearson PLC		Media			60,377		642,760
	Pennon Group PLC		Water Utilities			33,735		453,806
a	Persimmon PLC		Household Durables			25,431		1,031,563
	Phoenix Group Holdings PLC		Insurance			43,423		439,865
	Prudential PLC		Insurance			209,676		4,456,514
	Quilter PLC		Capital Markets			140,476		309,813
	Reckitt Benckiser Group PLC		Household Products			50,689		4,544,418
	RELX PLC		Professional Services			149,299		3,746,920
	Renishaw PLC		Electronic Equipment, Instruments & Components			2,768		244,799
a	Rentokil Initial PLC		Commercial Services & Supplies			149,818		1,001,274
a	Rightmove PLC		Interactive Media & Services			69,546		558,636
a	Rolls-Royce Holdings PLC		Aerospace & Defense			600,310		872,145
	Royal Dutch Shell PLC, A		Oil, Gas & Consumable Fuels			329,911		6,435,312
	Royal Dutch Shell PLC, B		Oil, Gas & Consumable Fuels			298,252		5,493,504
	RSA Insurance Group PLC		Insurance			83,040		780,224
	Schroders PLC		Capital Markets			8,996		434,412



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FRANKLIN TEMPLETON ETF TRUST

STATEMENT OF INVESTMENTS

Franklin FTSE United Kingdom ETF (continued)



		Industry			Shares		Value
	Common Stocks (continued)
	United Kingdom (continued)
P	Segro PLC		Equity Real Estate Investment Trusts (REITs	)		96,015	$	1,242,057
	Severn Trent PLC		Water Utilities			19,203		610,961
	Smith & Nephew PLC		Health Care Equipment & Supplies			70,584		1,341,962
	Smiths Group PLC		Industrial Conglomerates			31,832		675,249
	Spirax-Sarco Engineering PLC		Machinery			5,882		925,155
	SSE PLC		Electric Utilities			83,559		1,677,417
	St. James’s Place Capital PLC		Capital Markets			42,558		748,058
	Standard Chartered PLC		Banks			208,465		1,436,658
	Standard Life Aberdeen PLC		Capital Markets			172,481		689,881
	Tate & Lyle PLC		Food Products			37,541		397,374
a	Taylor Wimpey PLC		Household Durables			290,813		724,028
	Tesco PLC		Food & Staples Retailing			614,249		1,939,457
	The Berkeley Group Holdings PLC		Household Durables			9,342		572,150
	The Sage Group PLC		Software			87,711		741,579
a	THG PLC		Internet & Direct Marketing Retail			49,651		427,119
a	Travis Perkins PLC		Trading Companies & Distributors			20,241		430,487
	Unilever PLC		Personal Products			204,486		11,443,170
	United Utilities Group PLC		Water Utilities			54,841		700,499
	Vodafone Group PLC		Wireless Telecommunication Services			2,153,331		3,918,091
a	Weir Group PLC		Machinery			20,933		513,220
a	Whitbread PLC		Hotels, Restaurants & Leisure			16,089		760,504
	William Morrison Supermarkets PLC		Food & Staples Retailing			175,076		440,712
	WPP PLC		Media			95,150		1,208,550

								184,248,683

	Total Common Stocks (Cost $202,715,110)							203,882,641

	Short Term Investments 0.1%
	Investments from Cash Collateral Received for Loaned Securities 0.1%
	United States 0.1%
e,f	Institutional Fiduciary Trust Portfolio, 0.01%		Money Market Funds			230,050		230,050

	Total Investments (Cost $202,945,160) 99.2%							204,112,691
	Other Assets, less Liabilities 0.8%							1,559,887

	Net Assets 100.0%						$	205,672,578

See Abbreviations on page 355.

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

^aNon-income producing.

^bSecurity was purchased pursuant to Rule 144A under the Securities Act of 1933 and may be sold in transactions exempt from registration only to qualified institutional buyers or in a public offering registered under the Securities Act of 1933. At March 31, 2021, the value of this security was $877,991, representing 0.4% of net assets.

^cSecurity was purchased pursuant to Regulation S under the Securities Act of 1933, which exempts from registration securities offered and sold outside of the United States. Such a security cannot be sold in the United States without either an effective registration statement filed pursuant to the Securities Act of 1933, or pursuant to an exemption from registration. At March 31, 2021, the value of this security was $877,991, representing 0.4% of net assets.

^dA portion or all of the security is on loan at March 31, 2021. See Note 1(d).

^eThe rate shown is the annualized seven-day effective yield at period end.

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



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

FRANKLIN TEMPLETON ETF TRUST

STATEMENT OF INVESTMENTS

Franklin FTSE United Kingdom ETF (continued)

At March 31, 2021, 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

1,566,671

6/18/21

(7,397

)

*As of period end.

See Note 8 regarding other derivative information.



franklintempleton.com	The accompanying notes are an integral part of these financial statements. \| Annual Report	303

FRANKLIN TEMPLETON ETF TRUST

FINANCIAL STATEMENTS

Statements of Assets and Liabilities

March 31, 2021



	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	$	30,409,194	$	20,754,361	$	133,020,442		$	22,039,750
Cost – Non-controlled affiliates (Note 3c)		58,810		—		—			—

Value – Unaffiliated issuers+	$	34,191,496	$	23,238,336	$	107,226,763		$	24,138,121
Value – Non-controlled affiliates (Note 3c)		58,810		—		—			—
Cash		5,039		—		1,522			—
Foreign currency, at value (cost $92,198, $73,666, $129,580 and $15,571, respectively)		92,020		73,842		127,206			15,571
Receivables:
Capital shares sold		—		—		12,175,443			—
Dividends and interest		81,884		64,567		300,717			44,306
Investment securities sold		—		—		253,455			—
Variation margin on futures contracts		581		—		13,439			—
Deposits with brokers for:
Futures contracts		17,393		—		50,630			—

Total assets		34,447,223		23,376,745		120,149,175			24,197,998

Liabilities:
Payables:
Investment securities purchased		—		10,156		12,477,703			—
Management fees		5,615		1,697		15,066			1,770
Variation margin on futures contracts		—		—		—			—
Funds advanced by custodian		—		69,823		—			35,978
Deferred tax		66,222		—		—			—
Payable upon return of securities loaned		58,810		—		—			—

Total liabilities		130,647		81,676		12,492,769			37,748

Net assets, at value	$	34,316,576	$	23,295,069	$	107,656,406		$	24,160,250

Net assets consist of:
Paid-in capital	$	31,503,532	$	20,973,600	$	174,126,006		$	22,151,893
Total distributable earnings (loss)		2,813,044		2,321,469		(66,469,600	)		2,008,357

Net assets, at value	$	34,316,576	$	23,295,069	$	107,656,406		$	24,160,250

Shares outstanding		1,200,000		800,000		5,200,000			800,000

Net asset value per share	$	28.60	$	29.12	$	20.70		$	30.20

+Includes securities loaned		57,629		—		—			—



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

FRANKLIN TEMPLETON ETF TRUST

FINANCIAL STATEMENTS

Statements of Assets and Liabilities (continued)

March 31, 2021



	Franklin FTSE China ETF		Franklin FTSE Europe ETF		Franklin FTSE Europe Hedged ETF			Franklin FTSE France ETF
Assets:
Investments in securities:
Cost – Unaffiliated issuers	$	104,133,624	$	186,953,745	$	14,791,987		$	6,739,237
Cost – Non-controlled affiliates (Note 3c)		517,219		64,200		157,303			—

Value – Unaffiliated issuers+	$	120,486,109	$	228,477,697	$	15,352,588		$	7,105,911
Value – Non-controlled affiliates (Note 3c)		517,219		64,200		157,303			—
Cash		46,474		64,479		—			—
Foreign currency, at value (cost $81,194, $327,415, $21,828 and $2,404, respectively)		81,109		327,606		21,754			2,395
Receivables:
Capital shares sold		6,357,017		—		—			—
Dividends and interest++		113		789,497		37,906			6,488
Investment securities sold		—		5,402,121		—			—
Variation margin on futures contracts		364		—		7,099			—
Deposits with brokers for:
Futures contracts		11,594		66,702		7,558			—
Unrealized appreciation on OTC forward exchange contracts		—		—		308,612			—

Total assets		127,499,999		235,192,302		15,892,820			7,114,794

Liabilities:
Cash deposit due to brokers		—		—		—			—
Payables:
Investment securities purchased		6,181,561		524,502		451,774			—
Capital shares redeemed		—		5,455,478		—			—
Management fees		19,129		18,374		845			542
Variation margin on futures contracts		—		3,321		—			—
Funds advanced by custodian		—		—		—			3,739
Payable upon return of securities loaned		517,219		64,200		—			—
Unrealized depreciation on OTC forward exchange contracts		—		—		11,075			—

Total liabilities		6,717,909		6,065,875		463,694			4,281

Net assets, at value	$	120,782,090	$	229,126,427	$	15,429,126		$	7,110,513

Net assets consist of:
Paid-in capital	$	110,596,462	$	189,551,775	$	15,547,877		$	6,799,822
Total distributable earnings (loss)		10,185,628		39,574,652		(118,751	)		310,691

Net assets, at value	$	120,782,090	$	229,126,427	$	15,429,126		$	7,110,513

Shares outstanding		3,800,000		8,400,000		600,000			250,000

Net asset value per share	$	31.78	$	27.28	$	25.72		$	28.44

+Includes securities loaned		506,824		60,912		—			—
++Includes European Union tax reclaims		—		300,054		13,576			—



franklintempleton.com	The accompanying notes are an integral part of these financial statements. \| Annual Report	305

FRANKLIN TEMPLETON ETF TRUST

FINANCIAL STATEMENTS

Statements of Assets and Liabilities (continued)

March 31, 2021



	Franklin FTSE Germany ETF		Franklin FTSE Hong Kong ETF		Franklin FTSE India ETF		Franklin FTSE Italy ETF
Assets:
Investments in securities:
Cost – Unaffiliated issuers	$	8,104,266	$	15,203,140	$	19,458,189	$	3,396,549

Value – Unaffiliated issuers	$	9,087,967	$	16,842,008	$	23,967,964	$	3,970,127
Cash		1,056		—		—		578
Foreign currency, at value (cost $2,054, $9,863, $10,211 and $3,523, respectively)		2,035		9,855		10,219		3,516
Receivables:
Dividends and interest++		2,430		28,151		7,351		450
Variation margin on futures contracts		—		—		—		—
Deposits with brokers for:
Futures contracts		—		—		—		—

Total assets		9,093,488		16,880,014		23,985,534		3,974,671

Liabilities:
Payables:
Management fees		684		1,292		3,650		298
Funds advanced by custodian		—		17,125		12,149		—
Deferred tax		—		—		425,587		—

Total liabilities		684		18,417		441,386		298

Net assets, at value	$	9,092,804	$	16,861,597	$	23,544,148	$	3,974,373

Net assets consist of:
Paid-in capital	$	8,368,364	$	15,516,985	$	20,646,570	$	3,728,641
Total distributable earnings (loss)		724,440		1,344,612		2,897,578		245,732

Net assets, at value	$	9,092,804	$	16,861,597	$	23,544,148	$	3,974,373

Shares outstanding		350,000		600,000		850,000		150,000

Net asset value per share	$	25.98	$	28.10	$	27.70	$	26.50

++Includes European Union tax reclaims		2,481		—		—		450



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

FRANKLIN TEMPLETON ETF TRUST

FINANCIAL STATEMENTS

Statements of Assets and Liabilities (continued)

March 31, 2021



	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	$	548,161,162	$	24,527,047		$	4,691,810		$	5,117,056
Cost – Non-controlled affiliates (Note 3c)		292,353		13,379			—			—

Value – Unaffiliated issuers	$	593,024,322	$	24,107,061		$	4,478,832		$	5,532,765
Value – Non-controlled affiliates (Note 3c)		292,353		13,379			—			—
Cash		—		—			—			466
Foreign currency, at value (cost $612,562, $39,258, $5,707 and $8,284, respectively)		609,877		39,264			5,578			8,348
Receivables:
Dividends and interest++		4,794,176		189,452			6,970			1,026
Investment securities sold		—		—			—			—
Deposits with brokers for:
Futures contracts		274,832		18,706			—			—
Unrealized appreciation on OTC forward exchange contracts		—		847,422			—			—

Total assets		598,995,560		25,215,284			4,491,380			5,542,605

Liabilities:
Payables:
Investment securities purchased		4		643,021			6,721			5,829
Management fees		44,873		1,850			710			874
Variation margin on futures contracts		16,563		5,060			—			—
Funds advanced by custodian		—		—			4,249			—
Unrealized depreciation on OTC forward exchange contracts		—		2,167			—			—

Total liabilities		61,440		652,098			11,680			6,703

Net assets, at value	$	598,934,120	$	24,563,186		$	4,479,700		$	5,535,902

Net assets consist of:
Paid-in capital	$	555,304,112	$	25,395,560		$	4,811,023		$	5,725,011
Total distributable earnings (loss)		43,630,008		(832,374	)		(331,323	)		(189,109	)

Net assets, at value	$	598,934,120	$	24,563,186		$	4,479,700		$	5,535,902

Shares outstanding		19,800,000		800,000			200,000			250,000

Net asset value per share	$	30.25	$	30.70		$	22.40		$	22.14

++Includes European Union tax reclaims		2,133		327			—			—



franklintempleton.com	The accompanying notes are an integral part of these financial statements. \| Annual Report	307

FRANKLIN TEMPLETON ETF TRUST

FINANCIAL STATEMENTS

Statements of Assets and Liabilities (continued)

March 31, 2021



	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	$	9,694,317	$	2,435,364	$	2,229,984	$	53,651,738

Value – Unaffiliated issuers	$	10,799,550	$	3,028,155	$	2,619,526	$	62,406,503
Cash		—		—		—		—
Foreign currency, at value (cost $-, $17,198, $4,376 and $286, respectively)		—		17,198		4,409		286
Receivables:
Dividends and interest		2,723		8,770		2,809		574,488
Investment securities sold		—		14,985		—		—
Variation margin on futures contracts		—		—		—		—
Deposits with brokers for:
Futures contracts		—		—		—		59,409

Total assets		10,802,273		3,069,108		2,626,744		63,040,686

Liabilities:
Payables:
Investment securities purchased		—		12,447		2,458		—
Management fees		1,727		948		417		4,785
Variation margin on futures contracts		—		—		—		453
Funds advanced by custodian		6,681		22,674		1,626		69,658

Total liabilities		8,408		36,069		4,501		74,896

Net assets, at value	$	10,793,865	$	3,033,039	$	2,622,243	$	62,965,790

Net assets consist of:
Paid-in capital	$	10,248,829	$	2,482,525	$	2,441,624	$	58,252,227
Total distributable earnings (loss)		545,036		550,514		180,619		4,713,563

Net assets, at value	$	10,793,865	$	3,033,039	$	2,622,243	$	62,965,790

Shares outstanding		400,000		100,000		100,000		2,000,000

Net asset value per share	$	26.98	$	30.33	$	26.22	$	31.48



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

FRANKLIN TEMPLETON ETF TRUST

FINANCIAL STATEMENTS

Statements of Assets and Liabilities (continued)

March 31, 2021



	Franklin FTSE Switzerland ETF		Franklin FTSE Taiwan ETF		Franklin FTSE United Kingdom ETF
Assets:
Investments in securities:
Cost – Unaffiliated issuers	$	46,994,852	$	22,238,688	$	202,715,110
Cost – Non-controlled affiliates (Note 3c)		—		—		230,050

Value – Unaffiliated issuers+	$	48,174,015	$	32,851,458	$	203,882,641
Value – Non-controlled affiliates (Note 3c)		—		—		230,050
Cash		—		1,887		30,252
Foreign currency, at value (cost $67,278, $27,153 and $451,228, respectively)		67,464		27,115		452,500
Receivables:
Capital shares sold		—		—		—
Dividends and interest++		326,891		21,596		1,163,719
Variation margin on futures contracts		3		—		—
Deposits with brokers for:
Futures contracts		22,010		4		171,057

Total assets		48,590,383		32,902,060		205,930,219

Liabilities:
Payables:
Investment securities purchased		—		—		—
Management fees		3,680		5,221		14,931
Variation margin on futures contracts		—		—		12,660
Funds advanced by custodian		16,955		—		—
Payable upon return of securities loaned		—		—		230,050

Total liabilities		20,635		5,221		257,641

Net assets, at value	$	48,569,748	$	32,896,839	$	205,672,578

Net assets consist of:
Paid-in capital	$	47,261,746	$	22,402,570	$	205,749,740
Total distributable earnings (loss)		1,308,002		10,494,269		(77,162	)

Net assets, at value	$	48,569,748	$	32,896,839	$	205,672,578

Shares outstanding		1,600,000		800,000		8,650,000

Net asset value per share	$	30.36	$	41.12	$	23.78

+Includes securities loaned		—		—		218,268
++Includes European Union tax reclaims		321,347		—		5,727



franklintempleton.com	The accompanying notes are an integral part of these financial statements. \| Annual Report	309

FRANKLIN TEMPLETON ETF TRUST

FINANCIAL STATEMENTS

Statements of Operations

for the year ended March 31, 2021



	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	$	415,891		$	518,889		$	2,785,946		$	252,411
Interest from securities loaned:
Unaffiliated issuers (net of fees and rebates)		64			—			—			—

Total investment income		415,955			518,889			2,785,946			252,411

Expenses:
Management fees (Note 3a)		40,093			13,977			201,829			7,652
Other		—			—			126			—

Total expenses		40,093			13,977			201,955			7,652
Expenses waived/paid by affiliates (Note 3c)		(156	)		—			—			—

Net investment income		376,018			504,912			2,583,991			244,759

Realized and unrealized gains (losses):
Net realized gain (loss) from:
Investments:
Unaffiliated issuers		(284,684	)		(331,521	)		(25,390,130	)		(84,110	)
In-kind redemptions		—			743,065			—			—
Foreign currency transactions		(7,096	)		(4,410	)		(194,378	)		2,626
Futures contracts		—			—			191,949			—

Net realized gain (loss)		(291,780	)		407,134			(25,392,559	)		(81,484	)

Net change in unrealized appreciation (depreciation) on:
Investments:
Unaffiliated issuers		7,337,823			6,447,419			68,592,316			3,599,809
Translation of other assets and liabilities denominated in foreign currencies		(758	)		1,576			142,388			(47	)
Futures contracts		(8,013	)		—			22,807			—
Change in deferred taxes on unrealized appreciation		(66,222	)		—			—			—

Net change in unrealized appreciation (depreciation)		7,262,830			6,448,995			68,757,511			3,599,762

Net realized and unrealized gain (loss)		6,971,050			6,856,129			43,364,952			3,518,278

Net increase (decrease) in net assets resulting from operations	$	7,347,068		$	7,361,041		$	45,948,943		$	3,763,037


^aForeign taxes withheld on dividends	$	53,171	$	9,029	$	184,432	$	42,985



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

FRANKLIN TEMPLETON ETF TRUST

FINANCIAL STATEMENTS

Statements of Operations (continued)

for the year ended March 31, 2021



	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	$	954,306		$	5,126,521		$	148,143		$	98,129
Non-cash dividends		—			555,392			12,319			20,713
Interest from securities loaned:
Unaffiliated issuers (net of fees and rebates)		550			4,870			—			—

Total investment income		954,856			5,686,783			160,462			118,842

Expenses:
Management fees (Note 3a)		144,831			195,625			5,403			6,056
Other		—			348			44			—

Total expenses		144,831			195,973			5,447			6,056
Expenses waived/paid by affiliates (Note 3c)		(332	)		(107	)		(12	)		—

Net investment income		810,357			5,490,917			155,027			112,786

Realized and unrealized gains (losses):
Net realized gain (loss) from:
Investments:
Unaffiliated issuers		(1,658,654	)		(2,525,042	)		(199,326	)		(43,190	)
In-kind redemptions		1,044,767			11,355,377			—			(632,310	)
Foreign currency transactions		(18,846	)		63,823			7,875			(430	)
Forwards exchange contracts		—			—			(386,312	)		—
Futures contracts		44,465			200,727			22,397			—

Net realized gain (loss)		(588,268	)		9,094,885			(555,366	)		(675,930	)

Net change in unrealized appreciation (depreciation) on:
Investments:
Unaffiliated issuers		18,704,667			64,755,652			1,999,381			3,137,154
Translation of other assets and liabilities denominated in foreign currencies		(125	)		2,628			344			12
Futures contracts		(5,342	)		(31,339	)		(1,370	)		—
Forward exchange contracts		—			—			246,686			—

Net change in unrealized appreciation (depreciation)		18,699,200			64,726,941			2,245,041			3,137,166

Net realized and unrealized gain (loss)		18,110,932			73,821,826			1,689,675			2,461,236

Net increase (decrease) in net assets resulting from operations	$	18,921,289		$	79,312,743		$	1,844,702		$	2,574,022


^aForeign taxes withheld on dividends	$	75,452	$	547,021	$	16,989	$	19,827



franklintempleton.com	The accompanying notes are an integral part of these financial statements. \| Annual Report	311

FRANKLIN TEMPLETON ETF TRUST

FINANCIAL STATEMENTS

Statements of Operations (continued)

for the year ended March 31, 2021



	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	$	135,284		$	514,596		$	142,030		$	103,344
Non-cash dividends		57,413			—			—			—

Total investment income		192,697			514,596			142,030			103,344

Expenses:
Management fees (Note 3a)		6,307			15,040			25,064			2,974

Total expenses		6,307			15,040			25,064			2,974

Net investment income		186,390			499,556			116,966			100,370

Realized and unrealized gains (losses):
Net realized gain (loss) from:
Investments:
Unaffiliated issuers		(166,384	)		(220,469	)		(599,356	)		(136,182	)
In-kind redemptions		230,025			453,769			—			—
Foreign currency transactions		810			16			(17,692	)		(714	)
Futures contracts		—			11,215			8,412			—

Net realized gain (loss)		64,451			244,531			(608,636	)		(136,896	)

Net change in unrealized appreciation (depreciation) on:
Investments:
Unaffiliated issuers		2,486,152			4,944,787			7,171,987			1,456,109
Translation of other assets and liabilities denominated in foreign currencies		(108	)		(81	)		54			10
Futures contracts		—			(5,668	)		(1,682	)		—
Change in deferred taxes on unrealized appreciation		—			—			(425,587	)		—

Net change in unrealized appreciation (depreciation)		2,486,044			4,939,038			6,744,772			1,456,119

Net realized and unrealized gain (loss)		2,550,495			5,183,569			6,136,136			1,319,223

Net increase (decrease) in net assets resulting from operations	$	2,736,885		$	5,683,125		$	6,253,102		$	1,419,593


^aForeign taxes withheld on dividends	$	20,513	$	63	$	41,015	$	11,298



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

FRANKLIN TEMPLETON ETF TRUST

FINANCIAL STATEMENTS

Statements of Operations (continued)

for the year ended March 31, 2021



	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	$	9,780,180		$	243,801		$	67,010		$	87,242
Interest from securities loaned:
Unaffiliated issuers (net of fees and rebates)		1,265			—			—			—

Total investment income		9,781,445			243,801			67,010			87,242

Expenses:
Management fees (Note 3a)		426,118			6,486			4,178			8,324
Other		204			—			1			—

Total expenses		426,322			6,486			4,179			8,324
Expenses waived/paid by affiliates (Note 3c)		(735	)		(93	)		—			—

Net investment income		9,355,858			237,408			62,831			78,918

Realized and unrealized gains (losses):
Net realized gain (loss) from:
Investments:
Unaffiliated issuers		(3,438,190	)		(60,618	)		(74,022	)		(220,223	)
In-kind redemptions		22,279,662			—			—			—
Foreign currency transactions		112,199			1,366			(3,088	)		601
Futures contracts		1,222,151			20,287			(1,187	)		—
Forwards exchange contracts		—			89,616			(5	)		—

Net realized gain (loss)		20,175,822			50,651			(78,302	)		(219,622	)

Net change in unrealized appreciation (depreciation) on:
Investments:
Unaffiliated issuers		124,358,217			751,680			830,251			1,997,245
Translation of other assets and liabilities denominated in foreign currencies		(34,901	)		(1,083	)		1,689			(29	)
Futures contracts		59,073			503			1,305			—
Forward exchange contracts		—			834,321			—			—

Net change in unrealized appreciation (depreciation)		124,382,389			1,585,421			833,245			1,997,216

Net realized and unrealized gain (loss)		144,558,211			1,636,072			754,943			1,777,594

Net increase (decrease) in net assets resulting from operations	$	153,914,069		$	1,873,480		$	817,774		$	1,856,512


^aForeign taxes withheld on dividends	$	1,087,684	$	27,077	$	5,848	$	4,989



franklintempleton.com	The accompanying notes are an integral part of these financial statements. \| Annual Report	313

FRANKLIN TEMPLETON ETF TRUST

FINANCIAL STATEMENTS

Statements of Operations (continued)

for the year ended March 31, 2021



	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	$	639,844		$	61,871		$	51,210		$	643,897
Non-cash dividends		—			—			55,586			—

Total investment income		639,844			61,871			106,796			643,897

Expenses:
Management fees (Note 3a)		19,577			9,660			3,952			26,858
Other		—			—			—			24

Total expenses		19,577			9,660			3,952			26,882
Expenses waived/paid by affiliates (Note 3c)		(2	)		—			—			—

Net investment income		620,269			52,211			102,844			617,015

Realized and unrealized gains (losses):
Net realized gain (loss) from:
Investments:
Unaffiliated issuers		(312,682	)		9,397			(139,125	)		(619,268	)
In-kind redemptions		1,040,188			—			—			—
Foreign currency transactions		(7,441	)		(74	)		724			(24,159	)
Futures contracts		—			—			—			50,471

Net realized gain (loss)		720,065			9,323			(138,401	)		(592,956	)

Net change in unrealized appreciation (depreciation) on:
Investments:
Unaffiliated issuers		3,654,980			1,013,316			1,271,779			14,528,737
Translation of other assets and liabilities denominated in foreign currencies		89			4			(144	)		(12,225	)
Futures contracts		—			—			—			20,095

Net change in unrealized appreciation (depreciation)		3,655,069			1,013,320			1,271,635			14,536,607

Net realized and unrealized gain (loss)		4,375,134			1,022,643			1,133,234			13,943,651

Net increase (decrease) in net assets resulting from operations	$	4,995,403		$	1,074,854		$	1,236,078		$	14,560,666


^aForeign taxes withheld on dividends	$	72,027	$	2,756	$	9,909	$	126,671



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

FRANKLIN TEMPLETON ETF TRUST

FINANCIAL STATEMENTS

Statements of Operations (continued)

for the year ended March 31, 2021



	Franklin FTSE Switzerland ETF			Franklin FTSE Taiwan ETF			Franklin FTSE United Kingdom ETF
Investment income:
Dividends: (net of foreign taxes)^a
Unaffiliated issuers	$	1,038,350		$	504,471		$	4,294,400
Income from securities loaned: (Note 1d)
Unaffiliated issuers (net of fees and rebates)		—			—			4,547

Total investment income		1,038,350			504,471			4,298,947

Expenses:
Management fees (Note 3a)		29,032			39,500			95,057

Total expenses		29,032			39,500			95,057
Expenses waived/paid by affiliates (Note 3c)		—			—			(55	)

Net investment income		1,009,318			464,971			4,203,945

Realized and unrealized gains (losses):
Net realized gain (loss) from:
Investments:
Unaffiliated issuers		(234,700	)		9,393			(3,102,478	)
In-kind redemptions		2,126,580			—			(3,309,048	)
Foreign currency transactions		3,659			1,631			8,754
Futures contracts		91,800			31,667			164,097

Net realized gain (loss)		1,987,339			42,691			(6,238,675	)

Net change in unrealized appreciation (depreciation) on:
Investments:
Unaffiliated issuers		5,497,760			10,936,233			31,054,987
Translation of other assets and liabilities denominated in foreign currencies		(3,224	)		(385	)		(2,162	)
Futures contracts		(10,257	)		—			(84,667	)

Net change in unrealized appreciation (depreciation)		5,484,279			10,935,848			30,968,158

Net realized and unrealized gain (loss)		7,471,618			10,978,539			24,729,483

Net increase (decrease) in net assets resulting from operations	$	8,480,936		$	11,443,510		$	28,933,428


^aForeign taxes withheld on dividends	$	162,054	$	137,968	$	39,785



franklintempleton.com	The accompanying notes are an integral part of these financial statements. \| Annual Report	315

FRANKLIN TEMPLETON ETF TRUST

FINANCIAL STATEMENTS

Statements of Changes in Net Assets



	Franklin FTSE Asia ex Japan ETF						Franklin FTSE Australia ETF

	Year Ended March 31, 2021			Year Ended March 31, 2020			Year Ended March 31, 2021			Year Ended March 31, 2020
Increase (decrease) in net assets:
Operations:
Net investment income	$	376,018		$	395,662		$	504,912		$	468,776
Net realized gain (loss)		(291,780	)		(413,776	)		407,134			203,043
Net change in unrealized appreciation (depreciation)		7,262,830			(2,354,251	)		6,448,995			(3,514,826	)

Net increase (decrease) in net assets resulting from operations		7,347,068			(2,372,365	)		7,361,041			(2,843,007	)

Distributions to shareholders: (Note 1f)		(347,651	)		(403,670	)		(369,523	)		(500,460	)

Capital share transactions: (Note 2)		12,605,123			—			8,483,275			3,774,628

Net increase (decrease) in net assets		19,604,540			(2,776,035	)		15,474,793			431,161
Net assets:
Beginning of year		14,712,036			17,488,071			7,820,276			7,389,115

End of year	$	34,316,576		$	14,712,036		$	23,295,069		$	7,820,276



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

FRANKLIN TEMPLETON ETF TRUST

FINANCIAL STATEMENTS

Statements of Changes in Net Assets (continued)



	Franklin FTSE Brazil ETF						Franklin FTSE Canada ETF

	Year Ended March 31, 2021			Year Ended March 31, 2020			Year Ended March 31, 2021			Year Ended March 31, 2020
Increase (decrease) in net assets:
Operations:
Net investment income	$	2,583,991		$	2,779,622		$	244,759		$	152,979
Net realized gain (loss)		(25,392,559	)		(6,535,713	)		(81,484	)		34,521
Net change in unrealized appreciation (depreciation)		68,757,511			(95,581,334	)		3,599,762			(1,426,829	)

Net increase (decrease) in net assets resulting from operations		45,948,943			(99,337,425	)		3,763,037			(1,239,329	)

Distributions to shareholders: (Note 1f)		(3,244,165	)		(1,076,875	)		(170,739	)		(139,563	)

Capital share transactions: (Note 2)		(37,747,916	)		182,535,019			15,691,933			1,428,015

Net increase (decrease) in net assets		4,956,862			82,120,719			19,284,231			49,123
Net assets:
Beginning of year		102,699,544			20,578,825			4,876,019			4,826,896

End of year	$	107,656,406		$	102,699,544		$	24,160,250		$	4,876,019



franklintempleton.com	The accompanying notes are an integral part of these financial statements. \| Annual Report	317

FRANKLIN TEMPLETON ETF TRUST

FINANCIAL STATEMENTS

Statements of Changes in Net Assets (continued)



	Franklin FTSE China ETF						Franklin FTSE Europe ETF

	Year Ended March 31, 2021			Year Ended March 31, 2020			Year Ended March 31, 2021			Year Ended March 31, 2020
Increase (decrease) in net assets:
Operations:
Net investment income	$	810,357		$	786,891		$	5,490,917		$	2,748,144
Net realized gain (loss)		(588,268	)		(3,851,985	)		9,094,885			1,544,533
Net change in unrealized appreciation (depreciation)		18,699,200			686,253			64,726,941			(16,683,190	)

Net increase (decrease) in net assets resulting from operations		18,921,289			(2,378,841	)		79,312,743			(12,390,513	)

Distributions to shareholders: (Note 1f)		(880,709	)		(787,837	)		(4,581,765	)		(2,821,950	)

Capital share transactions: (Note 2)		53,934,391			8,753,375			63,039,215			32,209,377

Net increase (decrease) in net assets		71,974,971			5,586,697			137,770,193			16,996,914
Net assets:
Beginning of year		48,807,119			43,220,422			91,356,234			74,359,320

End of year	$	120,782,090		$	48,807,119		$	229,126,427		$	91,356,234



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

FRANKLIN TEMPLETON ETF TRUST

FINANCIAL STATEMENTS

Statements of Changes in Net Assets (continued)



	Franklin FTSE Europe Hedged ETF						Franklin FTSE France ETF

	Year Ended March 31, 2021			Year Ended March 31, 2020			Year Ended March 31, 2021			Year Ended March 31, 2020
Increase (decrease) in net assets:
Operations:
Net investment income	$	155,027		$	146,166		$	112,786		$	100,467
Net realized gain (loss)		(555,366	)		315,995			(675,930	)		(36,345	)
Net change in unrealized appreciation (depreciation)		2,245,041			(899,755	)		3,137,166			(2,635,032	)

Net increase (decrease) in net assets resulting from operations		1,844,702			(437,594	)		2,574,022			(2,570,910	)

Distributions to shareholders: (Note 1f)		(93,163	)		(294,228	)		(109,487	)		(86,176	)

Capital share transactions: (Note 2)		9,846,602			—			(4,055,531	)		8,972,173

Net increase (decrease) in net assets		11,598,141			(731,822	)		(1,590,996	)		6,315,087
Net assets:
Beginning of year		3,830,985			4,562,807			8,701,509			2,386,422

End of year	$	15,429,126		$	3,830,985		$	7,110,513		$	8,701,509



franklintempleton.com	The accompanying notes are an integral part of these financial statements. \| Annual Report	319

FRANKLIN TEMPLETON ETF TRUST

FINANCIAL STATEMENTS

Statements of Changes in Net Assets (continued)



	Franklin FTSE Germany ETF						Franklin FTSE Hong Kong ETF

	Year Ended March 31, 2021			Year Ended March 31, 2020			Year Ended March 31, 2021			Year Ended March 31, 2020
Increase (decrease) in net assets:
Operations:
Net investment income	$	186,390		$	108,392		$	499,556		$	561,766
Net realized gain (loss)		64,451			(95,320	)		244,531			347,250
Net change in unrealized appreciation (depreciation)		2,486,044			(983,793	)		4,939,038			(5,052,670	)

Net increase (decrease) in net assets resulting from operations		2,736,885			(970,721	)		5,683,125			(4,143,654	)

Distributions to shareholders: (Note 1f)		(182,573	)		(114,909	)		(524,795	)		(569,121	)

Capital share transactions: (Note 2)		2,356,392			1,127,565			(3,730,050	)		28,395

Net increase (decrease) in net assets		4,910,704			41,935			1,428,280			(4,684,380	)
Net assets:
Beginning of year		4,182,100			4,140,165			15,433,317			20,117,697

End of year	$	9,092,804		$	4,182,100		$	16,861,597		$	15,433,317



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

FRANKLIN TEMPLETON ETF TRUST

FINANCIAL STATEMENTS

Statements of Changes in Net Assets (continued)



	Franklin FTSE India ETF						Franklin FTSE Italy ETF

	Year Ended March 31, 2021			Year Ended March 31, 2020			Year Ended March 31, 2021			Year Ended March 31, 2020
Increase (decrease) in net assets:
Operations:
Net investment income	$	116,966		$	142,242		$	100,370		$	422,097
Net realized gain (loss)		(608,636	)		(604,754	)		(136,896	)		(1,684,080	)
Net change in unrealized appreciation (depreciation)		6,744,772			(2,727,721	)		1,456,119			(1,387,475	)

Net increase (decrease) in net assets resulting from operations		6,253,102			(3,190,233	)		1,419,593			(2,649,458	)

Distributions to shareholders: (Note 1f)		(92,142	)		(83,995	)		(86,540	)		(414,228	)

Capital share transactions: (Note 2)		8,593,234			5,057,008			—			(4,705,377	)

Net increase (decrease) in net assets		14,754,194			1,782,780			1,333,053			(7,769,063	)
Net assets:
Beginning of year		8,789,954			7,007,174			2,641,320			10,410,383

End of year	$	23,544,148		$	8,789,954		$	3,974,373		$	2,641,320



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FINANCIAL STATEMENTS

Statements of Changes in Net Assets (continued)



	Franklin FTSE Japan ETF						Franklin FTSE Japan Hedged ETF

	Year Ended March 31, 2021			Year Ended March 31, 2020			Year Ended March 31, 2021		Year Ended March 31, 2020
Increase (decrease) in net assets:
Operations:
Net investment income	$	9,355,858		$	5,988,980		$	237,408	$	104,775
Net realized gain (loss)		20,175,822			(93,823	)		50,651		(1,599,327	)
Net change in unrealized appreciation (depreciation)		124,382,389			(46,840,847	)		1,585,421		1,013,532

Net increase (decrease) in net assets resulting from operations		153,914,069			(40,945,690	)		1,873,480		(481,020	)

Distributions to shareholders: (Note 1f)		(8,307,221	)		(5,496,937	)		—		—

Capital share transactions: (Note 2)		137,476,616			72,087,879			18,420,312		(9,119,221	)

Net increase (decrease) in net assets		283,083,464			25,645,252			20,293,792		(9,600,241	)
Net assets:
Beginning of year		315,850,656			290,205,404			4,269,394		13,869,635

End of year	$	598,934,120		$	315,850,656		$	24,563,186	$	4,269,394



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FINANCIAL STATEMENTS

Statements of Changes in Net Assets (continued)



	Franklin FTSE Latin America ETF						Franklin FTSE Mexico ETF

	Year Ended March 31, 2021			Year Ended March 31, 2020			Year Ended March 31, 2021			Year Ended March 31, 2020
Increase (decrease) in net assets:
Operations:
Net investment income	$	62,831		$	77,224		$	78,918		$	128,515
Net realized gain (loss)		(78,302	)		(60,001	)		(219,622	)		(297,482	)
Net change in unrealized appreciation (depreciation)		833,245			(1,047,301	)		1,997,216			(1,247,853	)

Net increase (decrease) in net assets resulting from operations		817,774			(1,030,078	)		1,856,512			(1,416,820	)

Distributions to shareholders: (Note 1f)		(50,024	)		(90,264	)		(79,915	)		(134,178	)

Capital share transactions: (Note 2)		2,191,582			—			888,685			—

Net increase (decrease) in net assets		2,959,332			(1,120,342	)		2,665,282			(1,550,998	)
Net assets:
Beginning of year		1,520,368			2,640,710			2,870,620			4,421,618

End of year	$	4,479,700		$	1,520,368		$	5,535,902		$	2,870,620



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FRANKLIN TEMPLETON ETF TRUST

FINANCIAL STATEMENTS

Statements of Changes in Net Assets (continued)



	Franklin FTSE Russia ETF						Franklin FTSE Saudi Arabia ETF

	Year Ended March 31, 2021			Year Ended March 31, 2020			Year Ended March 31, 2021			Year Ended March 31, 2020
Increase (decrease) in net assets:
Operations:
Net investment income	$	620,269		$	1,025,691		$	52,211		$	89,405
Net realized gain (loss)		720,065			(217,317	)		9,323			(62,860	)
Net change in unrealized appreciation (depreciation)		3,655,069			(3,085,622	)		1,013,320			(717,507	)

Net increase (decrease) in net assets resulting from operations		4,995,403			(2,277,248	)		1,074,854			(690,962	)

Distributions to shareholders: (Note 1f)		(587,880	)		(1,112,109	)		(56,892	)		(82,840	)

Capital share transactions: (Note 2)		(6,853,353	)		4,946,037			—			—

Net increase (decrease) in net assets		(2,445,830	)		1,556,680			1,017,962			(773,802	)
Net assets:
Beginning of year		13,239,695			11,683,015			2,015,077			2,788,879

End of year	$	10,793,865		$	13,239,695		$	3,033,039		$	2,015,077



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FINANCIAL STATEMENTS

Statements of Changes in Net Assets (continued)



	Franklin FTSE South Africa ETF						Franklin FTSE South Korea ETF

	Year Ended March 31, 2021			Year Ended March 31, 2020			Year Ended March 31, 2021			Year Ended March 31, 2020
Increase (decrease) in net assets:
Operations:
Net investment income	$	102,844		$	265,425		$	617,015		$	262,645
Net realized gain (loss)		(138,401	)		(85,547	)		(592,956	)		(2,031,597	)
Net change in unrealized appreciation (depreciation)		1,271,635			(1,090,870	)		14,536,607			(1,659,724	)

Net increase (decrease) in net assets resulting from operations		1,236,078			(910,992	)		14,560,666			(3,428,676	)

Distributions to shareholders: (Note 1f)		(95,139	)		(269,501	)		(364,846	)		(322,884	)

Capital share transactions: (Note 2)		—			—			37,207,699			(1,634,635	)

Net increase (decrease) in net assets		1,140,939			(1,180,493	)		51,403,519			(5,386,195	)
Net assets:
Beginning of year		1,481,304			2,661,797			11,562,271			16,948,466

End of year	$	2,622,243		$	1,481,304		$	62,965,790		$	11,562,271



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FRANKLIN TEMPLETON ETF TRUST

FINANCIAL STATEMENTS

Statements of Changes in Net Assets (continued)



	Franklin FTSE Switzerland ETF						Franklin FTSE Taiwan ETF

	Year Ended March 31, 2021			Year Ended March 31, 2020			Year Ended March 31, 2021			Year Ended March 31, 2020
Increase (decrease) in net assets:
Operations:
Net investment income	$	1,009,318		$	433,186		$	464,971		$	531,999
Net realized gain (loss)		1,987,339			(145,095	)		42,691			(67,049	)
Net change in unrealized appreciation (depreciation)		5,484,279			(4,242,900	)		10,935,848			(872,010	)

Net increase (decrease) in net assets resulting from operations		8,480,936			(3,954,809	)		11,443,510			(407,060	)

Distributions to shareholders: (Note 1f)		(943,297	)		(65,702	)		(471,993	)		(520,726	)

Capital share transactions: (Note 2)		6,819,576			35,847,030			8,019,492			—

Net increase (decrease) in net assets		14,357,215			31,826,519			18,991,009			(927,786	)
Net assets:
Beginning of year		34,212,533			2,386,014			13,905,830			14,833,616

End of year	$	48,569,748		$	34,212,533		$	32,896,839		$	13,905,830



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FINANCIAL STATEMENTS

Statements of Changes in Net Assets (continued)



	Franklin FTSE United Kingdom ETF

	Year Ended March 31, 2021			Year Ended March 31, 2020
Increase (decrease) in net assets:
Operations:
Net investment income	$	4,203,945		$	1,830,118
Net realized gain (loss)		(6,238,675	)		(1,808,811	)
Net change in unrealized appreciation (depreciation)		30,968,158			(29,641,625	)

Net increase (decrease) in net assets resulting from operations		28,933,428			(29,620,318	)

Distributions to shareholders: (Note 1f)		(2,701,500	)		(1,337,064	)

Capital share transactions: (Note 2)		89,816,466			91,505,345

Net increase (decrease) in net assets		116,048,394			60,547,963
Net assets:
Beginning of year		89,624,184			29,076,221

End of year	$	205,672,578		$	89,624,184



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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 an open-end management investment company, consisting of forty-five 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

The Funds may utilize independent pricing services, quotations from securities and financial instrument dealers, and other market sources to determine fair value.

Equity securities and derivative financial instruments listed on an exchange or on the NASDAQ National Market System are valued at the last quoted sale price or the official closing price of the day, respectively. Foreign equity securities are valued as of the close of trading on the foreign stock exchange on which the security is primarily traded or as of 4 p.m. Eastern time. The value is then converted into its U.S. dollar equivalent at the foreign exchange rate in effect at 4 p.m. London time on the day that the value of the security is determined. Over-the-counter (OTC) securities are valued within the range of the most recent quoted bid and ask prices. Securities that trade in multiple markets or on multiple exchanges are valued according to the broadest and most representative market. Certain equity securities are valued based upon fundamental characteristics or relationships to similar securities.

When the last day of the reporting period is a non-business day, certain foreign markets may be open on those days that



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NOTES TO FINANCIAL STATEMENTS

1. Organization and Significant Accounting Policies (continued)

a. Financial Instrument Valuation (continued)

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



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NOTES TO FINANCIAL STATEMENTS

1. Organization and Significant Accounting Policies (continued)

c. Derivative Financial Instruments (continued)

with the applicable counterparty exceeds the minimum transfer amount, which typically ranges from $100,000 to $250,000, and can vary depending on the counterparty and the type of 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 counterparty non-performance.

