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, D.C. 20549

FORM N-CSR

CERTIFIED SHAREHOLDER REPORT OF REGISTERED

MANAGEMENT INVESTMENT COMPANIES

Investment Company Act file number 811-23124

Franklin Templeton ETF Trust

(Exact name of registrant as specified in charter)

One Franklin Parkway

San Mateo, CA 94403-1906

(Address of principal executive offices) (Zip code)

Alison Baur

One Franklin Parkway

San Mateo, CA 94403-1096

(Name and address of agent for service)

Registrant’s telephone number, including area code: 650-312-2000

Date of fiscal year end: March 31

Date of reporting period: 03/31/2023

Item 1.

Reports to Stockholders.

(a)

The following is a copy of the report transmitted to shareholders pursuant to Rule30e-1 under the Investment Company Act of 1940, as amended (the “1940 Act”) (17 CFR 270.30e-1.)

(b)

Not applicable.

LOGO

Franklin Emerging Market Core Dividend Tilt Index ETF

Formerly, Franklin LibertyQ Emerging Markets ETF

Franklin International Core Dividend Tilt Index ETF

Formerly, Franklin LibertyQ International Equity Hedged ETF

Franklin U.S. Core Dividend Tilt Index ETF

Formerly, Franklin LibertyQ Global Dividend ETF

Franklin U.S. Large Cap Multifactor Index ETF

Formerly, Franklin LibertyQ U.S. Equity ETF

Franklin U.S. Mid Cap Multifactor Index ETF

Formerly, Franklin LibertyQ U.S. Mid Cap Equity ETF

Franklin U.S. Small Cap Multifactor Index ETF

Formerly, Franklin LibertyQ U.S. Small Cap Equity ETF



Contents

Annual Report

Economic and Market Overview			2
Franklin Emerging Market Core Dividend Tilt Index ETF			3
Franklin International Core Dividend Tilt Index ETF			10
Franklin U.S. Core Dividend Tilt Index ETF			17
Franklin U.S. Large Cap Multifactor Index ETF			24
Franklin U.S. Mid Cap Multifactor Index ETF			30
Franklin U.S. Small Cap Multifactor Index ETF			36
Financial Highlights and Schedules of Investments			42
Financial Statements			98
Notes to Financial Statements			105
Report of Independent Registered Public Accounting Firm			121
Tax Information			122
Board Members and Officers			123
Shareholder Information			126

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 tax withholding when dividends are paid), posted a -7.44% total return for the 12 months ended March 31, 2023.1 Inflation increased substantially in most parts of the world and remained elevated despite some signs of slowing in the second half of the period. This inflationary pressure led many of the world’s central banks to tighten monetary policy, which pressured stocks and negatively impacted the outlook for economic growth. Russia’s ongoing invasion of Ukraine and related disruptions to the global economy also increased investor uncertainty and led to substantial volatility in commodity markets. In China, COVID-19-related lockdowns sharply restricted economic activity prior to the government easing controls in December 2022.

U.S. equities, as measured by the Standard & Poor’s^® 500 Index, posted a -7.73% total return for the 12 months ended March 31, 2023.1 High inflation, rising interest rates and geopolitical instability contributed to a sharp decline in equity prices. Consumer spending continued to rise, but deteriorating financial conditions and investors’ expectations for slower growth pressured equity markets. U.S. gross domestic product (GDP) recovered from a slight contraction during the first half of the year, expanding in the second half of 2022 amid rising government spending and private investment. The labor market remained strong, as hiring continued at a brisk pace and unemployment reached its lowest level in over 50 years. In an effort to control inflation, the U.S. Federal Reserve (Fed) raised the federal funds target rate at each of its eight meetings during the period to end at a range of 4.75%–5.00%, a full 450 basis points higher than at the beginning of the period. Furthermore, the Fed indicated it would continue to reduce its U.S. Treasury and agency debt and mortgage-backed security holdings.

tailwind for European stocks. The European Central Bank increased interest rates in July 2022 for the first time in 11 years to curtail growing inflation and further raised rates in five subsequent meetings. In this environment, European developed market equities, as measured by the MSCI Europe Index-NR, posted a +1.38% total return for the 12 months under review.¹

Asian developed and emerging market equities, as measured by the MSCI All Country Asia Index-NR, posted a -7.61% total return for the 12-month period.¹ Economic activity in Japan remained slow, alternating between positive quarterly GDP growth and contraction before stalling in 2022’s fourth quarter with zero growth. On an annual basis, China’s economic growth slowed, hindered by investor concerns about the solvency of several large property developers and a period of strict COVID-19 lockdowns.

Global emerging market stocks, as measured by the MSCI Emerging Markets Index-NR, posted a -10.70% total return for the 12 months under review.¹ Central bank tightening, the threat of recession, and a U.S. dollar that strengthened relative to many emerging market currencies contributed to the downturn. While most of the commodity price increases related to the war in Ukraine moderated by period-end, this volatility disrupted some emerging market economies that are dependent on energy and food imports.

The foregoing information reflects our analysis and opinions as of March 31, 2023. The information is not a complete analysis of every aspect of any market, country, industry, security or fund. Statements of fact are from sources considered reliable.

1. Source: Morningstar.

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



2	Annual Report	franklintempleton.com

Franklin Emerging Market Core Dividend Tilt Index ETF

Formerly, Franklin LibertyQ Emerging Markets ETF

This annual report for Franklin Emerging Market Core Dividend Tilt Index ETF covers the fiscal year ended March 31, 2023. Effective August 1, 2022, Franklin LibertyQ Emerging Markets ETF changed its name to Franklin Emerging Market Core Dividend Tilt Index ETF. The Fund also changed its ticker symbol, underlying index, investment universe, investment goal and strategy, distribution frequency and reduced its unified management fee.

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 Morningstar^® Emerging Markets Dividend Enhanced Select Index^SM (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 is based on the Morningstar^® Emerging Markets Target Market Exposure Index (the Parent Index), and is constructed by applying an optimization process to the Parent Index that aims to deliver a higher dividend yield than the Parent Index, while limiting expected tracking error to the Parent Index (i.e., to provide a “dividend tilt” through the selection and weighting of securities from the Parent Index). The Parent Index includes large- and mid-capitalization stocks representing the top 85% of emerging markets equity markets by float-adjusted market capitalization (“float-adjusted” means that only shares that are estimated to be publicly available to investors are included in the calculation of market capitalization).


Geographic Composition*

3/31/23

	% of Total Net Assets

Asia		74.7%

Latin America & Caribbean		10.8%

Middle East & Africa		10.1%

North America		2.3%

Europe		1.6%

Other Net Assets		0.5%

*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.

Performance Overview

During the 12-month period, the Fund posted cumulative total returns of -9.50% based on market price and -10.36% based on net asset value (NAV).

On August 1, 2022, the Fund changed its underlying index from the LibertyQ Emerging Markets Index-NR to the Morningstar^® Emerging Markets Dividend Enhanced Select Index^SM, which commenced calculation and publication on June 17, 2022. For the period from June 17, 2022, through March 31, 2023, the new Underlying Index posted a cumulative total return of -0.31%.² For the 12-month period under review, the Linked Morningstar^® Emerging Markets Dividend Enhanced Select Index-NR, which measures the performance of the old underlying index through July 31, 2022, followed by the performance of the new Underlying Index, posted a -9.96% cumulative total return.²

The Parent Index posted a cumulative total return of -10.09% for the 12-month period.² The Linked Morningstar^® Emerging Markets Target Market Exposure Index-NR, which measures the performance of the old primary benchmark, the MSCI Emerging Markets (EM) Index-NR, through July 31, 2022, followed by the performance of the Parent Index, posted a -10.40% cumulative total return for the same period.² The MSCI EM Index-NR posted a -10.70% cumulative total return for the 12-month period.³ The

1. The Morningstar^® Emerging Markets Dividend Enhanced Select Index^SM is a systematic, rules-based proprietary index that is maintained and calculated by Morningstar, Inc.

2. Source: FactSet.

3. Source: Morningstar.

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 Schedule of Investments (SOI). The SOI begins on page 43.



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FRANKLIN EMERGING MARKET CORE DIVIDEND TILT INDEX ETF

Underlying Index replaced the MSCI EM Index-NR as the Fund’s primary benchmark effective August 1, 2022, to more accurately reflect the Fund’s new investment strategy.

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.


Top 10 Sectors/Industries

3/31/23

	% of Total Net Assets

Banks		19.4%

Semiconductors & Semiconductor Equipment		9.3%

Oil, Gas & Consumable Fuels		6.8%

Technology Hardware, Storage & Peripherals		6.2%

Chemicals		4.6%

Insurance		4.6%

Interactive Media & Services		4.5%

Metals & Mining		4.0%

Internet & Direct Marketing Retail		3.0%

IT Services		2.7%

Investment Strategy

The Fund, using a passive or indexing investment approach, seeks investment results that closely correspond, before fees and expenses, to the performance of the Underlying Index. The Fund may use either a replication strategy or representative sampling strategy. The Fund’s portfolio is generally reconstituted quarterly following the quarterly reconstitution of the Underlying Index.

The Fund may invest in equity futures and equity total return swaps and enter into foreign currency forward contracts and/or currency futures contracts to provide the Fund with additional opportunities to add value and better track the performance of the Fund’s Underlying Index.


Top 10 Holdings

3/31/23

Company *Sector/Industry, Country*	% of Total Net Assets

Taiwan Semiconductor Manufacturing Co. Ltd. Semiconductors & Semiconductor Equipment, Taiwan		4.7%

Tencent Holdings Ltd. Interactive Media & Services, China		3.7%

Samsung Electronics Co. Ltd. Technology Hardware, Storage & Peripherals, South Korea		3.6%

Alibaba Group Holding Ltd., Class A Internet & Direct Marketing Retail, China		2.6%

Infosys Ltd. IT Services, India		1.4%

China Construction Bank Corp., Class H Banks, China		1.4%

MediaTek, Inc. Semiconductors & Semiconductor Equipment, Taiwan		1.1%

Ping An Insurance Group Co. of China Ltd., Class H Insurance, China		1.1%

Petroleo Brasileiro SA, 43.945%, pfd. Oil, Gas & Consumable Fuels, Brazil		1.1%

Industrial & Commercial Bank of China Ltd., Class H Banks, China		1.0%


Top 10 Countries

3/31/23

	% of Total Net Assets

China		30.0%

Taiwan		19.2%

India		10.2%

South Korea		9.2%

Brazil		5.2%

South Africa		5.0%

Saudi Arabia		3.9%

Malaysia		3.4%

Mexico		2.5%

Hong Kong		2.2%



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FRANKLIN EMERGING MARKET CORE DIVIDEND TILT INDEX ETF

Manager’s Discussion

For the fiscal year ended March 31, 2023, individual holdings that hindered the Fund’s absolute return included Sibanye Stillwater, Emirates Telecommunications Group and Infosys. Individual holdings that lifted the Fund’s absolute return included Tencent Holdings, Grupo Financiero Banorte and ITC.

Prior to August 1, 2022, the Fund’s research-based selection process focused on four investment factors: value, quality, momentum and low volatility. Since then, the Fund has followed a dividend-enhanced strategy focused on emerging markets. Of the four target-style factors, low volatility contributed to the Fund’s relative performance for the reporting period and momentum contributed marginally, while value and quality detracted.

As of July 20, 2022, the Franklin Emerging Market Core Dividend Tilt Index ETF held Russian securities that were fair valued at zero. While Russian securities were removed from the Fund’s former underlying index and Russian securities are not included in the Fund’s new Underlying Index, as of July 20, 2022, the Fund has not been able to dispose of all such securities due to ongoing issues related to Russia’s invasion of Ukraine. The Fund will continue to monitor Russian related developments and will seek to dispose of such securities as soon as it is practicable.

Thank you for your participation in Franklin Emerging Market Core Dividend Tilt Index ETF. We look forward to serving your future investment needs.

Dina Ting, CFA

Hailey Harris

Joe Diederich

Basit Amin, CFA

Portfolio Management Team

The foregoing information reflects our analysis, opinions and portfolio holdings as of March 31, 2023, 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 EMERGING MARKET CORE DIVIDEND TILT INDEX ETF

Performance Summary as of March 31, 2023

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. Market Price returns typically are based upon the official closing price of the ETF’s shares. 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 3/31/23^1,2

Cumulative Total Return³

Average Annual Total Return³

Based on

NAV⁴

Based on

market price⁵

Based on

NAV⁴

Based on

market price⁵

1-Year

-10.36%

-9.50%

-10.36%

-9.50%

3-Year

+22.41%

+23.30%

+6.97%

+7.23%

5-Year

-10.05%

-11.44%

-2.10%

-2.40%

Since Inception (6/1/16)

+20.51%

+20.23%

+2.77%

+2.73%

See page 8 for Performance Summary footnotes.



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FRANKLIN EMERGING MARKET CORE DIVIDEND TILT INDEX 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 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.

6/1/16-3/31/23

LOGO

See page 8 for Performance Summary footnotes.



franklintempleton.com	Annual Report	7

FRANKLIN EMERGING MARKET CORE DIVIDEND TILT INDEX ETF

PERFORMANCE SUMMARY

Distributions (4/1/22–3/31/23)

Net Investment

Income

$1.419857

Total Annual Operating Expenses⁷

0.19%

To the extent that the Fund has exposure to Russian investments or investments in countries affected by the invasion, the Fund’s ability to price, buy, sell, receive or deliver such investments may be impaired. The Fund could determine at any time that certain of the most affected securities have zero value. In addition, any exposure that the Fund may have to counterparties in Russia or in countries affected by the invasion could negatively impact the Fund’s portfolio. The extent and duration of Russia’s military actions and the repercussions of such actions (including any retaliatory actions or countermeasures that may be taken by those subject to sanctions) are impossible to predict, but could result in significant market disruptions, including in the oil and natural gas markets, and may negatively affect global supply chains, inflation and global growth. These and any related events could significantly impact the Fund’s performance and the value of an investment in the Fund, even beyond any direct exposure the Fund may have to Russian issuers or issuers in other countries affected by the invasion.

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 total annual operating expenses are as of the Fund’s prospectus available at the time of publication. Actual expenses may be higher and may impact portfolio returns.

2. 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, 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.

3. 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.

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

5. Assumes reinvestment of distributions based on market price.

6. Source: FactSet. The Linked Morningstar^® Emerging Markets Dividend Enhanced Select Index-NR measures the performance of the LibertyQ EM Index-NR from Fund inception through July 31, 2022, and the Morningstar^® Emerging Markets Dividend Enhanced Select Index^SM thereafter. The LibertyQ EM Index is a systematic, rules-based proprietary index that is owned and calculated by MSCI Inc. It is based on the MSCI EM Index using a methodology developed with Franklin Templeton to reflect Franklin Templeton’s desired investment strategy. The Morningstar^® Emerging Markets Dividend Enhanced Select Index^SM is a systematic, rules-based proprietary index that is maintained and calculated by Morningstar, Inc. It is based on the Morningstar^® Emerging Markets Target Market Exposure Index (Parent Index) and is constructed by applying an optimization process to the Parent Index that aims to deliver a higher dividend yield than the Parent Index, while limiting expected tracking error to the Parent Index. The Morningstar^® Emerging Markets Target Market Exposure Index-NR includes large- and mid-capitalization stocks representing the top 85% of emerging markets equity markets by float-adjusted market capitalization. The Linked Morningstar Emerging Markets Target Market Exposure Index-NR reflects the performance of the MSCI EM Index-NR from Fund inception through July 31, 2022, and Morningstar^® Emerging Markets Target Market Exposure Index-NR thereafter. The MSCI EM Index-NR is a free float-adjusted, market capitalization-weighted index designed to measure the equity market performance of global emerging markets. Net Returns (NR) include income net of tax withholding when dividends are paid.

7. Management fees have been restated to reflect current fiscal year fees as a result of a decrease in the Fund’s contractual management fee rate effective August 1, 2022. If the management fees were not restated to reflect such decrease in fees, the amounts shown above would be greater. Consequently, the Fund’s total annual Fund operating expenses differ from the ratio of expenses to average net assets shown in the Financial Highlights.

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



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FRANKLIN EMERGING MARKET CORE DIVIDEND TILT INDEX ETF

Your Fund’s Expenses

Actual Fund Expenses

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

Hypothetical Example for Comparison with Other Funds

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

Please note that expenses shown in the table are meant to highlight ongoing costs and do not reflect any transactional costs. Therefore, information under the heading “Hypothetical” is useful in comparing ongoing costs only, and will not help you compare total costs of owning different 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 10/1/22		Ending Account Value 3/31/23		Expenses Paid During Period 10/1/22–3/31/23^1,2		Ending Account Value 3/31/23		Expenses Paid During Period 10/1/22–3/31/23¹		Net Annualized Expense Ratio
	$1,000.00		$1,175.10		$1.03		$1,023.98		$0.96		0.19	%

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	9

Franklin International Core Dividend Tilt Index ETF

Formerly, Franklin LibertyQ International Equity Hedged ETF

This annual report for Franklin International Core Dividend Tilt Index ETF covers the fiscal year ended March 31, 2023. Effective August 1, 2022, Franklin LibertyQ International Equity Hedged ETF changed its name to Franklin International Core Dividend Tilt Index ETF. The Fund also changed its ticker symbol, underlying index, investment universe, distribution frequency, investment goal and strategy and reduced its unified management fee.

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 Morningstar^® Developed Markets ex-North America Dividend Enhanced Select Index^SM (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 is based on the Morningstar^® Developed Markets ex-North America Target Market Exposure Index (the Parent Index) and is constructed by applying an optimization process to the Parent Index that aims to deliver a higher dividend yield than the Parent Index, while limiting expected tracking error to the Parent Index (i.e., to provide a “dividend tilt” through the selection and weighting of securities from the Parent Index). The Parent Index includes large- and mid-capitalization stocks representing the top 85% of developed markets equity markets excluding North America by float-adjusted market capitalization (“float-adjusted” means that only shares that are estimated to be publicly available to investors are included in the calculation of market capitalization).


Geographic Composition*

3/31/23

	% of Total Net Assets

Europe		61.5%

Asia		25.8%

Australia & New Zealand		10.9%

North America		0.7%

Middle East & Africa		0.4%

Other Net Assets		0.7%

* 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.

Performance Overview

During the 12-month period, the Fund posted cumulative total returns of +7.65% based on market price and +6.56% based on net asset value (NAV).

On August 1, 2022, the Fund changed its underlying index from the LibertyQ International Equity Hedged Index-NR to the Morningstar^® Developed Markets ex-North America Dividend Enhanced Select Index^SM, which commenced calculation and publication on June 17, 2022. For the period from June 17, 2022, through March 31, 2023, the new Underlying Index posted a cumulative total return of +15.66%.² For the 12-month period under review, the Linked Morningstar^® Developed Markets ex-North America Dividend Enhanced Select Index-NR, which measures the performance of the old underlying index through July 31, 2022, followed by the performance of the new Underlying Index, posted a +6.82% cumulative total return.²

The Parent Index posted a cumulative total return of -1.62% for the 12-month period.² The Linked Morningstar^® Developed Markets ex-North America Target Market Exposure Index-NR, which measures the performance of the old primary benchmark, the MSCI Europe, Australasia and the Far East (EAFE) 100% Hedged to USD Index-NR, through July 31, 2022, followed by the performance of the Parent Index, posted a +7.02% cumulative total return for the

1. The Morningstar^® Developed Markets ex-North America Dividend Enhanced Select Index^SM is a systematic, rules-based proprietary index that is maintained and calculated by Morningstar, Inc.

2. Source: FactSet.

3. 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 Schedule of Investments (SOI). The SOI begins on page 56.



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FRANKLIN INTERNATIONAL CORE DIVIDEND TILT INDEX ETF

same period.² The MSCI EAFE 100% Hedged to USD Index-NR posted a +7.02% cumulative total return for the 12-month period.³ The Underlying Index replaced the MSCI EAFE 100% Hedged to USD Index-NR as the Fund’s primary benchmark to more accurately reflect the Fund’s new investment strategy.

You can find more of the Fund’s performance data in the Performance Summary beginning on page 13.


Top 10 Sectors/Industries

3/31/23

	% of Total Net Assets

Pharmaceuticals		10.4%

Banks		9.9%

Insurance		6.4%

Metals & Mining		5.2%

Semiconductors & Semiconductor Equipment		4.3%

Automobiles		4.1%

Oil, Gas & Consumable Fuels		3.9%

Textiles, Apparel & Luxury Goods		3.3%

Electric Utilities		3.1%

Diversified Telecommunication Services		2.9%

Investment Strategy


Top 10 Holdings

3/31/23

Company *Sector/Industry, Country*	% of Total Net Assets

Nestle SA Food Products, Switzerland		2.0%

ASML Holding NV Semiconductors & Semiconductor Equipment, Netherlands		1.8%

Novartis AG Pharmaceuticals, Switzerland		1.8%

Novo Nordisk AS, Class B Pharmaceuticals, Denmark		1.7%

LVMH Moet Hennessy Louis Vuitton SE Textiles, Apparel & Luxury Goods, France		1.5%

BHP Group Ltd. Metals & Mining, Australia		1.5%

AstraZeneca PLC Pharmaceuticals, United Kingdom		1.4%

Roche Holding AG Pharmaceuticals, Switzerland		1.4%

Sanofi Pharmaceuticals, France		1.1%

Allianz SE Insurance, Germany		1.0%


Top 10 Countries

3/31/23

	% of Total Net Assets

Japan		21.3%

United Kingdom		12.6%

Australia		10.7%

Switzerland		9.9%

France		9.6%

Germany		8.5%

Netherlands		5.1%

Italy		3.9%

Hong Kong		2.8%

Sweden		2.5%



franklintempleton.com	Annual Report	11

FRANKLIN INTERNATIONAL CORE DIVIDEND TILT INDEX ETF

Manager’s Discussion

For the fiscal year ended March 31, 2023, individual holdings that lifted the Fund’s absolute return included Novo Nordisk, LVMH Moet Hennessy Louis Vuitton and Siemens. Individual holdings that hindered the Fund’s absolute return included Anglo American, Rio Tinto and Roche Holding. 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 contributed to the Fund’s absolute performance. However, one cannot expect the same result in future periods.

Prior to August 1, 2022, the Fund’s research-based selection process focused on four investment factors: value, quality, momentum and low volatility. Since then, the Fund has followed a dividend-enhanced strategy focused on developed markets, excluding North America. Of the four target-style factors, value contributed to the Fund’s relative performance for the reporting period, with modest contribution from the momentum factor. Conversely, the quality and low volatility factors detracted from the Fund’s relative return.

Thank you for your participation in Franklin International Core Dividend Tilt Index ETF. We look forward to serving your future investment needs.

Dina Ting, CFA

Hailey Harris

Joe Diederich

Basit Amin, CFA

Portfolio Management Team



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FRANKLIN INTERNATIONAL CORE DIVIDEND TILT INDEX ETF

Performance Summary as of March 31, 2023

Performance as of 3/31/23^1,2

Cumulative Total Return³

Average Annual Total Return³

Based on
NAV⁴

Based on
market price⁵

Based on
NAV⁴

Based on
market price⁵

1-Year

+6.56%

+7.65%

+6.56%

+7.65%

3-Year

+51.04%

+52.23%

+14.73%

+15.04%

5-Year

+51.06%

+51.36%

+8.60%

+8.64%

Since Inception (6/1/16)

+69.07%

+69.94%

+7.99%

+8.07%

See page 15 for Performance Summary footnotes.



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FRANKLIN INTERNATIONAL CORE DIVIDEND TILT INDEX ETF

PERFORMANCE SUMMARY

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

6/1/16-3/31/23

LOGO

See page 15 for Performance Summary footnotes.



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PERFORMANCE SUMMARY

Distributions (4/1/22–3/31/23)



Net Investment Income	Short-Term Capital Gain		Long-Term Capital Gain		Total
$1.186654		$0.159987		$0.306751		$1.653392

Total Annual Operating Expenses⁷

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. The total annual operating expenses are as of the Fund’s prospectus available at the time of publication. Actual expenses may be higher and may impact portfolio returns.

3. 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.

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

5. Assumes reinvestment of distributions based on market price.

6. Source: FactSet. The Linked Morningstar^® Developed Markets ex-North America Dividend Enhanced Select Index-NR measures the performance of the LibertyQ International Equity Hedged Index-NR from fund inception through July 31, 2022, and the Morningstar^® Developed Markets ex-North America Dividend Enhanced Select IndexSM thereafter. The LibertyQ International Equity Hedged Index is a systematic, rules-based proprietary index that is owned and calculated by MSCI Inc. It is based on the MSCI EAFE Index using a methodology developed with Franklin Templeton to reflect Franklin Templeton’s desired investment strategy. The Morningstar^®Developed Markets ex-North America Dividend Enhanced Select IndexSM is a systematic, rules-based proprietary index that is maintained and calculated by Morningstar, Inc. It is based on the Morningstar^® Developed Markets ex-North America Target Market Exposure Index (Parent Index) and is constructed by applying an optimization process to the Parent Index that aims to deliver a higher dividend yield than the Parent Index, while limiting expected tracking error to the Parent Index. The Morningstar^® Developed Markets ex-North America Target Market Exposure Index-NR includes large- and mid-capitalization stocks representing the top 85% of developed markets equity markets excluding North America by float-adjusted market capitalization. The Linked Morningstar^® Developed Markets ex-North America Target Market Exposure Index-NR measures the performance of the MSCI EAFE 100% Hedged to USD Index-NR through July 31, 2022, and the Morningstar^® Developed Markets ex-North America Target Market Exposure Index-NR thereafter. The MSCI EAFE 100% Hedged to USD Index-NR represents a close estimation of the performance that can be achieved by hedging the currency exposures of its parent index, the MSCI EAFE Index, to the USD, the “home” currency for the hedged index. The MSCI EAFE Index is a free float-adjusted, market capitalization-weighted index designed to measure the equity market performance of global developed markets excluding the U.S. and Canada. Net Returns (NR) include income net of tax withholding when dividends are paid.

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



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FRANKLIN INTERNATIONAL CORE DIVIDEND TILT INDEX 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 10/1/22		Ending Account Value 3/31/23		Expenses Paid During Period 10/1/22–3/31/23^1,2		Ending Account Value 3/31/23		Expenses Paid During Period 10/1/22–3/31/23¹		Net Annualized Expense Ratio

	$1,000.00		$1,280.50		$0.51		$1,024.48		$0.45		0.09	%

2. Reflects expenses after fee waivers and expense reimbursements.



16	Annual Report	franklintempleton.com

Franklin U.S. Core Dividend Tilt Index ETF

Formerly, Franklin LibertyQ Global Dividend ETF

This annual report for Franklin U.S. Core Dividend Tilt Index ETF covers the fiscal year ended March 31, 2023. Effective August 1, 2022, Franklin LibertyQ Global Dividend ETF changed its name to Franklin U.S. Core Dividend Tilt Index ETF. The Fund also changed its ticker, underlying index, investment universe, investment goal and strategy and reduced its unified management fee.

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 Morningstar^® US Dividend Enhanced Select Index^SM(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 is based on the Morningstar^® US Target Market Exposure Index (the Parent Index) and is constructed by applying an optimization process to the Parent Index that aims to deliver a higher dividend yield than the Parent Index, while limiting expected tracking error to the Parent Index (i.e., to provide a “dividend tilt” through the selection and weighting of securities from the Parent Index). The Parent Index includes large- and mid-capitalization stocks representing the top 85% of the U.S. equity market by float-adjusted market capitalization (“float-adjusted” means that only shares that are estimated to be publicly available to investors are included in the calculation of market capitalization).


Geographic Composition*

3/31/23

	% of Total Net Assets

North America		97.6%

Europe		1.7%

Latin America & Caribbean		0.4%

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.

Performance Overview

During the 12-month period, the Fund posted cumulative total returns of -8.00% based on market price and -8.09% based on net asset value (NAV).

On August 1, 2022, the Fund changed its underlying index from the LibertyQ Global Dividend Index to the Morningstar^® US Dividend Enhanced Select Index^SM, which commenced calculation and publication on June 17, 2022. For the period from June 17, 2022, through March 31, 2023, the new Underlying Index posted a cumulative total return of +11.60%.² For the 12-month period under review, the Linked Morningstar^® US Dividend Enhanced Select Index, which measures the performance of the old underlying index through July 31, 2022, followed by the performance of the new Underlying Index, posted a -7.98% cumulative total return.²

The Parent Index posted a cumulative total return of -8.53% for the 12-month period.²The Linked Morningstar^® The Linked Morningstar^® US Target Market Exposure Index, which measures the performance of the old primary benchmark, the MSCI All Country World Index (ACWI) ex REITs Index-NR, through July 31, 2022, followed by the performance of the Parent Index, posted a -9.24% cumulative total return for the same period.² The MSCI ACWI ex REITs Index-NR posted a -7.16% cumulative total return for the 12-month period.² The Underlying Index replaced the MSCI ACWI ex REITS Index-NR as the Fund’s primary benchmark to more accurately reflect the Fund’s new investment strategy.

You can find more of the Fund’s performance data in the Performance Summary beginning on page 20.

1. The Morningstar^® US Dividend Enhanced Select IndexSM is a systematic, rules-based proprietary index that is maintained and calculated by Morningstar, Inc.

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 Schedule of Investments (SOI). The SOI begins on page 69.



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FRANKLIN U.S. CORE DIVIDEND TILT INDEX ETF


Top 10 Sectors/Industries

3/31/23

	% of Total Net Assets

Semiconductors & Semiconductor Equipment		9.5%

Software		9.3%

Technology Hardware, Storage & Peripherals		7.3%

Pharmaceuticals		5.5%

Oil, Gas & Consumable Fuels		5.4%

Diversified REITs		4.9%

Banks		4.8%

Capital Markets		4.0%

Interactive Media & Services		3.9%

IT Services		3.7%

Investment Strategy

The Fund may invest in equity futures and equity total return swaps to provide additional opportunities to add value and better track the performance of the Fund’s Underlying Index.


Top 10 Holdings

3/31/23

Company *Sector/Industry*	% of Total Net Assets
Apple, Inc. Information Technology		6.5%
Microsoft Corp. Information Technology		6.0%
Amazon.com, Inc. Consumer Discretionary		2.5%
NVIDIA Corp. Information Technology		1.9%
Tesla, Inc. Consumer Discretionary		1.8%
Exxon Mobil Corp. Energy		1.7%
Johnson & Johnson Health Care		1.5%
Alphabet, Inc., Class A Communication Services		1.4%
AbbVie, Inc. Health Care		1.3%
JPMorgan Chase & Co. Financials		1.3%

Manager’s Discussion

For the fiscal year ended March 31, 2023, individual holdings that hindered the Fund’s absolute return included Rio Tinto, Amazon.com and Tesla. Individual holdings that lifted the Fund’s absolute return included NVIDIA, Merck and Gilead Sciences.

Prior to August 1, 2022, the Fund’s research-based selection process focused on stocks with exposure to a quality investment style factor. Since then, the Fund has followed a dividend-enhanced strategy focused on the U.S. market. The quality factor had no significant impact on the Fund’s relative performance for the reporting period. Other factors, to which the Fund does not actively seek exposure, had a larger effect on relative performance than quality. The value and momentum factors contributed to the Fund’s relative return, with modest contribution from the low volatility factor.

As of July 20, 2022, the Franklin U.S. Core Dividend Tilt Index ETF held Russian securities that were fair valued at zero. While Russian securities were removed from the Fund’s former underlying index and Russian securities are not included in the Fund’s new Underlying Index, as of July 20, 2022, the Fund has not been able to dispose of all such securities due to ongoing issues related to Russia’s invasion of Ukraine. The Fund will continue to monitor



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FRANKLIN U.S. CORE DIVIDEND TILT INDEX ETF

Russian related developments and will seek to dispose of such securities as soon as it is practicable.

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

Dina Ting, CFA

Hailey Harris

Joe Diederich

Basit Amin, CFA

Portfolio Management Team



franklintempleton.com	Annual Report	19

FRANKLIN U.S. CORE DIVIDEND TILT INDEX ETF

Performance Summary as of March 31, 2023

Performance as of 3/31/23^1,2

Cumulative Total Return³

Average Annual Total Return³

Based on
NAV⁴

Based on

market price⁵

Based on
NAV⁴

Based on
market price⁵

1-Year

-8.09%

-8.00%

-8.09%

-8.00%

3-Year

+51.72%

+51.54%

+14.91%

+14.86%

5-Year

+34.52%

+33.62%

+6.11%

+5.97%

Since Inception (6/1/16)

+57.91%

+57.77%

+6.92%

+6.90%


Distribution Rate⁶			30-Day Standardized Yield⁷

3.10%			2.45%

See page 22 for Performance Summary footnotes.



20	Annual Report	franklintempleton.com

FRANKLIN U.S. CORE DIVIDEND TILT INDEX ETF

PERFORMANCE SUMMARY

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

6/1/16-3/31/23

LOGO

See page 22 for Performance Summary footnotes.



franklintempleton.com	Annual Report	21

FRANKLIN U.S. CORE DIVIDEND TILT INDEX ETF

PERFORMANCE SUMMARY

Distributions (4/1/22–3/31/23)

Net Investment

Income

$1.000782

Total Annual Operating Expenses⁹

0.06%

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 total annual operating expenses are as of the Fund’s prospectus available at the time of publication. Actual expenses may be higher and may impact portfolio returns.

3. 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.

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

5. Assumes reinvestment of distributions based on market price.

6. Distribution rate is based on an annualization of the March dividend and the NAV per share on 3/31/23.

7. 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.

8. Source: FactSet. The Linked Morningstar^® US Dividend Enhanced Select Index, measures the performance of the LibertyQ Global Dividend Index from Fund inception through July 31, 2022, and the Morningstar^® US Dividend Enhanced Select IndexSM thereafter. The LibertyQ Global Dividend Index is a systematic, rules-based proprietary index that is owned and calculated by MSCI Inc. 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 Morningstar^® US Dividend Enhanced Select IndexSM is a systematic, rules-based proprietary index that is maintained and calculated by Morningstar, Inc. It is based on the Morningstar^® US Target Market Exposure Index (Parent Index) and is constructed by applying an optimization process to the Parent Index that aims to deliver a higher dividend yield than the Parent Index, while limiting expected tracking error to the Parent Index. The Morningstar^® US Target Market Exposure Index includes large- and mid-capitalization stocks representing the top 85% of the U.S. equity market by float-adjusted market capitalization. The Linked Morningstar^® US Target Market Exposure Index measures the performance of the MSCI ACWI ex REITs Index-NR from Fund inception through July 31, 2022, and the Morningstar^® US Target Market Exposure Index thereafter. The MSCI ACWI ex REITs Index-NR is a free float-adjusted, market capitalization-weighted index designed to measure the equity market performance of developed and emerging markets, excluding REIT securities. Net Returns (NR) include income net of tax withholding when dividends are paid.

9. Management fees have been restated to reflect current fiscal year fees as a result of a decrease in the Fund’s contractual management fee rate effective August 1, 2022. If the management fees were not restated to reflect such decrease in fees, the amounts shown above would be greater. Consequently, the Fund’s total annual Fund operating expenses differ from the ratio of expenses to average net assets shown in the Financial Highlights.

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



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FRANKLIN U.S. CORE DIVIDEND TILT INDEX ETF

Your Fund’s Expenses

Actual Fund Expenses

Hypothetical Example for Comparison with Other Funds


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

Beginning Account Value 10/1/22		Ending Account Value 3/31/23		Expenses Paid During Period 10/1/22–3/31/23^1,2		Ending Account Value 3/31/23		Expenses Paid During Period 10/1/22–3/31/23¹		Net Annualized Expense Ratio
	$1,000.00		$1,150.80		$0.32		$1,024.63		$0.30		0.06	%

2. Reflects expenses after fee waivers and expense reimbursements.



franklintempleton.com	Annual Report	23

Franklin U.S. Large Cap Multifactor Index ETF

Formerly, Franklin LibertyQ U.S. Equity ETF

This annual report for Franklin U.S. Large Cap Multifactor Index ETF covers the fiscal year ended March 31, 2023. Effective August 1, 2022, Franklin LibertyQ U.S. Equity ETF changed its name to Franklin U.S. Large Cap Multifactor Index ETF.

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 three investment style factors: quality, value and momentum.

Performance Overview

During the 12-month period, the Fund posted cumulative total returns of -5.85% based on market price and -5.79% based on net asset value (NAV). In comparison, the LibertyQ U.S. Large Cap Equity Index posted a -5.67% cumulative total return for the same period, while the Russell 1000^® Index posted a -8.39% cumulative total return.²

You can find more of the Fund’s performance data in the Performance Summary beginning on page 26.


Top 10 Sectors/Industries

3/31/23

	% of Total Net Assets

Information Technology		36.3%

Health Care		19.4%

Consumer Discretionary		12.0%

Industrials		6.8%

Communication Services		5.4%

Financials		5.0%

Energy		5.0%

Consumer Staples		4.8%

Real Estate		2.0%

Materials		1.9%

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 Underlying Index. The Fund may use either a replication strategy or representative sampling strategy. The Fund’s portfolio is reconstituted quarterly following the quarterly reconstitution of the Underlying Index.

The Fund may invest in equity futures and equity total return swaps to provide additional opportunities to add value and better track the performance of the Fund’s Underlying Index.

Manager’s Discussion

For the fiscal year ended March 31, 2023, individual holdings that hindered the Fund’s absolute return included Tesla, Amazon.com and Intel. Individual holdings that lifted the Fund’s absolute return included Merck, Exxon Mobil and Eli Lilly.

The Fund’s research-based selection process focuses on three investment factors: value, quality, and momentum. Of

1. Frank Russell Company is the source and owner of the trademarks, service marks and copyrights related to the Russell Indexes. Russell^® is a trademark of Frank Russell Company. The LibertyQ U.S. Large Cap Equity Index is a systematic, rules-based proprietary index maintained and calculated by FTSE Russell (Russell) based on the Russell 1000^® Index using a methodology developed with Franklin Templeton to reflect Franklin Templeton’s desired investment strategy. Russell 1000^® Index is market capitalization weighted and measures performance of the largest companies in the Russell 3000^® Index, which represents the majority of the U.S. market’s total capitalization.

2. Source: FactSet.

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 Schedule of Investments (SOI). The SOI begins on page 77.



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FRANKLIN U.S. LARGE CAP MULTIFACTOR INDEX ETF

the three target-style factors, value and quality contributed to the Fund’s relative performance for the reporting period, while momentum was a modest detractor. The low volatility factor, to which the Fund does not actively seek exposure, had no significant impact on the Fund’s relative return.


Top 10 Holdings

3/31/23

Company *Sector/Industry*	% of Total Net Assets

Apple, Inc. Information Technology		7.5%

Microsoft Corp. Information Technology		6.3%

Eli Lilly & Co. Health Care		1.8%

Mastercard, Inc., Class A Information Technology		1.7%

AbbVie, Inc. Health Care		1.7%

Broadcom, Inc. Information Technology		1.7%

Merck & Co., Inc. Health Care		1.6%

Exxon Mobil Corp. Energy		1.6%

Alphabet, Inc., Class A Communication Services		1.6%

Cisco Systems, Inc. Information Technology		1.6%

Thank you for your participation in Franklin U.S. Large Cap Multifactor Index ETF. We look forward to serving your future investment needs.

Dina Ting, CFA

Hailey Harris

Joe Diederich

Basit Amin, CFA

Portfolio Management Team



franklintempleton.com	Annual Report	25

FRANKLIN U.S. LARGE CAP MULTIFACTOR INDEX ETF

Performance Summary as of March 31, 2023

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. Market Price returns typically are based upon the official closing price of the ETF’s shares. 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 3/31/23^1,2

Cumulative Total Return³

Average Annual Total Return³

Based on
NAV⁴

Based on
market price⁵

Based on
NAV⁴

Based on
market price⁵

1-Year

-5.79%

-5.85%

-5.79%

-5.85%

3-Year

+59.45%

+59.49%

+16.83%

+16.84%

5-Year

+60.20%

+59.56%

+9.88%

+9.80%

Since Inception (4/26/17)

+82.37%

+82.41%

+10.67%

See page 28 for Performance Summary footnotes.



26	Annual Report	franklintempleton.com

FRANKLIN U.S. LARGE CAP MULTIFACTOR INDEX ETF

PERFORMANCE SUMMARY

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

4/26/17-3/31/23

LOGO

See page 28 for Performance Summary footnotes.



franklintempleton.com	Annual Report	27

FRANKLIN U.S. LARGE CAP MULTIFACTOR INDEX ETF

PERFORMANCE SUMMARY

Distributions (4/1/22–3/31/23)

Net Investment

Income

$0.834050

Total Annual Operating Expenses⁷

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.

1. The total annual operating expenses are as of the Fund’s prospectus available at the time of publication. Actual expenses may be higher and may impact portfolio returns.

3. 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.

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

5. Assumes reinvestment of distributions based on market price.

6. 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. The Russell 1000^® Index is market capitalization weighted and measures performance of the largest companies in the Russell 3000^® Index, which represents the majority of the U.S. market’s total capitalization.

7. Figures are as stated in the Fund’s current prospectus and may differ from the expense ratios disclosed in the Your Fund’s Expenses and Financial Highlights sections in this report.

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



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FRANKLIN U.S. LARGE CAP MULTIFACTOR INDEX 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 10/1/22		Ending Account Value 3/31/23		Expenses Paid During Period 10/1/22–3/31/23^1,2		Ending Account Value 3/31/23		Expenses Paid During Period 10/1/22–3/31/23¹		Net Annualized Expense Ratio
	$1,000.00		$1,143.50		$0.80		$1,024.18		$0.76		0.15	%

2. Reflects expenses after fee waivers and expense reimbursements.



franklintempleton.com	Annual Report	29

Franklin U.S. Mid Cap Multifactor Index ETF

Formerly, Franklin LibertyQ U.S. Mid Cap Equity ETF

This annual report for Franklin U.S. Mid Cap Multifactor Index ETF covers the fiscal year ended March 31, 2023. Effective August 1, 2022, Franklin LibertyQ U.S. Mid Cap Equity ETF changed its name to Franklin U.S. Mid Cap Multifactor Index ETF.

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).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 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, subject to a maximum 1% per company weighting.

Performance Overview

During the 12-month period, the Fund posted cumulative total returns of -2.48% based on market price and -2.17% based on net asset value (NAV). In comparison, the LibertyQ U.S. Mid Cap Equity Index posted a -1.94% cumulative total return for the same period, while the Russell Midcap^® Index posted a -8.78% cumulative total return for the same period.²

You can find more of the Fund’s performance data in the Performance Summary beginning on page 32.


Top 10 Sectors/Industries

3/31/23

	% of Total Net Assets

Information Technology		18.8%

Industrials		18.7%

Consumer Discretionary		17.0%

Financials		8.7%

Health Care		8.4%

Materials		7.1%

Consumer Staples		6.9%

Utilities		4.5%

Energy		4.5%

Real Estate		3.1%

Investment Strategy

The Fund, using a passive or indexing investment approach, seeks investment results that closely correspond, before fees and expenses, to the performance of the Underlying Index. The Fund may use either a replication strategy or representative sampling strategy. The Fund’s portfolio is reconstituted semiannually following the semiannual reconstitution of the Underlying Index.

The Fund may invest in equity futures and equity total return swaps to provide additional opportunities to add value and better track the performance of the Fund’s Underlying Index.

Manager’s Discussion

For the fiscal year ended March 31, 2023, individual holdings that hindered the Fund’s absolute return included Paramount Global, Lumen Technologies and AvalonBay Communities. Individual holdings that lifted the Fund’s absolute return included O’Reilly Automotive, Genuine Parts and W.W. Grainger.

1. 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 Schedule of Investments (SOI). The SOI begins on page 83.



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The Fund’s research-based selection process focuses on four investment factors: value, quality, momentum and low volatility. Of the four target-style factors, quality contributed to the Fund’s relative performance for the reporting period, with modest contribution from the low volatility factor. In addition, the momentum and value factors contributed marginally.


Top 10 Holdings

3/31/23

Company *Sector/Industry*	% of Total Net Assets

Fortinet, Inc. Information Technology		1.3	%

Cadence Design Systems, Inc. Information Technology		1.3	%

Arista Networks, Inc. Information Technology		1.2	%

IDEXX Laboratories, Inc. Health Care		1.2	%

WW Grainger, Inc. Industrials		1.2	%

Synopsys, Inc. Information Technology		1.2	%

Old Dominion Freight Line, Inc. Industrials		1.1	%

Otis Worldwide Corp. Industrials		1.1	%

Hershey Co. Consumer Staples		1.1	%

Fastenal Co. Industrials		1.1	%

Thank you for your participation in Franklin U.S. Mid Cap Multifactor Index ETF. We look forward to serving your future investment needs.

Dina Ting, CFA

Hailey Harris

Joe Diederich

Basit Amin, CFA

Portfolio Management Team



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FRANKLIN U.S. MID CAP MULTIFACTOR INDEX ETF

Performance Summary as of March 31, 2023

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. Market Price returns typically are based upon the official closing price of the ETF’s shares. 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 3/31/23^1,2

Cumulative Total Return³

Average Annual Total Return³

Based on
NAV⁴

Based on
market price⁵

Based on
NAV⁴

Based on
market price⁵

1-Year

-2.17%

-2.48%

-2.17%

-2.48%

3-Year

+80.23%

+80.37%

+21.70%

+21.73%

5-Year

+66.92%

+66.05%

+10.79%

+10.67%

Since Inception (4/26/17)

+83.77%

+83.59%

+10.81%

+10.79%

See page 34 for Performance Summary footnotes.



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PERFORMANCE SUMMARY

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

4/26/17-3/31/23

LOGO

See page 34 for Performance Summary footnotes.



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FRANKLIN U.S. MID CAP MULTIFACTOR INDEX ETF

PERFORMANCE SUMMARY

Distributions (4/1/22–3/31/23)

Net Investment
Income

$0.567598

Total Annual Operating Expenses⁷

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.

1. The total annual operating expenses are as of the Fund’s prospectus available at the time of publication. Actual expenses may be higher and may impact portfolio returns.

3. 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.

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

5. Assumes reinvestment of distributions based on market price.

6. 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.

7. Figures are as stated in the Fund’s current prospectus and may differ from the expense ratios disclosed in the Your Fund’s Expenses and Financial Highlights sections in this report.

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



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FRANKLIN U.S. MID CAP MULTIFACTOR INDEX 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 10/1/22		Ending Account Value 3/31/23		Expenses Paid During Period 10/1/22–3/31/23^1,2		Ending Account Value 3/31/23		Expenses Paid During Period 10/1/22–3/31/23¹		Net Annualized Expense Ratio
	$1,000.00		$1,165.20		$1.62		$1,023.44		$1.51		0.30	%

2. Reflects expenses after fee waivers and expense reimbursements.



franklintempleton.com	Annual Report	35

Franklin U.S. Small Cap Multifactor Index ETF

Formerly, Franklin LibertyQ U.S. Small Cap Equity ETF

This annual report for Franklin U.S. Small Cap Multifactor Index ETF covers the fiscal year ended March 31, 2023. Effective August 1, 2022, Franklin LibertyQ U.S. Small Cap Equity ETF changed its name to Franklin U.S. Small Cap Multifactor Index ETF.

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).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 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, subject to a maximum 1% per company weighting.

Performance Overview

During the 12-month period, the Fund posted cumulative total returns of -4.37% based on market price and -4.21% based on net asset value (NAV). In comparison, the LibertyQ U.S. Small Cap Equity Index posted a -3.97% cumulative total return for the same period, while the Russell 2000^® Index posted a -11.61% cumulative total return.²

You can find more of the Fund’s performance data in the Performance Summary beginning on page 38.


Top 10 Sectors/Industries

3/31/23

	% of Total Net Assets

Industrials		22.9%

Consumer Discretionary		19.3%

Information Technology		12.2%

Financials		9.9%

Health Care		7.5%

Utilities		7.4%

Consumer Staples		7.0%

Real Estate		4.5%

Materials		4.0%

Energy		2.8%

Investment Strategy

The Fund, using a passive or indexing investment approach, seeks investment results that closely correspond, before fees and expenses, to the performance of the Underlying Index. The Fund may use either a replication strategy or representative sampling strategy. The Fund’s portfolio is reconstituted semiannually following the semiannual reconstitution of the Underlying Index.

The Fund may invest in equity futures and equity total return swaps to provide additional opportunities to add value and better track the performance of the Fund’s Underlying Index.

Manager’s Discussion

For the fiscal year ended March 31, 2023, individual holdings that hindered the Fund’s absolute return included Helen of Troy, Microstrategy and Capital Trust. Individual holdings that lifted the Fund’s absolute return included Wingstop, Texas Roadhouse and Academy Sports & Outdoors.

The Fund’s research-based selection process focuses on four investment factors: value, quality, momentum and low

1. 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 Schedule of Investments (SOI). The SOI begins on page 89.



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FRANKLIN U.S. SMALL CAP MULTIFACTOR INDEX ETF

volatility. Of the four target-style factors, value and quality contributed to the Fund’s relative performance for the reporting period. In addition, momentum and low volatility were modest contributors.


Top 10 Holdings

3/31/23

Company *Sector/Industry*	% of Total Net Assets

Saia, Inc. Industrials		1.2%

Texas Roadhouse, Inc. Consumer Discretionary		1.1%

Applied Industrial Technologies, Inc. Industrials		0.9%

Murphy USA, Inc. Consumer Discretionary		0.9%

Kinsale Capital Group, Inc. Financials		0.9%

Novanta, Inc. Information Technology		0.9%

SPS Commerce, Inc. Information Technology		0.9%

Qualys, Inc. Information Technology		0.8%

Wingstop, Inc. Consumer Discretionary		0.8%

Exponent, Inc. Industrials		0.8%

Thank you for your participation in Franklin U.S. Small Cap Multifactor Index ETF. We look forward to serving your future investment needs.

Dina Ting, CFA

Hailey Harris

Joe Diederich

Basit Amin, CFA

Portfolio Management Team



franklintempleton.com	Annual Report	37

FRANKLIN U.S. SMALL CAP MULTIFACTOR INDEX ETF

Performance Summary as of March 31, 2023

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. Market Price returns typically are based upon the official closing price of the ETF’s shares. 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 3/31/23^1,2

Cumulative Total Return³

Average Annual Total Return³

Based on
NAV⁴

Based on
market price⁵

Based on
NAV⁴

Based on
market price⁵

1-Year

-4.21%

-4.37%

-4.21%

-4.37%

3-Year

+73.16%

+74.12%

+20.08%

+20.31%

5-Year

+36.72%

+36.73%

+6.46%

Since Inception (4/26/17)

+45.39%

+45.35%

+6.52%

+6.51%

See page 40 for Performance Summary footnotes.



38	Annual Report	franklintempleton.com

FRANKLIN U.S. SMALL CAP MULTIFACTOR INDEX ETF

PERFORMANCE SUMMARY

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

4/26/17-3/31/23

LOGO

See page 40 for Performance Summary footnotes.



franklintempleton.com	Annual Report	39

FRANKLIN U.S. SMALL CAP MULTIFACTOR INDEX ETF

PERFORMANCE SUMMARY

Distributions (4/1/22–3/31/23)

Net Investment

Income

$0.503773

Total Annual Operating Expenses⁷

0.35%

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

1. The total annual operating expenses are as of the Fund’s prospectus available at the time of publication. Actual expenses may be higher and may impact portfolio returns.

3. 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.

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

5. Assumes reinvestment of distributions based on market price.

6. 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. The 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.

7. Figures are as stated in the Fund’s current prospectus and may differ from the expense ratios disclosed in the Your Fund’s Expenses and Financial Highlights sections in this report.

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



40	Annual Report	franklintempleton.com

FRANKLIN U.S. SMALL CAP MULTIFACTOR INDEX 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 10/1/22		Ending Account Value 3/31/23		Expenses Paid During Period 10/1/22–3/31/23^1,2		Ending Account Value 3/31/23		Expenses Paid During Period 10/1/22–3/31/23¹		Net Annualized Expense Ratio
	$1,000.00		$1,150.50		$1.88		$1,023.19		$1.77		0.35	%

2. Reflects expenses after fee waivers and expense reimbursements.



franklintempleton.com	Annual Report	41

FRANKLIN TEMPLETON ETF TRUST

Financial Highlights

Franklin Emerging Market Core Dividend Tilt Index ETF^a


	Year Ended March 31,

	2023			2022			2021			2020			2019

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

Net asset value, beginning of year		$28.33			$30.78			$22.20			$29.70			$33.41

Income from investment operations^b:

Net investment income^c		1.39			1.32			0.84			1.24			1.14

Net realized and unrealized gains (losses)		(4.42	)		(2.55	)		8.55			(6.96	)		(3.76	)

Total from investment operations		(3.03	)		(1.23	)		9.39			(5.72	)		(2.62	)

Less distributions from net investment income		(1.42	)		(1.22	)		(0.81	)		(1.78	)		(1.09	)

Net asset value, end of year		$23.88			$28.33			$30.78			$22.20			$29.70

Total return^d		(10.36)%			(4.21)%			42.57%			(20.55)%			(7.70)%

Ratios to average net assets^e

Expenses before waiver and payments by affiliates		0.29%			0.45%			0.45%			0.49%			0.55%

Expenses net of waiver and payments by affiliates		0.29%			0.45%			0.45%			0.49%			0.55%

Net investment income		5.83%			4.28%			3.15%			4.26%			3.75%

Supplemental data

Net assets, end of year (000’s)		$11,939			$17,000			$24,627			$57,711			$344,484

Portfolio turnover rate^f		110.78%^g			34.27%^g			40.22%^g			44.11%^g			52.42%

^aEffective August 1, 2022, Formerly, Franklin LibertyQ Emerging Markets ETF was renamed Franklin Emerging Market Core Dividend Tilt Index ETF.

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

^cBased on average daily shares outstanding.

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

^eRatios are annualized for periods less than one year.

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


^gPortfolio turnover rate excluding cash creations was as follows:			110.78%				34.27%				36.91%				41.78%				—



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

FRANKLIN TEMPLETON ETF TRUST

Schedule of Investments, March 31, 2023

Franklin Emerging Market Core Dividend Tilt Index ETF



		Industry		Shares		Value

	Common Stocks 96.4%
	Brazil 3.4%
	Alupar Investimento SA, UNIT		Electric Utilities		1,000	$	5,302
	Ambev SA		Beverages		23,500		66,418
	Banco Bradesco SA		Banks		7,500		17,529
	Banco BTG Pactual S.A		Capital Markets		1,500		5,813
	Banco do Brasil SA		Banks		7,500		57,852
	BB Seguridade Participacoes SA		Insurance		3,500		22,442
	Caixa Seguridade Participacoes SA		Insurance		3,000		5,207
	Cia Energetica de Minas Gerais		Electric Utilities		1,500		5,065
	Cia Paranaense de Energia		Electric Utilities		1,500		10,091
	Cia Siderurgica Nacional SA		Metals & Mining		3,000		9,136
	CPFL Energia SA		Electric Utilities		1,000		6,242
	Hypera SA		Pharmaceuticals		500		3,718
	Klabin SA		Containers & Packaging		4,500		16,055
	Lojas Renner SA		Broadline Retail		500		1,634
	Neoenergia SA		Electric Utilities		1,000		2,958
	Petroleo Brasileiro SA		Oil, Gas & Consumable Fuels		11,500		60,083
	Telefonica Brasil SA		Diversified Telecommunication Services		2,300		17,537
	TIM SA		Wireless Telecommunication Services		4,500		11,165
	Transmissora Alianca de Energia Eletrica SA		Electric Utilities		1,000		6,870
	Vale SA		Metals & Mining		3,700		58,591
	Vibra Energia SA		Specialty Retail		6,500		18,473

							408,181

	Chile 0.7%
	Banco de Chile		Banks		228,845		22,346
	Banco Santander Chile		Banks		319,800		14,259
	Cencosud Shopping SA		Real Estate Management & Development		2,645		4,282
	Cia Sud Americana de Vapores SA		Marine Transportation		76,385		7,636
	Empresas CMPC SA		Paper & Forest Products		6,060		10,182
	Empresas Copec SA		Oil, Gas & Consumable Fuels		2,050		14,546
	Quinenco SA		Industrial Conglomerates		1,370		5,329

							78,580

	China 30.0%
	37 Interactive Entertainment Network Technology Group Co. Ltd., Class A		Entertainment		1,000		4,143
	Agricultural Bank of China Ltd., Class A		Banks		67,500		30,569
	Agricultural Bank of China Ltd., Class H		Banks		160,000		59,313
a	Alibaba Group Holding Ltd., Class A		Internet & Direct Marketing Retail		24,000		306,957
	Anhui Conch Cement Co. Ltd., Class A		Construction Materials		2,000		8,227
	Anhui Conch Cement Co. Ltd., Class H		Construction Materials		6,670		23,112
	ANTA Sports Products Ltd., Class A		Textiles, Apparel & Luxury Goods		1,040		15,103
	AVIC Industry-Finance Holdings Co. Ltd., Class A .		Financial Services		3,500		2,090
a	Baidu, Inc., Class A		Interactive Media & Services		2,500		47,357
	Bank of Beijing Co. Ltd., Class A		Banks		9,000		5,766
	Bank of Changsha Co. Ltd., Class A		Banks		2,000		2,304
	Bank of Chengdu Co. Ltd., Class A		Banks		1,500		2,962
	Bank of China Ltd., Class A		Banks		23,500		11,566
	Bank of China Ltd., Class H		Banks		280,000		107,364
	Bank of Communications Co. Ltd., Class A		Banks		17,000		12,650
	Bank of Communications Co. Ltd., Class H		Banks		115,000		72,370
	Bank of Jiangsu Co. Ltd., Class A		Banks		7,000		7,156
	Bank of Nanjing Co. Ltd., Class A		Banks		4,500		5,871
	Bank of Shanghai Co. Ltd., Class A		Banks		6,000		5,234
	Baoshan Iron & Steel Co. Ltd., Class A		Metals & Mining		10,500		9,541
a	BeiGene Ltd.		Biotechnology		500		8,242
	Beijing Enterprises Holdings Ltd., Class H		Industrial Conglomerates		2,500		8,997



franklintempleton.com	Annual Report	43

FRANKLIN TEMPLETON ETF TRUST

SCHEDULE OF INVESTMENTS

Franklin Emerging Market Core Dividend Tilt Index ETF (continued)



		Industry		Shares		Value

	Common Stocks (continued)
	China (continued)
b	Blue Moon Group Holdings Ltd.		Household Products		7,500	$	4,787
	BOC Hong Kong Holdings Ltd.		Banks		20,000		62,293
	BOE Technology Group Co. Ltd., Class A		Electronic Equipment, Instruments & Components		17,500		11,315
	BOE Technology Group Co. Ltd., Class B		Electronic Equipment, Instruments & Components		4,500		2,029
	Changjiang Securities Co. Ltd., Class A		Capital Markets		2,500		2,028
	China CITIC Bank Corp. Ltd., Class H		Banks		50,000		25,159
	China Conch Venture Holdings Ltd.		Construction & Engineering		9,000		15,707
	China Construction Bank Corp., Class A		Banks		2,000		1,730
	China Construction Bank Corp., Class H		Banks		265,000		171,829
	China Everbright Bank Co. Ltd., Class A		Banks		18,500		8,109
	China Everbright Bank Co. Ltd., Class H		Banks		15,000		4,548
b	China Feihe Ltd.		Food Products		20,000		15,006
	China Hongqiao Group Ltd.		Metals & Mining		10,000		9,580
	China International Marine Containers Group Co. Ltd., Class A		Machinery		1,000		1,108
	China International Marine Containers Group Co. Ltd., Class H		Machinery		4,000		2,752
	China Lesso Group Holdings Ltd.		Building Products		5,000		4,471
	China Life Insurance Co. Ltd., Class H		Insurance		40,000		65,733
	China Medical System Holdings Ltd.		Pharmaceuticals		5,000		7,898
	China Merchants Bank Co. Ltd., Class A		Banks		7,000		34,932
	China Merchants Bank Co. Ltd., Class H		Banks		14,000		71,516
	China Merchants Expressway Network & Technology Holdings Co. Ltd., Class A		Transportation Infrastructure		1,500		1,850
	China Merchants Port Holdings Co. Ltd.		Transportation Infrastructure		6,670		10,230
	China Merchants Securities Co. Ltd., Class A		Capital Markets		3,500		7,028
b	China Merchants Securities Co. Ltd., Class H		Capital Markets		3,000		2,874
	China Minsheng Banking Corp. Ltd., Class A		Banks		15,500		7,787
	China Minsheng Banking Corp. Ltd., Class H		Banks		37,500		12,850
	China National Building Material Co. Ltd., Class H		Construction Materials		23,000		18,869
	China Overseas Land & Investment Ltd., Class A		Real Estate Management & Development		20,000		48,306
	China Pacific Insurance Group Co. Ltd., Class A		Insurance		1,500		5,662
	China Pacific Insurance Group Co. Ltd., Class H		Insurance		7,000		18,593
	China Petroleum & Chemical Corp., Class A		Oil, Gas & Consumable Fuels		15,000		12,276
	China Petroleum & Chemical Corp., Class H		Oil, Gas & Consumable Fuels		120,000		70,930
	China Resources Cement Holdings Ltd.		Construction Materials		10,000		4,905
	China Shenhua Energy Co. Ltd., Class A		Oil, Gas & Consumable Fuels		3,500		14,357
	China Shenhua Energy Co. Ltd., Class H		Oil, Gas & Consumable Fuels		18,000		56,637
	China Taiping Insurance Holdings Co. Ltd.		Insurance		8,000		8,499
b	China Tower Corp. Ltd., Class H		Diversified Telecommunication Services		230,000		27,835
	China Vanke Co. Ltd., Class A		Real Estate Management & Development		4,500		9,986
	China Vanke Co. Ltd., Class H		Real Estate Management & Development		11,500		18,136
	China Yangtze Power Co. Ltd., Class A		Independent Power Producers & Energy Traders		10,000		30,944
	Chongqing Rural Commercial Bank Co. Ltd., Class A		Banks		4,000		2,138
	Chongqing Rural Commercial Bank Co. Ltd., Class H		Banks		10,000		3,643
	Chow Tai Fook Jewellery Group Ltd., Class A		Specialty Retail		13,000		25,801
	CITIC Ltd., Class B		Industrial Conglomerates		35,000		40,930
	COSCO SHIPPING Holdings Co. Ltd., Class H		Marine Transportation		17,500		19,685
	Country Garden Holdings Co. Ltd.		Real Estate Management & Development		45,000		12,669
	Country Garden Services Holdings Co. Ltd.		Commercial Services & Supplies		4,700		8,131
	CSPC Pharmaceutical Group Ltd., Class A		Pharmaceuticals		8,000		7,868
b	Dali Foods Group Co. Ltd.		Food Products		12,500		5,223	��
	Daqin Railway Co. Ltd., Class A		Ground Transportation		6,500		6,805
	ENN Energy Holdings Ltd.		Gas Utilities		800		10,966



44	Annual Report	franklintempleton.com

FRANKLIN TEMPLETON ETF TRUST

SCHEDULE OF INVESTMENTS

Franklin Emerging Market Core Dividend Tilt Index ETF (continued)



		Industry		Shares		Value

	Common Stocks (continued)
	China (continued)
	FAW Jiefang Group Co. Ltd.		Automobiles		1,000	$	1,209
	Focus Media Information Technology Co. Ltd., Class A		Technology Hardware, Storage & Peripherals		7,000		7,003
	Fosun International Ltd.		Industrial Conglomerates		12,500		9,172
	Foxconn Industrial Internet Co. Ltd., Class A		Electronic Equipment, Instruments & Components		6,000		15,045
b	Fuyao Glass Industry Group Co. Ltd., Class H		Automobile Components		400		1,743
	Gemdale Corp., Class A		Real Estate Management & Development		2,000		2,446
	Gree Electric Appliances, Inc. of Zhuhai, Class A .		Household Durables		2,500		13,379
	Guangdong HEC Technology Holding Co. Ltd., Class A		Metals & Mining		1,500		1,955
	Guanghui Energy Co. Ltd., Class A		Oil, Gas & Consumable Fuels		1,000		1,347
	Guangzhou Yuexiu Capital Holdings Group Co. Ltd., Class A, A		Capital Markets		2,000		1,919
	Guosen Securities Co. Ltd., Class A		Capital Markets		3,500		4,776
	Guotai Junan Securities Co. Ltd., Class A		Capital Markets		3,500		7,319
b	Guotai Junan Securities Co. Ltd., Class H		Capital Markets		5,000		6,076
	Haitian International Holdings Ltd.		Machinery		3,000		7,758
	Henan Shuanghui Investment & Development Co. Ltd., Class A		Food Products		1,500		5,666
	Hengan International Group Co. Ltd.		Personal Products		3,750		17,341
	Hengli Petrochemical Co. Ltd., Class A		Chemicals		3,000		7,077
	Huadian Power International Corp. Ltd., Class A		Independent Power Producers & Energy Traders		4,000		3,373
	Huadian Power International Corp. Ltd., Class H		Independent Power Producers & Energy Traders		10,000		4,102
	Huaibei Mining Holdings Co. Ltd., Class A		Metals & Mining		1,500		2,962
	Huaxia Bank Co. Ltd., Class A		Banks		7,500		5,876
	Huaxin Cement Co. Ltd., Class A		Construction Materials		1,000		2,264
	Huaxin Cement Co. Ltd., Class H, H		Construction Materials		2,000		2,176
	Huayu Automotive Systems Co. Ltd., Class A		Automobile Components		1,500		3,656
	Industrial & Commercial Bank of China Ltd., Class A		Banks		27,000		17,535
	Industrial & Commercial Bank of China Ltd., Class H		Banks		220,000		117,147
	Industrial Bank Co. Ltd., Class A		Banks		9,500		23,365
	Inner Mongolia Yili Industrial Group Co. Ltd., Class A		Food Products		3,000		12,721
a,b	JD Health International, Inc.		Consumer Staples Distribution & Retail		500		3,720
	JD.com, Inc., Class A		Broadline Retail		3,000		65,733
	Jiangsu Expressway Co. Ltd., Class A		Transportation Infrastructure		500		608
	Jiangsu Expressway Co. Ltd., Class H		Transportation Infrastructure		6,000		5,595
	Kingboard Holdings Ltd.		Electronic Equipment, Instruments & Components		3,340		10,254
a,b	Kuaishou Technology, Class B		Interactive Media & Services		3,500		26,952
	LB Group Co. Ltd., Class A		Chemicals		1,000		2,947
	Lenovo Group Ltd.		Technology Hardware, Storage & Peripherals		40,000		43,312
a	Li Auto, Inc., Class A		Automobiles		1,500		18,726
	Li Ning Co. Ltd.		Textiles, Apparel & Luxury Goods		1,000		7,885
	Livzon Pharmaceutical Group, Inc., Class H		Pharmaceuticals		1,000		3,529
b	Longfor Group Holdings Ltd.		Real Estate Management & Development		9,920		27,991
a,b	Meituan, Class B		Hotels, Restaurants & Leisure		6,040		110,413
	Midea Group Co. Ltd., Class A		Household Durables		2,500		19,589
	Minth Group Ltd.		Automobile Components		3,340		10,084
	NetEase, Inc.		Entertainment		3,617		63,586
	New China Life Insurance Co. Ltd., Class A		Insurance		1,000		4,441
	New China Life Insurance Co. Ltd., Class H		Insurance		4,500		10,697
	Perfect World Co. Ltd., Class A		Entertainment		1,000		2,478
	PetroChina Co. Ltd., Class H		Oil, Gas & Consumable Fuels		104,000		61,606
	PICC Property & Casualty Co. Ltd., Class H		Insurance		34,000		34,693



franklintempleton.com	Annual Report	45

FRANKLIN TEMPLETON ETF TRUST

SCHEDULE OF INVESTMENTS

Franklin Emerging Market Core Dividend Tilt Index ETF (continued)



		Industry		Shares		Value

	Common Stocks (continued)
	China (continued)
	Ping An Insurance Group Co. of China Ltd., Class A		Insurance		2,500	$	16,600
	Ping An Insurance Group Co. of China Ltd., Class H		Insurance		19,200		124,984
	Poly Developments & Holdings Group Co. Ltd., Class A		Real Estate Management & Development		3,500		7,202
	Postal Savings Bank of China Co. Ltd., Class A		Banks		16,000		10,834
b	Postal Savings Bank of China Co. Ltd., Class H		Banks		40,000		23,745
	Qingdao Port International Co. Ltd., Class A		Transportation Infrastructure		1,500		1,387
b	Qingdao Port International Co. Ltd., Class H		Transportation Infrastructure		5,000		2,611
	SAIC Motor Corp. Ltd., Class A		Automobiles		5,500		11,501
	Shaanxi Coal Industry Co. Ltd., Class A		Oil, Gas & Consumable Fuels		4,500		13,328
	Shandong Hi-speed Co. Ltd., Class A		Transportation Infrastructure		1,000		891
	Shanghai Baosight Software Co. Ltd., Class A		Software		500		4,237
	Shanghai Baosight Software Co. Ltd., Class B		Software		3,000		9,906
	Shanghai Construction Group Co. Ltd., Class A		Construction & Engineering		4,500		1,789
	Shanghai Lujiazui Finance & Trade Zone Development Co. Ltd., Class A		Real Estate Management & Development		1,000		1,455
	Shanghai Lujiazui Finance & Trade Zone Development Co. Ltd., Class B		Real Estate Management & Development		6,500		5,025
	Shanghai Pudong Development Bank Co. Ltd., Class A		Banks		13,000		13,611
	Shanghai Yuyuan Tourist Mart Group Co. Ltd., Class A		Specialty Retail		2,000		2,368
	Shanxi Coking Coal Energy Group Co. Ltd., Class A		Oil, Gas & Consumable Fuels		2,000		3,201
	Shengyi Technology Co. Ltd., Class A		Electronic Equipment, Instruments & Components		1,000		2,688
	Shenzhou International Group Holdings Ltd.		Textiles, Apparel & Luxury Goods		2,000		20,994
a,c	Shimao Group Holdings Ltd.		Real Estate Management & Development		9,000		2,379
	Sichuan Chuantou Energy Co. Ltd., Class A		Independent Power Producers & Energy Traders		2,000		3,850
	Sichuan Road & Bridge Group Co. Ltd., Class A		Construction & Engineering		2,000		4,019
	Sinotruk Hong Kong Ltd.		Machinery		2,500		3,885
b	Smoore International Holdings Ltd.		Tobacco		10,000		12,841
a,c	Sunac China Holdings Ltd.		Real Estate Management & Development		18,000		3,578
	Sunny Optical Technology Group Co. Ltd.		Electronic Equipment, Instruments & Components		1,500		18,143
	Tencent Holdings Ltd.		Interactive Media & Services		8,900		437,407
	The People’s Insurance Co. Group of China Ltd., Class H		Insurance		45,000		15,019
	Tingyi Cayman Islands Holding Corp.		Food Products		10,000		16,663
b	Topsports International Holdings Ltd.		Specialty Retail		15,000		13,720
	Uni-President China Holdings Ltd.		Food Products		5,000		5,045
	Want Want China Holdings Ltd.		Food Products		25,000		16,083
	Western Superconducting Technologies Co. Ltd., Class A		Metals & Mining		205		2,434
	Wuhan Guide Infrared Co. Ltd., Class A		Electronic Equipment, Instruments & Components		1,500		2,641
	Xiamen C & D, Inc., Class A		Trading Companies & Distributors		1,500		2,636
	Xinyi Solar Holdings Ltd.		Semiconductors & Semiconductor Equipment		21,000		25,173
a	XPeng, Inc., Class A		Automobiles		500		2,787
	Yankuang Energy Group Co. Ltd., Class A		Oil, Gas & Consumable Fuels		1,500		7,769
	Yankuang Energy Group Co. Ltd., Class H		Oil, Gas & Consumable Fuels		8,000		28,637
	Youngor Group Co. Ltd., Class A		Real Estate Management & Development		3,000		2,848
	Zhejiang NHU Co. Ltd., Class A		Pharmaceuticals		1,500		3,921
	Zoomlion Heavy Industry Science & Technology Co. Ltd., Class A		Machinery		3,500		3,165
	Zoomlion Heavy Industry Science & Technology Co. Ltd., Class H		Machinery		9,000		4,758



46	Annual Report	franklintempleton.com

FRANKLIN TEMPLETON ETF TRUST

SCHEDULE OF INVESTMENTS

Franklin Emerging Market Core Dividend Tilt Index ETF (continued)



		Industry		Shares		Value

	Common Stocks (continued)
	China (continued)
	ZTO Express Cayman, Inc.		Air Freight & Logistics		250	$	7,134

							3,577,976

	Colombia 0.4%
	Banco de Bogota SA		Banks		535		3,634
	Bancolombia SA		Banks		1,375		10,326
	Ecopetrol SA		Oil, Gas & Consumable Fuels		26,560		13,966
	Grupo Argos SA		Construction Materials		1,980		3,863
	Grupo Energia Bogota SA ESP		Gas Utilities		12,035		3,965
	Interconexion Electrica SA ESP		Electric Utilities		2,135		6,942

							42,696

	Czech Republic 0.5%
	CEZ AS		Electric Utilities		865		42,071
	Komercni Banka AS		Banks		420		13,946
b	Moneta Money Bank AS		Banks		1,860		7,489

							63,506

	Greece 0.5%
	Hellenic Telecommunications Organization SA		Diversified Telecommunication Services		1,150		16,854
	HELLENIQ Energy Holdings SA		Oil, Gas & Consumable Fuels		345		2,834
	JUMBO SA		Specialty Retail		550		11,652
	Motor Oil Hellas Corinth Refineries SA		Oil, Gas & Consumable Fuels		375		9,648
	OPAP SA		Hotels, Restaurants & Leisure		1,080		17,354

							58,342

	Hong Kong 2.2%
	Beijing Enterprises Water Group Ltd., Class A		Water Utilities		20,000		4,994
	Bosideng International Holdings Ltd., Class A		Household Durables		20,000		11,159
	China Everbright Environment Group Ltd., Class B		Commercial Services & Supplies		15,000		6,439
	China Gas Holdings Ltd., Class A		Gas Utilities		17,000		23,952
	China Resources Gas Group Ltd., Class A		Gas Utilities		5,500		20,284
	China Resources Land Ltd., Class H		Real Estate Management & Development		15,000		68,408
	Far East Horizon Ltd.		Financial Services		10,000		8,994
	Geely Automobile Holdings Ltd.		Automobiles		25,000		32,166
	Guangdong Investment Ltd.		Water Utilities		15,000		15,344
	Kingboard Laminates Holdings Ltd.		Electronic Equipment, Instruments & Components		5,000		5,223
	Orient Overseas International Ltd.		Marine Transportation		750		14,350
	Sino Biopharmaceutical Ltd.		Pharmaceuticals		45,000		25,223
	Xinyi Glass Holdings Ltd.		Automobile Components		15,000		26,866

							263,402

	Hungary 0.4%
	MOL Hungarian Oil & Gas PLC		Oil, Gas & Consumable Fuels		2,900		21,239
	OTP Bank Nyrt		Banks		770		21,955
	Richter Gedeon Nyrt		Pharmaceuticals		80		1,674

							44,868

	India 10.2%
	ACC Ltd.		Construction Materials		425		8,622
	Adani Enterprises Ltd.		Trading Companies & Distributors		70		1,491
	Ambuja Cements Ltd.		Construction Materials		3,645		16,213
	Aurobindo Pharma Ltd.		Pharmaceuticals		285		1,797
	Bajaj Auto Ltd.		Automobiles		365		17,253
	Bajaj Holdings & Investment Ltd.		Financial Services		145		10,445
	Bharat Petroleum Corp. Ltd.		Oil, Gas & Consumable Fuels		5,225		21,890
	Bosch Ltd.		Automobile Components		45		10,606
	Britannia Industries Ltd.		Food Products		540		28,400



franklintempleton.com	Annual Report	47

FRANKLIN TEMPLETON ETF TRUST

SCHEDULE OF INVESTMENTS

Franklin Emerging Market Core Dividend Tilt Index ETF (continued)



		Industry		Shares		Value

	Common Stocks (continued)
	India (continued)
	Coal India Ltd.		Oil, Gas & Consumable Fuels		11,215	$	29,156
	Colgate-Palmolive India Ltd.		Personal Products		710		13,022
	Dr Reddy’s Laboratories Ltd.		Pharmaceuticals		295		16,594
	Embassy Office Parks REIT		Diversified REITs		3,305		12,554
	GAIL India Ltd.		Gas Utilities		4,790		6,129
	HCL Technologies Ltd.		IT Services		5,595		73,884
b	HDFC Asset Management Co. Ltd.		Capital Markets		445		9,248
	HDFC Bank Ltd.		Banks		3,315		64,924
	Hero MotoCorp Ltd.		Automobiles		700		19,994
	Hindustan Petroleum Corp. Ltd.		Oil, Gas & Consumable Fuels		3,415		9,840
	Hindustan Unilever Ltd.		Household Products		2,580		80,378
	Housing Development Finance Corp. Ltd.		Financial Services		1,325		42,330
	Indian Oil Corp. Ltd.		Oil, Gas & Consumable Fuels		20,705		19,626
	Indraprastha Gas Ltd.		Gas Utilities		1,890		9,859
	Indus Towers Ltd.		Diversified Telecommunication Services		4,990		8,683
	Info Edge India Ltd.		Interactive Media & Services		400		18,123
	Infosys Ltd.		IT Services		9,950		172,885
	ITC Ltd.		Tobacco		15,725		73,380
	LIC Housing Finance Ltd.		Financial Services		330		1,320
	Maruti Suzuki India Ltd.		Automobiles		40		4,036
	Mphasis Ltd.		IT Services		415		9,068
	Muthoot Finance Ltd.		Consumer Finance		150		1,789
	NMDC Ltd.		Metals & Mining		6,370		8,646
	NTPC Ltd.		Independent Power Producers & Energy Traders		25,415		54,150
	Oil & Natural Gas Corp. Ltd.		Oil, Gas & Consumable Fuels		20,680		38,009
	Oracle Financial Services Software Ltd.		Software		130		5,163
	Piramal Enterprises Ltd.		Pharmaceuticals		695		5,737
	Power Finance Corp. Ltd.		Financial Services		5,405		9,980
	Power Grid Corp. of India Ltd.		Electric Utilities		18,440		50,642
	REC Ltd.		Financial Services		6,370		8,949
	Reliance Industries Ltd.		Oil, Gas & Consumable Fuels		1,555		44,106
	Shriram Finance Ltd.		Consumer Finance		1,000		15,324
	Steel Authority of India Ltd.		Metals & Mining		7,635		7,683
	Tata Consultancy Services Ltd.		IT Services		1,560		60,855
	Tata Steel Ltd.		Metals & Mining		43,095		54,798
	TVS Motor Co. Ltd.		Automobiles		1,230		16,122
	Varun Beverages Ltd.		Beverages		185		3,122
	Vedanta Ltd.		Metals & Mining		5,775		19,286
a	Zomato Ltd.		Hotels, Restaurants & Leisure		11,660		7,236

							1,223,347

	Indonesia 1.3%
	Adaro Energy Indonesia Tbk PT, Class B		Oil, Gas & Consumable Fuels		83,500		16,149
	Astra International Tbk PT, Class H		Automobiles		117,000		46,817
	Bank Mandiri Persero Tbk PT, Class A		Banks		3,500		2,410
	Bayan Resources Tbk PT		Oil, Gas & Consumable Fuels		17,000		23,554
	Bukit Asam Tbk PT, Class A		Oil, Gas & Consumable Fuels		21,500		5,721
	Indocement Tunggal Prakarsa Tbk PT		Construction Materials		10,000		7,019
	Indofood Sukses Makmur Tbk PT		Food Products		27,000		11,164
	Telkom Indonesia Persero Tbk PT, Class B		Diversified Telecommunication Services		72,500		19,631
	Unilever Indonesia Tbk PT		Household Products		31,000		8,993
	United Tractors Tbk PT		Oil, Gas & Consumable Fuels		9,000		17,467

							158,925

	Malaysia 3.4%
	Axiata Group Bhd, Class A		Wireless Telecommunication Services		4,000		2,729
	CIMB Group Holdings Bhd, Class A		Banks		41,000		49,339
	HAP Seng Consolidated Bhd		Industrial Conglomerates		3,500		4,045



48	Annual Report	franklintempleton.com

FRANKLIN TEMPLETON ETF TRUST

SCHEDULE OF INVESTMENTS

Franklin Emerging Market Core Dividend Tilt Index ETF (continued)



		Industry		Shares		Value

	Common Stocks (continued)
	Malaysia (continued)
	Hartalega Holdings Bhd		Health Care Equipment & Supplies		9,000	$	3,875
	IOI Corp. Bhd		Food Products		17,000		14,679
	Kuala Lumpur Kepong Bhd		Food Products		3,000		14,128
	Malayan Banking Bhd		Banks		41,500		80,602
	Maxis Bhd		Wireless Telecommunication Services		12,500		11,700
	MISC Bhd		Marine Transportation		7,500		12,272
	My EG Services Bhd		Professional Services		24,500		4,247
	Petronas Chemicals Group Bhd		Chemicals		15,500		24,835
	Petronas Gas Bhd		Gas Utilities		4,500		16,807
	Public Bank Bhd		Banks		85,000		77,054
	RHB Bank Bhd		Banks		21,500		27,189
	Sime Darby Bhd		Industrial Conglomerates		18,500		9,014
	Sime Darby Plantation Bhd		Food Products		17,500		16,935
	Tenaga Nasional Bhd		Electric Utilities		15,500		32,423
	Westports Holdings Bhd		Transportation Infrastructure		5,500		4,487

							406,360

	Mexico 2.5%
	Arca Continental SAB de CV		Beverages		2,505		22,703
	Coca-Cola Femsa SAB de CV		Beverages		2,685		21,522
	Fibra Uno Administracion SA de CV		Diversified REITs		15,980		22,276
b	GMexico Transportes SAB de CV		Ground Transportation		2,495		5,697
	Grupo Aeroportuario del Pacifico SAB de CV, Class B		Transportation Infrastructure		1,870		36,312
	Grupo Aeroportuario del Sureste SAB de CV, Class B		Transportation Infrastructure		980		29,918
	Grupo Financiero Banorte SAB de CV, Class O		Banks		10,940		92,035
	Grupo Mexico SAB de CV, Class B		Metals & Mining		7,965		37,641
	Kimberly-Clark de Mexico SAB de CV, Class A		Household Products		7,760		16,314
	Promotora y Operadora de Infraestructura SAB de CV		Transportation Infrastructure		1,135		11,312

							295,730

	Pakistan 0.0%^†
	Oil & Gas Development Co. Ltd.		Oil, Gas & Consumable Fuels		2,940		863


	Philippines 0.3%
	Aboitiz Power Corp., Class A		Independent Power Producers & Energy Traders		7,500		5,132
	Globe Telecom, Inc.		Wireless Telecommunication Services		190		6,514
	Manila Electric Co.		Electric Utilities		1,600		9,153
	PLDT, Inc.		Wireless Telecommunication Services		450		11,754

							32,553

	Russia 0.0%^†
a,c	Alrosa PJSC		Metals & Mining		54,971		—
a,c	Gazprom PJSC		Oil, Gas & Consumable Fuels		44,709		—
a,c	Inter RAO UES PJSC		Electric Utilities		811,741		—
a,c	LUKOIL PJSC		Oil, Gas & Consumable Fuels		2,268		—
a,c	MMC Norilsk Nickel PJSC		Metals & Mining		693		—
a,c	Moscow Exchange MICEX		Capital Markets		21,224		—
a,c	Novolipetsk Steel PJSC		Metals & Mining		35,119		—
a,c	PhosAgro PJSC		Chemicals		1,073		—
a,c	PhosAgro PJSC		Chemicals		21		—
a,c	PhosAgro PJSC, GDR		Chemicals		1		—
a,c	Polymetal International PLC		Metals & Mining		7,294		—
a,c	Polyus PJSC		Metals & Mining		756		—
a,c	Rosneft Oil Co. PJSC		Oil, Gas & Consumable Fuels		20,055		—
a,c	Severstal PAO		Metals & Mining		6,090		—
a,c	Surgutneftegas PJSC		Oil, Gas & Consumable Fuels		132,846		—



franklintempleton.com	Annual Report	49

FRANKLIN TEMPLETON ETF TRUST

SCHEDULE OF INVESTMENTS

Franklin Emerging Market Core Dividend Tilt Index ETF (continued)



		Industry		Shares		Value

	Common Stocks (continued)
	Russia (continued)
a,c	Tatneft PJSC		Oil, Gas & Consumable Fuels		29,792	$	—
a,c	TCS Group Holding PLC, GDR		Banks		1,778		—
a,c	United Co. RUSAL International PJSC		Metals & Mining		24,749		—

							—

	Saudi Arabia 3.9%
	Advanced Petrochemical Co.		Chemicals		655		8,341
	Alinma Bank		Banks		690		5,413
	Banque Saudi Fransi		Banks		3,035		29,269
	Dr Sulaiman Al Habib Medical Services Group Co.		Health Care Providers & Services		185		14,362
	Jarir Marketing Co.		Specialty Retail		335		14,547
	Riyad Bank		Banks		4,425		35,011
	SABIC Agri-Nutrients Co.		Chemicals		1,325		44,970
	Sahara International Petrochemical Co.		Chemicals		1,950		19,663
	Saudi Basic Industries Corp.		Chemicals		4,040		97,187
	Saudi Industrial Investment Group		Chemicals		2,045		13,609
	Saudi National Bank		Banks		6,355		77,624
	Saudi Telecom Co.		Diversified Telecommunication Services		8,880		94,745
	Yanbu National Petrochemical Co.		Chemicals		1,520		17,068

							471,809

	South Africa 5.0%
	Absa Group Ltd.		Banks		4,920		50,408
	African Rainbow Minerals Ltd.		Metals & Mining		625		8,125
	Anglo American Platinum Ltd.		Metals & Mining		315		16,937
	Exxaro Resources Ltd.		Oil, Gas & Consumable Fuels		1,435		15,088
	FirstRand Ltd.		Financial Services		27,120		92,293
	Gold Fields Ltd.		Metals & Mining		2,465		32,927
	Growthpoint Properties Ltd.		Diversified REITs		19,460		14,324
	Impala Platinum Holdings Ltd.		Metals & Mining		4,800		44,322
	Kumba Iron Ore Ltd.		Metals & Mining		305		7,731
	Mr Price Group Ltd.		Specialty Retail		1,455		11,826
	MultiChoice Group		Media		2,370		16,478
	Naspers Ltd., Class N		Internet & Direct Marketing Retail		270		50,111
	Nedbank Group Ltd.		Banks		2,775		33,916
	Old Mutual Ltd.		Insurance		26,405		17,561
	Pick n Pay Stores Ltd.		Consumer Staples Distribution & Retail		2,260		5,384
	Sanlam Ltd.		Insurance		10,350		32,883
	Santam Ltd.		Insurance		240		3,855
	Sibanye Stillwater Ltd.		Metals & Mining		15,785		32,589
	Standard Bank Group Ltd.		Banks		7,720		75,192
	Tiger Brands Ltd.		Food Products		975		11,019
	Vodacom Group Ltd.		Wireless Telecommunication Services		4,075		28,030

							600,999

	South Korea 8.7%
	BNK Financial Group, Inc., Class H	��	Banks		1,620		8,101
	Cheil Worldwide, Inc., Class A		Media		410		5,864
	DB Insurance Co. Ltd., Class A		Insurance		295		16,972
	Dongsuh Cos., Inc., Class A		Consumer Staples Distribution & Retail		285		4,297
	GS Holdings Corp.		Oil, Gas & Consumable Fuels		535		16,603
	Hana Financial Group, Inc.		Banks		1,765		55,180
	Hanon Systems		Automobile Components		915		6,171
	HD Hyundai Co. Ltd.		Machinery		245		10,934
	HMM Co. Ltd.		Marine Transportation		2,140		33,452
	Hyundai Marine & Fire Insurance Co. Ltd.		Insurance		310		8,049
	Hyundai Motor Co.		Automobiles		315		44,642



50	Annual Report	franklintempleton.com

FRANKLIN TEMPLETON ETF TRUST

SCHEDULE OF INVESTMENTS

Franklin Emerging Market Core Dividend Tilt Index ETF (continued)



		Industry		Shares		Value

	Common Stocks (continued)
	South Korea (continued)
a	Industrial Bank of Korea		Banks		1,635	$	12,685
a	Kakao Corp.		Interactive Media & Services		205		9,621
	KB Financial Group, Inc.		Banks		1,565		57,282
	Kia Corp.		Automobiles		1,205		74,974
a	Korea Gas Corp.		Gas Utilities		150		3,122
a	Korea Investment Holdings Co. Ltd.		Capital Markets		240		10,139
a	KT Corp.		Diversified Telecommunication Services		715		16,175
a	KT&G Corp.		Tobacco		625		40,279
a	Kumho Petrochemical Co. Ltd.		Chemicals		100		11,038
	LG Chem Ltd.		Chemicals		25		13,673
	LG Corp.		Industrial Conglomerates		85		5,406
a	LG Display Co. Ltd.		Electronic Equipment, Instruments & Components		1,190		15,018
	LG Uplus Corp.		Diversified Telecommunication Services		1,145		9,525
	NAVER Corp.		Interactive Media & Services		20		3,103
	NCSoft Corp.		Entertainment		40		11,415
a	NH Investment & Securities Co. Ltd.		Capital Markets		800		5,408
	S-1 Corp.		Commercial Services & Supplies		100		4,248
	Samsung Card Co. Ltd.		Consumer Finance		120		2,802
	Samsung Electronics Co. Ltd.		Technology Hardware, Storage & Peripherals		7,690		378,047
	Samsung Fire & Marine Insurance Co. Ltd.		Insurance		185		29,274
	Samsung SDI Co. Ltd.		Electronic Equipment, Instruments & Components		30		16,937
	Samsung Securities Co. Ltd.		Capital Markets		380		9,253
	SD Biosensor, Inc.		Health Care Equipment & Supplies		280		4,538
	Shinhan Financial Group Co. Ltd.		Banks		1,085		29,462
	SK Telecom Co. Ltd.		Wireless Telecommunication Services		565		20,962
	SSANGYONG C&E Co. Ltd.		Construction Materials		570		2,701
	Woori Financial Group, Inc.		Banks		3,755		32,911

							1,040,263

	Taiwan 19.2%
	Acer, Inc., Class H		Technology Hardware, Storage & Peripherals		15,000		13,868
	ASE Technology Holding Co. Ltd., Class A		Semiconductors & Semiconductor Equipment		19,000		70,203
	Asia Cement Corp.		Construction Materials		15,000		21,332
	Asustek Computer, Inc.		Technology Hardware, Storage & Peripherals		3,850		34,457
	AUO Corp., Class H		Electronic Equipment, Instruments & Components		40,200		24,294
	Catcher Technology Co. Ltd.		Technology Hardware, Storage & Peripherals		4,170		26,022
	Cathay Financial Holding Co. Ltd., Class A		Insurance		51,376		70,532
	Chicony Electronics Co. Ltd.		Technology Hardware, Storage & Peripherals		3,340		10,454
	China Development Financial Holding Corp., Class A		Banks		95,000		39,158
	China Steel Corp., Class A		Metals & Mining		70,000		71,040
	Compal Electronics, Inc., Class H		Technology Hardware, Storage & Peripherals		25,000		20,732
	CTBC Financial Holding Co. Ltd., Class A		Banks		100,000		71,763
	Evergreen Marine Corp. Taiwan Ltd.		Marine Transportation		5,500		28,631
	Far EasTone Telecommunications Co. Ltd.		Wireless Telecommunication Services		9,000		22,228
	Formosa Chemicals & Fibre Corp.		Chemicals		22,400		50,836
	Formosa Plastics Corp.		Chemicals		24,000		72,361
	Fubon Financial Holding Co. Ltd.		Insurance		16,500		30,618
	Giant Manufacturing Co. Ltd.		Leisure Products		2,000		11,561
	Highwealth Construction Corp.		Real Estate Management & Development		7,000		9,460
	Hon Hai Precision Industry Co. Ltd.		Electronic Equipment, Instruments & Components		29,200		99,739
	Innolux Corp.		Electronic Equipment, Instruments & Components		50,730		24,159
	Inventec Corp.		Technology Hardware, Storage & Peripherals		15,000		15,740
	Kinsus Interconnect Technology Corp.		Semiconductors & Semiconductor Equipment		1,000		3,810
	Lite-On Technology Corp.		Technology Hardware, Storage & Peripherals		11,700		28,167
	Macronix International Co. Ltd.		Semiconductors & Semiconductor Equipment		10,000		11,512
	MediaTek, Inc.		Semiconductors & Semiconductor Equipment		5,150		133,116
	Merida Industry Co. Ltd.		Leisure Products		1,000		5,534



franklintempleton.com	Annual Report	51

FRANKLIN TEMPLETON ETF TRUST

SCHEDULE OF INVESTMENTS

Franklin Emerging Market Core Dividend Tilt Index ETF (continued)



	Industry		Shares			Value

Common Stocks (continued)
Taiwan (continued)
Micro-Star International Co. Ltd.		Technology Hardware, Storage & Peripherals		3,400		$	16,080
Nan Ya Plastics Corp.		Chemicals		31,840			81,044
Nan Ya Printed Circuit Board Corp.		Electronic Equipment, Instruments & Components		1,000			9,295
Nanya Technology Corp.		Semiconductors & Semiconductor Equipment		6,670			14,568
Nien Made Enterprise Co. Ltd.		Household Durables		950			10,203
Novatek Microelectronics Corp.		Semiconductors & Semiconductor Equipment		3,000			42,516
Pegatron Corp.		Technology Hardware, Storage & Peripherals		12,000			27,470
Phison Electronics Corp.		Semiconductors & Semiconductor Equipment		1,000			12,875
Powerchip Semiconductor Manufacturing Corp.		Semiconductors & Semiconductor Equipment		15,000			16,307
Powertech Technology, Inc.		Semiconductors & Semiconductor Equipment		4,000			11,955
Quanta Computer, Inc.		Technology Hardware, Storage & Peripherals		15,000			43,895
Radiant Opto-Electronics Corp.		Semiconductors & Semiconductor Equipment		3,000			10,888
Realtek Semiconductor Corp.		Semiconductors & Semiconductor Equipment		2,667			33,942
Ruentex Industries Ltd.		Textiles, Apparel & Luxury Goods		5,000			9,278
Simplo Technology Co. Ltd.		Electronic Equipment, Instruments & Components		1,000			9,952
Sino-American Silicon Products, Inc.		Semiconductors & Semiconductor Equipment		3,340			17,113
Synnex Technology International Corp.		Electronic Equipment, Instruments & Components		7,500			15,100
Taiwan Fertilizer Co. Ltd.		Chemicals		5,000			9,196
Taiwan Glass Industry Corp.		Building Products		5,000			3,375
Taiwan Mobile Co. Ltd.		Wireless Telecommunication Services		10,000			33,172
Taiwan Semiconductor Manufacturing Co. Ltd.		Semiconductors & Semiconductor Equipment		32,200			563,678
Teco Electric & Machinery Co. Ltd.		Electrical Equipment		8,000			11,167
Tripod Technology Corp.		Electronic Equipment, Instruments & Components		3,000			11,035
United Microelectronics Corp.		Semiconductors & Semiconductor Equipment		55,000			95,558
Vanguard International Semiconductor Corp.		Semiconductors & Semiconductor Equipment		5,000			15,913
Wan Hai Lines Ltd.		Marine Transportation		8,200	��		18,448
Win Semiconductors Corp.		Semiconductors & Semiconductor Equipment		1,500			8,991
Winbond Electronics Corp.		Semiconductors & Semiconductor Equipment		15,000			13,055
Wistron Corp.		Technology Hardware, Storage & Peripherals		15,000			20,617
WPG Holdings Ltd.		Electronic Equipment, Instruments & Components		8,000			13,190
Yang Ming Marine Transport Corp.		Marine Transportation		10,000			21,118
Yuanta Financial Holding Co. Ltd.		Capital Markets		70,520			51,765

							2,294,086

Thailand 1.9%
Advanced Info Service PCL, NVDR		Wireless Telecommunication Services		6,000			37,198
Banpu PCL, Class A, NVDR		Oil, Gas & Consumable Fuels		19,000			6,001
BTS Group Holdings PCL, Class A, NVDR		Ground Transportation		39,500			8,202
Carabao Group PCL, Class A, NVDR		Beverages		1,000			2,800
Delta Electronics Thailand PCL, Class A, NVDR		Electronic Equipment, Instruments & Components		250			8,349
Electricity Generating PCL, Class A, NVDR		Independent Power Producers & Energy Traders		1,500			6,821
Intouch Holdings PCL, NVDR		Wireless Telecommunication Services		6,400			13,850
JMT Network Services PCL, NVDR		Consumer Finance		4,000			5,439
Land & Houses PCL, NVDR		Real Estate Management & Development		20,500			5,905
Osotspa PCL, NVDR		Beverages		8,400			7,554
PTT Exploration & Production PCL, NVDR		Oil, Gas & Consumable Fuels		8,000			35,210
PTT PCL, NVDR		Oil, Gas & Consumable Fuels		47,500			43,756
Ratch Group PCL, NVDR		Independent Power Producers & Energy Traders		2,000			2,252
Ratch Group PCL		Independent Power Producers & Energy Traders		1,000			1,126
Siam Cement PCL, NVDR		Construction Materials		1,500			13,818
Srisawad Corp. PCL, NVDR		Consumer Finance		3,500			5,399
Thai Oil PCL, NVDR		Oil, Gas & Consumable Fuels		5,000			7,677
Thai Union Group PCL, NVDR		Food Products		11,500			4,742
Tisco Financial Group PCL, NVDR		Banks		2,000			5,878

							221,977



52	Annual Report	franklintempleton.com

FRANKLIN TEMPLETON ETF TRUST

SCHEDULE OF INVESTMENTS

Franklin Emerging Market Core Dividend Tilt Index ETF (continued)



		Industry		Shares		Value

	Common Stocks (continued)
	Turkey 0.4%
	BIM Birlesik Magazalar AS		Consumer Staples Distribution & Retail		2,490	$	19,290
	Enka Insaat ve Sanayi AS		Industrial Conglomerates		645		985
	Eregli Demir ve Celik Fabrikalari TAS		Metals & Mining		7,725		14,247
	Tofas Turk Otomobil Fabrikasi AS		Automobiles		635		6,176
	Turk Telekomunikasyon AS		Diversified Telecommunication Services		2,350		2,038
	Turkcell Iletisim Hizmetleri AS		Wireless Telecommunication Services		2,550		4,248
	Turkiye Is Bankasi AS, Class C		Banks		8,185		5,531

							52,515

	United Arab Emirates 1.3%
	Abu Dhabi Commercial Bank PJSC		Banks		16,097		36,380
	Abu Dhabi Islamic Bank PJSC		Banks		2,590		7,038
	Abu Dhabi National Oil Co. for Distribution PJSC		Specialty Retail		16,690		18,996
	Dubai Islamic Bank PJSC		Banks		16,500		23,498
	Emirates Telecommunications Group Co. PJSC		Diversified Telecommunication Services		6,095		36,611
	First Abu Dhabi Bank PJSC		Banks		3,110		10,907
a	International Holding Co. PJSC		Industrial Conglomerates		195		21,027

							154,457

	United States 0.2%
	JBS SA		Food Products		3,500		12,322
	Parade Technologies Ltd.		Semiconductors & Semiconductor Equipment		200		6,897

							19,219

	Total Common Stocks (Cost $12,667,832)						11,510,654


	Preferred Stocks 3.1%
	Brazil 1.8%
d	Banco Bradesco SA, 6.492%, pfd		Banks		26,000		67,535
d	Braskem SA, Class A, 8.76%, pfd		Chemicals		1,000		3,818
d	Cia Energetica de Minas Gerais, 11.32%, pfd		Electric Utilities		8,000		18,050
d	Gerdau SA, 13.863%, pfd		Metals & Mining		5,775		28,805
d	Itau Unibanco Holding SA, 4.349%, pfd		Banks		6,000		29,277
d	Petroleo Brasileiro SA, 43.945%, pfd		Oil, Gas & Consumable Fuels		14,500		67,063

							214,548

	Chile 0.6%
d	Sociedad Quimica y Minera de Chile SA, Class B, 0.012%, pfd		Chemicals		845		68,189


	Colombia 0.2%
d	Bancolombia SA, 11.049%, pfd		Banks		2,465		15,438
d	Grupo Aval Acciones y Valores SA, 0.75%, pfd		Banks		21,875		2,624

							18,062

	Russia 0.0%^†
a,c	Surgutneftegas PJSC, pfd		Oil, Gas & Consumable Fuels		162,582		—


	South Korea 0.5%
d	Hyundai Motor Co., 7.411%, pfd		Automobiles		80		5,887
d	Hyundai Motor Co., 7.468%, pfd		Automobiles		55		3,988
a,d	Kumho Petrochemical Co. Ltd., 7.425%, pfd		Chemicals		15		846
d	LG Chem Ltd., 3.237%, pfd		Chemicals		5		1,193
d	Samsung Electronics Co. Ltd., 2.681%, pfd		Technology Hardware, Storage & Peripherals		1,210		50,097



franklintempleton.com	Annual Report	53

FRANKLIN TEMPLETON ETF TRUST

SCHEDULE OF INVESTMENTS

Franklin Emerging Market Core Dividend Tilt Index ETF (continued)



		Industry		Shares		Value

	Preferred Stocks (continued)
	South Korea (continued)
d	Samsung Fire & Marine Insurance Co. Ltd., 8.666%, pfd		Insurance		15	$	1,835

							63,846

	Total Preferred Stocks (Cost $467,483)						364,645


	Total Investments (Cost $13,135,315) 99.5%						11,875,299
	Other Assets, less Liabilities 0.5%						64,104

	Net Assets 100.0%					$	11,939,403

^†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, 2023, the value of was $307,971, representing 2.6% of net assets.

^cFair valued using significant unobservable inputs. Note 8 regarding fair value measurements.

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

At March 31, 2023, the Fund had the following futures contracts outstanding. See Note 1(c).

Futures Contracts

Description

Type

Number of
Contracts

Notional
Amount*

Expiration
Date

Value/Unrealized
Appreciation
(Depreciation)

Equity Contracts

MSCI Emerging Markets Index

Long

$49,775

6/16/23

$1,778

*As of year end.

See Note 7 regarding other derivative information.

See Abbreviations on page 120.



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

FRANKLIN TEMPLETON ETF TRUST

Financial Highlights

Franklin International Core Dividend Tilt Index ETF^a



	Year Ended March 31,

	2023		2022		2021		2020		2019

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

Net asset value, beginning of year		$28.65		$26.52		$22.55		$24.70		$24.25

Income from investment operations^b:

Net investment income^c		1.21		1.00		0.73		0.89		0.93

Net realized and unrealized gains (losses)		0.43		1.93		5.27		(2.61)		0.79

Total from investment operations		1.64		2.93		6.00		(1.72)		1.72

Less distributions from:

Net investment income		(1.19)		(0.80)		(0.91)		(0.19)		(0.30)

Net realized gains		(0.47)		—		(1.12)		(0.24)		(0.97)

Total distributions		(1.66)		(0.80)		(2.03)		(0.43)		(1.27)

Net asset value, end of year		$28.63		$28.65		$26.52		$22.55		$24.70

Total return^d		6.56%		11.13%		27.54%		(7.12)%		7.53%

Ratios to average net assets^e

Expenses before waiver and payments by affiliates		0.12%		0.40%		0.40%		0.40%		0.40%

Expenses net of waiver and payments by affiliates		0.12%		0.40%		0.40%		0.40%		0.40%

Net investment income		4.49%		3.54%		2.97%		3.44%		3.75%

Supplemental data

Net assets, end of year (000’s)		$240,459		$17,192		$13,260		$9,021		$7,410

Portfolio turnover rate^f		49.07%^g		30.20%^g		42.33%^g		26.82%^g		39.24%

^aEffective August 1, 2022, Formerly, Franklin LibertyQ International Equity Hedged ETF was renamed Franklin International Core Dividend Tilt Index ETF.

^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:			49.07%				30.20%				41.62%				26.82%				—



franklintempleton.com	The accompanying notes are an integral part of these financial statements. \| Annual Report	55

FRANKLIN TEMPLETON ETF TRUST

Schedule of Investments, March 31, 2023

Franklin International Core Dividend Tilt Index ETF



		Industry			Shares		Value

	Common Stocks 98.8%
	Australia 10.7%
	Ampol Ltd.		Oil, Gas & Consumable Fuels			9,660	$	197,264
	ANZ Group Holdings Ltd.		Banks			72,492		1,113,287
	APA Group		Gas Utilities			57,120		387,152
	Aristocrat Leisure Ltd.		Hotels, Restaurants & Leisure			504		12,557
	ASX Ltd.		Capital Markets			9,072		395,060
	Atlas Arteria Ltd.		Transportation Infrastructure			58,716		247,355
	Aurizon Holdings Ltd.		Ground Transportation			87,360		196,591
	Bendigo & Adelaide Bank Ltd.		Banks			27,468		159,499
	BHP Group Ltd.		Metals & Mining			112,140		3,547,246
	Challenger Ltd.		Financial Services			14,364		60,031
	Cochlear Ltd.		Health Care Equipment & Supplies			588		93,212
	Coles Group Ltd.		Consumer Staples Distribution & Retail			38,640		466,342
	Commonwealth Bank of Australia		Banks			25,872		1,703,667
	Computershare Ltd.		IT Services			1,680		24,293
	CSL Ltd.		Biotechnology			6,656		1,285,200
	Dexus		Diversified REITs			51,828		260,686
	Domino’s Pizza Enterprises Ltd.		Hotels, Restaurants & Leisure			3,024		101,003
	Endeavour Group Ltd.		Consumer Staples Distribution & Retail			64,512		292,511
	Fortescue Metals Group Ltd.		Metals & Mining			72,072		1,085,598
	Glencore PLC		Metals & Mining			99,456		571,330
	Goodman Group		Diversified REITs			9,660		121,567
	GPT Group		Diversified REITs			91,476		259,768
	Harvey Norman Holdings Ltd.		Broadline Retail			29,652		71,097
	Incitec Pivot Ltd.		Chemicals			89,376		187,361
	Macquarie Group Ltd.		Capital Markets			6,384		751,067
	Medibank Pvt Ltd.		Insurance			125,328		282,033
	Mirvac Group		Diversified REITs			59,724		83,200
	National Australia Bank Ltd.		Banks			54,432		1,010,556
	Northern Star Resources Ltd.		Metals & Mining			8,064		66,485
	Origin Energy Ltd.		Oil, Gas & Consumable Fuels			29,988		166,500
	REA Group Ltd.		Media			1,008		93,185
	Rio Tinto Ltd.		Metals & Mining			16,212		1,304,479
	Rio Tinto PLC		Metals & Mining			32,508		2,201,856
	Santos Ltd.		Oil, Gas & Consumable Fuels			6,384		29,502
	Scentre Group		Real Estate Investment Trusts (REITs	)		234,612		432,111
	SEEK Ltd.		Professional Services			8,316		133,226
	Sonic Healthcare Ltd.		Health Care Providers & Services			9,744		227,367
	South32 Ltd.		Metals & Mining			203,700		596,191
	Stockland		Real Estate Investment Trusts (REITs	)		111,636		297,578
	Suncorp Group Ltd.		Insurance			5,712		46,328
	Telstra Group Ltd.		Diversified Telecommunication Services			51,996		146,959
	TPG Telecom Ltd.		Diversified Telecommunication Services			19,779		64,645
	Transurban Group		Transportation Infrastructure			52,080		495,653
	Treasury Wine Estates Ltd.		Beverages			6,888		60,295
	Vicinity Ltd.		Real Estate Investment Trusts (REITs	)		177,072		230,665
	Wesfarmers Ltd.		Broadline Retail			30,408		1,023,380
	Westpac Banking Corp.		Banks			76,188		1,105,243
	WiseTech Global Ltd.		Software			8,064		351,812
	Woodside Energy Group Ltd.		Oil, Gas & Consumable Fuels			64,344		1,436,768
	Woolworths Group Ltd.		Consumer Staples Distribution & Retail			10,080		255,866
	Worley Ltd.		Energy Equipment & Services			5,880		56,748

								25,789,375

	Austria 0.2%
a,b	BAWAG Group AG		Banks			4,032		195,636
	Erste Group Bank AG		Banks			2,100		69,587
b	Raiffeisen Bank International AG		Banks			6,132		94,336



56	Annual Report	franklintempleton.com

FRANKLIN TEMPLETON ETF TRUST

SCHEDULE OF INVESTMENTS

Franklin International Core Dividend Tilt Index ETF (continued)



		Industry		Shares		Value

	Common Stocks (continued)
	Austria (continued)
	Strabag SE		Construction & Engineering		588	$	25,202

							384,761

	Belgium 0.6%
	Ageas SA		Insurance		7,980		345,581
	Etablissements Franz Colruyt NV		Consumer Staples Distribution & Retail		2,268		66,333
	KBC Group NV		Banks		14,112		970,514
	Proximus SADP		Diversified Telecommunication Services		7,812		75,486
	Solvay SA		Chemicals		336		38,458

							1,496,372

	Chile 0.1%
	Antofagasta PLC		Metals & Mining		15,456		302,138


	China 0.1%
a,b	Wuxi Biologics Cayman, Inc.		Life Sciences Tools & Services		45,266		280,247


	Denmark 2.4%
	AP Moller - Maersk AS, Class A		Marine Transportation		135		239,421
	AP Moller - Maersk AS, Class B		Marine Transportation		258		468,284
	Coloplast AS, Class B		Health Care Equipment & Supplies		2,940		386,680
	DSV AS		Air Freight & Logistics		588		113,757
b	Genmab AS		Biotechnology		213		80,428
	Novo Nordisk AS, Class B		Pharmaceuticals		24,948		3,950,753
a	Orsted AS		Electric Utilities		756		64,325
	Pandora AS		Textiles, Apparel & Luxury Goods		924		88,323
	Tryg AS		Insurance		3,360		73,457
	Vestas Wind Systems AS		Electrical Equipment		10,836		314,497

							5,779,925

	Finland 1.8%
	Elisa Oyj		Diversified Telecommunication Services		6,636		400,570
b	Fortum OYJ		Electric Utilities		19,992		306,582
	Huhtamaki OYJ		Containers & Packaging		756		28,090
	Kesko OYJ, Class A		Consumer Staples Distribution & Retail		4,284		92,901
	Kesko OYJ, Class B		Consumer Staples Distribution & Retail		12,516		269,309
	Kone OYJ, Class B		Machinery		11,592		604,518
	Metso Outotec OYJ		Machinery		10,584		115,450
	Neste OYJ		Oil, Gas & Consumable Fuels		2,520		124,381
	Nordea Bank Abp		Banks		140,280		1,496,746
	Orion OYJ, Class A		Pharmaceuticals		1,260		58,179
	Orion OYJ, Class B		Pharmaceuticals		4,620		206,749
	Sampo Oyj, Class A		Insurance		9,996		472,199
b	UPM-Kymmene OYJ		Paper & Forest Products		2,184		73,438
	Wartsila OYJ Abp		Machinery		12,936		122,104

							4,371,216

	France 9.6%
	Air Liquide SA		Chemicals		1,344		225,161
	Airbus SE		Aerospace & Defense		1,680		225,015
a	Amundi SA		Capital Markets		2,856		180,123
	AXA SA		Insurance		35,784		1,094,986
	BNP Paribas SA		Banks		34,860		2,091,004
	Bouygues SA		Construction & Engineering		9,492		320,618
	Capgemini SE		IT Services		1,176		218,161
	Cie de Saint-Gobain		Building Products		6,300		358,111
	Cie Generale des Etablissements Michelin SCA		Automobile Components		3,276		100,174
	Credit Agricole SA		Banks		63,504		717,399
	Danone SA		Food Products		10,416		648,547



franklintempleton.com	Annual Report	57

FRANKLIN TEMPLETON ETF TRUST

SCHEDULE OF INVESTMENTS

Franklin International Core Dividend Tilt Index ETF (continued)



		Industry		Shares		Value

	Common Stocks (continued)
	France (continued)
	Dassault Systemes SE		Software		8,988	$	369,850
	Engie SA		Multi-Utilities		64,512		1,021,478
	EssilorLuxottica SA		Textiles, Apparel & Luxury Goods		2,940		530,231
	Gecina SA		Diversified REITs		2,604		270,322
	Hermes International		Textiles, Apparel & Luxury Goods		212		429,330
	Kering SA		Textiles, Apparel & Luxury Goods		1,008		657,085
	Legrand SA		Electrical Equipment		1,428		130,446
	L’Oreal SA		Personal Products		1,512		675,565
	LVMH Moet Hennessy Louis Vuitton SE		Textiles, Apparel & Luxury Goods		4,032		3,698,950
	Orange SA		Diversified Telecommunication Services		86,184		1,025,486
	Pernod Ricard SA		Beverages		1,428		323,788
	Sanofi		Pharmaceuticals		23,268		2,534,019
	Sartorius Stedim Biotech		Life Sciences Tools & Services		196		60,050
	Schneider Electric SE		Electrical Equipment		8,517		1,422,046
	Societe Generale SA		Banks		15,372		347,128
	Teleperformance		Professional Services		840		202,327
	TotalEnergies SE		Oil, Gas & Consumable Fuels		37,632		2,222,524
	Veolia Environnement SA		Multi-Utilities		6,804		209,939
	Vinci SA		Construction & Engineering		7,056		810,449
a,b	Worldline SA		IT Services		924		39,262

							23,159,574

	Germany 8.0%
	adidas AG		Textiles, Apparel & Luxury Goods		2,520		445,668
	Allianz SE		Insurance		10,920		2,524,666
	BASF SE		Chemicals		30,996		1,628,552
	Bayer AG		Pharmaceuticals		13,524		862,782
	Bayerische Motoren Werke AG		Automobiles		8,988		985,680
	Continental AG		Automobile Components		420		31,449
a	Covestro AG		Chemicals		9,072		375,820
a,b	Delivery Hero SE		Internet & Direct Marketing Retail		3,612		123,104
	Deutsche Boerse AG		Capital Markets		1,680		327,539
	Deutsche Post AG		Air Freight & Logistics		27,048		1,266,255
	Deutsche Telekom AG		Diversified Telecommunication Services		38,724		940,302
	E.ON SE		Multi-Utilities		89,628		1,119,828
	Evonik Industries AG		Chemicals		9,324		196,118
	HeidelbergCement AG		Construction Materials		588		42,968
	Infineon Technologies AG		Semiconductors & Semiconductor Equipment		24,444		1,000,675
	Mercedes-Benz Group AG		Automobiles		26,376		2,028,286
	Muenchener Rueckversicherungs-Gesellschaft AG in Muenchen		Insurance		1,764		618,070
	RWE AG		Multi-Utilities		2,184		94,058
	SAP SE		Software		14,952		1,885,348
	Siemens AG		Industrial Conglomerates		12,012		1,947,908
	Telefonica Deutschland Holding AG		Diversified Telecommunication Services		41,916		129,196
	Vonovia SE		Real Estate Management & Development		33,180		625,079
a,b	Zalando SE		Internet & Direct Marketing Retail		588		24,621

							19,223,972

	Hong Kong 2.8%
	AIA Group Ltd.		Insurance		104,800		1,103,411
	CK Asset Holdings Ltd.		Real Estate Management & Development		22,700		137,791
	CK Infrastructure Holdings Ltd., Class A		Electric Utilities		26,700		145,235
	CLP Holdings Ltd.		Electric Utilities		72,900		526,555
	Hang Lung Properties Ltd.		Real Estate Management & Development		84,000		157,086
	Hang Seng Bank Ltd.		Banks		3,700		52,649
	Henderson Land Development Co. Ltd.		Real Estate Management & Development		58,500		202,329



58	Annual Report	franklintempleton.com

FRANKLIN TEMPLETON ETF TRUST

SCHEDULE OF INVESTMENTS

Franklin International Core Dividend Tilt Index ETF (continued)



		Industry		Shares		Value

	Common Stocks (continued)
	Hong Kong (continued)
	HK Electric Investments & HK Electric
	Investments Ltd.		Electric Utilities		106,325	$	66,640
	HKT Trust & HKT Ltd.		Diversified Telecommunication Services		161,297		214,105
	Hong Kong & China Gas Co. Ltd.		Gas Utilities		444,000		390,836
	Hong Kong Exchanges & Clearing Ltd.		Capital Markets		11,100		492,362
	Jardine Matheson Holdings Ltd.		Industrial Conglomerates		4,550		220,994
	Link REIT		Diversified REITs		106,000		681,915
	MTR Corp. Ltd.		Ground Transportation		47,500		229,030
	New World Development Co. Ltd.		Real Estate Management & Development		57,000		152,848
	Power Assets Holdings Ltd.		Electric Utilities		61,500		329,830
	Sino Land Co. Ltd.		Real Estate Management & Development		152,200		205,908
	Sun Hung Kai Properties Ltd.		Real Estate Management & Development		44,321		621,063
	Swire Pacific Ltd., Class A		Real Estate Management & Development		5,000		38,408
	Swire Properties Ltd.		Real Estate Management & Development		41,600		107,048
	Techtronic Industries Co. Ltd.		Household Durables		33,870		366,100
	Wharf Real Estate Investment Co. Ltd.		Real Estate Management & Development		27,386		157,340

							6,599,483

	Ireland 0.2%
	DCC PLC		Industrial Conglomerates		336		19,601
	Experian PLC		Professional Services		2,520		82,882
	James Hardie Industries PLC, CDI		Construction Materials		3,780		80,582
	Smurfit Kappa Group PLC		Containers & Packaging		9,492		343,718

							526,783

	Isle Of Man 0.0%^†
	Entain PLC		Hotels, Restaurants & Leisure		3,446		53,537


	Israel 0.4%
	Bank Leumi Le-Israel BM		Banks		38,640		289,748
	Bezeq The Israeli Telecommunication Corp. Ltd.		Diversified Telecommunication Services		91,140		123,675
	ICL Group Ltd.		Chemicals		31,836		213,351
b	Nice Ltd.		Software		1,008		225,415

							852,189

	Italy 3.9%
	A2A SpA		Multi-Utilities		76,188		121,678
	Assicurazioni Generali SpA		Insurance		53,172		1,061,789
	Banca Mediolanum SpA		Financial Services		10,375		94,211
	Banco BPM SpA		Banks		66,612		260,896
	DiaSorin SpA		Health Care Equipment & Supplies		168		17,716
	Enel SpA		Electric Utilities		327,600		2,002,767
	Eni SpA		Oil, Gas & Consumable Fuels		79,128		1,109,511
	Ferrari NV		Automobiles		672		182,013
	FinecoBank Banca Fineco SpA		Banks		17,472		268,412
	Hera SpA		Multi-Utilities		33,096		93,560
a	Infrastrutture Wireless Italiane SpA		Diversified Telecommunication Services		14,616		192,460
	Intesa Sanpaolo SpA		Banks		560,364		1,441,352
	Mediobanca Banca di Credito Finanziario SpA		Banks		28,896		290,960
	Moncler SpA		Textiles, Apparel & Luxury Goods		3,528		243,548
a	Poste Italiane SpA		Insurance		20,580		210,444
	Prysmian SpA		Electrical Equipment		1,428		60,041
	Recordati Industria Chimica e Farmaceutica
	SpA		Pharmaceuticals		4,536		192,000
	Snam SpA		Gas Utilities		92,988		493,920
	Terna - Rete Elettrica Nazionale		Electric Utilities		62,916		517,175
	UniCredit SpA		Banks		17,892		338,429



franklintempleton.com	Annual Report	59

FRANKLIN TEMPLETON ETF TRUST

SCHEDULE OF INVESTMENTS

Franklin International Core Dividend Tilt Index ETF (continued)



	Industry		Shares		Value

Common Stocks (continued)
Italy (continued)
UnipolSai Assicurazioni SpA		Insurance		19,824	$	50,140

						9,243,022

Japan 21.3%
ABC-Mart, Inc.		Specialty Retail		1,088		59,840
Advance Residence Investment Corp.		Diversified REITs		22		52,318
Advantest Corp.		Semiconductors & Semiconductor Equipment		7,904		722,163
AGC, Inc.		Building Products		6,600		244,233
Aisin Corp.		Automobile Components		8,300		227,316
Asahi Group Holdings Ltd.		Beverages		1,100		40,697
Asahi Kasei Corp.		Chemicals		12,100		84,215
Astellas Pharma, Inc.		Pharmaceuticals		32,210		455,717
Bridgestone Corp.		Automobile Components		16,340		658,928
Brother Industries Ltd.		Technology Hardware, Storage & Peripherals		1,400		20,954
Canon, Inc.		Technology Hardware, Storage & Peripherals		29,700		659,541
Capcom Co. Ltd.		Entertainment		3,402		121,034
Chugai Pharmaceutical Co. Ltd.		Pharmaceuticals		10,130		248,892
Concordia Financial Group Ltd.		Banks		12,500		45,834
CyberAgent, Inc.		Media		18,300		153,314
Daifuku Co. Ltd.		Machinery		780		14,318
Daiichi Sankyo Co. Ltd.		Pharmaceuticals		24,700		894,909
Daikin Industries Ltd.		Building Products		2,442		434,033
Daito Trust Construction Co. Ltd.		Real Estate Management & Development		3,030		300,291
Daiwa House Industry Co. Ltd.		Real Estate Management & Development		8,980		210,111
Daiwa House REIT Investment Corp.		Diversified REITs		84		171,358
Daiwa Securities Group, Inc.		Capital Markets		23,600		110,118
Denso Corp.		Automobile Components		9,800		548,061
Dentsu Group, Inc.		Media		8,000		279,510
Disco Corp.		Semiconductors & Semiconductor Equipment		4,014		461,449
East Japan Railway Co.		Ground Transportation		2,210		121,800
Eisai Co. Ltd.		Pharmaceuticals		5,970		336,606
FANUC Corp.		Machinery		7,150		255,722
Fast Retailing Co. Ltd.		Specialty Retail		1,510		327,664
Fuji Electric Co. Ltd.		Electrical Equipment		900		35,164
FUJIFILM Holdings Corp.		Technology Hardware, Storage & Peripherals		880		44,288
Fujitsu Ltd.		IT Services		2,080		278,735
GLP J-Reit		Diversified REITs		103		110,747
GMO Payment Gateway, Inc.		IT Services		1,800		153,911
Hamamatsu Photonics KK		Electronic Equipment, Instruments & Components		2,600		138,898
Haseko Corp.		Household Durables		9,900		114,480
Hirose Electric Co. Ltd.		Electronic Equipment, Instruments & Components		1,300		168,690
Hitachi Construction Machinery Co. Ltd.		Machinery		4,700		108,592
Hitachi Ltd.		Industrial Conglomerates		7,600		414,120
Honda Motor Co. Ltd.		Automobiles		26,100		688,339
Hoya Corp.		Health Care Equipment & Supplies		3,810		416,813
Hulic Co. Ltd.		Real Estate Management & Development		25,272		206,407
Ibiden Co. Ltd.		Electronic Equipment, Instruments & Components		5,600		221,324
Iida Group Holdings Co. Ltd.		Household Durables		7,573		122,850
Inpex Corp.		Oil, Gas & Consumable Fuels		18,200		191,039
Isuzu Motors Ltd.		Automobiles		27,100		321,519
ITOCHU Corp.		Trading Companies & Distributors		8,270		267,257
Itochu Techno-Solutions Corp.		IT Services		3,700		90,491
Japan Exchange Group, Inc.		Capital Markets		12,300		186,547
Japan Metropolitan Fund Invest		Diversified REITs		336		244,130
Japan Post Bank Co. Ltd.		Banks		5,000		40,687
Japan Post Holdings Co. Ltd.		Insurance		12,700		102,724
Japan Prime Realty Investment Corp.		Diversified REITs		35		91,780
Japan Real Estate Investment Corp.		Diversified REITs		29		115,050



60	Annual Report	franklintempleton.com

FRANKLIN TEMPLETON ETF TRUST

SCHEDULE OF INVESTMENTS

Franklin International Core Dividend Tilt Index ETF (continued)



	Industry		Shares		Value

Common Stocks (continued)
Japan (continued)
Japan Tobacco, Inc.		Tobacco		50,400	$	1,059,578
JFE Holdings, Inc.		Metals & Mining		24,300		306,557
Kajima Corp.		Construction & Engineering		6,630		79,606
Kakaku.com, Inc.		Interactive Media & Services		4,020		54,520
Kao Corp.		Personal Products		6,428		249,556
KDDI Corp.		Wireless Telecommunication Services		21,530		662,126
Keyence Corp.		Electronic Equipment, Instruments & Components		2,736		1,324,932
Kirin Holdings Co. Ltd.		Beverages		35,200		554,356
Koei Tecmo Holdings Co. Ltd.		Entertainment		5,296		95,025
Komatsu Ltd.		Machinery		19,800		487,524
Kubota Corp.		Machinery		3,600		54,072
Kyocera Corp.		Electronic Equipment, Instruments & Components		3,600		186,316
Kyowa Kirin Co. Ltd.		Pharmaceuticals		2,300		49,875
Kyushu Railway Co.		Ground Transportation		6,600		146,242
Lasertec Corp.		Semiconductors & Semiconductor Equipment		3,154		551,695
Lawson, Inc.		Consumer Staples Distribution & Retail		2,125		89,573
Lixil Corp.		Building Products		12,100		197,924
M3, Inc.		Health Care Technology		8,800		218,264
Marubeni Corp.		Trading Companies & Distributors		28,400		383,141
Marui Group Co. Ltd.		Broadline Retail		1,100		16,720
Mazda Motor Corp.		Automobiles		17,000		156,473
MINEBEA MITSUMI, Inc.		Machinery		4,400		83,014
Mitsubishi Chemical Group Corp.		Chemicals		8,400		49,590
Mitsubishi Corp.		Trading Companies & Distributors		16,300		581,872
Mitsubishi Electric Corp.		Electrical Equipment		25,200		298,882
Mitsubishi HC Capital, Inc.		Financial Services		34,900		179,364
Mitsubishi UFJ Financial Group, Inc.		Banks		204,000		1,299,659
Mitsui & Co. Ltd.		Trading Companies & Distributors		4,800		148,447
Mitsui OSK Lines Ltd.		Marine Transportation		16,800		417,823
Mizuho Financial Group, Inc.		Banks		53,900		760,570
MonotaRO Co. Ltd.		Trading Companies & Distributors		6,540		81,424
MS&AD Insurance Group Holdings, Inc.		Insurance		5,320		164,129
Murata Manufacturing Co. Ltd.		Electronic Equipment, Instruments & Components		11,590		700,155
NGK Insulators Ltd.		Machinery		3,400		44,758
NGK Spark Plug Co. Ltd.		Automobile Components		8,400		172,683
Nidec Corp.		Electrical Equipment		8,600		442,310
Nihon M&A Center Holdings, Inc.		Professional Services		13,290		98,260
Nintendo Co. Ltd.		Entertainment		49,391		1,904,164
Nippon Building Fund, Inc.		Diversified REITs		58		240,123
Nippon Paint Holdings Co. Ltd.		Chemicals		16,800		156,273
Nippon Prologis REIT, Inc.		Diversified REITs		30		63,183
Nippon Steel Corp.		Metals & Mining		33,200		778,300
Nippon Telegraph & Telephone Corp.		Diversified Telecommunication Services		9,290		276,557
Nippon Yusen KK		Marine Transportation		23,500		545,432
Nitto Denko Corp.		Chemicals		5,940		381,599
Nomura Holdings, Inc.		Capital Markets		67,200		257,358
Nomura Real Estate Master Fund, Inc.		Diversified REITs		107		119,389
Nomura Research Institute Ltd.		IT Services		7,670		176,636
NSK Ltd.		Machinery		21,200		120,424
Obayashi Corp.		Construction & Engineering		5,700		43,385
Obic Co. Ltd.		IT Services		380		59,674
Omron Corp.		Electronic Equipment, Instruments & Components		1,492		86,399
Ono Pharmaceutical Co. Ltd.		Pharmaceuticals		8,400		174,450
Oracle Corp. Japan		Software		485		34,729
Oriental Land Co. Ltd.		Hotels, Restaurants & Leisure		2,020		68,725
ORIX Corp.		Financial Services		26,500		433,370
Orix JREIT, Inc.		Diversified REITs		124		156,526



franklintempleton.com	Annual Report	61

FRANKLIN TEMPLETON ETF TRUST

SCHEDULE OF INVESTMENTS

Franklin International Core Dividend Tilt Index ETF (continued)



		Industry		Shares		Value

	Common Stocks (continued)
	Japan (continued)
	Otsuka Corp.		IT Services		4,920	$	173,193
	Panasonic Holdings Corp.		Household Durables		15,100		134,106
	Recruit Holdings Co. Ltd.		Professional Services		14,700		403,148
	Rohm Co. Ltd.		Semiconductors & Semiconductor Equipment		4,050		333,823
	Santen Pharmaceutical Co. Ltd.		Pharmaceuticals		17,200		146,037
	SBI Holdings, Inc.		Capital Markets		12,200		240,535
	Sekisui Chemical Co. Ltd.		Household Durables		14,500		204,388
	Sekisui House Ltd.		Household Durables		13,850		280,767
	Seven & i Holdings Co. Ltd.		Consumer Staples Distribution & Retail		6,976		313,184
	SG Holdings Co. Ltd.		Air Freight & Logistics		8,400		123,706
	Sharp Corp.		Household Durables		10,200		71,505
	Shimadzu Corp.		Electronic Equipment, Instruments & Components		1,100		34,217
	Shimano, Inc.		Leisure Products		1,093		187,573
	Shin-Etsu Chemical Co. Ltd.		Chemicals		31,750		1,019,846
	Shiseido Co. Ltd.		Personal Products		4,100		190,413
	SoftBank Corp.		Wireless Telecommunication Services		126,000		1,447,547
	SoftBank Group Corp.		Wireless Telecommunication Services		10,500		408,829
	Sojitz Corp.		Trading Companies & Distributors		8,600		178,539
	Sompo Holdings, Inc.		Insurance		490		19,336
	Sony Group Corp.		Household Durables		14,200		1,278,736
	Square Enix Holdings Co. Ltd.		Entertainment		2,200		105,132
	Subaru Corp.		Automobiles		17,600		279,624
	SUMCO Corp.		Semiconductors & Semiconductor Equipment		15,100		224,758
	Sumitomo Chemical Co. Ltd.		Chemicals		75,700		253,111
	Sumitomo Corp.		Trading Companies & Distributors		53,500		941,044
	Sumitomo Electric Industries Ltd.		Automobile Components		5,100		65,029
	Sumitomo Metal Mining Co. Ltd.		Metals & Mining		12,000		455,241
	Sumitomo Mitsui Financial Group, Inc.		Banks		28,784		1,145,823
	Suzuki Motor Corp.		Automobiles		1,200		43,315
	Sysmex Corp.		Health Care Equipment & Supplies		2,226		144,559
	Takeda Pharmaceutical Co. Ltd.		Pharmaceuticals		60,600		1,980,690
	TDK Corp.		Electronic Equipment, Instruments & Components		11,360		403,306
	Tokio Marine Holdings, Inc.		Insurance		21,411		409,751
	Tokyo Century Corp.		Financial Services		1,940		64,210
	Tokyo Electron Ltd.		Semiconductors & Semiconductor Equipment		13,746		1,656,667
	Toray Industries, Inc.		Chemicals		12,900		73,315
	Toshiba Corp.		Industrial Conglomerates		4,500		150,293
	Tosoh Corp.		Chemicals		14,674		198,130
	Toyota Industries Corp.		Automobile Components		4,200		231,948
	Toyota Motor Corp.		Automobiles		178,140		2,516,366
	Toyota Tsusho Corp.		Trading Companies & Distributors		1,900		80,231
	Trend Micro, Inc.		Software		890		43,266
	United Urban Investment Corp.		Diversified REITs		136		146,127
	USS Co. Ltd.		Specialty Retail		9,600		165,542
	Yamaha Motor Co. Ltd.		Automobiles		3,300		85,792
	Yaskawa Electric Corp.		Machinery		4,804		208,273
	Z Holdings Corp.		Interactive Media & Services		48,300		135,294
	ZOZO, Inc.		Internet & Direct Marketing Retail		4,770		108,059

							51,163,563

	Luxembourg 0.0%^†
	Eurofins Scientific SE		Life Sciences Tools & Services		1,512		101,257


	Netherlands 5.1%
a,b	Adyen NV		IT Services		588		932,184
b	Argenx SE		Biotechnology		604		223,573
b	Argenx SE		Biotechnology		68		25,170
	ASM International NV		Semiconductors & Semiconductor Equipment		1,344		543,044



62	Annual Report	franklintempleton.com

FRANKLIN TEMPLETON ETF TRUST

SCHEDULE OF INVESTMENTS

Franklin International Core Dividend Tilt Index ETF (continued)



		Industry		Shares		Value

	Common Stocks (continued)
	Netherlands (continued)
	ASML Holding NV		Semiconductors & Semiconductor Equipment		6,492	$	4,409,681
	ING Groep NV		Banks		60,144		714,204
	Koninklijke Ahold Delhaize NV		Consumer Staples Distribution & Retail		4,620		158,061
	Koninklijke DSM NV		Chemicals		1,344		158,722
	Koninklijke KPN NV		Diversified Telecommunication Services		145,824		515,850
	Koninklijke Philips NV		Health Care Equipment & Supplies		40,236		735,976
	NN Group NV		Insurance		14,196		516,062
b	Prosus NV		Internet & Direct Marketing Retail		13,188		1,030,764
	Shell PLC		Oil, Gas & Consumable Fuels		76,272		2,177,066
	Universal Music Group NV		Entertainment		7,308		185,036

							12,325,393

	New Zealand 0.4%
	Contact Energy Ltd.		Electric Utilities		35,616		172,471
	Fisher & Paykel Healthcare Corp. Ltd.		Health Care Equipment & Supplies		11,676		194,680
	Mercury NZ Ltd.		Electric Utilities		26,964		106,450
	Meridian Energy Ltd.		Independent Power Producers & Energy Traders		53,508		175,756
	Spark New Zealand Ltd.		Diversified Telecommunication Services		86,772		274,702

							924,059

	Norway 1.2%
	Aker ASA, Class A		Financial Services		1,092		70,068
	Aker BP ASA		Oil, Gas & Consumable Fuels		14,616		357,686
a,b	AutoStore Holdings Ltd.		Machinery		37,128		79,658
	DNB Bank ASA		Banks		41,664		745,314
	Equinor ASA		Oil, Gas & Consumable Fuels		756		21,562
	Gjensidige Forsikring ASA		Insurance		8,316		136,018
	Leroy Seafood Group ASA		Food Products		8,148		42,245
	Mowi ASA		Food Products		1,680		31,023
	Norsk Hydro ASA		Metals & Mining		25,620		190,320
	Orkla ASA		Food Products		34,860		247,176
	Salmar ASA		Food Products		2,856		124,296
	Storebrand ASA		Insurance		21,756		166,851
	Telenor ASA		Diversified Telecommunication Services		29,148		341,490
	TOMRA Systems ASA		Commercial Services & Supplies		3,528		59,288
	Yara International ASA		Chemicals		7,728		334,928

							2,947,923

	Poland 0.3%
	Bank Polska Kasa Opieki SA		Banks		6,804		134,973
	LPP SA		Textiles, Apparel & Luxury Goods		45		100,068
	Polski Koncern Naftowy ORLEN SA		Oil, Gas & Consumable Fuels		9,828		132,864
	Powszechna Kasa Oszczednosci Bank Polski SA		Banks		38,892		257,471
	Powszechny Zaklad Ubezpieczen SA		Insurance		24,360		198,361

							823,737

	Portugal 0.4%
	EDP - Energias de Portugal SA		Electric Utilities		88,452		482,031
	Galp Energia SGPS SA, Class B		Oil, Gas & Consumable Fuels		21,504		244,377
	Jeronimo Martins SGPS SA		Consumer Staples Distribution & Retail		6,216		146,008

							872,416

	Singapore 1.2%
	CapitaLand Ascendas REIT, Class A		Diversified REITs		156,300		336,218
	CapitaLand Integrated Commercial Trust, Class A		Diversified REITs		235,700		351,010
	DBS Group Holdings Ltd., Class A		Banks		16,800		416,983



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SCHEDULE OF INVESTMENTS

Franklin International Core Dividend Tilt Index ETF (continued)



		Industry		Shares		Value

	Common Stocks (continued)
	Singapore (continued)
	Keppel Corp. Ltd.		Industrial Conglomerates		63,500	$	268,892
	Mapletree Pan Asia Commercial Trust		Diversified REITs		106,000		143,507
	Olam Group Ltd.		Consumer Staples Distribution & Retail		50,400		59,515
	Oversea-Chinese Banking Corp. Ltd.		Banks		47,200		439,144
	Singapore Exchange Ltd.		Capital Markets		26,798		189,463
	Singapore Technologies Engineering Ltd.		Aerospace & Defense		75,600		208,113
	United Overseas Bank Ltd.		Banks		12,700		284,271
	Venture Corp. Ltd.		Electronic Equipment, Instruments & Components		12,553		166,832

							2,863,948

	Spain 2.0%
	ACS Actividades de Construccion y Servicios SA		Construction & Engineering		10,248		326,781
	Banco Bilbao Vizcaya Argentaria SA		Banks		68,628		489,940
	CaixaBank SA		Banks		12,348		48,081
	Endesa SA		Electric Utilities		14,112		306,640
	Iberdrola SA		Electric Utilities		102,648		1,280,829
	Industria de Diseno Textil SA		Specialty Retail		13,524		454,018
	Mapfre SA		Insurance		44,268		89,360
	Naturgy Energy Group SA		Gas Utilities		8,316		250,719
	Red Electrica Corp. SA		Electric Utilities		19,824		348,912
	Repsol SA		Oil, Gas & Consumable Fuels		2,100		32,364
	Telefonica SA		Diversified Telecommunication Services		258,720		1,116,756

							4,744,400

	Sweden 2.5%
	Assa Abloy AB, Class B		Building Products		4,452		106,604
	Atlas Copco AB, Class A		Machinery		18,396		233,357
	Atlas Copco AB, Class B		Machinery		11,004		126,472
	Axfood AB		Consumer Staples Distribution & Retail		4,704		114,861
	Castellum AB		Real Estate Management & Development		13,944		161,903
	Electrolux AB, Class B		Household Durables		11,004		133,624
b	Embracer Group AB		Entertainment		6,216		29,055
	EQT AB		Capital Markets		11,256		228,603
	Essity AB, Class B		Household Products		3,612		103,244
a	Evolution AB		Hotels, Restaurants & Leisure		4,704		629,737
	H & M Hennes & Mauritz AB, Class B		Specialty Retail		32,088		457,421
	Husqvarna AB, Class B		Household Durables		19,992		173,207
	Investor AB, Class B		Financial Services		2,436		48,405
	Lifco AB, Class B		Industrial Conglomerates		9,072		195,096
	Nibe Industrier AB, Class B		Building Products		17,304		196,577
	Nordnet AB publ		Capital Markets		7,980		131,402
	Securitas AB, Class B		Commercial Services & Supplies		18,312		162,961
b	Skandinaviska Enskilda Banken AB, Class A		Banks		31,500		347,366
	Skanska AB, Class B		Construction & Engineering		14,364		219,625
	SKF AB, Class B		Machinery		2,772		54,533
	SSAB AB, Class A		Metals & Mining		9,744		71,829
	SSAB AB, Class B		Metals & Mining		27,552		196,406
	Svenska Handelsbanken AB, Class A		Banks		37,296		323,126
	Swedbank AB, Class A		Banks		27,384		449,334
	Tele2 AB, Class B		Wireless Telecommunication Services		25,368		252,590
	Telefonaktiebolaget LM Ericsson, Class B		Communications Equipment		57,456		335,775
	Telia Co. AB		Diversified Telecommunication Services		114,156		290,301
	Volvo AB, Class A		Machinery		756		16,258
	Volvo AB, Class B		Machinery		8,064		166,303

							5,955,975



64	Annual Report	franklintempleton.com

FRANKLIN TEMPLETON ETF TRUST

SCHEDULE OF INVESTMENTS

Franklin International Core Dividend Tilt Index ETF (continued)



		Industry		Shares		Value

	Common Stocks (continued)
	Switzerland 9.9%
	ABB Ltd.		Electrical Equipment		15,876	$	545,159
	Baloise Holding AG		Insurance		1,008		157,122
	Cie Financiere Richemont SA, Class A		Textiles, Apparel & Luxury Goods		9,240		1,475,689
	EMS-Chemie Holding AG		Chemicals		84		69,330
	Geberit AG		Building Products		420		234,102
	Givaudan SA		Chemicals		118		384,012
	Julius Baer Group Ltd.		Capital Markets		6,552		446,960
	Kuehne & Nagel International AG		Marine Transportation		2,100		625,023
	Lonza Group AG		Life Sciences Tools & Services		1,092		654,327
	Nestle SA		Food Products		39,480		4,816,858
	Novartis AG		Pharmaceuticals		47,544		4,359,132
	Partners Group Holding AG		Capital Markets		1,048		982,898
	Roche Holding AG		Pharmaceuticals		11,760		3,359,172
	Roche Holding AG		Pharmaceuticals		420		126,430
	Schindler Holding AG, PC		Machinery		168		37,166
	SGS SA		Professional Services		286		629,573
	Sika AG		Chemicals		1,132		316,596
	STMicroelectronics NV		Semiconductors & Semiconductor Equipment		8,736		464,643
	Straumann Holding AG		Health Care Equipment & Supplies		252		37,612
	Swatch Group AG		Textiles, Apparel & Luxury Goods		84		28,817
	Swatch Group AG		Textiles, Apparel & Luxury Goods		168		10,629
	Swiss Life Holding AG		Insurance		588		362,500
	Swiss Re AG		Insurance		13,104		1,346,045
	Swisscom AG		Diversified Telecommunication Services		1,131		722,018
	Zurich Insurance Group AG		Insurance		3,408		1,632,841

							23,824,654

	United Kingdom 12.6%
	3i Group PLC		Capital Markets		17,304		360,515
	abrdn PLC		Capital Markets		99,288		249,826
	Admiral Group PLC		Insurance		12,600		317,506
	Anglo American PLC		Metals & Mining		25,368		839,989
	Ashtead Group PLC		Trading Companies & Distributors		2,184		133,886
	AstraZeneca PLC		Pharmaceuticals		24,192		3,359,738
	Aviva PLC		Insurance		123,732		618,379
	B&M European Value Retail SA		Broadline Retail		38,808		231,332
	BAE Systems PLC		Aerospace & Defense		36,876		448,020
	Barratt Developments PLC		Household Durables		48,720		281,019
	BP PLC		Oil, Gas & Consumable Fuels		156,912		991,023
	British American Tobacco PLC		Tobacco		66,108		2,321,803
	British Land Co. PLC		Diversified REITs		24,864		119,222
	BT Group PLC		Diversified Telecommunication Services		104,076		187,622
	Burberry Group PLC		Textiles, Apparel & Luxury Goods		5,376		171,895
	CK Hutchison Holdings Ltd., Class A		Real Estate Management & Development		66,000		409,455
a	ConvaTec Group PLC		Health Care Equipment & Supplies		19,488		55,083
	Diageo PLC		Beverages		21,588		964,666
	Direct Line Insurance Group PLC		Insurance		62,748		106,679
	DS Smith PLC		Containers & Packaging		62,832		244,331
	Ferguson PLC		Trading Companies & Distributors		2,100		276,532
	GSK PLC		Pharmaceuticals		98,280		1,736,497
	Hargreaves Lansdown PLC		Capital Markets		16,548		163,563
	HSBC Holdings PLC		Banks		263,676		1,792,144
	Imperial Brands PLC		Tobacco		44,604		1,028,008
	InterContinental Hotels Group PLC		Hotels, Restaurants & Leisure		1,008		66,206
	Intermediate Capital Group PLC		Capital Markets		13,860		208,560
	ITV PLC		Media		172,284		176,381
	J Sainsbury PLC		Consumer Staples Distribution & Retail		83,160		286,568
	Kingfisher PLC		Specialty Retail		71,652		231,408



franklintempleton.com	Annual Report	65

FRANKLIN TEMPLETON ETF TRUST

SCHEDULE OF INVESTMENTS

Franklin International Core Dividend Tilt Index ETF (continued)



		Industry		Shares		Value
	Common Stocks (continued)
	United Kingdom (continued)
	Land Securities Group PLC		Diversified REITs		36,708	$	281,948
	Legal & General Group PLC		Insurance		271,656		802,439
	London Stock Exchange Group PLC		Capital Markets		2,352		228,812
	M&G PLC		Financial Services		109,452		267,957
	Mondi PLC		Paper & Forest Products		20,076		318,231
	National Grid PLC		Multi-Utilities		100,632		1,364,336
	NatWest Group PLC		Banks		16,632		54,208
b	Ocado Group PLC		Consumer Staples Distribution & Retail		7,812		51,676
	Persimmon PLC		Household Durables		16,884		262,205
	Phoenix Group Holdings PLC		Insurance		39,396		266,158
	Reckitt Benckiser Group PLC		Household Products		10,248		780,289
	RELX PLC		Professional Services		20,789		672,945
	Rentokil Initial PLC		Commercial Services & Supplies		9,156		66,975
	Sage Group PLC		Software		8,232		78,883
	Schroders PLC		Capital Markets		21,840		124,219
	Severn Trent PLC		Water Utilities		10,668		379,753
	Smith & Nephew PLC		Health Care Equipment & Supplies		3,626		50,303
	Spirax-Sarco Engineering PLC		Machinery		840		123,128
	SSE PLC		Electric Utilities		35,868		799,612
	St. James’s Place PLC		Capital Markets		25,956		388,650
	Taylor Wimpey PLC		Household Durables		174,300		256,353
	Tesco PLC		Consumer Staples Distribution & Retail		61,824		203,107
	Unilever PLC		Personal Products		43,932		2,275,996
	United Utilities Group PLC		Water Utilities		29,484		386,428
	Vodafone Group PLC		Wireless Telecommunication Services		1,261,680		1,393,084
b	Wise PLC, Class A		IT Services		7,728		51,962

							30,307,513

	United States 1.1%
b	Holcim AG, Class B		Construction Materials		13,524		871,943
	Stellantis NV		Automobiles		93,744		1,704,531

							2,576,474

	Total Common Stocks (Cost $225,002,034)						237,493,906


	Preferred Stocks 0.5%
	Germany 0.5%
c	Bayerische Motoren Werke AG, 6.172%, pfd		Automobiles		1,680		172,120
c	Porsche Automobil Holding SE, 4.837%, pfd		Automobiles		2,520		144,887
c	Sartorius AG, 0.372%, pfd		Health Care Equipment & Supplies		588		247,228
c	Volkswagen AG, 21.188%, pfd		Automobiles		4,788		653,570


	Total Preferred Stocks (Cost $1,165,513)						1,217,805


	Total Investments (Cost $226,167,547) 99.3%						238,711,711
	Other Assets, less Liabilities 0.7%						1,747,637

	Net Assets 100.0%					$	240,459,348

^†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, 2023, the value of was $3,382,704, representing 1.4% of net assets.

^bNon-income producing.

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



66	Annual Report	franklintempleton.com

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SCHEDULE OF INVESTMENTS

Franklin International Core Dividend Tilt Index ETF (continued)

At March 31, 2023, the Fund had the following futures contracts outstanding. See Note 1(c).

Futures Contracts

Description

Type

Number of
Contracts

Notional
Amount*

Expiration
Date

Value/Unrealized
Appreciation
(Depreciation)

Equity Contracts

MSCI EAFE

Long

1,362,725

6/16/23

$29,508

*As of year end.

See Note 7 regarding other derivative information.

See Abbreviations on page 120.



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

FRANKLIN TEMPLETON ETF TRUST

Financial Highlights

Franklin U.S. Core Dividend Tilt Index ETF^a


	Year Ended March 31,

	2023			2022			2021			2020			2019

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

Net asset value, beginning of year		$36.29			$33.29			$23.32			$28.20			$28.22

Income from investment operations^b:

Net investment income^c		0.82			1.03			0.92			1.04			0.95

Net realized and unrealized gains (losses)		(3.82	)		2.98			9.95			(4.90	)		(0.02	)

Total from investment operations		(3.00	)		4.01			10.87			(3.86	)		0.93

Less distributions from net investment income		(1.00	)		(1.01	)		(0.90	)		(1.02	)		(0.95	)

Net asset value, end of year		$32.29			$36.29			$33.29			$23.32			$28.20

Total return^d		(8.09)%			12.14%			47.20%			(14.34)%			3.51%

Ratios to average net assets^e

Expenses before waiver and payments by affiliates		0.19%			0.45%			0.45%			0.45%			0.45%

Expenses net of waiver and payments by affiliates		0.19%			0.45%			0.45%			0.45%			0.45%

Net investment income		2.58%			2.92%			3.21%			3.60%			3.43%

Supplemental data

Net assets, end of year (000’s)		$24,219			$30,851			$26,632			$18,653			$16,920

Portfolio turnover rate^f		130.60%^g			28.73%^g			42.38%^g			19.79%^g			25.75%

^aEffective August 1, 2022, Formerly, Franklin LibertyQ Global Dividend ETF was renamed Franklin U.S. Core Dividend Tilt Index ETF.

^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:			130.60%				27.86%				42.38%				19.79%				—



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

FRANKLIN TEMPLETON ETF TRUST

Schedule of Investments, March 31, 2023

Franklin U.S. Core Dividend Tilt Index ETF



		Industry	Shares		Value

	Common Stocks 99.7%
	Brazil 0.3%
a	MercadoLibre, Inc.	Internet & Direct Marketing Retail		56	$	73,812


	China 0.4%
	NXP Semiconductors NV	Semiconductors & Semiconductor Equipment		510		95,102


	Ireland 0.1%
	Seagate Technology Holdings PLC	Technology Hardware, Storage & Peripherals		405		26,779


	Russia 0.0%^†
a,b	Polymetal International PLC	Metals & Mining		4,860		—
a,b	Tatneft PJSC	Oil, Gas & Consumable Fuels		15,990		—

						—

	Switzerland 0.0%^†
	TE Connectivity Ltd.	Electronic Equipment, Instruments & Components		75		9,836


	United States 98.9%
	3M Co.	Industrial Conglomerates		1,125		118,249
	Abbott Laboratories	Health Care Equipment & Supplies		1,635		165,560
	AbbVie, Inc.	Biotechnology		2,025		322,724
	Accenture PLC, Class A	IT Services		375		107,179
a	Adobe, Inc.	Software		210		80,928
	Advance Auto Parts, Inc.	Specialty Retail		135		16,417
a	Advanced Micro Devices, Inc.	Semiconductors & Semiconductor Equipment		1,125		110,261
	AES Corp.	Independent Power Producers & Energy Traders		1,365		32,869
	Agilent Technologies, Inc.	Life Sciences Tools & Services		30		4,150
a	agilon health, Inc.	Health Care Providers & Services		90		2,138
	Air Products & Chemicals, Inc.	Chemicals		240		68,930
a	Airbnb, Inc., Class A	Hotels, Restaurants & Leisure		210		26,124
	Albemarle Corp.	Chemicals		45		9,947
	Alexandria Real Estate Equities, Inc.	Diversified REITs		315		39,561
	Alliant Energy Corp.	Electric Utilities		510		27,234
	Ally Financial, Inc.	Consumer Finance		615		15,676
a	Alnylam Pharmaceuticals, Inc.	Biotechnology		30		6,010
a	Alphabet, Inc., Class A	Interactive Media & Services		3,270		339,197
a	Alphabet, Inc., Class C	Interactive Media & Services		2,895		301,080
	Altria Group, Inc.	Tobacco		3,600		160,632
a	Amazon.com, Inc.	Internet & Direct Marketing Retail		5,745		593,401
	Amcor PLC	Containers & Packaging		3,120		35,506
	American Electric Power Co., Inc.	Electric Utilities		825		75,067
	American Tower Corp.	Diversified REITs		435		88,888
	Amgen, Inc.	Biotechnology		885		213,949
	Analog Devices, Inc.	Semiconductors & Semiconductor Equipment		870		171,581
	Annaly Capital Management, Inc.	Mortgage Real Estate Investment Trusts (REITs)		975		18,632
	Apollo Global Management, Inc.	Financial Services		885		55,897
	Apple, Inc.	Technology Hardware, Storage & Peripherals		9,615		1,585,513
	Applied Materials, Inc.	Semiconductors & Semiconductor Equipment		705		86,595
a	Arista Networks, Inc.	Communications Equipment		30		5,036
	AT&T, Inc.	Diversified Telecommunication Services		11,190		215,407
a	Autodesk, Inc.	Software		165		34,346
	Automatic Data Processing, Inc.	IT Services		105		23,376
	AvalonBay Communities, Inc.	Diversified REITs		285		47,897
	Avangrid, Inc.	Electric Utilities		120		4,786
	Baker Hughes Co.	Energy Equipment & Services		450		12,987
	Bank of America Corp.	Banks		3,690		105,534
	Bank of New York Mellon Corp.	Capital Markets		1,050		47,712
	Bath & Body Works, Inc.	Specialty Retail		225		8,231
	Baxter International, Inc.	Health Care Equipment & Supplies		735		29,812
	Becton Dickinson & Co.	Health Care Equipment & Supplies		60		14,852



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FRANKLIN TEMPLETON ETF TRUST

SCHEDULE OF INVESTMENTS

Franklin U.S. Core Dividend Tilt Index ETF (continued)



		Industry	Shares		Value

	Common Stocks (continued)
	United States (continued)
	Best Buy Co., Inc.	Specialty Retail		420	$	32,873
a	Bills Holdings, Inc.	Software		105		8,520
	BlackRock, Inc.	Capital Markets		278		186,015
	Blackstone, Inc.	Capital Markets		1,410		123,854
a	Block, Inc.	IT Services		450		30,893
	Boston Properties, Inc.	Diversified REITs		300		16,236
	Bristol-Myers Squibb Co.	Pharmaceuticals		2,475		171,542
	Broadcom, Inc.	Semiconductors & Semiconductor Equipment		443		284,202
	Broadridge Financial Solutions, Inc.	IT Services		240		35,177
a	Cadence Design Systems, Inc.	Software		45		9,454
	Camden Property Trust	Diversified REITs		225		23,589
	Campbell Soup Co.	Food Products		375		20,618
	Cardinal Health, Inc.	Health Care Providers & Services		555		41,902
	Carlyle Group, Inc.	Capital Markets		450		13,977
	Caterpillar, Inc.	Machinery		225		51,489
a	Ceridian HCM Holding, Inc.	Software		300		21,966
	Charles Schwab Corp.	Capital Markets		270		14,143
	Chevron Corp.	Oil, Gas & Consumable Fuels		1,800		293,688
	Cigna Group	Health Care Providers & Services		30		7,666
	Cincinnati Financial Corp.	Insurance		135		15,131
	Cisco Systems, Inc.	Communications Equipment		4,755		248,568
	Citigroup, Inc.	Banks		3,330		156,144
	Citizens Financial Group, Inc.	Banks		1,095		33,255
	Clorox Co.	Household Products		240		37,978
a	Cloudflare, Inc., Class A	Software		255		15,723
	CME Group, Inc.	Capital Markets		750		143,640
	CMS Energy Corp.	Multi-Utilities		90		5,524
	Coca-Cola Co.	Beverages		4,110		254,943
	Cognex Corp.	Electronic Equipment, Instruments & Components		195		9,662
a	Coinbase Global, Inc., Class A	Capital Markets		30		2,027
	Colgate-Palmolive Co.	Household Products		360		27,054
	Comcast Corp., Class A	Media		3,870		146,712
	Comerica, Inc.	Banks		270		11,723
	Conagra Brands, Inc.	Food Products		990		37,184
	ConocoPhillips	Oil, Gas & Consumable Fuels		75		7,441
	Consolidated Edison, Inc.	Multi-Utilities		630		60,272
	Corning, Inc.	Electronic Equipment, Instruments & Components		1,545		54,508
	Costco Wholesale Corp.	Consumer Staples Distribution & Retail		90		44,718
	Coterra Energy, Inc., Class A	Oil, Gas & Consumable Fuels		1,590		39,019
a	Coupang, Inc.	Broadline Retail		270		4,320
a	Crowdstrike Holdings, Inc., Class A	Software		195		26,766
	Crown Castle, Inc.	Diversified REITs		885		118,448
	Cummins, Inc.	Machinery		210		50,165
	CVS Health Corp.	Health Care Providers & Services		1,290		95,860
	Danaher Corp.	Life Sciences Tools & Services		195		49,148
	Darden Restaurants, Inc.	Hotels, Restaurants & Leisure		240		37,238
a	Datadog, Inc., Class A	Software		270		19,618
	Deere & Co.	Machinery		105		43,352
	Dell Technologies, Inc., Class C	Technology Hardware, Storage & Peripherals		555		22,317
	Devon Energy Corp.	Oil, Gas & Consumable Fuels		1,305		66,046
a	Dexcom, Inc.	Health Care Equipment & Supplies		195		22,655
	Diamondback Energy, Inc.	Oil, Gas & Consumable Fuels		360		48,661
	Digital Realty Trust, Inc.	Diversified REITs		585		57,511
	Discover Financial Services	Consumer Finance		180		17,791
a	DocuSign, Inc.	Software		165		9,620
	Dominion Energy, Inc.	Multi-Utilities		1,710		95,606
a	DoorDash, Inc., Class A	Internet & Direct Marketing Retail		90		5,720



70	Annual Report	franklintempleton.com

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SCHEDULE OF INVESTMENTS

Franklin U.S. Core Dividend Tilt Index ETF (continued)



		Industry	Shares		Value

	Common Stocks (continued)
	United States (continued)
	Dow, Inc.	Chemicals		1,455	$	79,763
	Duke Energy Corp.	Electric Utilities		1,560		150,493
a	Dynatrace, Inc.	Software		285		12,056
	Eastman Chemical Co.	Chemicals		255		21,507
	Eaton Corp. PLC	Electrical Equipment		480		82,243
	eBay, Inc.	Internet & Direct Marketing Retail		1,020		45,257
	Edison International	Electric Utilities		750		52,942
a	Edwards Lifesciences Corp.	Health Care Equipment & Supplies		75		6,205
	Elevance Health, Inc.	Health Care Providers & Services		30		13,794
	Eli Lilly & Co.	Pharmaceuticals		615		211,203
	Emerson Electric Co.	Electrical Equipment		465		40,520
a	Enphase Energy, Inc.	Semiconductors & Semiconductor Equipment		165		34,696
	Entegris, Inc.	Semiconductors & Semiconductor Equipment		150		12,302
	Entergy Corp.	Electric Utilities		405		43,635
	EOG Resources, Inc.	Oil, Gas & Consumable Fuels		105		12,036
a	EPAM Systems, Inc.	IT Services		15		4,485
	Equinix, Inc.	Diversified REITs		75		54,078
	Equity Residential	Diversified REITs		690		41,400
	Essex Property Trust, Inc.	Diversified REITs		135		28,234
	Estee Lauder Cos., Inc., Class A	Personal Products		90		22,181
a	Etsy, Inc.	Internet & Direct Marketing Retail		105		11,690
	Evergy, Inc.	Electric Utilities		465		28,421
	Eversource Energy	Electric Utilities		540		42,260
a	Exact Sciences Corp.	Biotechnology		105		7,120
	Exelon Corp.	Electric Utilities		900		37,701
	Extra Space Storage, Inc.	Diversified REITs		270		43,991
	Exxon Mobil Corp.	Oil, Gas & Consumable Fuels		3,840		421,094
	Fastenal Co.	Trading Companies & Distributors		1,155		62,301
	Federal Realty Investment Trust	Diversified REITs		150		14,825
	FedEx Corp.	Air Freight & Logistics		75		17,137
	Fidelity National Financial, Inc.	Insurance		585		20,434
	Fidelity National Information Services, Inc.	IT Services		375		20,374
	Fifth Third Bancorp	Banks		1,515		40,360
	FirstEnergy Corp.	Electric Utilities		1,110		44,467
	Ford Motor Co.	Automobiles		7,440		93,744
a	Fortinet, Inc.	Software		315		20,935
	Franklin Resources, Inc.	Capital Markets		585		15,760
	Freeport-McMoRan, Inc.	Metals & Mining		210		8,591
	Garmin Ltd.	Household Durables		315		31,790
	Gen Digital, Inc.	Software		525		9,009
	General Dynamics Corp.	Aerospace & Defense		60		13,693
	General Mills, Inc.	Food Products		210		17,947
	Genuine Parts Co.	Distributors		120		20,077
	Gilead Sciences, Inc.	Biotechnology		1,845		153,080
	Goldman Sachs Group, Inc.	Capital Markets		120		39,253
	Hasbro, Inc.	Leisure Products		270		14,496
	Healthpeak Properties, Inc.	Diversified REITs		1,110		24,387
	Hewlett Packard Enterprise Co.	Technology Hardware, Storage & Peripherals		2,670		42,533
	Home Depot, Inc.	Specialty Retail		915		270,035
	Honeywell International, Inc.	Industrial Conglomerates		270		51,602
	HP, Inc.	Technology Hardware, Storage & Peripherals		1,875		55,031
	Hubbell, Inc., Class B	Electrical Equipment		90		21,898
a	HubSpot, Inc.	Software		60		25,725
	Humana, Inc.	Health Care Providers & Services		8		3,884
	Huntington Bancshares, Inc.	Banks		3,150		35,280
	Illinois Tool Works, Inc.	Machinery		480		116,856
a	Insulet Corp.	Health Care Equipment & Supplies		30		9,569



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SCHEDULE OF INVESTMENTS

Franklin U.S. Core Dividend Tilt Index ETF (continued)



		Industry	Shares		Value

	Common Stocks (continued)
	United States (continued)
	Intel Corp.	Semiconductors & Semiconductor Equipment		7,215	$	235,714
	International Business Machines Corp.	IT Services		1,530		200,568
	International Flavors & Fragrances, Inc.	Chemicals		555		51,038
	International Paper Co.	Containers & Packaging		735		26,504
	Interpublic Group of Cos., Inc.	Media		810		30,164
	Intuit, Inc.	Software		210		93,624
a	Intuitive Surgical, Inc.	Health Care Equipment & Supplies		105		26,824
	Invesco Ltd.	Capital Markets		915		15,006
	Invitation Homes, Inc.	Diversified REITs		360		11,243
	Iron Mountain, Inc.	Diversified REITs		570		30,159
	J M Smucker Co.	Food Products		45		7,082
	Jefferies Financial Group, Inc.	Capital Markets		375		11,903
	Johnson & Johnson	Pharmaceuticals		2,385		369,675
	Johnson Controls International PLC	Building Products		315		18,969
	JPMorgan Chase & Co.	Banks		2,340		304,925
	Juniper Networks, Inc.	Communications Equipment		660		22,717
	Kellogg Co.	Food Products		525		35,154
	KeyCorp	Banks		1,995		24,977
	Kimberly-Clark Corp.	Household Products		690		92,612
	Kimco Realty Corp.	Diversified REITs		1,290		25,194
	Kinder Morgan, Inc.	Oil, Gas & Consumable Fuels		3,945		69,077
	KKR & Co., Inc.	Capital Markets		315		16,544
	KLA Corp.	Semiconductors & Semiconductor Equipment		210		83,826
	Kraft Heinz Co.	Food Products		1,635		63,225
	Lam Research Corp.	Semiconductors & Semiconductor Equipment		158		83,759
	Lear Corp.	Automobile Components		120		16,739
	Lincoln National Corp.	Insurance		330		7,415
	Linde PLC	Chemicals		150		53,316
	Lockheed Martin Corp.	Aerospace & Defense		120		56,728
	Lowe’s Cos., Inc.	Specialty Retail		420		83,987
	Lumen Technologies, Inc.	Diversified Telecommunication Services		2,280		6,042
	LyondellBasell Industries NV, Class A	Chemicals		525		49,292
	M&T Bank Corp.	Banks		270		32,284
	MarketAxess Holdings, Inc.	Capital Markets		30		11,739
	Marvell Technology, Inc.	Semiconductors & Semiconductor Equipment		765		33,125
	Masco Corp.	Building Products		120		5,966
	Mastercard, Inc., Class A	IT Services		330		119,925
	McDonald’s Corp.	Hotels, Restaurants & Leisure		255		71,301
	Medtronic PLC	Health Care Equipment & Supplies		1,890		152,372
	Merck & Co., Inc.	Pharmaceuticals		2,535		269,699
a	Meta Platforms, Inc., Class A	Interactive Media & Services		1,275		270,223
	MetLife, Inc.	Insurance		270		15,644
	Microchip Technology, Inc.	Semiconductors & Semiconductor Equipment		1,080		90,482
	Microsoft Corp.	Software		5,055		1,457,356
	Mid-America Apartment Communities, Inc.	Diversified REITs		225		33,984
a	Moderna, Inc.	Biotechnology		75		11,519
a	MongoDB, Inc.	IT Services		75		17,484
	Monolithic Power Systems, Inc.	Semiconductors & Semiconductor Equipment		75		37,540
	Morgan Stanley	Capital Markets		1,470		129,066
	MSCI, Inc.	Capital Markets		128		71,640
	NetApp, Inc.	Technology Hardware, Storage & Peripherals		450		28,733
a	Netflix, Inc.	Entertainment		285		98,462
	Newmont Corp.	Metals & Mining		1,455		71,324
	NextEra Energy, Inc.	Electric Utilities		480		36,998
	NIKE, Inc., Class B	Textiles, Apparel & Luxury Goods		615		75,424
	NiSource, Inc.	Multi-Utilities		825		23,067
	Northern Trust Corp.	Capital Markets		435		38,337



72	Annual Report	franklintempleton.com

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SCHEDULE OF INVESTMENTS

Franklin U.S. Core Dividend Tilt Index ETF (continued)



		Industry	Shares		Value

	Common Stocks (continued)
	United States (continued)
a	Novocure Ltd.	Health Care Equipment & Supplies		75	$	4,511
	NRG Energy, Inc.	Electric Utilities		450		15,431
	NVIDIA Corp.	Semiconductors & Semiconductor Equipment		1,620		449,987
a	Okta, Inc.	IT Services		105		9,055
	Omnicom Group, Inc.	Media		420		39,623
a	ON Semiconductor Corp.	Semiconductors & Semiconductor Equipment		300		24,696
	ONEOK, Inc.	Oil, Gas & Consumable Fuels		885		56,233
	Oracle Corp.	Software		1,185		110,110
	Packaging Corp. of America	Containers & Packaging		180		24,989
a	Palantir Technologies, Inc., Class A	Software		2,220		18,759
a	Palo Alto Networks, Inc.	Software		150		29,961
	Paramount Global, Class B	Media		1,020		22,756
	Paychex, Inc.	IT Services		630		72,192
a	Paycom Software, Inc.	Software		15		4,560
a	PayPal Holdings, Inc.	IT Services		360		27,338
	PepsiCo, Inc.	Beverages		1,140		207,822
	Pfizer, Inc.	Pharmaceuticals		6,780		276,624
	Philip Morris International, Inc.	Tobacco		2,205		214,436
	Phillips 66	Oil, Gas & Consumable Fuels		900		91,242
	Pinnacle West Capital Corp.	Electric Utilities		210		16,640
a	Pinterest, Inc., Class A	Interactive Media & Services		675		18,407
	Pioneer Natural Resources Co.	Oil, Gas & Consumable Fuels		480		98,035
a	Plug Power, Inc.	Electrical Equipment		750		8,790
	PNC Financial Services Group, Inc.	Banks		885		112,483
	PPL Corp.	Electric Utilities		1,455		40,434
	Principal Financial Group, Inc.	Insurance		495		36,788
	Procter & Gamble Co.	Household Products		1,515		225,265
	Prologis, Inc.	Diversified REITs		660		82,348
	Prudential Financial, Inc.	Insurance		780		64,537
	Public Service Enterprise Group, Inc.	Multi-Utilities		960		59,952
	Public Storage	Diversified REITs		165		49,853
	QUALCOMM, Inc.	Semiconductors & Semiconductor Equipment		1,425		181,801
	Raytheon Technologies Corp.	Aerospace & Defense		840		82,261
	Realty Income Corp.	Diversified REITs		1,260		79,783
	Regency Centers Corp.	Diversified REITs		315		19,272
	Regions Financial Corp.	Banks		2,055		38,141
	ResMed, Inc.	Health Care Equipment & Supplies		45		9,855
a	ROBLOX Corp., Class A	Entertainment		210		9,446
	Rockwell Automation, Inc.	Electrical Equipment		165		48,419
a	Roku, Inc.	Entertainment		165		10,860
	Ross Stores, Inc.	Specialty Retail		90		9,552
a	Salesforce, Inc.	Software		525		104,884
a	ServiceNow, Inc.	Software		150		69,708
	Sherwin-Williams Co.	Chemicals		45		10,115
	Simon Property Group, Inc.	Real Estate Investment Trusts (REITs)		660		73,900
	Skyworks Solutions, Inc.	Semiconductors & Semiconductor Equipment		315		37,164
a	Snap, Inc., Class A	Interactive Media & Services		495		5,549
	Snap-on, Inc.	Machinery		105		25,923
a	Snowflake, Inc., Class A	IT Services		270		41,658
a	SolarEdge Technologies, Inc.	Semiconductors & Semiconductor Equipment		30		9,119
	Southern Co.	Electric Utilities		2,145		149,249
	Southern Copper Corp.	Metals & Mining		180		13,725
a	Splunk, Inc.	Software		75		7,191
	Stanley Black & Decker, Inc.	Machinery		315		25,383
	Starbucks Corp.	Hotels, Restaurants & Leisure		1,215		126,518
	State Street Corp.	Capital Markets		555		42,008
	Synchrony Financial	Consumer Finance		420		12,214



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SCHEDULE OF INVESTMENTS

Franklin U.S. Core Dividend Tilt Index ETF (continued)



		Industry	Shares		Value

	Common Stocks (continued)
	United States (continued)
a	Synopsys, Inc.	Software		15	$	5,794
	Sysco Corp.	Consumer Staples Distribution & Retail		210		16,218
	T Rowe Price Group, Inc.	Capital Markets		450		50,805
	Tapestry, Inc.	Textiles, Apparel & Luxury Goods		495		21,339
	Target Corp.	Broadline Retail		360		59,627
	Teradyne, Inc.	Semiconductors & Semiconductor Equipment		90		9,676
a	Tesla, Inc.	Automobiles		2,085		432,554
	Texas Instruments, Inc.	Semiconductors & Semiconductor Equipment		1,260		234,373
	Thermo Fisher Scientific, Inc.	Life Sciences Tools & Services		100		57,637
	TJX Cos., Inc.	Specialty Retail		225		17,631
	Tractor Supply Co.	Specialty Retail		135		31,730
a	Trade Desk, Inc., Class A	Software		420		25,582
	Truist Financial Corp.	Banks		2,880		98,208
a	Twilio, Inc., Class A	IT Services		165		10,994
	U.S. Bancorp	Banks		2,880		103,824
a	Uber Technologies, Inc.	Ground Transportation		990		31,383
	UDR, Inc.	Diversified REITs		630		25,868
	UGI Corp.	Gas Utilities		435		15,121
	Union Pacific Corp.	Ground Transportation		405		81,510
	United Parcel Service, Inc., Class B	Air Freight & Logistics		1,125		218,239
	UnitedHealth Group, Inc.	Health Care Providers & Services		525		248,110
a	Unity Software, Inc.	Software		150		4,866
	Vail Resorts, Inc.	Hotels, Restaurants & Leisure		90		21,031
	Valero Energy Corp.	Oil, Gas & Consumable Fuels		270		37,692
	Ventas, Inc.	Diversified REITs		825		35,764
	Verizon Communications, Inc.	Diversified Telecommunication Services		6,075		236,257
	VF Corp.	Textiles, Apparel & Luxury Goods		690		15,808
	Viatris, Inc.	Pharmaceuticals		2,700		25,974
	VICI Properties, Inc.	Diversified REITs		1,935		63,120
	Visa, Inc., Class A	IT Services		780		175,859
	Vistra Corp.	Independent Power Producers & Energy Traders		600		14,400
	Walgreens Boots Alliance, Inc.	Consumer Staples Distribution & Retail		1,500		51,870
	Walmart, Inc.	Consumer Staples Distribution & Retail		180		26,541
a	Walt Disney Co.	Media		375		37,549
	Watsco, Inc.	Trading Companies & Distributors		60		19,090
	WEC Energy Group, Inc.	Multi-Utilities		300		28,437
	Wells Fargo & Co.	Banks		1,815		67,845
	Welltower, Inc.	Diversified REITs		780		55,918
	Westrock Co.	Containers & Packaging		135		4,113
	Weyerhaeuser Co.	Diversified REITs		1,020		30,733
	Whirlpool Corp.	Household Durables		105		13,862
	Williams Cos., Inc.	Oil, Gas & Consumable Fuels		2,475		73,903
a	Workday, Inc., Class A	Software		90		18,589
	WP Carey, Inc.	Diversified REITs		435		33,691
a	Zillow Group, Inc., Class A	Real Estate Management & Development		30		1,311
a	Zillow Group, Inc., Class C	Real Estate Management & Development		90		4,002
	Zions Bancorp NA	Banks		255		7,632
a	ZoomInfo Technologies, Inc., Class A	Interactive Media & Services		210		5,189



74	Annual Report	franklintempleton.com

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SCHEDULE OF INVESTMENTS

Franklin U.S. Core Dividend Tilt Index ETF (continued)



		Industry		Shares		Value

	Common Stocks (continued)
	United States (continued)
a	Zscaler, Inc.		Software		120	$	14,020

							23,942,663


	Total Investments (Cost $24,817,800) 99.7%						24,148,192

	Other Assets, less Liabilities 0.3%						70,611


	Net Assets 100.0%					$	24,218,803

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

^aNon-income producing.

^bFair valued using significant unobservable inputs. Note 8 regarding fair value measurements.

At March 31, 2023, the Fund had the following futures contracts outstanding. See Note 1(c).

Futures Contracts

Description

Type

Number of
Contracts

Notional
Amount*

Expiration
Date

Value/Unrealized
Appreciation
(Depreciation)

Equity Contracts

S&P 500 E-Mini

Long

62,066

6/16/23

3,707

*As of year end.

See Note 7 regarding other derivative information.

See Abbreviations on page 120.



franklintempleton.com	The accompanying notes are an integral part of these financial statements. \| Annual Report	75

FRANKLIN TEMPLETON ETF TRUST

Financial Highlights

Franklin U.S. Large Cap Multifactor Index ETFa


	Year Ended March 31,

	2023			2022			2021			2020			2019

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

Net asset value, beginning of year		$44.86			$40.04			$27.61			$31.41			$28.51

Income from investment operations^b:

Net investment income^c		0.82			0.77			0.72			0.76			0.66

Net realized and unrealized gains (losses)		(3.48	)		4.89			12.49			(3.89	)		2.71

Total from investment operations		(2.66	)		5.66			13.21			(3.13	)		3.37

Less distributions from net investment income		(0.83	)		(0.84	)		(0.78	)		(0.67	)		(0.47	)

Net asset value, end of year		$41.37			$44.86			$40.04			$27.61			$31.41

Total return^d		(5.79)%			14.19%			48.22%			(10.27)%			11.97%

Ratios to average net assets^e

Expenses before waiver and payments by affiliates		0.15%			0.15%			0.15%			0.18%			0.25%

Expenses net of waiver and payments by affiliates		0.15%			0.15%			0.15%			0.18%			0.25%

Net investment income		2.02%			1.77%			2.06%			2.32%			2.20%

Supplemental data

Net assets, end of year (000’s)		$860,419			$966,737			$1,353,407			$1,311,583			$1,008,255

Portfolio turnover rate^f		51.95%^g			68.37%^g			25.05%^g			19.44%^g			18.04%

^aEffective August 1, 2022, Formerly, Franklin LibertyQ U.S. Equity ETF was renamed Franklin U.S. Large Cap Multifactor Index ETF.