See Note 8 regarding other derivative information.

d. Securities Lending

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



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NOTES TO FINANCIAL STATEMENTS

1. Organization and Significant Accounting Policies (continued)

f. Security Transactions, Investment Income, Expenses and Distributions

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

h. Guarantees and Indemnifications

2. Shares of Beneficial Interest



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NOTES TO FINANCIAL STATEMENTS

2. Shares of Beneficial Interest (continued)

At March 31, 2021, there were an unlimited number of shares authorized (without par value). Transactions in the Funds’ shares were as follows:



	Franklin FTSE Asia ex Japan ETF

	Year Ended March 31, 2021						Year Ended March 31, 2020

	Shares			Amount			Shares			Amount
Shares sold		400,000		$	12,605,123			—		$	—

Net increase (decrease)		400,000		$	12,605,123			—		$	—


	Franklin FTSE Australia ETF

	Year Ended March 31, 2021						Year Ended March 31, 2020

	Shares			Amount			Shares			Amount
Shares sold		500,000		$	11,932,219			250,000		$	6,380,606
Shares redeemed		(150,000	)		(3,448,944	)		(100,000	)		(2,605,978	)

Net increase (decrease)		350,000		$	8,483,275			150,000		$	3,774,628


	Franklin FTSE Brazil ETF

	Year Ended March 31, 2021						Year Ended March 31, 2020

	Shares			Amount			Shares			Amount
Shares sold		600,000		$	12,225,064			6,800,000		$	194,991,129
Shares redeemed		(2,500,000	)		(49,972,980	)		(500,000	)		(12,456,110	)

Net increase (decrease)		(1,900,000	)	$	(37,747,916	)		6,300,000		$	182,535,019


	Franklin FTSE Canada ETF

	Year Ended March 31, 2021						Year Ended March 31, 2020

	Shares			Amount			Shares			Amount
Shares sold		550,000		$	15,691,933			100,000		$	2,645,197
Shares redeemed		—			—			(50,000	)		(1,217,182	)

Net increase (decrease)		550,000		$	15,691,933			50,000		$	1,428,015


	Franklin FTSE China ETF

	Year Ended March 31, 2021						Year Ended March 31, 2020

	Shares			Amount			Shares			Amount
Shares sold		1,800,000		$	58,841,102			600,000		$	13,290,874
Shares redeemed		(200,000	)		(4,906,711	)		(200,000	)		(4,537,499	)

Net increase (decrease)		1,600,000		$	53,934,391			400,000		$	8,753,375



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NOTES TO FINANCIAL STATEMENTS

2. Shares of Beneficial Interest (continued)



	Franklin FTSE Europe ETF

	Year Ended March 31, 2021						Year Ended March 31, 2020

	Shares			Amount			Shares			Amount
Shares sold		5,200,000		$	101,611,880			3,600,000		$	79,020,679
Shares redeemed		(1,600,000	)		(38,572,665	)		(2,000,000	)		(46,811,302	)

Net increase (decrease)		3,600,000		$	63,039,215			1,600,000		$	32,209,377


	Franklin FTSE Europe Hedged ETF

	Year Ended March 31, 2021						Year Ended March 31, 2020

	Shares			Amount			Shares			Amount
Shares sold		400,000		$	9,846,602			—		$	—

Net increase (decrease)		400,000		$	9,846,602			—		$	—


	Franklin FTSE France ETF

	Year Ended March 31, 2021						Year Ended March 31, 2020

	Shares			Amount			Shares			Amount
Shares sold		—		$	—			350,000		$	8,972,173
Shares redeemed		(200,000	)		(4,055,531	)		—			—

Net increase (decrease)		(200,000	)	$	(4,055,531	)		350,000		$	8,972,173


	Franklin FTSE Germany ETF

	Year Ended March 31, 2021						Year Ended March 31, 2020

	Shares			Amount			Shares			Amount
Shares sold		150,000		$	3,514,675			50,000		$	1,127,565
Shares redeemed		(50,000	)		(1,158,283	)		—			—

Net increase (decrease)		100,000		$	2,356,392			50,000		$	1,127,565


	Franklin FTSE Hong Kong ETF

	Year Ended March 31, 2021						Year Ended March 31, 2020

	Shares			Amount			Shares			Amount
Shares sold		—		$	—			300,000		$	7,218,089
Shares redeemed		(150,000	)		(3,730,050	)		(300,000	)		(7,189,694	)

Net increase (decrease)		(150,000	)	$	(3,730,050	)		—		$	28,395



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NOTES TO FINANCIAL STATEMENTS

2. Shares of Beneficial Interest (continued)



	Franklin FTSE India ETF

	Year Ended March 31, 2021						Year Ended March 31, 2020

	Shares			Amount			Shares			Amount
Shares sold		350,000		$	9,485,085			400,000		$	8,528,590
Shares redeemed		(50,000	)		(891,851	)		(150,000	)		(3,471,582	)

Net increase (decrease)		300,000		$	8,593,234			250,000		$	5,057,008


	Franklin FTSE Italy ETF

	Year Ended March 31, 2021						Year Ended March 31, 2020

	Shares			Amount			Shares			Amount
Shares sold		—		$	—			50,000		$	1,118,853
Shares redeemed		—			—			(350,000	)		(5,824,230	)

Net increase (decrease)		—		$	—			(300,000	)	$	(4,705,377	)


	Franklin FTSE Japan ETF

	Year Ended March 31, 2021						Year Ended March 31, 2020

	Shares			Amount			Shares			Amount
Shares sold		7,800,000		$	210,140,358			7,800,000		$	202,804,002
Shares redeemed		(2,400,000	)		(72,663,742	)		(5,400,000	)		(130,716,123	)

Net increase (decrease)		5,400,000		$	137,476,616			2,400,000		$	72,087,879


	Franklin FTSE Japan Hedged ETF

	Year Ended March 31, 2021						Year Ended March 31, 2020

	Shares			Amount			Shares			Amount
Shares sold		600,000		$	18,420,312			—		$	—
Shares redeemed		—			—			(400,000	)		(9,119,221	)

Net increase (decrease)		600,000		$	18,420,312			(400,000	)	$	(9,119,221	)


	Franklin FTSE Latin America ETF

	Year Ended March 31, 2021						Year Ended March 31, 2020

	Shares			Amount			Shares			Amount
Shares sold		100,000		$	2,191,582			—		$	—

Net increase (decrease)		100,000		$	2,191,582			—		$	—


	Franklin FTSE Mexico ETF

	Year Ended March 31, 2021						Year Ended March 31, 2020

	Shares			Amount			Shares			Amount
Shares sold		50,000		$	888,685			—		$	—

Net increase (decrease)		50,000		$	888,685			—		$	—



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NOTES TO FINANCIAL STATEMENTS

2. Shares of Beneficial Interest (continued)



	Franklin FTSE Russia ETF

	Year Ended March 31, 2021						Year Ended March 31, 2020

	Shares			Amount			Shares			Amount
Shares sold		100,000		$	2,631,824			200,000		$	4,946,037
Shares redeemed		(400,000	)		(9,485,177	)		—			—

Net increase (decrease)		(300,000	)	$	(6,853,353	)		200,000		$	4,946,037


	Franklin FTSE South Korea ETF

	Year Ended March 31, 2021						Year Ended March 31, 2020

	Shares			Amount			Shares			Amount
Shares sold		1,300,000		$	37,207,699			100,000		$	2,002,593
Shares redeemed		—			—			(200,000	)		(3,637,228	)

Net increase (decrease)		1,300,000		$	37,207,699			(100,000	)	$	(1,634,635	)


	Franklin FTSE Switzerland ETF

	Year Ended March 31, 2021						Year Ended March 31, 2020

	Shares			Amount			Shares			Amount
Shares sold		1,000,000		$	30,006,453			1,400,000		$	37,960,491
Shares redeemed		(800,000	)		(23,186,877	)		(100,000	)		(2,113,461	)

Net increase (decrease)		200,000		$	6,819,576			1,300,000		$	35,847,030


	Franklin FTSE Taiwan ETF

	Year Ended March 31, 2021						Year Ended March 31, 2020

	Shares			Amount			Shares			Amount
Shares sold		200,000		$	8,019,492			—		$	—

Net increase (decrease)		200,000		$	8,019,492			—		$	—


	Franklin FTSE United Kingdom ETF

	Year Ended March 31, 2021						Year Ended March 31, 2020

	Shares			Amount			Shares			Amount
Shares sold		5,250,000		$	119,960,341			4,800,000		$	111,979,995
Shares redeemed		(1,600,000	)		(30,143,875	)		(1,000,000	)		(20,474,650	)

Net increase (decrease)		3,650,000		$	89,816,466			3,800,000		$	91,505,345



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NOTES TO FINANCIAL STATEMENTS

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 non-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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NOTES TO FINANCIAL STATEMENTS

3. Transactions with Affiliates (continued)

b. Administrative Fees

c. Investments in Affiliated Management Investment Companies



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

Franklin FTSE Asia ex Japan ETF
Non-Controlled Affiliates										Income from securities loaned
Institutional Fiduciary Trust Money Market Portfolio 0.01%	$	5,040	$	547,640	$	(493,870	)	$	—	$	—	$	58,810		58,810	$	—

Franklin FTSE China ETF
Non-Controlled Affiliates										Income from securities loaned
Institutional Fiduciary Trust Money Market Portfolio 0.01%	$	29,400	$	9,149,198	$	(8,661,379	)	$	—	$	—	$	517,219		517,219	$	—

Franklin FTSE Europe ETF
Non-Controlled Affiliates										Income from securities loaned
Institutional Fiduciary Trust Money Market Portfolio 0.01%	$	—	$	695,778	$	(631,578	)	$	—	$	—	$	64,200		64,200	$	—

Franklin FTSE Europe Hedged ETF
Non-Controlled Affiliates										Dividend Income
Institutional Fiduciary Trust Money Market Portfolio 0.01%	$	1	$	496,239	$	(338,937	)	$	—	$	—	$	157,303		157,303	$	—

Franklin FTSE Japan ETF
Non-Controlled Affiliates												Dividend Income
Institutional Fiduciary Trust Money Market Portfolio 0.01%	$	124,941	$	10,802,737	$	(10,635,325	)	$	—	$	—	$	292,353		292,353	$	—

Non-Controlled Affiliates											Income from securities loaned
Institutional Fiduciary Trust Money Market Portfolio 0.01%	$	—	$	1,170,275	$	(1,170,275	)	$	—	$	—	$	—		—	$	—

Total Affiliated Securities	$	124,941	$	11,973,012	$	(11,805,600	)	$	—	$	—	$	292,353		292,353	$	—


Franklin FTSE Japan Hedged ETF
Non-Controlled Affiliates												Dividend Income
Institutional Fiduciary Trust Money Market Portfolio 0.01%	$	—	$	700,262	$	(686,883	)	$	—	$	—	$	13,379		13,379	$	—

Franklin FTSE United Kingdom ETF
Non-Controlled Affiliates										Income from securities loaned
Institutional Fiduciary Trust Money Market Portfolio 0.01%	$	—	$	1,064,781	$	(834,731	)	$	—	$	—	$	230,050		230,050	$	—



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NOTES TO FINANCIAL STATEMENTS

3. Transactions with Affiliates (continued)

d. Other Affiliated Transactions

At March 31, 2021, the shares of the Funds were owned by the following entities:



Funds	Shares		Percentage of Outstanding Shares^a
Franklin FTSE Brazil ETF
Franklin Resources Inc.		1,630,000		31.3%

Franklin FTSE Canada ETF
Franklin Resources Inc.		250,000		31.3%

Franklin FTSE China ETF
Franklin Moderate Allocation Fund		245,150		6.4%
Franklin Growth Allocation Fund		250,050		6.6%

		495,200		13.0%

Franklin FTSE Europe ETF
Franklin Moderate Allocation Fund		976,921		11.6%
Franklin Growth Allocation Fund		1,072,712		12.8%
Franklin LifeSmart™ 2020 – 2055 Retirement Target Funds		551,581		6.6%
Franklin 529 Portfolios		4,955,601		59.0%

		7,556,815		90.0%

Franklin FTSE Europe Hedged ETF
Franklin Resources Inc.		50,000		8.3%

Franklin FTSE Italy ETF
Franklin Resources Inc.		39,000		26.0%

Franklin FTSE Japan ETF
Franklin 529 Portfolios		2,192,844		11.1%

Franklin FTSE Japan Hedged ETF
Franklin Resources Inc.		75,000		9.4%

Franklin FTSE Mexico ETF
Franklin Resources Inc.		28,000		11.2%

Franklin FTSE Saudi Arabia ETF
Franklin Resources Inc.		46,000		46.0%

Franklin FTSE South Africa ETF
Franklin Resources Inc.		31,000		31.0%

Franklin FTSE Switzerland ETF
Franklin Resources Inc.		525,000		32.8%

Franklin FTSE United Kingdom ETF
Franklin Managed Income Fund		1,500,000		17.3%

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

4. Income Taxes

For tax purposes, capital losses may be carried over to offset future capital gains. At March 31, 2021, the capital loss carryforwards were as follows:



	Franklin FTSE Asia ex Japan ETF		Franklin FTSE Australia ETF		Franklin FTSE Brazil ETF		Franklin FTSE Canada ETF
Capital loss carryforwards not subject to expiration:
Long term	$	674,816	$	272,671	$	5,352,471	$	122,400
Short term		167,167		—		33,013,506		67,109

Total capital loss carryforwards	$	841,983	$	272,671	$	38,365,977	$	189,509



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4. Income Taxes (continued)



	Franklin FTSE China ETF		Franklin FTSE Europe ETF		Franklin FTSE Europe Hedged ETF		Franklin FTSE France ETF
Capital loss carryforwards not subject to expiration:
Long term	$	4,744,973	$	2,725,698	$	304,140	$	56,202
Short term		665,807		271,736		262,548		16,219

Total capital loss carryforwards	$	5,410,780	$	2,997,434	$	566,688*	$	72,421


*Includes short term $262,548 and long term $134,962 capital loss carryforwards respectively from an ownership change on the Franklin FTSE Europe Hedged ETF Fund, which may be carried over to offset future capital gains, subject to certain loss limitations.

	Franklin FTSE Germany ETF		Franklin FTSE Hong Kong ETF		Franklin FTSE India ETF		Franklin FTSE Italy ETF
Capital loss carryforwards not subject to expiration:
Long term	$	200,120	$	281,338	$	900,931	$	272,988
Short term		52,664		—		108,428		—

Total capital loss carryforwards	$	252,784	$	281,338	$	1,009,359	$	272,988


	Franklin FTSE Japan ETF		Franklin FTSE Japan Hedged ETF		Franklin FTSE Latin America ETF		Franklin FTSE Mexico ETF
Capital loss carryforwards not subject to expiration:
Long term	$	4,327,223	$	—	$	96,064	$	514,888
Short term		—		478,757		11,678		40,089

Total capital loss carryforwards	$	4,327,223	$	478,757	$	107,742	$	554,977


	Franklin FTSE Russia ETF		Franklin FTSE Saudi Arabia ETF		Franklin FTSE South Africa ETF		Franklin FTSE South Korea ETF
Capital loss carryforwards not subject to expiration:
Long term	$	313,403	$	33,928	$	175,862	$	1,848,703
Short term		155,543		10,784		19,349		829,396

Total capital loss carryforwards	$	468,946	$	44,712	$	195,211	$	2,678,099


During the year ended March 31, 2021, Franklin FTSE Saudi Arabia EFT utilized $13,252 as capital loss carryforward.

	Franklin FTSE Switzerland ETF		Franklin FTSE Taiwan ETF		Franklin FTSE United Kingdom ETF
Capital loss carryforwards not subject to expiration:
Long term	$	137,486	$	24,172	$	2,181,372
Short term		170,115		10,135		1,093,024

Total capital loss carryforwards	$	307,601	$	34,307	$	3,274,396

For tax purposes, the Funds may elect to defer any portion of late-year ordinary loss to the first day of the following fiscal year. At March 31, 2021, the deferred losses were as follows:



	Franklin FTSE China ETF			Franklin FTSE Europe Hedged ETF
Late-year ordinary losses	$	(16,526	)	$	(52,163	)



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4. Income Taxes (continued)

The tax character of distributions paid during the years ended March 31, 2021 and 2022, were as follows:



	Franklin FTSE Asia ex Japan ETF				Franklin FTSE Australia ETF

	2021		2020		2021		2020
Distributions paid from ordinary income	$	347,651	$	403,670	$	369,523	$	500,460


	Franklin FTSE Brazil ETF				Franklin FTSE Canada ETF

	2021		2020		2021		2020
Distributions paid from ordinary income	$	3,244,165	$	1,076,875	$	170,739	$	139,563


	Franklin FTSE China ETF				Franklin FTSE Europe ETF

	2021		2020		2021		2020
Distributions paid from ordinary income	$	880,709	$	787,837	$	4,581,765	$	2,821,950


	Franklin FTSE Europe Hedged ETF				Franklin FTSE France ETF

	2021		2020		2021		2020
Distributions paid from ordinary income	$	93,163	$	294,228	$	109,487	$	86,176


	Franklin FTSE Germany ETF				Franklin FTSE Hong Kong ETF

	2021		2020		2021		2020
Distributions paid from ordinary income	$	182,573	$	114,909	$	524,795	$	569,121


	Franklin FTSE India ETF				Franklin FTSE Italy ETF

	2021		2020		2021		2020
Distributions paid from ordinary income	$	92,142	$	83,995	$	86,540	$	414,228


	Franklin FTSE Japan ETF				Franklin FTSE Japan Hedged ETF

	2021		2020		2021		2020
Distributions paid from ordinary income	$	8,307,221	$	5,496,937	$	—	$	—


	Franklin FTSE Latin America ETF				Franklin FTSE Mexico ETF

	2021		2020		2021		2020
Distributions paid from ordinary income	$	50,024	$	90,264	$	79,915	$	134,178


	Franklin FTSE Russia ETF				Franklin FTSE Saudi Arabia ETF

	2021		2020		2021		2020
Distributions paid from ordinary income	$	587,880	$	1,112,109	$	56,892	$	82,840


	Franklin FTSE South Africa ETF				Franklin FTSE South Korea ETF

	2021		2020		2021		2020
Distributions paid from ordinary income	$	95,139	$	269,501	$	364,846	$	322,884


	Franklin FTSE Switzerland ETF				Franklin FTSE Taiwan ETF

	2021		2020		2021		2020
Distributions paid from ordinary income	$	943,297	$	65,702	$	471,993	$	520,726


	Franklin FTSE United Kingdom ETF

	2021		2020
Distributions paid from ordinary income	$	2,701,500	$	1,337,064



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4. Income Taxes (continued)

At March 31, 2021, 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	$	30,608,496		$	20,959,803		$	136,389,157		$	22,058,832

Unrealized appreciation	$	5,543,103		$	3,088,051		$	8,613,795		$	2,206,174
Unrealized depreciation		(1,901,293	)		(809,518	)		(37,776,189	)		(126,885	)

Net unrealized appreciation (depreciation)	$	3,641,810		$	2,278,533		$	(29,162,394	)	$	2,079,289

Distribution earnings – undistributed ordinary Income	$	81,614		$	316,825		$	1,078,262		$	118,565


	Franklin FTSE China ETF			Franklin FTSE Europe ETF			Franklin FTSE Europe Hedged ETF			Franklin FTSE France ETF
Cost of investments	$	105,390,272		$	188,327,036		$	15,407,155		$	6,743,361

Unrealized appreciation	$	18,786,003		$	46,780,736		$	336,570		$	852,497
Unrealized depreciation		(3,172,947	)		(6,565,875	)		(233,834	)		(489,947	)

Net unrealized appreciation (depreciation)	$	15,613,056		$	40,214,861		$	102,736		$	362,550

Distribution earnings – undistributed ordinary Income	$	—		$	2,354,003		$	—		$	20,571


	Franklin FTSE Germany ETF			Franklin FTSE Hong Kong ETF			Franklin FTSE India ETF			Franklin FTSE Italy ETF
Cost of investments	$	8,129,375		$	15,293,865		$	19,676,315		$	3,502,893

Unrealized appreciation	$	1,322,631		$	2,892,862		$	4,768,565		$	759,029
Unrealized depreciation		(364,039	)		(1,344,719	)		(476,916	)		(291,795	)

Net unrealized appreciation (depreciation)	$	958,592		$	1,548,143		$	4,291,649		$	467,234

Distribution earnings – undistributed ordinary Income	$	18,683		$	77,827		$	40,896		$	51,492


	Franklin FTSE Japan ETF			Franklin FTSE Japan Hedged ETF			Franklin FTSE Latin America ETF			Franklin FTSE Mexico ETF
Cost of investments	$	552,027,695		$	24,636,350		$	4,727,675		$	5,193,200

Unrealized appreciation	$	68,810,843		$	1,397,494		$	265,721		$	769,673
Unrealized depreciation		(27,521,863	)		(1,913,404	)		(514,564	)		(430,108	)

Net unrealized appreciation (depreciation)	$	41,288,980		$	(515,910	)	$	(248,843	)	$	339,565

Distribution earnings – undistributed ordinary Income	$	6,689,383		$	162,493		$	25,506		$	26,239



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NOTES TO FINANCIAL STATEMENTS

4. Income Taxes (continued)



	Franklin FTSE Russia ETF			Franklin FTSE Saudi Arabia ETF			Franklin FTSE South Africa ETF			Franklin FTSE South Korea ETF
Cost of investments	$	9,785,045		$	2,444,152		$	2,266,547		$	55,446,881

Unrealized appreciation	$	1,217,798		$	601,305		$	670,447		$	9,921,374
Unrealized depreciation		(203,293	)		(17,302	)		(317,468	)		(2,961,752	)

Net unrealized appreciation (depreciation)	$	1,014,505		$	584,003		$	352,979		$	6,959,622

Distribution earnings – undistributed ordinary Income	$	—		$	11,223		$	22,825		$	451,423


	Franklin FTSE Switzerland ETF			Franklin FTSE Taiwan ETF			Franklin FTSE United Kingdom ETF
Cost of investments	$	47,016,733		$	22,374,836		$	203,528,131

Unrealized appreciation	$	2,180,760		$	10,661,137		$	9,893,484
Unrealized depreciation		(1,023,478	)		(184,515	)		(9,308,924	)

Net unrealized appreciation (depreciation)	$	1,157,282		$	10,476,622		$	584,560

Distribution earnings – undistributed ordinary Income	$	452,893		$	52,180		$	2,619,515

5. Investment Transactions

Purchases and sales of investments (excluding short term securities and in-kind transactions, if any) for the year ended March 31, 2021, were as follows:



	Franklin FTSE Asia ex Japan ETF		Franklin FTSE Australia ETF		Franklin FTSE Brazil ETF		Franklin FTSE Canada ETF
Purchases	$	12,393,480	$	1,178,452	$	21,664,348	$	374,912
Sales	$	2,469,128	$	1,068,066	$	60,069,790	$	273,824

	Franklin FTSE China ETF		Franklin FTSE Europe ETF		Franklin FTSE Europe Hedged ETF		Franklin FTSE France ETF
Purchases	$	53,645,792	$	11,594,267	$	871,486	$	317,286
Sales	$	12,241,253	$	10,508,721	$	810,716	$	306,469

	Franklin FTSE Germany ETF		Franklin FTSE Hong Kong ETF		Franklin FTSE India ETF		Franklin FTSE Italy ETF
Purchases	$	400,871	$	2,481,382	$	11,784,776	$	571,710
Sales	$	395,989	$	2,428,479	$	3,178,173	$	569,286



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5. Investment Transactions (continued)



	Franklin FTSE Japan ETF		Franklin FTSE Japan Hedged ETF		Franklin FTSE Latin America ETF		Franklin FTSE Mexico ETF
Purchases	$	30,258,129	$	1,624,544	$	1,920,435	$	786,562
Sales	$	26,716,822	$	489,444	$	231,088	$	785,445

	Franklin FTSE Russia ETF		Franklin FTSE Saudi Arabia ETF		Franklin FTSE South Africa ETF		Franklin FTSE South Korea ETF
Purchases	$	1,926,789	$	440,351	$	238,041	$	39,659,266
Sales	$	1,909,019	$	457,510	$	285,282	$	2,575,233

	Franklin FTSE Switzerland ETF		Franklin FTSE Taiwan ETF		Franklin FTSE United Kingdom ETF
Purchases	$	4,469,246	$	10,229,212	$	8,947,659
Sales	$	4,163,845	$	2,184,689	$	7,672,168

In-kind transactions associated with creation and redemptions for the year ended March 31, 2021, 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	$	2,559,568	$	11,903,656	$	—	$	15,657,636
Value of Securities Delivered^a	$	—	$	3,446,058	$	—	$	—

	Franklin FTSE China ETF		Franklin FTSE Europe ETF		Franklin FTSE Europe Hedged ETF		Franklin FTSE France ETF
Cost of Securities Received	$	16,565,284	$	101,027,432	$	9,724,084	$	—
Value of Securities Delivered^a	$	4,347,962	$	38,198,901	$	—	$	4,050,708

	Franklin FTSE Germany ETF		Franklin FTSE Hong Kong ETF		Franklin FTSE India ETF		Franklin FTSE Italy ETF
Cost of Securities Received	$	3,510,363	$	—	$	—	$	—
Value of Securities Delivered^a	$	1,156,864	$	3,698,468	$	—	$	—

	Franklin FTSE Japan ETF		Franklin FTSE Japan Hedged ETF		Franklin FTSE Latin America ETF		Franklin FTSE Mexico ETF
Cost of Securities Received	$	207,049,429	$	18,077,952	$	520,958	$	888,730
Value of Securities Delivered^a	$	72,341,427	$	—	$		$	—



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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 Securities Received	$	2,625,470	$	—	$	—	$	—
Value of Securities Delivered^a	$	9,462,391	$	—	$	—	$	—

	Franklin FTSE Switzerland ETF		Franklin FTSE Taiwan ETF		Franklin FTSE United Kingdom ETF
Cost of Securities Received	$	29,549,406	$	—	$	119,384,071
Value of Securities Delivered^a	$	22,984,869	$	—	$	29,965,688

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

At March 31, 2021, in connection with securities lending transactions, certain or all Funds loaned investments and received cash collateral as follows:



	Franklin FTSE Asia ex Japan ETF		Franklin FTSE China ETF		Franklin FTSE Europe ETF		Franklin FTSE United Kingdom ETF
Securities lending transactions^a:
Equity investments^b	$	58,810	$	517,219	$	64,200	$	230,050

^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 March 31, 2021, Franklin FTSE Russia ETF had 100.1% of its net assets invested in Russia. The remaining Funds in the Trust did not have significant investment in Russia.



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5. Investment Transactions (continued)

FRANKLIN TEMPLETON ETF TRUST

NOTES TO FINANCIAL STATEMENTS

7. Novel Coronavirus Pandemic

8. Other Derivative Information

At March 31, 2021, 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	$	8,013	^a


Totals		$	—			$	8,013

Franklin FTSE Brazil ETF

Equity contracts	Variation margin on futures contracts	$	13,374	^a	Variation margin on futures contracts	$	—


Totals		$	13,374			$	—

Franklin FTSE China ETF

Equity contracts	Variation margin on futures contracts	$	—		Variation margin on futures contracts	$	5,342	^a


Totals		$	—			$	5,342

Franklin FTSE Europe ETF

Equity contracts	Variation margin on futures contracts	$	5,184		Variation margin on futures contracts	$	—


Totals		$	5,184			$	—

Franklin FTSE Europe Hedged ETF

Foreign exchange contracts	Unrealized appreciation on OTC forward exchange contracts	$	308,612		Unrealized depreciation on OTC forward exchange contracts	$	11,075

Equity contracts	Variation margin on futures contracts		2,183	^a	Variation margin on futures contracts		—


Totals		$	310,795			$	11,075

Franklin FTSE Japan ETF

Equity contracts	Variation margin on futures contracts	$	—		Variation margin on futures contracts	$	3,624	^a


Totals		$	—			$	3,624

Franklin FTSE Japan Hedged ETF

Foreign exchange contracts	Unrealized appreciation on OTC forward exchange contracts	$	847,422		Unrealized depreciation on OTC forward exchange contracts	$	2,167

Equity contracts	Variation margin on futures contracts		389	^a	Variation margin on futures contracts		—


Totals		$	847,811			$	2,167

Franklin FTSE South Korea ETF

Equity contracts	Variation margin on futures contracts	$	2,310	^a	Variation margin on futures contracts	$	—


Totals		$	2,310			$	—



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NOTES TO FINANCIAL STATEMENTS

8. 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 Switzerland ETF

Equity contracts	Variation margin on futures contracts	$	8,660	^a	Variation margin on futures contracts	$	—


Totals		$	8,660			$	—

Franklin FTSE United Kingdom ETF

Equity contracts	Variation margin on futures contracts	$	—		Variation margin on futures contracts	$	7,397	^a


Totals		$	—			$	7,397

For the year ended March 31, 2021, 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	Future contracts	$	—	Future contracts	$	(8,013	)


Totals		$	—		$	(8,013	)

Franklin FTSE Brazil ETF
	Net realized gain (loss) from:			Net change in unrealized appreciation (depreciation) on:

Equity contracts	Future contracts	$	191,949	Future contracts	$	22,807


Totals		$	191,949		$	22,807

Franklin FTSE China ETF
	Net realized gain (loss) from:			Net change in unrealized appreciation (depreciation) on:

Equity contracts	Future contracts	$	44,465	Future contracts	$	(5,342	)


Totals		$	44,465		$	(5,342	)

Franklin FTSE Europe ETF
	Net realized gain (loss) from:			Net change in unrealized appreciation (depreciation) on:

Equity contracts	Future contracts	$	200,727	Future contracts	$	(31,339	)


Totals		$	200,727		$	(31,339	)



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8. 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 Europe Hedged ETF
	Net realized gain (loss) from:				Net change in unrealized appreciation (depreciation) on:

Equity contracts	Future contracts	$	22,397		Future contracts	$	(1,370	)

	Forward exchange contracts	$	(386,312	)	Translation of other assets and liabilities denominated in foreign currencies	$	246,686


Totals		$	(363,915	)		$	245,316

Franklin FTSE Hong Kong ETF
	Net realized gain (loss) from:				Net change in unrealized appreciation (depreciation) on:

Equity contracts	Future contracts	$	11,215		Future contracts	$	(5,668	)


Totals		$	11,215			$	(5,668	)

Franklin FTSE India ETF
	Net realized gain (loss) from:				Net change in unrealized appreciation (depreciation) on:

Equity contracts	Future contracts	$	8,412		Future contracts	$	(1,682	)


Totals		$	8,412			$	(1,682	)

Franklin FTSE Japan ETF
	Net realized gain (loss) from:				Net change in unrealized appreciation (depreciation) on:

Equity contracts	Future contracts	$	1,222,151		Future contracts	$	59,073


Totals		$	1,222,151			$	59,073

Franklin FTSE Japan Hedged ETF
	Net realized gain (loss) from:				Net change in unrealized appreciation (depreciation) on:

Equity contracts	Future contracts	$	20,287		Future contracts	$	503

	Forward exchange contracts		89,616		Translation of other assets and liabilities denominated in foreign currencies		834,321


Totals		$	109,903			$	834,824

Franklin FTSE Latin America ETF
	Net realized gain (loss) from:				Net change in unrealized appreciation (depreciation) on:

Equity contracts	Future contracts	$	(1,187	)	Future contracts	$	1,305

	Forward exchange contracts		(5	)	Translation of other assets and liabilities denominated in foreign currencies		—


Totals		$	(1,192	)		$	1,305



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NOTES TO FINANCIAL STATEMENTS

8. Other Derivative Information (continued)



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

Equity contracts	Future contracts	$	50,471	Future contracts	$	20,095


Totals		$	50,471		$	20,095

Franklin FTSE Switzerland ETF
	Net realized gain (loss) from:			Net change in unrealized appreciation (depreciation) on:

Equity contracts	Future contracts	$	91,800	Future contracts	$	(10,257	)


Totals		$	91,800		$	(10,257	)

Franklin FTSE Taiwan ETF
	Net realized gain (loss) from:			Net change in unrealized appreciation (depreciation) on:

Equity contracts	Future contracts	$	31,667	Future contracts	$	—


Totals		$	31,667		$	—

Franklin FTSE United Kingdom ETF
	Net realized gain (loss) from:			Net change in unrealized appreciation (depreciation) on:

Equity contracts	Future contracts	$	164,097	Future contracts	$	(84,667	)


Totals		$	164,097		$	(84,667	)

For the year ended March 31, 2021, 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	$	13,726	$	483,911	$	124,262	$	566,539

	Franklin FTSE Europe Hedged ETF		Franklin FTSE Hong Kong ETF		Franklin FTSE India ETF		Franklin FTSE Japan ETF
Futures contracts	$	46,518	$	42,824	$	7,215	$	2,616,141
Foreign exchange contracts	$	19,453,033	$	—	$	—	$	—

	Franklin FTSE Japan Hedged ETF		Franklin FTSE Latin America ETF		Franklin FTSE South Korea ETF		Franklin FTSE Switzerland ETF
Futures contracts	$	93,198	$	430	$	182,965	$	207,986
Foreign exchange contracts	$	23,199,922	$	—	$	—	$	—



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8. Other Derivative Information (continued)



	Franklin FTSE Taiwan ETF		Franklin FTSE United Kingdom ETF
Futures contracts	$	50,736	$	489,639

At March 31, 2021, 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	$	308,612	$	(11,075	)


Franklin FTSE Japan Hedged ETF
Foreign exchange contracts	$	847,422	$	(2,167	)

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

At March 31, 2021, 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
BOFA	$	97,880	$	(1,280	)	$	—	$	—	$	96,600
DBAB		35,314		(9,627	)		—		—		25,687
HSBK		58,542		(46	)		—		—		58,496
MSCO		58,324		(71	)		—		—		58,253
UBSW		58,552		(51	)						58,501

Total	$	308,612	$	(11,075	)	$	—	$	—	$	297,537

Franklin FTSE Japan Hedged ETF
DBAB	$	249,974	$	(1,794	)	$	—	$	—	$	248,180
HSBK		247,956		(162	)		—		—		247,794
MSCO		101,443		(82	)		—		—		101,361
UBSW		248,049		(129	)		—		—		247,920

Total	$	847,422	$	(2,167	)	$	—	$	—	$	845,255



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NOTES TO FINANCIAL STATEMENTS

8. Other Derivative Information (continued)

At March 31, 2021, 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^a		Cash Collateral Pledged^a		Net Amount (Not less than zero)
Franklin FTSE Europe Hedged ETF
BOFA	$	1,280	$	(1,280	)	$	—	$	—	$	—
DBAB		9,627		(9,627	)		—		—		—
HSBK		46		(46	)		—		—		—
MSCO		71		(71	)		—		—		—
UBSW		51		(51	)		—		—		—

Total	$	11,075	$	(11,075	)	$	—	$	—	$	—

Franklin FTSE Japan Hedged ETF
DBAB	$	1,794	$	(1,794	)	$	—	$	—	$	—
HSBK		162		(162	)		—		—		—
MSCO		82		(82	)		—		—		—
UBSW		129		(129	)		—		—		—

Total	$	2,167	$	(2,167	)	$	—	$	—	$	—

See Note 1(c) regarding derivative financial instruments.

9. Fair Value Measurements

•

Level 1 – quoted prices in active markets for identical financial instruments

•

Level 2 – other significant observable inputs (including quoted prices for similar financial instruments, interest rates, prepayment speed, credit risk, etc.)

•

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

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



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NOTES TO FINANCIAL STATEMENTS

9. Fair Value Measurements (continued)

A summary of inputs used as of March 31, 2021, 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	$	14,040,217	$	—	$	4,279	$	14,044,496
South Korea		4,758,855		—		2,096		4,760,951
Other Equity Investments		15,386,049		—		—		15,386,049
Short-Term Investments		58,810		—		—		58,810

Total Investments in Securities	$	34,243,931	$	—	$	6,375	$	34,250,306


Liabilities:
Other Financial Instruments:
Futures Contracts	$	8,013	$	—	$	—	$	8,013


Franklin FTSE Australia ETF

Assets:
Investments in Securities:^a
Equity Investments:^b	$	23,238,336	$	—	$	—	$	23,238,336


Franklin FTSE Brazil ETF

Assets:
Investments in Securities:^a
Equity Investments^b	$	107,226,763	$	—	$	—	$	107,226,763


Assets:

Other Financial Instruments:
Futures Contracts	$	13,374	$	—	$	—	$	13,374


Franklin FTSE Canada ETF

Assets:
Investments in Securities:^a
Equity Investments^b	$	24,138,121	$	—	$	—	$	24,138,121


Franklin FTSE China ETF

Assets:
Investments in Securities:^a
Equity Investments:^b
China	$	119,810,009	$	—	$	33,120	$	119,843,129
Other Equity Investments		642,980		—		—		642,980
Short-Term Investments		517,219		—		—		517,219

Total Investments in Securities	$	120,970,208	$	—	$	33,120	$	121,003,328


Liabilities:
Other Financial Instruments:
Futures Contracts	$	5,342	$	—	$	—	$	5,342



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NOTES TO FINANCIAL STATEMENTS

9. Fair Value Measurements (continued)



	Level 1		Level 2			Level 3		Total

Franklin FTSE Europe ETF

Assets:
Investments in Securities:^a
Equity Investments:^b
United Arab Emirates	$	—	$	—	^c	$	—	$	—
Other Equity Investments		228,477,697		—			—		228,477,697
Short-Term Investments		64,200		—			—		64,200

Total Investments in Securities	$	228,541,897	$	—	^c	$	—	$	228,541,897

Other Financial Instruments:
Futures Contracts	$	6,872	$	—		$	—	$	6,872


Liabilities:
Other Financial Instruments:
Futures Contracts	$	1,688	$	—		$	—	$	1,688


Franklin FTSE Europe Hedged ETF

Assets:
Investments in Securities:^a
Equity Investments:^b
United Arab Emirates	$	—	$	—	^c	$	—	$	—
Other Equity Investments		15,352,588		—			—		15,352,588
Short-Term Investments		157,303		—			—		157,303

Total Investments in Securities	$	15,509,891	$	—	^c	$	—	$	15,509,891

Other Financial Instruments:
Forward Exchange Contracts	$	—	$	308,612		$	—	$	308,612
Futures Contracts		2,183		—			—		2,183

Total Other Financial Instruments	$	2,183	$	308,612		$	—	$	310,795


Liabilities:
Other Financial Instruments:
Forward Exchange Contracts	$	—	$	11,075		$	—	$	11,075


Franklin FTSE France ETF

Assets:
Investments in Securities:^a
Equity Investments:^b	$	7,105,911	$	—		$	—	$	7,105,911


Franklin FTSE Germany ETF

Assets:
Investments in Securities:^a
Equity Investments:^b	$	9,087,967	$	—		$	—	$	9,087,967


Franklin FTSE Hong Kong ETF

Assets:
Investments in Securities:^a
Equity Investments:^b	$	16,842,008	$	—		$	—	$	16,842,008


Franklin FTSE India ETF

Assets:
Investments in Securities:^a
Equity Investments:^b	$	23,967,964	$	—		$	—	$	23,967,964



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NOTES TO FINANCIAL STATEMENTS

9. Fair Value Measurements (continued)



	Level 1		Level 2		Level 3		Total

Franklin FTSE Italy ETF

Assets:
Investments in Securities:^a
Equity Investments:^b	$	3,970,127^c	$	—	$	—	$	3,970,127


Franklin FTSE Japan ETF

Assets:
Investments in Securities:^a
Equity Investments:^b	$	593,024,322	$	—	$	—	$	593,024,322
Short-Term Investments		292,353		—		—		292,353

Total Investments in Securities	$	593,316,675	$	—	$	—	$	593,316,675


Liabilities:
Other Financial Instruments:
Futures Contracts	$	3,624	$	—	$	—	$	3,624


Franklin FTSE Japan Hedged ETF

Assets:
Investments in Securities:^a
Equity Investments:^b	$	24,107,061	$	—	$	—	$	24,107,061
Short-Term Investments		13,379		—		—		13,379

Total Investments in Securities	$	24,120,440	$	—	$	—	$	24,120,440

Other Financial Instruments:
Forward Exchange Contracts	$	—	$	847,422	$	—	$	847,422
Futures Contracts		389		—		—		389

Total Other Financial Instruments	$	389	$	847,422	$	—	$	847,811


Liabilities:
Other Financial Instruments:
Forward Exchange Contracts	$	—	$	2,167	$	—	$	2,167


Franklin FTSE Latin America ETF

Assets:
Investments in Securities:^a
Equity Investments:^b	$	4,478,832	$	—	$	—	$	4,478,832


Franklin FTSE Mexico ETF

Assets:
Investments in Securities:^a
Equity Investments^b	$	5,532,765	$	—	$	—	$	5,532,765


Franklin FTSE Russia ETF

Assets:
Investments in Securities:^a
Equity Investments^b	$	10,799,550	$	—	$	—	$	10,799,550


Franklin FTSE Saudi Arabia ETF

Assets:
Investments in Securities:^a
Equity Investments^b	$	3,028,155	$	—	$	—	$	3,028,155



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NOTES TO FINANCIAL STATEMENTS

9. Fair Value Measurements (continued)



	Level 1		Level 2			Level 3		Total

Franklin FTSE South Africa ETF

Assets:
Investments in Securities:^a
Equity Investments:^b	$	2,619,526	$	—		$	—	$	2,619,526


Franklin FTSE South Korea ETF

Assets:
Investments in Securities:^a
Equity Investments:^b	$	62,389,226	$	—		$	17,277	$	62,406,503

Other Financial Instruments:
Futures Contracts	$	2,310	$	—		$	—	$	2,310


Franklin FTSE Switzerland ETF

Assets:
Investments in Securities:^a
Equity Investments:^b	$	48,174,015	$	—		$	—	$	48,174,015

Other Financial Instruments:
Futures Contracts	$	8,660	$	—		$	—	$	8,660


Franklin FTSE Taiwan ETF

Assets:
Investments in Securities:^a
Equity Investments:^b	$	32,851,458	$	—		$	—	$	32,851,458


Franklin FTSE United Kingdom ETF

Assets:
Investments in Securities:^a
Equity Investments:^b
United Arab Emirates	$	—	$	—	^c	$	—	$	—
Other Equity Investments		203,882,641		—			—		203,882,641
Short-Term Investments		230,050		—			—		230,050

Total Investments in Securities	$	204,112,691	$	—	^c	$	—	$	204,112,691


Liabilities:
Other Financial Instruments:
Futures Contracts	$	7,397	$	—		$	—	$	7,397

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

^bIncludes common and convertible preferred stocks, warrants, as well as other equity investments.

^cIncludes securities determined to have no value at March 31, 2021



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NOTES TO FINANCIAL STATEMENTS

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
ADR		– American Depositary Receipt
CDI		– Clearing House Electronic Subregister System Depositary Interest
IDR		– International Depositary Receipt
NVDR		– Non-Voting Depositary Receipt
REIT		– Real Estate Investment Trust
SF		– Single Family

Counterparty
BOFA		Bank of America Corp.
DBAB		Deutsche Bank AG
HSBK		HSBC Bank PLC
MSCO		Morgan Stanley
UBSW		UBS AG



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Report of Independent Registered Public Accounting Firm

To the Board of Trustees of Franklin Templeton ETF Trust and Shareholders of Franklin FTSE Asia ex Japan ETF, Franklin FTSE Australia ETF, Franklin FTSE Brazil ETF, Franklin FTSE Canada ETF, Franklin FTSE China ETF, Franklin FTSE Europe ETF, Franklin FTSE Europe Hedged ETF, Franklin FTSE France ETF, Franklin FTSE Germany ETF, Franklin FTSE Hong Kong ETF, Franklin FTSE India ETF, Franklin FTSE Italy ETF, Franklin FTSE Japan ETF, Franklin FTSE Japan Hedged ETF, Franklin FTSE Latin America ETF, Franklin FTSE Mexico ETF, Franklin FTSE Russia ETF, Franklin FTSE Saudi Arabia ETF, Franklin FTSE South Africa ETF, Franklin FTSE South Korea ETF, Franklin FTSE Switzerland ETF, Franklin FTSE Taiwan ETF, and Franklin FTSE United Kingdom ETF

Opinions on the Financial Statements

We have audited the accompanying statements of assets and liabilities, including the statements of investments, of Franklin FTSE Asia ex Japan ETF, Franklin FTSE Australia ETF, Franklin FTSE Brazil ETF, Franklin FTSE Canada ETF, Franklin FTSE China ETF, Franklin FTSE Europe ETF, Franklin FTSE Europe Hedged ETF, Franklin FTSE France ETF, Franklin FTSE Germany ETF, Franklin FTSE Hong Kong ETF, Franklin FTSE India ETF, Franklin FTSE Italy ETF, Franklin FTSE Japan ETF, Franklin FTSE Japan Hedged ETF, Franklin FTSE Latin America ETF, Franklin FTSE Mexico ETF, Franklin FTSE Russia ETF, Franklin FTSE Saudi Arabia ETF, Franklin FTSE South Africa ETF, Franklin FTSE South Korea ETF, Franklin FTSE Switzerland ETF, Franklin FTSE Taiwan ETF, and Franklin FTSE United Kingdom ETF (twenty-three of the funds constituting Franklin Templeton ETF Trust, hereafter collectively referred to as the “Funds”) as of March 31, 2021, the related statements of operations for the year ended March 31, 2021, the statements of changes in net assets for each of the two years in the period ended March 31, 2021, including the related notes, and the financial highlights for each of the periods indicated therein (collectively referred to as the “financial statements”). In our opinion, the financial statements present fairly, in all material respects, the financial position of each of the Funds as of March 31, 2021, the results of each of their operations for the year then ended, the changes in each of their net assets for each of the two years in the period ended March 31, 2021, and each of the financial highlights for each of the periods indicated therein in conformity with accounting principles generally accepted in the United States of America.



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Basis for Opinions

Our audits included performing procedures to assess the risks of material misstatement of the financial statements, whether due to error or fraud, and performing procedures that respond to those risks. Such procedures included examining, on a test basis, evidence regarding the amounts and disclosures in the financial statements. Our audits also included evaluating the accounting principles used and significant estimates made by management, as well as evaluating the overall presentation of the financial statements. Our procedures included confirmation of securities owned as of March 31, 2021 by correspondence with the custodian, transfer agent, and brokers; when replies were not received from brokers, we performed other auditing procedures. We believe that our audits provide a reasonable basis for our opinions.

PricewaterhouseCoopers LLP

San Francisco, California

May 20, 2021

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



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Tax information (unaudited)



Franklin FTSE Asia ex Japan ETF		Franklin FTSE Australia ETF		Franklin FTSE Brazil ETF		Franklin FTSE Canada ETF
	$235,668		$487,116		$—		$231,827

Franklin FTSE China ETF		Franklin FTSE Europe ETF		Franklin FTSE Europe Hedged ETF		Franklin FTSE France ETF
	$764,721		$6,124,459		$167,291		$138,658

Franklin FTSE Germany ETF		Franklin FTSE Hong Kong ETF		Franklin FTSE India ETF		Franklin FTSE Italy ETF
	$212,151		$388		$169,900		$114,525

Franklin FTSE Japan ETF		Franklin FTSE Japan Hedged ETF		Franklin FTSE Latin America ETF		Franklin FTSE Mexico ETF
	$10,026,684		$106,030		$9,771		$92,012

Franklin FTSE Russia ETF		Franklin FTSE Saudi Arabia ETF		Franklin FTSE South Africa ETF		Franklin FTSE South Korea ETF
	$702,771		$—		$114,778		$740,542

Franklin FTSE Switzerland ETF		Franklin FTSE Taiwan ETF		Franklin FTSE United Kingdom ETF
	$972,105		$—		$3,919,671

At March 31, 2021, 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 Fund on these investments. The Fund elects to treat foreign taxes paid as allowed under Section 853 of the Internal Revenue Code. This election will allow shareholders of record as of the first distribution following March 2021, to treat their proportionate share of foreign taxes paid by the Fund as having been paid directly by them. The shareholder shall consider these amounts as foreign taxes paid in the tax year in which they receive the Fund distribution.

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



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Tax information (unaudited) (continued)

Franklin FTSE Italy ETF

Franklin FTSE India ETF

Franklin FTSE Japan ETF

Franklin FTSE Japan Hedged ETF

Franklin FTSE Latin America ETF

Franklin FTSE Mexico ETF

Franklin FTSE Russia ETF

Franklin FTSE Saudi Arabia ETF

Franklin FTSE South Africa ETF

Franklin FTSE South Korea ETF

Franklin FTSE Switzerland ETF

Franklin FTSE Taiwan ETF

Franklin FTSE United Kingdom ETF

At March 31, 2020, 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 December 15, 2020, 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 Russia ETF	$	0.3392	$	3.2720	$	3.0664
Franklin FTSE South Korea ETF	$	0.0442	$	0.2599	$	0.2599

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 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

At the beginning of each calendar year, shareholders will receive Form 1099-DIV which will include their share of taxes paid during the prior calendar year. Shareholders are advised to check with their tax advisors for information on the treatment of these amounts on their 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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FRANKLIN TEMPLETON ETF TRUST

Board Members and Officers

Independent Board Members



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

Rohit Bhagat (1964) One Franklin Parkway San Mateo, CA 94403-1906	Lead Independent Trustee	Since 2016	49	AssetMark Financial Holdings, Inc. (investment solutions) (2018-present) and PhonePe (December 2020) (payment and financial services); formerly, Axis Bank (financial) (2013-2021), FlipKart Limited (2019-December 2020) (eCommerce company); CapFloat Financial Services Pvt., Ltd. (non-banking finance company) (2018) and Zentific Investment Management (hedge fund) (2015-2018).