^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:			51.95%				68.37%				25.05%				19.44%				—



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

FRANKLIN TEMPLETON ETF TRUST

Schedule of Investments, March 31, 2023

Franklin U.S. Large Cap Multifactor Index ETF



		Shares		Value

	Common Stocks 99.8%
	Communication Services 5.4%
a	Alphabet, Inc., Class A		129,792	$	13,463,324
	AT&T, Inc.		597,376		11,499,488
	Interpublic Group of Cos., Inc.		29,952		1,115,413
a	Meta Platforms, Inc., Class A		29,952		6,348,027
	Omnicom Group, Inc.		18,304		1,726,799
	Verizon Communications, Inc.		299,520		11,648,333
	World Wrestling Entertainment, Inc., Class A		9,984		911,140

					46,712,524

	Consumer Discretionary 12.0%
a	Amazon.com, Inc.		113,984		11,773,407
a	AutoNation, Inc.		6,240		838,406
a	AutoZone, Inc.		1,940		4,768,811
	Best Buy Co., Inc.		9,984		781,448
a	Booking Holdings, Inc.		1,664		4,413,610
	BorgWarner, Inc.		16,640		817,190
	Dick’s Sporting Goods, Inc.		6,240		885,394
	DR Horton, Inc.		26,208		2,560,260
a	Five Below, Inc.		4,160		856,835
a	Grand Canyon Education, Inc.		7,488		852,883
	H&R Block, Inc.		22,464		791,856
	Lennar Corp., Class A		21,216		2,230,014
	Lennar Corp., Class B		9,984		891,671
	LKQ Corp.		19,136		1,086,159
	Lowe’s Cos., Inc.		49,920		9,982,502
	Macy’s, Inc.		40,352		705,757
	McDonald’s Corp.		46,592		13,027,589
a	NVR, Inc.		250		1,393,048
a	O’Reilly Automotive, Inc.		6,240		5,297,635
	Penske Automotive Group, Inc.		5,824		825,901
	PulteGroup, Inc.		20,384		1,187,980
	Ross Stores, Inc.		20,800		2,207,504
	Starbucks Corp.		72,800		7,580,664
	Tapestry, Inc.		22,464		968,423
	Tempur Sealy International, Inc.		23,296		919,959
a	Tesla, Inc.		52,080		10,804,517
	TJX Cos., Inc.		73,216		5,737,206
	Toll Brothers, Inc.		14,976		899,009
	Tractor Supply Co.		7,488		1,759,980
a	Ulta Beauty, Inc.		4,372		2,385,669
	Williams-Sonoma, Inc.		6,656		809,769
	Yum! Brands, Inc.		24,960		3,296,717

					103,337,773

	Consumer Staples 4.8%
	Albertsons Cos., Inc., Class A		40,768		847,159
	Altria Group, Inc.		173,472		7,740,321
	General Mills, Inc.		52,416		4,479,471
	Hershey Co.		12,896		3,280,871
	Ingredion, Inc.		8,320		846,394
	Lamb Weston Holdings, Inc.		8,320		869,606
	Philip Morris International, Inc.		116,480		11,327,680
	Walmart, Inc.		82,368		12,145,162

					41,536,664

	Energy 5.0%
	Chesapeake Energy Corp.		10,400		790,816
	ConocoPhillips		99,424		9,863,855



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SCHEDULE OF INVESTMENTS

Franklin U.S. Large Cap Multifactor Index ETF (continued)



		Shares		Value

	Energy (continued)
	Devon Energy Corp.		56,992	$	2,884,365
	Exxon Mobil Corp.		126,464		13,868,042
	HF Sinclair Corp.		16,640		805,043
	Marathon Oil Corp.		44,928		1,076,475
	Marathon Petroleum Corp.		37,440		5,048,035
	Ovintiv, Inc.		19,552		705,436
	PDC Energy, Inc.		12,480		800,967
	Phillips 66		19,552		1,982,182
	Valero Energy Corp.		34,112		4,762,035

					42,587,251

	Financials 5.0%
	Ameriprise Financial, Inc.		4,576		1,402,544
a	Arch Capital Group Ltd.		21,632		1,468,164
	Arthur J Gallagher & Co.		14,144		2,705,889
a	Berkshire Hathaway, Inc., Class B		24,960		7,706,899
	Erie Indemnity Co., Class A		3,328		770,965
	Evercore, Inc., Class A		6,240		719,971
	Everest Re Group Ltd.		2,080		744,682
	FactSet Research Systems, Inc.		2,816		1,168,893
	Globe Life, Inc.		7,904		869,598
	Interactive Brokers Group, Inc., Class A		9,568		789,934
	JPMorgan Chase & Co.		54,080		7,047,165
	Lazard Ltd., Class A		22,048		730,009
	LPL Financial Holdings, Inc.		6,240		1,262,976
	MarketAxess Holdings, Inc.		2,496		976,660
	MGIC Investment Corp.		60,320		809,494
	MSCI, Inc.		3,328		1,862,648
	OneMain Holdings, Inc.		19,136		709,563
	Principal Financial Group, Inc.		18,304		1,360,353
	Progressive Corp.		47,008		6,724,965
	Reinsurance Group of America, Inc.		5,824		773,194
	SEI Investments Co.		13,728		790,046
	Synchrony Financial		39,520		1,149,242
	Unum Group		21,216		839,305

					43,383,159

	Health Care 19.4%
	AbbVie, Inc.		91,104		14,519,244
	Amgen, Inc.		44,928		10,861,344
a	Biogen, Inc.		9,152		2,544,531
	Bristol-Myers Squibb Co.		167,648		11,619,683
	Cardinal Health, Inc.		24,960		1,884,480
	Chemed Corp.		1,611		866,315
	Cigna Group		27,872		7,122,132
	Elevance Health, Inc.		20,335		9,350,236
	Eli Lilly & Co.		44,096		15,143,448
	Encompass Health Corp.		14,976		810,202
	Gilead Sciences, Inc.		63,232		5,246,359
	HCA Healthcare, Inc.		17,888		4,716,708
a	Hologic, Inc.		10,400		839,280
	Humana, Inc.		9,152		4,442,930
a	IDEXX Laboratories, Inc.		3,744		1,872,299
	Johnson & Johnson		73,216		11,348,480
	Merck & Co., Inc.		131,040		13,941,346
	Organon & Co.		34,112		802,314
	Pfizer, Inc.		321,984		13,136,947
	Premier, Inc., Class A		25,792		834,887
	Quest Diagnostics, Inc.		9,984		1,412,536



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Franklin U.S. Large Cap Multifactor Index ETF (continued)



		Shares		Value

	Health Care (continued)
a	Regeneron Pharmaceuticals, Inc.		9,984	$	8,203,553
	Stryker Corp.		14,144		4,037,688
a	United Therapeutics Corp.		4,160		931,674
	UnitedHealth Group, Inc.		25,376		11,992,444
a	Vertex Pharmaceuticals, Inc.		23,712		7,470,940
	Viatris, Inc.		74,048		712,342

					166,664,342

	Industrials 6.8%
	AGCO Corp.		5,824		787,405
	Allison Transmission Holdings, Inc.		17,472		790,433
a	Builders FirstSource, Inc.		14,560		1,292,637
	BWX Technologies, Inc.		13,728		865,413
	Caterpillar, Inc.		22,048		5,045,464
a	Clean Harbors, Inc.		6,240		889,574
a	Copa Holdings SA, Class A		9,568		883,605
a	Copart, Inc.		17,472		1,314,069
	Crane Holdings Co.		7,072		802,672
	Cummins, Inc.		10,816		2,583,726
	Donaldson Co., Inc.		12,896		842,625
	Hubbell, Inc., Class B		4,576		1,113,387
	Illinois Tool Works, Inc.		12,896		3,139,531
	Knight-Swift Transportation Holdings, Inc.		14,560		823,805
	Landstar System, Inc.		4,576		820,294
	Leidos Holdings, Inc.		11,232		1,034,018
	Lincoln Electric Holdings, Inc.		4,992		844,147
	Lockheed Martin Corp.		22,480		10,626,971
	MSC Industrial Direct Co., Inc., Class A		9,984		838,656
	nVent Electric PLC		17,888		768,111
	Old Dominion Freight Line, Inc.		4,160		1,417,894
	Owens Corning		9,568		916,614
	PACCAR, Inc.		50,336		3,684,595
	Rollins, Inc.		23,296		874,299
	Ryder System, Inc.		8,320		742,477
	Schneider National, Inc., Class B		29,536		790,088
	Snap-on, Inc.		4,576		1,129,769
	Toro Co.		8,736		971,094
	U-Haul Holding Co.		12,896		769,246
	United Rentals, Inc.		3,328		1,317,089
	Valmont Industries, Inc.		2,496		796,923
	Waste Management, Inc.		30,784		5,023,025
	Watsco, Inc.		2,496		794,127
	WW Grainger, Inc.		4,490		3,092,757

					58,426,540

	Information Technology 36.3%
a	Alphabet, Inc., Class C		112,736		11,724,544
	Amdocs Ltd.		12,480		1,198,454
	Amphenol Corp., Class A		49,088		4,011,471
	Analog Devices, Inc.		22,880		4,512,394
	Apple, Inc.		393,536		64,894,086
	Applied Materials, Inc.		74,464		9,146,413
a	Arista Networks, Inc.		22,880		3,840,637
a	Arrow Electronics, Inc.		7,072		883,081
	Avnet, Inc.		18,304		827,341
	Broadcom, Inc.		22,319		14,318,531
a	CACI International, Inc., Class A		2,912		862,767
a	Cadence Design Systems, Inc.		23,712		4,981,654

	CDW Corp.		5,824		1,135,039



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Franklin U.S. Large Cap Multifactor Index ETF (continued)



		Shares		Value

	Information Technology (continued)
a	Cirrus Logic, Inc.		9,152	$	1,001,046
	Cisco Systems, Inc.		256,256		13,395,782
	Corning, Inc.		62,400		2,201,472
	Dell Technologies, Inc., Class C		23,712		953,460
	Dolby Laboratories, Inc., Class A		9,984		852,833
a	Fair Isaac Corp.		2,080		1,461,595
a	Fortinet, Inc.		58,240		3,870,630
a	Gartner, Inc.		5,824		1,897,285
	Hewlett Packard Enterprise Co.		127,712		2,034,452
	HP, Inc.		96,928		2,844,837
	International Business Machines Corp.		79,872		10,470,421
	Jabil, Inc.		13,728		1,210,261
	KLA Corp.		13,312		5,313,751
	Lam Research Corp.		11,709		6,207,175
a	Lattice Semiconductor Corp.		13,312		1,271,296
a	Manhattan Associates, Inc.		6,240		966,264
	Mastercard, Inc., Class A		41,184		14,966,678
	Microchip Technology, Inc.		35,776		2,997,313
	Microsoft Corp.		188,448		54,329,558
	Motorola Solutions, Inc.		12,064		3,451,872
	National Instruments Corp.		17,888		937,510
	NetApp, Inc.		19,552		1,248,395
	NVIDIA Corp.		47,424		13,172,965
a	ON Semiconductor Corp.		39,936		3,287,532
	Oracle Corp.		99,008		9,199,823
	QUALCOMM, Inc.		91,936		11,729,195
	Science Applications International Corp.		7,488		804,661
	Skyworks Solutions, Inc.		7,488		883,434
a	Synopsys, Inc.		12,064		4,659,720
	Texas Instruments, Inc.		66,976		12,458,206

					312,415,834

	Materials 1.9%
	Ardagh Metal Packaging SA		171,392		699,279
	CF Industries Holdings, Inc.		19,552		1,417,324
	LyondellBasell Industries NV, Class A		22,464		2,109,145
	Mosaic Co.		31,200		1,431,456
	Nucor Corp.		25,376		3,919,831
	Packaging Corp. of America		7,072		981,806
	Reliance Steel & Aluminum Co.		5,824		1,495,254
	Silgan Holdings, Inc.		15,392		826,089
	Southern Copper Corp.		11,648		888,160
	Steel Dynamics, Inc.		17,472		1,975,384
	U.S. Steel Corp.		27,872		727,459

					16,471,187

	Real Estate 2.0%
	EPR Properties		20,384		776,630
	Gaming & Leisure Properties, Inc.		24,128		1,256,104
	National Retail Properties, Inc.		18,720		826,488
	Omega Healthcare Investors, Inc.		30,784		843,789
	Public Storage		13,728		4,147,778
	Realty Income Corp.		51,168		3,239,958
	Simon Property Group, Inc.		14,560		1,630,283
	VICI Properties, Inc.		96,512		3,148,222
	WP Carey, Inc.		18,720		1,449,864

					17,319,116



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Franklin U.S. Large Cap Multifactor Index ETF (continued)



	Shares		Value

Utilities 1.2%
Atmos Energy Corp.		9,568	$	1,075,061
Consolidated Edison, Inc.		29,120		2,785,910
National Fuel Gas Co.		14,560		840,694
NRG Energy, Inc.		25,376		870,143
OGE Energy Corp.		23,296		877,327
Pinnacle West Capital Corp.		11,232		890,024
Sempra Energy		17,888		2,703,950

				10,043,109


Total Common Stocks (Cost $822,305,052)				858,897,499


Total Investments (Cost $822,305,052) 99.8%				858,897,499

Other Assets, less Liabilities 0.2%				1,521,413


Net Assets 100.0%			$	860,418,912

^aNon-income producing.

At March 31, 2023, the Fund had the following futures contracts outstanding. See Note 1(c).

Futures Contracts

Description

Type

Number of
Contracts

Notional
Amount*

Expiration
Date

Value/Unrealized
Appreciation
(Depreciation)

Equity Contracts

S&P 500 E-Mini

Long

$827,550

6/16/23

$49,473

*As of year end.

See Note 7 regarding other derivative information.

See Abbreviations on page 120.



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FRANKLIN TEMPLETON ETF TRUST

Financial Highlights

Franklin U.S. Mid Cap Multifactor Index ETF^a


	Year Ended March 31,

	2023			2022			2021			2020			2019

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

Net asset value, beginning of year		$44.90			$40.84			$24.94			$30.32			$27.70

Income from investment operations^b:

Net investment income^c		0.71			0.54			0.45			0.50			0.47

Net realized and unrealized gains (losses)		(1.73	)		4.03			15.86			(5.41	)		2.53

Total from investment operations		(1.02	)		4.57			16.31			(4.91	)		3.00

Less distributions from net investment income		(0.57	)		(0.51	)		(0.41	)		(0.47	)		(0.38	)

Net asset value, end of year		$43.31			$44.90			$40.84			$24.94			$30.32

Total return^d		(2.17)%			11.18%			65.69%			(16.50)%			10.92%

Ratios to average net assets^e

Expenses before waiver and payments by affiliates		0.30%			0.30%			0.30%			0.30%			0.30%

Expenses net of waiver and payments by affiliates		0.30%			0.30%			0.30%			0.30%			0.30%

Net investment income		1.69%			1.21%			1.30%			1.60%			1.65%

Supplemental data

Net assets, end of year (000’s)		$166,748			$62,855			$36,759			$13,718			$10,612

Portfolio turnover rate^f		24.07%^g			22.76%^g			25.02%^g			24.20%^g			23.49%

^aEffective August 1, 2022, Formerly, Franklin LibertyQ U.S. Mid Cap Equity ETF was renamed Franklin U.S. Mid Cap Multifactor Index ETF.

^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:			24.07%				22.76%				25.02%				24.20%				—



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FRANKLIN TEMPLETON ETF TRUST

Schedule of Investments, March 31, 2023

Franklin U.S. Mid Cap Multifactor Index ETF



		Shares		Value

	Common Stocks 99.9%
	Communication Services 2.2%
	Electronic Arts, Inc.		13,013	$	1,567,416
	Lumen Technologies, Inc.		72,765		192,827
	Omnicom Group, Inc.		16,632		1,569,063
a	Playtika Holding Corp.		7,469		84,101
	World Wrestling Entertainment, Inc., Class A		3,542		323,243

					3,736,650

	Consumer Discretionary 17.0%
	Advance Auto Parts, Inc.		4,851		589,930
a	AutoNation, Inc.		2,849		382,792
a	AutoZone, Inc.		658		1,617,463
	Bath & Body Works, Inc.		16,093		588,682
	Best Buy Co., Inc.		18,095		1,416,296
	Brunswick Corp.		4,774		391,468
	Carter’s, Inc.		3,234		232,589
	Choice Hotels International, Inc.		1,617		189,496
	Columbia Sportswear Co.		2,541		229,300
a	Deckers Outdoor Corp.		847		380,769
	Dick’s Sporting Goods, Inc.		4,851		688,308
a	Dollar Tree, Inc.		11,319		1,624,842
	DR Horton, Inc.		15,631		1,526,992
	Gap, Inc.		9,163		91,997
	Garmin Ltd.		11,319		1,142,314
	Genuine Parts Co.		9,317		1,558,827
	H&R Block, Inc.		14,553		512,993
	Hanesbrands, Inc.		29,491		155,123
	Hasbro, Inc.		9,394		504,364
	Kohl’s Corp.		6,776		159,507
a	Leslie’s, Inc.		9,317		102,580
	LKQ Corp.		17,094		970,255
	Macy’s, Inc.		17,094		298,974
a	Mattel, Inc.		22,407		412,513
	Newell Brands, Inc.		24,101		299,816
	Nordstrom, Inc.		6,468		105,234
a	Ollie’s Bargain Outlet Holdings, Inc.		4,235		245,376
a	O’Reilly Automotive, Inc.		1,969		1,671,642
	Penske Automotive Group, Inc.		2,156		305,742
	Polaris, Inc.		4,466		494,074
	Pool Corp.		3,080		1,054,715
	PulteGroup, Inc.		11,627		677,622
	Ralph Lauren Corp.		2,387		278,491
a	Skechers USA, Inc., Class A		6,853		325,655
	Tapestry, Inc.		20,482		882,979
	Tempur Sealy International, Inc.		15,862		626,390
	Thor Industries, Inc.		2,772		220,762
	Tractor Supply Co.		7,546		1,773,612
a	Ulta Beauty, Inc.		2,772		1,512,597
	VF Corp.		17,325		396,916
a	Victoria’s Secret & Co.		6,699		228,771
	Whirlpool Corp.		4,004		528,608
	Williams-Sonoma, Inc.		6,622		805,633
a	YETI Holdings, Inc.		5,236		209,440

					28,412,449

	Consumer Staples 6.9%
	Albertsons Cos., Inc., Class A		14,399		299,211
a	BJ’s Wholesale Club Holdings, Inc.		7,854		597,454



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Franklin U.S. Mid Cap Multifactor Index ETF (continued)



		Shares		Value

	Consumer Staples (continued)
	Campbell Soup Co.		14,553	$	800,124
	Casey’s General Stores, Inc.		2,233		483,355
	Church & Dwight Co., Inc.		17,710		1,565,741
	Clorox Co.		10,318		1,632,720
	Flowers Foods, Inc.		17,171		470,657
	Hershey Co.		7,238		1,841,420
	Kellogg Co.		18,865		1,263,200
	Kroger Co.		34,650		1,710,671
	Tyson Foods, Inc., Class A		13,013		771,931

					11,436,484

	Energy 4.5%
	Antero Midstream Corp.		25,333		265,743
	Chesapeake Energy Corp.		7,546		573,798
	Coterra Energy, Inc., Class A		28,875		708,592
	Devon Energy Corp.		23,716		1,200,267
	Diamondback Energy, Inc.		5,698		770,199
	HF Sinclair Corp.		4,620		223,516
	Ovintiv, Inc.		14,784		533,407
	PDC Energy, Inc.		4,928		316,279
	Phillips 66		15,400		1,561,252
	Range Resources Corp.		13,321		352,607
a	Southwestern Energy Co.		58,982		294,910
	Texas Pacific Land Corp.		373		634,480

					7,435,050

	Financials 8.7%
	Affiliated Managers Group, Inc.		3,234		460,586
	Allstate Corp.		12,705		1,407,841
	Ally Financial, Inc.		25,872		659,477
	Assured Guaranty Ltd.		3,388		170,315
	Brown & Brown, Inc.		17,941		1,030,172
	Cincinnati Financial Corp.		12,320		1,380,826
	CNA Financial Corp.		2,002		78,138
a,b	Credit Acceptance Corp.		539		235,026
	Discover Financial Services		15,708		1,552,579
	Erie Indemnity Co., Class A		1,848		428,108
	Evercore, Inc., Class A		2,849		328,718
	Everest Re Group Ltd.		2,002		716,756
	First American Financial Corp.		8,393		467,154
	Globe Life, Inc.		7,161		787,853
	Hanover Insurance Group, Inc.		2,772		356,202
	Janus Henderson Group PLC		9,702		258,461
	MGIC Investment Corp.		18,249		244,902
	OneMain Holdings, Inc.		4,389		162,744
	Prosperity Bancshares, Inc.		6,468		397,911
	Regions Financial Corp.		47,663		884,625
	Reinsurance Group of America, Inc.		3,465		460,013
	SEI Investments Co.		9,625		553,919
	Synchrony Financial		36,267		1,054,644
	Unum Group		10,549		417,319

					14,494,289

	Health Care 8.4%
a	Acadia Healthcare Co., Inc.		5,005		361,611
	Chemed Corp.		1,017		546,892
	Encompass Health Corp.		9,317		504,050
a	IDEXX Laboratories, Inc.		4,004		2,002,320
a	Incyte Corp.		12,397		895,931



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Franklin U.S. Mid Cap Multifactor Index ETF (continued)



		Shares		Value

	Health Care (continued)
a	Maravai LifeSciences Holdings, Inc., Class A		5,544	$	77,671
a	Mettler-Toledo International, Inc.		1,161		1,776,574
a	Neurocrine Biosciences, Inc.		7,392		748,218
	Organon & Co.		17,017		400,240
a	QuidelOrtho Corp.		3,465		308,697
	ResMed, Inc.		7,392		1,618,774
	Royalty Pharma PLC, Class A		24,178		871,133
a	Tenet Healthcare Corp.		5,313		315,698
a	United Therapeutics Corp.		3,080		689,797
	Universal Health Services, Inc., Class B		5,236		665,496
	Viatris, Inc.		64,372		619,259
a	Waters Corp.		4,928		1,525,857

					13,928,218

	Industrials 18.7%
	A O Smith Corp.		8,008		553,753
	Allegion PLC		6,930		739,639
	Allison Transmission Holdings, Inc.		8,008		362,282
a	Builders FirstSource, Inc.		10,703		950,212
	Carrier Global Corp.		38,500		1,761,375
	CH Robinson Worldwide, Inc.		9,779		971,739
	Cintas Corp.		3,696		1,710,065
	Curtiss-Wright Corp.		2,618		461,449
	Donaldson Co., Inc.		9,471		618,835
	Dover Corp.		11,319		1,719,809
	Esab Corp.		2,541		150,097
	Expeditors International of Washington, Inc.		13,013		1,432,992
	Fastenal Co.		33,110		1,785,953
	Fortune Brands Innovations, Inc.		8,932		524,576
	Graco, Inc.		12,859		938,836
	Landstar System, Inc.		2,926		524,515
	Lennox International, Inc.		2,618		657,851
	Lincoln Electric Holdings, Inc.		4,774		807,283
	ManpowerGroup, Inc.		4,081		336,805
	Masco Corp.		11,242		558,952
a	Masterbrand, Inc.		9,471		76,147
	MSC Industrial Direct Co., Inc., Class A		3,927		329,868
	Nordson Corp.		4,004		889,929
	Old Dominion Freight Line, Inc.		5,621		1,915,862
	Otis Worldwide Corp.		21,868		1,845,659
	Robert Half International, Inc.		8,316		670,020
	Rollins, Inc.		20,559		771,579
a	RXO, Inc.		3,388		66,540
	Ryder System, Inc.		3,157		281,731
	Schneider National, Inc., Class B		4,697		125,645
	Snap-on, Inc.		4,697		1,159,642
	Toro Co.		7,469		830,254
	Trane Technologies PLC		9,548		1,756,641
	Watsco, Inc.		2,772		881,940
	WW Grainger, Inc.		2,829		1,948,644

					31,117,119

	Information Technology 18.8%
a	Akamai Technologies, Inc.		10,087		789,812
	Amdocs Ltd.		9,548		916,894
a	Arista Networks, Inc.		12,243		2,055,110
	Booz Allen Hamilton Holding Corp.		13,090		1,213,312
a	Cadence Design Systems, Inc.		9,933		2,086,824
	CDW Corp.		9,009		1,755,764



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SCHEDULE OF INVESTMENTS

Franklin U.S. Mid Cap Multifactor Index ETF (continued)



		Shares		Value

	Information Technology (continued)
	Dolby Laboratories, Inc., Class A		4,389	$	374,908
a	F5, Inc.		4,312		628,215
a	Fair Isaac Corp.		1,913		1,344,246
a	Fortinet, Inc.		32,109		2,133,964
	Gen Digital, Inc.		36,498		626,306
	Hewlett Packard Enterprise Co.		81,158		1,292,847
	HP, Inc.		53,823		1,579,705
	Juniper Networks, Inc.		23,254		800,403
a	Manhattan Associates, Inc.		4,389		679,637
	Monolithic Power Systems, Inc.		3,080		1,541,663
	Motorola Solutions, Inc.		6,237		1,784,593
	National Instruments Corp.		9,471		496,375
	NetApp, Inc.		20,020		1,278,277
	Paychex, Inc.		13,783		1,579,394
a	Paycom Software, Inc.		3,311		1,006,577
a	Synopsys, Inc.		5,005		1,933,181
	Teradyne, Inc.		10,703		1,150,680
a	VeriSign, Inc.		7,469		1,578,424
	Vontier Corp.		12,782		349,460
	Western Union Co.		36,575		407,811

					31,384,382

	Materials 7.1%
	Ardagh Metal Packaging SA		4,774		19,478
	Avery Dennison Corp.		6,545		1,171,097
	CF Industries Holdings, Inc.		11,627		842,841
	Chemours Co.		7,469		223,622
	Huntsman Corp.		8,778		240,166
	International Paper Co.		22,869		824,656
	Louisiana-Pacific Corp.		5,852		317,237
	LyondellBasell Industries NV, Class A		16,401		1,539,890
	Nucor Corp.		11,396		1,760,340
	Packaging Corp. of America		4,389		609,325
	Reliance Steel & Aluminum Co.		4,774		1,225,677
	RPM International, Inc.		8,855		772,510
	Sealed Air Corp.		10,087		463,094
	Sonoco Products Co.		6,930		422,730
	Steel Dynamics, Inc.		12,320		1,392,899

					11,825,562

	Real Estate 3.1%
	AvalonBay Communities, Inc.		8,547		1,436,409
	Camden Property Trust		6,699		702,323
	Extra Space Storage, Inc.		8,932		1,455,291
	First Industrial Realty Trust, Inc.		8,855		471,086
	Healthcare Realty Trust, Inc.		19,481		376,568
	Highwoods Properties, Inc.		8,316		192,848
	National Retail Properties, Inc.		13,475		594,921

					5,229,446

	Utilities 4.5%
	Ameren Corp.		17,171		1,483,403
	American Water Works Co., Inc.		11,242		1,646,841
	Consolidated Edison, Inc.		17,402		1,664,849
	FirstEnergy Corp.		37,730		1,511,464
	National Fuel Gas Co.		5,698		329,002
	NRG Energy, Inc.		16,401		562,390



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Franklin U.S. Mid Cap Multifactor Index ETF (continued)



		Shares		Value

	Utilities (continued)

	UGI Corp.		9,779	$	339,918

					7,537,867


	Total Common Stocks (Cost $159,917,550)				166,537,516


	Total Investments before Short-Term Investments (Cost $159,917,550)				166,537,516


	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, 4.47%	$	130,050		130,050


	Total Short-Term Investments (Cost $130,050)				130,050


	Total Investments (Cost $160,047,600) 100.0%				166,667,566

	Other Assets, less Liabilities 0.0%				80,007


	Net Assets 100.0%			$	166,747,573

^aNon-income producing.

^bA portion or all of the security is on loan at March 31, 2023.

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

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

See Abbreviations on page 120.



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Financial Highlights

Franklin U.S. Small Cap Multifactor Index ETF^a


	Year Ended March 31,

	2023			2022			2021			2020			2019

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

Net asset value, beginning of year		$36.16			$36.53			$20.48			$27.66			$26.66

Income from investment operations^b:

Net investment income^c		0.54			0.38			0.28			0.39			0.47

Net realized and unrealized gains (losses)		(2.10	)		(0.36	)		16.15			(7.15	)		0.87

Total from investment operations		(1.56	)		0.02			16.43			(6.76	)		1.34

Less distributions from net investment income		(0.50	)		(0.39	)		(0.38	)		(0.42	)		(0.34	)

Net asset value, end of year		$34.10			$36.16			$36.53			$20.48			$27.66

Total return^d		(4.21)%			0.02%			80.74%			(24.83)%			5.05%

Ratios to average net assets^e

Expenses before waiver and payments by affiliates		0.35%			0.35%			0.35%			0.35%			0.35%

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

Net investment income		1.60%			1.00%			0.99%			1.41%			1.69%

Supplemental data

Net assets, end of year (000’s)		$17,048			$16,273			$14,613			$13,310			$17,979

Portfolio turnover rate^f		28.79%^g			27.64%^g			34.77%^g			23.83%^g			22.17%

^aEffective August 1, 2022, Formerly, Franklin LibertyQ U.S. Small Cap Equity ETF was renamed Franklin U.S. Small Cap Multifactor Index ETF.

^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:			28.79%				27.64%				34.77%				23.83%				—



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FRANKLIN TEMPLETON ETF TRUST

Schedule of Investments, March 31, 2023

Franklin U.S. Small Cap Multifactor Index ETF



		Shares		Value

	Common Stocks 100.0%
	Communication Services 2.5%
a	AMC Networks, Inc., Class A		800	$	14,064
	Cogent Communications Holdings, Inc.		1,080		68,817
a	IDT Corp., Class B		370		12,609
	John Wiley & Sons, Inc., Class A		1,070		41,484
a	Liberty Latin America Ltd., Class A		960		7,978
a	Liberty Latin America Ltd., Class C		3,490		28,827
a	Ooma, Inc.		470		5,880
a	Playstudios, Inc.		910		3,358
	Scholastic Corp.		690		23,612
	Sinclair Broadcast Group, Inc., Class A		680		11,669
	TEGNA, Inc.		5,380		90,976
	Telephone & Data Systems, Inc.		2,700		28,377
a	Thryv Holdings, Inc.		460		10,607
a	U.S. Cellular Corp.		330		6,841
a	Yelp, Inc.		1,970		60,479
a	ZipRecruiter, Inc., Class A		870		13,868

					429,446

	Consumer Discretionary 19.3%
a	1-800- Flowers.com, Inc., Class A		690		7,935
a	Abercrombie & Fitch Co., Class A		1,510		41,902
	Academy Sports & Outdoors, Inc.		1,820		118,755
	Acushnet Holdings Corp.		1,030		52,468
a	Adtalem Global Education, Inc.		510		19,696
	American Eagle Outfitters, Inc.		3,940		52,954
a	American Public Education, Inc.		390		2,114
a	America’s Car-Mart, Inc.		150		11,882
a	Asbury Automotive Group, Inc.		530		111,300
	Big 5 Sporting Goods Corp.		580		4,460
	Big Lots, Inc.		950		10,412
	Bloomin’ Brands, Inc.		2,740		70,281
	Bluegreen Vacations Holding Corp.		130		3,559
	Buckle, Inc.		980		34,976
	Build-A-Bear Workshop, Inc.		290		6,740
	Caleres, Inc.		730		15,790
	Camping World Holdings, Inc., Class A		930		19,409
a	CarParts.com, Inc.		1,010		5,393
	Cato Corp., Class A		430		3,801
a	Century Casinos, Inc.		570		4,178
	Cheesecake Factory, Inc.		1,490		52,224
a	Chico’s FAS, Inc.		1,380		7,590
a	Children’s Place, Inc.		240		9,660
a	Chuy’s Holdings, Inc.		380		13,623
a	Citi Trends, Inc.		230		4,375
a	Container Store Group, Inc.		890		3,053
	Cracker Barrel Old Country Store, Inc.		760		86,336
a	Destination XL Group, Inc.		1,190		6,557
	Dillard’s, Inc., Class A		140		43,075
a	Duluth Holdings, Inc., Class B		370		2,361
	Ethan Allen Interiors, Inc.		750		20,595
	Foot Locker, Inc.		1,550		61,519
a	Fossil Group, Inc.		830		2,656
	Franchise Group, Inc.		590		16,078
a	Frontdoor, Inc.		1,520		42,378
a	Funko, Inc., Class A		630		5,941
a	Genesco, Inc.		360		13,277
a	G-III Apparel Group Ltd.		800		12,440



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Franklin U.S. Small Cap Multifactor Index ETF (continued)



		Shares		Value

	Consumer Discretionary (continued)
	Group 1 Automotive, Inc.		390	$	88,304
	Guess?, Inc.		600		11,676
	Haverty Furniture Cos., Inc.		510		16,274
a	Helen of Troy Ltd.		560		53,295
	Hibbett, Inc.		400		23,592
	Installed Building Products, Inc.		560		63,857
	Jack in the Box, Inc.		350		30,656
	JOANN, Inc.		270		429
	Johnson Outdoors, Inc., Class A		150		9,452
	Kontoor Brands, Inc.		1,620		78,392
	La-Z-Boy, Inc.		1,170		34,024
	LCI Industries		620		68,119
a	LGI Homes, Inc.		480		54,734
	Lifetime Brands, Inc.		330		1,940
a	Liquidity Services, Inc.		650		8,561
a	LL Flooring Holdings, Inc.		680		2,584
a	Lovesac Co.		310		8,959
a	Malibu Boats, Inc., Class A		470		26,532
	Marine Products Corp.		231		3,047
a	MarineMax, Inc.		510		14,663
a	MasterCraft Boat Holdings, Inc.		400		12,172
	MDC Holdings, Inc.		1,050		40,813
a	Modine Manufacturing Co.		570		13,139
	Monarch Casino & Resort, Inc.		260		19,279
	Monro, Inc.		740		36,578
	Movado Group, Inc.		490		14,097
	Murphy USA, Inc.		600		154,830
a	National Vision Holdings, Inc.		1,850		34,854
a	ODP Corp.		1,060		47,679
a	ONE Group Hospitality, Inc.		570		4,617
a	OneWater Marine, Inc., Class A		280		7,832
	Oxford Industries, Inc.		460		48,571
	Papa John’s International, Inc.		780		58,445
	Patrick Industries, Inc.		410		28,212
a	Perdoceo Education Corp.		1,960		26,323
	PetMed Express, Inc.		550		8,932
a	Portillo’s, Inc., Class A		560		11,967
a	Revolve Group, Inc.		960		25,248
	Rocky Brands, Inc.		150		3,461
a	Sally Beauty Holdings, Inc.		3,250		50,635
	Shoe Carnival, Inc.		460		11,799
	Shutterstock, Inc.		620		45,012
	Signet Jewelers Ltd.		1,220		94,892
a	Sleep Number Corp.		520		15,813
	Smith & Wesson Brands, Inc.		1,370		16,865
	Sonic Automotive, Inc., Class A		550		29,887
a	Sonos, Inc.		2,870		56,309
a	Sportsman’s Warehouse Holdings, Inc.		1,280		10,854
	Standard Motor Products, Inc.		610		22,515
	Steven Madden Ltd.		2,110		75,960
	Strategic Education, Inc.		600		53,898
a	Stride, Inc.		1,020		40,035
	Sturm Ruger & Co., Inc.		520		29,869
	Superior Group of Cos., Inc.		320		2,518
	Texas Roadhouse, Inc.		1,790		193,427
a	Tile Shop Holdings, Inc.		740		3,471
a	Tilly’s, Inc., Class A		630		4,857
a	Torrid Holdings, Inc.		200		872
a	Tupperware Brands Corp.		1,460		3,650



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SCHEDULE OF INVESTMENTS

Franklin U.S. Small Cap Multifactor Index ETF (continued)



		Shares		Value

	Consumer Discretionary (continued)
a	Universal Technical Institute, Inc.		640	$	4,723
	Upbound Group, Inc.		1,580		38,726
a	Vista Outdoor, Inc.		1,290		35,746
	Weyco Group, Inc.		130		3,289
	Wingstop, Inc.		770		141,357
	Winmark Corp.		80		25,634
	Wolverine World Wide, Inc.		1,940		33,077
a	XPEL, Inc.		480		32,616
a	Zumiez, Inc.		390		7,192

					3,283,380

	Consumer Staples 7.0%
	Alico, Inc.		120		2,904
a	BellRing Brands, Inc.		2,360		80,240
	Cal-Maine Foods, Inc.		450		27,401
a	Central Garden & Pet Co.		240		9,854
a	Central Garden & Pet Co., Class A		1,000		39,070
	Coca-Cola Consolidated, Inc.		130		69,560
	Edgewell Personal Care Co.		1,060		44,965
a	elf Beauty, Inc.		930		76,585
	Ingles Markets, Inc., Class A		430		38,141
	Inter Parfums, Inc.		500		71,120
	J & J Snack Foods Corp.		180		26,680
	John B Sanfilippo & Son, Inc.		230		22,292
	Lancaster Colony Corp.		480		97,382
	Medifast, Inc.		360		37,321
a	National Beverage Corp.		710		37,431
	Natural Grocers by Vitamin Cottage, Inc.		275		3,231
	Nu Skin Enterprises, Inc., Class A		1,480		58,179
	PriceSmart, Inc.		610		43,603
	SpartanNash Co.		1,070		26,536
a	Sprouts Farmers Market, Inc.		2,890		101,237
	Tootsie Roll Industries, Inc.		412		18,503
a	United Natural Foods, Inc.		1,310		34,519
	Universal Corp.		670		35,436
a	USANA Health Sciences, Inc.		310		19,499
	Vector Group Ltd.		3,930		47,199
	Village Super Market, Inc., Class A		290		6,635
	WD-40 Co.		410		73,001
	Weis Markets, Inc.		510		43,182

					1,191,706

	Energy 2.8%
	Arch Resources, Inc.		280		36,809
	California Resources Corp.		1,500		57,750
	Chord Energy Corp.		800		107,680
	Comstock Resources, Inc.		1,120		12,085
	CONSOL Energy, Inc.		910		53,026
	Crescent Energy Co., Class A		480		5,429
	CVR Energy, Inc.		340		11,145
	Magnolia Oil & Gas Corp., Class A		3,270		71,547
a	Peabody Energy Corp.		2,090		53,504
	Ranger Oil Corp., Class A		220		8,985
	SFL Corp. Ltd.		2,640		25,080
a	SilverBow Resources, Inc.		230		5,255
	Sitio Royalties Corp., Class A		1,320		29,832
	VAALCO Energy, Inc.		1,730		7,837

					485,964



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SCHEDULE OF INVESTMENTS

Franklin U.S. Small Cap Multifactor Index ETF (continued)



		Shares		Value

	Financials 9.9%
	1st Source Corp.		420	$	18,123
	Arrow Financial Corp.		360		8,968
	Associated Banc-Corp		3,750		67,425
	Banco Latinoamericano de Comercio Exterior SA, Class E		800		13,904
	Blackstone Mortgage Trust, Inc., Class A		4,200		74,970
	Brookline Bancorp, Inc.		1,640		17,220
	City Holding Co.		340		30,899
	Community Trust Bancorp, Inc.		340		12,903
	Compass Diversified Holdings		1,060		20,225
a	Consumer Portfolio Services, Inc.		280		2,993
	CVB Financial Corp.		2,560		42,701
	Donegal Group, Inc., Class A		370		5,654
a	Donnelley Financial Solutions, Inc.		630		25,742
	Dynex Capital, Inc.		740		8,969
	Enact Holdings, Inc.		610		13,945
	Enterprise Bancorp, Inc.		200		6,292
	Essent Group Ltd.		2,540		101,727
a	EZCORP, Inc., Class A		1,170		10,062
	Farmers National Banc Corp.		700		8,848
	Financial Institutions, Inc.		320		6,170
	First Business Financial Services, Inc.		150		4,576
	First Community Bankshares, Inc.		330		8,266
	First Merchants Corp.		1,190		39,210
	First of Long Island Corp.		530		7,155
	GCM Grosvenor, Inc., Class A		790		6,170
a	Genworth Financial, Inc., Class A		11,890		59,688
	German American Bancorp, Inc.		650		21,690
	Guaranty Bancshares, Inc.		180		5,017
	Hope Bancorp, Inc.		2,520		24,746
	Houlihan Lokey, Inc.		1,330		116,362
	Invesco Mortgage Capital, Inc.		710		7,874
	Investors Title Co.		30		4,530
	Jackson Financial, Inc., Class A		1,450		54,244
	Kinsale Capital Group, Inc.		510		153,076
	Lakeland Bancorp, Inc.		1,490		23,304
	Macatawa Bank Corp.		490		5,008
a	MarketWise, Inc.		230		425
	Mercury General Corp.		480		15,235
a	Mr Cooper Group, Inc.		1,210		49,574
	National Western Life Group, Inc., Class A		70		16,983
	Navient Corp.		2,150		34,378
	NBT Bancorp, Inc.		1,110		37,418
a	NerdWallet, Inc., Class A		550		8,899
	Nexpoint Real Estate Finance, Inc.		140		2,194
	Northfield Bancorp, Inc.		1,200		14,136
	Northwest Bancshares, Inc.		2,960		35,609
	OceanFirst Financial Corp.		1,170		21,622
	Parke Bancorp, Inc.		200		3,556
	Peoples Bancorp, Inc.		690		17,767
	Peoples Financial Services Corp.		140		6,069
	Provident Bancorp, Inc.		170		1,163
	RLI Corp.		980		130,252
	Safety Insurance Group, Inc.		340		25,337
	Silvercrest Asset Management Group, Inc., Class A		170		3,091
	Southern Missouri Bancorp, Inc.		190		7,108
	Stewart Information Services Corp.		610		24,613
	Stock Yards Bancorp, Inc.		340		18,748
	Tompkins Financial Corp.		360		23,836
	TPG RE Finance Trust, Inc.		1,800		13,068



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SCHEDULE OF INVESTMENTS

Franklin U.S. Small Cap Multifactor Index ETF (continued)



		Shares		Value

	Financials (continued)
a	Trean Insurance Group, Inc.		300	$	1,836
	TriCo Bancshares		570		23,706

	TrustCo Bank Corp. NY		450		14,373
	UMB Financial Corp.		920		53,102
	Victory Capital Holdings, Inc., Class A		330		9,659
	West BanCorp, Inc.		390		7,125
	Westamerica BanCorp		600		26,580
a	World Acceptance Corp.		100		8,329

					1,694,447

	Health Care 7.5%
a	Alkermes PLC		2,990		84,288
a	AMN Healthcare Services, Inc.		1,270		105,359
a	AtriCure, Inc.		1,060		43,937
	Atrion Corp.		30		18,837
a	Bioventus, Inc., Class A		570		610
a	Cano Health, Inc.		3,300		3,003
a	Catalyst Pharmaceuticals, Inc.		2,410		39,958
a	Community Health Systems, Inc.		3,440		16,856
a	Computer Programs & Systems, Inc.		300		9,060
	CONMED Corp.		680		70,625
a	Corcept Therapeutics, Inc.		2,440		52,850
a	CorVel Corp.		210		39,959
a	Cross Country Healthcare, Inc.		970		21,650
a	Eagle Pharmaceuticals, Inc.		290		8,227
	Embecta Corp.		1,350		37,962
a	Enanta Pharmaceuticals, Inc.		440		17,794
a	Figs, Inc., Class A		2,460		15,227
a	Inari Medical, Inc.		940		58,036
a	Innoviva, Inc.		1,770		19,912
a	Intercept Pharmaceuticals, Inc.		470		6,312
	iRadimed Corp.		180		7,083
a	Ironwood Pharmaceuticals, Inc.		3,630		38,188
a	Joint Corp.		370		6,227
	LeMaitre Vascular, Inc.		450		23,161
a	Merit Medical Systems, Inc.		1,250		92,437
a	MiMedx Group, Inc.		2,230		7,604
	National HealthCare Corp.		340		19,744
	National Research Corp.		390		16,969
a	Neogen Corp.		4,050		75,006
a	Nevro Corp.		410		14,822
a	NextGen Healthcare, Inc.		1,040		18,106
a	Organogenesis Holdings, Inc.		1,590		3,387
a	Orthofix Medical, Inc.		430		7,203
	Patterson Cos., Inc.		2,390		63,980
a	Pediatrix Medical Group, Inc.		2,340		34,889
	Phibro Animal Health Corp., Class A		580		8,886
a	Prestige Consumer Healthcare, Inc.		1,260		78,914
	SIGA Technologies, Inc.		1,210		6,958
a	Tactile Systems Technology, Inc.		510		8,374
a	Treace Medical Concepts, Inc.		630		15,870
a	UFP Technologies, Inc.		80		10,387
a	Vanda Pharmaceuticals, Inc.		1,210		8,216
a	Vir Biotechnology, Inc.		1,370		31,880
a	Zynex, Inc.		610		7,320

					1,276,073



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SCHEDULE OF INVESTMENTS

Franklin U.S. Small Cap Multifactor Index ETF (continued)



		Shares		Value

	Industrials 22.9%
	ABM Industries, Inc.		1,470	$	66,062
	ACCO Brands Corp.		2,390		12,715
a	Air Transport Services Group, Inc.		1,300		27,079
	Alamo Group, Inc.		230		42,357
	Allied Motion Technologies, Inc.		340		13,141
	Applied Industrial Technologies, Inc.		1,090		154,922
a	Atkore, Inc.		960		134,861
	Barnes Group, Inc.		550		22,154
	Barrett Business Services, Inc.		130		11,523
a	BlueLinx Holdings, Inc.		220		14,951
	Boise Cascade Co.		1,050		66,413
	Brady Corp., Class A		1,410		75,759
	Brink’s Co.		960		64,128
a	Casella Waste Systems, Inc., Class A		1,100		90,926
a	Cimpress PLC		430		18,843
	Comfort Systems USA, Inc.		800		116,768
	CompX International, Inc.		44		796
a	Concrete Pumping Holdings, Inc.		320		2,176
	Costamare, Inc.		1,290		12,139
	Covenant Logistics Group, Inc.		320		11,334
	CRA International, Inc.		170		18,329
	CSW Industrials, Inc.		330		45,847
a	Daseke, Inc.		890		6,880
	Deluxe Corp.		1,160		18,560
a	Distribution Solutions Group, Inc.		130		5,910
a	DXP Enterprises, Inc.		350		9,422
	Eagle Bulk Shipping, Inc.		250		11,375
	EMCOR Group, Inc.		590		95,928
	Encore Wire Corp.		360		66,719
	Ennis, Inc.		700		14,763
	ESCO Technologies, Inc.		320		30,544
	Exponent, Inc.		1,370		136,575
	Forward Air Corp.		720		77,587
a	Franklin Covey Co.		320		12,310
	Franklin Electric Co., Inc.		1,170		110,097
	Global Industrial Co.		370		9,931
a	GMS, Inc.		1,080		62,521
	Gorman-Rupp Co.		420		10,500
	H&E Equipment Services, Inc.		740		32,730
	Healthcare Services Group, Inc.		1,850		25,660
	Heartland Express, Inc.		1,210		19,263
	Heidrick & Struggles International, Inc.		620		18,823
a	Heritage-Crystal Clean, Inc.		500		17,805
	Hillenbrand, Inc.		1,630		77,474
	HNI Corp.		1,220		33,965
a	Hudson Technologies, Inc.		790		6,897
a	IBEX Holdings Ltd.		190		4,636
	ICF International, Inc.		480		52,656
	Insperity, Inc.		920		111,826
	Interface, Inc.		1,320		10,718
	Kadant, Inc.		290		60,471
	Karat Packaging, Inc.		110		1,466
	Kelly Services, Inc., Class A		880		14,599
	Kforce, Inc.		660		41,738
	Kimball International, Inc., Class B		980		12,152
	Korn Ferry		1,680		86,923
a	Legalzoom.com, Inc.		2,050		19,229
	Luxfer Holdings PLC		680		11,492
	Marten Transport Ltd.		1,500		31,425



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FRANKLIN TEMPLETON ETF TRUST

SCHEDULE OF INVESTMENTS

Franklin U.S. Small Cap Multifactor Index ETF (continued)



		Shares		Value

	Industrials (continued)
	Matson, Inc.		940	$	56,090
	Matthews International Corp., Class A		600		21,636
	McGrath RentCorp		600		55,986
	Miller Industries, Inc.		240		8,484
	MillerKnoll, Inc.		1,860		38,037
	Mueller Industries, Inc.		1,270		93,320
	Mueller Water Products, Inc., Class A		3,360		46,838
	National Presto Industries, Inc.		120		8,651
	NL Industries, Inc.		230		1,394
a	NV5 Global, Inc.		310		32,231
	Omega Flex, Inc.		100		11,144
a	PAM Transportation Services, Inc.		190		5,440
	Pitney Bowes, Inc.		2,860		11,125
	Preformed Line Products Co.		80		10,243
a	Radiant Logistics, Inc.		1,010		6,626
	Resources Connection, Inc.		1,010		17,231
	Rush Enterprises, Inc., Class A		950		51,870
	Rush Enterprises, Inc., Class B		170		10,181
	Safe Bulkers, Inc.		1,310		4,834
a	Saia, Inc.		730		198,618
	Simpson Manufacturing Co., Inc.		1,110		121,700
	Standex International Corp.		290		35,508
	Steelcase, Inc., Class A		2,140		18,019
	Tennant Co.		540		37,006
a	Titan Machinery, Inc.		460		14,007
a	Transcat, Inc.		160		14,302
	Triton International Ltd.		1,490		94,198
a	TrueBlue, Inc.		720		12,816
	UFP Industries, Inc.		1,490		118,410
	UniFirst Corp.		350		61,681
	Universal Logistics Holdings, Inc.		220		6,413
a	V2X, Inc.		260		10,327
	Veritiv Corp.		330		44,596
	Watts Water Technologies, Inc., Class A		800		134,656
	Werner Enterprises, Inc.		2,100		95,529

					3,903,940

	Information Technology 12.2%
	A10 Networks, Inc.		1,970		30,515
	ADTRAN Holdings, Inc.		1,290		20,459
	American Software, Inc., Class A		720		9,079
a	Appfolio, Inc., Class A		460		57,261
a	Aviat Networks, Inc.		240		8,270
a	Avid Technology, Inc.		890		28,462
	Badger Meter, Inc.		760		92,583
	Belden, Inc.		480		41,650
a	Blackbaud, Inc.		980		67,914
a	Brightcove, Inc.		940		4,183
a	Calix, Inc.		1,290		69,131
a	Cambium Networks Corp.		270		4,784
	Cass Information Systems, Inc.		160		6,930
a	Clearfield, Inc.		270		12,577
a	CommVault Systems, Inc.		1,240		70,358
a	Consensus Cloud Solutions, Inc.		450		15,341
	CSG Systems International, Inc.		860		46,182
a	eGain Corp.		460		3,491
a	Enfusion, Inc., Class A		530		5,565
a	ePlus, Inc.		640		31,386
	EVERTEC, Inc.		1,370		46,237



franklintempleton.com	Annual Report	95

FRANKLIN TEMPLETON ETF TRUST

SCHEDULE OF INVESTMENTS

Franklin U.S. Small Cap Multifactor Index ETF (continued)



		Shares		Value

	Information Technology (continued)
a	ExlService Holdings, Inc.		660	$	106,808
a	Extreme Networks, Inc.		2,910		55,639
a	FARO Technologies, Inc.		380		9,352
	Hackett Group, Inc.		700		12,936
a	Harmonic, Inc.		1,060		15,465
	Information Services Group, Inc.		670		3,410
a	Insight Enterprises, Inc.		770		110,079
a	International Money Express, Inc.		860		22,171
	Kulicke & Soffa Industries, Inc.		1,510		79,562
	Methode Electronics, Inc.		820		35,982
a	Napco Security Technologies, Inc.		760		28,561
a	NETGEAR, Inc.		560		10,366
a	NetScout Systems, Inc.		1,520		43,548
a	Novanta, Inc.		960		152,726
a	OneSpan, Inc.		850		14,875
a	OSI Systems, Inc.		420		42,991
	PC Connection, Inc.		260		11,690
	Power Integrations, Inc.		1,500		126,960
	Progress Software Corp.		1,170		67,216
a	Qualys, Inc.		1,090		141,722
a	Rambus, Inc.		1,210		62,025
a	Rimini Street, Inc.		1,300		5,356
a	SPS Commerce, Inc.		980		149,254
a	Squarespace, Inc., Class A		640		20,333
	Vishay Intertechnology, Inc.		3,140		71,027
a	Vishay Precision Group, Inc.		240		10,022

					2,082,434

	Materials 4.0%
	Balchem Corp.		710		89,801
	Commercial Metals Co.		2,780		135,942
	Compass Minerals International, Inc.		730		25,032
	Greif, Inc., Class A		700		44,359
	Greif, Inc., Class B		160		12,243
	Innospec, Inc.		460		47,228
	Kronos Worldwide, Inc.		530		4,881
	Mativ Holdings, Inc.		990		21,255
	Myers Industries, Inc.		940		20,144
	Olympic Steel, Inc.		210		10,964
	Ramaco Resources, Inc.		400		3,524
	Ryerson Holding Corp.		420		15,280
	Sensient Technologies Corp.		1,000		76,560
	Stepan Co.		470		48,424
	SunCoke Energy, Inc.		1,850		16,613
	Sylvamo Corp.		440		20,354
	Tredegar Corp.		620		5,661
	Warrior Met Coal, Inc.		950		34,875
	Worthington Industries, Inc.		680		43,962

					677,102

	Real Estate 4.5%
	Agree Realty Corp.		1,010		69,296
	American Assets Trust, Inc.		1,150		21,378
	Brandywine Realty Trust		4,020		19,015
	Broadstone Net Lease, Inc.		4,000		68,040
	CareTrust REIT, Inc.		2,490		48,754
	City Office REIT, Inc.		760		5,244
	Community Healthcare Trust, Inc.		550		20,130
	Corporate Office Properties Trust		2,800		66,388



96	Annual Report	franklintempleton.com

FRANKLIN TEMPLETON ETF TRUST

SCHEDULE OF INVESTMENTS

Franklin U.S. Small Cap Multifactor Index ETF (continued)



		Shares		Value

	Real Estate (continued)
	Douglas Elliman, Inc.		1,800	$	5,598
	Elme Communities		1,930		34,470
	Four Corners Property Trust, Inc.		1,540		41,364
	Franklin Street Properties Corp.		2,450		3,847
a	GEO Group, Inc.		2,690		21,224
	Industrial Logistics Properties Trust		880		2,702
	LTC Properties, Inc.		800		28,104
	LXP Industrial Trust		6,980		71,964
	Marcus & Millichap, Inc.		630		20,229
	Necessity Retail REIT, Inc.		2,980		18,714
	PotlatchDeltic Corp.		1,690		83,655
	RE/MAX Holdings, Inc., Class A		570		10,693
	Retail Opportunity Investments Corp.		1,360		18,986
	RMR Group, Inc., Class A		390		10,234
	Tanger Factory Outlet Centers, Inc.		2,580		50,645
	Urstadt Biddle Properties, Inc., Class A		600		10,542
	Whitestone REIT		1,220		11,224

					762,440

	Utilities 7.4%
	American States Water Co.		1,050		93,335
	Artesian Resources Corp., Class A		220		12,179
	Avista Corp.		2,000		84,900
	Black Hills Corp.		1,610		101,591
	Brookfield Infrastructure Corp., Class A		1,700		78,302
	California Water Service Group		1,500		87,300
	Clearway Energy, Inc., Class A		780		23,423
	Clearway Energy, Inc., Class C		1,820		57,021
	Global Water Resources, Inc.		308		3,829
	MGE Energy, Inc.		960		74,563
	Northwest Natural Holding Co.		850		40,426
	NorthWestern Corp.		1,390		80,426
	ONE Gas, Inc.		980		77,645
	Otter Tail Corp.		900		65,043
	PNM Resources, Inc.		2,300		111,964
	SJW Group		670		51,007
	Southwest Gas Holdings, Inc.		1,780		111,161
	Spire, Inc.		930		65,230
	Unitil Corp.		410		23,386
	York Water Co.		330		14,751

					1,257,482

	Total Common Stocks (Cost $16,305,150)				17,044,414

	Total Investments (Cost $16,305,150) 100.0%				17,044,414
	Other Assets, less Liabilities 0.0%^†				3,147

	Net Assets 100.0%			$	17,047,561

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

^aNon-income producing.

See Abbreviations on page 120.



franklintempleton.com	The accompanying notes are an integral part of these financial statements. \| Annual Report	97

FRANKLIN TEMPLETON ETF TRUST

FINANCIAL STATEMENTS

Statements of Assets and Liabilities

March 31, 2023



	Franklin Emerging Market Core Dividend Tilt Index ETF			Franklin International Core Dividend Tilt Index ETF		Franklin U.S. Core Dividend Tilt Index ETF

Assets:
Investments in securities:
Cost – Unaffiliated issuers	$	13,135,315		$	226,167,547	$	24,817,800
Value – Unaffiliated issuers	$	11,875,299		$	238,711,711	$	24,148,192
Cash		—			—		62,692
Foreign currency, at value (cost $14,079, $267,764 and $42, respectively)		14,188			267,709		43
Receivables:
Dividends		75,975			1,564,329		69,990
Variation margin on futures contracts		—			5,759		892
Deposits with brokers for:
Futures contracts		1,607			46,959		3,360
Other assets		2,134			—		—

Total assets		11,969,203			240,596,467		24,285,169

Liabilities:
Payables:
Investment securities purchased		735			—		65,105
Management fees		1,883			16,406		1,261
Variation margin on futures contracts		100			—		—
Funds advanced by custodian		13,463			120,713		—
Deferred tax		13,619			—		—

Total liabilities		29,800			137,119		66,366

Net assets, at value	$	11,939,403		$	240,459,348	$	24,218,803

Net assets consist of:
Paid-in capital	$	43,918,309		$	227,141,925	$	25,342,132
Total distributable earnings (loss)		(31,978,906	)		13,317,423		(1,123,329	)

Net assets, at value	$	11,939,403		$	240,459,348	$	24,218,803

Shares outstanding		500,000			8,400,000		750,000

Net asset value per share	$	23.88		$	28.63	$	32.29



98	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, 2023



	Franklin U.S. Large Cap Multifactor Index ETF			Franklin U.S. Mid Cap Multifactor Index ETF		Franklin U.S. Small Cap Multifactor Index ETF

Assets:
Investments in securities:
Cost – Unaffiliated issuers	$	822,305,052		$	159,917,550	$	16,305,150
Cost – Non-controlled affiliates (Note 3c)		—			130,050		—
Value – Unaffiliated issuers⁺	$	858,897,499		$	166,537,516	$	17,044,414
Value – Non-controlled affiliates (Note 3c)		—			130,050		—
Cash		769,073			73,075		—
Receivables:
Dividends		894,576			177,639		15,825
Investment securities sold		16,456,844			—		—
Variation margin on futures contracts		11,539			—		—
Deposits with brokers for:
Futures contracts		44,800			—		—

Total assets		877,074,331			166,918,280		17,060,239

Liabilities:
Payables:
Capital shares redeemed		16,546,481			—		—
Management fees		108,938			40,657		5,020
Funds advanced by custodian		—			—		7,658
Payable upon return of securities loaned		—			130,050		—

Total liabilities		16,655,419			170,707		12,678

Net assets, at value	$	860,418,912		$	166,747,573	$	17,047,561

Net assets consist of:
Paid-in capital	$	942,122,359		$	161,879,216	$	18,477,586
Total distributable earnings (loss)		(81,703,447	)		4,868,357		(1,430,025	)

Net assets, at value	$	860,418,912		$	166,747,573	$	17,047,561

Shares outstanding		20,800,000			3,850,000		500,000

Net asset value per share	$	41.37		$	43.31	$	34.10

⁺Includes securities loaned		—			127,485		—



franklintempleton.com	The accompanying notes are an integral part of these financial statements. \| Annual Report	99

FRANKLIN TEMPLETON ETF TRUST

FINANCIAL STATEMENTS

Statements of Operations

for the year ended March 31, 2023



	Franklin Emerging Market Core Dividend Tilt Index ETF			Franklin International Core Dividend Tilt Index ETF			Franklin U.S. Core Dividend Tilt Index ETF			Franklin U.S. Large Cap Multifactor Index ETF
Investment income:
Dividends: (net of foreign taxes)^a
Unaffiliated issuers		$ 820,680			$ 3,121,085			$ 909,038			$ 20,263,622
Interest:
Unaffiliated issuers		—			1,067			—			7,834
Interest from securities loaned (Note 1d):
Unaffiliated issuers (net of fees and rebates)		—			336			65			55
Non-Controlled affiliates (Note 3c)		—			—			15			151

Total investment income		820,680			3,122,488			909,118			20,271,662

Expenses:
Management fees (Note 3a)		38,824			80,641			62,660			1,399,775
Other		55			170			55			—

Total expenses		38,879			80,811			62,715			1,399,775
Expenses waived/paid by affiliates (Note 3c)		(1	)		(4	)		(2	)		(162	)

Net expenses		38,878			80,807			62,713			1,399,613

Net investment income		781,802			3,041,681			846,405			18,872,049

Realized and unrealized gains (losses):
Net realized gain (loss) from:
Investments:
Unaffiliated issuers		(890,963	)		(2,214,521	)		170,448			(66,286,347	)
In-kind redemptions		(117,619	)		—			(438,455	)		43,508,869
Foreign currency transactions		(12,995	)		(8,766	)		(20,180	)		—
Forward exchange contracts		—			1,681,833			—			—
Futures contracts		(19,879	)		28,773			(23,842	)		(308,821	)

Net realized gain (loss)		(1,041,456	)		(512,681	)		(312,029	)		(23,086,299	)

Net change in unrealized appreciation (depreciation) on:
Investments:
Unaffiliated issuers		(1,930,136	)		10,568,665			(5,188,543	)		(54,022,118	)
Translation of other assets and liabilities denominated in foreign currencies		(1,915	)		5,078			(168	)		—
Futures contracts		(1,058	)		22,440			(6,326	)		(21,118	)
Forward exchange contracts		—			(252,393	)		—			—
Change in deferred taxes on unrealized appreciation		68,518			—			—			—

Net change in unrealized appreciation (depreciation)		(1,864,591	)		10,343,790			(5,195,037	)		(54,043,236	)

Net realized and unrealized gain (loss)		(2,906,047	)		9,831,109			(5,507,066	)		(77,129,535	)

Net increase (decrease) in net assets resulting from operations		$(2,124,245	)		$12,872,790			$(4,660,661	)		$(58,257,486	)


^aForeign taxes withheld on dividends		$97,657			$319,537			$24,225			$—



100	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, 2023



	Franklin U.S. Mid Cap Multifactor Index ETF			Franklin U.S. Small Cap Multifactor Index ETF
Investment income:
Dividends: (net of foreign taxes)^a
Unaffiliated issuers		$1,885,388			$ 297,485
Interest:
Unaffiliated issuers		1,589			707
Interest from securities loaned (Note 1d):
Unaffiliated issuers (net of fees and rebates)		—			578
Non-Controlled affiliates (Note 3c)		259			211

Total investment income		1,887,236			298,981

Expenses:
Management fees (Note 3a)		285,120			53,686

Total expenses		285,120			53,686
Expenses waived/paid by affiliates (Note 3c)		(100	)		(106	)

Net expenses		285,020			53,580

Net investment income		1,602,216			245,401

Realized and unrealized gains (losses):
Net realized gain (loss) from:
Investments:
Unaffiliated issuers		(1,233,981	)		(598,572	)
In-kind redemptions		3,657,221			—
Futures contracts		(40,955	)		(888	)

Net realized gain (loss)		2,382,285			(599,460	)

Net change in unrealized appreciation (depreciation) on:
Investments:
Unaffiliated issuers		(833,649	)		(440,618	)

Net change in unrealized appreciation (depreciation)		(833,649	)		(440,618	)

Net realized and unrealized gain (loss)		1,548,636			(1,040,078	)

Net increase (decrease) in net assets resulting from operations		$3,150,852			$ (794,677	)


^aForeign taxes withheld on dividends		$70			$213



franklintempleton.com	The accompanying notes are an integral part of these financial statements. \| Annual Report	101

FRANKLIN TEMPLETON ETF TRUST

FINANCIAL STATEMENTS

Statements of Changes in Net Assets


	Franklin Emerging Market Core Dividend Tilt Index ETF						Franklin International Core Dividend Tilt Index ETF

	Year Ended March 31, 2023			Year Ended March 31, 2022			Year Ended March 31, 2023			Year Ended March 31, 2022
Increase (decrease) in net assets:
Operations:
Net investment income		$ 781,802			$ 1,014,437			$ 3,041,681			$ 582,345
Net realized gain (loss)		(1,041,456	)		1,714,886			(512,681	)		1,193,763
Net change in unrealized appreciation (depreciation)		(1,864,591	)		(3,586,587	)		10,343,790			(117,448	)

Net increase (decrease) in net assets resulting from operations		(2,124,245	)		(857,264	)		12,872,790			1,658,660

Distributions to shareholders (Note 1f)		(808,733	)		(972,933	)		(1,624,260	)		(478,088	)

Capital share transactions: (Note 2)		(2,127,127	)		(5,797,086	)		212,018,520			2,752,200

Net increase (decrease) in net assets		(5,060,105	)		(7,627,283	)		223,267,050			3,932,772
Net assets:
Beginning of year		16,999,508			24,626,791			17,192,298			13,259,526

End of year		$11,939,403			$16,999,508			$240,459,348			$17,192,298



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

FRANKLIN TEMPLETON ETF TRUST

FINANCIAL STATEMENTS

Statements of Changes in Net Assets (continued)


	Franklin U.S. Core Dividend Tilt Index ETF						Franklin U.S. Large Cap Multifactor Index ETF

	Year Ended March 31, 2023			Year Ended March 31, 2022			Year Ended March 31, 2023			Year Ended March 31, 2022
Increase (decrease) in net assets:
Operations:
Net investment income		$ 846,405			$ 821,951			$ 18,872,049			$ 20,074,191
Net realized gain (loss)		(312,029	)		1,429,154			(23,086,299	)		253,820,136
Net change in unrealized appreciation (depreciation)		(5,195,037	)		1,240,892			(54,043,236	)		(111,334,022	)

Net increase (decrease) in net assets resulting from operations		(4,660,661	)		3,491,997			(58,257,486	)		162,560,305

Distributions to shareholders (Note 1f)		(1,064,664	)		(803,985	)		(19,321,124	)		(21,142,944	)

Capital share transactions: (Note 2)		(906,573	)		1,530,803			(28,739,866	)		(528,086,490	)

Net increase (decrease) in net assets		(6,631,898	)		4,218,815			(106,318,476	)		(386,669,129	)
Net assets:
Beginning of year		30,850,701			26,631,886			966,737,388			1,353,406,517

End of year		$24,218,803			$30,850,701			$ 860,418,912			$ 966,737,388



franklintempleton.com	The accompanying notes are an integral part of these financial statements. \| Annual Report	103

FRANKLIN TEMPLETON ETF TRUST

FINANCIAL STATEMENTS

Statements of Changes in Net Assets (continued)


	Franklin U.S. Mid Cap Multifactor Index ETF						Franklin U.S. Small Cap Multifactor Index ETF

	Year Ended March 31, 2023			Year Ended March 31, 2022			Year Ended March 31, 2023			Year Ended March 31, 2022
Increase (decrease) in net assets:
Operations:
Net investment income		$ 1,602,216			$ 606,903			$ 245,401			$ 179,992
Net realized gain (loss)		2,382,285			4,303,133			(599,460	)		1,212,551
Net change in unrealized appreciation (depreciation)		(833,649	)		(533,996	)		(440,618	)		(1,328,181	)

Net increase (decrease) in net assets resulting from operations		3,150,852			4,376,040			(794,677	)		64,362

Distributions to shareholders (Note 1f)		(1,398,123	)		(586,728	)		(231,686	)		(184,173	)

Capital share transactions: (Note 2)		102,139,664			22,306,734			1,801,034			1,779,654

Net increase (decrease) in net assets		103,892,393			26,096,046			774,671			1,659,843
Net assets:
Beginning of year		62,855,180			36,759,134			16,272,890			14,613,047

End of year		$166,747,573			$62,855,180			$17,047,561			$16,272,890



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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-eight separate funds, six of which are included in this report (Funds). The Funds follow the accounting and reporting guidance in Financial Accounting Standards Board (“FASB”) Accounting Standard Codification Topic 946, Financial Services - Investment Companies (“ASC 946”) and applies the specialized accounting and reporting guidance in U.S. Generally Accepted Accounting Principles (U.S. GAAP), including, but not limited to, ASC 946. The Funds are exchange traded funds (ETF) and seek to provide the investment results that closely correspond, before fees and expenses, to the performance of Fund’s corresponding underlying index.

Effective 08/01/2022, the following name changes occurred:

Old name

* Franklin LibertyQ U.S. Small Cap Equity ETF

* Franklin LibertyQ U.S. Mid Cap Equity ETF

* Franklin LibertyQ U.S. Equity ETF

* Franklin LibertyQ International Equity Hedged ETF

* Franklin LibertyQ Emerging Markets ETF

* Franklin LibertyQ Global Dividend ETF

New name

* Franklin U.S. Small Cap Multifactor Index ETF

* Franklin U.S. Mid Cap Multifactor Index ETF

* Franklin U.S. Large Cap Multifactor Index ETF

* Franklin International Core Dividend Tilt Index ETF

* Franklin Emerging Market Core Dividend Tilt Index ETF

* Franklin U.S. Core Dividend Tilt Index 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 each business day as of 4 p.m. Eastern time or the regularly scheduled close of the New York Stock Exchange (NYSE), whichever is earlier. Under compliance

policies and procedures approved by the Funds’ Board of Trustees (the Board), the Board has designated the Fund’s investment manager as the valuation designee and has responsibility for oversight of valuation. The investment manager is assisted by the Fund’s administrator in performing this responsibility, including leading the cross-functional Valuation Committee (VC).

The Funds may utilize independent pricing services, quotations from securities and financial instrument dealers, and other market sources to determine fair value.

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

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

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.



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NOTES TO FINANCIAL STATEMENTS

1. Organization and Significant Accounting

Policies (continued)

a. Financial Instrument Valuation (continued)

applied due to the nature or duration of any restrictions on the disposition of the investments. Due to the inherent uncertainty of valuations of such investments, the fair values may differ significantly from the values that would have been used had an active market existed.

Trading in securities on foreign securities stock exchanges and OTC markets may be completed before 4 p.m. Eastern time. In addition, trading in certain foreign markets may not take place on every Funds’ business day. Occasionally, events occur between the time at which trading in a foreign security is completed and 4 p.m. Eastern time that might call into question the reliability of the value of a portfolio security held by the Fund. As a result, differences may arise between the value of the Funds’ portfolio securities as determined at the foreign market close and the latest indications of value at 4 p.m. Eastern time. In order to minimize the potential for these differences, an independent pricing service may be used to adjust the Fund’s portfolio securities to the latest indications of fair value at 4 p.m. Eastern time on March 31, 2023. At March 31, 2023, certain securities may have been fair valued using these procedures, in which case the securities were categorized as Level 2 inputs within the fair value hierarchy (referred to as “market level fair value”).

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

b. Foreign Currency Translation

Portfolio securities and other assets and liabilities denominated in foreign currencies are translated into U.S. dollars based on the exchange rate of such currencies against U.S. dollars on the date of valuation. The Funds may enter into foreign currency exchange contracts to facilitate transactions denominated in a foreign currency. Purchases and sales of securities, income and expense items denominated in foreign currencies are translated into U.S. dollars at the exchange rate in effect on the transaction date. Portfolio securities and assets and liabilities denominated in foreign currencies contain risks that those currencies will decline in value relative to the U.S. dollar. Occasionally,

events may impact the availability or reliability of foreign exchange rates used to convert the U.S. dollar equivalent value. If such an event occurs, the foreign exchange rate will be valued at fair value using procedures established and approved by the Board.

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

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

c. Derivative Financial Instruments

Certain or all Funds invested in derivative financial instruments in order to manage risk or gain exposure to various other investments or markets. Derivatives are financial contracts based on an underlying or notional amount, require no initial investment or an initial net investment that is smaller than would normally be required to have a similar response to changes in market factors, and require or permit net settlement. Derivatives contain various risks including the potential inability of the counterparty to fulfill their obligations under the terms of the contract, the potential for an illiquid secondary market, and/or the potential for market movements which expose the Fund to gains or losses in excess of the amounts shown in the Statements of Assets and Liabilities. Realized gain and loss and unrealized appreciation and depreciation on these contracts for the period are included in the Statements of Operations.

Derivative counterparty credit risk is managed through a formal evaluation of the creditworthiness of all potential counterparties. The Funds attempt to reduce their exposure to counterparty credit risk on OTC derivatives, whenever possible, by entering into International Swaps and Derivatives Association (ISDA) master agreements with certain counterparties. These agreements contain various



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NOTES TO FINANCIAL STATEMENTS

1. Organization and Significant Accounting

Policies (continued)

c. Derivative Financial Instruments (continued)

provisions, including but not limited to collateral requirements, events of default, or early termination. Termination events applicable to the counterparty include certain deteriorations in the credit quality of the counterparty.

Termination events applicable to the Funds include failure of the Funds to maintain certain net asset levels and/or limit the decline in net assets over various periods of time. In the event of default or early termination, the ISDA master agreement gives the non-defaulting party the right to net and close-out all transactions traded, whether or not arising under the ISDA agreement, to one net amount payable by one counterparty to the other. However, absent an event of default or early termination, OTC derivative assets and liabilities are presented gross and not offset in the Statements of Assets and Liabilities. Early termination by the counterparty may result in an immediate payment by the Funds of any net liability owed to that counterparty under the ISDA agreement.

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

Funds entered into exchange traded futures contracts primarily to manage and/or gain exposure to equity price risk. A futures contract is an agreement between the Fund and a counterparty to buy or sell an asset at a specified price on a future date. Required initial margins are pledged

by the Fund, and the daily change in fair value is accounted for as a variation margin payable or receivable in the Statements of Assets and Liabilities.

Certain or all Funds entered into OTC forward exchange contracts primarily to manage and/or gain exposure to certain foreign currencies. A forward exchange contract is an agreement between the Fund and a counterparty to buy or sell a foreign currency at a specific exchange rate on a future date.

See Note 7 regarding other derivative information.

d. Securities Lending

Certain or all Funds participate in an agency based securities lending program to earn additional income. The Fund receives cash collateral against the loaned securities in an amount equal to at least 102% of the fair value of the loaned securities. Collateral is maintained over the life of the loan in an amount not less than 100% of the fair value of loaned securities, as determined at the close of Fund business each day; any additional collateral required due to changes in security values is delivered to the Fund on the next business day. The collateral is deposited into a joint cash account with other funds and is used to invest in a money market fund managed by Franklin Advisers, Inc., an affiliate of the Funds. These securities received as collateral are held in segregated accounts with the Funds’ custodian. The Fund cannot repledge or resell these securities received as collateral. As such, the non-cash collateral is excluded from the Statements of Assets and Liabilities. The Fund may receive income from the investment of cash collateral, in addition to lending fees and rebates paid by the borrower. Income from securities loaned, net of fees paid to the securities lending agent and/or third-party vendor, is reported separately in the Statements of Operations. The Fund bears the market risk with respect to the collateral investment, securities loaned, and the risk that the agent may default on its obligations to the Fund. If the borrower defaults on its obligation to return the securities loaned, the Fund has the right to repurchase the securities in the open market using the collateral received. The securities lending agent has agreed to indemnify the Fund in the event of default by a third party borrower.

e. Income and Deferred Taxes

It is the Fund’s policy to qualify as a regulated investment company under the Internal Revenue Code. The Fund intends to distribute to shareholders substantially all of its taxable income and net realized gains to relieve it from federal income and excise taxes. As a result, no provision for U.S. federal income taxes is required.



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NOTES TO FINANCIAL STATEMENTS

1. Organization and Significant Accounting

Policies (continued)

e. Income and Deferred Taxes (continued)

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.

The Fund may recognize an income tax liability related to its uncertain tax positions under U.S. GAAP when the uncertain tax position has a less than 50% probability that it will be sustained upon examination by the tax authorities based on its technical merits. As of March 31, 2023, 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

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 the investment manager, as applicable, according to the terms of the unified management fee agreement.

g. Accounting Estimates

The preparation of financial statement in accordance with U.S. GAAP requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities at the date of the financial statements and the amounts of income and expenses during the reporting period. Actual results could differ from those estimates.

h. Guarantees and Indemnifications

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

2. Shares of Beneficial Interest

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

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



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NOTES TO FINANCIAL STATEMENTS

2. Shares of Beneficial Interest (continued)

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, 2023, there were an unlimited number of shares authorized (without par value). Transactions in the Funds’ shares were as follows:


	Franklin Emerging Market Core Dividend Tilt Index ETF

	Year Ended March 31, 2023						Year Ended March 31, 2022

	Shares			Amount			Shares			Amount
Shares sold		—		$	2,776			—		$	12,197
Shares redeemed		(100,000	)		(2,129,903	)		(200,000	)		(5,809,283	)
Net increase (decrease)		(100,000	)	$	(2,127,127	)		(200,000	)	$	(5,797,086	)

	Franklin International Core Dividend Tilt Index ETF

	Year Ended March 31, 2023						Year Ended March 31, 2022

	Shares			Amount			Shares			Amount
Shares sold		7,800,000		$	212,018,520			100,000		$	2,752,200
Net increase (decrease)		7,800,000		$	212,018,520			100,000		$	2,752,200

	Franklin U.S. Core Dividend Tilt Index ETF

	Year Ended March 31, 2023						Year Ended March 31, 2022

	Shares			Amount			Shares			Amount
Shares sold		700,000		$	23,221,006			100,000		$	3,403,231
Shares redeemed		(800,000	)		(24,127,579	)		(50,000	)		(1,872,428	)
Net increase (decrease)		(100,000	)	$	(906,573	)		50,000		$	1,530,803

	Franklin U.S. Large Cap Multifactor Index ETF

	Year Ended March 31, 2023						Year Ended March 31, 2022

	Shares			Amount			Shares			Amount
Shares sold		6,300,000		$	256,215,911			7,250,000		$	315,466,656
Shares redeemed		(7,050,000	)		(284,955,777	)		(19,500,000	)		(843,553,146	)
Net increase (decrease)		(750,000	)	$	(28,739,866	)		(12,250,000	)	$	(528,086,490	)



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NOTES TO FINANCIAL STATEMENTS

2. Shares of Beneficial Interest (continued)


	Franklin U.S. Mid Cap Multifactor Index ETF

	Year Ended March 31, 2023						Year Ended March 31, 2022

	Shares			Amount			Shares			Amount
Shares sold		2,800,000		$	116,565,797			800,000		$	35,769,669
Shares redeemed		(350,000	)		(14,426,133	)		(300,000	)		(13,462,935	)
Net increase (decrease)		2,450,000		$	102,139,664			500,000		$	22,306,734

	Franklin U.S. Small Cap Multifactor Index ETF

	Year Ended March 31, 2023						Year Ended March 31, 2022

	Shares			Amount			Shares			Amount
Shares sold		50,000		$	1,801,034			150,000		$	5,610,619
Shares redeemed		—			—			(100,000	)		(3,830,965	)
Net increase (decrease)		50,000		$	1,801,034			50,000		$	1,779,654

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 Distributors, LLC (Distributors)		Principal underwriter



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NOTES TO FINANCIAL STATEMENTS

3. Transactions with Affiliates (continued)

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. Effective March 1, 2022, Franklin Advisory Services, LLC (the fund’s investment manager) has implemented a voluntary waiver of its management fee for the Fund. This voluntary waiver may be eliminated by the investment manager at any time. The fees are based on the average daily net assets of each of the Funds as follows:


	Annualized Fee Rate

	For the period August 1, 2022 to March 31, 2023	For the period April 1, 2022 to July 31, 2022
Franklin Emerging Market Core Dividend Tilt Index ETF	0.19%	0.45%
Franklin International Core Dividend Tilt Index ETF	0.09%	0.40%
Franklin U.S. Core Dividend Tilt Index ETF	0.06%	0.45%
Franklin U.S. Large Cap Multifactor Index ETF	0.15%	0.15%
Franklin U.S. Mid Cap Multifactor Index ETF	0.30%	0.30%
Franklin U.S. Small Cap Multifactor Index ETF	0.35%	0.35%

For the year ended March 31, 2023, each Fund’s annualized effective investment management fee rate based on average daily net assets was as follows:


		Annualized Fee Rate
Franklin Emerging Market Core Dividend Tilt Index ETF		0.29%
Franklin International Core Dividend Tilt Index ETF		0.12%
Franklin U.S. Core Dividend Tilt Index ETF		0.19%
Franklin U.S. Large Cap Multifactor Index ETF		0.15%
Franklin U.S. Mid Cap Multifactor Index ETF		0.30%
Franklin U.S. Small Cap Multifactor Index ETF		0.35%

b. Administrative Fees

Under an agreement with FASL, FT Services provides administrative services to the Fund. The fee is paid by FASL based on the Fund’s average daily net assets, and is not an additional expense of the Fund.



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NOTES TO FINANCIAL STATEMENTS

3. Transactions with Affiliates (continued)

c. Investments in Affiliated Management Investment Companies

The Fund invests in one or more affiliated management investment companies. As defined in the 1940 Act, an investment is deemed to be a “Controlled Affiliate” of a fund when a fund owns, either directly or indirectly, 25% or more of the affiliated fund’s outstanding shares or has the power to exercise control over management or policies of such fund. The Fund does not invest for purposes of exercising a controlling influence over the management or policies. Management fees paid by the Fund are waived on assets invested in the affiliated management investment companies, as noted in the Statements of Operations, in an amount not to exceed the management and administrative fees paid directly or indirectly.



	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 International Core
Dividend Tilt Index ETF																		Dividend
Non-Controlled Affiliates																		Income


Institutional Fiduciary Trust Money Market Portfolio 4.47%		$	—	$	47,600	$	(47,600	)		$—		$—	$	—		—			$	—


Franklin U.S. Core Dividend
Tilt Index ETF																		Dividend
Non-Controlled Affiliates																		Income


Institutional Fiduciary Trust Money Market Portfolio 4.47%		$	—	$	7,044	$	(7,044	)		$—		$—	$	—		—			$	15


Franklin U.S. Large Cap
Multifactor Index ETF																		Dividend
Non-Controlled Affiliates																		Income


Institutional Fiduciary Trust Money Market Portfolio 4.47%		$	—	$	1,577,703	$	(1,577,703	)		$—		$—	$	—		—			$	151


																		Income
Franklin U.S. Mid Cap																		from
Multifactor Index ETF																		Securities
Non-Controlled Affiliates																		loaned


Institutional Fiduciary Trust Money Market Portfolio 4.47%		$	10,850	$	1,631,239	$	(1,512,039	)		$—		$—	$	130,050		130,050			$	259


																		Income
Franklin U.S. Small Cap																		from
Multifactor Index ETF																		Securities
Non-Controlled Affiliates																		loaned


Institutional Fiduciary Trust Money Market Portfolio 4.47%		$	113,498	$	427,785	$	(541,283	)		$—		$—	$	—		—			$	211



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NOTES TO FINANCIAL STATEMENTS

3. Transactions with Affiliates (continued)

d. Other Affiliated Transactions

At March 31, 2023, the shares of Franklin U.S. Large Cap Multifactor Index ETF were owned by the following entities:


Funds	Shares		Percentage of Outstanding Shares^a
Franklin U.S. Large Cap Multifactor Index ETF
Franklin Moderate Allocation Fund		2,030,442		9.8%
Franklin Growth Allocation Fund		2,076,201		10.0%
Franklin 529 Portfolios		4,723,867		22.7%

		8,830,510		42.5%

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

4. Income Taxes

For tax purposes, capital losses may be carried over to offset future capital gains, if any. At March 31, 2023, the capital loss carryforwards were as follows:


	Franklin Emerging Market Core Dividend Tilt Index ETF		Franklin International Core Dividend Tilt Index ETF		Franklin U.S. Core Dividend Tilt Index ETF		Franklin U.S. Large Cap Multifactor Index ETF
Capital loss carryforwards not subject to expiration:
Long term		$13,150,118		$ —		$ —		$ 11,323,282
Short term		17,514,104		—		529,041		107,361,467

Total capital loss carryforwards		$30,664,222		$ —		$529,041		$118,684,749


	Franklin U.S. Mid Cap Multifactor Index ETF		Franklin U.S. Small Cap Multifactor Index ETF
Capital loss carryforwards not subject to expiration:
Long term		$ 582,274		$1,272,971
Short term		1,342,610		883,324

Total capital loss carryforwards		$ 1,924,884		$2,156,295

For tax purposes, the Funds may elect to defer any portion of a post-October capital loss or late-year ordinary loss to the first day of the following fiscal year. At March 31, 2023, the deferred losses were as follows:


	Franklin International Core Dividend Tilt Index ETF
Post October capital losses		$838,521
Late-year ordinary losses		$ —



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NOTES TO FINANCIAL STATEMENTS

4. Income Taxes (continued)

For tax purposes, capital losses may be carried over to offset future capital gains. During the year ended March 31, 2023, the following Fund utilized capital loss carryforwards as follows:


	Franklin International Core Dividend Tilt Index ETF		Franklin U.S. Core Dividend Tilt Index ETF		Franklin U.S. Large Cap Multifactor Index ETF
Capital loss carryforwards utilized		$295,058		$417,975		$895,744

The tax character of distributions paid during the period ended March 31, 2023 and 2022, were as follows:


	Franklin Emerging Market Core
	Dividend Tilt Index ETF
	2023		2022
Distributions paid from Ordinary income		$808,733		$972,933

	Franklin International Core
	Dividend Tilt Index ETF
	2023		2022
Distributions paid from:
Ordinary income		$1,377,235		$ 478,088
Long-term Capital Gain		247,025		—
		$1,624,260		$ 478,088

	Franklin U.S. Core Dividend
	Tilt Index ETF
	2023		2022
Distributions paid from Ordinary income		$1,064,664		$803,985

	Franklin U.S. Large Cap
	Multifactor Index ETF
	2023		2022
Distributions paid from Ordinary income		$19,321,124		$21,142,944

	Franklin U.S. Mid Cap
	Multifactor Index ETF
	2023		2022
Distributions paid from Ordinary income		$1,398,123		$586,728

	Franklin U.S. Small Cap
	Multifactor Index ETF
	2023		2022
Distributions paid from Ordinary income		$231,686		$184,173



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NOTES TO FINANCIAL STATEMENTS

4. Income Taxes (continued)

At March 31, 2023, the cost of investments, net unrealized appreciation (depreciation) and undistributed ordinary income for income tax purposes were as follows:


	Franklin Emerging Market Core Dividend Tilt Index ETF			Franklin International Core Dividend Tilt Index ETF			Franklin U.S. Core Dividend Tilt Index ETF			Franklin U.S. Large Cap Multifactor Index ETF
Cost of investments	$	13,270,186		$	227,312,232		$	24,824,083		$	823,090,801

Unrealized appreciation	$	1,249,973		$	15,991,329		$	1,333,970		$	73,868,572
Unrealized depreciation		(2,644,860	)		(4,591,850	)		(2,009,861	)		(38,061,874	)
Net unrealized appreciation (depreciation)	$	(1,394,887	)	$	11,399,479		$	(675,891	)	$	35,806,698

Distributable earnings – undistributed ordinary income	$	98,090		$	2,750,238		$	80,557		$	1,174,602

	Franklin U.S. Mid Cap Multifactor Index ETF			Franklin U.S. Small Cap Multifactor Index ETF
Cost of investments	$	160,139,984		$	16,331,858
Unrealized appreciation	$	13,188,262		$	2,530,311
Unrealized depreciation		(6,660,680	)		(1,817,755	)
Net unrealized appreciation (depreciation)	$	6,527,582		$	712,556
Distributable earnings – undistributed ordinary income	$	265,662		$	13,715

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, 2023, were as follows:


	Franklin Emerging Market Core Dividend Tilt Index ETF		Franklin International Core Dividend Tilt Index ETF		Franklin U.S. Core Dividend Tilt Index ETF		Franklin U.S. Large Cap Multifactor Index ETF
Purchases	$	14,854,790	$	45,172,424	$	43,464,584	$	479,206,706
Sales	$	16,225,733	$	36,067,880	$	42,343,674	$	478,828,899

	Franklin U.S. Mid Cap Multifactor Index ETF		Franklin U.S. Small Cap Multifactor Index ETF
Purchases	$	24,235,914	$	4,578,216
Sales	$	23,582,276	$	4,442,633



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NOTES TO FINANCIAL STATEMENTS

5. Investment Transactions (continued)

In-kind transactions associated with creation and redemptions for the year ended March 31, 2023, were as follows:


	Franklin Emerging Market Core Dividend Tilt Index ETF		Franklin International Core Dividend Tilt Index ETF		Franklin U.S. Core Dividend Tilt Index ETF		Franklin U.S. Large Cap Multifactor Index ETF
Cost of Securities Received	$	—	$	204,280,213	$	21,928,242	$	254,611,623
Value of Securities Delivered^a	$	804,277	$	—	$	24,026,502	$	283,430,791

	Franklin U.S. Mid Cap Multifactor Index ETF		Franklin U.S. Small Cap Multifactor Index ETF
Cost of Securities Received	$	116,181,885	$	1,799,657
Value of Securities Delivered^a	$	14,385,413	$	—

^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, 2023, in connection with securities lending transactions, certain or all Funds loaned investments and received cash collateral as follows:


	Franklin U.S. Mid Cap Multifactor Index ETF
Securities lending transactions^a:
Equity Investments^b		$130,050

^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

Investing in foreign securities may include certain risks and considerations not typically associated with investing in U.S. securities, such as fluctuating currency values and changing local, regional and global economic, political and social conditions, which may result in greater market volatility. Political and financial uncertainty in many foreign regions may increase market volatility and the economic risk of investing in foreign securities. In addition, certain foreign securities may not be as liquid as U.S. securities.



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6. Concentration of Risk (continued)

the Fund may be prohibited from investing in or acquiring securities issued by companies subject to such sanctions. In addition, the sanctions may require the Fund to freeze its existing investments in companies operating in or having dealings with Russia, which would prevent the Fund from selling or delivering these investments. Further, any exposure that the Fund may have to Russian counterparties could negatively impact the Fund’s portfolio. The liquidation of Fund assets during this time may also result in the Fund receiving substantially lower prices for its securities. The extent and duration of Russia’s military actions and the repercussions of such actions are impossible to predict, but could result in significant market disruptions, including in the oil and natural gas markets, and may negatively affect global supply chains, inflation and global growth. These and any related events have adversely affected the value and liquidity of the Fund’s holdings and may continue to significantly impact the Fund’s performance and the value of an investment in the Fund. These as well as any other consequences to Russia, such as additional sanctions, boycotts or changes in consumer or purchaser preferences or cyberattacks on the Russian government, companies or individuals, along with any retaliatory actions or countermeasures that may be taken by Russia (including cyberattacks on other governments, corporations or individuals), may further decrease the value and liquidity of Russian securities. Additionally, due to current and potential future sanctions or market closures impacting the ability to trade or transfer Russian securities, the Fund may experience higher transaction costs. During this time, the Fund will not meet its investment goal and will experience significant tracking error. These circumstances could also have adverse tax, regulatory and/or other consequences to the Fund.

7. Other Derivative Information

At March 31, 2023, the Funds’ investments in derivative contracts are reflected in the Statements of Asset and Liabilities as follows:

Asset Derivatives

Liability Derivatives

Statements of Assets and
Liabilities Location

Fair Value

Statements of Assets and
Liabilities Location

Fair Value

Franklin Emerging Market Core Dividend Tilt Index ETF

Equity contracts

Variation margin on futures contracts

1,778

Variation margin on futures contracts

—

Franklin International Core Dividend Tilt Index ETF

Equity contracts

Variation margin on futures contracts

29,508

Variation margin on futures contracts

—

Franklin U.S. Core Dividend Tilt Index ETF

Equity contracts

Variation margin on futures contracts

3,707

Variation margin on futures contracts

—

Franklin U.S. Large Cap Multifactor Index ETF

Equity contracts

Variation margin on futures contracts

49,473

Variation margin on futures contracts

—

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



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NOTES TO FINANCIAL STATEMENTS

7. Other Derivative Information (continued)

For the year ended March 31, 2023, the effect of derivative contracts in the Funds’ Statements of Operations was as follows:


Derivative Contracts Not Accounted for as Hedging Instruments	Statements of Operations Locations	Net Realized Gain (Loss) for the Period				Statements of Operations Locations	Net Change��in Unrealized Appreciation (Depreciation) for the Period

Franklin Emerging Market Core Dividend Tilt Index ETF

	Net realized gain (loss) from:					Net change in unrealized appreciation (depreciation) on:

Equity contracts	Futures contracts		$	(19,879	)	Futures contracts		$	(1,058	)

Franklin International Core Dividend Tilt Index ETF
	Net realized gain (loss) from:					Net change in unrealized appreciation (depreciation) on:

Foreign exchange contracts	Forward exchange contracts		$	1,681,833		Forward exchange contracts		$	(252,393	)

Equity contracts	Futures contracts			28,773		Futures contracts			22,440


Totals			$	1,710,606				$	(229,953	)

Franklin U.S. Core Dividend Tilt Index ETF
	Net realized gain (loss) from:					Net change in unrealized appreciation (depreciation) on:

Equity contracts	Futures contracts		$	(23,842	)	Futures contracts		$	(6,326	)

Franklin U.S. Large Cap Multifactor Index ETF
	Net realized gain (loss) from:					Net change in unrealized appreciation (depreciation) on:

Equity contracts	Futures contracts		$	(308,821	)	Futures contracts		$	(21,118	)

Franklin U.S. Mid Cap Multifactor Index ETF
	Net realized gain (loss) from:					Net change in unrealized appreciation (depreciation) on:

Equity contracts	Futures contracts		$	(40,955	)	Futures contracts		$	—

Franklin U.S. Small Cap Multifactor Index ETF
	Net realized gain (loss) from:					Net change in unrealized appreciation (depreciation) on:

Equity contracts	Futures contracts		$	(888	)	Futures contracts		$	—

For the period ended March 31, 2023, the average month end notional amount of futures contracts and average month end contract value for forward exchange contracts were as follows:


	Franklin Emerging Market Core Dividend Tilt Index ETF			Franklin International Core Dividend Tilt Index ETF			Franklin U.S. Core Dividend Tilt Index ETF			Franklin U.S. Large Cap Multifactor Index ETF
Futures contracts		$	103,468		$	283,836		$	117,328		$	1,047,376
Forward exchange contracts		$	—		$	20,694,573		$	—		$	—



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7. Other Derivative Information (continued)



	Franklin U.S. Mid Cap Multifactor Index ETF
Futures contracts		$	59,298

See Note 1(c) regarding derivative financial instruments.

8. Fair Value Measurements

The Funds follow a fair value hierarchy that distinguishes between market data obtained from independent sources (observable inputs) and the Funds’ own market assumptions (unobservable inputs). These inputs are used in determining the value of the Funds’ financial instruments and are summarized in the following fair value hierarchy:

•

Level 1 – quoted prices in active markets for identical financial instruments

•

Level 2 – other significant observable inputs (including quoted prices for similar financial instruments, interest rates, prepayment speed, credit risk, etc.)

•

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

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

A summary of inputs used as of March 31, 2023, in valuing the Funds’ assets and liabilities carried at fair value, is as follows:



	Level 1		Level 2		Level 3			Total

Franklin Emerging Market Core Dividend Tilt Index ETF

Assets:
Investments in Securities:^a
Equity Investments^b		$ 11,869,342		$ —	$	5,957		$	11,875,299


Other Financial Instruments:
Futures Contracts		$ 1,778		$ —	$	—		$	1,778


Franklin International Core Dividend Tilt Index ETF

Assets:
Investments in Securities:^a
Equity Investments^b		$238,711,711		$ —	$	—		$	238,711,711


Other Financial Instruments:
Futures Contracts		$ 29,508		$ —	$	—		$	29,508


Franklin U.S. Core Dividend Tilt Index ETF

Assets:
Investments in Securities:^a
Equity Investments^b		$ 24,148,192		$ —	$	—	^c	$	24,148,192


Other Financial Instruments:
Futures Contracts		$ 3,707		$ —	$	—		$	3,707


Franklin U.S. Large Cap Multifactor Index ETF

Assets:
Investments in Securities:^a
Equity Investments^b		$858,897,499		$ —	$	—		$	858,897,499


Other Financial Instruments:
Futures Contracts		$ 49,473		$ —	$	—		$	49,473



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NOTES TO FINANCIAL STATEMENTS

8. Fair Value Measurements (continued)



	Level 1		Level 2		Level 3		Total

Franklin U.S. Mid Cap Multifactor Index ETF

Assets:
Investments in Securities:^a
Equity Investments^b	$	166,537,516		$ —	$	—	$	166,537,516
Short-Term Investments		130,050		—		—		130,050

Total Investments in Securities	$	166,667,566		$ —	$	—	$	166,667,566


Franklin U.S. Small Cap Multifactor Index ETF

Assets:
Investments in Securities:^a
Equity Investments^b	$	17,044,414		$ —	$	—	$	17,044,414

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

^bIncludes common and preferred stocks, warrants, as well as other equity investments.

^cIncludes securities determined to have no value at March 31, 2023.

9. New Accounting Pronouncement

In June 2022, the Financial Accounting Standards Board (FASB) issued Accounting Standards Update (ASU) No. 2022-03, Fair Value Measurement (Topic 820) - Fair Value Measurement of Equity Securities Subject to Contractual Sale Restrictions. The amendments in the ASU clarify that a contractual restriction on the sale of an equity security is not considered part of the unit of account of the equity security and, therefore, should not be considered in measuring fair value. The ASU is effective for interim and annual reporting periods beginning after December 15, 2023, with the option of early adoption. Management has reviewed the requirements and believes that the adoption of the ASU will not have a material impact on the financial statements.

10. Subsequent Events

The Funds have evaluated subsequent events through the issuance of these Financial Statements and determined that no events have occurred that require disclosure.

Abbreviations


Selected Portfolio
CDI		Clearing House Electronic Subregister
		System Depositary Interest
GDR		Global Depositary Receipt
NVDR		Non-Voting Depositary Receipt
REIT		Real Estate Investment Trust
SPA		Standby Purchase Agreement



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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 Emerging Market Core Dividend Tilt Index ETF, Franklin International Core Dividend Tilt Index ETF, Franklin U.S. Core Dividend Tilt Index ETF, Franklin U.S. Large Cap Multifactor Index ETF, Franklin U.S. Mid Cap Multifactor Index ETF and Franklin U.S. Small Cap Multifactor Index ETF

Opinions on the Financial Statements

We have audited the accompanying statements of assets and liabilities, including the schedules of investments, of Franklin Emerging Market Core Dividend Tilt Index ETF, Franklin International Core Dividend Tilt Index ETF, Franklin U.S. Core Dividend Tilt Index ETF, Franklin U.S. Large Cap Multifactor Index ETF, Franklin U.S. Mid Cap Multifactor Index ETF and Franklin U.S. Small Cap Multifactor Index ETF (six of the funds constituting Franklin Templeton ETF Trust, hereafter collectively referred to as the “Funds”) as of March 31, 2023, the related statements of operations for the year ended March 31, 2023, the statements of changes in net assets for each of the two years in the period ended March 31, 2023, including the related notes, and the financial highlights for each of the five years in the period ended March 31, 2023 (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, 2023, 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, 2023 and each of the financial highlights for each of the five years in the period ended March 31, 2023 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, 2023 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 23, 2023

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)

By mid-February, tax information related to a shareholder’s proportionate share of distributions paid during the preceding calendar year will be received, if applicable. Please also refer to www.franklintempleton.com for per share tax information related to any distributions paid during the preceding calendar year. Shareholders are advised to consult with their tax advisors for further information on the treatment of these amounts on their tax returns.

The following tax information for the Funds is required to be furnished to shareholders with respect to the income earned and distributions paid during their fiscal year.

The Funds below hereby report the following amounts, or if subsequently determined to be different, the maximum allowable amounts, for the fiscal year ended March 31, 2023:


	Pursuant to:		Franklin Emerging Market Core Dividend Tilt Index ETF		Franklin International Core Dividend Tilt Index ETF		Franklin U.S. Core Dividend Tilt Index ETF		Franklin U.S. Large Cap Multifactor Index ETF
Long-Term Capital Gain Dividends		§852(b)(3)(C)	$	—	$	247,025	$	—	$	—
Dividends Received Deduction (DRD)		§854(b)(1)(A)	$	—	$	—	$	594,455	$	18,841,117
Qualified Dividend Income (QDI)		§854(b)(1)(B)	$	401,981	$	1,607,466	$	785,161	$	18,986,693
Short-Term Capital Gain Dividends		§871(k)(2)(C)	$	—	$	9,570	$	—	$	—


	Pursuant to:		Franklin U.S. Mid Cap Multifactor Index ETF		Franklin U.S. Small Cap Multifactor Index ETF
Long-Term Capital Gain Dividends		§852(b)(3)(C)	$	—	$	—
Dividends Received Deduction (DRD)		§854(b)(1)(A)	$	1,398,123	$	231,686
Qualified Dividend Income (QDI)		§854(b)(1)(B)	$	1,398,123	$	231,686
Short-Term Capital Gain Dividends		§871(k)(2)(C)	$	—	$	—

Under Section 853 of the Internal Revenue Code, the Funds below intend to elect to pass through to their shareholders the following amounts, or amounts as finally determined, of foreign taxes paid and foreign source income earned by the Funds during the fiscal year ended March 31, 2023:


	Franklin Emerging Market Core Dividend Tilt Index ETF		Franklin International Core Dividend Tilt Index ETF
Foreign Taxes Paid	$	153,337		$ 230,231
Foreign Source Income	$	877,475		$3,362,394



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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/Legg Mason 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	59	AssetMark Financial Holdings, Inc. (investment solutions) (2018-present) and PhonePe (2020-present) (payment and financial services); formerly, Axis Bank (financial) (2013- 2021), FlipKart Limited (2019-2020) (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)	Trustee	Since 2020	59	S&P Global, Inc. (financial
One Franklin Parkway				information services) (February
San Mateo, CA 94403-1906				2022), Borg Warner (automotive)
				(2018-present), LegalShield
				(consumer services) (2020-present);
				and formerly, IHS Markit (information
				services) (2015-2022),
				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	59	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	70	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, of some of the other subsidiaries of Franklin Resources, Inc. and of certain funds in the Franklin Templeton/Legg Mason fund complex; 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 certain funds in the Franklin Templeton/Legg Mason fund complex.

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; Assistant Secretary, Franklin Distributors, LLC; and officer of certain funds in the Franklin Templeton/Legg Mason fund complex.

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 certain funds in the Franklin Templeton/Legg Mason fund complex; and formerly, Vice President, Global Tax (2012-April 2017) and Treasurer/Assistant Treasurer, Franklin Templeton (2009-2017).

Fred Jensen (1963) 620 Eighth Avenue, 47th Floor New York, NY 10018	Chief Compliance Officer	Since 2021	Not Applicable	Not Applicable

Principal Occupation During at Least the Past 5 Years:
Director - Global Compliance of Franklin Templeton; Managing Director of Legg Mason & Co.; Director of Compliance, Legg Mason Office of the Chief Compliance Officer; Chief Compliance Officer, Franklin Advisory Services, LLC; Compliance Officer, Franklin Advisers, Inc.; officer of certain funds in the Franklin Templeton/Legg Mason fund complex; formerly, Chief Compliance Officer of Legg Mason Global Asset Allocation; Chief Compliance Officer, Legg Mason Private Portfolio; Chief Compliance Officer to The Reserves Funds (investment adviser, funds and broker-dealer) and Ambac Financial Group (investment adviser, funds and broker-dealer).

Susan Kerr (1949) 620 Eighth Avenue New York, NY 10018	Vice President - AML Compliance	Since 2021	Not Applicable	Not Applicable

Principal Occupation During at Least the Past 5 Years:
Senior Compliance Analyst, Franklin Templeton; Chief Anti-Money Laundering Compliance Officer, Legg Mason & Co., or its affiliates; Anti Money Laundering Compliance Officer; Senior Compliance Officer, LMIS; and officer of certain funds in the Franklin Templeton/Legg Mason fund complex.

Todd Mathias (1983) One Franklin Parkway, San Mateo, Ca 94403-1906	Vice President	Since March 2022	Not Applicable	Not Applicable

Principal Occupation During at Least the Past 5 Years:
Head of US ETF Product Strategy, Franklin Templeton; and officer of certain funds in the Franklin Templeton/Legg Mason fund complex.



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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.; and officer of certain funds in the Franklin Templeton/Legg Mason fund complex.

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 certain funds in the Franklin Templeton/Legg Mason fund complex.

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:
Senior Associate General Counsel, Franklin Templeton; and officer of certain funds in the Franklin Templeton/Legg Mason fund complex.

Lori A. Weber (1964) 300 S.E. 2nd Street Fort Lauderdale, FL 33301-1923	Vice President and Secretary	Vice President since 2011 and Secretary since 2013	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 certain funds in the Franklin Templeton/Legg Mason fund complex.

*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 and Deboarah D. McWhinney as its audit committee financial experts. The Board believes that Mr. Bhagat and Ms. McWhinney qualify as such an expert in view of their 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 2017. Ms. McWhinney has been a member of the Fund Audit Committee since 2020. As a result of such background and experience, the Board believes that Mr. Bhagat and Ms. McWhinney have 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 presents 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 and Ms. McWhinney are independent Board members 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	125

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 Schedule of Investments

The Trust files a complete schedule 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 each Fund’s website at franklintempleton.com.



126	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

Investment Manager	Distributor	Investor Services

Franklin Advisory Services, LLC	Franklin Distributors, LLC (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



© 2023 Franklin Templeton Investments. All rights reserved.								ETF A 05/23

LOGO



		Franklin Disruptive Commerce ETF

		Franklin Dynamic Municipal Bond ETF

		Franklin Exponential Data ETF

		Franklin Genomic Advancements ETF

		Franklin High Yield Corporate ETF Formerly, Franklin Liberty High Yield Corporate ETF

		Franklin Intelligent Machines ETF

		Franklin International Aggregate Bond ETF Formerly, Franklin Liberty International Aggregate Bond ETF

		Franklin Investment Grade Corporate ETF

		Formerly, Franklin Liberty Investment Grade Corporate ETF

		Franklin Municipal Green Bond ETF

		Formerly Franklin Federal Tax-Free Bond ETF

Franklin Senior Loan ETF

Formerly, Franklin Liberty Senior Loan ETF

Franklin Systematic Style Premia ETF

Formerly, Franklin Liberty Systematic Style Premia ETF

Franklin U.S. Core Bond ETF

Formerly Franklin Liberty U.S. Core Bond ETF

Franklin U.S. Low Volatility ETF

Formerly, Franklin Liberty U.S. Low Volatility ETF

Franklin U.S. Treasury Bond ETF

Formerly, Franklin Liberty U.S. Treasury Bond ETF

Franklin Ultra Short Bond ETF

Formerly, Franklin Liberty Ultra Short Bond ETF



Contents

Annual Report



Franklin Disruptive Commerce ETF			2
Franklin Dynamic Municipal Bond ETF			10
Franklin Exponential Data ETF			16
Franklin Genomic Advancements ETF			24
Franklin High Yield Corporate ETF			31
Franklin Intelligent Machines ETF			38
Franklin International Aggregate Bond ETF			46
Franklin Investment Grade Corporate ETF			53
Franklin Municipal Green Bond ETF			60
Franklin Senior Loan ETF			66
Franklin Systematic Style Premia ETF			73
Franklin U.S. Core Bond ETF			81


Franklin U.S. Low Volatility ETF			88
Franklin U.S. Treasury Bond ETF			95
Franklin Ultra Short Bond ETF			102
Financial Highlights and Schedules of Investments			109
Financial Statements			205
Notes to Financial Statements			221
Report of Independent Registered Public Accounting Firm			247
Tax Information			249
Board Members and Officers			251
Shareholder Information			254

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 Disruptive Commerce ETF

This annual report for Franklin Disruptive Commerce ETF covers the fiscal year ended March 31, 2023.

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, predominantly common stock, 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 payment capabilities, 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 -22.48% based on market price and -22.34% based on net asset value (NAV). In comparison, the Russell 3000^® Index, which measures the performance of the largest 3,000 U.S. companies representing the majority of the U.S. market’s total capitalization, posted a -8.58% cumulative total return for the same period.¹ You can find more of the Fund’s performance data in the Performance Summary beginning on page 6.

Economic and Market Overview

decline in equity prices. Consumer spending continued to rise, but deteriorating financial conditions and investors’ expectations for slower growth pressured equity markets.

Continued supply-chain disruptions, strong consumer demand and volatile energy prices drove inflation higher. Russia’s invasion of Ukraine also disrupted financial markets and led to a rise in oil and commodity prices early in the period. Inflation peaked at 9.1% in June 2022, the highest annual rate since 1981, before gradually sliding to a low of 6% in February 2023. The labor market remained strong amid a high level of nominal growth, which sent the U.S. unemployment rate down to a historic 54-year low of 3.4% in January 2023 before ending the period at 3.5%.

U.S. gross domestic product grew in the second half of 2022 after modestly contracting in the first half of the year. Rising consumer spending and increased exports amid declining inflation led to solid economic growth in the final two quarters of 2022. However, rising interest rates translated to higher borrowing costs for individuals and businesses, which dampened economic activity, especially in the housing and financial markets over the period.

In an effort to control inflation, the U.S. Federal Reserve (Fed) rapidly restricted monetary policy during the period. The Fed raised the federal funds target rate eight times to end the period at a range of 4.75%–5.00%, pushing borrowing costs to their highest levels since 2007. The interest-rate hikes included four successive 75 basis point increases at its June, July, September and November 2022 meetings and smaller increases at its remaining meetings during the period. At its March 2023 meeting, the Fed said it would continue to reduce bond holdings, but departed from previous statements by softening its firm outlook on future rate hikes. Additionally, Fed Chair Jerome Powell said the central bank most likely would not cut rates in 2023.

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.

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 Schedule of Investments (SOI). The SOI begins on page 110.



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FRANKLIN DISRUPTIVE COMMERCE ETF


Portfolio Composition

3/31/23

	% of Total Net Assets

Internet & Direct Marketing Retail		26.7%

IT Services		19.9%

Trading Companies & Distributors		9.1%

Software		7.7%

Hotels, Restaurants & Leisure		6.3%

Ground Transportation		5.2%

Consumer Staples Distribution & Retail		4.7%

Entertainment		3.9%

Commercial Services & Supplies		3.3%

Professional Services		3.1%

Interactive Media & Services		2.3%

Diversified REITs		2.0%

Other		3.3%

Other Net Assets		2.5%


Top 10 Holdings

3/31/23

Company *Sector/Industry*	% of Total Net Assets

Amazon.com, Inc. Internet & Direct Marketing Retail		7.8%

Shopify, Inc. Interactive Media & Services		5.1%

WW Grainger, Inc. Trading Companies & Distributors		4.8%

Costco Wholesale Corp. Consumer Staples Merchandise Retail		4.7%

MercadoLibre, Inc. Internet & Direct Marketing Retail		4.4%

Fastenal Co. Trading Companies & Distributors		4.3%

Adyen NV Data Processing & Outsourced Services		4.3%

Uber Technologies, Inc. Trucking		4.0%

DoorDash, Inc. Internet & Direct Marketing Retail		3.5%

Etsy, Inc. Internet & Direct Marketing Retail		3.4%

Investment Strategy

markets in which they operate. Our internal research and analysis leverages insights from diverse sources, including external research, to develop and refine its investment theme and identify and take advantage of trends that have ramification to individual companies or entire industries. We evaluate market segments, products, services and business models positioned to benefit significantly from disruptive innovations in commerce relative to broad securities markets, and we 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., including those in developing or emerging markets. Although we may invest across economic sectors, we expect to concentrate our investments in consumer discretionary-related industries.

Manager’s Discussion

The 12 months under review was a tale of two halves for the Fund: Although the final six months of the reporting period resulted in solid overall gains, it was not enough to compensate for the steep losses incurred from April through September 2022.

After declining more sharply than the broader equity market averages in the first nine months of 2022 as investors appeared to brace for a possible recession, stocks related to e-commerce businesses began to stage a partial recovery in October. Throughout the year under review, many e-commerce companies began to reduce staff, cut back on technology spending and other capital-intensive projects, and otherwise sought to right-size their operations to better suit changing market conditions at the end of a prolonged demand boom. Digital payment platform businesses, meanwhile, contended with the specter of waning transaction volumes. The latest data revealed that consumer spending has not collapsed in the current environment, but consumers are allocating more discretionary dollars toward services such as entertainment and travel, at least partially reversing the merchandise-heavy tilt that was in place over the past two-and-a-half years. In select categories, such as clothing, the percentage of sales made online reverted to where it was before the pandemic, according to some estimates. And for the past six quarters through December 2022, online growth has trailed the sales gains of the overall retail industry.

The portfolio held exposures to nine different equity sectors, eight of which produced negative absolute returns, while industrial sector stocks combined for a small contribution that had a negligible impact on overall performance. The bulk



franklintempleton.com	Annual Report	3

FRANKLIN DISRUPTIVE COMMERCE ETF

of the decline occurred in the consumer discretionary, information technology (IT), communication services and financials sectors, which on average comprised roughly two-thirds of the portfolio’s overall composition.

Widespread declines were evident in the consumer discretionary sector, where e-commerce names such as Amazon.com (focused on e-commerce, cloud computing, online advertising, digital streaming and artificial intelligence), online fashion retailer Revolve Group, and vacation rental and short-term homestays broker Airbnb were standout detractors. All of our smaller positions in the household durables; and textiles, apparel and luxury goods industries also posted large losses, owing mostly to a steep selloff in LoveSac, which was liquidated before period-end.

In the IT sector, nearly all holdings suffered double-digit percentage declines, including major detractors such as BILL Holdings (cloud-based back-office software) and Unity Software (video game development platform provider) in the software industry, along with Shopify, an e-commerce platform for online stores and retail point-of-sale systems, in the IT services industry. The stock market headwinds were also quite strong in the tech-adjacent communication services sector, where eight out of 10 related holdings sold off. Interactive media and services providers were an area of acute weakness as the group was led lower by ZoomInfo Technologies, which provides marketing software and data solutions, and which lost more than half of its equity value during the year under review.

Late in the year, many of our holdings tied to e-commerce payments and online transactions were reclassified as financial services companies, where previously such fintech companies had been grouped with IT services industry names. Most of these holdings fared poorly, with our absolute returns curbed foremost by depreciation in Dutch e-payment platform provider Adyen and dLocal, which enables cross-border payments connecting global merchants to emerging markets. Consumer finance stocks such as Upstart Holdings (an AI-enabled peer-to-peer lending platform) were also weak, and we eventually divested the Fund’s holdings in these companies by year-end.

To a lesser extent, consumer staples were also a hindrance as all related stocks sold off, including Costco Wholesale and Freshpet, the latter of which makes premium dog and cat food. The Fund’s health care holdings were limited to a solitary position in Figs, which sells medical uniforms and apparel, and which shed most of its equity value before it

CFA^®is a trademark owned by CFA Institute.

was eliminated from the portfolio. ProLogis, a real estate investment trust that specializes in transportation logistics facilities that are a crucial part of the supply chain, was our sole detractor in the real estate sector, while materials sector returns were pressured foremost by a modest selloff in Packaging Corporation of America.

In terms of what aided Fund performance, there were a handful of companies that posted solid gains during the year, with positive overall results in the industrials sector led by gains in industrial supply company WW Grainger, online vehicle auction and remarketing services provider Copart, and freight shipping and logistics company Old Dominion Freight Line.

The rest of the notable contributors helped decrease the overall declines in other sector allocations, including a few e-commerce companies such as Latin America-based MercadoLibre and China-based Alibaba Group Holding (purchased during the period), which aided results in the consumer discretionary sector along with Booking Holdings, an online travel fare aggregator and travel fare metasearch engine provider.

Similar to Alibaba, we initiated a new position in another Chinese company with the purchase of Tencent Holdings in the interactive media and services industry, which went on to rally solidly through period-end and benefited returns in the communication services sector. Elsewhere in the sector, Netflix (also purchased during the period) lent modest support to our otherwise poor results in the entertainment industry. Mixed results in the IT sector, meanwhile, were supported by several software holdings, including key contributor Descartes Systems Group, which specializes in cloud-based logistics and supply-chain management solutions.

Although most payment processing companies dampened absolute returns, both Visa and Mastercard showed resilience and posted small gains within the group. Across the rest of the portfolio, the contributors were generally minor and had little impact in reversing the widespread declines outlined above.

Thank you for your participation in Franklin Disruptive Commerce ETF. We look forward to serving your future investment needs.

Matthew J. Moberg, CPA

Lead Portfolio Manager

Kelly Rogal, CFA

Portfolio Manager



4	Annual Report	franklintempleton.com

FRANKLIN DISRUPTIVE COMMERCE ETF

The foregoing information reflects our analysis, opinions and portfolio holdings as of March 31, 2023, the end of the reporting period. The way we implement our main investment strategies and the resulting portfolio holdings may change depending on factors such as market and economic conditions. These opinions may not be relied upon as investment advice or an offer for a particular security. The information is not a complete analysis of every aspect of any market, state, industry, security or the Fund. Statements of fact are from sources considered reliable, but the investment manager makes no representation or warranty as to their completeness or accuracy. Although historical performance is no guarantee of future results, these insights may help you understand our investment management philosophy.



franklintempleton.com	Annual Report	5

FRANKLIN DISRUPTIVE COMMERCE ETF

Performance Summary as of March 31, 2023

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 3/31/23¹

Cumulative Total Return²

Average Annual Total Return²

Based on
NAV³

Based on
market price⁴

Based on
NAV³

Based on
market price⁴

1-Year

-22.34%

-22.48%

-22.34%

-22.48%

3-Year

+13.66%

+12.41%

+4.36%

+3.98%

Since Inception (2/25/20)

-3.07%

-3.15%

-1.00%

-1.03%

See page 8 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 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.

2/25/20-3/31/23

LOGO

See page 8 for Performance Summary footnotes.



franklintempleton.com	Annual Report	7

FRANKLIN DISRUPTIVE COMMERCE ETF

PERFORMANCE SUMMARY

Total Annual Operating Expenses⁶

0.50%

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. Gross expenses are the Fund’s total annual operating expenses as of the Fund’s prospectus available at the time of publication. Net expenses are capped under a contractual agreement, which cannot be terminated prior to 7/31/23 without Board consent. Actual expenses may be higher and may impact portfolio 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 Russell^®Index is market capitalization weighted and measures the performance of the largest 3,000 U.S. companies representing the majority of the U.S. market’s total capitalization.

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

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



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FRANKLIN DISRUPTIVE COMMERCE 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 10/1/22		Ending Account Value 3/31/23		Expenses Paid During Period 10/1/22–3/31/23¹		Ending Account Value 3/31/23		Expenses Paid During Period 10/1/22–3/31/23¹		Net Annualized Expense Ratio
	$1,000.00		$1,174.90		$2.71		$1,022.44		$2.52		0.50	%



franklintempleton.com	Annual Report	9

Franklin Dynamic Municipal Bond ETF

This annual report for Franklin Dynamic Municipal Bond ETF covers the fiscal year ended March 31, 2023.

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 whose interest is 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 unrated or short-term rated securities of comparable quality), including securities rated below investment grade and securities of issuers that are, or are about to be, involved in reorganizations, financial restructuring, or bankruptcy.

Performance Overview

During the 12-month period, the Fund posted cumulative total returns of -0.69% based on market price and -0.82% based on net asset value (NAV). In comparison, the Bloomberg Municipal 1-15 Year Index, which is a subset of the Bloomberg Municipal Bond Index (a market value-weighted index of tax-exempt, investment-grade municipal bonds with maturities of one year or more) posted a +1.61% cumulative 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.

Municipal Bond Market Overview

During the 12 months ended March 31, 2023, the U.S. Federal Reserve (Fed) continued to tighten monetary policy as it tried to get inflation under control without tipping the economy into recession. After several hikes of 75 basis points (bps), the Fed slowed the pace of tightening to 50 bps in December 2022, followed by two 25-bp increases in February and March 2023. This last decision came in the face of regional banking sector turmoil, though fears of widespread contagion quickly abated.

The municipal bond (muni) market witnessed a very challenging year in 2022, primarily driven by the Fed’s monetary policy tightening. High levels of uncertainty led to significant outflows from muni retail vehicles. The first quarter of 2023 saw a reversal of this trend as investors looked for high-quality alternatives amid market volatility. Inflows to munis were met with restricted new issuance, resulting in positive absolute returns year-to-date. Credit fundamentals remained strong, as many muni issuers benefited from federal aid received during the COVID-19 crisis and from the subsequent economic recovery.

For the 12-month period, U.S. fixed income sectors saw better performance relative to equities, as measured by the Standard & Poor’s^® 500 Index, which posted a -7.73% total return.² Investment-grade munis, as measured by the Bloomberg Municipal Bond Index, posted a +0.26% total return, while U.S. Treasuries, as measured by the Bloomberg U.S. Treasury Index, posted a -4.51% total return.² Investment-grade corporate bonds, as measured by the Bloomberg U.S. Corporate Investment Grade Index, posted a -5.55% total return.²

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. 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 Schedule of Investments (SOI). The SOI begins on page 113.



10	Annual Report	franklintempleton.com

FRANKLIN DYNAMIC MUNICIPAL BOND ETF


Portfolio Composition

3/31/23

	% of Total Investments

Industrial Development Revenue and Pollution Control		32.36%

Special Tax		20.15%

Health Care		14.01%

Education		8.02%

Transportation		5.75%

Housing		5.07%

Local		4.56%

Lease		2.59%

State		2.21%

Other		2.07%

Cash		1.78%

Utilities		1.30%

Refunded		0.13%

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 invest with a long-term time horizon. This means we generally hold securities in the Fund’s portfolio for income purposes, although we may sell a security at any time if we believe it could help the Fund meet its goal. With a focus on income, individual securities are considered for purchase or sale based on various factors and considerations, including credit profile, risk, structure, pricing, portfolio impact, duration management, restructuring, opportunistic trading and tax loss harvesting opportunities. When selecting securities for the Fund’s portfolio, we may consider existing market conditions, the availability of lower-rated securities, and whether the difference in yields between higher and lower-rated securities justifies the higher risk of lower-rated securities. The Fund is an actively managed exchange-traded fund (ETF) that does not seek to replicate the performance of a specified index.

Manager’s Discussion

During the 12-month period, the portfolio management team invested across the entire quality spectrum, including below investment-grade bonds, to achieve our objective of maximizing income for our investors. As credit spreads fluctuate, we will continue to seek the best opportunities in higher and lower quality securities. The yield curve flattened significantly over the reporting period, and the team focused

on yield curve positioning in an effort to help our investors achieve high levels of tax-free income over the long term.

Thank you for your participation in Franklin Dynamic Municipal Bond ETF. We look forward to serving your future investment needs.



franklintempleton.com	Annual Report	11

FRANKLIN DYNAMIC MUNICIPAL BOND ETF

Performance Summary as of March 31, 2023

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 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 (9/5/17), 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 3/31/23^1,2

Cumulative Total Return³

Average Annual Total Return³

Based on
NAV⁴

Based on
market price⁵

Based on
NAV⁴

Based on
market price⁵

1-Year

-0.82%

-0.69%

-0.82%

-0.69%

3-Year

+3.95%

+4.21%

+1.30%

+1.38%

5-Year

+10.89%

+10.66%

+2.09%

+2.05%

Since Inception (8/31/17)

+9.20%

+9.37%

+1.59%

+1.62%


Distribution Rate⁶	30-Day Standardized Yield⁷		Taxable Equivalent 30-Day Standardized Yield⁸
2.92%		4.18%		7.06%

See page 14 for Performance Summary footnotes.



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FRANKLIN DYNAMIC MUNICIPAL BOND 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.

8/31/17-3/31/23

LOGO

See page 14 for Performance Summary footnotes.



franklintempleton.com	Annual Report	13

FRANKLIN DYNAMIC MUNICIPAL BOND ETF

PERFORMANCE SUMMARY

Distributions (4/1/22–3/31/23)

Net Investment

Income

$0.709845

Total Annual Operating Expenses¹⁰

With Fee

Waiver

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.

1. The total annual operating expenses are sourced from the Fund’s prospectus available at the time of publication. Actual expenses may be higher and may impact portfolio returns.

2. Effective December 1, 2022, 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, 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.

3. 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.

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

5. Assumes reinvestment of distributions based on market price.

6. Distribution rate is based on an annualization of the March dividend and the NAV per share on 3/31/23.

8. Taxable equivalent yield assumes the 2023 maximum federal income tax rate of 37.00% plus 3.80% Medicare tax.

9. Source: FactSet. Bloomberg Municipal 1-15 Year Index is a subset of the Bloomberg Municipal Bond Index, which is a market value-weighted index of tax-exempt, investment-grade municipal bonds with maturities of one year or more.

10. 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.



14	Annual Report	franklintempleton.com

FRANKLIN DYNAMIC MUNICIPAL 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 10/1/22		Ending Account Value 3/31/23		Expenses Paid During Period 10/1/22–3/31/23¹		Ending Account Value 3/31/23		Expenses Paid During Period 10/1/22–3/31/23¹		Net Annualized Expense Ratio
	$1,000.00		$1,064.90		$1.54		$1,023.44		$1.51		0.30	%



franklintempleton.com	Annual Report	15

Franklin Exponential Data ETF

This annual report for Franklin Exponential Data ETF covers the fiscal year ended March 31, 2023.

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, predominantly common stock, of companies that are relevant to the Fund’s investment theme of exponential data. These companies include those that we believe are substantially focused on and/or are expected to substantially 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 12-month period, the Fund posted cumulative total returns of -26.17% based on market price and -25.99% based on net asset value (NAV). In comparison, the Russell 3000^® Index, which measures the performance of the largest 3,000 U.S. companies representing the majority of the U.S. market’s total capitalization, posted a -8.58% cumulative total return for the same period.¹ You can find more of the Fund’s performance data in the Performance Summary beginning on page 20.

Economic and Market Overview

U.S. equities, as measured by the Standard & Poor’s^® 500 Index (S&P 500^®), posted a -7.73% total return for the 12 months ended March 31, 2023.¹ High inflation, rising interest rates and geopolitical instability contributed to a sharp decline in equity prices. Consumer spending continued to rise, but deteriorating financial conditions and investors’ expectations for slower growth pressured equity markets.

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 Schedule of Investments (SOI). The SOI begins on page 126.



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FRANKLIN EXPONENTIAL DATA ETF


Portfolio Composition

3/31/23

	% of Total Net Assets

Software		49.3%

IT Services		15.2%

Diversified REITs		11.3%

Capital Markets		6.9%

Interactive Media & Services		5.9%

Wireless Telecommunication Services		3.3%

Communications Equipment		3.0%

Electronic Equipment, Instruments & Components		2.0%

Other		1.9%

Short-Term Investments & Other Net Assets		1.2%


Top 10 Holdings

3/31/23

Company *Sector/Industry*	% of Total Net Assets

Microsoft Corp. Information Technology		7.2%

MongoDB, Inc. Information Technology		5.3%

Equinix, Inc. Real Estate		4.7%

Palo Alto Networks, Inc. Information Technology		4.6%

ServiceNow, Inc. Information Technology		4.4%

Cloudflare, Inc., Class A Information Technology		4.3%

Snowflake, Inc., Class A Information Technology		4.2%

Alphabet, Inc., Class A Communication Services		4.1%

Datadog, Inc., Class A Information Technology		4.0%

SBA Communications Corp. Real Estate		3.3%

Investment Strategy

We seek to identify, using our own fundamental, bottom-up research analysis, 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. Our internal research and analysis leverages insights from diverse sources, including external research, to develop and refine its investment and identify and take advantage of trends that have ramifications for individual

companies or entire industries. In analyzing investment opportunities, we also 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 we 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., including those in developing or emerging markets. Although we may invest across economic sectors, we expect to concentrate our investments in information technology-related industries.

Manager’s Discussion

During the 12 months under review, the Fund was invested in 13 different industries, with just four of them adding meaningfully to the Fund’s absolute returns. This endpoint result marked an improvement from the midpoint of the annual period, when nearly all the portfolio’s individual stock holdings were net detractors in a broader bear market environment (while the few outliers to the upside were inadequate as they had no material impact on returns). Interest-rate hikes and global macroeconomic conditions applied downward pressure on numerous companies held by the Fund, and several of them compounded those challenges with disappointing earnings reports and forward guidance. Despite the overall gains made from the October low point through period-end, the Fund was unable to recover most of the prior losses.

Three of the Fund’s largest industry allocations—software, information technology (IT) services, and interactive media and services—comprised nearly 70% of its total net assets when combined, and they were also the biggest detractors of the year. Most software holdings posted steep double-digit percentage losses with Datadog (cloud-based “observability” and analytics platform), Zscaler (cloud-based secure network access and data migration services) and SentinelOne (cybersecurity) shedding more than half of their equity value. In our view, the selling in software names often appeared indiscriminate and overdone. For example, top overall detractor Datadog—offering a comprehensive “technology stack” monitoring and analytics platform for software developers, IT operations teams and business users—reported what we considered strong quarterly financial results (in terms of earnings per share, revenues and billings) and raised their full-year outlook for 2022. According to our analysis, Datadog continues to be a best-in-breed business with excellent long-term growth potential (landing new clients and expanding well in large total addressable markets), and overall high quality given the rising validation of its platform, strong unit economics, and high free cash flow.



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FRANKLIN EXPONENTIAL DATA ETF

The other key detractors were a mix of application and systems software providers, including CrowdStrike Holdings, Confluent and GitLab. IT services was another area of widespread weakness—10 out of 11 holdings posted significant declines, and this industry allocation had the worst overall return in the IT sector. The key IT services and internet infrastructure detractors included MongoDB, Cloudflare, Snowflake and Twilio. In particular, MongoDB, which offers an innovative document database used by nearly 40,000 businesses, reported better-than-expected earnings per share, operating income, billings, and revenue in its quarterly financials released during the period. However, the company’s outlook and commentary were disappointing, with guidance generally coming in slightly below analyst forecasts, implying a slowdown. There was growing concern that a challenging economic environment would impact MongoDB’s ability to expand its relationship with existing customers.

Elsewhere in the portfolio, our results in the communication services sector were hurt by the selloffs in ZoomInfo Technologies and Alphabet in the interactive media and services industry; their negative impact was amplified by the fact they were major holdings that began the reporting period at a combined 10.6% of total net assets. Ahead of the deterioration in its equity value, ZoomInfo Technologies, which enables business-to-business marketing strategies by leveraging AI (artificial intelligence), and technographic and firmographic data, started the annual period on a high note, with quarterly sales and earnings that topped consensus expectations, including a 54% surge in revenues year over year. ZoomInfo’s platform strategy resonated with customers and helped deliver another record quarter in the second quarter of 2022, combining strong revenue growth, profitability and free cash flow—all of which prompted management to raise its full-year earnings outlook. The company also noted that it had 1,763 customers with US$100,000 or greater in annual contract value at the end of June 2022, up from 1,100 customers a year earlier.

Technology-oriented REITs (real estate investment trusts) were another area of distinct weakness as the shares of Crown Castle International and SBA Communications posted substantial 12-month losses. The Fund also kept a small exposure to professional services companies in the industrials sector, where TransUnion and TaskUs (sold by period-end) both saw their equity values substantially reduced.

In positive contrast, the Fund’s four advancing industry allocations were (in descending order of impact) communications equipment; wireless telecommunication services; capital markets; and electronic equipment, instruments and components. Across the entire portfolio, only 11 out of 42 individual securities lent material support to our returns, and their combined impact was small relative to the magnitude of the detractors.

In the IT sector, key contributor Arista Networks (a builder of scalable high-performance and ultra-low-latency networks) was our sole position in communications equipment, while the advance in electronic equipment, instruments and components was due exclusively to Keysight Technologies (electronics test and measurement equipment and software). The other notable IT sector contributors pared the losses in IT services (led by technology research and consulting service provider Gartner), and in software, where Fair Isaac and Microsoft were the best of eight net contributors. In particular, Fair Isaac—known for consumer credit scoring and business data analytics—was the Fund’s top overall contributor for the year under review, having posted a robust gain, while most of its peers were selling off. Although Fair Isaac’s revenue comes from its traditional FICO credit-scoring systems, the revenue stream tied to its newer software-as-a-service (SaaS) division has grown rapidly as it offers corporate customers a range of tools to help their companies run more efficiently. This segment leverages predictive modeling, transaction profiling, decision analysis and AI to help companies gain unique, actionable insights. Within these SaaS offerings come increasingly sought-after productivity tools, machine learning models, data retrieval and mapping solutions, real-time data insights, business outcome simulators, and pre-configured solutions such as fraud prevention. As a result, the software division drove Fair Isaac’s stock sharply higher and to record highs. Its management offered investors strong forward earnings guidance for fiscal year 2023 as the company continues to expand its market share and pursue international opportunities; its products are now used by businesses in more than 120 countries.

In the communication services sector, wireless telecommunication services provider T-Mobile US was the only contributor of substance, while overall declines in the real estate sector were partially offset by Equinix, a real estate investment trust focused on data centers and other digital infrastructure. In the financials sector, two out of four positions in the capital markets industry advanced, led by a modest rally in the shares of MSCI, which is widely regarded as the industry standard in constructing and maintaining international equity indices and ESG (environmental, social and governance) indices, along with related data analytics and research.



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FRANKLIN EXPONENTIAL DATA ETF

Thank you for your participation in Franklin Exponential Data ETF. We look forward to serving your future investment needs.

Matthew J. Moberg, CPA

Lead Portfolio Manager

Kelly Rogal, CFA

Portfolio Manager



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FRANKLIN EXPONENTIAL DATA ETF

Performance Summary as of March 31, 2023

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 3/31/23¹



	Cumulative Total Return²				Average Annual Total Return²
	Based on NAV³		Based on market price⁴		Based on NAV³		Based on market price⁴
1-Year		-25.99%		-26.17%		-25.99%		-26.17%
Since Inception (1/12/21)		-32.56%		-99.98%		-16.30%		-98.03%

See page 22 for Performance Summary footnotes.



20	Annual Report	franklintempleton.com

FRANKLIN EXPONENTIAL DATA 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.

1/12/21-3/31/23

LOGO

See page 22 for Performance Summary footnotes.



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FRANKLIN EXPONENTIAL DATA ETF

PERFORMANCE SUMMARY

Total Annual Operating Expenses⁶

0.50%

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 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 Russell 3000^® Index is market capitalization-weighted and measures the performance of the largest 3,000 U.S. companies representing the majority of the U.S. market’s total capitalization.

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



22	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 10/1/22		Ending Account Value 3/31/23		Expenses Paid During Period 10/1/22–3/31/23¹		Ending Account Value 3/31/23		Expenses Paid During Period 10/1/22–3/31/23¹		Net Annualized Expense Ratio
	$1,000.00		$1,067.80		$2.58		$1,022.44		$2.52		0.50	%



franklintempleton.com	Annual Report	23

Franklin Genomic Advancements ETF

This annual report for Franklin Genomic Advancements ETF covers the fiscal year ended March 31, 2023.

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, predominantly common stock, of companies that are relevant to the Fund’s investment theme of genomic advancements. These companies include those that we believe are substantially focused on and/or are expected to substantially benefit from extending and enhancing the quality of human and other life (e.g. animals) through technological and scientific developments, improvements and 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 -17.71% based on market price and -17.84% based on net asset value (NAV). In comparison, the Russell 3000^® Index, which measures the performance of the largest 3,000 U.S. companies representing the majority of the U.S. market’s total capitalization, posted a -8.58% cumulative total return for the same period.¹ You can find more of the Fund’s performance data in the Performance Summary beginning on page 27.

Economic and Market Overview

U.S. equities, as measured by the Standard & Poor’s^® 500 Index (S&P 500^®), posted a -7.73% total return for the 12 months ended March 31, 2023.1 High inflation, rising interest rates and geopolitical instability contributed to a sharp decline in equity prices. Consumer spending continued to

rise, but deteriorating financial conditions and investors’ expectations for slower growth pressured equity markets.

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 Schedule of Investments (SOI). The SOI begins on page 129.



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FRANKLIN GENOMIC ADVANCEMENTS ETF


Portfolio Composition

3/31/23

	% of Total Net Assets

Life Sciences Tools & Services		46.1%

Biotechnology		34.0%

Pharmaceuticals		4.8%

Health Care Equipment & Supplies		4.2%

Chemicals		3.6%

Health Care Providers & Services		2.1%

Other		3.8%

Other Net Assets		1.4%


Top 10 Holdings

3/31/23

Company *Sector/Industry*	% of Total Net Assets

Thermo Fisher Scientific, Inc. Life Sciences Tools & Services		6.6%

Danaher Corp. Life Sciences Tools & Services		5.8%

Repligen Corp. Life Sciences Tools & Services		5.5%

Sartorius AG Health Care Equipment & Supplies		4.2%

Medpace Holdings, Inc. Life Sciences Tools & Services		4.0%

Regeneron Pharmaceuticals, Inc. Biotechnology		3.8%

Moderna, Inc. Biotechnology		3.8%

Vertex Pharmaceuticals, Inc. Biotechnology		3.5%

Samsung Biologics Co. Ltd. Life Sciences Tools & Services		3.2%

Bruker Corp. Life Sciences Tools & Services		3.1%

Investment Strategy

We seek to identify, using our own fundamental, bottom-up research and analysis, companies positioned to capitalize on disruptive innovation in or that are enabling the further development of the genomic advancements theme in the markets in which they operate. Our internal research and analysis leverages insights from diverse sources, including external research, to develop or refine our investment theme and identify and take advantage or trends that have ramifications for individual companies or entire industries. We also evaluate market segments, products, services and

business models positioned to benefit significantly from advancements in genomics relative to broad securities markets, and we 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., including those in developing or emerging markets. Although we may invest across economic sectors, we expect to concentrate our investments in health care-related industries.

Manager’s Discussion

During the 12 months under review, all of the Fund’s core areas of investment—life sciences tools and services, biotechnology and pharmaceuticals—experienced widespread absolute declines under bear market conditions, though their overall returns did see some improvement in the latter half of the year. The modest gains accumulated from mid-October through March were, however, achieved amid additional bouts of market volatility and were not nearly enough to compensate for the magnitude of declines sustained in the first six months of the period.

Some of our larger positions in the life sciences tools and services industry had a disproportionately negative impact on returns, including Avantor, a chemicals and materials company that supplies the life sciences, advanced technologies and applied materials industries; Charles River Laboratories International, which specializes in outsourced preclinical research for the biopharma industry; Danaher, which makes diagnostic tools for a wide range of medical, scientific, industrial and commercial applications; and Repligen, which develops and manufactures materials used to make biologic drugs.

Within the biotechnology industry, our sizable positions in Intellia Therapeutics, which develops therapeutics using a CRISPR gene editing system; and Germany-based immunotherapy drug and mRNA-based vaccine developer BioNTech, were at the top of an extensive list of detractors. At the same time, Catalent (global provider of outsourced drug development and drug manufacturing) and British multinational pharmaceutical giant GSK—both of which we completely sold by period-end—were the worst of several detractors that hurt performance in the pharmaceuticals industry.

To a lesser extent, returns in six out of eight other, smaller industry allocations were also negative for the year under review, including a steep loss in health care services that was tied primarily to Guardant Health, a precision oncology company engaged in the treatment of cancer through the



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FRANKLIN GENOMIC ADVANCEMENTS ETF

use of proprietary blood-based tests, vast data sets, and advanced analytics, and which shed more than half of its equity value. In the semiconductors industry, we held a solitary investment in chipmaker NVIDIA that was detrimental based on the timing of our trading around the stock, having sold it after it shed roughly half of its equity value, and just ahead of a strong rally that took place in early 2023. Elsewhere in the portfolio, all four of our holdings in the health care technology industry traded lower, as did our solitary position in the Office REITs industry—Alexandria Real Estate Equities, which invests in office buildings and laboratories leased to tenants in the life sciences and technology industries.

In terms of what helped the Fund during the year under review, there were only eight substantive contributors across the portfolio, along with a handful of negligible ones that had almost no impact on returns. Most of them were situated in the biotechnology industry, where six companies bucked the overall downtrend with solid, double-digit percentage gains (in descending order of positive impact): Regeneron Pharmaceuticals, Vertex Pharmaceuticals, Sarepta Therapeutics (purchased during the period), Exact Sciences (purchased during the period), Krystal Biotech and Iveric Bio (purchased during the period). Several others surfaced in the life sciences tools and services industry, where contract research organization Medpace Holdings and Bruker, a manufacturer of scientific instruments for molecular and materials research, enjoyed solid rallies and were accompanied by a few other, minor contributors.

The only other notable contributors were multinational drugmaker Eli Lilly in pharmaceuticals, and our newly-initiated stake in Cadence Design Systems (software, hardware and intellectual properties used to design microchips, related systems and printed circuit boards), which was our sole investment in the application software industry.

Thank you for your participation in Franklin Genomic Advancements ETF. We look forward to serving your future investment needs.

Matthew J. Moberg, CPA

Lead Portfolio Manager

Kelly Rogal, CFA

Portfolio Manager



26	Annual Report	franklintempleton.com

FRANKLIN GENOMIC ADVANCEMENTS ETF

Performance Summary as of March 31, 2023

Performance as of 3/31/23¹

Cumulative Total Return²

Average Annual Total Return²

Based on
NAV³

Based on
market price⁴

Based on
NAV³

Based on
market price⁴

1-Year

-17.84%

-17.71%

-17.84%

-17.71%

3-Year

+35.13%

+36.31%

+10.56%

+10.88%

Since Inception (2/25/20)

+22.05%

+21.97%

+6.65%

+6.62%

See page 29 for Performance Summary footnotes.



franklintempleton.com	Annual Report	27

FRANKLIN GENOMIC ADVANCEMENTS 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.

2/25/20-3/31/23

LOGO

See page 29 for Performance Summary footnotes.



28	Annual Report	franklintempleton.com

FRANKLIN GENOMIC ADVANCEMENTS ETF

PERFORMANCE SUMMARY

Total Annual Operating Expenses⁶

0.50%

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.

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



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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 10/1/22		Ending Account Value 3/31/23		Expenses Paid During Period 10/1/22–3/31/23¹		Ending Account Value 3/31/23		Expenses Paid During Period 10/1/22–3/31/23¹		Net Annualized Expense Ratio
	$1,000.00		$1,024.30		$2.52		$1,022.44		$2.52		0.50	%



30	Annual Report	franklintempleton.com

Franklin High Yield Corporate ETF

Formerly, Franklin Liberty High Yield Corporate ETF

This annual report for Franklin High Yield Corporate ETF covers the fiscal year ended March 31, 2023.

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 normally 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 bonds, notes, debentures, convertible securities, bank loans and corporate loans, and senior and subordinated debt securities.

Performance Overview

During the 12 month period, the Fund posted cumulative total returns of -1.46% based on market price and -2.68% based on net asset value (NAV). In comparison, the ICE BofA U.S. High Yield Constrained Index, which tracks the performance of U.S. dollar denominated below investment-grade corporate debt publicly issued in the U.S. domestic market, posted a -3.58% cumulative total return for the same period.¹ You can find more of the Fund’s performance data in the Performance Summary beginning on page 34.

Economic and Market Overview

The U.S. bond market, as measured by the Bloomberg U.S. Aggregate Bond Index, posted a -4.78% total return for the

12-month period ended March 31, 2023.¹ High inflation amid a strong labor market led to significantly tighter monetary policy, reducing the value of most bonds. While interest rates increased along the yield curve for all U.S. Treasury maturities, relatively large increases in shorter-term interest rates led the yield curve to invert during the period as

investors became increasingly concerned about the economic outlook.

In an effort to control inflation, the U.S. Federal Reserve (Fed) raised the federal funds target rate at each of its eight meetings during the period to end at a range of 4.75%– 5.00%, a full 450 basis points higher than at the beginning of the period. The Fed noted in its March 2023 meeting that inflation remained elevated amid robust job growth and low unemployment. Despite its goal of 2% long-run inflation, the Fed softened its firm outlook on future rate hikes. Furthermore, the Fed indicated it would continue to reduce its U.S. Treasury (UST) and agency debt and mortgage-backed security holdings.

UST bonds, as measured by the Bloomberg U.S. Treasury Index, posted a -4.51% total return for the 12-month period.¹ The 10-year UST yield, which moves inversely to price, increased sharply amid high inflation and the Fed’s tightening monetary stance. Mortgage-backed securities (MBS), as measured by the Bloomberg U.S. MBS Fixed Rate Index, posted a -4.85% total return for the period as mortgage rates rose to the highest level in over two decades and modest prepayment rates led to increasing interest-rate sensitivity.¹

Corporate bond prices also declined, constrained by inflation, rising interest rates and concerns about the impact of elevated interest rates on corporate borrowing costs and the wider economy. In this environment, high-yield corporate bonds, as represented by the Bloomberg U.S. Corporate High Yield Index, posted a -3.34% total return, while investment-grade corporate bonds, as represented by the Bloomberg U.S. Corporate Investment Grade Index, posted a -5.55% total return.¹

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 Schedule of Investments (SOI). The SOI begins on page 132.



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FRANKLIN HIGH YIELD CORPORATE ETF


Portfolio Composition

3/31/23

	% of Total Net Assets

Corporate Bonds & Notes		89.7%

Senior Floating Rate Interests		3.9%

Short-Term Investments & Other Net Assets		6.4%


Top 10 Sectors/Industries

3/31/23

	% of Total Net Assets

Energy		15.8%

Media & Entertainment		11.2%

Materials		9.4%

Financial Services		5.3%

Consumer Services		4.6%

Utilities		4.6%

Commercial & Professional Services		4.5%

Capital Goods		3.9%

Automobiles & Components		3.7%

Health Care Equipment & Services		3.5%

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, including covenant lite loans. The Fund may also invest in defaulted debt securities and 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 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. The Fund is an actively managed ETF and, thus, does not seek to replicate the performance of a specified index.

Manager’s Discussion

As the Fed had remained firmly on a hawkish rate path throughout 2022, its rate hike in September 2022 marked the third consecutive 75 basis point (bp) increase. The Fed ended the year with two additional rate increases of 75 bps and 50 bps at its November and December Federal Open Market Committee meetings. In the last few months of 2022, markets focused on slowing inflation data and investors grappled with the potential timing of the transition from a rate hiking cycle to a potential Fed pivot. Against this backdrop, the Fed followed up with two additional 25-bp rate increases at its February and March 2023 meetings. Although investors were encouraged by a general downward trend in inflation data at the beginning of 2023’s first quarter, sentiments were negatively affected in the second half of March as the failure of Silicon Valley Bank spawned additional concerns over the health of U.S. regional and Swiss banks.

In the current environment where labor costs remain a challenge and raw material and logistics costs remain somewhat elevated, the ability to offset costs with price increases has become more tenuous. As such, the variable impact to corporate earnings is likely to drive more fundamental dispersion between winners and losers. Against this backdrop, we remain focused on companies that have capital structures and liquidity profiles that we believe will withstand the potential economic challenges that lie ahead.

Based on benchmark index data, high-yield (HY) spreads generally widened during the 12-month period under review. Most segments of the HY market posted negative absolute returns for the performance period under review. CCC rated bonds returned -8.8%, compared to returns of -3.8% and -2.3% for B and BB rated segments, respectively. From an industry standpoint, the transportation industry stood out as a key performer, followed by the capital goods segment.

The Fund’s yield-curve positioning contributed to performance during the 12-month period under review. Conversely, the Fund’s ratings-quality tilt hindered results.



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The Fund’s sector/industry allocations contributed to relative performance for the period, led by overweight positions in energy and industrials and underweight positions in retail. Conversely, underweight positions in aerospace and defense, and in food and beverages, and an overweight position in the media non-cable segment hindered results.

The Fund’s security selection also benefited performance, particularly in the media cable, wired segment and in information technology. Conversely, selection in the energy, health care and financials sectors detracted from results.

The Fund held mostly cash bonds during the period under review. The Fund had no exposure to derivatives at the end of the review period.


Top 10 Holdings

3/31/23

Company *Sector/Industry*	% of Total Net Assets

Federal Home Loan Bank Discount Notes, 4/03/23		3.0%

Vistra Operations Co. LLC, 5.50%, 9/01/26 Utilities		1.4%

TransDigm, Inc., 6.25%, 3/15/26 Capital Goods		1.3%

Martin Midstream Partners LP/Martin Midstream Finance Corp., 11.50%, 2/15/28 Pipelines		1.1%

American Airlines, Inc./AAdvantage Loyalty IP Ltd., 5.50%, 4/20/26 Airlines		1.0%

DaVita, Inc., 4.625%, 6/01/30 Health Care Equipment & Services		1.0%

United Rentals North America, Inc., 5.50%, 5/15/27 Commercial Services		1.0%

Banijay Entertainment SASU, 5.375%, 3/01/25 Media & Entertainment		1.0%

Jaguar Land Rover Automotive PLC, 5.50%, 7/15/29 Automobiles & Components		1.0%

Harbour Energy PLC, 5.50%, 10/15/26 Energy		1.0%

Thank you for your participation in Franklin 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



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FRANKLIN HIGH YIELD CORPORATE ETF

Performance Summary as of March 31, 2023

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 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 (6/1/18), 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 3/31/23¹

Cumulative Total Return²

Average Annual Total Return²

Based on
NAV³

Based on
market price⁴

Based on
NAV³

Based on
market price⁴

1-Year

-2.68%

-1.46%

-2.68%

-1.46%

3-Year

+18.20%

+20.20%

+5.73%

+6.32%

Since Inception (5/30/18)

+20.07%

+21.26%

+3.85%

+4.07%


Distribution Rate⁵	30-Day Standardized Yield⁶
3.86%		7.74%

See page 36 for Performance Summary footnotes.



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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.

5/30/18-3/31/23

LOGO

See page 36 for Performance Summary footnotes.



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FRANKLIN HIGH YIELD CORPORATE ETF

PERFORMANCE SUMMARY

Distributions (4/1/22–3/31/23)



Net Investment Income	Short-Term Capital Gain	Total
$1.361285	$0.065483	$1.426768

Total Annual Operating Expenses⁸

0.40%

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 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 3/31/23.

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: FactSet. 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.

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

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



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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 10/1/22		Ending Account Value 3/31/23		Expenses Paid During Period 10/1/22–3/31/23¹		Ending Account Value 3/31/23		Expenses Paid During Period 10/1/22–3/31/23¹		Net Annualized Expense Ratio
	$1,000.00		$1,084.60		$2.08		$1,022.94		$2.02		0.40	%



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Franklin Intelligent Machines ETF

This annual report for Franklin Intelligent Machines ETF covers the fiscal year ended March 31, 2023.

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, predominantly common stock, of companies that are relevant to the Fund’s investment theme of intelligent machines. These companies include those that we believe are substantially focused on and/or are expected to substantially 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 -4.44% based on market price and -4.62% based on net asset value (NAV). In comparison, the Russell 3000^® Index, which measures the performance of the largest 3,000 U.S. companies representing the majority of the U.S. market’s total capitalization, posted a -8.58% cumulative total return for the same period.¹ You can find more of the Fund’s performance data in the Performance Summary beginning on page 42.

Economic and Market Overview

rise, but deteriorating financial conditions and investors’ expectations for slower growth pressured equity markets.

1. Source: Morningstar.

The dollar value, number of shares or principal amount, and names of all portfolio holdings are listed in the Fund’s Schedule of Investments (SOI). The SOI begins on page 140.



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Portfolio Composition

3/31/23

	% of Total Net Assets

Semiconductors & Semiconductor Equipment		36.0%

Software		22.9%

Health Care Equipment & Supplies		10.6%

Electronic Equipment, Instruments & Components		8.9%

Computers & Peripherals		4.6%

Automobiles		4.6%

Aerospace & Defense		3.2%

Construction & Engineering		3.0%

Industrial Conglomerates		2.1%

Other		2.7%

Other Net Assets		1.4%


Top 10 Holdings

3/31/23

Company *Sector/Industry*	% of Total Net Assets

NVIDIA Corp. Semiconductors & Semiconductor Equipment		7.1%

ASML Holding NV Semiconductors & Semiconductor Equipment		4.9%

Tesla, Inc. Automobiles		4.6%

Apple, Inc. Technology Hardware, Storage & Peripherals		4.6%

Cadence Design Systems, Inc. Software		4.3%

Intuitive Surgical, Inc. Health Care Equipment & Supplies		4.1%

Synopsys, Inc. Software		4.1%

Keyence Corp. Electronic Equipment, Instruments & Components		3.4%

Axon Enterprise, Inc. Aerospace & Defense		3.2%

Descartes Systems Group, Inc. Software		3.0%

Investment Strategy

We seek to identify, using our own fundamental, bottom-up research and analysis, companies positioned to capitalize on disruptive innovation in or that are enabling the further development of the intelligent machines theme in the markets in which they operate. Our internal research and analysis leverages insights from diverse sources, including external research, to develop and refine its investment theme

and identify and take advantage of trends that have ramifications for individual companies or entire industries. We also 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 we 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., including those in developing or emerging markets. Although we may invest across economic sectors, we expect to have significant investments in particular sectors, including technology.

Manager’s Discussion

During the 12 months under review, the Fund was invested in 16 different industries, and only six of them produced positive absolute returns. This was an improvement from the midpoint of the annual period, when all 16 were in negative territory. Although the impressive gains made from October through March recovered most of the steep overall losses incurred in the first half of the year, it was not enough to eliminate weakness that was focused primarily on electric vehicle (EV) manufacturers such as Tesla, which was by far the Fund’s largest individual detractor from absolute returns.

On average, Tesla was the Fund’s biggest investment, and its sharp loss for the year overall would have been worse if not for the solid recovery the company staged in early 2023, as previous concerns centered on rising interest rates and consumer demand began to abate. U.S.-based Tesla has been expanding its footprint as a multinational automotive and clean energy company as it continues to accelerate the world’s transition to sustainable energy. Its manufacturing scope continues to broaden across electric vehicles, battery energy storage solutions (from home to utility grid scale), solar panels and roof tiles, and related services. Late in the period, Tesla released broadly in-line fourth-quarter and full-year 2022 financial results with demand commentary that appeared to ease investor anxiety, owing in part to the specter of lower gross profit margins following recent vehicle price reductions and higher unabsorbed fixed costs associated with factories ramping up in Berlin (Germany) and Austin (USA); it also picked an industrial cluster in Mexico as the location for the construction of its next gigafactory as it continues to expand capacity at a rapid clip. Last year saw several record-breaking achievements as Tesla reported its highest-ever quarterly revenue and



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FRANKLIN INTELLIGENT MACHINES ETF

operating and net income. Moreover, the EV specialist generated US$7.6 billion of free cash flow and delivered a record 1.31 million vehicles in 2022. We think Tesla is positioned to continue taking swaths of market share across autos and with a richer profit stream than incumbents, while also pioneering new opportunities in significant TAMs (total addressable markets) such as energy storage and possibly one day, artificial intelligence (AI) robotics.

Along with Tesla, the rest of our investments in the consumer discretionary sector anchored the Fund to the downside, as did most health care sector stocks, including standout detractors Intuitive Surgical (robotic surgery systems) and DexCom (next-generation glucose monitoring systems) in the health care equipment and supplies industry; and Azenta (specializing in sample management solutions and genomic services for drug development, clinical research and advanced cell therapies; sold by period-end) in the life sciences tools and services industry.

Within the industrials sector, the overall gains were curbed by widespread declines in the electrical equipment and machinery industries, where Rockwell Automation (industrial automation components; sold by period-end), Sunrun (photovoltaic systems and battery energy storage products) and Chart Industries (specialty equipment servicing applications in the energy, hydrogen/carbon capture and industrial gas markets; bought and sold during the period) were notable detractors.

The rest of the Fund’s major detractors weakened the overall gains among information technology (IT) sector companies. We maintained substantial exposure to tech bellwether Apple, which posted a modest decline for the year. Several smaller IT holdings, meanwhile, suffered much larger declines, including Entegris, SiTime and Wolfspeed (purchased during the period) in the semiconductors and semiconductor equipment industry; Zebra Technologies (mobile computing specialist focused on barcode printers and barcode scanners) in the electronic equipment, instruments and components industry; and several software companies including Atlassian (collaborative and quality-control software for software developers) and Dassault Systèmes (3D product design, simulation and manufacturing software).

In terms of what aided performance, the Fund received a solid boost from IT and industrials sector holdings foremost. Within IT, most software stocks were net contributors including our two largest related holdings—Cadence Design Systems and Synopsys, both of which sell electronic design automation software and services: Cadence focuses on computational software for microchip and circuit board

design, while Synopsys specializes in silicon design/verification, computer systems simulators and application security testing. Eight out of 13 other software holdings were also net contributors, including Ansys and Constellation Software. In particular, Ansys, which specializes in CAE (computer-aided engineering) and multiphysics simulation software, staged a strong comeback toward the end of the reporting period. Like other companies with heavy exposure to the industrial world, Ansys is susceptible to a slowdown in its end markets linked to any moderation in industrial production. Therefore, going into its February earnings report (covering the fourth quarter of 2022), investors were concerned about a potential cyclical slowdown for the company. Ansys showed it can generate double-digit percentage growth even in a slowing economy, based on the strong underlying growth prospects coming from the increasing use of simulation software, not least to produce data used in a so-called “digital twin”—a digital model of a physical asset. The data from digital simulations is used in IoT (internet of things) platforms that connect the digital world with the physical world to predict the physical asset’s behavior better. In addition to giving engineers the power to see how their ideas would perform against millions of variables, it also reduces waste. The company’s latest financial metrics gave management enough confidence to forecast that it would grow more than revenue as the business model continues to shift towards subscription leases, and with simulation becoming an ever-increasing part of industrial customers’ innovative workflow across civil, defense, aerospace, commercial and scientific research programs. The software is helping engineers develop more complex products faster through new cloud options and optimized use of GPUs (graphics processing units) and also helping them design new materials as they seek to develop more sustainable products, including new steels, composites and short fiber reinforced plastics, to name a few.

In the electronic equipment, instruments and components industry, Keyence—a maker of sensors, machine vision systems, measuring instruments, barcode readers, programmable logic controllers and factory automation sensor products—was the best of several net contributors.

Semiconductor-related companies remained one of our core investment themes, comprising roughly a third of the portfolio’s total net assets. In general, these holdings fared poorly in 2022 before rallying solidly in the first quarter of 2023. As a result, most of them ended the annual period with overall gains. Our results were lifted primarily by ASML Holding, ASM International, Analog Devices and Infineon Technologies, though 10 others were also net contributors to absolute returns.



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Several industrials sector holdings posted strong, double-digit percentage gains, none more so than Axon Enterprise, which designs and manufactures non-lethal weapons primarily for law enforcement. To a lesser extent, further support stemmed from the rally in German multinational industrial manufacturing conglomerate Siemens, and from our positions in construction and engineering services such as Quanta Services (planning, design, installation, program management, maintenance and repair of most types of network infrastructure) and Valmont Industries, which manufactures irrigation equipment, windmill support structures, and utility poles.

Across the rest of the portfolio, the only notable contributor was insulin delivery and management systems developer Insulet, which aided our otherwise lackluster results in the health care sector.

Thank you for your continued participation in Franklin Intelligent Machines ETF. We look forward to serving your future investment needs.

Matthew J. Moberg, CPA

Lead Portfolio Manager

Kelly Rogal, CFA

Portfolio Manager



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FRANKLIN INTELLIGENT MACHINES ETF

Performance Summary as of March 31, 2023

Performance as of 3/31/23¹

Cumulative Total Return²

Average Annual Total Return²

Based on

NAV³

Based on

market price⁴

Based on

NAV³

Based on

market price⁴

1-Year

-4.62%

-4.44%

-4.62%

-4.44%

3-Year

+114.05%

+114.18%

+28.87%

+28.90%

Since Inception (2/25/20)

+76.97%

+76.65%

+20.25%

+20.18%

See page 44 for Performance Summary footnotes.



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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.

2/25/20-3/31/23

LOGO

See page 44 for Performance Summary footnotes.



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PERFORMANCE SUMMARY

Total Annual Operating Expenses⁶

0.54%

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.

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



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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 10/1/22		Ending Account Value 3/31/23		Expenses Paid During Period 10/1/22–3/31/23¹		Ending Account Value 3/31/23		Expenses Paid During Period 10/1/22–3/31/23¹		Net Annualized Expense Ratio
	$1,000.00		$1,305.70		$2.87		$1,022.44		$2.52		0.50	%



franklintempleton.com	Annual Report	45

Franklin International Aggregate Bond ETF

Formerly, Franklin Liberty International Aggregate Bond ETF

This annual report for Franklin International Aggregate Bond ETF covers the fiscal year ended March 31, 2023.

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. Bonds include debt obligations of any maturity, such as bonds, notes, bills and debentures.

Geographic Composition*

3/31/23


	% of Total Net Assets

Europe		52.9%

Asia		22.1%

North America		6.3%

Australia & New Zealand		3.2%

Latin America & Caribbean		1.8%

Supranationals		1.7%

Middle East & Africa		1.1%

Short-Term Investments & Other Net Assets		10.9%

*Categories within the Other category are listed in full in the Fund’s Schedule of Investments (SOI), which can be found later in this report.

Performance Overview

During the 12-month period, the Fund posted cumulative total returns of -2.33 based on market price and -2.38% based on net asset value (NAV). In comparison, the Fund’s benchmark, the Bloomberg Global Aggregate Bond ex-USD Index (100% Hedged to USD), which measures global investment-grade debt from 24 local currency markets, posted a -3.27% cumulative total return.¹ You can find more of the Fund’s performance data in the Performance Summary beginning on page 49.

figures shown. For most recent month-end performance, go to franklintempleton.com or call (800) 342-5236.

Economic and Market Overview

During the 12-month reporting period, global aggregate bond markets posted significantly negative returns.

U.S. inflation maintained its upward trend over the second quarter of 2022. This caused the U.S. Federal Reserve (Fed) to raise rates by 50 basis points (bps) in early May 2022, then again in June by an unexpected 75 bps. Given persistently rising inflation, the Fed raised rates by a further 75 bps in July. After a hawkish Jackson Hole address from Fed Chair Jerome Powell in August, the central bank hiked rates by another 75 bps in September. The Fed then raised rates by 75 bps early in November but by only 50 bps in December 2022, amid signs of easing inflation. Despite this softer stance, Fed Chair Powell pushed back on investor expectations of a rate cut toward the end of 2023.

Although the Fed raised rates in its February 2023 meeting by only 25 bps, increased investor concerns that U.S. inflation was reaccelerating precipitated a wide sell-off in bonds. While March 2023 was accompanied by further volatility amid concerns about the banking sector, the Fed raised rates by a further 25 bps in March. Against this backdrop, benchmark 10-year U.S. Treasury yields showed extreme volatility but, for the 12-month period review period overall, rose by over 100 bps.

In Europe, after initially holding back from raising the cost of borrowing, the European Central Bank (ECB) raised rates by an unexpected 50 bps in July 2022, 75 bps in both September and October, then in December 2022 by 50 bps. Data released in January 2023 showed that the eurozone economy had grown marginally in the fourth quarter of 2022, despite market expectations of a recession. Although headline inflation slowed significantly, core inflation remained elevated. As a result, the ECB hiked rates by 50 bps at both its February and March 2023 meetings. In European fixed income markets, amid heightened volatility, benchmark 10-year German Bund yields were up almost 170 bps for the 12-month period.

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 Schedule of Investments (SOI). The SOI begins on page 143.



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Portfolio Composition*

3/31/23



	% of Total Net Assets

Foreign Government and Agency Securities		85.2%

Corporate Bonds & Notes		3.9%

Short-Term Investments & Other Net Assets		10.9%

*Categories within the Other category are listed in full in the Fund’s Schedule of Investments (SOI), which can be found later in this report.

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. Bonds may be denominated and issued in the local currency or in another currency. 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 without limit in developing or emerging markets.

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.

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 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 significant 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.

Manager’s Discussion

The Fund’s duration and yield-curve positioning helped relative results, mostly due to duration stances on eurozone, U.K. and Japanese bonds. However, duration positioning in Chinese and Canadian bonds hindered relative performance.

The Fund’s local market allocation further contributed to relative returns, namely an overweight exposure to the outperforming U.S. market and an underweight position in the underperforming U.K. market. Nonetheless, underweight allocations to the Chinese, Indonesian and South Korean markets, all of which bettered the benchmark, weighed on relative results, as did an overweight exposure to the underperforming eurozone market.

In contrast, the Fund’s security selection weighed on relative performance, but sector allocation had a neutral impact. Selection in investment-grade financial bonds and hard-currency emerging market debt subtracted from relative value. Conversely, an overweight exposure to German Bunds had a positive influence on relative returns.

The Fund’s currency positioning also detracted from relative results, largely owing to overweight exposures to the Chinese renminbi and Canadian dollar, both of which were down versus the U.S. dollar. In contrast, underweight allocations to the Japanese yen, British pound and euro, all of which also depreciated against the U.S. dollar, added to relative value.

In terms of derivatives use, currency forwards are 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. For the period under review, derivatives use added 593 bps to the Fund’s performance, as the U.S. dollar rose slightly against most other major currencies.



franklintempleton.com	Annual Report	47

FRANKLIN INTERNATIONAL AGGREGATE BOND ETF

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

John W. Beck

Co-Lead Portfolio Manager

Sonal Desai, Ph.D.

Co-Lead Portfolio Manager

David Zahn, CFA

Patrick Klein, Ph.D.

Portfolio Management Team



48	Annual Report	franklintempleton.com

FRANKLIN INTERNATIONAL AGGREGATE BOND ETF

Performance Summary as of March 31, 2023

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 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 (6/1/18), 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 3/31/23¹



	Cumulative Total Return²				Average Annual Total Return²
	Based on NAV³		Based on market price⁴		Based on NAV³		Based on market price⁴
1-Year		-2.38%		-2.33%		-2.38%		-2.33%
3-Year		-4.96%		-4.91%		-1.68%		-1.66%
Since Inception (5/30/18)		-1.11%		-0.75%		-0.23%		-0.15%

Distribution Rate⁵

30-Day

Standardized Yield⁶

13.73%

2.54%

See page 51 for Performance Summary footnotes.



franklintempleton.com	Annual Report	49

FRANKLIN INTERNATIONAL AGGREGATE BOND 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.

5/30/18-3/31/23

LOGO

See page 51 for Performance Summary footnotes.



50	Annual Report	franklintempleton.com

FRANKLIN INTERNATIONAL AGGREGATE BOND ETF

PERFORMANCE SUMMARY

Distributions (4/1/22–3/31/23)

Net Investment
Income

$3.480729

Total Annual Operating Expenses⁸

0.25%

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. 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 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 3/31/23.

7. Source: FactSet. The Bloomberg 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. Bond issued in USD are excluded.

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



franklintempleton.com	Annual Report	51

FRANKLIN INTERNATIONAL AGGREGATE BOND ETF

Your Fund’s Expenses

Actual Fund Expenses

The table below provides information about actual account values and actual expenses in the columns under the heading “Actual.” In these columns the Fund’s actual return, which includes the effect of Fund expenses, is used to calculate the “Ending Account Value.” You can estimate the expenses you paid during the period by following these steps (of course, your account value and expenses will differ from those in this illustration): Divide your account value by $1,000 (if your account had an $8,600 value, then $8,600 ÷ $1,000 = 8.6). Then multiply the result by the number in the row under the headings “Actual” and “Expenses Paid During Period” (if Actual Expenses Paid During Period were $7.50, then 8.6 × $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 10/1/22		Ending Account Value 3/31/23		Expenses Paid During Period 10/1/22–3/31/23¹		Ending Account Value 3/31/23		Expenses Paid During Period 10/1/22–3/31/23¹		Net Annualized Expense Ratio
	$1,000.00		$1,013.80		$1.26		$1,023.69		$1.26		0.25	%



52	Annual Report	franklintempleton.com

Franklin Investment Grade Corporate ETF

Formerly, Franklin Liberty Investment Grade Corporate ETF

This annual report for Franklin Investment Grade Corporate ETF covers the fiscal year ended March 31, 2023.

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 -6.25% based on market price and -6.46% based on net asset value (NAV).¹ In comparison, the Bloomberg U.S. Corporate Investment Grade Index, which measures the performance of the investment grade, fixed-rate, taxable corporate bond market, posted a -5.55% cumulative total return for the same period.¹ You can find more of the Fund’s performance data in the Performance Summary beginning on page 56.

Economic and Market Overview

When looking back over the previous 12 months, the U.S. economic story was one of inflation, U.S. Federal Reserve (Fed) action, and volatility. As we moved into the second quarter of 2022 (Q2), the U.S. consumer remained strong with spending bolstered by excess savings and a strong U.S. job market.

Inflation became a large issue as the year-over-year change in the Consumer Price Index pushed higher into the summer months, reaching 9.1% in June 2022, the highest level since 1981, before trending lower. The U.S. job market also showed strong resilience with a monthly average of 362,000 jobs created during the 12-month period under review. The

unemployment rate fell to 3.4% in January 2023, the lowest level since 1969.

The Fed was slow to act toward inflation as it initially considered rapid price increases as “transitory.” The Fed capitulated and initiated a program of rapid rate increases at a pace not seen since the 1980s. Over the period under review, the Fed raised its policy rate by a total of 4.50%, taking it to a restrictive level of 4.75% - 5.00%. U.S. Treasury (UST) yields rose over the period with the benchmark 10-year UST rising 113 basis points (bps), however, there was significant volatility along the way.

U.S. corporate bond spreads also saw significant volatility. Spreads generally widened during 2022 as funds flowed out of the sector due to concerns of a possible recession. This trend reversed during the first part of 2023 with spreads tightening as confidence in the Fed increased. However, in March 2023, Silicon Valley Bank faced a liquidity crisis leading regulators to step in to support deposits. This led to an increase in corporate bond spreads, particularly in the financials sector. Although there was some recovery, spreads ended the period modestly wider versus March 2022.

Top 10 Sectors/Industries

3/31/23


	% of Total Net Assets

Banks		21.7%

Electric Utilities		7.0%

Financial Services		4.7%

Electric		4.4%

Health Care Providers & Services		3.9%

Biotechnology		3.9%

Insurance		3.5%

Oil, Gas & Consumable Fuels		2.9%

Food		2.9%

Media		2.4%

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 Schedule of Investments (SOI). The SOI begins on page 148.



franklintempleton.com	Annual Report	53

FRANKLIN INVESTMENT GRADE CORPORATE ETF

Investment Strategy

The Fund invests primarily in U.S. dollar-denominated corporate debt securities issued by U.S. and foreign companies. The Fund may invest in debt securities of any maturity or duration. The Fund may also invest a portion of its assets in convertible securities, preferred securities (including preferred stock) 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.

Top 10 Holdings

3/31/23


Issue/Issuer	% of Total Net Assets

Verizon Communications, Inc., senior bond, 3.40%, 3/22/41		1.7%

Amgen, Inc., 5.60%, 3/02/43		1.4%

Goldman Sachs Group, Inc., 2.64% to 2/24/27, FRN thereafter, 2/24/28		1.4%

Bank of America Corp., Series L, 4.183%, 11/25/27		1.3%

T-Mobile USA, Inc., 2.875%, 2/15/31		1.3%

Kenvue, Inc., 4.90%, 3/22/33		1.3%

Wells Fargo & Co., 4.808% to 7/25/27, FRN thereafter, 7/25/28		1.3%

Vistra Operations Co. LLC, senior secured note, first lien, 3.55%, 7/15/24		1.2%

Elevance Health, Inc., 4.10%, 5/15/32		1.2%

BPCE SA, senior note, 5.70%, 10/22/23		1.2%

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 focus on the credit quality of its portfolio is intended to reduce credit risk and help to preserve the Fund’s capital. 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. 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.

Manager’s Discussion

Investment-grade corporate bond absolute performance was negative over the 12 months under review, curbed by a changing macroeconomic environment, fast rising UST yields and modestly wider corporate bond spreads.

The Fund performed worse than the benchmark for the 12 months under review.

The Fund’s sector allocation weighed on performance as an underweight to technology bond issues and overweight to banking names hurt our returns. This was partially offset by positive performance contributions from our overweight to electric utilities and underweight to brokerage firms.

The Fund’s bias toward lower-rated issues, particularly those rated BBB, detracted from relative results as lower-quality issues underperformed their higher-rated counterparts. We did reduce the BBB overweight significantly during the period in anticipation of slower economic growth following aggressive Fed tightening.

Security selection detracted from results, led by companies within the banking segment. The Fund’s holdings in Silicon Valley Bank hurt performance after the bank experienced liquidity issues and was taken over by regulators. However, we saw positive returns from selection in consumer cyclical and non-cyclical issues and capital goods companies.

Duration and yield curve positioning was a positive contributor to relative performance. On average, we maintained a duration slightly lower than the benchmark (especially in bonds with two years to maturity). This lifted returns as UST yields rose over the 12-month period.

The Fund primarily held cash bonds during the period. The Fund also used interest-rate futures contracts to manage duration exposure. The use of futures had a small impact on total Fund returns.

Thank you for your participation in Franklin 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



54	Annual Report	franklintempleton.com

FRANKLIN INVESTMENT GRADE CORPORATE ETF



franklintempleton.com	Annual Report	55

FRANKLIN INVESTMENT GRADE CORPORATE ETF

Performance Summary as of March 31, 2023

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 or redemption of Fund shares.

Net asset value or “NAV” is the value of one share of a fund as calculated in accordance with the standard formula for valuing mutual fund shares. The price used to calculate market return (Market Price) is determined by using the midpoint between the highest bid and the lowest offer on the primary stock exchange on which shares of a fund are listed for trading, as of the time that such fund’s NAV is calculated. Since shares of the Fund did not trade in the secondary market until after the Fund’s inception, for the period from inception to the first day of secondary trading (10/5/16), 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 3/31/23¹

Cumulative Total Return²

Average Annual Total Return²

Based on
NAV³

Based on
market price⁴

Based on
NAV³

Based on
market price⁴

1-Year

-6.46%

-6.25%

-6.46%

-6.25%

3-Year

-2.04%

-1.25%

-0.68%

-0.42%

5-Year

+6.44%

+6.85%

+1.26%

+1.33%

Since Inception (10/3/16)

+6.98%

+7.17%

+1.05%

+1.07%

Distribution Rate⁵

30-Day

Standardized Yield⁶

1.87%

4.97%

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 58 for Performance Summary footnotes.



56	Annual Report	franklintempleton.com

FRANKLIN 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.

10/3/16-3/31/23

LOGO

See page 58 for Performance Summary footnotes.



franklintempleton.com	Annual Report	57

FRANKLIN INVESTMENT GRADE CORPORATE ETF

PERFORMANCE SUMMARY

Distributions (4/1/22–3/31/23)

Net Investment
Income

$0.733018

Total Annual Operating Expenses⁸

0.35%

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.

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 3/31/23.

7. Source: FactSet. The Bloomberg U.S. Corporate Investment Grade Index measures the performance of 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.



58	Annual Report	franklintempleton.com

FRANKLIN 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 × $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 10/1/22		Ending Account Value 3/31/23		Expenses Paid During Period 10/1/22–3/31/23¹		Ending Account Value 3/31/23		Expenses Paid During Period 10/1/22–3/31/23¹		Net Annualized Expense Ratio
	$1,000.00		$1,066.80		$1.80		$1,023.19		$1.77		0.35	%



franklintempleton.com	Annual Report	59

Franklin Municipal Green Bond ETF

Formerly, Franklin Liberty Federal Tax-Free Bond ETF

This annual report for Franklin Municipal Green Bond ETF covers the fiscal year ended March 31, 2023.