Principal Occupation During at Least the Past 5 Years:
Managing Member, Mukt Capital, LLC (private investment firm) (2014-present); Advisor, Optimal Asset Management (investment technology and advisory services company) (2015-present); Chief Executive Officer and Director, FinTech Evolution Acquisition (eCommerce company) (February 2021-present); and formerly, Chairman, Asia Pacific, BlackRock (2009-2012); Global Chief Operating Officer, Barclays Global Investors (investment management) (2005-2009); and Senior Partner, The Boston Consulting Group (management consulting) (1992-2005).

Deborah D. McWhinney (1955) One Franklin Parkway San Mateo, CA 94403-1906	Trustee	Since 2020	49	IHS Markit (information services) (2015-present), Borg Warner (automotive) (2018-present), LegalShield (consumer services) (2020-present); and formerly, Fluor Corporation (construction and engineering) (2014-2020) and Focus Financial Partner, LLC (financial services) (2018-2020).

Principal Occupation During at Least the Past 5 Years:
Director of various companies; and formerly, Board Member, Lloyds Banking Group (2015-2018) (financial institution)) and Fresenius Medical Group (2016-2018) (healthcare); Chief Executive Officer (2013-2014) and Chief Operating Officer (2011-2013), CitiGroup Global Enterprise Payments (financial services); and President, Citi’s Personal Banking and Wealth Management (2009-2011).

Anantha K. Pradeep (1963) One Franklin Parkway San Mateo, CA 94403-1906	Trustee	Since 2016	49	None

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



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Interested Board Members and Officers



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

**Jennifer M. Johnson (1964) One Franklin Parkway San Mateo, CA 94403-1906	Trustee and Chairperson of the Board	Since 2016	60	None

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

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

Principal Occupation During at Least the Past 5 Years:
Deputy General Counsel, Franklin Templeton; and officer of some of the other subsidiaries of Franklin Resources, Inc. and of 42 of the investment companies in Franklin Templeton.

Breda M. Beckerle (1958) 280 Park Avenue New York, NY 10017	Chief Compliance Officer	Since November 2020	Not Applicable	Not Applicable

Principal Occupation During at Least the Past 5 Years:
Chief Compliance Officer, Fiduciary Investment Management International, Inc., Franklin Advisers, Inc., Franklin Advisory Services, LLC, Franklin Mutual Advisers, LLC, Franklin Templeton Institutional, LLC; and officer of 42 of the investment companies in Franklin Templeton.

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

Principal Occupation During at Least the Past 5 Years:
Senior Associate General Counsel, Franklin Templeton; Vice President, Franklin Templeton Distributors, Inc. and FASA, LLC; and officer of 42 of the investment companies in Franklin Templeton.

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

Principal Occupation During at Least the Past 5 Years:
Senior Vice President, Franklin Templeton Services, LLC; officer of 42 of the investment companies in Franklin Templeton; and formerly, Vice President, Global Tax (2012-April 2017) and Treasurer/Assistant Treasurer, Franklin Templeton (2009-2017).

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

Principal Occupation During at Least the Past 5 Years:
Vice President, Franklin Templeton Companies, LLC; Chief Compliance Officer, Franklin Templeton Distributors, Inc. and Franklin Templeton Investor Services, LLC; and officer of 42 of the investment companies in Franklin Templeton.



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FRANKLIN TEMPLETON ETF TRUST

Interested Board Members and Officers (continued)



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

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

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

Vivek Pai (1970) 300 S.E. 2nd Street Fort Lauderdale, FL 33301-1923	Treasurer, Chief Financial Officer and Chief Accounting Officer	Since 2019	Not Applicable	Not Applicable

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

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

Principal Occupation During at Least the Past 5 Years:
Associate General Counsel and officer of 42 of the investment companies in Franklin Templeton.

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

Principal Occupation During at Least the Past 5 Years:
General Counsel and Executive Vice President, Franklin Resources, Inc.; and officer of some of the other subsidiaries of Franklin Resources, Inc. and of 42 of the investment companies in Franklin Templeton.

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

Principal Occupation During at Least the Past 5 Years:
Senior Associate General Counsel, Franklin Templeton; Assistant Secretary, Franklin Resources, Inc.; Vice President and Secretary, Templeton Investment Counsel, LLC; and officer of 42 of the investment companies in Franklin Templeton.

Note 1: Officer information is current as of the date of this report. It is possible that after this date, information about officers may change.



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FRANKLIN TEMPLETON ETF TRUST

Shareholder Information

Proxy Voting Policies and Procedures

Quarterly Statement of Investments

Premium/Discount Information



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

ANNUAL REPORT

FRANKLIN TEMPLETON

ETF TRUST

March 31, 2021

LOGO


Franklin Liberty High Yield Corporate ETF		Franklin Liberty Senior Loan ETF
Franklin Liberty International Aggregate Bond ETF		Franklin Liberty Systematic Style Premia ETF



Contents

Annual Report

Economic and Market Overview			2
Franklin Liberty High Yield Corporate ETF			4
Franklin Liberty International Aggregate Bond ETF			11
Franklin Liberty Senior Loan ETF			17
Franklin Liberty Systematic Style Premia ETF			23
Financial Highlights and Statements of Investments			30
Financial Statements			67
Notes to Financial Statements			71
Report of Independent Registered Public Accounting Firm			86
Tax Information			87
Board Members and Officers			88
Shareholder Information			91

Visit franklintempleton.com for fund
updates and documents, or to find
helpful financial planning tools.


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



franklintempleton.com	Annual Report	1

ANNUAL REPORT

Economic and Market Overview

The U.S. bond market, as measured by the Bloomberg Barclays U.S. Aggregate Bond Index, posted modestly negative total returns during the six months ended March 31, 2021, as continued economic recovery and additional government stimulus led to higher yields (which move inversely to prices) for most bonds. As the period began, investors continued to adjust to the disruption caused by the novel coronavirus (COVID-19) pandemic. Before the period, investor flight to perceived safety had driven the 10-year U.S. Treasury yield to near record lows. During the period, however, the implementation of mass vaccination programs alongside improving economic indicators prompted investors to anticipate that increased inflation would lead to higher interest rates.

The U.S. Federal Reserve (Fed) maintained the federal funds target rate at a range of 0.00%–0.25% and continued its program of open-ended purchasing of government-backed and corporate bonds as necessary to provide liquidity to bond markets. Furthermore, the Fed reiterated that interest rates would potentially remain low, even if inflation moderately exceeded the Fed’s 2% target for some time.

U.S. Treasury bonds, as measured by the Bloomberg Barclays U.S. Treasury Index, posted negative total returns for the period. The 10-year U.S. Treasury yield rose from near-record lows at the beginning of the reporting period amid a significant U.S. federal budget deficit and high levels of issuance. The Fed’s inflation policy also pressured Treasuries, as renewed economic strength prompted investors to increase their inflation expectations. Mortgage-backed securities (MBS), as measured by the Bloomberg Barclays MBS Index, posted marginally negative total returns for the period despite Fed support, as low interest rates led to accelerated prepayments from mortgage refinancing.

U.S. corporate bond performance varied significantly based on credit rating, reflecting the recovery of credit markets following the onset of the pandemic. While the strengthening economy pressured corporate bonds generally, it also had the effect of tempering concerns about credit quality, which benefited lower-quality bonds. Consequently, high-yield corporate bonds, as represented by the Bloomberg Barclays U.S. Corporate High Yield Bond Index, posted a solid advance, while investment-grade corporate bonds, as represented by the Bloomberg Barclays U.S. Corporate Bond Index, were down slightly.

At the start of the 12-month period ended March 31, 2021, the U.S. government announced three economic relief packages, which increased total funding since the COVID-19

outbreak to around US$3 trillion. In a similar move, the European Commission unveiled a new €750 billion recovery package, including the issuance of new bonds. Data released in July 2020 showed that U.S. gross domestic product (GDP) had its most significant single-quarter contraction on record in the second quarter of 2020. Although eurozone macroeconomic data released towards the end of July 2020 was encouraging and August 2020 saw further signs of recovery, the region entered a period of deflation for the first time in four years. In September 2020, despite an upward revision of its projection for 2020 GDP growth, the Fed highlighted the need for the U.S. Congress to agree on additional fiscal stimulus. With third-quarter estimates for U.S. GDP also revised upward, the Fed subsequently left its policy unchanged for the remainder of 2020, but reiterated concerns about increasing COVID-19 infection rates. Third-quarter 2020 GDP figures for the eurozone released in October 2020 were also strong, but many investors feared that a double-dip recession awaited the region; this would be confirmed early in 2021. In November 2020, a month that began with Joe Biden’s victory in the U.S. presidential election, sentiment was buoyed by successful vaccine trials. In contrast, fresh lockdown measures across much of the eurozone weighed on business activity, leading the European Central Bank (ECB) in December 2020 to announce an expanded asset purchase program. However, sentiment in Europe was boosted at the end of the month when an eleventh-hour Brexit deal was finally struck.

As in December 2020, the Fed took no further action at its first meeting in 2021 but acknowledged the moderating pace of the U.S. economic recovery; U.S. GDP grew at an annualized rate of only 4% in the fourth quarter of 2020, compared with over 33% in the third quarter. The ECB also maintained its monetary policy in January 2021, announcing that it expected a demand-driven rebound in economic activity later in the year. Nonetheless, figures released for January 2021 showed that prices in the region had risen for the first time in five months. February 2021 saw a selloff in bonds across the globe, as investors became more concerned about the potential inflationary effects of a strong worldwide economic recovery from effects of the COVID-19 pandemic. This sentiment was fueled by vaccine rollout, pent-up demand and ongoing stimulus, notably the proposal of a US$1.9 trillion stimulus package by President Biden’s administration. In Europe, amid mixed economic data, and with rising yields threatening to thwart any recovery from the region’s doldrums, the ECB indicated it would be prepared to ramp up its emergency bond purchases. This it subsequently did in March 2021, a month in which the Fed maintained its policies



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and stressed that it would need to see actual progress toward full employment and price stability before considering monetary tightening.

Against this backdrop, benchmark U.S. Treasury yields rose over the second half of 2020, although they were down around 100 basis points for 2020 as a whole. They remained on an upward trajectory throughout the first quarter of 2021, spiking in the widespread bond market selloff in February 2021, and ending the review period at their highest level in 12 months. Meanwhile, yields on benchmark German Bunds rebounded slightly in the second quarter of 2020, but then fell steadily to finish 2020 lower than 12 months earlier. However, in the first quarter of 2021, European bond yields rose sharply, with benchmark German Bund yields reaching levels not seen since early June 2020. Even so, they remained within negative territory at the end of the period under review.



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Franklin Liberty High Yield Corporate ETF

This annual report for Franklin Liberty High Yield Corporate ETF covers the fiscal year ended March 31, 2021.

Your Fund’s Goal and Main Investments

The Fund seeks to earn a high level of current income. Its secondary goal is to seek 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 the 12-month period, the Fund posted cumulative total returns of +23.54% based on market price and +22.28% based on net asset value (NAV). In comparison, the ICE BofA U.S. High Yield Constrained Index posted a +23.22% total return for the same period.¹ You can find more of the Fund’s performance data in the Performance Summary beginning on page 7.

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. The Fund may enter into certain derivative transactions, principally currency and cross currency forwards; and swap


Portfolio Composition

3/31/21

	% of Total Net Assets
Quasi-Sovereign and Corporate Bonds		98.0%
Short-Term Investments & Other Net Assets		2.0%

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 provide in-depth industry expertise and use qualitative and quantitative analysis to evaluate companies. As bottom-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.

Manager’s Discussion

As financial market recovery started in April 2020 amid unprecedented fiscal and monetary measures by central banks and governments, continued low yields across the U.S. Treasury curve along with low or negative government bond yields globally supported demand for high yield (HY) corporate bonds throughout much of 2020. While the U.S. Federal Reserve’s (Fed’s) support for the HY market, in the form of direct and indirect purchases of HY corporate securities by the Fed’s Secondary Market Corporate Facility were modest, the perceived support had buoyed the HY market in general, leading to persistent favorable conditions for HY corporate bonds. Despite bouts of risk-off sentiment driven largely by factors such as a resurgence in global novel coronavirus (COVID-19) cases, and the political impasse regarding additional fiscal stimulus in the months leading up to the U.S. presidential election, HY performance held firm.

1. 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 31.



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FRANKLIN LIBERTY HIGH YIELD CORPORATE ETF


Top 10 Sectors/Industries

3/31/21

	% of Total Net Assets
Energy		12.8%
Materials		12.3%
Media & Entertainment		12.3%
Capital Goods		7.6%
Diversified Financials		6.6%
Consumer Services		5.8%
Health Care Equipment & Services		4.7%
Pharmaceuticals, Biotechnology & Life Sciences		4.3%
Utilities		4.1%
Automobiles & Components		4.0%

Following the U.S. presidential election, strong HY market performance persisted, and market sentiment remained generally positive until year-end. As financial markets settled into 2021, amid a stronger than expected U.S. economic recovery along with unprecedented fiscal stimulus (such as the recent $1.9 trillion fiscus stimulus bill and a potential multi-trillion infrastructure package), investor concerns regarding possible future inflation (which was still dormant three months ago) are now in full swing. U.S. Treasury yields surged during the first quarter of 2021 as investors began to assess more closely the implications of unparalleled fiscal stimulus, an accommodative Fed and an economy poised for further rebound as increasing COVID-19 vaccine uptake paves the way for reopening businesses.

Based on benchmark index data, HY spreads generally tightened during the 12-month period under review. Most segments of the HY market posted positive absolute returns for the performance period. CCC rated bonds returned 33.33%, compared to returns of 22.44% and 21.59% for BB and B rated segments, respectively. From an industry standpoint, energy stood out as a key performer. Other sectors that had also staged robust performances included gaming and leisure, transportation and retail.

During a period of robust performance as the high yield market rebounded from the depths of the COVID-19-induced selloff in the first quarter of 2020, the Fund slightly underperformed its benchmark and performed in-line with its Morningstar high yield category average.

Security selection was the main contributor to performance, as is befitting our fundamentally driven investment process.


Top 10 Holdings

3/31/21

Company *Sector/Industry*	% of Total Net Assets
Ashton Woods USA LLC/Ashton Woods Finance Co., senior note, 144A, 9.875%, 4/01/27 Consumer Durables & Apparel		1.1%
TransDigm Inc., senior secured note, 144A, 6.25%, 3/15/26 Capital Goods		1.1%
Northwest Fiber LLC/Northwest Fiber Finance Sub Inc., senior note, 144A, 6.00%, 2/15/28 Media & Entertainment		1.1%
Cheniere Energy Inc., 4.625%, 10/15/28 Energy		1.0%
CommScope Inc., senior secured note, 144A, 7.125%, 7/01/28 Technology Hardware & Equipment		1.0%
Par Pharmaceutical Inc., senior secured note, 144A, 7.50%, 4/01/27 Pharmaceuticals, Biotechnology & Life Sciences		1.0%
Gray Escrow Inc., senior note, 144A, 7.00%, 5/15/27 Media & Entertainment		1.0%
Williams Scotsman International Inc., senior secured note, 144A, 4.625%, 8/15/28 Consumer Durables & Apparel		1.0%
Element Solutions Inc., senior note, 144A, 3.875%, 9/01/28 Materials		1.0%
Weekley Homes LLC/Weekley Finance Corp., senior note, 4.875%, 9/15/28 Household & Personal Products		1.0%

In particular, Fund performance benefited from security selection in the energy, industrial, health care and metals and mining industries. The Fund’s yield-curve positioning also benefited results.

Offsetting the favorable security selection was an industry allocation that had overweighted exposure to defensive sectors such as packaging and utilities, and underweighted exposure to some of the cyclical industries that benefited more fully from the economic recovery such as energy and metals and mining. In addition, our higher quality bias, which had a large positive impact on results in the first quarter of 2020, turned into a hindrance as CCC rated bonds outperformed during the fiscal year. This headwind was partially mitigated by our underweighted exposure to BB rated credits, as those generated the lowest returns of the rating categories.



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FRANKLIN LIBERTY HIGH YIELD CORPORATE ETF

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

Glenn I. Voyles, CFA

Patricia O’Connor, CFA

Jonathan G. Belk, CFA

Thomas Runkel, CFA

Pururav Thoutireddy, Ph.D

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 March 31, 2021

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 3/31/21¹

Cumulative Total Return²

Average Annual Total Return²

Based on
NAV³

Based on

market price⁴

Based on
NAV³

Based on

market price⁴

1-Year

+22.28%

+23.54%

+22.28%

+23.54%

Since Inception (5/30/18)

+24.22%

+24.64%

+7.95%

+8.08%



	30-Day Standardized Yield⁶
Distribution Rate⁵	(with fee waiver)		(without fee waiver)
4.78%		4.00%		3.79%

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 recent month-end performance, go to franklintempleton.com or call (800) 342-5236.

See page 9 for Performance Summary footnotes.



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FRANKLIN LIBERTY HIGH YIELD CORPORATE ETF

PERFORMANCE SUMMARY

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

5/30/18–3/31/21

LOGO

See page 9 for Performance Summary footnotes.



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FRANKLIN LIBERTY HIGH YIELD CORPORATE ETF

PERFORMANCE SUMMARY

Distributions (4/1/20–3/31/21)

Net Investment

Income

$1.46492

Total Annual Operating Expenses⁸



With Fee Waiver	Without Fee Waiver
0.40%		0.86%

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 to 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. Events such as the spread of deadly diseases, disasters, and financial, political or social disruptions, may heighten risks and adversely affect performance. The Fund’s prospectus also includes a description of the main investment risks.

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

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

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

4. Assumes reinvestment of distributions based on market price.

5. Distribution rate is based on an annualization of the March dividend and the NAV per share on 3/31/21.

7. Source: Morningstar. The ICE BofA U.S. High Yield Constrained Index tracks the performance of U.S. dollar denominated below investment-grade corporate debt publicly issued in the U.S. domestic market.

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



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FRANKLIN LIBERTY HIGH YIELD CORPORATE ETF

Your Fund’s Expenses

Actual Fund Expenses

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

Hypothetical Example for Comparison with Other Funds

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


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

Beginning Account Value 10/1/20		Ending Account Value 3/31/21		Expenses Paid During Period 10/1/20–3/31/21^1,2		Ending Account Value 3/31/21		Expenses Paid During Period 10/1/20–3/31/21^1,2		Net Annualized Expense Ratio²
	$1,000.00	$	1,062.40	$	2.06	$	1,022.94	$	2.02		0.40	%

2. Reflects expenses after fee waivers and expense reimbursements.



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Franklin Liberty International Aggregate Bond ETF

This annual report for Franklin Liberty International Aggregate Bond ETF covers the fiscal year ended March 31, 2021.

Your Fund’s Goal and Main Investments

The Fund seeks total investment return, consistent with prudent investing, 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 the 12-month period, the Fund posted cumulative total returns of +0.68% based on market price and +0.72% based on net asset value (NAV). In comparison, the Fund’s benchmark, the Bloomberg Barclays Global Aggregate Bond ex-USD Index (100% Hedged to USD), posted a +1.45% total return.¹ You can find more of the Fund’s performance data in the Performance Summary beginning on page 13.

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

3/31/21

	% of Total Net Assets
Europe		53.4%
Asia		26.2%
North America		8.0%
Australia & New Zealand		3.6%
Supranationals		2.2%
Middle East & Africa		1.1%
Latin America & Caribbean		0.2%
Short-Term Investments & Other Net Assets		5.3%

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.

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.

We seek to hedge substantially all of the Fund’s foreign currency exposure using currency related derivatives, including currency and cross currency forwards and currency futures contracts. We expect to maintain extensive positions in currency related derivative instruments as a hedging technique or to implement a currency investment strategy, which exposes a large amount of the Fund’s assets to obligations under these instruments. The results of such transactions may represent, from time to time, a large component of the Fund’s investment returns. The use of these derivative transactions may allow the fund to obtain net long or net negative (short) exposure to selected currencies. The Fund may also enter into various other transactions involving derivatives, including interest rate/bond futures contracts and interest rate swap agreements. These derivative instruments may be

1. 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 39.



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FRANKLIN LIBERTY INTERNATIONAL AGGREGATE BOND ETF


Portfolio Composition

3/31/21

	% of Total Net Assets
Foreign Government and Agency Securities		89.2%
Corporate Bonds & Notes		5.5%
Short-Term Investments & Other Net Assets		5.3%

used for hedging purposes. Derivatives that provide exposure to bonds may be used to satisfy the Fund’s 80% policy.

Manager’s Discussion

The Fund’s sector allocation and security selection detracted from relative returns. In government bonds, overweighted exposure to German Bunds and positioning in Italian sovereign debt hurt relative results. In the corporate space, positioning in investment-grade industrial and financial bonds also hampered returns.

In contrast, the Fund’s local market allocation contributed to relative returns, namely exposure to the eurozone, Chinese and U.K. markets.

The Fund’s duration and yield-curve positioning further helped relative results, mostly due to duration stances on eurozone and Japanese bonds. However, duration positioning in U.K. bonds hindered relative performance.

The Fund’s currency positioning also added to relative returns, largely owing to positioning in the onshore Chinese yuan, although this was largely countered by the negative impact of exposure to the offshore Chinese renminbi.

In terms of derivative use, foreign currency forwards were used in the portfolio to hedge foreign-currency-denominated holdings back into the portfolio’s base currency, the U.S. dollar. Therefore, the use of the forwards is generally risk reducing, both on an absolute basis and relative to the benchmark. However, for the period under review, derivatives use subtracted 449 basis points from the Fund’s relative performance, as the U.S. dollar fell against most other major currencies.

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

John Beck

Sonal Desai, Ph.D.

David Zahn, CFA

Patrick Klein, Ph.D.

Portfolio Management Team



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FRANKLIN LIBERTY INTERNATIONAL AGGREGATE BOND ETF

Performance Summary as of March 31, 2021

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 3/31/21¹

Cumulative Total Return²

Average Annual Total Return²

Based on
NAV³

Based on
market price⁴

Based on
NAV³

Based on
market price⁴

1-Year

+0.72%

+0.68%

+0.72%

+0.68%

Since Inception (5/30/18)

+4.81%

+5.09%

+1.67%

+1.77%



	30-Day Standardized Yield⁶
Distribution Rate⁵	(with fee waiver)		(without fee waiver)
1.03%		0.15%		-0.24%

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 recent month-end performance, go to franklintempleton.com or call (800) 342-5236.

See page 15 for Performance Summary footnotes.



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FRANKLIN LIBERTY INTERNATIONAL AGGREGATE BOND ETF

PERFORMANCE SUMMARY

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

5/30/18–3/31/21

LOGO

See page 15 for Performance Summary footnotes.



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FRANKLIN LIBERTY INTERNATIONAL AGGREGATE BOND ETF

PERFORMANCE SUMMARY

Distributions (4/1/20–3/31/21)

Net Investment

Income

$0.111049

Total Annual Operating Expenses⁸



With Fee Waiver	Without Fee Waiver
0.25%		3.23%

All investments involve risks, including possible loss of principal. Bond prices generally move in the opposite direction of interest rates and a rise in interest rates may cause the Fund’s share price to 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 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 including counterparty risk, and as such may not achieve the anticipated benefits and/or may result in losses to the Fund. While the Fund’s currency hedging approach is designed to minimize the impact of currency fluctuations on Fund returns, it does not necessarily eliminate the Fund’s exposure to the currencies. The return of the currency related derivatives will not perfectly offset the actual fluctuations between the currencies and the U.S. dollar. The Fund’s exposure to the currencies may not be hedged at all times. 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. Events such as the spread of deadly diseases, disasters, and financial, political or social disruptions, may heighten risks and adversely affect performance. The Fund’s prospectus also includes a description of the main investment risks.

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

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

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

4. Assumes reinvestment of distributions based on market price.

5. Distribution rate is based on an annualization of the March dividend and the NAV per share on 3/31/21.

7. Source: Morningstar. The Bloomberg Barclays Global Aggregate Bond ex-USD Index (100% Hedged to USD) measures global investment-grade debt from 24 local currency markets. This multicurrency benchmark is 100% hedged to the U.S. dollar and includes treasury, government-related, corporate and securitized fixed-rate bonds from both developed and emerging markets issuers.

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



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FRANKLIN LIBERTY INTERNATIONAL AGGREGATE BOND ETF

Your Fund’s Expenses

Actual Fund Expenses

Hypothetical Example for Comparison with Other Funds


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

Beginning Account Value 10/1/20		Ending Account Value 3/31/21		Expenses Paid During Period 10/1/20–3/31/21^1,2		Ending Account Value 3/31/21		Expenses Paid During Period 10/1/20–3/31/21^1,2		Net Annualized Expense Ratio²
	$1,000.00	$	987.80	$	1.24	$	1,023.68	$	1.26		0.25	%

2. Reflects expenses after fee waivers and expense reimbursements.



16	Annual Report	franklintempleton.com

Franklin Liberty Senior Loan ETF

This annual report for Franklin Liberty Senior Loan ETF covers the fiscal year ended March 31, 2021.

Your Fund’s Goal and Main Investments

The Fund seeks to provide a high level of current income. A secondary goal is 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 the 12-month period, the Fund posted cumulative total returns of +13.64% based on market price and +11.91% based on net asset value (NAV). In comparison, the Fund’s benchmark, the S&P/LSTA U.S. Leveraged Loan 100 Index, posted a +15.28% total return for the same period.¹ You can find more of the Fund’s performance data in the Performance Summary beginning on page 19.

Investment Strategy

The Fund invests predominantly in income-producing senior floating interest rate corporate loans made to or issued by U.S. companies, non-U.S. entities and U.S. subsidiaries of non-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 normal market conditions, the Fund invests at least 75% of its net assets in senior loans that are rated B- or higher at the time of purchase by a nationally recognized statistical rating organization (NRSRO) or, if unrated, are determined to be of


Portfolio Composition

3/31/21

	% of Total Net Assets
Senior Floating Rate Interests		91.7%
Short-Term Investments & Other Net Assets		4.4%
Corporate Bonds & Notes		2.4%
Asset-Backed Securities		1.5%

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 below B- by an NRSRO or, if unrated, are determined to be of comparable quality by the investment manager.

Manager’s Discussion

During the 12-month period ended March 31, 2021, the loan market extended its rally following severe risk-off sentiment in the previous 12-month review period that ended on March 31, 2020, as fiscal and monetary support improved investor sentiment. Technical conditions in the loan market strengthened, driven by a meaningful resurgence in collateralized loan obligation issuance combined with more moderate retail fund outflows. While the market experienced periodic bouts of volatility prior to the U.S. presidential election and amid rising novel coronavirus cases, loan prices rallied as election uncertainty dissipated and due to news of positive developments on the vaccine front. Inflows into loan retail vehicles grew as more investors looked to the asset class in response to rising Treasury yields and potential inflation. Amid strong demand from investors, new issuance picked up and deals to finance acquisitions increased. As supply and demand became increasingly imbalanced, arrangers launched more repricing deals to reduce spreads on existing loans, after those deals were largely absent from the market for most of 2020. Over the course of the period, the more favorable environment supported stronger demand for lower-rated loans trading at deeper discounts to par.

During the period, the Fund underperformed its benchmark, the S&P/LSTA U.S. Leveraged Loan 100 Index. While the Fund outperformed its index in the prior 12-month review period ended March 31, 2020, amid dislocation in the market,

1. 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 44.



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FRANKLIN LIBERTY SENIOR LOAN ETF


Top 10 Sectors/Industries

3/31/21

	% of Total Net Assets
Media		12.1%
Software		10.6%
Health Care Provider & Services		8.5%
IT Services		6.2%
Specialty Retail		4.6%
Insurance		4.5%
Pharmaceuticals		4.1%
Aerospace & Defense		3.8%
Diversified Financial Services		3.7%
Hotels Restaurants & Leisure		3.1%

loans in the benchmark that had previously experienced more severe declines eventually saw more significant rebounds in the period under review ended March 31, 2021. The portfolio’s overweighted position in higher-rated loans at the beginning of the period ended March 31, 2021, led to underperformance, as the upper tier of the benchmark (including BB-rated loans) returned +9.47%, while the middle tier (B-rated loans) returned +16.76% and the lower tier (CCC-rated loans) returned +30.34% during the year. As the period ended March 31, 2021, progressed, the Fund shifted its allocation toward middle-tier loans due to a more favorable outlook on credit. As of March 31, 2021, the Fund had approximately 15% of its portfolio in upper-tier loans and 76% in middle-tier loans, compared to the benchmark, which had 37% in the upper tier and 61% in the middle tier.

Among individual issuers, the top contributors to performance versus the benchmark were issuers that had declined in the previous review period and rebounded sharply. The term loan and secured bond of Diamond Sports Group (an operator of regional sports networks) traded higher as the company reported better than expected results and amid an improved outlook regarding potential future liability management actions. EG America (a fuel and convenience store retailer) also contributed to performance compared to the benchmark as the company benefited from a rebound in travel. However, the Fund’s lack of exposure to a handful of larger, deeply discounted securities detracted from relative performance. The largest detractors from relative performance included Envision Health (a provider of health care services) and Scientific Games (a provider of gambling products), which both rallied during the review period and contributed to index returns.


Top 10 Holdings

3/31/21

Company *Sector/Industry*	% of Total Net Assets
ADMI Corp., 2021 Term Loan B2, 3.75%, 12/23/2027 Health Care Providers & Services		1.8%
Athenahealth, Inc., 2021 Term Loan B1, 4.453%, 2/11/2026 Software		1.7%
Prime Security Services Borrower LLC, 2021 Term Loan, 3.50%, 9/23/2026 Commercial & Professional Services		1.7%
Sedgwick Claims Management Services Inc., Initial Term Loans, 3.406%,12/31/2025 IT Services		1.7%
AssuredPartners Inc., 2020 February Refinancing Term Loans, 3.609%, 2/12/2027 Insurance		1.6%
Clear Channel Outdoor Holdings Inc., Term B Loan, TBD, 3.712%, 8/21/2026 Media		1.6%
CommScope Inc., Initial Term Loans, 3.406%, 4/6/2026 Communications Equipment		1.5%
CSC Holdings LLC, March 2017 Incremental Term Loans, 2.402%, 7/17/25 Media		1.5%
Hyland Software, Inc., Term Loan, 4.00%, 7/1/2024 Software		1.5%
BWAY Holding Company, 2017 Term Loan B, 3.443%, 4/3/2024 Containers & Packaging		1.5%

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

Reema Agarwal, CFA

Co-Lead Portfolio Manager

Justin Ma, CFA

Co-Lead Portfolio Manager

Margaret Chiu, CFA, FRM

Portfolio Manager



18	Annual Report	franklintempleton.com

FRANKLIN LIBERTY SENIOR LOAN ETF

Performance Summary as of March 31, 2021

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 3/31/21¹

Cumulative Total Return²

Average Annual Total Return²

Based on
NAV³

Based on
market price⁴

Based on
NAV³

Based on
market price⁴

1-Year

+11.91%

+13.64%

+11.91%

+13.64%

Since Inception (5/30/18)

+10.13%

+10.12%

+3.46%



	30-Day Standardized Yield⁶
Distribution Rate⁵	(with fee waiver)		(without fee waiver)
2.53%		2.34%		2.03%

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 recent month-end performance, go to franklintempleton.com or call (800) 342-5236.

See page 21 for Performance Summary footnotes.



franklintempleton.com	Annual Report	19

FRANKLIN LIBERTY SENIOR LOAN ETF

PERFORMANCE SUMMARY

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

5/30/18–3/31/21

LOGO

See page 21 for Performance Summary footnotes.



20	Annual Report	franklintempleton.com

FRANKLIN LIBERTY SENIOR LOAN ETF

PERFORMANCE SUMMARY

Distributions (4/1/20–3/31/21)

Net Investment

Income

$0.711601

Total Annual Operating Expenses⁸



With Fee Waiver	Without Fee Waiver
0.45%		0.97%

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 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. Events such as the spread of deadly diseases, disasters, and financial, political or social disruptions, may heighten risks and adversely affect performance. The Fund’s prospectus also includes a description of the main investment risks.

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

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

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

4. Assumes reinvestment of distributions based on market price.

5. Distribution rate is based on an annualization of the March dividend and the NAV per share on 3/31/21.

7. Source: Morningstar. The S&P/LSTA U.S. Leveraged Loan 100 Index reflects the performance of the largest facilities in the leveraged loan market. This rules-based index consists of the 100 largest loan facilities in the benchmark S&P/LSTA Leveraged Loan Index.

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



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FRANKLIN LIBERTY SENIOR LOAN ETF

Your Fund’s Expenses

Actual Fund Expenses

Hypothetical Example for Comparison with Other Funds


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

Beginning Account Value 10/1/20		Ending Account Value 3/31/21		Expenses Paid During Period 10/1/20–3/31/21^1,2		Ending Account Value 3/31/21		Expenses Paid During Period 10/1/20–3/31/21^1,2		Net Annualized Expense Ratio²
	$1,000.00	$	1,043.10	$	2.29	$	1,022.69	$	2.27		0.45	%

2. Reflects expenses after fee waivers and expense reimbursements.



22	Annual Report	franklintempleton.com

Franklin Liberty Systematic Style Premia ETF

This annual report for Franklin Liberty Systematic Style Premia ETF covers the fiscal year ended March 31, 2021.

Your Fund’s Goal and Main Investments

The Fund seeks to provide absolute return. The Fund seeks to achieve its investment goal by allocating its assets across two underlying alternative investment strategies, which represent top-down and bottom-up approaches to capturing factor-based risk premia. The strategies consist of a top-down risk premia strategy and a bottom-up long/short equity strategy.

Performance Overview

During the 12-month period, the Fund posted cumulative total returns of -8.52% based on market price and -8.70% based on net asset value (NAV). In comparison, the ICE BofA US 3-Month Treasury Bill Index posted a +0.12% total return for the same period.¹ You can find more of the Fund’s performance data in the Performance Summary beginning on page 26.

Investment Strategy

The Fund’s top-down risk premia strategy focuses on value, momentum and carry factors in taking both long and short positions across equity, fixed income, commodity and currency asset classes.

The Fund’s bottom-up long/short equity strategy focuses on quality, value and momentum factors in determining whether to hold long or short positions in individual equity securities. Long/short equity strategies generally seek to produce returns from investments in the equity markets by taking long and short positions in stocks and stock indices (through the use of derivatives or through a short position in an exchange-traded fund). Long positions benefit from an increase in the price of the underlying instrument, while short positions benefit from a decrease in that price.


Portfolio Composition

3/31/21

	% of Total Net Assets
Common Stocks		73.9%
Other Net Assets		26.1%

Under normal market conditions, the top-down risk premia strategy invests primarily in equity, interest rate/bond and commodity index futures; equity and commodity-linked total return swaps; and currency forwards. Under normal market conditions, the bottom-up long/short equity strategy invests primarily in equity securities and equity total return swaps, with equity total return swaps being used to obtain short exposures.

Under normal market conditions, we seek to allocate assets between the two factor-based risk premia alternative investment strategies described above according to each strategy’s estimated risk, as measured by historical returns based risk models. The allocation to each strategy is driven by the estimated risk contribution of each individual strategy to the Fund’s overall investment strategy, which the investment manager seeks to keep within certain pre-determined bounds.

Through the two strategies, we invest the Fund’s assets based on a systematic investment process for securities selection and asset allocation by utilizing quantitative trading models. By employing these two approaches, we seek to provide positive absolute return over time while maintaining a relatively low correlation with traditional markets. The exposure to individual factors may vary based on the market opportunity of the individual factors.

The Fund may use derivatives for both hedging and non-hedging (investment) purposes. The Fund’s derivative investments may include, among other instruments: (i) futures contracts, including futures on equity, interest rate/bond and commodity indices; (ii) swaps, including equity and commodity-linked total return swaps; and (iii) currency forward contracts. These derivatives may be used to enhance Fund returns, increase liquidity, gain long or short exposure to certain instruments, markets or factors in a more efficient or less expensive way and/or hedge risks associated with its other portfolio investments. The results of such transactions

1. 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 Consolidated Statement of Investments (SOI). The Consolidated SOI begins on page 50.



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FRANKLIN LIBERTY SYSTEMATIC STYLE PREMIA ETF


Top 10 Sectors/Industries

3/31/21

	% of Total Net Assets
Capital Markets		4.4%
Semiconductors & Semiconductor Equipment		4.3%
Interactive Media & Services		3.9%
Software		3.8%
Biotechnology		3.8%
Metals & Mining		3.7%
Health Care Equipment & Supplies		3.2%
Banks		3.1%
IT Services		3.1%
Machinery		2.8%

are expected to represent a material component of the Fund’s investment returns.

Manager’s Discussion

The Fund’s net asset value was down six basis points in the first quarter of 2021. We increased risk in our macro strategies (foreign currencies, equity indices, rates and commodities) based on our proprietary risk indicator. The decline in equity markets volatility during the period, as reflected by the Chicago Board Options Exchange’s Volatility Index, led us to increase risk in our long/short equity strategy as well.

In the first quarter of 2021, the Fund’s macro strategies detracted from performance and our long/short equities contributed in similar magnitudes to results, resulting in flat performance.

The Fund’s foreign currency macro strategies had positive results in the first quarter of 2021. Although our long positions in the Turkish Lira and Brazilian Real owing to our foreign currency carry and value factors hurt Fund results, our short positions in the Israeli shekel and Swiss franc helped us with net positive spread in the first quarter of 2021.

Our equity indices macro strategies also had a positive first quarter of 2021. Our equity carry strategy had strong results based on our long positions in Canada, Italy and South Africa versus our short positions in Germany and India.

The Fund’s fixed income macro strategies had a negative first quarter of 2021 and was a significant detractor, especially in the month of February. Our long positions in U.S. Treasuries, Gilts and Canada detracted more from performance than the positive contribution from our short positions in French and German Bunds. We incorporated time-series momentum in March as we rebalanced to soften the impact from the rising rate environment that we have entered in the first quarter of 2021.


Top 10 Long Positions

3/31/21

Company *Sector/Industry, Country*	% of Total Net Assets
FLSP Holdings Corp. Diversified Financial Services, Cayman Islands		4.2%
Facebook Inc., A Interactive Media & Services, United States		1.7%
Alphabet Inc., C Interactive Media & Services, United States		1.6%
Intel Corp. Semiconductors & Semiconductor Equipment, United States		1.2%
Accenture PLC, A IT Services, United States		1.2%
The Procter & Gamble Co. Household Products, United States		1.2%
AbbVie Inc. Biotechnology, United States		1.1%
Thermo Fisher Scientific Inc. Life Sciences Tools & Services, United States		1.1%
Danaher Corp. Health Care Equipment & Supplies, United States		1.1%
QUALCOMM Inc. Semiconductors & Semiconductor Equipment, United States		1.0%


Top 10 Short Holdings

3/31/21

Company *Sector/Industry, Country*	% of Total Net Assets
Nippon Paint Holdings Co. Ltd. Materials, Japan		-0.1%
Odakyu Electric Railway Co. Ltd. Transportation, Japan		-0.1%
Heico Corp Capital Goods, United States		-0.1%
Orpea Health Care Equipment & Services, France		-0.1%
Woolworths Group Ltd Food & Staples Retailing, Australia		-0.1%
Spark New Zealand Ltd. Telecommunication Services, New Zealand		-0.1%
Lendlease Group Real Estate, Australia		-0.1%
Rolls-Royce Holdings PLC Capital Goods, United Kingdom		-0.1%
RELX PLC Commercial & Professional Services, United Kingdom		-0.1%
Welltower Inc Real Estate, United States		-0.1%

Our commodities strategies hampered returns in 2021’s first quarter. The commodity carry strategy had strong



24	Annual Report	franklintempleton.com

FRANKLIN LIBERTY SYSTEMATIC STYLE PREMIA ETF

performance, but our commodity value and commodity momentum strategies detracted from results during the first quarter of 2021.

In our long/short single stock equities strategy, the quality and value factors contributed to performance, and the momentum factor detracted. Our long positions in lower volatility stocks and short positions in higher volatility stocks detracted from returns. In capital terms, the portfolio was net long, and this contributed significantly more to returns than the detraction from our low volatility positioning.

Thank you for your participation in Franklin Liberty Systematic Style Premia ETF. We look forward to serving your future investment needs.

Chandra Seethamraju, Ph.D.

Sundaram Chettiappan, CFA

Vaneet Chadha, CFA

Portfolio Management Team



franklintempleton.com	Annual Report	25

FRANKLIN LIBERTY SYSTEMATIC STYLE PREMIA ETF

Performance Summary as of March 31, 2021

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 (12/20/19), 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 3/31/21¹



	Cumulative Total Return²				Average Annual Total Return²
	Based on NAV³		Based on market price⁴		Based on NAV³		Based on market price⁴
1-Year		-8.70%		-8.52%		-8.70%		-8.52%
Since Inception (12/18/19)		-15.40%		-14.90%		-12.21%		-11.80%

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 recent month-end performance, go to franklintempleton.com or call (800) 342-5236.

See page 28 for Performance Summary footnotes.



26	Annual Report	franklintempleton.com

FRANKLIN LIBERTY SYSTEMATIC STYLE PREMIA ETF

PERFORMANCE SUMMARY

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

12/18/19–3/31/21

LOGO

See page 28 for Performance Summary footnotes.



franklintempleton.com	Annual Report	27

FRANKLIN LIBERTY SYSTEMATIC STYLE PREMIA ETF

PERFORMANCE SUMMARY

Distributions (4/1/20–3/31/21)



Net Investment Income	Short-Term Capital Gain		Total
$0.051081		$1.536873		$1.587954

Total Annual Operating Expenses⁶



With Fee Waiver	Without Fee Waiver
0.65%		1.16%

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. The Fund is actively managed and could experience losses if the manager’s judgment about particular investments, or its evaluation of the risks, potential returns and correlation properties of the various risk premia in which the Fund invests, prove to be incorrect. The manager’s allocation of Fund assets among different strategies, asset classes and investments may not prove beneficial or produce the desired results. Trading models used by the manager for securities selection and asset allocation may become outdated and the historical patterns upon which the models are based may weaken or disappear. There can be no assurance that the factor-based risk premia investment strategies utilized by the manager will enhance Fund performance, reduce volatility or reduce potential loss. 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. Investing in derivatives and the use of foreign currency techniques involve special risks and may not achieve the anticipated benefits and/or may result in losses to the Fund. Other risks include illiquidity, mispricing or improper valuation of the derivative, and imperfect correlation between the value of the derivative and the underlying instrument. The Fund may realize losses when a counterparty fails to perform as promised. Currency management strategies could result in losses to the Fund if currencies do not perform as the manager expects. 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 an issuer’s financial strength or in a security’s credit rating may affect its value. Liquidity risk exists when securities or other investments become more difficult to sell, or are unable to be sold, at the price at which they’ve been valued. 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 particular countries, regions, industries, sectors or types of investment from time to time, it may be subject to greater risks or adverse developments in such areas of focus than a Fund that invests in a wider variety of countries, regions, industries or sectors or investments. Events such as the spread of deadly diseases, disasters, and financial, political or social disruptions, may heighten risks and adversely affect performance. 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. Source: Factset. The ICE BofA U.S. 3-Month Treasury Bill Index tracks the performance of short-term U.S. government securities with a remaining term to final maturity of less than three months.

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



28	Annual Report	franklintempleton.com

FRANKLIN LIBERTY SYSTEMATIC STYLE PREMIA 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

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


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

Beginning Account Value 10/1/20		Ending Account Value 3/31/21		Expenses Paid During Period 10/1/20–3/31/21^1,2		Ending Account Value 3/31/21		Expenses Paid During Period 10/1/20–3/31/21^1,2		Net Annualized Expense Ratio²
	$1,000.00	$	944.40	$	3.05	$	1,021.79	$	3.18		0.65	%

2. Reflects expenses after fee waivers and expense reimbursements.



franklintempleton.com	Annual Report	29

FRANKLIN TEMPLETON ETF TRUST

Financial Highlights

Franklin Liberty High Yield Corporate ETF



	Year Ended March 31,

	2021			2020			2019^a

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

Net asset value, beginning of year	$	22.67		$	25.45		$	25.00


Income from investment operations^b:

Net investment income^c		1.23			1.33			1.21

Net realized and unrealized gains (losses)		3.73			(2.51	)		0.49


Total from investment operations		4.96			(1.18	)		1.70


Less distributions from:

Net investment income		(1.47	)		(1.56	)		(1.23	)

Net realized gains		—			(0.04	)		(0.02	)


Total Distributions		(1.47	)		(1.60	)		(1.25	)


Net asset value, end of year	$	26.16		$	22.67		$	25.45


Total return^d		22.28%			(5.12)%			7.07%

Ratios to average net assets^e

Expenses before waiver and payments by affiliates		0.64%			0.86%			1.54%

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

Net investment income		4.84%			5.29%			5.80%

Supplemental data

Net assets, end of year (000’s)		$346,586			$130,362			$10,181

Portfolio turnover rate^f		53.18%	^g		129.98%	^g		23.57%

^aFor the period May 30, 2018 (commencement of operations) to March 31, 2019.

^cBased on average daily shares outstanding.

^eRatios are annualized for periods less than one year.

^fPortfolio turnover rate includes portfolio transactions that are executed as a result of the Fund offering and redeeming Creation Units solely for cash (“Cash creations”).

^gPortfolio turnover rate excluding cash creations was as follows:

53.18%

129.98%



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

FRANKLIN TEMPLETON ETF TRUST

Statement of Investments, March 31, 2021

Franklin Liberty High Yield Corporate ETF



		Country		Principal Amount*		Value
	Corporate Bonds & Notes 98.0%
	Airlines 1.3%
	American Airlines Inc./AAdvantage Loyalty IP Ltd., ^a senior secured note, 144A, 5.75%, 4/20/29		United States		400,000	$	425,960
	^a senior secured note, 144A, 5.500%, 5.50%, 4/20/26		United States		2,200,000		2,292,268
a	Delta Air Lines Inc./SkyMiles IP Ltd., senior secured note, 144A, 4.75%, 10/20/28		United States		1,700,000		1,850,064


							4,568,292

	Automobiles & Components 4.0%
a	Adient U.S. LLC, senior secured note, 144A, 7.00%, 5/15/26		United States		1,700,000		1,813,280
a	Allison Transmission Inc., senior bond, 144A, 3.75%, 1/30/31		United States		3,200,000		3,106,000
	Dana Inc., senior note, 5.625%, 6/15/28		United States		1,900,000		2,036,106
a	Navistar International Corp., senior note, 144A, 6.625%, 11/01/25		United States		1,900,000		1,973,682
a	Real Hero Merger Sub 2 Inc., senior note, 144A, 6.25%, 2/01/29		United States		2,900,000		2,997,875
	The Goodyear Tire & Rubber Co., senior bond, 4.875%, 3/15/27		United States		1,800,000		1,855,125


							13,782,068

	Capital Goods 7.6%
a	ATS Automation Tooling Systems Inc., senior note, 144A, 4.125%, 12/15/28		Canada		3,000,000		2,979,375
a	Beacon Roofing Supply Inc., senior note, 144A, 4.875%, 11/01/25		United States		2,000,000		2,048,630
a	Cemex SAB de CV, senior secured note, 144A, 5.200%, 5.20%, 9/17/30		Mexico		1,200,000		1,299,906
a	Cornerstone Building Brands Inc., senior note, 144A, 6.125%, 1/15/29		United States		700,000		746,812
a	Harsco Corp., senior note, 144A, 5.75%, 7/31/27		United States		1,100,000		1,128,187
	Jeld-Wen Inc., ^a senior bond, 144A, 4.875%, 12/15/27		United States		1,600,000		1,658,480
	^a senior note, 144A, 4.625%, 12/15/25		United States		500,000		508,073
a	NCI Building Systems Inc., senior secured note, 144A, 8.00%, 4/15/26		United States		3,100,000		3,231,905
a	Stericycle Inc., Senior note, 144A, 3.875%, 1/15/29		United States		1,800,000		1,779,750
a	Summit Materials LLC / Summit Materials Finance Corp., senior note, 144A, 5.25%, 1/15/29		United States		900,000		940,500
a	The Manitowoc Co. Inc., secured note, second lien, 144A, 9.00%, 4/01/26		United States		2,200,000		2,377,375
a	TransDigm Inc., senior secured note, 144A, 6.25%, 3/15/26		United States		3,600,000		3,821,238
a	Vertical Holdco GmbH, 144A, 7.625%, 7/15/28		Germany		300,000		323,138
a	Vertical U.S. Newco Inc., senior note, 144A, 5.25%, 7/15/27		Germany		1,400,000		1,468,250
	WESCO Distribution Inc., ^a senior note, 144A, 7.125%, 6/15/25		United States		1,000,000		1,094,825
	^a senior note, 144A, 7.25%, 6/15/28		United States		900,000		1,006,020


							26,412,464

	Commercial & Professional Services 3.7%
a	Ahern Rentals Inc., secured note, senior lien, 144A, 7.375%, 5/15/23		United States		1,900,000		1,715,938
a	H&E Equipment Services Inc., senior note, 144A, 3.875%, 12/15/28		United States		1,300,000		1,265,875
a	Herc Holdings Inc., senior note, 144A, 5.50%, 7/15/27		United States		2,100,000		2,238,757
a	MPH Acquisition Holdings LLC, senior note, 144A, 5.75%, 11/01/28		United States		2,700,000		2,635,875
a	NESCO Holdings II Inc., secured note, 144A, 5.50%, 4/15/29		United States		1,100,000		1,129,755
a	Prime Security Services Borrower LLC/Prime Finance Inc., senior secured note, first lien, 144A, 3.375%, 8/31/27		United States		800,000		777,000
a	Rent-A-Center Inc., 144A, 6.375%, 2/15/29		United States		2,700,000		2,868,750


							12,631,950

	Consumer Durables & Apparel 2.1%
a	Ashton Woods USA LLC/Ashton Woods Finance Co., senior note, 144A, 9.875%, 4/01/27		United States		3,400,000		3,828,604
a	Williams Scotsman International Inc., senior secured note, 144A, 4.625%, 8/15/28		United States		3,400,000		3,470,125


							7,298,729



franklintempleton.com	Annual Report	31

FRANKLIN TEMPLETON ETF TRUST

STATEMENT OF INVESTMENTS

Franklin Liberty High Yield Corporate ETF (continued)



		Country		Principal Amount*		Value
	Corporate Bonds & Notes (continued)
	Consumer Services 5.8%
a	1011778 BC ULC/New Red Finance Inc., senior secured bond, second lien, 144A, 4.00%, 10/15/30		Canada		1,600,000	$	1,546,000
a,b	24 Hour Holdings III LLC, senior note, 144A, 8.00%, 6/01/22		United States		800,000		240
a	Boyd Gaming Corp., senior note, 144A, 8.625%, 6/01/25		United States		1,700,000		1,892,525
	Carnival Corp., ^a 144A, 7.625%, 3/01/26		United States		2,200,000		2,366,210
	^a senior note, 144A, 5.75%, 3/01/27		United States		2,000,000		2,055,000
a	Downstream Development Authority of the Quapaw Tribe of Oklahoma, secured note, 144A, 10.50%, 2/15/23		United States		100,000		103,865
a	Golden Nugget Inc., senior note, 144A, 6.75%, 10/15/24		United States		900,000		911,178
a	International Game Technology PLC, senior secured note, first lien, 144A, 5.25%, 1/15/29		United States		900,000		940,144
a	Melco Resorts Finance Ltd., senior note, 144A, 5.75%, 7/21/28		Hong Kong		1,200,000		1,280,250
a	NCL Corp. Ltd., senior note, 144A, 5.875%, 3/15/26		United States		2,000,000		2,023,000
a	Studio City Finance Ltd., 144A, 5.00%, 1/15/29		United States		2,300,000		2,311,385
a	Wynn Las Vegas LLC/Wynn Las Vegas Capital Corp., senior bond, 144A, 5.50%, 3/01/25		United States		2,300,000		2,432,825
a	Wynn Macau Ltd., senior note, 144A, 5.625%, 8/26/28		Cayman Islands		800,000		837,740
a	Wynn Resorts Finance LLC/Wynn Resorts Capital Corp., senior note, 144A, 7.75%, 4/15/25		United States		1,400,000		1,519,420


							20,219,782

	Diversified Financials 6.6%
a	Five Point Operating Co. LP/Five Point Capital Corp., senior note, 144A, 7.875%, 11/15/25		United States		2,000,000		2,094,000
a	Global Net Lease Inc./Global Net Lease Operating Partnership LP, senior note, 144A, 3.75%, 12/15/27		United States		3,300,000		3,220,356
a	HAT Holdings I LLC/HAT Holdings II LLC, senior note, 144A, 6.00%, 4/15/25		United States		200,000		211,250
a	MGM Growth Properties Operating Partnership LP/MGP Finance Co-Issuer Inc., senior note, 144A, 3.875%, 2/15/29		United States		1,500,000		1,497,000
	MPT Operating Partnership LP/MPT Finance Corp., senior bond, 5.00%, 10/15/27		United States		1,300,000		1,369,914
	senior bond, 3.50%, 3/15/31		United States		2,000,000		1,965,140
a	Park Intermediate Holdings LLC/PK Domestic Property LLC/PK Finance Co-Issuer, senior note, 144A, 5.875%, 10/01/28		United States		3,000,000		3,186,375
	Quicken Loans LLC/Quicken Loans Co-Issuer Inc., ^a senior bond, 144A, 3.875%, 3/01/31		United States		800,000		772,000
	^asenior note, 144A, 3.625%, 3/01/29		United States		200,000		192,875
	Springleaf Finance Corp., senior bond, 5.375%, 11/15/29		United States		2,100,000		2,239,125
	senior note, 6.625%, 1/15/28		United States		1,400,000		1,589,000
	The Howard Hughes Corp., ^a 144A, 4.125%, 2/01/29		United States		2,100,000		2,055,837
	^a senior note, 144A, 5.375%, 8/01/28		United States		1,000,000		1,053,125
a	United Shore Financial Services LLC, senior note, 144A, 5.50%, 11/15/25		United States		1,200,000		1,252,500


							22,698,497

	Energy 12.8%
	Antero Resources Corp., ^a 144A, 7.625%, 2/01/29		United States		1,200,000		1,280,250
	^a Senior note, 144A, 8.375%, 7/15/26		United States		1,400,000		1,546,125
	Apache Corp., senior note, 4.625%, 11/15/25		United States		900,000		928,395
	^c senior note, Reg S, 4.875%, 11/15/27		United States		1,900,000		1,950,350
	Calumet Specialty Products Partners LP/Calumet Finance Corp., senior note, 7.75%, 4/15/23		United States		2,000,000		1,992,510



32	Annual Report	franklintempleton.com

FRANKLIN TEMPLETON ETF TRUST

STATEMENT OF INVESTMENTS

Franklin Liberty High Yield Corporate ETF (continued)



		Country		Principal Amount*		Value
	Corporate Bonds & Notes (continued)
	Energy (continued)
	Cenovus Energy Inc., senior bond, 6.75%, 11/15/39		Canada		1,100,000	$	1,382,622
	senior bond, 5.40%, 6/15/47		Canada		100,000		111,574
	senior note, 5.375%, 7/15/25		Canada		1,400,000		1,574,492
	Cheniere Energy Inc., 4.625%, 4.625%, 10/15/28		United States		3,400,000		3,535,286
	Cheniere Energy Partners LP, ^a 144A, 4.00%, 3/01/31		United States		600,000		611,250
	senior note, 4.50%, 10/01/29		United States		1,900,000		1,973,169
a	Continental Resources Inc./OK, senior bond, 144A, 5.75%, 1/15/31		United States		2,000,000		2,262,720
	Crestwood Midstream Partners LP/Crestwood Midstream Finance Corp., ^a 144A, 6.00%, 2/01/29		United States		200,000		197,375
	senior note, 5.75%, 4/01/25		United States		600,000		604,812
	^a senior note, 144A, 5.625%, 5/01/27		United States		2,100,000		2,067,187
a	CSI Compressco LP/CSI Compressco Finance Inc., senior secured note, first lien, 144A, 7.50%, 4/01/25		United States		1,600,000		1,629,000
a	CVR Energy Inc., senior note, 144A, 5.25%, 2/15/25		United States		2,500,000		2,446,250
a	Endeavor Energy Resources LP/EER Finance Inc., senior note, 144A, 6.625%, 7/15/25		United States		500,000		535,150
	EnLink Midstream LLC, senior bond, 5.375%, 6/01/29		United States		1,100,000		1,030,563
	EnLink Midstream Partners LP, senior note, 4.15%, 6/01/25		United States		2,400,000		2,352,504
	Hilcorp Energy I LP/Hilcorp Finance Co., ^a senior note, 144A, 6.00%, 2/01/31		United States		1,900,000		1,932,062
	^a senior note, 144A, 5.75%, 2/01/29		United States		1,300,000		1,313,813
a	Martin Midstream Partners LP/Martin Midstream Finance Corp., senior note, second lien, 144A, 11.50%, 2/28/25		United States		86,248		87,542
a	Nabors Industries Ltd., senior note, 144A, 7.25%, 1/15/26		United States		2,100,000		1,746,937
a	Oasis Midstream Partners LP/OMP Finance Corp., senior note, 144A, 8.00%, 4/01/29		United States		1,200,000		1,233,000
	Occidental Petroleum Corp., senior bond, 6.45%, 9/15/36		United States		300,000		331,578
	senior bond, 8.875%, 7/15/30		United States		1,900,000		2,398,750
	senior bond, 6.625%, 9/01/30		United States		200,000		225,060
	senior note, 5.55%, 3/15/26		United States		2,100,000		2,223,942
	senior note, 6.125%, 1/01/31		United States		600,000		663,645
	senior note, FRN, 1.644%, 8/15/22		United States		100,000		98,979
	Sunoco LP/Sunoco Finance Corp., senior note, 6.00%, 4/15/27		United States		1,000,000		1,047,500
	^a senior note, 144A, 4.50%, 5/15/29		United States		800,000		798,500
a	Viper Energy Partners LP, senior note, 144A, 5.375%, 11/01/27		United States		200,000		208,375


							44,321,267

	Food, Beverage & Tobacco 3.8%
a	Chobani LLC/Chobani Finance Corp. Inc., first lien, 144A, 4.625%, 11/15/28		United States		2,800,000		2,863,000
a	JBS USA LUX SA/JBS USA Food Co./JBS USA Finance Inc., senior bond, 144A, 5.50%, 1/15/30		United States		1,600,000		1,774,000
	Kraft Heinz Foods Co., 3.875%, 5/15/27		United States		1,300,000		1,416,943
	4.25%, 3/01/31		United States		2,000,000		2,204,514
	6.75%, 3/15/32		United States		1,600,000		2,089,316
	Post Holdings Inc., ^a senior bond, 144A, 4.625%, 4/15/30		United States		1,800,000		1,806,750
	^asenior note, 144A, 4.50%, 9/15/31		United States		900,000		891,225


							13,045,748



franklintempleton.com	Annual Report	33

FRANKLIN TEMPLETON ETF TRUST

STATEMENT OF INVESTMENTS

Franklin Liberty High Yield Corporate ETF (continued)



		Country		Principal Amount*		Value
	Corporate Bonds & Notes (continued)
	Health Care Equipment & Services 4.7%
	Centene Corp., senior note, 4.25%, 12/15/27		United States		2,200,000	$	2,316,878
	senior note, 2.50%, 3/01/31		United States		1,000,000		956,270
	Charles River Laboratories International Inc., ^a 144A, 3.75%, 3/15/29		United States		1,900,000		1,905,377
	^a 144A, 4.00%, 3/15/31		United States		400,000		407,120
	CHS/Community Health Systems Inc., ^a secured note, 144A, 6.875%, 4/15/29		United States		1,600,000		1,676,992
	^a senior secured note, 144A, 6.00%, 1/15/29		United States		800,000		847,000
a	DaVita Inc., 144A, 4.625%, 6/01/30		United States		1,300,000		1,326,143
	HCA Inc., senior bond, 3.50%, 9/01/30		United States		1,300,000		1,312,507
a	MEDNAX Inc., senior note, 144A, 6.25%, 1/15/27		United States		900,000		963,513
a	Molina Healthcare Inc., senior note, 144A, 3.875%, 11/15/30		United States		800,000		825,000
a	Tenet Healthcare Corp., senior note, 144A, 6.125%, 10/01/28		United States		1,500,000		1,567,500
a	The Providence Service Corp., senior note, 144A, 5.875%, 11/15/25		United States		2,200,000		2,319,625


							16,423,925

	Household & Personal Products 2.0%
	Spectrum Brands Inc., ^a 144A, 3.875%, 3/15/31		United States		400,000		392,500
	^a senior bond, 144A, 5.50%, 7/15/30		United States		2,300,000		2,465,313
a	VM Consolidated Inc., senior note, 144A, 5.50%, 4/15/29		United States		800,000		820,744
	Weekley Homes LLC/Weekley Finance Corp., senior note, 4.875%, 9/15/28		United States		3,300,000		3,390,750


							7,069,307

	Insurance 1.5%
a	Alliant Holdings Intermediate LLC/Alliant Holdings Co-Issuer, senior note, 144A, 6.75%, 10/15/27		United States		2,000,000		2,132,120
	MGIC Investment Corp., senior note, 5.25%, 8/15/28		United States		1,000,000		1,040,625
	Radian Group Inc., senior note, 6.625%, 3/15/25		United States		1,700,000		1,907,961


							5,080,706

	Materials 12.3%
a,d	Anagram International Inc./Anagram Holdings LLC, second lien, 144A, PIK, 10.00%, 8/15/26		United States		60,418		59,512
	Arcosa Inc. 4.375%, 4/15/29		United States		600,000		610,878
a	Ardagh Metal Packaging Finance USA LLC/Ardagh Metal Packaging Finance PLC, senior note, 144A, 4.00%, 9/01/29		United States		1,500,000		1,499,430
	Ardagh Packaging Finance PLC/Ardagh Holdings USA Inc., ^a senior note, 144A, 5.25%, 8/15/27		Luxembourg		1,200,000		1,225,296
	^a senior secured note, first lien, 144A, 5.25%, 4/30/25		Luxembourg		900,000		947,097
a	Axalta Coating Systems LLC, senior note, 144A, 3.375%, 2/15/29		United States		1,300,000		1,270,197
	Commercial Metals Co., senior note, 3.875%, 2/15/31		United States		2,800,000		2,751,588
a	Constellium SE, 144A, 3.75%, 4/15/29		France		2,000,000		1,914,660
a	Element Solutions Inc., senior note, 144A, 3.875%, 9/01/28		United States		3,500,000		3,460,187
a	FMG Resources August 2006 Pty Ltd., 144A, 4.375%, 4/01/31		Australia		1,700,000		1,732,946
a	Gates Global LLC/Gates Corp., senior note, 144A, 6.25%, 1/15/26		United States		1,800,000		1,888,506
	Goodrich Pete Corp. 13.50%, 5/31/23		United States		800,000		800,000
a	GPD Companies Inc., senior secured note, 144A, 10.125%, 4/01/26		United States		1,000,000		1,102,500
	HB Fuller Co., Senior note, 4.25%, 10/15/28		United States		2,500,000		2,544,837
a	Illuminate Buyer LLC/Illuminate Holdings IV Inc., senior note, 144A, 9.00%, 7/01/28		United States		1,000,000		1,126,550
a	Ingevity Corp., senior note, 144A, 3.875%, 11/01/28		United States		1,100,000		1,069,063
	Mauser Packaging Solutions Holding Co., ^a senior note, 144A, 7.25%, 4/15/25		United States		2,200,000		2,202,750
	^a senior note, 144A, 8.50%, 4/15/24		United States		1,500,000		1,560,000



34	Annual Report	franklintempleton.com

FRANKLIN TEMPLETON ETF TRUST

STATEMENT OF INVESTMENTS

Franklin Liberty High Yield Corporate ETF (continued)



		Country		Principal Amount*		Value
	Corporate Bonds & Notes (continued)
	Materials (continued)
	Methanex Corp., senior note, 5.25%, 12/15/29		Canada		700,000	$	723,317
	senior note, 5.125%, 10/15/27		Canada		1,700,000		1,740,375
a	Neon Holdings Inc., senior note, 144A, 10.125%, 4/01/26		United States		850,000		930,750
a	Novelis Corp., senior bond, 144A, 4.75%, 1/30/30		United States		900,000		929,318
a	Owens-Brockway Glass Container Inc., senior note, 144A, 5.875%, 8/15/23		United States		2,000,000		2,146,250
a	Plastipak Holdings Inc., senior note, 144A, 6.25%, 10/15/25		United States		500,000		515,313
a	Rain CII Carbon LLC/CII Carbon Corp., senior note, second lien, 144A, 7.25%, 4/01/25		United States		1,400,000		1,453,655
a	Reynolds Group Issuer Inc./Reynolds Group Issuer LLC/Reynolds Group Issuer Luxembourg SA, senior secured note, 4.000%, 4.00%, 10/15/27		United States		1,800,000		1,766,250
a	Sealed Air Corp., senior bond, 144A, 5.125%, 12/01/24		United States		1,400,000		1,519,875
a	Trivium Packaging Finance BV, senior secured note, 144A, 5.50%, 8/15/26		Netherlands		3,100,000		3,256,937


							42,748,037

	Media & Entertainment 12.3%
a	Banijay Entertainment SASU, senior note, 144A, 5.375%, 3/01/25		France		2,200,000		2,278,375
a	Caesars Entertainment Inc., senior secured note, 144A, 6.25%, 7/01/25		United States		1,900,000		2,027,813
a	Caesars Resort Collection LLC/CRC Finco Inc., first lien, 144A, 5.75%, 7/01/25		United States		900,000		950,895
	CCO Holdings LLC/CCO Holdings Capital Corp., ^a 144A, 4.25%, 2/01/31		United States		1,200,000		1,204,164
	^a senior bond, 144A, 5.375%, 6/01/29		United States		500,000		536,820
	^a senior bond, 144A, 4.50%, 8/15/30		United States		2,500,000		2,551,137
a	Clear Channel International BV, senior secured note, first lien, 144A, 6.625%, 8/01/25		United States		1,900,000		1,992,834
a	Clear Channel Worldwide Holdings Inc., senior secured note, first lien, 144A, 5.125%, 8/15/27		United States		1,200,000		1,208,400
a	CSC Holdings LLC, senior note, 144A, 7.50%, 4/01/28		United States		2,900,000		3,202,136
a	Diamond Sports Group LLC/Diamond Sports Finance Co., senior note, 144A, 6.625%, 8/15/27		United States		1,100,000		573,375
a	Gray Escrow Inc., senior note, 144A, 7.00%, 5/15/27		United States		3,200,000		3,484,000
a	International Game Technology PLC, senior secured note, 144A, 4.125%, 4/15/26		United Kingdom		1,400,000		1,442,112
a	LCPR Senior Secured Financing DAC, senior secured note, first lien, 144A, 6.75%, 10/15/27		United States		2,300,000		2,455,020
a	Live Nation Entertainment Inc., senior secured note, 144A, 3.75%, 1/15/28		United States		1,800,000		1,778,625
	Netflix Inc., senior bond, 5.875%, 2/15/25		United States		800,000		918,500
	senior bond, 5.75%, 3/01/24		United States		1,100,000		1,235,647
	^a senior bond, 144A, 4.875%, 6/15/30		United States		2,000,000		2,305,580
	Nexstar Broadcasting Inc., ^a senior note, 144A, 5.625%, 7/15/27		United States		1,100,000		1,154,654
	^a senior note, 144A, 4.75%, 11/01/28		United States		800,000		809,928
a	Northwest Fiber LLC/Northwest Fiber Finance Sub Inc., senior note, 144A, 6.00%, 2/15/28		United States		3,700,000		3,700,000
a	Outfront Media Capital LLC/Outfront Media Capital Corp., senior note, 144A, 4.25%, 1/15/29		United States		1,200,000		1,156,764
	Sinclair Television Group Inc., ^a senior bond, 144A, 5.50%, 3/01/30		United States		900,000		876,771
	^a senior bond, 144A, 5.125%, 2/15/27		United States		1,500,000		1,467,187
a	Univision Communications Inc., senior note, 144A, 6.625%, 6/01/27		United States		1,500,000		1,604,700
a	Virgin Media Secured Finance PLC, senior secured bond, 144A, 4.50%, 8/15/30		United Kingdom		800,000		807,800



franklintempleton.com	Annual Report	35

FRANKLIN TEMPLETON ETF TRUST

STATEMENT OF INVESTMENTS

Franklin Liberty High Yield Corporate ETF (continued)



		Country		Principal Amount*		Value
	Corporate Bonds & Notes (continued)
	Media & Entertainment (continued)
a	WMG Acquisition Corp., senior bond, 144A, 3.00%, 2/15/31		United States		1,000,000	$	952,800


							42,676,037

	Pharmaceuticals, Biotechnology & Life Sciences 4.3%
a	Bausch Health Americas Inc., senior note, 144A, 9.25%, 4/01/26		United States		3,000,000		3,327,900
	Bausch Health Cos. Inc., ^a senior bond, 144A, 5.25%, 2/15/31		United States		300,000		299,128
	^a senior note, 144A, 5.00%, 2/15/29		United States		800,000		796,000
a	Catalent Pharma Solutions Inc., senior note, 144A, 5.00%, 7/15/27		United States		1,900,000		1,993,461
a	Emergent BioSolutions Inc., senior note, 144A, 3.875%, 8/15/28		United States		3,200,000		3,134,000
a	Par Pharmaceutical Inc., senior secured note, 144A, 7.50%, 4/01/27		United States		3,300,000		3,504,468
a	Prestige Brands Inc., 144A, 3.75%, 4/01/31		United States		500,000		478,125
	Teva Pharmaceutical Finance Netherlands III BV, senior bond, 3.15%, 10/01/26		Israel		1,500,000		1,436,250


							14,969,332

	Retailing 1.2%
a	FirstCash Inc., senior note, 144A, 4.625%, 9/01/28		United States		900,000		919,688
a	L Brands Inc., senior bond, 144A, 6.625%, 10/01/30		United States		1,000,000		1,143,675
a	Lithia Motors Inc., senior note, 144A, 4.625%, 12/15/27		United States		1,800,000		1,873,125
	Party City Holdings Inc. 5.75%, 7/15/25		United States		108,825		100,391


							4,036,879

	Semiconductors & Semiconductor Equipment 1.1%
a	Amkor Technology Inc., senior note, 144A, 6.625%, 9/15/27		United States		1,200,000		1,300,500
a	ON Semiconductor Corp., senior note, 144A, 3.875%, 9/01/28		United States		2,500,000		2,574,750


							3,875,250

	Software & Services 2.1%
a	Blackboard Inc., secured note, second lien, 144A, 10.375%, 11/15/24		United States		500,000		530,313
	Gartner Inc., ^a senior bond, 144A, 3.75%, 10/01/30		United States		1,300,000		1,290,874
	^a senior note, 144A, 4.50%, 7/01/28		United States		1,000,000		1,032,500
a	Rocket Software Inc., senior note, 144A, 6.50%, 2/15/29		United States		1,700,000		1,718,487
a	ZoomInfo Technologies LLC/ZoomInfo Finance Corp., 144A, 3.875%, 2/01/29		United States		2,900,000		2,851,367


							7,423,541

	Technology Hardware & Equipment 2.1%
a	CommScope Inc., senior secured note, 144A, 7.125%, 7/01/28		United States		3,300,000		3,509,220
a	Presidio Holdings Inc., senior note, 144A, 8.25%, 2/01/28		United States		100,000		109,063
	Tempo Acquisition LLC/Tempo Acquisition Finance Corp., ^a senior note, 144A, 6.75%, 6/01/25		United States		2,300,000		2,353,187
	^a senior note, 144A, 5.75%, 6/01/25		United States		1,100,000		1,164,625


							7,136,095

	Telecommunication Services 2.6%
a	Altice France Holding SA, senior note, 144A, 10.50%, 5/15/27		Luxembourg		2,800,000		3,154,466
a	Altice France SA, senior note, first lien, 144A, 8.125%, 2/01/27		France		1,800,000		1,975,041
a	CommScope Technologies LLC, 144A, 5.00%, 3/15/27		United States		1,500,000		1,488,758
	T-Mobile USA Inc., 2.625%, 2/15/29		United States		700,000		680,603
	2.875%, 2/15/31		United States		1,600,000		1,548,400


							8,847,268



36	Annual Report	franklintempleton.com

FRANKLIN TEMPLETON ETF TRUST

STATEMENT OF INVESTMENTS

Franklin Liberty High Yield Corporate ETF (continued)



		Country		Principal Amount*		Value
	Corporate Bonds & Notes (continued)
	Utilities 4.1%
	Calpine Corp., ^a first lien, 144A, 4.50%, 2/15/28		United States		1,300,000	$	1,312,870
	^a senior note, 144A, 5.125%, 3/15/28		United States		1,700,000		1,710,311
	^a senior secured note, 144A, 3.75%, 3/01/31		United States		1,300,000		1,240,980
	Clearway Energy Operating LLC, senior bond, 5.00%, 9/15/26		United States		1,600,000		1,655,960
a	Sensata Technologies B.V., 144A, 4.00%, 4/15/29		Netherlands		1,900,000		1,937,819
	Talen Energy Supply LLC, senior note, 6.50%, 6/01/25		United States		1,000,000		805,000
	^a senior note, 144A, 7.625%, 6/01/28		United States		1,200,000		1,217,250
a	TTM Technologies Inc., 144A, 4.00%, 3/01/29		United States		1,300,000		1,285,375
a	Vistra Operations Co. LLC, senior note, 144A, 5.50%, 9/01/26		United States		3,000,000		3,112,500


							14,278,065

	Total Corporate Bonds & Notes (Cost $ 334,628,299)						339,543,239

	Common Stocks 0.0%^†
	Retailing 0.0%^†
e	Party City Holdco Inc.		United States		11,074		64,229

	Total Common Stocks (Cost $18,161)						64,229

	Total Investments (Cost $334,646,460) 98.0%						339,607,468
	Other Assets, less Liabilities 2.0%						6,978,750

	Net Assets 100.0%					$	346,586,218

See Abbreviations on page 85.

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

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

^aSecurity was purchased pursuant to Rule 144A under the Securities Act of 1933 and may be sold in transactions exempt from registration only to qualified institutional buyers or in a public offering registered under the Securities Act of 1933. At March 31, 2021, the aggregate value of these securities was $269,875,588, representing 77.9% of net assets.

^bDefaulted Securities.

^cSecurity was purchased pursuant to Regulation S under the Securities Act of 1933, which exempts from registration securities offered and sold outside of the United States. Such a security cannot be sold in the United States without either an effective registration statement filed pursuant to the Securities Act of 1933, or pursuant to an exemption from registration. At March 31, 2021, the value of this security was $1,950,350, representing 0.6% of net assets.

^dIncome may be received in additional securities and/or cash.

^eNon-income producing.



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

FRANKLIN TEMPLETON ETF TRUST

Financial Highlights

Franklin Liberty International Aggregate Bond ETF



	Year Ended March 31,

	2021			2020			2019^a

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

Net asset value, beginning of year	$	24.95		$	24.56		$	25.00


Income from investment operations^b:

Net investment income (loss)^c		(0.01	)		0.22			0.39

Net realized and unrealized gains (losses)		0.19			0.78			(0.40	)


Total from investment operations		0.18			1.00			(0.01	)


Less distributions from:

Net investment income		(0.11	)		(0.09	)		(0.43	)

Net realized gains		—			(0.52	)		—


Total Distributions		(0.11	)		(0.61	)		(0.43	)


Net asset value, end of year	$	25.02		$	24.95		$	24.56


Total return^d		0.72%			4.05%			0.00%

Ratios to average net assets^e

Expenses before waiver and payments by affiliates		0.58%			3.23%			2.32%

Expenses net of waiver and payments by affiliates		0.25%			0.28%			0.35%

Net investment income (loss)		(0.03)%			0.87%			1.91%

Supplemental data

Net assets, end of year (000’s)		$181,405			$4,989			$4,912

Portfolio turnover rate^f		72.21%	^g		66.78%	^g		50.32%

^aFor the period May 30, 2018 (commencement of operations) to March 31, 2019.

^cBased on average daily shares outstanding.

^eRatios are annualized for periods less than one year.

^fPortfolio turnover rate includes portfolio transactions that are executed as a result of the Fund offering and redeeming Creation Units solely for cash (“Cash creations”).

^gPortfolio turnover rate excluding cash creations was as follows:

72.21%

66.78%



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

FRANKLIN TEMPLETON ETF TRUST

Statement of Investments, March 31, 2021

Franklin Liberty International Aggregate Bond ETF



		Principal Amount*			Value
	Foreign Government and Agency Securities 89.2%
	Australia 3.6%
a	Australia Government Bond, senior bond, Reg S, 2.75%, 6/21/35		1,600,000	AUD	$	1,305,424
	Government of Australia, ^a senior bond, 137, Reg S, 2.75%, 4/21/24		1,600,000	AUD		1,312,658
	^a senior bond, 149, Reg S, 2.25%, 5/21/28		1,600,000	AUD		1,297,391
a	New South Wales Treasury Corp., senior bond, Reg S, 3.00%, 5/20/27		1,000,000	AUD		843,201
a,b	Queensland Treasury Corp., senior bond, 144A, Reg S, 3.25%, 8/21/29		1,000,000	AUD		854,432
a	Western Australian Treasury Corp., senior note, 26, Reg S, 3.00%, 10/21/26		1,000,000	AUD		842,549


						6,455,655

	Austria 1.5%
	Government of Austria, ^a,b 144A, Reg S, 1.20%, 10/20/25		1,000,000	EUR		1,268,932
	^a,b senior bond, 144A, Reg S, 1.50%, 2/20/47		1,000,000	EUR		1,472,189


						2,741,121

	Belgium 3.2%
a,b	Government of Belgium, unsecured bond, 144A, Reg S, 1.00%, 6/22/31		4,500,000	EUR		5,849,193

	Canada 5.1%
	Government of Canada, 1.25%, 3/01/25		3,100,000	CAD		2,519,542
	1.25%, 6/01/30		600,000	CAD		468,556
	5.00%, 6/01/37		1,900,000	CAD		2,186,459
	senior bond, 2.00%, 9/01/23		4,000,000	CAD		3,313,090
	senior bond, 2.00%, 12/01/51		950,000	CAD		759,781


						12,560,518

	China 4.5%
	Agricultural Development Bank of China, 3.45%, 9/23/25		10,750,000	CNY		1,642,206
	China Development Bank, senior note, 2003, 3.23%, 1/10/25		11,750,000	CNY		1,783,843
	senior note, 2004, 3.43%, 1/14/27		11,700,000	CNY		1,773,320
	China Government Bond, 2.85%, 6/04/27		10,800,000	CNY		1,613,083
	The Export-Import Bank of China, 2.17%, 4/07/23		9,000,000	CNY		1,353,568


						8,166,020

	Cyprus 1.1%
a	Government of Cyprus, Reg S, 1.50%, 4/16/27		1,600,000	EUR		2,036,126

	France 4.5%
	French Republic Government Bond OAT, ^a,b 144A, Reg S, 1.50%, 5/25/50		800,000	EUR		1,120,672
	^a,c Reg S, 11/25/29		2,350,000	EUR		2,792,073
	Government of France, ^a,b 144A, Reg S, 0.75%, 5/25/52		800,000	EUR		923,945
	^a Reg S, 1.00%, 11/25/25		2,700,000	EUR		3,394,728


						8,231,418

	Germany 22.1%
	Government of Germany, ^a Reg S, 4.25%, 7/04/39		1,750,000	EUR		3,655,663
	^a Reg S, 5.50%, 1/04/31		900,000	EUR		1,671,476
	^a,c senior bond, 178, Reg S, 10/13/23		7,200,000	EUR		8,601,180
	^a,c senior bond, 180, Reg S, 10/18/24		7,000,000	EUR		8,417,135
	^a,c senior bond, Reg S, 8/15/26		11,000,000	EUR		13,344,624
	^a,c Strip, Reg S, 10/08/21		1,450,000	EUR		1,705,930
	KFW, senior note, 2.05%, 2/16/26		260,000,000	JPY		2,615,716


						40,011,724



franklintempleton.com	Annual Report	39

FRANKLIN TEMPLETON ETF TRUST

STATEMENT OF INVESTMENTS

Franklin Liberty International Aggregate Bond ETF (continued)



		Principal Amount*			Value
	Foreign Government and Agency Securities (continued)
	Hungary 0.4%
	Government of Hungary, 6.75%, 10/22/28		170,000,000	HUF	$	723,258

	Indonesia 0.1%
	Indonesia Treasury Bond, senior bond, 8.25%, 5/15/36		3,000,000,000	IDR		222,202

	Italy 5.0%
	Italy Treasury Bond, senior bond, 1.25%, 12/01/26		3,050,000	EUR		3,806,204
	^a,b senior unsecured bond, 144A, Reg S, 0.05%, 1/15/23		4,500,000	EUR		5,318,507


						9,124,711

	Japan 21.6%
	Development Bank of Japan, senior bond, 2.30%, 3/19/26		800,000,000	JPY		8,031,039
	Government of Japan, senior bond, 1.00%, 12/20/35		1,530,000,000	JPY		15,222,174
	senior bond, 1.50%, 3/20/33		225,000,000	JPY		2,349,897
	Japan Government Five Year Bond, senior bond, 142, 0.10%, 12/20/24		1,080,000,000	JPY		9,836,289
	Japan Government Thirty Year Bond, senior bond, 0.40%, 12/20/49		450,000,000	JPY		3,798,129


						39,237,528

	Mexico 0.2%
	Mexican Bonos, senior bond, 8.00%, 11/07/47		6,000,000	^dMXN		301,419

	Netherlands 1.6%
a	Government of the Netherlands, Reg S, 0.50%, 7/15/26		2,250,000	EUR		2,789,515

	Poland 1.8%
	Government of Poland, 2.50%, 7/25/27		5,400,000	PLN		1,484,526
	senior bond, 0424, 2.50%, 4/25/24		6,750,000	PLN		1,820,385


						3,304,911

	Portugal 0.7%
a,b	Portugal Obrigacoes do Tesouro OT, 144A, Reg S, 0.90%, 10/12/35		1,050,000	EUR		1,276,934

	Romania 1.2%
a	Government of Romania, senior bond, Reg S, 2.00%, 1/28/32		1,800,000	EUR		2,121,752

	Slovenia 1.7%
a	Slovenia Government Bond, senior bond, Reg S, 0.875%, 7/15/30		2,450,000	EUR		3,123,794

	Spain 2.7%
	Government of Spain, ^c senior note, 1/31/25		1,600,000	EUR		1,903,756
	^a,b senior unsecured bond, 144A, Reg S, 1.25%, 10/31/30		2,250,000	EUR		2,883,100


						4,786,856

e	Supranational 2.2%
	Asian Development Bank, senior bond, 339-00-1, 2.35%, 6/21/27		120,000,000	JPY		1,256,532
a	European Investment Bank, senior bond, Reg S, 1.90%, 1/26/26		280,000,000	JPY		2,778,518


						4,035,050

	Sweden 1.8%
	Government of Sweden, ^a,b 144A, Reg S, 1.50%, 11/13/23		9,000,000	SEK		1,078,769
	^a,b senior bond, 144A, Reg S, 0.125%, 5/12/31		9,000,000	SEK		1,002,958
	Sweden Government Bond, senior bond, 0.75%, 5/12/28		9,000,000	SEK		1,074,608


						3,156,335



40	Annual Report	franklintempleton.com

FRANKLIN TEMPLETON ETF TRUST

STATEMENT OF INVESTMENTS

Franklin Liberty International Aggregate Bond ETF (continued)



		Principal Amount*			Value
	Foreign Government and Agency Securities (continued)
	United Kingdom 2.6%
	United Kingdom Treasury Bond, ^a Reg S, 1.75%, 9/07/37		1,735,000	GBP	$	2,569,107
	^a Reg S, 4.75%, 12/07/30		1,170,000	GBP		2,199,713


						4,768,820

	Total Foreign Government and Agency Securities (Cost $162,242,772)					161,711,770

	Corporate Bonds & Notes 5.5%
	Czech Republic 0.1%
a	Energo-Pro AS, senior note, Reg S, 4.00%, 12/07/22		200,000	EUR		232,610

	Denmark 0.1%
a	Nykredit Realkredit AS, secured bond, Reg S, 1.00%, 10/01/50		1,124,909	DKK		173,349

	France 0.7%
a	Air Liquide Finance SA, senior note, Reg S, 1.375%, 4/02/30		500,000	EUR		645,145
a	Orange AS, senior note, Reg S, 1.375%, 3/20/28		500,000	EUR		633,012


						1,278,157

	Germany 1.2%
a	Aroundtown SA, senior note, Reg S, 1.625%, 1/31/28		300,000	EUR		371,558
a	Bertelsmann SE & Co. KGaA, senior note, Reg S, 1.25%, 9/29/25		500,000	EUR		621,183
a	Deutsche Telekom AG, senior note, Reg S, 0.875%, 3/25/26		500,000	EUR		612,051
a,c	Siemens Financieringsmaatschappij NV, senior note, Reg S, 2/20/26		500,000	EUR		589,085


						2,193,877

	Romania 0.2%
a	Globalworth Real Estate Investments Ltd., senior note, Reg S, 3.00%, 3/29/25		300,000	EUR		374,370

	United Kingdom 0.3%
a	RELX Finance BV, senior note, Reg S, 0.50%, 3/10/28		500,000	EUR		594,742

	United States 2.9%
	AbbVie Inc., senior note, 1.375%, 5/17/24		500,000	EUR		610,234
	Air Products and Chemicals Inc., senior note, 0.50%, 5/05/28		300,000	EUR		359,400
	Apple Inc., senior bond, 1.625%, 11/10/26		500,000	EUR		642,898
	AT&T Inc., senior note, 0.25%, 3/04/26		500,000	EUR		588,438
	DH Europe Finance II Sarl, senior note, 0.20%, 3/18/26		500,000	EUR		589,642
a	Schlumberger Finance France SAS, senior note, Reg S, 1.00%, 2/18/26		500,000	EUR		614,100
	Stryker Corp., senior note, 0.25%, 12/03/24		500,000	EUR		592,011
	The Procter & Gamble Co., senior note, 0.50%, 10/25/24		500,000	EUR		601,819
	Verizon Communications Inc., senior note, 0.875%, 4/02/25		500,000	EUR		607,434


						5,205,976

	Total Corporate Bonds & Notes (Cost $9,040,447)					10,053,081

	Total Investments (Cost $171,283,219) 94.7%					171,764,851
	Other Assets, less Liabilities 5.3%					9,640,110

	Net Assets 100.0%				$	181,404,961

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

^aSecurity was purchased pursuant to Regulation S under the Securities Act of 1933, which exempts from registration securities offered and sold outside of the United States. Such a security cannot be sold in the United States without either an effective registration statement filed pursuant to the Securities Act of 1933, or pursuant to an exemption from registration. At March 31, 2021, the aggregate value of these securities was $95,313,393, representing 52.5% of net assets.

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

^dPrincipal amount is stated in 100 Mexican Peso Units.

^eA supranational organization is an entity formed by two or more central governments through international treaties.



franklintempleton.com	Annual Report	41

FRANKLIN TEMPLETON ETF TRUST

STATEMENT OF INVESTMENTS

Franklin Liberty International Aggregate Bond ETF (continued)

At March 31, 2021 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		CITI		Buy		1,100,000	$	844,067		4/26/21	$	—	$	(6,372	)
Australian Dollar		CITI		Sell		9,915,000		7,661,816		4/26/21		111,139		—
Canadian Dollar		CITI		Buy		1,850,000		1,472,064		4/26/21		—		(459	)
Canadian Dollar		CITI		Buy		700,000		557,125		4/26/21		—		(302	)
Canadian Dollar		CITI		Sell		14,170,000		11,162,710		4/26/21		—		(108,985	)
Chinese Yuan Renminbi		CITI		Buy		8,500,000		1,301,800		4/26/21		—		(8,706	)
Chinese Yuan Renminbi		CITI		Sell		62,600,000		9,622,627		4/26/21		99,366		—
Danish Krone		CITI		Buy		1,200,000		191,635		4/26/21		—		(2,078	)
Danish Krone		CITI		Sell		2,341,000		381,961		4/26/21		12,166		—
Euro		CITI		Buy		51,090		18,300,000		4/26/21		696		—
Euro		CITI		Buy		8,000,000		9,739,920		4/26/21		—		(339,630	)
Euro		CITI		Buy		11,100,000		13,183,361		4/26/21		—		(140,458	)
Euro		CITI		Buy		1,400,000		1,659,630		4/26/21		—		(14,579	)
Euro		CITI		Sell		97,000,000		117,739,085		4/26/21		3,760,563		—
Great British Pound		CITI		Buy		1,100,000		1,509,407		4/26/21		8,474		—
Great British Pound		CITI		Buy		3,800,000		5,238,300		4/26/21		5,288		—
Great British Pound		CITI		Buy		800,000		1,098,396		4/26/21		5,517		—
Great British Pound		CITI		Sell		9,177,844		12,558,502		4/26/21		—		(105,927	)
Hungarian Forint		CITI		Buy		11,500,000		37,278		4/26/21		10		—
Hungarian Forint		CITI		Sell		219,296,714		743,127		4/26/21		32,076		—
Indonesian Rupiah		CITI		Buy		675,000,000		46,600		4/26/21		—		(200	)
Indonesian Rupiah		CITI		Sell		3,500,000,000		246,687		4/26/21		6,095		—
Japanese Yen		CITI		Buy		670,000,000		6,170,504		4/26/21		—		(110,404	)
Japanese Yen		CITI		Sell		5,769,000,000		55,638,336		4/26/21		3,458,157		—
Mexican Peso		CITI		Sell		7,600,000		382,465		4/26/21		11,519		—
Polish Zloty		CITI		Buy		1,700,000		436,845		4/26/21		—		(5,695	)
Polish Zloty		CITI		Sell		14,950,000		3,999,893		4/26/21		208,314		—
South African Rand		CITI		Sell		470,000		31,095		4/26/21		—		(665	)
Swedish Krona		CITI		Buy		3,200,000		373,460		4/26/21		—		(6,370	)
Swedish Krona		CITI		Sell		31,500,000		3,766,082		4/26/21		152,536		—

Total Forward Exchange Contracts											$	7,871,916	$	(850,830	)

Net unrealized appreciation (depreciation)													$	7,021,086

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

See Abbreviations on page 85.



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

FRANKLIN TEMPLETON ETF TRUST

Financial Highlights

Franklin Liberty Senior Loan ETF



	Year Ended March 31,

	2021			2020			2019^a

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

Net asset value, beginning of year	$	22.85		$	24.85		$	25.00


Income from investment operations^b:

Net investment income^c		0.70			0.99			0.81

Net realized and unrealized gains (losses)		1.99			(1.90	)		(0.21	)


Total from investment operations		2.69			(0.91	)		0.60


Less distributions from net investment income		(0.71	)		(1.09	)		(0.75	)


Net asset value, end of year	$	24.83		$	22.85		$	24.85


Total return^d		11.91%			(3.92)%			2.44%

Ratios to average net assets^e

Expenses before waiver and payments by affiliates		0.92%			0.97%			1.00%

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

Net investment income		2.88%			4.02%			3.90%

Supplemental data

Net assets, end of year (000’s)		$201,101			$54,833			$57,165

Portfolio turnover rate^f		45.87%	^g		51.48%	^g		10.62%

^aFor the period May 30, 2018 (commencement of operations) to March 31, 2019.

^cBased on average daily shares outstanding.

^eRatios are annualized for periods less than one year.

^fPortfolio turnover rate includes portfolio transactions that are executed as a result of the Fund offering and redeeming Creation Units solely for cash (“Cash creations”).