Your Fund’s Goal and Main Investments

The Fund seeks to maximize income exempt from federal income taxes, including the federal alternative minimum tax, to the extent consistent with prudent investing and the preservation of shareholders’ capital, by normally investing at least 80% of its net assets in municipal securities whose interest is free from such taxes.¹ In addition, the Fund invests at least 80% of its net assets in municipal green bonds. Municipal “green bonds” are bonds that promote environmental sustainability. The Fund buys predominately municipal securities rated, at the time of purchase, in one of the top four ratings categories by one or more U.S. nationally recognized rating services (or comparable unrated or short-term rated securities).

Performance Overview

During the 12-month period, the Fund posted cumulative total returns of -1.72% based on market price and -1.68% based on net asset value (NAV). In comparison, the Bloomberg Municipal Bond Index, which is a market value-weighted index of tax-exempt, investment-grade bonds with maturities of one year or more, posted a +0.26% cumulative total return for the same period.² You can find more of the Fund’s performance data in the Performance Summary beginning on page 62.

Municipal Bond Market Overview

During the 12 months ended March 31, 2023, the U.S. Federal Reserve (Fed) continued to tighten monetary policy

as it tried to get inflation under control without tipping the economy into recession. After several hikes of 75 basis points (bps), the Fed slowed the pace of tightening to 50 bps in December 2022, followed by two 25-bp increases in February and March 2023. This last decision came in the face of regional banking sector turmoil, though fears of widespread contagion quickly abated.

2. 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 Schedule of Investments (SOI). The SOI begins on page 155.



60	Annual Report	franklintempleton.com

FRANKLIN MUNICIPAL GREEN BOND ETF


Portfolio Composition

3/31/23

	% of Total Investments

Utilities		18.04%

Industrial Development Revenue and Pollution Control		12.97%

Transportation		11.28%

Lease		10.47%

Special Tax		9.41%

Local		8.71%

Education		7.68%

Housing		7.15%

Cash		5.02%

Other		4.78%

Health Care		4.20%

Refunded		0.14%

State		0.14%

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 invest with a long-term time horizon. This means we generally hold securities in the Fund’s portfolio for income purposes, although we may sell a security at any time if we believe it could help the Fund meet its goal. With a focus on income, individual securities are considered for purchase or sale based on various factors and considerations, including credit profile, risk, structure, pricing, portfolio impact, duration management, restructuring, opportunistic trading and tax loss harvesting opportunities. The Fund is an actively managed exchange-traded fund (ETF) that does not seek to replicate the performance of a specified index.

Manager’s Discussion

During the 12-month period, the portfolio management team invested across the investment-grade quality spectrum to achieve our objective of maximizing income for our investors. As credit spreads within investment grade fluctuate, we will continue to seek the best opportunities in higher and lower quality securities. The yield curve flattened significantly over the reporting period, and the team focused on yield curve positioning in an effort to help our investors achieve high levels of tax-free income over the long term.

Thank you for your participation in Franklin Municipal Green Bond ETF. We look forward to serving your future investment needs.

Ben Barber, CFA

Daniel Workman, CFA

Francisco Rivera

James Conn, CFA

Portfolio Management Team



franklintempleton.com	Annual Report	61

FRANKLIN MUNICIPAL GREEN BOND ETF

Performance Summary as of March 31, 2023

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 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 (9/5/17), 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 3/31/23^1,2

Cumulative Total Return³

Average Annual Total Return³

Based on
NAV⁴

Based on
market price⁵

Based on
NAV⁴

Based on
market price⁵

1-Year

-1.68%

-1.72%

-1.68%

-1.72%

3-Year

-2.23%

-2.54%

-0.75%

-0.85%

5-Year

+10.16%

+9.79%

+1.95%

+1.89%

Since Inception (8/31/17)

+8.56%

+8.54%

+1.48%


Distribution Rate⁶	30-Day Standardized Yield⁷		Taxable Equivalent 30-Day Standardized Yield⁸
3.17%		3.94%		6.66%

See page 64 for Performance Summary footnotes.



62	Annual Report	franklintempleton.com

FRANKLIN MUNICIPAL GREEN BOND 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.

8/31/17-3/31/23

LOGO

See page 64 for Performance Summary footnotes.



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FRANKLIN MUNICIPAL GREEN BOND ETF

PERFORMANCE SUMMARY

Distributions (4/1/22–3/31/23)

Net Investment
Income

$0.652811

Total Annual Operating Expenses¹⁰

With Fee

Waiver

0.30%

All investments involve risks, including possible loss of principal. Because municipal bonds are sensitive to interest-rate movements, the Fund’s yield and share price will fluctuate with market conditions. Bond prices generally move in the opposite direction of interest rates. Thus, as prices of bonds in the Fund adjust to a rise in interest rates, the Fund’s share price may decline. The Fund may invest in lower rated bonds which include higher risk of default and loss of principal. Changes in the credit rating of a bond, or in the credit rating or financial strength of a bond’s issuer, insurer or guarantor, may affect the bond’s value. Some sectors might be more likely to issue green bonds, and events or factors impacting these sectors may have a greater effect on, and may more adversely affect, the Fund than they would a fund that does not invest in issuers with a common purpose. In addition, green bonds selected by the investment manager may not result in direct environmental benefits. Green bonds may not result in direct environmental benefits and the issuer may not use proceeds as intended or to appropriate new or additional projects. The managers’ environmental social and governance (ESG) investment strategies may limit the types and number of investment opportunities available and, as a result, may underperform strategies that are not subject to such criteria. ESG factors or criteria are subjective and qualitative, and the analysis by the manager may not always accurately assess ESG practices of a security or issuer, or reflect the opinions of other investors or advisors. 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. To the extent such a change impacts sectors more likely to issue green bonds, it may have a greater adverse effect on the Fund because the Fund focuses investments in green bonds. 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 total annual operating expenses are sourced from the Fund’s prospectus available at the time of publication. Actual expenses may be higher and may impact portfolio returns.

3. 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.

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

5. Assumes reinvestment of distributions based on market price.

6. Distribution rate is based on an annualization of the March dividend and the NAV per share on 3/31/23.

8. Taxable equivalent yield assumes the 2023 maximum federal income tax rate of 37.00% plus 3.80% Medicare tax.

9. Source: FactSet. The Bloomberg Municipal Bond Index is a market value-weighted index of tax-exempt, investment-grade municipal bond with maturities of one year or more.

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



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Your Fund’s Expenses

Actual Fund Expenses

The table below provides information about actual account values and actual expenses in the columns under the heading “Actual.” In these columns the Fund’s actual return, which includes the effect of Fund expenses, is used to calculate the “Ending Account Value.” You can estimate the expenses you paid during the period by following these steps (of course, your account value and expenses will differ from those in this illustration): Divide your account value by $1,000 (if your account had an $8,600 value, then $8,600 ÷ $1,000 = 8.6). Then multiply the result by the number in the row under the headings “Actual” and “Expenses Paid During Period” (if Actual Expenses Paid During Period were $7.50, then 8.6 × $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 10/1/22		Ending Account Value 3/31/23		Expenses Paid During Period 10/1/22–3/31/23¹		Ending Account Value 3/31/23		Expenses Paid During Period 10/1/22–3/31/23¹		Net Annualized Expense Ratio
	$1,000.00		$1,083.10		$1.56		$1,023.44		$1.51		0.30	%



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Franklin Senior Loan ETF

Formerly, Franklin Liberty Senior Loan ETF

This annual report for Franklin Senior Loan ETF covers the fiscal year ended March 31, 2023.

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 normally invests at least 80% of its net assets in senior loans and investments that provide exposure to senior loans. Senior loans include loans referred to as leveraged loans, bank loans and/or floating rate loans

Performance Overview

During the 12-month period, the Fund posted cumulative total returns of +2.71% based on market price and +2.53% based on net asset value (NAV). In comparison, the Fund’s benchmark, the S&P/LSTA U.S. Leveraged Loan 100 Index, which reflects the performance of the largest facilities in the leveraged loan market, posted a +2.42% cumulative total return for the same period.¹ You can find more of the Fund’s performance data in the Performance Summary beginning on page 69.

Economic and Market Overview

The U.S. bond market, as measured by the Bloomberg U.S. Aggregate Bond Index, posted a 4.78% total return for the 12-months ended March 31, 2023.² High inflation amid a strong labor market led to significantly tighter monetary policy, reducing the value of most bonds. While interest rates increased along the yield curve for all U.S. Treasury maturities, relatively large increases in shorter-term interest rates led the yield curve to invert during the period as investors became increasingly concerned about the economic outlook.

In an effort to control inflation, the U.S. Federal Reserve (Fed) raised the federal funds target rate at each of its eight meetings during the period to end at a range of 4.75% -5.00%, a full 450 basis points higher than at the beginning of the period. The Fed noted in its March 2023 meeting that inflation remained elevated amid robust job growth and low unemployment. Despite its goal of 2% long-run inflation, the Fed softened its firm outlook on future rate hikes. Furthermore, the Fed indicated it would continue to reduce its U.S. Treasury (UST) and agency debt and mortgage-backed security holdings.

UST bonds, as measured by the Bloomberg U.S. Treasury Index, posted a -4.51% total return for the 12-month period.² The 10-year UST yield (which moves inversely to price, increased sharply amid high inflation and the Fed’s tightening monetary stance. Mortgage-backed securities (MBS), as measured by the Bloomberg U.S. MBS Fixed Rate Index, posted a -4.85% total return for the period as mortgage rates rose to the highest level in over two decades and modest prepayment rates led to increasing interest-rate sensitivity.²


Portfolio Composition

3/31/23

	% of Total Net Assets

Senior Floating Rate Interests		89.0%

Corporate Bonds & Notes		4.4%

Asset-Backed Securities		0.9%

Short-Term Investments & Other Net Assets		5.7%

1. Source: FactSet.

2. 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 Schedule of Investments (SOI). The SOI begins on page 162.



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Top 10 Sectors/Industries

3/31/23

	% of Total Net Assets

Software		14.4%

Commercial Services & Supplies		7.6%

Media		7.0%

Health Care Providers & Services		5.7%

Chemicals		4.5%

Airlines		4.5%

Pharmaceuticals		3.7%

Insurance		3.5%

IT Services		3.0%

Financial Services		2.8%

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), the Secured Overnight Financing Rate (SOFR) 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 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.


Top 10 Holdings

3/31/23

Company *Sector/Industry*	% of Total Net Assets

Verscend Holding Corp., 8.84%, 8/27/2025 IT Services		1.8%

Greeneden U.S. Holdings II, LLC, 8.84%, 12/1/2027 Technology Hardware, Storage & Peripherals		1.6%

Navicure, Inc., 8.84%, 10/22/2026 Software		1.5%

Peraton Corp., 8.59%, 2/1/2028 Aerospace & Defense		1.4%

Hyland Software, Inc., 8.34%, 7/1/2024 Software		1.3%

DCert Buyer, Inc., 8.696%, 10/16/2026 Software		1.3%

Amentum Government Services Holdings LLC, 8.764%, 2/15/2029 Commercial Services & Supplies		1.3%

Gainwell Acquisition Corp., 8.998%, 10/1/2027 Health Care Providers & Services		1.2%

United Airlines, Inc., 8.568%, 4/21/2028 Passenger Airlines		1.2%

Prime Security Services Borrower LLC, 7.517%, 9/23/2026 Office Services & Supplies		1.2%

Manager’s Discussion

The loan market experienced significant volatility during the period as the Fed signaled its commitment to tackling inflation with aggressive tightening. The faster pace of rate hikes was expected to slow economic growth significantly and affect the debt servicing ability of loan issuers. Amid uncertainty about the effect of elevated interest costs on issuers with higher leverage, demand for higher quality issuers increased and BB-rated loans outperformed. Outflows from loan mutual funds increased, but weaker demand from retail investors was offset by steady collateralized loan obligation (CLO) demand and relatively lower new loan issuance.

During the period, the Fund outperformed its benchmark, the S&P/LSTA U.S. Leveraged Loan 100 Index. The Fund’s underweight in higher quality loans detracted from relative performance as the upper tier portion of the benchmark (including BB-rated loans) outperformed. The top individual detractors from performance included issuers that faced operational challenges and were also negatively impacted by credit rating downgrades. Goto Group (a provider of workplace communication software) detracted from performance after reporting revenue declines for a core



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FRANKLIN SENIOR LOAN ETF

segment, in addition to news of a security breach. Diamond Sports (an operator of regional sports networks) detracted from performance after reporting continued subscriber losses, which led to the company filing for Chapter 11 in March 2023.

However, the Fund’s selection in lower tier loans (CCC-rated) contributed to outperformance versus the benchmark as this segment in the index experienced meaningful declines during the year. Declines among lower tier loans in the index were concentrated among a handful of issuers with large weightings where we had no or minimal exposure. The top contributors to performance included larger positions that benefited from the continued economic recovery. Our position in American Airlines (a global airline operator) traded higher amid a continued recovery in air travel, and the loan contributed to performance after the company paid down and refinanced its term loan debt. Additionally, Verscend Holding (a provider of revenue cycle management services to health care payors) contributed to performance as the company continued to report strong performance. The term loan also outperformed amid demand for loans with shorter maturities in businesses that were perceived to be more defensive.

The Fund maintained its relative underweight in BB loans and overweight in B loans as of March 31, 2023. The portfolio had an underweight position in lower tier loans.

Thank you for your participation in Franklin 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

Portfolio Manger



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FRANKLIN SENIOR LOAN ETF

Performance Summary as of March 31, 2023

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 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 (6/1/18), 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 3/31/23¹

Cumulative Total Return²

Average Annual Total Return²

Based on
NAV³

Based on
market price⁴

Based on
NAV³

Based on
market price⁴

1-Year

+2.53%

+2.71%

+2.53%

+2.71%

3-Year

+17.90%

+19.84%

+5.64%

+6.22%

Since Inception (5/30/18)

+16.03%

+16.12%

+3.12%

+3.14%


Distribution Rate⁵	30-Day Standardized Yield⁶
7.99%		8.84%

See page 71 for Performance Summary footnotes.



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FRANKLIN SENIOR LOAN 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.

5/30/18-3/31/23

LOGO

See page 71 for Performance Summary footnotes.



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FRANKLIN SENIOR LOAN ETF

PERFORMANCE SUMMARY

Distributions (4/1/22–3/31/23)

Net Investment

Income

$1.437619

Total Annual Operating Expenses⁸

0.45%

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 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 3/31/23.

7. Source: FactSet. The S&P/LSTA U.S. Leveraged Loan 100 Index reflects the performance of the largest facilities in the leveraged loan market. This rules-based index consists of the 100 largest loan facilities in the benchmark S&P/LSTA Leveraged Loan Index.

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



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FRANKLIN SENIOR LOAN ETF

Your Fund’s Expenses

Actual Fund Expenses

The table below provides information about actual account values and actual expenses in the columns under the heading “Actual.” In these columns the Fund’s actual return, which includes the effect of Fund expenses, is used to calculate the “Ending Account Value.” You can estimate the expenses you paid during the period by following these steps (of course, your account value and expenses will differ from those in this illustration): Divide your account value by $1,000 (if your account had an $8,600 value, then $8,600 ÷ $1,000 = 8.6). Then multiply the result by the number in the row under the headings “Actual” and “Expenses Paid During Period” (if Actual Expenses Paid During Period were $7.50, then 8.6 × $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 10/1/22		Ending Account Value 3/31/23		Expenses Paid During Period 10/1/22–3/31/23¹		Ending Account Value 3/31/23		Expenses Paid During Period 10/1/22–3/31/23¹		Net Annualized Expense Ratio
	$1,000.00		$1,068.80		$2.32		$1,022.69		$2.27		0.45	%



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Franklin Systematic Style Premia ETF

Formerly, Franklin Liberty Systematic Style Premia ETF

This annual report for Franklin Systematic Style Premia ETF covers the fiscal year ended March 31, 2023.

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 +2.55% based on market price and +3.13% 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 +2.50% cumulative total return for the same period.¹ You can find more of the Fund’s performance data in the Performance Summary beginning on page 77.

Economic and Market Overview

The U.S. bond market, as measured by the Bloomberg U.S. Aggregate Bond Index, posted a -4.78% total return for the 12-month period ended March 31, 2023.¹ High inflation amid a strong labor market led to significantly tighter monetary policy, reducing the value of most bonds. While interest rates increased along the yield curve for all U.S. Treasury maturities, relatively large increases in shorter-term interest rates led the yield curve to invert during the period as investors became increasingly concerned about the economic outlook.

In an effort to control inflation, the U.S. Federal Reserve (Fed) raised the federal funds target rate at each of its eight meetings during the period to end at a range of 4.75%–5.00%, a full 450 basis points higher than at the beginning of the period. The Fed noted in its March 2023 meeting that inflation remained elevated amid robust job growth and low unemployment. Despite its goal of 2% long-run inflation, the Fed softened its firm outlook on future rate hikes. Furthermore, the Fed indicated it would continue to reduce its U.S. Treasury (UST) and agency debt and mortgage-backed security holdings.

Portfolio Composition

3/31/23


	% of Total Net Assets

Common Stocks		62.2%

Short-Term Investments & Other Net Assets		37.8%

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 Schedule of Investments (SOI). The SOI begins on page 170.



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Top 10 Sectors/Industries

3/31/23


	% of Total Net Assets

Software		5.5%

Biotechnology		4.8%

Semiconductors & Semiconductor Equipment		4.1%

Oil, Gas & Consumable Fuels		3.7%

IT Services		3.6%

Insurance		3.4%

Consumer Staples Distribution & Retail		2.2%

Metals & Mining		2.2%

Capital Markets		2.1%

Specialty Retail		1.9%

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 exposure to the commodity and currency asset classes is obtained indirectly through the use of derivatives, while the exposure to the equity and fixed income asset classes is primarily obtained indirectly through the use of derivatives. 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.

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. 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. 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.

We normally 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 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’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. The results of such transactions are expected to represent a material component of the Fund’s investment returns.

Top 10 Long Positions

3/31/23


Company *Sector/Industry, Country*	% of Total Net Assets


State Street Institutional U.S. Government Money Market Fund, 4.7%, 12/30/2030		27.8%
Money Market Funds, United States


Meta Platforms, Inc., Class A		1.4%
Interactive Media & Services, United States


Exxon Mobil Corp.		1.2%
Oil, Gas & Consumable Fuels, United States


Visa, Inc., Class A		1.2%
IT Services, United States


Adobe, Inc.		1.2%
Software, United States


Mastercard, Inc., Class A		1.1%
IT Services, United States


Netflix, Inc.		1.1%
Entertainment, United States


AbbVie, Inc.		1.1%
Biotechnology, United States


LVMH Moet Hennessy Louis Vuitton SE		1.1%
Textiles, Apparel & Luxury Goods, France


Walmart, Inc.		1.1%
Consumer Staples Distribution & Retail, United States



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Manager’s Discussion

During the 12 months ended March 31, 2023, both the long/short single equities component strategy and the macro component strategy contributed positively to Fund performance.

Within our long/short single stock equities component, there was positive contribution from all three of our factors. The value factor was the strongest contributor, while quality and momentum also bolstered relative returns. Our portfolio was long lower-volatility stocks and short higher-volatility stocks on aggregate, and this positioning contributed significantly to returns over the year, though less so in the second half. In capital terms, the portfolio was net long, and this detracted from performance.

Within the macro component strategy, equity, fixed income and currency positioning all contributed, while commodities strategies weighed on relative results. Our equity index macro strategies were led by long positioning in Italy, the NASDAQ 100 Index and Spain, along with short positioning in Sweden, Japan and the Standard & Poor’s^® 500 Index.

Our fixed income macro strategies had a positive impact. Global yields generally rose during the first half of the period and fell in the second half, as exemplified by the 10-year U.S. Treasury, which started at approximately 2.3% at the end of March 2022, closed above 4% at the end of October 2022, and ended the period below 3.5%. Generally, our long legs detracted and our short legs benefited, as the prices of futures contracts move in the opposite direction to yields. Contributions from short positioning in U.K. Gilts, German bunds and Canadian bonds outweighed detraction from long positioning in French OATs, Italian bonds and longer-term U.S. Treasuries.

The foreign currency macro strategy generated positive results during a period in which the U.S. dollar was very strong in the first half of the 12-month period before weakening in the second half. Long positioning in the Mexican peso and short positioning in the Israeli shekel were key contributors, owing to our foreign currency carry and value factors. Shorts of the euro and Japanese yen also aided performance. Conversely, long positioning in the South African rand weighed on relative returns, as did long positioning in the Australian and Canadian dollars, as commodity-producing countries saw their currencies weaken.

In contrast, commodities strategies detracted from returns, as energy prices fell, some sharply, and commodities prices broadly declined. Our trend-following strategy was a

significant detractor, while our value, carry, and momentum factors were relatively stable.

Top 10 Short Holdings

3/31/23


Company *Sector/Industry, Country*	% of Total Value of Underlying Entity


Intel Corp.		1.6%

Semiconductors & Semiconductor Equipment,

United States


NVIDIA Corp.		1.6%

Semiconductors & Semiconductor Equipment,

United States


Tesla Inc.		1.5%

Automobiles & Components, United States


Keyence Corp.		1.5%

Technology Hardware & Equipment, Japan


Advanced Micro Devices Inc.		1.5%

Semiconductors & Semiconductor Equipment,

United States


Apple Inc.		1.5%

Technology Hardware & Equipment, United States


Lam Research Corp.		1.4%

Semiconductors & Semiconductor Equipment,

United States


AstraZeneca PLC		1.4%

Pharmaceuticals, Biotechnology & Life Sciences,

United Kingdom


Toyota Motor Corp.		1.4%

Automobiles & Components, Japan


Target Corp.		1.4%

Consumer Discretionary Distribution & Retail,

United States

Thank you for your participation in Franklin Systematic Style Premia ETF. We look forward to serving your future investment needs.

Chandra Seethamraju, Ph.D.

Lead Portfolio Manager

Sundaram Chettiappan, CFA

Vaneet Chadha, CFA

Portfolio Management Team



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Performance Summary as of March 31, 2023

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 3/31/23¹

Cumulative Total Return²

Average Annual Total Return²

Based on
NAV³

Based on
market price⁴

Based on
NAV³

Based on
market price⁴

1-Year

+3.13%

+2.55%

+3.13%

+2.55%

3-Year

+3.65%

+2.31%

+1.20%

+0.77%

Since Inception (12/18/19)

-3.96%

-4.83%

-1.22%

-1.50%

See page 79 for Performance Summary footnotes.



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FRANKLIN SYSTEMATIC STYLE PREMIA 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.

12/18/19-3/31/23

LOGO

See page 79 for Performance Summary footnotes.



78	Annual Report	franklintempleton.com

FRANKLIN SYSTEMATIC STYLE PREMIA ETF

PERFORMANCE SUMMARY

Distributions (4/1/22–3/31/23)

Net Investment
Income

$0.462414

Total Annual Operating Expenses⁶

0.65%

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. Certain derivatives have the potential for unlimited loss. 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 on particular countries, regions, industries, sectors or types of investment from time to time, it may be subject to greater risks or adverse developments in such areas of focus than a Fund that invests in a wider variety of countries, regions, industries or sectors or investments. 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. 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.



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FRANKLIN 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


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

Beginning Account Value 10/1/22		Ending Account Value 3/31/23		Expenses Paid During Period 10/1/22–3/31/23¹		Ending Account Value 3/31/23		Expenses Paid During Period 10/1/22–3/31/23¹		Net Annualized Expense Ratio
	$1,000.00		$1,019.80		$3.27		$1,021.69		$3.28		0.65	%



80	Annual Report	franklintempleton.com

Franklin U.S. Core Bond ETF

Formerly, Franklin Liberty U.S. Core Bond ETF

This annual report for Franklin U.S. Core Bond ETF covers the fiscal year ended March 31, 2023.

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, including government, corporate debt, mortgage-backed and asset-backed securities. Bonds include debt obligations of any maturity, such as bonds, notes, bills and debentures.

Performance Overview

During the 12-month period, the Fund posted cumulative total returns of -4.84% based on market price and -4.88% based on net asset value (NAV). In comparison, the Bloomberg U.S. Aggregate Bond Index, which measures the performance of the investment-grade, U.S. dollar-denominated, fixed-rate taxable bond market, posted a -4.78% cumulative total return. You can find more of the Fund’s performance data in the Performance Summary beginning on page 84.

Economic and Market Overview

In an effort to control inflation, the U.S. Federal Reserve (Fed) raised the federal funds target rate at each of its eight meetings during the period to end at a range of 4.75%–5.00%, a full 450 basis points higher than at the beginning of the period. The Fed noted in its March 2023 meeting that inflation remained elevated amid robust job growth and low unemployment. Despite its goal of 2% long-run inflation, the Fed softened its firm outlook on future rate hikes. Furthermore, the Fed indicated it would continue to reduce its U.S. Treasury (UST) and agency debt and mortgage-backed security holdings.

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 Schedule of Investments (SOI). The SOI begins on page 186.



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FRANKLIN U.S. CORE BOND ETF

Portfolio Composition

3/31/23


	% of Total Net Assets

U.S. Government & Agency Securities		46.7%

Corporate Bonds & Notes		25.0%

Mortgage-Backed Securities		19.8%

Municipal Bonds		3.0%

Asset-Backed Securities		2.8%

Foreign Government and Agency Securities		1.2%

Short-Term Investments & Other Net Assets		1.4%


Top 10 Holdings

3/31/23
	% of Total Net Assets

U.S. Treasury Notes, 3.25%, 6/30/27		6.7%

U.S. Treasury Notes, 1.25%, 12/31/26		5.3%

U.S. Treasury Notes, 2.125%, 2/29/24		4.6%

U.S. Treasury Notes, 0.375%, 11/30/25		4.6%

U.S. Treasury Notes, 0.375%, 1/31/26		3.3%

U.S. Treasury Notes, 2.75%, 8/15/32		2.4%

U.S. Treasury Bonds, 1.375%, 8/15/50		2.0%

U.S. Treasury Notes, 2.125%, 3/31/24		1.8%

U.S. Treasury Bonds, 2.00%, 11/15/41		1.5%

U.S. Treasury Notes, 0.875%, 6/30/26		1.5%

Investment Strategy

The Fund invests predominantly in investment-grade debt securities and, under normal market conditions, 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. The Fund’s investments in mortgage-backed securities include securities that are issued or guaranteed by the U.S. government, its agencies or instrumentalities, which include mortgage pass-through securities representing interests in pools of mortgage loans issued or guaranteed by the Government National Mortgage Association, the Federal National Mortgage Association, and the Federal Home Loan Mortgage Corporation.

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. These derivative transactions may allow the Fund to obtain net long or short exposures to select interest rates, durations or credit risks, for the purposes of seeking 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.

Manager’s Discussion

During the 12-month period under review, the Fund posted an NAV gross return of -4.88%, modestly underperforming the Bloomberg U.S. Aggregate Bond Index return of -4.78%.¹ Duration positioning was the biggest positive contributor to returns relative to the benchmark. Throughout the period under review, the Fund had a duration lower than that of the benchmark, which helped our relative results as U.S. Treasury (UST) yields rose across the curve as the Fed raised interest in an aggressive manner. Sector allocations modestly detracted from the Fund’s results relative to the benchmark. The largest detractions came from an underweight to corporate bonds throughout the period and an overweight to sovereign emerging market debt during 2022’s second quarter, when spreads widened. This was partially offset by positive return contributions from an underweight to agency mortgage-backed securities (MBS) as well as an overweight to municipal (muni) bonds. Positioning in commercial MBS (CMBS) weighed on performance over the past 12-month period. Security selection within sectors was a drag on relative returns, led by selection in corporate bonds and muni issues. In contrast, selection within sovereign emerging markets debt, MBS, and CMBS all lifted performance for the period.



82	Annual Report	franklintempleton.com

FRANKLIN U.S. CORE BOND ETF

David Yuen retired effective September 30, 2022, and his responsibilities have been allocated to others in the portfolio management team.

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

Patrick Klein, Ph D.

Tina Chou

Joshua Lohmeier, CFA

Portfolio Management Team



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FRANKLIN U.S. CORE BOND ETF

Performance Summary as of March 31, 2023

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 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 3/31/23¹



	Cumulative Total Return²				Average Annual Total Return²
	Based on NAV³		Based on market price⁴		Based on NAV³		Based on market price⁴
1-Year		-4.88%		-4.84%		-4.88%		-4.84%
3-Year		-7.50%		-7.50%		-2.56%		-2.57%
Since Inception (9/17/19)		-4.61%		-4.61%		-1.32%		-1.33%

					30-Day
Distribution Rate⁵					Standardized Yield⁶
2.68%						4.06%

See page 86 for Performance Summary footnotes.



84	Annual Report	franklintempleton.com

FRANKLIN U.S. CORE BOND 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.

9/17/19-3/31/23

LOGO

See page 86 for Performance Summary footnotes.



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FRANKLIN U.S. CORE BOND ETF

PERFORMANCE SUMMARY

Distributions (4/1/22–3/31/23)

Net Investment

Income

$0.543400

Total Annual Operating Expenses⁸

0.14%

All investments involve risks, including possible loss of principal. Interest rate movements, unscheduled mortgage prepayments and other risk factors will affect the Fund’s share price and yield. Bond prices, and thus a Fund’s share price, generally move in the opposite direction of interest rates. Therefore, as the prices of bonds in the Fund adjust to a rise in interest rates, the Fund’s share price may decline. Changes in the financial strength of a bond issuer or in a bond’s credit rating may affect its value. The manager’s portfolio selection strategy is not solely based on ESG considerations, and therefore the issuers in which the Fund invests may not be considered ESG-focused companies. Integrating ESG considerations into the investment process is not a guarantee that better performance will be achieved. 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 3/31/23.

7. Source: FactSet. The Bloomberg U.S. Aggregate Bond Index measures the performance of the investment-grade, U.S. dollar-denominated, fixed-rate taxable bond market. The index includes Treasuries, government-related and corporate securities, mortgage-backed securities (agency fixed-rate and hybrid adjustable-rate mortgage pass-throughs), asset-backed securities and commercial mortgage-backed securities (agency and nonagency).

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



86	Annual Report	franklintempleton.com

FRANKLIN 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 × $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 10/1/22		Ending Account Value 3/31/23		Expenses Paid During Period 10/1/22–3/31/23¹		Ending Account Value 3/31/23		Expenses Paid During Period 10/1/22–3/31/23¹		Net Annualized Expense Ratio
	$1,000.00		$1,049.60		$0.72		$1,024.23		$0.71		0.14	%



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Franklin U.S. Low Volatility ETF

Formerly, Franklin Liberty U.S. Low Volatility ETF

This annual report for Franklin U.S. Low Volatility ETF covers the fiscal year ended March 31, 2023.

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, and primarily equity securities.

Performance Overview

During the 12-month period, the Fund posted cumulative total returns of -2.44% based on market price and -2.22% based on net asset value (NAV). In comparison, the Russell 1000^® Index, which measures the 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, posted a -8.39% cumulative total return for the same period.¹ You can find more of the Fund’s performance data in the Performance Summary beginning on page 91.

Economic and Market Overview

In an effort to control inflation, the U.S. Federal Reserve (Fed) raised the federal funds target rate at each of its eight meetings during the period to end at a range of 4.75%–5.00%, a full 450 basis points higher than at the beginning of the period. The Fed noted in its March 2023 meeting that inflation remained elevated amid robust job growth and low unemployment. Despite its goal of 2% long-run inflation, the Fed softened its firm outlook on future rate hikes. Furthermore, the Fed indicated it would continue to reduce its U.S. Treasury (UST) and agency debt and mortgage-backed security holdings.

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

2. “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.; or (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.

The dollar value, number of shares or principal amount, and names of all portfolio holdings are listed in the Fund’s Schedule of Investments (SOI). The SOI begins on page 196.



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FRANKLIN U.S. LOW VOLATILITY ETF


Top 10 Sectors/Industries

3/31/23

	% of Total Net Assets

Information Technology		26.8%

Health Care		13.9%

Consumer Discretionary		12.1%

Industrials		10.2%

Financials		10.1%

Communication Services		7.9%

Consumer Staples		5.0%

Energy		4.5%

Real Estate		3.0%

Materials		2.9%


Top 10 Holdings

3/31/23

Company *Sector/Industry*	% of Total Net Assets

Accenture PLC, Class A Information Technology		1.7%

ANSYS, Inc. Information Technology		1.7%

Oracle Corp. Information Technology		1.7%

Intuit, Inc. Information Technology		1.7%

Microsoft Corp. Information Technology		1.6%

Analog Devices, Inc. Information Technology		1.6%

Texas Instruments, Inc. Information Technology		1.6%

Amphenol Corp., Class A Information Technology		1.6%

Apple, Inc. Information Technology		1.6%

International Business Machines Corp. Information Technology		1.6%

Investment Strategy

The Fund invests primarily in equity securities (principally common stocks) of U.S. companies.² 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 actively managed Franklin Templeton equity funds. We screen that universe on a quarterly basis in order to identify those securities with the lowest realized volatility relative to their corresponding sectors, while we also incorporate fundamental views 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. We may, from time to time, make adjustments to the Fund’s portfolio as a result of corporate actions, changes to the volatility profile of the Fund’s holdings, or for risk management related purposes.

Manager’s Discussion

During the 12 months ended March 31, 2023, the Fund outperformed its benchmark, the Russell 1000^® Index, although the Fund generated negative absolute returns during the period. Stock selection in the consumer discretionary, information technology (IT) and financials sectors were significant contributors to relative performance during the period. Overweight positions in O’Reilly Automotive and TJX Companies, in addition to an underweight position relative to the benchmark in Amazon.com, drove the consumer discretionary sector’s relative outperformance.

In the IT sector, overweight positions in Analog Devices and Synopsys meaningfully contributed to returns. Meanwhile, the financials sector’s outperformance was led by positions in insurance companies Progressive and Arthur J. Gallagher.

The communication services sector weighed slightly on overall performance. A position in cable and satellite company Liberty Broadband detracted, as revenues and earnings were down for the recent quarter due in part to higher energy and labor costs. A position in Alphabet, however, was a contributor in the sector as the Fund’s underweight position supported relative returns for the period. The utilities sector detracted from returns as electric utility holdings Southern and Duke Energy underperformed slightly during the period.

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

Todd Brighton, CFA

Portfolio Manager



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FRANKLIN U.S. LOW VOLATILITY ETF



90	Annual Report	franklintempleton.com

FRANKLIN U.S. LOW VOLATILITY ETF

Performance Summary as of March 31, 2023

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 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 3/31/23¹

Cumulative Total Return²

Average Annual Total Return²

Based on

NAV³

Based on

market price⁴

Based on

NAV³

Based on

market price⁴

1-Year

-2.22%

-2.44%

-2.22%

-2.44%

5-Year

+71.52%

+71.30%

+11.39%

+11.37%

Since Inception (9/20/16)

+110.24%

+110.11%

+12.06%

+12.05%

Distribution Rate⁵

30-Day

Standardized Yield⁶

1.66%

1.65%

See page 93 for Performance Summary footnotes.



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FRANKLIN U.S. LOW VOLATILITY 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.

9/20/16-3/31/23

LOGO

See page 93 for Performance Summary footnotes.



92	Annual Report	franklintempleton.com

FRANKLIN U.S. LOW VOLATILITY ETF

PERFORMANCE SUMMARY

Distributions (4/1/22–3/31/23)

Net Investment

Income

$0.784060

Total Annual Operating Expenses⁸

0.29%

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 3/31/23.

7. Source: FactSet. The Russell 1000^® Index is market capitalization weighted and measures the 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.



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FRANKLIN 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 × $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 10/1/22		Ending Account Value 3/31/23		Expenses Paid During Period 10/1/22–3/31/23¹		Ending Account Value 3/31/23		Expenses Paid During Period 10/1/22–3/31/23¹		Net Annualized Expense Ratio
	$1,000.00		$1,145.10		$1.55		$1,023.49		$1.46		0.29	%



94	Annual Report	franklintempleton.com

Franklin U.S. Treasury Bond ETF

Formerly, Franklin Liberty U.S. Treasury Bond ETF

This annual report for Franklin U.S. Treasury Bond ETF covers the fiscal year ended March 31, 2023.

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, including Treasury bonds, bills, notes and Treasury Inflation-Protected Securities (TIPS), and investments that provide exposure to direct obligations of the U.S. Treasury.

Performance Overview

During the 12-month period, the Fund posted cumulative total returns of -3.95% based on market price and -3.95% based on net asset value (NAV). In comparison, the Bloomberg U.S. Treasury Index, which measures the performance of U.S. dollar-denominated, fixed-rate, nominal debt issued by the U.S. with at least one year until final maturity, posted a -4.51% cumulative total return.¹ You can find more of the Fund’s performance data in the Performance Summary beginning on page 98.

Economic and Market Overview


Portfolio Composition

3/31/23

	% of Total Net Assets

U.S. Government & Agency Securities		98.7%

Short-Term Investments & Other Net Assets		1.4%

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 Schedule of Investments (SOI). The SOI begins on page 200.



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FRANKLIN U.S. TREASURY BOND ETF

Investment Strategy

The Fund normally invests at least 80% of its net assets in direct obligations of the U.S. Treasury, including Treasury bonds, bills, notes and Treasury Inflation-Protection Securities (TIPS), and investments that provide exposure to direct obligations of the U.S. Treasury. The Fund may invest in U.S. Treasury securities of any maturity and intends to primarily focus on U.S. Treasury securities with a remaining maturity of between 1-30 years. The Fund may also invest in 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.

We generally buy and hold high quality fixed income securities. Using this straightforward approach, we seek to produce current income with a high degree of credit safety from a conservatively managed portfolio of U.S. Treasury securities. We may utilize quantitative models to identify investment opportunities as part of the portfolio construction process for the Fund. Quantitative models are proprietary systems that rely on mathematical computations to identify investment opportunities. The Fund is an actively managed ETF and, thus, does not seek to replicate the performance of a specified index.


Top 10 Holdings

3/31/23

	% of Total Net Assets

U.S. Treasury Notes, 1.50%, 9/30/24		9.3%

U.S. Treasury Notes, 0.75%, 5/31/26		8.0%

U.S. Treasury Bonds, 1.875%, 11/15/51		6.8%

U.S. Treasury Notes, 0.25%, 7/31/25		5.2%

U.S. Treasury Bonds, 3.00%, 5/15/42		4.1%

U.S. Treasury Floating Rate Notes, 4.768% to , 7/31/24		3.7%

U.S. Treasury Bonds, 3.125%, 11/15/41		3.6%

U.S. Treasury Notes, 0.375%, 1/31/26		3.4%

U.S. Treasury Floating Rate Notes, 4.931% to , 1/31/25		3.3%

U.S. Treasury Notes, 1.50%, 11/30/24		3.3%

Manager’s Discussion

Yield-curve positioning contributed to relative performance, led mainly by the underweight duration on the five- and 10-year parts of the curve as yields rose. Over the performance period, yields for Treasuries with maturities less than five years rose more than yields for Treasuries with maturities greater than five years. Underweights on the two-and 30-year parts of the yield curve also contributed positively to performance relative to the benchmark. Conversely, the Fund was positioned with more duration than the benchmark on the 20-year part of the yield curve, and this was a modest detractor from relative results. Performance losses from our non-benchmark allocation to U.S. Treasury Inflation-Protected Securities (TIPS) were offset by security selection gains in the same sector. Our exposure to agency fixed-rate mortgage-backed securities (MBS) had a largely neutral effect on results.

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

Warren Keyser

Patrick Klein, Ph.D.

Portfolio Management Team



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FRANKLIN U.S. TREASURY BOND ETF



franklintempleton.com	Annual Report	97

FRANKLIN U.S. TREASURY BOND ETF

Performance Summary as of March 31, 2023

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 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 3/31/23¹



	Cumulative Total Return²				Average Annual Total Return²
	Based on NAV³		Based on market price⁴		Based on NAV³		Based on market price⁴
1-Year		-3.95%		-3.95%		-3.95%		-3.95%
Since Inception (6/9/20)		-10.28%		-10.28%		-3.79%		-3.79%


Distribution Rate⁵	30-Day Standardized Yield⁶
3.15%		4.14%

See page 100 for Performance Summary footnotes.



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FRANKLIN U.S. TREASURY BOND 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.

6/9/20-3/31/23

LOGO

See page 100 for Performance Summary footnotes.



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FRANKLIN U.S. TREASURY BOND ETF

PERFORMANCE SUMMARY

Distributions (4/1/22–3/31/23)

Net Investment

Income

$0.542100

Total Annual Operating Expenses⁸

0.08%

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 3/31/23.

7. Source: FactSet. The Bloomberg U.S. Treasury Index measures the performance of U.S. dollar-denominated, fixed-rate, nominal debt issued by the U.S. Treasury with at least one year until final maturity. 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.



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FRANKLIN 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 × $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 10/1/22		Ending Account Value 3/31/23		Expenses Paid During Period 10/1/22–3/31/23¹		Ending Account Value 3/31/23		Expenses Paid During Period 10/1/22–3/31/23¹		Net Annualized Expense Ratio
	$1,000.00		$1,035.30		$0.41		$1,024.53		$0.40		0.08	%



franklintempleton.com	Annual Report	101

Franklin Ultra Short Bond ETF

Formerly, Franklin Liberty Ultra Short Bond ETF

This annual report for Franklin Ultra Short Bond ETF covers the fiscal year ended March 31, 2023.

Your Fund’s Goal and Main Investments

The Fund seeks to provide 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. The Fund targets an estimated average portfolio duration of one year or less.

Performance Overview

During the 12-month period, the Fund posted cumulative total returns of +2.17% based on market price and +2.00% 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 +2.50% cumulative total return.¹ You can find more of the Fund’s performance data in the Performance Summary beginning on page 105.

Economic and Market Overview

In an effort to control inflation, the U.S. Federal Reserve (Fed) raised the federal funds target rate at each of its eight meetings during the period to end at a range of 4.75%–5.00%, a full 450 basis points higher than at the beginning of the period. The Fed noted in its March 2023 meeting that inflation remained elevated amid robust job growth and low unemployment. Despite its goal of 2% long-run inflation, the Fed softened its firm outlook on future rate hikes. Furthermore, the Fed indicated it would continue to reduce its U.S. Treasury (UST) and agency debt and mortgage-backed security holdings.

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 Schedule of Investments (SOI). The SOI begins on page 203.



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FRANKLIN ULTRA SHORT BOND ETF


Top 10 Sectors/Industries

3/31/23

	% of Total Net Assets

Banks		46.5%

Telecommunications		10.2%

Financial Services		8.1%

Miscellaneous Manufacturing		4.0%

Auto Manufacturers		4.0%

Healthcare-Products		4.0%

Insurance		3.9%

Pipelines		2.0%

Entertainment		2.0%

Biotechnology		2.0%


Top 10 Holdings

3/31/23

Issue/Issuer	% of Total Net Assets

Verizon Communications, Inc., 5.964% to , FRN, 5/15/25		6.1%

Citigroup, Inc., 5.977% to , 5/17/24		6.1%

American Express Co., 5.546% to , 8/03/23		6.1%

Morgan Stanley, 0.731% to 4/05/23, FRN thereafter, 4/05/24		6.1%

JPMorgan Chase & Co., 5.705% to , FRN thereafter, 7/23/24		6.1%

Westpac Banking Corp., 5.728% to , FRN thereafter, 2/26/24		6.1%

Bank of America Corp., 5.334% to , 4/22/25		6.0%

AT&T, Inc., 6.334% to , 6/12/24		4.1%

Citibank Credit Card Issuance Trust, 5.372% to , 4/22/26		4.1%

Discover Card Execution Note Trust, 5.284% to , 12/15/26		4.1%

Investment Strategy

The Fund targets debt 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 asset-backed securities and U.S. dollar denominated foreign securities, including emerging market 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.

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.

Manager’s Discussion

Over the 12-month period under review, the Fund posted an NAV gross return of +2.00%, underperforming the ICE BofA U.S. 3-Month Treasury Bill Index return of +2.50%.¹ The main detractor from relative performance was the Fund’s duration positioning. During much of the 12-month period, the Fund maintained a duration greater than that of the benchmark, which hurt our returns as shorter-term UST yields rose dramatically as the Fed maintained an aggressive pace of rate hikes, 450 basis points in total, to combat multi-decade levels of inflation. The Fund did benefit from our off-benchmark allocation to shorter-maturity investment-grade (IG) corporate bonds, especially in the banking, capital goods and consumer cyclical sectors. However, this was partially offset by negative returns from allocations to technology- and communication-related IG corporate bond issues.

David Yuen retired effective September 30, 2022, and his responsibilities have been allocated to others in the portfolio management team.



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FRANKLIN ULTRA SHORT BOND ETF

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

Shawn Lyons, CFA

Thomas Runkel, CFA

Kent Burns, CFA

Johnson Ng, CFA

Portfolio Management Team



104	Annual Report	franklintempleton.com

FRANKLIN ULTRA SHORT BOND ETF

Performance Summary as of March 31, 2023

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 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 3/31/23¹

Cumulative Total Return²

Average Annual Total Return²

Based on

NAV³

Based on

market price⁴

Based on

NAV³

Based on

market price⁴

1-Year

+2.00%

+2.17%

+2.00%

+2.17%

Since Inception (7/14/20)

+2.12%

+2.25%

+0.78%

+0.82%


Distribution Rate⁵	30-Day Standardized Yield⁶
3.59%		4.04%

See page 107 for Performance Summary footnotes.



franklintempleton.com	Annual Report	105

FRANKLIN ULTRA SHORT 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 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.

7/14/20-3/31/23

LOGO

See page 107 for Performance Summary footnotes.



106	Annual Report	franklintempleton.com

FRANKLIN ULTRA SHORT BOND ETF

PERFORMANCE SUMMARY

Distributions (4/1/22–3/31/23)

Net Investment

Income

$0.464900

Total Annual Operating Expenses⁸

0.10%

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 asset 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 a 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 wider 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 in 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 3/31/23.

7. 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.



franklintempleton.com	Annual Report	107

FRANKLIN 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 × $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 10/1/22		Ending Account Value 3/31/23		Expenses Paid During Period 10/1/22–3/31/23¹		Ending Account Value 3/31/23		Expenses Paid During Period 10/1/22–3/31/23¹		Net Annualized Expense Ratio
	$1,000.00		$1,020.80		$0.35		$1,024.58		$0.35		0.07	%



108	Annual Report	franklintempleton.com

FRANKLIN TEMPLETON ETF TRUST

Financial Highlights

Franklin Disruptive Commerce ETF


	Year Ended March 31,

	2023			2022			2021			2020^a

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

Net asset value, beginning of year		$30.97			$49.21			$21.32			$25.00

Income from investment operations^b:

Net investment income (loss)^c		0.02			(0.19	)		(0.21	)		(0.01	)

Net realized and unrealized gains (losses)		(6.94	)		(17.73	)		28.10			(3.67	)

Total from investment operations		(6.92	)		(17.92	)		27.89			(3.68	)

Net realized gains		—			(0.32	)		—			—

Net asset value, end of year		$24.05			$30.97			$49.21			$21.32

Total return^d		(22.34)%			(36.59)%			130.82%			(14.72)%

Ratios to average net assets^e

Expenses before waiver and payments by affiliates		0.50%			0.62%			0.87%			12.59%

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

Net investment income (loss)		0.07%			(0.40)%			(0.44)%			(0.32)%

Supplemental data

Net assets, end of year (000’s)		$9,619			$18,584			$41,827			$2,132

Portfolio turnover rate^f		47.01%^g			89.85%^g			45.81%^g			0.94%^g

^aFor the period February 25, 2020 (commencement of operations) to March 31, 2020.

^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:			47.01%				89.79%				45.81%				0.94%



franklintempleton.com	The accompanying notes are an integral part of these financial statements. \| Annual Report	109

FRANKLIN TEMPLETON ETF TRUST

Schedule of Investments, March 31, 2023

Franklin Disruptive Commerce ETF



		Country		Shares		Value
	Common Stocks 97.5%
	Air Freight & Logistics 1.3%
	United Parcel Service, Inc., Class B		United States		483	$	93,697
a	XPO, Inc.		United States		897		28,614

							122,311

	Commercial Services & Supplies 3.3%
a	Copart, Inc.		United States		4,299		323,328

	Consumer Staples Distribution & Retail 4.7%
	Costco Wholesale Corp.		United States		910		452,152

	Containers & Packaging 1.3%
	Graphic Packaging Holding Co.		United States		1,018		25,949
	Packaging Corp. of America		United States		705		97,875

							123,824

	Diversified REITs 2.0%
	Prologis, Inc.		United States		1,531		191,023

	Entertainment 3.9%
a	Netflix, Inc.		United States		317		109,517
a	ROBLOX Corp., Class A		United States		1,670		75,116
a	Sea Ltd., ADR		Taiwan		2,203		190,670

							375,303

	Food Products 0.4%
a	Freshpet, Inc.		United States		556		36,802

	Ground Transportation 5.2%
	Old Dominion Freight Line, Inc.		United States		355		120,998
a	Uber Technologies, Inc.		United States		12,047		381,890

							502,888

	Hotels, Restaurants & Leisure 6.3%
a	Airbnb, Inc., Class A		United States		2,217		275,795
a	Booking Holdings, Inc.		United States		120		318,289
a,b	Meituan, Class B		China		985		18,006

							612,090

	Interactive Media & Services 2.3%
	Shutterstock, Inc.		United States		847		61,492
	Tencent Holdings Ltd.		China		2,718		133,581
a	ZoomInfo Technologies, Inc., Class A		United States		952		23,524

							218,597

	Internet & Direct Marketing Retail 26.7%
a	Alibaba Group Holding Ltd., Class A		China		9,962		127,413
a	Amazon.com, Inc.		United States		7,218		745,547
a	Chewy, Inc., Class A		United States		1,302		48,669
a	DoorDash, Inc., Class A		United States		5,220		331,783
	eBay, Inc.		United States		1,917		85,057
a	Etsy, Inc.		United States		2,927		325,863
a	Expedia Group, Inc.		United States		420		40,753
a	Global-e Online Ltd.		Israel		1,645		53,018
	JD.com, Inc., ADR		China		1,621		71,146
a	MercadoLibre, Inc.		Brazil		323		425,733
	Naspers Ltd., Class N		South Africa		455		84,447
a	PDD Holdings, Inc., ADR		China		1,440		109,296
	Prosus NV		Netherlands		1,097		85,741
a	Revolve Group, Inc.		United States		416		10,941



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FRANKLIN TEMPLETON ETF TRUST

SCHEDULE OF INVESTMENTS

Franklin Disruptive Commerce ETF (continued)



		Country		Shares		Value
	Common Stocks (continued)
	Internet & Direct Marketing Retail (continued)
	ZOZO, Inc.		Japan		1,042	$	23,605

							2,569,012

	IT Services 19.9%
a	Adyen NV, ADR		Netherlands		26,101		413,440
a	Block, Inc.		United States		1,937		132,975
a	Dlocal Ltd.		Uruguay		1,925		31,224
a	International Money Express, Inc.		United States		1,594		41,093
	Jack Henry & Associates, Inc.		United States		511		77,018
	Mastercard, Inc., Class A		United States		799		290,365
a	PayPal Holdings, Inc.		United States		478		36,299
a	Shopify, Inc., Class A		Canada		10,286		493,111
a	Toast, Inc., Class A, A		United States		4,644		82,431
	Visa, Inc., Class A		United States		1,390		313,389

							1,911,345

	Professional Services 3.1%
a	CoStar Group, Inc.		United States		3,698		254,607
	TransUnion		United States		654		40,640

							295,247

	Software 7.7%
a	Bills Holdings, Inc.		United States		843		68,401
a	Descartes Systems Group, Inc.		Canada		2,673		215,471
a	Manhattan Associates, Inc.		United States		1,450		224,532
a	Sprout Social, Inc., Class A		United States		365		22,221
a	SPS Commerce, Inc.		United States		477		72,647
a	Trade Desk, Inc., Class A		United States		1,195		72,787
a	Unity Software, Inc.		United States		2,058		66,762

							742,821

	Specialty Retail 0.3%
a	Petco Health & Wellness Co., Inc.		United States		3,086		27,774

	Trading Companies & Distributors 9.1%
	Fastenal Co.		United States		7,699		415,284
	WW Grainger, Inc.		United States		667		459,436

							874,720

	Total Common Stocks (Cost $10,805,227)						9,379,237

	Total Investments (Cost $10,805,227) 97.5%						9,379,237
	Other Assets, less Liabilities 2.5%						239,838

	Net Assets 100.0%					$	9,619,075

^aNon-income producing.

See Note 8 regarding other derivative information.

See Abbreviations on page 246.



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FRANKLIN TEMPLETON ETF TRUST

Financial Highlights

Franklin Dynamic Municipal Bond ETF


	Year Ended March 31,

	2023			2022			2021			2020			2019

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

Net asset value, beginning of year		$24.81			$26.32			$24.72			$24.97			$24.40

Income from investment operations^a:

Net investment income^b		0.74			0.61			0.59			0.58			0.63

Net realized and unrealized gains (losses)		(0.96	)		(1.56	)		1.59			(0.17	)		0.57

Total from investment operations		(0.22	)		(0.95	)		2.18			0.41			1.20

Less distributions from net investment income		(0.71	)		(0.56	)		(0.58	)		(0.66	)		(0.63	)

Net asset value, end of year		$23.88			$24.81			$26.32			$24.72			$24.97

Total return^c		(0.82)%			(3.70)%			8.84%			1.61%			4.99%

Ratios to average net assets

Expenses before waiver and payments by affiliates		0.57%			0.75%			1.01%			1.46%			2.15%

Expenses net of waiver and payments by affiliates		0.30%			0.30%			0.30%			0.30%			0.30%

Net investment income		3.12%			2.32%			2.29%			2.29%			2.57%

Supplemental data

Net assets, end of year (000’s)		$101,497			$76,908			$42,112			$12,362			$7,490

Portfolio turnover rate^d		64.13%^e			27.62%^e			14.05%^e			35.28%^e			35.63%

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

^bBased on average daily shares outstanding.

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

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


^ePortfolio turnover rate excluding cash creations was as follows:			64.13%				27.62%				14.05%				35.28%				—



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FRANKLIN TEMPLETON ETF TRUST

Schedule of Investments, March 31, 2023

Franklin Dynamic Municipal Bond ETF


		Principal Amount	*		Value
	Municipal Bonds 97.6%
	Alabama 6.4%
	Black Belt Energy Gas District,
	^a4.00%, 12/01/52	500,000		$	484,951
	^aGas Project, Series 2022E, VRDN, 5.00%, 5/01/53	1,350,000			1,428,275
	^aRefunding, VRDN, 4.00%, 6/01/51	240,000			236,638
	^aSeries 2022D-1, VRDN, 4.00%, 7/01/52	500,000			500,210
	^aSeries C-1, 5.25%, 2/01/53	1,500,000			1,580,754
b	County of Mobile, Gomesa Projects, 4.00%, 11/01/45	100,000			86,800
	Homewood Educational Building Authority, Samford University, Refunding, Series 2019A, 4.00%, 12/01/33	100,000			103,343
	Southeast Energy Authority A Cooperative District, ^a 5.25%, 1/01/54	1,000,000			1,055,329
	^aCooperative District, 5.50%, 1/01/53	500,000			534,755
	^aCooperative District, Series 2022B-1, VRDN, 5.00%, 5/01/53	500,000			515,459

					6,526,514

	Alaska 0.1%
	Alaska Industrial Development & Export Authority, Greater Fairbanks Community Hospital Foundation Obligated Group, Refunding, 4.00%, 4/01/32	100,000			101,879


	Arizona 2.7%
	Arizona Industrial Development Authority, 4.00%, 7/01/29	250,000			253,021
a	Chandler Industrial Development Authority, 5.00%, 9/01/52	1,500,000			1,572,503
	City of Phoenix Civic Improvement Corp., Wastewater Revenue, Series 2018A, 5.00%, 7/01/25	100,000			105,578
	Glendale Industrial Development Authority, 4.00%, 5/15/31	160,000			144,843
	Industrial Development Authority of the City of Phoenix Arizona, Downtown Phoenix Student Housing II LLC, Series A, 5.00%, 7/01/31	100,000			105,131
	La Paz County Industrial Development Authority, 5.00%, 2/15/31	100,000			107,709
b	Sierra Vista Industrial Development Authority, Georgetown Community Development Authority, 9.00%, 10/01/37	250,000			241,630
	Tempe Industrial Development Authority, Tempe Life Care Village Obligated Group, Refunding, 4.00%, 12/01/31	200,000			181,213

					2,711,628

	Arkansas 0.2%
	Arkansas Development Finance Authority,
	Baptist Health Obligated Group, 4.00%, 12/01/34	100,000			103,093
	Baptist Memorial Health Care Obligated Group, Refunding, 5.00%, 9/01/32	100,000			108,878

					211,971

	California 9.7%
a	California Community Choice Financing Authority, 5.25%, 1/01/54	1,500,000			1,536,161
b	California Community College Financing Authority, NCCD-Napa Valley Properties LLC, Series 2022A, 4.25%, 7/01/32	500,000			468,605
b	California Community Housing Agency, 4.00%, 8/01/47	285,000			219,468
	California Municipal Finance Authority,
	AMT, Sereis 2018A, 3.50%, 12/31/35	100,000			95,427
	Biola University, Inc., Refunding, 5.00%, 10/01/29	100,000			106,374
	Caritas Corp., Refunding Series 2021B, 3.00%, 8/15/31	185,000			175,070
	Series 2020B, 4.00%, 9/01/30	50,000			50,995
	Series 2021A, 4.00%, 9/01/30	205,000			208,014
	Series 2021C, 4.00%, 9/01/31	295,000			300,604
b,c	California Pollution Control Financing Authority, CalPlant I LLC, AMT, 7.50%, 7/01/32	250,000			12,500
	California School Finance Authority,
	^b Classical Academy Obligated Group, Series 2020A, 3.00%, 10/01/30	200,000			190,019
	^b John Adams Academies Obligated Group, Series 2022A, 4.50%, 7/01/32	250,000			236,917
	^b Summit Public Schools Obligated Group, 5.00%, 6/01/27	100,000			101,833



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SCHEDULE OF INVESTMENTS

Franklin Dynamic Municipal Bond ETF (continued)


		Principal Amount	*		Value
	Municipal Bonds (continued)
	California (continued)
	California Statewide Communities Development Authority,
	Community Facilities District No 2015, 4.00%, 9/01/29	110,000		$	112,344
	Community Facilities District No 2015-01, 5.00%, 9/01/27	65,000			68,080
	Community Facilities District No 2016-02, 4.00%, 9/01/30	130,000			132,332
	Community Facilities District No 2018, 4.00%, 9/01/30	150,000			152,399
	Improvement Area No. 1, 4.00%, 9/01/31	200,000			202,645
	Southern California Edison Co, Refunding, 1.75%, 9/01/29	1,500,000			1,288,179
	Special Assessment, 4.00%, 9/02/28	250,000			253,033
	Special Assessment, 4.00%, 9/02/31	100,000			100,601
	Special Assessment, Series 2020B, 4.00%, 9/02/30	125,000			126,519
	Special Assessment, Series 2021A, 4.00%, 9/02/31	150,000			148,680
	City of Gardena, 2.066%, 4/01/26	1,000,000			925,693
	CSCDA Community Improvement Authority,
	^b4.00%, 9/01/46	200,000			161,441
	^bJefferson Anaheim Social Bonds, 2.875%, 8/01/41	155,000			130,519
b	Elsinore Valley Municipal Water District, Community Facilities District No 2020, Series 2021A, 4.00%, 9/01/27	100,000			100,183
	Orange County Community Facilities District, No 2017-1, Series 2018A, 5.00%, 8/15/28	100,000			108,957
	Perris Joint Powers Authority, Refunding, Series 2017B, 5.00%, 9/01/25	100,000			104,138
	Poway Unified School District, 5.00%, 9/01/32	250,000			285,441
	River Islands Public Financing Authority, Community Facilities District No 2003-, 5.00%, 9/01/32	500,000			510,910
	Sierra View Local Health Care District, Tulare County, Refunding, 5.00%, 7/01/30	100,000			111,281
a	Southern California Public Power Authority, 4.695%, 11/01/38	1,000,000			896,007
	Sulphur Springs Union School District, Community Facilities District No 2014-1, 5.00%, 9/01/31	135,000			148,971
	Transbay Joint Powers Authority, Redevelopment Project Green Bond Subordinate Tax, 2.40%, 10/01/49	100,000			95,551

					9,865,891

	Colorado 3.2%
	Colorado Educational & Cultural Facilities Authority, Golden View Classical Academy, Refunding, 4.00%, 1/01/32	200,000			198,213
	Colorado Health Facilities Authority,
	4.00%, 8/01/37	700,000			686,769
	4.00%, 8/01/39	1,000,000			964,339
	5.00%, 11/01/33	200,000			224,771
	Christian Living Neighborhoods Obligated Group, Refunding, 4.00%, 1/01/29	100,000			91,262
	Denver Health & Hospital Authority, Series A, 4.00%, 12/01/37	1,000,000			934,637
	Southglenn Metropolitan District, Refunding, 5.00%, 12/01/30	100,000			100,069
	Southlands Metropolitan District No. 1, Refunding, Series 2017A-1, 3.50%, 12/01/27	100,000			93,445

					3,293,505

	Connecticut 0.5%
	Connecticut Housing Finance Authority, Refunding, Series 2016A-1, 2.875%, 11/15/30	135,000			131,502
	Connecticut State Health & Educational Facilities Authority,
	Series 2017I-1, 5.00%, 7/01/29	5,000			5,418
	^bSeries 2020A, 5.00%, 1/01/30	150,000			150,226
b	Steel Point Infrastructure Improvement District, Steelpointe Harbor Project, 4.00%, 4/01/31	200,000			186,080

					473,226

	Delaware 0.1%
	County of Kent, CHF-Dover LLC, 5.00%, 7/01/29	100,000			102,192

	District of Columbia 0.2%
	District of Columbia, 5.50%, 2/28/35	200,000			219,707



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SCHEDULE OF INVESTMENTS

Franklin Dynamic Municipal Bond ETF (continued)


		Principal Amount	*		Value
	Municipal Bonds (continued)
	Florida 15.1%
	Abbott Square Community Development District, Special Assessment, Series 2022, 5.00%, 6/15/32	200,000		$	200,741
b	Artisan Lakes East Community Development District, Special Assessment, Series 2021-2, 2.30%, 5/01/26	195,000			182,531
b	Astonia Community Development District, Assessment Area One Project, Special Assessment, 3.375%, 5/01/30	145,000			136,804
	Avalon Groves Community Development District, Assessment Area 3, Special Assessment, 2.375%, 5/01/26	120,000			112,648
	Avalon Park West Community Development District, Special Assessment, Refunding, 3.25%, 5/01/30	100,000			93,418
	Avenir Community Development District, Assessment Area 2, Special Assessment, Series 2021A, 2.75%, 5/01/31	90,000			77,001
	Babcock Ranch Community Independent Special District,
	Assessment Area 2C, Special Assessment, 3.00%, 5/01/30	50,000			45,668
	Assessment Area 3B, Special Assessment, 3.00%, 5/01/30	145,000			132,438
	Belmond Reserve Community Development District, Special Assessment, Series 2020, 3.25%, 5/01/30	100,000			90,721
	Berry Bay Community Development District, Assessment Area 1, Special Assessment, 3.125%, 5/01/31	100,000			88,956
	Black Creek Community Development District, 5.125%, 6/15/32	100,000			100,575
	Capital Projects Finance Authority,
	5.00%, 10/01/34	785,000			810,229
	University Project, Series 2020A-1, 5.00%, 10/01/32	455,000			475,510
	Capital Trust Agency, Inc.,
	^b3.00%, 7/01/31	125,000			106,674
	^bEducational Growth Fund LLC, 3.375%, 7/01/31	100,000			92,219
	Liza Jackson Preparatory School, Inc., 4.00%, 8/01/30	100,000			100,749
	Lutz Preparatory School, Inc., Refunding, 4.00%, 6/01/31	200,000			204,324
	^bWFCS Holdings II LLC, Series 2021A, 3.30%, 1/01/31	300,000			262,111
	Celebration Community Development District, Assessment Area One Project, Special Assessment, 2.25%, 5/01/26	105,000			98,137
	Coddington Community Development District, Special Assessment, 5.00%, 5/01/32	275,000			278,372
	Coral Keys Homes Community Development District, Special Assessment, 3.125%, 5/01/30	165,000			152,610
	Cordoba Ranch Community Development District, Special Assessment, Refunding, 3.00%, 5/01/31	100,000			90,188
	Cordova Palms Community Development District,
	Assessment Area 1, Special Assessment, 4.80%, 5/01/27	135,000			135,026
	^bSpecial Assessment, 2.80%, 5/01/31	100,000			85,932
	County of Osceola Transportation Revenue, Refunding, Series 2020A-2, zero cpn., 10/01/32	150,000			96,500
b	Cypress Bluff Community Development District, Special Assessment, Series 2020A, 3.125%, 5/01/30	60,000			53,846
	Cypress Park Estates Community Development District, Special Assessment, Series 2022, 4.375%, 5/01/27	150,000			147,960
b	DW Bayview Community Development District, Special Assessment, 3.00%, 5/01/32	100,000			86,085
	East Bonita Beach Road Community Development District, Special Assessment, 3.00%, 5/01/32	100,000			86,029
	Edgewater East Community Development District, Special Assessment, 3.10%, 5/01/31	100,000			87,799
b	Enbrook Community Development District, Special Assessment, 3.00%, 5/01/30	100,000			88,919
b	Entrada Community Development District, Special Assessment, 2.125%, 5/01/26	100,000			92,923
	Epperson North Community Development District, Assessment Area 2, Special Assessment, 3.00%, 5/01/31	85,000			74,285
	Florida Development Finance Corp.,
	^a,b7.50%, 7/01/57	250,000			246,896
	^a,bBrightline Trains Florida LLC, AMT, VRDN, 6.375%, 1/01/49	175,000			165,425
	^a,bBrightline Trains Florida LLC, Refunding, VRDN, 7.25%, 7/01/57	250,000			251,982
	Glenridge on Palmer Ranch Obligated Group, Refunding, 5.00%, 6/01/31	200,000			193,227
	^bMayflower Retirement Community, Refunding, 4.00%, 6/01/31	100,000			87,770



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SCHEDULE OF INVESTMENTS

Franklin Dynamic Municipal Bond ETF (continued)


		Principal Amount	*		Value
	Municipal Bonds (continued)
	Florida (continued)
	Shands Jacksonville Medical Center Obligated Group, Refunding, 5.00%, 2/01/38	1,400,000		$	1,410,180
b	Forest Lake Community Development District, Assessment Area 1 Project, Special Assessment, 3.25%, 5/01/30	145,000			135,457
	Grand Oaks Community Development District, Special Assessment, 4.00%, 5/01/30	150,000			143,982
	Hammock Reserve Community Development District, Assessment Area One Project, Special Assessment, 3.25%, 5/01/30	100,000			93,418
	Herons Glen Recreation District, Special Assessment, Refunding, 3.00%, 5/01/32	100,000			100,150
	Hills of Minneola Community Development District,
	South Parcel Assessment Area, Special Assessment, 2.375%, 5/01/26	75,000			70,425
	^bSouth Parcel Assessment Area, Special Assessment, 3.50%, 5/01/31	100,000			90,762
	Holly Hill Road East Community Development District, Assessment Area 3 Project, Special Assessment, 4.00%, 11/01/25	65,000			64,700
	Indigo Community Development District, 2021 Assessment Area, Phase A1, Special Assessment, 2.70%, 5/01/31	100,000			85,272
	Kindred Community Development District II,
	Special Assessment, 2.20%, 5/01/26	70,000			65,325
	Special Assessment, 3.00%, 5/01/30	155,000			137,672
	Kingman Gate Community Development District,
	Special Assessment, 2.50%, 6/15/26	85,000			80,521
	Special Assessment, 3.125%, 6/15/30	110,000			101,616
	Lakes of Sarasota Community Development District,
	Special Assessment, Series 2021A-1, 3.40%, 5/01/31	135,000			123,061
	Special Assessment, Series 2021B-1, 3.00%, 5/01/26	115,000			111,036
	Lakewood Ranch Stewardship District,
	4.25%, 5/01/26	250,000			249,110
	^bNortheast Sector Project, Special Assessment, Refunding, 3.20%, 5/01/30	100,000			90,213
	^bSpecial Assessment, 3.125%, 5/01/30	60,000			53,861
	Special Assessment, 3.20%, 5/01/30	175,000			157,703
	Star Farms at Lakewood Ranch Proj-Phase 1/2, Special Assessment, 2.70%, 5/01/31	100,000			85,453
	Laurel Road Community Development District, Special Assessment, Series 2021A-1, 2.60%, 5/01/26	100,000			94,209
	Lawson Dunes Community Development District, Special Assessment, 4.375%, 5/01/27	200,000			197,353
b	Magnolia Park Community Development District, Special Assessment, Refunding, 4.00%, 5/01/31	47,000			46,998
	Meadow View at Twin Creeks Community Development District, Phase 4, Special Assessment, 3.00%, 5/01/31	75,000			65,458
	Miami Health Facilities Authority, Miami Jewish Health Systems Obligated Group, Refunding, 5.00%, 7/01/28	150,000			141,528
	Mirada II Community Development District, Special Assessment, 3.125%, 5/01/31	100,000			88,014
	North AR-1 Pasco Community Development District, Assessment Area Two, Special Assessment, Series 2021A, 3.25%, 5/01/31	100,000			88,926
b	North Powerline Road Community Development District, Special Assessment, 4.75%, 5/01/27	280,000			278,353
	Old Hickory Community Development District, Special Assessment, 3.00%, 6/15/30	100,000			91,207
d	Orange County Health Facilities Authority, Presbyterian Retirement Communities, Inc. Obligated Group, Refunding, Series 2023A, 5.00%, 8/01/32	500,000			524,509
	Palm Beach County Health Facilities Authority, Jupiter Medical Center Obligated Group, 5.00%, 11/01/32	100,000			109,485
	Palm Coast Park Community Development District, 4.15%, 5/01/27	200,000			198,184
	Parkview at Long Lake Ranch Community Development District, Special Assessment, 3.125%, 5/01/30	100,000			89,560
	Parrish Plantation Community Development District, Special Assessment, 3.125%, 5/01/31	100,000			88,577
	Pine Ridge Plantation Community Development District, Subordinate Lien, Special Assessment, Refunding, Series 2020A-2, 3.30%, 5/01/30	150,000			135,895
	Preserve at South Branch Community Development District, Special Assessment, Series 2021, 3.00%, 5/01/31	100,000			90,188
	Reunion East Community Development District, Special Assessment, 2.85%, 5/01/31	100,000			86,309



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SCHEDULE OF INVESTMENTS

Franklin Dynamic Municipal Bond ETF (continued)


		Principal Amount	*		Value
	Municipal Bonds (continued)
	Florida (continued)
	River Hall Community Development District,
	Special Assessment, Refunding, Series 2021A-2, 3.00%, 5/01/24	30,000		$	29,559
	Special Assessment, Refunding, Series 2021A-2, 3.00%, 5/01/25	40,000			38,865
	Rivers Edge II Community Development District, Special Assessment,, 3.00%, 5/01/31	100,000			87,278
b	Rivers Edge III Community Development District, Special Assessment,, 2.40%, 5/01/26	100,000			93,862
	Saddle Creek Preserve of Polk County Community Development District, Special Assessment, 3.00%, 6/15/30	80,000			71,169
	Sanctuary Cove Community Development District, Special Assessment, 2.125%, 5/01/26	135,000			125,697
	Sandmine Road Community Development District,
	^bAssessment Area One, Special Assessment, 3.125%, 5/01/30	100,000			92,318
	Assessment Area Two, Special Assessment, 2.30%, 11/01/26	45,000			41,978
	Sandridge Community Development District, Special Assessment, Series 2021A1, 2.875%, 5/01/26	115,000			109,564
	Sawyers Landing Community Development District, Special Assessment, 3.75%, 5/01/31	150,000			138,701
	Shingle Creek at Bronson Community Development District, Special Assessment, 3.10%, 6/15/31	100,000			88,452
	Six Mile Creek Community Development District, Assessment Area 2, Phase 3, Special Assessment, 3.10%, 5/01/31	75,000			65,953
	South Fork East Community Development District, 4.00%, 5/01/31	755,000			749,501
b	Stillwater Community Development District, 2021 Project, Special Assessment, 3.00%, 6/15/31 .	100,000			87,301
	Summer Woods Community Development District, Assessment Area Three Project, Special Assessment, 3.15%, 5/01/31	75,000			66,200
	Sunbridge Stewardship District, Special Assessment, 4.50%, 5/01/27	235,000			235,469
	Tamarindo Community Development District, Special Assessment, 3.00%, 5/01/31	100,000			87,445
	Timber Creek Southwest Community Development District, Special Assessment, Series 2020, 3.00%, 6/15/30	150,000			133,247
	Tohoqua Community Development District,
	Special Assessment, 2.50%, 5/01/26	140,000			131,843
	Special Assessment, 2.875%, 5/01/31	100,000			86,688
	Tradition Community Development District No. 9, Special Assessment, 2.70%, 5/01/31	100,000			85,532
b	Trevesta Community Development District, Special Assessment, 3.25%, 5/01/30	100,000			90,300
	V-Dana Community Development District, Assessment Area One-2021 Project, Special Assessment, Series 2021P, 3.125%, 5/01/31	100,000			88,717
b	Veranda Community Development District II, Special Assessment, Refunding, 3.10%, 5/01/31	100,000			87,937
	Viera Stewardship District, Village 2, Special Assessment, Series 2021, 2.80%, 5/01/31	130,000			111,711
	Village Community Development District No. 13, Limited Offering, Special Assessment, 3.00%, 5/01/29	100,000			92,052
	West Villages Improvement District, Unit of Development No 7, Special Assessment, 3.125%, 5/01/31	100,000			88,163
	Windward Community Development District, Special Assessment, Series 2020A-1, 3.65%, 5/01/30	100,000			92,669
	Wiregrass II Community Development District, Assessment Area Two, Special Assessment, 4.50%, 5/01/27	225,000			223,130

					15,299,199

	Georgia 5.6%
b	Development Authority of Rockdale County, AHPC Terraces at Fieldstone LLC, Series 2021B-S, 4.50%, 12/01/36	100,000			81,830
b	George L Smith II Congress Center Authority, Signia Hotel Management LLC,, 3.625%, 1/01/31	350,000			305,973
	Main Street Natural Gas, Inc.,
	^a5.00%, 6/01/53	490,000			511,463
	^a5.00%, 7/01/53	1,000,000			1,059,055
	^a,bGas Supply Revenue, , Sereis 2022C, VRDN, 4.00%, 8/01/52	1,500,000			1,431,149
	Series 2019A, 5.00%, 5/15/29	100,000			104,067
	^aSeries 2022A, VRDN, 4.00%, 9/01/52	500,000			489,168
	^aSeries 2022B, 5.00%, 12/01/52	1,500,000			1,559,670



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Franklin Dynamic Municipal Bond ETF (continued)


		Principal Amount	*		Value
	Municipal Bonds (continued)
	Georgia (continued)
	Municipal Electric Authority of Georgia, Refunding, Series 2019A, 5.00%, 1/01/33	100,000		$	109,566

					5,651,941

	Illinois 12.0%
	Chicago Board of Education Dedicated Capital Improvement Tax, 5.00%, 4/01/38	2,065,000			2,171,117
	City of Chicago,
	5.00%, 1/01/34	1,100,000			1,164,703
	5.50%, 1/01/39	1,050,000			1,144,126
	Refunding, Series 2021A, 5.00%, 1/01/33	640,000			680,383
	zero cpn., 1/01/31	875,000			650,199
	Illinois Finance Authority,
	^c2018 Blue Island LLC, Series A-1, 4.25%, 12/01/28	100,000			1
	Lifespace Communities, Inc. Obligated Group, Refunding, Series 2015A, 5.00%, 5/15/24	245,000			242,589
	^bRefunding, 4.00%, 10/01/31	180,000			162,217
	^aRefunding, Monthly, VRDN, 4.574%, 11/01/34	395,000			394,282
	Metropolitan Pier & Exposition Authority,
	McCormick Place Expansion, Refunding, 3.00%, 6/15/25	1,000,000			986,656
	McCormick Project, Refunding, zero cpn., 6/15/28	100,000			83,194
	McCormick Project, zero cpn., 12/15/30	550,000			412,819
	McCormick Project, zero cpn., 12/15/32	85,000			58,655
	Southwestern Illinois Development Authority, Madison County Community Unit School District No 7 Edwardsville, Refunding, zero cpn., 12/01/24	245,000			231,636
	State of Illinois,
	5.50%, 1/01/30	670,000			771,338
	Series 2020B, 5.00%, 10/01/31	150,000			168,560
	Series 2021B, 3.00%, 12/01/41	500,000			413,859
	Series A, 5.00%, 3/01/31	325,000			367,824
	State of Illinois Sales Tax Revenue,
	5.00%, 6/15/30	695,000			762,176
	Series A, 4.00%, 6/15/27	495,000			507,286
	Series D, 4.00%, 6/15/30	625,000			631,767
b	Upper Illinois River Valley Development Authority, Refunding, 3.50%, 12/01/32	124,176			107,914
	Village of Villa Park, Garden Station Redevelopment Area, 12/31/38	100,000			74,516

					12,187,817

	Indiana 0.6%
b	City of Goshen, Green Oaks of Goshen LLC, 4.75%, 8/01/24	130,000			124,078
b	City of Jeffersonville, Vivera Senior Living of Columbus LLC, Series 2020A, 4.75%, 11/01/30	100,000			87,367
	Indiana Finance Authority,
	Ohio Valley Electric Corp., Series 2012C, 3.00%, 11/01/30	150,000			139,425
	University of Evansville, 7.00%, 9/01/32	180,000			169,686
b	Indiana Housing & Community Development Authority, Vita of Marion LLC, Series 2021A,
	5.00%, 4/01/31	100,000			87,469

					608,025

	Iowa 2.6%
	Iowa Finance Authority,
	^a3.931%, 5/15/56	500,000			453,064
	^a4.00%, 12/01/50	1,000,000			974,902
	4.125%, 5/15/38	100,000			75,599
	5.00%, 5/15/32	500,000			453,475
	Iowa Tobacco Settlement Authority, Refunding, Series 2021B-1, 4.00%, 6/01/49	710,000			701,901

					2,658,941

	Kentucky 1.3%
a	County of Owen, Refunding, VRDN, Series A, 2.45%, 6/01/39	100,000			92,647
	Kentucky Economic Development Finance Authority, 5.00%, 8/01/29	280,000			310,978



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Franklin Dynamic Municipal Bond ETF (continued)


		Principal Amount	*		Value
	Municipal Bonds (continued)
	Kentucky (continued)
a	Kentucky Public Energy Authority, Kentucky Public Energy Authority, , Series 2022A2, Daily, VRDN, 4.429%, 8/01/52	875,000		$	835,818
	Louisville/Jefferson County Metropolitan Government, Refunding, 4.00%, 5/01/29	100,000			93,191

					1,332,634

	Louisiana 2.0%
	Lakeshore Villages Master Community Development District, 5.00%, 6/01/32	245,000			246,166
	Louisiana Local Government Environmental Facilities & Community Development Authority,
	3.50%, 11/01/32	1,505,000			1,386,715
	^b3.90%, 11/01/44	185,000			158,318
	^b5.00%, 7/01/29	100,000			96,003
	^bPatriot Services Group Obligated Group, 5.25%, 10/01/32	145,000			127,635

					2,014,837

	Maryland 0.6%
b	City of Baltimore, Harbor Point Special Taxing District, Refunding, 3.25%, 6/01/31	100,000			88,142
	County of Frederick, Oakdale-Lake Linganore Development District, 3.25%, 7/01/29	140,000			130,800
	Maryland Economic Development Corp., Ports America Chesapeake LLC, Refunding, Series 2017A, 5.00%, 6/01/27	100,000			106,040
	Maryland Health & Higher Educational Facilities Authority,
	Adventist Healthcare Obligated Group, Refunding, 4.00%, 1/01/30	145,000			148,163
	Refunding, 5.00%, 6/01/30	100,000			109,963

					583,108

	Massachusetts 0.3%
	Massachusetts Development Finance Agency,
	Foxborough Regional Charter School, Refunding, 5.00%, 7/01/27	100,000			101,947
	Salem Community Corp. Obligated Group, Refunding, 5.00%, 1/01/28	200,000			196,267

					298,214

	Michigan 0.6%
	Grand Rapids Economic Development Corp., Refunding, 4.00%, 11/01/27	100,000			93,006
b	Kalamazoo Economic Development Corp., Refunding, 5.00%, 8/15/31	110,000			102,909
	Michigan Finance Authority,
	Lawrence Technological University Obligated Group, Refunding, 4.00%, 2/01/27	190,000			186,566
	Lawrence Technological University Obligated Group, Refunding, 4.00%, 2/01/32	285,000			272,616

					655,097

	Minnesota 1.6%
	County of Mille Lacs, Series 2018A, 3.00%, 2/01/24	135,000			135,260
	Duluth Economic Development Authority, Refunding, 4.00%, 7/01/31	125,000			114,962
a	Minnesota Municipal Gas Agency, 4.229%, 12/01/52	1,200,000			1,175,702
	Northern Municipal Power Agency, Refunding, 5.00%, 1/01/36	100,000			106,077
	St. Louis Park Independent School District No. 283, Series 2018A, 5.00%, 2/01/25	100,000			104,459

					1,636,460

	Mississippi 0.3%
b	Mississippi Development Bank, Magnolia Regional Health Center, Refunding, 5.00%, 10/01/31	150,000			160,752
	Mississippi Home Corp.,
	^b Patriot Services Group Obligated Group, Series 2021D-8, 3.50%, 6/01/33	100,000			83,341
	Patriot Services Group Pascagoula Portfolio II Obligated Group, Series 2021A, 3.65%, 6/01/33	100,000			84,498

					328,591



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Franklin Dynamic Municipal Bond ETF (continued)


		Principal Amount	*		Value
	Municipal Bonds (continued)
	Missouri 0.2%
	Cape Girardeau County Industrial Development Authority, SoutheastHEALTH Obligated Group, 5.00%, 3/01/29	130,000		$	135,492
	City of Maryland Heights, Westport Plaza Redevelopment, 3.625%, 11/01/31	80,000			71,688

					207,180

	Montana 0.1%
	Cascade County High School District A Great Falls, 5.00%, 7/01/25	100,000			105,130

	Nebraska 1.0%
a	Central Plains Energy Project, Series 2022-1, VRDN, 5.00%, 5/01/53	1,000,000			1,035,722

	Nevada 0.7%
	Carson City, Carson Tahoe Regional Healthcare Obligated Group, 5.00%, 9/01/28	140,000			149,866
	City of Las Vegas Special Improvement District No. 611, Special Improvement District No 611, Special Assessment, 3.50%, 6/01/31	160,000			142,700
	City of Las Vegas Special Improvement District No. 816, Special Assessment, 2.50%, 6/01/29	200,000			172,037
	Tahoe-Douglas Visitors Authority, 5.00%, 7/01/31	250,000			264,917

					729,520

	New Jersey 1.0%
b	Camden County Improvement Authority, Camden Prep High School Project, 5.00%, 7/15/32	250,000			267,303
	New Jersey Economic Development Authority,
	5.00%, 7/01/32	100,000			100,263
	^aAMT, Refunding, VRDN, 2.20%, 10/01/39	100,000			88,369
	United Airlines, Inc., 5.25%, 9/15/29	250,000			250,472
	Pinelands Regional School District, 3.00%, 8/01/27	100,000			100,408
	Tobacco Settlement Financing Corp., Refunding, Series 2018A, 5.00%, 6/01/30	190,000			205,882

					1,012,697

	New York 7.5%
	Genesee County Funding Corp., Rochester Regional Health Obligated Group, 5.00%, 12/01/29 .	200,000			216,565
	Metropolitan Transportation Authority,
	Green Bond, Series 2017C-1, 5.00%, 11/15/28	1,530,000			1,653,089
	Green Bond, Series 2017C-1, 5.00%, 11/15/30	940,000			1,012,683
	New York State Dormitory Authority, St Joseph’s College, 5.00%, 7/01/30	65,000			70,584
	New York Transportation Development Corp.,
	2.25%, 8/01/26	120,000			111,709
	3.00%, 8/01/31	210,000			183,873
	4.00%, 1/01/36	450,000			429,440
	5.00%, 1/01/36	935,000			946,335
	AMT, 5.25%, 8/01/31	90,000			92,919
	Delta Air Lines, Inc., AMT, 4.00%, 10/01/30	1,250,000			1,227,418
	Laguardia Gateway Partners LLC Term B, AMT, 5.00%, 7/01/30	100,000			101,656
	Port Authority of New York & New Jersey,
	4.00%, 7/15/35	1,000,000			1,030,112
	Series 230TH, 3.00%, 12/01/31	500,000			514,358

					7,590,741

	North Dakota 0.1%
b,c	County of Grand Forks, Red River Biorefinery LLC, AMT, 6.625%, 12/15/31	125,000			68,750

	Ohio 2.1%
	Akron Bath Copley Joint Township Hospital District, Summa Health System Obligated Group, Refunding, 4.00%, 11/15/33	150,000			150,279
	Buckeye Tobacco Settlement Financing Authority,
	4.00%, 6/01/39	155,000			150,205
	Refunding, Series 2020A-2, Class 1, 5.00%, 6/01/28	175,000			188,730
	County of Cuyahoga, Eliza Jennings Obligated Group, Refunding, 5.00%, 5/15/32	600,000			580,772



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SCHEDULE OF INVESTMENTS

Franklin Dynamic Municipal Bond ETF (continued)


		Principal Amount	*		Value
	Municipal Bonds (continued)
	Ohio (continued)
	County of Franklin,
	Ohio Living Obligated Group, Refunding, 4.00%, 7/01/33	200,000		$	182,321
	Wesley Communities Obligated Group, Refunding, 5.00%, 11/15/30	100,000			96,017
	Franklin County Convention Facilities Authority, 5.00%, 12/01/30	100,000			102,831
b	Ohio Air Quality Development Authority, AMT, 3.75%, 1/15/28	100,000			97,262
	Ohio Higher Educational Facility Commission, Cleveland Institute of Music/The, 5.00%, 12/01/32	300,000			325,299
	State of Ohio, Refunding, 5.00%, 11/15/33	200,000			214,623

					2,088,339

	Oregon 0.4%
	Union County Hospital Facility Authority, Grande Ronde Hospital Inc Obligated Group, 5.00%, 7/01/31	340,000			370,870

	Pennsylvania 1.3%
	Allegheny County Higher Education Building Authority, Robert Morris University, 5.00%, 10/15/26	100,000			102,038
b	Allentown Neighborhood Improvement Zone Development Authority, 5.00%, 5/01/28	100,000			102,424
	Bucks County Industrial Development Authority, Grand View Hospital/Sellersville PA Obligated Group, 5.00%, 7/01/32	150,000			155,875
	Franklin County Industrial Development Authority, Refunding, 5.00%, 12/01/28	100,000			95,901
a	Luzerne County Industrial Development Authority, Pennsylvania-American Water Co., AMT, Refunding, VRDN, 2.45%, 12/01/39	100,000			92,382
	Pennsylvania Economic Development Financing Authority, UPMC Obligated Group, Series 2017A, 3.375%, 11/15/33	125,000			125,608
	Philadelphia Authority for Industrial Development, MaST Community Charter School II, 5.00%, 8/01/30	150,000			156,639
	Redevelopment Authority of the City of Philadelphia, Social Bond, Series 2021A, 2.799%, 9/01/33	500,000			414,135
	Westmoreland County Industrial Development Authority, Excela Health Obligated Group, Refunding, Series 2020A, 5.00%, 7/01/30	100,000			107,601

					1,352,603

	Puerto Rico 2.0%
	Commonwealth of Puerto Rico,
	Series 2021A, zero cpn., 7/01/24	3,219			3,031
	Series 2021A, zero cpn., 7/01/33	12,391			7,038
	Series 2021A1, 4.00%, 7/01/33	359,628			324,076
	Series 2021A1, 4.00%, 7/01/35	8,654			7,564
	Series 2021A1, 4.00%, 7/01/37	7,428			6,304
	Series 2021A1, 4.00%, 7/01/41	10,099			8,216
	Series 2021A1, 4.00%, 7/01/46	110,503			86,464
	Series 2021A1, 5.625%, 7/01/27	10,626			10,991
	Series 2021A1, 5.625%, 7/01/29	10,454			10,931
	Series 2021A1, 5.75%, 7/01/31	10,154			10,789
	VRDN, 11/01/43	45,587			19,888
	GDB Debt Recovery Authority of Puerto Rico, 7.50%, 8/20/40	328,067			272,296
	HTA HRRB Custodial Trust,
	5.25%, 7/01/32	200,000			202,465
	5.50%, 7/01/28	155,000			159,885
	5.50%, 7/01/29	250,000			258,350
a	Puerto Rico Commonwealth Aqueduct & Sewer Authority, 6.125%, 7/01/24	10,000			10,135
	Puerto Rico Electric Power Authority,
	Refunding, Series 2007VV, 5.25%, 7/01/27	170,000			172,106
	Refunding, Series 2007VV, 5.25%, 7/01/32	175,000			175,449



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SCHEDULE OF INVESTMENTS

Franklin Dynamic Municipal Bond ETF (continued)


		Principal Amount	*		Value
	Municipal Bonds (continued)
	Puerto Rico (continued)
	Puerto Rico Industrial Tourist Educational Medical & Environmental Control Financing Authority,
	4.00%, 7/01/37	100,000		$	93,711
	4.00%, 7/01/39	100,000			91,737
	4.00%, 7/01/40	100,000			90,817

					2,022,243

	South Carolina 0.5%
b	County of Richland, Village at Sandhill Improvement District, Special Assessment, Refunding, 3.00%, 11/01/26	100,000			91,837
	Patriots Energy Group, Refunding, 4.00%, 6/01/33	100,000			102,283
	South Carolina Jobs-Economic Development Authority,
	AHPC Vista Towers 2021 LLC, 3.65%, 12/01/36	100,000			80,310
	^bColumbia Portfolio Obligated Group, 6/01/37	315,000			208,924
	^bOrchard Pk and Willowbrook Apartment, 3.65%, 12/01/36	100,000			80,557

					563,911

	Tennessee 3.2%
	City of Lawrenceburg, Refunding, 2.50%, 6/01/27	100,000			98,532
	Cleveland Housing Authority,
	^bCleveland Forward Phase One LLC, 6.25%, 4/01/41	300,000			287,616
	^bCleveland Forward Phase Two LLC, 6.25%, 4/01/41	100,000			95,872
	Metropolitan Nashville Airport Authority, Subordinate, AMT, Series 2019B, 5.00%, 7/01/30	100,000			111,009
a	Tennergy Corp., 5.50%, 10/01/53	1,500,000			1,593,404
	Tennessee Energy Acquisition Corp.,
	^a5.00%, 5/01/52	500,000			522,026
	^a5.00%, 5/01/53	500,000			514,822

					3,223,281

	Texas 7.2%
	Arlington Higher Education Finance Corp., Riverwalk Education Foundation, Inc., 4.00%, 8/15/33	100,000			104,694
	City of Cedar Park, Refunding, 5.00%, 2/15/24	100,000			102,043
	City of Celina,
	^bCelina Hills Public Improvement District, Special Assessment, 4.375%, 9/01/27	100,000			98,008
	^bEdgewood Creek Public Improvement District, Special Assessment, 3.75%, 9/01/31	180,000			156,181
	^bSpecial Assessment, 3.625%, 9/01/30	125,000			112,484
	^bSutton Fields II Public Improvement District, Special Assessment, 2.875%, 9/01/27	100,000			89,596
	^bThe Parks at Wilson Creek Public Improvement District, Special Assessment, 3.25%, 9/01/31	110,000			97,541
	^bWells North Public Improvement District, Special Assessment, 3.25%, 9/01/30	180,000			159,051
	^bCity of Crandall, Special Assessment, 4.75%, 9/15/31	100,000			93,150
	City of Fate,
	^bMonterra Public Improvement District, Special Assessment, 2.75%, 8/15/26	97,000			89,157
	^bWilliamsburg East Public Improvement District, Special Assessment, 3.375%, 8/15/30	145,000			127,985
	City of Horseshoe Bay, Escondido Public Improvement District, Special Assessment, Refunding, 3.00%, 10/01/30	140,000			121,760
	City of Kyle,
	^b4.50%, 9/01/33	395,000			392,715
	^bCreeks Public Improvement District, Special Assessment, 2.75%, 9/01/26	100,000			90,267
	Kyle 57 Public Improvement District, Series 2022, 4.75%, 9/01/32	133,000			130,523
	^bPlum Creek North Public Improvement District, Special Assessment, 4.375%, 9/01/32	215,000			204,616
	City of Lago Vista,
	Special Assessment, Refunding, 3.125%, 9/01/30	130,000			117,311
	^bTessera on Lake Travis Public Improvement District, Special Assessment, Refunding, 5.00%, 9/01/30	140,000			132,579
	City of Leander, Oak Creek Public Improvement District, Special Assessment, Refunding, 3.25%, 9/01/32	100,000			87,833



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SCHEDULE OF INVESTMENTS

Franklin Dynamic Municipal Bond ETF (continued)


		Principal Amount	*		Value
	Municipal Bonds (continued)
	Texas (continued)
b	City of Liberty Hill, Summerlyn West Public Improvement District, Special Assessment, 3.125%, 9/01/30	75,000		$	65,463
b	City of Mclendon-Chisholm, Sonoma Public Improvement District, Special Assessment, 5.375%, 9/15/32	155,000			155,137
	City of Pilot Point,
	^bCreekview Public Improvement District, Special Assessment, Series 2022, 5.25%, 9/15/32	150,000			150,667
	^bCreekview Public Improvement District, Special Assessment, Series 2022, 5.75%, 9/15/32	145,000			145,286
	City of Princeton,
	^bSpecial Assessment, 3.25%, 9/01/30	100,000			89,651
	^bWinchester Public Improvement District, Special Assessment, 2.875%, 9/01/31	100,000			85,513
b	City of Royse City, Creekshaw Public Improvement District, Special Assessment, 3.125%, 9/15/25	150,000			143,532
b	City of Sachse, 6.00%, 9/15/28	100,000			100,966
b	City of Tomball, Raburn Reserve Public Improvement District, Special Assessment, 3.375%, 9/15/30	100,000			90,287
b	County of Hays, La Cima Public Improvement District, Special Assessment, 3.25%, 9/15/30	150,000			130,887
b	County of Medina, Woodlands Public Improvement District IA#1 Project, Special Assessment, 3.50%, 9/01/26	100,000			91,390
	Ector County Hospital District, Refunding, 5.00%, 9/15/31	100,000			107,952
	Matagorda County Navigation District No. 1, 5.125%, 11/01/28	1,000,000			1,076,481
	New Hope Cultural Education Facilities Finance Corp.,
	5.00%, 4/01/31	30,000			32,117
	CHF-Collegiate Housing College Station I LLC, 5.00%, 4/01/29	100,000			99,846
	Refunding, 4.00%, 1/01/29	100,000			88,507
	North Parkway Municipal Management District No. 1,
	^bLegacy Hills Public Improvement District, Special Assessment, 3.625%, 9/15/31	50,000			44,846
	^bSpecial Assessment, 4.25%, 9/15/31	152,000			145,635
	Texas Municipal Gas Acquisition & Supply Corp. III, 5.00%, 12/15/31	1,750,000			1,835,270
	Viridian Municipal Management District,
	Special Assessment, 2.875%, 12/01/30	100,000			85,199
	Viridian Public Improvement District, Special Assessment, 2.375%, 12/01/25	40,000			37,277

					7,309,403

	Utah 0.8%
	Military Installation Development Authority, Series 2021A-2, 4.00%, 6/01/36	250,000			209,985
b	Utah Charter School Finance Authority, Wallace Stegner Academy, Series 2022A, 5.25%, 6/15/32	230,000			227,178
	Utah Infrastructure Agency, 5.00%, 10/15/32	250,000			256,868
	Utah State Building Ownership Authority, Master Lease Program, 2.50%, 5/15/27	100,000			98,807

					792,838

	Vermont 0.1%
	Vermont Public Power Supply Authority, Refunding, Series 2017A, 5.00%, 7/01/28	100,000			106,995

	Virginia 0.2%
b	Peninsula Town Center Community Development Authority, Special Assessment, Refunding, 4.50%, 9/01/28	100,000			98,500
	Virginia Small Business Financing Authority, National Senior Campuses, Inc.Obligated Group, Refunding, 5.00%, 1/01/33	100,000			108,267

					206,767

	Washington 1.9%
	Skagit County Public Hospital District No. 1, Refunding, 5.00%, 12/01/29	100,000			104,406
	Washington Health Care Facilities Authority,
	^b3.00%, 12/01/34	125,000			118,104
	^b5.00%, 12/01/32	250,000			277,275
	5.00%, 8/01/35	970,000			1,042,636



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SCHEDULE OF INVESTMENTS

Franklin Dynamic Municipal Bond ETF (continued)


		Principal Amount	*		Value
	Municipal Bonds (continued)
	Washington (continued)
	Washington State Housing Finance Commission, ^b eliseo Obligated Group, Series 2021A, 4.00%, 1/01/31	100,000		$	91,349
	^bMadison at Rivers Edge Apartments LLC, 3.65%, 1/01/37	100,000			80,560
	^bPresbyterian Retirement Communities Northwest Obligated Group, Series 2019A, 5.00%, 1/01/34	100,000			86,357
	^bSpokane United Methodist Homes Obligated Group, 5.00%, 1/01/32	100,000			88,152

					1,888,839

	West Virginia 0.2%
a	West Virginia Economic Development Authority, Appalachian Power Co., VRDN, 3.75%, 12/01/42	250,000			249,273

	Wisconsin 1.4%
	Public Finance Authority,^bCoral Academy of Science Reno, 5.375%, 6/01/37	335,000			330,244
	^bFriends Homes Obligated Group, Refunding, 4.00%, 9/01/29	100,000			93,683
	^bOcean Academy Charter School, 4.00%, 10/15/31	100,000			89,452
	^bRefunding, 4.00%, 3/01/27	45,000			42,896
	^bRefunding, 4.00%, 7/01/31	100,000			88,031
	^bRefunding, 5.00%, 10/01/24	100,000			100,556
	^bRefunding, 5.00%, 10/01/29	100,000			100,219
	Refunding, 5.00%, 1/01/30	250,000			276,579
	^bSignature Preparatory, 5.00%, 6/15/31	120,000			115,537
	^a,bVRDN, 3.50%, 12/01/50	100,000			81,389
	Wisconsin Health & Educational Facilities Authority, St John’s Communities, Inc. Obligated Group, Series 2018A, 4.00%, 9/15/27	100,000			100,554

					1,419,140

	Senior Floating Rate Interest 0.5%
	Real Estate Development 0.5%
e	Centennial Gardens LP, Delayed Draw Term Loan, 6.206%, 8/01/24	500,000			512,502

	Total Floating Rate Loans (Cost $500,000)				512,502

	Total Investments (Cost $102,964,295) 98.1%				99,618,121
	Other Assets, less Liabilities 1.9%				1,879,119

	Net Assets 100.0%			$	101,497,240

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

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

^cSee Note 7 regarding defaulted securities.

^dSecurity purchased on a when-issued basis. See Note 1(d).

^eFair valued using significant unobservable inputs. Note 9 regarding fair value measurements.

See Note 8 regarding other derivative information.

See Abbreviations on page 246.



124	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,

	2023			2022			2021^a

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

Net asset value, beginning of year		$22.78			$23.34			$25.00

Income from investment operations^b:

Net investment income (loss)^c		(0.01	)		(0.05	)		(—	)^d

Net realized and unrealized gains (losses)		(5.91	)		(0.51	)		(1.66	)

Total from investment operations		(5.92	)		(0.56	)		(1.66	)

Net asset value, end of year		$16.86			$22.78			$23.34

Total return^e		(25.99)%			(2.40)%			(6.64)%

Ratios to average net assets^f

Expenses before waiver and payments by affiliates		0.50%			1.73%			5.95%

Expenses net of waiver and payments by affiliates		0.50%			0.38%			0.25%

Net investment income (loss)		(0.07)%			(0.20)%			(0.07)%

Supplemental data

Net assets, end of year (000’s)		$3,372			$3,417			$2,334

Portfolio turnover rate^g		20.94%^h			49.72%^h			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.

^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:			20.94%				49.72%				23.20%



franklintempleton.com	The accompanying notes are an integral part of these financial statements. \| Annual Report	125

FRANKLIN TEMPLETON ETF TRUST

Schedule of Investments, March 31, 2023

Franklin Exponential Data ETF



		Country		Shares		Value

	Common Stocks 98.8%
	Capital Markets 6.9%
	FactSet Research Systems, Inc.		United States		152	$	63,093
	Moody’s Corp.		United States		66		20,197
	MSCI, Inc.		United States		149		83,394
	S&P Global, Inc.		United States		196		67,575

							234,259

	Communications Equipment 3.0%
a	Arista Networks, Inc.		United States		593		99,541

	Diversified REITs 11.3%
	Crown Castle, Inc.		United States		832		111,355
	Equinix, Inc.		United States		218		157,187
	SBA Communications Corp.		United States		433		113,043

							381,585

	Electronic Equipment, Instruments & Components 2.0%
a	Keysight Technologies, Inc.		United States		412		66,530

	Health Care Equipment & Supplies 1.4%
a	Dexcom, Inc.		United States		421		48,912

	Interactive Media & Services 5.9%
a	Alphabet, Inc., Class A		United States		1,349		139,931
a	ZoomInfo Technologies, Inc., Class A		United States		2,418		59,749

							199,680

	IT Services 15.2%
	Accenture PLC, Class A		United States		249		71,167
a	Endava PLC, ADR		United Kingdom		210		14,108
a	EPAM Systems, Inc.		United States		41		12,259
a	Gartner, Inc.		United States		226		73,624
a	Globant SA		United States		78		12,793
a	MongoDB, Inc.		United States		762		177,637
a	Snowflake, Inc., Class A		United States		917		141,484
a	Thoughtworks Holding, Inc.		United States		1,328		9,774

							512,846

	Professional Services 0.5%
	TransUnion		United States		252		15,659

	Software 49.3%
a	Cloudflare, Inc., Class A		United States		2,328		143,544
a	Confluent, Inc., Class A, A		United States		1,330		32,013
a	Crowdstrike Holdings, Inc., Class A		United States		785		107,749
a	Datadog, Inc., Class A		United States		1,865		135,511
a	Fair Isaac Corp.		United States		146		102,593
a	Fortinet, Inc.		United States		1,354		89,987
a	Gitlab, Inc., Class A, A		United States		1,762		60,419
a	HubSpot, Inc.		United States		114		48,877
	Microsoft Corp.		United States		837		241,307
a	Monday.com Ltd.		United States		505		72,089
a	Palo Alto Networks, Inc.		United States		773		154,399
a	Qualtrics International, Inc., Class A		United States		1,518		27,066
a	Salesforce, Inc.		United States		224		44,751
a	SentinelOne, Inc., Class A, A		United States		2,569		42,029
	ServiceNow, Inc.		United States		318		147,781
a	Sprinklr, Inc., Class A		United States		1,646		21,332
a	Sprout Social, Inc., Class A		United States		286		17,412
a	Trade Desk, Inc., Class A		United States		1,093		66,574
	Trend Micro, Inc.		Japan		1,209		58,774



126	Annual Report	franklintempleton.com

FRANKLIN TEMPLETON ETF TRUST

SCHEDULE OF INVESTMENTS

Franklin Exponential Data ETF (continued)

Country

Shares

Value

Common Stocks (continued)

Software (continued)

Zscaler, Inc.

United States

402

46,966

1,661,173

Wireless Telecommunication Services 3.3%

T-Mobile U.S., Inc.

United States

770

111,527

Total Common Stocks (Cost $3,617,774)

3,331,712

Total Investments before Short-Term Investments
(Cost $3,617,774)

3,331,712

Short-Term Investments 1.1%

Money Market Funds 1.1%

b,c

Institutional Fiduciary Trust - Money Market Portfolio, 4.47%

United States

38,455

Total Short-Term Investments (Cost $38,455)

38,455

Total Investments (Cost $3,656,229) 99.9%

3,370,167

Other Assets, less Liabilities 0.1%

1,969

Net Assets 100.0%

3,372,136

^aNon-income producing.

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

^cSee Note 3(d) regarding investments in affiliated management investment companies.

See Note 8 regarding other derivative information.

See Abbreviations on page 246.



franklintempleton.com	The accompanying notes are an integral part of these financial statements. \| Annual Report	127

FRANKLIN TEMPLETON ETF TRUST

Financial Highlights

Franklin Genomic Advancements ETF



	Year Ended March 31,

	2023			2022			2021			2020^a

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

Net asset value, beginning of year		$37.00			$43.26			$22.58			$25.00

Income from investment operations^b:

Net investment income (loss)^c		(0.05	)		(0.15	)		(0.18	)		(0.01	)

Net realized and unrealized gains (losses)		(6.55	)		(5.99	)		20.92			(2.41	)

Total from investment operations		(6.60	)		(6.14	)		20.74			(2.42	)

Less distributions from:

Net investment income		—			(0.12	)		(0.01	)		—

Net realized gains		—			—			(0.05	)		—

Total distributions		—			(0.12	)		(0.06	)		—

Net asset value, end of year		$30.40			$37.00			$43.26			$22.58

Total return^d		(17.84)%			(14.26)%			91.81%			(9.68)%

Ratios to average net assets^e

Expenses before waiver and payments by affiliates		0.50%			0.66%			1.84%			12.22%

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

Net investment income (loss)		(0.16)%			(0.32)%			(0.45)%			(0.37)%

Supplemental data

Net assets, end of year (000’s)		$10,641			$14,799			$15,140			$2,258

Portfolio turnover rate^f		32.63%^g			61.43%^g			46.58%^g			2.20%^g

^aFor the period February 25, 2020 (commencement of operations) to March 31, 2020.

^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:			31.65%				59.54%				44.75%				2.20%



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

FRANKLIN TEMPLETON ETF TRUST

Schedule of Investments, March 31, 2023

Franklin Genomic Advancements ETF



		Country		Shares		Value

	Common Stocks 94.4%
	Biotechnology 34.0%
a	Alnylam Pharmaceuticals, Inc.		United States		1,333	$	267,027
a	Avid Bioservices, Inc.		United States		12,366		231,986
a	Bavarian Nordic AS		Denmark		1,775		50,895
a	Beam Therapeutics, Inc.		United States		2,006		61,424
	BioNTech SE, ADR		Germany		2,363		294,359
a	CRISPR Therapeutics AG		Switzerland		1,599		72,323
a	Dynavax Technologies Corp.		United States		7,840		76,910
a	Exact Sciences Corp.		United States		2,420		164,100
a	Intellia Therapeutics, Inc.		United States		5,314		198,053
a	Ionis Pharmaceuticals, Inc.		United States		5,250		187,635
a	IVERIC bio, Inc.		United States		3,135		76,274
a	Krystal Biotech, Inc.		United States		2,418		193,585
a	Ligand Pharmaceuticals, Inc.		United States		939		69,073
a	Moderna, Inc.		United States		2,619		402,226
a	PTC Therapeutics, Inc.		United States		3,224		156,171
a	Regeneron Pharmaceuticals, Inc.		United States		492		404,262
a	Sarepta Therapeutics, Inc.		United States		2,139		294,818
a	Twist Bioscience Corp.		United States		1,449		21,851
a	Veracyte, Inc.		United States		801		17,862
a	Vertex Pharmaceuticals, Inc.		United States		1,201		378,399

							3,619,233

	Chemicals 3.6%
	Corteva, Inc.		United States		5,360		323,262
	FMC Corp.		United States		511		62,408

							385,670

	Diversified REITs 0.4%
	Alexandria Real Estate Equities, Inc.		United States		373		46,845

	Health Care Providers & Services 2.1%
a	Guardant Health, Inc.		United States		1,308		30,660
	Laboratory Corp. of America Holdings		United States		508		116,545
a	Privia Health Group, Inc.		United States		2,687		74,188

							221,393

	Health Care Technology 1.9%
a	Doximity, Inc., Class A		United States		1,719		55,661
a	Schrodinger, Inc.		United States		3,978		104,741
	Simulations Plus, Inc.		United States		1,004		44,116

							204,518

	Life Sciences Tools & Services 46.1%
	Agilent Technologies, Inc.		United States		1,704		235,731
a	Avantor, Inc.		United States		1,209		25,558
a	Bio-Rad Laboratories, Inc., Class A		United States		239		114,486
	Bio-Techne Corp.		United States		1,460		108,317
	Bruker Corp.		United States		4,171		328,842
a	Charles River Laboratories International, Inc.		United States		1,111		224,222
	Danaher Corp.		United States		2,427		611,701
a	Evotec SE		Germany		5,328		112,502
a	ICON PLC		Ireland		548		117,047
a	Illumina, Inc.		United States		288		66,974
a	IQVIA Holdings, Inc.		United States		543		107,997
	Lonza Group AG		Switzerland		436		261,252
a	Medpace Holdings, Inc.		United States		2,262		425,369
a	Olink Holding AB, ADR		Sweden		560		12,617
	OmniAb, Inc.		United States		240		0



franklintempleton.com	Annual Report	129

FRANKLIN TEMPLETON ETF TRUST

SCHEDULE OF INVESTMENTS

Franklin Genomic Advancements ETF (continued)



		Country		Shares		Value

	Common Stocks (continued)
	Life Sciences Tools & Services (continued)
	OmniAb, Inc.		United States		240	$	0
a	Oxford Nanopore Technologies PLC		United Kingdom		33,333		91,703
	PerkinElmer, Inc.		United States		1,402		186,831
a	QIAGEN NV		Netherlands		5,038		231,395
a	Repligen Corp.		United States		3,498		588,923
a,b	Samsung Biologics Co. Ltd.		South Korea		570		345,017
	Thermo Fisher Scientific, Inc.		United States		1,224		705,477

							4,901,961

	Pharmaceuticals 4.8%
	AstraZeneca PLC, ADR		United Kingdom		3,866		268,339
	Bristol-Myers Squibb Co.		United States		1,610		111,589
	Eli Lilly & Co.		United States		366		125,692

							505,620

	Semiconductors & Semiconductor Equipment 0.2%
a	Azenta, Inc.		United States		544		24,273

	Software 1.3%
a	Cadence Design Systems, Inc.		United States		682		143,281


	Total Common Stocks (Cost $12,608,600)						10,052,794


	Preferred Stock 4.2%
	Health Care Equipment & Supplies 4.2%
c	Sartorius AG, 0.00%, 0.372%, pfd.		Germany		1,055		443,581


	Total Preferred Stocks (Cost $642,905)						443,581


	Total Investments (Cost $13,251,505) 98.6%						10,496,375

	Other Assets, less Liabilities 1.4%						145,099


	Net Assets 100.0%					$	10,641,474

^aNon-income producing.

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

See Note 8 regarding other derivative information.

See Abbreviations on page 246.



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

FRANKLIN TEMPLETON ETF TRUST

Financial Highlights

Franklin High Yield Corporate ETF^a



	Year Ended March 31,

	2023			2022			2021			2020			2019^b

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

Net asset value, beginning of year		$24.76			$26.16			$22.67			$25.45			$25.00

Income from investment operations^c:

Net investment income^d		1.25			1.20			1.23			1.33			1.21

Net realized and unrealized gains (losses)		(1.95	)		(1.34	)		3.73			(2.51	)		0.49

Total from investment operations		(0.70	)		(0.14	)		4.96			(1.18	)		1.70

Less distributions from:

Net investment income		(1.36	)		(1.18	)		(1.47	)		(1.56	)		(1.23	)

Net realized gains		(0.07	)		(0.08	)		—			(0.04	)		(0.02	)

Total distributions		(1.43	)		(1.26	)		(1.47	)		(1.60	)		(1.25	)

Net asset value, end of year		$22.63			$24.76			$26.16			$22.67			$25.45

Total return^e		(2.68)%			(0.69)%			22.28%			(5.12)%			7.07%

Ratios to average net assets^f

Expenses before waiver and payments by affiliates		0.40%			0.47%			0.64%			0.86%			1.54%

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

Net investment income		5.51%			4.62%			4.84%			5.29%			5.80%

Supplemental data

Net assets, end of year (000’s)		$208,167			$334,286			$346,586			$130,362			$10,181

Portfolio turnover rate^g		17.13%^h			43.83%^h			53.18%^h			129.98%^h			23.57%

^aEffective August 1, 2022, Formerly, Franklin Liberty High Yield Corporate ETF was renamed Franklin High Yield Corporate ETF.

^bFor the period May 30, 2018 (commencement of operations) to March 31, 2019.

^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.

^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:			17.13%				43.83%				53.18%				129.98%				—



franklintempleton.com	The accompanying notes are an integral part of these financial statements. \| Annual Report	131

FRANKLIN TEMPLETON ETF TRUST

Schedule of Investments, March 31, 2023

Franklin High Yield Corporate ETF



		Country		Principal Amount*		Value

	Corporate Bonds & Notes 89.7%
	Airlines 1.8%
a	American Airlines, Inc./AAdvantage Loyalty IP Ltd., senior secured note, 5.50%, 4/20/26		United States		2,200,000	$	2,167,752
a	United Airlines, Inc., 4.375%, 4/15/26		United States		1,700,000		1,628,393

							3,796,145

	Apparel 0.3%
a	Hanesbrands, Inc., 9.00%, 2/15/31		United States		600,000		614,823

	Auto Manufacturers 0.2%
	Ford Motor Credit Co. LLC, 6.95%, 3/06/26		United States		500,000		508,085

	Automobiles & Components 3.7%
	Adient Global Holdings Ltd.,
	7.00%, 4/15/28		United States		500,000		514,440
	8.25%, 4/15/31		United States		900,000		927,536
	Dana, Inc., senior note, 5.625%, 6/15/28		United States		700,000		658,210
a	Dornoch Debt Merger Sub, Inc., 6.625%, 10/15/29		United States		1,700,000		1,148,998
	Goodyear Tire & Rubber Co.,
	5.00%, 7/15/29		United States		1,000,000		894,680
	senior bond, 4.875%, 3/15/27		United States		1,000,000		945,300
a	Jaguar Land Rover Automotive PLC, 5.50%, 7/15/29		United Kingdom		2,600,000		2,044,302
a	Real Hero Merger Sub 2, Inc., senior note, 6.25%, 2/01/29		United States		700,000		518,223

							7,651,689

	Capital Goods 3.9%
a	ATS Corp., 4.125%, 12/15/28		Canada		900,000		799,250
a	Chart Industries, Inc., 7.50%, 1/01/30		United States		900,000		931,023
a	Cornerstone Building Brands, Inc., senior note, 6.125%, 1/15/29		United States		1,400,000		1,000,844
a	Standard Industries, Inc., 4.75%, 1/15/28		United States		200,000		187,119
a	Stericycle, Inc., Senior note, 3.875%, 1/15/29		United States		1,100,000		961,640
a	TransDigm, Inc., senior secured note, 6.25%, 3/15/26		United States		2,700,000		2,705,197
a	Vertiv Group Corp., 4.125%, 11/15/28		United States		1,700,000		1,501,924

							8,086,997

	Chemicals 0.9%
	Celanese U.S. Holdings LLC, 6.33%, 7/15/29		United States		1,900,000		1,922,891

	Commercial & Professional Services 4.5%
a	APX Group, Inc., 5.75%, 7/15/29		United States		1,100,000		985,886
a	Gartner, Inc., 3.625%, 6/15/29		United States		600,000		535,923
	Grand Canyon University, 5.125%, 10/01/28		United States		1,700,000		1,538,041
a	H&E Equipment Services, Inc., senior note, 3.875%, 12/15/28		United States		1,900,000		1,667,250
a	Herc Holdings, Inc., senior note, 5.50%, 7/15/27		United States		600,000		579,795
a	MPH Acquisition Holdings LLC, 5.75%, 11/01/28		United States		1,600,000		1,152,662
a	NESCO Holdings II, Inc., secured note, 5.50%, 4/15/29		United States		600,000		543,417
a	Prime Security Services Borrower LLC/Prime Finance, Inc., senior secured note, first lien, 3.375%, 8/31/27		United States		1,800,000		1,615,428
a	PROG Holdings, Inc., 6.00%, 11/15/29		United States		800,000		681,149

							9,299,551

	Commercial Banks 0.5%
	Credit Suisse Group AG, 4.55%, 4/17/26		Switzerland		1,200,000		1,108,500

	Commercial Services 1.3%
a	Ashtead Capital, Inc., 1.50%, 8/12/26		United Kingdom		700,000		614,306
	United Rentals North America, Inc., 5.50%, 5/15/27		United States		2,100,000		2,082,160

							2,696,466

	Construction Materials 0.4%
a	Camelot Return Merger Sub, Inc., 8.75%, 8/01/28		United States		800,000		741,600



132	Annual Report	franklintempleton.com

FRANKLIN TEMPLETON ETF TRUST

SCHEDULE OF INVESTMENTS

Franklin High Yield Corporate ETF (continued)

Country

Principal Amount*

Value

Corporate Bonds & Notes (continued)

Consumer Discretionary Distribution & Retail 1.1%

Fertitta Entertainment LLC/Fertitta Entertainment Finance Co., Inc., 6.75%, 1/15/30

United States

1,100,000

905,993

Gap, Inc., 3.625%, 10/01/29

United States

600,000

428,520

Macy’s Retail Holdings LLC,

6.125%, 3/15/32

United States

400,000

352,476

5.875%, 3/15/30

United States

700,000

622,101

2,309,090

Consumer Durables & Apparel 0.5%

Ashton Woods USA LLC/Ashton Woods Finance Co., 4.625%, 4/01/30

United States

1,200,000

989,400

Consumer Services 4.6%

a,b,c

24 Hour Fitness Worldwide, Inc., senior note, 8.00%, 6/01/22

United States

800,000

—

Carnival Corp.,

7.625%, 3/01/26

United States

800,000

730,784

senior note, 5.75%, 3/01/27

United States

2,000,000

1,642,830

NCL Corp. Ltd., 5.875%, 3/15/26

United States

1,300,000

1,107,795

Royal Caribbean Cruises Ltd., 5.50%, 8/31/26

United States

1,800,000

1,686,069

Station Casinos LLC, 4.50%, 2/15/28

United States

1,400,000

1,265,145

Studio City Finance Ltd., senior note, 5.00%, 1/15/29

United States

2,300,000

1,768,205

Wynn Las Vegas LLC/Wynn Las Vegas Capital Corp., senior bond, 5.50%, 3/01/25

United States

1,500,000

1,473,645

9,674,473

Distribution/Wholesale 0.2%

Ritchie Bros Holdings, Inc., 6.75%, 3/15/28

Canada

400,000

412,432

Diversified Financial Services 0.4%

Jane Street Group/JSG Finance, Inc., senior secured, 4.50%, 11/15/29

United States

600,000

537,876

PRA Group, Inc., 8.375%, 2/01/28

United States

300,000

300,218

838,094

Energy 15.8%

Antero Resources Corp., 7.625%, 2/01/29

United States

601,000

615,111

Atlantica Sustainable Infrastructure PLC, 4.125%, 6/15/28

Spain

1,400,000

1,257,760

Calumet Specialty Products Partners LP/Calumet Finance Corp., 8.125%, 1/15/27

United States

700,000

667,059

Cheniere Energy Partners LP,

4.00%, 3/01/31

United States

800,000

712,784

senior note, 4.50%, 10/01/29

United States

1,000,000

929,946

Cheniere Energy, Inc., senior secured, 4.625%, 10/15/28

United States

1,700,000

1,617,448

Chesapeake Energy Corp., 6.75%, 4/15/29

United States

2,000,000

1,987,450

Crestwood Midstream Partners LP/Crestwood Midstream Finance Corp.,

senior note, 5.75%, 4/01/25

United States

700,000

684,460

senior note, 8.00%, 4/01/29

United States

1,200,000

1,225,080

CrownRock LP/CrownRock Finance, Inc., 5.00%, 5/01/29

United States

1,000,000

932,800

CSI Compressco LP/CSI Compressco Finance, Inc., senior secured note, first lien, 7.50%, 4/01/25

United States

1,000,000

953,760

DT Midstream, Inc., 4.125%, 6/15/29

United States

1,500,000

1,316,771

Enerflex Ltd., 9.00%, 10/15/27

Canada

1,100,000

1,070,812

EnLink Midstream Partners LP, senior note, 4.15%, 6/01/25

United States

1,900,000

1,844,738

EQM Midstream Partners LP, 7.50%, 6/01/27

United States

1,600,000

1,607,952

Harbour Energy PLC, 5.50%, 10/15/26

United Kingdom

2,300,000

2,015,513

Hilcorp Energy I LP/Hilcorp Finance Co.,

senior bond, 6.00%, 2/01/31

United States

400,000

369,795

senior note, 5.75%, 2/01/29

United States

1,700,000

1,567,043

Kinetik Holdings LP, 5.875%, 6/15/30

United States

1,600,000

1,542,400

Nabors Industries Ltd., senior note, 7.25%, 1/15/26

United States

600,000

572,841

Nabors Industries, Inc., 7.375%, 5/15/27

United States

1,200,000

1,176,360



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SCHEDULE OF INVESTMENTS

Franklin High Yield Corporate ETF (continued)

Country

Principal Amount*

Value

Corporate Bonds & Notes (continued)

Energy (continued)

Occidental Petroleum Corp.,

senior bond, 6.45%, 9/15/36

United States

800,000

842,000

senior bond, 8.875%, 7/15/30

United States

1,500,000

1,746,105

SunCoke Energy, Inc., 4.875%, 6/30/29

United States

1,100,000

959,012

Sunoco LP/Sunoco Finance Corp., senior note, 6.00%, 4/15/27

United States

1,500,000

1,482,746

Venture Global Calcasieu Pass LLC,

4.125%, 8/15/31

United States

800,000

703,672

3.875%, 8/15/29

United States

900,000

812,610

Weatherford International Ltd.,

8.625%, 4/30/30

United States

500,000

511,980

6.50%, 9/15/28

United States

1,100,000

1,102,921

32,828,929

Entertainment 0.3%

Caesars Entertainment, Inc., 7.00%, 2/15/30

United States

600,000

611,049

Financial Services 5.3%

Apollo Commercial Real Estate Finance, Inc., 4.625%, 6/15/29

United States

1,600,000

1,127,152

Global Net Lease, Inc./Global Net Lease Operating Partnership LP, senior note, 3.75%, 12/15/27

United States

1,400,000

1,109,169

Jefferson Capital Holdings LLC, 6.00%, 8/15/26

United States

1,500,000

1,274,484

Ladder Capital Finance Holdings LLLP/Ladder Capital Finance Corp., 4.75%, 6/15/29

United States

1,500,000

1,085,872

Necessity Retail REIT, Inc./American Finance Operating Partner LP, 4.50%, 9/30/28

United States

1,900,000

1,423,341

Oxford Finance LLC/Oxford Finance Co.-Issuer II, Inc., 6.375%, 2/01/27

United States

1,500,000

1,404,367

PRA Group, Inc., 5.00%, 10/01/29

United States

1,500,000

1,256,866

VICI Properties LP/VICI Note Co., Inc., 3.875%, 2/15/29

United States

2,000,000

1,780,290

XHR LP, 4.875%, 6/01/29

United States

600,000

509,491

10,971,032

Food, Beverage & Tobacco 0.2%

Primo Water Holdings, Inc., 4.375%, 4/30/29

Canada

400,000

349,514

Hand/Machine Tools 0.5%

Regal Rexnord Corp.,

6.40%, 4/15/33

United States

500,000

500,904

6.30%, 2/15/30

United States

600,000

604,756

1,105,660

Health Care Equipment & Services 3.5%

Centene Corp., senior note, 4.25%, 12/15/27

United States

2,000,000

1,928,920

CHS/Community Health Systems, Inc.,

senior secured note, 6.00%, 1/15/29

United States

1,000,000

846,890

secured note, 6.875%, 4/15/29

United States

1,400,000

868,420

DaVita, Inc., 4.625%, 6/01/30

United States

2,500,000

2,136,250

Tenet Healthcare Corp., 6.125%, 6/15/30

United States

1,500,000

1,481,100

7,261,580

Healthcare-Products 0.8%

Garden Spinco Corp., 8.625%, 7/20/30

United States

1,600,000

1,711,193

Healthcare-Services 0.2%

Tenet Healthcare Corp., 6.125%, 10/01/28

United States

500,000

479,673

Household & Personal Products 1.0%

Spectrum Brands, Inc., senior bond, 5.50%, 7/15/30

United States

800,000

704,687

VM Consolidated, Inc., senior note, 5.50%, 4/15/29

United States

1,600,000

1,418,723

2,123,410



134	Annual Report	franklintempleton.com

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SCHEDULE OF INVESTMENTS

Franklin High Yield Corporate ETF (continued)

Country

Principal Amount*

Value

Corporate Bonds & Notes (continued)

Insurance 0.8%

Alliant Holdings Intermediate LLC/Alliant Holdings Co-Issuer, 6.75%, 4/15/28

United States

700,000

692,846

Jones Deslauriers Insurance Management, Inc., 10.50%, 12/15/30

Canada

1,000,000

1,008,463

1,701,309

Leisure Time 0.3%

Carnival Holdings Bermuda Ltd., 10.375%, 5/01/28

United States

600,000

646,017

Lodging 0.9%

Las Vegas Sands Corp.,

3.20%, 8/08/24

United States

500,000

484,029

3.50%, 8/18/26

United States

1,400,000

1,307,953

1,791,982

Machinery-Diversified 0.0%

Titan Acquisition Ltd./Titan Co.-Borrower LLC, 7.75%, 4/15/26

Canada

100,000

83,852

Materials 8.5%

Advanced Drainage Systems, Inc., 6.375%, 6/15/30

United States

1,400,000

1,373,410

Arcosa, Inc., 4.375%, 4/15/29

United States

1,400,000

1,246,532

Ardagh Packaging Finance PLC/Ardagh Holdings USA, Inc.,

senior note, 5.25%, 8/15/27

Luxembourg

200,000

157,882

senior secured note, first lien, 5.25%, 4/30/25

Luxembourg

1,700,000

1,676,106

ASP Unifrax Holdings, Inc., 5.25%, 9/30/28

United States

400,000

320,120

Consolidated Energy Finance SA, 5.625%, 10/15/28

Luxembourg

400,000

344,512

Constellium SE, 3.75%, 4/15/29

France

1,700,000

1,474,750

Eco Material Technologies, Inc., 7.875%, 1/31/27

United States

1,300,000

1,235,105

Gates Global LLC/Gates Corp., senior note, 6.25%, 1/15/26

United States

1,600,000

1,574,200

Glatfelter Corp., 4.75%, 11/15/29

United States

900,000

595,407

GPD Cos., Inc., senior secured note, 10.125%, 4/01/26

United States

550,000

500,665

Novelis Corp., senior bond, 4.75%, 1/30/30

United States

1,400,000

1,288,000

OI European Group BV, 4.75%, 2/15/30

United States

1,000,000

916,280

Owens-Brockway Glass Container, Inc., senior note, 5.875%, 8/15/23

United States

422,000

421,760

Pactiv Evergreen Group Issuer, Inc./Pactiv Evergreen Group Issuer LLC, senior secured note, 4.00%, 10/15/27

United States

1,500,000

1,348,823

Rain CII Carbon LLC/CII Carbon Corp., 7.25%, 4/01/25

United States

1,000,000

969,580

Roller Bearing Co. of America, Inc., 4.375%, 10/15/29

United States

800,000

715,328

Trivium Packaging Finance BV, senior secured note, 5.50%, 8/15/26

Netherlands

1,600,000

1,534,736

17,693,196

Media & Entertainment 10.3%

Banijay Entertainment SASU, senior note, 5.375%, 3/01/25

France

2,100,000

2,054,986

CCO Holdings LLC/CCO Holdings Capital Corp.,

senior bond, 5.375%, 6/01/29

United States

1,300,000

1,195,129

senior bond, 4.50%, 8/15/30

United States

1,700,000

1,438,429

Clear Channel International BV, senior secured note, first lien, 6.625%, 8/01/25

United States

600,000

584,390

Clear Channel Outdoor Holdings, Inc., 7.50%, 6/01/29

United States

1,200,000

853,920

Cogent Communications Group, Inc., 3.50%, 5/01/26

United States

1,900,000

1,773,460

CSC Holdings LLC, senior note, 7.50%, 4/01/28

United States

2,500,000

1,596,000

Diamond Sports Group LLC/Diamond Sports Finance Co.,

a,b

senior note, 6.625%, 8/15/27

United States

900,000

12,375

a,b

first lien, 5.375%, 8/15/26

United States

900,000

50,625

Directv Financing LLC/Directv Financing Co.-Obligor, Inc., 5.875%, 8/15/27 .

United States

1,900,000

1,722,654

DISH DBS Corp., 5.75%, 12/01/28

United States

2,300,000

1,720,687

Everi Holdings, Inc., 5.00%, 7/15/29

United States

1,000,000

891,166

Motion Bondco DAC, 6.625%, 11/15/27

United Kingdom

300,000

277,150



franklintempleton.com	Annual Report	135

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SCHEDULE OF INVESTMENTS

Franklin High Yield Corporate ETF (continued)



		Country			Principal Amount*		Value

	Corporate Bonds & Notes (continued)
	Media & Entertainment (continued)
	Netflix, Inc.,
	senior unsecured, 6.375%, 5/15/29		United States			600,000	$	643,002
	senior bond, 5.75%, 3/01/24		United States			1,000,000		1,005,969
	senior unsecured note, 5.875%, 11/15/28		United States			1,200,000		1,264,020
a	Northwest Fiber LLC/Northwest Fiber Finance Sub, Inc., senior note, 6.00%, 2/15/28		United States			800,000		592,676
a	Sirius XM Radio, Inc., 4.00%, 7/15/28		United States			1,900,000		1,634,000
a	Univision Communications, Inc., senior note, 6.625%, 6/01/27		United States	��		900,000		854,190
a	Virgin Media Secured Finance PLC, senior secured bond, 4.50%, 8/15/30		United Kingdom			1,400,000		1,205,617

								21,370,445

	Oil & Gas 3.2%
a	Endeavor Energy Resources LP/EER Finance, Inc., 5.75%, 1/30/28		United States			2,000,000		1,986,980
	Occidental Petroleum Corp., 5.50%, 12/01/25		United States			1,400,000		1,399,679
	PBF Holding Co. LLC/PBF Finance Corp., 7.25%, 6/15/25		United States			1,800,000		1,788,858
a	Transocean Titan Financing Ltd., 8.375%, 2/01/28		United States			400,000		412,008
a	Transocean, Inc., 8.75%, 2/15/30		United States			1,000,000		1,020,900

								6,608,425

	Packaging & Containers 1.5%
	LABL, Inc., 9.50%, 11/01/28		United States			400,000		404,000
	Mauser Packaging Solutions Holding Co.,
a	9.25%, 4/15/27		United States			500,000		462,500
a	7.875%, 8/15/26		United States			1,600,000		1,601,448
a	Sealed Air Corp./Sealed Air Corp. U.S., 6.125%, 2/01/28		United States			600,000		607,320

								3,075,268

	Pharmaceuticals 1.4%
a	1375209 BC Ltd., 9.00%, 1/30/28		Canada			261,000		259,042
	Bausch Health Cos., Inc.,
a	14.00%, 10/15/30		Canada			92,000		52,252
a	11.00%, 9/30/28		Canada			465,000		344,491
a	BellRing Brands, Inc., 7.00%, 3/15/30		United States			1,100,000		1,115,257
	Teva Pharmaceutical Finance Netherlands III BV,
	7.875%, 9/15/29		Israel			500,000		523,750
	8.125%, 9/15/31		Israel			500,000		525,475

								2,820,267

	Pharmaceuticals, Biotechnology & Life Sciences 0.7%
a	Bausch Health Cos., Inc., 4.875%, 6/01/28		United States			1,000,000		590,900
a,b	Par Pharmaceutical, Inc., senior secured note, 7.50%, 4/01/27		United States			400,000		297,942
	Teva Pharmaceutical Finance Netherlands III BV, 4.75%, 5/09/27		Israel			700,000		654,274

								1,543,116

	Pipelines 1.4%
a	EnLink Midstream LLC, 6.50%, 9/01/30		United States			600,000		607,380
a	Martin Midstream Partners LP/Martin Midstream Finance Corp., 11.50%, 2/15/28		United States			2,300,000		2,204,619
a	Venture Global Calcasieu Pass LLC, 6.25%, 1/15/30		United States			100,000		100,848

								2,912,847

	Retail 0.5%
a	Evergreen Acqco 1 LP/TVI, Inc., 9.75%, 4/26/28		United States			1,000,000		951,025

	Software & Services 1.0%
a	Gartner, Inc., senior note, 4.50%, 7/01/28		United States			1,600,000		1,520,264
a	Rocket Software, Inc., senior note, 6.50%, 2/15/29		United States			800,000		630,825

								2,151,089



136	Annual Report	franklintempleton.com

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SCHEDULE OF INVESTMENTS

Franklin High Yield Corporate ETF (continued)



		Country		Principal Amount*		Value

	Corporate Bonds & Notes (continued)
	Technology Hardware & Equipment 0.3%
a	McAfee Corp., 7.375%, 2/15/30		United States		700,000	$	587,576

	Telecommunication Services 1.9%
a	Altice France Holding SA, senior note, 10.50%, 5/15/27		Luxembourg		600,000		459,540
a	Altice France SA, senior note, first lien, 8.125%, 2/01/27		France		1,000,000		926,600
a	CommScope Technologies LLC, 5.00%, 3/15/27		United States		1,500,000		1,098,600
a	Iliad Holding SASU, 6.50%, 10/15/26		France		1,600,000		1,526,271

							4,011,011

	Transportation 0.5%
a	First Student Bidco, Inc./First Transit Parent, Inc., 4.00%, 7/31/29		United States		1,200,000		1,045,259

	Utilities 4.6%
	Calpine Corp.,
a	senior note, 5.125%, 3/15/28		United States		1,000,000		916,910
a	first lien, 4.50%, 2/15/28		United States		1,200,000		1,114,582
a	Leeward Renewable Energy Operations LLC, 4.25%, 7/01/29		United States		1,800,000		1,569,963
	Talen Energy Supply LLC,
b	senior note, 6.50%, 6/01/25		United States		900,000		369,000
a,b	senior note, 7.625%, 6/01/28		United States		1,000,000		1,033,253
a	TTM Technologies, Inc., senior note, 4.00%, 3/01/29		United States		1,800,000		1,568,529
a	Vistra Operations Co. LLC, senior note, 5.50%, 9/01/26		United States		3,100,000		3,014,143

							9,586,380


	Total Corporate Bonds & Notes (Cost $205,987,297)						186,671,340


	Senior Floating Rate Interests 3.9%
	Materials 0.9%
	Hexion Holdings Corp., 2022 USD Term Loan, 9.454%, 3/15/29		United States		1,091,750		982,919
	Hexion Holdings Corporation, 2022 USD 2nd Lien Term Loan, 12.297%, 3/15/30		United States		1,186,047		992,329

							1,975,248

	Software & Services 1.4%
	Athenahealth Group, Inc.,
	2022 Term Loan B, 8.259%, 2/15/29		United States		1,507,949		1,415,587
d	2022 Delayed Draw Term Loan, TBD, 3.50%, 2/15/29		United States		184,783		173,465
	McAfee LLC, 2022 USD Term Loan, 8.515%, 3/01/29		United States		1,389,500		1,310,646

							2,899,698

	Chemicals 0.7%
	PMHC II, Inc., 2022 Term Loan B, 9.076%, 4/23/29		United States		1,691,500		1,495,481

	Media & Entertainment 0.9%
	Diamond Sports Group, LLC, 2022 First Priority Term Loan, 12.775%, 5/25/26		United States		198,816		187,633
	Fertitta Entertainment LLC, 2022 Term Loan B, 8.807%, 1/27/29		United States		1,683,000		1,660,818

							1,848,451


	Total Floating Rate Loans (Cost $8,845,189)						8,218,878


	Total Investments before Short-Term Investments (Cost $214,832,486)						194,890,218



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FRANKLIN TEMPLETON ETF TRUST

SCHEDULE OF INVESTMENTS

Franklin High Yield Corporate ETF (continued)



		Country		Principal Amount*		Value

	Short-Term Investments 3.0%
	U.S. Government & Agency Securities 3.0%
e	Federal Home Loan Bank Discount Notes, 04/03/23		United States		6,295,000	$	6,295,000


	Total Short-Term Investments (Cost $6,293,479)						6,295,000


	Total Investments (Cost $221,125,965) 96.6%						201,185,218

	Other Assets, less Liabilities 3.4%						6,982,146


	Net Assets 100.0%					$	208,167,364

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

^bSee Note 7 regarding defaulted securities.

^cFair valued using significant unobservable inputs. Note 9 regarding fair value measurements.

^dA portion or all of the security represents an unsettled loan commitment. The coupon rate is to-be determined (TBD) at the time of settlement and will be based upon a reference index/floor plus a spread.

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

See Abbreviations on page 246.



138	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,

	2023			2022			2021			2020^a

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

Net asset value, beginning of year		$46.30			$43.24			$20.67			$25.00

Income from investment operations^b:

Net investment income (loss)^c		—			(0.10	)		(0.06	)		—

Net realized and unrealized gains (losses)		(2.14	)		3.25			22.63			(4.33	)

Total from investment operations		(2.14	)		3.15			22.57			(4.33	)

Less distributions from:

Net investment income		—			—			(0.00	)^d		—

Net realized gains		—			(0.09	)		—			—

Total distributions		—			(0.09	)		—			—

Net asset value, end of year		$44.16			$46.30			$43.24			$20.67

Total return^e		(4.62)%			7.27%			109.21%			(17.32)%

Ratios to average net assets^f

Expenses before waiver and payments by affiliates		0.50%			0.77%			2.19%			12.91%

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

Net investment income (loss)		—%			(0.21)%			(0.17)%			0.20%

Supplemental data

Net assets, end of year (000’s)		$8,832			$11,574			$10,809			$2,067

Portfolio turnover rate^g		19.82%^h			35.98%^h			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 $0.005 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:			19.38%				35.98%				75.25%				—



franklintempleton.com	The accompanying notes are an integral part of these financial statements. \| Annual Report	139

FRANKLIN TEMPLETON ETF TRUST

Schedule of Investments, March 31, 2023

Franklin Intelligent Machines ETF



		Country		Shares		Value

	Common Stocks 98.6%
	Aerospace & Defense 3.2%
a	Axon Enterprise, Inc.		United States		1,240	$	278,814

	Automobiles 4.6%
a	Tesla, Inc.		United States		1,954		405,377

	Computers & Peripherals 4.6%
	Apple, Inc.		United States		2,452		404,335

	Construction & Engineering 3.0%
	Quanta Services, Inc.		United States		1,081		180,138
	Valmont Industries, Inc.		United States		271		86,525

							266,663

	Electrical Equipment 0.7%
	Eaton Corp. PLC		United States		266		45,576
a	Sunrun, Inc.		United States		987		19,888

							65,464

	Electronic Equipment, Instruments & Components 8.9%
	Amphenol Corp., Class A		United States		1,017		83,109
	Keyence Corp.		Japan		625		302,662
a	Keysight Technologies, Inc.		United States		671		108,353
	Samsung SDI Co. Ltd.		South Korea		336		189,699
	TE Connectivity Ltd.		Switzerland		300		39,345
a	Trimble, Inc.		United States		375		19,658
a	Zebra Technologies Corp., Class A		United States		126		40,068

							782,894

	Health Care Equipment & Supplies 10.6%
a	Dexcom, Inc.		United States		1,644		191,000
a	IDEXX Laboratories, Inc.		United States		312		156,025
a	Insulet Corp.		United States		578		184,359
a	Intuitive Surgical, Inc.		United States		1,428		364,811
	ResMed, Inc.		United States		186		40,732

							936,927

	Health Care Technology 1.5%
a	Inspire Medical Systems, Inc.		United States		575		134,590

	Household Durables 0.5%	��
	Panasonic Holdings Corp.		Japan		4,640		41,209

	Industrial Conglomerates 2.1%
	Honeywell International, Inc.		United States		221		42,237
	Roper Technologies, Inc.		United States		200		88,138
	Siemens AG		Germany		366		59,352

							189,727

	Semiconductors & Semiconductor Equipment 36.0%
	Analog Devices, Inc.		United States		996		196,431
	Applied Materials, Inc.		United States		1,669		205,003
	ASM International NV		Netherlands		556		224,652
	ASML Holding NV		Netherlands		631		429,528
a	Enphase Energy, Inc.		United States		937		197,032
	Entegris, Inc.		United States		1,578		129,412
a	First Solar, Inc.		United States		270		58,725
	Infineon Technologies AG		Germany		3,026		123,877
	KLA Corp.		United States		221		88,216
	Lam Research Corp.		United States		173		91,711
	Microchip Technology, Inc.		United States		611		51,190



140	Annual Report	franklintempleton.com

FRANKLIN TEMPLETON ETF TRUST

SCHEDULE OF INVESTMENTS

Franklin Intelligent Machines ETF (continued)



		Country		Shares		Value

	Common Stocks (continued)
	Semiconductors & Semiconductor Equipment (continued)
	NVIDIA Corp.		United States		2,267	$	629,705
	NXP Semiconductors NV		China		228		42,516
a	SiTime Corp.		United States		425		60,448
a	SolarEdge Technologies, Inc.		United States		236		71,732
	Taiwan Semiconductor Manufacturing Co. Ltd., ADR		Taiwan		2,837		263,898
	Teradyne, Inc.		United States		1,804		193,948
	Texas Instruments, Inc.		United States		447		83,146
a	Wolfspeed, Inc.		United States		623		40,464

							3,181,634

	Software 22.9%
a	Altair Engineering, Inc., Class A		United States		1,559		112,420
a	ANSYS, Inc.		United States		615		204,672
a	Atlassian Corp., Class A		United States		308		52,720
a	Autodesk, Inc.		United States		757		157,577
	Bentley Systems, Inc., Class B		United States		1,074		46,171
a	Cadence Design Systems, Inc.		United States		1,803		378,792
	Constellation Software, Inc.		Canada		100		187,750
	Dassault Systemes SE		France		2,037		83,821
a	Descartes Systems Group, Inc.		Canada		3,307		266,544
a	Lumine Group, Inc.		Canada		300		3,261
a	PTC, Inc.		United States		1,291		165,545
a	Synopsys, Inc.		United States		943		364,234

							2,023,507


	Total Common Stocks (Cost $7,424,171)						8,711,141


	Total Investments (Cost $7,424,171) 98.6%						8,711,141

	Other Assets, less Liabilities 1.4%						121,057


	Net Assets 100.0%					$	8,832,198

^aNon-income producing.

See Note 8 regarding other derivative information.

See Abbreviations on page 246.



franklintempleton.com	The accompanying notes are an integral part of these financial statements. \| Annual Report	141

FRANKLIN TEMPLETON ETF TRUST

Financial Highlights

Franklin International Aggregate Bond ETF^a



	Year Ended March 31,

	2023			2022			2021			2020			2019^b

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

Net asset value, beginning of year		$23.65			$25.02			$24.95			$24.56			$25.00

Income from investment operations^c:

Net investment income (loss)^d		0.19			0.05			(0.01	)		0.22			0.39

Net realized and unrealized gains (losses)		(0.77	)		(0.87	)		0.19			0.78			(0.40	)

Total from investment operations		(0.58	)		(0.82	)		0.18			1.00			(0.01	)

Less distributions from:

Net investment income		(3.48	)		(0.42	)		(0.11	)		(0.09	)		(0.43	)

Net realized gains		—			(0.13	)		—			(0.52	)		—

Total distributions		(3.48	)		(0.55	)		(0.11	)		(0.61	)		(0.43	)

Net asset value, end of year		$19.59			$23.65			$25.02			$24.95			$24.56

Total return^e		(2.38)%			(3.35)%			0.72%			4.05%			0.00%

Ratios to average net assets^f

Expenses before waiver and payments by affiliates		0.25%			0.39%			0.58%			3.23%			2.32%

Expenses net of waiver and payments by affiliates		0.25%			0.25%			0.25%			0.28%			0.35%

Net investment income (loss)		0.86%			0.21%			(0.03)%			0.87%			1.91%

Supplemental data

Net assets, end of year (000’s)		$276,164			$193,968			$181,405			$4,989			$4,912

Portfolio turnover rate^g		31.03%^h			24.12%^h			72.21%^h			66.78%^h			50.32%

^aEffective August 1, 2022, Formerly, Franklin Liberty International Aggregate Bond ETF was renamed Franklin International Aggregate Bond ETF.

^bFor the period May 30, 2018 (commencement of operations) to March 31, 2019.

^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:			31.03%				24.12%				72.21%				66.78%				—



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

FRANKLIN TEMPLETON ETF TRUST

Schedule of Investments, March 31, 2023

Franklin International Aggregate Bond ETF


		Principal Amount*			Value
	Foreign Government and Agency Securities 85.2%
	Australia 3.2%
a	Australia Government Bonds, Series 149, 149, 2.25%, 5/21/28		4,100,000	AUD	$	2,638,362
a	New South Wales Treasury Corp., Series 27, 3.00%, 5/20/27		2,000,000	AUD		1,315,744
a,b	Queensland Treasury Corp., senior bond, 3.25%, 8/21/29		3,200,000	AUD		2,096,615
a	Western Australian Treasury Corp., Series 26, 26, 3.00%, 10/21/26		4,100,000	AUD		2,708,301

						8,759,022

	Austria 4.1%
	Republic of Austria Government Bonds,
	^a,b1.20%, 10/20/25		7,600,000	EUR		7,939,669
	^a,b senior bond, 1.50%, 2/20/47		4,300,000	EUR		3,471,146

						11,410,815

	Belgium 3.1%
a,b	Kingdom of Belgium Government Bonds, Series 75, 1.00%, 6/22/31		9,200,000	EUR		8,653,887

	Canada 4.1%
	Canada Government Bonds,
	1.25%, 3/01/25		8,000,000	CAD		5,659,193
	5.00%, 6/01/37		4,600,000	CAD		4,162,158
	senior bond, 2.00%, 12/01/51		2,600,000	CAD		1,540,166

						11,361,517

	China 6.6%
	Agricultural Development Bank of China, Series 2008, Series 2008, Unsecured 3.45%, 9/23/25		13,000,000	CNY		1,924,833
	China Development Bank,
	Series 2003, 2003, 3.23%, 1/10/25		24,000,000	CNY		3,532,231
	Series 2004, 2004, 3.43%, 1/14/27		25,000,000	CNY		3,715,963
	China Government Bonds,
	Series INBK, 3.03%, 3/11/26		25,000,000	CNY		3,693,096
	Series INBK, 2.85%, 6/04/27		25,000,000	CNY		3,665,379
	Export-Import Bank of China, Series 2003, Series 2003, Unsecured 2.17%, 4/07/23		11,000,000	CNY		1,600,416

						18,131,918

	Cyprus 1.1%
a	Cyprus Government International Bonds, 1.50%, 4/16/27		3,000,000	EUR		3,018,190

	France 6.6%
	French Republic Government Bonds OAT,
	^a 2.00%, 11/25/32		11,700,000	EUR		11,823,473
	^a,c zero cpn., 11/25/29		7,000,000	EUR		6,375,539

						18,199,012

	Germany 10.0%
a,c	Bundesobligation, zero cpn., Series G, 10/10/25		7,000,000	EUR		7,139,318
a	Bundesrepublik Deutschland Bundesanleihe, senior bond, zero cpn., 8/15/26		18,000,000	EUR		18,009,409
	Kreditanstalt fuer Wiederaufbau, Senior note, 2.05%, 2/16/26		300,000,000	JPY		2,389,752

						27,538,479

	Italy 3.7%
	Italy Buoni Poliennali Del Tesoro,
	^a senior bond, 1.25%, 12/01/26		7,700,000	EUR		7,742,957
	^a,b Series CAC, 2.45%, 9/01/50		3,300,000	EUR		2,511,991

						10,254,948

	Japan 15.5%
	Development Bank of Japan, Inc., Series INTL, 2.30%, 3/19/26		1,000,000,000	JPY		8,000,507
	Japan Government Five Year Bonds, Series 142, 142, 0.10%, 12/20/24		1,600,000,000	JPY		12,090,059
	Japan Government Thirty Year Bonds, Series 65, 0.40%, 12/20/49		550,000,000	JPY		3,358,794



franklintempleton.com	Annual Report	143

FRANKLIN TEMPLETON ETF TRUST

SCHEDULE OF INVESTMENTS

Franklin International Aggregate Bond ETF (continued)


		Principal Amount*			Value
	Foreign Government and Agency Securities (continued)
	Japan (continued)
	Japan Government Twenty Year Bonds,
	senior bond, 1.50%, 3/20/33		1,100,000,000	JPY	$	9,150,312
	Series 155, 1.00%, 12/20/35		1,300,000,000	JPY		10,235,556

						42,835,228

	Mexico 1.8%
d	Mexico Bonos, Series M, senior bond, 8.00%, 11/07/47		100,000,000	MXN		4,942,564

	Netherlands 1.8%
a,b	Netherlands Government Bonds, 0.50%, 7/15/26		5,000,000	EUR		5,070,997

	Poland 3.2%
	Republic of Poland Government Bonds, Series 1029, 2.75%, 10/25/29		46,000,000	PLN		8,853,655

	Romania 1.0%
a	Romania Government International Bonds, senior bond, 2.00%, 1/28/32		3,600,000	EUR		2,761,839

	Spain 6.9%
	Spain Government Bonds,
	^c senior note, zero cpn., 1/31/25		9,200,000	EUR		9,475,915
	^a,b senior unsecured bond, 1.25%, 10/31/30		9,900,000	EUR		9,420,019

						18,895,934

e	Supranational 1.7%
	Asian Development Bank, senior bond, 339-00-1, 2.35%, 6/21/27		240,000,000	JPY		1,985,319
a	European Investment Bank, senior bond, 1.90%, 1/26/26		330,000,000	JPY		2,618,431

						4,603,750

	Sweden 3.1%
	Sweden Government Bonds,
	^a,b Series 1057, 1.50%, 11/13/23		35,000,000	SEK		3,331,676
	^a,b Series 1060, 0.75%, 5/12/28		60,000,000	SEK		5,335,762

						8,667,438

	United Kingdom 7.7%
	U.K. Gilts,
	^a4.75%, 12/07/30		8,000,000	GBP		10,785,862
	^a 1.75%, 9/07/37		8,700,000	GBP		8,335,810
	^a 3.50%, 7/22/68		1,800,000	GBP		2,146,998

						21,268,670


	Total Foreign Government and Agency Securities (Cost $260,937,879)					235,227,863


	Corporate Bonds & Notes 3.9%
	Denmark 0.0%
a	Nykredit Realkredit AS, secured bond, 1.00%, 10/01/50		1,030,596	DKK		111,121

	France 0.7%
a	Air Liquide Finance SA, senior note, 1.375%, 4/02/30		700,000	EUR		678,823
a	Orange SA, senior note, 1.375%, 3/20/28		1,200,000	EUR		1,175,885

						1,854,708

	Germany 0.4%
a	Deutsche Telekom AG, senior note, 0.875%, 3/25/26		500,000	EUR		509,135
a,c	Siemens Financieringsmaatschappij NV, senior note, zero cpn., , 2/20/26		700,000	EUR		693,694

						1,202,829

	Romania 0.2%
a	Globalworth Real Estate Investments Ltd., senior note, 3.00%, 3/29/25		500,000	EUR		472,566

	United Kingdom 0.4%
a	RELX Finance BV, senior note, 0.50%, 3/10/28		1,200,000	EUR		1,129,231



144	Annual Report	franklintempleton.com

FRANKLIN TEMPLETON ETF TRUST

SCHEDULE OF INVESTMENTS

Franklin International Aggregate Bond ETF (continued)


		Principal Amount*			Value

	Corporate Bonds & Notes (continued)
	United States 2.2%
	AbbVie, Inc., senior note, 1.375%, 5/17/24		700,000	EUR	$	741,565
	Air Products & Chemicals, Inc., senior note, 0.50%, 5/05/28		1,000,000	EUR		927,495
	Apple, Inc., senior bond, 1.625%, 11/10/26		700,000	EUR		720,987
	AT&T, Inc., senior note, 0.25%, 3/04/26		1,000,000	EUR		986,716
	Procter & Gamble Co., senior note, 0.50%, 10/25/24		700,000	EUR		727,372
a	Schlumberger Finance France SAS, senior note, 1.00%, 2/18/26		500,000	EUR		506,140
	Stryker Corp., senior note, 0.25%, 12/03/24		1,000,000	EUR		1,028,971
	Verizon Communications, Inc., senior note, 0.875%, 4/02/25		500,000	EUR		515,074

						6,154,320


	Total Corporate Bonds & Notes (Cost $9,696,974)					10,924,775


	Total Investments before Short Term Investments ($270,634,853)					246,152,638


	Short-Term Investments 5.1%
	U.S. Government & Agency Securities 5.1%
c	Federal Home Loan Bank Discount Notes, 4/03/23		14,010,000			14,010,000


	Total Short-Term Investments (Cost $14,006,614)					14,010,000


	Total Investments (Cost $284,641,467) 94.2%					260,162,638

	Other Assets, less Liabilities 5.8%					16,001,106


	Net Assets 100.0%				$	276,163,744

*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, 2023, the value of was $140,528,590, representing 50.9% 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.

At March 31, 2023 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
Mexican Peso		CITI			17,500,000	$	912,352		5/04/23		$ —		$ (52,756	)
Australian Dollar		CITI			1,600,000		1,093,488		5/11/23		19,575		—
Australian Dollar		CITI			1,500,000		1,041,468		5/11/23		34,675		—
Australian Dollar		CITI			2,100,000		1,487,327		5/11/23		77,816		—
Australian Dollar		CITI			7,290,000		5,176,374		5/11/23		283,357		—
Canadian Dollar		CITI			2,600,000		1,955,222		5/11/23		—		(32,109	)
Canadian Dollar		CITI			2,000,000		1,478,498		5/11/23		—		(819	)
Canadian Dollar		CITI			1,600,000		1,199,228		5/11/23		15,774		—
Canadian Dollar		CITI			14,420,000		10,752,969		5/11/23		87,088		—
Chinese Yuan		CITI			119,200,000		17,694,964		5/11/23		284,099		—
Danish Krone		CITI			1,141,000		168,534		5/11/23		1,611		—
Euro		CITI			9,000,000		9,583,740		5/11/23		—		(220,997	)
Euro		CITI			13,000,000		13,954,446		5/11/23		—		(207,952	)
Euro		CITI			1,484,622		1,578,316		5/11/23		—		(39,053	)
Euro		CITI			6,100,000		6,660,895		5/11/23		—		(15,462	)
Euro		CITI			14,000,000		15,386,185		5/11/23		134,372		—



franklintempleton.com	Annual Report	145

FRANKLIN TEMPLETON ETF TRUST

SCHEDULE OF INVESTMENTS

Franklin International Aggregate Bond ETF (continued)

Forward Exchange Contracts (continued)



Currency	Counterparty^a		Type	Quantity		Contract Amount		Settlement Date		Unrealized Appreciation		Unrealized Depreciation
OTC Forward Exchange Contracts (continued)
Euro		CITI			78,170,000		$85,726,999		5/11/23		$ 567,413		$ —
Great British Pound		CITI			2,100,000		2,528,749		5/11/23		—		(70,407	)
Great British Pound		CITI			1,900,000		2,291,210		5/11/23		—		(60,407	)
Great British Pound		CITI			2,400,000		2,948,678		5/11/23		—		(21,786	)
Great British Pound		CITI			10,895,968		13,506,359		5/11/23		20,491		—
Japanese Yen		CITI			550,000,000		4,108,669		5/11/23		—		(55,232	)
Japanese Yen		CITI			280,000,000		2,209,693		5/11/23		89,890		—
Japanese Yen		CITI			5,799,000,000		45,504,838		5/11/23		1,602,181		—
Mexican Peso		CITI			38,000,000		2,006,172		5/11/23		—		(86,687	)
Mexican Peso		CITI			18,600,000		970,727		5/11/23		—		(53,673	)
Mexican Peso		CITI			18,000,000		966,990		5/11/23		—		(24,364	)
Polish Zloty		CITI			12,000,000		2,662,578		5/11/23		—		(119,508	)
Polish Zloty		CITI			5,000,000		1,107,616		5/11/23		—		(51,587	)
Polish Zloty		CITI			14,050,000		3,223,771		5/11/23		—		(33,589	)
Polish Zloty		CITI			5,000,000		1,158,403		5/11/23		—		(800	)
Swedish Krona		CITI			13,000,000		1,246,740		5/11/23		—		(12,335	)
Swedish Krona		CITI			18,000,000		1,731,155		5/11/23		—		(12,180	)
Swedish Krona		CITI			12,000,000		1,164,087		5/11/23		1,864		—
Swedish Krona		CITI			44,500,000		4,373,640		5/11/23		63,729		—

Total Forward Exchange Contracts											$3,283,935		$(1,171,703	)

Net unrealized appreciation (depreciation)													$ 2,112,232

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

See Note 8 regarding other derivative information.

See Abbreviations on page 246.



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

FRANKLIN TEMPLETON ETF TRUST

Financial Highlights

Franklin Investment Grade Corporate ETF^a


	Year Ended March 31,

	2023			2022			2021			2020			2019

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

Net asset value, beginning of year		$23.71			$25.47			$24.22			$24.09			$23.97

Income from investment operations^b:

Net investment income^c		0.68			0.58			0.60			0.73			0.82

Net realized and unrealized gains (losses)		(2.22	)		(1.63	)		1.71			0.27			0.21

Total from investment operations		(1.54	)		(1.05	)		2.31			1.00			1.03

Less distributions from:

Net investment income		(0.73	)		(0.66	)		(0.83	)		(0.81	)		(0.91	)

Net realized gains		—			(0.05	)		(0.23	)		(0.06	)		—

Total distributions		(0.73	)		(0.71	)		(1.06	)		(0.87	)		(0.91	)

Net asset value, end of year		$21.44			$23.71			$25.47			$24.22			$24.09

Total return^d		(6.46)%			(4.30)%			9.43%			4.02%			4.46%

Ratios to average net assets

Expenses before waiver and payments by affiliates		0.35%			0.42%			0.50%			0.58%			1.07%

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

Net investment income		3.13%			2.27%			2.27%			2.86%			3.49%

Supplemental data

Net assets, end of year (000’s)		$644,363			$981,602			$1,018,639			$553,338			$18,065

Portfolio turnover rate^e		27.84%^f			36.76%^f			53.32%^f			52.17%^f			22.02%

^a Effective August 1, 2022, Formerly, Franklin Liberty Investment Grade Corporate ETF was renamed Franklin Investment Grade Corporate ETF.

^b The 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.

^c Based on average daily shares outstanding.

^d Total 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.

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


^fPortfolio turnover rate excluding cash creations was as follows:			27.84%				36.76%				53.32%				52.17%				—



franklintempleton.com	The accompanying notes are an integral part of these financial statements. \| Annual Report	147

FRANKLIN TEMPLETON ETF TRUST

Schedule of Investments, March 31, 2023

Franklin Investment Grade Corporate ETF



		`Country		Principal Amount*		Value
	Corporate Bonds & Notes 96.5%
	Aerospace & Defense 1.9%
	Boeing Co.,
	5.15%, 5/01/30		United States		2,000,000	$	2,013,542
	3.65%, 3/01/47		United States		4,900,000		3,581,217
	Lockheed Martin Corp.,
	senior note, 4.07%, 12/15/42		United States		3,300,000		3,034,800
	4.15%, 6/15/53		United States		3,800,000		3,459,405

							12,088,964

	Agriculture 1.6%
a	Cargill, Inc., 2.125%, 11/10/31		United States		3,800,000		3,157,459
a	JT International Financial Services BV, 6.875%, 10/24/32		Japan		6,375,000		7,043,384

							10,200,843

	Air Freight & Logistics 0.8%
	FedEx Corp., senior bond, 4.75%, 11/15/45		United States		5,500,000		4,973,863


	Airlines 1.9%
a	Delta Air Lines, Inc./SkyMiles IP Ltd., first lien, 4.50%, 10/20/25		United States		7,608,419		7,485,455
	United Airlines 2016-1 Class A Pass Through Trust, Series A, 3.45%, 1/07/30		United States		2,626,223		2,282,836
	United Airlines 2020-1 Class B Pass Through Trust, 2020-1 Class B, 4.875%, 7/15/27		United States		2,428,790		2,350,479

							12,118,770

	Banks 21.7%
a	Banco de Chile, 2.99%, 12/09/31		Chile		1,800,000		1,477,857
	Banco Santander SA, sub. note, 2.749%, 12/03/30		Spain		5,700,000		4,452,693
	Bancolombia SA, senior note, 3.00%, 1/29/25		Colombia		5,000,000		4,708,314
	Bank of America Corp.,
	2.592% to 4/29/30, FRN thereafter, 4/29/31		United States		4,000,000		3,389,799
	Series L, 4.183%, 11/25/27		United States		9,100,000		8,801,780
	4.571% to 4/27/32, FRN thereafter, 4/27/33		United States		5,250,000		5,001,390
a	BNP Paribas SA, senior note, 4.705% to 1/10/24, FRN thereafter, 1/10/25		France		6,600,000		6,527,057
a	BPCE SA, senior note, 5.70%, 10/22/23		France		7,600,000		7,543,134
	Citigroup, Inc.,
	senior bond, 3.668% to 7/24/27, FRN thereafter, 7/24/28		United States		5,200,000		4,930,237
	3.057% to 1/25/32, FRN thereafter, 1/25/33		United States		5,200,000		4,404,383
a	Credit Agricole SA, 4.375%, 3/17/25		France		3,800,000		3,652,877
	Deutsche Bank AG,
	senior note, 2.129% to 11/24/25, FRN thereafter, 11/24/26		Germany		3,300,000		2,846,647
	0.898%, 5/28/24		Germany		3,500,000		3,287,389
	Fifth Third Bancorp, 4.772% to 7/28/29, FRN thereafter, 7/28/30		United States		4,135,000		3,828,091
	Goldman Sachs Group, Inc.,
	Series V, 4.125% to 12/31/99, FRN thereafter, 12/31/99		United States		2,000,000		1,660,013
	2.64% to 2/24/27, FRN thereafter, 2/24/28		United States		9,700,000		8,857,003
	4.387% to 6/15/26, FRN thereafter, 6/15/27		United States		1,400,000		1,368,964
	HSBC Holdings PLC, senior note, 1.645% to 4/18/25, FRN thereafter, 4/18/26		United Kingdom		4,700,000		4,295,706
	JPMorgan Chase & Co.,
	2.522% to 4/22/30, FRN thereafter, 4/22/31		United States		5,500,000		4,705,100
	sub. bond, 4.25%, 10/01/27		United States		6,000,000		5,907,906
	2.963% to 1/25/32, FRN thereafter, 1/25/33		United States		4,550,000		3,894,231
	4.851% to 7/25/27, FRN thereafter, 7/25/28		United States		4,200,000		4,195,998
	KeyBank NA, 4.15%, 8/08/25		United States		2,000,000		1,892,720
	Morgan Stanley,
	0.791% to 1/22/24, FRN thereafter, 1/22/25		United States		3,300,000		3,175,642
	0.731% to 4/05/23, FRN thereafter, 4/05/24		United States		4,000,000		3,998,846



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SCHEDULE OF INVESTMENTS

Franklin Investment Grade Corporate ETF (continued)



		Country		Principal Amount*		Value
	Corporate Bonds & Notes (continued)
	Banks (continued)
a	National Australia Bank Ltd., sub. note, 2.332%, 8/21/30		Australia		9,500,000	$	7,424,967
a	Standard Chartered PLC, senior note, 1.456% to 1/14/27, FRN thereafter, 1/14/27		United Kingdom		4,700,000		4,132,921
	Truist Bank, sub. note, 3.30%, 5/15/26		United States		3,300,000		3,042,165
	Truist Financial Corp., sub. bond, 3.875%, 3/19/29		United States		5,400,000		4,860,852
a	UniCredit SpA, 1.982% to 6/03/27, FRN thereafter, 6/03/27		Italy		4,000,000		3,495,028
	Wells Fargo & Co., 4.808% to 7/25/27, FRN thereafter, 7/25/28		United States		8,300,000		8,202,690

							139,962,400

	Beverages 2.2%
	Anheuser-Busch Cos. LLC/Anheuser-Busch InBev Worldwide, Inc., 4.90%, 2/01/46		United States		3,500,000		3,424,903
	Anheuser-Busch InBev Worldwide, Inc., senior bond, 5.80%, 1/23/59		Belgium		3,500,000		3,848,192
	PepsiCo, Inc., 1.625%, 5/01/30		United States		8,500,000		7,197,538

							14,470,633

	Biotechnology 3.9%
	Amgen, Inc., 5.60%, 3/02/43		United States		9,000,000		9,279,416
	Bio-Rad Laboratories, Inc., 3.30%, 3/15/27		United States		5,250,000		4,955,175
a	CSL Finance PLC, 4.25%, 4/27/32		Australia		5,400,000		5,236,398
	Illumina, Inc., 5.80%, 12/12/25		United States		5,300,000		5,352,958

							24,823,947

	Capital Markets 1.4%
	Brixmor Operating Partnership LP, senior bond, 4.125%, 5/15/29		United States		2,400,000		2,200,817
a	Credit Suisse Group AG, senior bond, 3.869% to 1/12/28, FRN thereafter, 1/12/29		Switzerland		2,600,000		2,321,286
	Morgan Stanley, 1.794% to 2/13/31, FRN thereafter, 2/13/32		United States		5,900,000		4,635,524

							9,157,627

	Chemicals 1.6%
	Celanese U.S. Holdings LLC, 5.90%, 7/05/24		United States		4,700,000		4,703,898
	DuPont de Nemours, Inc., 5.419%, 11/15/48		United States		5,400,000		5,412,757

							10,116,655

	Diversified REITs 2.1%
	Essex Portfolio LP, senior bond, 2.65%, 3/15/32		United States		9,000,000		7,351,443
a	Global Net Lease, Inc./Global Net Lease Operating Partnership LP, senior note, 3.75%, 12/15/27		United States		2,200,000		1,742,979
	Simon Property Group LP, senior note, 3.375%, 12/01/27		United States		5,000,000		4,670,887

							13,765,309

	Diversified Telecommunication Services 1.7%
	Verizon Communications, Inc., senior bond, 3.40%, 3/22/41		United States		14,000,000		11,144,379

	Electric 4.4%
	Baltimore Gas & Electric Co., 4.55%, 6/01/52		United States		2,400,000		2,191,623
	DTE Electric Co., Series B, 3.65%, 3/01/52		United States		7,500,000		5,983,576
	NextEra Energy Capital Holdings, Inc., 6.051%, 3/01/25		United States		4,200,000		4,274,845
	PacifiCorp, 5.35%, 12/01/53		United States		6,800,000		6,974,166
	Public Service Enterprise Group, Inc., 2.45%, 11/15/31		United States		7,100,000		5,882,574
	Virginia Electric & Power Co., Series D, 4.65%, 8/15/43		United States		3,050,000		2,774,260

							28,081,044

	Electric Utilities 6.9%
a	Comision Federal de Electricidad, 3.348%, 2/09/31		Mexico		1,100,000		873,434
	Commonwealth Edison Co., first mortgage, Secured, 4.00%, 3/01/48		United States		3,200,000		2,727,132
	Duke Energy Progress LLC, senior bond, 2.50%, 8/15/50		United States		6,200,000		3,898,931
a	EDP Finance BV, 1.71%, 1/24/28		Netherlands		4,200,000		3,578,397



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SCHEDULE OF INVESTMENTS

Franklin Investment Grade Corporate ETF (continued)



		Country		Principal Amount*		Value
	Corporate Bonds & Notes (continued)
	Electric Utilities (continued)
a	Enel Finance International NV, senior note, 3.625%, 5/25/27		Italy		5,300,000	$	5,032,066
	Exelon Corp., 4.05%, 4/15/30		United States		6,200,000		5,922,426
	Georgia Power Co.,
	Series 2010-C, 4.75%, 9/01/40		United States		6,000,000		5,529,329
	senior bond, 4.30%, 3/15/42		United States		2,445,000		2,160,301
	Public Service Electric & Gas Co., First Mortgage, 3.15%, 1/01/50		United States		3,000,000		2,244,175
	Virginia Electric & Power Co., Series A, 3.50%, 3/15/27		United States		5,200,000		4,998,465
a	Vistra Operations Co. LLC, senior secured note, first lien, 3.55%, 7/15/24		United States		8,100,000		7,824,644

							44,789,300

	Electronic Equipment, Instruments & Components 1.1%
	Flex Ltd., senior note, 3.75%, 2/01/26		Singapore		3,800,000		3,651,118
	Teledyne FLIR LLC, 2.50%, 8/01/30		United States		4,000,000		3,368,656

							7,019,774

	Energy Equipment & Services 1.3%
	Baker Hughes Holdings LLC/Baker Hughes Co.-Obligor, Inc., senior bond, 4.08%, 12/15/47		United States		1,000,000		813,990
	Kinder Morgan, Inc., 2.00%, 2/15/31		United States		4,400,000		3,554,942
a	Schlumberger Holdings Corp., senior bond, 4.30%, 5/01/29		United States		4,000,000		3,916,217

							8,285,149

	Entertainment 0.2%
a	Warnermedia Holdings, Inc., 5.05%, 3/15/42		United States		1,400,000		1,172,274


	Environmental Control 0.6%
	Republic Services, Inc., 5.00%, 4/01/34		United States		4,000,000		4,077,893


	Financial Services 4.7%
	AerCap Ireland Capital DAC/AerCap Global Aviation Trust, 3.00%, 10/29/28		Ireland		5,000,000		4,368,753
	Air Lease Corp., 0.80%, 8/18/24		United States		5,000,000		4,666,068
	American Express Co., 2.25%, 3/04/25		United States		5,000,000		4,765,826
	Aon Global Ltd., 4.60%, 6/14/44		Ireland		8,000,000		7,142,224
	Capital One Financial Corp., 4.985% to 7/24/25, FRN thereafter, 7/24/26		United States		3,300,000		3,183,742
	Mastercard, Inc., 4.85%, 3/09/33		United States		5,650,000		5,870,496

							29,997,109

	Food 2.9%
	General Mills, Inc., 5.241%, 11/18/25		United States		3,000,000		3,009,563
	JBS USA LUX SA/JBS USA Food Co./JBS USA Finance, Inc.,
	^a3.625%, 1/15/32		United States		1,800,000		1,493,496
	^a2.50%, 1/15/27		United States		3,500,000		3,112,253
	Kraft Heinz Foods Co., 5.00%, 6/04/42		United States		5,200,000		4,991,758
a	Nestle Holdings, Inc., 4.70%, 1/15/53		United States		4,000,000		4,045,682
	Sysco Corp., 3.30%, 7/15/26		United States		2,000,000		1,922,269

							18,575,021

	Gas 0.4%
	Piedmont Natural Gas Co., Inc., 5.05%, 5/15/52		United States		3,000,000		2,791,441


	Ground Transportation 1.0%
	Burlington Northern Santa Fe LLC, Sr. Unsecured, 5.75%, 5/01/40		United States		6,000,000		6,467,970


	Health Care Providers & Services 3.9%
	CVS Health Corp., senior bond, 5.30%, 12/05/43		United States		3,000,000		2,955,762
	Elevance Health, Inc., 4.10%, 5/15/32		United States		8,100,000		7,752,421
	HCA, Inc., senior secured bond, first lien, 4.50%, 2/15/27		United States		5,800,000		5,668,436
	STERIS Irish FinCo UnLtd Co., 3.75%, 3/15/51		Ireland		3,300,000		2,432,535
	UnitedHealth Group, Inc., 3.05%, 5/15/41		United States		8,000,000		6,313,910

							25,123,064



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SCHEDULE OF INVESTMENTS

Franklin Investment Grade Corporate ETF (continued)



		Country		Principal Amount*		Value
	Corporate Bonds & Notes (continued)
	Healthcare-Products 0.8%
a	GE HealthCare Technologies, Inc., 5.55%, 11/15/24		United States		5,400,000	$	5,434,673


	Home Builders 0.3%
	MDC Holdings, Inc., 2.50%, 1/15/31		United States		2,300,000		1,790,949


	Hotels, Restaurants & Leisure 0.5%
	Las Vegas Sands Corp., Senior unsecured, 3.90%, 8/08/29		United States		2,300,000		2,078,349
	Marriott International, Inc., Series R, 3.125%, 6/15/26		United States		1,000,000		945,380

							3,023,729

	Household Products 1.6%
	Haleon U.S. Capital LLC, 3.375%, 3/24/27		United States		5,800,000		5,503,187
a	Kimberly-Clark de Mexico SAB de CV, senior bond, 2.431%, 7/01/31		Mexico		5,900,000		4,910,065

							10,413,252

	Insurance 3.5%
	Aflac, Inc., senior bond, 4.75%, 1/15/49		United States		5,500,000		5,153,627
	Allstate Corp., senior bond, 4.20%, 12/15/46		United States		4,800,000		4,053,507
	Berkshire Hathaway Finance Corp., 3.85%, 3/15/52		United States		1,500,000		1,258,831
	Brown & Brown, Inc., 2.375%, 3/15/31		United States		4,000,000		3,200,458
a	MassMutual Global Funding II, 5.05%, 12/07/27		United States		6,000,000		6,078,674
	MetLife, Inc., junior sub. bond, 6.40%, 12/15/66		United States		3,000,000		2,906,715

							22,651,812

	Interactive Media & Services 0.2%
a	Tencent Holdings Ltd., senior note, 3.595%, 1/19/28		China		1,500,000		1,417,228


	Internet 1.1%
	Amazon.com, Inc., 3.95%, 4/13/52		United States		6,000,000		5,331,864
	Meta Platforms, Inc., 4.45%, 8/15/52		United States		2,200,000		1,937,948

							7,269,812

	IT Services 0.8%
	Apple, Inc., 2.80%, 2/08/61		United States		7,500,000		5,112,648

	Lodging 0.7%
	Las Vegas Sands Corp., 3.20%, 8/08/24		United States		4,500,000		4,356,258


	Media 2.4%
	Charter Communications Operating LLC/Charter Communications Operating Capital,
	2.80%, 4/01/31		United States		5,600,000		4,510,566
	3.50%, 3/01/42		United States		3,000,000		2,029,480
	Comcast Corp.,
	senior bond, 4.95%, 10/15/58		United States		5,000,000		4,849,180
	5.25%, 11/07/25		United States		3,000,000		3,066,889
	Fox Corp., senior bond, 5.476%, 1/25/39		United States		900,000		862,818

							15,318,933

	Miscellaneous Manufacturing 0.2%
	Parker-Hannifin Corp., 4.25%, 9/15/27		United States		1,400,000		1,374,705


	Multi-Utilities 0.2%
	Berkshire Hathaway Energy Co., Sr. Unsecured, 5.15%, 11/15/43		United States		1,000,000		983,022


	Oil & Gas 1.4%
	Exxon Mobil Corp., 3.452%, 4/15/51		United States		5,000,000		3,988,277
a	Var Energi ASA, 7.50%, 1/15/28		Norway		5,000,000		5,186,240

							9,174,517



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SCHEDULE OF INVESTMENTS

Franklin Investment Grade Corporate ETF (continued)



		Country		Principal Amount*		Value
	Corporate Bonds & Notes (continued)
	Oil, Gas & Consumable Fuels 2.9%
	Aker BP ASA,
	^a senior note, 3.75%, 1/15/30		Norway		2,300,000	$	2,078,714
	^asenior bond, 4.00%, 1/15/31		Norway		2,200,000		1,999,543
	Canadian Natural Resources Ltd., 3.85%, 6/01/27		Canada		4,125,000		3,953,689
	Chevron Corp., senior bond, 3.078%, 5/11/50		United States		1,000,000		758,418
	Exxon Mobil Corp., senior bond, 3.567%, 3/06/45		United States		4,200,000		3,489,290
	Sabine Pass Liquefaction LLC, first lien, 4.20%, 3/15/28		United States		5,700,000		5,479,827
	TransCanada PipeLines Ltd., senior note, 6.10%, 6/01/40		Canada		1,200,000		1,240,495

							18,999,976

	Personal Products 1.3%
	Kenvue, Inc., 4.90%, 3/22/33		United States		8,000,000		8,268,695


	Pharmaceuticals 1.7%
	Bristol-Myers Squibb Co.,
	4.125%, 6/15/39		United States		3,500,000		3,263,178
	senior bond, 5.00%, 8/15/45		United States		2,400,000		2,447,680
	3.70%, 3/15/52		United States		2,300,000		1,924,259
	CVS Health Corp., 5.00%, 2/20/26		United States		3,000,000		3,035,235

							10,670,352

	Pipelines 1.4%
	Eastern Gas Transmission & Storage, Inc., 3.90%, 11/15/49		United States		2,600,000		1,975,009
	Energy Transfer LP,
	5.15%, 3/15/45		United States		1,700,000		1,482,916
	4.90%, 3/15/35		United States		1,200,000		1,122,248
	Enterprise Products Operating LLC, 5.35%, 1/31/33		United States		1,600,000		1,659,040
	MPLX LP, 5.00%, 3/01/33		United States		3,000,000		2,937,272

							9,176,485

	Real Estate Management & Development 0.8%
	Alexandria Real Estate Equities, Inc., 2.95%, 3/15/34		United States		4,000,000		3,205,128
	ERP Operating LP, senior bond, 4.50%, 7/01/44		United States		2,500,000		2,195,889

							5,401,017

	Retail 1.1%
	Home Depot, Inc., 3.625%, 4/15/52		United States		4,100,000		3,305,198
	Target Corp., 2.95%, 1/15/52		United States		5,000,000		3,620,594

							6,925,792

	Shipbuilding 0.7%
	Huntington Ingalls Industries, Inc., 0.67%, 8/16/23		United States		4,300,000		4,228,951


	Software 2.3%
	Fiserv, Inc., 5.60%, 3/02/33		United States		3,400,000		3,528,106
	Microsoft Corp., senior bond, 2.675%, 6/01/60		United States		7,600,000		5,254,774
	Salesforce, Inc., 1.95%, 7/15/31		United States		2,300,000		1,927,198
	ServiceNow, Inc., 1.40%, 9/01/30		United States		5,200,000		4,191,381

							14,901,459

	Telecommunications 1.5%
	AT&T, Inc., 3.50%, 6/01/41		United States		1,900,000		1,501,112
	T-Mobile USA, Inc., 2.875%, 2/15/31		United States		9,600,000		8,291,603

							9,792,715

	Trucking & Leasing 0.3%
a	SMBC Aviation Capital Finance DAC, 1.90%, 10/15/26		Ireland		2,000,000		1,756,358



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SCHEDULE OF INVESTMENTS

Franklin Investment Grade Corporate ETF (continued)

Country

Principal Amount*

Value

Corporate Bonds & Notes (continued)

Wireless Telecommunication Services 0.6%

Sprint Spectrum Co. LLC/Sprint Spectrum Co. II LLC/Sprint Spectrum Co. III LLC, senior secured bond, first lien, 5.152%, 9/20/29

United States

3,900,000

3,877,061

Total Corporate Bonds & Notes (Cost $692,760,134)

621,523,828

U.S. Government & Agency Securities 0.3%

U.S. Treasury Note, 0.125%, 10/15/23

United States

2,000,000

1,951,379

Total U.S. Government & Agency Securities
(Cost $1,993,555)

1,951,379

Total Investments before Short-Term Investments
(Cost $694,753,689)

623,475,207

Short-Term Investments 1.6%

U.S. Government & Agency Securities 1.6%

Federal Home Loan Bank Discount Notes, 04/3/23

United States

10,670,000

Total Short-Term Investments (Cost $10,667,421)

10,670,000

Total Investments (Cost $705,421,110) 98.4%

634,145,207

Other Assets, less Liabilities 1.6%

10,217,382

Net Assets 100.0%

644,362,589

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

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

At March 31, 2023, the Fund had the following futures contracts outstanding. See Note 1(c).