^gPortfolio turnover rate excluding cash creations was as follows:

45.87%

51.48%



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

FRANKLIN TEMPLETON ETF TRUST

Statement of Investments, March 31, 2021

Franklin Liberty Senior Loan ETF



		Country		Principal Amount*		Value
*	Corporate Bonds & Notes 2.4%
	Airlines 0.9%
a	American Airlines Inc./AAdvantage Loyalty IP Ltd., senior secured note, 144A, 5.50%, 4/20/26		United States		1,500,000	$	1,562,910
a	Delta Air Lines Inc./SkyMiles IP Ltd., first lien, 144A, 4.50%, 10/20/25		United States		250,000		267,008


							1,829,918

	Construction Materials 0.2%
^a	Cemex SAB de CV, senior secured note, 144A, 5.20%, 9/17/30		Mexico		375,000		406,221

	Containers & Packaging 0.2%
	Reynolds Group Issuer Inc./Reynolds Group Issuer LLC/Reynolds Group Issuer Luxembourg SA, senior secured note, 4.00%, 10/15/27		United States		400,000		392,500

	Diversified Financial Services 0.1%
a	Vmed O2 UK Financing I PLC, senior secured bond, 144A, 4.25%, 1/31/31		United Kingdom		210,000		204,666

	Media 0.1%
a	Diamond Sports Group LLC/Diamond Sports Finance Co., first lien, 144A, 5.375%, 8/15/26		United States		310,000		223,587
a	Univision Communications Inc., senior secured note, first lien, 144A, 5.125%, 2/15/25		United States		44,444		45,083


							268,670

	Oil, Gas & Consumable Fuels 0.1%
	Cheniere Energy Inc., 4.625%, 10/15/28		United States		150,000		155,968

	Pharmaceuticals 0.7%
a	Endo Luxembourg Finance Co. I Sarl/Endo US Inc., 144A, 6.125%, 4/01/29		United States		1,325,000		1,338,250

	Specialty Retail 0.1%
a	Staples Inc., 144A, 7.50%, 4/15/26		United States		161,000		170,056

	Total Corporate Bonds & Notes (Cost $4,644,058)						4,766,249

b	Senior Floating Rate Interests 91.7%
	Aerospace & Defense 3.8%
	AI Convoy (Luxembourg) S.A.R.L, 4.50%, 1/17/27		United States		967,557		968,040
	Dynasty Acquisition Co. Inc., Initial Term B-1 Loan, 3.703%, 4/06/26		United States		2,752,265		2,675,326
	Initial Term B-2 Loan (CAD), 3.703%, 4/06/26		United States		1,479,712		1,438,347
	Peraton Holding Corp., Delayed Draw Term Loan B, 2/01/28		United States		1,578,162		1,580,798
	Term Loan B, 2/01/28		United States		896,731		898,228


							7,560,739

	Airlines 2.1%
	AAdvantage Loyalty IP Ltd., 2021 Term Loan, 4/20/28		United States		724,129		742,801
	American Airlines Inc., 2018 Replacement Term Loans, 3.542%, 6/27/25		United States		1,599,451		1,418,920
	Kestrel Bidco Inc., Term Loan B, 4.00%, 12/11/26		Canada		1,885,707		1,832,634
c	SkyMiles IP Ltd/Delta Air Lines Inc., Term Loan B, TBD, 10/20/27		United States		136,597		143,632


							4,137,987

	Auto Components 1.4%
	Clarios Global LP, 2021 USD Term Loan B, 3.359%, 4/30/26		United States		2,844,300		2,819,412

	Building Products 2.4%
	Allied Universal Holdco LLC, Term Loan B, 4.397%, 7/10/26		United States		1,595,206		1,592,717
	Cornerstone Building Brands, Inc., 2018 Term Loan, 3.856%, 4/12/25		United States		1,595,897		1,597,294
	White Cap Buyer LLC, Term Loan, 4.50%, 10/19/27		United States		1,599,250		1,598,362


							4,788,373



44	Annual Report	franklintempleton.com

FRANKLIN TEMPLETON ETF TRUST

STATEMENT OF INVESTMENTS

Franklin Liberty Senior Loan ETF (continued)



		Country		Principal Amount*		Value
b	Senior Floating Rate Interests (continued)
	Capital Markets 2.7%
	Citadel Securities LP, 2021 Term Loan B, 2.609%, 2/29/28		United States		1,950,000	$	1,932,118
	Edelman Financial Center, LLC, 2021 Term Loan B, 6.50%, 3/15/28		United States		1,502,857		1,496,756
	Jane Street Group, LLC, 2021 Term Loan, 2.859%, 1/26/28		United States		1,942,499		1,926,716


							5,355,590

	Chemicals 2.1%
	INEOS Styrolution US Holding LLC, 2021 USD Term Loan B, 3.25%, 1/29/26		United States		1,731,000		1,728,567
	Nouryon USA LLC, Term Loan B, 3.151%, 10/01/25		Netherlands		2,608,239		2,572,102


							4,300,669

	Commercial Services & Supplies 2.1%
	Intrado Corp., Term B Loans, 5.00%, 10/10/24		United States		843,240		818,175
	Prime Security Services Borrower LLC, 2021 Term Loan, 3.50%, 9/23/26		United States		3,477,037		3,467,249


							4,285,424

	Communications Equipment 1.5%
	CommScope Inc., Initial Term Loans, 3.359%, 4/06/26		United States		3,092,152		3,079,366

	Containers & Packaging 2.7%
	BWAY Holding Company, 2017 Term Loan B, 3.443%, 4/03/24		United States		3,043,005		2,982,525
	Klockner-Pentaplast of America, Inc., 2021 Term Loan B, 2/04/26		United States		2,409,835		2,406,823


							5,389,348

	Diversified Consumer Services 1.3%
c	Sabre GLBL Inc., 2020 Other Term B Loans, TBD, 12/17/27		United States		841,339		851,334
	Spin Holdco Inc., 2021 Term Loan, 4.75%, 3/01/28		United States		1,700,000		1,687,701


							2,539,035

	Diversified Financial Services 3.6%
	Amentum Government Services Holdings LLC, Term Loan B, 5.50%, 5.50%, 1/29/27		United States		708,720		712,264
	Term Loan B, 3.609%, 3.609%, 1/29/27		United States		1,935,126		1,923,844
	Asurion LLC, Term Loan B-8, 3.359%, 12/23/26		United States		1,401,342		1,394,216
	Replacement B-6 Term Loans, 3.109%, 11/03/23		United States		2,424,464		2,419,676
	2021 2nd Lien Term Loan B3, 5.359%, 1/31/28		United States		819,599		835,888


							7,285,888

	Diversified Telecommunication Services 2.7%
	Altice France SA/Numericable U.S. LLC/ Ypso France SAS, USD TLB-13 Incremental Term Loans, FRN, 4.237%, 8/14/26		France		2,610,964		2,608,353
	Zayo Group Holdings Inc. (Front Range BidCo), Initial Dollar Term Loan, 3.156%, 3/09/27		United States		2,908,194		2,888,637


							5,496,990

	Electronic Equipment & Instruments 1.5%
	Syncsort Incorporated, 2021 1st Lien Term Loan, 3/04/28		United States		1,023,159		1,018,043
	Verifone Systems, Inc., 2018 1st Lien Term Loan, 8/20/25		United States		1,978,469		1,935,042


							2,953,085

	Food & Staples Retailing 0.8%
	Aramark Corp., U.S. Term B-3 Loan, 3.353%, 3/11/25		United States		697,750		691,756
	Triton Water Holdings, Inc, Term Loan, 6.50%, 3/31/28		United States		948,990		946,542


							1,638,298

	Health Care Providers & Services 8.5%
	ADMI Corp., 2021 Term Loan B2, 3.75%, 12/23/27		United States		3,693,433		3,665,474
a	Gainwell Acquisition Corp., Term Loan B, TBD, 10/01/27		United States		1,930,727		1,925,901



franklintempleton.com	Annual Report	45

FRANKLIN TEMPLETON ETF TRUST

STATEMENT OF INVESTMENTS

Franklin Liberty Senior Loan ETF (continued)



		Country		Principal Amount*		Value
b	Senior Floating Rate Interests (continued)
	Health Care Providers & Services (continued)
	Gentiva Health Services Inc., Term B Loans, 3.437%, 7/02/25		United States		1,730,193	$	1,722,986
	2021 Term Loan, 2.875%, 7/02/25		United States		1,173,372		1,168,484
	Global Medical Response Inc., 2018 New Term Loans, 5.25%, 3/14/25		United States		860,257		856,265
	National Mentor Holdings, Inc., 2021 Term Loan, 4.50%, 2/18/28		United States		2,315,176		2,303,889
	2021 Term Loan, 0.50%, 2/18/28		United States		254,669		253,428
	2021 Term Loan C, 4.50%, 2/18/28		United States		77,173		76,796
	Phoenix Guarantor Inc., 2021 Term Loan B, 3/05/26		United States		798,870		793,754
	Tranche B-1 Term Loan, 3.402%, 3/05/26		United States		2,840,667		2,814,050
	Project Ruby Ultimate Parent Corp., 2021 Term Loan, 4.00%, 3/03/28		United States		519,296		517,998
	Team Health Holdings, Inc., 1st Lien Term Loan, 3.75%, 2/06/24		United States		1,027,325		958,335


							17,057,360

	Health Care Technology 0.1%
	Change Healthcare Holdings LLC, Closing Date Term Loan, 3.50%, 3/01/24		United States		278,847		278,862

	Hotels Restaurants & Leisure 3.1%
	1011778 B.C. ULC, Term B-4 Loan, 1.859%, 11/19/26		Canada		848,926		834,868
	Caesars Resort Collection LLC, Term B-1 Loans, 4.609%, 7/21/25		United States		827,138		829,863
	Term B Loans, 2.859%, 12/23/24		United States		2,339,687		2,308,651
	Golden Nugget, Inc., 2017 Incremental Term Loan B, 3.25%, 10/04/23		United States		1,375,029		1,356,005
	IRB Holding Corp., Fourth Amendment Incremental Term Loan, 4.25%, 12/15/27		United States		851,320		849,324


							6,178,711

	Insurance 4.5%
c	Acrisure LLC, Term Loan B, TBD, 2/15/27		United States		1,743,838		1,726,225
	Alliant Holdings Intermediate LLC, Term Loan B, 4.25%, 10/08/27		United States		40,977		40,973
	Alliant Holdings Intermediate LLC/Alliant Holdings Co-Issuer, Initial Term Loan, 2.906%, 5/09/25		United States		2,040,187		2,018,102
	AssuredPartners Inc., June Incremental Term Loan, 5.50%, 2/12/27		United States		361,860		363,172
	2020 February Refinancing Term Loans, 3.609%, 2/12/27		United States		3,288,407		3,255,522
	Mitchell International Inc., Amendment No. 2 New Term Loans, FRN thereafter, 4.75%, 11/29/24		United States		696,500		698,938
	Mitchell International, Inc., 2017 1st Lien Term Loan, 11/29/24		United States		897,686		884,908


							8,987,840

	Interactive Media & Services 1.5%
	MH Sub I LLC & Micro Holding Corp., Initial Term Loans, 3.609%, 9/13/24		United States		2,709,891		2,684,662
	2020 June New Term Loans, 4.75%, 9/13/24		United States		407,999		408,546


							3,093,208

	IT Services 6.2%
	Deerfield Dakota Holding, LLC, Term Loan B, 4.75%, 4/09/27		United States		1,400,000		1,403,500
	Dun and Bradstreet Corp., Term Loan B, 3.898%, 2/06/26		United States		2,702,576		2,691,603
	Informatica LLC, Term loan, 3.359%, 2/25/27		United States		970,000		964,180
	Sedgwick Claims Management Services Inc., Initial Term Loans, 3.359%, 12/31/25		United States		3,496,742		3,454,729
	TIBCO Software Inc., Term B-3 Loans, 3.86%, 6/30/26		United States		1,592,489		1,575,569
	Verscend Holding Corp., 2021 Term Loan B, 8/27/25		United States		387,511		388,050
	Term B Loans, 4.607%, 8/27/25		United States		2,061,811		2,064,677


							12,542,308



46	Annual Report	franklintempleton.com

FRANKLIN TEMPLETON ETF TRUST

STATEMENT OF INVESTMENTS

Franklin Liberty Senior Loan ETF (continued)



		Country		Principal Amount*		Value
b	Senior Floating Rate Interests (continued)
	Leisure Equipment & Products 1.0%
	Playtika Holding Corp, 2021 Term Loan, 3/13/28		United States		1,978,992	$	1,970,334

	Machinery 1.2%
	Vertical US Newco Inc. (thyssenkrupp Elevator), Term Loan B, 4.566%, 7/30/27		United States		2,448,005		2,457,038

	Media 12.0%
	Cengage Learning, Inc., 2016 Term Loan B, 5.25%, 6/07/23		United States		2,842,539		2,818,264
c	Clear Channel Outdoor Holdings Inc., Term B Loan, TBD, 8/21/26		United States		3,270,189		3,150,745
	Crown Finance US, Inc., 2018 USD Term Loan, 2/28/25		United States		1,328,980		1,139,362
	CSC Holdings LLC, March 2017 Incremental Term Loans, 2.402%, 7/17/25		United States		3,113,859		3,078,221
	Diamond Sports Group LLC, Term Loan, 3.36%, 8/24/26		United States		941,272		653,398
d	Nexstar Broadcasting Inc., Term B-4 Loan, 2.615%, 9/18/26		United States		2,710,393		2,694,307
	Nielsen Finance LLC (VNU Inc.), Dollar Term B-5 Loan, 4.75%, 6/04/25		United States		634,911		638,435
c	Radiate Holdco LLC, Term Loan, TBD, 9/25/26		United States		961,507		962,271
	Sinclair Television Group Inc., Tranche B Term Loans, 2.36%, 1/03/24		United States		1,240,715		1,235,132
	Univision Communications Inc., 2020 Replacement New First-Lien Term Loans, 4.75%, 3/15/26		United States		2,283,573		2,285,651
	Virgin Media Bristol LLC, 2020 USD Term Loan Q, 1/31/29		United States		970,000		969,539
	WideOpenWest Finance LLC, Term B Loan, 4.25%, 8/18/23		United States		2,391,777		2,391,035
	William Morris Endeavor Entertainment LLC and IMG LLC, Term Loan B, 2.90%, 5/18/25		United States		2,331,346		2,209,277


							24,225,637

	Oil, Gas & Consumable Fuels 1.2%
c	Blackstone CQP Holdco LP, Initial Term Loans, TBD, 9/30/24		United States		796,458		795,777
	Buckeye Partners, L.P., 2021 Term Loan B, 2.359%, 11/01/26		United States		1,587,023		1,581,897


							2,377,674

	Personal Products 0.2%
	Sunshine Luxembourg VII SARL, Term Loan B3, 10/01/26		Luxembourg		480,000		480,120

	Pharmaceuticals 3.4%
	eResearchTechnology, Inc., Inc., 2020 1st Lien Term Loan, 2/04/27		United States		2,308,440		2,314,211
	Grifols Worldwide Operations USA Inc., Dollar Tranche B Term Loan, 2.081%, 11/15/27		United States		480,398		475,622
	Horizon Therapeutics USA Inc., 2021 Term Loan B, 2.50%, 2/26/28		United States		1,300,000		1,298,050
	Valeant Pharmaceuticals International, Initial Term Loans, 3.109%, 6/02/25		United States		2,708,898		2,703,508


							6,791,391

	Professional Services 0.3%
	Tempo Acquisition LLC, Term Loan, 3.75%,11/02/26		United States		596,992		597,554

	Real Estate Management & Development 1.3%
	Cushman & Wakefield U.S. Borrower LLC, Replacement Term Loan, 2.859%, 8/21/25		United States		2,720,302		2,670,997

	Software 10.6%
	Athenahealth, Inc., 2021 Term Loan B1, 4.453%, 2/11/26		United States		3,466,161		3,479,159
	DCert Buyer, Inc., Term Loan B, 4.109%, 10/16/26		United States		2,313,035		2,311,914
	Epicor Software Corporation, Term B Loans, 4.00%, 7/30/27		United States		1,632,081		1,629,609
	Finastra USA Inc., Dollar Term Loan, 4.50%, 6/13/24		United States		2,833,646		2,781,195
	Hyland Software, Inc., Term Loan, 4.25%, 7/01/24		United States		3,035,977		3,038,193
	2021 2nd Lien Term Loan, 7/07/25		United States		30,303		30,429
	Ivanti Software, Inc., 2020 Term Loan B, 5.75%, 12/01/27		United States		700,000		703,720
	2021 Add On Term Loan B, 4.75%, 12/01/27		United States		141,418		141,135
	LogMeIn Inc., Initial Term Loans, 4.854%, 8/31/27		United States		2,106,105		2,103,146



franklintempleton.com	Annual Report	47

FRANKLIN TEMPLETON ETF TRUST

STATEMENT OF INVESTMENTS

Franklin Liberty Senior Loan ETF (continued)



		Country		Principal Amount*		Value
b	Senior Floating Rate Interests (continued)
	Software (continued)
c	MA Finance Co., Tranche B-4 Term Loans, TBD, 6/05/25		United States		445,031	$	448,646
	RealPage, Inc, Term Loan, 2/17/28		United States		1,774,194		1,768,277
	The Ultimate Software Group Inc, 2021 Incremental Term Loans, 4.00%, 5/04/26		United States		2,782,483		2,786,614


							21,222,037

	Specialty Retail 4.5%
c	EG America LLC, Additional Facility Loan, TBD, 2/07/25		United States		430,408		424,260
	Great Outdoors Group, LLC, 2021 Term Loan B, 5.00%, 3/06/28		United States		2,910,560		2,918,928
	Harbor Freight Tools USA Inc., Refinancing Loan, 3.75 %, 10/19/27		United States		964,223		964,440
	Michaels Stores Inc., New Term Loan, FRN thereafter, 4.25%, 10/01/27		United States		581,038		581,692
	PetSmart, Inc., 2021 Term Loan B, 4.50%, 2/12/28		United States		1,441,793		1,441,576
	Staples Inc., 2019 Refinancing Term B-1 Loans, 5.205%, 4/16/26		United States		2,878,635		2,813,075


							9,143,971

	Technology Hardware, Storage & Peripherals 1.4%
	Greeneden U.S. Holdings II LLC (Genesys), Initial Dollar Term Loan, 4.75%, 12/01/27		United States		2,700,719		2,703,420
c	Sophia LP (Ellucian), Closing Date Term Loans, TBD, FRN thereafter, 10/07/27		United States		81,017		81,093


							2,784,513

	Total Floating Rate Loans (Cost $185,044,715)						184,489,759

	Asset-Backed Securities 1.5%
a,e	AMMC CLO 15 Ltd., 2014-15A, CRR, 144A, 2.575%, 3, 1/15/32		United States		1,000,000		994,102
a,e	BlueMountain CLO Ltd., 2018-3A, C, 144A, 2.444%, 2,10/25/30		United States		1,000,000		997,000
a,e	LCM XVIII LP, 2018A, CR, 144A, 2.121%, 2, 4/20/31		United States		1,000,000		984,721

	Total Asset-Backed Securities (Cost $2,996,875)						2,975,823

	Total Investments (Cost $192,685,648) 95.6%						192,231,831
	Other Assets, less Liabilities 4.4%						8,869,342

	Net Assets 100.0%					$	201,101,173

See Abbreviations on page 85

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

^aSecurity was purchased pursuant to Rule 144A under the Securities Act of 1933 and may be sold in transactions exempt from registration only to qualified institutional buyers or in a public offering registered under the Securities Act of 1933. At March 31, 2021, the aggregate value of these securities was $7,193,604, representing 3.6% of net assets.

^bThe coupon rate shown represents the rate at period end.

^cA portion or all of the security represents an unsettled loan commitment. The coupon rate is to-be determined (TBD) at the time of settlement and will be based upon a reference index/floor plus a spread.

^dA portion or all of the security purchased on a delayed delivery basis.

^eThe coupon rate shown represents the rate inclusive of any caps or floors, if applicable, in effect at period end.



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

FRANKLIN TEMPLETON ETF TRUST

Consolidated Financial Highlights

Franklin Liberty Systematic Style Premia ETF



	Year Ended March 31,

	2021			2020^a

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

Net asset value, beginning of year	$	23.16		$	25.00


Income from investment operations^b:

Net investment income^c		0.23			0.11

Net realized and unrealized gains (losses)		(2.25	)		(1.94	)


Total from investment operations		(2.02	)		(1.83	)


Less distribution from:

Net investment income		(0.05	)		(0.01	)

Net realized gains		(1.54	)		—


Total distributions		(1.59	)		(0.01	)


Net asset value, end of year	$	19.55		$	23.16


Total return^d		(8.70)%			(7.34)%

Ratios to average net assets^e

Total expenses		1.14%			1.15%

Expenses net of waiver and payments by affiliates		0.65%			0.65%

Net investment income		1.08%			1.67%

Supplemental data

Net assets, end of year (000’s)		$46,927			$50,948

Portfolio turnover rate^f		171.16%	^g		60.95%	^g

^aFor the period December 18, 2019 (commencement of operations) to March 31, 2020.

^cBased on average daily shares outstanding.

^eRatios are annualized for periods less than one year.

^fPortfolio turnover rate includes portfolio transactions that are executed as a result of the Fund offering and redeeming Creation Units solely for cash (“Cash creations”).


^gPortfolio turnover rate excluding cash creations was as follows:			171.16%				60.95%



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

FRANKLIN TEMPLETON ETF TRUST

Consolidated Statement of Investments, March 31, 2021

Franklin Liberty Systematic Style Premia ETF



		Country		Shares		Value
	Common Stocks 73.9%
	Aerospace & Defense 0.3%
	Howmet Aerospace Inc.		United States		1,684	$	54,107
	Huntington Ingalls Industries Inc.		United States		164		33,759
	Textron Inc.		United States		952		53,388


							141,254

	Air Freight & Logistics 1.4%
	Deutsche Post AG		Germany		4,230		232,269
	Expeditors International of Washington Inc.		United States		604		65,045
	FedEx Corp.		United States		1,028		291,993
	SG Holdings Co. Ltd.		Japan		1,300		29,847
a	XPO Logistics Inc.		United States		385		47,471


							666,625

	Auto Components 0.8%
	Aisin Seiki Co. Ltd.		Japan		800		30,407
a	Aptiv PLC		Ireland		1,175		162,032
	Autoliv Inc.		Sweden		353		32,758
	BorgWarner Inc.		United States		1,028		47,658
a	Faurecia SE		France		147		7,828
	Koito Manufacturing Co. Ltd.		Japan		400		26,860
	Lear Corp.		United States		242		43,863
	Valeo SA		France		1,005		34,219


							385,625

	Automobiles 0.9%
	Honda Motor Co. Ltd.		Japan		7,000		210,253
	Isuzu Motors Ltd.		Japan		2,300		24,749
	Stellantis NV		United States		8,945		158,579
	Volkswagen AG		Germany		140		50,876


							444,457

	Banks 3.1%
	Bank of Montreal		Canada		2,300		204,994
a	BNP Paribas SA		France		4,738		288,897
	BOC Hong Kong (Holdings) Ltd.		Hong Kong		16,000		55,875
	CaixaBank SA		Spain		8,137		25,238
	Canadian Imperial Bank of Commerce		Canada		1,100		107,694
	Chuo Mitsui Trust Holdings Inc.		Japan		1,400		48,892
	Citizens Financial Group Inc.		United States		1,804		79,647
	Fifth Third Bancorp		United States		2,982		111,676
	KeyCorp		United States		4,166		83,237
	Mizuho Financial Group Inc.		Japan		9,900		143,259
	Regions Financial Corp.		United States		4,055		83,776
	Resona Holdings Inc.		Japan		9,000		37,857
	Sumitomo Mitsui Financial Group Inc.		Japan		5,400		195,817


							1,466,859

	Beverages 0.4%
	Coca-Cola European Partners PLC		United Kingdom		866		45,171
a	Monster Beverage Corp.		United States		1,683		153,304


							198,475

	Biotechnology 3.8%
	AbbVie Inc.		United States		4,784		517,724
a	Alexion Pharmaceuticals Inc.		United States		921		140,830
a	Exact Sciences Corp.		United States		701		92,378
a	Genmab A/S		Denmark		273		90,037
	Gilead Sciences Inc.		United States		5,531		357,469



50	Annual Report	franklintempleton.com

FRANKLIN TEMPLETON ETF TRUST

CONSOLIDATED STATEMENT OF INVESTMENTS

Franklin Liberty Systematic Style Premia ETF (continued)



		Country		Shares		Value
	Common Stocks (continued)
	Biotechnology (continued)
a	Moderna Inc.		United States		1,223	$	160,152
a	Regeneron Pharmaceuticals Inc.		United States		450		212,913
a	Sarepta Therapeutics Inc.		United States		326		24,297
a	Vertex Pharmaceuticals Inc.		United States		942		202,426


							1,798,226

	Building Products 1.0%
	A O Smith Corp.		United States		387		26,165
	AGC Inc.		Japan		800		33,520
a	Compagnie de Saint-Gobain		France		2,208		130,583
	Fortune Brands Home & Security Inc.		United States		597		57,205
	Geberit AG		Switzerland		41		26,208
	Lennox International Inc.		United States		147		45,804
	LIXIL Group Corp.		Japan		1,100		30,611
	Masco Corp.		United States		1,130		67,687
	Owens Corning		United States		455		41,901
	Xinyi Glass Holdings Ltd.		Hong Kong		8,000		26,137


							485,821

	Capital Markets 4.4%
	3i Group PLC		United Kingdom		4,171		66,381
	Apollo Global Management Inc., A		United States		735		34,552
	Bank of New York Mellon Corp.		United States		2,068		97,796
	Daiwa Securities Group Inc.		Japan		6,100		31,582
	FactSet Research Systems Inc.		United States		161		49,683
	Goldman Sachs Group Inc.		United States		1,353		442,431
	Hargreaves Lansdown PLC		United Kingdom		1,422		30,243
	Hong Kong Exchanges and Clearing Ltd.		Hong Kong		4,900		288,285
	Invesco Ltd.		United States		1,656		41,764
	Julius Baer Group Ltd.		Switzerland		976		62,678
	MSCI Inc.		United States		349		146,329
	Nomura Holdings Inc.		Japan		13,400		70,505
	Partners Group Holding AG		Switzerland		81		103,880
	Raymond James Financial Inc.		United States		522		63,976
	SEI Investments Co.		United States		522		31,806
	State Street Corp.		United States		1,384		116,270
	T. Rowe Price Group Inc.		United States		978		167,825
	UBS Group AG		Switzerland		15,634		243,111


							2,089,097

	Chemicals 0.6%
	Covestro AG		Germany		807		54,385
	EMS-Chemie Holding AG		Switzerland		35		31,387
	Johnson Matthey PLC		United Kingdom		810		33,672
	Mitsui Chemicals Inc.		Japan		800		25,303
	Mosaic Co.		United States		1,562		49,375
	Nitto Denko Corp.		Japan		700		59,928
	Sumitomo Chemical Co. Ltd.		Japan		6,300		32,669


							286,719

	Commercial Services & Supplies 0.1%
	Rollins Inc.		United States		958		32,974

	Construction & Engineering 0.1%
	Kajima Corp.		Japan		1,900		27,013
	Obayashi Corp.		Japan		2,800		25,719


							52,732



franklintempleton.com	Annual Report	51

FRANKLIN TEMPLETON ETF TRUST

CONSOLIDATED STATEMENT OF INVESTMENTS

Franklin Liberty Systematic Style Premia ETF (continued)



		Country		Shares		Value
	Common Stocks (continued)
	Construction Materials 0.1%
	HeidelbergCement AG		Germany		617	$	56,171

	Consumer Finance 0.9%
	Ally Financial Inc.		United States		1,612		72,879
	Capital One Financial Corp.		United States		1,963		249,752
	Synchrony Financial		United States		2,260		91,892


							414,523

	Containers & Packaging 0.2%
	International Paper Co.		United States		1,570		84,890
	Sealed Air Corp.		United States		656		30,058


							114,948

	Distributors 0.2%
a	LKQ Corp.		United States		1,233		52,193
	Pool Corp.		United States		171		59,036


							111,229

	Diversified Financial Services 0.3%
	Equitable Holdings Inc.		United States		1,698		55,389
a	Kinnevik AB, B		Sweden		1,037		50,516
	M&G PLC		United Kingdom		11,260		32,220


							138,125

	Diversified Telecommunication Services 0.6%
a	BT Group PLC		United Kingdom		37,936		81,023
	Lumen Technologies Inc.		United States		3,892		51,958
	Nippon Telegraph & Telephone Corp.		Japan		5,500		141,457


							274,438

	Electric Utilities 0.9%
	Chubu Electric Power Co. Inc.		Japan		2,900		37,398
	CLP Holdings Ltd.		Hong Kong		7,000		67,979
a	EDF SA		France		2,660		35,765
	Endesa SA		Spain		1,352		35,848
	Hydro One Ltd.		Canada		1,400		32,604
	NRG Energy Inc.		United States		1,077		40,635
a	PG&E Corp.		United States		6,374		74,639
	Power Assets Holdings Ltd.		Hong Kong		6,000		35,424
	Red Electrica Corp. SA		Spain		1,842		32,690
	Verbund AG		Austria		298		21,715


							414,697

	Electrical Equipment 1.4%
a	Ballard Power Systems Inc.		Canada		1,000		24,386
	Emerson Electric Co.		United States		2,527		227,986
a	Generac Holdings Inc.		United States		273		89,394
	Mitsubishi Electric Corp.		Japan		7,700		117,521
a	Plug Power Inc.		United States		2,054		73,615
	Prysmian SpA		Italy		1,041		33,903
a	Sensata Technologies Holding PLC		United States		666		38,595
a	Sunrun Inc.		United States		520		31,449


							636,849

	Electronic Equipment, Instruments & Components 1.0%
a	Arrow Electronics Inc.		United States		325		36,017
	Hitachi Ltd.		Japan		4,100		185,669
a	IPG Photonics Corp.		United States		164		34,594
	Murata Manufacturing Co. Ltd.		Japan		2,400		192,043


							448,323



52	Annual Report	franklintempleton.com

FRANKLIN TEMPLETON ETF TRUST

CONSOLIDATED STATEMENT OF INVESTMENTS

Franklin Liberty Systematic Style Premia ETF (continued)



		Country		Shares		Value
	Common Stocks (continued)
	Entertainment 0.3%
	Capcom Co. Ltd.		Japan		800	$	26,027
	Konami Holdings Corp.		Japan		400		23,855
a	Take-Two Interactive Software Inc.		United States		492		86,937


							136,819

	Equity Real Estate Investment Trusts (REITs) 0.9%
	Dexus		Australia		4,640		34,457
	Gecina SA		France		197		27,182
	Goodman Group		Australia		7,051		97,311
	GPT Group		Australia		8,242		28,877
	Mirvac Group		Australia		16,766		31,925
	Public Storage		United States		665		164,095
a	Unibail-Rodamco-Westfield		France		604		48,513


							432,360

	Food & Staples Retailing 2.0%
	Alimentation Couche-Tard Inc., B		Canada		3,500		112,838
	Carrefour SA		France		2,601		47,215
	J Sainsbury PLC		United Kingdom		7,672		25,669
	Koninklijke Ahold Delhaize NV		Netherlands		4,647		129,713
	Loblaw Cos. Ltd.		Canada		700		39,098
	The Kroger Co.		United States		3,279		118,011
	Walmart Inc.		United States		3,361		456,524


							929,068

	Food Products 0.7%
	Ajinomoto Co. Inc.		Japan		2,100		43,055
	Bunge Ltd.		United States		606		48,037
	Lamb Weston Holdings Inc.		United States		629		48,735
	The J.M. Smucker Co.		United States		200		25,306
	Tyson Foods Inc.		United States		1,240		92,132
b	WH Group Ltd., Reg S		Hong Kong		42,500		34,440
	Wilmar International Ltd.		China		8,100		32,675


							324,380

	Gas Utilities 0.2%
	Osaka Gas Co. Ltd.		Japan		1,600		31,233
	Tokyo Gas Co. Ltd.		Japan		1,600		35,656
	UGI Corp.		United States		890		36,499


							103,388

	Health Care Equipment & Supplies 3.2%
	Abbott Laboratories		United States		1,745		209,121
	Coloplast AS, B		Denmark		498		75,062
	Danaher Corp.		United States		2,206		496,526
a	Hologic Inc.		United States		1,110		82,562
	Hoya Corp.		Japan		1,200		141,231
a	IDEXX Laboratories Inc.		United States		362		177,130
a	Masimo Corp.		United States		226		51,903
a	Novocure Ltd.		United States		372		49,171
	STERIS PLC		United States		400		76,192
	Sysmex Corp.		Japan		700		75,543
	West Pharmaceutical Services Inc.		United States		315		88,761


							1,523,202



franklintempleton.com	Annual Report	53

FRANKLIN TEMPLETON ETF TRUST

CONSOLIDATED STATEMENT OF INVESTMENTS

Franklin Liberty Systematic Style Premia ETF (continued)



		Country		Shares		Value
	Common Stocks (continued)
	Health Care Providers & Services 0.5%
	Cardinal Health Inc.		United States		1,227	$	74,540
	McKesson Corp.		United States		675		131,652
	Universal Health Services Inc., B		United States		324		43,219


							249,411

	Health Care Technology 0.8%
	Cerner Corp.		United States		1,316		94,594
	M3 Inc.		Japan		1,800		123,329
a	Veeva Systems Inc.		United States		579		151,258


							369,181

	Hotels, Restaurants & Leisure 0.5%
	Domino’s Pizza Inc.		United States		93		34,205
a	GVC Holdings PLC		United Kingdom		2,505		52,464
	Yum! Brands Inc.		United States		1,296		140,201


							226,870

	Household Durables 0.8%
a	Barratt Developments PLC		United Kingdom		4,475		46,109
	Lennar Corp., A		United States		1,226		124,108
a	Mohawk Industries Inc.		United States		256		49,231
	PulteGroup Inc.		United States		1,162		60,935
	Sekisui House Ltd.		Japan		2,600		55,859
a	Taylor Wimpey PLC		United Kingdom		15,756		39,227


							375,469

	Household Products 1.8%
	Clorox Co.		United States		536		103,384
	Colgate-Palmolive Co.		United States		1,796		141,579
	Henkel AG & Co. KGaA		Germany		437		43,374
	The Procter & Gamble Co.		United States		4,105		555,940


							844,277

	Independent Power and Renewable Electricity Producers 0.1%
	Vistra Corp.		United States		1,937		34,246

	Industrial Conglomerates 0.5%
	CK Hutchison Holdings Ltd.		Hong Kong		11,500		91,637
	Jardine Matheson Holdings Ltd.		Hong Kong		900		58,851
	Jardine Strategic Holdings Ltd.		Hong Kong		900		29,718
a	Melrose Industries PLC		United Kingdom		21,009		48,378


							228,584

	Insurance 1.6%
	Admiral Group PLC		United Kingdom		811		34,698
	Aflac Inc.		United States		2,757		141,103
	Allstate Corp.		United States		1,287		147,876
	American Financial Group Inc.		United States		312		35,599
a	Athene Holding Ltd., A		United States		543		27,367
	Aviva PLC		United Kingdom		16,925		95,321
	Fidelity National Financial Inc.		United States		1,179		47,938
	Great-West Lifeco Inc.		Canada		1,200		31,927
	Lincoln National Corp.		United States		818		50,937
	NN Group NV		Netherlands		1,223		59,925
	Reinsurance Group of America Inc.		United States		292		36,807
	T&D Holdings Inc.		Japan		2,300		29,682


							739,180



54	Annual Report	franklintempleton.com

FRANKLIN TEMPLETON ETF TRUST

CONSOLIDATED STATEMENT OF INVESTMENTS

Franklin Liberty Systematic Style Premia ETF (continued)



		Country		Shares		Value
	Common Stocks (continued)
	Interactive Media & Services 3.9%
a	Alphabet Inc., C		United States		355	$	734,363
a	Facebook Inc., A		United States		2,779		818,499
a	Pinterest Inc., A		United States		2,204		163,162
a	Zillow Group Inc., A		United States		268		35,210
a	Zillow Group Inc., C		United States		670		86,859


							1,838,093

	Internet & Direct Marketing Retail 1.1%
	eBay Inc.		United States		2,991		183,169
a	Etsy Inc.		United States		542		109,305
a	HelloFresh SE		Germany		641		47,914
a	Wayfair Inc., A		United States		301		94,740
a	Zalando SE		Germany		666		65,469


							500,597

	IT Services 3.1%
	Accenture PLC, A		United States		2,078		574,048
a	Afterpay Ltd.		Australia		901		69,654
a	CGI Inc., A		Canada		1,000		83,288
	Cognizant Technology Solutions Corp., A		United States		2,295		179,285
	Fujitsu Ltd.		Japan		800		115,837
a	MongoDB Inc.		United States		233		62,311
	NEC Corp.		Japan		1,100		64,905
	NTT Data Corp.		Japan		2,700		41,856
a	Twilio Inc., A		United States		612		208,545
	Western Union Co.		United States		1,713		42,243


							1,441,972

	Leisure Products 0.3%
	Bandai Namco Holdings Inc.		Japan		900		64,287
	SHIMANO Inc.		Japan		300		71,606


							135,893

	Life Sciences Tools & Services 2.6%
a	10X Genomics Inc., A		United States		284		51,404
	Agilent Technologies Inc.		United States		1,326		168,588
a	Avantor Inc.		United States		2,226		64,398
a	Bio-Rad Laboratories Inc., A		United States		98		55,975
a	Eurofins Scientific SE		Luxembourg		575		55,084
a	Mettler-Toledo International Inc.		United States		103		119,036
	PerkinElmer Inc.		United States		494		63,375
	Sartorius Stedim Biotech		France		120		49,532
	Thermo Fisher Scientific Inc.		United States		1,106		504,756
a	Waters Corp.		United States		271		77,010


							1,209,158

	Machinery 2.8%
a	CNH Industrial NV		United Kingdom		4,454		69,073
	Cummins Inc.		United States		625		161,944
	Deere & Co.		United States		1,265		473,287
	KION Group AG		Germany		310		30,678
	Kubota Corp.		Japan		4,400		100,324
	Makita Corp.		Japan		1,000		42,941
	Mitsubishi Heavy Industries Ltd.		Japan		1,300		40,576
	Parker-Hannifin Corp.		United States		534		168,440
	Snap-on Inc.		United States		219		50,532
	Techtronic Industries Co. Ltd.		Hong Kong		6,000		102,644



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FRANKLIN TEMPLETON ETF TRUST

CONSOLIDATED STATEMENT OF INVESTMENTS

Franklin Liberty Systematic Style Premia ETF (continued)



		Country		Shares		Value
	Common Stocks (continued)
	Machinery (continued)
	Westinghouse Air Brake Technologies Corp.		United States		771	$	61,032


							1,301,471

	Marine 0.2%
	A.P. Moeller-Maersk AS, A		Denmark		15		32,736
	AP Moeller-Maersk A/S, B		Denmark		27		62,871


							95,607

	Media 0.6%
	Fox Corp.		United States		1,417		51,168
a	Informa PLC		United Kingdom		6,597		50,952
	Publicis Groupe		France		970		59,328
	ViacomCBS Inc., B		United States		2,211		99,716


							261,164

	Metals & Mining 3.7%
a	ArcelorMittal SA		Luxembourg		2,969		85,945
	BHP Group Ltd.		Australia		12,353		426,212
	BHP Group PLC		Australia		8,762		253,203
	Bluescope Steel Ltd.Bluescope Steel Ltd.Bluescope Steel Ltd.Bluescope Steel Ltd.		Australia		2,081		30,670
	Boliden AB		Sweden		1,121		41,670
	First Quantum Minerals Ltd.		Zambia		2,500		47,639
	Fortescue Metals Group Ltd.		Australia		6,990		106,425
	Kinross Gold Corp.		Canada		5,500		36,627
	Kirkland Lake Gold Ltd.		Canada		1,100		37,144
	Nucor Corp.		United States		1,264		101,461
	Pan American Silver Corp.		Canada		900		26,996
	Rio Tinto Ltd.		Australia		1,581		133,362
	Rio Tinto PLC		Australia		4,775		365,638
	Steel Dynamics Inc.		United States		896		45,481


							1,738,473

	Multi-Utilities 0.1%
	Suez SA		France		1,483		31,478

	Multiline Retail 1.7%
	Canadian Tire Corp. Ltd., A		Canada		200		28,377
	Dollar General Corp.		United States		1,059		214,575
a	Dollar Tree Inc.		United States		1,012		115,834
	Target Corp.		United States		2,148		425,454


							784,240

	Oil, Gas & Consumable Fuels 1.7%
a	Cheniere Energy Inc.		United States		963		69,346
	ENEOS Holdings Inc.		Japan		12,700		57,650
	EOG Resources Inc.		United States		2,522		182,921
	INPEX Corp.		Japan		4,400		30,103
	Inter Pipeline Ltd.		Canada		1,900		27,165
	Lundin Energy AB		Sweden		815		25,657
	Neste Oil OYJ		Finland		1,789		95,164
	Oil Search Ltd.		Australia		8,357		26,097
	OMV AG		Austria		636		32,336
	ONEOK Inc.		United States		1,869		94,684
	Royal Dutch Shell Plc, A		Netherlands		4,164		81,224
	Woodside Petroleum Ltd.		Australia		4,068		74,361


							796,708

	Paper & Forest Products 0.1%
	West Fraser Timber Co. Ltd.		Canada		400		28,774



56	Annual Report	franklintempleton.com

FRANKLIN TEMPLETON ETF TRUST

CONSOLIDATED STATEMENT OF INVESTMENTS

Franklin Liberty Systematic Style Premia ETF (continued)



		Country		Shares		Value
	Common Stocks (continued)
	Personal Products 0.3%
	L’Oreal SA		France		403	$	154,787

	Pharmaceuticals 0.6%
a	Bausch Health Cos. Inc.		United States		1,500		47,583
a	Canopy Growth Corp.		Canada		1,000		32,112
a	Catalent Inc.		United States		712		74,981
	Hikma Pharmaceuticals PLC		Jordan		748		23,489
a	Horizon Pharma PLC		United States		900		82,836


							261,001

	Professional Services 0.7%
	Adecco Group AG		Switzerland		662		44,764
	Booz Allen Hamilton Holding Corp.		United States		595		47,915
	Randstad NV		Netherlands		509		35,882
	Robert Half International Inc.		United States		484		37,786
	SGS SA		Switzerland		23		65,519
	Wolters Kluwer NV		Netherlands		1,141		99,396


							331,262

	Real Estate Management & Development 0.8%
	CapitaLand Ltd.		Singapore		11,200		31,343
	CK Asset Holdings Ltd.		Hong Kong		11,000		66,783
	Daito Trust Construction Co. Ltd.		Japan		300		34,832
	Deutsche Wohnen AG		Germany		1,484		69,382
	Henderson Land Development Co. Ltd.		Hong Kong		6,000		26,934
	LEG Immobilien AG		Germany		316		41,656
	Sun Hung Kai Properties Ltd.		Hong Kong		5,500		83,337


							354,267

	Road & Rail 1.1%
	AMERCO		United States		42		25,729
	Canadian Pacific Railway Ltd.		Canada		600		229,144
	JB Hunt Transport Services Inc.		United States		353		59,329
	Kansas City Southern		United States		402		106,096
	Knight-Swift Transportation Holdings Inc.		United States		536		25,776
	Old Dominion Freight Line Inc.		United States		388		93,279


							539,353

	Semiconductors & Semiconductor Equipment 4.3%
a	Enphase Energy Inc.		United States		519		84,161
	Intel Corp.		United States		9,126		584,064
	Maxim Integrated Products Inc.		United States		1,143		104,436
a	Micron Technology Inc.		United States		4,738		417,939
a	ON Semiconductor Corp.		United States		1,785		74,274
a	Qorvo Inc.		United States		493		90,071
	QUALCOMM Inc.		United States		3,638		482,362
	Skyworks Solutions Inc.		United States		720		132,106
a	SolarEdge Technologies Inc.		Israel		223		64,099


							2,033,512

	Software 3.8%
a	Avalara Inc.		United States		348		46,434
a	BlackBerry Ltd.		Canada		2,100		17,611
a	Cadence Design Systems Inc.		United States		1,233		168,909
a	Ceridian HCM Holding Inc.		United States		579		48,792
	Citrix Systems Inc.		United States		510		71,583
a	Cloudflare Inc., A		United States		860		60,424
	Constellation Software Inc.		Canada		100		139,638
a	Dropbox Inc., A		United States		1,241		33,085



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FRANKLIN TEMPLETON ETF TRUST

CONSOLIDATED STATEMENT OF INVESTMENTS

Franklin Liberty Systematic Style Premia ETF (continued)



		Country			Shares		Value
	Common Stocks (continued)
	Software (continued)
a	Dynatrace Inc.		United States			810	$	39,074
a	Fair Isaac Corp.		United States			126		61,242
a	Fortinet Inc.		United States			583		107,517
a	Guidewire Software Inc.		United States			364		36,993
a	HubSpot Inc.		United States			186		84,483
	Intuit Inc.		United States			1,122		429,793
	Open Text Corp.		Canada			1,200		57,210
	SS&C Technologies Holdings Inc.		United States			992		69,311
a	Synopsys Inc.		United States			633		156,845
a	Zoom Video Communications Inc., A		United States			359		115,343
a	Zscaler Inc.		United States			325		55,793


								1,800,080

	Specialty Retail 1.7%
a	AutoZone Inc.		United States			97		136,217
	Best Buy Co. Inc.		United States			972		111,595
a	Carvana Co.		United States			265		69,536
a	JD Sports Fashion PLC		United Kingdom			2,207		25,109
a	Kingfisher PLC		United Kingdom			8,731		38,343
	The Home Depot Inc.		United States			1,052		321,123
	Tractor Supply Co.		United States			492		87,124


								789,047

	Technology Hardware, Storage & Peripherals 0.6%
	HP Inc.		United States			5,924		188,087
	Logitech International SA		Switzerland			703		74,053


								262,140

	Textiles, Apparel & Luxury Goods 0.8%
	LVMH Moet Hennessy Louis Vuitton SE		France			473		315,816
	Pandora AS		Denmark			442		47,470


								363,286

	Trading Companies & Distributors 0.9%
	Brenntag AG		Germany			641		54,845
	ITOCHU Corp.		Japan			5,700		185,031
	Marubeni Corp.		Japan			6,900		57,498
	Toyota Tsusho Corp.		Japan			900		37,832
a	United Rentals Inc.		United States			303		99,781


								434,987

	Water Utilities 0.1%
	United Utilities Group PLC		United Kingdom	��		2,850		36,404

	Total Common Stocks (Cost $31,265,525)							34,698,356

	Total Investments (Cost $31,265,525) 73.9%							34,698,356
	Other Assets, less Liabilities 26.1%							12,228,983

	Net Assets 100.0%						$	46,927,339

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

^aNon-income producing.

^bSecurity was purchased pursuant to Regulation S under the Securities Act of 1933, which exempts from registration securities offered and sold outside of the United States. Such a security cannot be sold in the United States without either an effective registration statement filed pursuant to the Securities Act of 1933, or pursuant to an exemption from registration. At March 31, 2021, the value of this security was $34,440, representing 0.1% of net assets.



58	Annual Report	franklintempleton.com

FRANKLIN TEMPLETON ETF TRUST

CONSOLIDATED STATEMENT OF INVESTMENTS

Franklin Liberty Systematic Style Premia ETF (continued)

At March 31, 2021, the Fund had the following total return equity swap contracts outstanding. See Note 1(c).

Swaps

Description

Financing Rate

Payment
Frequency

Counterparty

Maturity
Date

Notional
Amount

(000)s

Unrealized
Appreciation
(Depreciation)

OTC Swap Contracts Short

MSFTLSSP

1-month USD LIBOR

At Maturity

MSCS

4/21/21

(24,429

)

1,746

At March 31, 2021 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		MSCO		Buy		49,000	$	37,867		6/16/21	$	—	$	(535	)
Australian Dollar		MSCO		Sell		1,028,000		799,490		6/16/21		16,283		—
Brazilian Real		MSCO		Buy		5,979,000		1,061,028		6/16/21		—		(6,640	)
Brazilian Real		MSCO		Buy		62,000		10,935		6/16/21		—		(1	)
Canadian Dollar		MSCO		Buy		2,584,000		2,072,213		6/16/21		—		(16,093	)
Czech Koruna		MSCO		Sell		46,354,000		2,114,403		6/16/21		28,417		—
Czech Koruna		MSCO		Sell		7,730,000		352,191		6/16/21		4,332		—
Euro		MSCO		Buy		121,000		144,248		6/16/21		—		(1,825	)
Euro		MSCO		Sell		1,876,000		2,248,821		6/16/21		40,672		—
Great British Pound		MSCO		Buy		1,109,000		1,547,966		6/16/21		—		(17,549	)
Great British Pound		MSCO		Buy		208,000		289,194		6/16/21		—		(2,154	)
Hungarian Forint		MSCO		Sell		351,759,000		1,146,941		6/16/21		6,956		—
Hungarian Forint		MSCO		Sell		64,721,000		209,127		6/16/21		—		(622	)
Israeli Shekel		MSCO		Sell		12,360,461		3,740,647		6/16/21		30,124		—
Israeli Shekel		MSCO		Sell		2,132,000		649,037		6/16/21		9,026		—
Japanese Yen		MSCO		Buy		14,789,000		135,588		6/16/21		—		(1,656	)
Japanese Yen		MSCO		Sell		115,825,000		1,069,069		6/16/21		20,133		—
Mexican Peso		MSCO		Buy		53,910,000		2,565,787		6/16/21		48,584		—
Mexican Peso		MSCO		Sell		848,000		40,573		6/16/21		—		(551	)
New Turkish Lira		MSCO		Buy		6,415,000		824,079		6/16/21		—		(87,872	)
New Turkish Lira		MSCO		Buy		1,568,000		200,649		6/16/21		—		(20,700	)
New Zealand Dollar		MSCO		Buy		59,000		42,327		6/16/21		—		(1,014	)
New Zealand Dollar		MSCO		Sell		1,187,000		858,025		6/16/21		26,857		—
Norwegian Krone		MSCO		Sell		5,015,000		589,732		6/16/21		2,266		—
Russian Ruble		MSCO		Buy		5,012,000		67,355		6/16/21		—		(1,613	)
Russian Ruble		MSCO		Buy		65,759,000		883,430		6/16/21		—		(20,872	)
Swedish Krona		MSCO		Buy		17,136,000		2,029,166		6/16/21		—		(61,907	)
Swedish Krona		MSCO		Sell		9,514,000		1,116,655		6/16/21		24,422		—
Swiss Franc		MSCO		Buy		709,000		766,394		6/16/21		—		(11,599	)
Swiss Franc		MSCO		Sell		4,340,500		4,703,663		6/16/21		82,806		—
South African Rand		MSCO		Buy		28,538,000		1,888,410		6/17/21		25,955		—
South African Rand		MSCO		Sell		15,954,000		1,056,558		6/17/21		—		(13,656	)

Total Forward Exchange Contracts											$	366,833	$	(266,859	)

Net unrealized appreciation (depreciation)													$	99,974

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



franklintempleton.com	Annual Report	59

FRANKLIN TEMPLETON ETF TRUST

CONSOLIDATED STATEMENT OF INVESTMENTS

Franklin Liberty Systematic Style Premia ETF (continued)

At March 31, 2021, 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
Long Gilt		Long		31	$	5,457,115		6/28/21	$	(118,297	)
Canada 10 Yr. Bond		Long		46		5,078,904		6/21/21		(173,207	)
FTSE/MIB Index		Long		16		2,293,620		6/18/21		35,263
Euro-BTP		Long		8		1,403,872		6/08/21		8,735
FTSE 100 Index		Long		13		1,198,042		6/18/21		(9,104	)
S+P500 EMINI		Long		4		793,480		6/18/21		3,038
OMXS30 Index		Long		28		702,626		4/16/21		9,850
EURO STOXX 50 Index		Long		12		545,245		6/18/21		11,240
Mex Bolsa Index		Short		2		45,774		6/18/21		1,346
Australian 10 Yr. Bond		Short		1		105,195		6/15/21		419
DAX Index		Short		1		441,589		6/18/21		(13,254	)
SGX Nifty 50		Short		18		530,856		4/29/21		8,035
FTSE/JSE Africa Top40 Index		Short		16		662,917		6/17/21		9,759
Nikkei 225 Mini		Short		3		792,217		6/10/21		15,006
IBEX 35 Index		Short		15		1,513,792		4/16/21		7,778
Euro-Bund		Short		11		2,214,358		6/08/21		9,461
Euro-OAT		Short		40		7,613,590		6/08/21		5,125
U.S. Treasury 10 Yr. Note		Short		60		7,856,250		6/21/21		52,403
Commodity Contracts
Soybean, May		Long		9		646,538		5/14/21		24,244
Gasoline Rbob, April		Long		5		411,537		4/30/21		(22,007	)
Live Cattle, October		Long		8		400,720		10/29/21		2,237
Brent Crude, Aprril		Long		6		376,440		4/30/21		(28,070	)
Platinum, July		Long		6		357,450		7/28/21		(5,375	)
Gold 100 Ounce, December		Long		2		344,120		12/29/21		(3,305	)
Lean Hog, August		Long		8		326,960		8/13/21		8,177
Copper, May		Long		3		299,663		5/26/21		7,103
Cotton No. 2, May		Long		7		283,080		5/06/21		(21,734	)
Low Sulphur Gasoil, May		Long		5		253,750		5/12/21		(15,459	)
Soybean, November		Long		4		251,250		11/12/21		12,364
Sugar No. 11, September		Long		15		248,304		9/30/21		(11,553	)
Corn, September		Long		10		248,000		9/14/21		6,297
Wheat, September		Long		8		246,900		9/14/21		(7,173	)
Cotton No. 2, December		Long		6		240,300		12/08/21		(15,335	)
Soybean Meal, December		Long		6		238,500		12/14/21		11,533
Soybean Oil, December		Long		8		220,992		12/14/21		18,281
Cocoa, September		Long		9		216,180		9/15/21		1,487
Copper, September		Long		2		200,075		9/28/21		5,703
Coffee ‘C’, September		Long		4		190,950		9/20/21		(6,331	)
Brent Crude, June		Long		3		185,760		6/30/21		(13,195	)
WTI Crude, June		Long		3		177,090		6/22/21		(14,527	)
Gasoline Rbob, June		Long		2		162,750		6/30/21		(6,985	)
Wheat, May		Long		5		154,500		5/14/21		(8,361	)
Low Sulphur Gasoil, July		Long		3		153,450		7/12/21		(8,880	)
NY Harbor ULSD, June		Long		2		149,192		6/30/21		(11,651	)
Natural Gas, June		Long		5		136,600		6/28/21		2,058
Silver, September		Long		1		123,045		9/28/21		(13,297	)
Cocoa, may		Short		1		23,480		5/13/21		1,657
Soybean Meal, May		Short		1		42,320		5/14/21		(2,277	)
WTI Crude, April		Short		2		118,320		4/20/21		10,525
NY Harbor ULSD, April		Short		2		148,663		4/30/21		12,339
Corn, May		Short		6		169,275		5/14/21		(4,315	)
Soybean Oil, May		Short		6		190,512		5/14/21		(24,493	)
Natural Gas, April		Short		14		365,120		4/28/21		(4,673	)



60	Annual Report	franklintempleton.com

FRANKLIN TEMPLETON ETF TRUST

CONSOLIDATED STATEMENT OF INVESTMENTS

Franklin Liberty Systematic Style Premia ETF (continued)


Futures Contracts (continued)

Description	Type		Number of Contracts		Notional Amount*		Expiration Date		Value/Unrealized Appreciation (Depreciation)
Commodity Contracts (continued)
Silver, May		Short		3	$	367,980		5/26/21	$	34,638
Sugar No. 11, April		Short		25		413,560		4/30/21		41,387
Coffee ‘C’, May		Short		12		555,750		5/18/21		19,539
Lean Hog, June		Short		16		673,920		6/14/21		(29,577	)
Live Cattle, June		Short		16		786,560		6/30/21		(11,326	)

Total Futures Contracts									$	(206,734	)

*As of period end.



franklintempleton.com	The accompanying notes are an integral part of these financial statements. \| Annual Report	61

FRANKLIN TEMPLETON ETF TRUST

Consolidated Statement of Investments, March 31, 2021

Franklin Liberty Systematic Style Premia ETF

The following table represents the individual short positions and related values of the equity securities underlying the total return swap with Morgan Stanley Capital Services LLC as of March 31, 2021 , expiration date 4/22/20:



	Country		Shares			Value
Reference Entity – Short 100.00%
Automobiles & Components 1.23%
Ferrari NV		Italy		(749	)	$	(157,001	)
Tesla Inc		United States		(215	)		(143,605	)


							(300,606	)

Banks 1.19%
Nordea Bank Abp		Finland		(19,186	)		(189,300	)
Societe Generale SA		France		(3,794	)		(99,505	)


							(288,805	)

Capital Goods 10.05%
Airbus SE		France		(1,881	)		(213,425	)
Boeing Co/The		United States		(1,595	)		(406,278	)
Cable One Inc		United States		(29	)		(53,022	)
Eiffage SA		France		(484	)		(48,557	)
Ferrovial SA		Spain		(2,659	)		(69,471	)
Heico Corp		United States		(257	)		(32,331	)
Kone Oyj		Finland		(2,033	)		(166,445	)
MTU Aero Engines AG		Germany		(311	)		(73,359	)
Raytheon Technologies Corp		United States		(5,470	)		(422,667	)
Rolls-Royce Holdings PLC		United Kingdom		(23,408	)		(34,008	)
Safran SA		France		(1,874	)		(255,602	)
Smiths Group PLC		United Kingdom		(2,342	)		(49,681	)
Toshiba Corp.		Japan		(2,300	)		(77,846	)
TransDigm Group Inc		United States		(306	)		(179,903	)
Vinci SA		France		(3,024	)		(310,487	)
WSP Global Inc		Canada		(600	)		(57,076	)


							(2,450,158	)

Commercial & Professional Services 2.11%
Equifax Inc		United States		(194	)		(35,139	)
Nihon M&A Center Inc.		Japan		(2,000	)		(54,172	)
Recruit Holdings Co Ltd		Japan		(8,000	)		(391,023	)
RELX PLC		United Kingdom		(1,366	)		(34,282	)


							(514,616	)

Consumer Durables & Apparel 1.24%
Adidas AG		Germany		(490	)		(153,304	)
Hasbro Inc		United States		(482	)		(46,330	)
NVR Inc.		United States		(22	)		(103,640	)


							(303,274	)

Consumer Services 3.57%
Accor SA		France		(1,004	)		(37,949	)
Carnival Corp		United States		(3,140	)		(83,336	)
InterContinental Hotels Group PLC		United Kingdom		(1,002	)		(68,777	)
McDonald’s Corp.		United States		(2,023	)		(453,435	)
Restaurant Brands International Inc		Canada		(1,200	)		(78,033	)
Royal Caribbean Cruises Ltd		United States		(1,097	)		(93,914	)
Whitbread PLC		United Kingdom		(1,141	)		(53,934	)


							(869,378	)

Diversified Financials 1.41%
Brookfield Asset Management Inc., A		Canada		(2,900	)		(128,981	)
EQT AB		Sweden		(1,439	)		(47,464	)



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CONSOLIDATED STATEMENT OF INVESTMENTS

Franklin Liberty Systematic Style Premia ETF (continued)



	Country		Shares			Value
Reference Entity – Short (continued)
Diversified Financials (continued)
London Stock Exchange Group PLC		United Kingdom		(1,291	)	$	(123,615	)
Voya Financial Inc		United States		(687	)		(43,721	)


							(343,781	)

Energy 2.26%
Enbridge Inc.		Canada		(4,000	)		(145,698	)
Equinor ASA		Norway		(5,061	)		(99,188	)
Hess Corp		United States		(1,670	)		(118,169	)
Suncor Energy Inc		Canada		(9,000	)		(188,113	)


							(551,168	)

Food & Staples Retailing 0.61%
Aeon Co Ltd		Japan		(3,900	)		(116,435	)
Woolworths Group Ltd		Australia		(1,063	)		(33,090	)


							(149,525	)

Food, Beverage & Tobacco 7.03%
Coca-Cola Co/The		United States		(2,033	)		(107,159	)
Constellation Brands Inc		United States		(1,032	)		(235,296	)
Kerry Group PLC		Ireland		(957	)		(120,012	)
Kikkoman Corp.		Japan		(900	)		(53,674	)
McCormick & Co Inc/MD		United States		(1,503	)		(134,008	)
Mowi ASA		Norway		(2,558	)		(63,588	)
Nestle SA		Switzerland		(3,806	)		(425,994	)
Orkla ASA		Norway		(4,433	)		(43,539	)
PepsiCo Inc.		United States		(3,228	)		(456,601	)
Swedish Match AB		Sweden		(955	)		(74,701	)


							(1,714,572	)

Health Care Equipment & Services 12.11%
Ambu AS, B		Denmark		(931	)		(43,829	)
Anthem Inc		United States		(881	)		(316,235	)
Boston Scientific Corp		United States		(8,768	)		(338,883	)
Centene Corp		United States		(3,510	)		(224,324	)
Cochlear Ltd		Australia		(381	)		(61,221	)
DexCom Inc		United States		(541	)		(194,430	)
Fisher & Paykel Healthcare Corp Ltd		New Zealand		(3,244	)		(72,929	)
Henry Schein Inc.		United States		(861	)		(59,616	)
Humana Inc.		United States		(804	)		(337,077	)
Insulet Corp		United States		(403	)		(105,151	)
Intuitive Surgical Inc.		United States		(396	)		(292,620	)
Molina Healthcare Inc		United States		(359	)		(83,920	)
Olympus Corp.		Japan		(6,200	)		(128,545	)
Orpea		France		(279	)		(32,397	)
Ramsay Health Care Ltd		Australia		(1,049	)		(53,531	)
Sonic Healthcare Ltd		Australia		(2,570	)		(68,687	)
Teladoc Health Inc		United States		(499	)		(90,693	)
UnitedHealth Group Inc		United States		(1,207	)		(449,088	)


							(2,953,176	)

Household & Personal Products 1.07%
Essity AB		Sweden		(3,553	)		(112,464	)
Shiseido Co Ltd		Japan		(2,200	)		(147,769	)


							(260,233	)

Insurance 5.27%
American International Group Inc		United States		(5,254	)		(242,787	)
Cincinnati Financial Corp		United States		(915	)		(94,327	)



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CONSOLIDATED STATEMENT OF INVESTMENTS

Franklin Liberty Systematic Style Premia ETF (continued)



	Country		Shares			Value
Reference Entity – Short (continued)
Insurance (continued)
Globe Life Inc		United States		(603	)	$	(58,268	)
Insurance Australia Group Ltd.		Australia		(14,286	)		(50,923	)
Markel Corp		United States		(83	)		(94,588	)
Prudential PLC		United Kingdom		(14,489	)		(307,953	)
RenaissanceRe Holdings Ltd		United States		(306	)		(49,037	)
Sampo Oyj		Finland		(2,648	)		(119,726	)
Tokio Marine Holdings Inc.		Japan		(800	)		(38,118	)
Willis Towers Watson		United States		(700	)		(160,216	)
Zurich Insurance Group AG		Switzerland		(162	)		(69,437	)


							(1,285,380	)

Materials 7.29%
Air Liquide SA		France		(1,754	)		(287,164	)
Air Products and Chemicals Inc.		United States		(1,357	)		(381,778	)
Albemarle Corp		United States		(668	)		(97,601	)
Axalta Coating Systems Ltd		United States		(1,275	)		(37,714	)
Ball Corp		United States		(1,986	)		(168,294	)
BioMarin Pharmaceutical Inc		United States		(1,029	)		(77,700	)
Chr. Hansen Holding AS		Denmark		(620	)		(56,474	)
Ecolab Inc.		United States		(1,579	)		(338,017	)
International Flavors & Fragrances Inc.		United States		(1,388	)		(193,779	)
Nippon Paint Holdings Co. Ltd.		Japan		(2,000	)		(28,869	)
Northern Star Resources Ltd.		Australia		(6,783	)		(48,976	)
Svenska Cellulosa AB, B		Sweden		(3,426	)		(60,747	)


							(1,777,113	)

Media & Entertainment 4.93%
Brown-Forman Corp		United States		(1,897	)		(130,836	)
Charter Communications Inc Com Usd.001 Cl A		United States		(382	)		(235,702	)
Liberty Broadband Corp		United States		(658	)		(98,799	)
Liberty SiriusXM Group		United States		(1,064	)		(46,933	)
Nintendo Co. Ltd.		Japan		(400	)		(223,746	)
SEEK Ltd		Australia		(1,833	)		(39,803	)
Snap Inc		United States		(4,749	)		(248,325	)
Twitter Inc		United States		(2,230	)		(141,895	)
Ubisoft Entertainment SA		France		(486	)		(37,059	)


							(1,203,098	)

Pharmaceuticals, Biotechnology & Life Sciences 10.59%
Argenx SE		Netherlands		(252	)		(69,424	)
AstraZeneca PLC		United Kingdom		(3,972	)		(397,148	)
Chugai Pharmaceutical Co. Ltd.		Japan		(1,400	)		(56,874	)
CLP Holdings Ltd.		Australia		(1,474	)		(297,115	)
Daiichi Sankyo Co. Ltd.		Japan		(9,900	)		(288,937	)
Eisai Co Ltd		Japan		(1,500	)		(100,710	)
Elanco Animal Health Inc		United States		(2,456	)		(72,329	)
Illumina Inc		United States		(816	)		(313,393	)
Incyte Corp		United States		(1,153	)		(93,704	)
Ionis Pharmaceuticals Inc		United States		(823	)		(37,002	)
Kyowa Kirin Co. Ltd.		Japan		(1,600	)		(47,928	)
Neurocrine Biosciences Inc.		United States		(533	)		(51,834	)
Novo Nordisk AS, B		Denmark		(5,745	)		(390,160	)
Roche Holding AG		Switzerland		(118	)		(38,297	)
Takeda Pharmaceutical Co Ltd		Japan		(9,100	)		(328,177	)


							(2,583,032	)



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CONSOLIDATED STATEMENT OF INVESTMENTS

Franklin Liberty Systematic Style Premia ETF (continued)



	Country		Shares			Value
Reference Entity – Short (continued)
Real Estate 2.08%
Lendlease Group		Australia		(3,447	)	$	(33,920	)
Link REIT		Hong Kong		(7,500	)		(68,301	)
Mitsubishi Estate Co., Ltd.		Japan		(6,700	)		(117,174	)
Simon Property Group Inc		United States		(1,888	)		(214,798	)
Vornado Realty Trust		United States		(855	)		(38,808	)
Welltower Inc		United States		(490	)		(35,099	)


							(508,100	)

Retailing 2.40%
CAE Inc		Canada		(1,900	)		(54,134	)
CarMax Inc		United States		(1,004	)		(133,191	)
Fast Retailing Co. Ltd.		Japan		(300	)		(239,267	)
Rakuten Inc		Japan		(3,900	)		(46,553	)
Ulta Beauty Inc.		United States		(359	)		(110,992	)


							(584,137	)

Semiconductors & Semiconductor Equipment 2.43%
Advanced Micro Devices Inc		United States		(1,200	)		(105,122	)
Lasertec Corp.		Japan		(400	)		(52,561	)
Marvell Technology Group Ltd		Bermuda		(3,971	)		(194,499	)
Microchip Technology Inc		United States		(1,553	)		(241,057	)


							(593,239	)

Software & Services 15.17%
Adyen NV		Netherlands		(74	)		(165,552	)
Amadeus IT Group SA		Spain		(2,681	)		(190,256	)
Coupa Software Inc		United States		(439	)		(111,717	)
Datadog Inc		United States		(541	)		(45,087	)
Fidelity National Information Services Inc		United States		(1,140	)		(160,295	)
Fiserv Inc		United States		(1,311	)		(156,061	)
Fleetcor Technologies Inc		United States		(512	)		(137,539	)
Global Payments Inc		United States		(1,432	)		(288,663	)
GoDaddy Inc		United States		(1,073	)		(83,286	)
Mastercard Inc., A		United States		(987	)		(351,421	)
Okta Inc		United States		(778	)		(171,495	)
Paycom Software Inc		United States		(311	)		(115,089	)
PayPal Holdings Inc.		United States		(261	)		(63,381	)
RingCentral Inc		United States		(323	)		(96,215	)
salesforce.com Inc		United States		(976	)		(206,785	)
SAP SE		Germany		(1,547	)		(189,855	)
Shopify Inc		Canada		(100	)		(110,390	)
Splunk Inc		United States		(992	)		(134,396	)
Square Inc		United States		(1,061	)		(240,900	)
Visa Inc., A		United States		(1,915	)		(405,463	)
Workday Inc		United States		(1,112	)		(276,254	)


							(3,700,100	)

Technology Hardware & Equipment 0.65%
Apple Inc.		United States		(972	)		(118,730	)
Ricoh Co Ltd		Japan		(3,900	)		(39,670	)


							(158,400	)

Telecommunication Services 2.82%
BCE Inc.		Canada		(1,000	)		(45,136	)
Cellnex Telecom SA		Spain		(1,854	)		(106,989	)
Singapore Telecommunications Ltd		Singapore		(48,000	)		(87,169	)
Spark New Zealand Ltd		New Zealand		(10,793	)		(33,864	)
T-Mobile USA Inc		United States		(991	)		(124,162	)



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FRANKLIN TEMPLETON ETF TRUST

CONSOLIDATED STATEMENT OF INVESTMENTS

Franklin Liberty Systematic Style Premia ETF (continued)



	Country		Shares			Value
Reference Entity – Short (continued)
Telecommunication Services (continued)
Tele2 AB		Sweden		(2,971	)	$	(40,153	)
Telenor ASA		Norway		(4,141	)		(73,008	)
Telia Co. AB		Sweden		(14,480	)		(62,845	)
Telstra Corp. Ltd.		Australia		(24,255	)		(62,811	)
TELUS Corp		Canada		(2,600	)		(51,779	)


							(687,916	)

Transportation 0.44%
Keio Corp.		Japan		(600	)		(40,398	)
Odakyu Electric Railway Co. Ltd.		Japan		(1,100	)		(30,113	)
Sydney Airport		Australia		(7,638	)		(36,011	)


							(106,522	)

Utilities 2.05%
APA Group		Australia		(6,539	)		(49,904	)
Iberdrola SA		Spain		(17,126	)		(221,108	)
Southern Co/The		United States		(3,682	)		(228,873	)


							(499,885	)

Total Value of Reference Entity – Morgan Stanley Capital Services LLC						$	(24,386,214	)

See Abbreviations on page 85.



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FINANCIAL STATEMENTS

Statements of Assets and Liabilities

March 31, 2021



	Franklin Liberty High Yield Corporate ETF		Franklin Liberty International Aggregate Bond ETF			Franklin Liberty Senior Loan ETF			Franklin Liberty Systematic Style Premia ETF^a
Assets:
Investments in securities:
Cost – Unaffiliated issuers	$	334,646,460	$	171,283,219		$	192,685,648		$	31,265,525

Value – Unaffiliated issuers	$	339,607,468	$	171,764,851		$	192,231,831		$	34,698,356
Cash		5,153,813		1,972,396			50,085,176			9,492,315
Foreign currency, at value (cost $–, $375,971, $– and $234,568, respectively)		—		32,696			—			231,202
Receivables:
Dividends and interest		5,049,281		740,950			337,525			117,252
Investment securities sold		—		—			2,521,629			—
Affiliates		—		21,520			—			15,604
Closed swap contracts		—		—			—			49,266,918
Variation margin on futures contracts		—		—			—			74,439
Deposits with brokers for:
Futures contracts		—		—			—			1,902,384.00
Swap contracts		—		—			—			—
Unrealized appreciation on OTC forward exchange contracts		—		7,871,916			—			366,833
Unrealized appreciation on OTC swap contracts		—		—			—			1,746

Total assets		349,810,562		182,404,329			245,176,161			96,167,049

Liabilities:
Payables:
Management fees		60,867		—			31,060			—
Investment securities purchased		1,700,000		—			43,495,140			—
Transfer agent fees		12,000		12,000			12,000			13,875
Trustees’ fees and expenses		125		12			140			23
Distributions to shareholders		1,381,882		—			424,772			—
Custodian fees		4,325		21,656			37,562			10,952
Professional fees		33,881		70,189			42,532			52,222
Reports to shareholders		5,524		5,862			6,141			1,676
Closed swap contracts		—		—			—			48,858,575
Variation margin on centrally cleared swap contracts		—		—			—			—
Registration and filing fees		13,256		25,262			13,055		��	9,630
Deferred tax		—		1,360			—			—
Unrealized depreciation on OTC forward exchange contracts		—		850,830			—			266,859
Accrued expenses and other liabilities		12,484		12,197			12,586			25,898

Total liabilities		3,224,344		999,368			44,074,988			49,239,710

Net assets, at value	$	346,586,218	$	181,404,961		$	201,101,173		$	46,927,339

Net assets consist of:
Paid-in capital	$	343,282,611	$	182,112,475		$	203,007,184		$	58,919,658
Total distributable earnings (loss)		3,303,607		(707,514	)		(1,906,011	)		(11,992,319	)

Net assets, at value	$	346,586,218	$	181,404,961		$	201,101,173		$	46,927,339

Shares outstanding		13,250,000		7,250,000			8,100,000			2,400,000

Net asset value per share	$	26.16	$	25.02		$	24.83		$	19.55

^aConsolidated financial statements. See Notes 12.



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FRANKLIN TEMPLETON ETF TRUST

FINANCIAL STATEMENTS

Statements of Operations

for the year ended March 31, 2021



	Franklin Liberty High Yield Corporate ETF			Franklin Liberty International Aggregate Bond ETF			Franklin Liberty Senior Loan ETF			Franklin Liberty Systematic Style Premia ETF^a
Investment income:
Dividends:
Unaffiliated issuers	$	—		$	—		$	—		$	871,310
Interest: (net of foreign taxes)^a
Unaffiliated issuers		10,276,579			448,634			2,443,686			—

Total investment income		10,276,579			448,634			2,443,686			871,310

Expenses:
Management fees (Note 3a)		1,102,752			914,896			476,368			339,354
Transfer agent fees		15,600			15,600			15,600			23,423
Custodian fees		5,769			29,017			50,174			18,193
Reports to shareholders		10,065			9,581			9,988			3,696
Registration and filing fees		15,288			36,792			17,150			25,113
Professional fees		68,730			145,525			81,528			132,531
Trustee fees (Note 3a)		10,824			8,425			3,761			3,281
Other		19,687			24,276			18,054			27,412

Total expenses		1,248,715			1,184,112			672,623			573,003
Expenses waived/paid by affiliates (Note 3c)		(464,950	)		(675,837	)		(342,830	)		(246,365	)

Net expenses		783,765			508,275			329,793			326,638

Net investment income		9,492,814			(59,641	)		2,113,893			544,672

Realized and unrealized gains (losses):
Net realized gain (loss) from:
Investments:
Unaffiliated issuers		230,276			9,175,295			(660,335	)		(13,140,643	)
Foreign currency transactions		—			1,096,611			—			263,337
Forwards exchange contracts		—			(17,073,693	)		—			(700,600	)
Futures contracts		—			—			—			(1,898,843	)
Swap contracts		28,888			—			—			—

Net realized gain (loss)		259,164			(6,801,787	)		(660,335	)		(15,476,749	)

Net change in unrealized appreciation (depreciation) on:
Investments:
Unaffiliated issuers		23,397,164			516,846			4,290,337			9,645,104
Translation of other assets and liabilities denominated in foreign currencies		—			(353,495	)		—			(16,668	)
Futures contracts		—			—			—			70,651
Swap contracts		513,520			—			—			1,746
Forward exchange contracts		—			6,958,790			—			492,038
Change in deferred taxes on unrealized appreciation		—			(1,360	)		—			—

Net change in unrealized appreciation (depreciation)		23,910,684			7,120,781			4,290,337			10,192,871

Net realized and unrealized gain (loss)		24,169,848			318,994			3,630,002			(5,283,878	)

Net increase (decrease) in net assets resulting from operations	$	33,662,662		$	259,353		$	5,743,895		$	(4,739,206	)

^aConsolidated financial statements. See Notes 12.


^bForeign taxes withheld on interest	$	—	$	2,675	$	—	$	—



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

FRANKLIN TEMPLETON ETF TRUST

FINANCIAL STATEMENTS

Statements of Changes in Net Assets



	Franklin Liberty High Yield Corporate ETF						Franklin Liberty International Aggregate Bond ETF

	Year Ended March 31, 2021			Year Ended March 31, 2020			Year Ended March 31, 2021			Year Ended March 31, 2020
Increase (decrease) in net assets:
Operations:
Net investment income	$	9,492,814		$	2,697,766		$	(59,641	)	$	44,263
Net realized gain (loss)		259,164			(26,694	)		(6,801,787	)		95,271
Net change in unrealized appreciation (depreciation)		23,910,684			(19,083,696	)		7,120,781			59,318

Net increase (decrease) in net assets resulting from operations		33,662,662			(16,412,624	)		259,353			198,852

Distributions to shareholders		(11,465,310	)		(3,146,157	)		(951,028	)		(121,439	)

Capital share transactions: (Note 2)		194,026,836			139,740,070			177,107,475			—

Net increase (decrease) in net assets		216,224,188			120,181,289			176,415,800			77,413
Net assets:
Beginning of year		130,362,030			10,180,741			4,989,161			4,911,748

End of year	$	346,586,218		$	130,362,030		$	181,404,961		$	4,989,161



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FRANKLIN TEMPLETON ETF TRUST

FINANCIAL STATEMENTS

Statements of Changes in Net Assets



	Franklin Liberty Senior Loan ETF						Franklin Liberty Systematic Style Premia ETF^a

	Year Ended March 31, 2021			Year Ended March 31, 2020			Year Ended March 31, 2021			Year Ended March 31, 2020^b
Increase (decrease) in net assets:
Operations:
Net investment income	$	2,113,893		$	2,324,737		$	544,672		$	131,888
Net realized gain (loss)		(660,335	)		(592,448	)		(15,476,749	)		1,956,418
Net change in unrealized appreciation (depreciation)		4,290,337			(4,015,523	)		10,192,871			(6,861,598	)

Net increase (decrease) in net assets resulting from operations		5,743,895			(2,283,234	)		(4,739,206	)		(4,773,292	)

Distributions to shareholders		(2,065,367	)		(2,537,917	)		(3,805,981	)		(2,008	)

Capital share transactions: (Note 2)		142,589,480			2,489,243			4,524,461			55,723,365

Net increase (decrease) in net assets		146,268,008			(2,331,908	)		(4,020,726	)		50,948,065
Net assets:
Beginning of year		54,833,165			57,165,073			50,948,065			—

End of year	$	201,101,173		$	54,833,165		$	46,927,339		$	50,948,065

^aConsolidated financial statements. See Note 12.

^bFor the period December 18, 2019 (commencement of operations) to March 31, 2020.



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

FRANKLIN TEMPLETON ETF TRUST

Notes to Financial Statements

1. Organization and Significant Accounting Policies

Franklin Templeton ETF Trust (Trust) is registered under the Investment Company Act of 1940 (1940 Act) as an open-end management investment company, consisting of forty-five 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 High Yield Corporate ETF, Franklin Liberty International Aggregate Bond ETF, Franklin Liberty Senior Loan ETF and Franklin Liberty Systematic Style Premia ETF.

The following summarizes the Funds’ significant accounting policies.

a. Financial Instrument Valuation

The Funds’ investments in financial instruments are carried at fair value daily. Fair value is the price that would be received to sell an asset or paid to transfer a liability in an orderly transaction between market participants on the measurement date. The Funds calculate the net asset value (NAV) per share as of 4 p.m. Eastern time each day the New York Stock Exchange (NYSE) open for trading. Under compliance policies and procedures approved by the Trust’s Board of Trustees (the Board), the Funds’ administrator has responsibility for oversight of valuation, including leading the cross-functional Valuation Committee (VC). The Funds may utilize independent pricing services, quotations from securities and financial instrument dealers, and other market sources to determine fair value.

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.



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1. Organization and Significant Accounting Policies (continued)

a. Financial Instrument Valuation (continued)

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.



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1. Organization and Significant Accounting Policies (continued)

c. Derivative Financial Instruments (continued)

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.

Certain or all Funds entered into exchange traded futures contracts primarily to manage and/or gain exposure to equity price risk. A futures contract is an agreement between the

Fund and a counterparty to buy or sell an asset at a specified price on a future date. Required initial margins are pledged by the Fund, and the daily change in fair value is accounted for as a variation margin payable or receivable in the Statements of Assets and Liabilities.

See Note 10 regarding other derivative information.

d. Securities Purchased on a Delayed Delivery Basis

e. Senior Floating Rate Interests

Certain or all Funds invest in senior secured corporate loans that pay interest at rates which are periodically reset by reference to a base lending rate plus a spread. These base lending rates are generally the prime rate offered by a designated U.S. bank 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 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.

f. Income and Deferred Taxes

The Funds may be subject to foreign taxation related to income received, capital gains on the sale of securities and



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1. Organization and Significant Accounting Policies (continued)

f. Income and Deferred Taxes (continued)

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.

g. 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 the ex-dividend date. Distributable earnings are determined according to income tax regulations (tax basis) and may differ from earnings recorded in accordance with U.S. GAAP. These differences may be permanent or temporary. Permanent differences are reclassified among capital accounts to reflect their tax character. These reclassifications have no impact on net assets or the results of operations. Temporary differences are not reclassified, as they may reverse in subsequent periods.

Common expenses incurred by the Trust are allocated among the Funds based on the ratio of net assets of each Fund to the combined net assets of the Trust. Certain Fund specific expenses are allocated directly to the Fund that incurred the expense. These expenses are paid by the Fund or by investment manager, as applicable, according to the terms of the unified management fee agreement.

h. Accounting Estimates

The preparation of financial statements in accordance with U.S. GAAP requires management to make estimates and

i. Guarantees and Indemnifications

2. Shares of Beneficial Interest



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2. Shares of Beneficial Interest (continued)

At March 31, 2021, 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

	Year Ended March 31, 2021						Year Ended March 31, 2020

	Shares			Amount			Shares			Amount
Shares sold		7,500,000		$	194,026,836			6,900,000		$	179,541,274
Shares redeemed		—			—			(1,550,000	)		(39,801,204	)

Net increase (decrease)		7,500,000		$	194,026,836			5,350,000		$	139,740,070


	Franklin Liberty International Aggregate Bond ETF

	Year Ended March 31, 2021						Year Ended March 31, 2020

	Shares			Amount			Shares			Amount
Shares sold		9,000,000		$	226,171,307			—		$	—
Shares redeemed		(1,950,000	)		(49,063,832	)		—			—

Net increase (decrease)		7,050,000		$	177,107,475			—		$	—


	Franklin Liberty Senior Loan ETF

	Year Ended March 31, 2021						Period Ended March 31, 2020

	Shares			Amount			Shares			Amount
Shares sold		5,850,000		$	146,207,760			100,000		$	2,489,243
Shares redeemed		(150,000	)		(3,618,280	)		—			—

Net increase (decrease)		5,700,000		$	142,589,480			100,000		$	2,489,243


	Franklin Liberty Systematic Style Premia ETF

	Year Ended March 31, 2021						Period Ended March 31, 2020^a

	Shares			Amount			Shares			Amount
Shares sold		200,000		$	4,524,461			2,200,001		$	55,723,390
Shares redeemed		—			—			(1	)		(25	)

Net increase (decrease)		200,000		$	4,524,461			2,200,000		$	55,723,365

^aFor the period December 18, 2019 (commencement of operations) to March 31, 2020.

3. Transactions with Affiliates



Subsidiary		Affiliation
Franklin Advisers, Inc. (Advisers)		Investment manager
Franklin Templeton Investment Management Limited (FTIML)		Investment manager
Franklin Templeton Services, LLC (FT Services)		Administrative manager
Franklin Templeton Distributors, Inc. (Distributors)		Principal underwriter



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3. Transactions with Affiliates (continued)

a. Management Fees

Franklin Liberty High Yield Corporate ETF pays an investment management fee to Advisers based on the average daily net assets of the fund as follows:



Annualized Fee Rate		Net Assets
0.625%		Up to and including $100 million
0.500%		Over $100 million, up to and including $250 million
0.450%		Over $250 million, up to and including $7.5 billion
0.440%		Over $7.5 billion, up to and including $10 billion
0.430%		Over $10 billion, up to and including $12.5 billion
0.420%		Over $12.5 billion, up to and including $15 billion
0.400%		Over $15 billion, up to and including $17.5 billion
0.380%		Over $17.5 billion, up to and including $20 billion
0.360%		Over $20 billion, up to and including $35 billion
0.355%		Over $35 billion, up to and including $50 billion
0.350%		In excess of $50 billion

Franklin Liberty International Aggregate Bond ETF pays an investment management fee to FTIML based on the average daily net assets of the fund as follows:



Annualized Fee Rate		Net Assets
0.450%		Up to and including $1 billion
0.400%		Over $1 billion, up to and including $5 billion
0.350%		Over $5 billion, up to and including $10 billion
0.345%		Over $10 billion, up to and including $15 billion
0.340%		Over $15 billion, up to and including $20 billion
0.335%		In excess of $20 billion

Franklin Liberty Senior Loan ETF pays an investment management fee to Advisers based on the average daily net assets of the fund as follows:



Annualized Fee Rate		Net Assets
0.650%		Up to and including $500 million
0.550%		Over $500 million, up to and including $1 billion
0.500%		Over $1 billion, up to and including $1.5 billion
0.450%		Over $1.5 billion, up to and including $6.5 billion
0.425%		Over $6.5 billion, up to and including $11.5 billion
0.400%		Over $11.5 billion, up to and including $16.5 billion
0.390%		Over $16.5 billion, up to and including $19 billion
0.380%		Over $19 billion, up to and including $21.5 billion
0.370%		In excess of $21.5 billion

Franklin Liberty Systematic Style Premia ETF pays an investment management fees to Advisors based on a fee equal to an annual rate of 0.65% the average daily net assets of the Fund.



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3. Transactions with Affiliates (continued)

a. Management Fees (continued)

For the year ended March 31, 2021, 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		0.579%
Franklin Liberty International Aggregate Bond ETF		0.450%
Franklin Liberty Senior Loan ETF		0.650%
Franklin Liberty Systematic Style Premia 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 have contractually agreed in advance to waive or limit its fees and to assume as their 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 certain non-routine expenses or costs, including those relating to litigation, indemnification, reorganizations, and liquidations) until July 31, 2021. 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 certain non-routine expenses or costs, including those relating to litigation, indemnification, reorganizations, and liquidations) until July 31, 2021. Total expenses waived or paid are not subject to recapture subsequent to the Fund’s fiscal year end. For Franklin Liberty Systematic Style Premia ETF, the investment manager has contractually agreed to waive the management fee it receives from the Fund in an amount equal to the management fee paid by a Cayman Islands-based company that is wholly-owned by the Fund (Subsidiary). The waiver may not be terminated and will remain in effect for as long as the investment manager’s contract with the Subsidiary is in place. Additionally, the investment manager has contractually agreed to waive or assume certain expenses so that total annual Fund operating expenses (including acquired fund fees and expenses, but excluding certain non-routine expenses) for the Fund do not exceed 0.65% until July 31, 2021. Contractual fee waiver and/or expense reimbursement agreements may not be changed or terminated during the time period set forth above.

d. Other Affiliated Transactions

At March 31, 2021, 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 Conservative Allocation Fund		1,960,414		14.8%
Franklin Moderate Allocation Fund		2,305,851		17.4%
Franklin Growth Allocation Fund		1,059,185		8.0%
Franklin Total Return Fund		5,830,000		44.0%

		11,155,450		84.2%



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3. Transactions with Affiliates (continued)

d. Other Affiliated Transactions (continued)



Funds	Shares		Percentage of Outstanding Shares^a

Franklin Liberty International Aggregate Bond ETF
Franklin Conservative Allocation Fund		1,527,600		21.1%
Franklin Moderate Allocation Fund		1,597,125		22.0%
Franklin Growth Allocation Fund		550,225		7.6%
Franklin LifeSmart™ 2020 – 2055 Retirement Target Funds		397,745		5.5%
Franklin 529 Portfolios		2,770,375		38.2%

		6,843,070		94.4%


Franklin Liberty Senior Loan ETF
Franklin Conservative Allocation Fund		1,565,700		19.3%
Franklin Moderate Allocation Fund		1,638,425		20.2%
Franklin Growth Allocation Fund		566,250		7.0%
Franklin Total Return Fund		1,737,400		21.5%
Franklin Floating Rate Master Trust		857,785		10.6%
Franklin LifeSmart™ 2020 – 2055 Retirement Target Funds		447,343		5.5%

		6,812,903		84.1%


Franklin Liberty Systematic Style Premia ETF
Franklin Conservative Allocation Fund		268,450		11.2%
Franklin Moderate Allocation Fund		421,300		17.6%
Franklin Growth Allocation Fund		286,300		11.9%
Franklin Managed Income Fund		1,175,000		49.0%
Franklin LifeSmart™ 2020 – 2055 Retirement Target Funds		137,700		5.7%

		2,288,750		95.4%

^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, 2021, the capital loss carryforwards were as follows:



	Franklin Liberty High Yield Corporate ETF		Franklin Liberty International Aggregate Bond ETF		Franklin Liberty Senior Loan ETF		Franklin Liberty Systematic Style Premia ETF
Capital loss carryforwards not subject to expiration:
Long term	$	—	$	—	$	934,822	$	400,837
Short term		360,292		—		397,188		15,051,677

Total capital loss carryforwards	$	360,292	$	—	$	1,332,010	$	15,452,514



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NOTES TO FINANCIAL STATEMENTS

The tax character of distributions paid during the years ended March 31, 2021 and 2020, were as follows:



	Franklin Liberty High Yield Corporate ETF				Franklin Liberty International Aggregate Bond ETF

	2021		2020		2021		2020
Distributions paid from:
Ordinary income	$	11,465,310	$	3,077,201	$	951,028	$	100,249
Long-Term Capital Gain		—		68,956		—		21,190

Total Distributions paid	$	11,465,310	$	3,146,157	$	951,028	$	121,439


	Franklin Liberty Senior Loan ETF				Franklin Liberty Systematic Style Premia ETF

	2021		2020		2021		2020
Distributions paid from:
Ordinary income	$	2,065,367	$	2,537,917	$	3,805,981	$	2,008
Long-Term Capital Gain		—		—		—		—

Total Distributions paid	$	2,065,367	$	2,537,917	$	3,805,981	$	2,008

At March 31, 2021, 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			Franklin Liberty Systematic Style Premia ETF
Cost of investments	$	335,785,176		$	173,929,060		$	192,731,863		$	31,928,639

Unrealized appreciation	$	8,369,126		$	11,473,455		$	529,902		$	4,303,947
Unrealized depreciation		(4,546,834	)		(13,637,664	)		(1,029,934	)		(1,534,230	)

Net unrealized appreciation (depreciation)	$	3,822,292		$	(2,164,209	)	$	(500,032	)	$	2,769,717

Distributable earnings – undistributed ordinary income	$	704,194		$	1,800,876		$	350,803		$	687,020

Distributable earnings – undistributed capital gains		—			454			—			—

Differences between income and/or capital gains as determined on a book basis and a tax basis are primarily due to differing treatments of bond discounts and premiums.

5. Investment Transactions

Purchases and sales of investments (excluding short term securities and in-kind transactions, if any) for the year ended March 31, 2021, were as follows:



	Franklin Liberty High Yield Corporate ETF		Franklin Liberty International Aggregate Bond ETF		Franklin Liberty Senior Loan ETF		Franklin Liberty Systematic Style Premia ETF
Purchases	$	190,481,782	$	287,334,856	$	170,086,330	$	64,969,214
Sales	$	104,444,644	$	128,364,026	$	33,495,293	$	67,575,931

In-kind transactions associated with creation and redemptions for the period ended March 31, 2021, were as follows:



	Franklin Liberty High Yield Corporate ETF		Franklin Liberty International Aggregate Bond ETF		Franklin Liberty Senior Loan ETF		Franklin Liberty Systematic Style Premia ETF
Cost of Securities Received	$	102,067,274	$	—	$	—	$	—
Value of Securities Delivered	$	—	$	—	$	—	$	—



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4. Income Taxes (continued)

FRANKLIN TEMPLETON ETF TRUST

NOTES TO FINANCIAL STATEMENTS

6. Credit Risk

At March 31, 2021, Franklin Liberty High Yield Corporate ETF, Franklin Liberty International Aggregate Bond ETF, and Franklin Liberty Senior Loan ETF had 96.37%, 0.13%, and 93.06%, 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, Franklin Liberty High Yield Corporate ETF, Franklin Liberty Senior Loan ETF together with other U.S. registered and foreign investment funds (collectively, Borrowers), managed by Franklin Templeton are borrowers in a joint syndicated senior unsecured credit facility totaling $2.675 billion (Global Credit Facility) which matures on February 4, 2022. This Global Credit Facility provides a source of funds to the Borrowers for temporary and emergency purposes, including the ability to meet future unanticipated or unusually large redemption requests.

Under the terms of the Global Credit Facility, the Funds shall, in addition to interest charged on any borrowings made by the Funds and other costs incurred by the Funds, pay their share of fees and expenses incurred in connection with the implementation and maintenance of the Global Credit Facility, based upon their relative share of the aggregate net assets of all of the Borrowers, including an annual commitment fee of 0.15% based upon the unused portion of the Global Credit Facility. These fees are reflected in other expenses in the Statement of Operations. During the year ended March 31, 2021, the Funds did not use the Global Credit Facility.

8. Concentration of Risk

9. Novel Coronavirus Pandemic

10. Other Derivative Information

At March 31, 2021, 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 International Aggregate Bond ETF

Foreign exchange contracts	Unrealized appreciation on OTC forward exchange contracts	$	7,871,916	Unrealized depreciation on OTC forward exchange contracts	$	850,830

Totals		$	7,871,916		$	850,830



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10. 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 Liberty Systematic Style ETF

Foreign exchange contracts	Unrealized appreciation on OTC forward exchange contracts	$	366,833	Unrealized depreciation on OTC forward exchange contracts	$	266,859

Interest rate contracts	Swap contracts		1,746	Swap contracts		—

Equity contracts	Variation margin on futures contracts		—	Variation margin on futures contracts		206,734	^a

Totals		$	368,579		$	473,593

For the year ended At March 31, 2021, 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 High Yield Corporate ETF
	Net realized gain (loss) from:				Net change in unrealized appreciation (depreciation) on:

Swap contracts	Swap contracts	$	28,888		Swap contracts	$	513,520

Totals		$	28,888			$	513,520

Franklin Liberty International Aggregate Bond ETF
	Net realized gain (loss) from:				Net change in unrealized appreciation (depreciation) on:

Foreign exchange contracts	Forward exchange contracts	$	(17,073,693	)	Forward exchange contracts	$	6,958,790

Totals		$	(17,073,693	)		$	6,958,790

Franklin Liberty Systematic Style Premia ETF
	Net realized gain (loss) from:				Net change in unrealized appreciation (depreciation) on:

Index contracts	Futures contracts	$	(1,898,843	)	Futures contracts	$	70,651

Interest rate contracts	Swap contracts		—		Swap contracts		1,746

Foreign exchange contracts	Forward exchange contracts		(700,600	)	Forward exchange contracts		492,038

Totals		$	(2,599,443	)		$	564,435



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NOTES TO FINANCIAL STATEMENTS

10. Other Derivative Information (continued)

For the year ended At March 31, 2021, the average month end notional amount of futures and swap contracts and average month end contract value for forward exchange contracts were as follows:



	Franklin Liberty High Yield Corporate ETF		Franklin Liberty International Aggregate Bond ETF		Franklin Liberty Systematic Style Premia ETF
Credit default swap contracts	$	533,077	$	—	$	—
Futures contracts	$	—	$	—	$	48,609,223
Forward exchange contracts	$	—	$	194,050,271	$	46,349,019
Interest rate contracts	$	—	$	—	$	24,654,307

At March 31, 2021, 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 Liberty International Aggregate Bond ETF
Forward exchange contracts	$	7,871,916	$	850,830


Franklin Liberty Systematic Style Premia ETF
Forward exchange contracts	$	366,833	$	266,859
Interest rate contracts	$	1,746	$	—

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

At March 31, 2021, 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 Liberty International Aggregate Bond ETF
Counterparty
CITI	$	7,871,916	$	(850,830	)	$	—	$	—	$	7,021,086

Franklin Liberty Systematic Style Premia ETF
Counterparty
MSCO	$	366,833	$	(266,859	)	$	—	$	—	$	99,974
MSCS		1,746		—			—		—		1,746

Total	$	368,579	$	(266,859	)	$	—	$	—	$	101,720

^aIn some instances, the collateral amounts disclosed in the table above were adjusted due to the requirement to limit collateral amounts to avoid the effect of overcollateralization. Actual collateral received and/or pledged may be more than the amounts disclosed herein.