Futures Contracts



Description	Type		Number of Contracts		Notional Amount*		Expiration Date		Value/Unrealized Appreciation (Depreciation)
Interest rate contracts
U.S. Treasury 10 Yr. Note		Short		79		$9,078,828		6/21/23		$(293,894	)
U.S. Treasury Ultra 10 Yr. (CBT)		Short		44		5,330,188		6/21/23		(198,406	)

Total Futures Contracts										$(492,300	)

*As of year end.

See Note 8 regarding other derivative information.

See Abbreviations on page 246.



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FRANKLIN TEMPLETON ETF TRUST

Financial Highlights

Franklin Municipal Green Bond ETF^a


	Year Ended March 31,

	2023			2022			2021			2020			2019

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

Net asset value, beginning of year		$24.99			$26.86			$26.07			$25.20			$24.34

Income from investment operations^b:

Net investment income^c		0.61			0.36			0.40			0.46			0.67

Net realized and unrealized gains (losses)		(1.05	)		(1.79	)		0.94			1.02			0.85

Total from investment operations		(0.44	)		(1.43	)		1.34			1.48			1.52

Less distributions from net investment income		(0.65	)		(0.44	)		(0.55	)		(0.61	)		(0.66	)

Net asset value, end of year		$23.90			$24.99			$26.86			$26.07			$25.20

Total return^d		(1.68)%			(5.44)%			5.16%			5.92%			6.38%

Ratios to average net assets

Expenses before waiver and payments by affiliates		0.60%			0.66%			0.78%			1.00%			2.05%

Expenses net of waiver and payments by affiliates		0.30%			0.30%			0.30%			0.30%			0.30%

Net investment income		2.57%			1.34%			1.50%			1.77%			2.74%

Supplemental data

Net assets, end of year (000’s)		$112,349			$104,939			$126,221			$28,674			$8,820

Portfolio turnover rate^e		66.77%^f			48.41%^f			11.86%^f			17.21%^f			21.21%

^aEffective August 1, 2022, Formerly, Franklin Liberty Federal Tax-Free Bond ETF was renamed Franklin Municipal Green Bond ETF.

^cBased on average daily shares outstanding.

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


^fPortfolio turnover rate excluding cash creations was as follows:			66.77%				48.41%				11.86%				17.21%				—



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

FRANKLIN TEMPLETON ETF TRUST

Schedule of Investments, March 31, 2023

Franklin Municipal Green Bond ETF



		Principal Amount*		Value
	Municipal Bonds 99.1%
	Alabama 0.3%
a	County of Mobile, Gomesa Projects, 4.00%, 11/01/45		400,000	$	347,202


	Arizona 0.6%
	Arizona State University, Series B, 5.00%, 7/01/42		235,000		246,034
	City of Phoenix Civic Improvement Corp., 5.00%, 7/01/44		360,000		396,577

					642,611

	Arkansas 0.4%
	Central Arkansas Water, 4.00%, 10/01/33		375,000		392,663


	California 29.1%
	Alameda Community Facilities District, 5.00%, 9/01/48		1,000,000		986,942
	California Community Choice Financing Authority,
	^b5.00%, 7/01/53		3,500,000		3,681,286
	^b5.00%, 12/01/53		2,500,000		2,613,635
	^b5.25%, 1/01/54		2,000,000		2,048,215
	^bGreen Bond, VRDN, 4.00%, 10/01/52		500,000		498,973
	California Housing Finance Agency, Lakeside Drive Senior Housing LP, Series 2019, 2.35%, 12/01/35		94,865		84,464
	California Infrastructure & Economic Development Bank,
	4.00%, 5/01/51		1,000,000		925,195
	5.00%, 8/01/49		180,000		193,186
	California Science Center Foundation, 4.00%, 5/01/46		790,000		748,275
	^bFRN thereafter, 4.32%, 8/01/47		3,100,000		3,065,206
	California Municipal Finance Authority, 4.00%, 5/15/39		3,445,000		3,442,451
a	California School Finance Authority, 5.75%, 7/01/42		250,000		247,966
	California State Public Works Board,
	4.00%, 5/01/40		1,000,000		1,021,860
	4.00%, 5/01/47		1,500,000		1,488,323
	California Air Resources Board, Series 2022D, 4.00%, 5/01/44		1,000,000		998,758
	City of Foster City, 4.00%, 8/01/32		135,000		143,537
	City of Los Angeles Department of Airports Customer Facility Charge Revenue, Department of Airports Customer Facility Charge Revenue, 4.058%, 5/15/37		1,000,000		898,294
	City of San Francisco Public Utilities Commission Water Revenue, Series A, 4.00%, 11/01/50		100,000		100,019
	Los Angeles County Metropolitan Transportation Authority Sales Tax Revenue, 5.00%, 7/01/44 .		150,000		162,218
	Peninsula Corridor Joint Powers Board, Series 2022A, 5.00%, 6/01/38		1,000,000		1,147,909
	Perris Joint Powers Authority, Refunding, Series 2017B, 5.00%, 9/01/37		100,000		104,196
	Port of Los Angeles, 5.00%, 8/01/25		95,000		99,531
	San Diego Association of Governments, Green Bond, 5.00%, 11/15/24		2,000,000		2,030,891
	San Diego County Regional Airport Authority, 5.00%, 7/01/51		2,000,000		2,087,128
	San Francisco Bay Area Rapid Transit District,
	3.00%, 8/01/36		170,000		163,780
	4.25%, 8/01/52		1,000,000		1,024,538
	Santa Cruz County Capital Financing Authority, 4.00%, 6/01/42		1,500,000		1,512,720
	Southern California Public Power Authority, 4.00%, 7/01/38		150,000		153,285
	Three Rivers Levee Improvement Authority,
	4.00%, 9/01/32		100,000		101,121
	Community Facilities District No 2006-1, Refunding, 4.00%, 9/01/27		250,000		255,021
	Refunding, 4.00%, 9/01/29		250,000		256,769
	Refunding, 4.00%, 9/01/31		200,000		203,365
	Transbay Joint Powers Authority,
	5.00%, 10/01/34		150,000		163,509
	Redevelopment Project Green Bond Subordinate Tax, 2.40%, 10/01/49		95,000		90,773

					32,743,339

	Colorado 1.9%
	Board of Water Commissioners City & County of Denver, Series A, 5.00%, 9/15/47		150,000		161,088
b	City & County of Denver, 3.70%, 12/01/31		300,000		300,000



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Franklin Municipal Green Bond ETF (continued)



		Principal Amount*		Value
	Municipal Bonds (continued)
	Colorado (continued)
	University of Colorado,
	5.00%, 6/01/27		150,000	$	166,107
	^bRefunding, VRDN, 2.00%, 6/01/51		1,500,000		1,462,282

					2,089,477

	Connecticut 0.8%
	Connecticut State Health & Educational Facilities Authority, 4.00%, 7/01/31		145,000		161,637
	Hartford County Metropolitan District Clean Water Project Revenue, Clean Water Project Revenue, Refunding, Series 2021A, 4.00%, 2/01/39		745,000		760,654

					922,291

	District of Columbia 3.4%
	District of Columbia,
	5.50%, 8/31/33		155,000		172,282
	5.50%, 2/28/37		845,000		899,978
	District of Columbia Water & Sewer Authority,
	Series A, 5.00%, 10/01/44		340,000		369,916
	Sub Series 2019A, 4.00%, 10/01/49		1,515,000		1,490,683
	Sub Series 2022B, 5.00%, 10/01/34		715,000		859,749

					3,792,608

	Florida 1.3%
	Babcock Ranch Community Independent Special District, 4.00%, 5/01/40		840,000		751,398
	City of Tampa, 5.00%, 5/01/36		135,000		148,921
	County of Palm Beach Water & Sewer Revenue, 4.00%, 10/01/31		100,000		108,961
	Somerset Community Development District,
	4.00%, 5/01/32		415,000		391,539
	4.20%, 5/01/37		50,000		45,659

					1,446,478

	Georgia 1.7%
b	Athens-Clarke County Unified Government Development Authority, University of Georgia Athletic Association, Inc., Series 2005B, Daily, VRDN, 3.75%, 7/01/35		500,000		500,000
	Cobb County Kennestone Hospital Authority, WellStar Health System Obligated Group, 3.00%, 4/01/37		910,000		815,825
b	Main Street Natural Gas, Inc., Series 2018B, Monthly, VRDN, 3.874%, 4/01/48		425,000		425,442
	Private Colleges & Universities Authority, 5.00%, 9/01/48		100,000		108,291

					1,849,558

	Illinois 3.6%
	Illinois Finance Authority,
	4.00%, 7/01/37		425,000		442,508
	State of Illinois Water Revolving Fund - Clean Water Program, 4.00%, 7/01/38		1,435,000		1,483,566
	Metropolitan Water Reclamation District of Greater Chicago, Green Bond, Series 2021B, 5.00%, 12/01/33		1,685,000		1,974,779
a	Upper Illinois River Valley Development Authority, Refunding, 3.50%, 12/01/32		149,011		129,497

					4,030,350

	Indiana 1.0%
	Indianapolis Local Public Improvement Bond Bank,
	5.00%, 1/15/27		610,000		668,353
	5.00%, 7/15/27		450,000		498,550

					1,166,903

	Kentucky 0.4%
b	City of Berea, 3.84%, 6/01/32		500,000		500,000



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SCHEDULE OF INVESTMENTS

Franklin Municipal Green Bond ETF (continued)



		Principal Amount*		Value
	Municipal Bonds (continued)
	Louisiana 3.0%
	Louisiana Local Government Environmental Facilities & Community Development Authority,
	^a3.90%, 11/01/44		480,000	$	410,771
	^a4.50%, 11/01/47		1,000,000		925,678
	^aParish of St Bernard LA, 4.00%, 11/01/45		1,000,000		868,004
	Terrebonne Levee & Conservation District Sales Tax Revenue,
	Series 2020B, 4.00%, 6/01/39		1,000,000		1,004,901
	Series B, 4.00%, 6/01/40		100,000		99,998

					3,309,352

	Maine 0.2%
	City of Portland General Airport Revenue, 4.00%, 1/01/35		245,000		250,290


	Maryland 5.0%
	Maryland Community Development Administration, Series 2021C, 0.375%, 7/01/23		500,000		496,883
	Maryland Economic Development Corp., 5.25%, 6/30/47		2,000,000		2,041,490
	Maryland Health & Higher Educational Facilities Authority, Adventist Healthcare Obligated Group, Refunding, 4.00%, 1/01/30		365,000		372,963
b	Montgomery County Housing Opportunities Commission, 3.65%, 1/01/63		2,650,000		2,650,000
	Washington Suburban Sanitary Commission, 3.00%, 6/01/35		100,000		97,220

					5,658,556

	Massachusetts 2.4%
	Massachusetts Development Finance Agency,
	4.00%, 7/01/47		135,000		121,149
	Springfield College, Green Bond, 5.00%, 6/01/26		420,000		436,260
	Springfield College, Green Bond, 5.00%, 6/01/27		440,000		461,180
	Massachusetts Housing Finance Agency,
	Series C-1, 2.65%, 12/01/34		100,000		90,882
	Sustainability Bond, Series 2021B-1, 2.60%, 12/01/41		2,000,000		1,538,054

					2,647,525

	Michigan 0.1%
b	Green Lake Township Economic Development Corp., Interlochen Center for the Arts, VRDN, 3.65%, 6/01/34		100,000		100,000


	Minnesota 1.5%
	City of Minneapolis, 3.00%, 12/01/40		100,000		89,007
	Minnesota Higher Education Facilities Authority, Series A, 5.00%, 10/01/52		1,500,000		1,577,645

					1,666,652

	Mississippi 0.6%
a	Mississippi Development Bank, County of Jackson Project, 3.625%, 11/01/36		500,000		449,292
a	Mississippi Home Corp., Patriot Services Group Obligated Group, 5.20%, 6/01/36		280,000		231,020

					680,312

	New Jersey 3.6%
	City of Newark Mass Transit Access Tax Revenue, 6.00%, 11/15/62		1,000,000		1,141,793
	New Jersey Educational Facilities Authority, Series A, 5.00%, 7/01/32		645,000		707,828
b	New Jersey Health Care Facilities Financing Authority, 2.95%, 7/01/43		500,000		500,000
	Newark Board of Education,
	5.00%, 7/15/30		620,000		707,526
	5.00%, 7/15/31		575,000		665,069
	Sustainability Bonds, 5.00%, 7/15/25		250,000		262,795

					3,985,011



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Franklin Municipal Green Bond ETF (continued)



		Principal Amount*		Value
	Municipal Bonds (continued)
	New Mexico 0.2%
	City of Santa Fe Wastewater Utility System Revenue,
	5.00%, 6/01/29		100,000	$	112,809
	Wastewater Utility System Revenue, 4.00%, 6/01/35		100,000		105,091

					217,900

	New York 9.1%
	Battery Park City Authority, 5.00%, 11/01/49		100,000		108,740
	Metropolitan Transportation Authority,
	Climate Bond Certified, 5.00%, 11/15/32		605,000		669,879
	Green Bond, Series 2021A-1, 4.00%, 11/15/45		2,000,000		1,861,162
	Refunding, Series 2017B, 5.00%, 11/15/28		430,000		465,622
	Series A-1-GROUP 1, 4.00%, 11/15/41		600,000		591,000
	Series B, 5.00%, 11/15/24		150,000		154,334
	Series B-2, 4.00%, 11/15/32		215,000		224,883
	New York Liberty Development Corp.,
	7 World Trade Center II LLC, Refunding , Sereis 2022A1, 3.00%, 9/15/43		1,000,000		831,139
	Green Bonds- 4 World Trade, Refunding, 2.50%, 11/15/36		2,000,000		1,638,098
	New York Power Authority, 5.00%, 11/15/29		1,250,000		1,466,946
	New York State Dormitory Authority, 5.00%, 7/01/35		100,000		124,897
	New York State Housing Finance Agency,
	Series N, 2.60%, 11/01/34		100,000		89,237
	Series P, 2.00%, 5/01/28		100,000		94,451
	^bSustainability Bonds, Series 2022A, VRDN, 2.50%, 11/01/60		1,500,000		1,454,046
b	Triborough Bridge & Tunnel Authority, Refunding, Series 2001C, Daily, VRDN, 3.62%, 1/01/32		500,000		500,000

					10,274,434

	North Carolina 0.2%
b	Charlotte-Mecklenburg Hospital Authority, 3.65%, 1/15/38		200,000		200,000


	Ohio 5.4%
	American Municipal Power, Inc.,
	4.00%, 2/15/41		1,380,000		1,346,364
	5.00%, 2/15/44		1,660,000		1,745,549
	Ohio State University, 4.00%, 12/01/39		2,730,000		2,803,145
	State of Ohio,
	Series A, 4.00%, 3/01/30		100,000		110,428
	Series B, 4.00%, 3/01/24		50,000		50,664

					6,056,150

	Oregon 2.9%
	Hospital Facilities Authority of Multnomah County Oregon, Terwilliger Plaza Inc Obligated Group, Refunding, 4.00%, 12/01/51		500,000		348,788
	Port of Portland Airport Revenue,
	5.50%, 7/01/53		2,250,000		2,473,159
	Series 2020-27A, 5.00%, 7/01/36		150,000		163,610
b	State of Oregon, 3.80%, 6/01/39		300,000		300,000

					3,285,557

	Pennsylvania 1.7%
	School District of Philadelphia,
	Green Bond, Series 2019B, 5.00%, 9/01/29		1,600,000		1,801,762
	Series B, 5.00%, 9/01/31		100,000		115,775

					1,917,537

	Puerto Rico 0.7%
	HTA HRRB Custodial Trust, 5.50%, 7/01/28		550,000		567,335
	HTA TRRB Custodial Trust, 5.25%, 7/01/36		200,000		201,580

					768,915



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SCHEDULE OF INVESTMENTS

Franklin Municipal Green Bond ETF (continued)



		Principal Amount*		Value
	Municipal Bonds (continued)
	Rhode Island 0.2%
	Rhode Island Housing & Mortgage Finance Corp., 2.75%, 10/01/34		150,000	$	136,826
	Rhode Island Infrastructure Bank, Series A, 4.00%, 10/01/27		50,000		53,037

					189,863

	Tennessee 1.1%
	City of Kingsport, Series 2017B, 3.00%, 3/01/35		130,000		126,240
b	Metropolitan Government Nashville & Davidson County Industrial Development Board, Waste Management, Inc. of Tennessee Project, VRDN, 0.58%, 8/01/31		1,200,000		1,145,608

					1,271,848

	Texas 0.9%
	Harris County Flood Control District, Series 2022A, 4.25%, 10/01/47		1,000,000		1,015,139


	Utah 6.2%
	Central Valley Water Reclamation Facility, Series C, 4.00%, 3/01/47		3,050,000		3,010,328
	City of Spanish Fork City Sewer Revenue, 5.00%, 9/01/26		175,000		189,281
	Intermountain Power Agency, Series A, 5.00%, 7/01/43		3,000,000		3,323,836
	Utah Infrastructure Agency, 4.00%, 10/15/30		500,000		476,448

					6,999,893

	Vermont 0.7%
	City of Burlington Electric System Revenue, Electric System Revenue, Series 2022A, 5.00%, 7/01/31		500,000		585,235
	Vermont Educational & Health Buildings Financing Agency, 5.00%, 12/01/38		195,000		202,797

					788,032

	Virginia 1.2%
	Charles City County Economic Development Authority, Waste Management, Inc., AMT, 1.45%, 4/01/27		1,100,000		986,879
	City of Hampton,
	3.00%, 9/01/35		240,000		235,992
	4.00%, 9/01/31		100,000		111,198
	5.00%, 9/01/27		50,000		55,753

					1,389,822

	Washington 2.0%
	Central Puget Sound Regional Transit Authority,
	4.00%, 11/01/46		2,000,000		1,991,342
	Series S-1, 5.00%, 11/01/32		150,000		159,669
	FYI Properties, 5.00%, 6/01/24		135,000		138,431

					2,289,442

	Wisconsin 5.7%
	Milwaukee Metropolitan Sewerage District,
	3.00%, 10/01/32		1,000,000		993,844
	Series A, 3.00%, 10/01/35		150,000		143,169
	Public Finance Authority,
	RED River Valley Alliance LLC, AMT, 4.00%, 9/30/51		2,265,000		1,873,901
	RED River Valley Alliance LLC, AMT, 4.00%, 3/31/56		500,000		403,677
	^a,bVRDN, 3.50%, 12/01/50		200,000		162,777



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SCHEDULE OF INVESTMENTS

Franklin Municipal Green Bond ETF (continued)



	Principal Amount*		Value
Municipal Bonds (continued)
Wisconsin (continued)
University of Wisconsin Hospitals & Clinics, Obligated Group, Green Bond, 4.00%, 4/01/46		3,000,000	$	2,844,821

				6,422,189

Total Investments (Cost $114,556,326) 99.1%				111,307,899
Other Assets, less Liabilities 0.9%				1,041,031

Net Assets 100.0%			$	112,348,930

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

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

See Note 8 regarding other derivative information.

See Abbreviations on page 246.



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

FRANKLIN TEMPLETON ETF TRUST

Financial Highlights

Franklin Senior Loan ETF^a


	Year Ended March 31,

	2023			2022			2021			2020			2019^b

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

Net asset value, beginning of year		$24.70			$24.83			$22.85			$24.85			$25.00

Income from investment operations^c:

Net investment income^d		1.49			0.91			0.70			0.99			0.81

Net realized and unrealized gains (losses)		(0.92	)		(0.23	)		1.99			(1.90	)		(0.21	)

Total from investment operations		0.57			0.68			2.69			(0.91	)		0.60

Less distributions from net investment income		(1.44	)		(0.81	)		(0.71	)		(1.09	)		(0.75	)

Net asset value, end of year		$23.83			$24.70			$24.83			$22.85			$24.85

Total return^e		2.53%			2.76%			11.91%			(3.92)%			2.44%

Ratios to average net assets^f

Expenses before waiver and payments by affiliates		0.45%			0.58%			0.92%			0.97%			1.00%

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

Net investment income		6.28%			3.72%			2.88%			4.02%			3.90%

Supplemental data

Net assets, end of year (000’s)		$206,120			$292,722			$201,101			$54,833			$57,165

Portfolio turnover rate^g		26.07%^h			35.67%^h			45.87%^h			51.48%^h			10.62%

^a Effective August 1, 2022, Formerly, Franklin Liberty Senior Loan ETF was renamed Franklin Senior Loan ETF.

^b For the period May 30, 2018 (commencement of operations) to March 31, 2019.

^c The 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.

^d Based on average daily shares outstanding.

^e Total 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.

^f Ratios are annualized for periods less than one year.

^g Portfolio 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:			26.08%				35.67%				45.87%				51.48%				—



franklintempleton.com	The accompanying notes are an integral part of these financial statements. \| Annual Report	161

FRANKLIN TEMPLETON ETF TRUST

Schedule of Investments, March 31, 2023

Franklin Senior Loan ETF

Country

Principal Amount

Value

Corporate Bonds & Notes 4.4%

Airlines 0.9%

Air Canada, 3.875%, 8/15/26

Canada

700,000

636,343

American Airlines, Inc./AAdvantage Loyalty IP Ltd., senior secured note, 5.50%, 4/20/26

United States

800,000

788,274

Delta Air Lines, Inc./SkyMiles IP Ltd., first lien, 4.50%, 10/20/25

United States

229,169

225,465

United Airlines, Inc., 4.375%, 4/15/26

United States

140,000

134,103

1,784,185

Chemicals 0.4%

ASP Unifrax Holdings, Inc., 5.25%, 9/30/28

United States

419,400

335,646

SCIH Salt Holdings, Inc., senior secured note, 4.875%, 5/01/28

United States

500,000

446,360

782,006

Commercial Services & Supplies 0.1%

MPH Acquisition Holdings LLC, senior secured, 5.50%, 9/01/28

United States

213,000

169,537

Communications Equipment 0.1%

CommScope, Inc., senior secured, 4.75%, 9/01/29

United States

288,500

240,753

Construction Materials 0.2%

Cemex SAB de CV, senior secured note, 5.20%, 9/17/30

Mexico

375,000

346,234

Containers & Packaging 0.2%

Pactiv Evergreen Group Issuer, Inc./Pactiv Evergreen Group Issuer LLC, senior secured note, 4.00%, 10/15/27

United States

400,000

359,686

Electric 0.3%

Calpine Corp., first lien, 4.50%, 2/15/28

United States

800,000

743,055

Entertainment 0.1%

International Game Technology PLC, senior secured note, first lien, 5.25%, 1/15/29

United Kingdom

300,000

287,550

Environmental Control 0.3%

GFL Environmental, Inc., 3.50%, 9/01/28

Canada

600,000

543,561

Financial Services 0.4%

Altice France SA, senior secured, 5.125%, 7/15/29

France

500,000

376,725

Jane Street Group/JSG Finance, Inc., senior secured, 4.50%, 11/15/29

United States

300,000

268,938

Vmed O2 U.K. Financing I PLC, senior secured bond, 4.25%, 1/31/31

United Kingdom

210,000

178,920

824,583

Insurance 0.2%

Acrisure LLC/Acrisure Finance, Inc., 4.25%, 2/15/29

United States

500,000

426,933

Media 0.3%

Directv Financing LLC/Directv Financing Co.-Obligor, Inc., 5.875%, 8/15/27

.United States

750,000

679,995

Univision Communications, Inc., senior secured note, first lien, 5.125%, 2/15/25

United States

44,444

43,705

723,700

Oil, Gas & Consumable Fuels 0.1%

Cheniere Energy, Inc., senior secured, 4.625%, 10/15/28

United States

150,000

142,716

Weatherford International Ltd., 6.50%, 9/15/28

United States

44,600

44,718

187,434

Packaging & Containers 0.4%

Ardagh Packaging Finance PLC/Ardagh Holdings USA, Inc., 4.125%, 8/15/26

United States

500,000

466,927

Mauser Packaging Solutions Holding Co., 7.875%, 8/15/26

United States

305,600

305,877

772,804



162	Annual Report	franklintempleton.com

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SCHEDULE OF INVESTMENTS

Franklin Senior Loan ETF (continued)



		Country		Principal Amount		Value
	Corporate Bonds & Notes (continued)
	Pharmaceuticals 0.3%
a,b	Endo Luxembourg Finance Co. I Sarl/Endo U.S., Inc., 6.125%, 4/01/29		United States		925,000	$	685,083


	Specialty Retail 0.1%
a	Staples, Inc., 7.50%, 4/15/26		United States		161,000		141,213

	Total Corporate Bonds & Notes (Cost $9,636,911)						9,018,317


c	Senior Floating Rate Interests 89.0%
	Aerospace & Defense 2.2%
	Madison IAQ LLC, Term Loan, 8.302%, 6/21/28		United States		1,715,190		1,636,506
	Peraton Corp., Term Loan B, 8.59%, 2/01/28		United States		2,924,043		2,893,589


							4,530,095


	Air Freight & Logistics 1.5%
	First Student Bidco, Inc.,
	^d Term Loan C, 8.143%, 7/21/28		United States		378,538		363,532
	^d Term Loan B, 8.143%, 7/21/28		United States		1,012,648		972,507
	Kenan Advantage Group, Inc., 2021 Term Loan B1, 8.59%, 3/24/26		United States		1,749,417		1,739,944


							3,075,983


	Automobile Components 0.8%
	Clarios Global LP, 2021 USD Term Loan B, 8.09%, 4/30/26		United States		1,755,327		1,749,473


	Automobile Manufacturers 0.7%
	American Trailer World Corp., Term Loan B, 8.657%, 3/03/28		United States		1,595,532		1,398,085


	Automotive Parts & Equipment 2.7%
	DexKo Global, Inc., 2021 USD Term Loan B, 8.909%, 10/04/28		United States		1,289,244		1,211,084
	First Brands Group LLC,
	2022 Incremental Term Loan, 10.246%, 3/30/27		United States		350,877		337,719
	2021 Term Loan, 10.252%, 3/30/27		United States		2,311,456		2,231,999
	Truck Hero, Inc., 2021 Term Loan B, 8.59%, 1/31/28		United States		2,066,376		1,846,462


							5,627,264


	Building Products 1.8%
	Allied Universal Holdco LLC, 2021 USD Incremental Term Loan B, 8.657%, 5/12/28		United States		1,749,256		1,663,831
	Solis IV BV, USD Term Loan B1, 8.373%, 2/26/29		Netherlands		1,095,759		989,317
	White Cap Buyer LLC, Term Loan B, 8.557%, 10/19/27		United States		971,897		963,470


							3,616,618


	Capital Markets 2.0%
	Citadel Securities LP, 2021 Term Loan B, 7.422%, 2/02/28		United States		1,424,625		1,414,090
	Edelman Financial Center LLC, 2021 Term Loan B, 8.59%, 4/07/28		United States		1,275,334		1,232,489
	Jane Street Group LLC, 2021 Term Loan, 7.59%, 1/26/28		United States		1,413,314		1,393,528


							4,040,107


	Casinos & Gaming 2.5%
	Bally’s Corp., 2021 Term Loan B, 7.959%, 10/02/28		United States		1,775,520		1,699,119
	Caesars Entertainment Corp., Term Loan B, 8.157%, 2/06/30		United States		474,825		473,242
	Scientific Games Holdings LP, 2022 USD Term Loan B, 8.103%, 4/04/29		United States		1,476,008		1,457,905
	Scientific Games International, Inc., 2022 USD Term Loan, 7.96%, 4/14/29 .		United States		1,306,407		1,298,510
	Stars Group Holdings B.V. (The), 2022 USD Term Loan B, 8.41%, 7/22/28		Ireland		168,645		168,872


							5,097,648


	Chemicals 4.2%
	Hexion Holdings Corp., 2022 USD Term Loan, 9.454%, 3/15/29		United States		1,588,000		1,429,700
	INEOS Styrolution US Holding LLC, TBD, 2021 USD Term Loan B, 7.59%, 1/29/26		United States		1,698,966		1,684,525
	LSF11 A5 Holdco LLC, Term Loan, 8.422%, 10/15/28		United States		1,553,816		1,509,152
	Nouryon USA LLC, TBD, 2023 Term Loan, TBD, 3/02/28		United States		507,813		507,178



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Franklin Senior Loan ETF (continued)



		Country		Principal Amount		Value
c	Senior Floating Rate Interests (continued)
	Chemicals (continued)
	PMHC II, Inc., 2022 Term Loan B, 9.076%, 4/23/29		United States		2,189,997	$	1,936,209
	SCIH Salt Holdings Inc., 2021 Incremental Term Loan B, 8.825%, 3/16/27		United States		1,588,211		1,553,040

							8,619,804


	Commercial Services & Supplies 4.1%
	Amentum Government Services Holdings LLC, 2022 Term Loan, 8.764%, 2/15/29		United States		2,622,221		2,569,777
	APX Group, Inc., 2021 Term Loan B, 8.25%, 7/10/28		United States		1,286,979		1,283,189
	KUEHG Corp., 2018 Incremental Term Loan, 8.909%, 2/21/25		United States		1,075,833		1,058,652
	MPH Acquisition Holdings LLC, 2021 Term Loan B, 9.203%, 9/01/28		United States		693,965		596,379
d	PECF USS Intermediate Holding III Corp., Term Loan B, 9.09%, 12/15/28		United States		1,322,429		1,120,434
	Spin Holdco, Inc., 2021 Term Loan, 8.986%, 3/04/28		United States		2,158,456		1,820,809

							8,449,240


	Communications Equipment 0.4%
	CommScope, Inc., 2019 Term Loan B, 8.09%, 4/06/26		United States		964,996		930,767


	Computer & Electronics Retail 1.4%
	McAfee LLC, 2022 USD Term Loan, 8.515%, 3/01/29		United States		2,040,924		1,925,101
	Vision Solutions, Inc., 2021 Incremental Term Loan, 8.818%, 4/24/28		United States		1,083,395		966,931

							2,892,032


	Construction Materials 1.0%
	Cornerstone Building Brands, Inc., 2021 Term Loan B, 7.934%, 4/12/28		United States		1,371,191		1,214,533
	Quikrete Holdings, Inc., 2021 Term Loan B1, 7.84%, 3/18/29		United States		792,000		783,941

							1,998,474


	Containers & Packaging 3.0%
	Charter NEX US, Inc., 2021 Term Loan, 8.672%, 12/01/27		United States		2,156,878		2,133,799
	Klockner-Pentaplast of America, Inc., 2021 Term Loan B, 10.129%, 2/12/26 .		Luxembourg		1,971,598		1,824,556
	Mauser Packaging Solutions Holding Co., Term Loan B, 8.777%, 8/14/26		United States		700,000		695,625
	Reynolds Group Holdings, Inc., 2021 Term Loan B, 8.09%, 9/24/28		United States		1,481,947		1,464,038

							6,118,018


	Diversified Banks 0.6%
	AqGen Island Holdings, Inc., Term Loan, 8.375%, 8/02/28		United States		1,288,045		1,254,234


	Diversified Telecommunication Services 0.8%
	Altice France SA, 2023 USD Term Loan B14, 10.17% to , FRN thereafter, SOFR CME + 5.500%, 8/15/28		France		1,170,459		1,114,862
	Zayo Group Holdings, Inc., USD Term Loan, 7.84%, 3/09/27		United States		708,194		579,271

							1,694,133


	Electronic Equipment & Instruments 0.6%
	Magenta Buyer LLC, 2021 USD 1st Lien Term Loan, 9.58%, 7/27/28		United States		1,391,605		1,152,548


	Financial Services 1.2%
	Asurion LLC,
	2020 Term Loan B8, 8.09%, 12/23/26		United States		583,584		542,943
	2021 Second Lien Term Loan B4, 10.09%, 1/20/29		United States		1,997,666		1,659,062
	Citadel Securities LP, 2022 Incremental Term Loan B, 7.922%, 2/02/28		United States		199,500		199,501
	Go Daddy Operating Co. LLC, 2022 Term Loan B5, 8.057%, 11/09/29		United States		174,167		174,285

							2,575,791


	Food Products 0.4%
	Triton Water Holdings, Inc, Term Loan, 8.659%, 3/31/28		United States		812,570		732,585


	Health Care Providers & Services 6.6%
	ADMI Corp.,
	2021 Term Loan B2, 8.215%, 12/23/27		United States		751,770		698,361
	2021 Incremental Term Loan B3, 8.59%, 12/23/27		United States		655,771		610,483



164	Annual Report	franklintempleton.com

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SCHEDULE OF INVESTMENTS

Franklin Senior Loan ETF (continued)



		Country		Principal Amount		Value
c	Senior Floating Rate Interests (continued)
	Health Care Providers & Services (continued)
	Charlotte Buyer, Inc., 1st Lien Term Loan, 10.097%, 2/11/28		United States		973,903	$	933,126
	Gainwell Acquisition Corp., Term Loan B, 8.998%, 10/01/27		United States		2,577,997		2,468,432
	ICON Luxembourg Sarl, LUX Term Loan, 7.41%, 7/03/28		Luxembourg		1,136,750		1,135,408
	Medical Solutions Holdings, Inc., 2021 1st Lien Term Loan, 8.241%, 11/01/28		United States		1,874,462		1,826,428
	Medline Borrower LP, USD Term Loan B, 8.09%, 10/23/28		United States		1,639,662		1,600,851
	National Mentor Holdings, Inc.,
	2021 Term Loan, 8.676%, 3/02/28		United States		796,781		613,303
	2021 Term Loan C, 8.748%, 3/02/28		United States		29,688		22,851
	PRA Health Sciences, Inc., US Term Loan, 7.409%, 7/03/28		United States		301,142		300,787
	Radiology Partners, Inc., 2018 1st Lien Term Loan B, 9.09%, 7/09/25		United States		1,124,138		911,603
	U.S. Anesthesia Partners, Inc., 2021 Term Loan, 8.912%, 10/01/28		United States		1,330,957		1,285,831
	US Radiology Specialists, Inc., 2020 Term Loan, 10.09%, 12/15/27		United States		1,278,416		1,204,268

							13,611,732


	Health Care Services 1.3%
	CHG Healthcare Services, Inc., 2021 Term Loan, 8.09% to , 1-month USD LIBOR + 3.250%, 9/29/28		United States		1,395,911		1,384,569
	MedAssets Software Intermediate Holdings, Inc., 2021 Term Loan, 8.84%, 12/18/28		United States		1,397,556		1,304,968

							2,689,537


	Home Furnishings 0.4%
d	AI Aqua Merger Sub, Inc., 2021 1st Lien Term Loan B, 8.648%, 7/31/28		United States		920,375		891,043


	Hotels Restaurants & Leisure 1.2%
	Fertitta Entertainment LLC, 2022 Term Loan B, 8.807%, 1/27/29		United States		1,050,987		1,037,135
	Hilton Grand Vacations Borrower LLC, 2021 Term Loan B, 7.84%, 8/02/28		United States		1,354,202		1,355,387

							2,392,522


	Household Products 0.1%
	Energizer Holdings, Inc., 2020 Term Loan, 7.116% to , 1-month USD LIBOR + 2.250%, 12/22/27		United States		210,763		209,578


	Insurance 2.2%
	Acrisure LLC,
	2020 Term Loan B, 8.34%, 2/15/27		United States		1,517,604		1,472,706
	2021 First Lien Term Loan B, 9.09%, 2/15/27		United States		241,696		237,466
	Alliant Holdings Intermediate LLC, 2021 Term Loan B4, 8.279%, 11/06/27		United States		1,047,212		1,038,049
d	AssuredPartners, Inc., 2020 Term Loan B, 8.34%, 2/12/27		United States		1,452,278		1,440,842
	Asurion LLC,
	2022 Term Loan B10, 8.907%, 8/19/28		United States		298,500		276,300
	2023 Term Loan B11, 9.157% to , SOFR CME + 4.250%, 8/19/28		United States		172,413		160,344

							4,625,707


	Insurance Brokers 1.3%
	AssuredPartners, Inc., 2022 Term Loan B4, 9.057%, 2/12/27		United States		418,947		418,424
	Hub International Ltd., 2022 Term Loan B, 8.728%, 11/10/29		United States		583,022		582,039
	Sedgwick Claims Management Services, Inc., 2023 Term Loan B, 8.557%, 2/17/28		United States		1,673,785		1,656,353

							2,656,816


	Interactive Media & Services 1.0%
	Arches Buyer, Inc., 2021 Term Loan B, 8.157%, 12/06/27		United States		1,080,081		1,020,337
	Hunter Holdco 3 Ltd., USD Term Loan B, 9.409%, 8/19/28		United States		995,153		978,981

							1,999,318



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SCHEDULE OF INVESTMENTS

Franklin Senior Loan ETF (continued)



		Country		Principal Amount		Value
c	Senior Floating Rate Interests (continued)
	Internet Services & Infrastructure 0.7%
	MH Sub I LLC,
	2017 1st Lien Term Loan, 8.59%, 9/13/24		United States		488,849	$	481,631
	2020 Incremental Term Loan, 8.59%, 9/13/24		United States		1,021,348		1,006,508

							1,488,139


	IT Services 2.9%
	Deerfield Dakota Holding LLC, 2020 USD Term Loan B, 8.557%, 4/09/27		United States		1,453,424		1,411,035
	Dun & Bradstreet Corp., Term Loan, 8.095%, 2/06/26		United States		950,382		950,183
	Verscend Holding Corp., 2021 Term Loan B, 8.84%, 8/27/25		United States		3,664,406		3,665,560

							6,026,778


	Leisure Equipment & Products 0.7%
	Playtika Holding Corp., 2021 Term Loan, 7.59%, 3/13/28		United States		1,088,889		1,083,248
	Varsity Brands, Inc., 2017 Term Loan B, 8.34%, 12/15/24		United States		475,951		448,137

							1,531,385


	Machinery 0.8%
	Vertical US Newco, Inc., Term Loan B, 8.602%, 7/30/27		Germany		1,696,144		1,656,971


	Media 6.7%
	AMC Entertainment Holdings, Inc., 2019 Term Loan B, 7.684%, 4/22/26		United States		244,898		179,235
	Cengage Learning, Inc., 2021 Term Loan B, 9.88%, 7/14/26		United States		1,907,956		1,775,601
d	Clear Channel Outdoor Holdings, Inc., Term Loan B, 8.325%, 8/21/26		United States		1,418,374		1,325,002
	CSC Holdings, LLC, 2017 Term Loan B1, 6.934%, 7/17/25		United States		1,866,138		1,784,886
	Gray Television, Inc., 2021 Term Loan D, 7.662%, 12/01/28		United States		1,086,993		1,059,823
	McGraw-Hill Global Education Holdings LLC, 2021 Term Loan, 9.703%, 7/28/28		United States		1,283,629		1,202,760
	Nexstar Broadcasting, Inc., 2019 Term Loan B4, 7.34%, 9/18/26		United States		891,791		890,900
	Radiate Holdco LLC, 2021 Term Loan B, 8.09%, 9/25/26		United States		2,053,637		1,688,840
	Univision Communications, Inc., 2021 First Lien Term Loan B, 8.09%, 3/15/26		United States		1,648,910		1,643,295
	Virgin Media Bristol LLC, 2020 USD Term Loan Q, 7.934%, 1/31/29		United States		1,670,000		1,656,022
	William Morris Endeavor Entertainment LLC, 2018 1st Lien Term Loan, 7.60%, 5/18/25		United States		584,936		581,037

							13,787,401


	Office Services & Supplies 1.2%
	Prime Security Services Borrower LLC, 2021 Term Loan, 7.517%, 9/23/26		United States		2,425,520		2,421,106


	Passenger Airlines 3.6%
	Air Canada, 2021 Term Loan B, 8.369%, 8/11/28		Canada		1,950,378		1,949,773
	American Airlines, Inc., 2021 Term Loan, 9.558%, 4/20/28		United States		1,024,129		1,041,483
	Kestrel Bidco, Inc., Term Loan B, 7.859%, 12/11/26		Canada		2,042,523		1,962,824
	United Airlines, Inc., 2021 Term Loan B, 8.568%, 4/21/28		United States		2,470,529		2,458,485

							7,412,565


	Personal Care Products 1.9%
	Conair Holdings LLC, Term Loan B, 8.909%, 5/17/28		United States		2,047,151		1,883,379
	Sunshine Luxembourg VII Sarl, 2021 Term Loan B3, 8.909%, 10/01/26		Luxembourg		2,015,511		1,999,297

							3,882,676


	Pharmaceuticals 3.9%
	Bausch Health Companies, Inc., 2022 Term Loan B, 10.093%, 2/01/27		Canada		992,437		742,408
	eResearchTechnology, Inc., 2020 1st Lien Term Loan, 9.34%, 2/04/27		United States		1,455,926		1,377,677
	Grifols Worldwide Operations USA, Inc., USD 2019 Term Loan B, 6.84%, 11/15/27		United States		1,100,000		1,079,606
	Jazz Financing Lux Sarl, USD Term Loan, 8.34%, 5/05/28		United States		1,966,365		1,961,242
	Organon & Co, USD Term Loan, 8.00%, 6/02/28		United States		1,282,196		1,283,260



166	Annual Report	franklintempleton.com

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SCHEDULE OF INVESTMENTS

Franklin Senior Loan ETF (continued)



		Country		Principal Amount		Value
c	Senior Floating Rate Interests (continued)
	Pharmaceuticals (continued)
	Parexel International Corp., 2021 1st Lien Term Loan, 8.09%, 11/15/28		United States		1,577,613	$	1,562,137

							8,006,330


	Real Estate Management & Development 0.6%
	Cushman & Wakefield US Borrower LLC, 2020 Term Loan B, 7.59%, 8/21/25		United States		1,244,424		1,217,046


	Retail REITs 1.2%
	Great Outdoors Group LLC, 2021 Term Loan B1, 8.59%, 3/06/28		United States		1,659,589		1,640,927
	Petco Health and Wellness Co., Inc., 2021 Term Loan B, 8.41%, 3/03/28		United States		777,303		765,037

							2,405,964


	Semiconductor Materials & Equipment 0.4%
	MKS Instruments, Inc., 2022 USD Term Loan B, 7.609%, 8/17/29		United States		895,500		892,236


	Soft Drinks & Non-alcoholic Beverages 0.2%
	Naked Juice LLC, Term Loan, 8.248%, 1/24/29		United States		555,398		492,222


	Software 13.2%
	Athenahealth Group, Inc.,
	2022 Delayed Draw Term Loan, TBD, 3.50%, 2/15/29		United States		282,375		265,080
	^d2022 Term Loan B, 8.259%, 2/15/29		United States		2,304,371		2,163,228
	CDK Global, Inc., 2022 USD Term Loan B, 9.148%, 7/06/29		United States		257,143		256,748
	Cloudera, Inc.,
	2021 Term Loan, 8.657%, 10/08/28		United States		1,417,759		1,357,504
	2021 Second Lien Term Loan, 10.907%, 10/08/29		United States		303,306		270,069
	Cornerstone OnDemand, Inc., 2021 Term Loan, 8.59%, 10/16/28		United States		796,471		737,732
	DCert Buyer, Inc.,
	2019 Term Loan B, 8.696%, 10/16/26		United States		2,666,065		2,616,503
	TBD, 2021 2nd Lien Term Loan, 11.696%, 2/19/29		United States		1,000,000		929,720
	Epicor Software Corp., 2020 Term Loan, 8.09%, 7/30/27		United States		1,699,100		1,672,161
	Finastra USA, Inc., USD 1st Lien Term Loan, 8.325%, 6/13/24		United States		930,918		873,815
	GoTo Group, Inc., Term Loan B, 9.59%, 8/31/27		United States		1,863,118		1,073,873
	Hyland Software, Inc.,
	2018 1st Lien Term Loan, 8.34%, 7/01/24		United States		2,776,999		2,751,534
	2021 2nd Lien Term Loan, 11.09%, 7/07/25		United States		30,303		29,091
	Idera, Inc., 2021 Term Loan, 8.51%, 3/02/28		United States		1,231,009		1,177,922
	Ivanti Software, Inc.,
	2021 Add On Term Loan B, 8.984%, 12/01/27		United States		138,943		112,197
	2021 Term Loan B, 9.212%, 12/01/27		United States		1,281,555		1,056,943
	Mitchell International, Inc., 2021 Term Loan B, 8.502%, 10/15/28		United States		879,836		834,093
	Navicure, Inc., 2019 Term Loan B, 8.84%, 10/22/26		United States		3,166,684		3,161,253
	Polaris Newco LLC, USD Term Loan B, 9.159%, 6/02/28		United States		1,877,513		1,717,399
	Quest Software US Holdings, Inc., 2022 Term Loan, 9.076%, 2/01/29		United States		597,000		490,370
	Roper Industrial Products Investment Co. LLC, TBD, USD Term Loan, 9.398% to , SOFR CME + 4.500%, 11/22/29		United States		751,285		746,725
	Sovos Compliance LLC, 2021 Term Loan, 9.34%, 8/11/28		United States		1,430,369		1,357,956
	Ultimate Software Group, Inc.,
	2021 Term Loan, 8.032%, 5/04/26		United States		656,468		640,775
	Term Loan B, 8.575%, 5/04/26		United States		296,164		291,945
	TBD, 2021 2nd Lien Term Loan, 10.032%, 5/03/27		United States		570,096		549,288

							27,133,924


	Specialty Chemicals 0.2%
d	Ineos US Finance LLC, 2022 USD Term Loan B, 8.556%, 11/08/27		United States		480,000		480,000


	Specialty Retail 2.3%
	IRB Holding Corp., 2022 Term Loan B, 7.737%, 12/15/27		United States		698,237		687,714
	Michaels Companies, Inc., 2021 Term Loan B, 9.409%, 4/15/28		United States		1,681,793		1,548,401
	PetSmart, Inc., 2021 Term Loan B, 8.657%, 2/11/28		United States		1,319,675		1,311,156



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SCHEDULE OF INVESTMENTS

Franklin Senior Loan ETF (continued)



		Country		Principal Amount		Value
c	Senior Floating Rate Interests (continued)
	Specialty Retail (continued)
	SRS Distribution, Inc.,
	2022 Incremental Term Loan, 8.157%, 6/02/28		United States		78,250	$	75,649
	2021 Term Loan B, 8.34%, 6/02/28		United States		370,941		359,164
	Staples, Inc., 7 Year Term Loan, 9.814%, 4/16/26		United States		829,835		766,133

							4,748,217


	Systems Software 0.2%
	Barracuda Networks, Inc., 2022 Term Loan, 9.176%, 8/15/29		United States		498,750		481,451


	Technology Hardware, Storage & Peripherals 1.6%
	Greeneden U.S. Holdings II, LLC, 2020 USD Term Loan B4, 8.84%, 12/01/27		United States		3,337,134		3,294,636


	Wireless Telecommunication Services 0.7%
	CCI Buyer, Inc., Term Loan, 8.898%, 12/17/27		United States		1,480,111		1,463,460


	Total Floating Rate Loans (Cost $191,014,997)						183,451,659


	Asset-Backed Securities 0.9%
a,e	BlueMountain CLO Ltd., Series 2018-3A, Class C, 7.018%, 10/25/30		United States		1,000,000		940,464
a,e	LCM XVIII LP, Series 2018-A, Class CR, 6.658%, 4/20/31		United States		1,000,000		925,452


	Total Asset-Backed Securities (Cost $1,996,875)						1,865,916


	Total Investments before Short-Term Investments (Cost $202,648,783)						194,335,892


	Short-Term Investments 1.0%
	U.S. Government & Agency Securities 1.0%
f	Federal Home Loan Bank Discount Notes, 04/3/23		United States		2,140,000		2,140,000


	Total Short-Term Investments (Cost $2,139,483)						2,140,000


	Total Investments (Cost $204,788,266) 95.3%						196,475,892


	Other Assets, less Liabilities 4.7%						9,644,379


	Net Assets 100.0%					$	206,120,271

^a Security 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, 2023, the value of was $10,741,517, representing 5.2% of net assets.

^b See Note 7 regarding defaulted securities.

^c The coupon rate shown represents the rate at period end.

^d A 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.

^e The coupon rate shown represents the rate inclusive of any caps or floors, if applicable, in effect at period end.

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

See Abbreviations on page 246.



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

FRANKLIN TEMPLETON ETF TRUST

Consolidated Financial Highlights

Franklin Systematic Style Premia ETF^a


	Year Ended March 31,

	2023			2022			2021			2020^b

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

Net asset value, beginning of year		$21.25			$19.55			$23.16			$25.00

Income from investment operations^c:

Net investment income^d		0.26			0.14			0.23			0.11

Net realized and unrealized gains (losses)		0.40			1.82			(2.25	)		(1.94	)

Total from investment operations		0.66			1.96			(2.02	)		(1.83	)

Less distributions from:

Net investment income		(0.46	)		(0.26	)		(0.05	)		(0.01	)

Net realized gains		—			—			(1.54	)		—

Total distributions		(0.46	)		(0.26	)		(1.59	)		(0.01	)

Net asset value, end of year		$21.45			$21.25			$19.55			$23.16

Total return^e		3.13%			10.09%			(8.70)%			(7.34)%

Ratios to average net assets^f

Expenses before waiver and payments by affiliates		0.69%			0.73%			1.14%			1.15%

Expenses net of waiver and payments by affiliates		0.65%			0.63%			0.65%			0.65%

Net investment income		1.21%			0.69%			1.08%			1.67%

Supplemental data

Net assets, end of year (000’s)		$91,146			$55,258			$46,927			$50,948

Portfolio turnover rate^g		188.38%^h			189.89%^h			171.16%^h			60.95%^h

^a Effective August 1, 2022, Formerly, Franklin Liberty Systematic Style Premia ETF was renamed Franklin Systematic Style Premia ETF.

^b For the period December 18, 2019 (commencement of operations) to March 31, 2020.

^c The 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.

^d Based on average daily shares outstanding.

^e Total 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.

^f Ratios are annualized for periods less than one year.

^g Portfolio 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:	188.38%	189.89%	171.16%	60.95%



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FRANKLIN TEMPLETON ETF TRUST

Consolidated Schedule of Investments, March 31, 2023

Franklin Systematic Style Premia ETF



		Country		Shares		Value
	Common Stocks 62.2%
	Aerospace & Defense 0.3%
	BAE Systems PLC		United Kingdom		5,167	$	62,776
	General Dynamics Corp.		United States		315		71,886
	Textron, Inc.		United States		1,625		114,774

							249,436


	Air Freight & Logistics 0.6%
	Expeditors International of Washington, Inc.		United States		1,197		131,814
	FedEx Corp.		United States		1,902		434,588

							566,402


	Airlines 0.1%
	Singapore Airlines Ltd.		Singapore		9,100		39,219


	Automobiles 0.4%
	Stellantis NV		United States		17,399		316,363


	Banks 1.5%
	Banco Bilbao Vizcaya Argentaria SA		Spain		47,717		340,655
	Banco Santander SA		Spain		85,787		319,314
	Barclays PLC		United Kingdom		123,082		221,885
	NatWest Group PLC		United Kingdom		41,059		133,823
	Standard Chartered PLC		United Kingdom		16,303		123,810
	UniCredit SpA		Italy		12,530		237,006

							1,376,493


	Beverages 0.1%
a	Budweiser Brewing Co. APAC Ltd., Class H		China		12,800		39,052
	Coca-Cola HBC AG		Switzerland		1,524		41,701

							80,753


	Biotechnology 4.8%
	AbbVie, Inc.		United States		6,366		1,014,550
	Amgen, Inc.		United States		1,841		445,062
b	Biogen, Inc.		United States		1,078		299,716
	Gilead Sciences, Inc.		United States		9,464		785,228
b	Incyte Corp.		United States		1,405		101,539
b	Moderna, Inc.		United States		2,305		354,002
b	Regeneron Pharmaceuticals, Inc.		United States		803		659,801
b	United Therapeutics Corp.		United States		351		78,610
b	Vertex Pharmaceuticals, Inc.		United States		1,896		597,373

							4,335,881


	Building Products 0.4%
	Carlisle Cos., Inc.		United States		338		76,412
	Cie de Saint-Gobain		France		3,775		214,582
	Owens Corning		United States		714		68,401

							359,395


	Capital Markets 2.1%
	3i Group PLC		United Kingdom		7,496		156,173
	Ameriprise Financial, Inc.		United States		845		258,992
	Brookfield Corp.		Canada		3,469		112,861
	Carlyle Group, Inc.		United States		1,462		45,410
	Hong Kong Exchanges & Clearing Ltd.		Hong Kong		9,000		399,213
	Invesco Ltd.		United States		2,548		41,787
	LPL Financial Holdings, Inc.		United States		298		60,315
	SEI Investments Co.		United States		707		40,688
	State Street Corp.		United States		2,990		226,313



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Franklin Systematic Style Premia ETF (continued)



		Country		Shares		Value
	Common Stocks (continued)
	Capital Markets (continued)
	UBS Group AG		Switzerland		26,241	$	554,090

							1,895,842


	Chemicals 1.9%
	Albemarle Corp.		United States		554		122,456
	CF Industries Holdings, Inc.		United States		1,544		111,925
	Corteva, Inc.		United States		5,366		323,623
	FMC Corp.		United States		867		105,887
	LyondellBasell Industries NV, Class A		United States		2,015		189,188
	Mosaic Co.		United States		2,649		121,536
	Nitto Denko Corp.		Japan		800		51,394
	Nutrien Ltd.		Canada		3,500		258,126
	Shin-Etsu Chemical Co. Ltd.		Japan		14,000		449,696

							1,733,831


	Commercial Services & Supplies 0.6%
	Cintas Corp.		United States		650		300,742
b	Copart, Inc.		United States		2,051		154,256
	TOPPAN, Inc.		Japan		2,100		42,050

							497,048


	Communications Equipment 0.3%
b	Arista Networks, Inc.		United States		1,252		210,161
	Cisco Systems, Inc.		United States		1,316		68,794

							278,955


	Computers & Peripherals 0.2%
	Hewlett Packard Enterprise Co.		United States		9,928		158,153


	Construction Materials 0.3%
	HeidelbergCement AG		Germany		1,131		82,647
	Holcim AG, Class B		United States		3,020		194,711

							277,358


	Consumer Staples Distribution & Retail 2.2%
	Alimentation Couche-Tard, Inc.		Canada		7,500		376,566
	George Weston Ltd.		Canada		500		66,169
	J Sainsbury PLC		United Kingdom		13,335		45,952
	Koninklijke Ahold Delhaize NV		Netherlands		5,201		177,938
	Kroger Co.		United States		5,158		254,650
	Loblaw Cos. Ltd.		Canada		1,000		91,011
	Walmart, Inc.		United States		6,710		989,390

							2,001,676


	Distributors 0.2%
	Genuine Parts Co.		United States		1,011		169,150
	LKQ Corp.		United States		867		49,211

							218,361


	Diversified REITs 0.9%
	Gaming & Leisure Properties, Inc.		United States		1,945		101,257
	Goodman Group		Australia		12,746		160,403
	GPT Group		Australia		14,247		40,458
	Link REIT		Hong Kong		18,500		119,014
	Public Storage		United States		565		170,709
b	Unibail-Rodamco-Westfield		France		638		34,231
	VICI Properties, Inc.		United States		6,390		208,442

							834,514



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Franklin Systematic Style Premia ETF (continued)



		Country		Shares		Value
	Common Stocks (continued)
	Diversified Telecommunication Services 1.9%
	AT&T, Inc.		United States		46,888	$	902,594
	Deutsche Telekom AG		Germany		24,520		595,398
	Nippon Telegraph & Telephone Corp.		Japan		6,600		196,478

							1,694,470


	Electric Utilities 0.4%
	Endesa SA		Spain		2,387		51,867
	NRG Energy, Inc.		United States		1,780		61,036
b	PG&E Corp.		United States		11,299		182,705
	Power Assets Holdings Ltd.		Hong Kong		9,500		50,950

							346,558


	Electrical Equipment 0.4%
	AMETEK, Inc.		United States		1,344		195,323
	Mitsubishi Electric Corp.		Japan		14,900		176,720

							372,043


	Electronic Equipment, Instruments & Components 0.4%
b	Arrow Electronics, Inc.		United States		468		58,439
b	Keysight Technologies, Inc.		United States		1,021		164,871
	TDK Corp.		Japan		3,100		110,057

							333,367


	Entertainment 1.1%
b	Netflix, Inc.		United States		2,950		1,019,166


	Financial Services 0.1%
	Equitable Holdings, Inc.		United States		3,035		77,059


	Food Products 0.1%
	Lamb Weston Holdings, Inc.		United States		1,100		114,972


	Gas Utilities 0.1%
	Tokyo Gas Co. Ltd.		Japan		3,000		56,263
	UGI Corp.		United States		1,586		55,129

							111,392


	Ground Transportation 1.1%
	Canadian National Railway Co.		Canada		4,100		483,117
	JB Hunt Transport Services, Inc.		United States		632		110,891
	Knight-Swift Transportation Holdings, Inc.		United States		1,208		68,349
	MTR Corp. Ltd.		Hong Kong		11,500		55,449
	Old Dominion Freight Line, Inc.		United States		724		246,768
	TFI International, Inc.		Canada		600		71,498

							1,036,072


	Health Care Equipment & Supplies 0.2%
b	Hologic, Inc.		United States		1,761		142,113


	Health Care Providers & Services 0.9%
b	Centene Corp.		United States		4,172		263,712
	Cigna Group		United States		2,329		595,129

							858,841


	Health Care Technology 0.2%
b	Veeva Systems, Inc., Class A		United States		758		139,313


	Hotels, Restaurants & Leisure 1.1%
b	Booking Holdings, Inc.		United States		297		787,766
b	Galaxy Entertainment Group Ltd.		Macau		15,000		100,223
	McDonald’s Corp.		United States		303		84,722



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Franklin Systematic Style Premia ETF (continued)



		Country		Shares		Value
	Common Stocks (continued)
	Hotels, Restaurants & Leisure (continued)
b	Sands China Ltd.		Macau		17,600	$	61,208

							1,033,919


	Household Durables 0.1%
	Techtronic Industries Co. Ltd.		Hong Kong		10,000		108,090


	Independent Power Producers & Energy Traders 0.2%
	AES Corp.		United States		4,429		106,650
	Vistra Corp.		United States		2,722		65,328

							171,978


	Industrial Conglomerates 0.5%
	Hitachi Ltd.		Japan		6,400		348,732
	Jardine Matheson Holdings Ltd.		Hong Kong		1,200		58,284

							407,016


	Insurance 3.4%
	Aflac, Inc.		United States		4,591		296,211
	AIA Group Ltd.		Hong Kong		83,400		878,096
	American International Group, Inc.		United States		5,951		299,692
b	Arch Capital Group Ltd.		United States		2,246		152,436
	AXA SA		France		1,348		41,249
	Chubb Ltd.		United States		1,574		305,639
	Everest Re Group Ltd.		United States		305		109,196
	Fairfax Financial Holdings Ltd.		Canada		200		132,831
	Fidelity National Financial, Inc.		United States		1,716		59,940
	Hartford Financial Services Group, Inc.		United States		2,514		175,201
	Legal & General Group PLC		United Kingdom		45,026		133,001
	Manulife Financial Corp.		Canada		8,400		153,929
	MetLife, Inc.		United States		4,298		249,026
	Principal Financial Group, Inc.		United States		1,934		143,735

							3,130,182


	Interactive Media & Services 1.6%
b	Alphabet, Inc., Class C		United States		1,260		131,040
a	Auto Trader Group PLC		United Kingdom		5,384		41,021
b	Meta Platforms, Inc., Class A		United States		5,927		1,256,168

							1,428,229


	Internet & Direct Marketing Retail 1.1%
b	Amazon.com, Inc.		United States		2,058		212,571
	eBay, Inc.		United States		4,189		185,866
b	Expedia Group, Inc.		United States		1,137		110,323
b	MercadoLibre, Inc.		Brazil		343		452,094
a,b	Zalando SE		Germany		1,008		42,207

							1,003,061


	IT Services 3.6%
	Accenture PLC, Class A		United States		1,678		479,589
b	CGI, Inc., Class A		Canada		1,500		144,364
b	EPAM Systems, Inc.		United States		381		113,919
	Fujitsu Ltd.		Japan		1,500		201,011
b	Gartner, Inc.		United States		599		195,136
	Mastercard, Inc., Class A		United States		2,879		1,046,257
	TIS, Inc.		Japan		1,700		44,579
	Visa, Inc., Class A		United States		4,817		1,086,041

							3,310,896



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Franklin Systematic Style Premia ETF (continued)



		Country		Shares		Value
	Common Stocks (continued)
	Life Sciences Tools & Services 1.2%
	Agilent Technologies, Inc.		United States		2,210	$	305,732
b	IQVIA Holdings, Inc.		United States		653		129,875
b	Mettler-Toledo International, Inc.		United States		168		257,075
	Thermo Fisher Scientific, Inc.		United States		590		340,058
b	Waters Corp.		United States		318		98,462

							1,131,202


	Machinery 1.1%
	Cummins, Inc.		United States		861		205,676
	Fortive Corp.		United States		1,998		136,204
	Komatsu Ltd.		Japan		7,200		177,282
	Mitsubishi Heavy Industries Ltd.		Japan		2,400		87,928
	PACCAR, Inc.		United States		3,986		291,775
	Snap-on, Inc.		United States		405		99,990

							998,855


	Marine Transportation 0.0%^†
	AP Moller - Maersk AS, Class A		Denmark		20		35,470


	Metals & Mining 2.2%
	ArcelorMittal SA		Luxembourg		4,101		124,176
	BHP Group Ltd.		Australia		24,155		764,078
	BlueScope Steel Ltd.		Australia		3,584		48,368
	Glencore PLC		Australia		20,993		120,595
	Nippon Steel Corp.		Japan		6,300		147,689
	Nucor Corp.		United States		1,979		305,696
b	Pilbara Minerals Ltd.		Australia		20,738		54,724
	Reliance Steel & Aluminum Co.		United States		445		114,249
	Steel Dynamics, Inc.		United States		1,362		153,988
	Teck Resources Ltd., Class B		Canada		3,500		127,628

							1,961,191


	Multi-Utilities 0.8%
	Consolidated Edison, Inc.		United States		738		70,604
	E.ON SE		Germany		16,999		212,389
	Engie SA		France		13,743		217,606
	Sempra Energy		United States		1,726		260,902

							761,501


	Oil, Gas & Consumable Fuels 3.7%
	APA Corp.		United States		2,526		91,088
	ARC Resources Ltd.		Canada		4,800		54,372
	BP PLC		United Kingdom		49,334		311,583
	Exxon Mobil Corp.		United States		10,348		1,134,762
	HF Sinclair Corp.		United States		1,198		57,959
	Marathon Petroleum Corp.		United States		3,673		495,231
	Ovintiv, Inc.		United States		1,951		70,392
	Phillips 66		United States		3,779		383,115
	Shell PLC		Netherlands		13,669		390,160
	Valero Energy Corp.		United States		3,002		419,079

							3,407,741


	Personal Products 0.5%
	Beiersdorf AG		Germany		733		95,524
	Estee Lauder Cos., Inc., Class A		United States		795		195,936
	L’Oreal SA		France		444		198,380

							489,840



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Franklin Systematic Style Premia ETF (continued)



		Country		Shares		Value
	Common Stocks (continued)
	Pharmaceuticals 0.5%
	Pfizer, Inc.		United States		8,745	$	356,796
	Viatris, Inc.		United States		9,309		89,553

							446,349


	Professional Services 0.5%
	Adecco Group AG		Switzerland		1,206		43,762
	Randstad NV		Netherlands		936		55,524
	Recruit Holdings Co. Ltd.		Japan		11,400		312,646
	Robert Half International, Inc.		United States		820		66,067

							477,999


	Real Estate Investment Trusts (REITs) 0.4%
	Simon Property Group, Inc.		United States		2,469		276,454
	Stockland		Australia		17,771		47,371
	Vicinity Ltd.		Australia		29,535		38,474

							362,299


	Real Estate Management & Development 0.5%
	CK Asset Holdings Ltd.		Hong Kong		14,500		88,017
	CK Hutchison Holdings Ltd., Class A		United Kingdom		19,000		117,873
	Henderson Land Development Co. Ltd.		Hong Kong		9,000		31,128
	Sun Hung Kai Properties Ltd.		Hong Kong		10,000		140,128
	Wharf Real Estate Investment Co. Ltd.		Hong Kong		11,000		63,198

							440,344


	Semiconductors & Semiconductor Equipment 4.1%
	Broadcom, Inc.		United States		1,308		839,134
	Infineon Technologies AG		Germany		9,446		386,695
	Microchip Technology, Inc.		United States		3,570		299,095
b	ON Semiconductor Corp.		United States		2,936		241,692
	QUALCOMM, Inc.		United States		5,521		704,369
b	Renesas Electronics Corp.		Japan		9,000		129,397
	Rohm Co. Ltd.		Japan		600		49,455
	STMicroelectronics NV		Switzerland		5,176		275,297
	Texas Instruments, Inc.		United States		4,200		781,242

							3,706,376


	Software 5.5%
b	Adobe, Inc.		United States		2,723		1,049,363
b	Autodesk, Inc.		United States		1,384		288,093
	Bentley Systems, Inc., Class B		United States		1,294		55,629
b	Cadence Design Systems, Inc.		United States		2,064		433,626
	Constellation Software, Inc.		Canada		200		375,499
b	Dropbox, Inc., Class A		United States		2,093		45,251
b	Fair Isaac Corp.		United States		192		134,916
b	Fortinet, Inc.		United States		4,967		330,107
	Intuit, Inc.		United States		506		225,590
	Microsoft Corp.		United States		1,294		373,060
	Open Text Corp.		Canada		1,900		73,187
	Oracle Corp.		United States		10,245		951,965
	Sage Group PLC		United Kingdom		7,169		68,697
b	Synopsys, Inc.		United States		1,148		443,415
b	VMware, Inc., Class A		United States		1,625		202,881

							5,051,279


	Specialty Retail 1.9%
	Best Buy Co., Inc.		United States		1,541		120,614
	Home Depot, Inc.		United States		2,232		658,708
	JD Sports Fashion PLC		United Kingdom		19,905		43,747



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Franklin Systematic Style Premia ETF (continued)



		Country		Shares		Value
	Common Stocks (continued)
	Specialty Retail (continued)
	Kingfisher PLC		United Kingdom		14,758	$	47,662
	Lowe’s Cos., Inc.		United States		3,353		670,499
b	Ulta Beauty, Inc.		United States		392		213,903

							1,755,133


	Textiles, Apparel & Luxury Goods 1.6%
	Burberry Group PLC		United Kingdom		2,958		94,581
	Cie Financiere Richemont SA, Class A		Switzerland		2,455		392,080
	LVMH Moet Hennessy Louis Vuitton SE		France		1,101		1,010,055

							1,496,716


	Tobacco 0.1%
	Imperial Brands PLC		United Kingdom		5,641		130,011


	Trading Companies & Distributors 1.8%
	ITOCHU Corp.		Japan		9,400		303,775
	Marubeni Corp.		Japan		12,300		165,938
	Mitsubishi Corp.		Japan		9,900		353,407
	Mitsui & Co. Ltd.		Japan		11,500		355,654
	Sumitomo Corp.		Japan		8,800		154,788
	Toyota Tsusho Corp.		Japan		1,700		71,786
b	United Rentals, Inc.		United States		550		217,668

							1,623,016


	Water Utilities 0.1%
	Essential Utilities, Inc.		United States		1,441		62,900


	Wireless Telecommunication Services 0.3%
	KDDI Corp.		Japan		9,900		304,461


	Total Common Stocks (Cost $49,968,011)						56,701,100


	Total Investments before Short-Term Investments (Cost $49,968,011)						56,701,100


	Short-Term Investments 27.8%
	Money Market Funds 27.8%
c	State Street Institutional U.S. Government Money Market Fund, 4.70%		United States		25,346,244		25,346,244

	Total Short-Term Investments (Cost $25,346,244)					25,346,244

	Total Investments (Cost $75,314,255) 90.0%					82,047,344

	Other Assets, less Liabilities 10.0%					9,098,596

	Net Assets 100.0%					$91,145,940

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

^a Security 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, 2023, the value of was $122,280, representing 0.1% of net assets.

^b Non-income producing.

^c Rate shown is one-day yield as of the end of the reporting period.



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Franklin Systematic Style Premia ETF (continued)

At March 31, 2023, the Fund had the following total return swap contracts outstanding. See Note 1(c).

Total Return Swap Contracts

Underlying Instrument

Financing Rate

Payment
Frequency

Counterparty

Maturity
Date

Notional
Value

Value/Unrealized
Appreciation
(Depreciation)

OTC Swap Contracts

Equity Contracts - Short

MSFTLSSP

1-month USD LIBOR

At Maturity

MSCS

April 20, 2023

41,080

—

At March 31, 2023 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			4,132,242		$2,757,420		6/15/23		$ —		$ (17,412	)
Australian Dollar		MSCO			4,132,242		2,752,168		6/21/23		23,295		—
Brazilian Real		MSCO			9,216,005		1,718,602		6/21/23		—		(73,403	)
Canadian Dollar		MSCO			4,152,872		3,026,694		6/21/23		—		(45,776	)
Canadian Dollar		MSCO			19,608		14,230		6/21/23		—		(277	)
Czech Koruna		MSCO			39,573,780		1,771,462		6/21/23		52,790		—
Euro		MSCO			1,908,275		2,050,316		6/21/23		—		(32,079	)
Great British Pound		MSCO			2,258,701		2,735,050		6/21/23		62,044		—
Great British Pound		MSCO			2,672,437		3,243,713		6/21/23		65,736		—
Hungarian Forint		MSCO			1,303,011,469		3,415,076		6/21/23		—		(217,262	)
Hungarian Forint		MSCO			1,392,440,594		3,706,703		6/21/23		174,933		—
Israeli Shekel		MSCO			30,777,037		8,516,594		6/21/23		—		(57,328	)
Japanese Yen		MSCO			298,029,597		2,284,571		6/21/23		—		(19,588	)
Japanese Yen		MSCO			110,718,022		845,937		6/21/23		—		(4,495	)
Mexican Peso		MSCO			55,870,111		2,886,691		6/21/23		161,337		—
Mexican Peso		MSCO			90,548,359		4,659,372		6/21/23		280,549		—
New Zealand Dollar		MSCO			211,236		130,817		6/21/23		1,340		—
Norwegian Krone		MSCO			40,551,331		3,820,533		6/21/23		—		(65,143	)
Polish Zloty		MSCO			7,404,899		1,674,081		6/21/23		36,550		—
South African Rand		MSCO			52,147,887		2,852,122		6/21/23		—		(67,229	)
South African Rand		MSCO			43,535,474		2,357,063		6/21/23		80,146		—
South Korean Won		MSCO			6,064,618,962		4,649,451		6/21/23		—		(31,062	)
Swedish Krona		MSCO			1,980,947		185,606		6/21/23		—		(6,203	)
Swedish Krona		MSCO			1,980,947		188,665		6/21/23		3,144		—
Swedish Krona		MSCO			28,853,921		2,748,047		6/21/23		45,797		—
Swiss Franc		MSCO			527,580		585,781		6/21/23		—		(3,418	)

Total Forward Exchange Contracts											$987,661		$(640,675	)

Net unrealized appreciation (depreciation)													$ 346,986

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



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At March 31, 2023, the Fund had the following futures contracts outstanding. See Note 1(c).


Futures Contracts

Description	Type		Number of Contracts		Notional Amount*		Expiration Date		Value/Unrealized Appreciation (Depreciation)
Commodity Contracts
Brent Crude, April		Long		14	$	1,118,460		4/28/23		$	93,097
Brent Crude, June		Long		4		317,800		6/30/23			26,623
Cocoa, May		Long		39		1,143,870		5/15/23			97,774
Cocoa, September		Long		25		719,000		9/14/23			42,306
Coffee ’C’, September		Long		4		410,650		9/27/23			3,840
Coffee ’C’, September		Long		4		252,675		9/19/23			(13,043	)
Corn, September		Long		31		894,737		9/14/23			(36,067	)
Cotton No. 2, December		Long		9		375,390		12/06/23			6,098
Gasoline Rbob, April		Long		9		1,013,418		4/28/23			100,140
Gasoline Rbob, June		Long		3		324,261		6/30/23			30,115
Gold 100 Ounce, December		Long		4		815,600		12/27/23			16,990
Lean Hog, August		Long		15		566,550		8/14/23			(38,624	)
Live Cattle, August		Long		30		1,937,100		8/31/23			48,652
Low Sulphur Gasoil, July		Long		4		293,800		7/12/23			13,993
Low Sulphur Gasoil, May		Long		13		977,275		5/11/23			45,928
Natural Gas, June		Long		4		109,280		6/28/23			(10,469	)
NY Harbor ULSD, April		Long		8		880,522		4/28/23			51,486
NY Harbor ULSD, June		Long		3		321,804		6/30/23			18,095
Silver, September		Long		3		368,235		9/27/23			38,218
Soybean Meal, December		Long		12		503,760		12/14/23			5,294
Soybean Meal, May		Long		29		1,351,400		5/12/23			(23,118	)
Soybean Oil, December		Long		13		421,200		12/14/23			(33,878	)
Soybean, May		Long		23		1,731,325		5/12/23			(15,140	)
Soybean, November		Long		10		659,875		11/14/23			(25,367	)
Sugar No. 11, September		Long		28		673,299		9/29/23			73,550
Wheat, September		Long		13		465,887		9/14/23			(36,038	)
WTI Crude, April		Long		2		151,340		4/20/23			15,755
WTI Crude, June		Long		4		302,920		6/20/23			31,511
Coffee ’C’, May		Short		14		895,125		5/18/23			45,476
Copper, May		Short		16		1,637,800		5/26/23			(11,751	)
Corn, May		Short		38		1,254,950		5/12/23			(61,658	)
Cotton No. 2, May		Short		32		1,324,480		5/08/23			(30,690	)
Lean Hog, June		Short		37		1,356,050		6/14/23			92,081
Natural Gas, April		Short		36		797,760		4/26/23			138,184
Silver, May		Short		14		1,690,920		5/26/23			(169,304	)
Soybean Oil, May		Short		8		266,352		5/12/23			5,496
Wheat, May		Short		80		2,769,000		5/12/23			170,288
Index Contracts
Australian 10 Yr. Bond		Long		55		4,526,677		6/15/23			143,553
Canada 10 Yr. Bond		Long		102		9,508,494		6/21/23			298,270
FTSE/MIB Index		Long		68		9,846,539		6/16/23			308,428
Hang Seng Index		Long		8		1,043,624		4/27/23			35,181
IBEX 35 Index		Long		73		7,291,204		4/21/23			209,530
Long Gilt		Long		14		1,789,019		6/28/23			(22,295	)
NASDAQ 100 E-Mini		Long		39		10,375,365		6/16/23			679,449
OMXS30 Index		Long		166		3,548,664		4/21/23			137,394
S&P/TSX 60 Index		Long		7		1,250,881		6/15/23			24,431
U.S. Treasury 10 Yr. Note		Long		105		12,066,797		6/21/23			348,452
CAC 40 10 Euro		Short		53		4,223,053		4/21/23			(180,385	)
DAX Index		Short		10		4,290,662		6/16/23			(123,061	)
Euro BTP		Short		50		6,266,100		6/08/23			(10,732	)
Euro-Bund		Short		60		8,855,001		6/08/23			(320,786	)
Euro-OAT		Short		14		1,980,837		6/08/23			(66,485	)
FTSE 100 Index		Short		20		1,889,048		6/16/23			(13,008	)



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Franklin Systematic Style Premia ETF (continued)


Futures Contracts (continued)

Description	Type		Number of Contracts		Notional Amount*		Expiration Date		Value/Unrealized Appreciation (Depreciation)
Index Contracts (continued)
FTSE/JSE Africa Top40 Index		Short		86	$	3,452,796		6/15/23		$	(86,788	)
Japanese 10 Year Bond		Short		4		4,451,724		6/13/23			(78,461	)
Mex Bolsa Index		Short		196		5,897,585		6/16/23			(163,410	)
Nikkei 225 Mini		Short		20		4,213,690		6/08/23			(199,204	)
S+P500 E-Mini		Short		42		8,689,275		6/16/23			(427,682	)
SGX Nifty 50		Short		225		7,837,875		4/27/23			(130,587	)

Total Futures Contracts										$	1,067,647

* As of year end.

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, 2023, expiration date 4/20/23:



	Country		Shares			Value
Reference Entity – Short 100.00%
Automobiles & Components 5.61%
Aptiv PLC		United States		(2,260	)	$	(253,549	)
Cie Generale des Etablissements Michelin SCA		France		(5,902	)		(180,472	)
Continental AG		Germany		(972	)		(72,782	)
Ford Motor Co.		United States		(33,993	)		(428,312	)
Lear Corp.		United States		(482	)		(67,234	)
Porsche Automobil Holding SE		Germany		(1,365	)		(78,481	)
Tesla Inc.		United States		(3,061	)		(635,035	)
Toyota Motor Corp.		Japan		(41,600	)		(587,632	)

							(2,303,497	)


Banks 0.82%
DNB Bank ASA		Norway		(8,032	)		(143,682	)
Hang Seng Bank Ltd.		Hong Kong		(6,100	)		(86,799	)
Signature Bank		United States		(609	)		(111	)
SVB Financial Group		United States		(573	)		(519	)
Svenska Handelsbanken AB, A		Sweden		(12,386	)		(107,310	)

							(338,421	)


Capital Goods 8.45%
Airbus SE		France		(4,274	)		(572,449	)
Alfa Laval AB		Sweden		(2,354	)		(83,926	)
Alstom SA		France		(2,855	)		(77,794	)
Assa Abloy AB, B		Sweden		(8,374	)		(200,516	)
Atlas Copco AB		Sweden		(12,979	)		(149,171	)
Atlas Copco AB, A		Sweden		(22,040	)		(279,582	)
Epiroc AB, A		Sweden		(5,300	)		(105,187	)
Epiroc AB, B		Sweden		(3,147	)		(53,550	)
Ferrovial SA		Spain		(4,080	)		(120,082	)
Generac Holdings Inc.		United States		(539	)		(58,217	)
IMCD NV		Netherlands		(481	)		(78,596	)
Indutrade AB		Sweden		(2,251	)		(47,779	)
Kingspan Group PLC		Ireland		(1,321	)		(90,475	)
L3Harris Technologies Inc.		United States		(1,622	)		(318,301	)
Makita Corp.		Japan		(1,900	)		(46,825	)
Melrose Industries PLC		United Kingdom		(35,382	)		(72,841	)
Nibe Industrier AB		Sweden		(12,523	)		(142,264	)
Plug Power Inc.		United States		(4,521	)		(52,986	)



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	Country		Shares			Value
Reference Entity – Short (continued)
Capital Goods (continued)
Schindler Holding AG		Switzerland		(336	)	$	(74,332	)
Siemens Energy AG		Germany		(3,733	)		(82,088	)
Skanska AB, B		Sweden		(2,879	)		(44,020	)
Stanley Black & Decker Inc.		United States		(1,261	)		(101,611	)
Toshiba Corp.		Japan		(3,400	)		(113,555	)
Vestas Wind Systems A/S		Denmark		(8,349	)		(242,316	)
Volvo AB		Sweden		(12,828	)		(264,550	)

							(3,473,013	)


Commercial & Professional Services 0.88%
Equifax Inc.		United States		(1,012	)		(205,274	)
Rentokil Initial PLC		United Kingdom		(21,631	)		(158,227	)

							(363,501	)


Consumer Discretionary Distribution & Retail 2.37%
Advance Auto Parts Inc.		United States		(529	)		(64,332	)
CarMax Inc.		United States		(1,416	)		(91,020	)
Delivery Hero SE		South Korea		(1,520	)		(51,805	)
Doordash Inc.		United States		(1,465	)		(93,115	)
H & M AB, B		Sweden		(6,013	)		(85,717	)
Target Corp.		United States		(3,542	)		(586,661	)

							(972,650	)


Consumer Durables & Apparel 1.33%
adidas AG		Germany		(1,384	)		(244,764	)
Endeavour Group Ltd.		Australia		(12,149	)		(55,086	)
Hasbro Inc.		United States		(1,163	)		(62,442	)
Puma SE		Germany		(900	)		(55,598	)
VF Corp.		United States		(2,942	)		(67,401	)
Whirlpool Corp.		United States		(460	)		(60,729	)

							(546,020	)


Consumer Services 0.60%
Caesars Entertainment Inc.		United States		(1,873	)		(91,421	)
Carnival Corp.		United States		(9,078	)		(92,142	)
Whitbread PLC		United Kingdom		(1,747	)		(64,521	)

							(248,084	)


Consumer Staples Distribution & Retail 0.39%
Aeon Co. Ltd.		Japan		(5,600	)		(107,969	)
Kesko OYJ		Finland		(2,345	)		(50,458	)

							(158,427	)


Energy 6.09%
Aker BP ASA		Norway		(2,741	)		(67,078	)
Cameco Corp.		Canada		(3,700	)		(96,755	)
Enbridge Inc.		Canada		(14,700	)		(559,715	)
ENEOS Holdings Inc.		Japan		(26,900	)		(94,026	)
Equinor ASA		Norway		(8,291	)		(236,465	)
Kinder Morgan Inc.		United States		(16,993	)		(297,547	)
ONEOK Inc.		United States		(3,794	)		(241,071	)
Pembina Pipeline Corp.		Canada		(4,800	)		(155,277	)
Santos Ltd.		Australia		(26,895	)		(124,289	)
TC Energy Corp.		Canada		(8,400	)		(326,293	)
Williams Cos Inc.		United States		(10,215	)		(305,020	)

							(2,503,536	)



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	Country		Shares			Value
Reference Entity – Short (continued)
Equity Real Estate Investment Trusts (REITs) 6.34%
Alexandria Real Estate Equities Inc.		United States		(1,325	)	$	(166,407	)
Boston Properties Inc. REIT		United States		(1,358	)		(73,495	)
Camden Property Trust		United States		(849	)		(89,009	)
Digital Realty Trust Inc. REIT		United States		(2,367	)		(232,700	)
Equinix Inc.		United States		(756	)		(545,106	)
Essex Property Trust Inc.		United States		(541	)		(113,145	)
Healthcare Realty Trust Inc.		United States		(3,092	)		(59,768	)
Healthpeak Properties Inc.		United States		(4,531	)		(99,546	)
Invitation Homes, Inc.		United States		(5,022	)		(156,837	)
SBA Communications Corp. REIT		United States		(877	)		(228,958	)
Sun Communities Inc.		United States		(1,016	)		(143,134	)
Swiss Prime Site AG		Switzerland		(644	)		(53,611	)
UDR Inc.		United States		(2,714	)		(111,437	)
Ventas Inc. REIT		United States		(3,283	)		(142,318	)
Vonovia SE		Germany		(6,128	)		(115,446	)
Welltower Inc.		United States		(3,800	)		(272,422	)

							(2,603,339	)


Financial Services 4.52%
Ally Financial Inc.		United States		(2,838	)		(72,341	)
Annaly Capital Management Inc.		United States		(3,860	)		(73,765	)
ASX Ltd.		Australia		(1,651	)		(71,896	)
Coinebase Global Inc., A		United States		(906	)		(61,218	)
Credit Suisse Group AG		Switzerland		(33,817	)		(30,450	)
EQT AB		Sweden		(3,034	)		(61,619	)
Euronext NV		Netherlands		(729	)		(55,901	)
Groupe Bruxelles Lambert SA		Belgium		(846	)		(72,152	)
Investor AB		Sweden		(4,149	)		(84,504	)
Investor AB, B		Sweden		(15,161	)		(301,259	)
Japan Exchange Group Inc.		Japan		(4,300	)		(65,216	)
M&G PLC		United Kingdom		(19,364	)		(47,406	)
S&P Global Inc.		United States		(1,637	)		(564,389	)
Singapore Exchange Ltd.		Singapore		(7,200	)		(50,904	)
St James’s Place PLC		United Kingdom		(4,599	)		(68,863	)
T Rowe Price Group Inc.		United States		(913	)		(103,078	)
Tradeweb Markets Inc.		United States		(926	)		(73,173	)

							(1,858,134	)


Food, Beverage & Tobacco 2.34%
Barry Callebaut AG		Switzerland		(30	)		(63,675	)
Chocoladefabriken Lindt & Spruengli AG		Switzerland		(7	)		(82,754	)
Danone SA		France		(5,467	)		(340,400	)
Hormel Foods Corp.		United States		(2,540	)		(101,295	)
Kerry Group PLC		Ireland		(1,351	)		(134,802	)
McCormick & Co Inc.		United States		(2,100	)		(174,741	)
Mowi ASA		Norway		(3,382	)		(62,453	)

							(960,120	)


Health Care Equipment & Services 4.22%
Baxter International Inc.		United States		(4,131	)		(167,553	)
Coloplast A/S		Denmark		(970	)		(127,578	)
DENTSPLY SIRONA Inc.		United States		(1,767	)		(69,408	)
Fresenius Medical Care AG & Co. KGaA		Germany		(1,726	)		(73,321	)
Insulet Corp.		United States		(528	)		(168,411	)
Koninklijke Philips NV		Netherlands		(7,446	)		(136,198	)
Laboratory Corp of America Holdings		United States		(753	)		(172,753	)
Masimo Corp.		United States		(409	)		(75,477	)
Medtronic PLC		United States		(6,700	)		(540,154	)



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	Country		Shares			Value
Reference Entity – Short (continued)
Health Care Equipment & Services (continued)
Novocure Ltd.		United States		(789	)	$	(47,451	)
Ramsay Health Care Ltd.		Australia		(1,563	)		(69,655	)
Sysmex Corp.		Japan		(1,300	)		(84,423	)

							(1,732,382	)


Household & Personal Products 1.09%
Essity AB, B		Sweden		(5,044	)		(144,176	)
Kimberly-Clark Corp.		United States		(2,252	)		(302,264	)

							(446,440	)


Insurance 1.98%
Ageas SA/NV		Belgium		(1,414	)		(61,234	)
Assurant Inc.		United States		(462	)		(55,472	)
Insurance Australia Group Ltd.		Australia		(21,548	)		(67,685	)
Markel Corp.		United States		(114	)		(145,625	)
Medibank Pvt Ltd.		Australia		(24,120	)		(54,279	)
Phoenix Group Holdings PLC		United Kingdom		(6,540	)		(44,184	)
T&D Holdings Inc.		Japan		(4,900	)		(60,417	)
The Allstate Corp.		United States		(2,326	)		(257,744	)
Tryg A/S		Denmark		(3,093	)		(67,620	)

							(814,260	)


Materials 7.74%
Akzo Nobel NV		Netherlands		(1,537	)		(120,197	)
Alcoa Corp.		United States		(1,512	)		(64,351	)
Ball Corp.		United States		(2,642	)		(145,601	)
Chr. Hansen Holding A/S		Denmark		(895	)		(68,007	)
Croda International PLC		United Kingdom		(1,166	)		(93,682	)
Ecolab Inc.		United States		(2,141	)		(354,400	)
First Quantum Minerals Ltd.		Canada		(5,000	)		(114,789	)
Givaudan SA		Switzerland		(75	)		(244,075	)
International Flavors & Fragrances Inc.		United States		(2,174	)		(199,921	)
Koninklijke DSM NV		Netherlands		(1,453	)		(171,595	)
Mitsubishi Chemical Holdings Corp.		Japan		(11,300	)		(66,710	)
Newmont Corp.		United States		(6,329	)		(310,247	)
Novozymes A/S		Denmark		(1,724	)		(88,230	)
PPG Industries Inc.		United States		(1,946	)		(259,947	)
Sherwin-Williams Co.		United States		(2,061	)		(463,251	)
Stora Enso Oyj		Finland		(4,701	)		(61,187	)
Svenska Cellulosa AB SCA		Sweden		(5,105	)		(67,175	)
Symrise AG		Germany		(967	)		(105,270	)
Umicore SA		Belgium		(1,769	)		(59,983	)
UPM-Kymmene OYJ		Finland		(1,710	)		(57,500	)
Yara International ASA		Norway		(1,433	)		(62,106	)

							(3,178,224	)


Media & Entertainment 6.31%
Charter Communications Inc., A		United States		(907	)		(324,352	)
Liberty Broadband Corp.		United States		(1,015	)		(82,926	)
Match Group Inc.		United States		(2,289	)		(87,875	)
News Corp., A		United States		(3,264	)		(56,369	)
Paramount Global, B		United States		(5,225	)		(116,570	)
ROBLOX Corp.		United States		(2,810	)		(126,394	)
Roku Inc.		United States		(1,005	)		(66,149	)
Sea Ltd. ADR		Singapore		(2,900	)		(250,995	)
Snap Inc.		United States		(9,197	)		(103,098	)
Take-Two Interactive Software Inc.		United States		(1,384	)		(165,111	)
The Walt Disney Co.		United States		(5,764	)		(577,149	)



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CONSOLIDATED SCHEDULE OF INVESTMENTS

Franklin Systematic Style Premia ETF (continued)



	Country		Shares			Value
Reference Entity – Short (continued)
Media & Entertainment (continued)
Trade Desk Inc.		United States		(3,566	)	$	(217,205	)
Vivendi SA		France		(6,154	)		(62,180	)
Warner Bros Discovery Inc.		United States		(19,994	)		(301,910	)
Zoominfo Technologies Inc.		United States		(2,200	)		(54,362	)

							(2,592,645	)


Pharmaceuticals, Biotechnology & Life Sciences 7.01%
Alnylam Pharmaceuticals Inc.		United States		(1,019	)		(204,126	)
Argenx SE		Netherlands		(456	)		(168,790	)
AstraZeneca PLC		United Kingdom		(4,253	)		(590,648	)
Catalent Inc.		United States		(1,401	)		(92,060	)
Chugai Pharmaceutical Co. Ltd.		Japan		(5,700	)		(140,048	)
Illumina Inc.		United States		(1,147	)		(266,735	)
Johnson & Johnson		United States		(3,526	)		(546,530	)
Seagen Inc.		United States		(1,021	)		(206,722	)
UCB SA		Belgium		(1,064	)		(95,299	)
Zoetis Inc.		United States		(3,409	)		(567,394	)

							(2,878,352	)


Semiconductors & Semiconductor Equipment 9.05%
Advanced Micro Devices Inc.		United States		(6,415	)		(628,734	)
ASM International NV		Netherlands		(392	)		(158,388	)
Enphase Energy Inc.		United States		(1,138	)		(239,299	)
Entegris Inc.		United States		(1,214	)		(99,560	)
Intel Corp.		United States		(20,027	)		(654,282	)
Lam Research Corp.		United States		(1,122	)		(594,795	)
Lasertec Corp.		Japan		(700	)		(122,443	)
Marvell Technology Inc.		United States		(7,249	)		(313,882	)
NVIDIA Corp.		United States		(2,332	)		(647,760	)
Qorvo Inc.		United States		(518	)		(52,613	)
SolarEdge Technologies Inc.		United States		(459	)		(139,513	)
Wolfspeed, Inc.		United States		(1,013	)		(65,794	)

							(3,717,063	)


Software & Services 9.82%
Adyen NV		Netherlands		(180	)		(285,363	)
Amadeus IT Group SA		Spain		(3,815	)		(255,569	)
Bill.com Holdings Inc.		United States		(743	)		(60,287	)
Cloudflare Inc., A		United States		(2,092	)		(128,993	)
Crowdstrike Holdings Inc., A		United States		(1,620	)		(222,361	)
Datadog Inc., A		United States		(2,081	)		(151,206	)
Fidelity National Information Services Inc.		United States		(5,403	)		(293,545	)
Fiserv Inc.		United States		(2,798	)		(316,258	)
MongoDB Inc.		United States		(553	)		(128,915	)
Okta Inc., A		United States		(1,277	)		(110,129	)
Palantir Technologies Inc.		United States		(13,298	)		(112,368	)
Shopify Inc., A		Canada		(9,600	)		(459,659	)
Snowflake Inc.		United States		(1,787	)		(275,716	)
Splunk Inc.		United States		(1,368	)		(131,164	)
Square Inc., A		United States		(4,398	)		(301,923	)
Twilio Inc., A		United States		(1,513	)		(100,811	)
Unity Software Inc.		United States		(2,089	)		(67,767	)
Workday Inc., A		United States		(1,658	)		(342,443	)
Xero Ltd.		New Zealand		(1,159	)		(69,411	)
Zoom Video Communications Inc., A		United States		(1,826	)		(134,832	)
Zscaler Inc.		United States		(718	)		(83,884	)

							(4,032,604	)



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CONSOLIDATED SCHEDULE OF INVESTMENTS

Franklin Systematic Style Premia ETF (continued)



	Country		Shares			Value
Reference Entity – Short (continued)
Technology Hardware & Equipment 6.22%
Apple Inc.		United States		(3,676	)	$	(606,173	)
Cognex Corp.		United States		(1,450	)		(71,848	)
Halma PLC		United Kingdom		(3,178	)		(87,587	)
Hexagon AB		Sweden		(16,460	)		(188,655	)
Keyence Corp.		Japan		(1,300	)		(629,537	)
Logitech International SA		Switzerland		(1,460	)		(84,862	)
NetApp Inc.		United States		(1,878	)		(119,910	)
Omron Corp.		Japan		(1,600	)		(92,653	)
Seagate Technology Holdings PLC		United States		(1,700	)		(112,404	)
Teledyne Technologies Inc.		United States		(395	)		(176,707	)
Telefonaktiebolaget LM Ericsson		Sweden		(24,830	)		(145,107	)
Western Digital Corp.		United States		(2,754	)		(103,743	)
Zebra Technologies Corp.		United States		(432	)		(137,376	)

							(2,556,562	)


Telecommunication Services 2.06%
Cellnex Telecom SA		Spain		(4,658	)		(180,970	)
Elisa OYJ		Finland		(1,189	)		(71,772	)
Koninklijke KPN NV		Netherlands		(28,196	)		(99,743	)
Singapore Telecommunications Ltd.		Singapore		(69,200	)		(128,037	)
SoftBank Group Corp.		Japan		(3,700	)		(144,064	)
Spark New Zealand Ltd.		New Zealand		(15,783	)		(49,966	)
Tele2 AB		Sweden		(4,740	)		(47,196	)
Telenor ASA		Norway		(5,970	)		(69,943	)
Telia Co. AB		Sweden		(22,007	)		(55,964	)

							(847,655	)


Transportation 2.31%
Aena SME SA		Spain		(639	)		(103,373	)
Kuehne + Nagel International AG		Switzerland		(450	)		(133,934	)
Transurban Group		Australia		(25,933	)		(246,808	)
Uber Technologies Inc.		United States		(12,203	)		(386,835	)
West Japan Railway Co.		Japan		(1,900	)		(77,904	)

							(948,854	)


Utilities 2.45%
Chubu Electric Power Co. Inc.		Japan		(5,500	)		(57,815	)
CLP Holdings Ltd.		Hong Kong		(13,500	)		(97,510	)
Dominion Energy Inc.		United States		(6,878	)		(384,549	)
Hong Kong & China Gas Co. Ltd.		Hong Kong		(93,000	)		(81,864	)
Orsted AS		Denmark		(1,549	)		(131,799	)
Public Service Enterprise Group Inc.		United States		(4,078	)		(254,671	)

							(1,008,208	)


Total Value of Reference Entity — Morgan Stanley Capital Services LLC						$	(41,081,991	)

See Note 8 regarding other derivative information.

See Abbreviations on page 246.



184	Annual Report l The accompanying notes are an integral part of these financial statements.	franklintempleton.com

FRANKLIN TEMPLETON ETF TRUST

Financial Highlights

Franklin U.S. Core Bond ETF^a


	Year Ended March 31,

	2023			2022			2021			2020^b

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

Net asset value, beginning of year		$23.43			$25.14			$25.44			$25.00

Income from investment operations^c:

Net investment income^d		0.55			0.45			0.51			0.29

Net realized and unrealized gains (losses)		(1.70	)		(1.61	)		0.03			0.49

Total from investment operations		(1.15	)		(1.16	)		0.54			0.78

Less distributions from:

Net investment income		(0.54	)		(0.50	)		(0.65	)		(0.31	)

Net realized gains		—			(0.05	)		(0.19	)		(0.03	)

Total distributions		(0.54	)		(0.55	)		(0.84	)		(0.34	)

Net asset value, end of year		$21.74			$23.43			$25.14			$25.44

Total return^e		(4.88)%			(4.72)%			2.07%			3.12%

Ratios to average net assets^f

Expenses before waiver and payments by affiliates		0.15%			0.16%			0.17%			0.19%

Expenses net of waiver and payments by affiliates		0.14%			0.15%			0.15%			0.15%

Net investment income		2.51%			1.80%			1.95%			2.14%

Supplemental data

Net assets, end of year (000’s)		$1,511,691			$1,509,961			$1,460,597			$853,532

Portfolio turnover rate^g		68.70%^h			69.88%^h			90.99%^h			126.68%^h

^a Effective August 1, 2022, Formerly, Franklin Liberty U.S. Core Bond ETF was renamed Franklin U.S. Core Bond ETF.

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

^c The 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.

^d Based on average daily shares outstanding.

^e Total 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.

f Ratios are annualized for periods less than one year.

^g Portfolio 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:			68.70%				69.88%				90.99%				126.68%



franklintempleton.com	The accompanying notes are an integral part of these financial statements. \| Annual Report	185

FRANKLIN TEMPLETON ETF TRUST

Schedule of Investments, March 31, 2023

Franklin U.S. Core Bond ETF



		Country		Principal Amount*		Value
	Corporate Bonds & Notes 25.0%
	Aerospace & Defense 0.3%
	Boeing Co., 3.50%, 3/01/39		United States		5,000,000	$	3,935,142


	Agriculture 0.6%
	Altria Group, Inc., 3.40%, 5/06/30		United States		5,000,000		4,450,020
a	Cargill, Inc., 2.125%, 11/10/31		United States		2,000,000		1,661,820
a	Imperial Brands Finance PLC, 3.50%, 7/26/26		United Kingdom		4,000,000		3,751,959

							9,863,799

	Airlines 0.9%
	American Airlines 2016-3 Class A Pass Through Trust, Series 2016-3, 3.25%, 4/15/30		United States		4,256,309		3,691,021
a	Delta Air Lines, Inc./SkyMiles IP Ltd., first lien, 4.50%, 10/20/25		United States		7,058,412		6,944,337
	United Airlines 2019-2 Class A Pass Through Trust, Series A, 2.90%, 11/01/29		United States		878,884		751,052
	United Airlines 2020-1 Class A Pass Through Trust, Series 20-1, 5.875%, 4/15/29		United States		75,453		75,326
	United Airlines 2020-1 Class B Pass Through Trust, 2020-1 Class B, 4.875%, 7/15/27		United States		1,736,400		1,680,414

							13,142,150

	Banks 7.0%
a	Banco de Chile, 2.99%, 12/09/31		Chile		1,200,000		985,238
	Bank of America Corp.,
	1.922% to 10/24/30, FRN thereafter, 10/24/31		United States		1,500,000		1,197,331
	2.592% to 4/29/30, FRN thereafter, 4/29/31		United States		3,000,000		2,542,349
	3.864% to 7/23/23, FRN thereafter, 7/23/24		United States		5,100,000		5,071,782
a	BNP Paribas SA, 2.819% to 11/19/24, FRN thereafter, 11/19/25		France		2,200,000		2,091,915
a	BPCE SA, 2.045% to 10/19/26, FRN thereafter, 10/19/27		France		3,700,000		3,245,150
	Citigroup, Inc.,
	4.45%, 9/29/27		United States		1,500,000		1,455,677
	4.125%, 7/25/28		United States		2,300,000		2,173,656
	3.057% to 1/25/32, FRN thereafter, 1/25/33		United States		1,800,000		1,524,594
	4.044% to 6/01/23, FRN thereafter, 6/01/24		United States		5,100,000		5,083,088
	Credit Suisse Group AG,
	4.55%, 4/17/26		Switzerland		950,000		877,563
	^a 6.373% to 7/15/25, FRN thereafter, 7/15/26		Switzerland		550,000		532,892
	Deutsche Bank AG, 5.371%, 9/09/27		Germany		3,700,000		3,629,700
	Fifth Third Bancorp, 2.375%, 1/28/25		United States		4,400,000		4,096,535
	Goldman Sachs Group, Inc.,
	1.948% to 10/21/26, FRN thereafter, 10/21/27		United States		5,200,000		4,650,661
	3.691% to 6/05/27, FRN thereafter, 6/05/28		United States		2,500,000		2,370,566
	2.64% to 2/24/27, FRN thereafter, 2/24/28		United States		5,200,000		4,748,084
	HSBC Holdings PLC,
	2.013% to 9/22/27, FRN thereafter, 9/22/28		United Kingdom		4,100,000		3,515,545
	2.357% to 8/18/30, FRN thereafter, 8/18/31		United Kingdom		1,300,000		1,048,860
	0.976% to 5/24/24, FRN thereafter, 5/24/25		United Kingdom		4,800,000		4,519,620
	JPMorgan Chase & Co.,
	2.956% to 5/13/30, FRN thereafter, 5/13/31		United States		5,000,000		4,325,106
	2.522% to 4/22/30, FRN thereafter, 4/22/31		United States		2,000,000		1,710,946
	1.953% to 2/04/31, FRN thereafter, 2/04/32		United States		2,000,000		1,610,272
	KeyBank NA, 4.15%, 8/08/25		United States		2,500,000		2,365,900
	Mitsubishi UFJ Financial Group, Inc., 5.063% to 9/12/25, FRN thereafter, 9/12/25		Japan		4,500,000		4,471,726
	Morgan Stanley,
	3.622% to 4/01/30, FRN thereafter, 4/01/31		United States		4,300,000		3,935,148
	3.95%, 4/23/27		United States		3,600,000		3,484,135



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SCHEDULE OF INVESTMENTS

Franklin U.S. Core Bond ETF (continued)



		Country		Principal Amount*		Value
	Corporate Bonds & Notes (continued)
	Banks (continued)
a	Nordea Bank Abp, 4.75%, 9/22/25		Finland		2,200,000	$	2,191,281
	Santander U.K. Group Holdings PLC, 1.673% to 6/14/26, FRN thereafter, 6/14/27		United Kingdom		3,200,000		2,788,663
a	Societe Generale SA, 1.792% to 6/09/27, FRN thereafter, 6/09/27		France		4,300,000		3,732,475
	Toronto-Dominion Bank, 4.693%, 9/15/27		Canada		4,700,000		4,655,471
	Truist Bank, 2.25%, 3/11/30		United States		4,300,000		3,536,804
	Truist Financial Corp., 5.90% to 10/28/25, FRN thereafter, 10/28/26		United States		3,850,000		3,842,007
	Wells Fargo & Co.,
	2.879% to 10/30/29, FRN thereafter, 10/30/30		United States		7,700,000		6,696,550
	4.54% to 8/15/25, FRN thereafter, 8/15/26		United States		1,600,000		1,571,991

							106,279,281

	Banks 0.1%
	U.S. Bancorp, 5.727% to 10/21/25, FRN thereafter, 10/21/26		United States		1,700,000		1,708,946


	Beverages 0.7%
	Anheuser-Busch Cos. LLC/Anheuser-Busch InBev Worldwide, Inc., 4.70%, 2/01/36		Belgium		1,800,000		1,793,641
	Anheuser-Busch InBev Worldwide, Inc., 3.50%, 6/01/30		United States		3,900,000		3,679,443
	PepsiCo, Inc., 3.90%, 7/18/32		United States		6,000,000		5,867,740

							11,340,824

	Biotechnology 0.7%
	Amgen, Inc., 5.25%, 3/02/33		United States		3,400,000		3,495,016
	Bio-Rad Laboratories, Inc., 3.30%, 3/15/27		United States		500,000		471,922
	Illumina, Inc., 5.80%, 12/12/25		United States		3,000,000		3,029,976
	Royalty Pharma PLC, 2.20%, 9/02/30		United Kingdom		5,000,000		4,087,223

							11,084,137

	Building Products 0.1%
	NVR, Inc., 3.00%, 5/15/30		United States		2,500,000		2,200,936


	Commercial Services & Supplies 0.6%
	Boardwalk Pipelines LP, 4.80%, 5/03/29		United States		3,950,000		3,876,762
	Rockefeller University, Series 2020, 3.75%, 7/01/51		United States		7,000,000		5,815,217

							9,691,979

	Diversified Telecommunication Services 0.9%
	America Movil SAB de CV, 2.875%, 5/07/30		Mexico		3,800,000		3,354,967
	Orange SA, 9.00%, 3/01/31		France		3,000,000		3,768,221
	Verizon Communications, Inc.,
	1.75%, 1/20/31		United States		5,000,000		4,035,141
	2.85%, 9/03/41		United States		3,900,000		2,859,733

							14,018,062

	Electric 0.1%
	Duke Energy Ohio, Inc., 5.25%, 4/01/33		United States		500,000		514,828
	NextEra Energy Capital Holdings, Inc., 6.051%, 3/01/25		United States		1,500,000		1,526,731

							2,041,559

	Electric Utilities 2.0%
	Baltimore Gas & Electric Co., 3.50%, 8/15/46		United States		1,400,000		1,084,019
a	Comision Federal de Electricidad, 3.348%, 2/09/31		Mexico		3,800,000		3,017,317
	Duke Energy Corp., 3.75%, 9/01/46		United States		5,000,000		3,895,922
a	EDP Finance BV, 1.71%, 1/24/28		Netherlands		4,500,000		3,833,996
	Enel Finance International NV,
	^a 3.50%, 4/06/28		Netherlands		2,700,000		2,485,965
	^a 2.25%, 7/12/31		Netherlands		3,500,000		2,743,164



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SCHEDULE OF INVESTMENTS

Franklin U.S. Core Bond ETF (continued)



		Country		Principal Amount*		Value
	Corporate Bonds & Notes (continued)
	Electric Utilities (continued)
	Exelon Corp., 4.05%, 4/15/30		United States		3,000,000	$	2,865,690
	Georgia Power Co., Series 2010-C, 4.75%, 9/01/40		United States		1,400,000		1,290,177
	MidAmerican Energy Co., 3.65%, 8/01/48		United States		1,100,000		892,733
a	Perusahaan Perseroan Persero PT Perusahaan Listrik Negara, 4.875%, 7/17/49		Indonesia		750,000	��	612,825
	Southern Co., Series A, 3.70%, 4/30/30		United States		3,000,000		2,809,932
	Virginia Electric & Power Co., 3.80%, 9/15/47		United States		5,100,000		4,084,862

							29,616,602

	Electronic Equipment, Instruments & Components 0.4%
	Flex Ltd., 4.875%, 5/12/30		Singapore		3,000,000		2,921,080
	Teledyne FLIR LLC, 2.50%, 8/01/30		United States		3,000,000		2,526,492

							5,447,572

	Energy Equipment & Services 0.5%
	Kinder Morgan, Inc., 2.00%, 2/15/31		United States		4,100,000		3,312,560
	MPLX LP, 2.65%, 8/15/30		United States		2,500,000		2,121,549
a	Schlumberger Holdings Corp., 3.90%, 5/17/28		United States		1,950,000		1,876,412

							7,310,521

	Entertainment 0.1%
a	Warnermedia Holdings, Inc., 4.054%, 3/15/29		United States		900,000		837,829


	Financial Services 0.4%
	AerCap Ireland Capital DAC/AerCap Global Aviation Trust, 3.40%, 10/29/33		Ireland		3,500,000		2,846,605
	Capital One Financial Corp., 4.985% to 7/24/25, FRN thereafter, 7/24/26		United States		4,000,000		3,859,081

							6,705,686

	Food 0.1%
	General Mills, Inc., 5.241%, 11/18/25		United States		800,000		802,550


	Food Products 0.4%
	Kraft Heinz Foods Co.,
	3.00%, 6/01/26		United States		4,100,000		3,919,146
	3.75%, 4/01/30		United States		2,000,000		1,893,476

							5,812,622

	Ground Transportation 0.3%
	Burlington Northern Santa Fe LLC,
	4.90%, 4/01/44		United States		1,100,000		1,081,980
	4.15%, 4/01/45		United States		2,300,000		2,057,528
	CSX Corp., 4.25%, 11/01/66		United States		1,000,000		831,463

							3,970,971

	Health Care Providers & Services 1.1%
	CVS Health Corp.,
	4.875%, 7/20/35		United States		1,400,000		1,367,231
	4.30%, 3/25/28		United States		1,117,000		1,097,595
	Elevance Health, Inc., 5.10%, 1/15/44		United States		2,000,000		1,959,127
	Quest Diagnostics, Inc., 2.80%, 6/30/31		United States		6,800,000		5,949,929
	STERIS Irish FinCo UnLtd Co., 2.70%, 3/15/31		Ireland		5,000,000		4,188,847
	UnitedHealth Group, Inc., 3.05%, 5/15/41		United States		2,500,000		1,973,097

							16,535,826

	Healthcare-Products 0.2%
a	GE HealthCare Technologies, Inc., 5.60%, 11/15/25		United States		2,300,000		2,329,106


	Independent Power Producers & Energy Traders 0.3%
a	Colbun SA, 3.95%, 10/11/27		Chile		5,550,000		5,193,412



188	Annual Report	franklintempleton.com

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SCHEDULE OF INVESTMENTS

Franklin U.S. Core Bond ETF (continued)



		Country		Principal Amount*		Value
	Corporate Bonds & Notes (continued)
	Insurance 1.7%
a	AIA Group Ltd., 4.95%, 4/04/33		Hong Kong		1,600,000	$	1,611,508
	Aon Corp./Aon Global Holdings PLC, 5.35%, 2/28/33		United States		2,000,000		2,073,802
	Berkshire Hathaway Finance Corp., 3.85%, 3/15/52		United States		1,200,000		1,007,065
a	Five Corners Funding Trust II, 2.85%, 5/15/30		United States		4,000,000		3,439,322
a	MassMutual Global Funding II, 5.05%, 12/07/27		United States		5,100,000		5,166,872
	MetLife, Inc., 5.875%, 2/06/41		United States		1,100,000		1,148,586
	Metropolitan Life Global Funding I,
	^a4.30%, 8/25/29		United States		1,400,000		1,362,468
	^a5.05%, 1/06/28		United States		2,500,000		2,532,811
a	New York Life Global Funding, 4.85%, 1/09/28		United States		5,200,000		5,281,617
	Reinsurance Group of America, Inc., 3.90%, 5/15/29		United States		2,250,000		2,124,667

							25,748,718

	Internet Software & Services 0.1%
a	Tencent Holdings Ltd., 3.925%, 1/19/38		Cayman Islands		2,000,000		1,667,910


	IT Services 0.8%
	Apple, Inc., 2.65%, 5/11/50		United States		2,000,000		1,411,740
	Fidelity National Information Services, Inc., 2.25%, 3/01/31		United States		4,500,000		3,602,842
	Fiserv, Inc., 2.65%, 6/01/30		United States		4,700,000		4,059,997
	Hewlett Packard Enterprise Co., 5.90%, 10/01/24		United States		3,300,000		3,342,618

							12,417,197

	Media 0.9%
	Charter Communications Operating LLC/Charter Communications Operating Capital,
	2.80%, 4/01/31		United States		5,000,000		4,027,291
	3.50%, 3/01/42		United States		1,500,000		1,014,740
	Comcast Corp., 4.25%, 1/15/33		United States		4,000,000		3,898,102
	NBCUniversal Media LLC, 4.45%, 1/15/43		United States		1,100,000		1,005,985
	Walt Disney Co., 2.75%, 9/01/49		United States		5,000,000		3,482,198

							13,428,316

	Metals & Mining 0.1%
a	Corp. Nacional del Cobre de Chile, 4.50%, 8/01/47		Chile		1,160,000		997,671


	Oil, Gas & Consumable Fuels 1.1%
a	Aker BP ASA, 3.10%, 7/15/31		Norway		4,700,000		3,978,276
	Canadian Natural Resources Ltd., 3.85%, 6/01/27		Canada		600,000		575,082
	Cheniere Corpus Christi Holdings LLC, 5.875%, 3/31/25		United States		2,200,000		2,216,747
	Equinor ASA, 2.375%, 5/22/30		Norway		3,000,000		2,650,963
	Exxon Mobil Corp., 2.61%, 10/15/30		United States		3,000,000		2,697,457
a	Pertamina Persero PT, 4.70%, 7/30/49		Indonesia		1,000,000		830,253
	Sabine Pass Liquefaction LLC, first lien, 4.20%, 3/15/28		United States		4,000,000		3,845,493

							16,794,271

	Packaging & Containers 0.2%
	Amcor Flexibles North America, Inc., 2.63%, 6/19/30		United States		3,500,000		2,938,958


	Paper & Forest Products 0.1%
	Suzano Austria GmbH, 3.125%, 1/15/32		Austria		1,300,000		1,064,722


	Personal Products 0.3%
a	Kenvue, Inc., 5.05%, 3/22/28		United States		4,500,000		4,653,141


	Pharmaceuticals 0.6%
	AbbVie, Inc., 4.75%, 3/15/45		United States		1,000,000		944,460
	Bristol-Myers Squibb Co., 4.125%, 6/15/39		United States		3,200,000		2,983,477



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SCHEDULE OF INVESTMENTS

Franklin U.S. Core Bond ETF (continued)



	Country		Principal Amount*		Value
Corporate Bonds & Notes (continued)
Pharmaceuticals (continued)
Takeda Pharmaceutical Co. Ltd.,
2.05%, 3/31/30		Japan		2,600,000	$	2,196,421
5.00%, 11/26/28		Japan		2,500,000		2,528,064

						8,652,422

Pipelines 0.2%
Energy Transfer LP, 3.90%, 5/15/24		United States		2,650,000		2,595,181


Real Estate Management & Development 0.1%
Simon Property Group LP, 2.20%, 2/01/31		United States		2,000,000		1,609,600


Retail 0.2%
Advance Auto Parts, Inc.,
5.90%, 3/09/26		United States		350,000		357,350
5.95%, 3/09/28		United States		300,000		309,454
Target Corp., 4.40%, 1/15/33		United States		2,000,000		1,989,710

						2,656,514

Software 0.4%
Salesforce, Inc., 1.95%, 7/15/31		United States		2,000,000		1,675,825
ServiceNow, Inc., 1.40%, 9/01/30		United States		6,000,000		4,836,208

						6,512,033

Wireless Telecommunication Services 0.4%
T-Mobile USA, Inc.,
3.75%, 4/15/27		United States		5,000,000		4,809,554
3.875%, 4/15/30		United States		1,000,000		939,102
Vodafone Group PLC, 4.875%, 6/19/49		United Kingdom		1,000,000		904,263

						6,652,919

Total Corporate Bonds & Notes (Cost $415,614,816)						378,259,085


U.S. Government & Agency Securities 46.7%
Federal Farm Credit Banks Funding Corp., 2.10%, 2/25/36		United States		4,000,000		3,015,463
Federal Home Loan Mortgage Corp.,
2.00%, 7/01/37		United States		1,564,123		1,412,916
2.00%, 4/01/52		United States		5,159,519		4,274,014
2.50%, 4/01/37		United States		4,865,131		4,520,016
2.50%, 12/01/51		United States		761,049		656,961
2.50%, 4/01/52		United States		17,442,030		15,058,287
3.00%, 4/01/37		United States		514,297		488,149
3.00%, 7/01/37		United States		715,261		678,896
3.00%, 8/01/37		United States		547,949		520,090
3.00%, 9/01/37		United States		726,375		689,445
3.50%, 4/01/52		United States		3,198,840		2,975,561
3.50%, 5/01/52		United States		7,248,687		6,742,737
4.00%, 11/01/37		United States		5,845,513		5,760,322
6.00%, 4/01/53		United States		3,687,000		3,767,000
Federal National Mortgage Association,
1.50%, 9/01/51		United States		4,358,504		3,433,928
2.00%, 4/01/37		United States		474,271		428,422
3.00%, 5/01/37		United States		680,971		646,349
3.00%, 10/01/37		United States		4,762,030		4,519,919
3.00%, 12/01/51		United States		5,293,110		4,763,656
3.00%, 3/01/52		United States		879,104		790,734
3.50%, 6/01/49		United States		626,965		591,880
3.50%, 11/01/52		United States		4,724,331		4,394,576
4.50%, 1/01/53		United States		710,327		696,592
5.00%, 2/01/53		United States		8,323,095		8,307,970



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SCHEDULE OF INVESTMENTS

Franklin U.S. Core Bond ETF (continued)



		Country		Principal Amount*		Value
	U.S. Government & Agency Securities (continued)
	U.S. Treasury Bonds,
	1.125%, 8/15/40		United States		3,350,000	$	2,217,150
	1.25%, 5/15/50		United States		21,500,000		12,511,992
	1.375%, 8/15/50		United States		50,750,000		30,507,490
	2.00%, 11/15/41		United States		29,950,000		22,628,044
	2.00%, 2/15/50		United States		11,100,000		7,874,062
	2.25%, 8/15/46		United States		25,354,000		19,154,155
	2.25%, 8/15/49		United States		2,050,000		1,542,785
	2.75%, 8/15/42		United States		17,450,000		14,861,811
	2.75%, 11/15/42		United States		12,950,000		10,992,577
	3.00%, 11/15/44		United States		12,595,000		10,996,025
	3.00%, 2/15/49		United States		7,293,000		6,389,352
	U.S. Treasury Notes,
	0.375%, 11/30/25		United States		75,400,000		68,801,027
	0.375%, 1/31/26		United States		54,000,000		49,034,532
	0.875%, 6/30/26		United States		24,500,000		22,347,158
	1.25%, 12/31/26		United States		88,200,000		80,589,305
	1.25%, 8/15/31		United States		10,900,000		9,146,207
	2.125%, 2/29/24		United States		71,000,000		69,372,282
	2.125%, 3/31/24		United States		28,000,000		27,327,568
	2.75%, 8/15/32		United States		39,000,000		36,711,797
	2.875%, 5/15/32		United States		5,100,000		4,854,562
	3.25%, 6/30/27		United States		103,700,000		101,937,910
	4.00%, 10/31/29		United States		4,700,000		4,814,562
	Uniform Mortgage-Backed Security, TBA, 5.50%, 4/13/23		United States		12,040,000		12,162,516

	Total U.S. Government & Agency Securities (Cost $755,115,339)						705,908,752


	Municipal Bonds 3.0%
	Alabama 0.3%
b	Southeast Alabama Gas Supply District, Series 2018B, Monthly, VRDN, 3.974%, 6/01/49		United States		5,000,000		5,007,712


	California 2.3%
	California Health Facilities Financing Authority, State of California Personal Income Tax Revenue, 2.934%, 6/01/32		United States		530,000		458,741
	Clovis Unified School District, Refunding, Series 2021B, 3.067%, 8/01/39 .		United States		12,580,000		9,893,337
	Contra Costa Community College District, Refunding, 2.926%, 8/01/38		United States		4,000,000		3,258,587
	Golden State Tobacco Securitization Corp., Subordinate Bond, Refunding, Series 2021, 3.85%, 6/01/50		United States		7,200,000		6,515,090
	San Bernardino Community College District,
	Refunding, 2.686%, 8/01/41		United States		6,140,000		4,545,662
	Refunding, 2.856%, 8/01/49		United States		3,575,000		2,418,459
	State of California, 4.00%, 3/01/46		United States		2,500,000		2,505,250
	Whittier City School District, Refunding, 3.306%, 8/01/43		United States		7,500,000		5,970,016

							35,565,142

	Ohio 0.1%
	Greenville City School District, Refunding, 3.541%, 1/01/51		United States		1,295,000		1,006,561


	Texas 0.3%
	City of Austin Electric Utility Revenue, Electric Utility Revenue, Refunding, 6.262%, 11/15/32		United States		880,000		954,964
	Texas Water Development Board, Series 2019A, 4.00%, 10/15/44		United States		3,750,000		3,759,749

							4,714,713

	Total Municipals (Cost $55,690,460)						46,294,128



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Franklin U.S. Core Bond ETF (continued)



	Country		Principal Amount*		Value
Mortgage-Backed Securities 19.8%
Fannie Mae 6.3%
Federal Home Loan Mortgage Corp.,
3.50%, 2/1/47		United States		1,469,311	$	1,397,730
3.50%, 3/1/48		United States		1,779,149		1,679,411
4.00%, 11/1/45		United States		2,517,635		2,458,222
3.50%, 2/1/47		United States		2,791,299		2,637,874
3.50%, 3/1/48		United States		3,614,619		3,402,111
3.00%, 6/1/37		United States		4,332,818		4,112,529
2.50%, 4/1/37		United States		4,865,936		4,520,429
4.00%, 5/1/50		United States		5,728,691		5,574,442
4.00%, 6/1/48		United States		5,262,654		5,143,832
3.00%, 3/1/50		United States		14,835,609		13,457,914
3.00%, 3/1/50		United States		5,720,617		5,196,438
2.00%, 1/1/52		United States		12,895,517		10,683,770
2.00%, 2/1/52		United States		573,752		475,384
2.50%, 5/1/37		United States		4,103,600		3,812,216
4.50%, 8/1/52		United States		715,249		701,451
4.00%, 10/1/52		United States		3,662,579		3,506,314
3.00%, 7/1/52		United States		8,869,366		7,972,533
2.50%, 3/1/52		United States		7,017,611		6,059,825
4.50%, 10/1/52		United States		6,190,742		6,071,159
3.50%, 8/1/52		United States		2,063,356		1,919,328
2.00%, 4/1/37		United States		5,060,226		4,571,044

						95,353,956

Freddie Mac 11.4%
Federal National Mortgage Association,
2.00%, 7/1/51		United States		22,086,978		18,322,420
2.50%, 7/1/51		United States		7,300,073		6,308,767
2.50%, 12/1/51		United States		16,151,860		13,950,940
2.50%, 2/1/52		United States		1,639,309		1,415,956
2.50%, 8/1/51		United States		4,552,413		3,933,809
4.50%, 7/1/47		United States		5,543,748		5,530,791
4.50%, 12/1/48		United States		3,930,559		3,918,146
4.50%, 5/1/48		United States		2,749,076		2,752,597
3.50%, 8/1/49		United States		10,217,060		9,636,508
4.50%, 2/1/50		United States		1,638,030		1,629,168
3.00%, 9/1/50		United States		4,926,116		4,461,136
4.00%, 2/1/49		United States		416,335		406,552
3.00%, 4/1/50		United States		6,085,097		5,527,988
2.00%, 8/1/51		United States		14,517,464		12,046,526
3.00%, 11/1/51		United States		5,573,351		5,016,873
2.00%, 5/1/36		United States		10,884,326		9,832,776
2.00%, 3/1/52		United States		19,882,173		16,469,898
2.00%, 4/1/37		United States		4,913,223		4,438,282
3.00%, 5/1/52		United States		5,339,878		4,800,424
2.00%, 1/1/52		United States		5,532,370		4,586,619
2.00%, 2/1/52		United States		5,586,279		4,629,933
2.00%, 2/1/52		United States		5,580,253		4,623,532
2.00%, 6/1/37		United States		1,511,302		1,365,198
3.00%, 7/1/52		United States		1,883,643		1,692,988
5.00%, 10/1/52		United States		3,631,819		3,625,215
3.00%, 4/1/52		United States		5,331,251		4,792,795
3.50%, 8/1/52		United States		1,033,330		961,201
3.50%, 6/1/52		United States		5,160,334		4,800,145
2.50%, 3/1/52		United States		11,751,014		10,145,080
3.00%, 9/1/37		United States		556,645		528,344

						172,150,607



192	Annual Report	franklintempleton.com

FRANKLIN TEMPLETON ETF TRUST

SCHEDULE OF INVESTMENTS

Franklin U.S. Core Bond ETF (continued)



		Country		Principal Amount*		Value
	Mortgage-Backed Securities (continued)
	Ginnie Mae 2.1%
	Government National Mortgage Association,
	2.50%, 4/20/52		United States		9,534,701	$	8,400,617
	2.00%, 4/20/52		United States		5,366,756		4,565,330
	2.00%, 5/20/52		United States		11,236,578		9,558,178
	2.00%, 6/20/52		United States		5,407,402		4,599,717
	2.50%, 6/20/52		United States		5,464,686		4,814,701

							31,938,543

	Total Mortgage-Backed Securities (Cost $322,441,293)		.				299,443,106

	Foreign Government and Agency Securities 1.2%
	Chile 0.1%
	Chile Government International Bonds, 3.500%, 1/25/50		Chile		1,100,000		826,138


	Peru 0.3%
	Peruvian Government International Bonds, 2.783%, 1/23/31		Peru		5,850,000		5,007,704


	Romania 0.1%
a	Romania Government International Bonds, 5.125%, 6/15/48		Romania		2,270,000		1,903,450


	South Korea 0.1%
a	Korea Electric Power Corp., 5.375%, 4/06/26		South Korea		1,600,000		1,623,747


	Supranational 0.6%
a	African Export-Import Bank, 3.994%, 9/21/29		Supranational		6,100,000		5,151,755
a	Banque Ouest Africaine de Developpement, 5.000%, 7/27/27		Supranational		3,800,000		3,504,892

							8,656,647

	Total Foreign Government and Agency Securities (Cost $22,098,126)						18,017,686

	Asset-Backed Securities 2.8%
	Bank,
	Series 2021-BN33, Class A5, 2.556%, 5/15/64		United States		2,780,000		2,309,548
	^bSeries 2022-BN40, Class A4, 3.394%, 3/15/64		United States		2,800,000		2,462,804
	Benchmark Mortgage Trust,
	Series 2021-B31, Class A5, 2.669%, 12/15/54		United States		2,780,000		2,297,051
	^bSeries 2022-B32, Class A5, 3.002%, 1/15/55		United States		5,560,000		4,680,301
	BX Commercial Mortgage Trust,
	^a,bSeries 2019-XL, Class A, 5.862%, 10/15/36		United States		3,778,349		3,737,920
	^a,bSeries 2021-VOLT, Class B, 5.634%, 9/15/36		United States		3,190,000		3,032,041
	^a,bSeries 2022-LP2, CLass A, 5.84%, 2/15/39		United States		2,970,848		2,865,124
a,b	BX Mortgage Trust, Series 2021-PAC, Class A, 5.374%, 10/15/36		United States		3,090,000		2,966,254
a,b	BX Trust, Series 2022-IND, Class A, 6.318%, 4/15/37		United States		4,770,628		4,670,209
a,b	DBCG Mortgage Trust, Series 2017-BBG, Class A, 5.385%, 6/15/34		United States		7,190,000		7,086,011
a	New Economy Assets Phase 1 Sponsor LLC, Series 2021-1, Class A1, 1.91%, 10/20/61		United States		6,660,000		5,755,045

	Total Asset-Backed Securities (Cost $45,172,414)						41,862,308

	Total Investments before Short-Term Investments (Cost $1,616,132,448)						1,489,785,065



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SCHEDULE OF INVESTMENTS

Franklin U.S. Core Bond ETF (continued)



		Country		Principal Amount*		Value
	Short-Term Investments 1.2%
	Money Market Funds 1.2%
c,d	Institutional Fiduciary Trust - Money Market Portfolio, 4.47%		United States		17,621,864	$	17,621,864

	Total Short-Term Investments (Cost $17,621,864)						17,621,864


	Total Investments (Cost $1,633,754,312) 99.7%						1,507,406,929

	Other Assets, less Liabilities 0.3%						4,283,928


	Net Assets 100.0%					$	1,511,690,857

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

^a Security 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, 2023, the value of was $121,885,390, representing 8.1% of net assets.

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

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

^d See Note 3(d) regarding investments in affiliated management investment companies.

At March 31, 2023, the Fund had the following credit default swap contracts outstanding.

Credit Default Swap Contracts

Description

Periodic

Payment

Rate

Received

(Paid)

Payment

Frequency

Maturity

Date

Notional

Amount

Value

Unamortized

Upfront

Payments

(Receipts)

Unrealized

Appreciation

(Depreciation)

Over the counter Swap Contracts Contracts to Sell Protection^a,b

Long: 25995201 CDS USD R F 1.00000 Mexico Government International Bond

Quarterly

12/20/27

$15,000,000

$170,320

$92,953

$77,367

^a Performance triggers for settlement of contract include default, bankruptcy or restructuring for single name swaps, and failure to pay or bankruptcy of the underlying securities for traded swaps.

^b The Fund enters contracts to sell protection to create a long credit position.

At March 31, 2023, the Fund had the following futures contracts outstanding. See Note 1(c).

Futures Contracts

Description

Type

Number of

Contracts

Notional

Amount*

Expiration

Date

Value/Unrealized

Appreciation

(Depreciation)

Interest rate contracts

U.S. Treasury 2 Yr. Note

Long

$13,419,453

6/30/23

$231,988

U.S. Treasury 5 Yr. Note

Long

208

22,777,625

6/30/23

529,525

Total Futures Contracts

$761,513

* As of year end.

See Note 8 regarding other derivative information.

See Abbreviations on page 246.



194	Annual Report l The accompanying notes are an integral part of these financial statements.	franklintempleton.com

FRANKLIN TEMPLETON ETF TRUST

Financial Highlights

Franklin U.S. Low Volatility ETF^a


	Year Ended March 31,

	2023			2022			2021			2020			2019

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

Net asset value, beginning of year		$49.07			$43.69			$30.93			$33.61			$30.03

Income from investment operations^b:

Net investment income^c		0.76			0.70			0.67			0.64			0.52

Net realized and unrealized gains (losses)		(1.89	)		5.39			12.73			(2.84	)		3.88

Total from investment operations		(1.13	)		6.09			13.40			(2.20	)		4.40

Less distributions from:

Net investment income		(0.78	)		(0.71	)		(0.64	)		(0.48	)		(0.47	)

Net realized gains		—			—			—			—			(0.35	)

Total distributions		(0.78	)		(0.71	)		(0.64	)		(0.48	)		(0.82	)

Net asset value, end of year		$47.16			$49.07			$43.69			$30.93			$33.61

Total return^d		(2.22	)%		13.98%			43.52%			(6.74	)%		14.98%

Ratios to average net assets^e

Expenses before waiver and payments by affiliates		0.29%			0.33%			0.37%			0.57%			1.12%

Expenses net of waiver and payments by affiliates		0.29%			0.29%			0.29%			0.33%			0.50%

Net investment income		1.66%			1.47%			1.71%			1.75%			1.64%

Supplemental data

Net assets, end of year (000’s)		$155,613			$134,935			$139,822			$74,223			$13,443

Portfolio turnover rate^f		32.13%^g			21.90%^g			40.54%^g			32.61%^g			46.90%

^aEffective August 1, 2022, Formerly, Franklin Liberty U.S. Low Volatility ETF was renamed Franklin U.S. Low Volatility ETF.

^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:			32.13%				21.90%				40.54%				32.61%				—



franklintempleton.com	The accompanying notes are an integral part of these financial statements. \| Annual Report	195

FRANKLIN TEMPLETON ETF TRUST

Schedule of Investments, March 31, 2023

Franklin U.S. Low Volatility ETF



		Shares		Value
	Common Stocks 99.2%
	Communication Services 7.9%
a	Alphabet, Inc., Class A		19,081	$	1,979,272
	Comcast Corp., Class A		54,056		2,049,263
a	Liberty Broadband Corp., Class C		25,000		2,042,500
	TELUS Corp.		100,934		2,004,549
	Verizon Communications, Inc.		52,930		2,058,448
a	Walt Disney Co.		20,720		2,074,694

					12,208,726


	Consumer Discretionary 12.1%
a	Amazon.com, Inc.		19,120		1,974,905
a	AutoZone, Inc.		800		1,966,520
	Dollar General Corp.		7,202		1,515,733
	Home Depot, Inc.		6,624		1,954,875
	McDonald’s Corp.		7,104		1,986,349
a	NVR, Inc.		349		1,944,694
	Starbucks Corp.		19,098		1,988,675
	Target Corp.		9,337		1,546,487
	TJX Cos., Inc.		25,132		1,969,344
	Tractor Supply Co.		8,156		1,916,986

					18,764,568


	Consumer Staples 5.0%
	Coca-Cola Co.		25,249		1,566,195
	Colgate-Palmolive Co.		21,028		1,580,254
	Mondelez International, Inc., Class A		22,490		1,568,003
	PepsiCo, Inc.		8,559		1,560,306
	Procter & Gamble Co.		10,572		1,571,951

					7,846,709


	Energy 4.5%
	Chevron Corp.		10,759		1,755,438
a	DT Midstream, Inc.		35,129		1,734,319
	Exxon Mobil Corp.		16,035		1,758,398
	Williams Cos., Inc.		58,699		1,752,752

					7,000,907


	Financials 10.1%
	Arthur J Gallagher & Co.		8,507		1,627,474
	BlackRock, Inc.		2,360		1,579,123
	Intercontinental Exchange, Inc.		15,688		1,636,102
	JPMorgan Chase & Co.		11,986		1,561,896
	MetLife, Inc.		26,651		1,544,159
	Nasdaq, Inc.		28,917		1,580,892
	Progressive Corp.		11,177		1,598,982
	S&P Global, Inc.		4,581		1,579,391
	Travelers Cos., Inc.		9,099		1,559,660
	U.S. Bancorp		41,626		1,500,617

					15,768,296


	Health Care 13.9%
	Abbott Laboratories		19,741		1,998,974
	AbbVie, Inc.		12,388		1,974,275
	Amgen, Inc.		8,324		2,012,327
	Becton Dickinson & Co.		8,083		2,000,866
	Bristol-Myers Squibb Co.		28,767		1,993,841
	CVS Health Corp.		25,624		1,904,119
	Danaher Corp.		7,817		1,970,197
	Johnson & Johnson		12,600		1,953,000



196	Annual Report	franklintempleton.com

FRANKLIN TEMPLETON ETF TRUST

SCHEDULE OF INVESTMENTS

Franklin U.S. Low Volatility ETF (continued)



		Shares		Value
	Health Care (continued)
	Medtronic PLC		23,849	$	1,922,706
	Merck & Co., Inc.		18,401		1,957,682
	UnitedHealth Group, Inc.		4,040		1,909,264

					21,597,251


	Industrials 10.2%
	AMETEK, Inc.		10,299		1,496,754
	General Dynamics Corp.		6,388		1,457,805
	Honeywell International, Inc.		7,468		1,427,284
	IDEX Corp.		6,479		1,496,843
	Illinois Tool Works, Inc.		6,140		1,494,783
	Lockheed Martin Corp.		3,037		1,435,681
	Republic Services, Inc.		11,043		1,493,234
	Roper Technologies, Inc.		5,621		2,477,119
	Union Pacific Corp.		7,598		1,529,174
	Verisk Analytics, Inc.		7,758		1,488,450

					15,797,127


	Information Technology 26.8%
	Accenture PLC, Class A		9,390		2,683,756
	Amphenol Corp., Class A		30,880		2,523,514
	Analog Devices, Inc.		12,862		2,536,644
a	ANSYS, Inc.		7,725		2,570,880
	Apple, Inc.		15,225		2,510,602
	Automatic Data Processing, Inc.		6,626		1,475,146
a	Black Knight, Inc.		43,475		2,502,421
	Cisco Systems, Inc.		47,786		2,498,013
a	Fiserv, Inc.		13,906		1,571,795
	International Business Machines Corp.		19,092		2,502,770
	Intuit, Inc.		5,738		2,558,173
a	Keysight Technologies, Inc.		15,366		2,481,302
	Mastercard, Inc., Class A		4,426		1,608,453
	Microsoft Corp.		8,851		2,551,743
	Oracle Corp.		27,652		2,569,424
a	Synopsys, Inc.		6,474		2,500,582
	Texas Instruments, Inc.		13,569		2,523,970
	Visa, Inc., Class A		7,077		1,595,580

					41,764,768


	Materials 2.9%
	Air Products & Chemicals, Inc.		5,158		1,481,429
	Ecolab, Inc.		9,147		1,514,103
	Linde PLC		4,224		1,501,379

					4,496,911


	Real Estate 3.0%
	Crown Castle, Inc.		11,708		1,566,999
	First Industrial Realty Trust, Inc.		29,620		1,575,784
	Public Storage		5,180		1,565,085

					4,707,868


	Utilities 2.8%
	American Electric Power Co., Inc.		11,941		1,086,512
	Duke Energy Corp.		11,200		1,080,464
	NextEra Energy, Inc.		14,077		1,085,055



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FRANKLIN TEMPLETON ETF TRUST

SCHEDULE OF INVESTMENTS

Franklin U.S. Low Volatility ETF (continued)



	Shares		Value
Utilities (continued)
Southern Co.		15,817	$	1,100,547

				4,352,578

Total Common Stocks (Cost $139,487,991)				154,305,709

Total Investments before Short-Term Investments (Cost $139,487,991)				154,305,709

Country

Principal Amount*

Short-Term Investments 0.5%

U.S. Government & Agency Securities 0.5%

Federal Home Loan Bank Discount Notes, 4/03/23

United States

$870,000

870,000

Total Short-Term Investments (Cost $869,790)

870,000

Total Investments (Cost $140,357,781) 99.7%

155,175,709

Other Assets, less Liabilities 0.3%

436,960

Net Assets 100.0%

$155,612,669

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

^aNon-income producing.

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

See Note 8 regarding other derivative information.

See Abbreviations on page 246.



198	Annual Report l The accompanying notes are an integral part of these financial statements.	franklintempleton.com

FRANKLIN TEMPLETON ETF TRUST

Financial Highlights

Franklin U.S. Treasury Bond ETF^a


	Year Ended March 31,

	2023			2022			2021^b

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

Net asset value, beginning of year		$22.67			$23.83			$25.00

Income from investment operations^c:

Net investment income^d		0.46			0.18			0.11

Net realized and unrealized gains (losses)		(1.36	)		(0.96	)		(0.94	)

Total from investment operations		(0.90	)		(0.78	)		(0.83	)

Less distributions from net investment income		(0.54	)		(0.38	)		(0.34	)

Net asset value, end of year		$21.23			$22.67			$23.83

Total return^e		(3.95)%			(3.35)%			(3.36)%

Ratios to average net assets^f

Expenses before waiver and payments by affiliates		0.09%			0.28%			0.50%

Expenses net of waiver and payments by affiliates		0.08%			0.09%			0.09%

Net investment income		2.16%			0.77%			0.54%

Supplemental data

Net assets, end of year (000’s)		$428,756			$403,543			$418,199

Portfolio turnover rate^g		148.40%^h			13.86%^h			102.09%^h

^aEffective August 1, 2022, Formerly, Franklin Liberty U.S. Treasury Bond ETF was renamed Franklin U.S. Treasury Bond ETF.

^bFor the period June 9, 2020 (commencement of operations) to March 31, 2021.

^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:			148.40%				13.86%				102.09%



franklintempleton.com	The accompanying notes are an integral part of these financial statements. \| Annual Report	199

FRANKLIN TEMPLETON ETF TRUST

Schedule of Investments, March 31, 2023

Franklin U.S. Treasury Bond ETF



	Country		Principal Amount*		Value

U.S. Government & Agency Securities 98.7%
U.S. Treasury Bonds,
1.875%, 11/15/51		United States		43,098,000	$	29,366,405
3.00%, 5/15/42		United States		20,024,000		17,797,503
3.125%, 11/15/41		United States		17,000,000		15,510,508
3.125%, 8/15/44		United States		12,360,000		11,037,577
3.625%, 2/15/44		United States		6,380,000		6,176,887
U.S. Treasury Floating Rate Notes,
^a 4.768%, 7/31/24		United States		16,000,000		15,986,813
^a 4.931%, 1/31/25		United States		14,000,000		14,009,518
U.S. Treasury Inflation-Indexed Notes,
0.125%, 1/15/32		United States		1,618,455		1,479,469
0.50%, 1/15/28		United States		9,148,690		8,832,878
U.S. Treasury Notes,
0.25%, 7/31/25		United States		24,200,000		22,231,387
0.375%, 1/31/26		United States		15,900,000		14,437,945
0.375%, 9/30/27		United States		16,151,000		13,970,615
0.50%, 6/30/27		United States		14,175,000		12,419,736
0.625%, 12/31/27		United States		11,300,000		9,830,779
0.625%, 8/15/30		United States		5,450,000		4,442,921
0.75%, 5/31/26		United States		37,590,000		34,202,495
0.75%, 8/31/26		United States		3,395,000		3,069,292
0.75%, 1/31/28		United States		10,000,000		8,737,305
1.125%, 2/29/28		United States		7,018,000		6,234,643
1.125%, 2/15/31		United States		10,875,000		9,161,125
1.25%, 8/31/24		United States		2,670,000		2,557,411
1.25%, 8/15/31		United States		5,900,000		4,950,699
1.375%, 11/15/31		United States		2,330,000		1,967,303
1.50%, 9/30/24		United States		41,530,000		39,859,066
1.50%, 11/30/24		United States		14,631,000		13,997,466
1.625%, 8/15/29		United States		2,600,000		2,319,891
1.75%, 7/31/24		United States		7,080,000		6,839,944
1.875%, 7/31/26		United States		6,500,000		6,117,109
1.875%, 2/15/32		United States		11,041,000		9,693,222
2.125%, 9/30/24		United States		9,390,000		9,097,113
2.25%, 10/31/24		United States		10,600,000		10,275,582
2.375%, 5/15/27		United States		11,000,000		10,451,934
2.75%, 5/31/29		United States		8,180,000		7,798,799
2.875%, 8/15/28		United States		9,764,000		9,407,194
2.875%, 4/30/29		United States		13,250,000		12,724,917
3.25%, 6/30/29		United States		9,350,000		9,169,209
4.125%, 11/15/32		United States		6,470,000		6,799,566

Total U.S. Government & Agency Securities (Cost $429,349,741)						422,962,226

Total Investments before Short-Term Investments (Cost $429,349,741)						422,962,226



200	Annual Report	franklintempleton.com

FRANKLIN TEMPLETON ETF TRUST

SCHEDULE OF INVESTMENTS

Franklin U.S. Treasury Bond ETF (continued)

Country

Principal Amount*

Value

Short-Term Investments 0.9%

Money Market Funds 0.9%

United States 0.9%

b,c

Institutional Fiduciary Trust - Money Market Portfolio, 4.47%

United States

4,054,622

Total Short-Term Investments (Cost $4,054,622)

4,054,622

Total Investments (Cost $433,404,363) 99.6%

427,016,848

Other Assets, less Liabilities 0.4%

1,739,107

Net Assets 100.0%

428,72 55,955

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

^(a)Variable rate security. The rate shown represents the yield at period end.

^(b)The rate shown is the annualized seven-day effective yield at period end.

^(c)See Note 3

^(d) regarding investments in affiliated management investment companies.

See Note 8 regarding other derivative information.

See Abbreviations on page 246.



franklintempleton.com	The accompanying notes are an integral part of these financial statements. \| Annual Report	201

FRANKLIN TEMPLETON ETF TRUST

Financial Highlights

Franklin Ultra Short Bond ETF^a



	Year Ended March 31,

	2023			2022			2021^b
Per share operating performance (for a share outstanding throughout the year)

Net asset value, beginning of year		$24.55			$24.88			$25.00


Income from investment operations^c:

Net investment income^d		0.61			0.14			0.10

Net realized and unrealized gains (losses)		(0.12	)		(0.33	)		0.13


Total from investment operations		0.49			(0.19	)		0.23


Less distributions from:

Net investment income		(0.46	)		(0.14	)		(0.33	)


Net realized gains		—			—			(0.02	)


Total distributions		(0.46	)		(0.14	)		(0.35	)


Net asset value, end of year		$24.58			$24.55			$24.88


Total return^e		2.00%			(0.78)%			0.91%

Ratios to average net assets^f

Expenses before waiver and payments by affiliates		0.15%			1.71%			4.17%

Expenses net of waiver and payments by affiliates		0.10%			0.15%			0.15%

Net investment income		2.47%			0.55%			0.58%

Supplemental data

Net assets, end of year (000’s)		$2,458			$3,682			$2,488

Portfolio turnover rate^g		48.71%^h			24.71%^h			10.49%^h

^aEffective August 1, 2022, Formerly, Franklin Liberty Ultra Short Bond ETF was renamed Franklin Ultra Short Bond ETF.

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

^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”).


^hPortfolioturnover rate excluding cash creations was as follows:			48.71	%			24.17	%		10.49%



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

FRANKLIN TEMPLETON ETF TRUST

Schedule of Investments, March 31, 2023

Franklin Ultra Short Bond ETF



	Country		Principal Amount*		Value

Corporate Bonds & Notes 83.7%
Auto Manufacturers 4.0%
General Motors Financial Co., Inc., 1.70%, 8/18/23		United States		100,000	$	98,474


Banks 38.4%
Bank of America Corp., 5.334%, 4/22/25		United States		150,000		148,477
Citigroup, Inc., 5.977%, 5/17/24		United States		150,000		150,005
JPMorgan Chase & Co., 5.705% to , FRN thereafter, 7/23/24		United States		150,000		149,934
Morgan Stanley, 0.731% to 4/05/23, FRN thereafter, 4/05/24		United States		150,000		149,957
Toronto-Dominion Bank, 4.285%, 9/13/24		Canada		100,000		98,884
Truist Financial Corp., 5.202%, 6/09/25		United States		100,000		95,786
Westpac Banking Corp., 5.728% to , FRN thereafter, 2/26/24		Australia		150,000		149,258

						942,301


Biotechnology 2.0%
Royalty Pharma PLC, 0.75%, 9/02/23		United States		50,000		48,761


Chemicals 1.1%
LYB International Finance BV, 4.00%, 7/15/23		Netherlands		28,000		27,824


Electric Utilities 2.0%
^aVistra Operations Co. LLC, senior secured note, first lien, 3.55%, 7/15/24		United States		50,000		48,300


Entertainment 2.0%
^a Warnermedia Holdings, Inc., 3.428%, 3/15/24		United States		50,000		48,865


Financial Services 8.1%
American Express Co., 5.546%, 8/03/23		United States		150,000		149,981
Capital One Financial Corp., 2.60%, 5/11/23		United States		50,000		49,803

						199,784


Healthcare-Products 4.0%
Thermo Fisher Scientific, Inc., 0.797%, 10/18/23		United States		100,000		97,724


Insurance 3.9%
^a Brighthouse Financial Global Funding, secured note, 1.20%, 12/15/23		United States		100,000		96,745


Miscellaneous Manufacturing 4.0%
Parker-Hannifin Corp., 3.65%, 6/15/24		United States		100,000		98,528


Pipelines 2.0%
^aKinder Morgan, Inc., 5.625%, 11/15/23		United States		50,000		49,964


Retail 2.0%
Walgreens Boots Alliance, Inc., 0.95%, 11/17/23		United States		50,000		48,664


Telecommunications 10.2%
AT&T, Inc., 6.334%, 6/12/24		United States		100,000		100,424
Verizon Communications, Inc., 5.964% to , FRN, 5/15/25		United States		150,000		150,352

						250,776

Total Corporate Bonds & Notes (Cost $2,079,312)						2,056,710

Asset-Backed Securities 8.1%
Citibank Credit Card Issuance Trust, Series 2017-A5, Class A5, 5.372%, 4/22/26		United States		100,000		100,095
Discover Card Execution Note Trust, Series 2017-A5, Class A5, 5.284%, 12/15/26		United States		100,000		99,991


Total Asset-Backed Securities (Cost $200,922)						200,086


Total Investments before Short-Term Investments (Cost $2,280,234)						2,256,796



franklintempleton.com	\| Annual Report	203

FRANKLIN TEMPLETON ETF TRUST

SCHEDULE OF INVESTMENTS

Franklin Ultra Short Bond ETF (continued)

Country

Principal Amount*

Value

Short-Term Investments 7.6%

Money Market Funds 7.6%

United States 7.6%

b.c

Institutional Fiduciary Trust - Money Market Portfolio, 4.47%

United States

187,218

Total Short-Term Investments (Cost $187,218)

187,218

Total Investments (Cost $2,467,452) 99.4%

2,444,014

Other Assets, less Liabilities 0.6%

13,632

Net Assets 100.0%

2,457,646

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

^a Security 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, 2023, the value of was $243,874, representing 9.9% of net assets.

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

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

See Abbreviations on page 246.



204	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, 2023



	Franklin Disruptive Commerce ETF			Franklin Dynamic Municipal Bond ETF			Franklin Exponential Data ETF				Franklin Genomic Advancements ETF


Assets:
Investments in securities:
Cost – Unaffiliated issuers	$	10,805,227		$	102,964,295			$	3,617,774			$	13,251,505
Cost – Non-controlled affiliates (Note 3d)		—			—				38,455				—
Value – Unaffiliated issuers	$	9,379,237		$	99,618,121			$	3,331,712			$	10,496,375
Value – Non-controlled affiliates (Note 3d)		—			—				38,455				—
Cash		242,282			1,320,585				1,302				145,255
Foreign currency, at value (cost $1,925)		—			—				1,969				—
Receivables:
Dividends and interest		1,465			1,161,540				191				4,264

Total assets		9,622,984			102,100,246				3,373,629				10,645,894


Liabilities:
Payables:
Investment securities purchased		—			577,810				138				—
Management fees		3,909			25,196				1,355				4,420

Total liabilities		3,909			603,006				1,493				4,420

Net assets, at value	$	9,619,075		$	101,497,240			$	3,372,136			$	10,641,474


Net assets consist of:
Paid-in capital	$	21,047,819		$	108,145,893			$	4,576,263			$	21,641,366
Total distributable earnings (loss)		(11,428,744	)		(6,648,653	)			(1,204,127	)			(10,999,892	)

Net assets, at value	$	9,619,075		$	101,497,240			$	3,372,136			$	10,641,474

Shares outstanding		400,000			4,250,000				200,000				350,000

Net asset value per share	$	24.05		$	23.88			$	16.86			$	30.40



franklintempleton.com	The accompanying notes are an integral part of these financial statements. \| Annual Report	205

FRANKLIN TEMPLETON ETF TRUST

FINANCIAL STATEMENTS

Statements of Assets and Liabilities (continued)

March 31, 2023



	Franklin High Yield Corporate ETF			Franklin Intelligent Machines ETF		Franklin International Aggregate Bond ETF			Franklin Investment Grade Corporate ETF


Assets:
Investments in securities:
Cost – Unaffiliated issuers	$	221,125,965		$	7,424,171	$	284,641,467			$	705,421,110
Value – Unaffiliated issuers	$	201,185,218		$	8,711,141	$	260,162,638			$	634,145,207
Cash		2,023,071			121,445		4,431,294				3,379,652
Foreign currency, at value (cost $6,376,428)		—			—		7,132,438				—
Receivables:
Capital shares sold		3,393,986			—		979,301				5,360,744
Dividends and interest		2,978,075			3,701		1,403,534				6,138,820
Investment securities sold		12,000			—		—				—
Deposits with brokers for:
Futures contracts		—			—		—				314,150
Unrealized appreciation on OTC forward exchange contracts		—			—		3,283,935				—

Total assets		209,592,350			8,836,287		277,393,140				649,338,573


Liabilities:
Payables:
Investment securities purchased		1,356,700			—		—				4,737,974
Management fees		68,286			3,548		57,693				186,762
Variation margin on futures contracts		—			—		—				51,248
Foreign currency advanced by custodian		—			541		—				—
Unrealized depreciation on OTC forward exchange contracts		—			—		1,171,703				—

Total liabilities		1,424,986			4,089		1,229,396				4,975,984

Net assets, at value	$	208,167,364		$	8,832,198	$	276,163,744			$	644,362,589


Net assets consist of:
Paid-in capital	$	232,879,519		$	8,660,307	$	324,963,760			$	759,503,398
Total distributable earnings (loss)		(24,712,155	)		171,891		(48,800,016	)			(115,140,809	)

Net assets, at value	$	208,167,364		$	8,832,198	$	276,163,744			$	644,362,589

Shares outstanding		9,200,000			200,000		14,100,000				30,050,000

Net asset value per share	$	22.63		$	44.16	$	19.59			$	21.44



206	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, 2023



	Franklin Municipal Green Bond ETF			Franklin Senior Loan ETF			Franklin Systematic Style Premia ETF*			Franklin U.S. Core Bond ETF


Assets:
Investments in securities:
Cost – Unaffiliated issuers		$114,556,326			$204,788,266			$ 75,314,255			$1,616,132,448
Cost – Non-controlled affiliates (Note 3d)		—			—			—			17,621,864
Value – Unaffiliated issuers		$111,307,899			$196,475,892			$ 82,047,344			$1,489,785,065
Value – Non-controlled affiliates (Note 3d)		—			—			—			17,621,864
Cash		84,656			1,722,412			547,127			28,561
Foreign currency, at value (cost $294,287)		—			—			293,272			—
Receivables:
Capital shares sold		—			—			—			29,342,470
Dividends and interest		1,231,613			1,659,210			289,837			7,946,195
Investment securities sold		—			7,979,307			—			14,794,054
Closed swap contracts		—			—			80,730,016			7,588,060
Variation margin on futures contracts		—			—			144,723			59,513
Deposits with brokers for:
Futures contracts		—			—			8,148,319			444,600
Swap contracts		—			—			860,000			389,019
OTC swap contracts premiums paid		—			—			—			92,953
Unrealized appreciation on OTC forward exchange contracts		—			—			987,661			—
Unrealized appreciation on OTC swap contracts		—			—			—			77,367

Total assets		112,624,168			207,836,821			174,048,299			1,568,169,721


Liabilities:
Payables:
Closed swap contracts		—			—			82,205,524			7,500,000
Investment securities purchased		247,110			1,352,859			22			48,796,929
Management fees		28,128			81,316			51,419			181,935
Transfer agent fees		—			—			3,125			—
Custodian fees		—			—			490			—
Professional fees		—			—			333			—
Unrealized depreciation on OTC forward exchange contracts		—			—			640,675			—
Accrued expenses and other liabilities		—			282,375			771			—

Total liabilities		275,238			1,716,550			82,902,359			56,478,864

Net assets, at value		$112,348,930			$206,120,271			$ 91,145,940			$1,511,690,857


Net assets consist of:
Paid-in capital		$124,558,436			$220,833,635			$ 97,799,052			$1,751,863,262
Total distributable earnings (loss)		(12,209,506	)		(14,713,364	)		(6,653,112	)		(240,172,405	)

Net assets, at value		$112,348,930			$206,120,271			$ 91,145,940			$1,511,690,857

Shares outstanding		4,700,000			8,650,000			4,250,000			69,550,000

Net asset value per share		$ 23.90			$23.83			$ 21.45			$ 21.74

^aConsolidated financial statements. Note 10.



franklintempleton.com	The accompanying notes are an integral part of these financial statements. \| Annual Report	207

FRANKLIN TEMPLETON ETF TRUST

FINANCIAL STATEMENTS

Statements of Assets and Liabilities (continued)

March 31, 2023



	Franklin U.S. Low Volatility ETF		Franklin U.S. Treasury Bond ETF				Franklin Ultra Short Bond ETF


Assets:
Investments in securities:
Cost – Unaffiliated issuers	$	140,357,781		$	429,349,741			$	2,280,234
Cost – Non-controlled affiliates (Note 3d)		—			4,054,622				187,218
Value – Unaffiliated issuers	$	155,175,709		$	422,962,226			$	2,256,796
Value – Non-controlled affiliates (Note 3d)		—			4,054,622				187,218
Cash		278,629			—				71
Receivables:
Capital shares sold		2,357,767			7,428,883				—
Dividends and interest		166,026			2,081,035				17,695

Total assets		157,978,131			436,526,766				2,461,780


Liabilities:
Payables:
Investment securities purchased		2,329,979			7,741,089				3,932
Management fees		35,483			29,104				202
Funds advanced by custodian		—			618				—

Total liabilities		2,365,462			7,770,811				4,134

Net assets, at value	$	155,612,669		$	428,755,955			$	2,457,646


Net assets consist of:
Paid-in capital	$	143,712,423		$	494,290,877			$	2,514,957
Total distributable earnings (loss)		11,900,246			(65,534,922	)			(57,311	)

Net assets, at value	$	155,612,669		$	428,755,955			$	2,457,646

Shares outstanding		3,300,000			20,200,000				100,000

Net asset value per share	$	47.16		$	21.23			$	24.58



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

FRANKLIN TEMPLETON ETF TRUST

FINANCIAL STATEMENTS

Statements of Operations

for the year ended March 31, 2023



	Franklin Disruptive Commerce ETF			Franklin Dynamic Municipal Bond ETF			Franklin Exponential Data ETF				Franklin Genomic Advancements ETF


Investment income:
Dividends: (net of foreign taxes)^a
Unaffiliated issuers	$	54,016		$	—			$	11,016			$	39,120
Non-cash dividends		6,543			—				—				—
Interest:
Unaffiliated issuers		—			3,118,576				—				—

Total investment income		60,559			3,118,576				11,016				39,120


Expenses:
Management fees (Note 3a)		53,079			465,409				12,984				57,575
Transfer agent fees		—			8,022				—				—
Custodian fees		—			1,067				—				—
Reports to shareholders		—			2,725				—				—
Registration and filing fees		—			7,806				—				—
Professional fees		—			21,535				—				—
Trustee fees		—			1,893				—				—
Other		—			8,718				—				—

Total expenses		53,079			517,175				12,984				57,575
Expenses waived/paid by affiliates (Note 3c)		—			(243,934	)			(126	)			—

Net expenses		53,079			273,241				12,858				57,575

Net investment income		7,480			2,845,335				(1,842	)			(18,455	)


Realized and unrealized gains (losses):
Net realized gain (loss) from:
Investments:
Unaffiliated issuers		(3,771,582	)		(3,251,657	)			(366,963	)			(2,260,023	)
In-kind redemptions		(1,618,133	)		—				—				(364,779	)
Foreign currency transactions		(944	)		—				(127	)			289

Net realized gain (loss)		(5,390,659	)		(3,251,657	)			(367,090	)			(2,624,513	)


Net change in unrealized appreciation (depreciation) on:
Investments:
Unaffiliated issuers		731,214			334,040				(476,143	)			41,299
Translation of other assets and liabilities denominated in foreign currencies		(34	)		—				34				16

Net change in unrealized appreciation (depreciation)		731,180			334,040				(476,109	)			41,315

Net realized and unrealized gain (loss)		(4,659,479	)		(2,917,617	)			(843,199	)			(2,583,198	)

Net increase (decrease) in net assets resulting from operations	$	(4,651,999	)	$	(72,282	)		$	(845,041	)		$	(2,601,653	)



^aForeign taxes withheld on dividends		$83			$—				$103				$931



franklintempleton.com	The accompanying notes are an integral part of these financial statements. \| Annual Report	209

FRANKLIN TEMPLETON ETF TRUST

FINANCIAL STATEMENTS

Statements of Operations (continued)

for the year ended March 31, 2023



	Franklin High Yield Corporate ETF			Franklin Intelligent Machines ETF			Franklin International Aggregate Bond ETF			Franklin Investment Grade Corporate ETF

Investment income:
Dividends: (net of foreign taxes)^a
Unaffiliated issuers		$ —			$ 37,351			$ —			$ —
Non-cash dividends		—			3,123			—			—
Interest: (net of foreign taxes)^b
Unaffiliated issuers		13,498,200			—			2,247,218			24,484,112

Total investment income		13,498,200			40,474			2,247,218			24,484,112

Expenses:
Management fees (Note 3a)		913,409			40,308			505,738			2,459,090

Total expenses		913,409			40,308			505,738			2,459,090

Net investment income		12,584,791			166			1,741,480			22,025,022

Realized and unrealized gains (losses):
Net realized gain (loss) from:
Investments:
Unaffiliated issuers		(3,004,480	)		(450,318	)		(7,684,809	)		(35,675,080	)
In-kind redemptions		(17,063,901	)		453,481			—			(52,533,763	)
Foreign currency transactions		—			(159	)		(2,663,707	)		—
Forward exchange contracts		—			—			14,179,290			—
Futures contracts		—			—			—			3,238,401

Net realized gain (loss)		(20,068,381	)		3,004			3,830,774			(84,970,442	)

Net change in unrealized appreciation (depreciation) on:
Investments:
Unaffiliated issuers		(3,626,857	)		(810,953	)		(8,824,723	)		680,051
Translation of other assets and liabilities denominated in foreign currencies		—			—			1,366,497			—
Futures contracts		—			—			—			(1,363,186	)
Forward exchange contracts		—			—			(2,641,891	)		—
Change in deferred taxes on unrealized appreciation		—			—			1,629			—

Net change in unrealized appreciation (depreciation)		(3,626,857	)		(810,953	)		(10,098,488	)		(683,135	)

Net realized and unrealized gain (loss)		(23,695,238	)		(807,949	)		(6,267,714	)		(85,653,577	)

Net increase (decrease) in net assets resulting from operations		$(11,110,447	)		$(807,783	)		$ (4,526,234	)		$(63,628,555	)



^aForeign taxes withheld on dividends		$—			$3,392			$ —			$ —
^bForeign taxes withheld on interest		$—			$ —			$612			$(223	)



210	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, 2023



	Franklin Municipal Green Bond ETF			Franklin Senior Loan ETF			Franklin Systematic Style Premia ETF*			Franklin U.S. Core Bond ETF

Investment income:
Dividends: (net of foreign taxes)^a
Unaffiliated issuers		$ —			$ —			$ 1,236,987			$ 610,379
Interest:
Unaffiliated issuers		3,066,572			15,389,179			399,015			38,707,695

Total investment income		3,066,572			15,389,179			1,636,002			39,318,074

Expenses:
Management fees (Note 3a)		544,505			1,029,023			595,131			2,221,846
Transfer agent fees		8,022			—			7,500			—
Custodian fees		1,189			—			1,199			—
Reports to shareholders		3,155			—			—			—
Registration and filing fees		6,450			—			—			—
Professional fees		67,989			—			—			—
Trustee fees		3,598			—			—			—
Other		8,859			7,589			—			—

Total expenses		643,767			1,036,612			603,830			2,221,846
Expenses waived/paid by affiliates (Note 3c)		(323,254	)		—			(31,738	)		(104,052	)

Net expenses		320,513			1,036,612			572,092			2,117,794

Net investment income		2,746,059			14,352,567			1,063,910			37,200,280

Realized and unrealized gains (losses):
Net realized gain (loss) from:
Investments:
Unaffiliated issuers		(6,701,880	)		(6,257,273	)		(1,637,216	)		(77,479,533	)
Foreign currency transactions		—			—			(2,633	)		—
Forward exchange contracts		—			—			374,378			—
Futures contracts		—			—			(2,669,219	)		181,750
Swap contracts		—			—			—			73,718

Net realized gain (loss)		(6,701,880	)		(6,257,273	)		(3,934,690	)		(77,224,065	)

Net change in unrealized appreciation (depreciation) on:
Investments:
Unaffiliated issuers		2,723,264			(5,069,428	)		3,260,854			(35,416,037	)
Translation of other assets and liabilities denominated in foreign currencies		—			—			21,359			—
Futures contracts		—			—			1,417,435			645,531
Swap contracts		—			—			(878	)		95,395
Forward exchange contracts		—			—			73,504			—

Net change in unrealized appreciation (depreciation)		2,723,264			(5,069,428	)		4,772,274			(34,675,111	)

Net realized and unrealized gain (loss)		(3,978,616	)		(11,326,701	)		837,584			(111,899,176	)

Net increase (decrease) in net assets resulting from operations		$(1,232,557	)		$ 3,025,866			$ 1,901,494			$ (74,698,896	)



^aForeign taxes withheld on dividends		$—			$—			$53,270			$—

*Consolidated financial statements. Note 10.



franklintempleton.com	The accompanying notes are an integral part of these financial statements. \| Annual Report	211

FRANKLIN TEMPLETON ETF TRUST

FINANCIAL STATEMENTS

Statements of Operations (continued)

for the year ended March 31, 2023



	Franklin U.S. Low Volatility ETF			Franklin U.S. Treasury Bond ETF			Franklin Ultra Short Bond ETF

Investment income:
Dividends: (net of foreign taxes)^a
Unaffiliated issuers		$ 2,564,789			$ 170,598			$ 18,480
Interest:
Unaffiliated issuers		30,228			7,906,225			60,007
Inflation principle adjustments		—			365,091			—

Total investment income		2,595,017			8,441,914			78,487

Expenses:
Management fees (Note 3a)		386,374			339,123			4,585

Total expenses		386,374			339,123			4,585
Expenses waived/paid by affiliates (Note 3c)		—			(29,670	)		(1,625	)

Net expenses		386,374			309,453			2,960

Net investment income		2,208,643			8,132,461			75,527

Realized and unrealized gains (losses):
Net realized gain (loss) from:
Investments:
Unaffiliated issuers		(2,430,085	)		(45,689,019	)		(23,277	)
In-kind redemptions		654,149			—			—
Foreign currency transactions		(701	)		—			—

Net realized gain (loss)		(1,776,637	)		(45,689,019	)		(23,277	)

Net change in unrealized appreciation (depreciation) on:
Investments:
Unaffiliated issuers		(3,376,825	)		24,120,884			18,440
Translation of other assets and liabilities denominated in foreign currencies		(69	)		—			—

Net change in unrealized appreciation (depreciation)		(3,376,894	)		24,120,884			18,440

Net realized and unrealized gain (loss)		(5,153,531	)		(21,568,135	)		(4,837	)

Net increase (decrease) in net assets resulting from operations		$(2,944,888	)		$(13,435,674	)		$ 70,690


^aForeign taxes withheld on dividends		$10,238			$—			$—



212	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 Disruptive Commerce ETF						Franklin Dynamic Municipal Bond ETF

	Year Ended March 31, 2023				Year Ended March 31, 2022			Year Ended March 31, 2023			Year Ended March 31, 2022

Increase (decrease) in net assets:
Operations:
Net investment income (loss)		$	7,480		$	(136,756	)	$	2,845,335		$	1,338,701
Net realized loss			(5,390,659	)		(3,530,248	)		(3,251,657	)		(4,924	)
Net change in unrealized appreciation (depreciation)			731,180			(8,910,981	)		334,040			(5,026,347	)

Net increase (decrease) in net assets resulting from operations			(4,651,999	)		(12,577,985	)		(72,282	)		(3,692,570	)

Distributions to shareholders (Note 1g)			—			(222,554	)		(2,738,207	)		(1,204,849	)

Capital share transactions: (Note 2)			(4,312,705	)		(10,442,439	)		27,399,308			39,693,714

Net increase (decrease) in net assets			(8,964,704	)		(23,242,978	)		24,588,819			34,796,295
Net assets:
Beginning of year			18,583,779			41,826,757			76,908,421			42,112,126

End of year		$	9,619,075		$	18,583,779		$	101,497,240		$	76,908,421



franklintempleton.com	The accompanying notes are an integral part of these financial statements. \| Annual Report	213

FRANKLIN TEMPLETON ETF TRUST

FINANCIAL STATEMENTS

Statements of Changes in Net Assets (continued)


	Franklin Exponential Data ETF						Franklin Genomic Advancements ETF

	Year Ended March 31, 2023			Year Ended March 31, 2022			Year Ended March 31, 2023			Year Ended March 31, 2022

Increase (decrease) in net assets:
Operations:
Net investment income loss		$ (1,842	)		$ (7,332	)		$ (18,455	)		$ (69,697	)
Net realized loss		(367,090	)		(487,396	)		(2,624,513	)		(1,268,783	)
Net change in unrealized appreciation (depreciation)		(476,109	)		292,285			41,315			(5,044,128	)

Net increase (decrease) in net assets resulting from operations		(845,041	)		(202,443	)		(2,601,653	)		(6,382,608	)

Distributions to shareholders (Note 1g)		—			—			—			(64,946	)

Capital share transactions: (Note 2)		800,051			1,286,009			(1,555,550	)		6,106,586

Net increase (decrease) in net assets		(44,990	)		1,083,566			(4,157,203	)		(340,968	)
Net assets:
Beginning of year		3,417,126			2,333,560			14,798,677			15,139,645

End of year		$3,372,136			$3,417,126			$10,641,474			$14,798,677



214	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 High Yield Corporate ETF							Franklin Intelligent Machines ETF

	Year Ended March 31, 2023				Year Ended March 31, 2022			Year Ended March 31, 2023			Year Ended March 31, 2022

Increase (decrease) in net assets:
Operations:
Net investment income (loss)		$	12,584,791		$	16,556,505		$	166		$	(25,737	)
Net realized gain (loss)			(20,068,381	)		371,679			3,004			(667,586	)
Net change in unrealized appreciation (depreciation)			(3,626,857	)		(21,274,898	)		(810,953	)		1,481,764

Net increase (decrease) in net assets resulting from operations			(11,110,447	)		(4,346,714	)		(807,783	)		788,441

Distributions to shareholders (Note 1g)			(14,565,851	)		(17,355,367	)		—			(23,504	)

Capital share transactions: (Note 2)			(100,442,169	)		9,401,694			(1,933,835	)		—

Net increase (decrease) in net assets			(126,118,467	)		(12,300,387	)		(2,741,618	)		764,937
Net assets:
Beginning of year			334,285,831			346,586,218			11,573,816			10,808,879

End of year		$	208,167,364		$	334,285,831		$	8,832,198		$	11,573,816



franklintempleton.com	The accompanying notes are an integral part of these financial statements. \| Annual Report	215

FRANKLIN TEMPLETON ETF TRUST

FINANCIAL STATEMENTS

Statements of Changes in Net Assets (continued)


	Franklin International Aggregate Bond ETF							Franklin Investment Grade Corporate ETF

		Year Ended March 31, 2023			Year Ended March 31, 2022			Year Ended March 31, 2023			Year Ended March 31, 2022

Increase (decrease) in net assets:
Operations:
Net investment income			$ 1,741,480			$ 406,482			$ 22,025,022			$ 23,268,333
Net realized gain (loss)			3,830,774			10,960,307			(84,970,442	)		5,999,435
Net change in unrealized appreciation (depreciation)			(10,098,488	)		(18,640,042	)		(683,135	)		(69,996,857	)

Net increase (decrease) in net assets resulting from operations			(4,526,234	)		(7,273,253	)		(63,628,555	)		(40,729,089	)

Distributions to shareholders (Note 1g)			(30,078,202	)		(4,976,496	)		(24,150,574	)		(28,480,201	)

Capital share transactions: (Note 2)			116,800,375			24,812,593			(249,460,109	)		32,171,961

Net increase (decrease) in net assets			82,195,939			12,562,844			(337,239,238	)		(37,037,329	)
Net assets:
Beginning of year			193,967,805			181,404,961			981,601,827			1,018,639,156

End of year			$276,163,744			$193,967,805			$644,362,589			$ 981,601,827



216	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 Municipal Green Bond ETF							Franklin Senior Loan ETF

		Year Ended March 31, 2023			Year Ended March 31, 2022			Year Ended March 31, 2023			Year Ended March 31, 2022

Increase (decrease) in net assets:
Operations:
Net investment income			$ 2,746,059			$ 1,675,014			$ 14,352,567			$ 7,866,054
Net realized loss			(6,701,880	)		(413,327	)		(6,257,273	)		(374,967	)
Net change in unrealized appreciation (depreciation) .			2,723,264			(7,422,486	)		(5,069,428	)		(2,789,129	)

Net increase (decrease) in net assets resulting from operations			(1,232,557	)		(6,160,799	)		3,025,866			4,701,958

Distributions to shareholders (Note 1g)			(2,942,579	)		(2,038,684	)		(13,839,060	)		(6,696,117	)

Capital share transactions: (Note 2)			11,585,524			(13,082,950	)		(75,788,778	)		93,615,229

Net increase (decrease) in net assets			7,410,388			(21,282,433	)		(86,601,972	)		91,621,070
Net assets:
Beginning of year			104,938,542			126,220,975			292,722,243			201,101,173

End of year			$112,348,930			$104,938,542			$206,120,271			$292,722,243



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FRANKLIN TEMPLETON ETF TRUST

FINANCIAL STATEMENTS

Statements of Changes in Net Assets (continued)


	Franklin Systematic Style Premia ETF							Franklin U.S. Core Bond ETF

		Year Ended March 31, 2023			Year Ended March 31, 2022			Year Ended March 31, 2023			Year Ended March 31, 2022

Increase (decrease) in net assets:
Operations:
Net investment income			$ 1,063,910			$ 375,343			$ 37,200,280			$ 28,834,509
Net realized gain (loss)			(3,934,690	)		4,711,707			(77,224,065	)		(24,963,931	)
Net change in unrealized appreciation (depreciation)			4,772,274			61,304			(34,675,111	)		(78,870,127	)

Net increase (decrease) in net assets resulting from operations			1,901,494			5,148,354			(74,698,896	)		(74,999,549	)

Distributions to shareholders (Note 1g)			(2,011,501	)		(697,021	)		(36,861,021	)		(35,701,883	)

Capital share transactions: (Note 2)			35,997,633			3,879,642			113,289,466			160,065,825

Net increase (decrease) in net assets			35,887,626			8,330,975			1,729,549			49,364,393
Net assets:
Beginning of year			55,258,314			46,927,339			1,509,961,308			1,460,596,915

End of year			$91,145,940			$55,258,314			$1,511,690,857			$1,509,961,308



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

FRANKLIN TEMPLETON ETF TRUST

FINANCIAL STATEMENTS

Statements of Changes in Net Assets (continued)


	Franklin U.S. Low Volatility ETF							Franklin U.S. Treasury Bond ETF

		Year Ended March 31, 2023			Year Ended March 31, 2022			Year Ended March 31, 2023			Year Ended March 31, 2022

Increase (decrease) in net assets:
Operations:
Net investment income			$ 2,208,643			$ 2,051,655			$ 8,132,461			$ 3,222,981
Net realized gain (loss)			(1,776,637	)		17,449,280			(45,689,019	)		(939,252	)
Net change in unrealized appreciation (depreciation)			(3,376,894	)		(1,376,584	)		24,120,884			(15,335,003	)

Net increase (decrease) in net assets resulting from operations			(2,944,888	)		18,124,351			(13,435,674	)		(13,051,274	)

Distributions to shareholders (Note 1g)			(2,283,102	)		(2,063,975	)		(9,684,869	)		(6,661,686	)

Capital share transactions: (Note 2)			25,905,244			(20,946,579	)		48,333,781			5,056,701

Net increase (decrease) in net assets			20,677,254			(4,886,203	)		25,213,238			(14,656,259	)
Net assets:
Beginning of year			134,935,415			139,821,618			403,542,717			418,198,976

End of year			$155,612,669			$134,935,415			$428,755,955			$403,542,717



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FRANKLIN TEMPLETON ETF TRUST

FINANCIAL STATEMENTS

Statements of Changes in Net Assets (continued)


	Franklin Ultra Short Bond ETF

	Year Ended March 31, 2023			Year Ended March 31, 2022

Increase (decrease) in net assets:
Operations:
Net investment income		$ 75,527			$ 17,705
Net realized gain (loss)		(23,277	)		1,348
Net change in unrealized appreciation (depreciation)		18,440			(51,611	)

Net increase (decrease) in net assets resulting from operations		70,690			(32,558	)

Distributions to shareholders (Note 1g)		(62,292	)		(17,586	)

Capital share transactions: (Note 2)		(1,232,733	)		1,244,484

Net increase (decrease) in net assets		(1,224,335	)		1,194,340
Net assets:
Beginning of year		3,681,981			2,487,641

End of year		$ 2,457,646			$3,681,981



220	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-eight separate funds, fifteen of which are included in this report (Funds). The Funds follow the accounting and reporting guidance in Financial Accounting Standards Board (“FASB”) Accounting Standard Codification Topic 946, Financial Services - Investment Companies (“ASC 946”), and applies the specialized accounting and reporting guidance in U.S. Generally Accepted Accounting Principles (U.S. GAAP), including, but not limited to, ASC 946. The Funds are exchange traded funds (“ETF”) and are actively managed, thus they are not designed to track an index.