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10. Other Derivative Information (continued)

At March 31, 2021, 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^a		Cash Collateral Pledged^a		Net Amount (Not less than zero)
Franklin Liberty International Aggregate Bond ETF
Counterparty
CITI	$	850,830	$	(850,830	)	$	—	$	—	$	—


Franklin Liberty Systematic Style Premia ETF
Counterparty
MSCO	$	266,859	$	(266,859	)	$	—	$	—	$	—

11. Fair Value Measurements

•

Level 1 – quoted prices in active markets for identical financial instruments

•

Level 2 – other significant observable inputs (including quoted prices for similar financial instruments, interest rates, prepayment speed, credit risk, etc.)

•

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

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

A summary of inputs used as of March 31, 2021, in valuing the Funds’ assets and liabilities carried at fair value, is as follows:



	Level 1		Level 2		Level 3		Total

Franklin Liberty High Yield Corporate ETF

Assets:
Investments in Securities:^a
Corporate Bonds & Notes	$	—	$	339,543,239	$	—	$	339,543,239
Equity Investments		64,229		—		—		64,229

Total Investments in Securities	$	64,229	$	339,543,239	$	—	$	339,607,468



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FRANKLIN TEMPLETON ETF TRUST

NOTES TO FINANCIAL STATEMENTS

11. Fair Value Measurements (continued)



	Level 1		Level 2		Level 3		Total

Franklin Liberty International Aggregate Bond ETF

Assets:
Investments in Securities:^a
Foreign Government and Agency Securities	$	—	$	171,764,851	$	—	$	171,764,851

Total Investments in Securities	$	—	$	171,764,851	$	—	$	171,764,851

Other Financial Instruments:
Forward Exchange Contracts	$	—	$	7,871,916	$	—	$	7,871,916


Liabilities:
Other Financial Instruments:
Forward Exchange Contracts	$	—	$	850,830	$	—	$	850,830


Franklin Liberty Senior Loan ETF

Assets:
Investments in Securities:^a
Corporate Bonds & Notes	$	—	$	4,766,249	$	—	$	4,766,249
Senior Floating Rate Interests		—		184,489,759		—		184,489,759
Asset-Backed Securities		—		2,975,823		—		2,975,823

Total Investments in Securities	$	—	$	192,231,831	$	—	$	192,231,831


Franklin Liberty Systematic Style Premia ETF

Assets:
Investments in Securities:^a
Equity Investments^b	$	34,698,356	$	—	$	—	$	34,698,356

Other Financial Instruments:
Forward Exchange Contracts	$	—	$	366,833	$	—	$	366,833
Futures Contracts		397,027		—		—		397,027
Swap Contracts		—		1,746		—		1,746

Total Other Financial Instruments	$	397,027	$	368,579	$	—	$	765,606


Liabilities:
Other Financial Instruments:
Forward Exchange Contracts	$	—	$	266,859	$	—	$	266,859
Futures Contracts		603,761		—		—		603,761

Total Other Financial Instruments	$	603,761	$	266,859	$	—	$	870,620

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

^bIncludes common and preferred stocks.

12. Investments in FLSP Holdings Corporation

Franklin Liberty Systematic Style Premia ETF, (the “Fund”), invests in certain financial instruments and commodities/or commodity-linked derivative investments. The FLSP Holdings Corporation is a Cayman Islands exempted company with limited liability, is a wholly-owned subsidiary of the Fund, and is able to invest in certain financial instruments and/or commodity-linked derivative investments consistent with the investment objective of the Fund. At March 31, 2021 the Franklin Liberty Systematic Style Premia ETF investment(s) FLSP Holdings Corporation is reflected in the Fund’s Consolidated Statement of Investments. March 31, 2021, the net assets of the FLSP Holdings Corporation were $1,995,505, representing 4.25% of the Fund’s consolidated net assets. The Fund’s investment (s) in the FLSP Holdings Corporation is limited to 25% of consolidated assets.



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NOTES TO FINANCIAL STATEMENTS

13. New Accounting Pronouncements

In March 2020, the Financial Accounting Standards Board (FASB) issued Accounting Standards Update (ASU) No. 2020-04, Reference Rate Reform (Topic 848)—Facilitation of the Effects of Reference Rate Reform on Financial Reporting. The amendments in the ASU provides optional temporary financial reporting relief from the effect of certain types of contract modifications

due to the planned discontinuation of the London Interbank Offered Rate (LIBOR) and other interbank-offered based reference rates as of the end of 2021. The ASU is effective for certain reference rate-related contract modifications that occur during the period March 12, 2020 through December 31, 2022. Management has reviewed the requirements and believes the adoption of this ASU will not have a material impact on the financial statements.

14. 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
CAC	Cotation Assistée en Continu	AUD	Australian Dollar
FHLB	Federal Home Loan Bank Rate	CAD	Canadian Dollar
FRN	Floating Rate Note	DKK	Danish Krone
MGIC	Mortgage Guaranty Insurance Corp.	EUR	Euro
MIB	Milano Italia Borsa	HUF	Hungary
MSCO	Morgan Stanley	IDR	Indonesian Rupiah
NCI	National Median Cost of Funds Index	JPY	Japanese Yen
OAT	Obligation Assumable by the Treasurer	MXN	Mexican Peso
PIK	Payment-In-Kind	USD	United States Dollar
REIT	Real Estate Investment Trust
TBD	To be determined
ULSD	Ultra-Low Sulfur Diesel
USD	Unified/Union School District



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FRANKLIN TEMPLETON ETF TRUST

Report of Independent Registered Public Accounting Firm

To the Board of Trustees of Franklin Templeton ETF Trust and Shareholders of Franklin Liberty High Yield Corporate ETF, Franklin Liberty International Aggregate Bond ETF, Franklin Liberty Senior Loan ETF and Franklin Liberty Systematic Style Risk Premia ETF

Opinions on the Financial Statements

We have audited the accompanying statements of assets and liabilities, including the statements of investments, of Franklin Liberty High Yield Corporate ETF, Franklin Liberty International Aggregate Bond ETF, Franklin Liberty Senior Loan ETF and Franklin Liberty Systematic Style Risk Premia ETF (four of the funds constituting Franklin Templeton ETF Trust, hereafter collectively referred to as the “Funds”) as of March 31, 2021, the related statements of operations and of changes in net assets for each of the periods indicated in the table below, including the related notes, and the financial highlights for each of the periods indicated in the table below (collectively referred to as the “financial statements”). In our opinion, the financial statements present fairly, in all material respects, the financial position of each of the Funds as of March 31, 2021, the results of each of their operations, the changes in each of their net assets, and each of the financial highlights for each of the periods indicated in the table below, in conformity with accounting principles generally accepted in the United States of America.



Franklin Templeton ETF Trust	Statements of Operations	Statement of changes in net assets	Financial Highlights
Franklin Liberty High Yield Corporate ETF Franklin Liberty International Aggregate Bond ETF Franklin Liberty Senior Loan ETF	For the year ended March 31, 2021	For the years ended March 31, 2021 and 2020	For the years ended March 31, 2021 and 2020, and the period from May 30, 2018 (commencement of operations) to March 31, 2019
Franklin Liberty Systematic Style Risk Premia ETF	For the year ended March 31, 2021	For the year ended March 31, 2021 and the period from December 18, 2019 (commencement of operations) through March 31, 2020

Basis for Opinions

PricewaterhouseCoopers LLP

San Francisco, California

May 20, 2021

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



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Tax Information (unaudited)

At March 31, 2021, more than 50% of the Franklin Liberty International Aggregate Bond ETF’s total assets were invested in securities of foreign issuers. In most instances, foreign taxes were withheld from income paid to the Fund on these investments. The Fund elects to treat foreign taxes paid as allowed under Section 853 of the Internal Revenue Code. This election will allow shareholders of record as of the first distribution following March 31, 2021, to treat their proportionate share of foreign taxes paid by the Fund as having been paid directly by them. The shareholder shall consider these amounts as foreign taxes paid in the tax year in which they received the Fund distribution.

At March 31, 2020, more than 50% of the Franklin Liberty International Aggregate Bond ETF’s total assets were invested in securities of foreign issuers. In most instances, foreign taxes were withheld from income paid to the Fund on these investments. As shown in the table below, the Fund 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 1, 2020, to treat their proportionate share of foreign taxes paid by the Fund as having been paid directly by them. The shareholder shall consider these amounts as foreign taxes paid in the tax year in which they receive the Fund distribution.

The following table provides a detailed analysis of foreign tax paid, foreign source income, and foreign source qualified dividends as reported by the Fund 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	$	0.0001	$	0.0092	$	0.0000



Franklin Liberty High Yield Corporate ETF	Franklin Liberty International Aggregate Bond ETF		Franklin Liberty Senior Loan ETF		Franklin Liberty Systematic Style Premia ETF
$9,048,328		$180,728		$1,849,348		$3,688,495



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Board Members and Officers

Independent Board Members



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

Rohit Bhagat (1964) One Franklin Parkway San Mateo, CA 94403-1906	Lead Independent Trustee	Since 2016	49	AssetMark Financial Holdings, Inc. (investment solutions) (2018-present) and PhonePe (December 2020) (payment and financial services); formerly, Axis Bank (financial) (2013-2021), FlipKart Limited (2019-December 2020) (eCommerce company); CapFloat Financial Services Pvt., Ltd. (non-banking finance company) (2018) and Zentific Investment Management (hedge fund) (2015-2018).

Principal Occupation During at Least the Past 5 Years:
Managing Member, Mukt Capital, LLC (private investment firm) (2014-present); Advisor, Optimal Asset Management (investment technology and advisory services company) (2015-present); Chief Executive Officer and Director, FinTech Evolution Acquisition (eCommerce company) (February 2021-present); and formerly, Chairman, Asia Pacific, BlackRock (2009-2012); Global Chief Operating Officer, Barclays Global Investors (investment management) (2005-2009); and Senior Partner, The Boston Consulting Group (management consulting) (1992-2005).

Deborah D. McWhinney (1955) One Franklin Parkway San Mateo, CA 94403-1906	Trustee	Since 2020	49	IHS Markit (information services) (2015-present), Borg Warner (automotive) (2018-present), LegalShield (consumer services) (2020-present); and formerly, Fluor Corporation (construction and engineering) (2014-2020) and Focus Financial Partner, LLC (financial services) (2018-2020).

Principal Occupation During at Least the Past 5 Years:
Director of various companies; and formerly, Board Member, Lloyds Banking Group (2015-2018) (financial institution)) and Fresenius Medical Group (2016-2018) (healthcare); Chief Executive Officer (2013-2014) and Chief Operating Officer (2011-2013), CitiGroup Global Enterprise Payments (financial services); and President, Citi’s Personal Banking and Wealth Management (2009-2011).

Anantha K. Pradeep (1963) One Franklin Parkway San Mateo, CA 94403-1906	Trustee	Since 2016	49	None

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



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Interested Board Members and Officers



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

**Jennifer M. Johnson (1964) One Franklin Parkway San Mateo, CA 94403-1906	Trustee and Chairperson of the Board	Since 2016	60	None

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

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

Principal Occupation During at Least the Past 5 Years:
Deputy General Counsel, Franklin Templeton; and officer of some of the other subsidiaries of Franklin Resources, Inc. and of 42 of the investment companies in Franklin Templeton.

Breda M. Beckerle (1958) 280 Park Avenue New York, NY 10017	Chief Compliance Officer	Since November 2020	Not Applicable	Not Applicable

Principal Occupation During at Least the Past 5 Years:
Chief Compliance Officer, Fiduciary Investment Management International, Inc., Franklin Advisers, Inc., Franklin Advisory Services, LLC, Franklin Mutual Advisers, LLC, Franklin Templeton Institutional, LLC; and officer of 42 of the investment companies in Franklin Templeton.

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

Principal Occupation During at Least the Past 5 Years:
Senior Associate General Counsel, Franklin Templeton; Vice President, Franklin Templeton Distributors, Inc. and FASA, LLC; and officer of 42 of the investment companies in Franklin Templeton.

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

Principal Occupation During at Least the Past 5 Years:
Senior Vice President, Franklin Templeton Services, LLC; officer of 42 of the investment companies in Franklin Templeton; and formerly, Vice President, Global Tax (2012-April 2017) and Treasurer/Assistant Treasurer, Franklin Templeton (2009-2017).

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

Principal Occupation During at Least the Past 5 Years:
Vice President, Franklin Templeton Companies, LLC; Chief Compliance Officer, Franklin Templeton Distributors, Inc. and Franklin Templeton Investor Services, LLC; and officer of 42 of the investment companies in Franklin Templeton.



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Interested Board Members and Officers (continued)



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

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

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

Vivek Pai (1970) 300 S.E. 2nd Street Fort Lauderdale, FL 33301-1923	Treasurer, Chief Financial Officer and Chief Accounting Officer	Since 2019	Not Applicable	Not Applicable

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

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

Principal Occupation During at Least the Past 5 Years:
Associate General Counsel and officer of 42 of the investment companies in Franklin Templeton.

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

Principal Occupation During at Least the Past 5 Years:
General Counsel and Executive Vice President, Franklin Resources, Inc.; and officer of some of the other subsidiaries of Franklin Resources, Inc. and of 42 of the investment companies in Franklin Templeton.

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

Principal Occupation During at Least the Past 5 Years:
Senior Associate General Counsel, Franklin Templeton; Assistant Secretary, Franklin Resources, Inc.; Vice President and Secretary, Templeton Investment Counsel, LLC; and officer of 42 of the investment companies in Franklin Templeton.

Note 1: Officer information is current as of the date of this report. It is possible that after this date, information about officers may change.



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Shareholder Information

Proxy Voting Policies and Procedures

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 libertyshares.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 recent 12-month period ended June 30.

Quarterly Statement of Investments

Premium/Discount Information



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

ANNUAL REPORT

FRANKLIN TEMPLETON

ETF TRUST

March 31, 2021

LOGO


Franklin Disruptive Commerce ETF		Franklin Genomic Advancements ETF
Franklin Exponential Data ETF		Franklin Intelligent Machines ETF



Contents

Annual Report

Economic and Market Overview			2
Franklin Disruptive Commerce ETF			3
Franklin Exponential Data ETF			9
Franklin Genomic Advancements ETF			14
Franklin Intelligent Machines ETF			20
Financial Highlights and Statements of Investments			26
Financial Statements			38
Notes to Financial Statements			42
Report of Independent Registered Public Accounting Firm			49
Board Members and Officers			51
Shareholder Information			54


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

Visit franklintempleton.com for fund updates and documents, or to find helpful financial planning tools.



franklintempleton.com	Annual Report	1

ANNUAL REPORT

Economic and Market Overview

U.S. equities, as measured by the Standard & Poor’s^® 500 Index, advanced strongly during the 12 months ended March 31, 2021. Equities rose throughout the reporting period amid the U.S. recovery from the initial shock of the novel coronavirus (COVID-19) pandemic and related restrictions. Better understanding of safety standards that could reduce transmission led many states to partially reopen in April and May 2020, boosting equities. Several significant rounds of stimulus, including direct payments to individuals and programs designed to keep employees on payroll, also supported stock prices. In November 2020, the development of several vaccines bolstered investor confidence, and the implementation of mass vaccination programs in early 2021 led to further gains, as U.S. equities reached an all-time high in March 2021.

The U.S. economy was severely impacted by the pandemic, as business closures and restrictions on gatherings disrupted everyday life. As a result, second-quarter 2020 gross domestic product (GDP) experienced a record annualized decline, and mass layoffs drove the unemployment rate to a peak of 14.8% in April.¹ However, economic conditions improved rapidly thereafter, with GDP rebounding at a record annualized pace in 2020’s third quarter and expanding more slowly in the fourth quarter. Similarly, the unemployment rate declined notably, reaching 6.0% in March 2021 as jobless claims fell and employment openings began to increase.¹

1. Source: Bureau of Labor Statistics.



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Franklin Disruptive Commerce ETF

This annual report for Franklin Disruptive Commerce ETF covers the fiscal year ended March 31, 2021.

Your Fund’s Goal and Main Investments

The Fund seeks capital appreciation. Under normal market conditions, the Fund invests at least 80% of its net assets in equity securities of companies that are relevant to the Fund’s investment theme of disruptive commerce. These companies include those that are focused on, or that the investment manager believes will benefit from, electronic commerce, auctions, the sharing economy, electronic payments, drop shipping, direct marketing, significant decreases in transport and delivery costs and other activities or developments, as outlined in more detail in the Prospectus.

Performance Overview

During the 12-month period, the Fund posted cumulative total returns of +130.28% based on market price and +130.82% based on net asset value (NAV). In comparison, the Russell 3000^® Index posted a +62.53% total return for the same period.¹ You can find more of the Fund’s performance data in the Performance Summary beginning on page 5.


Portfolio Composition

3/31/21

	% of Total Net Assets
Internet & Direct Marketing Retail		32.6%
IT Services		21.7%
Entertainment		10.8%
Software		9.2%
Interactive Media & Services		6.7%
Road & Rail		3.1%
Health Care Technology		2.5%
Specialty Retail		2.2%
Real Estate Management & Development		2.0%
Other		5.3%
Short-Term Investments & Other Net Assets		3.9%

Investment Strategy

We use fundamental, bottom-up research analysis to identify companies positioned to capitalize on disruptive innovation or are enabling the further development of the disruptive commerce themes in the markets in which they operate. We evaluate market segments, products, services and business models positioned to benefit significantly from disruptive innovations in commerce relative to broad securities markets, and seek to identify the primary beneficiaries of new trends or developments in commerce. We may invest in companies in any economic sector or of any market capitalization and may invest in companies both inside and outside of the U.S. Although we search for investments across a large number of sectors, we expect to concentrate our investments in consumer discretionary-related industries.

1. Source: FactSet. 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.

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 27.



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FRANKLIN DISRUPTIVE COMMERCE ETF


Top 10 Holdings

3/31/21

Company *Sector/Industry*	% of Total Net Assets
Sea Ltd., ADR Entertainment		5.3%
Amazon.com Inc. Internet & Direct Marketing Retail		5.1%
Shopify Inc., A IT Services		4.9%
Fiverr International Ltd. Internet & Direct Marketing Retail	��	4.6%
MercadoLibre Inc. Internet & Direct Marketing Retail		4.4%
Square Inc., A IT Services		3.6%
PayPal Holdings Inc. IT Services		3.5%
DocuSign Inc. Software		2.7%
Uber Technologies Inc. Road & Rail		2.5%
Adyen NV, ADR IT Services		2.5%

Manager’s Discussion

During the reporting period, the information technology (IT), consumer discretionary and communications services sectors contributed to absolute performance. In IT, cloud-based commerce platform Shopify and financial technology companies PayPal Holdings and Square boosted results. In consumer discretionary, performance was aided by freelance marketplace provider Fiverr International, online marketplace MercadoLibre and online retail shopping firm Amazon.com. Communication services was boosted by online gaming services company Sea.

During the reporting period, no sectors detracted from the Fund’s absolute performance. The top individual detractors were online automobile market Vroom, food delivery service Doordash and online and retail pharmacy operator JD Health International.

Thank you for your participation in Franklin Disruptive Commerce ETF. We look forward to serving your future investment needs.

Matthew J. Moberg, CPA

Joyce Lin, CFA

Portfolio Management Team

CFA^® is a trademark owned by CFA Institute.



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FRANKLIN DISRUPTIVE COMMERCE ETF

Performance Summary as of March 31, 2021

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 (2/27/20), the NAV of the Fund is used as a proxy for the Market Price to calculate market returns. Market and NAV returns assume that dividends and capital gain distributions have been reinvested at Market Price and NAV.

Performance as of 3/31/21¹

Cumulative Total Return²

Average Annual Total Return²

Based on
NAV³

Based on

market price⁴

Based on
NAV³

Based on

market price⁴

1-Year

+130.82%

+130.28%

+130.82%

+130.28%

Since Inception (2/25/20)

+96.84%

+97.12%

+85.51%

+85.76%

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 recent month-end performance, go to franklintempleton.com or call (800) 342-5236.

See page 7 for Performance Summary footnotes.



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FRANKLIN DISRUPTIVE COMMERCE ETF

PERFORMANCE SUMMARY

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

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

2/25/20–3/31/21

LOGO

See page 7 for Performance Summary footnotes.



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FRANKLIN DISRUPTIVE COMMERCE ETF

PERFORMANCE SUMMARY

Total Annual Operating Expenses⁶



With Fee Waiver	Without Fee Waiver
0.50%		3.23%

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. Source: Morningstar. The Russell 3000 Index is market capitalization-weighted and represents the majority of the U.S. market’s total capitalization.

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



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FRANKLIN DISRUPTIVE COMMERCE 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

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


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

Beginning Account Value 10/1/20		Ending Account Value 3/31/21		Expenses Paid During Period 10/1/20–3/31/21^1,2		Ending Account Value 3/31/21		Expenses Paid During Period 10/1/20–3/31/21^1,2		Net Annualized Expense Ratio²
	$1,000.00	$	1,158.40	$	2.69	$	1,022.44	$	2.52		0.50	%

2. Reflects expenses after fee waivers and expense reimbursements.



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Franklin Exponential Data ETF

This annual report for Franklin Exponential Data ETF covers the period since the Fund’s inception on January 12, 2021, through March 31, 2021.

Your Fund’s Goal and Main Investments

The Fund seeks capital appreciation. Under normal market conditions, the Fund invests at least 80% of its net assets in equity securities of companies that are relevant to the Fund’s investment theme of exponential data. These companies include those that are focused on, or that the investment manager believes will benefit from, the use of large data sets and/or growth of data, including systems, services, hardware, software and other digital and physical infrastructure related to data products or services, as outlined in more detail in the Prospectus.

Performance Overview

During the period since the Fund’s inception on January 12, 2021, through March 31, 2021, the Fund posted cumulative total returns of -6.52% based on market price and -6.64% based on net asset value (NAV). In comparison, the Russell 3000^® Index posted a +4.23% 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.


Portfolio Composition

3/31/21

	% of Total Net Assets
Software		35.8%
Interactive Media & Services		29.1%
IT Services		10.7%
Equity Real Estate Investment Trusts (REITs)		5.5%
Capital Markets		4.3%
Health Care Technology		2.2%
Electronic Equipment, Instruments & Components		2.1%
Entertainment		2.0%
Other		6.5%
Short-Term Investments & Other Net Assets		1.8%

Investment Strategy

We use fundamental, bottom-up research analysis to identify companies positioned to capitalize on innovations in or that are enabling the further development of the exponential data theme in the markets in which they operate. We evaluate market segments, products, services and business models positioned to benefit significantly from innovations in data products or services or the commercialization of data relative to the broad equities market, and seek to identify the primary beneficiaries of new trends or developments in exponential data. We may invest in companies in any economic sector or of any market capitalization and may invest in companies both inside and outside of the U.S. Although we search for investments across a large number of sectors, we expect to concentrate our investments in information technology-related industries.

1. Source: FactSet. 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.

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

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



franklintempleton.com	Annual Report	9

FRANKLIN EXPONENTIAL DATA ETF


Top 10 Holdings

3/31/21

Company *Sector/Industry*	% of Total Net Assets
Pinterest Inc., A Interactive Media & Services		5.7%
Facebook Inc., A Interactive Media & Services		5.6%
Alphabet Inc., A Interactive Media & Services		4.9%
Snap Inc., A Interactive Media & Services		4.8%
Twilio Inc., A IT Services		3.8%
The Trade Desk Inc., A Software		3.7%
Fortinet Inc. Software		3.2%
Datadog Inc., A Software		3.1%
Microsoft Corp. Software		3.0%
Twitter Inc. Interactive Media & Services		3.0%

Manager’s Discussion

During the reporting period, the information technology (IT), health care and industrials sectors detracted from absolute results. In IT, detractors included database program developer MongoDB, digital advertising company The Trade Desk, cybersecurity provider Crowdstrike Holdings and video game developer Unity Software. There were no top 10 detractors among health care and industrials. Elsewhere, social media company Snap and streaming service provider Roku also hindered results.

Turning to contributors, the communication services and real estate sectors boosted absolute performance. In communication services, Google’s parent holding company Alphabet and social media companies Facebook and Twitter boosted results. In real estate, contributors included communications infrastructure provider Crown Castle International and data center operators Digital Realty Trust and Equinix.

Thank you for your participation in Franklin Exponential Data ETF. We look forward to serving your future investment needs.

Matthew J. Moberg, CPA

Joyce Lin, CFA

Portfolio Management Team



10	Annual Report	franklintempleton.com

FRANKLIN EXPONENTIAL DATA ETF

Performance Summary as of March 31, 2021

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 (1/14/21), the NAV of the Fund is used as a proxy for the Market Price to calculate market returns. Market and NAV returns assume that dividends and capital gain distributions have been reinvested at Market Price and NAV.

Performance as of 3/31/21¹

Cumulative Total Return²

Average Annual Total Return²

Based on
NAV³

Based on
market price⁴

Based on
NAV³

Based on
market price⁴

Since Inception (1/12/21)

-6.64%

-6.52%

-6.64%

-6.52%

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 recent month-end performance, go to franklintempleton.com or call (800) 342-5236.

See page 12 for Performance Summary footnotes.



franklintempleton.com	Annual Report	11

FRANKLIN EXPONENTIAL DATA ETF

PERFORMANCE SUMMARY

Total Annual Operating Expenses⁵



With Fee Waiver	Without Fee Waiver
0.50%		0.75%

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. The Fund’s investment strategies incorporate the identification of thematic investment opportunities and its performance may be negatively impacted if the investment manager does not correctly identify such opportunities or if the theme develops in an unexpected manner. By focusing its investments in information technology related industries, the Fund carries much greater risks of adverse developments and price movements in such industries than a Fund that invests in a wider variety of industries. Companies operating within information technology related industries may be affected by worldwide technological developments, the success of their products and services (which may be outdated quickly), anticipated products or services that are delayed or cancelled, and investor perception of the company and/or its products or services. These companies typically face intense competition and potentially rapid product obsolescence. They may also have limited product lines, markets, financial resources or personnel. Technology companies are also heavily dependent on intellectual property rights and may be adversely affected by loss or impairment of those rights. There can be no assurance these companies will be able to successfully protect their intellectual property to prevent the misappropriation of their technology, or that competitors will not develop technology that is substantially similar or superior to such companies’ technology. These companies typically engage in significant amounts of spending on research and development, and there is no guarantee that the products or services produced by these companies will be successful. Technology companies are also potential targets for cyberattacks, which can have a materially adverse impact on the performance of these companies. In addition, companies operating within the technology sector may develop and/or utilize artificial intelligence. Artificial intelligence technology could face increasing regulatory scrutiny in the future, which may limit the development of this technology and impede the growth of companies that develop and/or utilize this technology. Similarly, the collection of data from consumers and other sources could face increased scrutiny as regulators consider how the data is collected, stored, safeguarded and used. The customers and/or suppliers of technology companies may be concentrated in a particular country, region or industry. Any adverse event affecting one of these countries, regions or industries could have a negative impact on these companies. Special risks are associated with foreign investing, including currency fluctuations, economic instability and political developments. As a non-diversified fund, the Fund may invest in a relatively small number of issuers and, as a result, be subject to greater risk of loss with respect to its portfolio securities. Events such as the spread of deadly diseases, disasters, and financial, political or social disruptions, may heighten risks and adversely affect performance. 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.

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



12	Annual Report	franklintempleton.com

FRANKLIN EXPONENTIAL DATA 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 1/12/21¹		Ending Account Value 3/31/21		Expenses Paid During Period 1/12/21–3/31/21^2,3		Ending Account Value 3/31/21		Expenses Paid During Period 10/1/20–3/31/21^2,3		Net Annualized Expense Ratio³
	$1,000.00	$	933.60	$	0.52	$	1,010.15	$	0.54		0.25	%

1. 1/12/21 for Actual; 1/12/21 for Hypothetical.

2. Expenses are equal to the annualized expense ratio for the six-month period as indicated above—in the far right column—multiplied by the simple average account value over the period indicated, and then multiplied by 182/365 to reflect the one-half year period. For Actual expenses, the multiplier is 78/365 to reflect the number of days since commencement of operations.

3. Reflects expenses after fee waivers and expense reimbursements.



franklintempleton.com	Annual Report	13

Franklin Genomic Advancements ETF

This annual report for Franklin Genomic Advancements ETF covers the fiscal year ended March 31, 2021.

Your Fund’s Goal and Main Investments

The Fund seeks capital appreciation. Under normal market conditions, the Fund invests at least 80% of its net assets in equity securities of companies that are relevant to the Fund’s investment theme of genomic advancements. These companies include those that are focused on, that the investment manager believes will benefit from, extending and enhancing the quality of human and animal life through technological or scientific advancements in such areas as genetic engineering, gene therapy, genome analysis and other uses, as outlined in more detail in the Prospectus.

Performance Overview

During the 12-month period, the Fund posted cumulative total returns of +94.06% based on market price and +91.81% based on net asset value (NAV). In comparison, the Russell 3000^® Index posted a +62.53% total return for the same period.¹ You can find more of the Fund’s performance data in the Performance Summary beginning on page 16.


Portfolio Composition

3/31/21

	% of Total Net Assets
Life Sciences Tools & Services		47.7%
Biotechnology		34.5%
Health Care Technology		7.2%
Health Care Providers & Services		3.3%
Pharmaceuticals		3.0%
Health Care Equipment & Supplies		2.3%
Other		1.0%
Short-Term Investments & Other Net Assets		1.0%

Investment Strategy

We use fundamental, bottom-up research analysis to identify companies positioned to capitalize on disruptive innovation or are enabling the further development of the genomic advancements theme in the markets in which they operate. We evaluate market segments, products, services and business models positioned to benefit significantly from advancements in genomics relative to broad securities markets, and seek to identify the primary beneficiaries of new trends or developments in genomics. We may invest in companies in any economic sector or of any market capitalization and may invest in companies both inside and outside of the U.S. Although we search for investments across a large number of sectors, we expect to concentrate our investments in health care-related industries.

1. Source: FactSet. 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.

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 33.



14	Annual Report	franklintempleton.com

FRANKLIN GENOMIC ADVANCEMENTS ETF


Top 10 Holdings

3/31/21

Company *Sector/Industry*	% of Total Net Assets
Intellia Therapeutics Inc. Biotechnology		6.9%
WuXi Biologics (Cayman) Inc. Life Sciences Tools & Services		5.7%
Repligen Corp. Life Sciences Tools & Services		4.8%
Natera Inc. Biotechnology		4.7%
Illumina Inc. Life Sciences Tools & Services		4.6%
CRISPR Therapeutics AG Biotechnology		4.2%
Guardant Health Inc. Health Care Providers & Services		3.3%
10X Genomics Inc., A Life Sciences Tools & Services		3.1%
Veeva Systems Inc. Health Care Technology		3.0%
Catalent Inc. Pharmaceuticals		3.0%

Manager’s Discussion

During the reporting period, the health care sector supported absolute performance. Within the sector, contributors included genome-editing biopharmaceuticals company Intellia Therapeutics, biopharmaceutical development technology platform company WuXi Biologics (Cayman) and consumer digital health platform provider Livongo Health. Genome-editing technology firm CRISPR Therapeutics and genetic testing company Natera also contributed. The information technology sector helped absolute results to a lesser extent, and there were no companies from the sector among the Fund’s top 10 contributors.

No other sectors were represented in the Fund. Individual holdings that detracted from absolute results included rare disease technology platform developer Invitae, prescription drug price data company GoodRx Holdings and biosimulation software provider Certara.

Thank you for your participation in Franklin Genomic Advancements ETF. We look forward to serving your future investment needs.

Matthew J. Moberg, CPA

Joyce Lin, CFA

Portfolio Management Team



franklintempleton.com	Annual Report	15

FRANKLIN GENOMIC ADVANCEMENTS ETF

Performance Summary as of March 31, 2021

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 (2/27/20), the NAV of the Fund is used as a proxy for the Market Price to calculate market returns. Market and NAV returns assume that dividends and capital gain distributions have been reinvested at Market Price and NAV.

Performance as of 3/31/21¹

Cumulative Total Return²

Average Annual Total Return²

Based on
NAV³

Based on
market price⁴

Based on
NAV³

Based on
market price⁴

1-Year

+91.81%

+94.06%

+91.81%

+94.06%

Since Inception (2/25/20)

+73.25%

+73.65%

+65.11%

+65.46%

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 recent month-end performance, go to franklintempleton.com or call (800) 342-5236.

See page 18 for Performance Summary footnotes.



16	Annual Report	franklintempleton.com

FRANKLIN GENOMIC ADVANCEMENTS ETF

PERFORMANCE SUMMARY

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

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

2/25/20–3/31/21

LOGO

See page 18 for Performance Summary footnotes.



franklintempleton.com	Annual Report	17

FRANKLIN GENOMIC ADVANCEMENTS ETF

PERFORMANCE SUMMARY

Distributions (4/1/20–3/31/21)



Net Investment Income	Short-Term Capital Gain		Total
$0.005005		$0.046775		$0.051780

Total Annual Operating Expenses⁶



With Fee Waiver	Without Fee Waiver
0.50%		3.14%

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. Source: Morningstar. The Russell 3000 Index is market capitalization-weighted and represents the majority of the U.S. market’s total capitalization.

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



18	Annual Report	franklintempleton.com

FRANKLIN GENOMIC ADVANCEMENTS ETF

Your Fund’s Expenses

Actual Fund Expenses

Hypothetical Example for Comparison with Other Funds


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

Beginning Account Value 10/1/20		Ending Account Value 3/31/21		Expenses Paid During Period 10/1/20–3/31/21^1,2		Ending Account Value 3/31/21		Expenses Paid During Period 10/1/20–3/31/21^1,2		Net Annualized Expense Ratio²
	$1,000.00	$	1,237.10	$	2.79	$	1,022.44	$	2.52		0.50	%

2. Reflects expenses after fee waivers and expense reimbursements.



franklintempleton.com	Annual Report	19

Franklin Intelligent Machines ETF

This annual report for Franklin Intelligent Machines ETF covers the fiscal year ended March 31, 2021.

Your Fund’s Goal and Main Investments

The Fund seeks capital appreciation. Under normal market conditions, the Fund invests at least 80% of its net assets in equity securities of companies that are relevant to the Fund’s investment theme of intelligent machines. These companies include those that are focused on, or that the investment manager believes will benefit from, the ongoing technology-driven transformation of products, software, systems and machinery as well as product design, manufacture, logistics, distribution and maintenance, including through developments in artificial intelligence, as outlined in more detail in the Prospectus.

Performance Overview

During the 12-month period, the Fund posted cumulative total returns of +109.87% based on market price and +109.21% based on net asset value (NAV). In comparison, the Russell 3000^® Index posted a +62.53% total return for the same period.¹ You can find more of the Fund’s performance data in the Performance Summary beginning on page 22.


Portfolio Composition

3/31/21

	% of Total Net Assets
Software		21.4%
Semiconductors & Semiconductor Equipment		20.6%
Health Care Equipment & Supplies		16.4%
Electronic Equipment, Instruments & Components		9.2%
Automobiles		8.6%
Technology Hardware, Storage & Peripherals		6.1%
Aerospace & Defense		5.1%
Health Care Technology		3.2%
Machinery		2.7%
Other		4.3%
Short-Term Investments & Other Net Assets		2.4%

Investment Strategy

We use fundamental, bottom-up research analysis to identify companies positioned to capitalize on disruptive innovation in or are enabling the further development of the intelligent machines theme in the markets in which they operate. We evaluate market segments, products, services and business models positioned to benefit significantly from disruptive innovations in intelligent products, design, manufacturing and/or predictive maintenance relative to broad securities markets, and seek to identify the primary beneficiaries of new trends or developments in physical applications of these innovations. We may invest in companies in any economic sector or of any market capitalization and may invest in companies both inside and outside of the U.S. Although we search for investments across a large number of sectors, we expect to have significant investments in particular sectors, including technology.

1. Source: FactSet. 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.

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 36.



20	Annual Report	franklintempleton.com

FRANKLIN INTELLIGENT MACHINES ETF


Top 10 Holdings

3/31/21

Company *Sector/Industry*	% of Total Net Assets
Tesla Inc. Automobiles		8.6%
Apple Inc. Technology Hardware, Storage & Peripherals		5.7%
Intuitive Surgical Inc. Health Care Equipment & Supplies		5.2%
Taiwan Semiconductor Manufacturing Co. Ltd., Sponsored ADR Semiconductors & Semiconductor Equipment		3.5%
Autodesk Inc. Software		3.4%
NVIDIA Corp. Semiconductors & Semiconductor Equipment		3.3%
Zebra Technologies Corp., A Electronic Equipment, Instruments & Components		3.3%
Axon Enterprise Inc. Aerospace & Defense		3.1%
ANSYS Inc. Software		2.7%
ASML Holding N.V. Semiconductors & Semiconductor Equipment		2.4%

Manager’s Discussion

During the reporting period, sectors that contributed to the Fund’s absolute performance included information technology (IT), health care and consumer discretionary. In IT, leading contributors included consumer technology firm Apple and barcode scanner and data capture products provider Zebra Technologies. From health care, consumer digital health platform provider Livongo Health, cardiac sensor maker iRhythm Technologies and robotic surgical tools manufacturer Intuitive Surgical supported results. Electric vehicle manufacturer Tesla lifted performance in the consumer discretionary sector.

No sectors detracted from absolute performance. Individual detractors included telemedicine company Teladoc, aerospace and defense systems provider Raytheon Technologies, and telecommunications equipment firm Motorola Solutions.

Thank you for your participation in Franklin Intelligent Machines ETF. We look forward to serving your future investment needs.

Matthew J. Moberg, CPA

Joyce Lin, CFA

Portfolio Management Team



franklintempleton.com	Annual Report	21

FRANKLIN INTELLIGENT MACHINES ETF

Performance Summary as of March 31, 2021

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 (2/27/20), the NAV of the Fund is used as a proxy for the Market Price to calculate market returns. Market and NAV returns assume that dividends and capital gain distributions have been reinvested at Market Price and NAV.

Performance as of 3/31/21¹

Cumulative Total Return²

Average Annual Total Return²

Based on
NAV³

Based on
market price⁴

Based on
NAV³

Based on
market price⁴

1-Year

+109.21%

+109.87%

+109.21%

+109.87%

Since Inception (2/25/20)

+72.98%

+73.10%

+64.88%

+64.98%

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 recent month-end performance, go to franklintempleton.com or call (800) 342-5236.

See page 24 for Performance Summary footnotes.



22	Annual Report	franklintempleton.com

FRANKLIN INTELLIGENT MACHINES ETF

PERFORMANCE SUMMARY

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

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

2/25/20–3/31/21

LOGO

See page 24 for Performance Summary footnotes.



franklintempleton.com	Annual Report	23

FRANKLIN INTELLIGENT MACHINES ETF

PERFORMANCE SUMMARY

Distributions (4/1/20–3/31/21)

Net Investment
Income

$0.004320

Total Annual Operating Expenses⁶



With Fee Waiver	Without Fee Waiver
0.50%		3.30%

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. Source: Morningstar. The Russell 3000 Index is market capitalization-weighted and represents the majority of the U.S. market’s total capitalization.

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



24	Annual Report	franklintempleton.com

FRANKLIN INTELLIGENT MACHINES ETF

Your Fund’s Expenses

Actual Fund Expenses

Hypothetical Example for Comparison with Other Funds


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

Beginning Account Value 10/1/20		Ending Account Value 3/31/21		Expenses Paid During Period 10/1/20–3/31/21^1,2		Ending Account Value 3/31/21		Expenses Paid During Period 10/1/20–3/31/21^1,2		Net Annualized Expense Ratio²
	$1,000.00	$	1,269.30	$	2.83	$	1,022.44	$	2.52		0.50	%

2. Reflects expenses after fee waivers and expense reimbursements.



franklintempleton.com	Annual Report	25

FRANKLIN TEMPLETON ETF TRUST

Financial Highlights

Franklin Disruptive Commerce ETF



	Year Ended March 31,

	2021			2020^a

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

Net asset value, beginning of year	$	21.32		$	25.00


Income from investment operations^b:

Net investment loss^c		(0.21	)		(0.01	)

Net realized and unrealized gains (losses)		28.10			(3.67	)


Total from investment operations		27.89			(3.68	)


Net asset value, end of year	$	49.21		$	21.32


Total return^d		130.82%			(14.72)%

Ratios to average net assets^e

Expenses before waiver and payments by affiliates		0.87%			12.59%

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

Net investment loss		(0.44)%			(0.32)%

Supplemental data

Net assets, end of year (000’s)		$41,827			$2,132

Portfolio turnover rate^f		45.81%	^g		0.94%	^g

^aFor the period February 25, 2020 (commencement of operations) to March 31, 2020.

^cBased on average daily shares outstanding.

^eRatios are annualized for periods less than one year.

^fPortfolio turnover rate includes portfolio transactions that are executed as a result of the Fund offering and redeeming Creation Units solely for cash (“Cash creations”).


^gPortfolio turnover rate excluding cash creations was as follows:			45.81%				0.94%



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

FRANKLIN TEMPLETON ETF TRUST

Statement of Investments, March 31, 2021

Franklin Disruptive Commerce ETF



		Country		Shares		Value
	Common Stocks 96.1%
	Diversified Consumer Services 1.9%
a	Chegg Inc.		United States		4,984	$	426,929
a	New Oriental Education & Technology Group Inc., ADR		China		26,070		364,980


							791,909

	Entertainment 10.8%
	Activision Blizzard Inc.		United States		4,892		454,956
a	Bilibili Inc., ADR		China		3,642		389,913
a	Netflix Inc.		United States		810		422,545
	Nexon Co. Ltd.		Japan		7,079		229,987
	Nintendo Co. Ltd.		Japan		344		192,422
a	Sea Ltd., ADR		Taiwan		9,886		2,206,852
a	Spotify Technology SA		United States		1,343		359,857
a	Zynga Inc.		United States		25,773		263,142


							4,519,674

	Equity Real Estate Investment Trusts (REITs) 0.6%
	Prologis Inc.		United States		2,278		241,468

	Health Care Technology 2.5%
a	Teladoc Inc.		United States		5,757		1,046,335

	Hotels, Restaurants & Leisure 0.6%
a	Airbnb Inc.		United States		1,265		237,744

	Interactive Media & Services 6.7%
a	Facebook Inc., A		United States		1,620		477,138
a	Match Group Inc.		United States		2,908		399,501
	Tencent Holdings Ltd.		China		11,961		938,486
a	Zillow Group Inc., C		United States		5,819		754,375
a	ZoomInfo Technologies Inc., A		United States		4,624		226,114


							2,795,614

	Internet & Direct Marketing Retail 32.6%
a	Alibaba Group Holding Ltd., ADR		China		3,883		880,393
a	Amazon.com Inc.		United States		688		2,128,727
a	Booking Holdings Inc.		United States		195		454,319
a	Chewy Inc., A		United States		5,305		449,387
a	Delivery Hero SE		Germany		3,339		433,638
a	DoorDash Inc., A		United States		3,050		399,946
a	Etsy Inc.		United States		3,978		802,243
a	Farfetch Ltd., A		United Kingdom		3,918		207,732
a	Fiverr International Ltd.		Israel		8,811		1,913,573
a,b	JD Health International Inc., 144A		China		21,342		306,084
a	JD.com Inc., ADR		China		10,626		896,091
a,c	Meituan Dianping, B, Reg S		China		22,382		858,493
a	MercadoLibre Inc.		Argentina		1,241		1,826,926
a	Ocado Group PLC		United Kingdom		10,626		298,345
a	Overstock.com Inc.		United States		2,755		182,546
a	Ozon Holdings PLC, ADR		Cyprus		4,619		258,987
a	Pinduoduo Inc., ADR		China		7,023		940,239
a	Zalando SE		Germany		2,028		199,357
	Zozo Inc.		Japan		7,140		211,292


							13,648,318

	IT Services 21.7%
a	Adyen NV, ADR		Netherlands		23,461		1,049,411
a	Afterpay Ltd.		Australia		5,730		442,972
a	Pagseguro Digital Ltd., A		Brazil		3,061		141,724
a	PayPal Holdings Inc.		United States		6,069		1,473,796
a	Shopify Inc., A		Canada		1,867		2,065,835



franklintempleton.com	Annual Report	27

FRANKLIN TEMPLETON ETF TRUST

STATEMENT OF INVESTMENTS

Franklin Disruptive Commerce ETF (continued)



		Country		Shares		Value
	Common Stocks (continued)
	IT Services (continued)
a	Square Inc., A		United States		6,596	$	1,497,622
a	StoneCo Ltd., A		Brazil		5,885		360,280
a	Twilio Inc., A		United States		1,972		671,979
	Visa Inc., A		United States		1,977		418,590
a	Wix.com Ltd.		Israel		3,366		939,854


							9,062,063

	Leisure Equipment & Products 0.8%
a	Peloton Interactive Inc., A		United States		3,192		358,908

	Multiline Retail 0.4%
	Magazine Luiza SA		Brazil		44,699		160,324

	Professional Services 1.0%
a	CoStar Group Inc.		United States		502		412,589

	Real Estate Management & Development 2.0%
a	KE Holdings Inc., ADR		China		7,421		422,848
a	Redfin Corp.		United States		6,157		409,995

							832,843

	Road & Rail 3.1%
a	Lyft Inc., A		United States		3,655		230,923
a	Uber Technologies Inc.		United States		19,267		1,050,244

							1,281,167

	Software 9.2%
a	Avalara Inc.		United States		6,892		919,600
a	Coupa Software Inc.		United States		832		211,727
a	Crowdstrike Holdings Inc., A		United States		3,179		580,199
a	DocuSign Inc.		United States		5,628		1,139,389
a	Lightspeed POS Inc.		Canada		6,469		406,767
a	Manhattan Associates Inc.		United States		1,795		210,697
a	Q2 Holdings Inc.		United States		1,901		190,480
a	Zendesk Inc.		United States		1,564		207,418

							3,866,277

	Specialty Retail 2.2%
a	Carvana Co.		United States		3,529		926,010

	Total Investments (Cost $33,427,452) 96.1%						40,181,243
	Other Assets, less Liabilities 3.9%						1,645,514

	Net Assets 100.0%					$	41,826,757

See Abbreviations on page 48.

^aNon-income producing.

^bSecurity was purchased pursuant to Rule 144A under the Securities Act of 1933 and may be sold in transactions exempt from registration only to qualified institutional buyers or in a public offering registered under the Securities Act of 1933. At March 31, 2021, the value of this security was $306,084, representing 0.7% of net assets.

^cSecurity was purchased pursuant to Regulation S under the Securities Act of 1933, which exempts from registration securities offered and sold outside of the United States. Such a security cannot be sold in the United States without either an effective registration statement filed pursuant to the Securities Act of 1933, or pursuant to an exemption from registration. At March 31, 2021, the value of this security was $858,493, representing 2.1% of net assets.



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

FRANKLIN TEMPLETON ETF TRUST

Financial Highlights

Franklin Exponential Data ETF



	Year Ended March 31, 2021^a

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

Net asset value, beginning of year	$	25.00


Income from investment operations^b:

Net investment loss^c		(—	)^d

Net realized and unrealized gains (losses)		(1.66	)


Total from investment operations		(1.66	)


Net asset value, end of year	$	23.34


Total return^e		(6.64)%

Ratios to average net assets^f

Expenses before waiver and payments by affiliates		5.95%

Expenses net of waiver and payments by affiliates		0.25%

Net investment loss		(0.07)%

Supplemental data

Net assets, end of year (000’s)		$2,334

Portfolio turnover rate^g		23.20%	^h

^aFor the period January 12, 2021 (commencement of operations) to March 31, 2021.

^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 includes portfolio transactions that are executed as a result of the Fund offering and redeeming Creation Units solely for cash (“Cash creations”).


^hPortfolio turnover rate excluding cash creations was as follows:		23.20%



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

FRANKLIN TEMPLETON ETF TRUST

Statement of Investments, March 31, 2021

Franklin Exponential Data ETF



		Country		Shares		Value
	Common Stocks 98.2%
	Capital Markets 4.3%
	FactSet Research Systems Inc.		United States		74	$	22,835
	Moody’s Corp.		United States		88		26,278
	MSCI Inc.		United States		56		23,480
	S&P Global Inc.		United States		78		27,524


							100,117

	Communications Equipment 1.1%
a	Arista Networks Inc.		United States		86		25,963

	Electronic Equipment, Instruments & Components 2.1%
a	Keysight Technologies Inc.		United States		339		48,613

	Entertainment 2.0%
a	Roku Inc.		United States		142		46,259

	Equity Real Estate Investment Trusts (REITs) 5.5%
	Crown Castle International Corp.		United States		153		26,336
	Digital Realty Trust Inc.		United States		169		23,802
	Equinix Inc.		United States		75		50,969
	SBA Communications Corp.		United States		97		26,922


							128,029

	Health Care Technology 2.2%
a	Certara Inc.		United States		873		23,833
a	Schrodinger Inc.		United States		347		26,473


							50,306

	Interactive Media & Services 29.1%
a	Alphabet Inc., A		United States		56		115,501
a	Facebook Inc., A		United States		440		129,593
a	Pinterest Inc., A		United States		1,797		133,032
a	Snap Inc., A		United States		2,123		111,012
	Tencent Holdings Ltd.		China		814		63,868
a	Twitter Inc.		United States		1,085		69,039
a	ZoomInfo Technologies Inc., A		United States		1,179		57,653


							679,698

	Internet & Direct Marketing Retail 0.5%
a	PubMatic Inc., A		United States		252		12,429

	IT Services 10.7%
a	Fastly Inc., A		United States		181		12,178
a	Gartner Inc.		United States		158		28,843
a	GDS Holdings Ltd., ADR		China		266		21,570
a	MongoDB Inc.		United States		169		45,196
a	Okta Inc.		United States		26		5,731
a	Snowflake Inc., A		United States		209		47,919
a	Twilio Inc., A		United States		260		88,597


							250,034

	Life Sciences Tools & Services 1.1%
a	Illumina Inc.		United States		66		25,348

	Professional Services 1.9%
a	Dun & Bradstreet Holdings Inc.		United States		930		22,143
	TransUnion		United States		252		22,680


							44,823

	Software 35.8%
a	Cloudflare Inc., A		United States		545		38,292
a	Crowdstrike Holdings Inc., A		United States		374		68,259



30	Annual Report	franklintempleton.com

FRANKLIN TEMPLETON ETF TRUST

STATEMENT OF INVESTMENTS

Franklin Exponential Data ETF (continued)



		Country		Shares		Value
	Common Stocks (continued)
	Software (continued)
a	Datadog Inc., A		United States		869	$	72,422
a	Dynatrace Inc.		United States		938		45,249
a	Elastic NV		United States		158		17,570
a	Fair Isaac Corp.		United States		48		23,330
a	Five9 Inc.		United States		146		22,824
a	Fortinet Inc.		United States		405		74,690
	Microsoft Corp.		United States		296		69,788
a	Palantir Technologies Inc., A		United States		894		20,821
a	Palo Alto Networks Inc.		United States		205		66,022
a	Proofpoint Inc.		United States		181		22,768
a	RingCentral Inc., A		United States		142		42,299
a	The Trade Desk Inc., A		United States		133		86,671
	Trend Micro Inc.		Japan		475		23,815
a	Varonis Systems Inc.		United States		432		22,179
a	VMware Inc., A		United States		176		26,479
a	Zoom Video Communications Inc., A		United States		72		23,133
a	Zscaler Inc.		United States		401		68,840


							835,451

	Wireless Telecommunication Services 1.9%
a	T-Mobile US Inc.		United States		353		44,227

	Total Investments before Short Term Investments (Cost $2,393,491)						2,291,297

	Short Term Investments 2.6%
	Money Market Funds 2.6%
b,c	Institutional Fiduciary Trust Portfolio, 0.01%		United States		59,857		59,857

	Total Short-Term Investments (Cost $59,857)						59,857

	Total Investments (Cost $2,453,348) 100.8%						2,351,154
	Other Assets, less Liabilities (0.8)%						(17,594	)

	Net Assets 100.0%					$	2,333,560

See Abbreviations on page 48.

^aNon-income producing.

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

^cThe 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. \| Annual Report	31

FRANKLIN TEMPLETON ETF TRUST

Financial Highlights

Franklin Genomic Advancements ETF



	Year Ended March 31,

	2021			2020^a

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

Net asset value, beginning of year	$	22.58		$	25.00


Income from investment operations^b:

Net investment loss^c		(0.18	)		(0.01	)

Net realized and unrealized gains (losses)		20.92			(2.41	)


Total from investment operations		20.74			(2.42	)


Less distributions from:

Net investment income		(0.01	)		—

Net realized gains		(0.05	)		—


Total distributions		(0.06	)		—


Net asset value, end of year	$	43.26		$	22.58


Total return^d		91.81%			(9.68)%

Ratios to average net assets^e

Expenses before waiver and payments by affiliates		1.84%			12.22%

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

Net investment loss		(0.45)%			(0.37)%

Supplemental data

Net assets, end of year (000’s)		$15,140			$2,258

Portfolio turnover rate^f		46.58%	^g		2.20%	^g

^aFor the period February 25, 2020 (commencement of operations) to March 31, 2020.

^cBased on average daily shares outstanding.

^eRatios are annualized for periods less than one year.

^fPortfolio turnover rate includes portfolio transactions that are executed as a result of the Fund offering and redeeming Creation Units solely for cash (“Cash creations”).


^gPortfolio turnover rate excluding cash creations was as follows:			44.75%				2.20%



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

FRANKLIN TEMPLETON ETF TRUST

Statement of Investments, March 31, 2021

Franklin Genomic Advancements ETF



		Country		Shares		Value
	Common Stocks 99.0%
	Biotechnology 34.5%
a	Beam Therapeutics Inc.		United States		2,347	$	187,854
a	BioNTech SE, ADR		Germany		3,057		333,794
a	CRISPR Therapeutics AG		Switzerland		5,286		644,099
a	Editas Medicine Inc.		United States		4,391		184,422
a	Exact Sciences Corp.		United States		2,423		319,303
a	Fate Therapeutics Inc.		United States		3,437		283,381
a	Intellia Therapeutics Inc.		United States		12,951		1,039,383
a	Invitae Corp.		United States		8,492		324,479
a	Iovance Biotherapeutics Inc.		United States		5,061		160,231
a	Ligand Pharmaceuticals Inc.		United States		525		80,036
a	Moderna Inc.		United States		2,207		289,007
a	Natera Inc.		United States		6,958		706,515
a	PTC Therapeutics Inc.		United States		1,199		56,773
a	Rocket Pharmaceuticals Inc.		United States		5,068		224,867
a	Twist Bioscience Corp.		United States		1,057		130,920
a	Ultragenyx Pharmaceutical Inc.		United States		778		88,583
a	Veracyte Inc.		United States		3,064		164,690


							5,218,337

	Health Care Equipment & Supplies 2.3%
	Biomerieux		France		609		77,660
a	CryoPort Inc.		United States		5,160		268,371


							346,031

	Health Care Providers & Services 3.3%
a	Guardant Health Inc.		United States		3,231		493,212

	Health Care Technology 7.2%
a	American Well Corp.		United States		4,305		74,778
a	Certara Inc.		United States		4,888		133,442
a	Teladoc Inc.		United States		2,320		421,660
a	Veeva Systems Inc.		United States		1,771		462,656


							1,092,536

	Life Sciences Tools & Services 47.7%
a	10X Genomics Inc., A		United States		2,578		466,618
	Agilent Technologies Inc.		United States		2,444		310,730
a	Berkeley Lights Inc.		United States		1,584		79,564
a	Bio-Rad Laboratories Inc., A		United States		204		116,519
	Bio-Techne Corp.		United States		364		139,023
	Bruker Corp.		United States		3,767		242,143
a	Charles River Laboratories International Inc.		United States		1,247		361,418
a	Evotec SE		Germany		7,498		270,893
a	ICON PLC		Ireland		466		91,508
a	Illumina Inc.		United States		1,818		698,221
	Lonza Group AG		Switzerland		788		442,415
a	Maravai LifeSciences Holdings Inc., A		United States		4,578		163,160
a	Medpace Holdings Inc.		United States		1,361		223,272
a	NanoString Technologies Inc.		United States		3,246		213,295
a	NeoGenomics Inc.		United States		4,666		225,041
a	Pacific Biosciences of California Inc.		United States		12,315		410,213
	PerkinElmer Inc.		United States		1,079		138,425
a	PPD Inc.		United States		4,032		152,571
a	PRA Health Sciences Inc.		United States		1,596		244,715
a	QIAGEN NV		Netherlands		2,380		115,882
a	Repligen Corp.		United States		3,774		733,703
a	Seer Inc.		United States		2,566		128,351
	Thermo Fisher Scientific Inc.		United States		868		396,138



franklintempleton.com	Annual Report	33

FRANKLIN TEMPLETON ETF TRUST

STATEMENT OF INVESTMENTS

Franklin Genomic Advancements ETF (continued)



		Country		Shares		Value
	Common Stocks (continued)
	Life Sciences Tools & Services (continued)
a	WuXi Biologics (Cayman) Inc.		China		68,717	$	860,460


							7,224,278

	Pharmaceuticals 3.0%
a	Catalent Inc.		United States		4,347		457,783

	Semiconductors & Semiconductor Equipment 1.0%
	NVIDIA Corp.		United States		298		159,111

	Total Investments (Cost $12,743,596) 99.0%						14,991,288
	Other Assets, less Liabilities 1.0%						148,357

	Net Assets 100.0%					$	15,139,645

See Abbreviations on page 48.

^aNon-income producing.



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

FRANKLIN TEMPLETON ETF TRUST

Financial Highlights

Franklin Intelligent Machines ETF



	Year Ended March 31,

	2021			2020^a

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

Net asset value, beginning of year	$	20.67		$	25.00


Income from investment operations^b:

Net investment income (loss)^c		(0.06	)		—

Net realized and unrealized gains (losses)		22.63			(4.33	)


Total from investment operations		22.57			(4.33	)


Less distributions from net investment income		(0.00	)^d		—


Net asset value, end of year	$	43.24		$	20.67


Total return^e		109.21%			(17.32)%

Ratios to average net assets^f

Expenses before waiver and payments by affiliates		2.19%			12.91%

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

Net investment income (loss)		(0.17)%			0.20%

Supplemental data

Net assets, end of year (000’s)		$10,809			$2,067

Portfolio turnover rate^g		75.25%	^h		—%	^h

^aFor the period February 25, 2020 (commencement of operations) to March 31, 2020.

^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 includes portfolio transactions that are executed as a result of the Fund offering and redeeming Creation Units solely for cash (“Cash creations”).


^hPortfolio turnover rate excluding cash creations was as follows:			75.25%



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

FRANKLIN TEMPLETON ETF TRUST

Statement of Investments, March 31, 2021

Franklin Intelligent Machines ETF



		Country		Shares		Value
	Common Stocks 97.6%
	Aerospace & Defense 5.1%
a	Aerovironment Inc.		United States		955	$	110,837
a	Axon Enterprise Inc.		United States		2,335		332,551
a	Kratos Defence & Security Solutions Inc.		United States		3,856		105,192


							548,580

	Air Freight & Logistics 0.5%
	ZTO Express Cayman Inc., ADR		China		1,856		54,102

	Auto Components 1.0%
a	Aptiv PLC		United States		821		113,216

	Automobiles 8.6%
a	Tesla Inc.		United States		1,388		927,087

	Electrical Equipment 1.9%
	Eaton Corp. PLC		United States		410		56,695
	Rockwell Automation Inc.		United States		350		92,904
a	Sensata Technologies Holding PLC		United States		925		53,604


							203,203

	Electronic Equipment, Instruments & Components 9.2%
	Amphenol Corp., A		United States		3,050		201,209
	Cognex Corp.		United States		666		55,271
	Keyence Corp.		Japan		355		161,501
a	Keysight Technologies Inc.		United States		831		119,165
	TE Connectivity Ltd.		United States		856		110,518
a	Zebra Technologies Corp., A		United States		730		354,182


							1,001,846

	Health Care Equipment & Supplies 16.4%
a	Align Technology Inc.		United States		200		108,306
a	DexCom Inc.		United States		302		108,536
a	IDEXX Laboratories Inc.		United States		336		164,408
a	Insulet Corp.		United States		691		180,296
a	Intuitive Surgical Inc.		United States		757		559,378
a	Masimo Corp.		United States		591		135,729
a	Nevro Corp.		United States		585		81,607
a	Novocure Ltd.		United States		1,636		216,246
	ResMed Inc.		United States		716		138,918
	Stryker Corp.		United States		315		76,728


							1,770,152

	Health Care Technology 3.2%
a	Inspire Medical Systems Inc.		United States		776		160,624
a	Teladoc Inc.		United States		1,060		192,655


							353,279

	Industrial Conglomerates 0.9%
	Roper Technologies Inc.		United States		236		95,188

	Machinery 2.7%
	Fortive Corp.		United States		440		31,082
	Harmonic Drive Systems Inc.		Japan		600		40,616
a	Proto Labs Inc.		United States		1,395		169,841
	YASKAWA Electric Corp.		Japan		1,000		49,864


							291,403

	Semiconductors & Semiconductor Equipment 20.6%
	Applied Materials Inc.		United States		1,041		139,078
	ASML Holding N.V.		Netherlands		423		261,143



36	Annual Report	franklintempleton.com

FRANKLIN TEMPLETON ETF TRUST

STATEMENT OF INVESTMENTS

Franklin Intelligent Machines ETF (continued)



		Country		Shares		Value
	Common Stocks (continued)
	Semiconductors & Semiconductor Equipment (continued)
	Brooks Automation Inc.		United States		1,785	$	145,745
	Entegris Inc.		United States		2,201		246,072
	Infineon Technologies AG		Germany		3,291		139,844
	KLA Corp.		United States		421		139,098
	Lam Research Corp.		United States		210		125,000
	MKS Instruments Inc.		United States		301		55,812
	NVIDIA Corp.		United States		666		355,597
	Taiwan Semiconductor Manufacturing Co. Ltd., Sponsored ADR		Taiwan		3,225		381,453
	Teradyne Inc.		United States		1,933		235,208


							2,224,050

	Software 21.4%
a	Altair Engineering Inc.		United States		3,586		224,376
a	ANSYS Inc.		United States		850		288,626
a	Aspen Technology Inc.		United States		295		42,577
a	Atlassian Corp. PLC		United States		386		81,353
a	Autodesk Inc.		United States		1,310		363,067
	Bentley Systems Inc., B		United States		1,260		59,132
a	Cadence Design Systems Inc.		United States		1,635		223,979
a	Cerence Inc.		United States		2,320		207,826
	Dassault Systemes		France		791		169,570
a	PTC Inc.		United States		1,676		230,701
a	Synopsys Inc.		United States		955		236,630
a	The Descartes Systems Group Inc.		Canada		2,985		182,090


							2,309,927

	Technology Hardware, Storage & Peripherals 6.1%
	Apple Inc.		United States		5,020		613,193
a	Stratasys Ltd.		United States		1,790		46,361


							659,554

	Total Investments (Cost $9,935,434) 97.6%						10,551,587
	Other Assets, less Liabilities 2.4%						257,292

	Net Assets 100.0%					$	10,808,879

See Abbreviations on page 48.

^aNon-income producing.



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

FRANKLIN TEMPLETON ETF TRUST

FINANCIAL STATEMENTS

Statements of Assets and Liabilities

March 31, 2020



	Franklin Disruptive Commerce ETF		Franklin Exponential Data ETF			Franklin Genomic Advancements ETF		Franklin Intelligent Machines ETF
Assets:
Investments in securities:
Cost – Unaffiliated issuers	$	33,427,452	$	2,393,491		$	12,743,596	$	9,935,434
Cost – Non-controlled affiliates (Note 3c)		—		59,857			—		—
Value – Unaffiliated issuers	$	40,181,243	$	2,291,297		$	14,991,288	$	10,551,587

Value – Non-controlled affiliates (Note 3c)		—		59,857			—		—
Cash		1,689,193		400			184,334		289,627
Receivables:
Dividends		4,481		—			226		2,550
Affiliates		1,094		11,222			13,178		14,125

Total assets		41,876,011		2,362,776			15,189,026		10,857,889

Liabilities:
Payables:
Transfer agent fees		12,000		2,565			12,000		12,000
Trustees’ fees and expenses		29		192			5		4
Custodian fees		975		283			980		923
Professional fees		20,670		21,069			20,670		20,670
Reports to shareholders		1,070		1,282			3,642		3,791
Registration and filing fees		3,534		1,260			1,072		618
Accrued expenses and other liabilities		10,976		2,565			11,012		11,004

Total liabilities		49,254		29,216			49,381		49,010

Net assets, at value	$	41,826,757	$	2,333,560		$	15,139,645	$	10,808,879

Net assets consist of:
Paid-in capital	$	34,882,488	$	2,499,617		$	13,021,627	$	10,169,232
Total distributable earnings (loss)		6,944,269		(166,057	)		2,118,018		639,647

Net assets, at value	$	41,826,757	$	2,333,560		$	15,139,645	$	10,808,879

Shares outstanding		850,000		100,000			350,000		250,000

Net asset value per share	$	49.21	$	23.34		$	43.26	$	43.24



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FINANCIAL STATEMENTS

Statements of Operations

for the year ended March 31, 2021



	Franklin Disruptive Commerce ETF			Franklin Exponential Data ETF^b			Franklin Genomic Advancements ETF			Franklin Intelligent Machines ETF
Investment income:
Dividends: (net of foreign taxes)^a
Unaffiliated issuers	$	13,871		$	971		$	3,098		$	15,983

Total investment income		13,871			971			3,098			15,983

Expenses:
Management fees (Note 3a)		115,493			2,679			31,131			24,251
Transfer agent fees		15,588			2,565			15,588			15,588
Custodian fees		1,295			283			1,307			1,221
Reports to shareholders		7,450			1,282			7,363			7,338
Registration and filing fees		16,342			1,260			14,879			14,425
Professional fees		34,047			21,069			33,583			32,774
Trustee fees (Note 3a)		562			192			18			—
Other		10,853			2,565			10,854			10,852

Total expenses		201,630			31,895			114,723			106,449
Expenses waived/paid by affiliates (Note 3c)		(86,137	)		(30,555	)		(83,592	)		(82,170	)

Net expenses		115,493			1,340			31,131			24,279

Net investment Loss		(101,622	)		(369	)		(28,033	)		(8,296	)

Realized and unrealized gains (losses):
Net realized gain (loss) from:
Investments:
Unaffiliated issuers		295,349			(63,863	)		(89,495	)		31,902
In-kind redemptions		—			—			—			1,113,827
Foreign currency transactions		1,004			(14	)		(691	)		(102	)

Net realized gain (loss)		296,353			(63,877	)		(90,186	)		1,145,627

Net change in unrealized appreciation (depreciation) on:
Investments:
Unaffiliated issuers		7,116,863			(102,194	)		2,487,194			1,049,759
Translation of other assets and liabilities denominated in foreign currencies		(21	)		—			—			(12	)

Net change in unrealized appreciation (depreciation)		7,116,842			(102,194	)		2,487,194			1,049,747

Net realized and unrealized gain (loss)		7,413,195			(166,071	)		2,397,008			2,195,374

Net increase (decrease) in net assets resulting from operations	$	7,311,573		$	(166,440	)	$	2,368,975		$	2,187,078


^aForeign taxes withheld on dividends:	$	882	$	—	$	393	$	1,098

^bFor the period January 12, 2021 (commencement of operations) to March 31, 2021.



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FRANKLIN TEMPLETON ETF TRUST

FINANCIAL STATEMENTS

Statements of Changes in Net Assets



	Franklin Disruptive Commerce ETF						Franklin Exponential Data ETF

	Year Ended March 31, 2021			Year Ended March 31, 2020^a			Year Ended March 31, 2021^b
Increase (decrease) in net assets:
Operations:
Net investment income (Loss)	$	(101,622	)	$	(672	)	$	(369	)
Net realized gain (loss)		296,353			(4,283	)		(63,877	)
Net change in unrealized appreciation (depreciation)		7,116,842			(363,072	)		(102,194	)

Net increase (decrease) in net assets resulting from operations		7,311,573			(368,027	)		(166,440	)

Capital share transactions: (Note 2)		32,383,211			2,500,000			2,500,000

Net increase (decrease) in net assets		39,694,784			2,131,973			2,333,560
Net assets:
Beginning of year		2,131,973			—			—

End of year (Note 1f)	$	41,826,757		$	2,131,973		$	2,333,560

^aFor the period February 25, 2020 (commencement of operations) to March 31, 2020.

^bFor the period January 12, 2021 (commencement of operations) to March 31, 2021.



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FRANKLIN TEMPLETON ETF TRUST

FINANCIAL STATEMENTS

Statements of Changes in Net Assets



	Franklin Genomic Advancements ETF						Franklin Intelligent Machines ETF

	Year Ended March 31, 2021			Year Ended March 31, 2020^a			Year Ended March 31, 2021			Year Ended March 31, 2020^a
Increase (decrease) in net assets:
Operations:
Net investment income (Loss)	$	(28,033	)	$	(798	)	$	(8,296	)	$	413
Net realized gain (loss)		(90,186	)		(1,512	)		1,145,627			19
Net change in unrealized appreciation (depreciation)		2,487,194			(239,502	)		1,049,747			(433,604	)

Net increase (decrease) in net assets resulting from operations		2,368,975			(241,812	)		2,187,078			(433,172	)

Distributions to shareholders		(10,356	)		—			(432	)		—

Capital share transactions: (Note 2)		10,522,838			2,500,000			6,555,405			2,500,000

Net increase (decrease) in net assets		12,881,457			2,258,188			8,742,051			2,066,828
Net assets:
Beginning of year		2,258,188			—			2,066,828			—

End of year (Note 1f)	$	15,139,645		$	2,258,188		$	10,808,879		$	2,066,828

^aFor the period February 25, 2020 (commencement of operations) to March 31, 2020.



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FRANKLIN TEMPLETON ETF TRUST

Notes to Financial Statements

1. Organization and Significant Accounting Policies

The Franklin Exponential Data ETF Fund commenced operations on January 12, 2021.

The following summarizes the Funds’ significant accounting policies

a. Financial Instrument Valuation

The Funds may utilize independent pricing services, quotations from securities and financial instrument dealers, and other market sources to determine fair value.

Equity securities listed on an exchange or on the NASDAQ National Market System are valued at the last quoted sale price or the official closing price of the day, respectively. Foreign equity securities are valued as of the close of trading on the foreign stock exchange on which the security is primarily traded or as of 4 p.m. Eastern time. The value is then converted into its U.S. dollar equivalent at the foreign exchange rate in effect at 4 p.m. London time on the day that the value of the security is determined. Over-the-counter (OTC) securities are valued within the range of the most recent quoted bid and ask prices. Securities that trade in multiple markets or on multiple exchanges are valued according to the broadest and most representative market. Certain equity securities are valued based upon fundamental characteristics or relationships to similar securities.

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



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NOTES TO FINANCIAL STATEMENTS

1. Organization and Significant Accounting Policies (continued)

b. Foreign Currency Translation

c. Income and Deferred Taxes

the foreign markets in which the Funds invest. When a capital gain tax is determined to apply, certain or all Funds record an estimated deferred tax liability in an amount that would be payable if the securities were disposed of on the valuation date.

d. Security Transactions, Investment Income, Expenses and Distributions

e. Accounting Estimates



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NOTES TO FINANCIAL STATEMENTS

1. Organization and Significant Accounting Policies (continued)

f. 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 March 31, 2021, there were an unlimited number of shares authorized (without par value). Transactions in the Funds’ shares were as follows:



	Franklin Disruptive Commerce ETF

	Year Ended March 31, 2021						Period Ended March 31, 2020^a

	Shares			Amount			Shares			Amount
Shares sold		750,000		$	32,383,211			100,001		$	2,500,025
Shares redeemed		—			—			(1	)		(25	)

Net increase (decrease)		750,000		$	32,383,211			100,000		$	2,500,000


	Franklin Exponential Data ETF

	Period Ended March 31, 2021^a

	Shares			Amount
Shares sold		100,001		$	2,500,025
Shares redeemed		(1	)		(25	)

Net increase (decrease)		100,000		$	2,500,000



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NOTES TO FINANCIAL STATEMENTS

2. Shares of Beneficial Interest (continued)



	Franklin Genomic Advancements ETF

	Year Ended March 31, 2021						Period Ended March 31, 2020^a

	Shares			Amount			Shares			Amount
Shares sold		250,000		$	10,522,838			100,001		$	2,500,025
Shares redeemed		—			—			(1	)		(25	)

Net increase (decrease)		250,000		$	10,522,838			100,000		$	2,500,000


	Franklin Intelligent Machines ETF

	Year Ended March 31, 2021						Period Ended March 31, 2020^b

	Shares			Amount			Shares			Amount
Shares sold		200,000		$	8,928,972			100,001		$	2,500,025
Shares redeemed		(50,000	)		(2,373,567	)		(1	)		(25	)

Net increase (decrease)		150,000		$	6,555,405			100,000		$	2,500,000

^aFor the period January 12, 2021 (commencement of operations) to March 31, 2021.

^bFor the period February 25, 2020 (commencement of operations) to March 31, 2020.

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 Disruptive Commerce ETF		0.50%
Franklin Exponential Data ETF		0.50%
Franklin Genomic Advancements ETF		0.50%
Franklin Intelligent Machines ETF		0.50%



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NOTES TO FINANCIAL STATEMENTS

3. Transactions with Affiliates (continued)

b. Administrative Fees

c. Waiver and Expense Reimbursements

The Adviser has contractually agreed to waive or assume certain expenses so that total annual Fund operating expenses (including acquired fund fees and expenses, but excluding certain non-routine expenses) do not exceed 0.50% for the Franklin Disrupitive Commerce ETF, Franklin Genomic Advancements ETF and Franklin Intelligent Machine ETF Funds until July 31, 2021 and 0.25% for the Franklin Exponential Data ETF Fund until July 31, 2022. Contractual fee waiver and/or expense reimbursement agreements may not be changed or terminated during the time period set forth above.

d. Investments in Affiliated Management Investment Companies

Certain or all Funds invest in one or more affiliated management investment companies. As defined in the 1940 Act, an investment is deemed to be a “Controlled Affiliate” of a fund when a fund owns, either directly or indirectly, 25% or more of the affiliated fund’s outstanding shares or has the power to exercise control over management or policies of such fund. The Fund’s do not invest for purposes of exercising a controlling influence over the management or policies. Management fees paid by the Funds are waived on assets invested in the affiliated management investment companies, as noted in the Statements of Operations, in an amount not to exceed the management and administrative fees paid directly or indirectly by each affiliate. During the year ended March 31, 2021, investments in affiliated management investment companies were as follows:



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

Franklin Exponential Data ET
Non-Controlled Affiliates																Dividend Income

Institutional Fiduciary Trust Money Market Portfolio 0.01%	$	—	$	175,485	$	(115,628	)	$	—	$	—	$	59,857		59,857	$	—

e. Other Affiliated Transactions

At March 31, 2021, the shares of Franklin Exponential Data ETF, were owned by the following entities:



	Shares		Percentage of Outstanding Shares^a
Franklin Exponential Data ETF
Franklin Resources Inc.		20,000		20.0%

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

4. Income Taxes

For tax purposes, capital losses may be carried over to offset future capital gains, if any. At March 31, 2021, the capital loss carryforwards were as follows:



	Franklin Disruptive Commerce ETF		Franklin Exponential Data ETF		Franklin Genomic Advancements ETF		Franklin Intelligent Machines ETF
Capital loss carryforwards not subject to expiration:
Short term	$	—	$	59,126	$	—		—

Total capital loss carryforwards	$	—	$	59,126	$	—		—



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NOTES TO FINANCIAL STATEMENTS

4. Income Taxes (continued)

For tax purposes, the Funds may elect to defer any portion of late-year ordinary loss to the first day of the following fiscal year. At March 31, 2021, the deferred losses were as follows:



	Franklin Genomic Advancements ETF
Post October capital losses	$	(88,793	)
Late-year ordinary losses	$	(29,066	)

Capital loss carry over used in current year	$	1,584

During the year ended March 31, 2021, Franklin Disruptive Commerce ETF utilized $4,232 of capital loss carryforward.

The tax character of distributions paid during the years ended March 31, 2021 and 2020, were as follows:



	Franklin Genomic Advancements ETF				Franklin Intelligent Machines ETF

	2021		2020		2021		2020
Distributions paid from ordinary income	$	10,356	$	—	$	432	$	—

At March 31, 2021, the cost of investments and net unrealized appreciation (depreciation) for income tax purposes were as follows:



	Franklin Disruptive Commerce ETF			Franklin Exponential Data ETF			Franklin Genomic Advancements ETF			Franklin Intelligent Machines ETF
Cost of investments	$	33,459,507		$	2,458,085		$	12,755,411		$	9,935,434

Unrealized appreciation	$	7,471,714		$	92,978		$	2,608,206		$	783,124
Unrealized depreciation		(749,978	)		(199,909	)		(372,329	)		(166,971	)

Net unrealized appreciation (depreciation)	$	6,721,736		$	(106,931	)	$	2,235,877		$	616,153

Distributable earnings – undistributed ordinary income	$	206,803		$	—		$	—		$	7,989

Distributable earnings – undistributed capital gains	$	15,751		$	—		$	—		$	15,515

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

5. Investment Transactions

Purchases and sales of investments (excluding short term securities and in-kind transactions, if any) for the year ended March 31, 2021, were as follows:



	Franklin Disruptive Commerce ETF		Franklin Exponential Data ETF		Franklin Genomic Advancements ETF		Franklin Intelligent Machines ETF
Purchases	$	41,060,673	$	3,017,090	$	3,306,998	$	10,014,396
Sales	$	10,379,440	$	559,628	$	2,996,891	$	3,710,231

6. Concentration of Risk



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NOTES TO FINANCIAL STATEMENTS

7. Novel Coronavirus Pandemic

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.

At March 31, 2021, all of the Funds’ investments in financial instruments carried at fair value were valued using Level 1 inputs.

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
REIT		Real Estate Investment Trust



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Report of Independent Registered Public Accounting Firm

To the Board of Trustees of Franklin Templeton ETF Trust and Shareholders of Franklin Disruptive Commerce ETF, Franklin Exponential Data ETF, Franklin Genomic Advancements ETF, and Franklin Intelligent Machines ETF

Opinions on the Financial Statements

We have audited the accompanying statements of assets and liabilities, including the statements of investments, of Franklin Disruptive Commerce ETF, Franklin Genomic Advancements ETF, Franklin Exponential Data ETF, and Franklin Intelligent Machines ETF (four of the funds constituting Franklin Templeton ETF Trust, hereafter collectively referred to as the “Funds”) as of March 31, 2021, the related statements of operations and of changes in net assets for each of the periods indicated in the table below, including the related notes, and the financial highlights for each of the periods indicated in the table below (collectively referred to as the “financial statements”). In our opinion, the financial statements present fairly, in all material respects, the financial position of each of the Funds as of March 31, 2021, the results of each of their operations, the changes in each of their net assets, and each of the financial highlights for each of the periods indicated in the table below, in conformity with accounting principles generally accepted in the United States of America.



Franklin Templeton ETF Trust	Statements of Operations	Statement of changes in net assets, and financial highlights
Franklin Disruptive Commerce ETF Franklin Genomic Advancements ETF Franklin Intelligent Machines ETF	For the year ended March 31, 2021	For the year ended March 31, 2021 and the period from February 25, 2020 (commencement of operations) through March 31, 2020
Franklin Exponential Data ETF	For the period from January 12, 2021 (commencement of operations) through March 31, 2021

Basis for Opinions

Our audits included performing procedures to assess the risks of material misstatement of the financial statements, whether due to error or fraud, and performing procedures that respond to those risks. Such procedures included examining, on a test basis, evidence regarding the amounts and disclosures in the financial statements. Our audits also included evaluating the accounting principles used and significant estimates made by management, as well as evaluating the overall presentation of the financial statements. Our procedures included confirmation of securities owned as of March 31, 2021 by correspondence with the custodian, transfer agent and brokers; when replies were not received from brokers, we performed other auditing procedures. We believe that our audits provide a reasonable basis for our opinions.

PricewaterhouseCoopers LLP

San Francisco, California

May 20, 2021

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



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Tax information (unaudited)

Under Section 854(b)(1)(A) of the Internal Revenue Code, the Franklin Genomic Advancements ETF hereby reports 16.20% of the ordinary income dividends as income qualifying for the dividends received deduction for the fiscal year ended March 31, 2021.



		Franklin Genomic Advanvcements ETF
			$3,314

Under Section 871(k)(2)(C) of the Internal Revenue Code, the Funds hereby report the maximum amount allowable but no less than the following amounts as short-term capital gain dividends for purposes of the tax imposed under Section 871(a)(1)(A) of the Internal Revenue Code for the fiscal year ended March 31, 2021:



		Franklin Genomic Advanvcements ETF
			$9,355



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Board Members and Officers

Independent Board Members



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

Rohit Bhagat (1964) One Franklin Parkway San Mateo, CA 94403-1906	Lead Independent Trustee	Since 2016	49	AssetMark Financial Holdings, Inc. (investment solutions) (2018-present) and PhonePe (December 2020) (payment and financial services); formerly, Axis Bank (financial) (2013-2021), FlipKart Limited (2019-December 2020) (eCommerce company); CapFloat Financial Services Pvt., Ltd. (non-banking finance company) (2018) and Zentific Investment Management (hedge fund) (2015-2018).

Principal Occupation During at Least the Past 5 Years:
Managing Member, Mukt Capital, LLC (private investment firm) (2014-present); Advisor, Optimal Asset Management (investment technology and advisory services company) (2015-present); Chief Executive Officer and Director, FinTech Evolution Acquisition (eCommerce company) (February 2021-present); and formerly, Chairman, Asia Pacific, BlackRock (2009-2012); Global Chief Operating Officer, Barclays Global Investors (investment management) (2005-2009); and Senior Partner, The Boston Consulting Group (management consulting) (1992-2005).

Deborah D. McWhinney (1955) One Franklin Parkway San Mateo, CA 94403-1906	Trustee	Since 2020	49	IHS Markit (information services) (2015-present), Borg Warner (automotive) (2018-present), LegalShield (consumer services) (2020-present); and formerly, Fluor Corporation (construction and engineering) (2014-2020) and Focus Financial Partner, LLC (financial services) (2018-2020).

Principal Occupation During at Least the Past 5 Years:
Director of various companies; and formerly, Board Member, Lloyds Banking Group (2015-2018) (financial institution)) and Fresenius Medical Group (2016-2018) (healthcare); Chief Executive Officer (2013-2014) and Chief Operating Officer (2011-2013), CitiGroup Global Enterprise Payments (financial services); and President, Citi’s Personal Banking and Wealth Management (2009-2011).

Anantha K. Pradeep (1963) One Franklin Parkway San Mateo, CA 94403-1906	Trustee	Since 2016	49	None

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



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Interested Board Members and Officers



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

**Jennifer M. Johnson (1964) One Franklin Parkway San Mateo, CA 94403-1906	Trustee and Chairperson of the Board	Since 2016	60	None

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

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

Principal Occupation During at Least the Past 5 Years:
Deputy General Counsel, Franklin Templeton; and officer of some of the other subsidiaries of Franklin Resources, Inc. and of 42 of the investment companies in Franklin Templeton.

Breda M. Beckerle (1958) 280 Park Avenue New York, NY 10017	Chief Compliance Officer	Since November 2020	Not Applicable	Not Applicable

Principal Occupation During at Least the Past 5 Years:
Chief Compliance Officer, Fiduciary Investment Management International, Inc., Franklin Advisers, Inc., Franklin Advisory Services, LLC, Franklin Mutual Advisers, LLC, Franklin Templeton Institutional, LLC; and officer of 42 of the investment companies in Franklin Templeton.

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

Principal Occupation During at Least the Past 5 Years:
Senior Associate General Counsel, Franklin Templeton; Vice President, Franklin Templeton Distributors, Inc. and FASA, LLC; and officer of 42 of the investment companies in Franklin Templeton.

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

Principal Occupation During at Least the Past 5 Years:
Senior Vice President, Franklin Templeton Services, LLC; officer of 42 of the investment companies in Franklin Templeton; and formerly, Vice President, Global Tax (2012-April 2017) and Treasurer/Assistant Treasurer, Franklin Templeton (2009-2017).

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

Principal Occupation During at Least the Past 5 Years:
Vice President, Franklin Templeton Companies, LLC; Chief Compliance Officer, Franklin Templeton Distributors, Inc. and Franklin Templeton Investor Services, LLC; and officer of 42 of the investment companies in Franklin Templeton.



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Interested Board Members and Officers (continued)



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

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

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

Vivek Pai (1970) 300 S.E. 2nd Street Fort Lauderdale, FL 33301-1923	Treasurer, Chief Financial Officer and Chief Accounting Officer	Since 2019	Not Applicable	Not Applicable

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

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

Principal Occupation During at Least the Past 5 Years:
Associate General Counsel and officer of 42 of the investment companies in Franklin Templeton.

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

Principal Occupation During at Least the Past 5 Years:
General Counsel and Executive Vice President, Franklin Resources, Inc.; and officer of some of the other subsidiaries of Franklin Resources, Inc. and of 42 of the investment companies in Franklin Templeton.

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

Principal Occupation During at Least the Past 5 Years:
Senior Associate General Counsel, Franklin Templeton; Assistant Secretary, Franklin Resources, Inc.; Vice President and Secretary, Templeton Investment Counsel, LLC; and officer of 42 of the investment companies in Franklin Templeton.

Note 1: Officer information is current as of the date of this report. It is possible that after this date, information about officers may change.



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FRANKLIN TEMPLETON ETF TRUST

Shareholder Information

Board Approval of Investment Management Agreements

FRANKLIN TEMPLETON ETF TRUST

Franklin Exponential Data ETF

(Fund)

At an in-person meeting held on November 20, 2020 (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 (FT) 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 FT family of funds; the Manager’s strength and reputation within the industry; the personnel, operations, financial condition, and investment management capabilities, methodologies and resources of the Manager; and the Manager’s compliance capabilities, as demonstrated by, among other things, its policies and procedures reasonably designed to prevent violations of the Federal Securities Laws (as defined in Rule 38a-1 of the Investment Company Act of 1940). Following consideration of such information, the Board was satisfied with the nature, extent and quality of services to be provided by the Manager and its affiliates to the Fund and its shareholders.

Fund Performance

The Board noted that, as the Fund had not yet commenced investment operations, there was no investment performance for the Fund. The Board also considered the proposed performance benchmark for the Fund and how such benchmark would be utilized to measure performance of the Manager.

Comparative Fees and Expenses

The Board reviewed and considered information regarding the Fund’s 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



54	Annual Report	franklintempleton.com

FRANKLIN TEMPLETON ETF TRUST

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, three other science & technology funds, and one financial services fund. The Board noted that the proposed Management Rate and estimated total expense ratio were below the medians of its Expense Group. The Board concluded that the Management Rate to be charged to the Fund is reasonable. In doing so, the Board noted the Fund’s estimated 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

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 recent 12-month period ended June 30.

Quarterly Statement of Investments

Premium/Discount Information



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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.

(a) Audit Fees

The aggregate fees paid to the principal accountant for professional services rendered by the principal accountant for the audit of the registrant’s annual financial statements or for services that are normally provided by the principal accountant in connection with statutory and regulatory filings or engagements were $832,900 for the fiscal year ended March 31, 2021 and $942,524 for the fiscal year ended March 31, 2020.

(b) Audit-Related Fees

There were no fees paid to the principal accountant for assurance and related services rendered by the principal accountant to the registrant that are reasonably related to the performance of the audit of the registrant’s financial statements and are not reported under paragraph (a) of Item 4.

There were no fees paid to the principal accountant for assurance and related services rendered by the principal accountant to the registrant’s investment adviser and any entity controlling, controlled by or under common control with the investment adviser that provides ongoing services to the registrant that are reasonably related to the performance of the audit of their financial statements.

There were no fees paid to the principal accountant for professional services rendered by the principal accountant to the registrant for tax compliance, tax advice and tax planning.

The aggregate fees paid to the principal accountant for professional services rendered by the principal accountant to the registrant’s investment adviser and any entity controlling, controlled by or under common control with the investment adviser that provides ongoing services to the registrant for tax compliance, tax advice and tax planning were $170,219 for the fiscal year ended March 31, 2021 and $232,351 for the fiscal year ended March 31, 2020. The services for which these fees were paid included tax compliance services related to year-end, and professional fees in connection with tax treatment of equipment lease transactions.

(d) All Other Fees

The aggregate fees paid to the principal accountant for products and services rendered by the principal accountant to the registrant not reported in paragraphs (a)-(c) of Item 4 were $0 for the fiscal year ended March 31, 2021 and $1,038 for the fiscal year ended March 31, 2020. The services for which these fees were paid included review of materials provided to the fund Board in connection with the investment management contract renewal process.

The aggregate fees paid to the principal accountant for products and services rendered by the principal accountant to the registrant’s investment adviser and any entity controlling, controlled by or under common control with the investment adviser that provides ongoing services to the registrant not reported in paragraphs (a)-(c) of Item 4 were $31,861 for the fiscal year ended March 31, 2021 and $208,155 for the fiscal year ended March 31, 2020. The services for which these fees

were paid included compliance examination for Investment Advisor Act rule 204-2 and 206(4)-2, the issuance of an Auditor’s Certificate for South Korean regulatory shareholders disclosures, and assets under management certification.

(e) (1) The registrant’s audit committee is directly responsible for approving the services to be provided by the auditors, including:

(i) pre-approval of all audit and audit related services;

(ii) pre-approval of all non-audit related services to be provided to the Fund by the auditors;

(iii) pre-approval of all non-audit related services to be provided to the registrant by the auditors to the registrant’s investment adviser or to any entity that controls, is controlled by or is under common control with the registrant’s investment adviser and that provides ongoing services to the registrant where the non-audit services relate directly to the operations or financial reporting of the registrant; and

(iv) establishment by the audit committee, if deemed necessary or appropriate, as an alternative to committee pre-approval of services to be provided by the auditors, as required by paragraphs (ii) and (iii) above, of policies and procedures to permit such services to be pre-approved by other means, such as through establishment of guidelines or by action of a designated member or members of the committee; provided the policies and procedures are detailed as to the particular service and the committee is informed of each service and such policies and procedures do not include delegation of audit committee responsibilities, as contemplated under the Securities Exchange Act of 1934, to management; subject, in the case of (ii) through (iv), to any waivers, exceptions or exemptions that may be available under applicable law or rules.

(e) (2) None of the services provided to the registrant described in paragraphs (b)-(d) of Item 4 were approved by the audit committee pursuant to paragraph (c)(7)(i)(C) of Rule 2-01 of regulation S-X.

(f) No disclosures are required by this Item 4(f).

(g) The aggregate non-audit fees paid to the principal accountant for services rendered by the principal accountant to the registrant and the registrant’s investment adviser and any entity controlling, controlled by or under common control with the investment adviser that provides ongoing services to the registrant were $202,080 for the fiscal year ended March 31, 2021 and $441,544 for the fiscal year ended March 31, 2020.

(h) The registrant’s audit committee of the board has considered whether the provision of non-audit services that were rendered to the registrant’s investment adviser (not including any sub-adviser whose role is primarily portfolio management and is subcontracted with or overseen by another investment adviser), and any entity controlling, controlled by, or under common control with the investment adviser that provides ongoing services to the registrant that were not pre-approved

pursuant to paragraph (c)(7)(ii) of Rule 2-01 of Regulation S-X is compatible with maintaining the principal accountant’s independence.

Item 5.

Audit Committee of Listed Registrants. N/A

Item 6.

Schedule of Investments. N/A

Item 7.

Disclosure of Proxy Voting Policies and Procedures for Closed-End Management Investment Companies. N/A

Item 8.

Portfolio Managers of Closed-End Management Investment Companies. N/A

Item 9.

Purchases of Equity Securities by Closed-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 on Form 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 May 26, 2021

Pursuant to the requirements of the Securities Exchange Act of 1934 and the Investment Company Act of 1940, this report has been signed below by the following persons on behalf of the registrant and in the capacities and on the dates indicated.


By		/s/ Matthew T. Hinkle
		Matthew T. Hinkle
Chief Executive Officer – Finance and Administration Date May 26, 2021


By		/s/ Vivek Pai
		Vivek Pai
Chief Financial Officer and Chief Accounting Officer Date May 26, 2021

Annual Report
Franklin Templeton ETF Trust

Investment Manager

Distributor

Investor Services

Franklin Advisory Services, LLC

Franklin Templeton Distributors, Inc.
(800) DIAL BEN^®/342-5236
franklintempleton.com

Transfer Agent
State Street Bank and
Trust Company
1 Heritage Drive
Mail Stop OHD0100
North Quincy, MA 02171

© 2021 Franklin Templeton Investments. All rights reserved.

ETF A 05/21