On November 19, 2021, the Franklin Liberty Federal Tax-Free Bond ETF’s Board of Trustees, approved a proposal to change the name of the Fund to Franklin Municipal Green Bond ETF, effective May 3, 2022.

On May 25, 2022, the Board of Trustees approved a proposal to change the names of the below ETFs, effective August 1, 2022:

Old name

*Franklin Liberty Investment Grade Corporate ETF

*Franklin Liberty U.S. Low Volatility ETF

*Franklin Liberty International Aggregate Bond ETF

*Franklin Liberty Senior Loan ETF

*Franklin Liberty High Yield Corporate ETF

*Franklin Liberty Systematic Style Premia ETF

*Franklin Liberty U.S. Core Bond ETF

*Franklin Liberty Ultra Short Bond ETF

*Franklin Liberty U.S. Treasury Bond ETF

New name

*Franklin Investment Grade Corporate ETF

*Franklin U.S. Low Volatility ETF

*Franklin International Aggregate Bond ETF

*Franklin Senior Loan ETF

*Franklin High Yield Corporate ETF

*Franklin Systematic Style Premia ETF

*Franklin U.S. Core Bond ETF

*Franklin Ultra Short Bond ETF

*Franklin U.S. Treasury Bond ETF

The following summarizes the Fund’s significant accounting policies.

a. Financial Instrument Valuation

The Fund’s investments in financial instruments are carried at fair value daily. Fair value is the price that would be received to sell an asset or paid to transfer a liability in an orderly transaction between market participants on the measurement date. The Fund calculates the net asset value (NAV) per share each business day as of 4 p.m. Eastern time or the regularly scheduled close of the New York Stock Exchange (NYSE), whichever is earlier. Under compliance policies and procedures approved by the Trust’s Board of Trustees (the Board), the Board has designated the Fund’s investment manager as the valuation designee and has responsibility for oversight of valuation. The investment manager is assisted by the Fund’s administrator in performing this responsibility, including leading the cross-functional Valuation Committee (VC).

The 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



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NOTES TO FINANCIAL STATEMENTS

1. Organization and Significant Accounting Policies (continued)

a. Financial Instrument Valuation (continued)

sufficient market activity may not exist or is limited, the pricing services also utilize proprietary valuation models which may consider market characteristics such as benchmark yield curves, credit spreads, estimated default rates, anticipated market interest rate volatility, coupon rates, anticipated timing of principal repayments, underlying collateral, and other unique security features in order to estimate the relevant cash flows, which are then discounted to calculate the fair value. Securities denominated in a foreign currency are converted into their U.S. dollar equivalent at the foreign exchange rate in effect at 4 p.m. Eastern time on the date that the values of the foreign debt securities are determined.

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

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

thresholds for each specific market proxy to assist in determining if an event has occurred that may call into question the reliability of the values of the foreign securities held by the Funds. If such an event occurs, the securities may be valued using fair value procedures, which may include the use of independent pricing services.

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

b. Foreign Currency Translation

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



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NOTES TO FINANCIAL STATEMENTS

1. Organization and Significant Accounting

Policies (continued)

b. Foreign Currency Translation (continued)

foreign denominated assets and liabilities other than investments in securities held at the end of the reporting period.

c. Derivative Financial Instruments

Certain or all Funds invested in derivative financial instruments in order to manage risk or gain exposure to various other investments or markets. Derivatives are financial contracts based on an underlying or notional amount, require no initial investment or an initial net investment that is smaller than would normally be required to have a similar response to changes in market factors, and require or permit net settlement. Derivatives contain various risks including the potential inability of the counterparty to fulfill their obligations under the terms of the contract, the potential for an illiquid secondary market, and/or the potential for market movements which expose the Fund to gains or losses in excess of the amounts shown in the Statement of Assets and Liabilities. Realized gain and loss and unrealized appreciation and depreciation on these contracts for the period are included in the Statement of Operations.

Derivative counterparty credit risk is managed through a formal evaluation of the creditworthiness of all potential counterparties. Certain or all Funds attempt to reduce their exposure to counterparty credit risk on OTC derivatives, whenever possible, by entering into International Swaps and Derivatives Association (ISDA) master agreements with certain counterparties. These agreements contain various provisions, including but not limited to collateral requirements, events of default, or early termination.

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

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, 2023, 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.

Collateral requirements differ by type of derivative. Collateral terms are contract specific for OTC derivatives. For OTC derivatives traded under an ISDA master agreement, posting of collateral is required by either the Fund or the applicable counterparty if the total net exposure of all OTC derivatives with the applicable counterparty exceeds the minimum transfer amount, which typically ranges from $100,000 to $250,000, and can vary depending on the counterparty and the type of agreement. Generally, collateral is determined at the close of Fund business each day and any additional collateral required due to changes in derivative values may be delivered by the Fund or the counterparty the next business day, or within a few business days. Collateral pledged and/or received by the Fund, if any, is held in segregated accounts with the Fund’s custodian/counterparty broker and can be in the form of cash and/or securities. Unrestricted cash may be invested according to the Funds’ investment objectives. To the extent that the amounts due to the Fund from its counterparties are not subject to collateralization or are not fully collateralized, the Funds bears the risk of loss from counterparty non-performance.

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 8 regarding other derivative information.

d. Securities Purchased on a When-Issued and Delayed Delivery Basis

Certain or all Funds purchase securities on a when-issued and delayed delivery basis, with payment and delivery scheduled for a future date. These transactions are subject to market fluctuations and are subject to the risk that the



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NOTES TO FINANCIAL STATEMENTS

1. Organization and Significant Accounting Policies (continued)

d. Securities Purchased on a When-Issued and Delayed Delivery Basis (continued)

value at delivery may be more or less than the trade date purchase price. Although the Funds will generally purchase these securities with the intention of holding the securities, they may sell the securities before the settlement date.

e. Senior Floating Rate Interests

Certain or all Funds invest in senior secured corporate loans that pay interest at rates which are periodically reset by reference to a base lending rate plus a spread. These base lending rates are generally the prime rate offered by a designated U.S. bank, the Secured Overnight Financing Rate (SOFR) or the London InterBank Offered Rate (LIBOR). Senior secured corporate loans often require prepayment of principal from excess cash flows or at the discretion of the borrower. As a result, actual maturity may be substantially less than the stated maturity. Senior secured corporate loans in which the Funds invest are generally readily marketable, but may be subject to certain restrictions on resale.

f. 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 Fund invests. Foreign taxes, if any, are recorded based on the tax regulations and rates that exist in the foreign markets in which the Fund invest. When a capital gain tax is determined to apply, Fund records an estimated deferred tax liability in an amount that would be payable if the securities were disposed of on the valuation date.

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.

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. Dividend income and capital gain distributions are recorded on the ex-dividend date except for certain dividends from securities where the dividend rate is not available. In such cases, the dividend is recorded as soon as the information is received by the Funds. Distributions to shareholders are recorded on the ex-dividend date. Distributable earnings are determined according to income tax regulations (tax basis) and may differ from earnings recorded in accordance with U.S. GAAP. These differences may be permanent or temporary. Permanent differences are reclassified among capital accounts to reflect their tax character. These reclassifications have no impact on net assets or the results of operations. Temporary differences are not reclassified, as they may reverse in subsequent periods.

Common expenses incurred by the Trust are allocated among the Funds based on the ratio of net assets of each Funds to the combined net assets of the Trust. Certain Fund specific expenses are allocated directly to the Fund that incurred the expense. These expenses are paid by the Fund or by the investment manager, as applicable, according to the terms of the unified management fee agreement.

h. 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.



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NOTES TO FINANCIAL STATEMENTS

1. Organization and Significant Accounting Policies (continued)

h. Insurance (continued)

There can be no assurance the insurer will be able to fulfill its obligations under the terms of the policy.

i. Accounting Estimates

j. Guarantees and Indemnifications

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

2. Shares of Beneficial Interest

At March 31, 2023, 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						Year Ended
	March 31, 2023						March 31, 2022
	Shares			Amount			Shares			Amount
Shares sold		—		$	5			—		$	157
Shares redeemed		(200,000	)		(4,312,710	)		(250,000	)		(10,442,596	)
Net increase (decrease)		(200,000	)	$	(4,312,705	)		(250,000	)	$	(10,442,439	)



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NOTES TO FINANCIAL STATEMENTS

2. Shares of Beneficial Interest (continued)


	Franklin Dynamic Municipal Bond ETF
	Year Ended						Year Ended
	March 31, 2023						March 31, 2022
	Shares			Amount			Shares			Amount
Shares sold		2,300,000		$	54,522,182			1,550,000		$	40,942,801
Shares redeemed		(1,150,000	)		(27,122,874	)		(50,000	)		(1,249,087	)

Net increase (decrease)		1,150,000		$	27,399,308			1,500,000		$	39,693,714

	Franklin Exponential Data ETF
	Year Ended						Year Ended
	March 31, 2023						March 31, 2022
	Shares			Amount			Shares			Amount
Shares sold		50,000		$	800,051			50,000		$	1,286,009

Net increase (decrease)		50,000		$	800,051			50,000		$	1,286,009

	Franklin Genomic Advancements ETF

	Year Ended						Year Ended
	March 31, 2023						March 31, 2022
	Shares			Amount			Shares			Amount
Shares sold		50,000		$	1,681,091			400,000		$	22,040,989
Shares redeemed		(100,000	)		(3,236,641	)		(350,000	)		(15,934,403	)

Net increase (decrease)		(50,000	)	$	(1,555,550	)		50,000		$	6,106,586

	Franklin High Yield Corporate ETF
	Year Ended						Year Ended
	March 31, 2023						March 31, 2022
	Shares			Amount			Shares			Amount
Shares sold		4,100,000		$	91,766,853			4,500,000		$	117,942,112
Shares redeemed		(8,400,000	)		(192,209,022	)		(4,250,000	)		(108,540,418	)

Net increase (decrease)		(4,300,000	)	$	(100,442,169	)		250,000		$	9,401,694

	Franklin Intelligent Machines ETF
	Year Ended						Year Ended
	March 31, 2023						March 31, 2022
	Shares			Amount			Shares			Amount
Shares sold		—		$	9			—		$	—
Shares redeemed		(50,000	)		(1,933,844	)		—			—

Net increase (decrease)		(50,000	)	$	(1,933,835	)		—		$	—



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NOTES TO FINANCIAL STATEMENTS

2. Shares of Beneficial Interest (continued)


	Franklin International Aggregate Bond ETF
	Year Ended						Year Ended
	March 31, 2023						March 31, 2022
	Shares			Amount			Shares			Amount
Shares sold		6,650,000		$	133,652,517			2,400,000		$	60,490,312
Shares redeemed		(750,000	)		(16,852,142	)		(1,450,000	)		(35,677,719	)

Net increase (decrease)		5,900,000		$	116,800,375			950,000		$	24,812,593

	Franklin Investment Grade Corporate ETF
	Year Ended						Year Ended
	March 31, 2023						March 31, 2022
	Shares			Amount			Shares			Amount
Shares sold		5,450,000		$	117,743,152			4,300,000		$	107,793,585
Shares redeemed		(16,800,000	)		(367,203,261	)		(2,900,000	)		(75,621,624	)

Net increase (decrease)		(11,350,000	)	$	(249,460,109	)		1,400,000		$	32,171,961

	Franklin Municipal Green Bond ETF
	Year Ended						Year Ended
	March 31, 2023						March 31, 2022
	Shares			Amount			Shares			Amount
Shares sold		1,150,000		$	27,070,685			1,200,000		$	32,661,307
Shares redeemed		(650,000	)		(15,485,161	)		(1,700,000	)		(45,744,257	)

Net increase (decrease)		500,000		$	11,585,524			(500,000	)	$	(13,082,950	)

	Franklin Senior Loan ETF
	Year Ended						Year Ended
	March 31, 2023						March 31, 2022
	Shares			Amount			Shares			Amount
Shares sold		2,200,000		$	54,475,982			5,300,000		$	132,222,340
Shares redeemed		(5,400,000	)		(130,264,760	)		(1,550,000	)		(38,607,111	)

Net increase (decrease)		(3,200,000	)	$	(75,788,778	)		3,750,000		$	93,615,229

	Franklin Systematic Style Premia ETF
	Year Ended						Year Ended
	March 31, 2023						March 31, 2022
	Shares			Amount			Shares			Amount
Shares sold		2,350,000		$	50,962,500			300,000		$	6,039,974
Shares redeemed		(700,000	)		(14,964,867	)		(100,000	)		(2,160,332	)

Net increase (decrease)		1,650,000		$	35,997,633			200,000		$	3,879,642



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NOTES TO FINANCIAL STATEMENTS

2. Shares of Beneficial Interest (continued)


	Franklin U.S. Core Bond ETF
	Year Ended March 31, 2023						Year Ended March 31, 2022
	Shares			Amount			Shares			Amount
Shares sold		13,950,000		$	306,613,085			14,950,000		$	373,614,883
Shares redeemed		(8,850,000	)		(193,323,619	)		(8,600,000	)		(213,549,058	)

Net increase (decrease)		5,100,000		$	113,289,466			6,350,000		$	160,065,825

	Franklin U.S. Low Volatility ETF
	Year Ended March 31, 2023						Year Ended March 31, 2022
	Shares			Amount			Shares			Amount
Shares sold		650,000		$	30,177,151			850,000		$	39,828,368
Shares redeemed		(100,000	)		(4,271,907	)		(1,300,000	)		(60,774,947	)

Net increase (decrease)		550,000		$	25,905,244			(450,000	)	$	(20,946,579	)

	Franklin U.S. Treasury Bond ETF
	Year Ended March 31, 2023						Year Ended March 31, 2022
	Shares			Amount			Shares			Amount
Shares sold		9,700,000		$	206,895,275			1,850,000		$	43,376,401
Shares redeemed		(7,300,000	)		(158,561,494	)		(1,600,000	)		(38,319,700	)

Net increase (decrease)		2,400,000		$	48,333,781			250,000		$	5,056,701

	Franklin Ultra Short Bond ETF
	Year Ended March 31, 2023						Year Ended March 31, 2022
	Shares			Amount			Shares			Amount
Shares sold		50,000		$	1,219,162			50,000		$	1,244,484
Shares redeemed		(100,000	)		(2,451,895	)		—			—

Net increase (decrease)		(50,000	)	$	(1,232,733	)		50,000		$	1,244,484



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3. Transactions with Affiliates



Subsidiary		Affiliation
Franklin Advisers, Inc. (Advisers)		Investment manager
Franklin Templeton Institutional, LLC (FT Institutional)		Investment manager
Franklin Templeton Investimentos (Brasil) Ltda. (FTI Brasil)		Investment manager
Franklin Templeton Investment Management Limited (FTIML)		Investment manager
Franklin Templeton Investment Trust Management Co., Ltd. (FT Korea)		Investment manager
Franklin Templeton Investments (ME) Limited (FTIME)		Investment manager
Franklin Templeton Investments Corp. (FTIC)		Investment manager
Franklin Advisory Services, LLC (FASL)		Investment manager
Templeton Asset Management Ltd. (TAML)		Investment manager
Franklin Templeton Services, LLC (FT Services)		Administrative manager
Franklin Distributors, LLC (Distributors)		Principal underwriter

a. Management Fees

For the period April 1, 2022 to November 30, 2022, Franklin Dynamic Municipal Bond ETF and Franklin Municipal Green Bond ETF Funds pay an investment management fee, calculated daily and paid monthly, 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 $50 billion



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3. Transactions with Affiliates (continued)

a. Management Fees (continued)

Effective December 1, 2022, Franklin Dynamic Municipal Bond ETF and Franklin Municipal Green Bond ETF Funds pay Advisers a unified management fee for managing the Fund’s assets, as approved by the Board. Pursuant to the investment management agreement with the Trust on behalf of the Fund effective December 1, 2022, Advisers reimburses the Fund for all acquired fund fees and expenses (such as those associated with the Fund’s investment in a Franklin Templeton money fund) and pays all of the ordinary operating expenses of the Fund, except for (i) the Fund’s management fee, (ii) payments under the Fund’s Rule 12b-1 plan (if any), (iii) brokerage expenses (including any costs incidental to transactions in portfolio securities or instruments), (iv) taxes, (v) interest (including borrowing costs and dividend expenses on securities sold short and overdraft charges), (vi) litigation expenses (including litigation to which the Trust or the Fund may be a party and indemnification of the Trustees and officers with respect thereto), and (vii) other non-routine or extraordinary expenses. The Funds pays 0.30% and 0.30% respectively per year of the average daily net assets of the Fund.

For the year ended March 31, 2023, each Fund’s annualized effective investment management fee rate based on average daily net assets was as follows:



		Annualized Fee Rate
Franklin Disruptive Commerce ETF		0.50%
Franklin Dynamic Municipal Bond ETF		0.625%
Franklin Exponential Data ETF		0.50%
Franklin Genomic Advancements ETF		0.50%
Franklin High Yield Corporate ETF		0.40%
Franklin Intelligent Machines ETF		0.50%
Franklin International Aggregate Bond ETF		0.25%
Franklin Investment Grade Corporate ETF		0.35%
Franklin Municipal Green Bond ETF		0.62%
Franklin Senior Loan ETF		0.45%
Franklin Systematic Style Premia ETF		0.65%
Franklin U.S. Core Bond ETF		0.15%
Franklin U.S. Low Volatility ETF		0.29%
Franklin U.S. Treasury Bond ETF		0.09%
Franklin Ultra Short Bond ETF		0.15%

b. Administrative Fees

Under an agreement with Advisers and FTIML, FT Services provides administrative services to the Funds. The fee is paid by Advisers and FTIML based on the Funds’ average daily net assets, and is not an additional expense of the Funds.

c. Waiver and Expense Reimbursements

For Franklin Systematic Style Premia ETF, the investment manager had 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).

For the Franklin Dynamic Municipal Bond ETF and Franklin Municipal Green Bond ETF, prior to December 1, 2022, Advisers has contractually agreed in advance to waive or limit its fees and to assume as its own expense certain expenses otherwise payable by so that the expenses (including acquired fund fees and expenses) of the Funds do not exceed 0.30%, and 0.30%, 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, 2022.



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3. Transactions with Affiliates (continued)

c. Waiver and Expense Reimbursements (continued)

Total expenses waived or paid are not subject to recapture subsequent to the Funds’ fiscal year end.

d. Investments in Affiliated Management Investment Companies

Certain or all Funds invest in one or more affiliated management investment companies. As defined in the 1940 Act, an investment is deemed to be a “Controlled Affiliate” of a fund when a fund owns, either directly or indirectly, 25% or more of the affiliated fund’s outstanding shares or has the power to exercise control over management or policies of such fund. The Funds do not invest for purposes of exercising a controlling influence over the management or policies. Management fees paid by the Funds are waived on assets invested in the affiliated management investment companies, as noted in the Statements of Operations, in an amount not to exceed the management and administrative fees paid directly or indirectly by each affiliate. During the year ended March 31, 2023, 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 ETF																Income from
Non-Controlled Affiliates																Securities loaned

Institutional Fiduciary Trust Money Market Portfolio 4.47%	$	591	$	232,016	$	(194,152	)		$—		$—	$	38,455		38,455	$—


Franklin U.S. Core Bond ETF																Income from
Non-Controlled Affiliates																Securities loaned

Institutional Fiduciary Trust Money Market Portfolio 4.47%	$	48,548,641	$	604,035,820	$	(634,962,597	)		$—		$—	$	17,621,864		17,621,864	$—


Franklin U.S. Treasury Bond ETF																Income from
Non-Controlled Affiliates																Securities loaned

Institutional Fiduciary Trust Money Market Portfolio 4.47%	$	4,633,381	$	174,859,654	$	(175,438,413	)		$—		$—	$	4,054,622		4,054,622	$—


Franklin Ultra Short Bond ETF																Income from
Non-Controlled Affiliates																Securities loaned

Institutional Fiduciary Trust Money Market Portfolio 4.47%	$	81,009	$	6,945,361	$	(6,839,152	)		$—		$—	$	187,218		187,218	$—



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NOTES TO FINANCIAL STATEMENTS

3. Transactions with Affiliates (continued)

e. Other Affiliated Transactions

At March 31, 2023, the shares of the funds were owned by the following investment entities:



Funds	Shares		Percentage of Outstanding Shares^a

Franklin Disruptive Commerce ETF
Franklin Resources Inc.		25,000		6.3%


Franklin High Yield Corporate ETF
Franklin Conservative Allocation Fund		875,658		9.5%
Franklin Moderate Allocation Fund		955,970		10.4%
Franklin 529 Portfolios		3,278,196		35.6%

		5,109,824		55.5%


Franklin Intelligent Machines ETF
Franklin Resources Inc.		20,000		10.0%


Franklin International Aggregate Bond ETF
Franklin Conservative Allocation Fund		982,641		7.0%
Franklin Moderate Allocation Fund		984,438		7.0%
Franklin 529 Portfolios		6,629,878		47.0%

		8,596,957		61.0%


Franklin Investment Grade Corporate ETF
Franklin Total Return Fund		16,060,000		53.4%
Franklin 529 Portfolios		4,441,132		14.8%

		20,501,132		68.2%

Franklin Senior Loan ETF

Franklin Total Return Fund		1,737,400		20.1%


Franklin Systematic Style Premia ETF
Franklin Conservative Allocation Fund		455,101		10.7%
Franklin Moderate Allocation Fund		759,948		17.9%
Franklin Growth Allocation Fund		561,832		13.2%
Franklin Managed Income Fund		880,000		20.7%
Franklin LifeSmart™ 2020 – 2055 Retirement Target Funds		246,120		5.8%

		2,903,001		68.3%


Franklin U.S. Core Bond ETF
Franklin Conservative Allocation Fund		8,926,541		12.8%
Franklin Moderate Allocation Fund		9,744,991		14.0%
Franklin 529 Portfolios		33,924,676		48.8%

		52,596,208		75.6%


Franklin U.S. Low Volatility ETF
Franklin Managed Income Fund		840,000		25.5%


Franklin U.S. Treasury Bond ETF
Franklin Conservative Allocation Fund		2,590,137		12.8%
Franklin Moderate Allocation Fund		2,827,622		14.0%
Franklin 529 Portfolios		9,773,633		48.4%

		15,191,392		75.2%

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



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4. Income Taxes

For tax purposes, capital losses may be carried over to offset future capital gains. At March 31, 2023, the capital loss carryforwards were as follows:



	Franklin Disruptive Commerce ETF		Franklin Dynamic Municipal Bond ETF			Franklin Exponential Data ETF		Franklin Genomic Advancements ETF
Capital loss carryforwards not subject to expiration:
Long term		$1,307,460		$ 1,815,701			$ 233,288		$ 1,530,395
Short term		8,555,411		1,849,778			646,629		6,702,473

Total capital loss carryforwards		$9,862,871		$ 3,665,479			$ 879,917		$ 8,232,868


	Franklin High Yield Corporate ETF		Franklin Intelligent Machines ETF			Franklin International Aggregate Bond ETF		Franklin Investment Grade Corporate ETF
Capital loss carryforwards not subject to expiration:
Long term		$3,817,363		$ 276,820	��		$ 4,975,582		$ 31,860,991
Short term		1,526,464		841,327			1,744,765		7,812,255

Total capital loss carryforwards		$5,343,827		$ 1,118,147			$ 6,720,347		$ 39,673,246


	Franklin Municipal Green Bond ETF		Franklin Senior Loan ETF			Franklin Systematic Style Premia ETF		Franklin U.S. Core Bond ETF
Capital loss carryforwards not subject to expiration:
Long term		$6,754,006		$ 5,689,793			$ —		$ 59,494,905
Short term		2,361,637		2,348,730			12,545,844		42,337,283

Total capital loss carryforwards		$9,115,643		$ 8,038,523			$12,545,844		$101,832,188


	Franklin U.S. Low Volatility ETF		Franklin U.S. Treasury Bond ETF			Franklin Ultra Short Bond ETF
Capital loss carryforwards not subject to expiration:
Long term		$1,297,978		$46,176,769			$ 11,610
Short term		1,732,318		11,995,030			35,267

Total capital loss carryforwards		$3,030,296		$58,171,799			$ 46,877


For tax purposes, the Funds may elect to defer any portion of late-year ordinary loss to the first day of the following year. At March 31, 2023, the deferred losses were as follows:

	Franklin Disruptive Commerce ETF		Franklin Genomic Advancements ETF			Franklin International Aggregate Bond ETF
Post October capital losses		$ —		$ —			$ —
Late-year ordinary losses		$693		$3,503			$14,879,157



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NOTES TO FINANCIAL STATEMENTS

4. Income Taxes (continued)

The tax character of distributions paid during the period ended March 31, 2023 and 2022, were as follows:


	Franklin Disruptive
	Commerce ETF
	2023		2022
Distributions paid from:
Ordinary income		$—		$206,803
Long-term Capital Gain		—		15,751
		$—		$222,554

	Franklin Dynamic Municipal
	Bond ETF
	2023		2022
Distributions paid from:
Tax exempt income		$2,737,527		$1,204,849
Ordinary income		680		—
		$2,738,207		$1,204,849

	Franklin Genomic Advance-
	ments ETF
	2023		2022
Distributions paid from Ordinary income		$—		$64,946

	Franklin High Yield
	Corporate ETF
	2023		2022
Distributions paid from:
Ordinary income		$14,565,851		$16,174,896
Long-term Capital Gain		—		1,180,471
		$14,565,851		$17,355,367

	Franklin Intelligent
	Machines ETF
	2023		2022
Distributions paid from:
Ordinary income		$—		$ 7,989
Long-term Capital Gain		—		15,515
		$—		$23,504

	Franklin International
	Aggregate Bond ETF
	2023		2022
Distributions paid from:
Ordinary income		$30,078,202		$4,976,042
Long-term Capital Gain		—		454
		$30,078,202		$4,976,496



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4. Income Taxes (continued)


	Franklin Investment Grade
	Corporate ETF
	2023		2022
Distributions paid from:
Ordinary income	$	24,150,574	$	26,432,804
Long-term Capital Gain		—		2,047,397
		$24,150,574		$28,480,201

	Franklin Municipal Green
	Bond ETF
	2023		2022
Distributions paid from Tax exempt income		$2,942,579		$2,038,684

	Franklin Senior Loan ETF
	2023		2022
Distributions paid from Ordinary income		$13,839,060		$6,696,117

	Franklin Systematic Style
	Premia ETF
	2023		2022
Distributions paid from Ordinary income		$2,011,501		$697,021

	Franklin U.S. Core Bond ETF
	2023		2022
Distributions paid from:
Ordinary income	$	36,861,021	$	32,245,500
Long-term Capital Gain		—		3,456,383
		$36,861,021		$35,701,883

	Franklin U.S. Low Vola-
	tility ETF
	2023		2022
Distributions paid from Ordinary income		$2,283,102		$2,063,975

	Franklin U.S. Treasury
	Bond ETF
	2023		2022
Distributions paid from Ordinary income		$9,684,869		$6,661,686

	Franklin Ultra Short Bond ETF
	2023		2022
Distributions paid from Ordinary income		$62,292		$17,586



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NOTES TO FINANCIAL STATEMENTS

4. Income Taxes (continued)

At March 31, 2023, the cost of investments, net unrealized appreciation (depreciation) and undistributed ordinary income for income tax purposes were as follows:


	Franklin Disruptive Commerce ETF			Franklin Dynamic Municipal Bond ETF			Franklin Exponential Data ETF			Franklin Genomic Advancements ETF
Cost of investments	$	10,944,376		$	102,988,225		$	3,694,422		$	13,259,905

Unrealized appreciation	$	608,274		$	1,046,051		$	279,789		$	400,534
Unrealized depreciation		(2,173,413	)		(4,416,155	)		(604,044	)		(3,164,064	)
Net unrealized appreciation (depreciation) .	$	(1,565,139	)	$	(3,370,104	)	$	(324,255	)	$	(2,763,530	)

Distributable earnings – undistributed ordinary income	$	—		$	3,789		$	—		$	—

Distributions earning – undistributed tax except income	$	—		$	383,140		$	—		$	—

	Franklin High Yield Corporate ETF			Franklin Intelligent Machines ETF			Franklin International Aggregate Bond ETF			Franklin Investment Grade Corporate ETF
Cost of investments	$	222,738,518		$	7,424,171		$	288,136,362		$	711,860,264

Unrealized appreciation	$	2,276,268		$	1,529,662		$	3,120,376		$	6,660,372
Unrealized depreciation		(23,829,568	)		(242,692	)		(31,094,100	)		(84,375,429	)

Net unrealized appreciation (depreciation) .	$	(21,553,300	)	$	1,286,970		$	(27,973,724	)	$	(77,715,057	)

Distributable earnings – undistributed ordinary income	$	1,665,677		$	—		$	—		$	2,247,494

	Franklin Municipal Green Bond ETF			Franklin Senior Loan ETF			Franklin Systematic Style Premia ETF			Franklin U.S. Core Bond ETF
Cost of investments	$	114,800,028		$	205,144,303		$	77,815,802		$	1,650,731,221

Unrealized appreciation	$	1,052,715		$	371,302		$	7,366,994		$	13,540,759
Unrealized depreciation		(4,544,844	)		(9,039,713	)		(3,135,452	)		(156,865,051	)
Net unrealized appreciation (depreciation) .	$	(3,492,129	)	$	(8,668,411	)	$	4,231,542		$	(143,324,292	)

Distributable earnings – undistributed ordinary income	$	641		$	1,993,569		$	1,644,062		$	4,401,235

Distributions earning – undistributed tax except income	$	397,625		$	—		$	—		$	—



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4. Income Taxes (continued)



	Franklin U.S. Low Volatility ETF			Franklin U.S. Treasury Bond ETF			Franklin Ultra Short Bond ETF
Cost of investments	$	140,357,781		$	435,673,402		$	2,468,277
Unrealized appreciation	$	19,674,900		$	3,835,677		$	720
Unrealized depreciation		(4,856,972	)		(12,492,231	)		(24,983	)
Net unrealized appreciation (depreciation)	$	14,817,928		$	(8,656,554	)	$	(24,263	)

Distributable earnings – undistributed ordinary income	$	112,309		$	1,293,431		$	13,829

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 gains/losses realized on in-kind shareholder redemptions, bond discounts and premiums, investments in FLSP Holdings Corporation 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, 2023, were as follows:



	Franklin Disruptive Commerce ETF		Franklin Dynamic Municipal Bond ETF		Franklin Exponential Data ETF		Franklin Genomic Advancements ETF
Purchases	$	4,965,595	$	86,954,924	$	1,297,374	$	3,919,168
Sales	$	5,108,946	$	57,972,235	$	556,787	$	3,719,988

	Franklin High Yield Corporate ETF		Franklin Intelligent Machines ETF		Franklin International Aggregate Bond ETF		Franklin Investment Grade Corporate ETF
Purchases	$	37,502,325	$	1,657,044	$	147,893,832	$	219,727,188
Sales	$	40,578,510	$	1,607,251	$	54,669,063	$	188,612,463

	Franklin Municipal Green Bond ETF		Franklin Senior Loan ETF		Franklin Systematic Style Premia ETF		Franklin U.S. Core Bond ETF
Purchases	$	82,241,169	$	56,459,185	$	117,814,899	$	1,136,886,010
Sales	$	70,040,799	$	128,901,083	$	96,332,748	$	994,173,598

	Franklin U.S. Low Volatility ETF		Franklin U.S. Treasury Bond ETF		Franklin Ultra Short Bond ETF
Purchases	$	43,127,809	$	601,640,535	$	1,198,399
Sales	$	42,789,197	$	553,401,416	$	2,682,818

In-kind transactions associated with creation and redemptions for the year ended March 31, 2023, were as follows:



	Franklin Disruptive Commerce ETF		Franklin Dynamic Municipal Bond ETF		Franklin Exponential Data ETF		Franklin Genomic Advancements ETF
Cost of Securities Received	$	—	$	—	$	787,615	$	1,581,290



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NOTES TO FINANCIAL STATEMENTS

5. Investment Transactions (continued)


	Franklin Disruptive Commerce ETF		Franklin Dynamic Municipal Bond ETF		Franklin Exponential Data ETF		Franklin Genomic Advancements ETF
Value of Securities Delivered^a	$	3,964,085	$	—	$	—	$	3,042,537

	Franklin High Yield Corporate ETF		Franklin Intelligent Machines ETF		Franklin International Aggregate Bond ETF		Franklin Investment Grade Corporate ETF
Cost of Securities Received	$	85,836,198	$	—	$	—	$	103,388,964
Value of Securities Delivered^a	$	187,073,192	$	1,816,647	$	—	$	360,119,827

	Franklin Municipal Green Bond ETF		Franklin Senior Loan ETF		Franklin Systematic Style Premia ETF		Franklin U.S. Core Bond ETF
Cost of Securities Received	$	1,008,638	$	—	$	—	$	—
Value of Securities Delivered^a	$	—	$	—	$	—	$	—

	Franklin U.S. Low Volatility ETF		Franklin U.S. Treasury Bond ETF		Franklin Ultra Short Bond ETF
Cost of Securities Received	$	29,744,478	$	—	$	—
Value of Securities Delivered^a	$	4,208,915	$	—	$	—

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

6. Global Credit Facility

The Funds, 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 2, 2024. 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 its/their share of fees and expenses incurred in connection with the implementation and maintenance of the Global Credit Facility, based upon their relative share of the aggregate net assets of all of the Borrowers, including an annual commitment fee of 0.15% based upon the unused portion of the Global Credit Facility. These fees are reflected in other expenses in the Statement of Operations.

During the reporting year ended March 31, 2023, the Franklin Senior Loan ETF utilized the Facility May 09, 2022 through May 18, 2022 with an average borrowing of $18,125,000; the average interest rate during the period was 1.88% and total interest paid amounted to $7,589.

7. Credit Risk and Defaulted Securities

At March 31, 2023, Franklin Dynamic Municipal Bond ETF, Franklin Municipal Green Bond ETF, Franklin High Yield Corporate ETF, Franklin Investment Grade Corporate ETF and Franklin Senior Loan ETF had 33.99%, 7.11%, 86.59%, 2.26% and 93.33%, respectively, of their portfolio invested in high yield securities, senior secured floating rate notes, or other securities rated below investment grade and unrated securities, if any. These securities may be more sensitive to economic conditions causing greater price volatility and are potentially subject to a greater risk of loss due to default than higher rated securities.

The Fund may purchase the pre-default or defaulted debt of distressed companies. Distressed companies are financially troubled and could be or are already involved in financial restructuring or bankruptcy. Risks associated with purchasing these securities include the possibility that the bankruptcy or other restructuring process takes longer than expected, or that



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7. Credit Risk and Defaulted Securities (continued)

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, 2023, Franklin Dynamic Municipal Bond ETF, Franklin High Yield Corporate ETF, and Franklin Senior Loan ETF the aggregate long value of distressed company securities for which interest recognition has been discontinued representing 0.08%, 0.85% and 0.33% of the Fund’s net assets respectively. For information as to specific securities, see the accompanying Schedule of Investments.

8. Other Derivative Information

At March 31, 2023, the Funds’ investments in derivative contracts are reflected in the Statements of Asset and Liabilities as follows:

Asset Derivatives

Liability Derivatives

Statements of Assets and
Liabilities Location

Fair Value

Statements of Assets and
Liabilities Location

Fair Value

Franklin International Aggregate Bond ETF

Foreign exchange contracts

Unrealized appreciation on OTC forward exchange contracts

$3,283,935

Unrealized depreciation on OTC forward exchange contracts

$1,171,703

Franklin Investment Grade Corporate ETF

Interest rate contracts

Variation margin on futures contracts

$ —

Variation margin on futures contracts

$ 492,300

Franklin Systematic Style Premia ETF

Foreign exchange contracts

Unrealized appreciation on OTC forward exchange contracts

$987,661

Unrealized depreciation on OTC forward exchange contracts

$ 640,675

Equity contracts

Variation margin on futures contracts

3,395,687

Variation margin on futures contracts

2,328,031

Totals

$4,383,348

$2,968,706

Franklin U.S. Core Bond ETF

Equity contracts

Variation margin on futures contracts

$ 761,513

Variation margin on futures contracts

$ —

Equity contracts

Swap contracts

77,367

Swap contracts

—

Totals

$ 838,880

$ —

For the year ended March 31, 2023, 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 International Aggregate Bond ETF

Net realized gain (loss) from:

Net change in unrealized
appreciation (depreciation) on:

Foreign exchange contracts

Forward exchange contracts

$14,179,290

Forward exchange contracts

$(2,641,891

)

Franklin Investment Grade

Corporate ETF

Net realized gain (loss) from:

Net change in unrealized
appreciation (depreciation) on:

Equity contracts

Futures contracts

$ 3,238,401

Futures contracts

$(1,363,186

)



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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 Systematic Style

Premia ETF

Net realized gain (loss) from:

Net change in unrealized
appreciation (depreciation) on:

Foreign exchange contracts

Forward exchange contracts

$ 374,378

Forward exchange contracts

$ 73,504

Equity contracts

Futures contracts

(2,669,219

)

Futures contracts

1,417,435

Equity contracts

Swap contracts

—

Swap contracts

(878

)

Totals

$(2,294,841

)

$1,490,061

Franklin U.S. Core Bond ETF

Net realized gain (loss) from:

Net change in unrealized
appreciation (depreciation) on:

Equity contracts

Futures contracts

$ 181,750

Futures contracts

$ 645,531

Interest rate contracts

Swap contracts

73,718

Swap contracts

95,395

Totals

$ 255,468

$ 740,926

For the year ended March 31, 2023, the average month end notional amount of futures contracts and average month end contract value for forward exchange contracts were as follows:



	Franklin International Aggregate Bond ETF		Franklin Investment Grade Corporate ETF		Franklin Systematic Style Premia ETF
Futures contracts		$ —		$22,805,155		$85,016,241
Forward exchange contracts		$229,679,068		$ —		$49,806,970

	Franklin U.S. Core Bond ETF
Credit default contracts		$ 6,355,384
Futures contracts		$14,760,233



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8. Other Derivative Information (continued)

At March 31, 2023, the Funds’ OTC derivative assets and liabilities are as follows:



	Gross and Net Amounts of Assets and Liabilities Presented in the Statements of Assets and Liabilities

	Assets^a		Liabilities^a
Franklin International Aggregate Bond ETF
Foreign exchange contracts		$3,283,935		$1,171,703

Franklin Systematic Style Premia ETF
Foreign exchange contracts		$987,661		$640,675

Franklin U.S. Core Bond ETF
Equity contracts		$77,367		$—

^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, 2023, the Funds’ OTC derivative assets, which may be offset against the Funds’ OTC derivative liabilities and collateral received from the counterparty, are as follows:


			Amounts Not Offset in the Statements of Assets and Liabilities

	Gross and Net Amounts of Assets Presented in the Statements of Assets and Liabilities		Financial Instruments Available for Offset			Financial Instruments Collateral Received		Cash Collateral Received		Net Amount (Not less than zero)
Franklin International Aggregate Bond ETF
Counterparty
CITI		$3,283,935		$(1,171,703	)		$ —		$ —		$2,112,232

Franklin Systematic Style Premia ETF
Counterparty
MSCO		$ 987,661		$ (640,675	)		$ —		$ —		$ 346,986
MSCS		—		—			—		—		—

Total		$ 987,661		$ (640,675	)		$ —		$ —		$ 346,986

Franklin U.S. Core Bond ETF
Counterparty
BrCd C5279		$ 77,367		$ —			$ —		$ —		$ 77,367



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8. Other Derivative Information (continued)

At March 31, 2023, the Funds’ OTC derivative liabilities, which may be offset against the Funds’ OTC derivative assets and collateral pledged to the counterparty, are as follows:



			Amounts Not Offset in the Statements of Assets and Liabilities

	Gross and Net Amounts of Liabilities Presented in the Statements of Assets and Liabilities		Financial Instruments Available for Offset			Financial Instruments Collateral Pledged		Cash Collateral Pledged		Net Amount (Not less than zero)
Franklin International Aggregate Bond ETF
Counterparty
CITI		$1,171,703		$(1,171,703	)		$—		$—		$—

Franklin Systematic Style Premia ETF
Counterparty
MSCO		$ 640,675		$ (640,675	)		$—		$—		$—

^aIn some instances, the collateral amounts disclosed in the table above were adjusted due to the requirement to limit collateral amounts to avoid the effect of overcollateralization. Actual collateral received and/or pledged may be more than the amounts disclosed herein.

See Note 1(c) regarding derivative financial instruments.

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, 2023, in valuing the Funds’ assets and liabilities carried at fair value, is as follows:



	Level 1		Level 2		Level 3		Total

Franklin Disruptive Commerce ETF

Assets:
Investments in Securities:^a
Equity Investments^b	$	9,379,237	$	—	$	—	$	9,379,237


Franklin Dynamic Municipal Bond ETF

Assets:
Investments in Securities:^a
Senior Floating Rate Interest	$	—	$	—	$	512,502	$	512,502
Municipal Bonds		—		99,105,619		—		99,105,619

Total Investments in Securities	$	—	$	99,105,619	$	512,502	$	99,618,121



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9. Fair Value Measurements (continued)



	Level 1		Level 2		Level 3		Total

Franklin Exponential Data ETF

Assets:
Investments in Securities:^a
Equity Investments^b	$	3,331,712	$	—	$	—	$	3,331,712
Short-Term Investments		38,455		—		—		38,455

Total Investments in Securities	$	3,370,167	$	—	$	—	$	3,370,167


Franklin Genomic Advancements ETF

Assets:
Investments in Securities:^a
Equity Investments^b	$	10,496,375	$	—	$	—^c	$	10,496,375


Franklin High Yield Corporate ETF

Assets:
Investments in Securities:^a
Corporate Bonds & Notes	$	—	$	186,671,340	$	—^c	$	186,671,340
Senior Floating Rate Interests		—		8,218,878		—		8,218,878
U.S. Government & Agency Securities		—		6,295,000		—		6,295,000

Total Investments in Securities	$	—	$	201,185,218	$	—	$	201,185,218


Franklin Intelligent Machines ETF

Assets:
Investments in Securities:^a
Equity Investments^b	$	8,711,141	$	—	$	—	$	8,711,141


Franklin International Aggregate Bond ETF

Assets:
Investments in Securities:^a
Foreign Government and Agency Securities	$	—	$	235,227,863	$	—	$	235,227,863
Corporate Bonds & Notes		—		10,924,775		—		10,924,775
U.S. Government & Agency Securities		—		14,010,000		—		14,010,000

Total Investments in Securities	$	—	$	260,162,638	$	—	$	260,162,638

Other Financial Instruments:
Forward Exchange Contracts	$	—	$	3,283,935	$	—	$	3,283,935


Liabilities:
Other Financial Instruments:
Forward Exchange Contracts	$	—	$	1,171,703	$	—	$	1,171,703


Franklin Investment Grade Corporate ETF

Assets:
Investments in Securities:^a
Corporate Bonds & Notes	$	—	$	621,523,828	$	—	$	621,523,828
U.S. Government & Agency Securities		—		12,621,379		—		12,621,379

Total Investments in Securities	$	—	$	634,145,207	$	—	$	634,145,207


Liabilities:
Other Financial Instruments:
Futures Contracts	$	492,300	$	—	$	—	$	492,300


Franklin Municipal Green Bond ETF

Assets:
Investments in Securities:^a
Municipal Bonds	$	—	$	111,307,899	$	—	$	111,307,899



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NOTES TO FINANCIAL STATEMENTS

9. Fair Value Measurements (continued)



	Level 1		Level 2		Level 3		Total

Franklin Senior Loan ETF

Assets:
Investments in Securities:^a
Corporate Bonds & Notes	$	—	$	9,018,317	$	—	$	9,018,317
Senior Floating Rate Interests		—		183,451,659		—		183,451,659
Asset-Backed Securities		—		1,865,916		—		1,865,916
U.S. Government & Agency Securities		—		2,140,000		—		2,140,000

Total Investments in Securities	$	—	$	196,475,892	$	—	$	196,475,892


Franklin Systematic Style Premia ETF

Assets:
Investments in Securities:^a
Equity Investments	$	56,701,100	$	—	$	—	$	56,701,100
Short-Term Investments		25,346,244		—		—		25,346,244

Total Investments in Securities	$	82,047,344	$	—	$	—	$	82,047,344

Other Financial Instruments:
Forward Exchange Contracts	$	—	$	987,661	$	—	$	987,661
Futures Contracts		3,395,678		—		—		3,395,678

Total Other Financial Instruments	$	3,395,678	$	987,661	$	—	$	4,383,339


Liabilities:
Other Financial Instruments:
Forward Exchange Contracts	$	—	$	640,675	$	—	$	640,675
Futures Contracts		2,328,031		—		—		2,328,031

Total Other Financial Instruments	$	2,328,031	$	640,675	$	—	$	2,968,706


Franklin U.S. Core Bond ETF

Assets:
Investments in Securities:^a
Corporate Bonds & Notes	$	—	$	378,259,085	$	—	$	378,259,085
Municipal Bonds		—		46,294,128		—		46,294,128
Mortgage-Backed Securities		—		299,443,106		—		299,443,106
Foreign Government and Agency Securities		—		18,017,686		—		18,017,686
Asset-Backed Securities		—		41,862,308		—		41,862,308
U.S. Government & Agency Securities		—		705,908,752		—		705,908,752
Short-Term Investments		17,621,864		—		—		17,621,864

Total Investments in Securities	$	17,621,864	$	1,489,785,065	$	—	$	1,507,406,929

Other Financial Instruments:
Futures Contracts	$	761,513	$	—	$	—	$	761,513
Credit Default Swap Contracts		—		77,367		—		77,367

Total Other Financial Instruments	$	761,513	$	77,367	$	—	$	838,880


Franklin U.S. Low Volatility ETF

Assets:
Investments in Securities:^a
Equity Investments^b	$	154,305,709	$	—	$	—	$	154,305,709
U.S. Government & Agency Securities		—		870,000		—		870,000

Total Investments in Securities	$	154,305,709	$	870,000	$	—	$	155,175,709



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NOTES TO FINANCIAL STATEMENTS

9. Fair Value Measurements (continued)



	Level 1		Level 2		Level 3		Total

Franklin U.S. Treasury Bond ETF

Assets:
Investments in Securities:^a
U.S. Government & Agency Securities	$	—	$	422,962,226	$	—	$	422,962,226
Short-Term Investments		4,054,622		—		—		4,054,622

Total Investments in Securities	$	4,054,622	$	422,962,226	$	—	$	427,016,848


Franklin Ultra Short Bond ETF

Assets:
Investments in Securities:^a
Corporate Bonds & Notes	$	—	$	2,056,710	$	—	$	2,056,710
Asset-Backed Securities		—		200,086		—		200,086
Short-Term Investments		187,218		—		—		187,218

Total Investments in Securities	$	187,218	$	2,256,796	$	—	$	2,444,014

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

^bIncludes common and convertible preferred stocks.

^cIncludes securities determined to have no value at March 31, 2023.

10. Investments in FLSP Holdings Corporation

Franklin Systematic Style Premia ETF, (the “Fund”), invests in certain financial instruments and commodities/or commodity-linked derivative investments. The FLSP Holdings Corporation is a Cayman Islands exempted company with limited liability, is a wholly-owned subsidiary of the Fund, and is able to invest in certain financial instruments and/or commodity-linked derivative investments consistent with the investment objective of the Fund. At March 31, 2023, the Franklin Systematic Style Premia ETF investment(s) FLSP Holdings Corporation is reflected in the Fund’s Consolidated Schedule of Investments. At March 31, 2023, the net assets of the FLSP Holdings Corporation were $1,921,896, representing 2.11% of the Fund’s consolidated net assets. The Fund’s investment(s) in the FLSP Holdings Corporation is limited to 25% of consolidated assets.

11. New Accounting Pronouncements

In March 2020, the Financial Accounting Standards Board (FASB) issued Accounting Standards Update (ASU) No. 2020-04, Reference Rate Reform (Topic 848) – Facilitation of the Effects of Reference Rate Reform on Financial Reporting. In January 2021 and December 2022, the FASB issued ASU No. 2021-01 and ASU No. 2022-06, with further amendments to Topic 848. The amendments in the ASUs provide optional temporary accounting recognition and financial reporting relief from the effect of certain types of contract modifications due to the planned discontinuation of the London Interbank Offered Rate (LIBOR) and other interbank-offered based reference rates as of the end of 2021 for certain LIBOR settings and 2023 for the remainder. The ASUs are effective for certain reference rate-related contract modifications that occur during the period March 12, 2020 through December 31, 2024. Management has reviewed the requirements and believes the adoption of these ASUs will not have a material impact on the financial statements.

In June 2022, the Financial Accounting Standards Board (FASB) issued Accounting Standards Update (ASU) No. 2022-03, Fair Value Measurement (Topic 820) – Fair Value Measurement of Equity Securities Subject to Contractual Sale Restrictions. The amendments in the ASU clarify that a contractual restriction on the sale of an equity security is not considered part of the unit of account of the equity security and, therefore, should not be considered in measuring fair value. The ASU is effective for interim and annual reporting periods beginning after December 15, 2023, with the option of early adoption. Management has reviewed the requirements and believes that the adoption of the ASU will not have a material impact on the financial statements.

12. Subsequent Events

The Funds have evaluated subsequent events through the issuance of these Financial Statements and determined that no events have occurred that require disclosure.



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NOTES TO FINANCIAL STATEMENTS

Abbreviations


Selected Portfolio		Currency		Counterparty
ADR	American Depositary Receipt	AUD	Australian Dollar	CITI	CITIBANK
CAC	Cotation Assistée en Continu	CAD	Canadian Dollar	MSCO	Morgan Stanley
CLO	Collateralized Loan Obligation	CNY	Chinese Yuan Renminbi	MSCS	Morgan Stanley Capital Services Inc.
CSCDA	California Statewide Communities	DKK	Danish Krone
	Development Authority	EUR	Euro
FRN	Floating Rate Note	GBP	United Kingdom Pound
LIBOR	London InterBank Offered Rate	JPY	Japanese Yen
OAT	Obligation Assumable by the Treasurer	MXN	Mexican Peso
REIT	Real Estate Investment Trust	PLN	Polish Zloty
SBA	Small Business Administration	SEK	Swedish Krona
SOFR	Secured Overnight Financing Rate	USD	United States Dollar
TBD	To be determined
ULSD	Ultra-Low Sulfur Diesel
USD	Unified/Union School District



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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 Dynamic Municipal Bond ETF, Franklin Exponential Data ETF, Franklin Genomic Advancements ETF, Franklin High Yield Corporate ETF, Franklin Intelligent Machines ETF, Franklin International Aggregate Bond ETF, Franklin Investment Grade Corporate ETF, Franklin Municipal Green Bond ETF, Franklin Senior Loan ETF, Franklin Systematic Style Premia ETF, Franklin U.S. Core Bond ETF, Franklin U.S. Low Volatility ETF, Franklin U.S. Treasury Bond ETF and Franklin Ultra Short Bond ETF

Opinions on the Financial Statements

We have audited the accompanying statements of assets and liabilities, including the schedules of investments, of each of the funds listed in the table below (fifteen of the funds constituting Franklin Templeton ETF Trust, hereafter collectively referred to as the (“Funds”) as of March 31, 2023, 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, 2023, the results of each of their operations and the changes in each of their net assets for each of the periods indicated in the table below, 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 Disruptive Commerce ETF⁽¹⁾

Franklin Dynamic Municipal Bond ETF⁽¹⁾

Franklin Exponential Data ETF⁽¹⁾

Franklin Genomic Advancements ETF⁽¹⁾

Franklin High Yield Corporate ETF⁽¹⁾

Franklin Intelligent Machines ETF⁽¹⁾

Franklin International Aggregate Bond ETF⁽¹⁾

Franklin Investment Grade Corporate ETF⁽¹⁾

Franklin Municipal Green Bond ETF⁽¹⁾

Franklin Senior Loan ETF⁽¹⁾

Franklin Systematic Style Premia ETF⁽²⁾

Franklin U.S. Core Bond ETF⁽¹⁾

Franklin U.S. Low Volatility ETF⁽¹⁾

Franklin U.S. Treasury Bond ETF⁽¹⁾

Franklin Ultra Short Bond ETF⁽¹⁾

⁽¹⁾ Statement of assets and liabilities, including the schedule of investments as of March 31, 2023, statement of operations for the year ended March 31, 2023, the statements of changes in net assets for the years ended March 31, 2023 and 2022, and the financial highlights for each of the periods indicated therein.

⁽²⁾ Consolidated statement of assets and liabilities, including the consolidated schedule of investments as of March 31, 2023, consolidated statement of operations for the year ended March 31, 2023, the consolidated statements of changes in net assets for the years ended March 31, 2023 and 2022, and the consolidated financial highlights for the years ended March 31, 2023, 2022 and 2021, and the period December 18, 2019 (commencement of operations) to March 31, 2020.



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Report of Independent Registered Public Accounting Firm (continued)

Basis for Opinions

PricewaterhouseCoopers LLP

San Francisco, California

May 23, 2023

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)

The following tax information for the Funds is required to be furnished to shareholders with respect to the income earned and distributions paid during their fiscal year.

The Funds below hereby report the following amounts, or if subsequently determined to be different, the maximum allowable amounts, for the fiscal year ended March 31, 2023:



	Pursuant to:		Franklin Disruptive Commerce ETF		Franklin Dynamic Municipal Bond ETF		Franklin Exponential Data ETF		Franklin Genomic Advancements ETF
Exempt-Interest Dividends		§852(b)(5)(A)		$—		$2,737,527		$—		$—

	Pursuant to:		Franklin High Yield Corporate ETF		Franklin Intelligent Machines ETF		Franklin International Aggregate Bond ETF		Franklin Investment Grade Corporate ETF
Interest-Related Dividends		§871(k)(1)(C)		$11,206,691		$—		$ 306,110		$20,101,451
Short-Term Capital Gain Dividends		§871(k)(2)(C)		$ 1,017,525		$—		$ —		$ —
Section 163(j) Interest Dividends		§163(j)		$13,195,158		$—		$3,386,220		$24,150,574

	Pursuant to:		Franklin Municipal Green Bond ETF		Franklin Senior Loan ETF		Franklin Systematic Style Premia ETF		Franklin U.S. Core Bond ETF
Exempt-Interest Dividends		§852(b)(5)(A)		$2,942,579		$ —		$ —		$ —
Dividends Received Deduction (DRD)		§854(b)(1)(A)		$ —		$ —		$ 534,002		$ —
Qualified Dividend Income (QDI)		§854(b)(1)(B)		$ —		$ —		$1,049,667		$ —
Interest-Related Dividends		§871(k)(1)(C)		$ —		$13,839,060		$ —		$33,786,810
Section 163(j) Interest Dividends		§163(j)		$ —		$13,839,060		$ —		$36,861,021

			Pursuant to:		Franklin U.S. Low Volatility ETF		Franklin U.S. Treasury Bond ETF		Franklin Ultra Short Bond ETF
Dividends Received Deduction (DRD)				§854(b)(1)(A)		$2,283,102		$ —		$ —
Qualified Dividend Income (QDI)				§854(b)(1)(B)		$2,283,102		$ —		$ —
Interest-Related Dividends				§871(k)(1)(C)		$ —		$9,684,869		$38,006
Section 163(j) Interest Dividends				§163(j)		$ —		$9,684,869		$42,350



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Tax information (unaudited) (continued)



	Franklin International Aggregate Bond ETF
Foreign Taxes Paid		$	1,092
Foreign Source Income		$	2,684,736



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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	59	AssetMark Financial Holdings, Inc. (investment solutions) (2018-present) and PhonePe (2020-present) (payment and financial services); formerly, Axis Bank (financial) (2013- 2021), FlipKart Limited (2019-2020) (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	59	S&P Global, Inc. (financial information services) (February 2022), Borg Warner (automotive) (2018-present), LegalShield (consumer services) (2020-present); and formerly, IHS Markit (information services) (2015-2022), 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	59	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	70	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, of some of the other subsidiaries of Franklin Resources, Inc. and of certain funds in the Franklin Templeton/Legg Mason fund complex; 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 certain funds in the Franklin Templeton/Legg Mason fund complex.

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; Assistant Secretary, Franklin Distributors, LLC; and officer of certain funds in the Franklin Templeton/Legg Mason fund complex.

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 certain funds in the Franklin Templeton/Legg Mason fund complex; andformerly, Vice President, Global Tax (2012-April 2017) and Treasurer/Assistant Treasurer, Franklin Templeton (2009-2017).

Fred Jensen (1963) 620 Eighth Avenue, 47th Floor New York, NY 10018	Chief Compliance Officer	Since 2021	Not Applicable	Not Applicable

Principal Occupation During at Least the Past 5 Years:
Director - Global Compliance of Franklin Templeton; Managing Director of Legg Mason & Co.; Director of Compliance, Legg Mason Office of the Chief Compliance Officer; Chief Compliance Officer, Franklin Advisory Services, LLC; Compliance Officer, Franklin Advisers, Inc.; officer of certain funds in the Franklin Templeton/Legg Mason fund complex; formerly, Chief Compliance Officer of Legg Mason Global Asset Allocation; Chief Compliance Officer, Legg Mason Private Portfolio; Chief Compliance Officer to The Reserves Funds (investment adviser, funds and broker-dealer) and Ambac Financial Group (investment adviser, funds and broker-dealer).

Susan Kerr (1949) 620 Eighth Avenue New York, NY 10018	Vice President - AML Compliance	Since 2021	Not Applicable	Not Applicable

Principal Occupation During at Least the Past 5 Years:
Senior Compliance Analyst, Franklin Templeton; Chief Anti-Money Laundering Compliance Officer, Legg Mason & Co., or its affiliates; Anti Money Laundering Compliance Officer; Senior Compliance Officer, LMIS; and officer of certain funds in the Franklin Templeton/Legg Mason fund complex.

Todd Mathias (1983) One Franklin Parkway, San Mateo, Ca 94403-1906	Vice President	Since March 2022	Not Applicable	Not Applicable

Principal Occupation During at Least the Past 5 Years:
Head of US ETF Product Strategy, Franklin Templeton; and officer of certain funds in the Franklin Templeton/Legg Mason fund complex.



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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.; and officer of certain funds in the Franklin Templeton/Legg Mason fund complex.

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 certain funds in the Franklin Templeton/Legg Mason fund complex.

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:
Senior Associate General Counsel, Franklin Templeton; and officer of certain funds in the Franklin Templeton/Legg Mason fund complex.

Lori A. Weber (1964) 300 S.E. 2nd Street Fort Lauderdale, FL 33301-1923	Vice President and Secretary	Vice President since 2011 and Secretary since 2013	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 certain funds in the Franklin Templeton/Legg Mason fund complex.

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

Board Approval of Investment

Management Agreements

FRANKLIN TEMPLETON ETF TRUST

Franklin Dynamic Municipal Bond ETF

Franklin Municipal Green Bond ETF

(each a Fund)

At a meeting held on November 18, 2022 (Meeting), the Board of Trustees (Board) of Franklin Templeton ETF Trust (Trust), including a majority of the trustees who are not “interested persons” as defined in the Investment Company Act of 1940 (Independent Trustees), reviewed and approved an amended and restated investment management agreement between Franklin Advisers, Inc. (Manager) and the Trust, on behalf of each Fund (each an Amended Management Agreement) to adopt a unified management fee (Unified Fee) effective on or about December 1, 2022. The Independent Trustees received advice from and met separately with Independent Trustee counsel in considering whether to approve each Amended Management Agreement.

In considering the approval of each Amended Management Agreement, the Board reviewed and considered information provided by the Manager at the Meeting, and throughout the year at meetings of the Board and its committees. The Board reviewed and considered all of the factors it deemed relevant in approving each Amended Management Agreement, including, but not limited to: (i) the nature, extent and quality of the services provided by the Manager; and (ii) the costs of the services to be provided by the Manager. The Board also reviewed and considered the form of Amended Management Agreement and the terms of each Amended Management Agreement, which were explained at the Meeting, noting that, with the exception of the proposed unified fee structure, the form of Amended Management Agreement was substantially the same as each Fund’s current investment management agreement, and that the Unified Fee is consistent with the unified fee structure of other series of the Trust. The Board noted management’s explanation that it was relying on and had complied with the conditions of prior no-action relief that had been granted to another fund complex and investment adviser confirming that the Securities and Exchange Commission would not recommend enforcement action if an investment advisory agreement was amended without a shareholder vote to establish a unified fee.

In approving each Amended Management Agreement, the Board, including a majority of the Independent Trustees,

determined that the terms of the Amended Management Agreement are fair and reasonable and that such Amended Management Agreement is in the best interests of each respective 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 to each Fund and its shareholders. This information included, among other things, management’s representation that each Amended Management Agreement will not reduce or modify in any way the nature, extent and quality of the services currently provided to each Fund. Following consideration of such information, the Board was satisfied with the nature, extent and quality of services to be provided by the Manager to each Fund and its shareholders under the Fund’s Amended Management Agreement.

Fund Performance

The Board noted its review and consideration of and conclusions made regarding the performance results of each Fund in connection with the May 2022 annual contract renewal (Annual Contract Renewal) of the Fund’s investment management agreement and at regular Board meetings throughout the year

Comparative Fees and Expenses

The Board reviewed and considered information regarding the proposed Unified Fee. In particular, the Board noted management’s representation that the total advisory fee paid to the Manager pursuant to the Amended Management Agreement would not exceed the advisory fee payable under the Fund’s current investment management agreement. The Board also noted management’s representation that each Fund’s net operating expenses under the Unified Fee are expected to be the same as such Fund’s current net operating expenses after expense waivers and reimbursements because the Manager has capped ordinary expenses at the same rate as the Fund’s management fee. The Board considered that pursuant to each Fund’s Amended Management Agreement, the Manager shall reimburse each Fund for all of its acquired fund fees and expenses (if any) and pay all of the ordinary operating expenses of the Fund, except for (i) the Fund’s Unified Fee, (ii) payments under the Fund’s Rule 12b-1 plan (if any), (iii) brokerage expenses (including any costs incidental to transactions in portfolio securities or instruments), (iv) taxes, (v) interest (including borrowing costs and dividend expenses on securities sold



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SHAREHOLDER INFORMATION

short and overdraft charges), (vi) litigation expenses (including litigation to which the Trust or the Fund may be a party and indemnification of the Trustees and officers with respect thereto), and (vii) other non-routine or extraordinary expenses (such arrangement, the Unified Fee). The Board concluded that the proposed Unified Fee for each Fund is reasonable.

Management Profitability and Economies of Scale

The Board noted management’s representation that changing to the Unified Fee would not result in any increase to the management fee the Manager receives from each Fund. The Board determined that its conclusions regarding profitability and economies of scale reached in connection with each Fund’s Annual Contract Renewal of the investment management agreement with the Manager had not changed as a result of the proposal to approve each Amended Management Agreement.

Conclusion

Based on its review, consideration and evaluation of all factors it believed relevant, including the above-described factors and conclusions, the Board unanimously approved each Amended Management Agreement for the respective Fund for an initial two-year period.

Board Approval of Investment

Management Agreements

FRANKLIN TEMPLETON ETF TRUST

Franklin U.S. Core Bond ETF

(Fund)

At a meeting held on March 3, 2023 (Meeting), the Board of Trustees (Board) of Franklin Templeton ETF Trust (Trust), including a majority of the trustees who are not “interested persons” as defined in the Investment Company Act of 1940 (Independent Trustees), reviewed and approved a new investment sub-advisory agreement between Franklin Advisers, Inc. (Manager), the Fund’s investment manager, and Franklin Templeton Institutional, LLC (Sub-Adviser), an affiliate of the Manager, on behalf of the Fund (Sub-Advisory 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 Sub-Advisory Agreement.

The Board reviewed and considered information provided by the Manager at the Meeting with respect to the Sub-Advisory Agreement. The Board also reviewed and considered the factors it deemed relevant in approving the Sub-Advisory

Agreement, including, but not limited to: (i) the nature, extent, and quality of the services to be provided by the Sub-Adviser; and (ii) the costs of the services to be provided by the Sub-Adviser. The Board further reviewed and considered information provided by management showing the expected impact of hiring the Sub-Adviser on the Manager’s profitability consistent with the Order (as defined below). The Board also considered that management proposed that the Board approve the Sub-Advisory Agreement in order to facilitate portfolio management team changes, effective March 2023. The Board reviewed and further considered the form of Sub-Advisory Agreement and the terms of the Sub-Advisory Agreement, which were discussed at the Meeting, noting that the terms and conditions of the Sub-Advisory Agreement were substantially identical to the terms and conditions of sub-advisory agreements for other Franklin Templeton (“FT”) mutual funds.

In approving the Sub-Advisory Agreement, the Board, including a majority of the Independent Trustees, determined that the hiring of the Sub-Adviser is in the best interests of the Fund and its shareholders and does not involve a conflict of interest from which the Manager or Sub-Adviser derives an inappropriate advantage. The Board also determined that the terms of the Sub-Advisory Agreement are fair and reasonable. 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 Sub-Adviser and currently being provided by the Manager and its affiliates to the Fund and its shareholders. In doing so, the Board noted that the Fund employs a “manager of managers” structure pursuant to an exemptive order (Order) granted to the Manager by the U.S. Securities and Exchange Commission, whereby the Manager and the Fund may, without shareholder approval, enter into sub-advisory agreements with sub-advisers that are indirect or direct wholly owned subsidiaries of Franklin Resources, Inc. (FRI). In particular, with respect to the Sub-Adviser, the Board took into account that the new portfolio manager proposed to serve as a portfolio manager for the Fund is an employee of the Sub-Adviser. The Board reviewed and considered information regarding the nature, quality and extent of investment sub-advisory services to be provided by the Sub-Adviser to the Fund and its shareholders under the Sub-Advisory Agreement; the Sub-Adviser’s experience as a manager of other funds and



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FRANKLIN TEMPLETON ETF TRUST

SHAREHOLDER INFORMATION

accounts, including those within the FT organization; the personnel, operations, financial condition, and investment management capabilities, methodologies and resources of the Sub-Adviser and the Sub-Adviser’s capabilities, as demonstrated by, among other things, its policies and procedures reasonably designed to prevent violations of the federal securities laws.

The Board also reviewed and considered the benefits provided to Fund shareholders of investing in a fund that is part of the FT family of funds. The Board noted the financial position of FRI, the parent of the Manager and the Sub-Adviser, and its commitment to the mutual fund business as evidenced by its reassessment of fund offerings in response to the market environment and project initiatives and capital investments relating to the services provided to the Fund by the FT organization. The Board specifically noted FT’s commitment to being a global leader in stewardship and sustainability.

Following consideration of such information, the Board was satisfied with the nature, extent and quality of services to be provided by the Sub-Adviser to the Fund and its shareholders.

Fund Performance

The Board noted its review and consideration of and conclusions made regarding the performance results of the Fund in connection with the May 2022 annual contract renewal (Annual Contract Renewal) of the Fund’s investment management agreement and at regular Board meetings throughout the year. The Board further noted that there was no performance of the Sub-Adviser to evaluate with respect to the Fund as the Sub-Adviser had not yet provided any services to the Fund.

Comparative Fees and Expenses

The Board reviewed and considered information regarding the investment sub-advisory fee to be charged by the Sub-Adviser. The Board noted that the addition of the Sub-Adviser will have no impact on the amount of management fees that are currently paid by the Fund as the Sub-Adviser will be paid by the Manager out of the management fee that the Manager receives from the Fund. The Board further noted that the allocation of the fee between the Manager and the Sub-Adviser reflected the services to be provided by the Sub-Adviser. The Board concluded that the proposed investment sub-advisory fee to be paid to the Sub-Adviser is reasonable.

Management Profitability and Economies of Scale

The Board noted management’s belief that the Manager’s profitability is not expected to materially change as a result of the addition of the Sub-Adviser. The Board determined that its conclusions regarding profitability and economies of scale reached in connection with the Annual Contract Renewal of the investment management agreement with the Manager had not changed as a result of the proposal to approve the Sub-Advisory Agreement.

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 Sub-Advisory Agreement for an initial two-year period.

Proxy Voting Policies and Procedures

Quarterly Schedule of Investments

Premium/Discount Information



256	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, 2023



Franklin FTSE Asia ex Japan ETF		Franklin FTSE Italy ETF

Franklin FTSE Australia ETF		Franklin FTSE Japan ETF

Franklin FTSE Brazil ETF		Franklin FTSE Japan Hedged ETF

Franklin FTSE Canada ETF		Franklin FTSE Latin America ETF

Franklin FTSE China ETF		Franklin FTSE Mexico 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



Contents

Annual Report

Economic and Market Overview			2

Franklin FTSE Asia ex Japan ETF			3

Franklin FTSE Australia ETF			9

Franklin FTSE Brazil ETF			15

Franklin FTSE Canada ETF			21

Franklin FTSE China ETF			27

Franklin FTSE Europe ETF			33

Franklin FTSE Europe Hedged ETF			39

Franklin FTSE France ETF			46

Franklin FTSE Germany ETF			52

Franklin FTSE Hong Kong ETF			58

Franklin FTSE India ETF			64

Franklin FTSE Italy ETF			70

Franklin FTSE Japan ETF			76

Franklin FTSE Japan Hedged ETF			82

Franklin FTSE Latin America ETF			88


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


Franklin FTSE Mexico ETF		94

Franklin FTSE Saudi Arabia ETF		100

Franklin FTSE South Africa ETF		106

Franklin FTSE South Korea ETF		112

Franklin FTSE Switzerland ETF		118

Franklin FTSE Taiwan ETF		124

Franklin FTSE United Kingdom ETF		130

Financial Highlights and Schedules of Investments		136

Financial Statements		304

Notes to Financial Statements		327

Report of Independent Registered Public Accounting Firm		356

Tax Information		357

Board Members and Officers		359

Shareholder Information		362



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



franklintempleton.com	Annual Report	1

ANNUAL REPORT

Economic and Market Overview

In the U.S., gross domestic product (GDP) recovered from a slight contraction during the first half of the year, expanding in the second half of 2022 amid rising government spending and private investment. The labor market remained strong, as hiring continued at a brisk pace and unemployment reached its lowest level in over 50 years. In an effort to control inflation, the U.S. Federal Reserve (Fed) raised the federal funds target rate at each of its eight meetings during the period to end at a range of 4.75%–5.00%, a full 450 basis points higher than at the beginning of the period. Furthermore, the Fed indicated it would continue to reduce its U.S. Treasury and agency debt and mortgage-backed security holdings.

Economic growth in the eurozone was tepid during 2022, ending with zero growth in the fourth quarter. The ongoing war in Ukraine disrupted supply chains, weakened the economic outlook and contributed to record high inflation across the eurozone, as energy prices soared in the first half of the period. However, governments spent significant sums to subsidize consumers and find alternative supplies. Consequently, the price of natural gas in Europe declined notably in the period’s second half, providing a tailwind for European stocks. The European Central Bank increased interest rates in July 2022 for the first time in 11 years to curtail growing inflation and further raised rates in five subsequent meetings. In this environment, European developed market equities, as measured by the MSCI Europe Index-NR, posted a +1.38% total return for the 12 months under review.¹

1. Source: Morningstar.

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



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, 2023.

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.


Top 10 Sectors/Industries

3/31/23

	% of Total Net Assets


Banks		11.4%


Semiconductors & Semiconductor Equipment		10.0%


Interactive Media & Services		6.4%


Technology Hardware, Storage & Peripherals		5.8%


Insurance		4.4%


Oil, Gas & Consumable Fuels		3.8%


Internet & Direct Marketing Retail		3.5%


Hotels, Restaurants & Leisure		3.4%


Real Estate Management & Development		3.4%


Electronic Equipment, Instruments & Components		3.3%

Performance Overview

During the 12-month period, the Fund posted cumulative total returns of -8.16% based on market price and -9.10% based on net asset value. In comparison, the FTSE Asia ex Japan Capped Index posted a -9.08% total return for the same period.² You can find more of the Fund’s performance data in the Performance Summary beginning on page 5.

Investment Strategy

The Fund, using a “passive” or indexing investment approach, seeks investment results that closely correspond, before fees and expenses, to the performance of the FTSE Asia ex Japan Capped Index. The Fund may use either a replication strategy or representative sampling strategy. Under a replication strategy, the Fund will 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, it may not be possible or practicable to replicate the Underlying Index. In these circumstances, we may use a representative sampling strategy whereby we will 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 Schedule of Investments (SOI). The SOI begins on page 137.



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FRANKLIN FTSE ASIA EX JAPAN ETF


Top 10 Holdings

3/31/23

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		4.7%


Samsung Electronics Co. Ltd. Technology Hardware, Storage & Peripherals, South Korea		4.3%


Alibaba Group Holding Ltd., Class A Internet & Direct Marketing Retail, China		3.0%


AIA Group Ltd. Insurance, Hong Kong		2.0%


Reliance Industries Ltd. Oil, Gas & Consumable Fuels, India		1.5%


Meituan, Class B Hotels, Restaurants & Leisure, China		1.4%


Infosys Ltd. IT Services, India		1.0%


China Construction Bank Corp., Class H Banks, China		1.0%


Housing Development Finance Corp. Ltd. Financial Services, India		0.9%


Top 10 Countries

3/31/23

	% of Total Net Assets


China		35.4%


Taiwan		16.4%


India		15.8%


South Korea		13.1%


Hong Kong		7.4%


Singapore		3.6%


Thailand		2.6%


Indonesia		2.3%


Malaysia		1.8%


Philippines		0.9%

Manager’s Discussion

For the fiscal year ended March 31, 2023, the only sector that contributed to the Fund’s absolute performance was consumer staples. Individual holdings that lifted the Fund’s absolute return included Tencent Holdings, PDD Holdings and Trip.com Group.

CFA^® is a trademark owned by CFA Institute.

For the same period, the sectors that detracted most from the Fund’s absolute performance were information technology, financials and consumer discretionary. Individual holdings that hindered the Fund’s absolute return included Taiwan Semiconductor Manufacturing Co., Alibaba Group Holding and JD.com.

Thank you for your participation in Franklin FTSE Asia ex Japan ETF. We look forward to serving your future investment needs.

Dina Ting, CFA

Hailey Harris

Joe Diederich

Basit Amin, CFA

Portfolio Management Team



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FRANKLIN FTSE ASIA EX JAPAN ETF

Performance Summary as of March 31, 2023

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 3/31/23¹

Cumulative Total Return²

Average Annual Total Return²

Based on
NAV³

Based on

market price⁴

Based on

NAV³

Based on

market price⁴

1-Year

-9.10%

-8.16%

-9.10%

-8.16%

3-Year

+24.58%

+25.35%

+7.60%

+7.82%

5-Year

+1.72%

-0.62%

+0.34%

-0.12%

Since Inception (2/6/18)

+1.50%

+1.40%

+0.29%

+0.27%

See page 7 for Performance Summary footnotes.



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FRANKLIN FTSE ASIA EX JAPAN 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.

LOGO

See page 7 for Performance Summary footnotes.



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FRANKLIN FTSE ASIA EX JAPAN ETF

PERFORMANCE SUMMARY


Distributions (4/1/22–3/31/23)

Net Investment
Income

$0.587567


Total Annual Operating Expenses⁶


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. The total annual operating expenses are as of the Fund’s prospectus available at the time of publication. Actual expenses may be higher and may impact portfolio 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 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.

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



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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 10/1/22	Ending Account Value 3/31/23		Expenses Paid During Period 10/1/22–3/31/23¹		Ending Account Value 3/31/23		Expenses Paid During Period 10/1/22–3/31/23¹		Net Annualized Expense Ratio

$1,000.00		$1,157.00		$1.02		$1,023.98		$0.96		0.19	%



8	Annual Report	franklintempleton.com

Franklin FTSE Australia ETF

This annual report for Franklin FTSE Australia ETF covers the fiscal year ended March 31, 2023.

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.


Top 10 Sectors/Industries

3/31/23

		% of Total Net Assets

Metals & Mining		23.5%

Banks		20.9%

Biotechnology		7.1%

Oil, Gas & Consumable Fuels		6.3%

Consumer Staples Distribution & Retail		4.2%

Capital Markets		4.1%

Diversified REITs		3.4%

Insurance		3.3%

Broadline Retail		3.0%

Transportation Infrastructure		3.0%

Performance Overview

During the 12-month period, the Fund posted cumulative total returns of -8.94% based on market price and -9.90% based on net asset value. In comparison, the FTSE Australia Capped Index posted a -9.86% 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. The Fund may use either a replication strategy or representative sampling strategy. Under a replication strategy, the Fund will 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, it may not be possible or practicable to replicate the Underlying Index. In these circumstances, we may use a representative sampling strategy whereby we will invest in what we believe to be a representative sample of the component securities of the Underlying Index, but may not track the Underlying Index with the same degree of accuracy as would an investment vehicle replicating the entire Underlying Index. Under the representative sampling technique, we will select securities that collectively have an investment profile similar to that of the Underlying Index, including securities that resemble those included in the Underlying Index in terms of risk factors, performance attributes and other characteristics, such as market capitalization and industry weightings. The Fund will concentrate its investments (i.e., hold 25% or more of its net assets) in a particular industry or group of industries to approximately the same extent that the Underlying Index is concentrated.

1. The FTSE Australia Capped Index is a free float-adjusted market capitalization-weighted index maintained and calculated by FTSE Russell with a capping methodology applied quarterly to issuer weights so that no single issuer of a component exceeds 25% of the index weight, and all issuers with weights above 5% do not cumulatively exceed 50% of the index’s weight. The FTSE Australia Capped Index is based on the FTSE Australia Index and is designed to measure the performance of Australian large-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 Schedule of Investments (SOI). The SOI begins on page 174.



franklintempleton.com	Annual Report	9

FRANKLIN FTSE AUSTRALIA ETF


Top 10 Holdings

3/31/23

Company *Sector/Industry, Country*		% of Total Net Assets

BHP Group Ltd. Metals & Mining, Australia		12.2%

Commonwealth Bank of Australia Banks, Australia		8.5%

CSL Ltd. Biotechnology, Australia		7.1%

National Australia Bank Ltd. Banks, Australia		4.5%

Westpac Banking Corp. Banks, Australia		3.9%

ANZ Group Holdings Ltd. Banks, Australia		3.5%

Woodside Energy Group Ltd. Oil, Gas & Consumable Fuels, Australia		3.2%

Macquarie Group Ltd. Capital Markets, Australia		3.1%

Wesfarmers Ltd. Broadline Retail, Australia		2.9%

Woolworths Group Ltd. Consumer Staples Distribution & Retail, Australia		2.4%

Manager’s Discussion

For the fiscal year ended March 31, 2023, the sectors that contributed to the Fund’s absolute performance were energy and utilities. Individual holdings that lifted the Fund’s absolute return included Woodside Petroleum, Mineral Resources and Brambles.

For the same period, the sectors that detracted most from the Fund’s absolute performance were financials, materials and real estate. Individual holdings that hindered the Fund’s absolute return included Commonwealth Bank of Australia, National Australia Bank and Macquarie 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

Joe Diederich

Basit Amin, CFA

Portfolio Management Team



10	Annual Report	franklintempleton.com

FRANKLIN FTSE AUSTRALIA ETF

Performance Summary as of March 31, 2023

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 3/31/23¹

Cumulative Total Return²

Average Annual Total Return²

Based on

NAV³

Based on

market price⁴

Based on

NAV³

Based on
market price⁴

1-Year

-9.90%

-8.94%

-9.90%

-8.94%

3-Year

+76.27%

+73.00%

+20.80%

+20.05%

5-Year

+35.24%

+34.40%

+6.22%

+6.09%

Since Inception (11/2/17)

+32.48%

+32.99%

+5.34%

+5.41%

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 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.

11/2/17-3/31/23

LOGO

See page 13 for Performance Summary footnotes.



12	Annual Report	franklintempleton.com

FRANKLIN FTSE AUSTRALIA ETF

PERFORMANCE SUMMARY

Distributions (4/1/22–3/31/23)

Net Investment

Income

$1.548986

Total Annual Operating Expenses⁶

0.09%

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

1. The total annual operating expenses are sourced from the Fund’s prospectus available at the time of publication. Actual expenses may be higher and may impact portfolio 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 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 10/1/22		Ending Account Value 3/31/23		Expenses Paid During Period 10/1/22–3/31/23¹		Ending Account Value 3/31/23		Expenses Paid During Period 10/1/22–3/31/23¹		Net Annualized Expense Ratio

	$1,000.00		$1,175.80		$0.49		$1,024.48		$0.45		0.09	%



14	Annual Report	franklintempleton.com

Franklin FTSE Brazil ETF

This annual report for Franklin FTSE Brazil ETF covers the fiscal year ended March 31, 2023.

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.


Top 10 Sectors/Industries

3/31/23

		% of Total Net Assets

Metals & Mining		20.5%

Banks		16.6%

Oil, Gas & Consumable Fuels		15.7%

Electric Utilities		8.2%

Capital Markets		4.7%

Ground Transportation		3.9%

Beverages		3.4%

Machinery		3.3%

Consumer Staples Distribution & Retail		2.9%

Food Products		2.4%

Performance Overview

During the 12-month period, the Fund posted cumulative total returns of -19.39% based on market price and -19.57% based on net asset value. In comparison, the FTSE Brazil Capped Index posted a -19.21% total return for the same period.² You can find more of the Fund’s performance data in the Performance Summary beginning on page 17.


Top 10 Holdings

3/31/23

Company *Sector/Industry, Country*		% of Total Net Assets

Vale SA Metals & Mining, Brazil		17.2%

Petroleo Brasileiro SA, 43.945%, pfd. Oil, Gas & Consumable Fuels, Brazil		12.6%

Itau Unibanco Holding SA, 4.349%, pfd. Banks, Brazil		7.1%

Banco Bradesco SA, 6.492%, pfd. Banks, Brazil		4.8%

B3 SA - Brasil Bolsa Balcao Capital Markets, Brazil		3.5%

Ambev SA Beverages, Brazil		3.5%

WEG SA Machinery, Brazil		3.3%

Centrais Eletricas Brasileiras SA Electric Utilities, Brazil		2.4%

Itausa SA, 4.745%, pfd. Banks, Brazil		2.4%

Localiza Rent a Car SA Ground Transportation, Brazil		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 FTSE Brazil Capped Index. The Fund may use either a replication strategy or representative sampling strategy. Under a replication strategy, the Fund will replicate the component securities of the Underlying Index as closely as possible

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 Schedule of Investments (SOI). The SOI begins on page 178.



franklintempleton.com	Annual Report	15

FRANKLIN FTSE BRAZIL ETF

(i.e., invest in all of the component securities in their respective weightings in the Underlying Index). However, it may not be possible or practicable to replicate the Underlying Index. In these circumstances, we may use a representative sampling strategy whereby we will 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.

Manager’s Discussion

For the fiscal year ended March 31, 2023, the sectors that contributed to the Fund’s absolute performance were energy and industrials. Individual holdings that lifted the Fund’s absolute return included Petroleo Brasileiro (Petrobras), WEG and Banco do Brasil.

For the same period, the sectors that detracted most from the Fund’s absolute performance were materials, financials and consumer staples. Individual holdings that hindered the Fund’s absolute return included Vale, Hapvida Participacoes e Investimentos and Banco Bradesco.

Thank you for your participation in Franklin FTSE Brazil ETF. We look forward to serving your future investment needs.

Dina Ting, CFA

Hailey Harris

Joe Diederich

Basit Amin, CFA

Portfolio Management Team



16	Annual Report	franklintempleton.com

FRANKLIN FTSE BRAZIL ETF

Performance Summary as of March 31, 2023

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 3/31/23¹



	Cumulative Total Return²				Average Annual Total Return²

	Based on NAV³		Based on market price⁴		Based on NAV³		Based on market price⁴

1-Year		-19.57%		-19.39%		-19.57%		-19.39%

3-Year		+45.30%		+45.43%		+13.26%		+13.30%

5-Year		-18.64%		-19.26%		-4.04%		-4.19%

Since Inception (11/3/17)		-6.56%		-6.33%		-1.25%		-1.20%

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 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.

11/3/17-3/31/23

LOGO

See page 19 for Performance Summary footnotes.



18	Annual Report	franklintempleton.com

FRANKLIN FTSE BRAZIL ETF

PERFORMANCE SUMMARY

Distributions (4/1/22–3/31/23)

Net Investment

Income

$2.065896

Total Annual Operating Expenses⁶

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. The total annual operating expenses are sourced from the Fund’s prospectus available at the time of publication. Actual expenses may be higher and may impact portfolio 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 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

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 10/1/22		Ending Account Value 3/31/23	Expenses Paid During Period 10/1/22–3/31/23¹		Ending Account Value 3/31/23	Expenses Paid During Period 10/1/22–3/31/23¹	Net Annualized Expense Ratio
$1,000.00		$989.40	$0.94		$1,023.98	$0.96	0.19	%



20	Annual Report	franklintempleton.com

Franklin FTSE Canada ETF

This annual report for Franklin FTSE Canada ETF covers the fiscal year ended March 31, 2023.

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.


Top 10 Sectors/Industries

3/31/23

		% of Total Net Assets

Banks		27.1%

Oil, Gas & Consumable Fuels		18.0%

Ground Transportation		9.1%

Insurance		7.8%

Metals & Mining		7.8%

IT Services		4.8%

Consumer Staples Distribution & Retail		4.8%

Capital Markets		3.5%

Chemicals		2.5%

Software		2.3%

Performance Overview

During the 12-month period, the Fund posted cumulative total returns of -13.44% based on market price and -12.82% based on net asset value. In comparison, the FTSE Canada Capped Index posted a -13.05% total return for the same period.² You can find more of the Fund’s performance data in the Performance Summary beginning on page 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. The Fund may use either a replication strategy or representative sampling strategy. Under a replication strategy, the Fund will 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, it may not be possible or practicable to replicate the Underlying Index. In these circumstances, we may use a representative sampling strategy whereby we will 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 Schedule of Investments (SOI). The SOI begins on page 182.



franklintempleton.com	Annual Report	21

FRANKLIN FTSE CANADA ETF


Top 10 Holdings

3/31/23

Company *Sector/Industry, Country*		% of Total Net Assets

Royal Bank of Canada Banks, Canada		8.6%

Toronto-Dominion Bank Banks, Canada		7.0%

Enbridge, Inc. Oil, Gas & Consumable Fuels, Canada		4.9%

Canadian Pacific Railway Ltd. Ground Transportation, Canada		4.6%

Canadian National Railway Co. Ground Transportation, Canada		4.5%

Canadian Natural Resources Ltd. Oil, Gas & Consumable Fuels, Canada		3.8%

Bank of Nova Scotia Banks, Canada		3.8%

Bank of Montreal Banks, Canada		3.8%

Shopify, Inc., Class A IT Services, Canada		3.5%

Brookfield Corp. Capital Markets, Canada		2.8%

Manager’s Discussion

For the fiscal year ended March 31, 2023, the sectors that contributed to the Fund’s absolute performance were consumer staples and consumer discretionary. Individual holdings that lifted the Fund’s absolute return included Alimentation Couche-Tard, Constellation Software and Thomson Reuters.

For the same period, the sectors that detracted most from the Fund’s absolute performance were financials, energy and materials. Individual holdings that hindered the Fund’s absolute return included The Toronto-Dominion Bank, Bank of Nova Scotia and Brookfield Asset Management.

Thank you for your participation in Franklin FTSE Canada ETF. We look forward to serving your future investment needs.

Dina Ting, CFA

Hailey Harris

Joe Diederich

Basit Amin, CFA

Portfolio Management Team



22	Annual Report	franklintempleton.com

FRANKLIN FTSE CANADA ETF

Performance Summary as of March 31, 2023

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 3/31/23¹

Cumulative Total Return²

Average Annual Total Return²

Based on

NAV³

Based on

market price⁴

Based on

NAV³

Based on

market price⁴

1-Year

-12.82%

-13.44%

-12.82%

-13.44%

3-Year

+69.14%

+68.07%

+19.15%

+18.90%

5-Year

+46.24%

+45.89%

+7.90%

+7.85%

Since Inception (11/2/17)

+40.30%

+40.26%

+6.46%

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 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.

11/2/17-3/31/23LP12

LOGO

See page 25 for Performance Summary footnotes.



24	Annual Report	franklintempleton.com

FRANKLIN FTSE CANADA ETF

PERFORMANCE SUMMARY

Distributions (4/1/22–3/31/23)

Net Investment
Income

$0.654492

Total Annual Operating Expenses⁶

0.09%

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

1. The total annual operating expenses are sourced from the Fund’s prospectus available at the time of publication. Actual expenses may be higher and may impact portfolio 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 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 10/1/22		Ending Account Value 3/31/23		Expenses Paid During Period 10/1/22–3/31/23¹		Ending Account Value 3/31/23		Expenses Paid During Period 10/1/22–3/31/23¹		Net Annualized Expense Ratio

	$1,000.00		$1,115.50		$0.47		$1,024.48		$0.45		0.09	%



26	Annual Report	franklintempleton.com

Franklin FTSE China ETF

This annual report for Franklin FTSE China ETF covers the fiscal year ended March 31, 2023.

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.


Top 10 Sectors/Industries

3/31/23

		% of Total Net Assets

Interactive Media & Services		16.0%

Internet & Direct Marketing Retail		9.9%

Banks		9.8%

Hotels, Restaurants & Leisure		7.0%

Automobiles		3.9%

Insurance		3.8%

Beverages		3.5%

Real Estate Management & Development		3.3%

Oil, Gas & Consumable Fuels		2.8%

Broadline Retail		2.6%

Performance Overview

During the 12-month period, the Fund posted cumulative total returns of -4.34% based on market price and -5.68% based on net asset value. In comparison, the FTSE China Capped Index posted a -5.70% 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. The Fund may use either a replication strategy or representative sampling strategy. Under a replication strategy, the Fund will 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, it may not be possible or practicable to replicate the Underlying Index. In these circumstances, we may use a representative sampling strategy whereby we will 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 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 Schedule of Investments (SOI). The SOI begins on page 185.



franklintempleton.com	Annual Report	27

FRANKLIN FTSE CHINA ETF


Top 10 Holdings

3/31/23

Company *Sector/Industry, Country*		% of Total Net Assets

Tencent Holdings Ltd. Interactive Media & Services, China		13.2%

Alibaba Group Holding Ltd., Class A Internet & Direct Marketing Retail, China		8.4%

Meituan, Class B Hotels, Restaurants & Leisure, China		3.9%

China Construction Bank Corp., Class H Banks, China		2.7%

JD.com, Inc., Class A Broadline Retail, China		2.3%

Baidu, Inc., Class A Interactive Media & Services, China		1.9%

Industrial & Commercial Bank of China Ltd., Class H Banks, China		1.9%

Ping An Insurance Group Co. of China Ltd., Class H Insurance, China		1.8%

PDD Holdings, Inc., ADR Internet & Direct Marketing Retail, China		1.5%

NetEase, Inc. Entertainment, China		1.4%

Manager’s Discussion

For the fiscal year ended March 31, 2023, the sectors that contributed to the Fund’s absolute performance were communication services and energy. Individual holdings that lifted the Fund’s absolute return included Tencent Holdings, PDD Holdings and Trip.com Group.

For the same period, the sectors that detracted most from the Fund’s absolute performance were consumer discretionary, financials and real estate. Individual holdings that hindered the Fund’s absolute return included Alibaba Group Holding, JD.com and NIO.

Thank you for your participation in Franklin FTSE China ETF. We look forward to serving your future investment needs.

Dina Ting, CFA

Hailey Harris

Joe Diederich

Basit Amin, CFA

Portfolio Management Team



28	Annual Report	franklintempleton.com

FRANKLIN FTSE CHINA ETF

Performance Summary as of March 31, 2023

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 3/31/23¹



	Cumulative Total Return²				Average Annual Total Return²

	Based on NAV³		Based on market price⁴		Based on NAV³		Based on market price⁴

1-Year		-5.68%		-4.34%		-5.68%		-4.34%

3-Year		-6.71%		-6.75%		-2.29%		-2.30%

5-Year		-17.19%		-18.88%		-3.70%		-4.10%

Since Inception (11/2/17)		-13.74%		-13.94%		-2.70%		-2.74%

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 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.

11/2/17-3/31/23

LOGO

See page 31 for Performance Summary footnotes.



30	Annual Report	franklintempleton.com

FRANKLIN FTSE CHINA ETF

PERFORMANCE SUMMARY

Distributions (4/1/22–3/31/23)

Net Investment

Income

$0.502096

Total Annual Operating Expenses⁶

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. The total annual operating expenses are sourced from the Fund’s prospectus available at the time of publication. Actual expenses may be higher and may impact portfolio 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 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 10/1/22		Ending Account Value 3/31/23		Expenses Paid During Period 10/1/22–3/31/23¹		Ending Account Value 3/31/23		Expenses Paid During Period 10/1/22–3/31/23¹		Net Annualized Expense Ratio

	$1,000.00		$795.80		$0.85		$1,023.98		$0.96		0.19	%



32	Annual Report	franklintempleton.com

Franklin FTSE Europe ETF

This annual report for Franklin FTSE Europe ETF covers the fiscal year ended March 31, 2023.

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.


Top 10 Sectors/Industries

3/31/23

		% of Total Net Assets

Pharmaceuticals		11.1%

Banks		7.6%

Oil, Gas & Consumable Fuels		5.5%

Textiles, Apparel & Luxury Goods		5.4%

Insurance		5.2%

Food Products		4.4%

Semiconductors & Semiconductor Equipment		3.8%

Chemicals		3.3%

Machinery		3.0%

Beverages		2.7%

Performance Overview

During the 12-month period, the Fund posted cumulative total returns of +2.18% based on market price and +1.31% based on net asset value. In comparison, the FTSE Developed Europe Capped Index posted a +0.68% total return for the same period.² You can find more of the Fund’s performance data in the Performance Summary beginning on page 35.

Investment Strategy

The Fund, using a “passive” or indexing investment approach, seeks investment results that closely correspond, before fees and expenses, to the performance of the FTSE Developed Europe Capped Index. The Fund may use either a replication strategy or representative sampling strategy. Under a replication strategy, the Fund will 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, it may not be possible or practicable to replicate the Underlying Index. In these circumstances, we may use a representative sampling strategy whereby we will 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 Schedule of Investments (SOI). The SOI begins on page 209.



franklintempleton.com	Annual Report	33

FRANKLIN FTSE EUROPE ETF


Top 10 Holdings

3/31/23

Company *Sector/Industry, Country*		% of Total Net Assets

Nestle SA Food Products, Switzerland		3.2%

ASML Holding NV Semiconductors & Semiconductor Equipment, Netherlands		2.6%

Novo Nordisk AS, Class B Pharmaceuticals, Denmark		2.4%

LVMH Moet Hennessy Louis Vuitton SE Textiles, Apparel & Luxury Goods, France		2.2%

AstraZeneca PLC Pharmaceuticals, United Kingdom		2.0%

Roche Holding AG Pharmaceuticals, Switzerland		2.0%

Shell PLC Oil, Gas & Consumable Fuels, Netherlands		1.9%

Novartis AG Pharmaceuticals, Switzerland		1.8%

SAP SE Software, Germany		1.4%

HSBC Holdings PLC Banks, United Kingdom		1.3%

Manager’s Discussion

For the fiscal year ended March 31, 2023, the sectors that contributed most to the Fund’s absolute performance were consumer discretionary, industrials and energy. Individual holdings that lifted the Fund’s absolute return included Novo Nordisk, LVMH Moet Hennessy Louis Vuitton and Total Energies.

For the same period, the sectors that detracted most from the Fund’s absolute performance were real estate, materials and health care. Individual holdings that hindered the Fund’s absolute return included Roche Holding, Deutsche Annington Immobilien and Anglo American.


Top 10 Countries

3/31/23

		% of Total Net Assets

United Kingdom		19.2%

France		17.3%

Switzerland		14.5%

Germany		12.8%

Netherlands		9.0%

Sweden		4.8%

Denmark		4.4%

Spain		3.9%

Italy		3.4%

Finland		1.9%

Thank you for your participation in Franklin FTSE Europe ETF. We look forward to serving your future investment needs.

Dina Ting, CFA

Hailey Harris

Joe Diederich

Basit Amin, CFA

Portfolio Management Team



34	Annual Report	franklintempleton.com

FRANKLIN FTSE EUROPE ETF

Performance Summary as of March 31, 2023

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 3/31/23¹

Cumulative Total Return²

Average Annual Total Return²

Based on

NAV³

Based on

market price⁴

Based on

NAV³

Based on

market price⁴

1-Year

+1.31%

+2.18%

+1.31%

+2.18%

3-Year

+53.04%

+52.80%

+15.24%

+15.18%

5-Year

+24.64%

+24.00%

+4.50%

+4.40%

Since Inception (11/2/17)

+24.32%

+24.37%

+4.11%

+4.12%

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 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.

11/2/17-3/31/23

LOGO

See page 37 for Performance Summary footnotes.



36	Annual Report	franklintempleton.com

FRANKLIN FTSE EUROPE ETF

PERFORMANCE SUMMARY

Distributions (4/1/22–3/31/23)

Net Investment

Income

$0.836887

Total Annual Operating Expenses⁶

0.09%

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

1. The total annual operating expenses are sourced from the Fund’s prospectus available at the time of publication. Actual expenses may be higher and may impact portfolio 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 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 10/1/22		Ending Account Value 3/31/23		Expenses Paid During Period 10/1/22–3/31/23^1,2		Ending Account Value 3/31/23		Expenses Paid During Period 10/1/22–3/31/23^1,2		Net Annualized Expense Ratio²

	$1,000.00		$1,325.50		$1.68		$1,023.49		$1.46		0.29	%

2. Included in the expense ratio are “Other fees” described in Note 1 under Income and Deferred Taxes which are not annualized. Without these expenses, the expense ratio would have been 0.09% and the actual and hypothetical expenses paid during the period would have been $0.52 and $0.45, respectively.



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, 2023.

On May 11, 2023, the Board of Trustees of the Trust approved changes to the Fund’s (i) name and ticker symbol, (ii) underlying index, including the designation of the primary benchmark index, (iii) investment goal, strategies and policies, and (iv) other related changes. Effective on or about August 1, 2023, the Fund will be renamed the Franklin FTSE Eurozone ETF (Ticker: FLEU). The Fund’s investment goal will change to seek to provide investment results that closely correspond, before fees and expenses, to the performance of the FTSE Developed Eurozone Index (the “Underlying Index”). Under normal market conditions, the Fund will invest at least 80% of its assets in the component securities of the Underlying Index and in depositary receipts representing such securities. The Underlying Index will also serve as the Fund’s primary benchmark.

The Underlying Index is a free float-adjusted market capitalization weighted index maintained and calculated by FTSE Russell (Index Provider). The Underlying Index is designed to measure the performance of large- and mid-capitalization stocks from developed Eurozone countries. The Eurozone is a geographic and economic region that consists of all the European Union countries that have fully incorporated the euro as their national currency. The Underlying Index currently consists of securities from the following ten developed market countries: Austria, Belgium, Finland, France, Germany, Ireland, Italy, the Netherlands, Portugal and Spain. FTSE Russell conducts a semi-annual review of the Underlying Index.

The Fund may make a special distribution of capital gains in connection with the investment strategy change so that new investors in the Fund would not be subject to the undistributed capital gains attributable to the old currency hedged investment strategy.

The Fund will change its non-fundamental investment policy in accordance with Rule 35d-1 under the Investment Company Act of 1940 (the “Names Rule”) to invest, under

normal market conditions, at least 80% of its assets in equity securities or investments, such as depositary receipts, that are economically tied to the particular country or geographic region suggested by the Fund’s name. For purposes of this Names Rule policy, the Fund considers the securities or investments that are economically tied to the particular country or geographic region suggested by the Fund’s name to be those securities or investments that comprise the Underlying Index.

For more information, please see the Fund’s current prospectus and SAI, as supplemented.

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).


Top 10 Sectors/Industries

3/31/23

		% of Total Net Assets

Pharmaceuticals		11.1%

Banks		7.7%

Oil, Gas & Consumable Fuels		5.5%

Textiles, Apparel & Luxury Goods		5.3%

Insurance		5.2%

Food Products		4.4%

Semiconductors & Semiconductor Equipment		3.8%

Chemicals		3.3%

Machinery		3.0%

Beverages		2.6%

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.

The dollar value, number of shares or principal amount, and names of all portfolio holdings are listed in the Fund’s Schedule of Investments (SOI). The SOI begins on page 222.



franklintempleton.com	Annual Report	39

FRANKLIN FTSE EUROPE HEDGED ETF

Performance Overview

During the 12-month period, the Fund posted cumulative total returns of +7.21% based on market price and +7.53% based on net asset value. In comparison, the FTSE Developed Europe Capped Hedged Index posted a -11.96% total return for the same period.² You can find more of the Fund’s performance data in the Performance Summary beginning on page 42.

Investment Strategy

The Fund, using a “passive” or indexing investment approach, seeks investment results that closely correspond, before fees and expenses, to the performance of the FTSE Developed Europe Capped Hedged Index. The Fund may use either a replication strategy or representative sampling strategy. Under a replication strategy, the Fund will 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, it may not be possible or practicable to replicate the Underlying Index. In these circumstances, we may use a representative sampling strategy whereby we will 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.


Top 10 Holdings

3/31/23

Company *Sector/Industry, Country*		% of Total Net Assets

Nestle SA Food Products, Switzerland		3.2%

ASML Holding NV Semiconductors & Semiconductor Equipment, Netherlands		2.6%

Novo Nordisk AS, Class B Pharmaceuticals, Denmark		2.4%

LVMH Moet Hennessy Louis Vuitton SE Textiles, Apparel & Luxury Goods, France		2.2%

AstraZeneca PLC Pharmaceuticals, United Kingdom		2.0%

Roche Holding AG Pharmaceuticals, Switzerland		2.0%

Shell PLC Oil, Gas & Consumable Fuels, Netherlands		1.9%

Novartis AG Pharmaceuticals, Switzerland		1.8%

SAP SE Software, Germany		1.4%

HSBC Holdings PLC Banks, United Kingdom		1.3%

2. Source: FactSet.

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



40	Annual Report	franklintempleton.com

FRANKLIN FTSE EUROPE HEDGED ETF

Manager’s Discussion


Top 10 Countries

3/31/23

		% of Total Net Assets

United Kingdom		19.2%

France		17.3%

Switzerland		14.5%

Germany		12.8%

Netherlands		9.0%

Sweden		4.9%

Denmark		4.4%

Spain		3.9%

Italy		3.4%

Finland		1.9%

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

Joe Diederich

Basit Amin, CFA

Portfolio Management Team



franklintempleton.com	Annual Report	41

FRANKLIN FTSE EUROPE HEDGED ETF

Performance Summary as of March 31, 2023

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 3/31/23¹

Cumulative Total Return²

Average Annual Total Return²

Based on

NAV³

Based on

market price⁴

Based on

NAV³

Based on

market price⁴

1-Year

+7.53%

+7.21%

+7.53%

+7.21%

3-Year

+60.11%

+61.33%

+16.99%

+17.28%

5-Year

+53.01%

+50.10%

+8.88%

+8.46%

Since Inception (11/2/17)

+45.96%

+45.65%

+7.24%

+7.20%

See page 44 for Performance Summary footnotes.



42	Annual Report	franklintempleton.com

FRANKLIN FTSE EUROPE HEDGED 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.

11/2/17-3/31/23

LOGO

See page 44 for Performance Summary footnotes.



franklintempleton.com	Annual Report	43

FRANKLIN FTSE EUROPE HEDGED ETF

PERFORMANCE SUMMARY


Distributions (4/1/22–3/31/23)
Net Investment Income	Short-Term Capital Gain	Long-Term Capital Gain	Total


$0.639769	$1.897174	$2.490279	$5.027222


Total Annual Operating Expenses⁶


0.09%

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

1. The total annual operating expenses are sourced from the Fund’s prospectus available at the time of publication. Actual expenses may be higher and may impact portfolio 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 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.



44	Annual Report	franklintempleton.com

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 10/1/22	Ending Account Value 3/31/23		Expenses Paid During Period 10/1/22–3/31/23^1,2		Ending Account Value 3/31/23		Expenses Paid During Period 10/1/22–3/31/23^1,2		Net Annualized Expense Ratio²

$1,000.00		$1,219.60		$0.89		$1,024.13		$0.81		0.16	%



franklintempleton.com	Annual Report	45

Franklin FTSE France ETF

This annual report for Franklin FTSE France ETF covers the fiscal year ended March 31, 2023.

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.


Top 10 Sectors/Industries

3/31/23

		% of Total Net Assets

Textiles, Apparel & Luxury Goods		20.8%

Aerospace & Defense		7.8%

Oil, Gas & Consumable Fuels		7.2%

Pharmaceuticals		6.5%

Electrical Equipment		6.1%

Personal Products		5.9%

Banks		5.2%

Chemicals		4.9%

Construction & Engineering		3.8%

Insurance		3.2%

Performance Overview

During the 12-month period, the Fund posted cumulative total returns of +9.97% based on market price and +9.84% based on net asset value. In comparison, the FTSE France Capped Index posted a +8.54% total return for the same period.² You can find more of the Fund’s performance data in the Performance Summary beginning on page 48.

Investment Strategy

The Fund, using a “passive” or indexing investment approach, seeks investment results that closely correspond, before fees and expenses, to the performance of the FTSE France Capped Index. The Fund may use either a replication strategy or representative sampling strategy. Under a replication strategy, the Fund will 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, it may not be possible or practicable to replicate the Underlying Index. In these circumstances, we may use a representative sampling strategy whereby we will 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 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 Schedule of Investments (SOI). The SOI begins on page 236.



46	Annual Report	franklintempleton.com

FRANKLIN FTSE FRANCE ETF


Top 10 Holdings

3/31/23

Company *Sector/Industry, Country*		% of Total Net Assets

LVMH Moet Hennessy Louis Vuitton SE Textiles, Apparel & Luxury Goods, France		12.1%

Total Energies SE Oil, Gas & Consumable Fuels, France		7.2%

Sanofi Pharmaceuticals, France		6.3%

L’Oreal SA Personal Products, France		5.9%

Schneider Electric SE Electrical Equipment, France		4.7%

Air Liquide SA Chemicals, France		4.6%

Airbus SE Aerospace & Defense, France		4.0%

BNP Paribas SA Banks, France		3.5%

Hermes International Textiles, Apparel & Luxury Goods, France		3.4%

AXA SA Insurance, France		3.1%

Manager’s Discussion

For the fiscal year ended March 31, 2023, the sectors that contributed most to the Fund’s absolute performance were consumer discretionary, energy and industrials. Individual holdings that lifted the Fund’s absolute return included LVMH Moet Hennessy Louis Vuitton, TotalEnergies and Hermes International.

For the same period, the sectors that detracted from the Fund’s absolute performance were information technology and real estate. Individual holdings that hindered the Fund’s absolute return included Teleperformance, Dassault Systemes and Capgemini.

Thank you for your participation in Franklin FTSE France ETF. We look forward to serving your future investment needs.

Dina Ting, CFA

Hailey Harris

Joe Diederich

Basit Amin, CFA

Portfolio Management Team



franklintempleton.com	Annual Report	47

FRANKLIN FTSE FRANCE ETF

Performance Summary as of March 31, 2023

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 3/31/23¹

Cumulative Total Return²

Average Annual Total Return²

Based on

NAV³

Based on

market price⁴

Based on

NAV³

Based on

market price⁴

1-Year

+9.84%

+9.97%

+9.84%

+9.97%

3-Year

+71.13%

+71.36%

+19.61%

+19.66%

5-Year

+37.55%

+34.38%

+6.58%

+6.09%

Since Inception (11/2/17)

+37.91%

+36.70%

+6.12%

+5.95%

See page 50 for Performance Summary footnotes.



48	Annual Report	franklintempleton.com

FRANKLIN FTSE FRANCE ETF

PERFORMANCE SUMMARY

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

11/2/17-3/3/23

LOGO

See page 50 for Performance Summary footnotes.



franklintempleton.com	Annual Report	49

FRANKLIN FTSE FRANCE ETF

PERFORMANCE SUMMARY


Distributions (4/1/22–3/31/23)

Net Investment Income

$0.794457


Total Annual Operating Expenses⁶


0.09%

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

1. The total annual operating expenses are sourced from the Fund’s prospectus available at the time of publication. Actual expenses may be higher and may impact portfolio 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 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.



50	Annual Report	franklintempleton.com

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 10/1/22		Ending Account Value 3/31/23		Expenses Paid During Period 10/1/22–3/31/23^1,2		Ending Account Value 3/31/23		Expenses Paid During Period 10/1/22–3/31/23^1,2		Net Annualized Expense Ratio²

	$1,000.00		$1,414.70		$2.71		$1,022.69		$2.27		0.45	%



franklintempleton.com	Annual Report	51

Franklin FTSE Germany ETF

This annual report for Franklin FTSE Germany ETF covers the fiscal year ended March 31, 2023.

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.


Top 10 Sectors/Industries

3/31/23

		% of Total Net Assets

Insurance		11.6%

Software		10.7%

Automobiles		10.3%

Industrial Conglomerates		10.0%

Pharmaceuticals		6.5%

Diversified Telecommunication Services		6.4%

Chemicals		6.2%

Capital Markets		4.3%

Multi-Utilities		4.1%

Semiconductors & Semiconductor Equipment		4.0%

Performance Overview

During the 12-month period, the Fund posted cumulative total returns of +3.60% based on market price and +2.41% based on net asset value. In comparison, the FTSE Germany Capped Index posted a +2.02% total return for the same period.² You can find more of the Fund’s performance data in the Performance Summary beginning on page 54.

Investment Strategy

The Fund, using a “passive” or indexing investment approach, seeks investment results that closely correspond, before fees and expenses, to the performance of the FTSE Germany Capped Index. The Fund may use either a replication strategy or representative sampling strategy. Under a replication strategy, the Fund will 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, it may not be possible or practicable to replicate the Underlying Index. In these circumstances, we may use a representative sampling strategy whereby we will 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 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 Schedule of Investments (SOI). The SOI begins on page 239.



52	Annual Report	franklintempleton.com

FRANKLIN FTSE GERMANY ETF


Top 10 Holdings

3/31/23

Company *Sector/Industry, Country*		% of Total Net Assets

SAP SE Software, Germany		10.4%

Siemens AG Industrial Conglomerates, Germany		9.0%

Allianz SE Insurance, Germany		6.9%

Deutsche Telekom AG Diversified Telecommunication Services, Germany		6.1%

Mercedes-Benz Group AG Automobiles, Germany		4.8%

Bayer AG Pharmaceuticals, Germany		4.7%

Infineon Technologies AG Semiconductors & Semiconductor Equipment, Germany		4.0%

Muenchener Rueckversicherungs-Gesellschaft AG in Muenchen Insurance, Germany		3.6%

BASF SE Chemicals, Germany		3.6%

Deutsche Post AG Air Freight & Logistics, Germany		3.4%

Manager’s Discussion

For the fiscal year ended March 31, 2023, the sectors that contributed most to the Fund’s absolute performance were industrials, information technology and financials. Individual holdings that lifted the Fund’s absolute return included Siemens, SAP and Deutsche Telekom.

For the same period, the sectors that detracted most from the Fund’s absolute performance were real estate, health care and consumer discretionary. Individual holdings that hindered the Fund’s absolute return included Deutsche Annington Immobilien, Adidas and Bayer.

Thank you for your participation in Franklin FTSE Germany ETF. We look forward to serving your future investment needs.

Dina Ting, CFA

Hailey Harris

Joe Diederich

Basit Amin, CFA

Portfolio Management Team



franklintempleton.com	Annual Report	53

FRANKLIN FTSE GERMANY ETF

Performance Summary as of March 31, 2023

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 3/31/23¹

Cumulative Total Return²

Average Annual Total Return²

Based on
NAV³

Based on
market price⁴

Based on
NAV³

Based on
market price⁴

1-Year

+2.41%

+3.60%

+2.41%

+3.60%

3-Year

+44.54%

+45.50%

+13.06%

+13.32%

5-Year

+3.50%

+3.14%

+0.69%

+0.62%

Since Inception (11/2/17)

-0.35%

-0.41%

-0.06%

-0.08%

See page 56 for Performance Summary footnotes.



54	Annual Report	franklintempleton.com

FRANKLIN FTSE GERMANY ETF

PERFORMANCE SUMMARY

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

11/2/17-3/31/23

LOGO

See page 56 for Performance Summary footnotes.



franklintempleton.com	Annual Report	55

FRANKLIN FTSE GERMANY ETF

PERFORMANCE SUMMARY

Distributions (4/1/22–3/31/23)

Net Investment

Income

$0.673099

Total Annual Operating Expenses⁶

0.09%

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

1. The total annual operating expenses are sourced from the Fund’s prospectus available at the time of publication. Actual expenses may be higher and may impact portfolio 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 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.



56	Annual Report	franklintempleton.com

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 10/1/22		Ending Account Value 3/31/23		Expenses Paid During Period 10/1/22–3/31/23¹		Ending Account Value 3/31/23		Expenses Paid During Period 10/1/22–3/31/23¹		Net Annualized Expense Ratio

	$1,000.00		$1,432.70		$0.55		$1,024.48		$0.45		0.09	%



franklintempleton.com	Annual Report	57

Franklin FTSE Hong Kong ETF

This annual report for Franklin FTSE Hong Kong ETF covers the fiscal year ended March 31, 2023.

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.


Top 10 Sectors/Industries

3/31/23

		% of Total Net Assets

Real Estate Management & Development		21.9%

Insurance		19.7%

Capital Markets		12.9%

Hotels, Restaurants & Leisure		7.0%

Banks		5.3%

Electric Utilities		5.1%

Diversified REITs		3.9%

Household Durables		3.8%

Industrial Conglomerates		2.5%

Gas Utilities		2.2%

Performance Overview

During the 12-month period, the Fund posted cumulative total returns of -5.24% based on market price and -5.39% based on net asset value. In comparison, the FTSE Hong Kong Capped Index posted a -5.37% total return for the same period.² You can find more of the Fund’s performance data in the Performance Summary beginning on page 60.

Investment Strategy

The Fund, using a “passive” or indexing investment approach, seeks investment results that closely correspond, before fees and expenses, to the performance of the FTSE Hong Kong Capped Index. The Fund may use either a replication strategy or representative sampling strategy. Under a replication strategy, the Fund will 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, it may not be possible or practicable to replicate the Underlying Index. In these circumstances, we may use a representative sampling strategy whereby we will 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 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 Schedule of Investments (SOI). The SOI begins on page 242.



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FRANKLIN FTSE HONG KONG ETF


Top 10 Holdings

3/31/23

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		12.8%

Sun Hung Kai Properties Ltd. Real Estate Management & Development, Hong Kong		4.5%

CK Hutchison Holdings Ltd., Class A Real Estate Management & Development, United Kingdom		3.7%

Link REIT Diversified REITs, Hong Kong		3.7%

Galaxy Entertainment Group Ltd. Hotels, Restaurants & Leisure, Macau		3.3%

Techtronic Industries Co. Ltd. Household Durables, Hong Kong		3.2%

CLP Holdings Ltd. Electric Utilities, Hong Kong		2.7%

CK Asset Holdings Ltd. Real Estate Management & Development, Hong Kong		2.7%

BOC Hong Kong Holdings Ltd. Banks, China		2.6%

Manager’s Discussion

For the fiscal year ended March 31, 2023, the sectors that contributed to the Fund’s absolute performance were consumer discretionary and information technology. Individual holdings that lifted the Fund’s absolute return included AIA Group, Sun Hung Kai Properties and Sands China.

For the same period, the sectors that detracted most from the Fund’s absolute performance were industrials, utilities and real estate. Individual holdings that hindered the Fund’s absolute return included Techtronic Industries, CLP Holdings and Link REIT.

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

Joe Diederich

Basit Amin, CFA

Portfolio Management Team



franklintempleton.com	Annual Report	59

FRANKLIN FTSE HONG KONG ETF

Performance Summary as of March 31, 2023

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 3/31/23¹



	Cumulative Total Return²				Average Annual Total Return²

	Based on NAV³		Based on market price⁴		Based on NAV³		Based on market price⁴

1-Year		-5.39%		-5.24%		-5.39%		-5.24%

3-Year		+14.30%		+14.84%		+4.56%		+4.72%

5-Year		-5.10%		-6.77%		-1.04%		-1.39%

Since Inception (11/2/17)		-1.58%		-1.43%		-0.29%		-0.27%

See page 62 for Performance Summary footnotes.



60	Annual Report	franklintempleton.com

FRANKLIN FTSE HONG KONG 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.

11/2/17-3/31/23

LOGO

See page 62 for Performance Summary footnotes.



franklintempleton.com	Annual Report	61

FRANKLIN FTSE HONG KONG ETF

PERFORMANCE SUMMARY

Distributions (4/1/22–3/31/23)

Net Investment

Income

$0.825229

Total Annual Operating Expenses⁶

0.09%

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

1. The total annual operating expenses are sourced from the Fund’s prospectus available at the time of publication. Actual expenses may be higher and may impact portfolio 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 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.



62	Annual Report	franklintempleton.com

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 10/1/22		Ending Account Value 3/31/23		Expenses Paid During Period 10/1/22–3/31/23¹		Ending Account Value 3/31/23		Expenses Paid During Period 10/1/22–3/31/23¹		Net Annualized Expense Ratio

	$1,000.00		$1,159.20		$0.48		$1,024.48		$0.45		0.09	%



franklintempleton.com	Annual Report	63

Franklin FTSE India ETF

This annual report for Franklin FTSE India ETF covers the fiscal year ended March 31, 2023.

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.


Top 10 Sectors/Industries

3/31/23

		% of Total Net Assets

IT Services		14.5%

Oil, Gas & Consumable Fuels		12.0%

Banks		7.5%

Financial Services		7.2%

Automobiles		5.3%

Chemicals		4.6%

Metals & Mining		3.9%

Pharmaceuticals		3.9%

Construction Materials		3.0%

Consumer Finance		3.0%

Performance Overview

During the 12-month period, the Fund posted cumulative total returns of -10.43% based on market price and -11.65% based on net asset value. In comparison, the FTSE India Capped Index posted a -12.28% total return for the same period.² You can find more of the Fund’s performance data in the Performance Summary beginning on page 66.

Investment Strategy

The Fund, using a “passive” or indexing investment approach, seeks investment results that closely correspond, before fees and expenses, to the performance of the FTSE India Capped Index. The Fund may use either a replication strategy or representative sampling strategy. Under a replication strategy, the Fund will 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, it may not be possible or practicable to replicate the Underlying Index. In these circumstances, we may use a representative sampling strategy whereby we will 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 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 Schedule of Investments (SOI). The SOI begins on page 246.



64	Annual Report	franklintempleton.com

FRANKLIN FTSE INDIA ETF


Top 10 Holdings

3/31/23

Company *Sector/Industry, Country*		% of Total Net Assets

Reliance Industries Ltd. Oil, Gas & Consumable Fuels, India		9.4%

Infosys Ltd. IT Services, India		6.3%

Housing Development Finance Corp. Ltd. Financial Services, India		5.7%

Tata Consultancy Services Ltd. IT Services, India		4.0%

Hindustan Unilever Ltd. Household Products, India		2.8%

Axis Bank Ltd. Banks, India		2.4%

Bharti Airtel Ltd. Wireless Telecommunication Services, India		2.2%

Larsen & Toubro Ltd. Construction & Engineering, India		1.8%

ICICI Bank Ltd. Banks, India		1.7%

Bajaj Finance Ltd. Consumer Finance, India		1.6%

Manager’s Discussion

For the same period, the sectors that detracted most from the Fund’s absolute performance were information technology, energy and utilities. Individual holdings that hindered the Fund’s absolute return included Infosys, Reliance Industries and Tata Consultancy Services.

Thank you for your participation in Franklin FTSE India ETF. We look forward to serving your future investment needs.

Dina Ting, CFA

Hailey Harris

Joe Diederich

Basit Amin, CFA

Portfolio Management Team



franklintempleton.com	Annual Report	65

FRANKLIN FTSE INDIA ETF

Performance Summary as of March 31, 2023

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 3/31/23¹

Cumulative Total Return²

Average Annual Total Return²

Based on

NAV³

Based on

market price⁴

Based on

NAV³

Based on

market price⁴

1-Year

-11.65%

-10.43%

-11.65%

-10.43%

3-Year

+78.83%

+82.25%

+21.38%

+22.15%

5-Year

+27.94%

+26.71%

+5.05%

+4.85%

Since Inception (2/6/18)

+22.66%

+23.67%

+4.05%

+4.21%

See page 68 for Performance Summary footnotes.



66	Annual Report	franklintempleton.com

FRANKLIN FTSE INDIA 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.

2/6/18-3/31/23

LOGO

See page 68 for Performance Summary footnotes.



franklintempleton.com	Annual Report	67

FRANKLIN FTSE INDIA ETF

PERFORMANCE SUMMARY

Distributions (4/1/22–3/31/23)

Net Investment

Income

$0.212110

Total Annual Operating Expenses⁶

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. The total annual operating expenses are sourced from the Fund’s prospectus available at the time of publication. Actual expenses may be higher and may impact portfolio 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 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.



68	Annual Report	franklintempleton.com

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 10/1/22		Ending Account Value 3/31/23		Expenses Paid During Period 10/1/22–3/31/23¹		Ending Account Value 3/31/23		Expenses Paid During Period 10/1/22–3/31/23¹		Net Annualized Expense Ratio

	$1,000.00		$960.80		$0.93		$1,023.98		$0.96		0.19	%



franklintempleton.com	Annual Report	69

Franklin FTSE Italy ETF

This annual report for Franklin FTSE Italy ETF covers the fiscal year ended March 31, 2023.

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.


Top 10 Sectors/Industries

3/31/23

		% of Total Net Assets

Banks		23.0%

Automobiles		15.0%

Electric Utilities		13.2%

Oil, Gas & Consumable Fuels		6.7%

Insurance		6.4%

Machinery		4.9%

Gas Utilities		4.4%

Textiles, Apparel & Luxury Goods		3.6%

Diversified Telecommunication Services		3.3%

Electrical Equipment		3.3%

Performance Overview

During the 12-month period, the Fund posted cumulative total returns of +8.58% based on market price and +7.51% based on net asset value. In comparison, the FTSE Italy Capped Index posted a +7.13% total return for the same period.² You can find more of the Fund’s performance data in the Performance Summary beginning on page 72.

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.

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. The Fund may use either a replication strategy or representative sampling strategy. Under a replication strategy, the Fund will 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, it may not be possible or practicable to replicate the Underlying Index. In these circumstances, we may use a representative sampling strategy whereby we will 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 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 Schedule of Investments (SOI). The SOI begins on page 251.



70	Annual Report	franklintempleton.com

FRANKLIN FTSE ITALY ETF


Top 10 Holdings

3/31/23

Company *Sector/Industry, Country*		% of Total Net Assets

Enel SpA Electric Utilities, Italy		9.8%

Intesa Sanpaolo SpA Banks, Italy		8.6%

Stellantis NV Automobiles, United States		8.0%

UniCredit SpA Banks, Italy		7.5%

Ferrari NV Automobiles, Italy		7.1%

Eni SpA Oil, Gas & Consumable Fuels, Italy		6.7%

Assicurazioni Generali SpA Insurance, Italy		4.5%

Moncler SpA Textiles, Apparel & Luxury Goods, Italy		3.6%

CNH Industrial NV Machinery, United Kingdom		3.4%

Snam SpA Gas Utilities, Italy		3.4%

Manager’s Discussion

For the fiscal year ended March 31, 2023, 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 UniCredit, Intesa Sanpaolo and Ferrari.

For the same period, the sectors that detracted most from the Fund’s absolute performance were utilities, information technology and health care. Individual holdings that hindered the Fund’s absolute return included Enel, Assicurazioni Generali and Nexi.

Thank you for your participation in Franklin FTSE Italy ETF. We look forward to serving your future investment needs.

Dina Ting, CFA

Hailey Harris

Joe Diederich

Basit Amin, CFA

Portfolio Management Team



franklintempleton.com	Annual Report	71

FRANKLIN FTSE ITALY ETF

Performance Summary as of March 31, 2023

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 3/31/23¹

Cumulative Total Return²

Average Annual Total Return²

Based on

NAV³

Based on

market price⁴

Based on

NAV³

Based on

market price⁴

1-Year

+7.51%

+8.58%

+7.51%

+8.58%

3-Year

+61.02%

+61.85%

+17.21%

+17.41%

5-Year

+15.13%

+17.38%

+2.86%

+3.26%

Since Inception (11/2/17)

+18.80%

+19.00%

+3.24%

+3.27%

See page 74 for Performance Summary footnotes.



72	Annual Report	franklintempleton.com

FRANKLIN FTSE ITALY 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.

11/2/17-3/31/23

LOGO

See page 74 for Performance Summary footnotes.



franklintempleton.com	Annual Report	73

FRANKLIN FTSE ITALY ETF

PERFORMANCE SUMMARY

Distributions (4/1/22–3/31/23)

Net Investment

Income

$1.071052

Total Annual Operating Expenses⁶

0.09%

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

1. The total annual operating expenses are sourced from the Fund’s prospectus available at the time of publication. Actual expenses may be higher and may impact portfolio 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 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.



74	Annual Report	franklintempleton.com

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 10/1/22		Ending Account Value 3/31/23		Expenses Paid During Period 10/1/22–3/31/23¹		Ending Account Value 3/31/23		Expenses Paid During Period 10/1/22–3/31/23¹		Net Annualized Expense Ratio

	$1,000.00		$1,442.00		$0.55		$1,024.48		$0.45		0.09	%



franklintempleton.com	Annual Report	75

Franklin FTSE Japan ETF

This annual report for Franklin FTSE Japan ETF covers the fiscal year ended March 31, 2023.

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.


Top 10 Sectors/Industries

3/31/23

		% of Total Net Assets

Automobiles		6.9%

Banks		5.9%

Pharmaceuticals		5.9%

Electronic Equipment, Instruments & Components		5.5%

Machinery		5.2%

Trading Companies & Distributors		5.0%

Chemicals		4.3%

Household Durables		4.3%

Semiconductors & Semiconductor Equipment		3.4%

Wireless Telecommunication Services		3.1%

Performance Overview

During the 12-month period, the Fund posted cumulative total returns of -2.73% based on market price and -4.61% based on net asset value. In comparison, the FTSE Japan Capped Index posted a -4.66% total return for the same period.² You can find more of the Fund’s performance data in the Performance Summary beginning on page 78.

Investment Strategy

The Fund, using a “passive” or indexing investment approach, seeks investment results that closely correspond, before fees and expenses, to the performance of the FTSE Japan Capped Index. The Fund may use either a replication strategy or representative sampling strategy. Under a replication strategy, the Fund will 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, it may not be possible or practicable to replicate the Underlying Index. In these circumstances, we may use a representative sampling strategy whereby we will 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 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 Schedule of Investments (SOI). The SOI begins on page 253.



76	Annual Report	franklintempleton.com

FRANKLIN FTSE JAPAN ETF


Top 10 Holdings

3/31/23

Company *Sector/Industry, Country*		% of Total Net Assets

Toyota Motor Corp. Automobiles, Japan		4.4%

Sony Group Corp. Household Durables, Japan		2.9%

Keyence Corp. Electronic Equipment, Instruments & Components, Japan		2.5%

Mitsubishi UFJ Financial Group, Inc. Banks, Japan		1.9%

Daiichi Sankyo Co. Ltd. Pharmaceuticals, Japan		1.8%

Shin-Etsu Chemical Co. Ltd. Chemicals, Japan		1.6%

Tokyo Electron Ltd. Semiconductors & Semiconductor Equipment, Japan		1.4%

Sumitomo Mitsui Financial Group, Inc. Banks, Japan		1.3%

KDDI Corp. Wireless Telecommunication Services, Japan		1.3%

Hitachi Ltd. Industrial Conglomerates, Japan		1.3%

Manager’s Discussion

For the fiscal year ended March 31, 2023, the sectors that contributed most to the Fund’s absolute performance were financials, consumer staples and health care. Individual holdings that lifted the Fund’s absolute return included Daiichi Sankyo, Sumitomo Mitsui Financial Group and Takeda Pharmaceutical.

For the same period, the sectors that detracted most from the Fund’s absolute performance were consumer discretionary, industrials and information technology. Individual holdings that hindered the Fund’s absolute return included Toyota Motor, Recruit Holdings and Tokyo Electron.

Thank you for your participation in Franklin FTSE Japan ETF. We look forward to serving your future investment needs.

Dina Ting, CFA

Hailey Harris

Joe Diederich

Basit Amin, CFA

Portfolio Management Team



franklintempleton.com	Annual Report	77

FRANKLIN FTSE JAPAN ETF

Performance Summary as of March 31, 2023

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 3/31/23¹

Cumulative Total Return²

Average Annual Total Return²

Based on
NAV³

Based on
market price⁴

Based on
NAV³

Based on
market price⁴

1-Year

-4.61%

-2.73%

-4.61%

-2.73%

3-Year

+24.12%

+26.22%

+7.47%

+8.07%

5-Year

+6.71%

+6.04%

+1.31%

+1.18%

Since Inception (11/2/17)

+9.20%

+10.08%

+1.64%

+1.79%

See page 80 for Performance Summary footnotes.



78	Annual Report	franklintempleton.com

FRANKLIN FTSE JAPAN 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.

11/2/17-3/31/23

LOGO

See page 80 for Performance Summary footnotes.



franklintempleton.com	Annual Report	79

FRANKLIN FTSE JAPAN ETF

PERFORMANCE SUMMARY

Distributions (4/1/22–3/31/23)

Net Investment

Income

$0.460631

Total Annual Operating Expenses⁶

0.09%

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

1. The total annual operating expenses are as of the Fund’s prospectus available at the time of publication. Actual expenses may be higher and may impact portfolio 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 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.



80	Annual Report	franklintempleton.com

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 10/1/22		Ending Account Value 3/31/23		Expenses Paid During Period 10/1/22–3/31/23¹		Ending Account Value 3/31/23		Expenses Paid During Period 10/1/22–3/31/23¹		Net Annualized Expense Ratio

	$1,000.00		$1,197.00		$0.49		$1,024.48		$0.45		0.09	%



franklintempleton.com	Annual Report	81

Franklin FTSE Japan Hedged ETF

This annual report for Franklin FTSE Japan Hedged ETF covers the fiscal year ended March 31, 2023.

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).


Top 10 Sectors/Industries

3/31/23

		% of Total Net Assets

Automobiles		6.9%

Banks		5.9%

Pharmaceuticals		5.8%

Electronic Equipment, Instruments & Components		5.4%

Machinery		5.2%

Trading Companies & Distributors		4.9%

Chemicals		4.3%

Household Durables		4.3%

Semiconductors & Semiconductor Equipment		3.4%

Wireless Telecommunication Services		3.0%

Performance Overview

During the 12-month period, the Fund posted cumulative total returns of +9.47% based on market price and +8.15% based on net asset value. In comparison, the FTSE Japan Capped Hedged Index posted a +8.38% total return for the same period.² You can find more of the Fund’s performance data in the Performance Summary beginning on page 84.

Investment Strategy

The Fund, using a “passive” or indexing investment approach, seeks investment results that closely correspond, before fees and expenses, to the performance of the FTSE Japan Capped Hedged Index. The Fund may use either a replication strategy or representative sampling strategy. Under a replication strategy, the Fund will 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, it may not be possible or practicable to replicate the Underlying Index. In these circumstances, we may use a representative sampling strategy whereby we will invest in what we believe to be a representative sample of the component securities of the Underlying Index, but may not track the Underlying Index with the same degree of accuracy as would an investment vehicle replicating the entire Underlying Index. Under the representative sampling technique, we will select securities that collectively have an investment profile similar to that of the Underlying Index, including securities that resemble those included in the Underlying Index in terms of risk factors, performance attributes and other characteristics, such as market capitalization and industry weightings. We intend to enter into monthly foreign currency forward contracts and/or currency futures contracts designed to offset the Fund’s exposure to the Japanese yen, in order to replicate the hedge impact incorporated in the calculation of the Underlying Index. The Fund’s exposure to foreign currency forward contracts and currency futures contracts is based on the aggregate exposure of the Fund to the Japanese yen.

1. The FTSE Japan Capped Hedged Index is a free float-adjusted market capitalization-weighted index maintained and calculated by FTSE Russell with a capping methodology applied quarterly to issuer weights so that no single issuer of a component exceeds 25% of the index weight, and all issuers with weights above 5% do not cumulatively exceed 50% of the index’s weight. The FTSE Japan Capped Hedged Index is based on the FTSE Japan Hedged to USD Index and is designed to measure the performance of Japanese large- 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 Schedule of Investments (SOI). The SOI begins on page 264.



82	Annual Report	franklintempleton.com

FRANKLIN FTSE JAPAN HEDGED ETF

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 Holdings

3/31/23

Company *Sector/Industry, Country*		% of Total Net Assets

Toyota Motor Corp. Automobiles, Japan		4.4%

Sony Group Corp. Household Durables, Japan		2.9%

Keyence Corp. Electronic Equipment, Instruments & Components, Japan		2.4%

Mitsubishi UFJ Financial Group, Inc. Banks, Japan		1.9%

Daiichi Sankyo Co. Ltd. Pharmaceuticals, Japan		1.7%

Shin-Etsu Chemical Co. Ltd. Chemicals, Japan		1.6%

Tokyo Electron Ltd. Semiconductors & Semiconductor Equipment, Japan		1.4%

Sumitomo Mitsui Financial Group, Inc. Banks, Japan		1.3%

Hitachi Ltd. Industrial Conglomerates, Japan		1.3%

Takeda Pharmaceutical Co. Ltd. Pharmaceuticals, Japan		1.3%

Manager’s Discussion

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

Joe Diederich

Basit Amin, CFA

Portfolio Management Team



franklintempleton.com	Annual Report	83

FRANKLIN FTSE JAPAN HEDGED ETF

Performance Summary as of March 31, 2023

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 3/31/23¹

Cumulative Total Return²

Average Annual Total Return²

Based on

NAV³

Based on

market price⁴

Based on

NAV³

Based on

market price⁴

1-Year

+8.15%

+9.47%

+8.15%

+9.47%

3-Year

+58.58%

+61.52%

+16.61%

+17.33%

5-Year

+43.73%

+44.99%

+7.52%

+7.71%

Since Inception (11/2/17)

+38.30%

+39.13%

+6.18%

+6.30%

See page 86 for Performance Summary footnotes.



84	Annual Report	franklintempleton.com

FRANKLIN FTSE JAPAN HEDGED 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.

11/2/17-3/31/23

LOGO

See page 86 for Performance Summary footnotes.



franklintempleton.com	Annual Report	85

FRANKLIN FTSE JAPAN HEDGED ETF

PERFORMANCE SUMMARY


Distributions (4/1/22–3/31/23)

Net Investment Income	Short-Term Capital Gain		Long-Term Capital Gain		Total

$0.924931		$2.106927		$3.446187	$6.478045


Total Annual Operating Expenses⁶


0.09%

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

1. The total annual operating expenses are as of the Fund’s prospectus available at the time of publication. Actual expenses may be higher and may impact portfolio 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 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.



86	Annual Report	franklintempleton.com

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 10/1/22	Ending Account Value 3/31/23		Expenses Paid During Period 10/1/22–3/31/23¹		Ending Account Value 3/31/23		Expenses Paid During Period 10/1/22–3/31/23¹		Net Annualized Expense Ratio

$1,000.00		$1,120.70		$0.48		$1,024.48		$0.45		0.09%



franklintempleton.com	Annual Report	87

Franklin FTSE Latin America ETF

This annual report for Franklin FTSE Latin America ETF covers the fiscal year ended March 31, 2023.

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.


Top 10 Sectors/Industries

3/31/23

		% of Total Net Assets

Banks		18.3%

Metals & Mining		15.0%

Oil, Gas & Consumable Fuels		10.2%

Beverages		6.8%

Consumer Staples Distribution & Retail		6.0%

Electric Utilities		5.7%

Wireless Telecommunication Services		5.2%

Food Products		3.8%

Transportation Infrastructure		3.4%

Capital Markets		2.8%

Performance Overview

During the 12-month period, the Fund posted cumulative total returns of -11.38% based on market price and -11.05% based on net asset value. In comparison, the FTSE Latin America Capped Index posted a -10.75% total return for the same period.² You can find more of the Fund’s performance data in the Performance Summary beginning on page 90.

Investment Strategy

The Fund, using a “passive” or indexing investment approach, seeks investment results that closely correspond, before fees and expenses, to the performance of the FTSE Latin America Capped Index. The Fund may use either a replication strategy or representative sampling strategy. Under a replication strategy, the Fund will 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, it may not be possible or practicable to replicate the Underlying Index. In these circumstances, we may use a representative sampling strategy whereby we will 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 Schedule of Investments (SOI). The SOI begins on page 276.



88	Annual Report	franklintempleton.com

FRANKLIN FTSE MEXICO ETF


Top 10 Holdings

3/31/23

Company *Sector/Industry, Country*		% of Total Net Assets

Vale SA Metals & Mining, Brazil		10.2%

Petroleo Brasileiro SA, 43.945%, pfd. Oil, Gas & Consumable Fuels, Brazil		7.5%

America Movil SAB de CV Wireless Telecommunication Services, Mexico		4.9%

Itau Unibanco Holding SA, 4.349%, pfd. Banks, Brazil		4.2%

Grupo Financiero Banorte SAB de CV, Class O Banks, Mexico		4.0%

Wal-Mart de Mexico SAB de CV, Class V Consumer Staples Distribution & Retail, Mexico		3.4%

Fomento Economico Mexicano SAB de CV Beverages, Mexico		2.9%

Banco Bradesco SA, 6.492%, pfd. Banks, Brazil		2.8%

Grupo Mexico SAB de CV,Class B Metals & Mining, Mexico		2.5%

B3 SA - Brasil Bolsa Balcao Capital Markets, Brazil		2.1%


Country Composition

3/31/23

		% of Total Net Assets

Brazil		57.8%

Mexico		32.4%

Chile		6.9%

Colombia		1.6%

United States		1.0%

Manager’s Discussion

For the fiscal year ended March 31, 2023, the sectors that contributed most to the Fund’s absolute performance were energy, industrials and real estate. Individual holdings that lifted the Fund’s absolute return included Petroleo Brasileiro, Grupo Financiero Banorte and Grupo Bimbo.

For the same period, the sectors that detracted most from the Fund’s absolute performance were materials, financials and consumer discretionary. Individual holdings that hindered the Fund’s absolute return included Vale, Hapvida Participacoes e Investimentos and Banco Bradesco.

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

Joe Diederich

Basit Amin, CFA

Portfolio Management Team



franklintempleton.com	Annual Report	89

FRANKLIN FTSE LATIN AMERICA ETF

Performance Summary as of March 31, 2023

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 3/31/23¹

Cumulative Total Return²

Average Annual Total Return²

Based on

NAV³

Based on

market price⁴

Based on

NAV³

Based on

market price⁴

1-Year

-11.05%

-11.38%

-11.05%

-11.38%

3-Year

+62.47%

+61.31%

+17.56%

+17.28%

Since Inception (10/9/18)

-1.94%

-2.08%

-0.44%

-0.47%

See page 92 for Performance Summary footnotes.



90	Annual Report	franklintempleton.com

FRANKLIN FTSE LATIN AMERICA 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.

10/9/18-3/31/23

LOGO

See page 92 for Performance Summary footnotes.



franklintempleton.com	Annual Report	91

FRANKLIN FTSE LATIN AMERICA ETF

PERFORMANCE SUMMARY

Distributions (4/1/22–3/31/23)

Net Investment

Income

$1.874424

Total Annual Operating Expenses⁶

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. The total annual operating expenses are as of the Fund’s prospectus available at the time of publication. Actual expenses may be higher and may impact portfolio 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 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.



92	Annual Report	franklintempleton.com

FRANKLIN FTSE LATIN AMERICA ETF

Your Fund’s Expenses

Actual Fund Expenses

Hypothetical Example for Comparison with Other Funds

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


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

Beginning Account Value 10/1/22		Ending Account Value 3/31/23		Expenses Paid During Period 10/1/22–3/31/23¹		Ending Account Value 3/31/23		Expenses Paid During Period 10/1/22–3/31/23¹		Net Annualized Expense Ratio

	$1,000.00		$1,096.90		$0.99		$1,023.98		$0.96		0.19	%



franklintempleton.com	Annual Report	93

Franklin FTSE Mexico ETF

This annual report for Franklin FTSE Mexico ETF covers the fiscal year ended March 31, 2023.

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.


Top 10 Sectors/Industries

3/31/23

		% of Total Net Assets

Banks		18.3%

Beverages		14.0%

Wireless Telecommunication Services		12.7%

Consumer Staples Distribution & Retail		10.8%

Transportation Infrastructure		10.1%

Metals & Mining		8.1%

Food Products		6.9%

Construction Materials		4.8%

Diversified REITs		4.0%

Industrial Conglomerates		2.9%

Performance Overview

During the 12-month period, the Fund posted cumulative total returns of +11.15% based on market price and +11.15% based on net asset value. In comparison, the FTSE Mexico Capped Index posted a +11.23% total return for the same period.² You can find more of the Fund’s performance data in the Performance Summary beginning on page 96.

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. The Fund may use either a replication strategy or representative sampling strategy. Under a replication strategy, the Fund will 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, it may not be possible or practicable to replicate the Underlying Index. In these circumstances, we may use a representative sampling strategy whereby we will 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 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 Schedule of Investments (SOI). The SOI begins on page 281.



94	Annual Report	franklintempleton.com

FRANKLIN FTSE MEXICO ETF


Top 10 Holdings

3/31/23

Company *Sector/Industry, Country*		% of Total Net Assets

America Movil SAB de CV Wireless Telecommunication Services, Mexico		12.7%

Grupo Financiero Banorte SAB de CV, Class O Banks, Mexico		10.6%

Wal-Mart de Mexico SAB de CV, Class V Consumer Staples Distribution & Retail, Mexico		9.1%

Fomento Economico Mexicano SAB de CV Beverages, Mexico		7.9%

Grupo Mexico SAB de CV, Class B Metals & Mining, Mexico		6.9%

Grupo Bimbo SAB de CV Food Products, Mexico		4.8%

Cemex SAB de CV Construction Materials, Mexico		4.0%

Grupo Aeroportuario del Pacifico SAB de CV, Class B Transportation Infrastructure, Mexico		3.5%

Grupo Aeroportuario del Sureste SAB de CV, Class B Transportation Infrastructure, Mexico		3.3%

Grupo Financiero Inbursa SAB de CV, Class O Banks, Mexico		2.7%

Manager’s Discussion

For the fiscal year ended March 31, 2023, the sectors that contributed most to the Fund’s absolute performance were consumer staples, financials and industrials. Individual holdings that lifted the Fund’s absolute return included Grupo Financiero Banorte, Grupo Bimbo and Fomento Economico Mexicano.

For the same period, the sectors that detracted from the Fund’s absolute performance were communication services and materials. Individual holdings that hindered the Fund’s absolute return included Grupo Mexico, Grupo Televisa and Controladora Vuela Cia de Aviacion.

Thank you for your participation in Franklin FTSE Mexico ETF. We look forward to serving your future investment needs.

Dina Ting, CFA

Hailey Harris

Joe Diederich

Basit Amin, CFA

Portfolio Management Team



franklintempleton.com	Annual Report	95

FRANKLIN FTSE MEXICO ETF

Performance Summary as of March 31, 2023

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 3/31/23¹

Cumulative Total Return²

Average Annual Total Return²

Based on

NAV³

Based on

market price⁴

Based on

NAV³

Based on

market price⁴

1-Year

+11.15%

3-Year

+123.85%

+126.03%

+30.81%

+31.24%

5-Year

+35.79%

+33.63%

+6.31%

+5.97%

Since Inception (11/3/17)

+36.65%

+36.90%

+5.95%

+5.98%

See page 98 for Performance Summary footnotes.



96	Annual Report	franklintempleton.com

FRANKLIN FTSE MEXICO 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.

11/3/17-3/31/23

LOGO

See page 98 for Performance Summary footnotes.



franklintempleton.com	Annual Report	97

FRANKLIN FTSE MEXICO ETF

PERFORMANCE SUMMARY


Distributions (4/1/22–3/31/23)

Net Investment Income

$1.033231


Total Annual Operating Expenses⁶


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. The total annual operating expenses are as of the Fund’s prospectus available at the time of publication. Actual expenses may be higher and may impact portfolio 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 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.



98	Annual Report	franklintempleton.com

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 10/1/22	Ending Account Value 3/31/23		Expenses Paid During Period 10/1/22–3/31/23¹		Ending Account Value 3/31/23		Expenses Paid During Period 10/1/22–3/31/23¹		Net Annualized Expense Ratio

$1,000.00		$1,362.30		$1.12		$1,023.98		$0.96		0.19	%



franklintempleton.com	Annual Report	99

Franklin FTSE Saudi Arabia ETF

This annual report for Franklin FTSE Saudi Arabia ETF covers the fiscal year ended March 31, 2023.

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.


Top 10 Sectors/Industries

3/31/23

		% of Total Net Assets

Banks		39.2%

Chemicals		15.7%

Oil, Gas & Consumable Fuels		8.3%

Diversified Telecommunication Services		6.4%

Metals & Mining		4.8%

Health Care Providers & Services		4.5%

Food Products		2.6%

Wireless Telecommunication Services		2.2%

Insurance		1.9%

Independent Power Producers & Energy Traders		1.9%

Performance Overview

During the 12-month period, the Fund posted cumulative total returns of -16.62% based on market price and -17.04% based on net asset value. In comparison, the FTSE Saudi Arabia Capped Index posted a -16.89% total return for the same period.² You can find more of the Fund’s performance data in the Performance Summary beginning on page 102.

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. The Fund may use either a replication strategy or representative sampling strategy. Under a replication strategy, the Fund will 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, it may not be possible or practicable to replicate the Underlying Index. In these circumstances, we may use a representative sampling strategy whereby we will 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.



100	Annual Report	franklintempleton.com

FRANKLIN FTSE SAUDI ARABIA ETF


Top 10 Holdings

3/31/23

Company *Sector/Industry, Country*		% of Total Net Assets

Al Rajhi Bank Banks, Saudi Arabia		12.0%

Saudi National Bank Banks, Saudi Arabia		8.6%

Saudi Arabian Oil Co. Oil, Gas & Consumable Fuels, Saudi Arabia		7.8%

Saudi Basic Industries Corp. Chemicals, Saudi Arabia		7.1%

Saudi Telecom Co. Diversified Telecommunication Services, Saudi Arabia		6.4%

Saudi Arabian Mining Co. Metals & Mining, Saudi Arabia		4.8%

Riyad Bank Banks, Saudi Arabia		4.5%

Saudi British Bank Banks, Saudi Arabia		3.6%

SABIC Agri-Nutrients Co. Chemicals, Saudi Arabia		3.1%

Alinma Bank Banks, Saudi Arabia		3.0%

Manager’s Discussion

For the fiscal year ended March 31, 2023, the sectors that contributed most to the Fund’s absolute performance were health care, information technology and real estate. Individual holdings that lifted the Fund’s absolute return included Dr. Sulaiman Al Habib Medical Services Group, Elm and Dar Al Arkan Real Estate Development.

For the same period, the sectors that detracted most from the Fund’s absolute performance were financials, materials and energy. Individual holdings that hindered the Fund’s absolute return included Al Rajhi Bank, Saudi National Bank and Saudi Basic Industries.

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

Joe Diederich

Basit Amin, CFA

Portfolio Management Team



franklintempleton.com	Annual Report	101

FRANKLIN FTSE SAUDI ARABIA ETF

Performance Summary as of March 31, 2023

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 3/31/23¹

Cumulative Total Return²

Average Annual Total Return²

Based on
NAV³

Based on
market price⁴

Based on
NAV³

Based on
market price⁴

1-Year

-17.04%

-16.62%

-17.04%

-16.62%

3-Year

+77.70%

+75.62%

+21.12%

+20.65%

Since Inception (10/9/18)

+49.41%

+50.17%

+9.39%

+9.51%

See page 104 for Performance Summary footnotes.



102	Annual Report	franklintempleton.com

FRANKLIN FTSE SAUDI ARABIA 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.

10/9/18-3/31/23

LOGO

See page 104 for Performance Summary footnotes.



franklintempleton.com	Annual Report	103

FRANKLIN FTSE SAUDI ARABIA ETF

PERFORMANCE SUMMARY

Distributions (4/1/22–3/31/23)

Net Investment

Income

$0.631727

Total Annual Operating Expenses⁶

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. The total annual operating expenses are as of the Fund’s prospectus available at the time of publication. Actual expenses may be higher and may impact portfolio 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 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.



104	Annual Report	franklintempleton.com

FRANKLIN FTSE SAUDI ARABIA ETF

Your Fund’s Expenses

Actual Fund Expenses

The table below provides information about actual account values and actual expenses in the columns under the heading “Actual.” In these columns the Fund’s actual return, which includes the effect of Fund expenses, is used to calculate the “Ending Account Value.” You can estimate the expenses you paid during the period by following these steps (of course, your account value and expenses will differ from those in this illustration): Divide your account value by $1,000 (if your account had an $8,600 value, then $8,600 ÷ $1,000 = 8.6). Then multiply the result by the number in the row under the headings “Actual” and “Expenses Paid During Period”(if Actual Expenses Paid During Period were $7.50, then 8.6 × $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 10/1/22		Ending Account Value 3/31/23		Expenses Paid During Period 10/1/22–3/31/23¹		Ending Account Value 3/31/23		Expenses Paid During Period 10/1/22–3/31/23¹		Net Annualized Expense Ratio

	$1,000.00		$933.10		$1.88		$1,022.99		$1.97		0.39	%



franklintempleton.com	Annual Report	105

Franklin FTSE South Africa ETF

This annual report for Franklin FTSE South Africa ETF covers the fiscal year ended March 31, 2023.

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.


Top 10 Sectors/Industries

3/31/23

		% of Total Net Assets

Metals & Mining		19.6%

Internet & Direct Marketing Retail		15.0%

Banks		14.6%

Financial Services		8.7%

Consumer Staples Distribution & Retail		7.7%

Wireless Telecommunication Services		7.2%

Insurance		6.8%

Chemicals		3.2%

Specialty Retail		2.4%

Industrial Conglomerates		2.0%

Performance Overview

During the 12-month period, the Fund posted cumulative total returns of -21.29% based on market price and -20.97% based on net asset value. In comparison, the FTSE/JSE South Africa Capped Index posted a -20.98% total return for the same period.² You can find more of the Fund’s performance data in the Performance Summary beginning on page 108.

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. The Fund may use either a replication strategy or representative sampling strategy. Under a replication strategy, the Fund will 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, it may not be possible or practicable to replicate the Underlying Index. In these circumstances, we may use a representative sampling strategy whereby we will invest in what we believe to be a representative sample of the component securities of the Underlying Index, but may not track the Underlying Index with the same degree of accuracy as would an investment vehicle replicating the entire Underlying Index. Under the representative sampling technique, we will select securities that collectively have an investment profile similar to that of the Underlying Index, including securities that resemble those included in the Underlying Index in terms of risk factors, performance attributes and other characteristics, such as market capitalization and industry weightings. The Fund will concentrate its investments (i.e., hold 25% or more of its net assets) in a particular industry or group of industries to approximately the same extent that the Underlying Index is concentrated.

1. The FTSE/JSE South Africa Capped Index is a free float-adjusted market capitalization-weighted index maintained and calculated by FTSE Russell with a capping methodology applied quarterly to issuer weights so that no single issuer of a component exceeds 25% of the index weight, and all issuers with weights above 5% do not cumulatively exceed 50% of the index’s weight. The FTSE/JSE South Africa Capped Index is based on the FTSE South Africa Index and is designed to measure the performance of South African large- 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 Schedule of Investments (SOI).

The SOI begins on page 286.



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FRANKLIN FTSE SOUTH AFRICA ETF


Top 10 Holdings

3/31/23

Company *Sector/Industry, Country*	% of Total Net Assets

Naspers Ltd., Class N Internet & Direct Marketing Retail, South Africa		15.0%

FirstRand Ltd. Financial Services, South Africa		7.1%

Standard Bank Group Ltd. Banks, South Africa		5.4%

MTN Group Ltd. Wireless Telecommunication Services, South Africa		5.4%

Gold Fields Ltd. Metals & Mining, South Africa		4.9%

AngloGold Ashanti Ltd. Metals & Mining, South Africa		4.3%

Absa Group Ltd. Banks, South Africa		3.6%

Capitec Bank Holdings Ltd. Banks, South Africa		3.4%

Sasol Ltd. Chemicals, South Africa		3.2%

Impala Platinum Holdings Ltd. Metals & Mining, South Africa		3.2%

Manager’s Discussion

For the fiscal year ended March 31, 2023, the only sector that contributed to the Fund’s absolute performance was consumer discretionary. Individual holdings that lifted the Fund’s absolute return included Naspers, AngloGold Ashanti and Gold Fields.

For the same period, the sectors that detracted most from the Fund’s absolute performance were financials, materials and communication services. Individual holdings that hindered the Fund’s absolute return included MTN Group, FirstRand and Sasol.

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

Joe Diederich

Basit Amin, CFA

Portfolio Management Team



franklintempleton.com	Annual Report	107

FRANKLIN FTSE SOUTH AFRICA ETF

Performance Summary as of March 31, 2023

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 3/31/23¹

Cumulative Total Return²

Average Annual Total Return²

Based on

NAV³

Based on

market price⁴

Based on

NAV³

Based on

market price⁴

1-Year

-20.97%

-21.29%

-20.97%

-21.29%

3-Year

+71.02%

+72.38%

+19.59%

+19.90%

Since Inception (10/10/18)

+15.00%

+14.45%

+3.17%

+3.06%

See page 110 for Performance Summary footnotes.



108	Annual Report	franklintempleton.com

FRANKLIN FTSE SOUTH AFRICA 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.

10/10/18-3/31/23

LOGO

See page 110 for Performance Summary footnotes.



franklintempleton.com	Annual Report	109

FRANKLIN FTSE SOUTH AFRICA ETF

PERFORMANCE SUMMARY

Distributions (4/1/22–3/31/23)

Net Investment
Income

$1.079778

Total Annual Operating Expenses⁶

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. The total annual operating expenses are as of the Fund’s prospectus available at the time of publication. Actual expenses may be higher and may impact portfolio 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 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.



110	Annual Report	franklintempleton.com

FRANKLIN FTSE SOUTH AFRICA ETF

Your Fund’s Expenses

Actual Fund Expenses

The table below provides information about actual account values and actual expenses in the columns under the heading “Actual.” In these columns the Fund’s actual return, which includes the effect of Fund expenses, is used to calculate the “Ending Account Value.” You can estimate the expenses you paid during the period by following these steps (of course, your account value and expenses will differ from those in this illustration): Divide your account value by $1,000 (if your account had an $8,600 value, then $8,600 ÷ $1,000 = 8.6). Then multiply the result by the number in the row under the headings “Actual” and “Expenses Paid During Period” (if Actual Expenses Paid During Period were $7.50, then 8.6 × $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 10/1/22		Ending Account Value 3/31/23		Expenses Paid During Period 10/1/22–3/31/23¹		Ending Account Value 3/31/23		Expenses Paid During Period 10/1/22–3/31/23¹		Net Annualized Expense Ratio

	$1,000.00		$1,166.10		$1.03		$1,023.98		$0.96		0.19	%



franklintempleton.com	Annual Report	111

Franklin FTSE South Korea ETF

This annual report for Franklin FTSE South Korea ETF covers the fiscal year ended March 31, 2023.

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.


Top 10 Sectors/Industries 3/31/23

		% of Total Net Assets

Technology Hardware, Storage & Peripherals		20.5%

Banks		7.1%

Electronic Equipment, Instruments & Components		7.1%

Chemicals		6.0%

Automobiles		5.7%

Semiconductors & Semiconductor Equipment		5.7%

Interactive Media & Services		5.2%

Electrical Equipment		4.1%

Metals & Mining		3.9%

Industrial Conglomerates		2.9%

Performance Overview

During the 12-month period, the Fund posted cumulative total returns of -14.50% based on market price and -15.00% based on net asset value. In comparison, the FTSE South Korea Capped Index posted a -15.05% total return for the same period.² You can find more of the Fund’s performance data in the Performance Summary beginning on page 114.

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. The Fund may use either a replication strategy or representative sampling strategy. Under a replication strategy, the Fund will 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, it may not be possible or practicable to replicate the Underlying Index. In these circumstances, we may use a representative sampling strategy whereby we will 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 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 Schedule of Investments (SOI).

The SOI begins on page 289.



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FRANKLIN FTSE SOUTH KOREA ETF


Top 10 Holdings

3/31/23

Company *Sector/Industry, Country*		% of Total Net Assets

Samsung Electronics Co. Ltd. Technology Hardware, Storage & Peripherals, South Korea		20.4%

SK Hynix, Inc. Semiconductors & Semiconductor Equipment, South Korea		5.3%

Samsung SDI Co. Ltd. Electronic Equipment, Instruments & Components, South Korea		4.3%

LG Chem Ltd. Chemicals, South Korea		3.9%

Hyundai Motor Co. Automobiles, South Korea		3.4%

NAVER Corp. Interactive Media & Services, South Korea		3.2%

POSCO Holdings, Inc. Metals & Mining, South Korea		3.0%

Kia Corp. Automobiles, South Korea		2.3%

LG Energy Solution Ltd. Electrical Equipment, South Korea		2.2%

KB Financial Group, Inc. Banks, South Korea		2.0%

Manager’s Discussion

For the fiscal year ended March 31, 2023, the only sector that contributed to the Fund’s absolute performance was materials. Individual holdings that lifted the Fund’s absolute return included LG Chem, Samsung SDI and POSCO.

For the same period, the sectors that detracted most from the Fund’s absolute performance were communication services, information technology and financials. Individual holdings that hindered the Fund’s absolute return included NAVER, SK Hynix and Kakao.

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

Joe Diederich

Basit Amin, CFA

Portfolio Management Team



franklintempleton.com	Annual Report	113

FRANKLIN FTSE SOUTH KOREA ETF

Performance Summary as of March 31, 2023

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 3/31/23¹



	Cumulative Total Return²				Average Annual Total Return²

	Based on NAV³		Based on market price⁴		Based on NAV³		Based on market price⁴

1-Year		-15.00%		-14.50%		-15.00%		-14.50%

3-Year		+35.60%		+35.09%		+10.69%		+10.55%

5-Year		-10.04%		-11.95%		-2.09%		-2.51%

Since Inception (11/2/17)		-8.39%		-8.65%		-1.61%		-1.66%

See page 116 for Performance Summary footnotes.



114	Annual Report	franklintempleton.com

FRANKLIN FTSE SOUTH KOREA 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.

11/2/17-3/31/23

LOGO

See page 116 for Performance Summary footnotes.



franklintempleton.com	Annual Report	115

FRANKLIN FTSE SOUTH KOREA ETF

PERFORMANCE SUMMARY

Distributions (4/1/22–3/31/23)

Net Investment

Income

$0.610881

Total Annual Operating Expenses⁶

0.09%

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

1. The total annual operating expenses are as of the Fund’s prospectus available at the time of publication. Actual expenses may be higher and may impact portfolio 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 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.



116	Annual Report	franklintempleton.com

FRANKLIN FTSE SOUTH KOREA ETF

Your Fund’s Expenses

Actual Fund Expenses

The table below provides information about actual account values and actual expenses in the columns under the heading “Actual.” In these columns the Fund’s actual return, which includes the effect of Fund expenses, is used to calculate the “Ending Account Value.” You can estimate the expenses you paid during the period by following these steps (of course, your account value and expenses will differ from those in this illustration): Divide your account value by $1,000 (if your account had an $8,600 value, then $8,600 ÷ $1,000 = 8.6). Then multiply the result by the number in the row under the headings “Actual” and “Expenses Paid During Period” (if Actual Expenses Paid During Period were $7.50, then 8.6 × $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 10/1/22		Ending Account Value 3/31/23		Expenses Paid During Period 10/1/22–3/31/23¹		Ending Account Value 3/31/23		Expenses Paid During Period 10/1/22–3/31/23¹		Net Annualized Expense Ratio

	$1,000.00		$1,282.30		$0.51		$1,024.48		$0.45		0.09	%



franklintempleton.com	Annual Report	117

Franklin FTSE Switzerland ETF

This annual report for Franklin FTSE Switzerland ETF covers the fiscal year ended March 31, 2023.

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.


Top 10 Sectors/Industries

3/31/23

		% of Total Net Assets

Pharmaceuticals		23.4%

Food Products		21.9%

Insurance		8.9%

Capital Markets		6.7%

Textiles, Apparel & Luxury Goods		6.2%

Chemicals		5.5%

Health Care Equipment & Supplies		4.8%

Life Sciences Tools & Services		3.7%

Electrical Equipment		3.4%

Construction Materials		2.6%

Performance Overview

During the 12-month period, the Fund posted cumulative total returns of -5.59% based on market price and -6.23% based on net asset value. In comparison, the FTSE Switzerland Capped Index posted a -6.57% total return for the same period.² You can find more of the Fund’s performance data in the Performance Summary beginning on page 120.

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. The Fund may use either a replication strategy or representative sampling strategy. Under a replication strategy, the Fund will 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, it may not be possible or practicable to replicate the Underlying Index. In these circumstances, we may use a representative sampling strategy whereby we will invest in what we believe to be a representative sample of the component securities of the Underlying Index, but may not track the Underlying Index with the same degree of accuracy as would an investment vehicle replicating the entire Underlying Index. Under the representative sampling technique, we will select securities that collectively have an investment profile similar to that of the Underlying Index, including securities that resemble those included in the Underlying Index in terms of risk factors, performance attributes and other characteristics, such as market capitalization and industry weightings. The Fund will concentrate its investments (i.e., hold 25% or more of its net assets) in a particular industry or group of industries to approximately the same extent that the Underlying Index is concentrated.

1. The FTSE Switzerland Capped Index is a free float-adjusted market-capitalization weighted index maintained and calculated by FTSE Russell with a capping methodology applied quarterly to issuer weights so that no single issuer of a component exceeds 25% of the index weight, and all issuers with weights above 5% do not cumulatively exceed 50% of the index’s weight. The FTSE Switzerland Capped Index is based on the FTSE Switzerland Index and is designed to measure the performance of Swiss large- 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 Schedule of Investments (SOI).

The SOI begins on page 294.



118	Annual Report	franklintempleton.com

FRANKLIN FTSE SWITZERLAND ETF


Top 10 Holdings

3/31/23

Company *Sector/Industry, Country*	% of Total Net Assets

Nestle SA Food Products, Switzerland		19.3%

Roche Holding AG Pharmaceuticals, Switzerland		12.3%

Novartis AG Pharmaceuticals, Switzerland		11.0%

Cie Financiere Richemont SA, Class A Textiles, Apparel & Luxury Goods, Switzerland		5.2%

Zurich Insurance Group AG Insurance, Switzerland		4.3%

UBS Group AG Capital Markets, Switzerland		3.8%

ABB Ltd. Electrical Equipment, Switzerland		3.4%

Lonza Group AG Life Sciences Tools & Services, Switzerland		3.1%

Sika AG Chemicals, Switzerland		2.8%

Holcim AG, Class B Construction Materials, United States		2.6%

Manager’s Discussion

For the fiscal year ended March 31, 2023, the sectors that contributed most to the Fund’s absolute performance were consumer discretionary, industrials and communication services. Individual holdings that lifted the Fund’s absolute return included Cie Financiere Richemont, Novartis and Holcim.

For the same period, the sectors that detracted most from the Fund’s absolute performance were health care, consumer staples and financials. Individual holdings that hindered the Fund’s absolute return included Roche Holding, Credit Suisse Group and Nestle.

Thank you for your participation in Franklin FTSE Switzerland ETF. We look forward to serving your future investment needs.

Dina Ting, CFA

Hailey Harris

Joe Diederich

Basit Amin, CFA

Portfolio Management Team



franklintempleton.com	Annual Report	119

FRANKLIN FTSE SWITZERLAND ETF

Performance Summary as of March 31, 2023

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 3/31/23¹

Cumulative Total Return²

Average Annual Total Return²

Based on
NAV³

Based on
market price⁴

Based on
NAV³

Based on
market price⁴

1-Year

-6.23%

-5.59%

-6.23%

-5.59%

3-Year

+36.60%

+37.36%

+10.96%

+11.16%

5-Year

+50.33%

+50.75%

+8.50%

+8.56%

Since Inception (2/6/18)

+47.46%

+47.62%

+7.84%

+7.86%

See page 122 for Performance Summary footnotes.



120	Annual Report	franklintempleton.com

FRANKLIN FTSE SWITZERLAND 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.

2/6/18-3/31/23

LOGO

See page 122 for Performance Summary footnotes.



franklintempleton.com	Annual Report	121

FRANKLIN FTSE SWITZERLAND ETF

PERFORMANCE SUMMARY

Distributions (4/1/22–3/31/23)

Net Investment

Income

$0.588120

Total Annual Operating Expenses⁶

0.09%

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

1. The total annual operating expenses are as of the Fund’s prospectus available at the time of publication. Actual expenses may be higher and may impact portfolio 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 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.



122	Annual Report	franklintempleton.com

FRANKLIN FTSE SWITZERLAND ETF

Your Fund’s Expenses

Actual Fund Expenses

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

Hypothetical Example for Comparison with Other Funds


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

Beginning Account Value 10/1/22		Ending Account Value 3/31/23		Expenses Paid During Period 10/1/22–3/31/23¹		Ending Account Value 3/31/23		Expenses Paid During Period 10/1/22–3/31/23¹		Net Annualized Expense Ratio

	$1,000.00		$1,186.70		$0.49		$1,024.48		$0.45		0.09	%



franklintempleton.com	Annual Report	123

Franklin FTSE Taiwan ETF

This annual report for Franklin FTSE Taiwan ETF covers the fiscal year ended March 31, 2023.

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.


Top 10 Sectors/Industries

3/31/23

		% of Total Net Assets

Semiconductors & Semiconductor Equipment		36.3%

Electronic Equipment, Instruments & Components		13.6%

Banks		12.0%

Technology Hardware, Storage & Peripherals		7.6%

Chemicals		4.6%

Insurance		3.9%

Diversified Telecommunication Services		1.9%

Metals & Mining		1.6%

Electrical Equipment		1.6%

Marine Transportation		1.5%

Performance Overview

During the 12-month period, the Fund posted cumulative total returns of -11.29% based on market price and -12.55% based on net asset value. In comparison, the FTSE Taiwan Capped Index posted a -12.38% total return for the same period.² You can find more of the Fund’s performance data in the Performance Summary beginning on page 126.

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. The Fund may use either a replication strategy or representative sampling strategy. Under a replication strategy, the Fund will 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, it may not be possible or practicable to replicate the Underlying Index. In these circumstances, we may use a representative sampling strategy whereby we will invest in what we believe to be a representative sample of the component securities of the Underlying Index, but may not track the Underlying Index with the same degree of accuracy as would an investment vehicle replicating the entire Underlying Index. Under the representative sampling technique, we will select securities that collectively have an investment profile similar to that of the Underlying Index, including securities that resemble those included in the Underlying Index in terms of risk factors, performance attributes and other characteristics, such as market capitalization and industry weightings. The Fund will concentrate its investments (i.e., hold 25% or more of its net assets) in a particular industry or group of industries to approximately the same extent that the Underlying Index is concentrated.

1. The FTSE Taiwan Capped Index is a free float-adjusted market capitalization-weighted index maintained and calculated by FTSE Russell with a capping methodology applied quarterly to issuer weights so that no single issuer of a component exceeds 25% of the index weight, and all issuers with weights above 5% do not cumulatively exceed 50% of the index’s weight. The FTSE Taiwan Capped Index is based on the FTSE Taiwan Index and is designed to measure the performance of Taiwanese large- 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 Schedule of Investments (SOI). The SOI begins on page 297.



124	Annual Report	franklintempleton.com

FRANKLIN FTSE TAIWAN ETF


Top 10 Holdings

3/31/23

Company *Sector/Industry, Country*		% of Total Net Assets

Taiwan Semiconductor Manufacturing Co. Ltd. Semiconductors & Semiconductor Equipment, Taiwan		20.3%

Hon Hai Precision Industry Co. Ltd. Electronic Equipment, Instruments & Components, Taiwan		5.2%

MediaTek, Inc. Semiconductors & Semiconductor Equipment, Taiwan		5.0%

Delta Electronics, Inc., Class A Electronic Equipment, Instruments & Components, Taiwan		2.8%

United Microelectronics Corp. Semiconductors & Semiconductor Equipment, Taiwan		2.6%

Chunghwa Telecom Co. Ltd. Diversified Telecommunication Services, Taiwan		1.9%

Nan Ya Plastics Corp. Chemicals, Taiwan		1.9%

Fubon Financial Holding Co. Ltd. Insurance, Taiwan		1.8%

CTBC Financial Holding Co. Ltd., Class A Banks, Taiwan		1.7%

Cathay Financial Holding Co. Ltd., Class A Insurance, Taiwan		1.6%

Manager’s Discussion

For the fiscal year ended March 31, 2023, the sectors that contributed most to the Fund’s absolute performance were consumer staples, consumer discretionary and health care. Individual holdings that lifted the Fund’s absolute return included Delta Electronics, Walsin Lihwa and Largan Precision.

For the same period, the sectors that detracted most from the Fund’s absolute performance were information technology, financials and materials. Individual holdings that hindered the Fund’s absolute return included Taiwan Semiconductor Manufacturing, Evergreen Marine and Cathay Financial Holding.

Thank you for your participation in Franklin FTSE Taiwan ETF. We look forward to serving your future investment needs.

Dina Ting, CFA

Hailey Harris

Joe Diederich

Basit Amin, CFA

Portfolio Management Team



franklintempleton.com	Annual Report	125

FRANKLIN FTSE TAIWAN ETF

Performance Summary as of March 31, 2023

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 3/31/23¹

Cumulative Total Return²

Average Annual Total Return²

Based on
NAV³

Based on
market price⁴

Based on
NAV³

Based on
market price⁴

1-Year

-12.55%

-11.29%

-12.55%

-11.29%

3-Year

+72.42%

+72.96%

+19.91%

+20.04%

5-Year

+59.18%

+57.75%

+9.74%

+9.55%

Since Inception (11/2/17)

+62.79%

+63.05%

+9.43%

+9.46%

See page 128 for Performance Summary footnotes.



126	Annual Report	franklintempleton.com

FRANKLIN FTSE TAIWAN 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.

11/2/17-3/31/23

LOGO

See page 128 for Performance Summary footnotes.



franklintempleton.com	Annual Report	127

FRANKLIN FTSE TAIWAN ETF

PERFORMANCE SUMMARY

Distributions (4/1/22–3/31/23)

Net Investment

Income

$1.034683

Total Annual Operating Expenses⁶

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. The total annual operating expenses are as of the Fund’s prospectus available at the time of publication. Actual expenses may be higher and may impact portfolio 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 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.



128	Annual Report	franklintempleton.com

FRANKLIN FTSE TAIWAN ETF

Your Fund’s Expenses

Actual Fund Expenses

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

Hypothetical Example for Comparison with Other Funds


		Actual				Hypothetical

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

Beginning Account Value 10/1/22		Ending Account Value 3/31/23		Expenses Paid During Period 10/1/22–3/31/23¹		Ending Account Value 3/31/23		Expenses Paid During Period 10/1/22–3/31/23¹		Net Annualized Expense Ratio

	$1,000.00		$1,236.10		$1.06		$1,023.98		$0.96		0.19	%



franklintempleton.com	Annual Report	129

Franklin FTSE United Kingdom ETF

This annual report for Franklin FTSE United Kingdom ETF covers the fiscal year ended March 31, 2023.

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.


Top 10 Sectors/Industries

3/31/23

		% of Total Net Assets

Oil, Gas & Consumable Fuels		12.5%

Pharmaceuticals		11.4%

Banks		9.7%

Metals & Mining		8.0%

Personal Products		6.0%

Beverages		4.2%

Hotels, Restaurants & Leisure		4.2%

Professional Services		4.0%

Tobacco		4.0%

Insurance		3.7%

Performance Overview

For the 12-month period, the Fund posted cumulative total returns of -0.13% based on market price and -0.71% based on net asset value. In comparison, the FTSE UK Capped Index posted a -0.64% total return for the same period.² You can find more of the Fund’s performance data in the Performance Summary beginning on page 132.

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.

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. The Fund may use either a replication strategy or representative sampling strategy. Under a replication strategy, the Fund will 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, it may not be possible or practicable to replicate the Underlying Index. In these circumstances, we may use a representative sampling strategy whereby we will invest in what we believe to be a representative sample of the component securities of the Underlying Index, but may not track the Underlying Index with the same degree of accuracy as would an investment vehicle replicating the entire Underlying Index. Under the representative sampling technique, we will select securities that collectively have an investment profile similar to that of the Underlying Index, including securities that resemble those included in the Underlying Index in terms of risk factors, performance attributes and other characteristics, such as market capitalization and industry weightings. The Fund will concentrate its investments (i.e., hold 25% or more of its net assets) in a particular industry or group of industries to approximately the same extent that the Underlying Index is concentrated.

1. The FTSE UK Capped Index is a free float-adjusted market capitalization-weighted index maintained and calculated by FTSE Russell with a capping methodology applied quarterly to issuer weights so that no single issuer of a component exceeds 25% of the index weight, and all issuers with weights above 5% do not cumulatively exceed 50% of the index’s weight. The FTSE UK Capped Index is based on the FTSE UK Index and is designed to measure the performance of U.K. large- 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 Schedule of Investments (SOI). The SOI begins on page 301.



130	Annual Report	franklintempleton.com

FRANKLIN FTSE UNITED KINGDOM ETF


Top 10 Holdings

3/31/23

Company *Sector/Industry, Country*		% of Total Net Assets

AstraZeneca PLC Pharmaceuticals, United Kingdom		8.3%

Shell PLC Oil, Gas & Consumable Fuels, Netherlands		8.0%

HSBC Holdings PLC Banks, United Kingdom		5.5%

Unilever PLC Personal Products, United Kingdom		5.2%

BP PLC Oil, Gas & Consumable Fuels, United Kingdom		4.5%

Diageo PLC Beverages, United Kingdom		4.0%

British American Tobacco PLC Tobacco, United Kingdom		3.2%

Rio Tinto PLC Metals & Mining, Australia		3.0%

Glencore PLC Metals & Mining, Australia		2.9%

GSK PLC Pharmaceuticals, United Kingdom		2.8%

Manager’s Discussion

For the fiscal year ended March 31, 2023, the sectors that contributed most to the Fund’s absolute performance were energy, industrials and consumer discretionary. Individual holdings that lifted the Fund’s absolute return included BP, Unilever and AstraZeneca.

For the same period, the sectors that detracted most from the Fund’s absolute performance were materials, communication services and financials. Individual holdings that hindered the Fund’s absolute return included Anglo American, GSK PLC and Vodafone Group.

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

Joe Diederich

Basit Amin, CFA

Portfolio Management Team



franklintempleton.com	Annual Report	131

FRANKLIN FTSE UNITED KINGDOM ETF

Performance Summary as of March 31, 2023

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 3/31/23¹

Cumulative Total Return²

Average Annual Total Return²

Based on

NAV³

Based on

market price⁴

Based on

NAV³

Based on

market price⁴

1-Year

-0.71%

-0.13%

-0.71%

-0.13%

3-Year

+49.12%

+51.09%

+14.25%

+14.75%

5-Year

+15.10%

+14.56%

+2.85%

+2.76%

Since Inception (11/2/17)

+17.18%

+17.19%

+2.97%

+2.98%

See page 134 for Performance Summary footnotes.



132	Annual Report	franklintempleton.com

FRANKLIN FTSE UNITED KINGDOM 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.

11/2/17-3/31/23

LOGO

See page 134 for Performance Summary footnotes.



franklintempleton.com	Annual Report	133

FRANKLIN FTSE UNITED KINGDOM ETF

PERFORMANCE SUMMARY

Distributions (4/1/22–3/31/23)

Net Investment
Income

$0.968227

Total Annual Operating Expenses⁶

0.09%

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

1. The total annual operating expenses are as of the Fund’s prospectus available at the time of publication. Actual expenses may be higher and may impact portfolio 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 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.



134	Annual Report	franklintempleton.com

FRANKLIN FTSE UNITED KINGDOM ETF

Your Fund’s Expenses

Actual Fund Expenses

The table below provides information about actual account values and actual expenses in the columns under the heading “Actual.” In these columns the Fund’s actual return, which includes the effect of Fund expenses, is used to calculate the “Ending Account Value.” You can estimate the expenses you paid during the period by following these steps (of course, your account value and expenses will differ from those in this illustration): Divide your account value by $1,000 (if your account had an $8,600 value, then $8,600 ÷ $1,000 = 8.6). Then multiply the result by the number in the row under the headings “Actual” and “Expenses Paid During Period” (if Actual Expenses Paid During Period were $7.50, then 8.6 × $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 10/1/22		Ending Account Value 3/31/23		Expenses Paid During Period 10/1/22–3/31/23¹		Ending Account Value 3/31/23		Expenses Paid During Period 10/1/22–3/31/23¹		Net Annualized Expense Ratio

	$1,000.00		$1,250.70		$0.51		$1,024.48		$0.45		0.09	%



franklintempleton.com	Annual Report	135

FRANKLIN TEMPLETON ETF TRUST

Financial Highlights

Franklin FTSE Asia ex Japan ETF



	Year Ended March 31,

	2023			2022			2021			2020			2019

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

Net asset value, beginning of year		$24.22			$28.60			$18.39			$21.86			$23.63


Income from investment operations^a:

Net investment income^b		0.57			0.55			0.44			0.49			0.51

Net realized and unrealized gains (losses)		(2.79	)		(4.31	)		10.21			(3.46	)		(1.82	)


Total from investment operations		(2.22	)		(3.76	)		10.65			(2.97	)		(1.31	)


Less distributions from net investment income		(0.59	)		(0.62	)		(0.44	)		(0.50	)		(0.46	)


Net asset value, end of year		$21.41			$24.22			$28.60			$18.39			$21.86


Total return^c		(9.10)%			(13.34)%			58.16%			(13.88)%			(5.34)%

Ratios to average net assets^d

Expenses before waiver and payments by affiliates		0.19%			0.19%			0.19%			0.19%			0.19%

Expenses net of waiver and payments by affiliates		0.19%			0.19%			0.19%			0.19%			—%

Net investment income		2.67%			2.01%			1.78%			2.32%			2.34%

Supplemental data

Net assets, end of year (000’s)		$29,980			$38,751			$34,317			$14,712			$17,488

Portfolio turnover rate^e		5.85%^f			10.09%^f			11.45%^f			11.42%^f			7.11%

^aThe amount shown for a share outstanding throughout the period may not correlate with the Statement of Operations for the period due to the timing of sales and repurchases of Creation Unit Fund shares in relation to income earned and/or fluctuating fair value of the investments of the Fund. ^bBased on average daily shares outstanding. ^cTotal return is not annualized for periods less than one year. Total return is calculated assuming an initial investment made at the net asset value at the beginning of the period, reinvestment of all dividends and distributions at net asset value during the period, and redemption at net asset value on the last day of the period. ^dRatios are annualized for periods less than one year. ^ePortfolio turnover rate includes portfolio transactions that are executed as a result of the Fund offering and redeeming Creation Units solely for cash (“Cash creations”).
^fPortfolio turnover rate excluding cash creations was as follows:		5.85%			9.63%			11.45%			11.42%			—



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

FRANKLIN TEMPLETON ETF TRUST

Schedule of Investments, March 31, 2023

Franklin FTSE Asia ex Japan ETF



	Industry	Shares		Value

Common Stocks 99.5%
Cambodia 0.0%^†
^aNagaCorp Ltd.	Hotels, Restaurants & Leisure		8,075	$	6,295


China 35.4%
360 DigiTech, Inc., ADR	Consumer Finance		532		10,321
360 Security Technology, Inc., Class A	Software		2,500		6,353
^b3SBio, Inc., Class A	Biotechnology		7,000		6,973
^aAAC Technologies Holdings, Inc., Class H	Electronic Equipment, Instruments & Components		3,500		8,632
ADAMA Ltd., Class A	Chemicals		400		531
Addsino Co. Ltd., Class A	Communications Equipment		700		1,147
^aAdvanced Micro-Fabrication Equipment, Inc. China, Class A	Semiconductors & Semiconductor Equipment		175		3,759
AECC Aero-Engine Control Co. Ltd., Class A	Aerospace & Defense		400		1,419
AECC Aviation Power Co. Ltd., Class A	Aerospace & Defense		900		5,655
^aAgile Group Holdings Ltd.	Real Estate Management & Development		8,000		1,783
Agricultural Bank of China Ltd., Class A	Banks		33,300		15,081
Agricultural Bank of China Ltd., Class H	Banks		147,000		54,493
Aier Eye Hospital Group Co. Ltd., Class A	Health Care Providers & Services		2,504		11,329
^aAir China Ltd., Class A	Airlines		2,100		3,272
^aAir China Ltd., Class H	Airlines		8,000		7,154
Airtac International Group, Class A	Machinery		770		29,968
^a,bAkeso, Inc.	Biotechnology		2,000		10,293
^aAlibaba Group Holding Ltd., Class A	Internet & Direct Marketing Retail		70,600		902,966
^bA-Living Smart City Services Co. Ltd., Class H	Commercial Services & Supplies		3,500		3,036
All Winner Technology Co. Ltd., Class A, A	Semiconductors & Semiconductor Equipment		400		1,590
^aAlpha Group, Class A	Leisure Products		400		369
Aluminum Corp. of China Ltd., Class A	Metals & Mining		4,200		3,376
Aluminum Corp. of China Ltd., Class H	Metals & Mining		20,000		10,140
^aAmlogic Shanghai Co. Ltd., Class A	Semiconductors & Semiconductor Equipment		175		2,144
^aAn Hui Wenergy Co. Ltd., Class A	Independent Power Producers & Energy Traders		1,100		790
Angang Steel Co. Ltd., Class A	Metals & Mining		1,800		778
Angang Steel Co. Ltd., Class H	Metals & Mining		8,000		2,558
Angel Yeast Co. Ltd., Class A	Food Products		400		2,432
^bAngelalign Technology, Inc.	Health Care Equipment & Supplies		200		2,973
Anhui Anke Biotechnology Group Co. Ltd., Class A	Pharmaceuticals		532		856
Anhui Conch Cement Co. Ltd., Class A	Construction Materials		1,400		5,759
Anhui Conch Cement Co. Ltd., Class H	Construction Materials		5,690		19,716
Anhui Expressway Co. Ltd., Class A	Transportation Infrastructure		400		520
Anhui Expressway Co. Ltd., Class H	Transportation Infrastructure		2,000		2,015
Anhui Gujing Distillery Co. Ltd., Class A	Beverages		100		4,310
Anhui Gujing Distillery Co. Ltd., Class B	Beverages		600		10,708
Anhui Zhongding Sealing Parts Co. Ltd., Class A	Automobile Components		400		740
Anjoy Foods Group Co. Ltd., Class A	Food Products		100		2,383
Anker Innovations Technology Co. Ltd., Class A, A	Technology Hardware, Storage & Peripherals		100		967
ANTA Sports Products Ltd., Class A	Textiles, Apparel & Luxury Goods		5,600		81,325
Apeloa Pharmaceutical Co. Ltd., Class A	Pharmaceuticals		400		1,241
Asymchem Laboratories Tianjin Co. Ltd., Class A	Pharmaceuticals		40		777
Autohome, Inc., ADR	Software		301		10,074
Avary Holding Shenzhen Co. Ltd., Class A	Electronic Equipment, Instruments & Components		400		1,807
AVIC Industry-Finance Holdings Co. Ltd., Class A	Financial Services		3,200		1,910
AviChina Industry & Technology Co. Ltd., Class H	Aerospace & Defense		13,000		6,823
AVICOPTER PLC, Class A	Aerospace & Defense		200		1,232
^bBAIC Motor Corp. Ltd., Class H	Automobiles		12,500		3,471
^aBaidu, Inc., Class A	Interactive Media & Services		10,850		205,529
Bank of Beijing Co. Ltd., Class A	Banks		7,000		4,485
Bank of Changsha Co. Ltd., Class A	Banks		1,100		1,267



franklintempleton.com	Annual Report	137

FRANKLIN TEMPLETON ETF TRUST

SCHEDULE OF INVESTMENTS

Franklin FTSE Asia ex Japan ETF (continued)



	Industry	Shares		Value

Common Stocks (continued)
China (continued)
Bank of Chengdu Co. Ltd., Class A	Banks		400	$	790
Bank of China Ltd., Class A	Banks		15,800		7,777
Bank of China Ltd., Class H	Banks		371,000		142,257
Bank of Communications Co. Ltd., Class A	Banks		14,000		10,417
Bank of Communications Co. Ltd., Class H	Banks		37,000		23,284
Bank of Guiyang Co. Ltd., Class A	Banks		1,100		883
Bank of Hangzhou Co. Ltd., Class A	Banks		2,100		3,550
Bank of Jiangsu Co. Ltd., Class A	Banks		2,080		2,126
Bank of Nanjing Co. Ltd., Class A	Banks		3,200		4,175
Bank of Ningbo Co. Ltd., Class A	Banks		2,480		9,862
Bank of Qingdao Co. Ltd., Class A	Banks		1,400		669
Bank of Shanghai Co. Ltd., Class A	Banks		5,380		4,693
^aBank of Zhengzhou Co. Ltd., Class A	Banks		3,084		1,019
Baoshan Iron & Steel Co. Ltd., Class A	Metals & Mining		6,300		5,725
BBMG Corp., Class A	Construction Materials		2,100		749
BBMG Corp., Class H	Construction Materials		14,000		1,819
^aBeiGene Ltd.	Biotechnology		3,000		49,453
Beijing Capital Development Co. Ltd., Class A	Real Estate Management & Development		700		465
Beijing Capital Eco-Environment Protection Group Co. Ltd., Class A	Water Utilities		2,800		1,211
^aBeijing Capital International Airport Co. Ltd., Class H	Transportation Infrastructure		10,000		7,363
^aBeijing Dabeinong Technology Group Co. Ltd., Class A	Food Products		1,100		1,251
Beijing Easpring Material Technology Co. Ltd., Class A	Chemicals		200		1,675
^aBeijing E-Hualu Information Technology Co. Ltd., Class A	Software		400		2,203
Beijing Enlight Media Co. Ltd., Class A	Entertainment		1,100		1,424
Beijing Enterprises Holdings Ltd., Class H	Industrial Conglomerates		2,500		8,997
Beijing Haixin Energy Technology Co. Ltd., Class A	Chemicals		700		408
^aBeijing Jetsen Technology Co. Ltd., Class A, A	Software		1,100		1,075
Beijing Jingneng Clean Energy Co. Ltd., Class H	Independent Power Producers & Energy Traders		10,000		2,382
Beijing Kingsoft Office Software, Inc., Class A	Software		124		8,541
Beijing New Building Materials PLC, Class A	Building Products		700		2,736
^aBeijing Orient National Communication Science & Technology Co. Ltd., Class A	Software		400		878
Beijing Originwater Technology Co. Ltd., Class A	Commercial Services & Supplies		247		182
Beijing Shiji Information Technology Co. Ltd., Class A	Software		700		2,616
Beijing Shougang Co. Ltd., Class A	Metals & Mining		1,800		999
Beijing Shunxin Agriculture Co. Ltd., Class A	Beverages		400		2,068
Beijing Sinnet Technology Co. Ltd., Class A	IT Services		700		1,367
Beijing SL Pharmaceutical Co. Ltd., Class A	Biotechnology		400		502
Beijing Tongrentang Co. Ltd., Class A	Pharmaceuticals		500		4,015
Beijing Ultrapower Software Co. Ltd., Class A	IT Services		700		960
Beijing United Information Technology Co. Ltd., Class A, A	Trading Companies & Distributors		145		1,751
Beijing Wantai Biological Pharmacy Enterprise Co. Ltd., Class A	Biotechnology		145		2,452
Beijing Yanjing Brewery Co. Ltd., Class A	Beverages		700		1,428
Beijing Yuanliu Hongyuan Electronic Technology Co. Ltd., Class A, A	Electronic Equipment, Instruments & Components		100		1,121
Beijing Zhong Ke San Huan High-Tech Co. Ltd., Class A	Electronic Equipment, Instruments & Components		445		849
BGI Genomics Co. Ltd., Class A, A	Biotechnology		100		1,005



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SCHEDULE OF INVESTMENTS

Franklin FTSE Asia ex Japan ETF (continued)



	Industry	Shares		Value

Common Stocks (continued)
China (continued)
^aBilibili, Inc., Class Z	Entertainment		1,120	$	27,051
^bBlue Moon Group Holdings Ltd.	Household Products		3,500		2,234
^aBlue Sail Medical Co. Ltd., Class A	Health Care Equipment & Supplies		400		458
Bluefocus Intelligent Communications Group Co. Ltd., Class A	Media		700		974
Bluestar Adisseo Co., Class A	Chemicals		400		514
BOC Hong Kong Holdings Ltd.	Banks		17,000		52,949
BOC International China Co. Ltd., Class A	Capital Markets		400		626
BOE Technology Group Co. Ltd., Class A	Electronic Equipment, Instruments & Components		13,000		8,405
BOE Technology Group Co. Ltd., Class B	Electronic Equipment, Instruments & Components		4,900		2,210
Bright Dairy & Food Co. Ltd., Class A	Food Products		400		623
BTG Hotels Group Co. Ltd., Class A	Hotels, Restaurants & Leisure		400		1,359
^bBudweiser Brewing Co. APAC Ltd., Class H	Beverages		8,400		25,628
BYD Co. Ltd., Class A	Automobiles		600		22,369
BYD Co. Ltd., Class H	Automobiles		4,500		131,733
BYD Electronic International Co. Ltd.	Communications Equipment		3,500		10,879
By-health Co. Ltd., Class A	Personal Products		700		2,176
C&D International Investment Group Ltd.	Real Estate Management & Development		3,000		9,841
C&S Paper Co. Ltd., Class A	Household Products		400		705
Caitong Securities Co. Ltd., Class A	Capital Markets		1,820		1,990
Camel Group Co. Ltd., Class A	Electrical Equipment		460		660
Canmax Technologies Co. Ltd., Class A, A	Chemicals		200		1,491
CanSino Biologics, Inc., Class A	Pharmaceuticals		23		381
^bCanSino Biologics, Inc., Class H	Pharmaceuticals		400		2,140
CECEP Solar Energy Co. Ltd., Class A	Semiconductors & Semiconductor Equipment		1,100		1,097
CECEP Wind-Power Corp., Class A	Independent Power Producers & Energy Traders		2,340		1,319
Central China Securities Co. Ltd., Class A	Capital Markets		1,100		596
Central China Securities Co. Ltd., Class H	Capital Markets		4,000		591
CETC Cyberspace Security Technology Co. Ltd., Class A	Electronic Equipment, Instruments & Components		400		2,269
CGN Power Co. Ltd., Class A	Independent Power Producers & Energy Traders		2,800		1,170
^bCGN Power Co. Ltd., Class H	Independent Power Producers & Energy Traders		56,000		13,412
Changchun High & New Technology Industry Group, Inc., Class A	Pharmaceuticals		100		2,378
Changjiang Securities Co. Ltd., Class A	Capital Markets		2,100		1,703
Changzhou Xingyu Automotive Lighting Systems Co. Ltd., Class A	Automobile Components		100		1,746
Chaozhou Three-Circle Group Co. Ltd., Class A	Electronic Equipment, Instruments & Components		700		3,068
Chengdu Xingrong Environment Co. Ltd., Class A	Water Utilities		1,400		1,040
Chengxin Lithium Group Co. Ltd., Class A, A	Paper & Forest Products		400		2,011
China Baoan Group Co. Ltd., Class A	Industrial Conglomerates		1,100		1,821
^bChina Bohai Bank Co. Ltd., Class H	Banks		14,000		2,390
China Cinda Asset Management Co. Ltd., Class H	Capital Markets		46,000		5,801
China CITIC Bank Corp. Ltd., Class A	Banks		3,900		3,084
China CITIC Bank Corp. Ltd., Class H	Banks		42,000		21,134
China Coal Energy Co. Ltd., Class A	Oil, Gas & Consumable Fuels		1,800		2,071
China Coal Energy Co. Ltd., Class H	Oil, Gas & Consumable Fuels		9,000		6,822
China Communications Services Corp. Ltd., Class H	Diversified Telecommunication Services		14,000		6,884
China Conch Venture Holdings Ltd.	Construction & Engineering		7,440		12,985
China Construction Bank Corp., Class A	Banks		3,500		3,027
China Construction Bank Corp., Class H	Banks		448,000		290,488
China CSSC Holdings Ltd., Class A	Machinery		1,600		5,452
^bChina East Education Holdings Ltd., Class A	Diversified Consumer Services		2,000		1,182
^aChina Eastern Airlines Corp. Ltd., Class A	Airlines		3,900		2,925
^aChina Eastern Airlines Corp. Ltd., Class H	Airlines		8,000		3,159



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Franklin FTSE Asia ex Japan ETF (continued)



	Industry	Shares		Value

Common Stocks (continued)
China (continued)
China Energy Engineering Corp. Ltd.	Construction & Engineering		11,600	$	4,071
China Energy Engineering Corp. Ltd., Class H	Construction & Engineering		14,000		1,748
China Everbright Bank Co. Ltd., Class A	Banks		15,100		6,618
China Everbright Bank Co. Ltd., Class H	Banks		15,000		4,548
^aChina Evergrande Group, Class A	Real Estate Management & Development		24,000		2,347
^bChina Feihe Ltd.	Food Products		20,000		15,006
China Galaxy Securities Co. Ltd., Class A	Capital Markets		700		1,024
China Galaxy Securities Co. Ltd., Class H	Capital Markets		18,500		9,309
China Great Wall Securities Co. Ltd., Class A	Capital Markets		700		845
China Greatwall Technology Group Co. Ltd., Class A	Technology Hardware, Storage & Peripherals		1,100		1,983
China Green Electricity Investment of Tianjin Co. Ltd., Class A, A	Real Estate Management & Development		700		1,169
China Hongqiao Group Ltd.	Metals & Mining		11,000		10,538
^a,bChina Huarong Asset Management Co. Ltd., Class H	Capital Markets		70,000		3,968
China International Capital Corp. Ltd., Class A	Capital Markets		400		2,265
^bChina International Capital Corp. Ltd., Class H	Capital Markets		7,700		15,439
China International Marine Containers Group Co. Ltd., Class A	Machinery		750		831
China International Marine Containers Group Co. Ltd., Class H	Machinery		3,700		2,545
China Jinmao Holdings Group Ltd., Class A	Real Estate Management & Development		32,000		6,237
China Jushi Co. Ltd., Class A	Construction Materials		1,571		3,342
China Lesso Group Holdings Ltd.	Building Products		5,000		4,471
China Life Insurance Co. Ltd., Class H	Insurance		36,000		59,160
^a,bChina Literature Ltd., Class A	Media		1,400		7,223
China Longyuan Power Group Corp. Ltd., Class H	Independent Power Producers & Energy Traders		17,000		19,426
China Medical System Holdings Ltd.	Pharmaceuticals		6,000		9,478
China Meheco Co. Ltd., Class A	Trading Companies & Distributors		560		1,119
China Meidong Auto Holdings Ltd.	Specialty Retail		2,000		4,316
China Merchants Bank Co. Ltd., Class A	Banks		7,100		35,431
China Merchants Bank Co. Ltd., Class H	Banks		18,000		91,950
China Merchants Energy Shipping Co. Ltd., Class A	Oil, Gas & Consumable Fuels		3,500		3,573
China Merchants Expressway Network & Technology Holdings Co. Ltd., Class A	Transportation Infrastructure		700		863
China Merchants Port Holdings Co. Ltd.	Transportation Infrastructure		7,000		10,736
China Merchants Property Operation & Service Co. Ltd., Class A	Real Estate Management & Development		400		890
China Merchants Securities Co. Ltd., Class A	Capital Markets		2,720		5,462
^bChina Merchants Securities Co. Ltd., Class H	Capital Markets		2,200		2,108
China Merchants Shekou Industrial Zone Holdings Co. Ltd., Class A	Real Estate Management & Development		2,500		4,958
China Minsheng Banking Corp. Ltd., Class A	Banks		12,300		6,179
China Minsheng Banking Corp. Ltd., Class H	Banks		31,500		10,794
China National Accord Medicines Corp. Ltd., Class B	Health Care Providers & Services		400		881
China National Building Material Co. Ltd., Class H	Construction Materials		22,750		18,664
China National Chemical Engineering Co. Ltd., Class A	Construction & Engineering		2,100		2,838
China National Nuclear Power Co. Ltd., Class A	Independent Power Producers & Energy Traders		5,800		5,397
China National Software & Service Co. Ltd., Class A	Software		200		2,005
^aChina Nonferrous Metal Industry’s Foreign Engineering & Construction Co. Ltd., Class A	Metals & Mining		700		559



140	Annual Report	franklintempleton.com

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SCHEDULE OF INVESTMENTS

Franklin FTSE Asia ex Japan ETF (continued)



	Industry	Shares		Value

Common Stocks (continued)
China (continued)
China Northern Rare Earth Group High-Tech Co. Ltd., Class A	Metals & Mining		1,400	$	5,319
China Oilfield Services Ltd., Class A	Energy Equipment & Services		700		1,486
China Oilfield Services Ltd., Class H	Energy Equipment & Services		8,000		8,204
China Overseas Land & Investment Ltd., Class A	Real Estate Management & Development		18,500		44,683
China Pacific Insurance Group Co. Ltd., Class A	Insurance		2,500		9,436
China Pacific Insurance Group Co. Ltd., Class H	Insurance		12,600		33,466
China Petroleum & Chemical Corp., Class A	Oil, Gas & Consumable Fuels		11,600		9,493
China Petroleum & Chemical Corp., Class H	Oil, Gas & Consumable Fuels		118,000		69,748
China Railway Group Ltd., Class A	Construction & Engineering		7,000		7,013
China Railway Group Ltd., Class H	Construction & Engineering		21,000		12,814
China Railway Signal & Communication Corp. Ltd., Class A	Electronic Equipment, Instruments & Components		2,333		1,841
^bChina Railway Signal & Communication Corp. Ltd., Class H	Electronic Equipment, Instruments & Components		7,000		2,577
^aChina Rare Earth Resources & Technology Co. Ltd., Class A, A	Metals & Mining		400		1,967
China Reinsurance Group Corp., Class H	Insurance		35,000		2,452
China Resources Boya Bio-pharmaceutical Group Co. Ltd., Class A, A	Biotechnology		200		1,017
China Resources Cement Holdings Ltd.	Construction Materials		12,000		5,885
China Resources Double Crane Pharmaceutical Co. Ltd., Class A	Pharmaceuticals		400		1,004
China Resources Microelectronics Ltd., Class A, A	Semiconductors & Semiconductor Equipment		343		3,020
^bChina Resources Mixc Lifestyle Services Ltd.	Real Estate Management & Development		2,600		13,662
^bChina Resources Pharmaceutical Group Ltd., Class A	Pharmaceuticals		7,500		5,943
China Resources Power Holdings Co. Ltd.	Independent Power Producers & Energy Traders		8,800		18,744
China Resources Sanjiu Medical & Pharmaceutical Co. Ltd., Class A	Pharmaceuticals		400		3,346
^aChina Ruyi Holdings Ltd.	Entertainment		16,000		4,178
China Shenhua Energy Co. Ltd., Class A	Oil, Gas & Consumable Fuels		2,500		10,255
China Shenhua Energy Co. Ltd., Class H	Oil, Gas & Consumable Fuels		16,563		52,116
China South Publishing & Media Group Co. Ltd., Class A	Media		700		1,186
^aChina Southern Airlines Co. Ltd., Class A	Airlines		3,900		4,469
^aChina Southern Airlines Co. Ltd., Class H	Airlines		8,000		5,707
China Southern Power Grid Energy Efficiency&Clean Energy Co. Ltd., Class A, A	Commercial Services & Supplies		1,100		1,243
China State Construction Engineering Corp. Ltd., Class A	Construction & Engineering		14,700		12,415
China Suntien Green Energy Corp. Ltd., Class H	Oil, Gas & Consumable Fuels		9,000		3,932
China Taiping Insurance Holdings Co. Ltd.	Insurance		7,000		7,437
China Three Gorges Renewables Group Co. Ltd., Class A, A	Independent Power Producers & Energy Traders		8,800		7,022
China Tourism Group Duty Free Corp. Ltd., Class A	Hotels, Restaurants & Leisure		600		16,010
^a,bChina Tourism Group Duty Free Corp. Ltd., Class H	Specialty Retail		300		7,418
^bChina Tower Corp. Ltd., Class H	Diversified Telecommunication Services		232,000		28,077
^aChina TransInfo Technology Co. Ltd., Class A	IT Services		400		783
^aChina Travel International Investment Hong Kong Ltd., Class A	Hotels, Restaurants & Leisure		14,000		2,871
China United Network Communications Ltd., Class A	Wireless Telecommunication Services		8,800		6,945
China Vanke Co. Ltd., Class A	Real Estate Management & Development		3,500		7,767



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Franklin FTSE Asia ex Japan ETF (continued)



	Industry	Shares		Value

Common Stocks (continued)
China (continued)
China Vanke Co. Ltd., Class H	Real Estate Management & Development		9,500	$	14,982
China World Trade Center Co. Ltd., Class A, A	Real Estate Management & Development		400		993
China Yangtze Power Co. Ltd., Class A	Independent Power Producers & Energy Traders		7,000		21,661
China Zhenhua Group Science & Technology Co. Ltd., Class A, A	Electronic Equipment, Instruments & Components		200		2,623
^aChina Zheshang Bank Co. Ltd., Class A	Banks		2,500		1,041
Chinalin Securities Co. Ltd., Class A, A	Capital Markets		400		854
Chinese Universe Publishing & Media Group Co. Ltd., Class A	Media		400		722
Chongqing Brewery Co. Ltd., Class A	Beverages		200		3,640
Chongqing Changan Automobile Co. Ltd., Class A	Automobiles		2,820		4,895
Chongqing Changan Automobile Co. Ltd., Class B	Automobiles		8,338		3,664
Chongqing Fuling Zhacai Group Co. Ltd., Class A	Food Products		400		1,475
Chongqing Rural Commercial Bank Co. Ltd., Class A	Banks		1,800		962
Chongqing Rural Commercial Bank Co. Ltd., Class H	Banks		12,000		4,372
Chongqing Water Group Co. Ltd., Class A	Water Utilities		400		313
Chongqing Zhifei Biological Products Co. Ltd., Class A	Biotechnology		600		7,158
Chow Tai Fook Jewellery Group Ltd., Class A	Specialty Retail		8,800		17,466
CIFI Holdings Group Co. Ltd., Class A	Real Estate Management & Development		20,880		2,022
CITIC Ltd., Class B	Industrial Conglomerates		23,000		26,897
Citic Pacific Special Steel Group Co. Ltd., Class A	Metals & Mining		1,880		4,867
CITIC Securities Co. Ltd., Class A	Capital Markets		4,395		13,107
CITIC Securities Co. Ltd., Class H	Capital Markets		11,000		23,485
CMOC Group Ltd., Class A	Metals & Mining		3,500		3,053
CMOC Group Ltd., Class H	Metals & Mining		21,000		12,707
CMST Development Co. Ltd., Class A	Air Freight & Logistics		400		308
CNGR Advanced Material Co. Ltd., Class A	Chemicals		200		2,087
CNOOC Energy Technology & Services Ltd., Class A	Energy Equipment & Services		2,500		1,201
Contemporary Amperex Technology Co. Ltd., Class A	Electrical Equipment		800		47,302
COSCO SHIPPING Development Co. Ltd., Class A	Marine Transportation		2,800		1,007
COSCO SHIPPING Development Co. Ltd., Class H	Marine Transportation		18,000		2,385
^aCOSCO SHIPPING Energy Transportation Co. Ltd., Class A	Marine Transportation		1,100		2,169
^aCOSCO SHIPPING Energy Transportation Co. Ltd., Class H	Marine Transportation		6,000		6,191
COSCO SHIPPING Holdings Co. Ltd., Class A	Marine Transportation		4,600		7,388
COSCO SHIPPING Holdings Co. Ltd., Class H	Marine Transportation		15,950		17,941
Country Garden Holdings Co. Ltd.	Real Estate Management & Development		60,000		16,892
Country Garden Services Holdings Co. Ltd.	Commercial Services & Supplies		9,300		16,088
CRRC Corp. Ltd., Class A	Machinery		8,100		7,219
CRRC Corp. Ltd., Class H	Machinery		21,000		11,450
CSC Financial Co. Ltd., Class A	Capital Markets		1,800		6,718
^bCSC Financial Co. Ltd., Class H	Capital Markets		4,500		4,385
CSG Holding Co. Ltd., Class A	Construction Materials		700		684
CSG Holding Co. Ltd., Class B	Construction Materials		5,401		2,043
CSPC Pharmaceutical Group Ltd., Class A	Pharmaceuticals		40,000		39,338
Daan Gene Co. Ltd., Class A	Biotechnology		612		1,436
^aDada Nexus Ltd., Class A, ADR	Consumer Staples Distribution & Retail		343		2,905



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SCHEDULE OF INVESTMENTS

Franklin FTSE Asia ex Japan ETF (continued)



	Industry	Shares		Value

Common Stocks (continued)
China (continued)
^bDali Foods Group Co. Ltd.	Food Products		11,000	$	4,596
Daqin Railway Co. Ltd., Class A	Ground Transportation		5,300		5,549
^aDaqo New Energy Corp., ADR	Semiconductors & Semiconductor Equipment		280		13,115
^aDatang International Power Generation Co. Ltd., Class A	Independent Power Producers & Energy Traders		2,800		1,235
^aDatang International Power Generation Co. Ltd., Class H	Independent Power Producers & Energy Traders		14,000		2,532
DHC Software Co. Ltd., Class A	IT Services		1,100		1,329
Dian Diagnostics Group Co. Ltd., Class A	Health Care Providers & Services		400		1,669
Digital China Information Service Co. Ltd., Class A	IT Services		400		816
Do-Fluoride New Materials Co. Ltd., Class A	Chemicals		400		1,934
Dong-E-E-Jiao Co. Ltd., Class A	Pharmaceuticals		200		1,543
Dongfang Electric Corp. Ltd., Class A	Electrical Equipment		1,100		3,037
Dongfang Electric Corp. Ltd., Class H	Electrical Equipment		1,800		2,908
Dongfeng Motor Group Co. Ltd., Class H	Automobiles		14,000		6,563
Dongguan Development Holdings Co. Ltd., Class A	Transportation Infrastructure		400		567
Dongxing Securities Co. Ltd., Class A	Capital Markets		1,100		1,346
^a,bEast Buy Holding Ltd.	Diversified Consumer Services		1,000		4,312
East Group Co. Ltd., Class A	Electrical Equipment		400		453
East Money Information Co. Ltd., Class A	Capital Markets		4,888		14,257
Easyhome New Retail Group Co. Ltd., Class A, A	Broadline Retail		1,100		742
Ecovacs Robotics Co. Ltd., Class A	Household Durables		200		2,406
ENN Energy Holdings Ltd.	Gas Utilities		3,600		49,346
ENN Natural Gas Co. Ltd., Class A	Chemicals		1,100		3,340
^bESR Group Ltd., Class H	Real Estate Management & Development		9,800		17,578
Eternal Asia Supply Chain Management Ltd., Class A	Commercial Services & Supplies		900		773
Eve Energy Co. Ltd., Class A	Electrical Equipment		680		6,902
Everbright Securities Co. Ltd., Class A	Capital Markets		1,400		3,107
^bEverbright Securities Co. Ltd., Class H	Capital Markets		1,400		951
^a,bEvergrande Property Services Group Ltd.	Real Estate Management & Development		24,000		3,253
^aFangda Carbon New Material Co. Ltd., Class A	Electrical Equipment		1,460		1,369
FAW Jiefang Group Co. Ltd.	Automobiles		1,100		1,329
Fiberhome Telecommunication Technologies Co. Ltd., Class A	Communications Equipment		400		1,142
Financial Street Holdings Co. Ltd., Class A	Real Estate Management & Development		1,100		804
First Capital Securities Co. Ltd., Class A	Capital Markets		1,400		1,217
Flat Glass Group Co. Ltd., Class A	Semiconductors & Semiconductor Equipment		400		1,998
Flat Glass Group Co. Ltd., Class H	Semiconductors & Semiconductor Equipment		2,000		5,733
Focus Media Information Technology Co. Ltd., Class A	Technology Hardware, Storage & Peripherals		5,500		5,502
Foshan Haitian Flavouring & Food Co. Ltd., Class A	Food Products		1,400		15,604
Fosun International Ltd.	Industrial Conglomerates		10,500		7,704
Foxconn Industrial Internet Co. Ltd., Class A	Electronic Equipment, Instruments & Components		4,600		11,535
Fujian Funeng Co. Ltd., Class A	Independent Power Producers & Energy Traders		400		714
Fujian Sunner Development Co. Ltd., Class A	Food Products		400		1,436
^aFull Truck Alliance Co. Ltd., ADR	Ground Transportation		3,017		22,959
Fuyao Glass Industry Group Co. Ltd., Class A	Automobile Components		700		3,543
^bFuyao Glass Industry Group Co. Ltd., Class H	Automobile Components		2,800		12,199
Ganfeng Lithium Group Co. Ltd., Class A	Metals & Mining		600		5,808
^bGanfeng Lithium Group Co. Ltd., Class H	Metals & Mining		1,400		8,703
^aGCL System Integration Technology Co. Ltd., Class A	Semiconductors & Semiconductor Equipment	��	1,400		636
^aGCL Technology Holdings Ltd.	Semiconductors & Semiconductor Equipment		98,000		25,343



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SCHEDULE OF INVESTMENTS

Franklin FTSE Asia ex Japan ETF (continued)



	Industry	Shares		Value

Common Stocks (continued)
China (continued)
^aGD Power Development Co. Ltd., Class A	Independent Power Producers & Energy Traders		5,600	$	3,099
^aGDS Holdings Ltd., Class A	IT Services		4,600		11,134
GEM Co. Ltd., Class A	Metals & Mining		1,800		1,958
Gemdale Corp., Class A	Real Estate Management & Development		1,800		2,202
^aGenscript Biotech Corp.	Life Sciences Tools & Services		4,770		10,208
GF Securities Co. Ltd., Class A	Capital Markets		2,200		5,052
GF Securities Co. Ltd., Class H	Capital Markets		5,600		7,933
GigaDevice Semiconductor, Inc., Class A	Semiconductors & Semiconductor Equipment		100		1,777
^aGinlong Technologies Co. Ltd., Class A	Electrical Equipment		150		2,918
Glarun Technology Co. Ltd., Class A	Communications Equipment		400		951
GoerTek, Inc., Class A	Electronic Equipment, Instruments & Components		1,100		3,428
Gotion High-tech Co. Ltd., Class A	Electrical Equipment		700		3,039
^aGrandjoy Holdings Group Co. Ltd., Class A	Real Estate Management & Development		700		380
Great Wall Motor Co. Ltd., Class A	Automobiles		1,100		4,474
Great Wall Motor Co. Ltd., Class H	Automobiles		12,000		14,813
Greentown China Holdings Ltd.	Real Estate Management & Development		4,500		5,836
GRG Banking Equipment Co. Ltd., Class A	Technology Hardware, Storage & Peripherals		700		1,250
Guangdong Baolihua New Energy Stock Co. Ltd., Class A	Independent Power Producers & Energy Traders		1,100		969
^aGuangdong Electric Power Development Co. Ltd., Class A, A	Independent Power Producers & Energy Traders		1,100		1,020
^aGuangdong Electric Power Development Co. Ltd., Class B	Independent Power Producers & Energy Traders		3,200		876
Guangdong Golden Dragon Development, Inc., Class A	Capital Markets		400		805
Guangdong Haid Group Co. Ltd., Class A	Food Products		600		5,096
Guangdong HEC Technology Holding Co. Ltd., Class A	Metals & Mining		700		912
Guangdong Kinlong Hardware Products Co. Ltd., Class A	Building Products		100		1,171
Guangdong Xinbao Electrical Appliances Holdings Co. Ltd., Class A	Household Durables		400		993
Guanghui Energy Co. Ltd., Class A	Oil, Gas & Consumable Fuels		2,100		2,829
^aGuangshen Railway Co. Ltd., Class A	Ground Transportation		1,100		386
^aGuangshen Railway Co. Ltd., Class H	Ground Transportation		8,000		1,478
Guangxi Guiguan Electric Power Co. Ltd., Class A	Independent Power Producers & Energy Traders		1,100		891
Guangxi Liugong Machinery Co. Ltd., Class A	Machinery		500		493
Guangzhou Automobile Group Co. Ltd., Class A	Automobiles		1,100		1,784
Guangzhou Automobile Group Co. Ltd., Class H	Automobiles		16,000		10,089
Guangzhou Baiyunshan Pharmaceutical Holdings Co. Ltd., Class A	Pharmaceuticals		400		1,927
Guangzhou Baiyunshan Pharmaceutical Holdings Co. Ltd., Class H	Pharmaceuticals		1,100		3,391
Guangzhou Haige Communications Group, Inc. Co., Class A	Communications Equipment		700		1,070
Guangzhou Kingmed Diagnostics Group Co. Ltd., Class A	Health Care Providers & Services		200		2,566
Guangzhou Shiyuan Electronic Technology Co. Ltd., Class A	Electronic Equipment, Instruments & Components		100		1,090
Guangzhou Tinci Materials Technology Co. Ltd., Class A	Chemicals		720		4,399
Guangzhou Yuexiu Capital Holdings Group Co. Ltd., Class A, A	Capital Markets		980		940
Guangzhou Zhujiang Brewery Co. Ltd., Class A	Beverages		400		552
Guizhou Panjiang Refined Coal Co. Ltd., Class A	Oil, Gas & Consumable Fuels		700		737



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Franklin FTSE Asia ex Japan ETF (continued)



	Industry	Shares		Value

Common Stocks (continued)
China (continued)
Guizhou Xinbang Pharmaceutical Co. Ltd., Class A	Pharmaceuticals		400	$	293
Guolian Securities Co. Ltd., Class A	Capital Markets		700		1,079
Guosen Securities Co. Ltd., Class A	Capital Markets		1,600		2,183
^aGuosheng Financial Holding, Inc., Class A	Electrical Equipment		400		508
Guotai Junan Securities Co. Ltd., Class A	Capital Markets		2,500		5,228
^bGuotai Junan Securities Co. Ltd., Class H	Capital Markets		3,600		4,375
Guoyuan Securities Co. Ltd., Class A	Capital Markets		1,920		1,890
^aH World Group Ltd., ADR	Hotels, Restaurants & Leisure		1,015		49,715
^a,bHaidilao International Holding Ltd.	Hotels, Restaurants & Leisure		7,200		19,491
Haier Smart Home Co. Ltd., Class A	Household Durables		2,100		6,935
Haier Smart Home Co. Ltd., Class H	Household Durables		11,200		35,241
Haisco Pharmaceutical Group Co. Ltd., Class A	Pharmaceuticals		400		1,451
Haitian International Holdings Ltd.	Machinery		3,000		7,758
Haitong Securities Co. Ltd., Class A	Capital Markets		3,200		4,105
Haitong Securities Co. Ltd., Class H	Capital Markets		16,800		10,487
^aHang Zhou Great Star Industrial Co. Ltd., Class A	Household Durables		400		1,102
Hangzhou Binjiang Real Estate Group Co. Ltd., Class A	Real Estate Management & Development		700		933
Hangzhou First Applied Material Co. Ltd., Class A	Semiconductors & Semiconductor Equipment		324		2,772
Hangzhou Robam Appliances Co. Ltd., Class A	Household Durables		400		1,652
Hangzhou Shunwang Technology Co. Ltd., Class A	Entertainment		400		901
Hangzhou Silan Microelectronics Co. Ltd., Class A	Semiconductors & Semiconductor Equipment		600		3,234
Hangzhou Tigermed Consulting Co. Ltd., Class A	Life Sciences Tools & Services		300		4,181
^bHangzhou Tigermed Consulting Co. Ltd., Class H	Life Sciences Tools & Services		400		3,755
Han’s Laser Technology Industry Group Co. Ltd., Class A	Machinery		400		1,768
^bHansoh Pharmaceutical Group Co. Ltd.	Pharmaceuticals		5,000		8,688
Haohua Chemical Science & Technology Co. Ltd., Class A, A	Chemicals		400		2,601
Hefei Meiya Optoelectronic Technology, Inc., Class A	Machinery		120		564
Heilongjiang Agriculture Co. Ltd., Class A	Food Products		700		1,368
Henan Shuanghui Investment & Development Co. Ltd., Class A	Food Products		1,200		4,533
Hengan International Group Co. Ltd.	Personal Products		3,500		16,185
Hengdian Group DMEGC Magnetics Co. Ltd., Class A	Electronic Equipment, Instruments & Components		700		2,096
Hengli Petrochemical Co. Ltd., Class A	Chemicals		1,260		2,972
Hengtong Optic-electric Co. Ltd., Class A	Communications Equipment		700		1,539
Hengyi Petrochemical Co. Ltd., Class A	Chemicals		1,100		1,301
Hesteel Co. Ltd., Class A	Metals & Mining		4,600		1,561
Hithink RoyalFlush Information Network Co. Ltd., Class A	Capital Markets		200		5,950
^aHolitech Technology Co. Ltd., Class A	Electronic Equipment, Instruments & Components		700		314
Hopson Development Holdings Ltd.	Real Estate Management & Development		4,182		3,825
Hoshine Silicon Industry Co. Ltd., Class A	Chemicals		200		2,418
^a,bHua Hong Semiconductor Ltd.	Semiconductors & Semiconductor Equipment		2,000		8,854
Huadian Power International Corp. Ltd., Class A	Independent Power Producers & Energy Traders		1,800		1,518
Huadian Power International Corp. Ltd., Class H	Independent Power Producers & Energy Traders		10,000		4,102
Huadong Medicine Co. Ltd., Class A	Health Care Providers & Services		700		4,724
Huafon Chemical Co. Ltd., Class A	Chemicals		1,400		1,521
Huagong Tech Co. Ltd., Class A	Electronic Equipment, Instruments & Components		400		1,480
Huaibei Mining Holdings Co. Ltd., Class A	Metals & Mining		700		1,382
Hualan Biological Engineering, Inc., Class A	Biotechnology		700		2,225



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Franklin FTSE Asia ex Japan ETF (continued)



	Industry	Shares		Value

Common Stocks (continued)
China (continued)
^aHuaneng Power International, Inc., Class A	Independent Power Producers & Energy Traders		2,800	$	3,494
^aHuaneng Power International, Inc., Class H	Independent Power Producers & Energy Traders		22,000		11,547
Huapont Life Sciences Co. Ltd., Class A	Chemicals		1,100		900
Huatai Securities Co. Ltd., Class A	Capital Markets		2,700		5,021
^bHuatai Securities Co. Ltd., Class H	Capital Markets		8,200		9,370
Huaxi Securities Co. Ltd., Class A	Capital Markets		700		839
Huaxia Bank Co. Ltd., Class A	Banks		4,900		3,839
Huaxin Cement Co. Ltd., Class A	Construction Materials		400		906
Huaxin Cement Co. Ltd., Class H, H	Construction Materials		1,400		1,523
Huayu Automotive Systems Co. Ltd., Class A	Automobile Components		1,100		2,681
Hubei Biocause Pharmaceutical Co. Ltd., Class A	Insurance		700		342
Hubei Energy Group Co. Ltd., Class A	Independent Power Producers & Energy Traders		2,100		1,294
Hubei Xingfa Chemicals Group Co. Ltd., Class A, A	Chemicals		400		1,774
Huizhou Desay Sv Automotive Co. Ltd., Class A	Household Durables		200		3,231
Humanwell Healthcare Group Co. Ltd., Class A	Pharmaceuticals		700		2,730
Hunan Gold Corp. Ltd., Class A	Metals & Mining		400		882
Hunan Valin Steel Co. Ltd., Class A	Metals & Mining		2,500		2,028
Hundsun Technologies, Inc., Class A	Software		676		5,239
^aHUTCHMED China Ltd.	Pharmaceuticals		2,500		6,576
^a,bHygeia Healthcare Holdings Co. Ltd.	Health Care Providers & Services		1,400		9,952
^aHytera Communications Corp. Ltd., Class A	Communications Equipment		400		393
Iflytek Co. Ltd., Class A	Software		800		7,418
Imeik Technology Development Co. Ltd., Class A, A	Biotechnology		100		8,136
Industrial & Commercial Bank of China Ltd., Class A	Banks		26,600		17,275
Industrial & Commercial Bank of China Ltd., Class H	Banks		378,000		201,280
Industrial Bank Co. Ltd., Class A	Banks		7,400		18,200
Industrial Securities Co. Ltd., Class A	Capital Markets		3,240		2,887
Ingenic Semiconductor Co. Ltd., Class A	Semiconductors & Semiconductor Equipment		200		2,592
Inmyshow Digital Technology Group Co. Ltd., Class A	Media		700		943
Inner Mongolia BaoTou Steel Union Co. Ltd., Class A	Metals & Mining		13,300		3,660
Inner Mongolia Dian Tou Energy Corp. Ltd., Class A	Oil, Gas & Consumable Fuels		400		783
Inner Mongolia ERDOS Resources Co. Ltd., Class B	Metals & Mining		2,100		3,984
Inner Mongolia Junzheng Energy & Chemical Industry Group Co. Ltd., Class A	Chemicals		2,800		1,843
Inner Mongolia Yili Industrial Group Co. Ltd., Class A	Food Products		2,200		9,329
Inner Mongolia Yitai Coal Co. Ltd., Class B	Oil, Gas & Consumable Fuels		4,900		7,198
^a,bInnovent Biologics, Inc., Class B	Biotechnology		6,500		29,105
Inspur Electronic Information Industry Co. Ltd., Class A	Technology Hardware, Storage & Peripherals		400		2,044
Intco Medical Technology Co. Ltd., Class A	Health Care Equipment & Supplies		180		677
^aiQIYI, Inc., ADR	Entertainment		2,086		15,186
JA Solar Technology Co. Ltd., Class A	Semiconductors & Semiconductor Equipment		740		6,179
Jafron Biomedical Co. Ltd., Class A	Health Care Equipment & Supplies		400		1,768
JCET Group Co. Ltd., Class A	Semiconductors & Semiconductor Equipment		700		3,308
^a,bJD Health International, Inc.	Consumer Staples Distribution & Retail		4,900		36,454
^a,bJD Logistics, Inc.	Air Freight & Logistics		8,100		14,549
JD.com, Inc., Class A	Broadline Retail		11,350		248,689
^aJiajiayue Group Co. Ltd., Class A	Consumer Staples Distribution & Retail		400		783



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Franklin FTSE Asia ex Japan ETF (continued)



	Industry	Shares		Value

Common Stocks (continued)
China (continued)
Jiangling Motors Corp. Ltd., Class A, A	Automobiles		400	$	824
Jiangsu Eastern Shenghong Co. Ltd., Class A	Chemicals		1,400		2,777
Jiangsu Expressway Co. Ltd., Class A	Transportation Infrastructure		400		486
Jiangsu Expressway Co. Ltd., Class H	Transportation Infrastructure		6,000		5,595
Jiangsu Hengli Hydraulic Co. Ltd., Class A	Machinery		496		4,783
Jiangsu Hengrui Pharmaceuticals Co. Ltd., Class A	Pharmaceuticals		2,332		14,541
Jiangsu King’s Luck Brewery JSC Ltd., Class A	Beverages		500		4,722
Jiangsu Linyang Energy Co. Ltd., Class A	Electrical Equipment		700		806
Jiangsu Yanghe Brewery Joint-Stock Co. Ltd., Class A	Beverages		500		12,047
Jiangsu Yangnong Chemical Co. Ltd., Class A	Chemicals		100		1,414
Jiangsu Yuyue Medical Equipment & Supply Co. Ltd., Class A	Health Care Equipment & Supplies		400		1,855
Jiangsu Zhangjiagang Rural Commercial Bank Co. Ltd., Class A	Banks		480		313
^aJiangsu Zhongnan Construction Group Co. Ltd., Class A	Real Estate Management & Development		1,800		532
Jiangsu Zhongtian Technology Co. Ltd., Class A	Electrical Equipment		1,100		2,737
Jiangxi Copper Co. Ltd., Class A	Metals & Mining		700		2,017
Jiangxi Copper Co. Ltd., Class H	Metals & Mining		6,000		10,166
^aJiangxi Special Electric Motor Co. Ltd., Class A, A	Electrical Equipment		700		1,569
^aJiangxi Zhengbang Technology Co. Ltd., Class A	Food Products		700		336
Jilin Aodong Pharmaceutical Group Co. Ltd., Class A	Pharmaceuticals		400		892
^aJinke Properties Group Co. Ltd., Class A	Real Estate Management & Development		2,500		579
Jinke Smart Services Group Co. Ltd., Class H	Real Estate Management & Development		1,400		2,140
^bJinxin Fertility Group Ltd.	Health Care Providers & Services		7,500		5,025
JiuGui Liquor Co. Ltd., Class A	Beverages		100		1,883
^bJiumaojiu International Holdings Ltd.	Hotels, Restaurants & Leisure		3,000		7,139
Jizhong Energy Resources Co. Ltd., Class A	Oil, Gas & Consumable Fuels		1,100		1,096
Joincare Pharmaceutical Group Industry Co. Ltd., Class A	Pharmaceuticals		700		1,342
Joinn Laboratories China Co. Ltd., Class A	Life Sciences Tools & Services		140		1,067
^bJoinn Laboratories China Co. Ltd., Class H	Life Sciences Tools & Services		420		1,635
^aJointo Energy Investment Co. Ltd. Hebei, Class A	Independent Power Producers & Energy Traders		400		298
Jointown Pharmaceutical Group Co. Ltd., Class A	Health Care Providers & Services		700		1,523
Jonjee Hi-Tech Industrial & Commercial Holding Co. Ltd., Class A	Food Products		400		2,161
Joyoung Co. Ltd., Class A	Household Durables		400		1,044
JOYY, Inc., ADR	Interactive Media & Services		224		6,984
Juewei Food Co. Ltd., Class A	Food Products		100		638
^aJuneyao Airlines Co. Ltd., Class A, A	Airlines		400		1,047
^aKaishan Group Co. Ltd., Class A	Machinery		400		1,031
^aKanzhun Ltd., ADR	Interactive Media & Services		672		12,788
^aKE Holdings, Inc., ADR	Real Estate Management & Development		3,003		56,577
Keda Industrial Group Co. Ltd.	Machinery		700		1,471
Kerry Logistics Network Ltd.	Air Freight & Logistics		1,500		2,331
Kingboard Holdings Ltd.	Electronic Equipment, Instruments & Components		3,500		10,745
^aKingdee International Software Group Co. Ltd.	Software		13,000		21,065
^aKingsoft Cloud Holdings Ltd., ADR	IT Services		497		4,418
Kingsoft Corp. Ltd.	Software		4,400		21,664
^a,bKuaishou Technology, Class B	Interactive Media & Services		9,100		70,076
Kuang-Chi Technologies Co. Ltd., Class A	Automobile Components		700		1,688
Kunlun Tech Co. Ltd., Class A	Entertainment		400		2,725
Kweichow Moutai Co. Ltd., Class A	Beverages		420		111,310
^aLakala Payment Co. Ltd., Class A	IT Services		400		1,094



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Franklin FTSE Asia ex Japan ETF (continued)



	Industry	Shares		Value

Common Stocks (continued)
China (continued)
Lao Feng Xiang Co. Ltd., Class B	Textiles, Apparel & Luxury Goods		1,100	$	3,674
Laobaixing Pharmacy Chain JSC, Class A	Consumer Staples Distribution & Retail		130		709
LB Group Co. Ltd., Class A	Chemicals		900		2,653
Lee & Man Paper Manufacturing Ltd.	Paper & Forest Products		7,000		2,800
^bLegend Holdings Corp., Class H	Technology Hardware, Storage & Peripherals		2,700		2,879
Lenovo Group Ltd.	Technology Hardware, Storage & Peripherals		36,000		38,981
Lens Technology Co. Ltd., Class A	Electronic Equipment, Instruments & Components		1,800		3,541
^aLeo Group Co. Ltd., Class A	Media		2,100		731
Lepu Medical Technology Beijing Co. Ltd., Class A	Health Care Equipment & Supplies		700		2,363
Levima Advanced Materials Corp., Class A, A	Chemicals		400		1,661
Leyard Optoelectronic Co. Ltd., Class A	Electronic Equipment, Instruments & Components		700		694
^aLi Auto, Inc., Class A	Automobiles		5,100		63,669
Li Ning Co. Ltd.	Textiles, Apparel & Luxury Goods		11,000		86,739
LianChuang Electronic Technology Co. Ltd., Class A	Electronic Equipment, Instruments & Components		400		745
Lianhe Chemical Technology Co. Ltd., Class A	Chemicals		400		821
Liaoning Port Co. Ltd., Class A	Transportation Infrastructure		6,700		1,561
^aLingyi iTech Guangdong Co., Class A	Electrical Equipment		2,800		2,520
Livzon Pharmaceutical Group, Inc., Class A	Pharmaceuticals		200		1,089
Livzon Pharmaceutical Group, Inc., Class H	Pharmaceuticals		800		2,823
^bLongfor Group Holdings Ltd.	Real Estate Management & Development		9,330		26,326
LONGi Green Energy Technology Co. Ltd., Class A	Semiconductors & Semiconductor Equipment		2,400		14,123
Longshine Technology Group Co. Ltd., Class A, A	Software		400		1,557
Luenmei Quantum Co. Ltd., Class A	Water Utilities		700		633
Lufax Holding Ltd., ADR	Consumer Finance		3,416		6,969
Luxi Chemical Group Co. Ltd., Class A	Chemicals		700		1,391
Luxshare Precision Industry Co. Ltd., Class A	Electronic Equipment, Instruments & Components		2,500		11,034
^a,bLuye Pharma Group Ltd.	Pharmaceuticals		9,500		4,405
Luzhou Laojiao Co. Ltd., Class A	Beverages		500		18,551
Maanshan Iron & Steel Co. Ltd., Class A	Metals & Mining		1,800		755
Maanshan Iron & Steel Co. Ltd., Class H	Metals & Mining		4,000		922
Mango Excellent Media Co. Ltd., Class A	Entertainment		740		4,013
Maxscend Microelectronics Co. Ltd., Class A	Electronic Equipment, Instruments & Components		160		2,898
^aMeinian Onehealth Healthcare Holdings Co. Ltd., Class A	Health Care Providers & Services		1,520		1,664
^a,bMeituan, Class B	Hotels, Restaurants & Leisure		22,700		414,964
Metallurgical Corp. of China Ltd., Class A	Construction & Engineering		5,600		3,180
Metallurgical Corp. of China Ltd., Class H	Construction & Engineering		15,000		3,879
^aMicroport Scientific Corp.	Health Care Equipment & Supplies		4,200		9,877
Ming Yang Smart Energy Group Ltd., Class A	Electrical Equipment		700		2,294
Ming Yuan Cloud Group Holdings Ltd.	Software		3,000		1,922
MINISO Group Holding Ltd., ADR	Broadline Retail		364		6,457
Minth Group Ltd.	Automobile Components		3,500		10,567
^aMMG Ltd.	Metals & Mining		12,000		3,516
Montage Technology Co. Ltd., Class A	Semiconductors & Semiconductor Equipment		297		3,007
^aMontnets Cloud Technology Group Co. Ltd., Class A	Software		400		839
Muyuan Foods Co. Ltd., Class A	Food Products		1,896		13,528
NanJi E-Commerce Co. Ltd., Class A	Media		700		517
Nanjing Hanrui Cobalt Co. Ltd., Class A	Metals & Mining		100		616
Nanjing Iron & Steel Co. Ltd., Class A	Metals & Mining		2,500		1,416
Nanjing King-Friend Biochemical Pharmaceutical Co. Ltd., Class A	Pharmaceuticals		520		1,234
NARI Technology Co. Ltd., Class A	Electrical Equipment		2,580		10,185
NAURA Technology Group Co. Ltd., Class A	Electronic Equipment, Instruments & Components		200		7,742



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Franklin FTSE Asia ex Japan ETF (continued)



	Industry	Shares		Value

Common Stocks (continued)
China (continued)
NavInfo Co. Ltd., Class A	Household Durables		700	$	1,379
NetEase, Inc.	Entertainment		8,900		156,460
New China Life Insurance Co. Ltd., Class A	Insurance		700		3,109
New China Life Insurance Co. Ltd., Class H	Insurance		4,600		10,935
^aNew Hope Liuhe Co. Ltd., Class A	Food Products		1,400		2,697
^aNew Oriental Education & Technology Group, Inc.	Diversified Consumer Services		6,610		25,767
Newland Digital Technology Co. Ltd., Class A	Software		400		975
Nexteer Automotive Group Ltd.	Automobile Components		5,000		3,153
Nine Dragons Paper Holdings Ltd.	Paper & Forest Products		8,000		5,992
Ninestar Corp., Class A	Technology Hardware, Storage & Peripherals		700		4,569
Ningbo Deye Technology Co. Ltd., Class A, A	Machinery		40		1,503
^aNingbo Joyson Electronic Corp., Class A	Automobile Components		500		1,109
Ningbo Orient Wires & Cables Co. Ltd., Class A, A	Electrical Equipment		300		2,154
Ningbo Ronbay New Energy Technology Co. Ltd., Class A	Electrical Equipment		175		1,743
Ningbo Sanxing Medical Electric Co. Ltd., Class A	Electrical Equipment		400		741
Ningbo Shanshan Co. Ltd., Class A, A	Chemicals		700		1,756
Ningbo Tuopu Group Co. Ltd., Class A	Automobile Components		400		3,735
Ningbo Zhoushan Port Co. Ltd., Class A	Transportation Infrastructure		3,200		1,687
Ningxia Baofeng Energy Group Co. Ltd., Class A	Chemicals		1,100		2,363
^aNIO, Inc., ADR	Automobiles		5,803		60,990
^bNongfu Spring Co. Ltd., Class H	Beverages		8,400		48,314
North Huajin Chemical Industries Co. Ltd., Class A	Chemicals		400		433
North Industries Group Red Arrow Co. Ltd., Class A	Machinery		400		1,330
Northeast Securities Co. Ltd., Class A	Capital Markets		700		691
NSFOCUS Technologies Group Co. Ltd., Class A .	Software		400		810
^aOceanwide Holdings Co. Ltd., Class A	Financial Services		700		107
^aOffcn Education Technology Co. Ltd., Class A	Diversified Consumer Services		700		499
Offshore Oil Engineering Co. Ltd., Class A	Energy Equipment & Services		1,800		1,607
^aOFILM Group Co. Ltd., Class A	Electronic Equipment, Instruments & Components		1,400		1,080
Oppein Home Group, Inc., Class A	Household Durables		100		1,759
ORG Technology Co. Ltd., Class A	Containers & Packaging		700		527
Orient Securities Co. Ltd., Class A	Capital Markets		2,772		3,952
^bOrient Securities Co. Ltd., Class H	Capital Markets		3,600		1,931
Oriental Energy Co. Ltd., Class A	Oil, Gas & Consumable Fuels		700		898
^aOurpalm Co. Ltd., Class A	Entertainment		1,400		881
Ovctek China, Inc., Class A	Health Care Equipment & Supplies		400		1,929
^aPangang Group Vanadium Titanium & Resources Co. Ltd., Class A	Metals & Mining		2,500		1,798
^aPDD Holdings, Inc., ADR	Internet & Direct Marketing Retail		2,093		158,859
People.cn Co. Ltd., Class A	Media		400		1,100
People’s Insurance Co. Group of China Ltd., Class A	Insurance		3,500		2,650
Perfect World Co. Ltd., Class A	Entertainment		400		991
PetroChina Co. Ltd., Class A	Oil, Gas & Consumable Fuels		8,800		7,586
PetroChina Co. Ltd., Class H	Oil, Gas & Consumable Fuels		102,000		60,421
Pharmaron Beijing Co. Ltd., Class A	Life Sciences Tools & Services		150		1,070
^bPharmaron Beijing Co. Ltd., Class H	Life Sciences Tools & Services		1,000		4,197
PICC Property & Casualty Co. Ltd., Class H	Insurance		32,000		32,652
Ping An Bank Co. Ltd., Class A	Banks		6,700		12,225
^a,bPing An Healthcare & Technology Co. Ltd.	Health Care Technology		2,000		5,060
Ping An Insurance Group Co. of China Ltd., Class A	Insurance		3,500		23,241



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Franklin FTSE Asia ex Japan ETF (continued)



	Industry	Shares		Value

Common Stocks (continued)
China (continued)
Ping An Insurance Group Co. of China Ltd., Class H	Insurance		29,950	$	194,962
Pingdingshan Tianan Coal Mining Co. Ltd., Class A	Oil, Gas & Consumable Fuels		800		1,208
Poly Developments & Holdings Group Co. Ltd., Class A	Real Estate Management & Development		4,200		8,642
Poly Property Services Co. Ltd., Class H	Real Estate Management & Development		800		4,902
^bPop Mart International Group Ltd.	Specialty Retail		3,600		9,814
Postal Savings Bank of China Co. Ltd., Class A	Banks		7,400		5,011
^bPostal Savings Bank of China Co. Ltd., Class H	Banks		42,000		24,933
Power Construction Corp. of China Ltd., Class A	Construction & Engineering		3,900		4,049
Qingdao Port International Co. Ltd., Class A	Transportation Infrastructure		400		370
Qingdao TGOOD Electric Co. Ltd., Class A	Electrical Equipment		400		1,028
^aQinghai Salt Lake Industry Co. Ltd., Class A	Chemicals		1,800		5,861
Qinhuangdao Port Co. Ltd., Class A	Transportation Infrastructure		700		288
Raytron Technology Co. Ltd., Class A	Electronic Equipment, Instruments & Components		111		790
Red Star Macalline Group Corp. Ltd., Class A	Real Estate Management & Development		420		343
^bRed Star Macalline Group Corp. Ltd., Class H	Real Estate Management & Development		3,600		1,651
^a,bRemegen Co. Ltd., Class H	Biotechnology		500		2,666
^aRiseSun Real Estate Development Co. Ltd., Class A	Real Estate Management & Development		1,100		295
^aRLX Technology, Inc., ADR	Tobacco		3,549		10,292
Rongsheng Petrochemical Co. Ltd., Class A	Chemicals		1,250		2,754
SAIC Motor Corp. Ltd., Class A	Automobiles		3,500		7,319
Sailun Group Co. Ltd., Class A, A	Automobile Components		1,100		1,728
Sangfor Technologies, Inc., Class A	Software		100		2,155
Sansteel Minguang Co. Ltd. Fujian, Class A	Metals & Mining		700		499
Sany Heavy Industry Co. Ltd., Class A	Machinery		2,800		6,968
Satellite Chemical Co. Ltd., Class A	Chemicals		1,113		2,593
Sealand Securities Co. Ltd., Class A	Capital Markets		1,280		634
^aSeazen Group Ltd.	Real Estate Management & Development		12,000		3,103
^aSeazen Holdings Co. Ltd., Class A	Real Estate Management & Development		800		1,904
^a,bSenseTime Group, Inc., Class B	Software		70,000		23,720
SF Holding Co. Ltd., Class A	Air Freight & Logistics		1,400		11,290
SG Micro Corp., Class A	Semiconductors & Semiconductor Equipment		150		3,390
Shaanxi Coal Industry Co. Ltd., Class A	Oil, Gas & Consumable Fuels		3,500		10,367
Shaanxi International Trust Co. Ltd., Class A	Capital Markets		700		325
Shan Xi Hua Yang Group New Energy Co. Ltd., Class A	Oil, Gas & Consumable Fuels		700		1,409
^aShandong Chenming Paper Holdings Ltd., Class A	Paper & Forest Products		700		541
^aShandong Chenming Paper Holdings Ltd., Class B	Paper & Forest Products		3,500		1,021
^aShandong Chenming Paper Holdings Ltd., Class H	Paper & Forest Products		3,000		940
Shandong Denghai Seeds Co. Ltd., Class A	Food Products		400		1,089
Shandong Gold Mining Co. Ltd., Class A	Metals & Mining		1,400		4,493
^bShandong Gold Mining Co. Ltd., Class H	Metals & Mining		3,500		7,107
Shandong Himile Mechanical Science & Technology Co. Ltd., Class A	Machinery		400		1,823
Shandong Hi-speed Co. Ltd., Class A	Transportation Infrastructure		1,100		980
Shandong Hualu Hengsheng Chemical Co. Ltd., Class A	Chemicals		700		3,593
Shandong Humon Smelting Co. Ltd., Class A	Metals & Mining		400		682
Shandong Linglong Tyre Co. Ltd., Class A	Automobile Components		400		1,138
Shandong Nanshan Aluminum Co. Ltd., Class A	Metals & Mining		3,500		1,728



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SCHEDULE OF INVESTMENTS

Franklin FTSE Asia ex Japan ETF (continued)



	Industry	Shares		Value

Common Stocks (continued)
China (continued)
Shandong Pharmaceutical Glass Co. Ltd., Class A	Health Care Equipment & Supplies		400	$	1,529
Shandong Sun Paper Industry JSC Ltd., Class A .	Paper & Forest Products		700		1,243
Shandong Weigao Group Medical Polymer Co. Ltd., Class H	Health Care Equipment & Supplies		11,800		18,850
Shanghai 2345 Network Holding Group Co. Ltd., Class A	Software		1,100		533
Shanghai AJ Group Co. Ltd., Class A	Financial Services		400		313
Shanghai Bailian Group Co. Ltd., Class B	Consumer Staples Distribution & Retail		1,400		955
Shanghai Bairun Investment Holding Group Co. Ltd., Class A	Beverages		392		2,335
Shanghai Baosight Software Co. Ltd., Class A	Software		300		2,542
Shanghai Baosight Software Co. Ltd., Class B	Software		2,612		8,625
Shanghai Construction Group Co. Ltd., Class A	Construction & Engineering		2,500		994
Shanghai Dazhong Public Utilities Group Co. Ltd., Class A	Gas Utilities		700		308
^aShanghai Electric Group Co. Ltd., Class A	Electrical Equipment		2,800		1,802
^aShanghai Electric Group Co. Ltd., Class H	Electrical Equipment		14,000		3,496
^aShanghai Electric Power Co. Ltd., Class A	Independent Power Producers & Energy Traders		1,100		1,591
Shanghai Fosun Pharmaceutical Group Co. Ltd., Class A	Pharmaceuticals		700		3,302
Shanghai Fosun Pharmaceutical Group Co. Ltd., Class H	Pharmaceuticals		2,000		5,682
Shanghai Fudan Microelectronics Group Co. Ltd., Class H	Semiconductors & Semiconductor Equipment		1,000		3,675
Shanghai Huayi Group Co. Ltd., Class B	Chemicals		700		406
^aShanghai International Airport Co. Ltd., Class A	Transportation Infrastructure		800		6,492
Shanghai International Port Group Co. Ltd., Class A	Transportation Infrastructure		3,500		2,824
Shanghai Jinjiang International Hotels Co. Ltd., Class A	Hotels, Restaurants & Leisure		400		3,664
Shanghai Jinjiang International Hotels Co. Ltd., Class B	Hotels, Restaurants & Leisure		700		1,477
Shanghai Jinqiao Export Processing Zone Development Co. Ltd., Class A, A	Real Estate Management & Development		400		694
Shanghai Jinqiao Export Processing Zone Development Co. Ltd., Class B	Real Estate Management & Development		1,100		1,048
^a,bShanghai Junshi Biosciences Co. Ltd., Class H	Biotechnology		1,000		3,490
Shanghai Lingang Holdings Corp. Ltd., Class A	Real Estate Management & Development		520		961
Shanghai Lujiazui Finance & Trade Zone Development Co. Ltd., Class A	Real Estate Management & Development		700		1,018
Shanghai Lujiazui Finance & Trade Zone Development Co. Ltd., Class B	Real Estate Management & Development		5,300		4,097
Shanghai Mechanical & Electrical Industry Co. Ltd., Class B	Machinery		1,400		1,498
Shanghai Pharmaceuticals Holding Co. Ltd., Class A	Health Care Providers & Services		1,000		2,966
Shanghai Pharmaceuticals Holding Co. Ltd., Class H	Health Care Providers & Services		4,400		8,206
Shanghai Pudong Development Bank Co. Ltd., Class A	Banks		10,500		10,993
Shanghai Putailai New Energy Technology Co. Ltd., Class A	Chemicals		540		3,925
Shanghai RAAS Blood Products Co. Ltd., Class A	Biotechnology		1,800		1,685
Shanghai Shibei Hi-Tech Co. Ltd., Class B	Real Estate Management & Development		3,200		829
Shanghai Tunnel Engineering Co. Ltd., Class A	Construction & Engineering		1,400		1,162



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Franklin FTSE Asia ex Japan ETF (continued)



	Industry	Shares		Value

Common Stocks (continued)
China (continued)
Shanghai Waigaoqiao Free Trade Zone Group Co. Ltd., Class A, A	Trading Companies & Distributors		400	$	721
Shanghai Waigaoqiao Free Trade Zone Group Co. Ltd., Class B	Trading Companies & Distributors		700		653
Shanghai Yuyuan Tourist Mart Group Co. Ltd., Class A	Specialty Retail		1,400		1,657
Shanghai Zhangjiang High-Tech Park Development Co. Ltd., Class A	Real Estate Management & Development		700		1,677
Shanghai Zhenhua Heavy Industries Co. Ltd., Class B	Machinery		3,900		979
^aShangri-La Asia Ltd.	Hotels, Restaurants & Leisure		6,000		5,625
Shanxi Coking Coal Energy Group Co. Ltd., Class A	Oil, Gas & Consumable Fuels		1,480		2,368
Shanxi Lu’an Environmental Energy Development Co. Ltd., Class A	Oil, Gas & Consumable Fuels		1,100		3,514
Shanxi Meijin Energy Co. Ltd., Class A, A	Metals & Mining		1,400		1,871
Shanxi Securities Co. Ltd., Class A	Capital Markets		820		694
Shanxi Taigang Stainless Steel Co. Ltd., Class A	Metals & Mining		2,100		1,327
Shanxi Xinghuacun Fen Wine Factory Co. Ltd., Class A	Beverages		400		15,866
Shanying International Holding Co. Ltd., Class A	Paper & Forest Products		1,100		396
Shenghe Resources Holding Co. Ltd., Class A	Metals & Mining		700		1,442
Shengyi Technology Co. Ltd., Class A	Electronic Equipment, Instruments & Components		700		1,882
Shennan Circuits Co. Ltd., Class A, A	Electronic Equipment, Instruments & Components		100		1,344
Shenwan Hongyuan Group Co. Ltd., Class A	Capital Markets		7,400		4,493
^bShenwan Hongyuan Group Co. Ltd., Class H	Capital Markets		8,800		1,670
Shenzhen Agricultural Products Group Co. Ltd., Class A	Consumer Staples Distribution & Retail		400		335
Shenzhen Airport Co. Ltd., Class A	Transportation Infrastructure		700		743
Shenzhen Aisidi Co. Ltd., Class A	Electronic Equipment, Instruments & Components		400		535
Shenzhen Capchem Technology Co. Ltd., Class A	Chemicals		360		2,558
Shenzhen Dynanonic Co. Ltd., Class A, A	Chemicals		50		1,379
Shenzhen Energy Group Co. Ltd., Class A	Independent Power Producers & Energy Traders		1,880		1,673
^aShenzhen Everwin Precision Technology Co. Ltd., Class A	Electronic Equipment, Instruments & Components		460		908
Shenzhen Expressway Corp. Ltd., Class H	Transportation Infrastructure		4,000		3,557
Shenzhen Gas Corp. Ltd., Class A	Gas Utilities		1,100		1,099
^bShenzhen Hepalink Pharmaceutical Group Co. Ltd., Class H	Pharmaceuticals		500		348
Shenzhen Huaqiang Industry Co. Ltd., Class A	Electronic Equipment, Instruments & Components		400		811
^aShenzhen Infogem Technologies Co. Ltd., Class A, A	Software		400		701
Shenzhen Inovance Technology Co. Ltd., Class A	Machinery		900		9,213
Shenzhen International Holdings Ltd.	Transportation Infrastructure		7,000		6,189
Shenzhen Investment Ltd.	Real Estate Management & Development		14,000		2,479
Shenzhen Jinjia Group Co. Ltd., Class A	Containers & Packaging		400		432
Shenzhen Kaifa Technology Co. Ltd., Class A	Technology Hardware, Storage & Peripherals		400		974
Shenzhen Kangtai Biological Products Co. Ltd., Class A	Biotechnology		480		2,212
Shenzhen Kedali Industry Co. Ltd., Class A, A	Automobile Components		100		1,883
Shenzhen Kingdom Sci-Tech Co. Ltd., Class A	Software		400		820
Shenzhen Mindray Bio-Medical Electronics Co. Ltd., Class A	Health Care Equipment & Supplies		400		18,156
^aShenzhen MTC Co. Ltd., Class A	Household Durables		2,100		1,508
Shenzhen Overseas Chinese Town Co. Ltd., Class A	Hotels, Restaurants & Leisure		2,500		1,758



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Franklin FTSE Asia ex Japan ETF (continued)



	Industry	Shares		Value

Common Stocks (continued)
China (continued)
Shenzhen Salubris Pharmaceuticals Co. Ltd., Class A	Pharmaceuticals		400	$	2,060
Shenzhen SC New Energy Technology Corp., Class A	Semiconductors & Semiconductor Equipment		100		1,667
Shenzhen Sunway Communication Co. Ltd., Class A	Communications Equipment		400		1,219
Shenzhen Transsion Holdings Co. Ltd., Class A	Technology Hardware, Storage & Peripherals		216		3,183
Shenzhen Yan Tian Port Holding Co. Ltd., Class A, A	Transportation Infrastructure		700		514
Shenzhen YUTO Packaging Technology Co. Ltd., Class A	Containers & Packaging		400		1,621
Shenzhen Zhongjin Lingnan Nonfemet Co. Ltd., Class A	Metals & Mining		1,100		788
Shenzhou International Group Holdings Ltd.	Textiles, Apparel & Luxury Goods		3,600		37,789
^aShijiazhuang Changshan BeiMing Technology Co. Ltd., Class A	Textiles, Apparel & Luxury Goods		400		530
Shijiazhuang Yiling Pharmaceutical Co. Ltd., Class A	Pharmaceuticals		720		3,052
^aShimao Group Holdings Ltd.	Real Estate Management & Development		8,500		2,246
^a,bShimao Services Holdings Ltd., Class Z	Real Estate Management & Development		4,000		1,004
Shinghwa Advanced Material Group Co. Ltd., Class A, A	Chemicals		100		1,194
Shui On Land Ltd.	Real Estate Management & Development		18,000		2,178
^aSiasun Robot & Automation Co. Ltd., Class A	Machinery		400		695
Sichuan Chuantou Energy Co. Ltd., Class A	Independent Power Producers & Energy Traders		1,400		2,695
Sichuan Hebang Biotechnology Co. Ltd., Class A	Chemicals		3,500		1,524
Sichuan Kelun Pharmaceutical Co. Ltd., Class A	Pharmaceuticals		400		1,655
^aSichuan New Energy Power Co. Ltd.	Trading Companies & Distributors		400		927
Sichuan Road & Bridge Group Co. Ltd., Class A	Construction & Engineering		1,800		3,617
Sichuan Swellfun Co. Ltd., Class A	Beverages		200		2,194
Sichuan Yahua Industrial Group Co. Ltd., Class A, A	Chemicals		400		1,233
Sieyuan Electric Co. Ltd., Class A	Electrical Equipment		400		2,663
Silergy Corp.	Semiconductors & Semiconductor Equipment		1,610		25,355
Sinoma International Engineering Co., Class A	Construction & Engineering		700		1,140
Sinoma Science & Technology Co. Ltd., Class A	Chemicals		700		2,460
Sino-Ocean Group Holding Ltd.	Real Estate Management & Development		14,000		1,587
Sinopec Engineering Group Co. Ltd., Class H	Construction & Engineering		7,500		3,726
^aSinopec Oilfield Service Corp., Class A	Energy Equipment & Services		1,100		336
^aSinopec Oilfield Service Corp., Class H	Energy Equipment & Services		14,000		1,070
Sinopec Shanghai Petrochemical Co. Ltd., Class A	Chemicals		1,400		687
Sinopec Shanghai Petrochemical Co. Ltd., Class H	Chemicals		18,000		3,141
Sinopharm Group Co. Ltd., Class H	Health Care Providers & Services		6,400		19,363
Sinotrans Ltd., Class A	Air Freight & Logistics		1,800		1,090
Sinotrans Ltd., Class H	Air Freight & Logistics		11,000		3,405
Sinotruk Hong Kong Ltd.	Machinery		3,500		5,440
SITC International Holdings Co. Ltd.	Marine Transportation		6,000		12,887
^aSkshu Paint Co. Ltd., Class A	Chemicals		100		1,695
Skyworth Digital Co. Ltd., Class A, A	Communications Equipment		400		1,104
^bSmoore International Holdings Ltd.	Tobacco		8,750		11,236
Songcheng Performance Development Co. Ltd., Class A	Hotels, Restaurants & Leisure		1,100		2,606
SooChow Securities Co. Ltd., Class A	Capital Markets		1,886		1,898
Southwest Securities Co. Ltd., Class A	Capital Markets		2,500		1,416
StarPower Semiconductor Ltd., Class A, A	Semiconductors & Semiconductor Equipment		100		3,998



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Franklin FTSE Asia ex Japan ETF (continued)



	Industry	Shares		Value

Common Stocks (continued)
China (continued)
^aSTO Express Co. Ltd., Class A	Air Freight & Logistics		400	$	648
Sun Art Retail Group Ltd.	Consumer Staples Distribution & Retail		9,000		3,611
^aSunac China Holdings Ltd.	Real Estate Management & Development		18,000		3,578
^bSunac Services Holdings Ltd.	Real Estate Management & Development		4,000		1,707
Sungrow Power Supply Co. Ltd., Class A	Electrical Equipment		500		7,635
Suning Universal Co. Ltd., Class A	Real Estate Management & Development		1,800		805
Sunny Optical Technology Group Co. Ltd.	Electronic Equipment, Instruments & Components		3,100		37,496
Sunwoda Electronic Co. Ltd., Class A	Electrical Equipment		700		2,055
Suofeiya Home Collection Co. Ltd., Class A	Household Durables		400		1,136
Suzhou Anjie Technology Co. Ltd., Class A, A	Electrical Equipment		400		873
Suzhou Dongshan Precision Manufacturing Co. Ltd., Class A	Electronic Equipment, Instruments & Components		700		3,083
^aSuzhou Gold Mantis Construction Decoration Co. Ltd., Class A	Construction & Engineering		700		534
Suzhou Maxwell Technologies Co. Ltd., Class A	Electrical Equipment		100		4,441
Taiji Computer Corp. Ltd., Class A	IT Services		200		1,228
^aTAL Education Group, ADR	Diversified Consumer Services		2,191		14,044
Tangshan Jidong Cement Co. Ltd., Class A	Construction Materials		1,100		1,390
TangShan Port Group Co. Ltd., Class A	Transportation Infrastructure		1,400		632
Tangshan Sanyou Chemical Industries Co. Ltd., Class A	Chemicals		700		672
TBEA Co. Ltd., Class A	Electrical Equipment		1,400		4,426
TCL Technology Group Corp., Class A	Household Durables		4,600		2,967
TCL Zhonghuan Renewable Energy Technology Co. Ltd., Class A	Semiconductors & Semiconductor Equipment		1,100		7,762
Tencent Holdings Ltd.	Interactive Media & Services		28,800		1,415,428
^aTencent Music Entertainment Group, ADR	Entertainment		2,933		24,285
The People’s Insurance Co. Group of China Ltd., Class H	Insurance		41,000		13,684
Thunder Software Technology Co. Ltd., Class A	Software		200		3,156
Tian Di Science & Technology Co. Ltd., Class A	Machinery		1,400		1,036
Tianjin Chase Sun Pharmaceutical Co. Ltd., Class A	Pharmaceuticals		1,100		956
Tianma Microelectronics Co. Ltd., Class A	Electronic Equipment, Instruments & Components		800		1,224
^aTianqi Lithium Corp., Class A	Chemicals		500		5,499
^aTianqi Lithium Corp., Class H	Chemicals		400		2,693
Tianshan Aluminum Group Co. Ltd., Class A	Machinery		700		774
Tianshui Huatian Technology Co. Ltd., Class A	Semiconductors & Semiconductor Equipment		1,100		1,618
^aTibet Summit Resources Co. Ltd., Class A, A	Metals & Mining		400		1,333
Tingyi Cayman Islands Holding Corp.	Food Products		8,000		13,330
Titan Wind Energy Suzhou Co. Ltd., Class A, A	Electrical Equipment		700		1,505
^aTongcheng Travel Holdings Ltd.	Hotels, Restaurants & Leisure		4,400		9,574
^aTongFu Microelectronics Co. Ltd., Class A	Semiconductors & Semiconductor Equipment		400		1,293
Tongkun Group Co. Ltd., Class A	Chemicals		700		1,464
Tongling Nonferrous Metals Group Co. Ltd., Class A	Metals & Mining		3,900		1,829
Tongwei Co. Ltd., Class A	Food Products		1,600		9,066
^aTopchoice Medical Corp., Class A	Health Care Providers & Services		100		1,883
Topsec Technologies Group, Inc., Class A	Electrical Equipment		400		714
^bTopsports International Holdings Ltd.	Specialty Retail		9,000		8,232
Towngas Smart Energy Co. Ltd.	Gas Utilities		6,000		2,599
TravelSky Technology Ltd., Class H	IT Services		4,000		7,470
Trina Solar Co. Ltd., Class A, A	Semiconductors & Semiconductor Equipment		739		5,605
^aTrip.com Group Ltd.	Hotels, Restaurants & Leisure		2,550		95,439
Tsingtao Brewery Co. Ltd., Class A	Beverages		300		5,268
Tsingtao Brewery Co. Ltd., Class H	Beverages		2,849		31,103
^aTuya, Inc., ADR	Software		588		1,111



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Franklin FTSE Asia ex Japan ETF (continued)



	Industry	Shares		Value

Common Stocks (continued)
China (continued)
Unigroup Guoxin Microelectronics Co. Ltd., Class A	Electronic Equipment, Instruments & Components		319	$	5,162
Uni-President China Holdings Ltd.	Food Products		6,000		6,054
Unisplendour Corp. Ltd., Class A	Electronic Equipment, Instruments & Components		560		2,388
Universal Scientific Industrial Shanghai Co. Ltd., Class A	Electronic Equipment, Instruments & Components		400		1,030
Valiant Co. Ltd., Class A	Chemicals		400		1,004
^aVipshop Holdings Ltd., ADR	Broadline Retail		1,883		28,584
Visual China Group Co. Ltd., Class A, A	Interactive Media & Services		400		972
Walvax Biotechnology Co. Ltd., Class A	Biotechnology		700		3,516
Wangsu Science & Technology Co. Ltd., Class A	.IT Services		700		733
Wanhua Chemical Group Co. Ltd., Class A	Chemicals		1,100		15,358
Want Want China Holdings Ltd.	Food Products		21,000		13,510
Wanxiang Qianchao Co. Ltd., Class A	Automobile Components		1,400		1,070
^aWeibo Corp., ADR	Interactive Media & Services		350		7,021
Weichai Power Co. Ltd., Class A	Machinery		2,500		4,591
Weichai Power Co. Ltd., Class H	Machinery		10,000		16,051
Weifu High-Technology Group Co. Ltd., Class A	Automobile Components		400		1,176
Weifu High-Technology Group Co. Ltd., Class B	Automobile Components		700		1,293
Weihai Guangwei Composites Co. Ltd., Class A	Chemicals		200		1,487
Wens Foodstuffs Group Co. Ltd., Class A	Food Products		700		2,087
Western Mining Co. Ltd., Class A, A	Metals & Mining		700		1,291
Western Securities Co. Ltd., Class A	Capital Markets		1,800		1,670
Western Superconducting Technologies Co. Ltd., Class A	Metals & Mining		119		1,413
Will Semiconductor Co. Ltd. Shanghai, Class A	Semiconductors & Semiconductor Equipment		200		2,653
Wingtech Technology Co. Ltd., Class A	Electronic Equipment, Instruments & Components		500		4,023
Winning Health Technology Group Co. Ltd., Class A	Health Care Technology		700		1,414
Wolong Electric Group Co. Ltd., Class A	Electrical Equipment		400		736
Wuchan Zhongda Group Co. Ltd., Class A	Distributors		1,800		1,271
Wuhan Guide Infrared Co. Ltd., Class A	Electronic Equipment, Instruments & Components		1,042		1,834
Wuliangye Yibin Co. Ltd., Class A	Beverages		1,300		37,293
WUS Printed Circuit Kunshan Co. Ltd., Class A	Electronic Equipment, Instruments & Components		700		2,191
WuXi AppTec Co. Ltd., Class A	Life Sciences Tools & Services		900		10,419
^bWuXi AppTec Co. Ltd., Class H	Life Sciences Tools & Services		1,500		15,707
^a,bWuxi Biologics Cayman, Inc.	Life Sciences Tools & Services		17,000		105,249
Wuxi Shangji Automation Co. Ltd., Class A	Machinery		140		2,082
XCMG Construction Machinery Co. Ltd., Class A	.Machinery		2,500		2,523
Xiamen C & D, Inc., Class A	Trading Companies & Distributors		1,100		1,933
Xiamen Faratronic Co. Ltd., Class A, A	Electronic Equipment, Instruments & Components		100		2,126
Xiamen ITG Group Corp. Ltd., Class A	Trading Companies & Distributors		700		879
Xiamen Tungsten Co. Ltd., Class A	Metals & Mining		500		1,484
Xiangcai Co. Ltd., Class A	Real Estate Management & Development		700		971
^a,bXiaomi Corp., Class B	Technology Hardware, Storage & Peripherals		71,400		110,057
Xinhua Winshare Publishing & Media Co. Ltd., Class H	Distributors		2,000		1,572
Xinjiang Goldwind Science & Technology Co. Ltd., Class A	Electrical Equipment		1,100		1,768
Xinjiang Goldwind Science & Technology Co. Ltd., Class H	Electrical Equipment		3,600		3,077
Xinjiang Tianshan Cement Co. Ltd., Class A, A	Construction Materials		700		903
Xinjiang Zhongtai Chemical Co. Ltd., Class A	Chemicals		1,100		1,161
Xinxing Ductile Iron Pipes Co. Ltd., Class A	Metals & Mining		1,800		1,056
Xinyangfeng Agricultural Technology Co. Ltd., Class A	Chemicals		400		626
Xinyi Solar Holdings Ltd.	Semiconductors & Semiconductor Equipment		21,000		25,173



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Franklin FTSE Asia ex Japan ETF (continued)



	Industry	Shares		Value

Common Stocks (continued)
China (continued)
^aXPeng, Inc., Class A	Automobiles		4,900	$	27,309
Xtep International Holdings Ltd.	Textiles, Apparel & Luxury Goods		5,500		6,992
Xuji Electric Co. Ltd., Class A	Electrical Equipment		400		1,363
^bYadea Group Holdings Ltd.	Automobiles		4,700		12,124
^aYango Group Co. Ltd., Class A	Real Estate Management & Development		2,100		502
^bYangtze Optical Fibre & Cable Joint Stock Ltd. Co., Class H	Communications Equipment		1,000		2,059
Yangzhou Yangjie Electronic Technology Co. Ltd., Class A	Semiconductors & Semiconductor Equipment		200		1,602
Yangzijiang Shipbuilding Holdings Ltd.	Machinery		12,600		11,372
Yankuang Energy Group Co. Ltd., Class A	Oil, Gas & Consumable Fuels		500		2,590
Yankuang Energy Group Co. Ltd., Class H	Oil, Gas & Consumable Fuels		10,000		35,796
Yantai Changyu Pioneer Wine Co. Ltd., Class B	Beverages		1,100		1,647
Yantai Eddie Precision Machinery Co. Ltd., Class A	Machinery		440		1,159
Yantai Jereh Oilfield Services Group Co. Ltd., Class A	Energy Equipment & Services		400		1,650
^aYatsen Holding Ltd., ADR	Personal Products		1,281		1,896
Yealink Network Technology Corp. Ltd., Class A	Communications Equipment		300		3,321
^aYifan Pharmaceutical Co. Ltd., Class A	Pharmaceuticals		400		818
Yifeng Pharmacy Chain Co. Ltd., Class A	Consumer Staples Distribution & Retail		260		2,189
Yihai International Holding Ltd.	Food Products		2,300		6,754
Yihai Kerry Arawana Holdings Co. Ltd., Class A	Food Products		700		4,393
Yintai Gold Co. Ltd., Class A	Metals & Mining		700		1,342
Yixintang Pharmaceutical Group Co. Ltd., Class A	Consumer Staples Distribution & Retail		200		1,032
YongXing Special Materials Technology Co. Ltd., Class A	Metals & Mining		100		1,222
Yonyou Network Technology Co. Ltd., Class A	Software		1,280		4,688
Youngor Group Co. Ltd., Class A	Real Estate Management & Development		1,800		1,709
YTO Express Group Co. Ltd., Class A	Air Freight & Logistics		1,100		2,934
^aYuan Longping High-tech Agriculture Co. Ltd., Class A	Food Products		400		966
Yuexiu Property Co. Ltd.	Real Estate Management & Development		7,000		10,558
Yum China Holdings, Inc.	Hotels, Restaurants & Leisure		2,000		125,759
Yunda Holding Co. Ltd., Class A	Air Freight & Logistics		400		689
Yunnan Aluminium Co. Ltd., Class A	Metals & Mining		1,100		2,180
Yunnan Baiyao Group Co. Ltd., Class A	Pharmaceuticals		600		4,779
Yunnan Botanee Bio-Technology Group Co. Ltd., Class A, A	Personal Products		100		1,867
Yunnan Copper Co. Ltd., Class A	Metals & Mining		700		1,314
Yunnan Energy New Material Co. Ltd., Class A	Containers & Packaging		300		4,972
Yunnan Tin Co. Ltd., Class A	Metals & Mining		600		1,298
^aZai Lab Ltd.	Biotechnology		4,500		14,933
Zhangzhou Pientzehuang Pharmaceutical Co. Ltd., Class A	Pharmaceuticals		200		8,282
^aZhaojin Mining Industry Co. Ltd., Class H	Metals & Mining		5,500		8,352
Zhefu Holding Group Co. Ltd., Class A	Electrical Equipment		2,100		1,245
^aZhejiang Century Huatong Group Co. Ltd., Class A	Entertainment		2,800		2,455
Zhejiang China Commodities City Group Co. Ltd., Class A	Real Estate Management & Development		2,100		1,768
Zhejiang Chint Electrics Co. Ltd., Class A	Electrical Equipment		500		2,036
Zhejiang Crystal-Optech Co. Ltd., Class A	Electronic Equipment, Instruments & Components		580		1,176
Zhejiang Dahua Technology Co. Ltd., Class A	Electronic Equipment, Instruments & Components		1,100		3,622
Zhejiang Dingli Machinery Co. Ltd., Class A	Machinery		200		1,596
Zhejiang Expressway Co. Ltd., Class H	Transportation Infrastructure		7,000		5,564



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SCHEDULE OF INVESTMENTS

Franklin FTSE Asia ex Japan ETF (continued)



	Industry	Shares		Value

Common Stocks (continued)
China (continued)
Zhejiang Hailiang Co. Ltd., Class A	Metals & Mining		400	$	679
Zhejiang Hisoar Pharmaceutical Co. Ltd., Class A	Pharmaceuticals		400		411
Zhejiang Huace Film & Television Co. Ltd., Class A	Entertainment		400		462
Zhejiang Huahai Pharmaceutical Co. Ltd., Class A	Pharmaceuticals		400		1,175
Zhejiang Huayou Cobalt Co. Ltd., Class A	Metals & Mining		400		3,204
Zhejiang Jingsheng Mechanical & Electrical Co. Ltd., Class A	Semiconductors & Semiconductor Equipment		500		4,754
Zhejiang Jiuzhou Pharmaceutical Co. Ltd., Class A	Pharmaceuticals		400		1,938
Zhejiang Juhua Co. Ltd., Class A	Chemicals		1,100		2,832
Zhejiang Medicine Co. Ltd., Class A	Pharmaceuticals		400		719
Zhejiang NHU Co. Ltd., Class A	Pharmaceuticals		1,244		3,252
Zhejiang Runtu Co. Ltd., Class A	Chemicals		400		451
Zhejiang Sanhua Intelligent Controls Co. Ltd., Class A	Machinery		400		1,500
Zhejiang Semir Garment Co. Ltd., Class A	Textiles, Apparel & Luxury Goods		400		351
Zhejiang Supcon Technology Co. Ltd., Class A	Electronic Equipment, Instruments & Components		200		3,024
Zhejiang Supor Co. Ltd., Class A	Household Durables		200		1,577
^aZhejiang Wanliyang Co. Ltd., Class A	Machinery		400		549
Zhejiang Weiming Environment Protection Co. Ltd., Class A, A	Commercial Services & Supplies		520		1,381
Zhejiang Weixing New Building Materials Co. Ltd., Class A	Building Products		700		2,478
Zhejiang Wolwo Bio-Pharmaceutical Co. Ltd., Class A	Pharmaceuticals		200		1,386
Zhejiang Yongtai Technology Co. Ltd., Class A	Chemicals		400		1,219
Zhengzhou Coal Mining Machinery Group Co. Ltd., Class A	Machinery		700		1,433
Zheshang Securities Co. Ltd., Class A	Capital Markets		400		587
^a,bZhongAn Online P&C Insurance Co. Ltd., Class H	Insurance		3,900		12,296
Zhongji Innolight Co. Ltd., Class A	Machinery		400		3,431
Zhongshan Public Utilities Group Co. Ltd., Class A	Water Utilities		700		719
Zhongsheng Group Holdings Ltd.	Specialty Retail		3,000		14,790
Zhongtai Securities Co. Ltd., Class A	Capital Markets		1,100		1,073
Zhuhai Huafa Properties Co. Ltd., Class A	Real Estate Management & Development		700		1,099
Zhuzhou CRRC Times Electric Co. Ltd., Class A, A	Electrical Equipment		200		1,390
Zhuzhou CRRC Times Electric Co. Ltd., Class H	Electrical Equipment		2,700		11,746
Zhuzhou Hongda Electronics Corp. Ltd., Class A, A	Electronic Equipment, Instruments & Components		200		1,328
Zhuzhou Kibing Group Co. Ltd., Class A	Building Products		700		1,063
Zijin Mining Group Co. Ltd., Class A	Metals & Mining		7,400		13,351
Zijin Mining Group Co. Ltd., Class H	Metals & Mining		28,000		46,798
Zoomlion Heavy Industry Science & Technology Co. Ltd., Class A	Machinery		2,800		2,532
Zoomlion Heavy Industry Science & Technology Co. Ltd., Class H	Machinery		7,800		4,124
ZTE Corp., Class A	Communications Equipment		1,400		6,638
ZTE Corp., Class H	Communications Equipment		4,000		11,720
ZTO Express Cayman, Inc.	Air Freight & Logistics		2,100		59,924

					10,619,511



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Franklin FTSE Asia ex Japan ETF (continued)



	Industry	Shares		Value

Common Stocks (continued)
Hong Kong 7.4%
AIA Group Ltd.	Insurance		56,400	$	593,820
^aAlibaba Health Information Technology Ltd., Class A	Health Care Technology		24,000		17,366
^aAlibaba Pictures Group Ltd., Class A	Media		70,000		4,548
ASMPT Ltd., Class A	Semiconductors & Semiconductor Equipment		1,400		13,857
Bank of East Asia Ltd., Class A	Banks		4,200		5,340
Beijing Enterprises Water Group Ltd., Class A	Water Utilities		22,000		5,493
Bosideng International Holdings Ltd., Class A	Household Durables		14,000		7,811
Cafe de Coral Holdings Ltd., Class A	Hotels, Restaurants & Leisure		2,000		2,650
^aCathay Pacific Airways Ltd., Class A	Airlines		5,000		4,809
Champion REIT, Class A	Diversified REITs		11,000		4,722
China Everbright Environment Group Ltd., Class B	Commercial Services & Supplies		19,000		8,157
China Everbright Ltd., Class A	Capital Markets		4,000		2,869
China Gas Holdings Ltd., Class A	Gas Utilities		14,800		20,852
China Mengniu Dairy Co. Ltd., Class B	Food Products		15,000		61,529
China Power International Development Ltd., Class H	Independent Power Producers & Energy Traders		21,000		8,347
China Resources Beer Holdings Co. Ltd., Class A	Beverages		7,553		60,617
China Resources Gas Group Ltd., Class A	Gas Utilities		4,500		16,596
China Resources Land Ltd., Class H	Real Estate Management & Development		13,500		61,567
China State Construction International Holdings Ltd., Class A	Construction & Engineering		8,000		9,050
China Traditional Chinese Medicine Holdings Co. Ltd.	Pharmaceuticals		13,000		6,806
CK Asset Holdings Ltd.	Real Estate Management & Development		9,200		55,845
CK Infrastructure Holdings Ltd., Class A	Electric Utilities		2,900		15,775
CLP Holdings Ltd.	Electric Utilities		7,900		57,061
COSCO SHIPPING Ports Ltd., Class B	Transportation Infrastructure		6,000		4,005
Dah Sing Banking Group Ltd., Class A	Banks		2,400		1,837
Dah Sing Financial Holdings Ltd., Class H	Banks		800		2,053
DFI Retail Group Holdings Ltd., Class A	Consumer Staples Distribution & Retail		1,500		4,545
Far East Horizon Ltd.	Financial Services		7,000		6,296
Geely Automobile Holdings Ltd.	Automobiles		25,000		32,166
Guangdong Investment Ltd.	Water Utilities		14,000		14,321
Guotai Junan International Holdings Ltd.	Capital Markets		13,000		1,060
^aHaitong International Securities Group Ltd.	Capital Markets		14,000		1,159
Hang Lung Group Ltd.	Real Estate Management & Development		4,000		7,062
Hang Lung Properties Ltd.	Real Estate Management & Development		9,000		16,831
Hang Seng Bank Ltd.	Banks		3,400		48,380
Henderson Land Development Co. Ltd.	Real Estate Management & Development		6,000		20,752
Hong Kong & China Gas Co. Ltd.	Gas Utilities		52,000		45,773
Hong Kong Exchanges & Clearing Ltd.	Capital Markets		6,100		270,577
Hongkong Land Holdings Ltd.	Real Estate Management & Development		4,900		21,511
Huabao International Holdings Ltd.	Chemicals		5,000		2,338
Hutchison Port Holdings Trust	Transportation Infrastructure		26,300		4,918
Hutchison Telecommunications Hong Kong Holdings Ltd.	Diversified Telecommunication Services		6,000		948
Hysan Development Co. Ltd.	Real Estate Management & Development		3,000		8,522
Jardine Matheson Holdings Ltd.	Industrial Conglomerates		930		45,170
Johnson Electric Holdings Ltd.	Electrical Equipment		2,000		2,267
Kerry Properties Ltd.	Real Estate Management & Development		3,000		7,662
Kingboard Laminates Holdings Ltd.	Electronic Equipment, Instruments & Components		5,500		5,745
Kunlun Energy Co. Ltd.	Oil, Gas & Consumable Fuels		18,000		14,079
Link REIT	Diversified REITs		12,600		81,058
Man Wah Holdings Ltd.	Household Durables		8,000		6,594
^aMelco International Development Ltd.	Hotels, Restaurants & Leisure		4,000		4,662



158	Annual Report	franklintempleton.com

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SCHEDULE OF INVESTMENTS

Franklin FTSE Asia ex Japan ETF (continued)



	Industry	Shares		Value

Common Stocks (continued)
Hong Kong (continued)
MTR Corp. Ltd.	Ground Transportation		7,000	$	33,752
New World Development Co. Ltd.	Real Estate Management & Development		7,000		18,771
NWS Holdings Ltd.	Industrial Conglomerates		7,000		6,269
Orient Overseas International Ltd.	Marine Transportation		700		13,394
PCCW Ltd.	Diversified Telecommunication Services		21,000		10,487
Power Assets Holdings Ltd.	Electric Utilities		7,000		37,542
Shanghai Industrial Holdings Ltd.	Industrial Conglomerates		3,000		4,013
Shougang Fushan Resources Group Ltd.	Metals & Mining		8,000		2,538
Sino Biopharmaceutical Ltd.	Pharmaceuticals		49,000		27,465
Sino Land Co. Ltd.	Real Estate Management & Development		17,500		23,675
Sun Hung Kai Properties Ltd.	Real Estate Management & Development		7,000		98,090
^aSuper Hi International Holding Ltd.	Hotels, Restaurants & Leisure		520		1,306
Swire Pacific Ltd., Class A	Real Estate Management & Development		2,000		15,363
Swire Pacific Ltd., Class B	Real Estate Management & Development		5,000		6,185
Swire Properties Ltd.	Real Estate Management & Development		4,200		10,808
Techtronic Industries Co. Ltd.	Household Durables		6,500		70,258
^aUnited Energy Group Ltd.	Oil, Gas & Consumable Fuels		36,000		4,265
Vinda International Holdings Ltd.	Household Products		1,000		2,418
Vitasoy International Holdings Ltd.	Food Products		3,500		6,777
VTech Holdings Ltd.	Communications Equipment		800		4,785
^bWH Group Ltd.	Food Products		38,500		22,953
Wharf Holdings Ltd.	Real Estate Management & Development		5,000		11,440
Wharf Real Estate Investment Co. Ltd.	Real Estate Management & Development		7,000		40,217
Xinyi Glass Holdings Ltd.	Automobile Components		9,625		17,239
Yue Yuen Industrial Holdings Ltd.	Textiles, Apparel & Luxury Goods		3,500		4,931

					2,222,719

India 15.8%
3M India Ltd.	Industrial Conglomerates		14		3,912
Aarti Industries Ltd.	Chemicals		931		5,870
ABB India Ltd.	Electrical Equipment		210		8,599
ACC Ltd.	Construction Materials		364		7,384
Adani Enterprises Ltd.	Trading Companies & Distributors		1,309		27,881
^aAdani Green Energy Ltd.	Independent Power Producers & Energy Traders		1,953		20,940
Adani Ports & Special Economic Zone Ltd.	Transportation Infrastructure		3,941		30,302
^aAdani Power Ltd.	Independent Power Producers & Energy Traders		4,809		11,212
Adani Total Gas Ltd.	Gas Utilities		1,330		14,043
^aAdani Transmission Ltd.	Electric Utilities		1,239		14,971
^aAdani Wilmar Ltd.	Food Products		770		3,803
^aAditya Birla Capital Ltd.	Financial Services		2,401		4,486
Alkem Laboratories Ltd.	Pharmaceuticals		126		5,207
Ambuja Cements Ltd.	Construction Materials		3,416		15,194
APL Apollo Tubes Ltd.	Metals & Mining		819		12,012
Apollo Hospitals Enterprise Ltd.	Health Care Providers & Services		490		25,703
Ashok Leyland Ltd.	Machinery		7,070		11,975
Asian Paints Ltd.	Chemicals		2,163		72,685
Astral Ltd.	Building Products		584		9,501
^bAU Small Finance Bank Ltd.	Banks		1,568		11,051
Aurobindo Pharma Ltd.	Pharmaceuticals		1,316		8,296
^a,bAvenue Supermarts Ltd.	Consumer Staples Distribution & Retail		707		29,259
Axis Bank Ltd.	Banks		11,102		115,974
Bajaj Auto Ltd.	Automobiles		343		16,214
Bajaj Finance Ltd.	Consumer Finance		1,134		77,503
Bajaj Finserv Ltd.	Financial Services		1,820		28,048
Bajaj Holdings & Investment Ltd.	Financial Services		126		9,077
Balkrishna Industries Ltd.	Automobile Components		392		9,308
^a,bBandhan Bank Ltd.	Banks		3,997		9,520
Bank of Baroda	Banks		5,166		10,614



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Franklin FTSE Asia ex Japan ETF (continued)



	Industry	Shares		Value

Common Stocks (continued)
India (continued)
Bank of India	Banks		2,401	$	2,181
Bata India Ltd.	Textiles, Apparel & Luxury Goods		308		5,316
Bayer CropScience Ltd.	Chemicals		63		3,126
Berger Paints India Ltd.	Chemicals		1,204		8,522
Bharat Electronics Ltd.	Aerospace & Defense		16,345		19,401
Bharat Forge Ltd.	Automobile Components		1,239		11,615
Bharat Heavy Electricals Ltd.	Electrical Equipment		4,620		3,938
Bharat Petroleum Corp. Ltd.	Oil, Gas & Consumable Fuels		4,550		19,062
Bharti Airtel Ltd.	Wireless Telecommunication Services		735		3,280
Bharti Airtel Ltd.	Wireless Telecommunication Services		11,088		101,054
Biocon Ltd.	Biotechnology		2,205		5,536
Bosch Ltd.	Automobile Components		42		9,899
Britannia Industries Ltd.	Food Products		560		29,452
Canara Bank	Banks		1,862		6,445
Castrol India Ltd.	Chemicals		2,464		3,327
^aCG Power & Industrial Solutions Ltd.	Electrical Equipment		3,458		12,625
Cholamandalam Investment & Finance Co. Ltd.	Consumer Finance		2,016		18,675
Cipla Ltd.	Pharmaceuticals		2,534		27,766
Coal India Ltd.	Oil, Gas & Consumable Fuels		9,387		24,403
Coforge Ltd.	IT Services		182		8,447
Colgate-Palmolive India Ltd.	Personal Products		651		11,940
Container Corp. Of India Ltd.	Ground Transportation		1,155		8,155
Coromandel International Ltd.	Chemicals		553		5,916
Cummins India Ltd.	Machinery		658		13,048
Dabur India Ltd.	Personal Products		2,870		19,029
Dalmia Bharat Ltd.	Construction Materials		329		7,879
Deepak Nitrite Ltd.	Chemicals		371		8,318
Divi’s Laboratories Ltd.	Life Sciences Tools & Services		595		20,441
Dixon Technologies India Ltd.	Household Durables		175		6,093
DLF Ltd.	Real Estate Management & Development		3,010		13,064
^bDr Lal PathLabs Ltd.	Health Care Providers & Services		175		3,893
Dr Reddy’s Laboratories Ltd.	Pharmaceuticals		581		32,681
Eicher Motors Ltd.	Automobiles		693		24,866
Emami Ltd.	Personal Products		707		3,085
Embassy Office Parks REIT	Diversified REITs		2,674		10,157
Exide Industries Ltd.	Automobile Components		2,198		4,759
Federal Bank Ltd.	Banks		6,573		10,581
^aFSN E-Commerce Ventures Ltd.	Specialty Retail		6,489		9,811
GAIL India Ltd.	Gas Utilities		13,328		17,053
^bGeneral Insurance Corp. of India	Insurance		518		842
GlaxoSmithKline Pharmaceuticals Ltd.	Pharmaceuticals		203		3,272
Glenmark Pharmaceuticals Ltd.	Pharmaceuticals		707		3,998
^aGMR Airports Infrastructure Ltd.	Construction & Engineering		11,893		5,868
^aGodrej Consumer Products Ltd.	Personal Products		1,652		19,461
^aGodrej Industries Ltd.	Chemicals		420		2,064
^aGodrej Properties Ltd.	Real Estate Management & Development		441		5,533
Grasim Industries Ltd.	Construction Materials		1,911		37,965
Gujarat Fluorochemicals Ltd.	Chemicals		175		6,431
Gujarat Gas Ltd.	Gas Utilities		707		3,954
Havells India Ltd.	Electrical Equipment		1,204		17,412
HCL Technologies Ltd.	IT Services		5,201		68,681
^bHDFC Asset Management Co. Ltd.	Capital Markets		280		5,819
^bHDFC Life Insurance Co. Ltd.	Insurance		4,830		29,339
Hero MotoCorp Ltd.	Automobiles		595		16,995
Hindalco Industries Ltd.	Metals & Mining		6,958		34,319
Hindustan Aeronautics Ltd.	Aerospace & Defense		413		13,725
Hindustan Petroleum Corp. Ltd.	Oil, Gas & Consumable Fuels		3,458		9,964



160	Annual Report	franklintempleton.com

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SCHEDULE OF INVESTMENTS

Franklin FTSE Asia ex Japan ETF (continued)



	Industry	Shares		Value

Common Stocks (continued)
India (continued)
Hindustan Unilever Ltd.	Household Products		4,249	$	132,375
Hindustan Zinc Ltd.	Metals & Mining		1,204		4,298
Honeywell Automation India Ltd.	Electronic Equipment, Instruments & Components		8		3,542
Housing Development Finance Corp. Ltd.	Financial Services		8,484		271,040
ICICI Bank Ltd.	Banks		7,567		80,773
^bICICI Lombard General Insurance Co. Ltd.	Insurance		1,183		15,395
^bICICI Prudential Life Insurance Co. Ltd.	Insurance		1,904		10,094
^aIDFC First Bank Ltd.	Banks		15,687		10,508
Indian Bank	Banks		945		3,318
Indian Hotels Co. Ltd.	Hotels, Restaurants & Leisure		4,074		16,079
Indian Oil Corp. Ltd.	Oil, Gas & Consumable Fuels		20,321		19,262
Indian Railway Catering & Tourism Corp. Ltd.	Commercial Services & Supplies		1,484		10,343
^bIndian Railway Finance Corp. Ltd.	Financial Services		4,620		1,495
Indraprastha Gas Ltd.	Gas Utilities		1,743		9,092
Indus Towers Ltd.	Diversified Telecommunication Services		4,361		7,588
Info Edge India Ltd.	Interactive Media & Services		371		16,809
Infosys Ltd.	IT Services		17,108		297,258
^a,bInterGlobe Aviation Ltd.	Airlines		588		13,670
Ipca Laboratories Ltd.	Pharmaceuticals		693		6,833
ITC Ltd.	Tobacco		14,252		66,506
Jindal Steel & Power Ltd.	Metals & Mining		1,960		13,027
JSW Energy Ltd.	Independent Power Producers & Energy Traders		1,855		5,436
JSW Steel Ltd.	Metals & Mining		4,802		40,206
Jubilant Foodworks Ltd.	Hotels, Restaurants & Leisure		1,820		9,746
Kansai Nerolac Paints Ltd.	Chemicals		672		3,163
Kotak Mahindra Bank Ltd.	Banks		476		10,037
L&T Finance Holdings Ltd.	Financial Services		4,494		4,487
^bL&T Technology Services Ltd.	Professional Services		133		5,468
Larsen & Toubro Ltd.	Construction & Engineering		3,339		87,929
^bLaurus Labs Ltd.	Pharmaceuticals		1,806		6,438
LIC Housing Finance Ltd.	Financial Services		1,673		6,692
Linde India Ltd.	Chemicals		105		5,149
^bLTIMindtree Ltd.	IT Services		441		25,541
Lupin Ltd.	Pharmaceuticals		1,225		9,665
Macrotech Developers Ltd.	Real Estate Management & Development		385		4,358
Mahindra & Mahindra Financial Services Ltd.	Consumer Finance		3,031		8,544
Mahindra & Mahindra Ltd.	Automobiles		4,445		62,671
^aMangalore Refinery & Petrochemicals Ltd.	Oil, Gas & Consumable Fuels		784		501
Marico Ltd.	Personal Products		2,611		15,244
Maruti Suzuki India Ltd.	Automobiles		658		66,392
^aMax Financial Services Ltd.	Insurance		1,225		9,465
^aMax Healthcare Institute Ltd.	Health Care Providers & Services		3,605		19,349
Mphasis Ltd.	IT Services		385		8,413
MRF Ltd.	Automobile Components		12		12,272
Muthoot Finance Ltd.	Consumer Finance		539		6,427
Nestle India Ltd.	Food Products		168		40,281
NHPC Ltd.	Independent Power Producers & Energy Traders		11,564		5,657
^bNippon Life India Asset Management Ltd.	Capital Markets		791		2,022
NMDC Ltd.	Metals & Mining		5,726		7,772
NTPC Ltd.	Independent Power Producers & Energy Traders		21,826		46,503
Oberoi Realty Ltd.	Real Estate Management & Development		420		4,306
Oil & Natural Gas Corp. Ltd.	Oil, Gas & Consumable Fuels		17,346		31,882
Oil India Ltd.	Oil, Gas & Consumable Fuels		1,708		5,230
One 97 Communications Ltd.	IT Services		462		3,580
Oracle Financial Services Software Ltd.	Software		119		4,726
Page Industries Ltd.	Textiles, Apparel & Luxury Goods		29		13,375
Patanjali Foods Ltd.	Food Products		336		3,963



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Franklin FTSE Asia ex Japan ETF (continued)



	Industry	Shares		Value

Common Stocks (continued)
India (continued)
^aPB Fintech Ltd.	Insurance		1,715	$	13,333
Persistent Systems Ltd.	IT Services		245		13,742
Petronet LNG Ltd.	Oil, Gas & Consumable Fuels		3,801		10,584
PI Industries Ltd.	Chemicals		364		13,421
Pidilite Industries Ltd.	Chemicals		742		21,244
Piramal Enterprises Ltd.	Pharmaceuticals		630		5,200
Polycab India Ltd.	Electrical Equipment		231		8,095
Power Finance Corp. Ltd.	Financial Services		5,985		11,051
Power Grid Corp. of India Ltd.	Electric Utilities		14,889		40,890
Punjab National Bank	Banks		5,607		3,179
Rajesh Exports Ltd.	Textiles, Apparel & Luxury Goods		686		5,093
^a,bRBL Bank Ltd.	Banks		2,380		4,086
REC Ltd.	Financial Services		6,363		8,939
Relaxo Footwears Ltd.	Textiles, Apparel & Luxury Goods		364		3,769
Reliance Industries Ltd.	Oil, Gas & Consumable Fuels		15,673		444,554
Samvardhana Motherson International Ltd.	Automobile Components		10,087		8,236
SBI Cards & Payment Services Ltd.	Consumer Finance		1,449		13,051
^bSBI Life Insurance Co. Ltd.	Insurance		2,086		27,949
Schaeffler India Ltd.	Machinery		196		6,839
Shree Cement Ltd.	Construction Materials		67		21,349
Shriram Finance Ltd.	Consumer Finance		1,190		18,236
Siemens Ltd.	Industrial Conglomerates		392		15,870
Solar Industries India Ltd.	Chemicals		105		4,845
^bSona Blw Precision Forgings Ltd.	Automobile Components		1,708		8,594
SRF Ltd.	Chemicals		686		20,132
^aStar Health & Allied Insurance Co. Ltd.	Insurance		1,092		6,887
State Bank of India	Banks		8,561		54,559
Steel Authority of India Ltd.	Metals & Mining		7,049		7,093
Sun Pharmaceutical Industries Ltd.	Pharmaceuticals		5,236		62,635
Sun TV Network Ltd.	Media		497		2,515
Supreme Industries Ltd.	Chemicals		308		9,420
Tata Communications Ltd.	Diversified Telecommunication Services		448		6,790
Tata Consultancy Services Ltd.	IT Services		4,935		192,512
Tata Consumer Products Ltd.	Food Products		3,003		25,902
Tata Elxsi Ltd.	Software		168		12,182
^aTata Motors Ltd., Class A	Automobiles		8,827		45,197
^aTata Motors Ltd., Class A	Automobiles		1,792		4,552
Tata Power Co. Ltd.	Electric Utilities		8,141		18,846
Tata Steel Ltd.	Metals & Mining		39,151		49,783
^aTata Teleservices Maharashtra Ltd.	Diversified Telecommunication Services		2,555		1,724
Tech Mahindra Ltd.	IT Services		2,870		38,479
Titan Co. Ltd.	Textiles, Apparel & Luxury Goods		2,002		61,264
Torrent Pharmaceuticals Ltd.	Pharmaceuticals		469		8,772
Torrent Power Ltd.	Electric Utilities		1,036		6,434
Trent Ltd.	Broadline Retail		910		15,225
Tube Investments of India Ltd.	Automobile Components		490		15,184
TVS Motor Co. Ltd.	Automobiles		1,134		14,864
UltraTech Cement Ltd.	Construction Materials		546		50,640
Union Bank of India Ltd.	Banks		5,621		4,552
United Breweries Ltd.	Beverages		266		4,611
^aUnited Spirits Ltd.	Beverages		1,288		11,853
UNO Minda Ltd.	Automobile Components		847		4,957
UPL Ltd.	Chemicals		2,625		22,923
Varun Beverages Ltd.	Beverages		1,008		17,012
Vedant Fashions Ltd.	Textiles, Apparel & Luxury Goods		175		2,426
Vedanta Ltd.	Metals & Mining		6,048		20,197
^aVodafone Idea Ltd.	Wireless Telecommunication Services		20,979		1,481



162	Annual Report	franklintempleton.com

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SCHEDULE OF INVESTMENTS

Franklin FTSE Asia ex Japan ETF (continued)



	Industry	Shares		Value

Common Stocks (continued)
India (continued)
Voltas Ltd.	Construction & Engineering		952	$	9,479
Whirlpool of India Ltd.	Household Durables		154		2,464
Wipro Ltd.	IT Services		6,041		26,848
^aYes Bank Ltd.	Banks		95,704		17,526
Zee Entertainment Enterprises Ltd.	Media		4,053		10,468
^aZomato Ltd.	Hotels, Restaurants & Leisure		26,733		16,590
Zydus Lifesciences Ltd.	Pharmaceuticals		1,183		7,076


					4,727,423

Indonesia 2.3%
Adaro Energy Indonesia Tbk PT, Class B	Oil, Gas & Consumable Fuels		60,900		11,778
Astra Agro Lestari Tbk PT, Class H	Food Products		2,100		1,134
Astra International Tbk PT, Class H	Automobiles		95,900		38,374
Avia Avian Tbk PT	Chemicals		58,500		2,321
Bank Central Asia Tbk PT, Class A	Banks		266,700		155,632
Bank Danamon Indonesia Tbk PT, Class H	Banks		4,200		804
Bank Mandiri Persero Tbk PT, Class A	Banks		105,700		72,784
Bank Negara Indonesia Persero Tbk PT, Class H	Banks		37,100		23,134
Bank Rakyat Indonesia Persero Tbk PT, Class A	Banks		330,400		104,224
Bank Syariah Indonesia Tbk PT	Banks		16,487		1,847
Barito Pacific Tbk PT, Class A	Chemicals		121,232		6,670
Bukit Asam Tbk PT, Class A	Oil, Gas & Consumable Fuels		20,300		5,402
^aBumi Serpong Damai Tbk PT, Class A	Real Estate Management & Development		44,100		2,882
Charoen Pokphand Indonesia Tbk PT, Class A	Food Products		36,400		12,114
Dayamitra Telekomunikasi PT	Diversified Telecommunication Services		116,900		5,496
Elang Mahkota Teknologi Tbk PT	Media		148,400		7,819
First Pacific Co. Ltd.	Financial Services		14,000		4,494
^aGoTo Gojek Tokopedia Tbk PT	Broadline Retail		3,416,000		24,832
Gudang Garam Tbk PT	Tobacco		2,100		3,641
Hanjaya Mandala Sampoerna Tbk PT	Tobacco		44,100		3,309
Indah Kiat Pulp & Paper Tbk PT	Paper & Forest Products		12,600		6,302
Indocement Tunggal Prakarsa Tbk PT	Construction Materials		9,100		6,388
Indofood CBP Sukses Makmur Tbk PT	Food Products		10,900		7,251
Indofood Sukses Makmur Tbk PT	Food Products		21,000		8,683
Indosat Tbk PT	Wireless Telecommunication Services		4,900		2,271
^aJasa Marga Persero Tbk PT	Transportation Infrastructure		11,200		2,405
Kalbe Farma Tbk PT	Pharmaceuticals		92,400		12,941
Mayora Indah Tbk PT	Food Products		19,600		3,490
^aMedia Nusantara Citra Tbk PT	Media		21,700		854
^aMerdeka Copper Gold Tbk PT	Metals & Mining		88,900		24,842
^aMNC Digital Entertainment Tbk PT	Entertainment		8,100		2,199
Perusahaan Gas Negara Tbk PT	Gas Utilities		50,100		4,611
Sarana Menara Nusantara Tbk PT	Diversified Telecommunication Services		90,300		5,571
Semen Indonesia Persero Tbk PT	Construction Materials		16,454		6,913
^aSmartfren Telecom Tbk PT	Wireless Telecommunication Services		508,900		2,070
Sumber Alfaria Trijaya Tbk PT	Consumer Staples Distribution & Retail		94,500		18,151
Surya Citra Media Tbk PT	Media		140,000		1,755
Telkom Indonesia Persero Tbk PT, Class B	Diversified Telecommunication Services		223,300		60,462
Tower Bersama Infrastructure Tbk PT	Diversified Telecommunication Services		20,300		2,924
Unilever Indonesia Tbk PT	Household Products		27,700		8,036
United Tractors Tbk PT	Oil, Gas & Consumable Fuels		7,700		14,944
^aVale Indonesia Tbk PT	Metals & Mining		10,500		4,657
XL Axiata Tbk PT	Wireless Telecommunication Services		18,900		2,496


					698,907

Italy 0.1%
PRADA SpA	Textiles, Apparel & Luxury Goods		2,400		17,014



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Franklin FTSE Asia ex Japan ETF (continued)



	Industry	Shares		Value

Common Stocks (continued)
Luxembourg 0.0%^†
L’Occitane International SA	Specialty Retail		2,250	$	5,618

Macau 0.4%
^aGalaxy Entertainment Group Ltd.	Hotels, Restaurants & Leisure		10,000		66,816
^aMGM China Holdings Ltd.	Hotels, Restaurants & Leisure		4,400		5,437
^aSands China Ltd.	Hotels, Restaurants & Leisure		11,200		38,951
^aSJM Holdings Ltd.	Hotels, Restaurants & Leisure		11,500		5,743
^aWynn Macau Ltd.	Hotels, Restaurants & Leisure		7,600		7,493


					124,440

Malaysia 1.8%
Alliance Bank Malaysia Bhd, Class A	Banks		6,000		4,623
AMMB Holdings Bhd	Beverages		10,500		8,924
Astro Malaysia Holdings Bhd, Class A	Media		6,000		945
Axiata Group Bhd, Class A	Wireless Telecommunication Services		22,800		15,553
British American Tobacco Malaysia Bhd, Class A	Tobacco		700		1,723
CELCOMDIGI BHD	Wireless Telecommunication Services		18,200		17,901
CIMB Group Holdings Bhd, Class A	Banks		31,200		37,546
Dialog Group Bhd, Class A	Energy Equipment & Services		20,300		10,857
FGV Holdings Bhd	Food Products		3,200		1,073
Fraser & Neave Holdings Bhd	Beverages		600		3,535
Gamuda Bhd	Construction & Engineering		10,900		10,079
Genting Bhd	Hotels, Restaurants & Leisure		11,200		11,828
Genting Malaysia Bhd	Hotels, Restaurants & Leisure		14,000		8,408
Hartalega Holdings Bhd	Health Care Equipment & Supplies		7,900		3,402
Hong Leong Bank Bhd	Banks		3,200		14,664
Hong Leong Financial Group Bhd	Banks		1,100		4,482
IHH Healthcare Bhd	Health Care Providers & Services		14,000		18,244
IJM Corp. Bhd	Construction & Engineering		15,400		5,584
IOI Corp. Bhd	Food Products		13,300		11,484
Kuala Lumpur Kepong Bhd	Food Products		2,100		9,890
Malayan Banking Bhd	Banks		34,300		66,618
^aMalaysia Airports Holdings Bhd	Transportation Infrastructure		4,550		7,002
Maxis Bhd	Wireless Telecommunication Services		10,200		9,547
MISC Bhd	Marine Transportation		8,800		14,399
^bMR DIY Group M Bhd	Specialty Retail		11,100		3,899
Nestle Malaysia Bhd	Food Products		270		8,389
Petronas Chemicals Group Bhd	Chemicals		14,000		22,432
Petronas Dagangan Bhd	Oil, Gas & Consumable Fuels		1,400		6,771
Petronas Gas Bhd	Gas Utilities		2,900		10,831
PPB Group Bhd	Food Products		2,800		10,508
Press Metal Aluminium Holdings Bhd	Metals & Mining		17,500		19,314
Public Bank Bhd	Banks		68,600		62,187
QL Resources Bhd	Food Products		5,700		7,505
RHB Bank Bhd	Banks		8,100		10,243
Sime Darby Bhd	Industrial Conglomerates		17,700		8,624
Sime Darby Plantation Bhd	Food Products		17,900		17,322
Telekom Malaysia Bhd	Diversified Telecommunication Services		4,200		4,664
Tenaga Nasional Bhd	Electric Utilities		14,700		30,749
^aTop Glove Corp. Bhd	Health Care Equipment & Supplies		26,300		5,603
Westports Holdings Bhd	Transportation Infrastructure		3,500		2,856
YTL Corp. Bhd	Multi-Utilities		20,713		2,887


					533,095

Pakistan 0.0%^†
Oil & Gas Development Co. Ltd.	Oil, Gas & Consumable Fuels		3,500		1,028
Pakistan Petroleum Ltd.	Oil, Gas & Consumable Fuels		3,507		790


					1,818



164	Annual Report	franklintempleton.com

FRANKLIN TEMPLETON ETF TRUST

SCHEDULE OF INVESTMENTS

Franklin FTSE Asia ex Japan ETF (continued)



	Industry	Shares		Value

Common Stocks (continued)
Philippines 0.9%
Aboitiz Power Corp., Class A	Independent Power Producers & Energy Traders		8,100	$	5,543
ACEN Corp.	Independent Power Producers & Energy Traders		32,940		3,708
Alliance Global Group, Inc., Class A	Industrial Conglomerates		19,300		4,388
Ayala Corp., Class A	Financial Services		1,400		16,739
Ayala Land, Inc., Class A	Real Estate Management & Development		35,700		17,402
Bank of the Philippine Islands, Class A	Banks		9,686		18,262
BDO Unibank, Inc., Class A	Banks		11,844		27,995
^aBloomberry Resorts Corp., Class H	Hotels, Restaurants & Leisure		15,100		2,722
^aConverge Information & Communications Technology Solutions, Inc.	Diversified Telecommunication Services		10,200		2,402
DMCI Holdings, Inc., Class A	Industrial Conglomerates		17,900		3,786
^aEmperador, Inc.	Beverages		11,900		4,575
Globe Telecom, Inc.	Wireless Telecommunication Services		152		5,212
GT Capital Holdings, Inc.	Financial Services		530		5,030
International Container Terminal Services, Inc.	Transportation Infrastructure		4,970		19,509
JG Summit Holdings, Inc.	Industrial Conglomerates		15,060		13,269
Jollibee Foods Corp.	Hotels, Restaurants & Leisure		2,140		8,817
LT Group, Inc.	Industrial Conglomerates		15,800		2,877
Manila Electric Co.	Electric Utilities		1,330		7,608
Megaworld Corp.	Real Estate Management & Development		63,000		2,318
Metro Pacific Investments Corp.	Financial Services		35,000		2,369
Metropolitan Bank & Trust Co.	Banks		8,980		9,663
^bMonde Nissin Corp.	Food Products		36,400		6,568
PLDT, Inc.	Wireless Telecommunication Services		385		10,056
Puregold Price Club, Inc.	Consumer Staples Distribution & Retail		5,360		3,086
San Miguel Corp.	Industrial Conglomerates		1,910		3,759
Semirara Mining & Power Corp.	Oil, Gas & Consumable Fuels		5,600		3,332
SM Prime Holdings, Inc.	Real Estate Management & Development		52,500		31,675
Universal Robina Corp.	Food Products		3,640		9,642


					252,312

Singapore 3.6%
^bBOC Aviation Ltd., Class A	Trading Companies & Distributors		700		5,408
CapitaLand Ascendas REIT, Class A	Diversified REITs		16,100		34,633
CapitaLand Ascott Trust, Class A	Diversified REITs		9,100		6,810
CapitaLand Integrated Commercial Trust, Class A	Diversified REITs		23,800		35,444
Capitaland Investment Ltd.	Real Estate Management & Development		12,600		34,875
City Developments Ltd., Class H	Real Estate Management & Development		2,100		11,641
ComfortDelGro Corp. Ltd., Class H	Ground Transportation		10,200		9,053
DBS Group Holdings Ltd., Class A	Banks		8,700		215,938
Frasers Logistics & Commercial Trust	Diversified REITs		14,000		13,794
Genting Singapore Ltd.	Hotels, Restaurants & Leisure		28,700		24,177
Jardine Cycle & Carriage Ltd.	Distributors		400		9,411
Keppel Corp. Ltd.	Industrial Conglomerates		6,300		26,677
Keppel DC REIT	Diversified REITs		6,300		9,761
Keppel REIT	Diversified REITs		8,400		5,591
Mapletree Industrial Trust	Diversified REITs		9,500		16,934
Mapletree Logistics Trust	Diversified REITs		16,100		20,707
Mapletree Pan Asia Commercial Trust	Diversified REITs		10,900		14,757
NETLINK NBN TRUST	Diversified Telecommunication Services		14,000		9,056
Olam Group Ltd.	Consumer Staples Distribution & Retail		4,000		4,723
Oversea-Chinese Banking Corp. Ltd.	Banks		16,800		156,306
^aSATS Ltd.	Transportation Infrastructure		4,365		9,160
Sembcorp Industries Ltd.	Industrial Conglomerates		4,600		15,154
^aSembcorp Marine Ltd.	Machinery		179,035		16,024
^aSIA Engineering Co. Ltd.	Transportation Infrastructure		1,100		1,862
Singapore Airlines Ltd.	Airlines		6,300		27,151
Singapore Exchange Ltd.	Capital Markets		3,850		27,220



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SCHEDULE OF INVESTMENTS

Franklin FTSE Asia ex Japan ETF (continued)



	Industry	Shares		Value

Common Stocks (continued)
Singapore (continued)
Singapore Post Ltd.	Air Freight & Logistics		7,700	$	2,896
Singapore Technologies Engineering Ltd.	Aerospace & Defense		7,600		20,921
Singapore Telecommunications Ltd.	Diversified Telecommunication Services		36,400		67,349
StarHub Ltd.	Wireless Telecommunication Services		2,800		2,190
Suntec Real Estate Investment Trust	Diversified REITs		10,500		11,293
United Overseas Bank Ltd.	Banks		6,200		138,778
UOL Group Ltd.	Real Estate Management & Development		2,100		10,946
Venture Corp. Ltd.	Electronic Equipment, Instruments & Components		1,313		17,450
Wilmar International Ltd.	Food Products		10,500		33,248
^aYangzijiang Financial Holding Ltd.	Capital Markets		12,600		3,554
Yanlord Land Group Ltd.	Real Estate Management & Development		2,800		1,916


					1,072,808

South Korea 12.4%
^aAlteogen, Inc., Class A	Biotechnology		168		5,117
Amorepacific Corp., Class H	Personal Products		140		14,711
AMOREPACIFIC Group, Class A	Personal Products		147		4,347
BGF retail Co. Ltd.	Consumer Staples Distribution & Retail		28		3,908
BNK Financial Group, Inc., Class H	Banks		1,477		7,386
Celltrion Healthcare Co. Ltd., Class A	Health Care Providers & Services		491		22,705
^aCelltrion Pharm, Inc., Class A	Pharmaceuticals		100		6,368
Celltrion, Inc., Class A	Biotechnology		535		61,561
Cheil Worldwide, Inc., Class A	Media		357		5,106
^aCJ CheilJedang Corp., Class A	Food Products		35		8,764
CJ Corp., Class A	Industrial Conglomerates		63		5,047
^aCJ ENM Co. Ltd., Class A	Entertainment		49		3,233
^aCJ Logistics Corp., Class A	Ground Transportation		42		2,578
Coway Co. Ltd.	Household Durables		280		11,292
^aDaewoo Engineering & Construction Co. Ltd., Class A	Construction & Engineering		854		2,644
^aDaewoo Shipbuilding & Marine Engineering Co. Ltd., Class A	Machinery		245		4,611
DB Insurance Co. Ltd., Class A	Insurance		217		12,485
DGB Financial Group, Inc., Class A	Banks		777		4,118
DL E&C Co. Ltd., Class A	Construction & Engineering		154		3,827
DL Holdings Co. Ltd., Class A	Construction & Engineering		63		2,579
Dongsuh Cos., Inc., Class A	Consumer Staples Distribution & Retail		154		2,322
Doosan Bobcat, Inc., Class A	Machinery		112		3,760
^aDoosan Enerbility Co. Ltd., Class H	Electrical Equipment		1,939		25,320
Ecopro BM Co. Ltd.	Electrical Equipment		196		33,800
^aE-MART, Inc., Class A	Consumer Staples Distribution & Retail		98		7,949
F&F Co. Ltd.	Textiles, Apparel & Luxury Goods		77		8,251
Fila Holdings Corp.	Textiles, Apparel & Luxury Goods		245		6,869
Green Cross Corp.	Biotechnology		28		2,626
GS Engineering & Construction Corp.	Construction & Engineering		308		4,886
^aGS Holdings Corp.	Oil, Gas & Consumable Fuels		252		7,820
GS Retail Co. Ltd.	Consumer Staples Distribution & Retail		189		4,116
Hana Financial Group, Inc.	Banks		1,372		42,893
^aHanjin Kal Corp.	Airlines		105		3,706
Hankook Tire & Technology Co. Ltd.	Automobile Components		364		9,730
^aHanmi Pharm Co. Ltd.	Pharmaceuticals		28		5,506
^aHanmi Science Co. Ltd.	Pharmaceuticals		84		2,513
Hanon Systems	Automobile Components		833		5,618
Hanwha Aerospace Co. Ltd.	Aerospace & Defense		168		12,802
Hanwha Corp.	Industrial Conglomerates		196		3,952
Hanwha Corp.	Industrial Conglomerates		91		978
Hanwha Galleria Co. Ltd.	Broadline Retail		568		929
^aHanwha Life Insurance Co. Ltd.	Insurance		1,435		2,646



166	Annual Report	franklintempleton.com

FRANKLIN TEMPLETON ETF TRUST

SCHEDULE OF INVESTMENTS

Franklin FTSE Asia ex Japan ETF (continued)



	Industry	Shares		Value

Common Stocks (continued)
South Korea (continued)
^aHanwha Solutions Corp.	Chemicals		503	$	20,748
HD Hyundai Co. Ltd.	Machinery		245		10,934
^aHite Jinro Co. Ltd.	Beverages		154		2,650
HL Mando Co. Ltd.	Automobile Components		161		5,670
^aHLB, Inc.	Leisure Products		476		12,706
^aHMM Co. Ltd.	Marine Transportation		1,428		22,322
Hotel Shilla Co. Ltd.	Specialty Retail		154		9,641
^aHYBE Co. Ltd.	Entertainment		91		13,204
Hyundai Department Store Co. Ltd.	Broadline Retail		70		2,941
^aHyundai Doosan Infracore Co. Ltd.	Machinery		651		3,765
Hyundai Engineering & Construction Co. Ltd.	Construction & Engineering		357		9,996
Hyundai Glovis Co. Ltd.	Air Freight & Logistics		91		11,079
^aHyundai Heavy Industries Co. Ltd.	Machinery		70		5,377
Hyundai Marine & Fire Insurance Co. Ltd.	Insurance		301		7,815
^aHyundai Mipo Dockyard Co. Ltd.	Machinery		91		4,907
Hyundai Mobis Co. Ltd.	Automobile Components		301		49,941
Hyundai Motor Co.	Automobiles		672		95,237
Hyundai Steel Co.	Metals & Mining		371		9,889
Hyundai Wia Corp.	Automobile Components		84		3,613
^aIndustrial Bank of Korea	Banks		1,274		9,884
^aKakao Corp.	Interactive Media & Services		1,449		68,006
^aKakao Games Corp.	Entertainment		140		4,484
^aKakaoBank Corp.	Banks		770		14,284
^aKakaopay Corp.	IT Services		105		4,484
^aKangwon Land, Inc.	Hotels, Restaurants & Leisure		427		6,527
KB Financial Group, Inc.	Banks		1,869		68,409
KCC Corp.	Building Products		21		3,581
^aKEPCO Plant Service & Engineering Co. Ltd.	Commercial Services & Supplies		112		3,252
Kia Corp.	Automobiles		1,232		76,654
^aKorea Aerospace Industries Ltd.	Aerospace & Defense		350		12,743
^aKorea Electric Power Corp.	Electric Utilities		1,253		17,334
^aKorea Gas Corp.	Gas Utilities		133		2,769
^aKorea Investment Holdings Co. Ltd.	Capital Markets		182		7,689
^aKorea Shipbuilding & Offshore Engineering Co. Ltd.	Machinery		210		12,501
Korea Zinc Co. Ltd.	Metals & Mining		42		17,841
^aKorean Air Lines Co. Ltd.	Airlines		875		15,593
^aKrafton, Inc.	Entertainment		133		18,747
^aKT&G Corp.	Tobacco		511		32,932
^aKumho Petrochemical Co. Ltd.	Chemicals		84		9,272
L&F Co. Ltd.	Electronic Equipment, Instruments & Components		112		26,971
LG Chem Ltd.	Chemicals		226		123,603
LG Corp.	Industrial Conglomerates		434		27,603
^aLG Display Co. Ltd.	Electronic Equipment, Instruments & Components		1,106		13,958
LG Electronics, Inc.	Household Durables		532		47,117
^aLG Energy Solution Ltd.	Electrical Equipment		161		72,223
LG H&H Co. Ltd.	Personal Products		40		18,435
LG Innotek Co. Ltd.	Electronic Equipment, Instruments & Components		70		14,545
LG Uplus Corp.	Diversified Telecommunication Services		1,050		8,735
Lotte Chemical Corp.	Chemicals		84		12,311
Lotte Chilsung Beverage Co. Ltd.	Beverages		14		1,773
Lotte Corp.	Industrial Conglomerates		133		2,937
^aLotte Energy Materials Corp.	Electronic Equipment, Instruments & Components		91		4,809
LOTTE Fine Chemical Co. Ltd.	Chemicals		84		3,768
Lotte Shopping Co. Ltd.	Broadline Retail		56		3,523
LS Corp.	Electrical Equipment		84		5,136
Meritz Financial Group, Inc.	Financial Services		637		18,887



franklintempleton.com	Annual Report	167

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SCHEDULE OF INVESTMENTS

Franklin FTSE Asia ex Japan ETF (continued)



	Industry	Shares		Value

Common Stocks (continued)
South Korea (continued)
Mirae Asset Securities Co. Ltd.	Capital Markets		1,309	$	6,496
Mirae Asset Securities Co. Ltd.	Capital Markets		721		1,966
NAVER Corp.	Interactive Media & Services		693		107,529
NCSoft Corp.	Entertainment		73		20,832
^a,bNetmarble Corp.	Software		84		4,278
^aNH Investment & Securities Co. Ltd.	Capital Markets		644		4,353
^aNHN Corp.	Software		77		1,556
NongShim Co. Ltd.	Food Products		18		5,240
^aOCI Co. Ltd.	Chemicals		84		6,601
Orion Corp.	Food Products		84		8,814
^aOttogi Corp.	Food Products		7		2,409
Pan Ocean Co. Ltd.	Marine Transportation		987		4,405
^aParadise Co. Ltd.	Hotels, Restaurants & Leisure		238		3,070
^aPearl Abyss Corp.	Entertainment		147		5,222
POSCO Chemical Co. Ltd.	Construction Materials		133		27,839
POSCO Holdings, Inc.	Metals & Mining		357		100,915
Posco International Corp.	Trading Companies & Distributors		259		4,437
S-1 Corp.	Commercial Services & Supplies		91		3,866
^a,bSamsung Biologics Co. Ltd.	Life Sciences Tools & Services		87		52,660
Samsung C&T Corp.	Industrial Conglomerates		392		32,580
Samsung Card Co. Ltd.	Consumer Finance		154		3,596
Samsung Electro-Mechanics Co. Ltd.	Electronic Equipment, Instruments & Components		266		31,200
Samsung Electronics Co. Ltd.	Technology Hardware, Storage & Peripherals		22,680		1,114,967
^aSamsung Engineering Co. Ltd.	Construction & Engineering		665		16,193
Samsung Fire & Marine Insurance Co. Ltd.	Insurance		154		24,368
^aSamsung Heavy Industries Co. Ltd.	Machinery		2,989		11,870
Samsung Life Insurance Co. Ltd.	Insurance		322		15,533
Samsung SDI Co. Ltd.	Electronic Equipment, Instruments & Components		253		142,839
Samsung SDS Co. Ltd.	IT Services		175		15,593
Samsung Securities Co. Ltd.	Capital Markets		322		7,841
SD Biosensor, Inc.	Health Care Equipment & Supplies		168		2,723
^aSeegene, Inc.	Biotechnology		147		2,800
^aShin Poong Pharmaceutical Co. Ltd.	Pharmaceuticals		168		2,324
Shinhan Financial Group Co. Ltd.	Banks		2,401		65,196
^aShinsegae, Inc.	Broadline Retail		35		5,794
^aSK Biopharmaceuticals Co. Ltd.	Pharmaceuticals		126		6,127
^aSK Bioscience Co. Ltd.	Biotechnology		98		5,428
SK Chemicals Co. Ltd.	Chemicals		35		2,003
SK Hynix, Inc.	Semiconductors & Semiconductor Equipment		2,604		177,220
^a,bSK IE Technology Co. Ltd.	Chemicals		126		6,891
^aSK Innovation Co. Ltd.	Oil, Gas & Consumable Fuels		252		34,707
SK Networks Co. Ltd.	Trading Companies & Distributors		728		2,519
^aSK Square Co. Ltd.	Semiconductors & Semiconductor Equipment		420		12,824
SK Telecom Co. Ltd.	Wireless Telecommunication Services		112		4,155
SK, Inc.	Industrial Conglomerates		175		23,188
SKC Co. Ltd.	Chemicals		91		7,990
S-Oil Corp.	Oil, Gas & Consumable Fuels		203		12,490
Solus Advanced Materials Co. Ltd.	Electronic Equipment, Instruments & Components		70		2,527
SSANGYONG C&E Co. Ltd.	Construction Materials		574		2,720
^aWemade Co. Ltd.	Entertainment		84		3,239
Woori Financial Group, Inc.	Banks		3,024		26,504
Yuhan Corp.	Pharmaceuticals		252		9,795


					3,715,366

Taiwan 16.4%
Accton Technology Corp.	Communications Equipment		2,630		27,555
Acer, Inc., Class H	Technology Hardware, Storage & Peripherals		14,000		12,944
Advanced Energy Solution Holding Co. Ltd.	Electrical Equipment		110		2,594



168	Annual Report	franklintempleton.com

FRANKLIN TEMPLETON ETF TRUST

SCHEDULE OF INVESTMENTS

Franklin FTSE Asia ex Japan ETF (continued)



	Industry	Shares		Value

Common Stocks (continued)
Taiwan (continued)
Advantech Co. Ltd.	Technology Hardware, Storage & Peripherals		1,750	$	21,324
ASE Technology Holding Co. Ltd., Class A	Semiconductors & Semiconductor Equipment		16,700		61,705
Asia Cement Corp.	Construction Materials		11,000		15,643
ASMedia Technology, Inc.	Semiconductors & Semiconductor Equipment		180		6,769
ASPEED Technology, Inc.	Semiconductors & Semiconductor Equipment		156		13,501
Asustek Computer, Inc.	Technology Hardware, Storage & Peripherals		3,500		31,324
AUO Corp., Class H	Electronic Equipment, Instruments & Components		35,000		21,151
Capital Securities Corp., Class A	Capital Markets		7,000		2,759
Catcher Technology Co. Ltd.	Technology Hardware, Storage & Peripherals		3,000		18,721
Cathay Financial Holding Co. Ltd., Class A	Insurance		43,001		59,034
Chailease Holding Co. Ltd., Class A	Financial Services		6,650		48,814
Chang Hwa Commercial Bank Ltd., Class A	Banks		28,000		15,955
Cheng Shin Rubber Industry Co. Ltd., Class A	Automobile Components		8,800		10,564
Chicony Electronics Co. Ltd.	Technology Hardware, Storage & Peripherals		2,630		8,232
China Airlines Ltd., Class A	Airlines		14,000		8,966
China Development Financial Holding Corp., Class A	Banks		70,000		28,853
China Motor Corp., Class A	Automobiles		930		1,952
China Steel Corp., Class A	Metals & Mining		59,000		59,877
Chunghwa Telecom Co. Ltd.	Diversified Telecommunication Services		18,380		72,138
Compal Electronics, Inc., Class H	Technology Hardware, Storage & Peripherals		21,000		17,415
CTBC Financial Holding Co. Ltd., Class A	Banks		84,000		60,281
Delta Electronics, Inc., Class A	Electronic Equipment, Instruments & Components		10,500		103,802
E Ink Holdings, Inc.	Electronic Equipment, Instruments & Components		4,400		26,662
E.Sun Financial Holding Co. Ltd., Class A	Banks		65,000		54,011
Eclat Textile Co. Ltd., Class A	Textiles, Apparel & Luxury Goods		840		13,656
eMemory Technology, Inc.	Semiconductors & Semiconductor Equipment		350		21,381
ENNOSTAR, Inc., Class H	Semiconductors & Semiconductor Equipment		2,920		5,102
Eternal Materials Co. Ltd., Class H	Chemicals		5,000		5,148
Eva Airways Corp., Class H	Airlines		10,000		8,818
Evergreen Marine Corp. Taiwan Ltd.	Marine Transportation		4,830		25,143
Far Eastern International Bank	Banks		12,770		4,655
Far Eastern New Century Corp.	Industrial Conglomerates		19,250		19,789
Far EasTone Telecommunications Co. Ltd.	Wireless Telecommunication Services		7,000		17,289
Feng TAY Enterprise Co. Ltd.	Textiles, Apparel & Luxury Goods		2,310		14,643
First Financial Holding Co. Ltd.	Banks		49,000		42,567
^a,bFIT Hon Teng Ltd.	Electronic Equipment, Instruments & Components		7,000		1,641
Formosa Chemicals & Fibre Corp.	Chemicals		16,700		37,900
Formosa Petrochemical Corp.	Oil, Gas & Consumable Fuels		6,130		17,113
Formosa Plastics Corp.	Chemicals		18,380		55,416
Formosa Sumco Technology Corp.	Semiconductors & Semiconductor Equipment		350		1,908
Formosa Taffeta Co. Ltd.	Textiles, Apparel & Luxury Goods		3,000		2,769
Foxconn Technology Co. Ltd.	Technology Hardware, Storage & Peripherals		5,250		9,639
Fubon Financial Holding Co. Ltd.	Insurance		35,000		64,948
Genius Electronic Optical Co. Ltd.	Electronic Equipment, Instruments & Components		460		5,824
Giant Manufacturing Co. Ltd.	Leisure Products		1,572		9,087
Globalwafers Co. Ltd.	Semiconductors & Semiconductor Equipment		1,050		17,864
Hiwin Technologies Corp.	Machinery		1,485		12,218
Hon Hai Precision Industry Co. Ltd.	Electronic Equipment, Instruments & Components		58,000		198,111
Hotai Motor Co. Ltd.	Specialty Retail		1,580		33,315
^aHTC Corp.	Technology Hardware, Storage & Peripherals		3,500		7,196
Hua Nan Financial Holdings Co. Ltd.	Banks		49,000		35,968
Innolux Corp.	Electronic Equipment, Instruments & Components		35,000		16,668
Inventec Corp.	Technology Hardware, Storage & Peripherals		14,000		14,691
Largan Precision Co. Ltd.	Electronic Equipment, Instruments & Components		510		36,432
Lite-On Technology Corp.	Technology Hardware, Storage & Peripherals		10,500		25,278
MediaTek, Inc.	Semiconductors & Semiconductor Equipment		7,210		186,362



franklintempleton.com	Annual Report	169

FRANKLIN TEMPLETON ETF TRUST

SCHEDULE OF INVESTMENTS

Franklin FTSE Asia ex Japan ETF (continued)



	Industry	Shares		Value

Common Stocks (continued)
Taiwan (continued)
Mega Financial Holding Co. Ltd.	Banks		54,000	$	58,527
Micro-Star International Co. Ltd.	Technology Hardware, Storage & Peripherals		3,500		16,553
momo.com, Inc.	Broadline Retail		296		8,779
Nan Ya Plastics Corp.	Chemicals		28,000		71,270
Nan Ya Printed Circuit Board Corp.	Electronic Equipment, Instruments & Components		1,170		10,875
Nanya Technology Corp.	Semiconductors & Semiconductor Equipment		3,790		8,278
Nien Made Enterprise Co. Ltd.	Household Durables		770		8,270
Novatek Microelectronics Corp.	Semiconductors & Semiconductor Equipment		2,890		40,957
^aOneness Biotech Co. Ltd.	Pharmaceuticals		1,400		12,277
Pegatron Corp.	Technology Hardware, Storage & Peripherals		10,000		22,892
Pou Chen Corp.	Textiles, Apparel & Luxury Goods		12,000		12,297
Powerchip Semiconductor Manufacturing Corp.	Semiconductors & Semiconductor Equipment		14,000		15,220
Powertech Technology, Inc.	Semiconductors & Semiconductor Equipment		3,500		10,461
President Chain Store Corp.	Consumer Staples Distribution & Retail		2,800		24,784
Quanta Computer, Inc.	Technology Hardware, Storage & Peripherals		13,130		38,423
Realtek Semiconductor Corp.	Semiconductors & Semiconductor Equipment		2,370		30,163
Ruentex Development Co. Ltd.	Real Estate Management & Development		11,900		13,816
Shanghai Commercial & Savings Bank Ltd.	Banks		18,146		27,981
Shin Kong Financial Holding Co. Ltd.	Insurance		67,041		18,540
Sino-American Silicon Products, Inc.	Semiconductors & Semiconductor Equipment		2,680		13,731
SinoPac Financial Holdings Co. Ltd.	Banks		51,580		28,121
Synnex Technology International Corp.	Electronic Equipment, Instruments & Components		7,000		14,093
Taishin Financial Holding Co. Ltd.	Banks		56,000		30,531
Taiwan Business Bank	Banks		28,000		12,369
Taiwan Cement Corp.	Construction Materials		30,097		35,981
Taiwan Cooperative Financial Holding Co. Ltd.	Banks		49,000		42,003
Taiwan Fertilizer Co. Ltd.	Chemicals		3,500		6,437
Taiwan Glass Industry Corp.	Building Products		8,000		5,399
Taiwan High Speed Rail Corp.	Transportation Infrastructure		8,000		7,948
Taiwan Mobile Co. Ltd.	Wireless Telecommunication Services		8,000		26,537
Taiwan Secom Co. Ltd.	Commercial Services & Supplies		1,170		4,054
Taiwan Semiconductor Manufacturing Co. Ltd.	Semiconductors & Semiconductor Equipment		115,500		2,021,890
Teco Electric & Machinery Co. Ltd.	Electrical Equipment		10,000		13,958
Transcend Information, Inc.	Technology Hardware, Storage & Peripherals		1,170		2,809
U-Ming Marine Transport Corp.	Marine Transportation		2,000		3,665
Unimicron Technology Corp.	Electronic Equipment, Instruments & Components		6,130		29,696
Uni-President Enterprises Corp.	Food Products		23,700		55,966
United Microelectronics Corp.	Semiconductors & Semiconductor Equipment		56,000		97,295
Vanguard International Semiconductor Corp.	Semiconductors & Semiconductor Equipment		4,380		13,939
Voltronic Power Technology Corp.	Electrical Equipment		290		16,478
Walsin Lihwa Corp.	Electrical Equipment		16,851		26,980
Walsin Technology Corp.	Electronic Equipment, Instruments & Components		2,450		7,781
Wan Hai Lines Ltd.	Marine Transportation		4,460		10,034
Win Semiconductors Corp.	Semiconductors & Semiconductor Equipment		1,750		10,489
Winbond Electronics Corp.	Semiconductors & Semiconductor Equipment		12,000		10,444
Wistron Corp.	Technology Hardware, Storage & Peripherals		14,000		19,243
Wiwynn Corp.	Technology Hardware, Storage & Peripherals		420		15,519
Yageo Corp.	Electronic Equipment, Instruments & Components		1,890		32,837
Yang Ming Marine Transport Corp.	Marine Transportation		8,750		18,479
Yuanta Financial Holding Co. Ltd.	Capital Markets		56,000		41,107
Yulon Motor Co. Ltd.	Automobiles		2,863		7,071
Zhen Ding Technology Holding Ltd.	Electronic Equipment, Instruments & Components		2,630		9,847


					4,924,179

Thailand 2.6%
Advanced Info Service PCL, NVDR	Wireless Telecommunication Services		5,600		34,719
^aAirports of Thailand PCL, Class H, NVDR	Transportation Infrastructure		20,700		42,980
Asset World Corp. PCL, Class H, NVDR	Hotels, Restaurants & Leisure		37,100		6,293



170	Annual Report	franklintempleton.com

FRANKLIN TEMPLETON ETF TRUST

SCHEDULE OF INVESTMENTS

Franklin FTSE Asia ex Japan ETF (continued)



	Industry	Shares		Value

Common Stocks (continued)
Thailand (continued)
B Grimm Power PCL, Class A, NVDR	Independent Power Producers & Energy Traders		3,900	$	4,619
Bangkok Bank PCL, Class A, fgn.	Banks		2,100		9,304
Bangkok Bank PCL, Class A, NVDR	Banks		1,100		4,874
Bangkok Dusit Medical Services PCL, Class A, NVDR	Health Care Providers & Services		44,100		38,045
Bangkok Expressway & Metro PCL, Class H, NVDR	Transportation Infrastructure		38,900		10,068
Bangkok Life Assurance PCL, Class A, NVDR	Insurance		2,500		2,047
Banpu PCL, Class A, NVDR	Oil, Gas & Consumable Fuels		28,000		8,843
Berli Jucker PCL, Class A, NVDR	Consumer Staples Distribution & Retail		4,900		5,481
BTS Group Holdings PCL, Class A, NVDR	Ground Transportation		42,000		8,721
Bumrungrad Hospital PCL, NVDR	Health Care Providers & Services		2,800		18,506
Carabao Group PCL, Class A, NVDR	Beverages		1,800		5,040
Central Pattana PCL, Class A, NVDR	Real Estate Management & Development		13,700		27,544
Central Retail Corp. PCL, Class A, NVDR	Broadline Retail		14,000		18,321
Charoen Pokphand Foods PCL, Class A, NVDR	Food Products		23,800		14,755
CP ALL PCL, Class B, NVDR	Consumer Staples Distribution & Retail		28,700		52,037
Delta Electronics Thailand PCL, Class A, NVDR	Electronic Equipment, Instruments & Components		1,400		46,755
Digital Telecommunications Infrastructure Fund, Class A, fgn.	Financial Services		25,900		9,619
Electricity Generating PCL, Class A, NVDR	Independent Power Producers & Energy Traders		1,400		6,366
Energy Absolute PCL, Class A, NVDR	Oil, Gas & Consumable Fuels		8,400		18,669
Global Power Synergy PCL, NVDR	Independent Power Producers & Energy Traders		3,500		6,960
Gulf Energy Development PCL, NVDR	Independent Power Producers & Energy Traders		20,000		30,852
Home Product Center PCL, NVDR	Specialty Retail		28,000		11,791
Indorama Ventures PCL, NVDR	Chemicals		8,800		8,878
Intouch Holdings PCL, NVDR	Wireless Telecommunication Services		4,200		9,089
IRPC PCL, NVDR	Oil, Gas & Consumable Fuels		48,700		3,731
Kasikornbank PCL, fgn.	Banks		5,300		20,537
Kasikornbank PCL, NVDR	Banks		1,800		6,975
Krung Thai Bank PCL, NVDR	Banks		30,800		14,862
Krungthai Card PCL, NVDR	Consumer Finance		6,600		10,471
Land & Houses PCL, NVDR	Real Estate Management & Development		34,700		9,995
^aMinor International PCL, NVDR	Hotels, Restaurants & Leisure		17,900		16,882
Muangthai Capital PCL, NVDR	Consumer Finance		3,500		3,531
Osotspa PCL, NVDR	Beverages		6,700		6,025
PTT Exploration & Production PCL, NVDR	Oil, Gas & Consumable Fuels		6,300		27,728
PTT Global Chemical PCL, NVDR	Chemicals		9,800		13,112
PTT Oil & Retail Business PCL, NVDR	Specialty Retail		13,700		8,534
PTT PCL, NVDR	Oil, Gas & Consumable Fuels		69,000		63,562
Ratch Group PCL, NVDR	Independent Power Producers & Energy Traders		6,000		6,755
SCB X PCL, NVDR	Banks		8,400		25,179
SCG Packaging PCL, NVDR	Containers & Packaging		6,000		8,115
Siam Cement PCL, NVDR	Construction Materials		3,500		32,242
Siam City Cement PCL, NVDR	Construction Materials		400		1,632
Siam Makro PCL, NVDR	Consumer Staples Distribution & Retail		7,000		8,035
Sri Trang Gloves Thailand PCL, NVDR	Health Care Equipment & Supplies		4,900		1,462
Srisawad Corp. PCL, NVDR	Consumer Finance		3,200		4,936
Thai Oil PCL, NVDR	Oil, Gas & Consumable Fuels		5,375		8,252
Thai Union Group PCL, NVDR	Food Products		14,400		5,938
TMBThanachart Bank PCL, NVDR	Banks		210,000		8,721
True Corp. PCL, NVDR	Diversified Telecommunication Services		54,060		13,280


					791,668

United Kingdom 0.3%
CK Hutchison Holdings Ltd., Class A	Real Estate Management & Development		13,000		80,650



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FRANKLIN TEMPLETON ETF TRUST

SCHEDULE OF INVESTMENTS

Franklin FTSE Asia ex Japan ETF (continued)



	Industry	Shares		Value

Common Stocks (continued)
United States 0.1%
^bJS Global Lifestyle Co. Ltd.	Household Durables		5,500	$	5,647
Parade Technologies Ltd.	Semiconductors & Semiconductor Equipment		350		12,070
^a,bSamsonite International SA	Textiles, Apparel & Luxury Goods		6,300		19,462

					37,179

Total Common Stocks (Cost $31,931,680)					29,831,002


Preferred Stocks 0.7%
South Korea 0.7%
^cAmorepacific Corp., 1.546%, pfd.	Personal Products		49		1,668
^a,cCJ CheilJedang Corp., 1.780%,pfd.	Food Products		7		836
^cHyundai Motor Co., 7.411%, pfd.	Automobiles		168		12,363
^cHyundai Motor Co., 7.468%, pfd.	Automobiles		112		8,121
^cLG Chem Ltd., 3.237%, pfd.	Chemicals		28		6,678
^cLG Electronics, Inc., 1.54%, pfd.	Household Durables		77		2,881
^cLG H&H Co. Ltd., 1.636%, pfd.	Personal Products		11		2,091
^cSamsung Electronics Co. Ltd., 2.681%, pfd.	Technology Hardware, Storage & Peripherals		3,962		164,037
^cSamsung Fire & Marine Insurance Co. Ltd., 8.666%, pfd.	Insurance		14		1,713
^cSamsung SDI Co. Ltd., 0.325%, pfd.	Electronic Equipment, Instruments & Components		7		1,788


Total Preferred Stocks (Cost $213,337)					202,176

Total Investments (Cost $32,145,017) 100.2%					30,033,178
Other Assets, less Liabilities (0.2)%					(52,849	)

Net Assets 100.0%				$	29,980,329

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

^aNon-income producing.

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

See Abbreviations on page 355.



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

FRANKLIN TEMPLETON ETF TRUST

Financial Highlights

Franklin FTSE Australia ETF



	Year Ended March 31,
	2023			2022			2021			2020			2019

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

Net asset value, beginning of year		$31.55			$29.12			$17.38			$24.63			$24.67


Income from investment operations^a:

Net investment income^b		1.60			1.48			0.81			1.07			1.29

Net realized and unrealized gains (losses)		(4.84	)		2.47			11.55			(7.18	)		(0.37	)


Total from investment operations		(3.24	)		3.95			12.36			(6.11	)		0.92


Less distributions from net investment income		(1.55	)		(1.52	)		(0.62	)		(1.14	)		(0.96	)


Net asset value, end of year		$26.76			$31.55			$29.12			$17.38			$24.63


Total return^c		(9.90)%			13.93%			71.72%			(26.23)%			4.00%

Ratios to average net assets^d

Total expenses		0.09%			0.09%			0.09%			0.09%			0.09%

Net investment income		5.94%			4.93%			3.25%			4.28%			5.30%

Supplemental data

Net assets, end of year (000’s)		$29,437			$29,968			$23,295			$7,820			$7,389

Portfolio turnover rate^e		5.88%^f			15.26%^f			6.98%^f			8.16%^f			4.56%

^aThe amount shown for a share outstanding throughout the period may not correlate with the Statement of Operations for the period due to the timing of sales and repurchases of Creation Unit Fund shares in relation to income earned and/or fluctuating fair value of the investments of the Fund. ^bBased on average daily shares outstanding. ^cTotal return is not annualized for periods less than one year. Total return is calculated assuming an initial investment made at the net asset value at the beginning of the period, reinvestment of all dividends and distributions at net asset value during the period, and redemption at net asset value on the last day of the period. ^dRatios are annualized for periods less than one year. ^ePortfolio turnover rate includes portfolio transactions that are executed as a result of the Fund offering and redeeming Creation Units solely for cash (“Cash creations”).
^fPortfolio turnover rate excluding cash creations was as follows:		5.88%			15.26%			6.98%			8.16%			—



franklintempleton.com	The accompanying notes are an integral part of these financial statements. \| Annual Report	173

FRANKLIN TEMPLETON ETF TRUST

Schedule of Investments, March 31, 2023

Franklin FTSE Australia ETF



	Industry	Shares		Value

Common Stocks 98.3%
Australia 95.6%
Adbri Ltd.	Construction Materials		10,538	$	11,187
AGL Energy Ltd.	Multi-Utilities		13,486		72,710
^aAllkem Ltd.	Metals & Mining		13,266		105,553
ALS Ltd.	Professional Services		10,868		89,967
Altium Ltd.	Software		2,662		67,892
Alumina Ltd.	Metals & Mining		56,738		55,480
^aAMP Ltd.	Financial Services		68,068		47,868
Ampol Ltd.	Oil, Gas & Consumable Fuels		5,390		110,067
Ansell Ltd.	Health Care Equipment & Supplies		2,882		51,209
ANZ Group Holdings Ltd.	Banks		67,628		1,038,588
APA Group	Gas Utilities		26,796		181,620
Aristocrat Leisure Ltd.	Hotels, Restaurants & Leisure		14,916		371,628
ASX Ltd.	Capital Markets		4,378		190,649
Atlas Arteria Ltd.	Transportation Infrastructure		32,934		138,742
Aurizon Holdings Ltd.	Ground Transportation		39,842		89,659
Bank of Queensland Ltd.	Banks		14,828		64,453
Beach Energy Ltd.	Oil, Gas & Consumable Fuels		40,260		38,154
Bendigo & Adelaide Bank Ltd.	Banks		12,716		73,838
BHP Group Ltd.	Metals & Mining		113,762		3,598,554
BlueScope Steel Ltd.	Metals & Mining		10,494		141,621
Boral Ltd.	Construction Materials		7,788		18,360
Brambles Ltd.	Commercial Services & Supplies		31,372		282,183
carsales.com Ltd.	Interactive Media & Services		8,109		120,188
Challenger Ltd.	Financial Services		15,180		63,441
Charter Hall Group	Diversified REITs		10,626		78,284
Cleanaway Waste Management Ltd.	Commercial Services & Supplies		50,248		80,096
Cochlear Ltd.	Health Care Equipment & Supplies		1,452		230,176
Coles Group Ltd.	Consumer Staples Distribution & Retail		28,754		347,029
Commonwealth Bank of Australia	Banks		38,192		2,514,937
Computershare Ltd.	IT Services		12,144		175,601
CSL Ltd.	Biotechnology		10,868		2,098,491
CSR Ltd.	Construction Materials		10,824		34,435
Deterra Royalties Ltd.	Metals & Mining		9,658		31,049
Dexus	Diversified REITs		24,332		122,386
Domain Holdings Australia Ltd.	Interactive Media & Services		5,720		13,447
Domino’s Pizza Enterprises Ltd.	Hotels, Restaurants & Leisure		1,430		47,763
Downer EDI Ltd.	Commercial Services & Supplies		15,400		35,378
Endeavour Group Ltd.	Consumer Staples Distribution & Retail		30,910		140,152
Evolution Mining Ltd.	Metals & Mining		38,874		81,232
^aFlight Centre Travel Group Ltd.	Hotels, Restaurants & Leisure		3,432		42,478
Fortescue Metals Group Ltd.	Metals & Mining		35,948		541,473
Goodman Group	Diversified REITs		41,448		521,607
GPT Group	Diversified REITs		43,098		122,387
Harvey Norman Holdings Ltd.	Broadline Retail		13,552		32,494
IDP Education Ltd.	Diversified Consumer Services		4,092		74,846
IGO Ltd.	Metals & Mining		13,948		119,293
Iluka Resources Ltd.	Metals & Mining		9,482		67,443
Incitec Pivot Ltd.	Chemicals		43,758		91,731
Insignia Financial Ltd.	Capital Markets		14,674		26,928
Insurance Australia Group Ltd.	Insurance		55,902		175,595
JB Hi-Fi Ltd.	Specialty Retail		2,464		70,087
Lendlease Corp. Ltd.	Real Estate Management & Development		15,510		75,104
^aLottery Corp. Ltd.	Hotels, Restaurants & Leisure		50,264		172,361
^aLynas Rare Earths Ltd.	Metals & Mining		20,460		86,878
Macquarie Group Ltd.	Capital Markets		7,854		924,010
Magellan Financial Group Ltd.	Capital Markets		3,190		18,545
Medibank Pvt Ltd.	Insurance		61,974		139,464



174	Annual Report	franklintempleton.com

FRANKLIN TEMPLETON ETF TRUST

SCHEDULE OF INVESTMENTS

Franklin FTSE Australia ETF (continued)



	Industry	Shares		Value

Common Stocks (continued)
Australia (continued)
Metcash Ltd.	Consumer Staples Distribution & Retail		21,802	$	56,217
Mineral Resources Ltd.	Metals & Mining		3,762		203,055
Mirvac Group	Diversified REITs		89,496		124,675
National Australia Bank Ltd.	Banks		71,060		1,319,263
New Hope Corp. Ltd.	Oil, Gas & Consumable Fuels		5,368		20,421
Newcrest Mining Ltd.	Metals & Mining		20,152		362,389
^aNEXTDC Ltd.	IT Services		10,230		71,667
Northern Star Resources Ltd.	Metals & Mining		25,454		209,859
Nufarm Ltd.	Chemicals		8,734		33,401
Orica Ltd.	Chemicals		10,252		105,672
Origin Energy Ltd.	Oil, Gas & Consumable Fuels		38,918		216,082
Orora Ltd.	Containers & Packaging		19,206		43,992
OZ Minerals Ltd.	Metals & Mining		7,370		138,753
Perpetual Ltd.	Capital Markets		2,530		37,211
^aPilbara Minerals Ltd.	Metals & Mining		63,118		166,557
Platinum Asset Management Ltd.	Capital Markets		12,012		13,837
Pro Medicus Ltd.	Health Care Technology		946		40,467
^aQantas Airways Ltd.	Airlines		18,062		80,082
QBE Insurance Group Ltd.	Insurance		33,506		327,409
Qube Holdings Ltd.	Transportation Infrastructure		37,488		72,059
Ramsay Health Care Ltd.	Health Care Providers & Services		3,960		176,478
REA Group Ltd.	Media		1,144		105,758
Reece Ltd.	Trading Companies & Distributors		4,796		55,730
Region RE Ltd.	Diversified REITs		25,806		40,616
Rio Tinto Ltd.	Metals & Mining		8,404		676,218
Santos Ltd.	Oil, Gas & Consumable Fuels		68,112		314,764
Scentre Group	Real Estate Investment Trusts (REITs)		117,524		216,457
SEEK Ltd.	Professional Services		7,854		125,824
Seven Group Holdings Ltd.	Trading Companies & Distributors		3,234		50,034
Sonic Healthcare Ltd.	Health Care Providers & Services		10,340		241,275
South32 Ltd.	Metals & Mining		103,774		303,727
^aStar Entertainment Group Ltd.	Hotels, Restaurants & Leisure		31,174		29,857
Steadfast Group Ltd.	Insurance		23,056		90,334
Stockland	Real Estate Investment Trusts (REITs)		54,054		144,087
Suncorp Group Ltd.	Insurance		28,622		232,144
Tabcorp Holdings Ltd.	Hotels, Restaurants & Leisure		51,018		33,998
Telstra Group Ltd.	Diversified Telecommunication Services		92,356		261,030
TPG Telecom Ltd.	Diversified Telecommunication Services		8,426		27,539
Transurban Group	Transportation Infrastructure		69,410		660,585
Treasury Wine Estates Ltd.	Beverages		16,324		142,894
Vicinity Ltd.	Real Estate Investment Trusts (REITs)		85,162		110,937
Washington H Soul Pattinson & Co. Ltd.	Oil, Gas & Consumable Fuels		6,006		121,480
Wesfarmers Ltd.	Broadline Retail		25,586		861,095
Westpac Banking Corp.	Banks		78,760		1,142,555
Whitehaven Coal Ltd.	Oil, Gas & Consumable Fuels		16,808		75,761
WiseTech Global Ltd.	Software		3,586		156,448
Woodside Energy Group Ltd.	Oil, Gas & Consumable Fuels		42,746		954,496
Woolworths Group Ltd.	Consumer Staples Distribution & Retail		27,456		696,930
Worley Ltd.	Energy Equipment & Services		8,448		81,532
Yancoal Australia Ltd.	Oil, Gas & Consumable Fuels		3,762		14,614

					28,145,056


Ireland 0.7%
James Hardie Industries PLC, CDI	Construction Materials		9,988		212,925


New Zealand 0.6%
^aXero Ltd.	Software		2,860		171,283



franklintempleton.com	Annual Report	175

FRANKLIN TEMPLETON ETF TRUST

SCHEDULE OF INVESTMENTS

Franklin FTSE Australia ETF (continued)



	Industry	Shares		Value

Common Stocks (continued)
United Kingdom 1.3%
Amcor PLC, CDI	Containers & Packaging		33,638	$	376,010


United States 0.1%
Sims Ltd.	Metals & Mining		3,630		37,708

Total Investments (Cost $27,816,869) 98.3%					28,942,982
Other Assets, less Liabilities 1.7%					493,954


Net Assets 100.0%				$	29,436,936

^aNon-income producing.

At March 31, 2023, the Fund had the following futures contracts outstanding. See Note 1(c).

Futures Contracts

Description

Type

Number of
Contracts

Notional
Amount*

Expiration
Date

Value/Unrealized
Appreciation
(Depreciation)

Index Contracts

SPI 200 Index

Long

$481,617

6/15/23

$865

*As of year end.

See Note 7 regarding other derivative information.

See Abbreviations on page 355.



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

FRANKLIN TEMPLETON ETF TRUST

Financial Highlights

Franklin FTSE Brazil ETF



	Year Ended March 31,

	2023			2022			2021			2020			2019

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

Net asset value, beginning of year		$23.56			$20.70			$14.46			$25.72			$27.87

Income from investment operations^a:

Net investment income^b		2.06			1.84			0.46			1.07			0.80

Net realized and unrealized gains (losses)		(6.74	)		2.55			6.31			(11.33	)		(2.07	)

Total from investment operations		(4.68	)		4.39			6.77			(10.26	)		(1.27	)

Less distributions from net investment income		(2.07	)		(1.53	)		(0.53	)		(1.00	)		(0.88	)

Net asset value, end of year		$16.81			$23.56			$20.70			$14.46			$25.72

Total return^c		(19.57)%			23.03%			46.83%			(41.69)%			(3.98)%

Ratios to average net assets^d

Total expenses		0.19%			0.19%			0.19%			0.23%			0.19%

Net investment income		10.93%			8.87%			2.43%			4.26%			3.37%

Supplemental data

Net assets, end of year (000’s)		$268,914			$527,820			$107,656			$102,700			$20,579

Portfolio turnover rate^e		52.70%^f			17.71%^f			21.01%^f			36.07%^f			39.76%

^aThe amount shown for a share outstanding throughout the period may not correlate with the Statement of Operations for the period due to the timing of sales and repurchases of Creation Unit Fund shares in relation to income earned and/or fluctuating fair value of the investments of the Fund. ^bBased on average daily shares outstanding. ^cTotal return is not annualized for periods less than one year. Total return is calculated assuming an initial investment made at the net asset value at the beginning of the period, reinvestment of all dividends and distributions at net asset value during the period, and redemption at net asset value on the last day of the period. ^dRatios are annualized for periods less than one year. ^ePortfolio turnover rate includes portfolio transactions that are executed as a result of the Fund offering and redeeming Creation Units solely for cash (“Cash creations”).
^fPortfolio turnover rate excluding cash creations was as follows:		13.82%			14.95%			9.31%			17.47%			—



franklintempleton.com	The accompanying notes are an integral part of these financial statements. \| Annual Report	177

FRANKLIN TEMPLETON ETF TRUST

Schedule of Investments, March 31, 2023

Franklin FTSE Brazil ETF



	Industry	Shares		Value

Common Stocks 74.1%
Brazil 72.8%
Ambev SA	Beverages		3,280,000	$	9,270,233
Atacadao SA	Consumer Staples Distribution & Retail		400,000		977,467
Auren Energia SA	Independent Power Producers & Energy Traders		272,043		787,115
B3 SA - Brasil Bolsa Balcao	Capital Markets		4,560,000		9,308,417
Banco Bradesco SA	Banks		1,136,000		2,655,017
Banco BTG Pactual S.A	Capital Markets		864,000		3,348,474
Banco do Brasil SA	Banks		640,004		4,936,750
Banco Santander Brasil SA	Banks		272,000		1,437,720
BB Seguridade Participacoes SA	Insurance		512,000		3,282,899
Bradespar SA	Metals & Mining		25,130		121,679
^aBRF SA	Food Products		608,000		744,673
Caixa Seguridade Participacoes SA	Insurance		336,000		583,167
CCR SA	Transportation Infrastructure		832,000		2,100,409
Centrais Eletricas Brasileiras SA	Electric Utilities		992,000		6,511,269
Cia de Saneamento Basico do Estado de Sao Paulo SABESP	Water Utilities		256,000		2,555,330
Cia Energetica de Minas Gerais	Electric Utilities		240,000		810,374
Cia Paranaense de Energia	Electric Utilities		240,000		295,370
Cia Siderurgica Nacional SA	Metals & Mining		464,000		1,412,980
Cielo SA	IT Services		864,000		826,468
Cosan SA	Oil, Gas & Consumable Fuels		896,000		2,666,661
CPFL Energia SA	Electric Utilities		144,000		898,891
CSN Mineracao SA	Metals & Mining		400,000		381,835
Dexco SA	Paper & Forest Products		240,260		278,631
Diagnosticos da America SA	Health Care Providers & Services		64,000		94,291
EDP - Energias do Brasil SA	Electric Utilities		192,000		845,970
^aEmbraer SA	Aerospace & Defense		560,000		2,296,218
Energisa SA	Electric Utilities		224,080		1,775,758
^aEneva SA	Independent Power Producers & Energy Traders		912,000		1,883,268
Engie Brasil Energia SA	Independent Power Producers & Energy Traders		128,000		1,014,104
Equatorial Energia SA	Electric Utilities		704,000		3,743,374
^a,bGPS Participacoes e Empreendimentos SA	Commercial Services & Supplies		304,000		725,487
GRUPO DE MODA SOMA SA	Textiles, Apparel & Luxury Goods		336,000		537,441
^aGrupo Mateus SA	Consumer Staples Distribution & Retail		288,000		324,907
^a,bHapvida Participacoes e Investimentos SA	Health Care Providers & Services		3,024,000		1,562,621
Hypera SA	Pharmaceuticals		304,000		2,260,401
Intelbras SA Industria de Telecomunicacao Eletronica Brasileira	Communications Equipment		48,000		216,415
Itau Unibanco Holding SA	Banks		336,000		1,395,623
Klabin SA	Containers & Packaging		576,000		2,055,094
Localiza Rent a Car SA	Ground Transportation		592,033		6,235,306
Lojas Renner SA	Broadline Retail		725,410		2,370,700
M Dias Branco SA	Food Products		96,000		477,515
^aMagazine Luiza SA	Broadline Retail		2,288,000		1,493,670
Marfrig Global Foods SA	Food Products		224,000		293,350
Multiplan Empreendimentos Imobiliarios SA	Real Estate Management & Development		208,000		1,010,822
Natura & Co. Holding SA	Personal Products		720,016		1,874,505
Neoenergia SA	Electric Utilities		176,000		520,684
^aPetro Rio SA	Oil, Gas & Consumable Fuels		506,600		3,116,386
Petroleo Brasileiro SA	Oil, Gas & Consumable Fuels		2,784,000		14,545,271
Petroreconcavo SA	Oil, Gas & Consumable Fuels		144,000		577,392
Porto Seguro SA	Insurance		144,000		667,991
Raia Drogasil SA	Consumer Staples Distribution & Retail		800,043		3,858,005
^bRede D’Or Sao Luiz SA	Health Care Providers & Services		576,002		2,412,955
Rumo SA	Ground Transportation		944,000		3,509,571
Sao Martinho SA	Food Products		128,000		682,128
Sendas Distribuidora SA	Consumer Staples Distribution & Retail		896,000		2,746,184



178	Annual Report	franklintempleton.com

FRANKLIN TEMPLETON ETF TRUST

SCHEDULE OF INVESTMENTS

Franklin FTSE Brazil ETF (continued)



	Industry	Shares		Value

Common Stocks (continued)
Brazil (continued)
SLC Agricola SA	Food Products		71,400	$	642,005
^aSmartfit Escola de Ginastica e Danca SA	Hotels, Restaurants & Leisure		80,000		210,483
Suzano SA	Paper & Forest Products		528,000		4,332,094
Telefonica Brasil SA	Diversified Telecommunication Services		330,000		2,516,207
TIM SA	Wireless Telecommunication Services		608,000		1,508,533
TOTVS SA	Software		336,000		1,866,133
Transmissora Alianca de Energia Eletrica SA	Electric Utilities		165,000		1,133,465
Ultrapar Participacoes SA	Oil, Gas & Consumable Fuels		624,000		1,718,069
Usinas Siderurgicas de Minas Gerais SA	Metals & Mining		128,000		201,205
Vale SA	Metals & Mining		2,921,613		46,265,235
Vamos Locacao de Caminhoes Maquinas e Equipamentos SA	Ground Transportation		240,000		631,922
Vibra Energia SA	Specialty Retail		848,000		2,410,074
WEG SA	Machinery		1,120,000		8,957,349

					195,708,010

United States 1.3%
JBS SA	Food Products		1,008,000		3,548,701


Total Common Stocks (Cost $196,308,625)					199,256,711


Preferred Stocks 25.0%
Brazil 25.0%
^a,cAlpargatas SA, pfd.	Textiles, Apparel & Luxury Goods		176,000		282,905
^cBanco Bradesco SA, 6.492%, pfd.	Banks		3,904,000		10,140,660
^cBradespar SA, 11.708%, pfd.	Metals & Mining		192,084		1,016,063
^cBraskem SA, Class A, 8.76%, pfd.	Chemicals		144,000		549,843
^cCentrais Eletricas Brasileiras SA, Class B, 4.449%,pfd.	Electric Utilities		208,000		1,488,337
^cCia Energetica de Minas Gerais, 11.32%, pfd.	Electric Utilities		944,000		2,129,946
^cCia Paranaense de Energia, 11.974%, pfd.	Electric Utilities		992,000		1,357,819
^cCTEEP-Cia de Transmissao de Energia Eletrica Paulista, 4.167%, pfd.	Electric Utilities		144,000		615,449
^cGerdau SA, 13.863%, pfd.	Metals & Mining		806,400		4,022,258
^cItau Unibanco Holding SA, 4.349%, pfd.	Banks		3,632,000		17,722,140
^cItausa SA, 4.745%, pfd.	Banks		3,920,010		6,355,206
^cMetalurgica Gerdau SA, 10.025%, pfd.	Metals & Mining		496,000		1,157,276
^cPetroleo Brasileiro SA, 43.945%, pfd.	Oil, Gas & Consumable Fuels		4,208,000		19,462,078
^cUnipar Carbocloro SA, Class B, 19.565%, pfd.	Chemicals		35,540		491,017
^cUsinas Siderurgicas de Minas Gerais SA, Class A, 8.628%, pfd.	Metals & Mining		352,000		506,105


Total Preferred Stocks (Cost $71,725,707)					67,297,102



franklintempleton.com	Annual Report	179

FRANKLIN TEMPLETON ETF TRUST

SCHEDULE OF INVESTMENTS

Franklin FTSE Brazil ETF (continued)



	Industry	Shares		Value

Right 0.0%^†
Brazil 0.0%^†
^aLocaliza Rent a Car SA	Ground Transportation		2,648	$	6,857

Total Rights (Cost $0)					6,857

Total Investments (Cost $268,034,332) 99.1%					266,560,670
Other Assets, less Liabilities 0.9%					2,353,106

Net Assets 100.0%				$	268,913,776

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

^aNon-income producing.

At March 31, 2023, the Fund had the following futures contracts outstanding. See Note 1(c).

Futures Contracts

Description

Type

Number of
Contracts

Notional
Amount*

Expiration
Date

Value/Unrealized
Appreciation
(Depreciation)

Equity Contracts

Bovespa Index

Long

115

2,316,399

4/12/23

$(100,113)

*As of year end.

See Note 7 regarding other derivative information.

See Abbreviations on page 355.



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

FRANKLIN TEMPLETON ETF TRUST

Financial Highlights

Franklin FTSE Canada ETF



	Year Ended March 31,

	2023			2022			2021			2020			2019

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

Net asset value, beginning of year		$36.07			$30.20			$19.50			$24.13			$23.77


Income from investment operations^a:

Net investment income^b		0.92			0.80			0.75			0.69			0.67

Net realized and unrealized gains (losses)		(5.58	)		5.77			10.63			(4.72	)		0.33


Total from investment operations		(4.66	)		6.57			11.38			(4.03	)		1.00


Less distributions from net investment income		(0.65	)		(0.70	)		(0.68	)		(0.60	)		(0.64	)


Net asset value, end of year		$30.76			$36.07			$30.20			$19.50			$24.13


Total return^c		(12.82)%			21.95%			59.10%			(17.25)%			4.48%

Ratios to average net assets^d

Total expenses		0.09%			0.09%			0.09%			0.09%			0.09%

Net investment income		3.00%			2.37%			2.88%			2.73%			2.79%

Supplemental data

Net assets, end of year (000’s)		$279,927			$43,289			$24,160			$4,876			$4,827

Portfolio turnover rate^e		5.27%^f			5.63%^f			3.14%^f			4.57%^f			6.95%
^aThe amount shown for a share outstanding throughout the period may not correlate with the Statement of Operations for the period due to the timing of sales and repurchases of Creation Unit Fund shares in relation to income earned and/or fluctuating fair value of the investments of the Fund. ^bBased on average daily shares outstanding. ^cTotal return is not annualized for periods less than one year. Total return is calculated assuming an initial investment made at the net asset value at the beginning of the period, reinvestment of all dividends and distributions at net asset value during the period, and redemption at net asset value on the last day of the period. ^dRatios are annualized for periods less than one year. ^ePortfolio turnover rate includes portfolio transactions that are executed as a result of the Fund offering and redeeming Creation Units solely for cash (“Cash creations”).
^fPortfolio turnover rate excluding cash creations was as follows:		5.27%			5.63%			3.14%			4.57%			—



franklintempleton.com	The accompanying notes are an integral part of these financial statements. \| Annual Report	181

FRANKLIN TEMPLETON ETF TRUST

Schedule of Investments, March 31, 2023

Franklin FTSE Canada ETF



	Industry	Shares		Value

Common Stocks 99.7%
Canada 97.4%
Agnico Eagle Mines Ltd.	Metals & Mining		81,718	$	4,160,321
Alimentation Couche-Tard, Inc.	Consumer Staples Distribution & Retail		136,864		6,871,769
Bank of Montreal	Banks		118,664		10,555,121
Bank of Nova Scotia	Banks		213,850		10,756,101
Barrick Gold Corp.	Metals & Mining		314,678		5,833,872
BCE, Inc.	Diversified Telecommunication Services		54,418		2,434,304
^aBrookfield Asset Management Ltd., Class A	Capital Markets		48,594		1,589,579
Brookfield Corp.	Capital Markets		239,512		7,792,303
Canadian Imperial Bank of Commerce, Class A	Banks		158,340		6,705,187
Canadian National Railway Co.	Ground Transportation		106,652		12,567,181
Canadian Natural Resources Ltd.	Oil, Gas & Consumable Fuels		194,922		10,771,948
Canadian Pacific Railway Ltd.	Ground Transportation		166,712		12,819,831
Canadian Tire Corp. Ltd., Class A	Broadline Retail		9,464		1,233,359
Canadian Utilities Ltd., Class A	Multi-Utilities		22,204		617,876
Cenovus Energy, Inc.	Oil, Gas & Consumable Fuels		249,158		4,341,187
^aCGI, Inc., Class A	IT Services		37,856		3,643,362
Constellation Software, Inc.	Software		3,424		6,428,548
Dollarama, Inc.	Broadline Retail		48,776		2,911,026
Enbridge, Inc.	Oil, Gas & Consumable Fuels		363,272		13,831,903
Fairfax Financial Holdings Ltd.	Insurance		3,795		2,520,457
Fortis, Inc.	Electric Utilities		85,540		3,631,192
Franco-Nevada Corp.	Metals & Mining		34,216		4,983,929
George Weston Ltd.	Consumer Staples Distribution & Retail		12,376		1,637,819
Great-West Lifeco, Inc.	Insurance		48,594		1,286,169
^bHydro One Ltd.	Electric Utilities		56,602		1,609,373
IGM Financial, Inc.	Capital Markets		14,560		434,535
Imperial Oil Ltd.	Oil, Gas & Consumable Fuels		31,850		1,617,505
Intact Financial Corp.	Insurance		31,668		4,525,972
Loblaw Cos. Ltd.	Consumer Staples Distribution & Retail		27,482		2,501,170
Magna International, Inc.	Automobile Components		47,684		2,550,593
Manulife Financial Corp.	Insurance		334,698		6,133,307
Metro, Inc., Class A	Consumer Staples Distribution & Retail		42,406		2,329,377
National Bank of Canada	Banks		60,242		4,303,095
Nutrien Ltd.	Chemicals		93,366		6,885,773
Pembina Pipeline Corp.	Oil, Gas & Consumable Fuels		98,462		3,185,182
Power Corp. of Canada	Insurance		96,460		2,461,838
Restaurant Brands International, Inc.	Hotels, Restaurants & Leisure		54,236		3,636,038
Royal Bank of Canada	Banks		251,706		24,038,867
Saputo, Inc.	Food Products		43,316		1,119,267
Shaw Communications, Inc., Class B	Media		76,986		2,300,450
^aShopify, Inc., Class A	IT Services		204,022		9,768,815
Sun Life Financial, Inc.	Insurance		105,196		4,907,877
Suncor Energy, Inc.	Oil, Gas & Consumable Fuels		242,242		7,510,603
TC Energy Corp.	Oil, Gas & Consumable Fuels		181,090		7,034,323
Teck Resources Ltd., Class B	Metals & Mining		79,898		2,913,486
TELUS Corp.	Diversified Telecommunication Services		85,540		1,695,820
Thomson Reuters Corp.	Professional Services		29,120		3,783,545
Toronto-Dominion Bank	Banks		326,326		19,519,038
Tourmaline Oil Corp.	Oil, Gas & Consumable Fuels		51,324		2,135,861
Wheaton Precious Metals Corp.	Metals & Mining		80,990		3,895,252


					272,721,306



182	Annual Report	franklintempleton.com

FRANKLIN TEMPLETON ETF TRUST

SCHEDULE OF INVESTMENTS

Franklin FTSE Canada ETF (continued)



	Industry	Shares		Value

Common Stocks (continued)
United States 2.3%
Waste Connections, Inc.	Commercial Services & Supplies		46,046	$	6,399,861


Total Investments (Cost $298,943,761) 99.7%					279,121,167
Other Assets, less Liabilities 0.3%					805,881


Net Assets 100.0%				$	279,927,048

^aNon-income producing.

At March 31, 2023, the Fund had the following futures contracts outstanding. See Note 1(c).

Futures Contracts

Description

Type

Number of
Contracts

Notional
Amount*

Expiration
Date

Value/Unrealized
Appreciation
(Depreciation)

Index Contracts

S&P/TSX 60 Index

Long

$893,487

6/15/23

$13,181

*As of year end.

See Note 7 regarding other derivative information.

See Abbreviations on page 355.



franklintempleton.com	The accompanying notes are an integral part of these financial statements. \| Annual Report	183

FRANKLIN TEMPLETON ETF TRUST

Financial Highlights

Franklin FTSE China ETF



	Year Ended March 31,

	2023			2022			2021			2020			2019

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

Net asset value, beginning of year		$21.43			$31.78			$22.19			$24.01			$25.99


Income from investment operations^a:

Net investment income^b		0.54			0.49			0.32			0.45			0.40

Net realized and unrealized gains (losses)		(1.77	)		(10.47	)		9.56			(1.78	)		(1.99	)


Total from investment operations		(1.23	)		(9.98	)		9.88			(1.33	)		(1.59	)


Less distributions from net investment income		(0.50	)		(0.37	)		(0.29	)		(0.49	)		(0.39	)


Net asset value, end of year		$19.70			$21.43			$31.78			$22.19			$24.01


Total return^c		(5.68)%			(31.63)%			44.67%			(5.64)%			(5.94)%

Ratios to average net assets^d

Expenses before waiver and payments by affiliates		0.19%			0.19%			0.19%			0.19%			0.19%

Expenses net of waiver and payments by affiliates		0.19%			0.19%			0.19%			0.19%			—%

Net investment income		2.82%			1.80%			1.06%			1.94%			1.70%

Supplemental data

Net assets, end of year (000’s)		$114,234			$111,454			$120,782			$48,807			$43,220

Portfolio turnover rate^e		9.69%^f			12.78%^f			15.97%^f			32.47%^f			7.21%
^aThe amount shown for a share outstanding throughout the period may not correlate with the Statement of Operations for the period due to the timing of sales and repurchases of Creation Unit Fund shares in relation to income earned and/or fluctuating fair value of the investments of the Fund. ^bBased on average daily shares outstanding. ^cTotal return is not annualized for periods less than one year. Total return is calculated assuming an initial investment made at the net asset value at the beginning of the period, reinvestment of all dividends and distributions at net asset value during the period, and redemption at net asset value on the last day of the period. ^dRatios are annualized for periods less than one year. ^ePortfolio turnover rate includes portfolio transactions that are executed as a result of the Fund offering and redeeming Creation Units solely for cash (“Cash creations”).
^fPortfolio turnover rate excluding cash creations was as follows:		9.69%			12.00%			15.31%			32.47%			—



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

FRANKLIN TEMPLETON ETF TRUST

Schedule of Investments, March 31, 2023

Franklin FTSE China ETF



	Industry	Shares		Value

Common Stocks 100.0%
China 96.3%
360 DigiTech, Inc., ADR	Consumer Finance		5,742	$	111,395
360 Security Technology, Inc., Class A	Software		26,100		66,321
37 Interactive Entertainment Network Technology Group Co. Ltd., Class A	Entertainment		5,800		24,028
3peak, Inc., Class A	Semiconductors & Semiconductor Equipment		321		11,382
^a3SBio, Inc., Class A	Biotechnology		72,500		72,223
Addsino Co. Ltd., Class A	Communications Equipment		5,800		9,502
^bAdvanced Micro-Fabrication Equipment, Inc. China, Class A	Semiconductors & Semiconductor Equipment		2,349		50,457
AECC Aero-Engine Control Co. Ltd., Class A	Aerospace & Defense		5,800		20,574
AECC Aviation Power Co. Ltd., Class A	Aerospace & Defense		8,700		54,666
^bAgile Group Holdings Ltd.	Real Estate Management & Development		78,000		17,389
Agricultural Bank of China Ltd., Class A	Banks		339,300		153,659
Agricultural Bank of China Ltd., Class H	Banks		1,566,000		580,521
Aier Eye Hospital Group Co. Ltd., Class A	Health Care Providers & Services		26,141		118,271
^bAir China Ltd., Class A	Airlines		31,900		49,704
^bAir China Ltd., Class H	Airlines		82,000		73,330
^a,bAkeso, Inc.	Biotechnology		25,000		128,663
^bAlibaba Group Holding Ltd., Class A	Internet & Direct Marketing Retail		750,678		9,601,089
^aA-Living Smart City Services Co. Ltd., Class H	Commercial Services & Supplies		43,500		37,737
Aluminum Corp. of China Ltd., Class A	Metals & Mining		49,300		39,628
Aluminum Corp. of China Ltd., Class H	Metals & Mining		174,000		88,220
^bAmlogic Shanghai Co. Ltd., Class A	Semiconductors & Semiconductor Equipment		1,456		17,835
Angang Steel Co. Ltd., Class A	Metals & Mining		23,200		10,034
Angang Steel Co. Ltd., Class H	Metals & Mining		76,000		24,301
Angel Yeast Co. Ltd., Class A	Food Products		2,900		17,631
^aAngelalign Technology, Inc.	Health Care Equipment & Supplies		2,400		35,679
Anhui Anke Biotechnology Group Co. Ltd., Class A	Pharmaceuticals		6,916		11,128
Anhui Conch Cement Co. Ltd., Class A	Construction Materials		14,500		59,649
Anhui Conch Cement Co. Ltd., Class H	Construction Materials		61,210		212,092
Anhui Expressway Co. Ltd., Class H	Transportation Infrastructure		18,000		18,138
Anhui Gujing Distillery Co. Ltd., Class A	Beverages		1,500		64,654
Anhui Gujing Distillery Co. Ltd., Class B	Beverages		6,300		112,438
Anhui Zhongding Sealing Parts Co. Ltd., Class A	Automobile Components		5,800		10,735
Anjoy Foods Group Co. Ltd., Class A	Food Products		1,100		26,210
ANTA Sports Products Ltd., Class A	Textiles, Apparel & Luxury Goods		59,050		857,547
Apeloa Pharmaceutical Co. Ltd., Class A	Pharmaceuticals		2,900		8,995
Asymchem Laboratories Tianjin Co. Ltd., Class A	Pharmaceuticals		700		13,591
Autohome, Inc., ADR	Software		3,074		102,887
Avary Holding Shenzhen Co. Ltd., Class A	Electronic Equipment, Instruments & Components		2,900		13,099
^b,cAVIC Electromechanical Systems Co. Ltd., Class A	Aerospace & Defense		500		—
AVIC Industry-Finance Holdings Co. Ltd., Class A	Financial Services		31,900		19,045
AviChina Industry & Technology Co. Ltd., Class H	Aerospace & Defense		116,000		60,882
AVICOPTER PLC, Class A	Aerospace & Defense		2,900		17,867
^aBAIC Motor Corp. Ltd., Class H	Automobiles		116,000		32,214
^bBaidu, Inc., Class A	Interactive Media & Services		114,588		2,170,617
Bank of Beijing Co. Ltd., Class A	Banks		72,500		46,452
Bank of Changsha Co. Ltd., Class A	Banks		14,500		16,702
Bank of Chengdu Co. Ltd., Class A	Banks		5,800		11,453
Bank of China Ltd., Class A	Banks		165,300		81,359
Bank of China Ltd., Class H	Banks		3,857,000		1,478,936



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SCHEDULE OF INVESTMENTS

Franklin FTSE China ETF (continued)



	Industry	Shares		Value

Common Stocks (continued)
China (continued)
Bank of Communications Co. Ltd., Class A	Banks		136,300	$	101,422
Bank of Communications Co. Ltd., Class H	Banks		377,000		237,247
Bank of Guiyang Co. Ltd., Class A	Banks		14,500		11,634
Bank of Hangzhou Co. Ltd., Class A	Banks		20,300		34,320
Bank of Jiangsu Co. Ltd., Class A	Banks		21,100		21,569
Bank of Nanjing Co. Ltd., Class A	Banks		37,700		49,188
Bank of Ningbo Co. Ltd., Class A	Banks		23,220		92,342
Bank of Qingdao Co. Ltd., Class A	Banks		17,400		8,311
Bank of Shanghai Co. Ltd., Class A	Banks		49,300		43,002
Bank of Suzhou Co. Ltd., Class A, A	Banks		6,320		6,405
^bBank of Zhengzhou Co. Ltd., Class A	Banks		21,980		7,266
Baoshan Iron & Steel Co. Ltd., Class A	Metals & Mining		66,700		60,607
BBMG Corp., Class A	Construction Materials		37,700		13,450
BBMG Corp., Class H	Construction Materials		116,000		15,073
^bBeiGene Ltd.	Biotechnology		31,900		525,845
Beijing Capital Development Co. Ltd., Class A	Real Estate Management & Development		8,700		5,777
Beijing Capital Eco-Environment Protection Group Co. Ltd., Class A	Water Utilities		29,000		12,542
^bBeijing Capital International Airport Co. Ltd., Class H	Transportation Infrastructure		116,000		85,412
^bBeijing Dabeinong Technology Group Co. Ltd., Class A	Food Products		14,500		16,490
Beijing Easpring Material Technology Co. Ltd., Class A	Chemicals		2,900		24,290
^bBeijing E-Hualu Information Technology Co. Ltd., Class A	Software		2,900		15,975
Beijing Enlight Media Co. Ltd., Class A	Entertainment		11,600		15,017
Beijing Enterprises Holdings Ltd., Class H	Industrial Conglomerates		29,000		104,364
Beijing Haixin Energy Technology Co. Ltd., Class A	Chemicals		9,900		5,766
^bBeijing Jetsen Technology Co. Ltd., Class A, A	Software		8,700		8,501
Beijing Jingneng Clean Energy Co. Ltd., Class H	Independent Power Producers & Energy Traders		58,000		13,817
Beijing Kingsoft Office Software, Inc., Class A	Software		1,682		115,851
Beijing New Building Materials PLC, Class A	Building Products		5,800		22,669
^bBeijing Orient National Communication Science & Technology Co. Ltd., Class A	Software		5,800		12,728
Beijing Originwater Technology Co. Ltd., Class A	Commercial Services & Supplies		14,535		10,689
Beijing Shiji Information Technology Co. Ltd., Class A	Software		6,480		24,213
Beijing Shougang Co. Ltd., Class A	Metals & Mining		29,000		16,089
Beijing Shunxin Agriculture Co. Ltd., Class A	Beverages		2,900		14,991
Beijing Sinnet Technology Co. Ltd., Class A	IT Services		6,000		11,716
Beijing Tongrentang Co. Ltd., Class A	Pharmaceuticals		5,800		46,570
Beijing Ultrapower Software Co. Ltd., Class A	IT Services		8,700		11,934
Beijing United Information Technology Co. Ltd., Class A, A	Trading Companies & Distributors		1,740		21,017
Beijing Wantai Biological Pharmacy Enterprise Co. Ltd., Class A	Biotechnology		1,015		17,167
Beijing Yanjing Brewery Co. Ltd., Class A	Beverages		11,600		23,665
Beijing Yuanliu Hongyuan Electronic Technology Co. Ltd., Class A, A	Electronic Equipment, Instruments & Components		800		8,965
Beijing Zhong Ke San Huan High-Tech Co. Ltd., Class A	Electronic Equipment, Instruments & Components		3,260		6,219
Bethel Automotive Safety Systems Co. Ltd., Class A	Automobile Components		1,600		16,593
^bBilibili, Inc., Class Z	Entertainment		12,180		294,184
Bloomage Biotechnology Corp. Ltd., Class A, A	Biotechnology		1,118		18,462



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SCHEDULE OF INVESTMENTS

Franklin FTSE China ETF (continued)



	Industry	Shares		Value

Common Stocks (continued)
China (continued)
^aBlue Moon Group Holdings Ltd.	Household Products		43,500	$	27,763
Bluefocus Intelligent Communications Group Co. Ltd., Class A	Media		11,600		16,148
Bluestar Adisseo Co., Class A	Chemicals		2,900		3,725
BOC International China Co. Ltd., Class A	Capital Markets		2,900		4,535
BOE Technology Group Co. Ltd., Class A	Electronic Equipment, Instruments & Components		139,200		89,999
BOE Technology Group Co. Ltd., Class B	Electronic Equipment, Instruments & Components		34,800		15,693
Bright Dairy & Food Co. Ltd., Class A	Food Products		5,800		9,029
BTG Hotels Group Co. Ltd., Class A	Hotels, Restaurants & Leisure		2,900		9,856
BYD Co. Ltd., Class A	Automobiles		6,800		253,511
BYD Co. Ltd., Class H	Automobiles		49,236		1,441,338
BYD Electronic International Co. Ltd.	Communications Equipment		39,500		122,778
By-health Co. Ltd., Class A	Personal Products		5,800		18,032
C&D International Investment Group Ltd.	Real Estate Management & Development		37,000		121,370
C&S Paper Co. Ltd., Class A	Household Products		5,800		10,219
Caida Securities Co. Ltd., Class A	Capital Markets		5,800		6,689
Caitong Securities Co. Ltd., Class A	Capital Markets		17,460		19,094
Camel Group Co. Ltd., Class A	Electrical Equipment		5,800		8,319
Canmax Technologies Co. Ltd., Class A, A	Chemicals		2,900		21,617
CanSino Biologics, Inc., Class A	Pharmaceuticals		240		3,973
^aCanSino Biologics, Inc., Class H	Pharmaceuticals		4,900		26,217
CECEP Solar Energy Co. Ltd., Class A	Semiconductors & Semiconductor Equipment		14,500		14,463
CECEP Wind-Power Corp., Class A	Independent Power Producers & Energy Traders		26,380		14,866
Central China Securities Co. Ltd., Class A	Capital Markets		11,600		6,284
Central China Securities Co. Ltd., Class H	Capital Markets		58,000		8,571
CETC Cyberspace Security Technology Co. Ltd., Class A	Electronic Equipment, Instruments & Components		2,900		16,448
CGN Power Co. Ltd., Class A	Independent Power Producers & Energy Traders		31,900		13,332
^aCGN Power Co. Ltd., Class H	Independent Power Producers & Energy Traders		551,000		131,960
Changchun High & New Technology Industry Group, Inc., Class A	Pharmaceuticals		1,500		35,669
Changjiang Securities Co. Ltd., Class A	Capital Markets		23,200		18,817
Changzhou Xingyu Automotive Lighting Systems Co. Ltd., Class A	Automobile Components		1,000		17,460
Chaozhou Three-Circle Group Co. Ltd., Class A	Electronic Equipment, Instruments & Components		5,800		25,422
Chengdu Xingrong Environment Co. Ltd., Class A	Water Utilities		11,600		8,615
Chengxin Lithium Group Co. Ltd., Class A, A	Paper & Forest Products		2,900		14,582
China Baoan Group Co. Ltd., Class A	Industrial Conglomerates		8,700		14,404
^aChina Bohai Bank Co. Ltd., Class H	Banks		159,500		27,227
China Cinda Asset Management Co. Ltd., Class H	Capital Markets		464,000		58,518
China CITIC Bank Corp. Ltd., Class A	Banks		37,700		29,810
China CITIC Bank Corp. Ltd., Class H	Banks		464,000		233,479
China Coal Energy Co. Ltd., Class A	Oil, Gas & Consumable Fuels		17,400		20,017
China Coal Energy Co. Ltd., Class H	Oil, Gas & Consumable Fuels		116,000		87,924
China Communications Services Corp. Ltd., Class H	Diversified Telecommunication Services		126,000		61,957
China Conch Venture Holdings Ltd.	Construction & Engineering		77,280		134,872
China Construction Bank Corp., Class A	Banks		31,900		27,592
China Construction Bank Corp., Class H	Banks		4,756,000		3,083,846
China CSSC Holdings Ltd., Class A	Machinery		17,400		59,290
^aChina East Education Holdings Ltd., Class A	Diversified Consumer Services		14,500		8,571
^bChina Eastern Airlines Corp. Ltd., Class A	Airlines		49,300		36,972
^bChina Eastern Airlines Corp. Ltd., Class H	Airlines		58,000		22,905
China Energy Engineering Corp. Ltd.	Construction & Engineering		124,700		43,762
China Energy Engineering Corp. Ltd., Class H	Construction & Engineering		232,000		28,963



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SCHEDULE OF INVESTMENTS

Franklin FTSE China ETF (continued)



	Industry	Shares		Value

Common Stocks (continued)
China (continued)
China Everbright Bank Co. Ltd., Class A	Banks		168,200	$	73,724
China Everbright Bank Co. Ltd., Class H	Banks		145,000		43,962
^bChina Evergrande Group, Class A	Real Estate Management & Development		182,000		17,798
^aChina Feihe Ltd.	Food Products		203,000		152,316
China Galaxy Securities Co. Ltd., Class A	Capital Markets		8,700		12,732
China Galaxy Securities Co. Ltd., Class H	Capital Markets		188,500		94,851
China Great Wall Securities Co. Ltd., Class A	Capital Markets		8,700		10,502
China Greatwall Technology Group Co. Ltd., Class A	Technology Hardware, Storage & Peripherals		11,600		20,912
China Green Electricity Investment of Tianjin Co. Ltd., Class A, A	Real Estate Management & Development		5,800		9,687
China Hongqiao Group Ltd.	Metals & Mining		116,000		111,124
^a,bChina Huarong Asset Management Co. Ltd., Class H	Capital Markets		783,000		44,387
China International Capital Corp. Ltd., Class A	Capital Markets		2,900		16,419
^aChina International Capital Corp. Ltd., Class H	Capital Markets		81,200		162,815
China International Marine Containers Group Co. Ltd., Class A	Machinery		9,150		10,140
China International Marine Containers Group Co. Ltd., Class H	Machinery		29,000		19,949
China Jinmao Holdings Group Ltd., Class A	Real Estate Management & Development		348,000		67,827
China Jushi Co. Ltd., Class A	Construction Materials		15,787		33,586
China Lesso Group Holdings Ltd.	Building Products		58,000		51,868
China Life Insurance Co. Ltd., Class H	Insurance		377,000		619,533
^a,bChina Literature Ltd., Class A	Media		17,400		89,771
China Longyuan Power Group Corp. Ltd., Class H	Independent Power Producers & Energy Traders		174,000		198,827
China Medical System Holdings Ltd.	Pharmaceuticals		65,000		102,676
China Meheco Co. Ltd., Class A	Trading Companies & Distributors		5,840		11,668
China Meidong Auto Holdings Ltd.	Specialty Retail		22,000		47,475
China Merchants Bank Co. Ltd., Class A	Banks		75,400		376,270
China Merchants Bank Co. Ltd., Class H	Banks		196,000		1,001,229
China Merchants Energy Shipping Co. Ltd., Class A	Oil, Gas & Consumable Fuels		29,000		29,603
China Merchants Expressway Network & Technology Holdings Co. Ltd., Class A	Transportation Infrastructure		5,800		7,154
China Merchants Port Holdings Co. Ltd.	Transportation Infrastructure		77,300		118,560
China Merchants Property Operation & Service Co. Ltd., Class A	Real Estate Management & Development		2,900		6,453
China Merchants Securities Co. Ltd., Class A	Capital Markets		26,100		52,411
^aChina Merchants Securities Co. Ltd., Class H	Capital Markets		23,200		22,225
China Merchants Shekou Industrial Zone Holdings Co. Ltd., Class A	Real Estate Management & Development		26,100		51,764
China Minsheng Banking Corp. Ltd., Class A	Banks		121,800		61,190
China Minsheng Banking Corp. Ltd., Class H	Banks		319,000		109,314
China National Accord Medicines Corp. Ltd., Class B	Health Care Providers & Services		2,900		6,384
China National Building Material Co. Ltd., Class H	Construction Materials		232,000		190,330
China National Chemical Engineering Co. Ltd., Class A	Construction & Engineering		23,200		31,351
China National Nuclear Power Co. Ltd., Class A	Independent Power Producers & Energy Traders		58,000		53,969
China National Software & Service Co. Ltd., Class A	Software		2,900		29,066
China Northern Rare Earth Group High-Tech Co. Ltd., Class A	Metals & Mining		14,500		55,088
China Oilfield Services Ltd., Class A	Energy Equipment & Services		5,800		12,314



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Franklin FTSE China ETF (continued)



	Industry	Shares		Value

Common Stocks (continued)
China (continued)
China Oilfield Services Ltd., Class H	Energy Equipment & Services		92,000	$	94,345
China Overseas Land & Investment Ltd., Class A	Real Estate Management & Development		188,500		455,284
China Pacific Insurance Group Co. Ltd., Class A	Insurance		23,200		87,566
China Pacific Insurance Group Co. Ltd., Class H	Insurance		133,400		354,319
China Petroleum & Chemical Corp., Class A	Oil, Gas & Consumable Fuels		121,800		99,678
China Petroleum & Chemical Corp., Class H	Oil, Gas & Consumable Fuels		1,276,000		754,226
China Railway Group Ltd., Class A	Construction & Engineering		72,500		72,634
China Railway Group Ltd., Class H	Construction & Engineering		203,000		123,870
China Railway Signal & Communication Corp. Ltd., Class A	Electronic Equipment, Instruments & Components		25,114		19,821
^aChina Railway Signal & Communication Corp. Ltd., Class H	Electronic Equipment, Instruments & Components		87,000		32,029
^bChina Rare Earth Resources & Technology Co. Ltd., Class A, A	Metals & Mining		2,900		14,261
China Reinsurance Group Corp., Class H	Insurance		348,000		24,382
China Resources Boya Bio-pharmaceutical Group Co. Ltd., Class A, A	Biotechnology		2,900		14,751
China Resources Cement Holdings Ltd.	Construction Materials		116,000		56,892
China Resources Double Crane Pharmaceutical Co. Ltd., Class A	Pharmaceuticals		2,900		7,280
China Resources Microelectronics Ltd., Class A, A	Semiconductors & Semiconductor Equipment		3,432		30,215
^aChina Resources Mixc Lifestyle Services Ltd.	Real Estate Management & Development		29,000		152,389
^aChina Resources Pharmaceutical Group Ltd., Class A	Pharmaceuticals		87,000		68,935
China Resources Power Holdings Co. Ltd.	Independent Power Producers & Energy Traders		96,100		204,688
China Resources Sanjiu Medical & Pharmaceutical Co. Ltd., Class A	Pharmaceuticals		2,900		24,261
^bChina Ruyi Holdings Ltd.	Entertainment		232,000		60,586
China Shenhua Energy Co. Ltd., Class A	Oil, Gas & Consumable Fuels		26,100		107,063
China Shenhua Energy Co. Ltd., Class H	Oil, Gas & Consumable Fuels		172,350		542,302
China South Publishing & Media Group Co. Ltd., Class A	Media		5,800		9,831
^bChina Southern Airlines Co. Ltd., Class A	Airlines		43,500		49,851
^bChina Southern Airlines Co. Ltd., Class H	Airlines		78,000		55,644
China Southern Power Grid Energy Efficiency&Clean Energy Co. Ltd., Class A, A	.Commercial Services & Supplies		11,600		13,108
China State Construction Engineering Corp. Ltd., Class A	Construction & Engineering		150,800		127,363
China Suntien Green Energy Corp. Ltd., Class H	Oil, Gas & Consumable Fuels		87,000		38,014
China Taiping Insurance Holdings Co. Ltd.	Insurance		75,400		80,107
China Three Gorges Renewables Group Co. Ltd., Class A, A	Independent Power Producers & Energy Traders		89,900		71,739
ChinaTourism Group Duty Free Corp. Ltd.,Class A	Hotels, Restaurants & Leisure		7,100		189,449
^a,bChinaTourism Group Duty Free Corp. Ltd.,Class H	Specialty Retail		3,700		91,487
^aChina Tower Corp. Ltd., Class H	Diversified Telecommunication Services		2,378,000		287,785
^bChina TransInfo Technology Co. Ltd., Class A	IT Services		2,900		5,680
China United Network Communications Ltd., Class A	Wireless Telecommunication Services		98,600		77,820
China Vanke Co. Ltd., Class A	Real Estate Management & Development		34,800		77,229
China Vanke Co. Ltd., Class H	Real Estate Management & Development		113,100		178,368
China World Trade Center Co. Ltd., Class A, A	Real Estate Management & Development		2,900		7,196
China Yangtze Power Co. Ltd., Class A	Independent Power Producers & Energy Traders		81,200		251,263



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Franklin FTSE China ETF (continued)



	Industry	Shares		Value

Common Stocks (continued)
China (continued)
China Zhenhua Group Science & Technology Co. Ltd., Class A, A	Electronic Equipment, Instruments & Components		1,800	$	23,606
^bChina Zheshang Bank Co. Ltd., Class A	Banks		29,000		12,078
Chinalin Securities Co. Ltd., Class A, A	Capital Markets		2,900		6,195
Chinese Universe Publishing & Media Group Co. Ltd., Class A	Media		5,800		10,473
Chongqing Brewery Co. Ltd., Class A	Beverages		1,700		30,944
Chongqing Changan Automobile Co. Ltd., Class A	Automobiles		30,144		52,323
Chongqing Changan Automobile Co. Ltd., Class B	Automobiles		81,772		35,938
Chongqing Fuling Zhacai Group Co. Ltd., Class A	Food Products		2,900		10,697
Chongqing Rural Commercial Bank Co. Ltd., Class A	Banks		17,400		9,299
Chongqing Rural Commercial Bank Co. Ltd., Class H	Banks		116,000		42,263
Chongqing Water Group Co. Ltd., Class A	Water Utilities		8,700		6,803
Chongqing Zhifei Biological Products Co. Ltd., Class A	Biotechnology		5,800		69,197
^cCIFI Holdings Group Co. Ltd., Class A	Real Estate Management & Development		266,320		25,784
CITIC Ltd., Class B	Industrial Conglomerates		261,000		305,222
Citic Pacific Special Steel Group Co. Ltd., Class A	Metals & Mining		18,280		47,328
CITIC Securities Co. Ltd., Class A	Capital Markets		43,500		129,728
CITIC Securities Co. Ltd., Class H	Capital Markets		116,200		248,092
CMOC Group Ltd., Class A	Metals & Mining		31,900		27,825
CMOC Group Ltd., Class H	Metals & Mining		213,000		128,886
CMST Development Co. Ltd., Class A	Air Freight & Logistics		8,700		6,689
CNGR Advanced Material Co. Ltd., Class A	Chemicals		2,900		30,257
CNOOC Energy Technology & Services Ltd., Class A	Energy Equipment & Services		20,300		9,755
CNPC Capital Co. Ltd., Class A	Machinery		17,400		17,686
Contemporary Amperex Technology Co. Ltd., Class A	Electrical Equipment		8,900		526,240
COSCO SHIPPING Development Co. Ltd., Class A	Marine Transportation		40,600		14,603
COSCO SHIPPING Development Co. Ltd., Class H	Marine Transportation		174,000		23,052
^bCOSCO SHIPPING Energy Transportation Co. Ltd., Class A	Marine Transportation		11,600		22,871
^bCOSCO SHIPPING Energy Transportation Co. Ltd., Class H	Marine Transportation		66,000		68,102
COSCO SHIPPING Holdings Co. Ltd., Class A	Marine Transportation		45,480		73,048
COSCO SHIPPING Holdings Co. Ltd., Class H	Marine Transportation		159,500		179,413
Country Garden Holdings Co. Ltd.	Real Estate Management & Development		667,000		187,781
Country Garden Services Holdings Co. Ltd.	Commercial Services & Supplies		107,300		185,623
CRRC Corp. Ltd., Class A	Machinery		89,900		80,117
CRRC Corp. Ltd., Class H	Machinery		203,000		110,681
CSC Financial Co. Ltd., Class A	Capital Markets		17,400		64,940
^aCSC Financial Co. Ltd., Class H	Capital Markets		43,500		42,392
CSG Holding Co. Ltd., Class A	Construction Materials		5,800		5,667
CSG Holding Co. Ltd., Class B	Construction Materials		60,900		23,041
CSPC Pharmaceutical Group Ltd., Class A	Pharmaceuticals		428,000		420,915
Daan Gene Co. Ltd., Class A	Biotechnology		4,140		9,712
^bDada Nexus Ltd., Class A, ADR	Consumer Staples Distribution & Retail		3,770		31,932
^aDali Foods Group Co. Ltd.	Food Products		101,500		42,410



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Franklin FTSE China ETF (continued)



	Industry	Shares		Value

Common Stocks (continued)
China (continued)
Daqin Railway Co. Ltd., Class A	Ground Transportation		52,200	$	54,653
^bDaqo New Energy Corp., ADR	Semiconductors & Semiconductor Equipment		2,842		133,119
DaShenLin Pharmaceutical Group Co. Ltd., Class A	Consumer Staples Distribution & Retail		1,152		6,245
^bDatang International Power Generation Co. Ltd., Class A	Independent Power Producers & Energy Traders		26,100		11,516
^bDatang International Power Generation Co. Ltd., Class H	Independent Power Producers & Energy Traders		116,000		20,984
DHC Software Co. Ltd., Class A	IT Services		11,600		14,020
Dian Diagnostics Group Co. Ltd., Class A	Health Care Providers & Services		2,900		12,099
Do-Fluoride New Materials Co. Ltd., Class A	Chemicals		2,900		14,024
Dong-E-E-Jiao Co. Ltd., Class A	Pharmaceuticals		2,900		22,377
Dongfang Electric Corp. Ltd., Class A	Electrical Equipment		8,700		24,020
Dongfang Electric Corp. Ltd., Class H	Electrical Equipment		17,400		28,106
Dongfeng Motor Group Co. Ltd., Class H	Automobiles		153,900		72,147
Dongxing Securities Co. Ltd., Class A	Capital Markets		11,600		14,189
^a,bEast Buy Holding Ltd.	Diversified Consumer Services		14,500		62,526
East Group Co. Ltd., Class A	Electrical Equipment		8,700		9,856
East Money Information Co. Ltd., Class A	Capital Markets		46,480		135,569
Eastern Air Logistics Co. Ltd., Class A	Air Freight & Logistics		5,800		12,846
Ecovacs Robotics Co. Ltd., Class A	Household Durables		2,200		26,462
ENN Energy Holdings Ltd.	Gas Utilities		38,200		523,611
ENN Natural Gas Co. Ltd., Class A	Chemicals		8,700		26,414
Eternal Asia Supply Chain Management Ltd., Class A	Commercial Services & Supplies		11,600		9,966
Eve Energy Co. Ltd., Class A	Electrical Equipment		6,800		69,017
Everbright Securities Co. Ltd., Class A	Capital Markets		14,500		32,179
^aEverbright Securities Co. Ltd., Class H	Capital Markets		11,600		7,876
^a,bEvergrande Property Services Group Ltd.	Real Estate Management & Development		221,000		29,956
^bFangda Carbon New Material Co. Ltd., Class A	Electrical Equipment		14,500		13,598
FAW Jiefang Group Co. Ltd.	Automobiles		5,800		7,010
Fiberhome Telecommunication Technologies Co. Ltd., Class A	Communications Equipment		5,800		16,554
Financial Street Holdings Co. Ltd., Class A	Real Estate Management & Development		11,600		8,480
First Capital Securities Co. Ltd., Class A	Capital Markets		17,400		15,126
Flat Glass Group Co. Ltd., Class A	Semiconductors & Semiconductor Equipment		2,900		14,489
Flat Glass Group Co. Ltd., Class H	Semiconductors & Semiconductor Equipment		29,000		83,122
Focus Media Information Technology Co. Ltd., Class A	Technology Hardware, Storage & Peripherals		55,100		55,122
Foshan Haitian Flavouring & Food Co. Ltd., Class A	Food Products		15,061		167,863
Fosun International Ltd.	Industrial Conglomerates		116,000		85,116
Foxconn Industrial Internet Co. Ltd., Class A	Electronic Equipment, Instruments & Components		46,400		116,350
Fujian Funeng Co. Ltd., Class A	Independent Power Producers & Energy Traders		5,800		10,355
Fujian Sunner Development Co. Ltd., Class A	Food Products		5,800		20,827
^bFull Truck Alliance Co. Ltd., ADR	Ground Transportation		32,190		244,966
Fuyao Glass Industry Group Co. Ltd., Class A	Automobile Components		5,800		29,358
^aFuyao Glass Industry Group Co. Ltd., Class H	Automobile Components		34,800		151,614
Ganfeng Lithium Group Co. Ltd., Class A	Metals & Mining		6,060		58,656
^aGanfeng Lithium Group Co. Ltd., Class H	Metals & Mining		16,860		104,812
G-bits Network Technology Xiamen Co. Ltd., Class A	Entertainment		200		13,885
^bGCL System Integration Technology Co. Ltd., Class A	Semiconductors & Semiconductor Equipment		23,200		10,540
^bGCL Technology Holdings Ltd.	Semiconductors & Semiconductor Equipment		1,044,000		269,979
^bGD Power Development Co. Ltd., Class A	Independent Power Producers & Energy Traders		63,800		35,304
^bGDS Holdings Ltd., Class A	IT Services		49,300		119,326



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Franklin FTSE China ETF (continued)



	Industry	Shares		Value

Common Stocks (continued)
China (continued)
GEM Co. Ltd., Class A	Metals & Mining		20,300	$	22,082
Gemdale Corp., Class A	Real Estate Management & Development		17,400		21,283
^bGenscript Biotech Corp.	Life Sciences Tools & Services		49,307		105,524
GF Securities Co. Ltd., Class A	Capital Markets		20,300		46,617
GF Securities Co. Ltd., Class H	Capital Markets		52,200		73,945
GigaDevice Semiconductor, Inc., Class A	Semiconductors & Semiconductor Equipment		2,248		39,936
^bGinlong Technologies Co. Ltd., Class A	Electrical Equipment		1,350		26,260
Glarun Technology Co. Ltd., Class A	Communications Equipment		5,800		13,784
GoerTek, Inc., Class A	Electronic Equipment, Instruments & Components		11,600		36,148
GoodWe Technologies Co. Ltd., Class A, A	Electrical Equipment		364		15,342
Gotion High-tech Co. Ltd., Class A	Electrical Equipment		5,800		25,177
^bGrandjoy Holdings Group Co. Ltd., Class A	Real Estate Management & Development		17,400		9,451
Great Wall Motor Co. Ltd., Class A	Automobiles		8,700		35,384
Great Wall Motor Co. Ltd., Class H	Automobiles		130,500		161,090
Gree Electric Appliances, Inc. of Zhuhai, Class A	Household Durables		2,900		15,519
Greentown China Holdings Ltd.	Real Estate Management & Development		43,500		56,412
GRG Banking Equipment Co. Ltd., Class A	Technology Hardware, Storage & Peripherals		8,700		15,532
Guangdong Baolihua New Energy Stock Co. Ltd., Class A	Independent Power Producers & Energy Traders		8,700		7,665
^bGuangdong Electric Power Development Co. Ltd., Class A, A	Independent Power Producers & Energy Traders		8,700		8,070
^bGuangdong Electric Power Development Co. Ltd., Class B	Independent Power Producers & Energy Traders		46,400		12,708
Guangdong Golden Dragon Development, Inc., Class A	Capital Markets		2,900		5,836
Guangdong Haid Group Co. Ltd., Class A	Food Products		6,000		50,963
Guangdong HEC Technology Holding Co. Ltd., Class A	Metals & Mining		11,600		15,118
Guangdong Kinlong Hardware Products Co. Ltd., Class A	Building Products		700		8,196
Guangdong Xinbao Electrical Appliances Holdings Co. Ltd., Class A	Household Durables		2,900		7,196
Guanghui Energy Co. Ltd., Class A	Oil, Gas & Consumable Fuels		23,200		31,250
^bGuangshen Railway Co. Ltd., Class A	Ground Transportation		14,500		5,089
^bGuangshen Railway Co. Ltd., Class H	Ground Transportation		58,000		10,713
Guangxi Guiguan Electric Power Co. Ltd., Class A	Independent Power Producers & Energy Traders		14,500		11,740
Guangxi Liugong Machinery Co. Ltd., Class A	Machinery		5,800		5,718
Guangzhou Automobile Group Co. Ltd., Class A	Automobiles		11,600		18,817
Guangzhou Automobile Group Co. Ltd., Class H	Automobiles		162,000		102,154
Guangzhou Baiyunshan Pharmaceutical Holdings Co. Ltd., Class A	Pharmaceuticals		5,800		27,939
Guangzhou Baiyunshan Pharmaceutical Holdings Co. Ltd., Class H	Pharmaceuticals		10,500		32,370
Guangzhou Haige Communications Group, Inc. Co., Class A	Communications Equipment		8,700		13,302
Guangzhou Kingmed Diagnostics Group Co. Ltd., Class A	Health Care Providers & Services		2,900		37,204
Guangzhou Shiyuan Electronic Technology Co. Ltd., Class A	Electronic Equipment, Instruments & Components		700		7,630
Guangzhou Tinci Materials Technology Co. Ltd., Class A	Chemicals		7,460		45,581
Guangzhou Wondfo Biotech Co. Ltd., Class A	Health Care Equipment & Supplies		1,300		5,889
Guangzhou Yuexiu Capital Holdings Group Co. Ltd., Class A, A	Capital Markets		10,093		9,685
Guangzhou Zhujiang Brewery Co. Ltd., Class A	Beverages		5,800		7,998



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Franklin FTSE China ETF (continued)



	Industry	Shares		Value

Common Stocks (continued)
China (continued)
^bGuizhou Bailing Group Pharmaceutical Co. Ltd., Class A, A	Pharmaceuticals		5,800	$	6,807
Guizhou Panjiang Refined Coal Co. Ltd., Class A	Oil, Gas & Consumable Fuels		5,800		6,106
Guizhou Xinbang Pharmaceutical Co. Ltd., Class A	Pharmaceuticals		8,700		6,372
Guolian Securities Co. Ltd., Class A	Capital Markets		8,700		13,416
Guosen Securities Co. Ltd., Class A	Capital Markets		20,300		27,698
^bGuosheng Financial Holding, Inc., Class A	Electrical Equipment		8,700		11,047
Guotai Junan Securities Co. Ltd., Class A	Capital Markets		26,100		54,577
^aGuotai Junan Securities Co. Ltd., Class H	Capital Markets		34,800		42,292
Guoyuan Securities Co. Ltd., Class A	Capital Markets		17,400		17,128
^bH World Group Ltd., ADR	Hotels, Restaurants & Leisure		10,788		528,396
^a,bHaidilao International Holding Ltd.	Hotels, Restaurants & Leisure		77,000		208,441
Haier Smart Home Co. Ltd., Class A	Household Durables		23,200		76,620
Haier Smart Home Co. Ltd., Class H	Household Durables		116,000		364,996
Haitian International Holdings Ltd.	Machinery		30,000		77,580
Haitong Securities Co. Ltd., Class A	Capital Markets		34,800		44,645
Haitong Securities Co. Ltd., Class H	Capital Markets		174,000		108,612
^bHang Zhou Great Star Industrial Co. Ltd., Class A	Household Durables		2,900		7,990
Hangzhou Binjiang Real Estate Group Co. Ltd., Class A	Real Estate Management & Development		11,600		15,456
Hangzhou Chang Chuan Technology Co. Ltd., Class A, A	Semiconductors & Semiconductor Equipment		2,900		20,422
Hangzhou First Applied Material Co. Ltd., Class A	Semiconductors & Semiconductor Equipment		2,440		20,874
Hangzhou Lion Electronics Co. Ltd., Class A, A	Semiconductors & Semiconductor Equipment		2,900		23,006
Hangzhou Oxygen Plant Group Co. Ltd., Class A	Machinery		2,900		14,054
Hangzhou Robam Appliances Co. Ltd., Class A	Household Durables		2,900		11,976
Hangzhou Silan Microelectronics Co. Ltd., Class A	Semiconductors & Semiconductor Equipment		5,800		31,258
Hangzhou Tigermed Consulting Co. Ltd., Class A	Life Sciences Tools & Services		2,900		40,417
^aHangzhou Tigermed Consulting Co. Ltd., Class H	Life Sciences Tools & Services		5,800		54,454
Han’s Laser Technology Industry Group Co. Ltd., Class A	Machinery		2,900		12,817
^aHansoh Pharmaceutical Group Co. Ltd.	Pharmaceuticals		58,000		100,780
Haohua Chemical Science & Technology Co. Ltd., Class A, A	Chemicals		2,800		18,205
Harbin Boshi Automation Co. Ltd., Class A	Machinery		2,900		6,904
Hefei Meiya Optoelectronic Technology, Inc., Class A	Machinery		3,680		17,309
Heilongjiang Agriculture Co. Ltd., Class A	Food Products		5,800		11,334
Henan Shenhuo Coal & Power Co. Ltd., Class A, A	Metals & Mining		8,700		22,449
Henan Shuanghui Investment & Development Co. Ltd., Class A	Food Products		11,600		43,817
Hengan International Group Co. Ltd.	Personal Products		35,700		165,085
Hengdian Group DMEGC Magnetics Co. Ltd., Class A	Electronic Equipment, Instruments & Components		5,800		17,365
Hengli Petrochemical Co. Ltd., Class A	Chemicals		11,600		27,364
Hengtong Optic-electric Co. Ltd., Class A	Communications Equipment		8,700		19,130
Hengyi Petrochemical Co. Ltd., Class A	Chemicals		14,500		17,145
Hesteel Co. Ltd., Class A	Metals & Mining		40,600		13,775



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Franklin FTSE China ETF (continued)



	Industry	Shares		Value

Common Stocks (continued)
China (continued)
Hithink RoyalFlush Information Network Co. Ltd., Class A	Capital Markets		2,900	$	86,274
^bHolitech Technology Co. Ltd., Class A	Electronic Equipment, Instruments & Components		11,600		5,203
Hongfa Technology Co. Ltd., Class A	Electrical Equipment		1,040		4,936
Hopson Development Holdings Ltd.	Real Estate Management & Development		43,028		39,356
Hoshine Silicon Industry Co. Ltd., Class A	Chemicals		2,900		35,054
^a,bHua Hong Semiconductor Ltd.	Semiconductors & Semiconductor Equipment		20,500		90,749
Huadian Power International Corp. Ltd., Class A	Independent Power Producers & Energy Traders		26,100		22,006
Huadian Power International Corp. Ltd., Class H	Independent Power Producers & Energy Traders		58,000		23,791
Huadong Medicine Co. Ltd., Class A	Health Care Providers & Services		5,800		39,138
Huafon Chemical Co. Ltd., Class A	Chemicals		14,500		15,751
Huagong Tech Co. Ltd., Class A	Electronic Equipment, Instruments & Components		2,900		10,730
Huaibei Mining Holdings Co. Ltd., Class A	Metals & Mining		8,700		17,179
Hualan Biological Engineering, Inc., Class A	Biotechnology		6,460		20,535
Huaneng Lancang River Hydropower, Inc., Class A	Independent Power Producers & Energy Traders		23,200		23,885
^bHuaneng Power International, Inc., Class A	Independent Power Producers & Energy Traders		26,100		32,571
^bHuaneng Power International, Inc., Class H	Independent Power Producers & Energy Traders		232,000		121,764
Huapont Life Sciences Co. Ltd., Class A	Chemicals		5,800		4,747
Huatai Securities Co. Ltd., Class A	Capital Markets		26,100		48,534
^aHuatai Securities Co. Ltd., Class H	Capital Markets		81,200		92,786
Huaxi Securities Co. Ltd., Class A	Capital Markets		8,700		10,426
Huaxia Bank Co. Ltd., Class A	Banks		55,100		43,167
Huaxin Cement Co. Ltd., Class A	Construction Materials		5,800		13,133
Huaxin Cement Co. Ltd., Class H, H	Construction Materials		12,800		13,925
Huayu Automotive Systems Co. Ltd., Class A	Automobile Components		11,600		28,277
Hubei Biocause Pharmaceutical Co. Ltd., Class A	Insurance		14,500		7,094
Hubei Energy Group Co. Ltd., Class A	Independent Power Producers & Energy Traders		26,100		16,077
Hubei Xingfa Chemicals Group Co. Ltd., Class A, A	Chemicals		2,900		12,859
Huizhou Desay Sv Automotive Co. Ltd., Class A	Household Durables		1,700		27,466
Humanwell Healthcare Group Co. Ltd., Class A	Pharmaceuticals		5,800		22,618
Hunan Gold Corp. Ltd., Class A	Metals & Mining		2,900		6,398
Hunan Valin Steel Co. Ltd., Class A	Metals & Mining		26,100		21,169
Hundsun Technologies, Inc., Class A	Software		6,906		53,520
^a,bHygeia Healthcare Holdings Co. Ltd.	Health Care Providers & Services		17,400		123,685
Iflytek Co. Ltd., Class A	Software		8,700		80,674
Imeik Technology Development Co. Ltd., Class A, A	Biotechnology		600		48,818
Industrial & Commercial Bank of China Ltd., Class A	Banks		278,400		180,808
Industrial & Commercial Bank of China Ltd., Class H	Banks		4,031,000		2,146,457
Industrial Bank Co. Ltd., Class A	Banks		75,400		185,445
Industrial Securities Co. Ltd., Class A	Capital Markets		33,790		30,113
Ingenic Semiconductor Co. Ltd., Class A	Semiconductors & Semiconductor Equipment		1,300		16,850
Inmyshow Digital Technology Group Co. Ltd., Class A	Media		5,800		7,812
Inner Mongolia BaoTou Steel Union Co. Ltd., Class A	Metals & Mining		139,200		38,310
Inner Mongolia Dian Tou Energy Corp. Ltd., Class A	Oil, Gas & Consumable Fuels		2,900		5,676
Inner Mongolia ERDOS Resources Co. Ltd., Class A	Metals & Mining		5,800		12,964
Inner Mongolia ERDOS Resources Co. Ltd., Class B	Metals & Mining		20,300		38,509



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Franklin FTSE China ETF (continued)



	Industry	Shares		Value

Common Stocks (continued)
China (continued)
Inner Mongolia Junzheng Energy & Chemical Industry Group Co. Ltd., Class A	Chemicals		29,000	$	19,088
Inner Mongolia Yili Industrial Group Co. Ltd., Class A	Food Products		23,200		98,377
Inner Mongolia Yitai Coal Co. Ltd., Class B	Oil, Gas & Consumable Fuels		52,200		76,682
Inner Mongolia Yuan Xing Energy Co. Ltd., Class A	Chemicals		14,500		18,243
^a,bInnovent Biologics, Inc., Class B	Biotechnology		69,000		308,964
Inspur Electronic Information Industry Co. Ltd., Class A	Technology Hardware, Storage & Peripherals		5,908		30,197
Intco Medical Technology Co. Ltd., Class A	Health Care Equipment & Supplies		1,890		7,106
^biQIYI, Inc., ADR	Entertainment		22,243		161,929
JA Solar Technology Co. Ltd., Class A	Semiconductors & Semiconductor Equipment		8,780		73,310
Jafron Biomedical Co. Ltd., Class A	Health Care Equipment & Supplies		2,900		12,817
Jason Furniture Hangzhou Co. Ltd., Class A	Household Durables		3,680		21,746
JCET Group Co. Ltd., Class A	Semiconductors & Semiconductor Equipment		5,800		27,407
^a,bJD Health International, Inc.	Consumer Staples Distribution & Retail		53,650		399,131
^a,bJD Logistics, Inc.	Air Freight & Logistics		84,100		151,060
JD.com, Inc., Class A	Broadline Retail		120,860		2,648,160
^bJiajiayue Group Co. Ltd., Class A	Consumer Staples Distribution & Retail		2,900		5,680
Jiangsu Cnano Technology Co. Ltd., Class A	Chemicals		810		7,988
Jiangsu Eastern Shenghong Co. Ltd., Class A	Chemicals		17,400		34,510
Jiangsu Expressway Co. Ltd., Class A	Transportation Infrastructure		5,800		7,052
Jiangsu Expressway Co. Ltd., Class H	Transportation Infrastructure		62,000		57,814
Jiangsu Hengli Hydraulic Co. Ltd., Class A	Machinery		4,180		40,307
Jiangsu Hengrui Pharmaceuticals Co. Ltd., Class A	Pharmaceuticals		23,200		144,660
Jiangsu King’s Luck Brewery JSC Ltd., Class A	Beverages		5,800		54,771
Jiangsu Linyang Energy Co. Ltd., Class A	Electrical Equipment		8,700		10,021
Jiangsu Pacific Quartz Co. Ltd., Class A	Semiconductors & Semiconductor Equipment		1,200		21,577
Jiangsu Yanghe Brewery Joint-Stock Co. Ltd., Class A	Beverages		5,800		139,745
Jiangsu Yangnong Chemical Co. Ltd., Class A	Chemicals		900		12,729
Jiangsu Yuyue Medical Equipment & Supply Co. Ltd., Class A	Health Care Equipment & Supplies		2,900		13,446
^bJiangsu Zhongnan Construction Group Co. Ltd., Class A	Real Estate Management & Development		17,400		5,143
Jiangsu Zhongtian Technology Co. Ltd., Class A	Electrical Equipment		11,600		28,868
Jiangxi Copper Co. Ltd., Class A	Metals & Mining		8,700		25,071
Jiangxi Copper Co. Ltd., Class H	Metals & Mining		58,000		98,268
^bJiangxi Special Electric Motor Co. Ltd., Class A, A	Electrical Equipment		5,800		12,998
^bJiangxi Zhengbang Technology Co. Ltd., Class A	Food Products		11,600		5,574
Jilin Aodong Pharmaceutical Group Co. Ltd., Class A	Pharmaceuticals		5,800		12,931
^bJinke Properties Group Co. Ltd., Class A	Real Estate Management & Development		23,200		5,372
Jinke Smart Services Group Co. Ltd., Class H	Real Estate Management & Development		11,600		17,733
^aJinxin Fertility Group Ltd.	Health Care Providers & Services		79,000		52,935
JiuGui Liquor Co. Ltd., Class A	Beverages		900		16,949
^aJiumaojiu International Holdings Ltd.	Hotels, Restaurants & Leisure		29,000		69,009
Jizhong Energy Resources Co. Ltd., Class A	Oil, Gas & Consumable Fuels		11,600		11,554
Joincare Pharmaceutical Group Industry Co. Ltd., Class A	Pharmaceuticals		8,700		16,685
Joinn Laboratories China Co. Ltd., Class A	Life Sciences Tools & Services		1,400		10,674
^aJoinn Laboratories China Co. Ltd., Class H	Life Sciences Tools & Services		3,980		15,489



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Franklin FTSE China ETF (continued)



	Industry	Shares		Value

Common Stocks (continued)
China (continued)
Jointown Pharmaceutical Group Co. Ltd., Class A	Health Care Providers & Services		5,800	$	12,618
Jonjee Hi-Tech Industrial & Commercial Holding Co. Ltd., Class A	Food Products		2,900		15,667
Joyoung Co. Ltd., Class A	Household Durables		2,900		7,567
JOYY, Inc., ADR	Interactive Media & Services		2,320		72,338
^bJuneyao Airlines Co. Ltd., Class A, A	Airlines		8,700		22,778
^bKaishan Group Co. Ltd., Class A	Machinery		2,900		7,475
^bKanzhun Ltd., ADR	Interactive Media & Services		6,931		131,897
^bKE Holdings, Inc., ADR	Real Estate Management & Development		32,683		615,748
Keda Industrial Group Co. Ltd.	Machinery		5,800		12,187
Kingboard Holdings Ltd.	Electronic Equipment, Instruments & Components		37,800		116,049
^bKingdee International Software Group Co. Ltd.	Software		132,000		213,892
^bKingsoft Cloud Holdings Ltd., ADR	IT Services		5,278		46,921
Kingsoft Corp. Ltd.	Software		42,400		208,761
^a,bKuaishou Technology, Class B	Interactive Media & Services		101,500		781,620
Kuang-Chi Technologies Co. Ltd., Class A	Automobile Components		8,700		20,979
Kunlun Tech Co. Ltd., Class A	Entertainment		2,900		19,755
Kweichow Moutai Co. Ltd., Class A	Beverages		4,500		1,192,608
^bLakala Payment Co. Ltd., Class A	IT Services		2,900		7,931
Lao Feng Xiang Co. Ltd., Class B	Textiles, Apparel & Luxury Goods		11,600		38,744
LB Group Co. Ltd., Class A	Chemicals		8,700		25,642
Lee & Man Paper Manufacturing Ltd.	Paper & Forest Products		87,000		34,800
^aLegend Holdings Corp., Class H	Technology Hardware, Storage & Peripherals		26,100		27,829
Lens Technology Co. Ltd., Class A	Electronic Equipment, Instruments & Components		17,400		34,231
^bLeo Group Co. Ltd., Class A	Media		31,900		11,102
Lepu Medical Technology Beijing Co. Ltd., Class A	Health Care Equipment & Supplies		5,800		19,577
Levima Advanced Materials Corp., Class A, A	Chemicals		2,900		12,044
Leyard Optoelectronic Co. Ltd., Class A	Electronic Equipment, Instruments & Components		8,700		8,627
^bLi Auto, Inc., Class A	Automobiles		54,462		679,912
Li Ning Co. Ltd.	Textiles, Apparel & Luxury Goods		117,500		926,535
LianChuang Electronic Technology Co. Ltd., Class A	Electronic Equipment, Instruments & Components		3,560		6,630
Lianhe Chemical Technology Co. Ltd., Class A	Chemicals		2,900		5,950
Liaoning Port Co. Ltd., Class A	Transportation Infrastructure		66,700		15,540
^bLingyi iTech Guangdong Co., Class A	Electrical Equipment		29,000		26,098
Livzon Pharmaceutical Group, Inc., Class A	Pharmaceuticals		2,900		15,785
Livzon Pharmaceutical Group, Inc., Class H	Pharmaceuticals		8,700		30,700
^aLongfor Group Holdings Ltd.	Real Estate Management & Development		97,630		275,480
LONGi Green Energy Technology Co. Ltd., Class A	Semiconductors & Semiconductor Equipment		26,100		153,583
Longshine Technology Group Co. Ltd., Class A, A	Software		2,900		11,288
Luenmei Quantum Co. Ltd., Class A	Water Utilities		5,800		5,245
Lufax Holding Ltd., ADR	Consumer Finance		36,221		73,891
Luxi Chemical Group Co. Ltd., Class A	Chemicals		5,800		11,529
Luxshare Precision Industry Co. Ltd., Class A	Electronic Equipment, Instruments & Components		26,199		115,634
^a,bLuye Pharma Group Ltd.	Pharmaceuticals		87,000		40,342
Luzhou Laojiao Co. Ltd., Class A	Beverages		5,800		215,191
Maanshan Iron & Steel Co. Ltd., Class A	Metals & Mining		23,200		9,730
Maanshan Iron & Steel Co. Ltd., Class H	Metals & Mining		58,000		13,373
Mango Excellent Media Co. Ltd., Class A	Entertainment		6,730		36,495
Maxscend Microelectronics Co. Ltd., Class A	Electronic Equipment, Instruments & Components		1,632		29,563
Meihua Holdings Group Co. Ltd., Class A	Food Products		11,600		16,520
^bMeinian Onehealth Healthcare Holdings Co. Ltd., Class A	Health Care Providers & Services		14,500		15,878



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Franklin FTSE China ETF (continued)



	Industry	Shares		Value

Common Stocks (continued)
China (continued)
^a,bMeituan, Class B	Hotels, Restaurants & Leisure		240,029	$	4,387,819
Metallurgical Corp. of China Ltd., Class A	Construction & Engineering		52,200		29,645
Metallurgical Corp. of China Ltd., Class H	Construction & Engineering		145,000		37,497
^bMicroport Scientific Corp.	Health Care Equipment & Supplies		46,400		109,115
Ming Yang Smart Energy Group Ltd., Class A	Electrical Equipment		8,700		28,517
Ming Yuan Cloud Group Holdings Ltd.	Software		29,000		18,582
MINISO Group Holding Ltd., ADR	Broadline Retail		4,321		76,655
Minth Group Ltd.	Automobile Components		36,500		110,198
Montage Technology Co. Ltd., Class A	Semiconductors & Semiconductor Equipment		4,025		40,746
Muyuan Foods Co. Ltd., Class A	Food Products		19,560		139,566
NanJi E-Commerce Co. Ltd., Class A	Media		11,600		8,564
Nanjing Hanrui Cobalt Co. Ltd., Class A	Metals & Mining		800		4,927
Nanjing Iron & Steel Co. Ltd., Class A	Metals & Mining		23,200		13,142
Nanjing King-Friend Biochemical Pharmaceutical Co. Ltd., Class A	Pharmaceuticals		3,745		8,889
NARI Technology Co. Ltd., Class A	Electrical Equipment		24,240		95,692
NAURA Technology Group Co. Ltd., Class A	Electronic Equipment, Instruments & Components		1,800		69,682
NavInfo Co. Ltd., Class A	Household Durables		8,700		17,141
NetEase, Inc.	Entertainment		92,800		1,631,399
New China Life Insurance Co. Ltd., Class A	Insurance		8,700		38,640
New China Life Insurance Co. Ltd., Class H	Insurance		49,300		117,190
^bNew Hope Liuhe Co. Ltd., Class A	Food Products		17,400		33,521
^bNew Oriental Education & Technology Group, Inc.	Diversified Consumer Services		67,880		264,604
Newland Digital Technology Co. Ltd., Class A	Software		2,900		7,069
Nine Dragons Paper Holdings Ltd.	Paper & Forest Products		81,000		60,673
Ninestar Corp., Class A	Technology Hardware, Storage & Peripherals		5,800		37,854
Ningbo Deye Technology Co. Ltd., Class A, A	Machinery		700		26,294
^bNingbo Joyson Electronic Corp., Class A	Automobile Components		5,800		12,863
Ningbo Orient Wires & Cables Co. Ltd., Class A, A	Electrical Equipment		2,900		20,823
Ningbo Ronbay New Energy Technology Co. Ltd., Class A	Electrical Equipment		1,586		15,797
Ningbo Sanxing Medical Electric Co. Ltd., Class A	Electrical Equipment		5,800		10,752
Ningbo Shanshan Co. Ltd., Class A, A	Chemicals		8,700		21,828
Ningbo Tuopu Group Co. Ltd., Class A	Automobile Components		2,900		27,077
Ningbo Zhoushan Port Co. Ltd., Class A	Transportation Infrastructure		23,200		12,230
Ningxia Baofeng Energy Group Co. Ltd., Class A	Chemicals		8,700		18,686
^bNIO, Inc., ADR	Automobiles		61,190		643,107
^aNongfu Spring Co. Ltd., Class H	Beverages		87,000		500,392
North Huajin Chemical Industries Co. Ltd., Class A	Chemicals		5,800		6,284
North Industries Group Red Arrow Co. Ltd., Class A	Machinery		2,900		9,645
Northeast Securities Co. Ltd., Class A	Capital Markets		8,700		8,589
NSFOCUS Technologies Group Co. Ltd., Class A	Software		2,900		5,870
^bOffcn Education Technology Co. Ltd., Class A	Diversified Consumer Services		8,700		6,208
Offshore Oil Engineering Co. Ltd., Class A	Energy Equipment & Services		14,500		12,943
^bOFILM Group Co. Ltd., Class A	Electronic Equipment, Instruments & Components		11,600		8,953
Oppein Home Group, Inc., Class A	Household Durables		900		15,829
ORG Technology Co. Ltd., Class A	Containers & Packaging		8,700		6,550
Orient Securities Co. Ltd., Class A	Capital Markets		26,724		38,098
^aOrient Securities Co. Ltd., Class H	Capital Markets		46,400		24,885
Oriental Energy Co. Ltd., Class A	Oil, Gas & Consumable Fuels		5,800		7,441



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Franklin FTSE China ETF (continued)



	Industry	Shares		Value

Common Stocks (continued)
China (continued)
^bOurpalm Co. Ltd., Class A	Entertainment		14,500	$	9,121
Ovctek China, Inc., Class A	Health Care Equipment & Supplies		3,620		17,459
^bPangang Group Vanadium Titanium & Resources Co. Ltd., Class A	Metals & Mining		31,900		22,947
^bPDD Holdings, Inc., ADR	Internet & Direct Marketing Retail		22,330		1,694,847
People.cn Co. Ltd., Class A	Media		2,900		7,977
People’s Insurance Co. Group of China Ltd., Class A	Insurance		37,700		28,547
Perfect World Co. Ltd., Class A	Entertainment		5,800		14,375
PetroChina Co. Ltd., Class A	Oil, Gas & Consumable Fuels		89,900		77,499
PetroChina Co. Ltd., Class H	Oil, Gas & Consumable Fuels		1,044,000		618,424
Pharmaron Beijing Co. Ltd., Class A	Life Sciences Tools & Services		1,500		10,696
^aPharmaron Beijing Co. Ltd., Class H	Life Sciences Tools & Services		10,000		41,975
PICC Property & Casualty Co. Ltd., Class H	Insurance		348,000		355,095
Ping An Bank Co. Ltd., Class A	Banks		69,600		126,991
^a,bPing An Healthcare & Technology Co. Ltd.	Health Care Technology		20,300		51,358
Ping An Insurance Group Co. of China Ltd., Class A	Insurance		37,700		250,334
Ping An Insurance Group Co. of China Ltd., Class H	Insurance		319,000		2,076,561
Pingdingshan Tianan Coal Mining Co. Ltd., Class A	Oil, Gas & Consumable Fuels		8,700		13,137
Poly Developments & Holdings Group Co. Ltd., Class A	Real Estate Management & Development		43,500		89,505
Poly Property Services Co. Ltd., Class H	Real Estate Management & Development		6,800		41,666
^aPop Mart International Group Ltd.	Specialty Retail		34,800		94,869
Porton Pharma Solutions Ltd., Class A	Pharmaceuticals		2,900		15,663
Postal Savings Bank of China Co. Ltd., Class A	Banks		72,500		49,091
^aPostal Savings Bank of China Co. Ltd., Class H	Banks		464,000		275,446
Power Construction Corp. of China Ltd., Class A	Construction & Engineering		60,900		63,230
Pylon Technologies Co. Ltd., Class A	Electrical Equipment		659		23,559
Qingdao TGOOD Electric Co. Ltd., Class A	Electrical Equipment		2,900		7,453
^bQinghai Salt Lake Industry Co. Ltd., Class A	Chemicals		20,300		66,097
Raytron Technology Co. Ltd., Class A	Electronic Equipment, Instruments & Components		1,348		9,599
^aRed Star Macalline Group Corp. Ltd., Class H	Real Estate Management & Development		36,000		16,510
^a,bRemegen Co. Ltd., Class H	Biotechnology		7,500		39,984
^bRiseSun Real Estate Development Co. Ltd., Class A	Real Estate Management & Development		14,500		3,885
^bRLX Technology, Inc., ADR	Tobacco		37,091		107,564
Rongsheng Petrochemical Co. Ltd., Class A	Chemicals		11,600		25,557
SAIC Motor Corp. Ltd., Class A	Automobiles		34,800		72,769
Sailun Group Co. Ltd., Class A, A	Automobile Components		11,600		18,226
Sangfor Technologies, Inc., Class A	Software		600		12,927
Sansteel Minguang Co. Ltd. Fujian, Class A	Metals & Mining		8,700		6,208
Sany Heavy Industry Co. Ltd., Class A	Machinery		31,900		79,386
Satellite Chemical Co. Ltd., Class A	Chemicals		13,146		30,629
SDIC Capital Co. Ltd., Class A	Capital Markets		17,400		17,584
Sealand Securities Co. Ltd., Class A	Capital Markets		24,240		12,001
^bSeazen Group Ltd.	Real Estate Management & Development		116,000		29,998
^bSeazen Holdings Co. Ltd., Class A	Real Estate Management & Development		8,700		20,701
^a,bSenseTime Group, Inc., Class B	Software		783,000		265,324
SF Holding Co. Ltd., Class A	Air Freight & Logistics		17,400		140,319
SG Micro Corp., Class A	Semiconductors & Semiconductor Equipment		1,275		28,815
Shaanxi Coal Industry Co. Ltd., Class A	Oil, Gas & Consumable Fuels		34,800		103,073
Shaanxi International Trust Co. Ltd., Class A	Capital Markets		14,500		6,736
Shan Xi Hua Yang Group New Energy Co. Ltd., Class A	Oil, Gas & Consumable Fuels		8,700		17,508



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SCHEDULE OF INVESTMENTS

Franklin FTSE China ETF (continued)



	Industry	Shares		Value

Common Stocks (continued)
China (continued)
^bShandong Chenming Paper Holdings Ltd., Class A	Paper & Forest Products		5,800	$	4,485
^bShandong Chenming Paper Holdings Ltd., Class B	Paper & Forest Products		34,800		10,152
^bShandong Chenming Paper Holdings Ltd., Class H	Paper & Forest Products		29,000		9,088
Shandong Denghai Seeds Co. Ltd., Class A	Food Products		2,900		7,897
Shandong Gold Mining Co. Ltd., Class A	Metals & Mining		12,284		39,424
^aShandong Gold Mining Co. Ltd., Class H	Metals & Mining		36,750		74,624
Shandong Himile Mechanical Science & Technology Co. Ltd., Class A	Machinery		2,900		13,218
Shandong Hi-speed Co. Ltd., Class A	Transportation Infrastructure		11,600		10,338
Shandong Hualu Hengsheng Chemical Co. Ltd., Class A	Chemicals		8,780		45,068
Shandong Humon Smelting Co. Ltd., Class A	Metals & Mining		2,900		4,945
Shandong Linglong Tyre Co. Ltd., Class A	Automobile Components		2,900		8,252
Shandong Nanshan Aluminum Co. Ltd., Class A	Metals & Mining		43,500		21,473
Shandong Pharmaceutical Glass Co. Ltd., Class A	Health Care Equipment & Supplies		2,900		11,085
Shandong Sun Paper Industry JSC Ltd., Class A	Paper & Forest Products		8,700		15,443
Shandong Weigao Group Medical Polymer Co. Ltd., Class H	Health Care Equipment & Supplies		118,500		189,299
^bShanghai Aiko Solar Energy Co. Ltd., Class A	Semiconductors & Semiconductor Equipment		2,900		13,982
Shanghai AJ Group Co. Ltd., Class A	Financial Services		5,800		4,535
Shanghai Bairun Investment Holding Group Co. Ltd., Class A	Beverages		3,940		23,471
Shanghai Baosight Software Co. Ltd., Class A	Software		3,280		27,798
Shanghai Baosight Software Co. Ltd., Class B	Software		26,190		86,479
Shanghai Construction Group Co. Ltd., Class A	Construction & Engineering		26,100		10,376
^bShanghai Electric Group Co. Ltd., Class A	Electrical Equipment		34,800		22,398
^bShanghai Electric Group Co. Ltd., Class H	Electrical Equipment		116,000		28,963
^bShanghai Electric Power Co. Ltd., Class A	Independent Power Producers & Energy Traders		11,600		16,773
Shanghai Fosun Pharmaceutical Group Co. Ltd., Class A	Pharmaceuticals		8,700		41,034
Shanghai Fosun Pharmaceutical Group Co. Ltd., Class H	Pharmaceuticals		29,000		82,383
Shanghai Friendess Electronic Technology Corp. Ltd., Class A, A	Electronic Equipment, Instruments & Components		420		11,211
Shanghai Fudan Microelectronics Group Co. Ltd., Class A	Semiconductors & Semiconductor Equipment		999		9,523
Shanghai Fudan Microelectronics Group Co. Ltd., Class H	Semiconductors & Semiconductor Equipment		14,000		51,453
Shanghai Huayi Group Co. Ltd., Class B	Chemicals		8,700		5,046
^bShanghai International Airport Co. Ltd., Class A	Transportation Infrastructure		8,700		70,603
Shanghai International Port Group Co. Ltd., Class A	Transportation Infrastructure		40,600		32,753
Shanghai Jinjiang International Hotels Co. Ltd., Class A	Hotels, Restaurants & Leisure		2,900		26,566
Shanghai Jinjiang International Hotels Co. Ltd., Class B	Hotels, Restaurants & Leisure		8,700		18,357
Shanghai Jinqiao Export Processing Zone Development Co. Ltd., Class A, A	Real Estate Management & Development		2,900		5,034
Shanghai Jinqiao Export Processing Zone Development Co. Ltd., Class B	Real Estate Management & Development		17,400		16,582
^bShanghai Junshi Biosciences Co. Ltd., Class A, A	Biotechnology		2,813		19,678



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Franklin FTSE China ETF (continued)



	Industry	Shares		Value

Common Stocks (continued)
China (continued)
^a,bShanghai Junshi Biosciences Co. Ltd., Class H	Biotechnology		5,800	$	20,245
Shanghai Lingang Holdings Corp. Ltd., Class A	Real Estate Management & Development		6,600		12,196
Shanghai Lujiazui Finance & Trade Zone Development Co. Ltd., Class A	Real Estate Management & Development		5,800		8,437
Shanghai Lujiazui Finance & Trade Zone Development Co. Ltd., Class B	Real Estate Management & Development		60,900		47,076
Shanghai M&G Stationery, Inc., Class A	Commercial Services & Supplies		2,900		20,734
Shanghai Mechanical & Electrical Industry Co. Ltd., Class B	Machinery		11,600		12,412
Shanghai Pharmaceuticals Holding Co. Ltd., Class A	Health Care Providers & Services		11,600		34,408
Shanghai Pharmaceuticals Holding Co. Ltd., Class H	Health Care Providers & Services		43,500		81,127
Shanghai Pudong Development Bank Co. Ltd., Class A	Banks		104,415		109,322
Shanghai Putailai New Energy Technology Co. Ltd., Class A	Chemicals		5,020		36,484
Shanghai RAAS Blood Products Co. Ltd., Class A	Biotechnology		26,100		24,438
Shanghai Rural Commercial Bank Co. Ltd., Class A	Banks		11,600		9,730
Shanghai Tunnel Engineering Co. Ltd., Class A	Construction & Engineering		14,500		12,035
Shanghai Waigaoqiao Free Trade Zone Group Co. Ltd., Class B	Trading Companies & Distributors		11,600		10,823
Shanghai Yuyuan Tourist Mart Group Co. Ltd., Class A	Specialty Retail		17,400		20,599
Shanghai Zhangjiang High-Tech Park Development Co. Ltd., Class A	Real Estate Management & Development		5,800		13,893
Shanghai Zhenhua Heavy Industries Co. Ltd., Class B	Machinery		52,200		13,102
Shanxi Coking Coal Energy Group Co. Ltd., Class A	Oil, Gas & Consumable Fuels		17,400		27,846
Shanxi Lu’an Environmental Energy Development Co. Ltd., Class A	Oil, Gas & Consumable Fuels		11,600		37,060
Shanxi Meijin Energy Co. Ltd., Class A, A	Metals & Mining		17,400		23,260
Shanxi Securities Co. Ltd., Class A	Capital Markets		14,700		12,437
Shanxi Taigang Stainless Steel Co. Ltd., Class A	Metals & Mining		23,200		14,662
Shanxi Xinghuacun Fen Wine Factory Co. Ltd., Class A	Beverages		4,420		175,325
Shanying International Holding Co. Ltd., Class A	Paper & Forest Products		17,400		6,258
Shenghe Resources Holding Co. Ltd., Class A	Metals & Mining		5,800		11,951
Shengyi Technology Co. Ltd., Class A	Electronic Equipment, Instruments & Components		8,700		23,386
Shennan Circuits Co. Ltd., Class A, A	Electronic Equipment, Instruments & Components		600		8,066
Shenwan Hongyuan Group Co. Ltd., Class A	Capital Markets		78,300		47,546
^aShenwan Hongyuan Group Co. Ltd., Class H	Capital Markets		92,800		17,614
Shenzhen Agricultural Products Group Co. Ltd., Class A	Consumer Staples Distribution & Retail		5,800		4,856
Shenzhen Airport Co. Ltd., Class A	Transportation Infrastructure		5,800		6,157
Shenzhen Capchem Technology Co. Ltd., Class A	Chemicals		2,980		21,172
Shenzhen Dynanonic Co. Ltd., Class A, A	Chemicals		540		14,895
Shenzhen Energy Group Co. Ltd., Class A	Independent Power Producers & Energy Traders		17,400		15,481
^bShenzhen Everwin Precision Technology Co. Ltd., Class A	Electronic Equipment, Instruments & Components		5,800		11,444
Shenzhen Expressway Corp. Ltd., Class H	Transportation Infrastructure		24,000		21,340
Shenzhen Gas Corp. Ltd., Class A	Gas Utilities		9,400		9,390



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SCHEDULE OF INVESTMENTS

Franklin FTSE China ETF (continued)



	Industry	Shares		Value

Common Stocks (continued)
China (continued)
Shenzhen Hepalink Pharmaceutical Group Co. Ltd., Class A, A	Pharmaceuticals		2,900	$	5,819
Shenzhen Huaqiang Industry Co. Ltd., Class A	Electronic Equipment, Instruments & Components		2,900		5,883
^bShenzhen Infogem Technologies Co. Ltd., Class A, A	Software		2,900		5,080
Shenzhen Inovance Technology Co. Ltd., Class A	Machinery		9,650		98,786
Shenzhen International Holdings Ltd.	Transportation Infrastructure		72,500		64,096
Shenzhen Investment Ltd.	Real Estate Management & Development		116,000		20,540
Shenzhen Jinjia Group Co. Ltd., Class A	Containers & Packaging		5,800		6,258
Shenzhen Kaifa Technology Co. Ltd., Class A	Technology Hardware, Storage & Peripherals		5,800		14,121
Shenzhen Kangtai Biological Products Co. Ltd., Class A	Biotechnology		4,460		20,549
Shenzhen Kedali Industry Co. Ltd., Class A, A	Automobile Components		800		15,062
Shenzhen Kingdom Sci-Tech Co. Ltd., Class A	Software		2,900		5,942
Shenzhen Mindray Bio-Medical Electronics Co. Ltd., Class A	Health Care Equipment & Supplies		4,400		199,718
^bShenzhen MTC Co. Ltd., Class A	Household Durables		20,300		14,573
^bShenzhen Neptunus Bioengineering Co. Ltd., Class A	Health Care Providers & Services		11,600		5,726
Shenzhen Overseas Chinese Town Co. Ltd., Class A	Hotels, Restaurants & Leisure		31,900		22,436
Shenzhen Salubris Pharmaceuticals Co. Ltd., Class A	Pharmaceuticals		2,900		14,932
Shenzhen SC New Energy Technology Corp., Class A	Semiconductors & Semiconductor Equipment		1,100		18,333
Shenzhen Senior Technology Material Co. Ltd., Class A	Chemicals		5,800		16,250
Shenzhen Sunway Communication Co. Ltd., Class A	Communications Equipment		2,900		8,834
Shenzhen Transsion Holdings Co. Ltd., Class A	Technology Hardware, Storage & Peripherals		2,912		42,913
Shenzhen Yan Tian Port Holding Co. Ltd., Class A, A	Transportation Infrastructure		8,700		6,385
Shenzhen YUTO Packaging Technology Co. Ltd., Class A	Containers & Packaging		2,900		11,752
Shenzhen Zhongjin Lingnan Nonfemet Co. Ltd., Class A	Metals & Mining		14,500		10,388
Shenzhou International Group Holdings Ltd.	Textiles, Apparel & Luxury Goods		37,700		395,732
^bShijiazhuang Changshan BeiMing Technology Co. Ltd., Class A	Textiles, Apparel & Luxury Goods		5,800		7,686
Shijiazhuang Yiling Pharmaceutical Co. Ltd., Class A	Pharmaceuticals		6,480		27,468
^bShimao Group Holdings Ltd.	Real Estate Management & Development		78,000		20,614
^a,bShimao Services Holdings Ltd., Class Z	Real Estate Management & Development		29,000		7,278
Shui On Land Ltd.	Real Estate Management & Development		174,000		21,057
^bSiasun Robot & Automation Co. Ltd., Class A	Machinery		5,800		10,076
Sichuan Chuantou Energy Co. Ltd., Class A	Independent Power Producers & Energy Traders		17,400		33,496
Sichuan Hebang Biotechnology Co. Ltd., Class A	Chemicals		34,800		15,152
Sichuan Kelun Pharmaceutical Co. Ltd., Class A	Pharmaceuticals		5,800		24,003
^bSichuan New Energy Power Co. Ltd.	Trading Companies & Distributors		5,800		13,446
Sichuan Road & Bridge Group Co. Ltd., Class A	Construction & Engineering		17,400		34,966
Sichuan Swellfun Co. Ltd., Class A	Beverages		1,600		17,551
Sichuan Yahua Industrial Group Co. Ltd., Class A, A	Chemicals		2,900		8,940
Sieyuan Electric Co. Ltd., Class A	Electrical Equipment		2,900		19,307
Sinoma International Engineering Co., Class A	Construction & Engineering		8,700		14,164



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Franklin FTSE China ETF (continued)



	Industry	Shares		Value

Common Stocks (continued)
China (continued)
Sinoma Science & Technology Co. Ltd., Class A	Chemicals		5,800	$	20,380
Sinomine Resource Group Co. Ltd., Class A	Metals & Mining		1,600		16,379
Sino-Ocean Group Holding Ltd.	Real Estate Management & Development		159,500		18,084
Sinopec Engineering Group Co. Ltd., Class H	Construction & Engineering		72,500		36,019
^bSinopec Oilfield Service Corp., Class A	Energy Equipment & Services		20,300		6,208
^bSinopec Oilfield Service Corp., Class H	Energy Equipment & Services		116,000		8,866
Sinopec Shanghai Petrochemical Co. Ltd., Class A	Chemicals		23,200		11,385
Sinopec Shanghai Petrochemical Co. Ltd., Class H	Chemicals		174,000		30,367
Sinopharm Group Co. Ltd., Class H	Health Care Providers & Services		58,000		175,479
Sinotrans Ltd., Class A	Air Freight & Logistics		14,500		8,784
Sinotrans Ltd., Class H	Air Freight & Logistics		87,000		26,931
Sinotruk Hong Kong Ltd.	Machinery		29,000		45,070
^bSkshu Paint Co. Ltd., Class A	Chemicals		980		16,612
Skyworth Digital Co. Ltd., Class A, A	Communications Equipment		2,900		8,007
^aSmoore International Holdings Ltd.	Tobacco		93,690		120,306
Songcheng Performance Development Co. Ltd., Class A	Hotels, Restaurants & Leisure		9,360		22,176
SooChow Securities Co. Ltd., Class A	Capital Markets		20,504		20,631
Southwest Securities Co. Ltd., Class A	Capital Markets		26,100		14,784
StarPower Semiconductor Ltd., Class A, A	Semiconductors & Semiconductor Equipment		500		19,990
^bSTO Express Co. Ltd., Class A	Air Freight & Logistics		5,800		9,392
Sun Art Retail Group Ltd.	Consumer Staples Distribution & Retail		101,500		40,730
^bSunac China Holdings Ltd.	Real Estate Management & Development		160,000		31,802
^aSunac Services Holdings Ltd.	Real Estate Management & Development		30,898		13,186
Sungrow Power Supply Co. Ltd., Class A	Electrical Equipment		5,800		88,563
Suning Universal Co. Ltd., Class A	Real Estate Management & Development		14,500		6,482
Sunny Optical Technology Group Co. Ltd.	Electronic Equipment, Instruments & Components		31,900		385,850
Sunwoda Electronic Co. Ltd., Class A	Electrical Equipment		5,800		17,027
Suzhou Anjie Technology Co. Ltd., Class A, A	Electrical Equipment		2,900		6,326
Suzhou Dongshan Precision Manufacturing Co. Ltd., Class A	Electronic Equipment, Instruments & Components		5,800		25,549
^bSuzhou Gold Mantis Construction Decoration Co. Ltd., Class A	Construction & Engineering		8,700		6,638
Suzhou Maxwell Technologies Co. Ltd., Class A	Electrical Equipment		640		28,425
Taiji Computer Corp. Ltd., Class A	IT Services		2,900		17,812
^bTAL Education Group, ADR	Diversified Consumer Services		22,272		142,764
Tangshan Jidong Cement Co. Ltd., Class A	Construction Materials		11,600		14,662
TangShan Port Group Co. Ltd., Class A	Transportation Infrastructure		20,300		9,164
Tangshan Sanyou Chemical Industries Co. Ltd., Class A	Chemicals		8,900		8,541
TBEA Co. Ltd., Class A	Electrical Equipment		14,500		45,840
TCL Technology Group Corp., Class A	Household Durables		63,800		41,156
TCL Zhonghuan Renewable Energy Technology Co. Ltd., Class A	Semiconductors & Semiconductor Equipment		11,600		81,857
Tencent Holdings Ltd.	Interactive Media & Services		306,264		15,051,899
^bTencent Music Entertainment Group, ADR	Entertainment		31,668		262,211
The People’s Insurance Co. Group of China Ltd., Class H	Insurance		406,000		135,507
Thunder Software Technology Co. Ltd., Class A	Software		1,500		23,666
Tian Di Science & Technology Co. Ltd., Class A	Machinery		14,500		10,726
Tianjin Chase Sun Pharmaceutical Co. Ltd., Class A	Pharmaceuticals		11,600		10,084
Tianma Microelectronics Co. Ltd., Class A	Electronic Equipment, Instruments & Components		8,700		13,315
^bTianqi Lithium Corp., Class A	Chemicals		5,800		63,783
^bTianqi Lithium Corp., Class H	Chemicals		5,800		39,049



202	Annual Report	franklintempleton.com

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SCHEDULE OF INVESTMENTS

Franklin FTSE China ETF (continued)



	Industry	Shares		Value

Common Stocks (continued)
China (continued)
Tianshan Aluminum Group Co. Ltd., Class A	Machinery		8,700	$	9,616
Tianshui Huatian Technology Co. Ltd., Class A	Semiconductors & Semiconductor Equipment		11,600		17,061
^bTibet Summit Resources Co. Ltd., Class A, A	Metals & Mining		2,900		9,662
Tingyi Cayman Islands Holding Corp.	Food Products		96,000		159,960
Titan Wind Energy Suzhou Co. Ltd., Class A, A	Electrical Equipment		5,800		12,466
^bTongcheng Travel Holdings Ltd.	Hotels, Restaurants & Leisure		61,600		134,030
^bTongFu Microelectronics Co. Ltd., Class A	Semiconductors & Semiconductor Equipment		5,800		18,750
Tongkun Group Co. Ltd., Class A	Chemicals		8,700		18,192
Tongling Nonferrous Metals Group Co. Ltd., Class A	Metals & Mining		40,600		19,037
Tongwei Co. Ltd., Class A	Food Products		17,400		98,588
^bTopchoice Medical Corp., Class A	Health Care Providers & Services		1,200		22,591
Topsec Technologies Group, Inc., Class A	Electrical Equipment		5,800		10,346
^aTopsports International Holdings Ltd.	Specialty Retail		87,000		79,575
Towngas Smart Energy Co. Ltd.	Gas Utilities		58,000		25,121
TravelSky Technology Ltd., Class H	IT Services		58,000		108,317
Trina Solar Co. Ltd., Class A, A	Semiconductors & Semiconductor Equipment		8,033		60,932
^bTrip.com Group Ltd.	Hotels, Restaurants & Leisure		27,579		1,032,199
Tsingtao Brewery Co. Ltd., Class A	Beverages		2,900		50,928
Tsingtao Brewery Co. Ltd., Class H	Beverages		31,676		345,815
^bTuya, Inc., ADR	Software		12,209		23,075
Unigroup Guoxin Microelectronics Co. Ltd., Class A	Electronic Equipment, Instruments & Components		2,999		48,531
Uni-President China Holdings Ltd.	Food Products		58,000		58,518
Unisplendour Corp. Ltd., Class A	Electronic Equipment, Instruments & Components		5,800		24,738
Universal Scientific Industrial Shanghai Co. Ltd., Class A	Electronic Equipment, Instruments & Components		2,900		7,470
Valiant Co. Ltd., Class A	Chemicals		2,900		7,276
^bVipshop Holdings Ltd., ADR	Broadline Retail		19,517		296,268
Visual China Group Co. Ltd., Class A, A	Interactive Media & Services		2,900		7,044
Walvax Biotechnology Co. Ltd., Class A	Biotechnology		5,800		29,130
^bWanda Film Holding Co. Ltd., Class A	Entertainment		8,700		18,116
Wangsu Science & Technology Co. Ltd., Class A	IT Services		8,700		9,109
Wanhua Chemical Group Co. Ltd., Class A	Chemicals		11,600		161,957
Wanxiang Qianchao Co. Ltd., Class A	Automobile Components		14,500		11,085
^bWeibo Corp., ADR	Interactive Media & Services		3,509		70,391
Weichai Power Co. Ltd., Class A	Machinery		26,100		47,926
Weichai Power Co. Ltd., Class H	Machinery		87,000		139,644
Weifu High-Technology Group Co. Ltd., Class A	Automobile Components		2,900		8,526
Weifu High-Technology Group Co. Ltd., Class B	Automobile Components		8,700		16,070
Wens Foodstuffs Group Co. Ltd., Class A	Food Products		5,800		17,289
Western Mining Co. Ltd., Class A, A	Metals & Mining		8,700		16,051
Western Securities Co. Ltd., Class A	Capital Markets		17,400		16,140
Western Superconducting Technologies Co. Ltd., Class A	Metals & Mining		1,488		17,666
Will Semiconductor Co. Ltd. Shanghai, Class A	Semiconductors & Semiconductor Equipment		2,900		38,471
Wingtech Technology Co. Ltd., Class A	Electronic Equipment, Instruments & Components		5,800		46,663
Winning Health Technology Group Co. Ltd., Class A	Health Care Technology		9,600		19,389
Wolong Electric Group Co. Ltd., Class A	Electrical Equipment		5,800		10,667
Wuchan Zhongda Group Co. Ltd., Class A	Distributors		23,200		16,385
Wuhan Guide Infrared Co. Ltd., Class A	Electronic Equipment, Instruments & Components		11,673		20,551
Wuliangye Yibin Co. Ltd., Class A	Beverages		14,200		407,351
WUS Printed Circuit Kunshan Co. Ltd., Class A	Electronic Equipment, Instruments & Components		8,740		27,350
WuXi AppTec Co. Ltd., Class A	Life Sciences Tools & Services		9,560		110,672
^aWuXi AppTec Co. Ltd., Class H	Life Sciences Tools & Services		17,320		181,365
^a,bWuxi Biologics Cayman, Inc.	Life Sciences Tools & Services		181,681		1,124,809



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SCHEDULE OF INVESTMENTS

Franklin FTSE China ETF (continued)



	Industry	Shares		Value

Common Stocks (continued)
China (continued)
Wuxi Shangji Automation Co. Ltd., Class A	Machinery		1,260	$	18,735
XCMG Construction Machinery Co. Ltd., Class A	Machinery		43,500		43,897
Xiamen C & D, Inc., Class A	Trading Companies & Distributors		11,600		20,388
Xiamen Faratronic Co. Ltd., Class A, A	Electronic Equipment, Instruments & Components		800		17,009
Xiamen ITG Group Corp. Ltd., Class A	Trading Companies & Distributors		8,700		10,920
Xiamen Tungsten Co. Ltd., Class A	Metals & Mining		5,800		17,213
Xiangcai Co. Ltd., Class A	Real Estate Management & Development		5,800		8,049
^a,bXiaomi Corp., Class B	Technology Hardware, Storage & Peripherals		748,200		1,153,284
Xinfengming Group Co. Ltd., Class A, A	Chemicals		2,900		4,582
Xinhua Winshare Publishing & Media Co. Ltd., Class H	Distributors		29,000		22,794
Xinjiang Daqo New Energy Co. Ltd., Class A	Semiconductors & Semiconductor Equipment		2,900		20,536
Xinjiang Goldwind Science & Technology Co. Ltd., Class A	Electrical Equipment		11,600		18,648
Xinjiang Goldwind Science & Technology Co. Ltd., Class H	Electrical Equipment		29,000		24,789
Xinjiang Tianshan Cement Co. Ltd., Class A, A	Construction Materials		8,700		11,224
Xinjiang Zhongtai Chemical Co. Ltd., Class A	Chemicals		11,600		12,246
Xinxing Ductile Iron Pipes Co. Ltd., Class A	Metals & Mining		14,500		8,509
Xinyangfeng Agricultural Technology Co. Ltd., Class A	Chemicals		5,800		9,071
Xinyi Solar Holdings Ltd.	Semiconductors & Semiconductor Equipment		215,642		258,497
^bXPeng, Inc., Class A	Automobiles		53,550		298,449
Xtep International Holdings Ltd.	Textiles, Apparel & Luxury Goods		58,000		73,738
Xuji Electric Co. Ltd., Class A	Electrical Equipment		2,900		9,882
^aYadea Group Holdings Ltd.	Automobiles		58,000		149,619
Yangling Metron New Material, Inc., Class A	Semiconductors & Semiconductor Equipment		2,900		18,969
^bYango Group Co. Ltd., Class A	Real Estate Management & Development		20,300		4,848
^aYangtze Optical Fibre & Cable Joint Stock Ltd. Co., Class H	Communications Equipment		8,500		17,498
Yangzhou Yangjie Electronic Technology Co. Ltd., Class A	Semiconductors & Semiconductor Equipment		2,900		23,226
Yangzijiang Shipbuilding Holdings Ltd.	Machinery		130,500		117,784
Yankuang Energy Group Co. Ltd., Class A	Oil, Gas & Consumable Fuels		5,800		30,042
Yankuang Energy Group Co. Ltd., Class H	Oil, Gas & Consumable Fuels		96,000		343,645
Yantai Changyu Pioneer Wine Co. Ltd., Class B	Beverages		11,600		17,363
Yantai Eddie Precision Machinery Co. Ltd., Class A	Machinery		3,660		9,641
Yantai Jereh Oilfield Services Group Co. Ltd., Class A	Energy Equipment & Services		2,900		11,959
^bYatsen Holding Ltd., ADR	Personal Products		12,064		17,855
Yealink Network Technology Corp. Ltd., Class A	Communications Equipment		2,900		32,098
^bYifan Pharmaceutical Co. Ltd., Class A	Pharmaceuticals		5,800		11,858
Yifeng Pharmacy Chain Co. Ltd., Class A	Consumer Staples Distribution & Retail		2,990		25,175
Yihai International Holding Ltd.	Food Products		29,000		85,153
Yihai Kerry Arawana Holdings Co. Ltd., Class A	Food Products		5,800		36,401
Yintai Gold Co. Ltd., Class A	Metals & Mining		8,900		17,068
Yixintang Pharmaceutical Group Co. Ltd., Class A	Consumer Staples Distribution & Retail		2,900		14,966
YongXing Special Materials Technology Co. Ltd., Class A	Metals & Mining		1,100		13,439
Yonyou Network Technology Co. Ltd., Class A	Software		12,590		46,108
Youngor Group Co. Ltd., Class A	Real Estate Management & Development		20,300		19,273
^bYoungy Co. Ltd., Class A	Metals & Mining		1,000		11,033
YTO Express Group Co. Ltd., Class A	Air Freight & Logistics		11,600		30,945



204	Annual Report	franklintempleton.com

FRANKLIN TEMPLETON ETF TRUST

SCHEDULE OF INVESTMENTS

Franklin FTSE China ETF (continued)



	Industry	Shares		Value

Common Stocks (continued)
China (continued)
^bYuan Longping High-tech Agriculture Co. Ltd., Class A	Food Products		5,800	$	14,003
Yuexiu Property Co. Ltd.	Real Estate Management & Development		66,800		100,754
Yum China Holdings, Inc.	Hotels, Restaurants & Leisure		21,400		1,345,619
Yunda Holding Co. Ltd., Class A	Air Freight & Logistics		6,100		10,508
Yunnan Aluminium Co. Ltd., Class A	Metals & Mining		13,190		26,141
Yunnan Baiyao Group Co. Ltd., Class A	Pharmaceuticals		6,180		49,225
Yunnan Botanee Bio-Technology Group Co. Ltd., Class A, A	Personal Products		700		13,071
Yunnan Copper Co. Ltd., Class A	Metals & Mining		5,800		10,887
Yunnan Energy New Material Co. Ltd., Class A	Containers & Packaging		2,900		48,065
Yunnan Tin Co. Ltd., Class A	Metals & Mining		5,800		12,550
^bYunnan Yuntianhua Co. Ltd., Class A	Chemicals		5,800		17,922
^bZai Lab Ltd.	Biotechnology		47,270		156,865
Zangge Mining Co. Ltd., Class A	Chemicals		5,800		20,405
Zhangzhou Pientzehuang Pharmaceutical Co. Ltd., Class A	Pharmaceuticals		2,100		86,963
^bZhaojin Mining Industry Co. Ltd., Class H	Metals & Mining		58,000		88,072
Zhefu Holding Group Co. Ltd., Class A	Electrical Equipment		23,200		13,750
^bZhejiang Century Huatong Group Co. Ltd., Class A	Entertainment		26,100		22,880
Zhejiang China Commodities City Group Co. Ltd., Class A	Real Estate Management & Development		20,300		17,086
Zhejiang Chint Electrics Co. Ltd., Class A	Electrical Equipment		5,800		23,623
Zhejiang Crystal-Optech Co. Ltd., Class A	Electronic Equipment, Instruments & Components		5,800		11,757
Zhejiang Dahua Technology Co. Ltd., Class A	Electronic Equipment, Instruments & Components		11,600		38,192
Zhejiang Dingli Machinery Co. Ltd., Class A	Machinery		2,900		23,137
Zhejiang Expressway Co. Ltd., Class H	Transportation Infrastructure		73,933		58,770
Zhejiang Hailiang Co. Ltd., Class A	Metals & Mining		5,800		9,848
Zhejiang HangKe Technology, Inc.Co., Class A	Electrical Equipment		1,196		7,802
Zhejiang Hisoar Pharmaceutical Co. Ltd., Class A	Pharmaceuticals		5,800		5,963
Zhejiang Huace Film & Television Co. Ltd., Class A	Entertainment		8,700		10,046
Zhejiang Huahai Pharmaceutical Co. Ltd., Class A	Pharmaceuticals		6,000		17,623
Zhejiang Huayou Cobalt Co. Ltd., Class A	Metals & Mining		5,860		46,933
Zhejiang Jingsheng Mechanical & Electrical Co. Ltd., Class A	Semiconductors & Semiconductor Equipment		5,800		55,143
Zhejiang Jiuzhou Pharmaceutical Co. Ltd., Class A	Pharmaceuticals		2,900		14,054
Zhejiang Juhua Co. Ltd., Class A	Chemicals		8,700		22,398
Zhejiang Medicine Co. Ltd., Class A	Pharmaceuticals		2,900		5,211
Zhejiang NHU Co. Ltd., Class A	Pharmaceuticals		11,856		30,990
Zhejiang Sanhua Intelligent Controls Co. Ltd., Class A	Machinery		2,900		10,874
Zhejiang Supcon Technology Co. Ltd., Class A	Electronic Equipment, Instruments & Components		1,728		26,131
Zhejiang Supor Co. Ltd., Class A	Household Durables		1,400		11,039
^bZhejiang Wanfeng Auto Wheel Co. Ltd., Class A	Automobile Components		11,600		10,507
^bZhejiang Wanliyang Co. Ltd., Class A	Machinery		5,800		7,964
Zhejiang Weiming Environment Protection Co. Ltd., Class A, A	Commercial Services & Supplies		780		2,072
Zhejiang Weixing New Building Materials Co. Ltd., Class A	Building Products		5,800		20,532
Zhejiang Wolwo Bio-Pharmaceutical Co. Ltd., Class A	Pharmaceuticals		2,900		20,101
Zhejiang Yongtai Technology Co. Ltd., Class A	Chemicals		2,900		8,834



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SCHEDULE OF INVESTMENTS

Franklin FTSE China ETF (continued)



	Industry	Shares		Value

Common Stocks (continued)
China (continued)
Zhengzhou Coal Mining Machinery Group Co. Ltd., Class A	Machinery		5,800	$	11,875
Zheshang Securities Co. Ltd., Class A	Capital Markets		5,800		8,505
^a,bZhongAn Online P&C Insurance Co. Ltd., Class H	Insurance		37,700		118,864
Zhongji Innolight Co. Ltd., Class A	Machinery		2,900		24,873
Zhongshan Public Utilities Group Co. Ltd., Class A	Water Utilities		5,800		5,954
Zhongsheng Group Holdings Ltd.	Specialty Retail		35,500		175,014
Zhongtai Securities Co. Ltd., Class A	Capital Markets		8,700		8,488
Zhuhai Huafa Properties Co. Ltd., Class A	Real Estate Management & Development		8,700		13,657
Zhuzhou CRRC Times Electric Co. Ltd., Class A, A	Electrical Equipment		2,002		13,917
Zhuzhou CRRC Times Electric Co. Ltd., Class H .	Electrical Equipment		26,100		113,544
Zhuzhou Kibing Group Co. Ltd., Class A	Building Products		8,700		13,213
Zijin Mining Group Co. Ltd., Class A	Metals & Mining		72,500		130,805
Zijin Mining Group Co. Ltd., Class H	Metals & Mining		294,000		491,376
Zoomlion Heavy Industry Science & Technology Co. Ltd., Class A	Machinery		26,100		23,602
Zoomlion Heavy Industry Science & Technology Co. Ltd., Class H	Machinery		81,200		42,928
ZTE Corp., Class A	Communications Equipment		14,500		68,749
ZTE Corp., Class H	Communications Equipment		40,600		118,956
ZTO Express Cayman, Inc.	Air Freight & Logistics		22,198		633,425


					109,967,110

Hong Kong 3.7%
^bAlibaba Health Information Technology Ltd., Class A	Health Care Technology		244,000		176,551
^bAlibaba Pictures Group Ltd., Class A	Media		580,000		37,682
Beijing Enterprises Water Group Ltd., Class A	Water Utilities		232,000		57,926
Bosideng International Holdings Ltd., Class A	Household Durables		201,000		112,151
China Everbright Environment Group Ltd., Class B	Commercial Services & Supplies		174,000		74,698
China Everbright Ltd., Class A	Capital Markets		42,000		30,122
China Gas Holdings Ltd., Class A	Gas Utilities		150,800		212,466
China Mengniu Dairy Co. Ltd., Class B	Food Products		159,000		652,208
China Power International Development Ltd., Class H	Independent Power Producers & Energy Traders		261,000		103,736
China Resources Beer Holdings Co. Ltd., Class A	Beverages		79,504		638,062
China Resources Gas Group Ltd., Class A	Gas Utilities		46,800		172,595
China Resources Land Ltd., Class H	Real Estate Management & Development		142,500		649,877
China State Construction International Holdings Ltd., Class A	Construction & Engineering		82,000		92,760
China Traditional Chinese Medicine Holdings Co. Ltd.	Pharmaceuticals		116,000		60,734
COSCO SHIPPING Ports Ltd., Class B	Transportation Infrastructure		58,000		38,716
Far East Horizon Ltd.	Financial Services		58,000		52,163
Geely Automobile Holdings Ltd.	Automobiles		280,000		360,257
Guangdong Investment Ltd.	Water Utilities		148,700		152,111
Kingboard Laminates Holdings Ltd.	Electronic Equipment, Instruments & Components		55,100		57,557
Kunlun Energy Co. Ltd.	Oil, Gas & Consumable Fuels		174,000		136,098
Shanghai Industrial Holdings Ltd.	Industrial Conglomerates		29,000		38,790
Shougang Fushan Resources Group Ltd.	Metals & Mining		58,000		18,398
Sino Biopharmaceutical Ltd.	Pharmaceuticals		493,000		276,333



206	Annual Report	franklintempleton.com

FRANKLIN TEMPLETON ETF TRUST

SCHEDULE OF INVESTMENTS

Franklin FTSE China ETF (continued)



	Industry	Shares		Value

Common Stocks (continued)
Hong Kong (continued)
Vinda International Holdings Ltd.	Household Products		13,000	$	31,432


					4,233,423

Singapore 0.0%^†
^bYangzijiang Financial Holding Ltd.	Capital Markets		124,700		35,171
Yanlord Land Group Ltd.	Real Estate Management & Development		31,900		21,834


					57,005

Total Investments (Cost $140,465,875) 100.0%					114,257,538
Other Assets, less Liabilities 0.0%^†					(23,182	)

Net Assets 100.0%				$	114,234,356

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

^bNon-income producing.

^cFair valued using significant unobservable inputs. Note 8 regarding fair value measurements.

See Abbreviations on page 355.



franklintempleton.com	The accompanying notes are an integral part of these financial statements. \| Annual Report	207

FRANKLIN TEMPLETON ETF TRUST

Financial Highlights

Franklin FTSE Europe ETF



	Year Ended March 31,

	2023			2022			2021			2020			2019

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

Net asset value, beginning of year		$27.18			$27.28			$19.03			$23.24			$24.98

Income from investment operations^a:

Net investment income^b		1.11			0.85			0.60			0.76			0.86

Net realized and unrealized gains (losses)		(0.89	)		0.11			8.14			(4.21	)		(1.79	)

Total from investment operations		0.22			0.96			8.74			(3.45	)		(0.93	)

Less distributions from net investment income		(0.84	)		(1.06	)		(0.49	)		(0.76	)		(0.81	)

Net asset value, end of year		$26.56			$27.18			$27.28			$19.03			$23.24

Total return^c		1.31%			3.30%			46.23%			(15.44)%			(3.69)%

Ratios to average net assets^d

Expenses before waiver and payments by affiliates		0.24%^e			0.09%			0.09%			0.09%			0.09%

Expenses net of waiver and payments by affiliates		0.24%^e			0.09%			0.09%			0.09%			—%

Net investment income		4.50%			2.96%			2.53%			3.23%			3.61%

Supplemental data

Net assets, end of year (000’s)		$111,558			$184,857			$229,126			$91,356			$74,359

Portfolio turnover rate^f		5.22%^g			5.47%^g			5.00%^g			4.47%^g			5.81%
^aThe amount shown for a share outstanding throughout the period may not correlate with the Statement of Operations for the period due to the timing of sales and repurchases of Creation Unit Fund shares in relation to income earned and/or fluctuating fair value of the investments of the Fund. ^bBased on average daily shares outstanding. ^cTotal return is not annualized for periods less than one year. Total return is calculated assuming an initial investment made at the net asset value at the beginning of the period, reinvestment of all dividends and distributions at net asset value during the period, and redemption at net asset value on the last day of the period. ^dRatios are annualized for periods less than one year, except for non-recurring expenses, if any. ^eExpense ratios are including non-recurring European Union tax reclaim contingent fees that were incurred by the Fund during the period. Without these fees, the gross and net expense ratios would have been 0.09% and 0.09%, respectively, for the year ended March 31, 2023. ^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:		5.22%			5.47%			4.92%			4.47%			—



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

FRANKLIN TEMPLETON ETF TRUST

Schedule of Investments, March 31, 2023

Franklin FTSE Europe ETF



	Industry	Shares		Value

Common Stocks 98.2%
Australia 1.4%
Glencore PLC	Metals & Mining		135,345	$	777,496
Rio Tinto PLC	Metals & Mining		11,655		789,425


					1,566,921

Austria 0.3%
ANDRITZ AG	Machinery		735		49,749
Erste Group Bank AG	Banks		3,486		115,515
OMV AG	Oil, Gas & Consumable Fuels		1,554		71,349
^aRaiffeisen Bank International AG	Banks		1,365		20,999
Telekom Austria AG	Diversified Telecommunication Services		1,512		11,417
Verbund AG	Electric Utilities		693		60,233
voestalpine AG	Metals & Mining		1,260		42,820


					372,082

Belgium 1.4%
Ackermans & van Haaren NV	Financial Services		231		38,147
Ageas SA	Insurance		1,974		85,486
Anheuser-Busch InBev SA	Beverages		9,282		618,478
D’ieteren Group	Distributors		252		48,980
Elia Group SA	Electric Utilities		399		52,713
Groupe Bruxelles Lambert NV	Financial Services		1,050		89,551
KBC Group NV	Banks		2,961		203,635
Lotus Bakeries NV	Food Products		4		28,030
Proximus SADP	Diversified Telecommunication Services		1,491		14,407
Sofina SA	Financial Services		168		37,673
Solvay SA	Chemicals		756		86,530
UCB SA	Pharmaceuticals		1,281		114,735
Umicore SA	Chemicals		2,184		74,055
Warehouses De Pauw CVA	Diversified REITs		1,680		49,866


					1,542,286

Bermuda 0.1%
Hiscox Ltd.	Insurance		3,528		48,377


Chile 0.1%
Antofagasta PLC	Metals & Mining		3,759		73,482


Denmark 4.4%
AP Moller - Maersk AS, Class A	Marine Transportation		30		53,205
AP Moller - Maersk AS, Class B	Marine Transportation		51		92,568
Carlsberg AS, Class B	Beverages		987		153,019
Chr Hansen Holding AS	Chemicals		1,092		82,976
Coloplast AS, Class B	Health Care Equipment & Supplies		1,428		187,816
^aDanske Bank AS	Banks		7,056		142,014
^aDemant AS	Health Care Equipment & Supplies		1,008		35,312
DSV AS	Air Freight & Logistics		1,911		369,711
^aGenmab AS	Biotechnology		693		261,673
H Lundbeck AS	Pharmaceuticals		2,604		12,070
^aH Lundbeck AS, Class A	Pharmaceuticals		651		2,765
Novo Nordisk AS, Class B	Pharmaceuticals		16,758		2,653,789
Novozymes AS, Class B	Chemicals		2,142		109,622
^bOrsted AS	Electric Utilities		2,037		173,321
Pandora AS	Textiles, Apparel & Luxury Goods		924		88,323
ROCKWOOL AS, Class B	Building Products		63		15,441
Royal Unibrew AS	Beverages		525		45,788
Tryg AS	Insurance		3,759		82,180
Vestas Wind Systems AS	Electrical Equipment		10,794		313,278


					4,874,871



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Franklin FTSE Europe ETF (continued)



	Industry	Shares		Value

Common Stocks (continued)
Finland 1.9%
Elisa Oyj	Diversified Telecommunication Services		1,617	$	97,607
Fortum OYJ	Electric Utilities		4,725		72,459
Huhtamaki OYJ	Containers & Packaging		987		36,673
Kesko OYJ, Class B	Consumer Staples Distribution & Retail		2,856		61,453
Kojamo Oyj	Real Estate Management & Development		2,079		24,507
Kone OYJ, Class B	Machinery		3,507		182,889
Metso Outotec OYJ	Machinery		6,447		70,324
Neste OYJ	Oil, Gas & Consumable Fuels		4,410		217,666
Nokia OYJ	Communications Equipment		60,480		296,707
Nordea Bank Abp	Banks		37,149		397,269
Orion OYJ, Class B	Pharmaceuticals		1,155		51,687
Sampo Oyj, Class A	Insurance		4,998		236,100
Stora Enso OYJ, Class R	Paper & Forest Products		6,174		80,359
UPM-Kymmene OYJ	Paper & Forest Products		5,691		191,363
Valmet Oyj	Machinery		1,785		57,869
Wartsila OYJ Abp	Machinery		5,250		49,555


					2,124,487

France 17.3%
^aAccor SA	Hotels, Restaurants & Leisure		1,953		63,591
^aAeroports de Paris	Transportation Infrastructure		336		48,058
Air Liquide SA	Chemicals		5,481		918,235
Airbus SE	Aerospace & Defense		5,985		801,616
^bALD SA	Ground Transportation		1,449		17,002
Alstom SA	Machinery		3,234		88,121
^bAmundi SA	Capital Markets		609		38,409
Arkema SA	Chemicals		693		68,364
AXA SA	Insurance		20,034		613,038
BioMerieux	Health Care Equipment & Supplies		462		48,688
BNP Paribas SA	Banks		11,823		709,178
Bollore SE	Entertainment		10,605		65,559
Bouygues SA	Construction & Engineering		2,247		75,899
Bureau Veritas SA	Professional Services		3,087		88,777
Capgemini SE	IT Services		1,722		319,451
Carrefour SA	Consumer Staples Distribution & Retail		6,384		129,216
Cie de Saint-Gobain	Building Products		4,914		279,327
Cie Generale des Etablissements Michelin SCA	Automobile Components		7,539		230,529
Covivio SA	Diversified REITs		525		30,573
Credit Agricole SA	Banks		13,020		147,086
Danone SA	Food Products		6,552		407,957
Dassault Aviation SA	Aerospace & Defense		252		49,993
Dassault Systemes SE	Software		7,161		294,670
Edenred	IT Services		2,667		158,033
Eiffage SA	Construction & Engineering		798		86,473
Engie SA	Multi-Utilities		17,766		281,305
EssilorLuxottica SA	Textiles, Apparel & Luxury Goods		3,192		575,679
Eurazeo SE	Financial Services		525		37,360
Gecina SA	Diversified REITs		546		56,680
Getlink SE	Transportation Infrastructure		3,717		61,342
Hermes International	Textiles, Apparel & Luxury Goods		336		680,448
ICADE	Diversified REITs		336		15,821
Ipsen SA	Pharmaceuticals		378		41,684
^aJCDecaux SE	Media		798		16,742
Kering SA	Textiles, Apparel & Luxury Goods		777		506,503
Klepierre SA	Diversified REITs		1,974		44,716
^bLa Francaise des Jeux SAEM	Hotels, Restaurants & Leisure		924		38,539
Legrand SA	Electrical Equipment		2,856		260,892
L’Oreal SA	Personal Products		2,646		1,182,239



210	Annual Report	franklintempleton.com

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Franklin FTSE Europe ETF (continued)



	Industry	Shares		�� Value

Common Stocks (continued)
France (continued)
LVMH Moet Hennessy Louis Vuitton SE	Textiles, Apparel & Luxury Goods		2,646	$	2,427,436
^bNeoen SA	Independent Power Producers & Energy Traders		690		21,702
Orange SA	Diversified Telecommunication Services		20,538		244,378
Pernod Ricard SA	Beverages		2,184		495,205
Publicis Groupe SA	Media		2,415		188,335
Remy Cointreau SA	Beverages		273		49,829
^aRenault SA	Automobiles		2,079		84,928
Rexel SA	Trading Companies & Distributors		2,604		62,099
Safran SA	Aerospace & Defense		3,738		554,509
Sanofi	Pharmaceuticals		11,676		1,271,583
Sartorius Stedim Biotech	Life Sciences Tools & Services		252		77,207
Schneider Electric SE	Electrical Equipment		5,691		950,201
SCOR SE	Insurance		1,575		35,832
SEB SA	Household Durables		315		35,866
Societe Generale SA	Banks		7,875		177,832
Sodexo SA	Hotels, Restaurants & Leisure		924		90,409
^aSOITEC	Semiconductors & Semiconductor Equipment		273		43,778
Teleperformance	Professional Services		630		151,746
Thales SA	Aerospace & Defense		1,071		158,655
TotalEnergies SE	Oil, Gas & Consumable Fuels		24,381		1,439,928
^aUbisoft Entertainment SA	Entertainment		945		25,113
^aUnibail-Rodamco-Westfield	Diversified REITs		1,092		58,591
Valeo SA	Automobile Components		2,562		52,636
Veolia Environnement SA	Multi-Utilities		6,825		210,587
Vinci SA	Construction & Engineering		5,334		612,660
Vivendi SE	Media		7,392		74,689
Wendel SE	Financial Services		294		31,095
^a,bWorldline SA	IT Services		2,646		112,431


					19,317,053

Germany 12.2%
adidas AG	Textiles, Apparel & Luxury Goods		1,806		319,395
Allianz SE	Insurance		4,305		995,301
BASF SE	Chemicals		9,807		515,267
Bayer AG	Pharmaceuticals		10,542		672,541
Bayerische Motoren Werke AG	Automobiles		3,402		373,085
Bechtle AG	IT Services		903		43,157
Beiersdorf AG	Personal Products		1,071		139,572
Brenntag SE	Trading Companies & Distributors		1,638		123,149
Carl Zeiss Meditec AG	Health Care Equipment & Supplies		399		55,487
^aCommerzbank AG	Banks		11,046		116,433
Continental AG	Automobile Components		1,155		86,484
^bCovestro AG	Chemicals		1,911		79,166
^aCTS Eventim AG & Co. KGaA	Entertainment		651		40,633
^aDaimler Truck Holding AG	Machinery		4,515		152,605
^a,bDelivery Hero SE	Internet & Direct Marketing Retail		1,995		67,993
Deutsche Bank AG	Capital Markets		21,714		220,719
Deutsche Boerse AG	Capital Markets		1,974		384,858
^aDeutsche Lufthansa AG	Airlines		6,300		70,226
Deutsche Post AG	Air Freight & Logistics		10,395		486,643
Deutsche Telekom AG	Diversified Telecommunication Services		36,288		881,151
Deutsche Wohnen SE	Real Estate Management & Development		567		11,144
^bDWS Group GmbH & Co. KGaA	Capital Markets		378		11,630
E.ON SE	Multi-Utilities		23,688		295,962
Evonik Industries AG	Chemicals		2,058		43,287
Fielmann AG	Specialty Retail		252		10,508
^aFraport AG Frankfurt Airport Services Worldwide	Transportation Infrastructure		378		19,018



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Franklin FTSE Europe ETF (continued)



	Industry	Shares		Value

Common Stocks (continued)
Germany (continued)
Fresenius Medical Care AG & Co. KGaA	Health Care Providers & Services		2,163	$	91,885
Fresenius SE & Co. KGaA	Health Care Providers & Services		4,326		116,795
Fuchs Petrolub SE	Chemicals		357		12,237
GEA Group AG	Machinery		1,743		79,440
Hannover Rueck SE	Insurance		651		127,558
HeidelbergCement AG	Construction Materials		1,575		115,093
Hella GmbH & Co. KGaA	Automobile Components		231		20,115
^aHelloFresh SE	Internet & Direct Marketing Retail		1,722		40,991
Henkel AG & Co. KGaA	Household Products		1,071		77,960
HOCHTIEF AG	Construction & Engineering		210		17,536
Infineon Technologies AG	Semiconductors & Semiconductor Equipment		13,965		571,691
KION Group AG	Machinery		777		30,061
Knorr-Bremse AG	Machinery		693		46,138
LANXESS AG	Chemicals		945		38,840
LEG Immobilien SE	Real Estate Management & Development		798		43,765
Mercedes-Benz Group AG	Automobiles		9,009		692,782
Merck KGaA	Pharmaceuticals		1,386		258,323
^aMETRO AG	Consumer Staples Distribution & Retail		1,407		12,107
MTU Aero Engines AG	Aerospace & Defense		567		142,054
Muenchener Rueckversicherungs-Gesellschaft AG in Muenchen	Insurance		1,512		529,775
Nemetschek SE	Software		567		38,982
Puma SE	Textiles, Apparel & Luxury Goods		1,050		64,864
Rational AG	Machinery		63		42,231
Rheinmetall AG	Industrial Conglomerates		462		137,331
RWE AG	Multi-Utilities		6,783		292,123
SAP SE	Software		11,886		1,498,746
Sartorius AG	Health Care Equipment & Supplies		21		7,244
^bScout24 SE	Interactive Media & Services		840		49,920
Siemens AG	Industrial Conglomerates		8,001		1,297,470
^aSiemens Energy AG	Electrical Equipment		5,040		110,828
^bSiemens Healthineers AG	Health Care Equipment & Supplies		2,982		171,774
Sixt SE	Ground Transportation		147		19,580
Symrise AG	Chemicals		1,386		150,883
^aTalanx AG	Insurance		546		25,330
Telefonica Deutschland Holding AG	Diversified Telecommunication Services		9,597		29,580
^athyssenkrupp AG	Metals & Mining		5,250		37,737
Traton SE	Machinery		525		10,284
United Internet AG	Diversified Telecommunication Services		924		15,932
Volkswagen AG	Automobiles		315		54,073
Vonovia SE	Real Estate Management & Development		7,707		145,192
Wacker Chemie AG	Chemicals		168		27,269
^a,bZalando SE	Internet & Direct Marketing Retail		2,373		99,362


					13,607,295

Ireland 1.5%
AIB Group PLC	Banks		12,222		49,689
Bank of Ireland Group PLC	Banks		11,466		116,151
CRH PLC	Construction Materials		8,043		405,896
DCC PLC	Industrial Conglomerates		1,050		61,253
Experian PLC	Professional Services		9,912		326,001
^aFlutter Entertainment PLC	Hotels, Restaurants & Leisure		1,890		341,887
Glanbia PLC	Food Products		2,037		29,567
Kerry Group PLC, Class A	Food Products		1,659		165,534
Kingspan Group PLC	Building Products		1,638		112,186
Smurfit Kappa Group PLC	Containers & Packaging		2,814		101,806


					1,709,970



212	Annual Report	franklintempleton.com

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SCHEDULE OF INVESTMENTS

Franklin FTSE Europe ETF (continued)



	Industry	Shares		Value

Common Stocks (continued)
Isle Of Man 0.1%
Entain PLC	Hotels, Restaurants & Leisure		6,300	$	97,877

Italy 3.4%
A2A SpA	Multi-Utilities		16,401		26,194
Amplifon SpA	Health Care Providers & Services		1,407		48,825
Assicurazioni Generali SpA	Insurance		14,511		289,769
Banca Mediolanum SpA	Financial Services		2,667		24,218
Banco BPM SpA	Banks		14,721		57,657
Buzzi Unicem SpA	Construction Materials		903		21,937
Davide Campari-Milano NV	Beverages		5,439		66,478
De’ Longhi SpA	Household Durables		756		17,298
DiaSorin SpA	Health Care Equipment & Supplies		231		24,359
Enel SpA	Electric Utilities		83,076		507,881
Eni SpA	Oil, Gas & Consumable Fuels		23,688		332,147
Ferrari NV	Automobiles		1,281		346,961
FinecoBank Banca Fineco SpA	Banks		6,594		101,300
Hera SpA	Multi-Utilities		8,757		24,756
^bInfrastrutture Wireless Italiane SpA	Diversified Telecommunication Services		3,738		49,221
Interpump Group SpA	Machinery		840		47,137
Intesa Sanpaolo SpA	Banks		173,334		445,845
Italgas SpA	Gas Utilities		5,313		32,469
Leonardo SpA	Aerospace & Defense		4,263		50,113
Mediobanca Banca di Credito Finanziario SpA	Banks		6,888		69,357
Moncler SpA	Textiles, Apparel & Luxury Goods		2,184		150,768
^a,bNexi SpA	IT Services		5,859		47,652
^bPirelli & C SpA	Automobile Components		5,355		26,890
^bPoste Italiane SpA	Insurance		4,851		49,605
Prysmian SpA	Electrical Equipment		2,814		118,316
Recordati Industria Chimica e Farmaceutica SpA	Pharmaceuticals		1,071		45,333
Reply SpA	IT Services		252		31,622
Snam SpA	Gas Utilities		23,814		126,492
^aTelecom Italia SpA	Diversified Telecommunication Services		112,791		37,277
^aTelecom Italia SpA	Diversified Telecommunication Services		64,575		20,809
Tenaris SA	Energy Equipment & Services		4,956		70,536
Terna - Rete Elettrica Nazionale	Electric Utilities		15,225		125,151
UniCredit SpA	Banks		20,160		381,328
UnipolSai Assicurazioni SpA	Insurance		4,221		10,676


					3,826,377

Luxembourg 0.2%
ArcelorMittal SA	Metals & Mining		5,124		155,152
Eurofins Scientific SE	Life Sciences Tools & Services		1,281		85,787
RTL Group SA	Media		399		19,698
^aSUSE SA	Software		378		6,862


					267,499

Mexico 0.0%^†
Fresnillo PLC	Metals & Mining		1,995		18,402

Netherlands 9.0%
Aalberts NV	Machinery		1,008		47,540
^bABN AMRO Bank NV	Banks		4,242		67,379
^a,bAdyen NV	IT Services		315		499,385
Aegon NV	Insurance		18,186		78,065
Akzo Nobel NV	Chemicals		1,869		146,161
^aArgenx SE	Biotechnology		588		217,650
ASM International NV	Semiconductors & Semiconductor Equipment		483		195,156
ASML Holding NV	Semiconductors & Semiconductor Equipment		4,326		2,938,429



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Franklin FTSE Europe ETF (continued)



	Industry	Shares		Value

Common Stocks (continued)
Netherlands (continued)
ASR Nederland NV	Insurance		1,533	$	61,191
BE Semiconductor Industries NV	Semiconductors & Semiconductor Equipment		840		73,101
^bCTP NV	Real Estate Management & Development		1,155		14,958
^bEuronext NV	Capital Markets		861		66,023
^aEXOR NV	Financial Services		1,092		89,977
Heineken Holding NV	Beverages		1,281		117,672
Heineken NV	Beverages		2,688		289,293
IMCD NV	Trading Companies & Distributors		609		99,512
ING Groep NV	Banks		38,829		461,090
JDE Peet’s NV	Food Products		861		25,088
Koninklijke Ahold Delhaize NV	Consumer Staples Distribution & Retail		10,269		351,326
Koninklijke DSM NV	Chemicals		1,869		220,723
Koninklijke KPN NV	Diversified Telecommunication Services		34,083		120,568
Koninklijke Philips NV	Health Care Equipment & Supplies		9,492		173,623
Koninklijke Vopak NV	Oil, Gas & Consumable Fuels		693		24,462
NN Group NV	Insurance		3,024		109,930
OCI NV	Chemicals		1,008		34,234
Prosus NV	Internet & Direct Marketing Retail		7,938		620,428
^aQIAGEN NV	Life Sciences Tools & Services		2,331		106,138
Randstad NV	Professional Services		1,176		69,761
Shell PLC	Oil, Gas & Consumable Fuels		74,655		2,130,911
^bSignify NV	Electrical Equipment		1,323		44,041
Universal Music Group NV	Entertainment		7,980		202,051
Wolters Kluwer NV	Professional Services		2,688		339,786


					10,035,652

Nigeria 0.0%^†
^bAirtel Africa PLC	Wireless Telecommunication Services		11,991		15,790


Norway 1.1%
^aAdevinta ASA, Class B	Interactive Media & Services		3,045		21,588
Aker ASA, Class A	Financial Services		252		16,169
Aker BP ASA	Oil, Gas & Consumable Fuels		3,255		79,657
^a,bAutoStore Holdings Ltd.	Machinery		7,539		16,175
DNB Bank ASA	Banks		11,025		197,223
Equinor ASA	Oil, Gas & Consumable Fuels		9,912		282,697
Gjensidige Forsikring ASA	Insurance		1,869		30,570
Kongsberg Gruppen ASA	Aerospace & Defense		777		31,367
Leroy Seafood Group ASA	Food Products		2,772		14,372
Mowi ASA	Food Products		4,683		86,478
^aNordic Semiconductor ASA	Semiconductors & Semiconductor Equipment		1,638		24,946
Norsk Hydro ASA	Metals & Mining		14,427		107,172
Orkla ASA	Food Products		8,064		57,178
Salmar ASA	Food Products		735		31,988
Schibsted ASA, Class A	Media		819		13,826
Schibsted ASA, Class B	Media		1,050		16,803
Telenor ASA	Diversified Telecommunication Services		6,720		78,729
TOMRA Systems ASA	Commercial Services & Supplies		2,688		45,172
Var Energi ASA	Oil, Gas & Consumable Fuels		4,263		10,388
Yara International ASA	Chemicals		1,722		74,631


					1,237,129

Poland 0.4%
^a,bAllegro.eu SA	Internet & Direct Marketing Retail		4,137		28,142
Bank Polska Kasa Opieki SA	Banks		1,659		32,910
^a,bDino Polska SA	Consumer Staples Distribution & Retail		504		45,755
^aInPost SA	Air Freight & Logistics		2,121		19,384
KGHM Polska Miedz SA	Metals & Mining		1,449		41,119



214	Annual Report	franklintempleton.com

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SCHEDULE OF INVESTMENTS

Franklin FTSE Europe ETF (continued)



	Industry	Shares		Value

Common Stocks (continued)
Poland (continued)
LPP SA	Textiles, Apparel & Luxury Goods		12	$	26,685
Polski Koncern Naftowy ORLEN SA	Oil, Gas & Consumable Fuels		6,237		84,317
Powszechna Kasa Oszczednosci Bank Polski SA	Banks		9,051		59,919
Powszechny Zaklad Ubezpieczen SA	Insurance		6,132		49,932
Santander Bank Polska SA	Banks		315		21,336


					409,499

Portugal 0.3%
EDP - Energias de Portugal SA	Electric Utilities		30,051		163,767
Galp Energia SGPS SA, Class B	Oil, Gas & Consumable Fuels		5,460		62,049
Jeronimo Martins SGPS SA	Consumer Staples Distribution & Retail		2,961		69,551


					295,367

Russia 0.0%^†
^a,cEvraz PLC	Metals & Mining		10,404		—

Spain 3.9%
Acciona SA	Electric Utilities		252		50,568
ACS Actividades de Construccion y Servicios SA	Construction & Engineering		2,226		70,981
^a,bAena SME SA	Transportation Infrastructure		756		122,300
^aAmadeus IT Group SA	IT Services		4,830		323,564
Banco Bilbao Vizcaya Argentaria SA	Banks		64,533		460,705
Banco Santander SA	Banks		175,455		653,075
Bankinter SA	Banks		7,266		41,255
CaixaBank SA	Banks		41,013		159,698
^bCellnex Telecom SA	Diversified Telecommunication Services		6,006		233,342
Corp. ACCIONA Energias Renovables SA	Independent Power Producers & Energy Traders		609		23,661
EDP Renovaveis SA	Independent Power Producers & Energy Traders		2,625		60,147
Enagas SA	Gas Utilities		2,625		50,479
Endesa SA	Electric Utilities		3,360		73,009
Ferrovial SA	Construction & Engineering		5,061		148,955
^aGrifols SA	Biotechnology		3,507		34,703
Iberdrola SA	Electric Utilities		63,924		797,636
Industria de Diseno Textil SA	Specialty Retail		11,277		378,584
Inmobiliaria Colonial Socimi SA	Diversified REITs		3,507		22,194
Mapfre SA	Insurance		10,185		20,560
Merlin Properties Socimi SA	Diversified REITs		3,528		30,894
Naturgy Energy Group SA	Gas Utilities		1,554		46,851
Red Electrica Corp. SA	Electric Utilities		4,578		80,575
Repsol SA	Oil, Gas & Consumable Fuels		13,713		211,335
Telefonica SA	Diversified Telecommunication Services		53,613		231,419


					4,326,490

Sweden 4.8%
Alfa Laval AB	Machinery		3,339		119,044
Assa Abloy AB, Class B	Building Products		10,437		249,915
Atlas Copco AB, Class A	Machinery		27,069		343,376
Atlas Copco AB, Class B	Machinery		16,233		186,570
Axfood AB	Consumer Staples Distribution & Retail		1,134		27,690
Beijer Ref AB	Trading Companies & Distributors		3,445		60,365
Boliden AB	Metals & Mining		2,898		113,969
Castellum AB	Real Estate Management & Development		2,835		32,917
Electrolux AB, Class B	Household Durables		2,415		29,326
Epiroc AB, Class A	Machinery		6,720		133,369
Epiroc AB, Class B	Machinery		4,011		68,252
EQT AB	Capital Markets		3,633		73,784
Essity AB, Class B	Household Products		6,531		186,680



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SCHEDULE OF INVESTMENTS

Franklin FTSE Europe ETF (continued)



	Industry	Shares		Value

Common Stocks (continued)
Sweden (continued)
^bEvolution AB	Hotels, Restaurants & Leisure		1,722	$	230,529
^aFastighets AB Balder, Class B, B	Real Estate Management & Development		6,762		27,721
Getinge AB, Class B	Health Care Equipment & Supplies		2,373		57,829
H & M Hennes & Mauritz AB, Class B	Specialty Retail		7,140		101,782
Hexagon AB, Class B	Electronic Equipment, Instruments & Components		20,118		230,581
Holmen AB, Class B	Paper & Forest Products		1,008		38,805
Husqvarna AB, Class B	Household Durables		4,494		38,935
Industrivarden AB, Class A	Financial Services		1,323		35,686
Industrivarden AB, Class C	Financial Services		1,617		43,538
Indutrade AB	Machinery		3,066		65,078
Investment AB Latour, Class B	Industrial Conglomerates		1,491		30,281
Investor AB, Class A	Financial Services		5,628		114,627
Investor AB, Class B	Financial Services		19,509		387,657
^aKinnevik AB, Class B	Financial Services		2,541		37,859
L E Lundbergforetagen AB, Class B	Financial Services		798		36,069
Lifco AB, Class B	Industrial Conglomerates		2,415		51,935
Nibe Industrier AB, Class B	Building Products		15,708		178,446
Saab AB, Class B	Aerospace & Defense		966		58,782
Sagax AB, Class B	Real Estate Management & Development		1,806		41,590
Sagax AB, Class D	Real Estate Management & Development		1,260		3,184
Sandvik AB	Machinery		11,571		245,267
Securitas AB, Class B	Commercial Services & Supplies		5,124		45,599
Skandinaviska Enskilda Banken AB, Class A	Banks		17,556		193,598
Skandinaviska Enskilda Banken AB, Class C	Banks		231		2,958
Skanska AB, Class B	Construction & Engineering		3,801		58,117
SKF AB, Class B	Machinery		4,053		79,735
SSAB AB, Class A	Metals & Mining		2,562		18,886
SSAB AB, Class B	Metals & Mining		7,056		50,299
Svenska Cellulosa AB SCA, Class B	Paper & Forest Products		6,279		82,624
Svenska Handelsbanken AB, Class A	Banks		15,834		137,183
Svenska Handelsbanken AB, Class B	Banks		399		4,279
Sweco AB, Class B	Construction & Engineering		2,100		26,631
Swedbank AB, Class A	Banks		10,773		176,770
^aSwedish Orphan Biovitrum AB	Biotechnology		1,890		44,017
Tele2 AB, Class B	Wireless Telecommunication Services		6,006		59,802
Telefonaktiebolaget LM Ericsson, Class A	Communications Equipment		399		2,551
Telefonaktiebolaget LM Ericsson, Class B	Communications Equipment		32,340		188,996
Telia Co. AB	Diversified Telecommunication Services		27,258		69,318
Trelleborg AB, Class B	Machinery		2,436		69,277
Volvo AB, Class A	Machinery		2,184		46,968
Volvo AB, Class B	Machinery		16,170		333,472
^aVolvo Car AB, Class B	Automobiles		5,733		24,987


					5,397,505

Switzerland 14.5%
ABB Ltd.	Electrical Equipment		16,248		557,933
Adecco Group AG	Professional Services		1,701		61,724
Alcon, Inc.	Health Care Equipment & Supplies		4,935		349,510
Bachem Holding AG, Class B	Life Sciences Tools & Services		336		33,617
Baloise Holding AG	Insurance		483		75,288
Banque Cantonale Vaudoise	Banks		294		27,773
Barry Callebaut AG	Food Products		42		89,145
Belimo Holding AG	Building Products		105		50,687
BKW AG	Electric Utilities		189		29,750
Chocoladefabriken Lindt & Spruengli AG	Food Products		22		260,084
Cie Financiere Richemont SA, Class A	Textiles, Apparel & Luxury Goods		5,481		875,352
Clariant AG	Chemicals		2,415		39,944
Coca-Cola HBC AG	Beverages		2,079		56,887



216	Annual Report	franklintempleton.com

FRANKLIN TEMPLETON ETF TRUST

SCHEDULE OF INVESTMENTS

Franklin FTSE Europe ETF (continued)



	Industry	Shares		Value

Common Stocks (continued)
Switzerland (continued)
Credit Suisse Group AG	Capital Markets		38,766	$	34,907
DKSH Holding AG	Professional Services		378		30,474
Emmi AG	Food Products		21		21,102
EMS-Chemie Holding AG	Chemicals		84		69,330
^aFlughafen Zurich AG	Transportation Infrastructure		210		38,504
Geberit AG	Building Products		357		198,987
Georg Fischer AG	Machinery		882		68,451
Givaudan SA	Chemicals		84		273,364
Helvetia Holding AG	Insurance		378		52,714
Julius Baer Group Ltd	Capital Markets		2,268		154,717
Kuehne & Nagel International AG	Marine Transportation		525		156,256
Logitech International SA	Technology Hardware, Storage & Peripherals		1,512		87,885
Lonza Group AG	Life Sciences Tools & Services		798		478,162
Nestle SA	Food Products		28,917		3,528,092
Novartis AG	Pharmaceuticals		21,336		1,956,218
Partners Group Holding AG	Capital Markets		231		216,650
PSP Swiss Property AG	Real Estate Management & Development		483		54,986
Roche Holding AG	Pharmaceuticals		7,434		2,123,477
Roche Holding AG	Pharmaceuticals		315		94,822
Schindler Holding AG, PC	Machinery		441		97,560
Schindler Holding AG	Machinery		210		44,365
SGS SA	Professional Services		63		138,682
SIG Group AG	Containers & Packaging		3,486		89,750
Sika AG	Chemicals		1,554		434,620
Sonova Holding AG	Health Care Equipment & Supplies		546		160,534
STMicroelectronics NV	Semiconductors & Semiconductor Equipment		6,783		360,769
Straumann Holding AG	Health Care Equipment & Supplies		1,134		169,253
Swatch Group AG	Textiles, Apparel & Luxury Goods		315		108,063
Swatch Group AG	Textiles, Apparel & Luxury Goods		483		30,559
Swiss Life Holding AG	Insurance		336		207,143
Swiss Prime Site AG	Real Estate Management & Development		798		66,431
Swiss Re AG	Insurance		3,087		317,097
Swisscom AG	Diversified Telecommunication Services		273		174,280
Tecan Group AG	Life Sciences Tools & Services		126		55,059
Temenos AG	Software		651		45,094
UBS Group AG	Capital Markets		30,660		647,399
^bVAT Group AG	Machinery		273		98,077
Zurich Insurance Group AG	Insurance		1,596		764,675


					16,156,202

United Kingdom 19.2%
3i Group PLC	Capital Markets		10,185		212,196
abrdn PLC	Capital Markets		21,126		53,157
Admiral Group PLC	Insurance		3,108		78,318
Allfunds Group PLC	Capital Markets		3,633		23,998
Anglo American PLC	Metals & Mining		12,936		428,339
Ashtead Group PLC	Trading Companies & Distributors		4,683		287,083
Associated British Foods PLC	Food Products		3,696		88,656
AstraZeneca PLC	Pharmaceuticals		15,834		2,198,995
^bAuto Trader Group PLC	Interactive Media & Services		9,807		74,720
Aviva PLC	Insurance		29,904		149,452
B&M European Value Retail SA	Broadline Retail		9,891		58,960
BAE Systems PLC	Aerospace & Defense		32,760		398,013
Barclays PLC	Banks		169,092		304,830
Barratt Developments PLC	Household Durables		10,773		62,139
Beazley PLC	Insurance		7,077		52,283
Berkeley Group Holdings PLC	Household Durables		1,134		58,848
BP PLC	Oil, Gas & Consumable Fuels		189,714		1,198,193



franklintempleton.com	Annual Report	217

FRANKLIN TEMPLETON ETF TRUST

SCHEDULE OF INVESTMENTS

Franklin FTSE Europe ETF (continued)



	Industry	Shares		Value

Common Stocks (continued)
United Kingdom (continued)
British American Tobacco PLC	Tobacco		24,024	$	843,756
British Land Co. PLC	Diversified REITs		9,744		46,722
BT Group PLC	Diversified Telecommunication Services		74,592		134,470
Bunzl PLC	Trading Companies & Distributors		3,633		137,321
Burberry Group PLC	Textiles, Apparel & Luxury Goods		4,032		128,922
Centrica PLC	Multi-Utilities		62,727		82,251
CNH Industrial NV	Machinery		10,647		162,869
Compass Group PLC	Hotels, Restaurants & Leisure		18,732		470,867
^bConvaTec Group PLC	Health Care Equipment & Supplies		17,787		50,275
Croda International PLC	Chemicals		1,470		118,106
Dechra Pharmaceuticals PLC	Pharmaceuticals		1,176		38,533
Derwent London PLC	Diversified REITs		1,155		33,675
Diageo PLC	Beverages		23,814		1,064,136
Direct Line Insurance Group PLC	Insurance		14,427		24,528
DS Smith PLC	Containers & Packaging		13,545		52,672
Endeavour Mining PLC	Metals & Mining		1,932		47,729
Ferguson PLC	Trading Companies & Distributors		2,226		293,124
GSK PLC	Pharmaceuticals		42,840		756,934
^aHaleon PLC	Personal Products		53,151		211,614
Halma PLC	Electronic Equipment, Instruments & Components		4,095		112,860
Hargreaves Lansdown PLC	Capital Markets		4,011		39,645
Hikma Pharmaceuticals PLC	Pharmaceuticals		1,785		36,968
Howden Joinery Group PLC	Trading Companies & Distributors		5,796		50,022
HSBC Holdings PLC	Banks		215,838		1,467,000
IMI PLC	Machinery		2,709		51,382
Imperial Brands PLC	Tobacco		9,954		229,414
Informa PLC	Media		15,057		128,943
InterContinental Hotels Group PLC	Hotels, Restaurants & Leisure		1,890		124,136
Intermediate Capital Group PLC	Capital Markets		2,940		44,240
^aInternational Consolidated Airlines Group SA	Airlines		12,012		22,424
Intertek Group PLC	Professional Services		1,743		87,348
ITV PLC	Media		39,837		40,784
J Sainsbury PLC	Consumer Staples Distribution & Retail		18,522		63,827
JD Sports Fashion PLC	Specialty Retail		26,019		57,184
Johnson Matthey PLC	Chemicals		1,974		48,412
^a,bJust Eat Takeaway.com NV	Internet & Direct Marketing Retail		2,142		40,795
Kingfisher PLC	Specialty Retail		20,937		67,618
Land Securities Group PLC	Diversified REITs		8,148		62,583
Legal & General Group PLC	Insurance		63,567		187,769
Lloyds Banking Group PLC	Banks		717,969		423,227
London Stock Exchange Group PLC	Capital Markets		4,179		406,549
M&G PLC	Financial Services		23,646		57,889
Melrose Industries PLC	Industrial Conglomerates		43,638		89,837
Mondi PLC	Paper & Forest Products		5,187		82,221
National Grid PLC	Multi-Utilities		39,060		529,563
NatWest Group PLC	Banks		58,044		189,182
Next PLC	Broadline Retail		1,323		107,506
^a,cNMC Health PLC	Health Care Providers & Services		1,159		—
^aOcado Group PLC	Consumer Staples Distribution & Retail		6,573		43,480
Pearson PLC	Media		7,686		80,246
^a,bPepco Group NV	Broadline Retail		1,554		14,970
Persimmon PLC	Household Durables		3,360		52,180
Phoenix Group Holdings PLC	Insurance		7,791		52,636
Prudential PLC	Insurance		29,400		400,595
Reckitt Benckiser Group PLC	Household Products		7,665		583,618
RELX PLC	Professional Services		20,538		664,820
Renishaw PLC	Electronic Equipment, Instruments & Components		357		18,071



218	Annual Report	franklintempleton.com

FRANKLIN TEMPLETON ETF TRUST

SCHEDULE OF INVESTMENTS

Franklin FTSE Europe ETF (continued)



	Industry	Shares		Value

Common Stocks (continued)
United Kingdom (continued)
Rentokil Initial PLC	Commercial Services & Supplies		27,111	$	198,313
Rightmove PLC	Interactive Media & Services		8,694		60,521
^aRolls-Royce Holdings PLC	Aerospace & Defense		90,027		165,880
RS GROUP PLC	Trading Companies & Distributors		5,145		58,144
Sage Group PLC	Software		10,878		104,238
Schroders PLC	Capital Markets		9,324		53,032
Segro PLC	Diversified REITs		12,852		121,978
Severn Trent PLC	Water Utilities		2,646		94,191
Smith & Nephew PLC	Health Care Equipment & Supplies		9,387		130,226
Smiths Group PLC	Industrial Conglomerates		3,801		80,671
Spirax-Sarco Engineering PLC	Machinery		798		116,972
SSE PLC	Electric Utilities		11,634		259,359
St. James’s Place PLC	Capital Markets		5,754		86,157
Standard Chartered PLC	Banks		25,410		192,971
Tate & Lyle PLC	Food Products		4,284		41,560
Taylor Wimpey PLC	Household Durables		38,409		56,490
Tesco PLC	Consumer Staples Distribution & Retail		77,553		254,781
Unilever PLC	Personal Products		26,922		1,394,755
UNITE Group PLC	Diversified REITs		3,381		40,111
United Utilities Group PLC	Water Utilities		7,245		94,956
Vodafone Group PLC	Wireless Telecommunication Services		252,945		279,289
Weir Group PLC	Machinery		2,772		63,716
Whitbread PLC	Hotels, Restaurants & Leisure		2,142		79,110
^aWise PLC, Class A	IT Services		7,644		51,397
WPP PLC	Media		11,256		133,413


					21,398,859

United States 0.7%
Holcim AG, Class B	Construction Materials		5,838		376,398
Stellantis NV	Automobiles		22,260		404,749


					781,147

Total Common Stocks (Cost $113,038,895)					109,500,619

Preferred Stocks 0.6%
Germany 0.6%
^dBayerische Motoren Werke AG, 6.172%, pfd.	Automobiles		609		62,393
^dFuchs Petrolub SE, 2.744%, pfd.	Chemicals		735		29,977
^dHenkel AG & Co. KGaA, 2.567%, pfd.	Household Products		1,785		139,747
^dSartorius AG, 0.372%, pfd.	Health Care Equipment & Supplies		273		114,785
^dSixt SE, 4.98%, pfd.	Ground Transportation		168		13,634
^dVolkswagen AG, 21.188%, pfd.	Automobiles		2,163		295,253


					655,789



franklintempleton.com	Annual Report	219

FRANKLIN TEMPLETON ETF TRUST

SCHEDULE OF INVESTMENTS

Franklin FTSE Europe ETF (continued)



	Industry	Shares		Value

Preferred Stocks (continued)
Spain 0.0%^†
^aGrifols SA, Class B, pfd.,B	Biotechnology		2,730	$	19,487

Total Preferred Stocks (Cost $751,406)					675,276

Total Investments (Cost $113,790,301) 98.8%					110,175,895
Other Assets, less Liabilities 1.2%					1,382,253

Net Assets 100.0%				$	111,558,148

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

^aNon-income producing.

^cFair valued using significant unobservable inputs. Note 8 regarding fair value measurements.

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

At March 31, 2023, the Fund had the following futures contracts outstanding. See Note 1(c).


Futures Contracts

Description	Type		Number of Contracts		Notional Amount*		Expiration Date		Value/Unrealized Appreciation (Depreciation)

Index Contracts
EURO STOXX 50 Index		Long		18	$	833,285		6/16/23	$	29,100
FTSE 100 Index		Long		4		377,810		6/16/23		1,714

Total Futures Contracts									$	30,814

* As of year end.

See Note 7 regarding other derivative information.

See Abbreviations on page 355.



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,

	2023			2022			2021			2020			2019

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

Net asset value, beginning of year		$27.12			$25.72			$19.15			$22.81			$23.88

Income from investment operations^a:

Net investment income^b		0.86			0.76			0.59			0.73			0.79

Net realized and unrealized gains (losses)		0.65			1.51			6.45			(2.92	)		0.62

Total from investment operations		1.51			2.27			7.04			(2.19	)		1.41

Less distributions from:

Net investment income		(0.64	)		(0.87	)		(0.47	)		(1.47	)		(0.38	)

Net realized gains		(4.39	)		—			—			—			(2.10	)

Total distributions		(5.03	)		(0.87	)		(0.47	)		(1.47	)		(2.48	)

Net asset value, end of year		$23.60			$27.12			$25.72			$19.15			$22.81

Total return^c		7.53%			8.75%			36.92%			(10.67)%			6.98%

Ratios to average net assets^d

Expenses before waiver and payments by affiliates		0.15%^e			0.09%			0.09%			0.09%			0.09%

Expenses net of waiver and payments by affiliates		0.15%^e			0.09%			0.09%			0.09%			0.09%

Net investment income		3.44%			2.77%			2.58%			3.10%			3.28%

Supplemental data

Net assets, end of year (000’s)		$14,163			$21,695			$15,429			$3,831			$4,563

Portfolio turnover rate^f		22.30%^g			11.67%^g			12.87%^g			14.81%^g			26.81%

^aThe amount shown for a share outstanding throughout the period may not correlate with the Statement of Operations for the period due to the timing of sales and repurchases of Creation Unit Fund shares in relation to income earned and/or fluctuating fair value of the investments of the Fund. ^bBased on average daily shares outstanding. ^cTotal return is not annualized for periods less than one year. Total return is calculated assuming an initial investment made at the net asset value at the beginning of the period, reinvestment of all dividends and distributions at net asset value during the period, and redemption at net asset value on the last day of the period. ^dRatios are annualized for periods less than one year, except for non-recurring expenses, if any. ^eExpense ratios are including non-recurring European Union tax reclaim contingent fees that were incurred by the Fund during the period. Without these fees, the gross and net expense ratios would have been 0.09% and 0.09%, respectively, for the year ended March 31, 2023. ^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:		22.37%			11.67%			12.87%			14.81%			—



franklintempleton.com	The accompanying notes are an integral part of these financial statements. \| Annual Report	221

FRANKLIN TEMPLETON ETF TRUST

Schedule of Investments, March 31, 2023

Franklin FTSE Europe Hedged ETF



	Industry	Shares		Value

Common Stocks 98.4%

Australia 1.4%
Glencore PLC	Metals & Mining		17,226	$	98,956
Rio Tinto PLC	Metals & Mining		1,485		100,583


					199,539

Austria 0.4%
ANDRITZ AG	Machinery		99		6,701
Erste Group Bank AG	Banks		453		15,011
OMV AG	Oil, Gas & Consumable Fuels		195		8,953
^aRaiffeisen Bank International AG	Banks		177		2,723
Telekom Austria AG	Diversified Telecommunication Services		207		1,563
Verbund AG	Electric Utilities		93		8,083
voestalpine AG	Metals & Mining		162		5,506


					48,540

Belgium 1.4%
Ackermans & van Haaren NV	Financial Services		30		4,954
Ageas SA	Insurance		249		10,783
Anheuser-Busch InBev SA	Beverages		1,176		78,359
D’ieteren Group	Distributors		27		5,248
Elia Group SA	Electric Utilities		51		6,738
Groupe Bruxelles Lambert NV	Financial Services		138		11,770
KBC Group NV	Banks		372		25,583
Lotus Bakeries NV	Food Products		1		7,008
Proximus SADP	Diversified Telecommunication Services		165		1,594
Sofina SA	Financial Services		21		4,709
Solvay SA	Chemicals		93		10,645
UCB SA	Pharmaceuticals		165		14,779
Umicore SA	Chemicals		279		9,460
Warehouses De Pauw CVA	Diversified REITs		213		6,322


					197,952

Bermuda 0.1%
Hiscox Ltd.	Insurance		474		6,500


Chile 0.1%
Antofagasta PLC	Metals & Mining		462		9,031


Denmark 4.4%
AP Moller - Maersk AS, Class A	Marine Transportation		4		7,094
AP Moller - Maersk AS, Class B	Marine Transportation		6		10,890
Carlsberg AS, Class B	Beverages		126		19,534
Chr Hansen Holding AS	Chemicals		141		10,714
Coloplast AS, Class B	Health Care Equipment & Supplies		183		24,069
^aDanske Bank AS	Banks		888		17,873
^aDemant AS	Health Care Equipment & Supplies		126		4,414
DSV AS	Air Freight & Logistics		240		46,431
^aGenmab AS	Biotechnology		90		33,984
H Lundbeck AS	Pharmaceuticals		399		1,849
^aH Lundbeck AS, Class A	Pharmaceuticals		102		433
Novo Nordisk AS, Class B	Pharmaceuticals		2,133		337,781
Novozymes AS, Class B	Chemicals		270		13,818
^bOrsted AS	Electric Utilities		261		22,208
Pandora AS	Textiles, Apparel & Luxury Goods		120		11,470
ROCKWOOL AS, Class B	Building Products		9		2,206
Royal Unibrew AS	Beverages		60		5,233
Tryg AS	Insurance		486		10,625
Vestas Wind Systems AS	Electrical Equipment		1,368		39,704

					620,330



222	Annual Report	franklintempleton.com

FRANKLIN TEMPLETON ETF TRUST

SCHEDULE OF INVESTMENTS

Franklin FTSE Europe Hedged ETF (continued)



	Industry	Shares		Value

Common Stocks (continued)
Finland 1.9%
Elisa Oyj	Diversified Telecommunication Services		210	$	12,676
Fortum OYJ	Electric Utilities		576		8,833
Huhtamaki OYJ	Containers & Packaging		132		4,905
Kesko OYJ, Class B	Consumer Staples Distribution & Retail		345		7,423
Kojamo Oyj	Real Estate Management & Development		279		3,289
Kone OYJ, Class B	Machinery		441		22,998
Metso Outotec OYJ	Machinery		825		8,999
Neste OYJ	Oil, Gas & Consumable Fuels		567		27,986
Nokia OYJ	Communications Equipment		7,665		37,604
Nordea Bank Abp	Banks		4,716		50,433
Orion OYJ, Class B	Pharmaceuticals		135		6,041
Sampo Oyj, Class A	Insurance		633		29,902
Stora Enso OYJ, Class R	Paper & Forest Products		783		10,191
UPM-Kymmene OYJ	Paper & Forest Products		738		24,816
Valmet Oyj	Machinery		225		7,294
Wartsila OYJ Abp	Machinery		705		6,655


					270,045

France 17.3%
^aAccor SA	Hotels, Restaurants & Leisure		255		8,303
^aAeroports de Paris	Transportation Infrastructure		45		6,436
Air Liquide SA	Chemicals		699		117,104
Airbus SE	Aerospace & Defense		762		102,060
^bALD SA	Ground Transportation		189		2,218
Alstom SA	Machinery		414		11,281
^bAmundi SA	Capital Markets		84		5,298
Arkema SA	Chemicals		87		8,583
AXA SA	Insurance		2,550		78,030
BioMerieux	Health Care Equipment & Supplies		60		6,323
BNP Paribas SA	Banks		1,503		90,154
Bollore SE	Entertainment		1,320		8,160
Bouygues SA	Construction & Engineering		285		9,627
Bureau Veritas SA	Professional Services		381		10,957
Capgemini SE	IT Services		216		40,070
Carrefour SA	Consumer Staples Distribution & Retail		819		16,577
Cie de Saint-Gobain	Building Products		624		35,470
Cie Generale des Etablissements Michelin SCA	Automobile Components		951		29,080
Covivio SA	Diversified REITs		69		4,018
Credit Agricole SA	Banks		1,638		18,504
Danone SA	Food Products		831		51,742
Dassault Aviation SA	Aerospace & Defense		33		6,547
Dassault Systemes SE	Software		912		37,528
Edenred	IT Services		339		20,087
Eiffage SA	Construction & Engineering		96		10,403
Engie SA	Multi-Utilities		2,265		35,864
EssilorLuxottica SA	Textiles, Apparel & Luxury Goods		405		73,042
Eurazeo SE	Financial Services		69		4,910
Gecina SA	Diversified REITs		66		6,851
Getlink SE	Transportation Infrastructure		492		8,120
Hermes International	Textiles, Apparel & Luxury Goods		42		85,056
ICADE	Diversified REITs		42		1,978
Ipsen SA	Pharmaceuticals		48		5,293
^aJCDecaux SE	Media		93		1,951
Kering SA	Textiles, Apparel & Luxury Goods		96		62,580
Klepierre SA	Diversified REITs		255		5,776
^bLa Francaise des Jeux SAEM	Hotels, Restaurants & Leisure		120		5,005
Legrand SA	Electrical Equipment		366		33,434
L’Oreal SA	Personal Products		336		150,126



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	Industry	Shares		Value

Common Stocks (continued)
France (continued)
LVMH Moet Hennessy Louis Vuitton SE	Textiles, Apparel & Luxury Goods		336	$	308,246
^bNeoen SA	Independent Power Producers & Energy Traders		76		2,390
Orange SA	Diversified Telecommunication Services		2,607		31,020
Pernod Ricard SA	Beverages		279		63,261
Publicis Groupe SA	Media		306		23,864
Remy Cointreau SA	Beverages		33		6,023
^aRenault SA	Automobiles		273		11,152
Rexel SA	Trading Companies & Distributors		342		8,156
Safran SA	Aerospace & Defense		474		70,315
Sanofi	Pharmaceuticals		1,485		161,725
Sartorius Stedim Biotech	Life Sciences Tools & Services		33		10,110
Schneider Electric SE	Electrical Equipment		726		121,217
SCOR SE	Insurance		213		4,846
SEB SA	Household Durables		42		4,782
Societe Generale SA	Banks		1,020		23,033
Sodexo SA	Hotels, Restaurants & Leisure		120		11,741
^aSOITEC	Semiconductors & Semiconductor Equipment		33		5,292
Teleperformance	Professional Services		81		19,510
Thales SA	Aerospace & Defense		135		19,999
TotalEnergies SE	Oil, Gas & Consumable Fuels		3,102		183,202
^aUbisoft Entertainment SA	Entertainment		132		3,508
^aUnibail-Rodamco-Westfield	Diversified REITs		135		7,243
Valeo SA	Automobile Components		324		6,657
Veolia Environnement SA	Multi-Utilities		864		26,659
Vinci SA	Construction & Engineering		678		77,875
Vivendi SE	Media		975		9,851
Wendel SE	Financial Services		39		4,125
^a,bWorldline SA	IT Services		333		14,150


					2,454,498

Germany 12.2%
adidas AG	Textiles, Apparel & Luxury Goods		228		40,322
Allianz SE	Insurance		549		126,927
BASF SE	Chemicals		1,248		65,571
Bayer AG	Pharmaceuticals		1,341		85,551
Bayerische Motoren Werke AG	Automobiles		432		47,376
Bechtle AG	IT Services		117		5,592
Beiersdorf AG	Personal Products		135		17,593
Brenntag SE	Trading Companies & Distributors		210		15,788
Carl Zeiss Meditec AG	Health Care Equipment & Supplies		51		7,092
^aCommerzbank AG	Banks		1,440		15,179
Continental AG	Automobile Components		153		11,456
^bCovestro AG	Chemicals		240		9,942
^aCTS Eventim AG & Co. KGaA	Entertainment		84		5,243
^aDaimler Truck Holding AG	Machinery		570		19,266
^a,bDelivery Hero SE	Internet & Direct Marketing Retail		255		8,691
Deutsche Bank AG	Capital Markets		2,805		28,512
Deutsche Boerse AG	Capital Markets		249		48,546
^aDeutsche Lufthansa AG	Airlines		852		9,497
Deutsche Post AG	Air Freight & Logistics		1,320		61,796
Deutsche Telekom AG	Diversified Telecommunication Services		4,617		112,111
Deutsche Wohnen SE	Real Estate Management & Development		57		1,120
^bDWS Group GmbH & Co. KGaA	Capital Markets		42		1,292
E.ON SE	Multi-Utilities		3,021		37,745
Evonik Industries AG	Chemicals		270		5,679
Fielmann AG	Specialty Retail		39		1,626
^aFraport AG Frankfurt Airport Services Worldwide	Transportation Infrastructure		48		2,415
Fresenius Medical Care AG & Co. KGaA	Health Care Providers & Services		270		11,470



224	Annual Report	franklintempleton.com

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Franklin FTSE Europe Hedged ETF (continued)



	Industry	Shares			Value

Common Stocks (continued)
Germany (continued)
Fresenius SE & Co. KGaA	Health Care Providers & Services		558		$	15,065
Fuchs Petrolub SE	Chemicals		33			1,131
GEA Group AG	Machinery		231			10,528
Hannover Rueck SE	Insurance		78			15,283
HeidelbergCement AG	Construction Materials		198			14,469
Hella GmbH & Co. KGaA	Automobile Components		30			2,612
^aHelloFresh SE	Internet & Direct Marketing Retail		231			5,499
Henkel AG & Co. KGaA	Household Products		141			10,264
HOCHTIEF AG	Construction & Engineering		33			2,756
Infineon Technologies AG	Semiconductors & Semiconductor Equipment		1,776			72,705
KION Group AG	Machinery		96			3,714
Knorr-Bremse AG	Machinery		93			6,192
LANXESS AG	Chemicals		114			4,686
LEG Immobilien SE	Real Estate Management & Development		105			5,759
Mercedes-Benz Group AG	Automobiles		1,173			90,202
Merck KGaA	Pharmaceuticals		174			32,430
^aMETRO AG	Consumer Staples Distribution & Retail		162			1,394
MTU Aero Engines AG	Aerospace & Defense		72			18,039
Muenchener Rueckversicherungs-Gesellschaft AG in Muenchen	Insurance		192			67,273
Nemetschek SE	Software		78			5,363
Puma SE	Textiles, Apparel & Luxury Goods		132			8,154
Rational AG	Machinery		7			4,692
Rheinmetall AG	Industrial Conglomerates		60			17,835
RWE AG	Multi-Utilities		855			36,822
SAP SE	Software		1,512			190,653
Sartorius AG	Health Care Equipment & Supplies		4			1,380
^bScout24 SE	Interactive Media & Services		105			6,240
Siemens AG	Industrial Conglomerates		1,017			164,920
^aSiemens Energy AG	Electrical Equipment		612			13,458
^bSiemens Healthineers AG	Health Care Equipment & Supplies		375			21,601
Sixt SE	Ground Transportation		18			2,398
Symrise AG	Chemicals		180			19,595
^aTalanx AG	Insurance		75			3,479
Telefonica Deutschland Holding AG	Diversified Telecommunication Services		1,158			3,569
^athyssenkrupp AG	Metals & Mining		714			5,132
Traton SE	Machinery		81			1,587
United Internet AG	Diversified Telecommunication Services		120			2,069
Volkswagen AG	Automobiles		39			6,695
Vonovia SE	Real Estate Management & Development		951			17,916
Wacker Chemie AG	Chemicals		21			3,409
^a,bZalando SE	Internet & Direct Marketing Retail		303	��		12,687


						1,733,053

Ireland 1.5%
AIB Group PLC	Banks		1,509			6,135
Bank of Ireland Group PLC	Banks		1,473			14,922
CRH PLC	Construction Materials		1,020			51,475
DCC PLC	Industrial Conglomerates		132			7,700
Experian PLC	Professional Services		1,254			41,244
^aFlutter Entertainment PLC	Hotels, Restaurants & Leisure		240			43,414
Glanbia PLC	Food Products		249			3,614
Kerry Group PLC, Class A	Food Products		207			20,654
Kingspan Group PLC	Building Products		207			14,177
Smurfit Kappa Group PLC	Containers & Packaging		357			12,916


						216,251



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Franklin FTSE Europe Hedged ETF (continued)



	Industry	Shares		Value

Common Stocks (continued)
Isle Of Man 0.1%
Entain PLC	Hotels, Restaurants & Leisure		789	$	12,258

Italy 3.4%
A2A SpA	Multi-Utilities		2,160		3,450
Amplifon SpA	Health Care Providers & Services		183		6,350
Assicurazioni Generali SpA	Insurance		1,848		36,903
Banca Mediolanum SpA	Financial Services		333		3,024
Banco BPM SpA	Banks		1,746		6,838
Buzzi Unicem SpA	Construction Materials		114		2,769
Davide Campari-Milano NV	Beverages		660		8,067
De’ Longhi SpA	Household Durables		96		2,197
DiaSorin SpA	Health Care Equipment & Supplies		30		3,164
Enel SpA	Electric Utilities		10,602		64,815
Eni SpA	Oil, Gas & Consumable Fuels		3,015		42,275
Ferrari NV	Automobiles		165		44,691
FinecoBank Banca Fineco SpA	Banks		825		12,674
Hera SpA	Multi-Utilities		1,107		3,129
^bInfrastrutture Wireless Italiane SpA	Diversified Telecommunication Services		441		5,807
Interpump Group SpA	Machinery		105		5,892
Intesa Sanpaolo SpA	Banks		22,116		56,886
Italgas SpA	Gas Utilities		696		4,253
Leonardo SpA	Aerospace & Defense		570		6,701
Mediobanca Banca di Credito Finanziario SpA	Banks		867		8,730
Moncler SpA	Textiles, Apparel & Luxury Goods		276		19,053
^a,bNexi SpA	IT Services		804		6,539
^bPirelli & C SpA	Automobile Components		687		3,450
^bPoste Italiane SpA	Insurance		618		6,319
Prysmian SpA	Electrical Equipment		360		15,136
Recordati Industria Chimica e Farmaceutica SpA	Pharmaceuticals		138		5,841
Reply SpA	IT Services		33		4,141
Snam SpA	Gas Utilities		3,021		16,046
^aTelecom Italia SpA	Diversified Telecommunication Services		13,335		4,407
^aTelecom Italia SpA	Diversified Telecommunication Services		7,782		2,508
Tenaris SA	Energy Equipment & Services		639		9,095
Terna - Rete Elettrica Nazionale	Electric Utilities		1,953		16,054
UniCredit SpA	Banks		2,559		48,404
UnipolSai Assicurazioni SpA	Insurance		480		1,214


					486,822

Luxembourg 0.2%
ArcelorMittal SA	Metals & Mining		645		19,530
Eurofins Scientific SE	Life Sciences Tools & Services		168		11,251
RTL Group SA	Media		48		2,369
^aSUSE SA	Software		63		1,144


					34,294

Mexico 0.0%^†
Fresnillo PLC	Metals & Mining		237		2,186

Netherlands 9.0%
Aalberts NV	Machinery		138		6,508
^bABN AMRO Bank NV	Banks		534		8,482
^a,bAdyen NV	IT Services		41		64,999
Aegon NV	Insurance		2,268		9,736
Akzo Nobel NV	Chemicals		237		18,534
^aArgenx SE	Biotechnology		75		27,762
ASM International NV	Semiconductors & Semiconductor Equipment		63		25,455
ASML Holding NV	Semiconductors & Semiconductor Equipment		549		372,907
ASR Nederland NV	Insurance		189		7,544



226	Annual Report	franklintempleton.com

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SCHEDULE OF INVESTMENTS

Franklin FTSE Europe Hedged ETF (continued)



	Industry	Shares		Value

Common Stocks (continued)
Netherlands (continued)
BE Semiconductor Industries NV	Semiconductors & Semiconductor Equipment		105	$	9,138
^bCTP NV	Real Estate Management & Development		165		2,137
^bEuronext NV	Capital Markets		108		8,282
^aEXOR NV	Financial Services		141		11,618
Heineken Holding NV	Beverages		165		15,157
Heineken NV	Beverages		339		36,484
IMCD NV	Trading Companies & Distributors		78		12,745
ING Groep NV	Banks		4,941		58,674
JDE Peet’s NV	Food Products		111		3,234
Koninklijke Ahold Delhaize NV	Consumer Staples Distribution & Retail		1,299		44,442
Koninklijke DSM NV	Chemicals		231		27,280
Koninklijke KPN NV	Diversified Telecommunication Services		4,446		15,728
Koninklijke Philips NV	Health Care Equipment & Supplies		1,200		21,950
Koninklijke Vopak NV	Oil, Gas & Consumable Fuels		90		3,177
NN Group NV	Insurance		393		14,287
OCI NV	Chemicals		135		4,585
Prosus NV	Internet & Direct Marketing Retail		1,008		78,784
^aQIAGEN NV	Life Sciences Tools & Services		297		13,523
Randstad NV	Professional Services		150		8,898
Shell PLC	Oil, Gas & Consumable Fuels		9,501		271,191
^bSignify NV	Electrical Equipment		168		5,593
Universal Music Group NV	Entertainment		1,017		25,750
Wolters Kluwer NV	Professional Services		342		43,232


					1,277,816

Nigeria 0.0%^†
^bAirtel Africa PLC	Wireless Telecommunication Services		1,425		1,876

Norway 1.1%
^aAdevinta ASA, Class B	Interactive Media & Services		369		2,616
Aker ASA, Class A	Financial Services		33		2,117
Aker BP ASA	Oil, Gas & Consumable Fuels		420		10,278
^a,bAutoStore Holdings Ltd.	Machinery		1,041		2,234
DNB Bank ASA	Banks		1,392		24,901
Equinor ASA	Oil, Gas & Consumable Fuels		1,260		35,936
Gjensidige Forsikring ASA	Insurance		243		3,975
Kongsberg Gruppen ASA	Aerospace & Defense		105		4,239
Leroy Seafood Group ASA	Food Products		309		1,602
Mowi ASA	Food Products		603		11,135
^aNordic Semiconductor ASA	Semiconductors & Semiconductor Equipment		225		3,427
Norsk Hydro ASA	Metals & Mining		1,866		13,862
Orkla ASA	Food Products		1,032		7,317
Salmar ASA	Food Products		93		4,048
Schibsted ASA, Class A	Media		99		1,671
Schibsted ASA, Class B	Media		108		1,728
Telenor ASA	Diversified Telecommunication Services		849		9,947
TOMRA Systems ASA	Commercial Services & Supplies		312		5,243
Var Energi ASA	Oil, Gas & Consumable Fuels		495		1,206
Yara International ASA	Chemicals		216		9,361


					156,843

Poland 0.4%
^a,bAllegro.eu SA	Internet & Direct Marketing Retail		534		3,632
Bank Polska Kasa Opieki SA	Banks		204		4,047
^a,bDino Polska SA	Consumer Staples Distribution & Retail		63		5,719
^aInPost SA	Air Freight & Logistics		255		2,331
KGHM Polska Miedz SA	Metals & Mining		180		5,108
LPP SA	Textiles, Apparel & Luxury Goods		2		4,448



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Franklin FTSE Europe Hedged ETF (continued)



	Industry	Shares		Value

Common Stocks (continued)
Poland (continued)
Polski Koncern Naftowy ORLEN SA	Oil, Gas & Consumable Fuels		792	$	10,707
Powszechna Kasa Oszczednosci Bank Polski SA	Banks		1,152		7,626
Powszechny Zaklad Ubezpieczen SA	Insurance		807		6,571
Santander Bank Polska SA	Banks		39		2,642


					52,831

Portugal 0.3%
EDP - Energias de Portugal SA	Electric Utilities		3,819		20,812
Galp Energia SGPS SA, Class B	Oil, Gas & Consumable Fuels		696		7,909
Jeronimo Martins SGPS SA	Consumer Staples Distribution & Retail		351		8,245

					36,966

Russia 0.0%^†
^aEvraz PLC	Metals & Mining		1,168		—

Spain 3.9%
Acciona SA	Electric Utilities		33		6,622
ACS Actividades de Construccion y Servicios SA	Construction & Engineering		286		9,120
^a,bAena SME SA	Transportation Infrastructure		93		15,045
^aAmadeus IT Group SA	IT Services		612		40,998
Banco Bilbao Vizcaya Argentaria SA	Banks		8,217		58,662
Banco Santander SA	Banks		22,329		83,112
Bankinter SA	Banks		879		4,991
CaixaBank SA	Banks		5,301		20,641
^bCellnex Telecom SA	Diversified Telecommunication Services		765		29,721
Corp. ACCIONA Energias Renovables SA	Independent Power Producers & Energy Traders		75		2,914
EDP Renovaveis SA	Independent Power Producers & Energy Traders		318		7,286
Enagas SA	Gas Utilities		351		6,750
Endesa SA	Electric Utilities		432		9,387
Ferrovial SA	Construction & Engineering		651		19,160
^aGrifols SA	Biotechnology		441		4,364
Iberdrola SA	Electric Utilities		8,136		101,520
Industria de Diseno Textil SA	Specialty Retail		1,434		48,141
Inmobiliaria Colonial Socimi SA	Diversified REITs		477		3,019
Mapfre SA	Insurance		1,338		2,701
Merlin Properties Socimi SA	Diversified REITs		495		4,335
Naturgy Energy Group SA	Gas Utilities		195		5,879
Red Electrica Corp. SA	Electric Utilities		579		10,191
Repsol SA	Oil, Gas & Consumable Fuels		1,743		26,862
Telefonica SA	Diversified Telecommunication Services		6,804		29,369


					550,790

Sweden 4.9%
Alfa Laval AB	Machinery		420		14,974
Assa Abloy AB, Class B	Building Products		1,323		31,679
Atlas Copco AB, Class A	Machinery		3,447		43,726
Atlas Copco AB, Class B	Machinery		2,055		23,619
Axfood AB	Consumer Staples Distribution & Retail		153		3,736
Beijer Ref AB	Trading Companies & Distributors		432		7,570
Boliden AB	Metals & Mining		381		14,984
Castellum AB	Real Estate Management & Development		342		3,971
Electrolux AB, Class B	Household Durables		282		3,424
Epiroc AB, Class A	Machinery		846		16,790
Epiroc AB, Class B	Machinery		513		8,729
EQT AB	Capital Markets		462		9,383
Essity AB, Class B	Household Products		828		23,667
^bEvolution AB	Hotels, Restaurants & Leisure		216		28,917
^aFastighets AB Balder, Class B, B	Real Estate Management & Development		858		3,517
Getinge AB, Class B	Health Care Equipment & Supplies		297		7,238



228	Annual Report	franklintempleton.com

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SCHEDULE OF INVESTMENTS

Franklin FTSE Europe Hedged ETF (continued)



		Industry	Shares		Value

Common Stocks (continued)
Sweden (continued)
H & M Hennes & Mauritz AB, Class B		Specialty Retail		900	$	12,830
Hexagon AB, Class B		Electronic Equipment, Instruments & Components		2,556		29,296
Holmen AB, Class B		Paper & Forest Products		129		4,966
Husqvarna AB, Class B		Household Durables		582		5,042
Industrivarden AB, Class A		Financial Services		186		5,017
Industrivarden AB, Class C		Financial Services		201		5,412
Indutrade AB		Machinery		381		8,087
Investment AB Latour, Class B		Industrial Conglomerates		207		4,204
Investor AB, Class A		Financial Services		717		14,603
Investor AB, Class B		Financial Services		2,481		49,299
^aKinnevik AB, Class B		Financial Services		348		5,185
L E Lundbergforetagen AB, Class B		Financial Services		105		4,746
Lifco AB, Class B		Industrial Conglomerates		303		6,516
Nibe Industrier AB, Class B		Building Products		1,968		22,357
Saab AB, Class B		Aerospace & Defense		120		7,302
Sagax AB, Class B		Real Estate Management & Development		231		5,320
Sagax AB, Class D		Real Estate Management & Development		165		417
Sandvik AB		Machinery		1,467		31,096
Securitas AB, Class B		Commercial Services & Supplies		648		5,767
Skandinaviska Enskilda Banken AB, Class A		Banks		2,217		24,448
Skandinaviska Enskilda Banken AB, Class C		Banks		30		384
Skanska AB, Class B		Construction & Engineering		489		7,477
SKF AB, Class B		Machinery		513		10,092
SSAB AB, Class A		Metals & Mining		333		2,455
SSAB AB, Class B		Metals & Mining		918		6,544
Svenska Cellulosa AB SCA, Class B		Paper & Forest Products		795		10,461
Svenska Handelsbanken AB, Class A		Banks		2,004		17,362
Svenska Handelsbanken AB, Class B		Banks		60		643
Sweco AB, Class B		Construction & Engineering		282		3,576
Swedbank AB, Class A		Banks		1,392		22,841
^aSwedish Orphan Biovitrum AB		Biotechnology		249		5,799
Tele2 AB, Class B		Wireless Telecommunication Services		777		7,737
Telefonaktiebolaget LM Ericsson, Class A		Communications Equipment		72		460
Telefonaktiebolaget LM Ericsson, Class B		Communications Equipment		4,089		23,896
Telia Co. AB		Diversified Telecommunication Services		3,387		8,613
Trelleborg AB, Class B		Machinery		312		8,873
Volvo AB, Class A		Machinery		273		5,871
Volvo AB, Class B		Machinery		2,061		42,504
^aVolvo Car AB, Class B		Automobiles		732		3,190


						686,612

Switzerland 14.5%
ABB Ltd.		Electrical Equipment		2,076		71,287
Adecco Group AG		Professional Services		213		7,729
Alcon, Inc.		Health Care Equipment & Supplies		627		44,406
Bachem Holding AG, Class B		Life Sciences Tools & Services		39		3,902
Baloise Holding AG		Insurance		60		9,353
Banque Cantonale Vaudoise		Banks		39		3,684
Barry Callebaut AG		Food Products		5		10,612
Belimo Holding AG	��	Building Products		12		5,793
BKW AG		Electric Utilities		24		3,778
Chocoladefabriken Lindt & Spruengli AG		Food Products		3		35,466
Cie Financiere Richemont SA, Class A		Textiles, Apparel & Luxury Goods		696		111,156
Clariant AG		Chemicals		321		5,309
Coca-Cola HBC AG		Beverages		261		7,142
Credit Suisse Group AG		Capital Markets		4,275		3,849
DKSH Holding AG		Professional Services		48		3,870
Emmi AG		Food Products		3		3,015



franklintempleton.com	Annual Report	229

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Franklin FTSE Europe Hedged ETF (continued)



	Industry	Shares		Value

Common Stocks (continued)
Switzerland (continued)
EMS-Chemie Holding AG	Chemicals		9	$	7,428
^aFlughafen Zurich AG	Transportation Infrastructure		27		4,951
Geberit AG	Building Products		45		25,082
Georg Fischer AG	Machinery		110		8,537
Givaudan SA	Chemicals		11		35,798
Helvetia Holding AG	Insurance		48		6,694
Julius Baer Group Ltd.	Capital Markets		282		19,237
Kuehne & Nagel International AG	Marine Transportation		69		20,537
Logitech International SA	Technology Hardware, Storage & Peripherals		195		11,334
Lonza Group AG	Life Sciences Tools & Services		102		61,119
Nestle SA	Food Products		3,675		448,378
Novartis AG	Pharmaceuticals		2,715		248,928
Partners Group Holding AG	Capital Markets		30		28,136
PSP Swiss Property AG	Real Estate Management & Development		63		7,172
Roche Holding AG	Pharmaceuticals		948		270,790
Roche Holding AG	Pharmaceuticals		39		11,740
Schindler Holding AG, PC	Machinery		57		12,610
Schindler Holding AG	Machinery		27		5,704
SGS SA	Professional Services		8		17,610
SIG Group AG	Containers & Packaging		447		11,508
Sika AG	Chemicals		198		55,376
Sonova Holding AG	Health Care Equipment & Supplies		69		20,287
STMicroelectronics NV	Semiconductors & Semiconductor Equipment		864		45,954
Straumann Holding AG	Health Care Equipment & Supplies		144		21,492
Swatch Group AG	Textiles, Apparel & Luxury Goods		39		13,379
Swatch Group AG	Textiles, Apparel & Luxury Goods		63		3,986
Swiss Life Holding AG	Insurance		42		25,893
Swiss Prime Site AG	Real Estate Management & Development		102		8,491
Swiss Re AG	Insurance		393		40,369
Swisscom AG	Diversified Telecommunication Services		35		22,344
Tecan Group AG	Life Sciences Tools & Services		17		7,429
Temenos AG	Software		75		5,195
UBS Group AG	Capital Markets		3,903		82,414
^bVAT Group AG	Machinery		36		12,933
Zurich Insurance Group AG	Insurance		201		96,303


					2,055,489

United Kingdom 19.2%
3i Group PLC	Capital Markets		1,293		26,939
abrdn PLC	Capital Markets		2,751		6,922
Admiral Group PLC	Insurance		387		9,752
Allfunds Group PLC	Capital Markets		405		2,675
Anglo American PLC	Metals & Mining		1,647		54,536
Ashtead Group PLC	Trading Companies & Distributors		597		36,598
Associated British Foods PLC	Food Products		471		11,298
AstraZeneca PLC	Pharmaceuticals		2,016		279,978
^bAuto Trader Group PLC	Interactive Media & Services		1,236		9,417
Aviva PLC	Insurance		3,780		18,891
B&M European Value Retail SA	Broadline Retail		1,320		7,868
BAE Systems PLC	Aerospace & Defense		4,173		50,699
Barclays PLC	Banks		21,567		38,880
Barratt Developments PLC	Household Durables		1,317		7,596
Beazley PLC	Insurance		921		6,804
Berkeley Group Holdings PLC	Household Durables		144		7,473
BP PLC	Oil, Gas & Consumable Fuels		24,147		152,507
British American Tobacco PLC	Tobacco		3,057		107,366
British Land Co. PLC	Diversified REITs		1,248		5,984
BT Group PLC	Diversified Telecommunication Services		9,483		17,095



230	Annual Report	franklintempleton.com

FRANKLIN TEMPLETON ETF TRUST

SCHEDULE OF INVESTMENTS

Franklin FTSE Europe Hedged ETF (continued)



	Industry	Shares		Value

Common Stocks (continued)
United Kingdom (continued)
Bunzl PLC	Trading Companies & Distributors		459	$	17,349
Burberry Group PLC	Textiles, Apparel & Luxury Goods		525		16,787
Centrica PLC	Multi-Utilities		8,067		10,578
CNH Industrial NV	Machinery		1,338		20,468
Compass Group PLC	Hotels, Restaurants & Leisure		2,394		60,178
^bConvaTec Group PLC	Health Care Equipment & Supplies		2,178		6,156
Croda International PLC	Chemicals		189		15,185
Dechra Pharmaceuticals PLC	Pharmaceuticals		141		4,620
Derwent London PLC	Diversified REITs		153		4,461
Diageo PLC	Beverages		3,030		135,396
Direct Line Insurance Group PLC	Insurance		1,884		3,203
DS Smith PLC	Containers & Packaging		1,728		6,720
Endeavour Mining PLC	Metals & Mining		243		6,003
Ferguson PLC	Trading Companies & Distributors		282		37,134
GSK PLC	Pharmaceuticals		5,454		96,366
^aHaleon PLC	Personal Products		6,813		27,125
Halma PLC	Electronic Equipment, Instruments & Components		510		14,056
Hargreaves Lansdown PLC	Capital Markets		501		4,952
Hikma Pharmaceuticals PLC	Pharmaceuticals		228		4,722
Howden Joinery Group PLC	Trading Companies & Distributors		765		6,602
HSBC Holdings PLC	Banks		27,471		186,714
IMI PLC	Machinery		372		7,056
Imperial Brands PLC	Tobacco		1,263		29,109
Informa PLC	Media		1,944		16,648
InterContinental Hotels Group PLC	Hotels, Restaurants & Leisure		237		15,566
Intermediate Capital Group PLC	Capital Markets		378		5,688
a International Consolidated Airlines Group SA	Airlines		1,392		2,599
Intertek Group PLC	Professional Services		219		10,975
ITV PLC	Media		5,340		5,467
J Sainsbury PLC	Consumer Staples Distribution & Retail		2,421		8,343
JD Sports Fashion PLC	Specialty Retail		3,489		7,668
Johnson Matthey PLC	Chemicals		243		5,960
^a,bJust Eat Takeaway.com NV	Internet & Direct Marketing Retail		288		5,485
Kingfisher PLC	Specialty Retail		2,769		8,943
Land Securities Group PLC	Diversified REITs		1,008		7,742
Legal & General Group PLC	Insurance		8,208		24,245
Lloyds Banking Group PLC	Banks		91,629		54,013
London Stock Exchange Group PLC	Capital Markets		534		51,950
M&G PLC	Financial Services		2,922		7,154
Melrose Industries PLC	Industrial Conglomerates		5,463		11,247
Mondi PLC	Paper & Forest Products		663		10,509
National Grid PLC	Multi-Utilities		4,974		67,436
NatWest Group PLC	Banks		7,332		23,897
Next PLC	Broadline Retail		168		13,652
^aNMC Health PLC	Health Care Providers & Services		60		—
^aOcado Group PLC	Consumer Staples Distribution & Retail		762		5,041
Pearson PLC	Media		981		10,242
^aPepco Group NV	Broadline Retail		225		2,167
Persimmon PLC	Household Durables		426		6,616
Phoenix Group Holdings PLC	Insurance		987		6,668
Prudential PLC	Insurance		3,750		51,096
Reckitt Benckiser Group PLC	Household Products		975		74,237
RELX PLC	Professional Services		2,622		84,875
Renishaw PLC	Electronic Equipment, Instruments & Components		45		2,278
Rentokil Initial PLC	Commercial Services & Supplies		3,411		24,951
Rightmove PLC	Interactive Media & Services		1,080		7,518
^aRolls-Royce Holdings PLC	Aerospace & Defense		11,364		20,939



franklintempleton.com	Annual Report	231

FRANKLIN TEMPLETON ETF TRUST

SCHEDULE OF INVESTMENTS

Franklin FTSE Europe Hedged ETF (continued)



	Industry	Shares		Value

Common Stocks (continued)
United Kingdom (continued)
RS GROUP PLC	Trading Companies & Distributors		621	$	7,018
Sage Group PLC	Software		1,392		13,339
Schroders PLC	Capital Markets		1,209		6,876
Segro PLC	Diversified REITs		1,662		15,774
Severn Trent PLC	Water Utilities		348		12,388
Smith & Nephew PLC	Health Care Equipment & Supplies		1,206		16,731
Smiths Group PLC	Industrial Conglomerates		474		10,060
Spirax-Sarco Engineering PLC	Machinery		99		14,512
SSE PLC	Electric Utilities		1,476		32,905
St. James’s Place PLC	Capital Markets		735		11,005
Standard Chartered PLC	Banks		3,282		24,924
Tate & Lyle PLC	Food Products		567		5,501
Taylor Wimpey PLC	Household Durables		4,701		6,914
Tesco PLC	Consumer Staples Distribution & Retail		9,768		32,090
Unilever PLC	Personal Products		3,426		177,492
UNITE Group PLC	Diversified REITs		429		5,090
United Utilities Group PLC	Water Utilities		933		12,228
Vodafone Group PLC	Wireless Telecommunication Services		32,193		35,546
Weir Group PLC	Machinery		351		8,068
Whitbread PLC	Hotels, Restaurants & Leisure		267		9,861
^aWise PLC, Class A	IT Services		1,023		6,878
WPP PLC	Media		1,413		16,748


					2,723,981

United States 0.7%
Holcim AG, Class B	Construction Materials		744		47,968
Stellantis NV	Automobiles		2,832		51,494


					99,462

Total Common Stocks (Cost $13,989,837)					13,933,965


Preferred Stocks 0.6%
Germany 0.6%
^cBayerische Motoren Werke AG, 6.172%, pfd.	Automobiles		75		7,684
^cFuchs Petrolub SE, 2.744%, pfd.	Chemicals		96		3,916
^cHenkel AG & Co. KGaA, 2.567%, pfd.	Household Products		231		18,085
^cSartorius AG, 0.372%, pfd.	Health Care Equipment & Supplies		33		13,875
^cSixt SE, 4.98%, pfd.	Ground Transportation		21		1,704
^cVolkswagen AG, 21.188%, pfd.	Automobiles		273		37,265


					82,529

Spain 0.0%^†
^aGrifols SA, Class B, pfd.,B	Biotechnology		351		2,505


Total Preferred Stocks (Cost $105,452)					85,034


Total Investments before Short-Term Investments (Cost $14,095,289)					14,018,999



232	Annual Report	franklintempleton.com

FRANKLIN TEMPLETON ETF TRUST

SCHEDULE OF INVESTMENTS

Franklin FTSE Europe Hedged ETF (continued)



	Industry	Shares		Value

Short-Term Investments 0.0%^†
Money Market Funds 0.0%^†
United States 0.0%^†
^c,dInstitutional Fiduciary Trust - Money Market Portfolio, 4.47%	Money Market Funds		4,136	$	4,136


Total Short-Term Investments (Cost $4,136)					4,136


Total Investments (Cost $14,099,425) 99.0%					14,023,135
Other Assets, less Liabilities 1.0%					139,757


Net Assets 100.0%				$	14,162,892

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

^aNon-income producing.

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

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

At March 31, 2023 the Fund had the following forward exchange contracts outstanding. See Note 1(c).


Forward Exchange Contracts

Currency	Counterparty		Type	Quantity		Contract Amount		Settlement Date		Unrealized Appreciation		Unrealized Depreciation


OTC Forward Exchange Contracts
Danish Krone		BOFA			4,271,400	$	609,997		4/04/23		$ —		$ (12,969	)
Danish Krone		BOFA			4,271,400		622,957		4/04/23		9		—
Euro		UBSW			2,223,642		2,362,780		4/04/23		—		(53,096	)
Euro		BOFA			2,223,642		2,362,784		4/04/23		—		(53,091	)
Euro		HSBK			2,223,642		2,362,784		4/04/23		—		(53,091	)
Euro		BOFA			2,223,642		2,415,911		4/04/23		—		(36	)
Euro		HSBK			2,223,642		2,415,911		4/04/23		—		(36	)
Euro		UBSW			2,223,642		2,415,900		4/04/23		—		(25	)
Great British Pound		UBSW			2,882,000		3,491,114		4/04/23		—		(72,335	)
Great British Pound		UBSW			2,882,000		3,563,483		4/04/23		—		(34	)
Norwegian Krone		BOFA			1,743,300		166,458		4/04/23		—		(2	)
Norwegian Krone		BOFA			1,743,300		168,776		4/04/23		2,321		—
Polish Zloty		BOFA			234,100		52,634		4/04/23		—		(1,706	)
Polish Zloty		BOFA			234,100		54,341		4/04/23		—		(1	)
Swedish Krona		BOFA			7,218,100		693,309		4/04/23		—		(2,777	)
Swedish Krona		BOFA			7,218,100		696,097		4/04/23		—		(10	)
Swiss Franc		UBSW			1,925,000		2,061,284		4/04/23		—		(45,881	)
Swiss Franc		UBSW			1,925,000		2,107,185		4/04/23		—		(21	)
Danish Krone		BOFA			4,306,300		629,171		5/02/23		—		(38	)
Euro		BOFA			2,195,672		2,389,343		5/03/23		—		(25	)
Euro		HSBK			2,195,672		2,389,365		5/03/23		—		(3	)
Euro		UBSW			2,195,672		2,389,365		5/03/23		—		(3	)
Great British Pound		UBSW			2,746,700		3,398,220		5/03/23		24		—
Norwegian Krone		BOFA			1,667,400		159,417		5/03/23		—		(6	)
Swedish Krona		BOFA			7,130,000		688,729		5/03/23		—		(2	)
Swiss Franc		UBSW			1,882,900		2,067,449		5/03/23		—		(62	)



franklintempleton.com	Annual Report	233

FRANKLIN TEMPLETON ETF TRUST

SCHEDULE OF INVESTMENTS

Franklin FTSE Europe Hedged ETF (continued)


Forward Exchange Contracts (continued)

Currency	Counterparty		Type	Quantity		Contract Amount		Settlement Date		Unrealized Appreciation		Unrealized Depreciation


OTC Forward Exchange Contracts (continued)
Polish Zloty		BOFA			227,000		$ 52,591		5/04/23		$ —		$ (3	)

Total Forward Exchange Contracts											$2,354		$(295,253	)

Net unrealized appreciation (depreciation)													$(292,899	)

At March 31, 2023, the Fund had the following futures contracts outstanding. See Note 1(c).

Futures Contracts

Description

Type

Number of

Contracts

Notional

Amount

Expiration

Date

Value/Unrealized

Appreciation

(Depreciation)

Index Contracts

EURO STOXX 50 Index

Long

$138,881

6/16/23

$2,816

*As of year end.

See Note 7 regarding other derivative information.

See Abbreviations on page 355.



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

FRANKLIN TEMPLETON ETF TRUST

Financial Highlights

Franklin FTSE France ETF



	Year Ended March 31,

	2023			2022			2021			2020			2019

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

Net asset value, beginning of year		$28.82			$28.44			$19.34			$23.86			$25.33

Income from investment operations^a:

Net investment income^b		1.01			0.85			0.40			0.52			0.70

Net realized and unrealized gains (losses)		1.63			0.41			9.10			(4.47	)		(1.48	)

Total from investment operations		2.64			1.26			9.50			(3.95	)		(0.78	)

Less distributions from net investment income		(0.79	)		(0.88	)		(0.40	)		(0.57	)		(0.69	)

Net asset value, end of year		$30.67			$28.82			$28.44			$19.34			$23.86

Total return^c		9.84%			4.23%			49.47%			(17.08)%			(3.07)%

Ratios to average net assets^d

Total expenses		0.38%^e			0.09%			0.09%			0.09%			0.09%

Net investment income		3.87%			2.77%			1.68%			2.14%			2.90%

Supplemental data

Net assets, end of year (000’s)		$6,134			$10,088			$7,111			$8,702			$2,386

Portfolio turnover rate^f		4.87%^g			5.94%^g			4.56%^g			2.60%^g			5.80%
^aThe amount shown for a share outstanding throughout the period may not correlate with the Statement of Operations for the period due to the timing of sales and repurchases of Creation Unit Fund shares in relation to income earned and/or fluctuating fair value of the investments of the Fund. ^bBased on average daily shares outstanding. ^cTotal return is not annualized for periods less than one year. Total return is calculated assuming an initial investment made at the net asset value at the beginning of the period, reinvestment of all dividends and distributions at net asset value during the period, and redemption at net asset value on the last day of the period. ^dRatios are annualized for periods less than one year, except for non-recurring expenses, if any. ^eExpense ratios are including non-recurring European Union tax reclaim contingent fees that were incurred by the Fund during the period. Without these fees, the gross and net expense ratios would have been 0.09% and 0.09%, respectively, for the year ended March 31, 2023. ^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:		4.87	%		5.94	%		4.56	%		2.60	%		—



franklintempleton.com	The accompanying notes are an integral part of these financial statements. \| Annual Report	235

FRANKLIN TEMPLETON ETF TRUST

Schedule of Investments, March 31, 2023

Franklin FTSE France ETF



	Industry	Shares		Value

Common Stocks 98.6%
France 96.0%
^aAccor SA	Hotels, Restaurants & Leisure		604	$	19,667
^aAeroports de Paris	Transportation Infrastructure		108		15,447
Air Liquide SA	Chemicals		1,676		280,781
Airbus SE	Aerospace & Defense		1,828		244,838
^bALD SA	Ground Transportation		440		5,163
Alstom SA	Machinery		992		27,030
^bAmundi SA	Capital Markets		184		11,605
Arkema SA	Chemicals		212		20,914
AXA SA	Insurance		6,132		187,638
BioMerieux	Health Care Equipment & Supplies		140		14,754
BNP Paribas SA	Banks		3,620		217,138
Bollore SE	Entertainment		3,260		20,153
Bouygues SA	Construction & Engineering		684		23,104
Bureau Veritas SA	Professional Services		936		26,918
Capgemini SE	IT Services		524		97,208
Carrefour SA	Consumer Staples Distribution & Retail		1,940		39,267
Cie de L’Odet SE	Air Freight & Logistics		1		1,554
Cie de Saint-Gobain	Building Products		1,508		85,719
Cie Generale des Etablissements Michelin SCA	Automobile Components		2,288		69,963
Covivio SA	Diversified REITs		164		9,550
Credit Agricole SA	Banks		3,968		44,826
Danone SA	Food Products		2,000		124,529
Dassault Aviation SA	Aerospace & Defense		76		15,077
Dassault Systemes SE	Software		2,188		90,035
Edenred	IT Services		820		48,589
Eiffage SA	Construction & Engineering		240		26,007
Engie SA	Multi-Utilities		5,448		86,263
EssilorLuxottica SA	Textiles, Apparel & Luxury Goods		976		176,022
Eurazeo SE	Financial Services		160		11,386
Gecina SA	Diversified REITs		168		17,440
Getlink SE	Transportation Infrastructure		1,144		18,880
Hermes International	Textiles, Apparel & Luxury Goods		102		206,565
ICADE	Diversified REITs		104		4,897
Ipsen SA	Pharmaceuticals		112		12,351
^aJCDecaux SE	Media		236		4,951
Kering SA	Textiles, Apparel & Luxury Goods		236		153,841
Klepierre SA	Diversified REITs		628		14,226
^bLa Francaise des Jeux SAEM	Hotels, Restaurants & Leisure		288		12,012
Legrand SA	Electrical Equipment		876		80,022
L’Oreal SA	Personal Products		808		361,017
LVMH Moet Hennessy Louis Vuitton SE	Textiles, Apparel & Luxury Goods		809		742,175
^bNeoen SA	Independent Power Producers & Energy Traders		200		6,291
Orange SA	Diversified Telecommunication Services		6,292		74,867
Pernod Ricard SA	Beverages		672		152,371
Publicis Groupe SA	Media		740		57,709
Remy Cointreau SA	Beverages		80		14,602
^aRenault SA	Automobiles		628		25,654
Rexel SA	Trading Companies & Distributors		792		18,887
Safran SA	Aerospace & Defense		1,144		169,705
Sanofi	Pharmaceuticals		3,572		389,011
Sartorius Stedim Biotech	Life Sciences Tools & Services		79		24,204
Schneider Electric SE	Electrical Equipment		1,744		291,188
SCOR SE	Insurance		488		11,102
SEB SA	Household Durables		100		11,386
Societe Generale SA	Banks		2,412		54,468
Sodexo SA	Hotels, Restaurants & Leisure		284		27,788
^aSOITEC	Semiconductors & Semiconductor Equipment		84		13,470



236	Annual Report	franklintempleton.com

FRANKLIN TEMPLETON ETF TRUST

SCHEDULE OF INVESTMENTS

Franklin FTSE France ETF (continued)



	Industry	Shares		Value

Common Stocks (continued)
France (continued)
Teleperformance	Professional Services		191	$	46,005
Thales SA	Aerospace & Defense		328		48,589
TotalEnergies SE	Oil, Gas & Consumable Fuels		7,460		440,583
^aUbisoft Entertainment SA	Entertainment		312		8,291
Valeo SA	Automobile Components		784		16,107
Veolia Environnement SA	Multi-Utilities		2,088		64,426
Vinci SA	Construction & Engineering		1,628		186,991
Vivendi SE	Media		2,280		23,037
Wendel SE	Financial Services		88		9,307
^a,bWorldline SA	IT Services		800		33,993

					5,889,554

Luxembourg 0.5%
Eurofins Scientific SE	Life Sciences Tools & Services		404		27,055

Netherlands 0.3%
^bEuronext NV	Capital Markets		268		20,551

Switzerland 1.8%
STMicroelectronics NV	Semiconductors & Semiconductor Equipment		2,076		110,417


Total Investments (Cost $5,871,994) 98.6%					6,047,577
Other Assets, less Liabilities 1.4%					86,204


Net Assets 100.0%				$	6,133,781

^aNon-income producing.

At March 31, 2023, 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

CAC40 10 Euro

$79,680

4/21/23

$2,470

*As of year end.

See Note 7 regarding other derivative information.

See Abbreviations on page 355.



franklintempleton.com	The accompanying notes are an integral part of these financial statements. \| Annual Report	237

FRANKLIN TEMPLETON ETF TRUST

Financial Highlights

Franklin FTSE Germany ETF



	Year Ended March 31,

	2023			2022			2021			2020			2019

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

Net asset value, beginning of year		$22.37			$25.98			$16.73			$20.70			$24.60

Income from investment operations^a:

Net investment income^b		0.60			0.70			0.61			0.52			0.53

Net realized and unrealized gains (losses)		(0.20	)		(3.63	)		9.29			(3.92	)		(3.83	)

Total from investment operations		0.40			(2.93	)		9.90			(3.40	)		(3.30	)

Less distributions from net investment income		(0.67	)		(0.68	)		(0.65	)		(0.57	)		(0.60	)

Net asset value, end of year		$22.10			$22.37			$25.98			$16.73			$20.70

Total return^c		2.41%			(11.68)%			59.79%			(17.00)%			(13.72)%

Ratios to average net assets^d

Total expenses		0.09%			0.09%			0.09%			0.09%			0.09%

Net investment income		3.11%			2.73%			2.66%			2.46%			2.44%

Supplemental data

Net assets, end of year (000’s)		$17,683			$16,775			$9,093			$4,182			$4,140

Portfolio turnover rate^e		4.21%^f			6.70%^f			5.79%^f			5.74%^f			10.75%
^aThe amount shown for a share outstanding throughout the period may not correlate with the Statement of Operations for the period due to the timing of sales and repurchases of Creation Unit Fund shares in relation to income earned and/or fluctuating fair value of the investments of the Fund. ^bBased on average daily shares outstanding. ^cTotal return is not annualized for periods less than one year. Total return is calculated assuming an initial investment made at the net asset value at the beginning of the period, reinvestment of all dividends and distributions at net asset value during the period, and redemption at net asset value on the last day of the period. ^dRatios are annualized for periods less than one year. ^ePortfolio turnover rate includes portfolio transactions that are executed as a result of the Fund offering and redeeming Creation Units solely for cash (“Cash creations”).
^fPortfolio turnover rate excluding cash creations was as follows:		4.21%			6.70%			5.79%			5.74%			—



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

FRANKLIN TEMPLETON ETF TRUST

Schedule of Investments, March 31, 2023

Franklin FTSE Germany ETF



	Industry	Shares		Value

Common Stocks 95.4%
Germany 94.5%
adidas AG	Textiles, Apparel & Luxury Goods		2,208	$	390,490
Allianz SE	Insurance		5,296		1,224,417
BASF SE	Chemicals		12,064		633,851
Bayer AG	Pharmaceuticals		12,960		826,801
Bayerische Motoren Werke AG	Automobiles		4,176		457,966
Bechtle AG	IT Services		1,088		51,999
Beiersdorf AG	Personal Products		1,312		170,979
Brenntag SE	Trading Companies & Distributors		2,048		153,973
Carl Zeiss Meditec AG	Health Care Equipment & Supplies		480		66,752
^aCommerzbank AG	Banks		13,728		144,703
Continental AG	Automobile Components		1,424		106,626
^bCovestro AG	Chemicals		2,336		96,772
^aCTS Eventim AG & Co. KGaA	Entertainment		768		47,936
^aDaimler Truck Holding AG	Machinery		5,536		187,114
^a,bDelivery Hero SE	Internet & Direct Marketing Retail		2,464		83,978
Deutsche Bank AG	Capital Markets		26,704		271,442
Deutsche Boerse AG	Capital Markets		2,416		471,032
^aDeutsche Lufthansa AG	Airlines		7,872		87,749
Deutsche Post AG	Air Freight & Logistics		12,752		596,987
Deutsche Telekom AG	Diversified Telecommunication Services		44,592		1,082,790
Deutsche Wohnen SE	Real Estate Management & Development		672		13,207
^bDWS Group GmbH & Co. KGaA	Capital Markets		448		13,784
E.ON SE	Multi-Utilities		29,184		364,630
Evonik Industries AG	Chemicals		2,512		52,837
Fielmann AG	Specialty Retail		320		13,343
^aFraport AG Frankfurt Airport Services Worldwide	Transportation Infrastructure		464		23,345
Fresenius Medical Care AG & Co. KGaA	Health Care Providers & Services		2,672		113,507
Fresenius SE & Co. KGaA	Health Care Providers & Services		5,376		145,143
Fuchs Petrolub SE	Chemicals		448		15,356
GEA Group AG	Machinery		2,160		98,445
Hannover Rueck SE	Insurance		800		156,753
HeidelbergCement AG	Construction Materials		1,904		139,134
Hella GmbH & Co. KGaA	Automobile Components		304		26,472
^aHelloFresh SE	Internet & Direct Marketing Retail		2,160		51,417
Henkel AG & Co. KGaA	Household Products		1,328		96,668
HOCHTIEF AG	Construction & Engineering		272		22,713
Infineon Technologies AG	Semiconductors & Semiconductor Equipment		17,168		702,814
KION Group AG	Machinery		944		36,522
Knorr-Bremse AG	Machinery		864		57,523
LANXESS AG	Chemicals		1,136		46,690
LEG Immobilien SE	Real Estate Management & Development		976		53,528
Mercedes-Benz Group AG	Automobiles		11,072		851,425
Merck KGaA	Pharmaceuticals		1,712		319,083
^aMETRO AG	Consumer Staples Distribution & Retail		1,728		14,869
MTU Aero Engines AG	Aerospace & Defense		704		176,377
Muenchener Rueckversicherungs-Gesellschaft AG in Muenchen	Insurance		1,840		644,699
Nemetschek SE	Software		704		48,400
Puma SE	Textiles, Apparel & Luxury Goods		1,312		81,050
Rational AG	Machinery		64		42,902
Rheinmetall AG	Industrial Conglomerates		576		171,218
RWE AG	Multi-Utilities		8,320		358,316
SAP SE	Software		14,608		1,841,972
Sartorius AG	Health Care Equipment & Supplies		32		11,038
^bScout24 SE	Interactive Media & Services		1,024		60,855
Siemens AG	Industrial Conglomerates		9,824		1,593,094



franklintempleton.com	Annual Report	239

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SCHEDULE OF INVESTMENTS

Franklin FTSE Germany ETF (continued)



	Industry	Shares		Value

Common Stocks (continued)
Germany (continued)
^aSiemens Energy AG	Electrical Equipment		6,208	$	136,512
^bSiemens Healthineers AG	Health Care Equipment & Supplies		3,648		210,138
Sixt SE	Ground Transportation		176		23,443
Symrise AG	Chemicals		1,712		186,372
Talanx AG	Insurance		720		33,402
Telefonica Deutschland Holding AG	Diversified Telecommunication Services		11,728		36,149
thyssenkrupp AG	Metals & Mining		6,416		46,118
Traton SE	Machinery		656		12,850
United Internet AG	Diversified Telecommunication Services		1,136		19,587
Volkswagen AG	Automobiles		384		65,917
Vonovia SE	Real Estate Management & Development		9,312		175,429
Wacker Chemie AG	Chemicals		192		31,165
^a,bZalando SE	Internet & Direct Marketing Retail		2,912		121,931

					16,712,499

Luxembourg 0.2%
RTL Group SA	Media		496		24,487
^aSUSE SA	Software		512		9,295

					33,782

Netherlands 0.7%
^aQIAGEN NV	Life Sciences Tools & Services		2,896		131,864

Total Common Stocks (Cost $18,187,050)	.				16,878,145

Preferred Stocks 4.6%
Germany 4.6%
^cBayerische Motoren Werke AG, 6.172%, pfd.	Automobiles		768		78,683
^cFuchs Petrolub SE, 2.744%, pfd.	Chemicals		912		37,196
^cHenkel AG & Co. KGaA, 2.567%, pfd.	Household Products		2,224		174,116
^cSartorius AG, 0.372%, pfd.	Health Care Equipment & Supplies		320		134,546
^cSixt SE, 4.98%, pfd.	Ground Transportation		224		18,180
^cVolkswagen AG, 21.188%, pfd.	Automobiles		2,656		362,548


Total Preferred Stocks (Cost $1,027,645)					805,269


Total Investments (Cost $19,214,695) 100.0%					17,683,414

Other Assets, less Liabilities 0.0%^†					(201	)


Net Assets 100.0%				$	17,683,213

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

^aNon-income producing.

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



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

FRANKLIN TEMPLETON ETF TRUST

Financial Highlights

Franklin FTSE Hong Kong ETF



	Year Ended March 31,

	2023			2022			2021			2020			2019

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

Net asset value, beginning of year		$23.43			$28.10			$20.58			$26.82			$26.17

Income from investment operations^a:

Net investment income^b		0.77			0.74			0.72			0.77			0.66

Net realized and unrealized gains (losses)		(2.03	)		(4.72	)		7.61			(6.25	)		0.59

Total from investment operations		(1.26	)		(3.98	)		8.33			(5.48	)		1.25

Less distributions from net investment income		(0.83	)		(0.69	)		(0.81	)		(0.76	)		(0.60	)

Net asset value, end of year		$21.34			$23.43			$28.10			$20.58			$26.82

Total return^c		(5.39)%			(14.41)%			41.14%			(20.90)%			4.97%

Ratios to average net assets^d

Total expenses		0.09%			0.09%			0.09%			0.09%			0.09%

Net investment income		3.60%			2.79%			2.99%			3.10%			2.67%

Supplemental data

Net assets, end of year (000’s)		$17,069			$17,573			$16,862			$15,433			$20,118

Portfolio turnover rate^e		9.00%^f			9.91%^f			14.84%^f			5.99%^f			5.33%
^aThe amount shown for a share outstanding throughout the period may not correlate with the Statement of Operations for the period due to the timing of sales and repurchases of Creation Unit Fund shares in relation to income earned and/or fluctuating fair value of the investments of the Fund. ^bBased on average daily shares outstanding. ^cTotal return is not annualized for periods less than one year. Total return is calculated assuming an initial investment made at the net asset value at the beginning of the period, reinvestment of all dividends and distributions at net asset value during the period, and redemption at net asset value on the last day of the period. ^dRatios are annualized for periods less than one year. ^ePortfolio turnover rate includes portfolio transactions that are executed as a result of the Fund offering and redeeming Creation Units solely for cash (“Cash creations”).
^fPortfolio turnover rate excluding cash creations was as follows:		8.84%			9.74%			14.84%			5.99%			—



franklintempleton.com	The accompanying notes are an integral part of these financial statements. \| Annual Report	241

FRANKLIN TEMPLETON ETF TRUST

Schedule of Investments, March 31, 2023

Franklin FTSE Hong Kong ETF



	Industry	Shares		Value

Common Stocks 99.8%
Cambodia 0.3%
^aNagaCorp Ltd.	Hotels, Restaurants & Leisure		58,378	$	45,513

China 9.8%
^aAAC Technologies Holdings, Inc., Class H	Electronic Equipment, Instruments & Components		26,500		65,356
BOC Hong Kong Holdings Ltd.	Banks		140,000		436,054
^bBudweiser Brewing Co. APAC Ltd., Class H	Beverages		65,600		200,144
^aChina Travel International Investment Hong Kong Ltd., Class A	Hotels, Restaurants & Leisure		96,000		19,689
Chow Tai Fook Jewellery Group Ltd., Class A	Specialty Retail		67,200		133,374
^bESR Group Ltd., Class H	Real Estate Management & Development		76,800		137,752
^aHUTCHMED China Ltd.	Pharmaceuticals		20,000		52,612
Kerry Logistics Network Ltd.	Air Freight & Logistics		10,500		16,318
Lenovo Group Ltd.	Technology Hardware, Storage & Peripherals		288,000		311,849
^aMMG Ltd.	Metals & Mining		96,000		28,127
Nexteer Automotive Group Ltd.	Automobile Components		32,000		20,178
^aShangri-La Asia Ltd.	Hotels, Restaurants & Leisure		42,000		39,379
SITC International Holdings Co. Ltd.	Marine Transportation		46,000		98,798
Want Want China Holdings Ltd.	Food Products		168,000		108,077


					1,667,707

Hong Kong 77.1%
AIA Group Ltd.	Insurance		318,800		3,356,559
ASMPT Ltd., Class A	Semiconductors & Semiconductor Equipment		12,000		118,778
Bank of East Asia Ltd., Class A	Banks		36,800		46,786
Cafe de Coral Holdings Ltd., Class A	Hotels, Restaurants & Leisure		12,000		15,898
^aCathay Pacific Airways Ltd., Class A	Airlines		40,000		38,472
Champion REIT, Class A	Diversified REITs		80,000		34,344
CK Asset Holdings Ltd.	Real Estate Management & Development		75,500		458,293
CK Infrastructure Holdings Ltd., Class A	Electric Utilities		22,700		123,477
CLP Holdings Ltd.	Electric Utilities		63,500		458,659
Dah Sing Banking Group Ltd., Class A	Banks		16,000		12,250
Dah Sing Financial Holdings Ltd., Class H	Banks		6,400		16,428
DFI Retail Group Holdings Ltd., Class A	Consumer Staples Distribution & Retail		12,000		36,360
Guotai Junan International Holdings Ltd.	Capital Markets		96,000		7,827
^aHaitong International Securities Group Ltd.	Capital Markets		120,000		9,936
Hang Lung Group Ltd.	Real Estate Management & Development		33,000		58,265
Hang Lung Properties Ltd.	Real Estate Management & Development		72,000		134,645
Hang Seng Bank Ltd.	Banks		28,000		398,423
Henderson Land Development Co. Ltd.	Real Estate Management & Development		50,000		172,931
Hong Kong & China Gas Co. Ltd.	Gas Utilities		424,000		373,230
Hong Kong Exchanges & Clearing Ltd.	Capital Markets		49,250		2,184,581
Hongkong Land Holdings Ltd.	Real Estate Management & Development		43,200		189,648
Huabao International Holdings Ltd.	Chemicals		37,000		17,298
Hutchison Telecommunications Hong Kong Holdings Ltd.	Diversified Telecommunication Services		48,000		7,582
Hysan Development Co. Ltd.	Real Estate Management & Development		24,000		68,179
Jardine Matheson Holdings Ltd.	Industrial Conglomerates		7,610		369,618
Johnson Electric Holdings Ltd.	Electrical Equipment		13,500		15,306
Kerry Properties Ltd.	Real Estate Management & Development		24,000		61,300
Link REIT	Diversified REITs		98,020		630,579
Man Wah Holdings Ltd.	Household Durables		57,600		47,474
^aMelco International Development Ltd.	Hotels, Restaurants & Leisure		32,000		37,300
MTR Corp. Ltd.	Ground Transportation		56,000		270,014
New World Development Co. Ltd.	Real Estate Management & Development		54,000		144,803
NWS Holdings Ltd.	Industrial Conglomerates		56,000		50,151
Orient Overseas International Ltd.	Marine Transportation		5,050		96,626
PCCW Ltd.	Diversified Telecommunication Services		160,000		79,899
Power Assets Holdings Ltd.	Electric Utilities		53,000		284,244



242	Annual Report	franklintempleton.com

FRANKLIN TEMPLETON ETF TRUST

SCHEDULE OF INVESTMENTS

Franklin FTSE Hong Kong ETF (continued)



	Industry	Shares		Value

Common Stocks (continued)
Hong Kong (continued)
Sino Land Co. Ltd.	Real Estate Management & Development		146,900	$	198,737
Sun Hung Kai Properties Ltd.	Real Estate Management & Development		54,966		770,229
^aSuper Hi International Holding Ltd.	Hotels, Restaurants & Leisure		6,000		15,073
Swire Pacific Ltd., Class A	Real Estate Management & Development		16,500		126,746
Swire Pacific Ltd., Class B	Real Estate Management & Development		35,000		43,293
Swire Properties Ltd.	Real Estate Management & Development		41,000		105,504
Techtronic Industries Co. Ltd.	Household Durables		51,000		551,258
^aUnited Energy Group Ltd.	Oil, Gas & Consumable Fuels		288,000		34,120
Vitasoy International Holdings Ltd.	Food Products		32,000		61,962
VTech Holdings Ltd.	Communications Equipment		6,400		38,278
^bWH Group Ltd.	Food Products		300,000		178,855
Wharf Holdings Ltd.	Real Estate Management & Development		37,523		85,849
Wharf Real Estate Investment Co. Ltd.	Real Estate Management & Development		60,571		347,996
Xinyi Glass Holdings Ltd.	Automobile Components		80,152		143,560
Yue Yuen Industrial Holdings Ltd.	Textiles, Apparel & Luxury Goods		28,000		39,450


					13,167,073

Indonesia 0.2%
First Pacific Co. Ltd.	Financial Services		96,000		30,818

Italy 0.8%
PRADA SpA	Textiles, Apparel & Luxury Goods		20,000		141,784

Luxembourg 0.3%
L’Occitane International SA	Specialty Retail		18,000		44,943

Macau 6.0%
^aGalaxy Entertainment Group Ltd.	Hotels, Restaurants & Leisure		83,300		556,575
^aMGM China Holdings Ltd.	Hotels, Restaurants & Leisure		28,800		35,588
^aSands China Ltd.	Hotels, Restaurants & Leisure		92,800		322,733
^aSJM Holdings Ltd.	Hotels, Restaurants & Leisure		96,000		47,939
^aWynn Macau Ltd.	Hotels, Restaurants & Leisure		57,600		56,793


					1,019,628

Singapore 0.3%
^bBOC Aviation Ltd., Class A	Trading Companies & Distributors		8,000		61,809

Taiwan 0.1%
^a,bFIT Hon Teng Ltd.	Electronic Equipment, Instruments & Components		48,000		11,251

United Kingdom 3.7%
CK Hutchison Holdings Ltd., Class A	Real Estate Management & Development		103,000		638,998

United States 1.2%
^bJS Global Lifestyle Co. Ltd.	Household Durables		48,000		49,285
^a,bSamsonite International SA	Textiles, Apparel & Luxury Goods		50,400		155,695


					204,980

Total Investments (Cost $18,872,342) 99.8%					17,034,504
Other Assets, less Liabilities 0.2%					34,369

Net Assets 100.0%				$	17,068,873

^aNon-income producing.



franklintempleton.com	Annual Report	243

FRANKLIN TEMPLETON ETF TRUST

SCHEDULE OF INVESTMENTS

Franklin FTSE Hong Kong ETF (continued)

At March 31, 2023, the Fund had the following futures contracts outstanding. See Note 1(c).

Futures Contracts

Description

Type

Number of

Contracts

Notional

Amount

Expiration

Date

Value/Unrealized

Appreciation

(Depreciation)

Equity Contracts

MINI HSI IDX

$26,091

4/27/23

$1,064

*As of year end.

See Note 7 regarding other derivative information.

See Abbreviations on page 355.



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,

	2023			2022			2021			2020			2019

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

Net asset value, beginning of year		$31.34			$27.70			$15.98			$23.36			$22.74

Income from investment operations^a:

Net investment income^b		0.28			0.27			0.20			0.26			0.29

Net realized and unrealized gains (losses)		(3.92	)		4.09			11.70			(7.43	)		0.53

Total from investment operations		(3.64	)		4.36			11.90			(7.17	)		0.82

Less distributions from net investment income		(0.21	)		(0.72	)		(0.18	)		(0.21	)		(0.20	)

Net asset value, end of year		$27.49			$31.34			$27.70			$15.98			$23.36

Total return^c		(11.65)%			15.75%			74.87%			(30.98)%			3.66%

Ratios to average net assets^d

Total expenses		0.19%			0.19%			0.19%			0.19%			0.19%

Net investment income		0.98%			0.86%			0.89%			1.20%			1.33%

Supplemental data

Net assets, end of year (000’s)		$98,977			$50,140			$23,544			$8,790			$7,007

Portfolio turnover rate^e		6.73%^f			10.73%^f			23.48%^f			36.55%^f			8.03%
^aThe amount shown for a share outstanding throughout the period may not correlate with the Statement of Operations for the period due to the timing of sales and repurchases of Creation Unit Fund shares in relation to income earned and/or fluctuating fair value of the investments of the Fund. ^bBased on average daily shares outstanding. ^cTotal return is not annualized for periods less than one year. Total return is calculated assuming an initial investment made at the net asset value at the beginning of the period, reinvestment of all dividends and distributions at net asset value during the period, and redemption at net asset value on the last day of the period. ^dRatios are annualized for periods less than one year. ^ePortfolio turnover rate includes portfolio transactions that are executed as a result of the Fund offering and redeeming Creation Units solely for cash (“Cash creations”).
^fPortfolio turnover rate excluding cash creations was as follows:		6.23%			8.16%			16.91%			6.83%			—



franklintempleton.com	The accompanying notes are an integral part of these financial statements. \| Annual Report	245

FRANKLIN TEMPLETON ETF TRUST

Schedule of Investments, March 31, 2023

Franklin FTSE India ETF



	Industry	Shares		Value

Common Stocks 100.1%
India 100.1%
3M India Ltd.	Industrial Conglomerates		288	$	80,474
Aarti Industries Ltd.	Chemicals		19,656		123,929
ABB India Ltd.	Electrical Equipment		5,400		221,115
ACC Ltd.	Construction Materials		8,568		173,815
Adani Enterprises Ltd.	Trading Companies & Distributors		27,504		585,823
^aAdani Green Energy Ltd.	Independent Power Producers & Energy Traders		40,032		429,218
Adani Ports & Special Economic Zone Ltd.	Transportation Infrastructure		81,576		627,237
^aAdani Power Ltd.	Independent Power Producers & Energy Traders		97,272		226,780
Adani Total Gas Ltd.	Gas Utilities		27,936		294,971
^aAdani Transmission Ltd.	Electric Utilities		25,488		307,984
^aAdani Wilmar Ltd.	Food Products		15,912		78,580
^aAditya Birla Capital Ltd.	Financial Services		45,288		84,616
Alkem Laboratories Ltd.	Pharmaceuticals		2,520		104,136
Ambuja Cements Ltd.	Construction Materials		69,192		307,768
APL Apollo Tubes Ltd.	Metals & Mining		17,208		252,385
Apollo Hospitals Enterprise Ltd.	Health Care Providers & Services		10,008		524,972
Ashok Leyland Ltd.	Machinery		144,432		244,638
Asian Paints Ltd.	Chemicals		45,432		1,526,691
Astral Ltd.	Building Products		12,000		195,224
^bAU Small Finance Bank Ltd.	Banks		32,544		229,361
Aurobindo Pharma Ltd.	Pharmaceuticals		27,000		170,215
^a,bAvenue Supermarts Ltd.	Consumer Staples Distribution & Retail		14,976		619,769
Axis Bank Ltd.	Banks		229,104		2,393,281
Bajaj Auto Ltd.	Automobiles		6,840		323,325
Bajaj Finance Ltd.	Consumer Finance		23,760		1,623,873
Bajaj Finserv Ltd.	Financial Services		38,520		593,625
Bajaj Holdings & Investment Ltd.	Financial Services		2,664		191,904
Balkrishna Industries Ltd.	Automobile Components		8,136		193,192
^a,bBandhan Bank Ltd.	Banks		78,768		187,617
Bank of Baroda	Banks		105,408		216,569
Bank of India	Banks		76,752		69,717
Bata India Ltd.	Textiles, Apparel & Luxury Goods		6,048		104,380
Bayer CropScience Ltd.	Chemicals		1,296		64,304
Berger Paints India Ltd.	Chemicals		24,264		171,744
Bharat Electronics Ltd.	Aerospace & Defense		329,760		391,423
Bharat Forge Ltd.	Automobile Components		25,416		238,272
Bharat Heavy Electricals Ltd.	Electrical Equipment		128,016		109,117
Bharat Petroleum Corp. Ltd.	Oil, Gas & Consumable Fuels		100,656		421,694
Bharti Airtel Ltd.	Wireless Telecommunication Services		14,760		65,859
Bharti Airtel Ltd.	Wireless Telecommunication Services		232,848		2,122,145
Biocon Ltd.	Biotechnology		46,224		116,063
Bosch Ltd.	Automobile Components		864		203,639
Britannia Industries Ltd.	Food Products		11,952		628,581
Canara Bank	Banks		36,720		127,095
Castrol India Ltd.	Chemicals		48,888		66,001
^aCG Power & Industrial Solutions Ltd.	Electrical Equipment		70,200		256,302
Cholamandalam Investment & Finance Co. Ltd.	Consumer Finance		40,536		375,506
Cipla Ltd.	Pharmaceuticals		51,552		564,872
Coal India Ltd.	Oil, Gas & Consumable Fuels		209,808		545,438
Coforge Ltd.	IT Services		4,248		197,150
Colgate-Palmolive India Ltd.	Personal Products		13,392		245,629
Container Corp. Of India Ltd.	Ground Transportation		27,648		195,209
Coromandel International Ltd.	Chemicals		10,800		115,547
Cummins India Ltd.	Machinery		13,608		269,834
Dabur India Ltd.	Personal Products		58,176		385,728
Dalmia Bharat Ltd.	Construction Materials		8,208		196,580
Deepak Nitrite Ltd.	Chemicals		7,560		169,501



246	Annual Report	franklintempleton.com

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SCHEDULE OF INVESTMENTS

Franklin FTSE India ETF (continued)



	Industry	Shares		Value

Common Stocks (continued)
India (continued)
Divi’s Laboratories Ltd.	Life Sciences Tools & Services		12,816	$	440,289
Dixon Technologies India Ltd.	Household Durables		3,528		122,832
DLF Ltd.	Real Estate Management & Development		62,208		270,004
^bDr Lal PathLabs Ltd.	Health Care Providers & Services		3,456		76,877
Dr Reddy’s Laboratories Ltd.	Pharmaceuticals		12,168		684,448
Eicher Motors Ltd.	Automobiles		13,968		501,196
Emami Ltd.	Personal Products		20,952		91,410
Embassy Office Parks REIT	Diversified REITs		61,344		233,015
Exide Industries Ltd.	Automobile Components		45,936		99,465
Federal Bank Ltd.	Banks		157,032		252,795
^aFSN E-Commerce Ventures Ltd.	Specialty Retail		136,440		206,281
GAIL India Ltd.	Gas Utilities		265,194		339,308
^bGeneral Insurance Corp. of India	Insurance		10,944		17,798
GlaxoSmithKline Pharmaceuticals Ltd.	Pharmaceuticals		4,392		70,797
Glenmark Pharmaceuticals Ltd.	Pharmaceuticals		15,552		87,939
^aGMR Airports Infrastructure Ltd.	Construction & Engineering		247,032		121,889
^aGodrej Consumer Products Ltd.	Personal Products		36,720		432,580
^aGodrej Industries Ltd.	Chemicals		8,280		40,688
^aGodrej Properties Ltd.	Real Estate Management & Development		8,928		112,009
Grasim Industries Ltd.	Construction Materials		38,664		768,128
Gujarat Fluorochemicals Ltd.	Chemicals		4,032		148,176
Gujarat Gas Ltd.	Gas Utilities		20,232		113,146
Havells India Ltd.	Electrical Equipment		24,120		348,817
HCL Technologies Ltd.	IT Services		109,368		1,444,244
^bHDFC Asset Management Co. Ltd.	Capital Markets		7,920		164,587
^bHDFC Life Insurance Co. Ltd.	Insurance		99,360		603,541
Hero MotoCorp Ltd.	Automobiles		13,176		376,341
Hindalco Industries Ltd.	Metals & Mining		142,056		700,665
Hindustan Aeronautics Ltd.	Aerospace & Defense		9,504		315,838
Hindustan Petroleum Corp. Ltd.	Oil, Gas & Consumable Fuels		61,200		176,341
Hindustan Unilever Ltd.	Household Products		89,352		2,783,712
Hindustan Zinc Ltd.	Metals & Mining		23,256		83,012
Honeywell Automation India Ltd.	Electronic Equipment, Instruments & Components		224		99,173
Housing Development Finance Corp. Ltd.	Financial Services		176,544		5,640,085
ICICI Bank Ltd.	Banks		157,608		1,682,373
^bICICI Lombard General Insurance Co. Ltd.	Insurance		24,264		315,765
^bICICI Prudential Life Insurance Co. Ltd.	Insurance		38,376		203,455
^aIDBI Bank Ltd.	Banks		57,384		31,421
^aIDFC First Bank Ltd.	Banks		327,024		219,057
Indian Bank	Banks		19,944		70,025
Indian Hotels Co. Ltd.	Hotels, Restaurants & Leisure		83,376		329,060
Indian Oil Corp. Ltd.	Oil, Gas & Consumable Fuels		413,208		391,676
Indian Railway Catering & Tourism Corp. Ltd.	Commercial Services & Supplies		30,240		210,768
^bIndian Railway Finance Corp. Ltd.	Financial Services		180,360		58,377
Indraprastha Gas Ltd.	Gas Utilities		35,280		184,036
Indus Towers Ltd.	Diversified Telecommunication Services		89,352		155,475
Info Edge India Ltd.	Interactive Media & Services		7,632		345,793
Infosys Ltd.	IT Services		357,768		6,216,346
^a,bInterGlobe Aviation Ltd.	Airlines		12,456		289,588
Ipca Laboratories Ltd.	Pharmaceuticals		13,896		137,020
ITC Ltd.	Tobacco		298,152		1,391,310
Jindal Steel & Power Ltd.	Metals & Mining		39,096		259,839
JSW Energy Ltd.	Independent Power Producers & Energy Traders		38,664		113,312
JSW Steel Ltd.	Metals & Mining		100,944		845,187
Jubilant Foodworks Ltd.	Hotels, Restaurants & Leisure		36,288		194,328
Kansai Nerolac Paints Ltd.	Chemicals		13,392		63,031
Kotak Mahindra Bank Ltd.	Banks		10,008		211,023



franklintempleton.com	Annual Report	247

FRANKLIN TEMPLETON ETF TRUST

SCHEDULE OF INVESTMENTS

Franklin FTSE India ETF (continued)



	Industry	Shares		Value

Common Stocks (continued)
India (continued)
L&T Finance Holdings Ltd.	Financial Services		89,136	$	88,992
^bL&T Technology Services Ltd.	Professional Services		2,592		106,558
Larsen & Toubro Ltd.	Construction & Engineering		69,408		1,827,795
^bLaurus Labs Ltd.	Pharmaceuticals		39,024		139,106
LIC Housing Finance Ltd.	Financial Services		30,384		121,543
Linde India Ltd.	Chemicals		2,160		105,916
^bLTIMindtree Ltd.	IT Services		9,257		536,125
Lupin Ltd.	Pharmaceuticals		23,904		188,597
Macrotech Developers Ltd.	Real Estate Management & Development		11,304		127,960
Mahindra & Mahindra Financial Services Ltd.	Consumer Finance		59,256		167,026
Mahindra & Mahindra Ltd.	Automobiles		92,736		1,307,495
^aMangalore Refinery & Petrochemicals Ltd.	Oil, Gas & Consumable Fuels		22,464		14,364
Marico Ltd.	Personal Products		52,272		305,176
Maruti Suzuki India Ltd.	Automobiles		13,320		1,343,978
^aMax Financial Services Ltd.	Insurance		24,624		190,262
^aMax Healthcare Institute Ltd.	Health Care Providers & Services		74,520		399,973
Mphasis Ltd.	IT Services		8,208		179,351
MRF Ltd.	Automobile Components		273		279,194
Muthoot Finance Ltd.	Consumer Finance		10,728		127,921
Nestle India Ltd.	Food Products		3,600		863,155
NHPC Ltd.	Independent Power Producers & Energy Traders		228,528		111,786
^bNippon Life India Asset Management Ltd.	Capital Markets		16,488		42,142
NMDC Ltd.	Metals & Mining		115,848		157,246
NTPC Ltd.	Independent Power Producers & Energy Traders		476,928		1,016,154
Oberoi Realty Ltd.	Real Estate Management & Development		12,024		123,280
Oil & Natural Gas Corp. Ltd.	Oil, Gas & Consumable Fuels		371,592		682,980
Oil India Ltd.	Oil, Gas & Consumable Fuels		33,408		102,298
One 97 Communications Ltd.	IT Services		14,904		115,485
Oracle Financial Services Software Ltd.	Software		2,232		88,640
Page Industries Ltd.	Textiles, Apparel & Luxury Goods		586		270,268
Patanjali Foods Ltd.	Food Products		6,984		82,364
^aPB Fintech Ltd.	Insurance		35,928		279,310
Persistent Systems Ltd.	IT Services		4,896		274,610
Petronet LNG Ltd.	Oil, Gas & Consumable Fuels		75,024		208,916
PI Industries Ltd.	Chemicals		8,136		299,987
Pidilite Industries Ltd.	Chemicals		15,336		439,091
Piramal Enterprises Ltd.	Pharmaceuticals		12,466		102,897
Polycab India Ltd.	Electrical Equipment		4,752		166,532
Power Finance Corp. Ltd.	Financial Services		116,856		215,775
Power Grid Corp. of India Ltd.	Electric Utilities		316,656		869,641
Punjab National Bank	Banks		113,616		64,424
Rajesh Exports Ltd.	Textiles, Apparel & Luxury Goods		13,608		101,022
^a,bRBL Bank Ltd.	Banks		44,424		76,272
REC Ltd.	Financial Services		126,588		177,831
Relaxo Footwears Ltd.	Textiles, Apparel & Luxury Goods		7,128		73,806
Reliance Industries Ltd.	Oil, Gas & Consumable Fuels		329,256		9,339,120
Samvardhana Motherson International Ltd.	Automobile Components		218,448		178,357
SBI Cards & Payment Services Ltd.	Consumer Finance		29,016		261,341
^bSBI Life Insurance Co. Ltd.	Insurance		42,336		567,227
Schaeffler India Ltd.	Machinery		4,032		140,686
Shree Cement Ltd.	Construction Materials		1,368		435,905
Shriram Finance Ltd.	Consumer Finance		24,984		382,866
Siemens Ltd.	Industrial Conglomerates		8,928		361,449
Solar Industries India Ltd.	Chemicals		2,160		99,678
^bSona Blw Precision Forgings Ltd.	Automobile Components		35,136		176,786
SRF Ltd.	Chemicals		14,256		418,378
^aStar Health & Allied Insurance Co. Ltd.	Insurance		22,896		144,398



248	Annual Report	franklintempleton.com

FRANKLIN TEMPLETON ETF TRUST

SCHEDULE OF INVESTMENTS

Franklin FTSE India ETF (continued)



	Industry	Shares		Value

Common Stocks (continued)
India (continued)
State Bank of India	Banks		179,928	$	1,146,683
Steel Authority of India Ltd.	Metals & Mining		146,592		147,515
Sun Pharmaceutical Industries Ltd.	Pharmaceuticals		109,584		1,310,888
Sun TV Network Ltd.	Media		10,008		50,641
Supreme Industries Ltd.	Chemicals		6,480		198,191
Tata Communications Ltd.	Diversified Telecommunication Services		11,304		171,315
Tata Consultancy Services Ltd.	IT Services		102,744		4,007,994
Tata Consumer Products Ltd.	Food Products		60,984		526,006
Tata Elxsi Ltd.	Software		3,456		250,597
^aTata Motors Ltd., Class A	Automobiles		185,904		951,886
^aTata Motors Ltd., Class A	Automobiles		37,800		96,015
Tata Power Co. Ltd.	Electric Utilities		166,896		386,359
Tata Steel Ltd.	Metals & Mining		820,944		1,043,880
^aTata Teleservices Maharashtra Ltd.	Diversified Telecommunication Services		53,280		35,949
Tech Mahindra Ltd.	IT Services		60,984		817,634
Titan Co. Ltd.	Textiles, Apparel & Luxury Goods		41,976		1,284,525
Torrent Pharmaceuticals Ltd.	Pharmaceuticals		9,648		180,457
Torrent Power Ltd.	Electric Utilities		21,960		136,384
Trent Ltd.	Broadline Retail		18,288		305,966
Tube Investments of India Ltd.	Automobile Components		9,864		305,657
TVS Motor Co. Ltd.	Automobiles		23,832		312,376
UltraTech Cement Ltd.	Construction Materials		11,520		1,068,441
Union Bank of India Ltd.	Banks		111,816		90,547
United Breweries Ltd.	Beverages		7,056		122,300
^aUnited Spirits Ltd.	Beverages		28,944		266,363
UNO Minda Ltd.	Automobile Components		16,560		96,923
UPL Ltd.	Chemicals		53,136		464,005
Varun Beverages Ltd.	Beverages		20,394		344,191
Vedant Fashions Ltd.	Textiles, Apparel & Luxury Goods		3,744		51,896
Vedanta Ltd.	Metals & Mining		123,552		412,604
^aVodafone Idea Ltd.	Wireless Telecommunication Services		780,408		55,077
Voltas Ltd.	Construction & Engineering		23,112		230,115
Whirlpool of India Ltd.	Household Durables		2,952		47,237
Wipro Ltd.	IT Services		127,152		565,111
^aYes Bank Ltd.	Banks		2,011,557		368,374
Zee Entertainment Enterprises Ltd.	Media		83,304		215,146
^aZomato Ltd.	Hotels, Restaurants & Leisure		561,960		348,736
Zydus Lifesciences Ltd.	Pharmaceuticals		25,560		152,879

Total Investments (Cost $98,043,841) 100.1%					99,072,406
Other Assets, less Liabilities (0.1)%					(94,964	)

Net Assets 100.0%				$	98,977,442

^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,

	2023			2022			2021			2020			2019

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

Net asset value, beginning of year		$24.65			$26.50			$17.61			$23.13			$26.27

Income from investment operations^a:

Net investment income^b		0.87			0.85			0.67			0.90			0.46

Net realized and unrealized gains (losses)		0.74			(1.59	)		8.80			(5.52	)		(2.99	)

Total from investment operations		1.61			(0.74	)		9.47			(4.62	)		(2.53	)

Less distributions from net investment income		(1.07	)		(1.11	)		(0.58	)		(0.90	)		(0.61	)

Net asset value, end of year		$25.19			$24.65			$26.50			$17.61			$23.13

Total return^c		7.51%			(3.15)%			54.64%			(20.84)%			(9.67)%

Ratios to average net assets^d

Total expenses		0.09%			0.09%			0.09%			0.09%			0.09%

Net investment income		3.96%			3.15%			3.04%			3.85%			2.05%

Supplemental data

Net assets, end of year (000’s)		$5,039			$3,698			$3,974			$2,641			$10,410

Portfolio turnover rate^e		18.04%^f			12.75%^f			17.45%^f			9.89%^f			16.67%
^aThe amount shown for a share outstanding throughout the period may not correlate with the Statement of Operations for the period due to the timing of sales and repurchases of Creation Unit Fund shares in relation to income earned and/or fluctuating fair value of the investments of the Fund. ^bBased on average daily shares outstanding. ^cTotal return is not annualized for periods less than one year. Total return is calculated assuming an initial investment made at the net asset value at the beginning of the period, reinvestment of all dividends and distributions at net asset value during the period, and redemption at net asset value on the last day of the period. ^dRatios are annualized for periods less than one year. ^ePortfolio turnover rate includes portfolio transactions that are executed as a result of the Fund offering and redeeming Creation Units solely for cash (“Cash creations”).
^fPortfolio turnover rate excluding cash creations was as follows:		18.04%			12.75%			17.45%			9.89%			—



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

FRANKLIN TEMPLETON ETF TRUST

Schedule of Investments, March 31, 2023

Franklin FTSE Italy ETF



	Industry	Shares		Value

Common Stocks 100.0%
Italy 88.6%
A2A SpA	Multi-Utilities		25,408	$	40,579
Amplifon SpA	Health Care Providers & Services		2,148		74,538
Assicurazioni Generali SpA	Insurance		11,428		228,205
Banca Mediolanum SpA	Financial Services		4,008		36,395
Banco BPM SpA	Banks		22,892		89,660
Buzzi Unicem SpA	Construction Materials		1,432		34,788
Davide Campari-Milano NV	Beverages		8,292		101,349
De’ Longhi SpA	Household Durables		1,152		26,359
DiaSorin SpA	Health Care Equipment & Supplies		368		38,806
Enel SpA	Electric Utilities		80,852		494,285
Eni SpA	Oil, Gas & Consumable Fuels		24,188		339,157
Ferrari NV	Automobiles		1,314		355,899
FinecoBank Banca Fineco SpA	Banks		9,740		149,630
Hera SpA	Multi-Utilities		13,096		37,022
^aInfrastrutture Wireless Italiane SpA	Diversified Telecommunication Services		5,864		77,216
Interpump Group SpA	Machinery		1,328		74,521
Intesa Sanpaolo SpA	Banks		169,256		435,355
Italgas SpA	Gas Utilities		8,168		49,917
Leonardo SpA	Aerospace & Defense		6,664		78,338
Mediobanca Banca di Credito Finanziario SpA	Banks		10,588		106,613
Moncler SpA	Textiles, Apparel & Luxury Goods		2,616		180,590
^a,bNexi SpA	IT Services		9,252		75,248
^aPirelli & C SpA	Automobile Components		8,152		40,936
^aPoste Italiane SpA	Insurance		7,604		77,756
Prysmian SpA	Electrical Equipment		3,896		163,810
Recordati Industria Chimica e Farmaceutica SpA	Pharmaceuticals		1,616		68,402
Reply SpA	IT Services		376		47,182
Snam SpA	Gas Utilities		32,420		172,204
^bTelecom Italia SpA	Diversified Telecommunication Services		178,828		59,102
^bTelecom Italia SpA	Diversified Telecommunication Services		100,524		32,393
Tenaris SA	Energy Equipment & Services		7,788		110,843
Terna - Rete Elettrica Nazionale	Electric Utilities		20,720		170,320
UniCredit SpA	Banks		19,980		377,924
UnipolSai Assicurazioni SpA	Insurance		7,092		17,937

					4,463,279

United Kingdom 3.4%
CNH Industrial NV	Machinery		11,264		172,308

United States 8.0%
Stellantis NV	Automobiles		22,100		401,840

Total Investments (Cost $4,459,161) 100.0%					5,037,427
Other Assets, less Liabilities 0.0%^†					1,387

Net Assets 100.0%				$	5,038,814

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

^bNon-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,

	2023			2022			2021			2020			2019

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

Net asset value, beginning of year		$27.42			$30.25			$21.93			$24.18			$26.69

Income from investment operations^a:

Net investment income^b		0.63			0.63			0.53			0.56			0.59

Net realized and unrealized gains (losses)		(1.93	)		(2.76	)		8.24			(2.22	)		(2.76	)

Total from investment operations		(1.30	)		(2.13	)		8.77			(1.66	)		(2.17	)

Less distributions from net investment income		(0.46	)		(0.70	)		(0.45	)		(0.59	)		(0.34	)

Net asset value, end of year		$25.66			$27.42			$30.25			$21.93			$24.18

Total return^c		(4.61)%			(7.21)%			40.23%			(7.15)%			(8.10)%

Ratios to average net assets^d

Expenses before waiver and payments by affiliates		0.09%			0.09%			0.09%			0.09%			0.09%

Expenses net of waiver and payments by affiliates		0.09%			0.09%			0.09%			0.09%			0.09%

Net investment income		2.60%			2.14%			1.98%			2.30%			2.39%

Supplemental data

Net assets, end of year (000’s)		$1,000,803			$789,637			$598,934			$315,851			$290,205

Portfolio turnover rate^e		3.01%^f			2.95%^f			5.76%^f			4.59%^f			4.35%
^aThe amount shown for a share outstanding throughout the period may not correlate with the Statement of Operations for the period due to the timing of sales and repurchases of Creation Unit Fund shares in relation to income earned and/or fluctuating fair value of the investments of the Fund. ^bBased on average daily shares outstanding. ^cTotal return is not annualized for periods less than one year. Total return is calculated assuming an initial investment made at the net asset value at the beginning of the period, reinvestment of all dividends and distributions at net asset value during the period, and redemption at net asset value on the last day of the period. ^dRatios are annualized for periods less than one year. ePortfolio turnover rate includes portfolio transactions that are executed as a result of the Fund offering and redeeming Creation Units solely for cash (“Cash creations”).
^fPortfolio turnover rate excluding cash creations was as follows:		3.00%			2.80%			5.76%			4.51%			—



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

FRANKLIN TEMPLETON ETF TRUST

Schedule of Investments, March 31, 2023

Franklin FTSE Japan ETF



	Industry	Shares		Value

Common Stocks 98.8%
Japan 98.8%
ABC-Mart, Inc.	Specialty Retail		6,500	$	357,502
Acom Co. Ltd.	Consumer Finance		97,500		233,695
Activia Properties, Inc.	Diversified REITs		195		553,836
Advance Residence Investment Corp.	Diversified REITs		325		772,879
Advantest Corp.	Semiconductors & Semiconductor Equipment		48,400		4,422,150
Aeon Co. Ltd.	Consumer Staples Distribution & Retail		182,000		3,508,994
AEON Financial Service Co. Ltd.	Consumer Finance		32,500		301,337
Aeon Mall Co. Ltd.	Real Estate Management & Development		32,500		424,168
AEON REIT Investment Corp.	Diversified REITs		455		495,375
AGC, Inc.	Building Products		45,500		1,683,729
Aica Kogyo Co. Ltd.	Building Products		13,000		296,454
Ain Holdings, Inc.	Consumer Staples Distribution & Retail		6,500		271,057
Air Water, Inc.	Chemicals		45,500		567,511
Aisin Corp.	Automobile Components		45,500		1,246,130
Ajinomoto Co., Inc.	Food Products		123,500		4,274,108
Alfresa Holdings Corp.	Health Care Providers & Services		45,500		579,818
Alps Alpine Co. Ltd.	Electronic Equipment, Instruments & Components		52,000		495,815
Amada Co. Ltd.	Machinery		78,000		725,554
Amano Corp.	Electronic Equipment, Instruments & Components		19,500		365,561
Amvis Holdings, Inc.	Health Care Providers & Services		6,500		149,936
^aANA Holdings, Inc.	Airlines		39,000		842,768
Anritsu Corp.	Electronic Equipment, Instruments & Components		32,500		298,163
Aozora Bank Ltd.	Banks		32,500		585,825
Ariake Japan Co. Ltd.	Food Products		6,500		238,335
AS One Corp.	Health Care Providers & Services		6,500		273,988
Asahi Group Holdings Ltd.	Beverages		123,500		4,569,194
Asahi Intecc Co. Ltd.	Health Care Equipment & Supplies		52,000		908,017
Asahi Kasei Corp.	Chemicals		318,500		2,216,745
Asics Corp.	Textiles, Apparel & Luxury Goods		45,500		1,282,027
ASKUL Corp.	Internet & Direct Marketing Retail		6,500		84,150
Astellas Pharma, Inc.	Pharmaceuticals		474,500		6,713,378
Azbil Corp.	Electronic Equipment, Instruments & Components		32,500		881,546
AZ-COM MARUWA Holdings, Inc.	Air Freight & Logistics		13,000		194,380
Bandai Namco Holdings, Inc.	Leisure Products		147,540		3,157,771
Bank of Kyoto Ltd.	Banks		19,500		915,734
BayCurrent Consulting, Inc.	Professional Services		32,500		1,330,866
Benefit One, Inc.	Professional Services		13,000		183,244
Benesse Holdings, Inc.	Diversified Consumer Services		19,500		284,244
Bic Camera, Inc.	Specialty Retail		39,000		326,148
BIPROGY, Inc.	IT Services		19,500		476,182
Bridgestone Corp.	Automobile Components		143,000		5,766,632
Brother Industries Ltd.	Technology Hardware, Storage & Peripherals		58,500		875,588
Calbee, Inc.	Food Products		19,500		406,000
Canon Marketing Japan, Inc.	Electronic Equipment, Instruments & Components		13,000		307,687
Canon, Inc.	Technology Hardware, Storage & Peripherals		253,500		5,629,418
Capcom Co. Ltd.	Entertainment		45,500		1,618,773
Casio Computer Co. Ltd.	Household Durables		52,000		507,146
Central Japan Railway Co.	Ground Transportation		46,600		5,535,698
Chiba Bank Ltd.	Banks		156,000		1,002,179
Chubu Electric Power Co., Inc.	Electric Utilities		182,000		1,913,126
Chugai Pharmaceutical Co. Ltd.	Pharmaceuticals		169,000		4,152,303
Chugin Financial Group, Inc.	Banks		45,500		303,926
^aChugoku Electric Power Co., Inc.	Electric Utilities		78,000		394,425
Coca-Cola Bottlers Japan Holdings, Inc.	Beverages		39,000		423,435
COMSYS Holdings Corp.	Construction & Engineering		26,000		477,256
Concordia Financial Group Ltd.	Banks		286,000		1,048,674
Cosmo Energy Holdings Co. Ltd.	Oil, Gas & Consumable Fuels		19,500		627,827



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Franklin FTSE Japan ETF (continued)



	Industry	Shares		Value

Common Stocks (continued)
Japan (continued)
Cosmos Pharmaceutical Corp.	Consumer Staples Distribution & Retail		4,340	$	388,705
Credit Saison Co. Ltd.	Consumer Finance		39,000		492,298
CyberAgent, Inc.	Media		110,500		925,746
Dai Nippon Printing Co. Ltd.	Commercial Services & Supplies		65,000		1,809,490
Daicel Corp.	Chemicals		65,000		488,391
Daido Steel Co. Ltd.	Metals & Mining		8,700		339,920
Daifuku Co. Ltd.	Machinery		78,000		1,431,768
Dai-ichi Life Holdings, Inc.	Insurance		247,000		4,519,085
Daiichi Sankyo Co. Ltd.	Pharmaceuticals		487,500		17,662,672
Daiichikosho Co. Ltd.	Entertainment		26,000		426,659
Daikin Industries Ltd.	Building Products		68,770		12,222,965
Daio Paper Corp.	Paper & Forest Products		19,500		151,499
Daito Trust Construction Co. Ltd.	Real Estate Management & Development		16,715		1,656,555
Daiwa House Industry Co. Ltd.	Real Estate Management & Development		169,000		3,954,211
Daiwa House REIT Investment Corp.	Diversified REITs		520		1,060,786
Daiwa Office Investment Corp.	Diversified REITs		65		295,965
Daiwa Securities Group, Inc.	Capital Markets		377,000		1,759,088
Daiwa Securities Living Investments Corp.	Diversified REITs		520		425,487
^aDeNA Co. Ltd.	Entertainment		19,500		264,903
Denka Co. Ltd.	Chemicals		19,500		400,725
Denso Corp.	Automobile Components		117,000		6,543,174
Dentsu Group, Inc.	Media		52,000		1,816,816
Descente Ltd.	Textiles, Apparel & Luxury Goods		13,000		404,388
DIC Corp.	Chemicals		19,500		348,711
Disco Corp.	Semiconductors & Semiconductor Equipment		21,372		2,456,921
DMG Mori Co. Ltd.	Machinery		26,000		435,254
Dowa Holdings Co. Ltd.	Metals & Mining		13,000		414,644
East Japan Railway Co.	Ground Transportation		92,720		5,110,085
Ebara Corp.	Machinery		26,000		1,197,536
Eisai Co. Ltd.	Pharmaceuticals		67,420		3,801,335
Electric Power Development Co. Ltd.	Independent Power Producers & Energy Traders		39,000		624,457
ENEOS Holdings, Inc.	Oil, Gas & Consumable Fuels		734,500		2,567,356
EXEO Group, Inc.	Construction & Engineering		26,000		468,270
Ezaki Glico Co. Ltd.	Food Products		13,000		325,757
Fancl Corp.	Personal Products		19,500		356,477
FANUC Corp.	Machinery		248,000		8,869,787
Fast Retailing Co. Ltd.	Specialty Retail		40,128		8,707,616
Food & Life Cos. Ltd.	Hotels, Restaurants & Leisure		26,000		672,026
FP Corp.	Containers & Packaging		13,000		320,385
Frontier Real Estate Investment Corp.	Diversified REITs		130		463,972
Fuji Electric Co. Ltd.	Electrical Equipment		32,500		1,269,817
Fuji Kyuko Co. Ltd.	Hotels, Restaurants & Leisure		6,500		214,404
Fuji Media Holdings, Inc.	Media		13,000		116,726
Fuji Oil Holdings, Inc.	Food Products		13,000		187,835
FUJIFILM Holdings Corp.	Technology Hardware, Storage & Peripherals		91,000		4,579,743
Fujikura Ltd.	Electrical Equipment		71,500		503,922
Fujitsu General Ltd.	Household Durables		13,000		364,828
Fujitsu Ltd.	IT Services		48,160		6,453,780
Fukuoka Financial Group, Inc.	Banks		39,000		746,946
Furukawa Electric Co. Ltd.	Electrical Equipment		13,000		240,386
Fuyo General Lease Co. Ltd.	Financial Services		6,500		439,552
GLP J-Reit	Diversified REITs		1,170		1,257,998
GMO internet group, Inc.	IT Services		13,000		250,740
GMO Payment Gateway, Inc.	IT Services		9,720		831,119
Goldwin, Inc.	Textiles, Apparel & Luxury Goods		8,580		812,292
GS Yuasa Corp.	Electrical Equipment		19,500		349,004
^aGungHo Online Entertainment, Inc.	Entertainment		6,500		118,288



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Franklin FTSE Japan ETF (continued)



	Industry	Shares		Value

Common Stocks (continued)
Japan (continued)
H.U. Group Holdings, Inc.	Health Care Providers & Services		13,000	$	260,410
Hachijuni Bank Ltd.	Banks		117,000		505,485
Hakuhodo DY Holdings, Inc.	Media		58,500		657,131
Hamamatsu Photonics KK	Electronic Equipment, Instruments & Components		32,500		1,736,231
Hankyu Hanshin Holdings, Inc.	Ground Transportation		58,500		1,725,242
Harmonic Drive Systems, Inc.	Machinery		13,000		429,296
Haseko Corp.	Household Durables		65,000		751,634
Heiwa Corp.	Leisure Products		13,000		256,796
Hikari Tsushin, Inc.	Specialty Retail		5,550		774,390
^aHino Motors Ltd.	Machinery		71,500		297,088
Hirogin Holdings, Inc.	Banks		78,000		366,880
Hirose Electric Co. Ltd.	Electronic Equipment, Instruments & Components		8,060		1,045,880
Hisamitsu Pharmaceutical Co., Inc.	Pharmaceuticals		19,500		553,836
Hitachi Construction Machinery Co. Ltd.	Machinery		26,000		600,721
Hitachi Ltd.	Industrial Conglomerates		234,000		12,750,530
Honda Motor Co. Ltd.	Automobiles		429,000		11,314,073
Horiba Ltd.	Electronic Equipment, Instruments & Components		9,200		546,788
Hoshizaki Corp.	Machinery		32,500		1,192,896
House Foods Group, Inc.	Food Products		19,500		411,714
Hoya Corp.	Health Care Equipment & Supplies		89,450		9,785,799
Hulic Co. Ltd.	Real Estate Management & Development		110,500		902,498
Ibiden Co. Ltd.	Electronic Equipment, Instruments & Components		26,000		1,027,575
Idemitsu Kosan Co. Ltd.	Oil, Gas & Consumable Fuels		58,500		1,274,701
IHI Corp.	Machinery		32,500		810,730
Iida Group Holdings Co. Ltd.	Household Durables		39,000		632,662
Industrial & Infrastructure Fund Investment Corp.	Diversified REITs		455		492,982
Information Services International-Dentsu Ltd.	IT Services		6,500		253,963
INFRONEER Holdings, Inc.	Construction & Engineering		58,500		449,222
Inpex Corp.	Oil, Gas & Consumable Fuels		247,000		2,592,674
Internet Initiative Japan, Inc.	Diversified Telecommunication Services		26,000		536,840
Invincible Investment Corp.	Hotel & Resort REITs		1,235		516,865
Isetan Mitsukoshi Holdings Ltd.	Broadline Retail		91,000		1,013,314
Isuzu Motors Ltd.	Automobiles		136,500		1,619,457
Ito En Ltd.	Beverages		13,000		422,458
ITOCHU Corp.	Trading Companies & Distributors		344,500		11,133,027
Itochu Techno-Solutions Corp.	IT Services		26,000		635,885
Itoham Yonekyu Holdings, Inc.	Food Products		32,500		170,937
Iwatani Corp.	Oil, Gas & Consumable Fuels		13,000		565,557
Iyogin Holdings, Inc.	Banks		71,500		403,997
Izumi Co. Ltd.	Broadline Retail		13,000		307,198
J Front Retailing Co. Ltd.	Broadline Retail		65,000		645,653
^aJapan Airlines Co. Ltd.	Airlines		39,000		756,616
^aJapan Airport Terminal Co. Ltd.	Transportation Infrastructure		13,000		644,677
Japan Aviation Electronics Industry Ltd.	Electronic Equipment, Instruments & Components		13,000		224,465
Japan Exchange Group, Inc.	Capital Markets		136,500		2,070,218
Japan Hotel REIT Investment Corp.	Diversified REITs		1,170		660,207
Japan Logistics Fund, Inc.	Diversified REITs		260		575,325
Japan Metropolitan Fund Invest	Diversified REITs		1,755		1,275,141
^bJapan Post Bank Co. Ltd.	Banks		390,000		3,173,567
Japan Post Holdings Co. Ltd.	Insurance		546,000		4,416,327
Japan Post Insurance Co. Ltd.	Insurance		52,000		807,604
Japan Prime Realty Investment Corp.	Diversified REITs		260		681,794
Japan Real Estate Investment Corp.	Diversified REITs		325		1,289,353
Japan Steel Works Ltd.	Machinery		19,500		363,217
Japan Tobacco, Inc.	Tobacco		305,500		6,422,639
JCR Pharmaceuticals Co. Ltd.	Pharmaceuticals		13,000		138,019



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Franklin FTSE Japan ETF (continued)



	Industry	Shares		Value

Common Stocks (continued)
Japan (continued)
Jeol Ltd.	Health Care Equipment & Supplies		13,000	$	414,644
JFE Holdings, Inc.	Metals & Mining		130,000		1,640,018
JGC Holdings Corp.	Construction & Engineering		52,000		641,160
JMDC, Inc.	Health Care Technology		6,500		222,218
JSR Corp.	Chemicals		45,500		1,064,937
JTEKT Corp.	Automobile Components		58,500		448,783
Justsystems Corp.	Software		6,500		171,670
Kadokawa Corp.	Media		26,000		550,515
Kagome Co. Ltd.	Food Products		19,500		452,739
Kajima Corp.	Construction & Engineering		110,500		1,326,764
Kakaku.com, Inc.	Interactive Media & Services		32,500		440,773
Kaken Pharmaceutical Co. Ltd.	Pharmaceuticals		6,500		180,461
Kamigumi Co. Ltd.	Transportation Infrastructure		26,000		543,091
Kandenko Co. Ltd.	Construction & Engineering		26,000		182,658
Kaneka Corp.	Chemicals		13,000		336,990
Kansai Electric Power Co., Inc.	Electric Utilities		188,500		1,828,488
Kansai Paint Co. Ltd.	Chemicals		45,500		611,271
Kao Corp.	Personal Products		117,000		4,542,332
Katitas Co. Ltd.	Real Estate Management & Development		13,000		251,912
Kawasaki Heavy Industries Ltd.	Machinery		39,000		848,043
Kawasaki Kisen Kaisha Ltd.	Marine Transportation		58,500		1,329,645
KDDI Corp.	Wireless Telecommunication Services		416,000		12,793,508
Keihan Holdings Co. Ltd.	Industrial Conglomerates		26,000		674,957
Keikyu Corp.	Ground Transportation		65,000		614,885
Keio Corp.	Ground Transportation		29,120		1,016,323
Keisei Electric Railway Co. Ltd.	Ground Transportation		32,500		995,097
Kenedix Office Investment Corp.	Diversified REITs		195		449,076
Kewpie Corp.	Food Products		26,000		435,254
Keyence Corp.	Electronic Equipment, Instruments & Components		50,617		24,511,726
Kikkoman Corp.	Food Products		45,500		2,304,230
Kinden Corp.	Construction & Engineering		32,500		389,492
Kintetsu Group Holdings Co. Ltd.	Ground Transportation		45,500		1,458,092
Kirin Holdings Co. Ltd.	Beverages		195,000		3,071,005
Kobayashi Pharmaceutical Co. Ltd.	Personal Products		15,080		916,652
Kobe Bussan Co. Ltd.	Consumer Staples Distribution & Retail		39,000		1,079,833
Kobe Steel Ltd.	Metals & Mining		84,500		668,559
Koei Tecmo Holdings Co. Ltd.	Entertainment		39,000		699,767
Koito Manufacturing Co. Ltd.	Automobile Components		59,540		1,118,416
Kokuyo Co. Ltd.	Commercial Services & Supplies		19,500		275,160
Komatsu Ltd.	Machinery		240,500		5,921,696
Konami Group Corp.	Entertainment		26,000		1,185,814
Konica Minolta, Inc.	Technology Hardware, Storage & Peripherals		117,000		500,210
Kose Corp.	Personal Products		7,280		857,693
Kotobuki Spirits Co. Ltd.	Food Products		6,500		457,623
K’s Holdings Corp.	Specialty Retail		39,000		340,799
Kubota Corp.	Machinery		279,500		4,198,065
Kuraray Co. Ltd.	Chemicals		84,500		772,684
Kurita Water Industries Ltd.	Machinery		26,000		1,179,953
Kusuri No. Aoki Holdings Co. Ltd.	Consumer Staples Distribution & Retail		3,420		172,426
Kyocera Corp.	Electronic Equipment, Instruments & Components		78,700		4,073,075
Kyowa Kirin Co. Ltd.	Pharmaceuticals		65,000		1,409,497
Kyudenko Corp.	Construction & Engineering		13,000		328,687
^aKyushu Electric Power Co., Inc.	Electric Utilities		117,000		665,482
Kyushu Financial Group, Inc.	Banks		97,500		349,444
Kyushu Railway Co.	Ground Transportation		39,000		864,160
LaSalle Logiport REIT	Diversified REITs		455		525,460
Lasertec Corp.	Semiconductors & Semiconductor Equipment		19,500		3,410,925



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Franklin FTSE Japan ETF (continued)



	Industry	Shares		Value

Common Stocks (continued)
Japan (continued)
Lawson, Inc.	Consumer Staples Distribution & Retail		13,000	$	547,975
Lintec Corp.	Chemicals		13,000		211,473
Lion Corp.	Household Products		65,000		698,888
Lixil Corp.	Building Products		65,000		1,063,228
M3, Inc.	Health Care Technology		107,972		2,678,004
Mabuchi Motor Co. Ltd.	Electrical Equipment		13,000		376,550
Makita Corp.	Machinery		65,000		1,601,924
Mani, Inc.	Health Care Equipment & Supplies		13,000		176,407
Marubeni Corp.	Trading Companies & Distributors		396,500		5,349,130
Marui Group Co. Ltd.	Broadline Retail		45,500		691,611
Maruichi Steel Tube Ltd.	Metals & Mining		13,000		284,244
Matsui Securities Co. Ltd.	Capital Markets		26,000		152,964
MatsukiyoCocokara & Co.	Consumer Staples Distribution & Retail		32,500		1,711,812
Mazda Motor Corp.	Automobiles		149,500		1,376,043
McDonald’s Holdings Co. Japan Ltd.	Hotels, Restaurants & Leisure		19,500		808,776
Mebuki Financial Group, Inc.	Banks		260,000		632,955
Medipal Holdings Corp.	Health Care Providers & Services		39,000		528,635
MEIJI Holdings Co. Ltd.	Food Products		65,000		1,540,875
Menicon Co. Ltd.	Health Care Equipment & Supplies		13,000		274,183
^aMercari, Inc.	Broadline Retail		32,500		563,848
MINEBEA MITSUMI, Inc.	Machinery		104,000		1,962,161
MISUMI Group, Inc.	Machinery		71,500		1,772,860
Mitsubishi Chemical Group Corp.	Chemicals		331,500		1,957,018
Mitsubishi Corp.	Trading Companies & Distributors		305,500		10,905,632
Mitsubishi Electric Corp.	Electrical Equipment		500,500		5,936,128
Mitsubishi Estate Co. Ltd.	Real Estate Management & Development		286,000		3,387,775
Mitsubishi Gas Chemical Co., Inc.	Chemicals		45,500		671,099
Mitsubishi HC Capital, Inc.	Financial Services		169,000		868,555
Mitsubishi Heavy Industries Ltd.	Machinery		71,500		2,619,536
Mitsubishi Logistics Corp.	Transportation Infrastructure		13,000		303,779
Mitsubishi Materials Corp.	Metals & Mining		32,500		526,730
^aMitsubishi Motors Corp.	Automobiles		162,500		637,351
Mitsubishi UFJ Financial Group, Inc.	Banks		3,009,500		19,173,154
Mitsui & Co. Ltd.	Trading Companies & Distributors		390,000		12,061,312
Mitsui Chemicals, Inc.	Chemicals		45,500		1,165,790
Mitsui Fudosan Co. Ltd.	Real Estate Management & Development		234,000		4,367,391
Mitsui Fudosan Logistics Park, Inc.	Diversified REITs		130		454,204
Mitsui High-Tec, Inc.	Semiconductors & Semiconductor Equipment		6,500		408,295
Mitsui Mining & Smelting Co. Ltd.	Metals & Mining		13,000		314,036
^bMitsui OSK Lines Ltd.	Marine Transportation		84,500		2,101,548
Miura Co. Ltd.	Machinery		26,000		660,305
Mizuho Financial Group, Inc.	Banks		656,500		9,263,709
^aMoney Forward, Inc.	Software		13,000		445,901
MonotaRO Co. Ltd.	Trading Companies & Distributors		60,580		754,234
Mori Hills REIT Investment Corp.	Diversified REITs		390		432,519
Morinaga & Co. Ltd.	Food Products		13,000		366,782
Morinaga Milk Industry Co. Ltd.	Food Products		6,500		232,963
MS&AD Insurance Group Holdings, Inc.	Insurance		118,660		3,660,816
Murata Manufacturing Co. Ltd.	Electronic Equipment, Instruments & Components		143,000		8,638,666
Nabtesco Corp.	Machinery		32,500		791,194
Nagase & Co. Ltd.	Trading Companies & Distributors		26,000		397,551
Nagoya Railroad Co. Ltd.	Ground Transportation		52,000		798,617
Nankai Electric Railway Co. Ltd.	Ground Transportation		26,000		571,418
NEC Corp.	IT Services		65,000		2,490,796
NEC Networks & System Integration Corp.	IT Services		13,000		157,750
NET One Systems Co. Ltd.	IT Services		19,500		463,728
Nexon Co. Ltd.	Entertainment		104,000		2,465,399



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Franklin FTSE Japan ETF (continued)



	Industry	Shares			Value

Common Stocks (continued)
Japan (continued)
NGK Insulators Ltd.	Machinery		65,000		$	855,662
NGK Spark Plug Co. Ltd.	Automobile Components		52,000			1,068,991
NH Foods Ltd.	Food Products		26,000	��		749,192
NHK Spring Co. Ltd.	Automobile Components		39,000			277,504
Nichirei Corp.	Food Products		26,000			524,337
Nidec Corp.	Electrical Equipment		117,650			6,050,900
Nifco, Inc.	Automobile Components		19,500			549,440
Nihon Kohden Corp.	Health Care Equipment & Supplies		19,500			525,997
Nihon M&A Center Holdings, Inc.	Professional Services		67,060			495,808
Nikon Corp.	Household Durables		78,000			794,124
Nintendo Co. Ltd.	Entertainment		273,000			10,524,931
Nippon Accommodations Fund, Inc.	Diversified REITs		130			583,139
Nippon Building Fund, Inc.	Diversified REITs		390			1,614,622
Nippon Electric Glass Co. Ltd.	Electronic Equipment, Instruments & Components		19,500			373,473
Nippon Express Co. Ltd.	Ground Transportation		19,500			1,167,744
Nippon Kayaku Co. Ltd.	Chemicals		45,500			409,223
Nippon Paint Holdings Co. Ltd.	Chemicals		260,000			2,418,514
Nippon Prologis REIT, Inc.	Diversified REITs		650			1,368,961
Nippon Sanso Holdings Corp.	Chemicals		39,000			698,009
Nippon Shinyaku Co. Ltd.	Pharmaceuticals		13,000			569,464
Nippon Shokubai Co. Ltd.	Chemicals		6,500			257,871
Nippon Steel Corp.	Metals & Mining		214,500			5,028,477
Nippon Steel Trading Corp.	Trading Companies & Distributors		6,500			453,716
Nippon Telegraph & Telephone Corp.	Diversified Telecommunication Services		299,000			8,901,029
^bNippon Yusen KK	Marine Transportation		124,170			2,881,968
Nipro Corp.	Health Care Equipment & Supplies		32,500			248,835
Nishi-Nippon Railroad Co. Ltd.	Ground Transportation		19,500			350,470
Nissan Chemical Corp.	Chemicals		34,260			1,541,945
Nissan Motor Co. Ltd.	Automobiles		494,000			1,859,970
Nisshin Seifun Group, Inc.	Food Products		65,000			757,495
Nissin Foods Holdings Co. Ltd.	Food Products		19,500			1,777,256
Nitori Holdings Co. Ltd.	Specialty Retail		19,500			2,334,022
Nitto Denko Corp.	Chemicals		39,000			2,505,447
Noevir Holdings Co. Ltd.	Personal Products		6,500			263,731
NOF Corp.	Chemicals		19,500			904,012
NOK Corp.	Automobile Components		26,000			285,807
Nomura Holdings, Inc.	Capital Markets		780,000			2,987,197
Nomura Real Estate Holdings, Inc.	Real Estate Management & Development		26,000			572,395
Nomura Real Estate Master Fund, Inc.	Diversified REITs		1,170			1,305,470
Nomura Research Institute Ltd.	IT Services		110,500			2,544,763
NS Solutions Corp.	IT Services		6,500			172,891
NSK Ltd.	Machinery		117,000			664,603
NTT Data Corp.	IT Services		162,500			2,114,734
Obayashi Corp.	Construction & Engineering		175,500			1,335,799
OBIC Business Consultants Co. Ltd.	Software		6,500			243,707
Obic Co. Ltd.	IT Services		17,500			2,748,140
Odakyu Electric Railway Co. Ltd.	Ground Transportation		78,000			1,008,040
Oji Holdings Corp.	Paper & Forest Products		227,500			895,710
OKUMA Corp.	Machinery		6,500			288,639
Olympus Corp.	Health Care Equipment & Supplies		318,500			5,548,443
Omron Corp.	Electronic Equipment, Instruments & Components		47,300			2,739,057
Ono Pharmaceutical Co. Ltd.	Pharmaceuticals		110,500			2,294,853
Open House Group Co. Ltd.	Household Durables		19,500			725,261
Oracle Corp. Japan	Software		8,320			595,759
Orient Corp.	Consumer Finance		14,200			117,684
Oriental Land Co. Ltd.	Hotels, Restaurants & Leisure		238,600			8,117,671
ORIX Corp.	Financial Services		305,500			4,996,023



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Franklin FTSE Japan ETF (continued)



	Industry	Shares		Value

Common Stocks (continued)
Japan (continued)
Orix JREIT, Inc.	Diversified REITs		650	$	820,497
Osaka Gas Co. Ltd.	Gas Utilities		104,000		1,704,290
OSG Corp.	Machinery		19,500		291,277
Otsuka Corp.	IT Services		26,000		915,245
Otsuka Holdings Co. Ltd.	Pharmaceuticals		110,500		3,489,605
PALTAC Corp.	Distributors		6,500		245,172
Pan Pacific International Holdings Corp.	Broadline Retail		104,000		1,999,669
Panasonic Holdings Corp.	Household Durables		552,500		4,906,868
^aPark24 Co. Ltd.	Commercial Services & Supplies		32,500		472,519
Penta-Ocean Construction Co. Ltd.	Construction & Engineering		71,500		339,530
^aPeptiDream, Inc.	Biotechnology		21,200		299,307
Persol Holdings Co. Ltd.	Professional Services		45,500		907,333
Pigeon Corp.	Household Products		26,000		400,286
Pola Orbis Holdings, Inc.	Personal Products		19,500		252,303
Rakus Co. Ltd.	Software		26,000		370,787
^aRakuten Group, Inc.	Internet & Direct Marketing Retail		208,000		959,591
Recruit Holdings Co. Ltd.	Professional Services		351,000		9,626,193
Relo Group, Inc.	Real Estate Management & Development		26,000		411,225
^aRenesas Electronics Corp.	Semiconductors & Semiconductor Equipment		312,000		4,485,777
Rengo Co. Ltd.	Containers & Packaging		52,000		335,623
^aRENOVA, Inc.	Independent Power Producers & Energy Traders		13,000		194,380
Resona Holdings, Inc.	Banks		552,500		2,654,773
Resonac Holdings Corp.	Chemicals		45,500		743,918
Resorttrust, Inc.	Hotels, Restaurants & Leisure		19,500		309,005
Ricoh Co. Ltd.	Technology Hardware, Storage & Peripherals		149,500		1,113,190
Rinnai Corp.	Household Durables		25,500		619,825
Rohm Co. Ltd.	Semiconductors & Semiconductor Equipment		21,060		1,735,879
Rohto Pharmaceutical Co. Ltd.	Personal Products		52,000		1,082,275
Ryohin Keikaku Co. Ltd.	Broadline Retail		58,500		661,086
Sankyo Co. Ltd.	Leisure Products		13,000		540,161
Sankyu, Inc.	Ground Transportation		13,000		479,112
Sanrio Co. Ltd.	Specialty Retail		13,000		579,232
Santen Pharmaceutical Co. Ltd.	Pharmaceuticals		84,500		717,447
Sanwa Holdings Corp.	Building Products		52,000		553,250
Sapporo Holdings Ltd.	Beverages		13,000		332,594
Sawai Group Holdings Co. Ltd.	Pharmaceuticals		6,500		178,263
SBI Holdings, Inc.	Capital Markets		65,000		1,281,539
^aSBI Shinsei Bank Ltd.	Banks		13,000		227,786
SCREEN Holdings Co. Ltd.	Semiconductors & Semiconductor Equipment		10,200		892,854
SCSK Corp.	IT Services		32,500		472,519
Secom Co. Ltd.	Commercial Services & Supplies		52,000		3,189,781
Sega Sammy Holdings, Inc.	Leisure Products		39,000		736,396
Seibu Holdings, Inc.	Industrial Conglomerates		52,000		530,979
Seiko Epson Corp.	Technology Hardware, Storage & Peripherals		65,000		918,664
Seino Holdings Co. Ltd.	Ground Transportation		32,500		356,526
Sekisui Chemical Co. Ltd.	Household Durables		84,500		1,191,089
Sekisui House Ltd.	Household Durables		143,000		2,898,895
Sekisui House Reit, Inc.	Diversified REITs		1,040		561,845
Seven & i Holdings Co. Ltd.	Consumer Staples Distribution & Retail		201,500		9,046,228
Seven Bank Ltd.	Banks		169,000		336,502
SG Holdings Co. Ltd.	Air Freight & Logistics		110,500		1,627,320
^aSharp Corp.	Household Durables		52,000		364,535
^aSHIFT, Inc.	IT Services		2,600		458,306
^aShikoku Electric Power Co., Inc.	Electric Utilities		39,000		220,655
Shimadzu Corp.	Electronic Equipment, Instruments & Components		71,500		2,224,134
Shimamura Co. Ltd.	Specialty Retail		6,500		659,328
Shimano, Inc.	Leisure Products		19,483		3,343,540



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Franklin FTSE Japan ETF (continued)



	Industry	Shares		Value

Common Stocks (continued)
Japan (continued)
Shimizu Corp.	Construction & Engineering		136,500	$	769,216
Shin-Etsu Chemical Co. Ltd.	Chemicals		502,400		16,137,651
Shinko Electric Industries Co. Ltd.	Semiconductors & Semiconductor Equipment		19,500		597,791
Shionogi & Co. Ltd.	Pharmaceuticals		71,500		3,211,026
Ship Healthcare Holdings, Inc.	Health Care Providers & Services		19,500		357,063
Shiseido Co. Ltd.	Personal Products		99,400		4,616,360
Shizuoka Financial Group, Inc.	Banks		130,000		928,920
SHO-BOND Holdings Co. Ltd.	Construction & Engineering		13,000		535,277
^aShochiku Co. Ltd.	Entertainment		1,820		156,305
^aSkylark Holdings Co. Ltd.	Hotels, Restaurants & Leisure		58,500		760,425
SMC Corp.	Machinery		14,456		7,584,811
SMS Co. Ltd.	Professional Services		13,000		312,082
SoftBank Corp.	Wireless Telecommunication Services		708,500		8,139,578
SoftBank Group Corp.	Wireless Telecommunication Services		251,100		9,776,844
Sohgo Security Services Co. Ltd.	Commercial Services & Supplies		19,500		522,335
Sojitz Corp.	Trading Companies & Distributors		60,720		1,260,571
Sompo Holdings, Inc.	Insurance		78,000		3,078,037
Sony Group Corp.	Household Durables		321,000		28,906,642
Sotetsu Holdings, Inc.	Ground Transportation		19,500		332,301
Square Enix Holdings Co. Ltd.	Entertainment		19,500		931,851
Stanley Electric Co. Ltd.	Automobile Components		39,000		858,885
Subaru Corp.	Automobiles		156,000		2,478,488
Sugi Holdings Co. Ltd.	Consumer Staples Distribution & Retail		8,620		368,531
SUMCO Corp.	Semiconductors & Semiconductor Equipment		91,000		1,354,504
Sumitomo Bakelite Co. Ltd.	Chemicals		6,500		252,010
Sumitomo Chemical Co. Ltd.	Chemicals		390,000		1,304,005
Sumitomo Corp.	Trading Companies & Distributors		292,500		5,144,958
Sumitomo Electric Industries Ltd.	Automobile Components		195,000		2,486,400
Sumitomo Forestry Co. Ltd.	Household Durables		32,500		639,793
Sumitomo Heavy Industries Ltd.	Machinery		32,500		791,194
Sumitomo Metal Mining Co. Ltd.	Metals & Mining		58,500		2,219,299
Sumitomo Mitsui Financial Group, Inc.	Banks		331,500		13,196,236
Sumitomo Mitsui Trust Holdings, Inc.	Banks		91,000		3,104,899
Sumitomo Pharma Co. Ltd.	Pharmaceuticals		45,500		276,918
Sumitomo Realty & Development Co. Ltd.	Real Estate Management & Development		104,000		2,330,213
Sumitomo Rubber Industries Ltd.	Automobile Components		45,500		408,881
Sundrug Co. Ltd.	Consumer Staples Distribution & Retail		16,640		454,477
Suntory Beverage & Food Ltd.	Beverages		32,500		1,205,106
Suzuken Co. Ltd.	Health Care Providers & Services		19,500		490,101
Suzuki Motor Corp.	Automobiles		117,000		4,223,217
Sysmex Corp.	Health Care Equipment & Supplies		48,240		3,132,755
T&D Holdings, Inc.	Insurance		130,000		1,602,900
Taiheiyo Cement Corp.	Construction Materials		32,500		607,315
Taisei Corp.	Construction & Engineering		45,500		1,399,974
Taisho Pharmaceutical Holdings Co. Ltd.	Pharmaceuticals		13,000		539,184
Taiyo Yuden Co. Ltd.	Electronic Equipment, Instruments & Components		32,500		1,084,229
Takara Bio, Inc.	Biotechnology		13,000		169,276
Takara Holdings, Inc.	Beverages		45,500		349,395
Takashimaya Co. Ltd.	Broadline Retail		39,000		566,436
Takeda Pharmaceutical Co. Ltd.	Pharmaceuticals		390,000		12,747,013
TBS Holdings, Inc.	Media		13,000		186,077
TDK Corp.	Electronic Equipment, Instruments & Components		93,200		3,308,814
TechnoPro Holdings, Inc.	Professional Services		27,160		743,844
Teijin Ltd.	Chemicals		45,500		477,256
Terumo Corp.	Health Care Equipment & Supplies		169,000		4,538,327
THK Co. Ltd.	Machinery		32,500		746,018
TIS, Inc.	IT Services		58,500		1,534,037



260	Annual Report	franklintempleton.com

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SCHEDULE OF INVESTMENTS

Franklin FTSE Japan ETF (continued)



	Industry	Shares		Value

Common Stocks (continued)
Japan (continued)
Tobu Railway Co. Ltd.	Ground Transportation		52,000	$	1,238,560
Toda Corp.	Construction & Engineering		58,500		303,731
Toei Animation Co. Ltd.	Entertainment		1,500		148,321
Toho Co. Ltd.	Entertainment		26,000		990,458
Toho Gas Co. Ltd.	Gas Utilities		22,900		423,794
^aTohoku Electric Power Co., Inc.	Electric Utilities		123,500		611,515
Tokai Carbon Co. Ltd.	Chemicals		52,000		492,298
Tokio Marine Holdings, Inc.	Insurance		481,000		9,205,102
Tokyo Century Corp.	Financial Services		15,410		510,039
^aTokyo Electric Power Co. Holdings, Inc.	Electric Utilities		403,000		1,432,256
Tokyo Electron Ltd.	Semiconductors & Semiconductor Equipment		115,125		13,874,859
Tokyo Gas Co. Ltd.	Gas Utilities		110,500		2,072,342
Tokyo Ohka Kogyo Co. Ltd.	Chemicals		9,100		525,802
Tokyo Tatemono Co. Ltd.	Real Estate Management & Development		52,000		631,002
Tokyu Corp.	Ground Transportation		156,000		2,065,309
Tokyu Fudosan Holdings Corp.	Real Estate Management & Development		156,000		744,308
TOPPAN, Inc.	Commercial Services & Supplies		71,500		1,431,719
Toray Industries, Inc.	Chemicals		396,500		2,253,457
Toshiba Corp.	Industrial Conglomerates		110,500		3,690,529
Toshiba TEC Corp.	Technology Hardware, Storage & Peripherals		6,500		190,961
Tosoh Corp.	Chemicals		71,500		965,403
TOTO Ltd.	Building Products		39,000		1,295,214
Toyo Seikan Group Holdings Ltd.	Containers & Packaging		32,500		445,901
Toyo Suisan Kaisha Ltd.	Food Products		26,000		1,084,229
Toyo Tire Corp.	Automobile Components		26,000		301,826
Toyoda Gosei Co. Ltd.	Automobile Components		19,500		334,060
Toyota Boshoku Corp.	Automobile Components		13,000		208,738
Toyota Industries Corp.	Automobile Components		39,000		2,153,806
Toyota Motor Corp.	Automobiles		3,107,000		43,888,797
Toyota Tsusho Corp.	Trading Companies & Distributors		58,500		2,470,283
^aTrend Micro, Inc.	Software		32,500		1,579,946
TS Tech Co. Ltd.	Automobile Components		26,000		328,004
Tsumura & Co.	Pharmaceuticals		19,500		385,341
Tsuruha Holdings, Inc.	Consumer Staples Distribution & Retail		8,750		581,843
UBE Corp.	Chemicals		26,000		401,458
Ulvac, Inc.	Semiconductors & Semiconductor Equipment		13,000		561,650
Unicharm Corp.	Household Products		97,500		3,986,006
United Urban Investment Corp.	Diversified REITs		780		838,080
Ushio, Inc.	Electrical Equipment		26,000		325,269
USS Co. Ltd.	Specialty Retail		52,000		896,686
Welcia Holdings Co. Ltd.	Consumer Staples Distribution & Retail		26,000		553,640
West Japan Railway Co.	Ground Transportation		58,500		2,398,636
Workman Co. Ltd.	Specialty Retail		13,000		546,998
Yakult Honsha Co. Ltd.	Food Products		32,500		2,351,604
^aYamada Holdings Co. Ltd.	Specialty Retail		156,000		534,495
Yamaguchi Financial Group, Inc.	Banks		52,000		317,259
Yamaha Corp.	Leisure Products		39,000		1,491,547
Yamaha Motor Co. Ltd.	Automobiles		78,000		2,027,801
Yamato Holdings Co. Ltd.	Air Freight & Logistics		84,500		1,440,608
Yamato Kogyo Co. Ltd.	Metals & Mining		6,500		260,801
Yamazaki Baking Co. Ltd.	Food Products		32,500		391,690
Yaoko Co. Ltd.	Consumer Staples Distribution & Retail		6,500		336,990
Yaskawa Electric Corp.	Machinery		65,000		2,818,018
Yokogawa Electric Corp.	Electronic Equipment, Instruments & Components		65,000		1,050,041
Yokohama Rubber Co. Ltd.	Automobile Components		32,500		683,015
Z Holdings Corp.	Interactive Media & Services		682,500		1,911,759
Zenkoku Hosho Co. Ltd.	Financial Services		13,000		487,903



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Franklin FTSE Japan ETF (continued)



	Industry	Shares		Value

Common Stocks (continued)
Japan (continued)
Zensho Holdings Co. Ltd.	Hotels, Restaurants & Leisure		26,000	$	766,774
Zeon Corp.	Chemicals		39,000		409,956
ZOZO, Inc.	Internet & Direct Marketing Retail		26,000		589,000

Total Investments before Short-Term Investments (Cost $1,089,076,854)					988,568,241


Short-Term Investments 0.4%
Investments from Cash Collateral Received for Loaned Securities 0.4%
United States 0.4%
^c,dInstitutional Fiduciary Trust Portfolio, 4.47%	Money Market Funds		4,355,834		4,355,834

Money Market Funds 0.0%^†
United States 0.0%^†
^c^,dInstitutional Fiduciary Trust - Money Market Portfolio, 4.47%	Money Market Funds		61,459		61,459

Total Short-Term Investments (Cost $4,417,293)					4,417,293

Total Investments (Cost $1,093,494,147) 99.2%					992,985,534
Other Assets, less Liabilities 0.8%	.				7,817,688

Net Assets 100.0%				$	1,000,803,222

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

^aNon-income producing.

^bA portion or all of the security is on loan at March 31, 2023 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, 2023, the Fund had the following futures contracts outstanding. See Note 1(c).

Futures Contracts

Value/Unrealized

Description

Type

Number of

Contracts

Notional

Amount

Expiration

Date

Appreciation

(Depreciation)

Index Contracts

Nikkei 225 Mini

$10,955,594

6/08/23

$162,284

*As of year end.

See Note 7 regarding other derivative information.

See Abbreviations on page 355.



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,

	2023			2022			2021		2020			2019

Per share operating performance

(for a share outstanding throughout the year)

Net asset value, beginning of year		$30.90			$30.70			$21.35		$23.12			$25.11

Income from investment operations^a:

Net investment income^b		0.58			0.68			0.88		0.38			0.38

Net realized and unrealized gains (losses)		1.56			(0.08	)		8.47		(2.15	)		(1.11	)

Total from investment operations		2.14			0.60			9.35		(1.77	)		(0.73	)

Less distributions from:

Net investment income		(0.92	)		(0.40	)		—		—			(0.01	)

Net realized gains		(5.55	)		—			—		—			(1.25	)

Total distributions		(6.47	)		(0.40	)		—		—			(1.26	)

Net asset value, end of year		$26.57			$30.90			$30.70		$21.35			$23.12

Total return^c		8.15%			1.93%			43.84%		(7.66)%			(2.59)%

Ratios to average net assets^d

Expenses before waiver and payments by affiliates		0.09%			0.09%			0.09%		0.09%			0.09%

Expenses net of waiver and payments by affiliates		0.09%			0.09%			0.09%		0.09%			0.09%

Net investment income		1.99%			2.22%			3.29%		1.59%			1.51%

Supplemental data

Net assets, end of year (000’s)		$13,284			$24,720			$24,563		$4,269			$13,870

Portfolio turnover rate^e		31.96%^f			5.46%^f			6.31%^f		10.06%^f			19.78%

^aThe amount shown for a share outstanding throughout the period may not correlate with the Statement of Operations for the period due to the timing of sales and repurchases of Creation Unit Fund shares in relation to income earned and/or fluctuating fair value of the investments of the Fund. ^bBased on average daily shares outstanding. ^cTotal return is not annualized for periods less than one year. Total return is calculated assuming an initial investment made at the net asset value at the beginning of the period, reinvestment of all dividends and distributions at net asset value during the period, and redemption at net asset value on the last day of the period. ^dRatios are annualized for periods less than one year. ^ePortfolio turnover rate includes portfolio transactions that are executed as a result of the Fund offering and redeeming Creation Units solely for cash (“Cash creations”).
^fPortfolio turnover rate excluding cash creations was as follows:		31.39%			5.03%			6.31%		10.06%			—



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FRANKLIN TEMPLETON ETF TRUST

Schedule of Investments, March 31, 2023

Franklin FTSE Japan Hedged ETF



	Industry	Shares		Value

Common Stocks 98.1%
Japan 98.1%
ABC-Mart, Inc.	Specialty Retail		70	$	3,850
Acom Co. Ltd.	Consumer Finance		1,500		3,595
Activia Properties, Inc.	Diversified REITs		2		5,680
Advance Residence Investment Corp.	Diversified REITs		5		11,890
Advantest Corp.	Semiconductors & Semiconductor Equipment		625		57,104
Aeon Co. Ltd.	Consumer Staples Distribution & Retail		2,500		48,200
AEON Financial Service Co. Ltd.	Consumer Finance		415		3,848
Aeon Mall Co. Ltd.	Real Estate Management & Development		400		5,221
AEON REIT Investment Corp.	Diversified REITs		6		6,532
AGC, Inc.	Building Products		635		23,498
Aica Kogyo Co. Ltd.	Building Products		185		4,219
Ain Holdings, Inc.	Consumer Staples Distribution & Retail		100		4,170
Air Water, Inc.	Chemicals		615		7,671
Aisin Corp.	Automobile Components		585		16,022
Ajinomoto Co., Inc.	Food Products		1,589		54,992
Alfresa Holdings Corp.	Health Care Providers & Services		534		6,805
Alps Alpine Co. Ltd.	Electronic Equipment, Instruments & Components		720		6,865
Amada Co. Ltd.	Machinery		1,115		10,372
Amano Corp.	Electronic Equipment, Instruments & Components		198		3,712
Amvis Holdings, Inc.	Health Care Providers & Services		100		2,307
^aANA Holdings, Inc.	Airlines		540		11,669
Anritsu Corp.	Electronic Equipment, Instruments & Components		500		4,587
Aozora Bank Ltd.	Banks		400		7,210
Ariake Japan Co. Ltd.	Food Products		60		2,200
AS One Corp.	Health Care Providers & Services		95		4,004
Asahi Group Holdings Ltd.	Beverages		1,720		63,636
Asahi Intecc Co. Ltd.	Health Care Equipment & Supplies		650		11,350
Asahi Kasei Corp.	Chemicals		4,000		27,840
Asics Corp.	Textiles, Apparel & Luxury Goods		550		15,497
ASKUL Corp.	Internet & Direct Marketing Retail		120		1,554
Astellas Pharma, Inc.	Pharmaceuticals		6,259		88,554
Azbil Corp.	Electronic Equipment, Instruments & Components		445		12,070
AZ-COM MARUWA Holdings, Inc.	Air Freight & Logistics		125		1,869
Bandai Namco Holdings, Inc.	Leisure Products		1,944		41,607
Bank of Kyoto Ltd.	Banks		243		11,411
BayCurrent Consulting, Inc.	Professional Services		500		20,475
Benefit One, Inc.	Professional Services		179		2,523
Benesse Holdings, Inc.	Diversified Consumer Services		265		3,863
Bic Camera, Inc.	Specialty Retail		500		4,181
BIPROGY, Inc.	IT Services		210		5,128
Bridgestone Corp.	Automobile Components		1,900		76,620
Brother Industries Ltd.	Technology Hardware, Storage & Peripherals		750		11,225
Calbee, Inc.	Food Products		215		4,476
Canon Marketing Japan, Inc.	Electronic Equipment, Instruments & Components		135		3,195
Canon, Inc.	Technology Hardware, Storage & Peripherals		3,265		72,505
Capcom Co. Ltd.	Entertainment		580		20,635
Casio Computer Co. Ltd.	Household Durables		700		6,827
Central Japan Railway Co.	Ground Transportation		630		74,839
Chiba Bank Ltd.	Banks		2,000		12,848
Chubu Electric Power Co., Inc.	Electric Utilities		2,500		26,279
Chugai Pharmaceutical Co. Ltd.	Pharmaceuticals		2,268		55,724
Chugin Financial Group, Inc.	Banks		525		3,507
^aChugoku Electric Power Co., Inc.	Electric Utilities		1,000		5,057
Coca-Cola Bottlers Japan Holdings, Inc.	Beverages		500		5,429
COMSYS Holdings Corp.	Construction & Engineering		360		6,608
Concordia Financial Group Ltd.	Banks		4,000		14,667
Cosmo Energy Holdings Co. Ltd.	Oil, Gas & Consumable Fuels		225		7,244



264	Annual Report	franklintempleton.com

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SCHEDULE OF INVESTMENTS

Franklin FTSE Japan Hedged ETF (continued)



	Industry	Shares		Value

Common Stocks (continued)
Japan (continued)
Cosmos Pharmaceutical Corp.	Consumer Staples Distribution & Retail		61	$	5,463
Credit Saison Co. Ltd.	Consumer Finance		525		6,627
CyberAgent, Inc.	Media		1,500		12,567
Dai Nippon Printing Co. Ltd.	Commercial Services & Supplies		870		24,219
Daicel Corp.	Chemicals		1,000		7,514
Daido Steel Co. Ltd.	Metals & Mining		120		4,689
Daifuku Co. Ltd.	Machinery		1,023		18,778
Dai-ichi Life Holdings, Inc.	Insurance		3,300		60,376
Daiichi Sankyo Co. Ltd.	Pharmaceuticals		6,400		231,879
Daiichikosho Co. Ltd.	Entertainment		230		3,774
Daikin Industries Ltd.	Building Products		920		163,518
Daio Paper Corp.	Paper & Forest Products		315		2,447
Daito Trust Construction Co. Ltd.	Real Estate Management & Development		200		19,821
Daiwa House Industry Co. Ltd.	Real Estate Management & Development		2,243		52,481
Daiwa House REIT Investment Corp.	Diversified REITs		7		14,280
Daiwa Office Investment Corp.	Diversified REITs		1		4,553
Daiwa Securities Group, Inc.	Capital Markets		5,000		23,330
Daiwa Securities Living Investments Corp.	Diversified REITs		7		5,728
^aDeNA Co. Ltd.	Entertainment		300		4,075
Denka Co. Ltd.	Chemicals		265		5,446
Denso Corp.	Automobile Components		1,500		83,887
Dentsu Group, Inc.	Media		690		24,108
Descente Ltd.	Textiles, Apparel & Luxury Goods		140		4,355
DIC Corp.	Chemicals		275		4,918
Disco Corp.	Semiconductors & Semiconductor Equipment		300		34,488
DMG Mori Co. Ltd.	Machinery		360		6,027
Dowa Holdings Co. Ltd.	Metals & Mining		135		4,306
East Japan Railway Co.	Ground Transportation		1,215		66,962
Ebara Corp.	Machinery		275		12,666
Eisai Co. Ltd.	Pharmaceuticals		893		50,350
Electric Power Development Co. Ltd.	Independent Power Producers & Energy Traders		550		8,806
ENEOS Holdings, Inc.	Oil, Gas & Consumable Fuels		10,000		34,954
EXEO Group, Inc.	Construction & Engineering		350		6,304
Ezaki Glico Co. Ltd.	Food Products		185		4,636
Fancl Corp.	Personal Products		220		4,022
FANUC Corp.	Machinery		3,325		118,920
Fast Retailing Co. Ltd.	Specialty Retail		540		117,178
Food & Life Cos. Ltd.	Hotels, Restaurants & Leisure		315		8,142
FP Corp.	Containers & Packaging		135		3,327
Frontier Real Estate Investment Corp.	Diversified REITs		2		7,138
Fuji Electric Co. Ltd.	Electrical Equipment		400		15,629
Fuji Kyuko Co. Ltd.	Hotels, Restaurants & Leisure		75		2,474
Fuji Media Holdings, Inc.	Media		170		1,526
Fuji Oil Holdings, Inc.	Food Products		170		2,456
FUJIFILM Holdings Corp.	Technology Hardware, Storage & Peripherals		1,200		60,392
Fujikura Ltd.	Electrical Equipment		1,000		7,048
Fujitsu General Ltd.	Household Durables		185		5,192
Fujitsu Ltd.	IT Services		630		84,424
Fukuoka Financial Group, Inc.	Banks		540		10,342
Furukawa Electric Co. Ltd.	Electrical Equipment		210		3,883
Fuyo General Lease Co. Ltd.	Financial Services		75		5,072
GLP J-Reit	Diversified REITs		15		16,128
GMO internet group, Inc.	IT Services		200		3,858
GMO Payment Gateway, Inc.	IT Services		139		11,885
Goldwin, Inc.	Textiles, Apparel & Luxury Goods		125		11,834
GS Yuasa Corp.	Electrical Equipment		265		4,743
^aGungHo Online Entertainment, Inc.	Entertainment		125		2,275



franklintempleton.com	Annual Report	265

FRANKLIN TEMPLETON ETF TRUST

SCHEDULE OF INVESTMENTS

Franklin FTSE Japan Hedged ETF (continued)



	Industry	Shares		Value

Common Stocks (continued)
Japan (continued)
H.U. Group Holdings, Inc.	Health Care Providers & Services		185	$	3,706
Hachijuni Bank Ltd.	Banks		1,500		6,481
Hakuhodo DY Holdings, Inc.	Media		800		8,986
Hamamatsu Photonics KK	Electronic Equipment, Instruments & Components		400		21,369
Hankyu Hanshin Holdings, Inc.	Ground Transportation		740		21,824
Harmonic Drive Systems, Inc.	Machinery		100		3,302
Haseko Corp.	Household Durables		875		10,118
Heiwa Corp.	Leisure Products		185		3,654
Hikari Tsushin, Inc.	Specialty Retail		70		9,767
^aHino Motors Ltd.	Machinery		1,000		4,155
Hirogin Holdings, Inc.	Banks		1,000		4,704
Hirose Electric Co. Ltd.	Electronic Equipment, Instruments & Components		102		13,236
Hisamitsu Pharmaceutical Co., Inc.	Pharmaceuticals		215		6,106
Hitachi Construction Machinery Co. Ltd.	Machinery		360		8,318
Hitachi Ltd.	Industrial Conglomerates		3,115		169,735
Honda Motor Co. Ltd.	Automobiles		5,700		150,327
Horiba Ltd.	Electronic Equipment, Instruments & Components		140		8,321
Hoshizaki Corp.	Machinery		380		13,948
House Foods Group, Inc.	Food Products		215		4,539
Hoya Corp.	Health Care Equipment & Supplies		1,200		131,280
Hulic Co. Ltd.	Real Estate Management & Development		1,500		12,251
Ibiden Co. Ltd.	Electronic Equipment, Instruments & Components		360		14,228
Idemitsu Kosan Co. Ltd.	Oil, Gas & Consumable Fuels		805		17,541
IHI Corp.	Machinery		445		11,101
Iida Group Holdings Co. Ltd.	Household Durables		500		8,111
Industrial & Infrastructure Fund Investment Corp.	Diversified REITs		7		7,584
Information Services International-Dentsu Ltd.	IT Services		75		2,930
INFRONEER Holdings, Inc.	Construction & Engineering		795		6,105
Inpex Corp.	Oil, Gas & Consumable Fuels		3,200		33,589
Internet Initiative Japan, Inc.	Diversified Telecommunication Services		350		7,227
Invincible Investment Corp.	Hotel & Resort REITs		15		6,278
Isetan Mitsukoshi Holdings Ltd.	Broadline Retail		1,200		13,362
Isuzu Motors Ltd.	Automobiles		1,800		21,355
Ito En Ltd.	Beverages		185		6,012
ITOCHU Corp.	Trading Companies & Distributors		4,579		147,977
Itochu Techno-Solutions Corp.	IT Services		340		8,315
Itoham Yonekyu Holdings, Inc.	Food Products		500		2,630
Iwatani Corp.	Oil, Gas & Consumable Fuels		150		6,526
Iyogin Holdings, Inc.	Banks		1,000		5,650
Izumi Co. Ltd.	Broadline Retail		145		3,426
J Front Retailing Co. Ltd.	Broadline Retail		865		8,592
^aJapan Airlines Co. Ltd.	Airlines		500		9,700
^aJapan Airport Terminal Co. Ltd.	Transportation Infrastructure		190		9,422
Japan Aviation Electronics Industry Ltd.	Electronic Equipment, Instruments & Components		170		2,935
Japan Exchange Group, Inc.	Capital Markets		1,800		27,300
Japan Hotel REIT Investment Corp.	Diversified REITs		15		8,464
Japan Logistics Fund, Inc.	Diversified REITs		3		6,638
Japan Metropolitan Fund Invest	Diversified REITs		24		17,438
Japan Post Bank Co. Ltd.	Banks		5,000		40,687
Japan Post Holdings Co. Ltd.	Insurance		7,000		56,620
Japan Post Insurance Co. Ltd.	Insurance		635		9,862
Japan Prime Realty Investment Corp.	Diversified REITs		3		7,867
Japan Real Estate Investment Corp.	Diversified REITs		4		15,869
Japan Steel Works Ltd.	Machinery		200		3,725
Japan Tobacco, Inc.	Tobacco		4,000		84,093
JCR Pharmaceuticals Co. Ltd.	Pharmaceuticals		200		2,123
Jeol Ltd.	Health Care Equipment & Supplies		140		4,465



266	Annual Report	franklintempleton.com

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Franklin FTSE Japan Hedged ETF (continued)



	Industry	Shares		Value

Common Stocks (continued)
Japan (continued)
JFE Holdings, Inc.	Metals & Mining		1,709	$	21,560
JGC Holdings Corp.	Construction & Engineering		750		9,248
JMDC, Inc.	Health Care Technology		115		3,932
JSR Corp.	Chemicals		575		13,458
JTEKT Corp.	Automobile Components		800		6,137
Justsystems Corp.	Software		125		3,301
Kadokawa Corp.	Media		325		6,881
Kagome Co. Ltd.	Food Products		265		6,153
Kajima Corp.	Construction & Engineering		1,500		18,010
Kakaku.com, Inc.	Interactive Media & Services		400		5,425
Kaken Pharmaceutical Co. Ltd.	Pharmaceuticals		115		3,193
Kamigumi Co. Ltd.	Transportation Infrastructure		300		6,266
Kandenko Co. Ltd.	Construction & Engineering		300		2,108
Kaneka Corp.	Chemicals		195		5,055
Kansai Electric Power Co., Inc.	Electric Utilities		2,500		24,251
Kansai Paint Co. Ltd.	Chemicals		605		8,128
Kao Corp.	Personal Products		1,613		62,622
Katitas Co. Ltd.	Real Estate Management & Development		140		2,713
Kawasaki Heavy Industries Ltd.	Machinery		500		10,872
Kawasaki Kisen Kaisha Ltd.	Marine Transportation		715		16,251
KDDI Corp.	Wireless Telecommunication Services		5,430		166,992
Keihan Holdings Co. Ltd.	Industrial Conglomerates		335		8,697
Keikyu Corp.	Ground Transportation		800		7,568
Keio Corp.	Ground Transportation		400		13,960
Keisei Electric Railway Co. Ltd.	Ground Transportation		500		15,309
Kenedix Office Investment Corp.	Diversified REITs		3		6,909
Kewpie Corp.	Food Products		360		6,027
Keyence Corp.	Electronic Equipment, Instruments & Components		668		323,485
Kikkoman Corp.	Food Products		600		30,385
Kinden Corp.	Construction & Engineering		400		4,794
Kintetsu Group Holdings Co. Ltd.	Ground Transportation		610		19,548
Kirin Holdings Co. Ltd.	Beverages		2,609		41,088
Kobayashi Pharmaceutical Co. Ltd.	Personal Products		215		13,069
Kobe Bussan Co. Ltd.	Consumer Staples Distribution & Retail		500		13,844
Kobe Steel Ltd.	Metals & Mining		1,036		8,197
Koei Tecmo Holdings Co. Ltd.	Entertainment		500		8,971
Koito Manufacturing Co. Ltd.	Automobile Components		841		15,798
Kokuyo Co. Ltd.	Commercial Services & Supplies		259		3,655
Komatsu Ltd.	Machinery		3,175		78,176
Konami Group Corp.	Entertainment		325		14,823
Konica Minolta, Inc.	Technology Hardware, Storage & Peripherals		1,500		6,413
Kose Corp.	Personal Products		102		12,017
Kotobuki Spirits Co. Ltd.	Food Products		65		4,576
K’s Holdings Corp.	Specialty Retail		540		4,719
Kubota Corp.	Machinery		3,750		56,325
Kuraray Co. Ltd.	Chemicals		1,092		9,985
Kurita Water Industries Ltd.	Machinery		375		17,019
Kusuri No. Aoki Holdings Co. Ltd.	Consumer Staples Distribution & Retail		50		2,521
Kyocera Corp.	Electronic Equipment, Instruments & Components		1,020		52,790
Kyowa Kirin Co. Ltd.	Pharmaceuticals		865		18,757
Kyudenko Corp.	Construction & Engineering		125		3,160
^aKyushu Electric Power Co., Inc.	Electric Utilities		1,550		8,816
Kyushu Financial Group, Inc.	Banks		1,000		3,584
Kyushu Railway Co.	Ground Transportation		540		11,965
LaSalle Logiport REIT	Diversified REITs		6		6,929
Lasertec Corp.	Semiconductors & Semiconductor Equipment		255		44,604
Lawson, Inc.	Consumer Staples Distribution & Retail		170		7,166



franklintempleton.com	Annual Report	267

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SCHEDULE OF INVESTMENTS

Franklin FTSE Japan Hedged ETF (continued)



	Industry	Shares		Value

Common Stocks (continued)
Japan (continued)
Lintec Corp.	Chemicals		170	$	2,765
Lion Corp.	Household Products		1,000		10,752
Lixil Corp.	Building Products		900		14,722
M3, Inc.	Health Care Technology		1,400		34,724
Mabuchi Motor Co. Ltd.	Electrical Equipment		185		5,359
Makita Corp.	Machinery		830		20,455
Mani, Inc.	Health Care Equipment & Supplies		200		2,714
Marubeni Corp.	Trading Companies & Distributors		5,200		70,153
Marui Group Co. Ltd.	Broadline Retail		660		10,032
Maruichi Steel Tube Ltd.	Metals & Mining		210		4,592
Matsui Securities Co. Ltd.	Capital Markets		300		1,765
MatsukiyoCocokara & Co.	Consumer Staples Distribution & Retail		415		21,859
Mazda Motor Corp.	Automobiles		2,000		18,409
McDonald’s Holdings Co. Japan Ltd.	Hotels, Restaurants & Leisure		300		12,443
Mebuki Financial Group, Inc.	Banks		3,500		8,521
Medipal Holdings Corp.	Health Care Providers & Services		500		6,777
MEIJI Holdings Co. Ltd.	Food Products		900		21,335
Menicon Co. Ltd.	Health Care Equipment & Supplies		165		3,480
^aMercari, Inc.	Broadline Retail		400		6,940
MINEBEA MITSUMI, Inc.	Machinery		1,400		26,414
MISUMI Group, Inc.	Machinery		1,000		24,795
Mitsubishi Chemical Group Corp.	Chemicals		4,500		26,566
Mitsubishi Corp.	Trading Companies & Distributors		3,986		142,291
Mitsubishi Electric Corp.	Electrical Equipment		6,700		79,465
Mitsubishi Estate Co. Ltd.	Real Estate Management & Development		3,800		45,012
Mitsubishi Gas Chemical Co., Inc.	Chemicals		569		8,392
Mitsubishi HC Capital, Inc.	Financial Services		2,000		10,279
Mitsubishi Heavy Industries Ltd.	Machinery		1,000		36,637
Mitsubishi Logistics Corp.	Transportation Infrastructure		215		5,024
Mitsubishi Materials Corp.	Metals & Mining		400		6,483
^aMitsubishi Motors Corp.	Automobiles		2,500		9,805
Mitsubishi UFJ Financial Group, Inc.	Banks		39,700		252,924
Mitsui & Co. Ltd.	Trading Companies & Distributors		5,073		156,890
Mitsui Chemicals, Inc.	Chemicals		575		14,733
Mitsui Fudosan Co. Ltd.	Real Estate Management & Development		3,148		58,754
Mitsui Fudosan Logistics Park, Inc.	Diversified REITs		2		6,988
Mitsui High-Tec, Inc.	Semiconductors & Semiconductor Equipment		90		5,653
Mitsui Mining & Smelting Co. Ltd.	Metals & Mining		185		4,469
Mitsui OSK Lines Ltd.	Marine Transportation		1,145		28,477
Miura Co. Ltd.	Machinery		325		8,254
Mizuho Financial Group, Inc.	Banks		8,700		122,764
^aMoney Forward, Inc.	Software		140		4,802
MonotaRO Co. Ltd.	Trading Companies & Distributors		815		10,147
Mori Hills REIT Investment Corp.	Diversified REITs		6		6,654
Morinaga & Co. Ltd.	Food Products		90		2,539
Morinaga Milk Industry Co. Ltd.	Food Products		95		3,405
MS&AD Insurance Group Holdings, Inc.	Insurance		1,500		46,277
Murata Manufacturing Co. Ltd.	Electronic Equipment, Instruments & Components		1,900		114,779
Nabtesco Corp.	Machinery		385		9,373
Nagase & Co. Ltd.	Trading Companies & Distributors		340		5,199
Nagoya Railroad Co. Ltd.	Ground Transportation		675		10,367
Nankai Electric Railway Co. Ltd.	Ground Transportation		360		7,912
NEC Corp.	IT Services		900		34,488
NEC Networks & System Integration Corp.	IT Services		225		2,730
NET One Systems Co. Ltd.	IT Services		275		6,540
Nexon Co. Ltd.	Entertainment		1,335		31,647
NGK Insulators Ltd.	Machinery		890		11,716



268	Annual Report	franklintempleton.com

FRANKLIN TEMPLETON ETF TRUST

SCHEDULE OF INVESTMENTS

Franklin FTSE Japan Europe ETF (continued)



	Industry	Shares		Value

Common Stocks (continued)
Japan (continued)
NGK Spark Plug Co. Ltd.	Automobile Components		675	$	13,876
NH Foods Ltd.	Food Products		310		8,933
NHK Spring Co. Ltd.	Automobile Components		540		3,842
Nichirei Corp.	Food Products		360		7,260
Nidec Corp.	Electrical Equipment		1,615		83,062
Nifco, Inc.	Automobile Components		275		7,749
Nihon Kohden Corp.	Health Care Equipment & Supplies		265		7,148
Nihon M&A Center Holdings, Inc.	Professional Services		1,000		7,393
Nikon Corp.	Household Durables		1,125		11,454
Nintendo Co. Ltd.	Entertainment		3,547		136,747
Nippon Accommodations Fund, Inc.	Diversified REITs		2		8,971
Nippon Building Fund, Inc.	Diversified REITs		5		20,700
Nippon Electric Glass Co. Ltd.	Electronic Equipment, Instruments & Components		265		5,075
Nippon Express Co. Ltd.	Ground Transportation		215		12,875
Nippon Kayaku Co. Ltd.	Chemicals		500		4,497
Nippon Paint Holdings Co. Ltd.	Chemicals		3,500		32,557
Nippon Prologis REIT, Inc.	Diversified REITs		8		16,849
Nippon Sanso Holdings Corp.	Chemicals		500		8,949
Nippon Shinyaku Co. Ltd.	Pharmaceuticals		160		7,009
Nippon Shokubai Co. Ltd.	Chemicals		110		4,364
Nippon Steel Corp.	Metals & Mining		2,800		65,640
Nippon Steel Trading Corp.	Trading Companies & Distributors		50		3,490
Nippon Telegraph & Telephone Corp.	Diversified Telecommunication Services		4,000		119,077
Nippon Yusen KK	Marine Transportation		1,625		37,716
Nipro Corp.	Health Care Equipment & Supplies		500		3,828
Nishi-Nippon Railroad Co. Ltd.	Ground Transportation		265		4,763
Nissan Chemical Corp.	Chemicals		400		18,003
Nissan Motor Co. Ltd.	Automobiles		7,000		26,356
Nisshin Seifun Group, Inc.	Food Products		859		10,011
Nissin Foods Holdings Co. Ltd.	Food Products		235		21,418
Nitori Holdings Co. Ltd.	Specialty Retail		254		30,402
Nitto Denko Corp.	Chemicals		500		32,121
Noevir Holdings Co. Ltd.	Personal Products		60		2,434
NOF Corp.	Chemicals		215		9,967
NOK Corp.	Automobile Components		395		4,342
Nomura Holdings, Inc.	Capital Markets		10,500		40,212
Nomura Real Estate Holdings, Inc.	Real Estate Management & Development		350		7,705
Nomura Real Estate Master Fund, Inc.	Diversified REITs		16		17,853
Nomura Research Institute Ltd.	IT Services		1,500		34,544
NS Solutions Corp.	IT Services		100		2,660
NSK Ltd.	Machinery		1,500		8,521
NTT Data Corp.	IT Services		2,115		27,524
Obayashi Corp.	Construction & Engineering		2,300		17,506
OBIC Business Consultants Co. Ltd.	Software		65		2,437
Obic Co. Ltd.	IT Services		224		35,176
Odakyu Electric Railway Co. Ltd.	Ground Transportation		1,025		13,247
Oji Holdings Corp.	Paper & Forest Products		3,000		11,812
OKUMA Corp.	Machinery		100		4,441
Olympus Corp.	Health Care Equipment & Supplies		4,200		73,166
Omron Corp.	Electronic Equipment, Instruments & Components		625		36,193
Ono Pharmaceutical Co. Ltd.	Pharmaceuticals		1,400		29,075
Open House Group Co. Ltd.	Household Durables		215		7,996
Oracle Corp. Japan	Software		115		8,235
Orient Corp.	Consumer Finance		225		1,865
Oriental Land Co. Ltd.	Hotels, Restaurants & Leisure		3,250		110,572
ORIX Corp.	Financial Services		4,000		65,414
Orix JREIT, Inc.	Diversified REITs		9		11,361



franklintempleton.com	Annual Report	269

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SCHEDULE OF INVESTMENTS

Franklin FTSE Japan Hedged ETF (continued)



	Industry	Shares		Value

Common Stocks (continued)
Japan (continued)
Osaka Gas Co. Ltd.	Gas Utilities		1,350	$	22,123
OSG Corp.	Machinery		275		4,108
Otsuka Corp.	IT Services		360		12,673
Otsuka Holdings Co. Ltd.	Pharmaceuticals		1,400		44,212
PALTAC Corp.	Distributors		115		4,338
Pan Pacific International Holdings Corp.	Broadline Retail		1,370		26,342
Panasonic Holdings Corp.	Household Durables		7,200		63,945
^aPark24 Co. Ltd.	Commercial Services & Supplies		445		6,470
Penta-Ocean Construction Co. Ltd.	Construction & Engineering		1,000		4,749
^aPeptiDream, Inc.	Biotechnology		315		4,447
Persol Holdings Co. Ltd.	Professional Services		600		11,965
Pigeon Corp.	Household Products		360		5,542
Pola Orbis Holdings, Inc.	Personal Products		275		3,558
Rakus Co. Ltd.	Software		325		4,635
^aRakuten Group, Inc.	Internet & Direct Marketing Retail		2,500		11,534
Recruit Holdings Co. Ltd.	Professional Services		4,660		127,801
Relo Group, Inc.	Real Estate Management & Development		360		5,694
^aRenesas Electronics Corp.	Semiconductors & Semiconductor Equipment		4,115		59,163
Rengo Co. Ltd.	Containers & Packaging		740		4,776
^aRENOVA, Inc.	Independent Power Producers & Energy Traders		140		2,093
Resona Holdings, Inc.	Banks		7,000		33,635
Resonac Holdings Corp.	Chemicals		595		9,728
Resorttrust, Inc.	Hotels, Restaurants & Leisure		200		3,169
Ricoh Co. Ltd.	Technology Hardware, Storage & Peripherals		2,000		14,892
Rinnai Corp.	Household Durables		285		6,927
Rohm Co. Ltd.	Semiconductors & Semiconductor Equipment		300		24,728
Rohto Pharmaceutical Co. Ltd.	Personal Products		670		13,945
Ryohin Keikaku Co. Ltd.	Broadline Retail		815		9,210
Sankyo Co. Ltd.	Leisure Products		120		4,986
Sankyu, Inc.	Ground Transportation		135		4,975
Sanrio Co. Ltd.	Specialty Retail		200		8,911
Santen Pharmaceutical Co. Ltd.	Pharmaceuticals		1,000		8,491
Sanwa Holdings Corp.	Building Products		715		7,607
Sapporo Holdings Ltd.	Beverages		200		5,117
Sawai Group Holdings Co. Ltd.	Pharmaceuticals		130		3,565
SBI Holdings, Inc.	Capital Markets		820		16,167
^aSBI Shinsei Bank Ltd.	Banks		200		3,504
SCREEN Holdings Co. Ltd.	Semiconductors & Semiconductor Equipment		135		11,817
SCSK Corp.	IT Services		445		6,470
Secom Co. Ltd.	Commercial Services & Supplies		660		40,486
Sega Sammy Holdings, Inc.	Leisure Products		520		9,819
Seibu Holdings, Inc.	Industrial Conglomerates		673		6,872
Seiko Epson Corp.	Technology Hardware, Storage & Peripherals		900		12,720
Seino Holdings Co. Ltd.	Ground Transportation		500		5,485
Sekisui Chemical Co. Ltd.	Household Durables		1,140		16,069
Sekisui House Ltd.	Household Durables		1,900		38,517
Sekisui House Reit, Inc.	Diversified REITs		15		8,104
Seven & i Holdings Co. Ltd.	Consumer Staples Distribution & Retail		2,650		118,970
Seven Bank Ltd.	Banks		2,500		4,978
SG Holdings Co. Ltd.	Air Freight & Logistics		1,400		20,618
^aSharp Corp.	Household Durables		725		5,082
^aSHIFT, Inc.	IT Services		40		7,051
^aShikoku Electric Power Co., Inc.	Electric Utilities		500		2,829
Shimadzu Corp.	Electronic Equipment, Instruments & Components		900		27,996
Shimamura Co. Ltd.	Specialty Retail		75		7,608
Shimano, Inc.	Leisure Products		266		45,649
Shimizu Corp.	Construction & Engineering		2,000		11,271



270	Annual Report	franklintempleton.com

FRANKLIN TEMPLETON ETF TRUST

SCHEDULE OF INVESTMENTS

Franklin FTSE Japan Hedged ETF (continued)



	Industry	Shares		Value

Common Stocks (continued)
Japan (continued)
Shin-Etsu Chemical Co. Ltd.	Chemicals		6,650	$	213,605
Shinko Electric Industries Co. Ltd.	Semiconductors & Semiconductor Equipment		215		6,591
Shionogi & Co. Ltd.	Pharmaceuticals		900		40,419
Ship Healthcare Holdings, Inc.	Health Care Providers & Services		265		4,852
Shiseido Co. Ltd.	Personal Products		1,305		60,607
Shizuoka Financial Group, Inc.	Banks		1,665		11,897
SHO-BOND Holdings Co. Ltd.	Construction & Engineering		165		6,794
^aShochiku Co. Ltd.	Entertainment		35		3,006
^aSkylark Holdings Co. Ltd.	Hotels, Restaurants & Leisure		740		9,619
SMC Corp.	Machinery		195		102,313
SMS Co. Ltd.	Professional Services		190		4,561
SoftBank Corp.	Wireless Telecommunication Services		9,500		109,140
SoftBank Group Corp.	Wireless Telecommunication Services		3,265		127,126
Sohgo Security Services Co. Ltd.	Commercial Services & Supplies		230		6,161
Sojitz Corp.	Trading Companies & Distributors		800		16,608
Sompo Holdings, Inc.	Insurance		1,050		41,435
Sony Group Corp.	Household Durables		4,220		380,019
Sotetsu Holdings, Inc.	Ground Transportation		265		4,516
Square Enix Holdings Co. Ltd.	Entertainment		245		11,708
Stanley Electric Co. Ltd.	Automobile Components		500		11,011
Subaru Corp.	Automobiles		2,123		33,730
Sugi Holdings Co. Ltd.	Consumer Staples Distribution & Retail		130		5,558
SUMCO Corp.	Semiconductors & Semiconductor Equipment		1,140		16,969
Sumitomo Bakelite Co. Ltd.	Chemicals		100		3,877
Sumitomo Chemical Co. Ltd.	Chemicals		5,500		18,390
Sumitomo Corp.	Trading Companies & Distributors		3,800		66,840
Sumitomo Electric Industries Ltd.	Automobile Components		2,609		33,267
Sumitomo Forestry Co. Ltd.	Household Durables		500		9,843
Sumitomo Heavy Industries Ltd.	Machinery		360		8,764
Sumitomo Metal Mining Co. Ltd.	Metals & Mining		815		30,918
Sumitomo Mitsui Financial Group, Inc.	Banks		4,400		175,154
Sumitomo Mitsui Trust Holdings, Inc.	Banks		1,210		41,285
Sumitomo Pharma Co. Ltd.	Pharmaceuticals		515		3,134
Sumitomo Realty & Development Co. Ltd.	Real Estate Management & Development		1,350		30,248
Sumitomo Rubber Industries Ltd.	Automobile Components		650		5,841
Sundrug Co. Ltd.	Consumer Staples Distribution & Retail		225		6,145
Suntory Beverage & Food Ltd.	Beverages		440		16,315
Suzuken Co. Ltd.	Health Care Providers & Services		265		6,660
Suzuki Motor Corp.	Automobiles		1,520		54,866
Sysmex Corp.	Health Care Equipment & Supplies		643		41,757
T&D Holdings, Inc.	Insurance		1,700		20,961
Taiheiyo Cement Corp.	Construction Materials		400		7,475
Taisei Corp.	Construction & Engineering		590		18,154
Taisho Pharmaceutical Holdings Co. Ltd.	Pharmaceuticals		150		6,221
Taiyo Yuden Co. Ltd.	Electronic Equipment, Instruments & Components		426		14,212
Takara Bio, Inc.	Biotechnology		170		2,214
Takara Holdings, Inc.	Beverages		600		4,607
Takashimaya Co. Ltd.	Broadline Retail		500		7,262
Takeda Pharmaceutical Co. Ltd.	Pharmaceuticals		5,179		169,274
TBS Holdings, Inc.	Media		110		1,575
TDK Corp.	Electronic Equipment, Instruments & Components		1,200		42,603
TechnoPro Holdings, Inc.	Professional Services		355		9,723
Teijin Ltd.	Chemicals		650		6,818
Terumo Corp.	Health Care Equipment & Supplies		2,215		59,482
THK Co. Ltd.	Machinery		390		8,952
TIS, Inc.	IT Services		750		19,667
Tobu Railway Co. Ltd.	Ground Transportation		670		15,958



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Franklin FTSE Japan Hedged ETF (continued)



	Industry	Shares		Value

Common Stocks (continued)
Japan (continued)
Toda Corp.	Construction & Engineering		500	$	2,596
Toho Co. Ltd.	Entertainment		375		14,285
Toho Gas Co. Ltd.	Gas Utilities		316		5,848
^aTohoku Electric Power Co., Inc.	Electric Utilities		1,500		7,427
Tokai Carbon Co. Ltd.	Chemicals		603		5,709
Tokio Marine Holdings, Inc.	Insurance		6,400		122,480
Tokyo Century Corp.	Financial Services		220		7,282
^aTokyo Electric Power Co. Holdings, Inc.	Electric Utilities		5,500		19,547
Tokyo Electron Ltd.	Semiconductors & Semiconductor Equipment		1,520		183,190
Tokyo Gas Co. Ltd.	Gas Utilities		1,400		26,256
Tokyo Ohka Kogyo Co. Ltd.	Chemicals		135		7,800
Tokyo Tatemono Co. Ltd.	Real Estate Management & Development		670		8,130
Tokyu Corp.	Ground Transportation		2,000		26,478
Tokyu Fudosan Holdings Corp.	Real Estate Management & Development		2,000		9,542
TOPPAN, Inc.	Commercial Services & Supplies		900		18,022
Toray Industries, Inc.	Chemicals		5,500		31,259
Toshiba Corp.	Industrial Conglomerates		1,400		46,758
Toshiba TEC Corp.	Technology Hardware, Storage & Peripherals		90		2,644
Tosoh Corp.	Chemicals		1,000		13,502
TOTO Ltd.	Building Products		500		16,605
Toyo Seikan Group Holdings Ltd.	Containers & Packaging		500		6,860
Toyo Suisan Kaisha Ltd.	Food Products		271		11,301
Toyo Tire Corp.	Automobile Components		350		4,063
Toyoda Gosei Co. Ltd.	Automobile Components		265		4,540
Toyota Boshoku Corp.	Automobile Components		200		3,211
Toyota Industries Corp.	Automobile Components		540		29,822
Toyota Motor Corp.	Automobiles		41,000		579,157
Toyota Tsusho Corp.	Trading Companies & Distributors		750		31,670
^aTrend Micro, Inc.	Software		405		19,689
TS Tech Co. Ltd.	Automobile Components		350		4,415
Tsumura & Co.	Pharmaceuticals		215		4,249
Tsuruha Holdings, Inc.	Consumer Staples Distribution & Retail		110		7,315
UBE Corp.	Chemicals		350		5,404
Ulvac, Inc.	Semiconductors & Semiconductor Equipment		135		5,833
Unicharm Corp.	Household Products		1,300		53,147
United Urban Investment Corp.	Diversified REITs		10		10,745
Ushio, Inc.	Electrical Equipment		390		4,879
USS Co. Ltd.	Specialty Retail		690		11,898
Welcia Holdings Co. Ltd.	Consumer Staples Distribution & Retail		355		7,559
West Japan Railway Co.	Ground Transportation		765		31,367
Workman Co. Ltd.	Specialty Retail		150		6,312
Yakult Honsha Co. Ltd.	Food Products		400		28,943
^aYamada Holdings Co. Ltd.	Specialty Retail		2,000		6,853
Yamaguchi Financial Group, Inc.	Banks		740		4,515
Yamaha Corp.	Leisure Products		500		19,122
Yamaha Motor Co. Ltd.	Automobiles		1,025		26,647
Yamato Holdings Co. Ltd.	Air Freight & Logistics		1,100		18,753
Yamato Kogyo Co. Ltd.	Metals & Mining		100		4,012
Yamazaki Baking Co. Ltd.	Food Products		435		5,243
Yaoko Co. Ltd.	Consumer Staples Distribution & Retail		85		4,407
Yaskawa Electric Corp.	Machinery		930		40,319
Yokogawa Electric Corp.	Electronic Equipment, Instruments & Components		815		13,166
Yokohama Rubber Co. Ltd.	Automobile Components		465		9,772
Z Holdings Corp.	Interactive Media & Services		9,000		25,210
Zenkoku Hosho Co. Ltd.	Financial Services		175		6,568
Zensho Holdings Co. Ltd.	Hotels, Restaurants & Leisure		340		10,027
Zeon Corp.	Chemicals		500		5,256



272	Annual Report	franklintempleton.com

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SCHEDULE OF INVESTMENTS

Franklin FTSE Japan Hedged ETF (continued)



	Industry	Shares		Value

Common Stocks (continued)
Japan (continued)
ZOZO, Inc.	Internet & Direct Marketing Retail		360	$	8,155


Total Investments before Short-Term Investments (Cost $13,750,298)					13,036,206

Short-Term Investments 0.0%^†
Money Market Funds 0.0%^†
United States 0.0%^†
^b,cInstitutional Fiduciary Trust - Money Market Portfolio, 4.47%	Money Market Funds		721		721


Total Short-Term Investments (Cost $721)					721


Total Investments (Cost $13,751,019) 98.1%					13,036,927
Other Assets, less Liabilities 1.9%					247,567


Net Assets 100.0%				$	13,284,494

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

^aNon-income producing.

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

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

At March 31, 2023 the Fund had the following forward exchange contracts outstanding. See Note 1(c).

Forward Exchange Contracts



Currency	Counterparty^a		Type		Quantity		Contract Amount		Settlement Date		Unrealized Appreciation		Unrealized Depreciation


OTC Forward Exchange Contracts
Japanese Yen		UBSW		Buy		890,914,000	$	6,694,137		4/04/23		$—		$ (65	)
Japanese Yen		HSBK		Buy		445,457,000		3,347,086		4/04/23		—		(50	)
Japanese Yen		BOFA		Buy		445,457,000		3,347,086		4/04/23		—		(50	)
Japanese Yen		UBSW		Sell		890,914,000		6,570,681		4/04/23		—		(123,391	)
Japanese Yen		BOFA		Sell		445,457,000		3,285,323		4/04/23		—		(61,712	)
Japanese Yen		HSBK		Sell		445,457,000		3,285,336		4/04/23		—		(61,700	)
Japanese Yen		UBSW		Sell		885,309,000		6,678,684		5/02/23		—		(133	)
Japanese Yen		BOFA		Sell		442,654,000		3,339,323		5/02/23		—		(82	)
Japanese Yen		HSBK		Sell		442,654,000		3,339,336		5/02/23		—		(69	)


Total Forward Exchange Contracts												$ -		$(247,252	)


Net unrealized appreciation (depreciation)														$(247,252	)

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



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SCHEDULE OF INVESTMENTS

Franklin FTSE Japan Hedged ETF (continued)

At March 31, 2023, the Fund had the following futures contracts outstanding. See Note 1(c).

Futures Contracts

Description

Type

Number of

Contracts

Notional

Amount

Expiration

Date

Value/Unrealized

Appreciation

(Depreciation)

Index Contracts

Nikkei 225 Mini

$168,548

6/08/23

$2,278

*As of year end.

See Note 7 regarding other derivative information.

See Abbreviations on page 355.



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

FRANKLIN TEMPLETON ETF TRUST

Financial Highlights

Franklin FTSE Latin America ETF



	Year Ended March 31,

	2023			2022			2021			2020			2019^a

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

Net asset value, beginning of year		$25.25			$22.40			$15.20			$26.41			$26.17

Income from investment operations^b:

Net investment income^c		1.66			1.54			0.57			0.77			0.38

Net realized and unrealized gains (losses)		(4.62	)		2.83			7.13			(11.08	)		(0.02	)

Total from investment operations		(2.96	)		4.37			7.70			(10.31	)		0.36

Less distributions from net investment income		(1.87	)		(1.52	)		(0.50	)		(0.90	)		(0.12	)

Net asset value, end of year		$20.42			$25.25			$22.40			$15.20			$26.41

Total return^d		(11.05)%			21.12%			50.80%			(40.49)%			1.42%

Ratios to average net assets^e

Total expenses		0.19%			0.19%			0.19%			0.21%			0.19%

Net investment income		8.09%			6.75%			2.86%			2.97%			3.08%

Supplemental data

Net assets, end of year (000’s)		$67,372			$7,575			$4,480			$1,520			$2,641

Portfolio turnover rate^f		10.49%^g			18.50%^g			10.21%^g			12.74%^g			4.08%
^aFor the period October 9, 2018 (commencement of operations) to March 31, 2019. ^bThe amount shown for a share outstanding throughout the period may not correlate with the Statement of Operations for the period due to the timing of sales and repurchases of Creation Unit Fund shares in relation to income earned and/or fluctuating fair value of the investments of the Fund. ^cBased on average daily shares outstanding. ^dTotal return is not annualized for periods less than one year. Total return is calculated assuming an initial investment made at the net asset value at the beginning of the period, reinvestment of all dividends and distributions at net asset value during the period, and redemption at net asset value on the last day of the period. ^eRatios are annualized for periods less than one year. ^fPortfolio turnover rate includes portfolio transactions that are executed as a result of the Fund offering and redeeming Creation Units solely for cash (“Cash creations”).
^gPortfolio turnover rate excluding cash creations was as follows:		10.49%			18.50%			10.21%			12.74%			—



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FRANKLIN TEMPLETON ETF TRUST

Schedule of Investments, March 31, 2023

Franklin FTSE Latin America ETF



	Industry	Shares		Value

Common Stocks 82.3%
Brazil 43.0%
Ambev SA	Beverages		485,100	$	1,371,034
Atacadao SA	Consumer Staples Distribution & Retail		59,400		145,154
Auren Energia SA	Independent Power Producers & Energy Traders		39,600		114,577
B3 SA - Brasil Bolsa Balcao	Capital Markets		676,500		1,380,953
Banco Bradesco SA	Banks		168,300		393,345
Banco BTG Pactual S.A	Capital Markets		128,700		498,783
Banco do Brasil SA	Banks		95,700		738,194
Banco Santander Brasil SA	Banks		42,900		226,758
BB Seguridade Participacoes SA	Insurance		75,900		486,664
Bradespar SA	Metals & Mining		3,300		15,978
^aBRF SA	Food Products		89,100		109,129
Caixa Seguridade Participacoes SA	Insurance		49,500		85,913
CCR SA	Transportation Infrastructure		125,400		316,576
Centrais Eletricas Brasileiras SA	Electric Utilities		146,800		963,563
Cia de Saneamento Basico do Estado de Sao Paulo SABESP	Water Utilities		37,900		378,309
Cia Energetica de Minas Gerais	Electric Utilities		36,300		122,569
Cia Paranaense de Energia	Electric Utilities		36,300		44,675
Cia Siderurgica Nacional SA	Metals & Mining		69,300		211,033
Cielo SA	IT Services		128,700		123,109
Cosan SA	Oil, Gas & Consumable Fuels		132,000		392,856
CPFL Energia SA	Electric Utilities		19,800		123,597
CSN Mineracao SA	Metals & Mining		59,400		56,703
Dexco SA	Paper & Forest Products		36,300		42,097
Diagnosticos da America SA	Health Care Providers & Services		9,900		14,586
EDP - Energias do Brasil SA	Electric Utilities		29,700		130,861
^aEmbraer SA	Aerospace & Defense		82,500		338,282
Energisa SA	Electric Utilities		33,000		261,514
^aEneva SA	Independent Power Producers & Energy Traders		135,300		279,393
Engie Brasil Energia SA	Independent Power Producers & Energy Traders		19,800		156,869
Equatorial Energia SA	Electric Utilities		105,600		561,506
^a,bGPS Participacoes e Empreendimentos SA	Commercial Services & Supplies		46,200		110,255
GRUPO DE MODA SOMA SA	Textiles, Apparel & Luxury Goods		49,500		79,177
^aGrupo Mateus SA	Consumer Staples Distribution & Retail		42,900		48,398
^a,bHapvida Participacoes e Investimentos SA	Health Care Providers & Services		445,500		230,208
Hypera SA	Pharmaceuticals		44,400		330,138
Intelbras SA Industria de Telecomunicacao Eletronica Brasileira	Communications Equipment		6,600		29,757
Itau Unibanco Holding SA	Banks		49,500		205,605
Klabin SA	Containers & Packaging		85,800		306,123
Localiza Rent a Car SA	Ground Transportation		87,081		917,139
Lojas Renner SA	Broadline Retail		105,600		345,110
M Dias Branco SA	Food Products		13,200		65,658
^aMagazine Luiza SA	Broadline Retail		339,900		221,896
Marfrig Global Foods SA	Food Products		36,300		47,538
Multiplan Empreendimentos Imobiliarios SA	Real Estate Management & Development		29,700		144,334
Natura & Co. Holding SA	Personal Products		105,600		274,921
Neoenergia SA	Electric Utilities		26,400		78,103
^aPetro Rio SA	Oil, Gas & Consumable Fuels		74,700		459,522
Petroleo Brasileiro SA	Oil, Gas & Consumable Fuels		412,500		2,155,145
Petroreconcavo SA	Oil, Gas & Consumable Fuels		23,100		92,623
Porto Seguro SA	Insurance		19,800		91,849
Raia Drogasil SA	Consumer Staples Distribution & Retail		118,800		572,883
^bRede D’Or Sao Luiz SA	Health Care Providers & Services		85,800		359,428
Rumo SA	Ground Transportation		138,600		515,282
Sao Martinho SA	Food Products		16,500		87,931
Sendas Distribuidora SA	Consumer Staples Distribution & Retail		132,000		404,572



276	Annual Report	franklintempleton.com

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SCHEDULE OF INVESTMENTS

Franklin FTSE Latin America ETF (continued)



	Industry	Shares		Value

Common Stocks (continued)
Brazil (continued)
SLC Agricola SA	Food Products		10,800	$	97,110
^aSmartfit Escola de Ginastica e Danca SA	Hotels, Restaurants & Leisure		13,200		34,730
Suzano SA	Paper & Forest Products		78,400		643,250
Telefonica Brasil SA	Diversified Telecommunication Services		49,500		377,431
TIM SA	Wireless Telecommunication Services		89,100		221,070
TOTVS SA	Software		49,500		274,921
Transmissora Alianca de Energia Eletrica SA	Electric Utilities		23,100		158,685
Ultrapar Participacoes SA	Oil, Gas & Consumable Fuels		92,400		254,406
Usinas Siderurgicas de Minas Gerais SA	Metals & Mining		19,800		31,124
Vale SA	Metals & Mining		432,400		6,847,275
Vamos Locacao de Caminhoes Maquinas e Equipamentos SA	Ground Transportation		36,300		95,578
Vibra Energia SA	Specialty Retail		125,400		356,395
WEG SA	Machinery		165,000		1,319,609


					28,969,759

Chile 4.9%
Banco de Chile	Banks		4,861,560		474,712
Banco de Credito e Inversiones SA	Banks		5,973		176,037
Banco Santander Chile	Banks		6,898,980		307,597
CAP SA	Metals & Mining		8,217		68,689
Cencosud SA	Consumer Staples Distribution & Retail		147,411		286,391
Cencosud Shopping SA	Real Estate Management & Development		53,922		87,300
Cia Cervecerias Unidas SA	Beverages		14,718		113,930
Cia Sud Americana de Vapores SA	Marine Transportation		1,944,921		194,440
Colbun SA	Independent Power Producers & Energy Traders		806,619		107,126
Empresas CMPC SA	Paper & Forest Products		133,320		224,007
Empresas Copec SA	Oil, Gas & Consumable Fuels		54,285		385,195
Enel Americas SA	Electric Utilities		2,117,313		280,394
Enel Chile SA	Electric Utilities		2,768,898		151,857
Falabella SA	Broadline Retail		88,341		204,257
Itau CorpBanca Chile SA	Banks		36,141,501		89,553
Plaza SA	Real Estate Management & Development		33,231		43,886
Quinenco SA	Industrial Conglomerates		29,634		115,258


					3,310,629

Colombia 1.0%
Bancolombia SA	Banks		30,624		229,977
Ecopetrol SA	Oil, Gas & Consumable Fuels		527,010		277,117
Interconexion Electrica SA ESP	Electric Utilities		49,104		159,665

					666,759

Mexico 32.4%
Alfa SAB de CV, Class A, A	Industrial Conglomerates		403,887		255,449
Alpek SAB de CV	Chemicals		41,646		46,176
America Movil SAB de CV	Wireless Telecommunication Services		3,139,092		3,291,040
Arca Continental SAB de CV	Beverages		49,137		445,324
^bBanco del Bajio SA	Banks		78,969		286,906
Becle SAB de CV	Beverages		60,060		155,173
^aCemex SAB de CV	Construction Materials		1,685,838		923,402
Coca-Cola Femsa SAB de CV	Beverages		58,476		468,721
Concentradora Fibra Danhos SA de CV	Diversified REITs		26,664		35,427
El Puerto de Liverpool SAB de CV, Class C1	Broadline Retail		22,011		138,020
Fibra Uno Administracion SA de CV	Diversified REITs		319,869		445,896
Fomento Economico Mexicano SAB de CV	Beverages		202,884		1,930,409
Gruma SAB de CV, Class B	Food Products		21,714		319,697
Grupo Aeroportuario del Centro Norte SAB de CV	Transportation Infrastructure		30,657		341,733



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SCHEDULE OF INVESTMENTS

Franklin FTSE Latin America ETF (continued)



	Industry	Shares		Value

Common Stocks (continued)
Mexico (continued)
Grupo Aeroportuario del Pacifico SAB de CV, Class B	Transportation Infrastructure		38,214	$	742,037
Grupo Aeroportuario del Sureste SAB de CV, Class B	Transportation Infrastructure		22,242		679,012
Grupo Bimbo SAB de CV	Food Products		246,345		1,237,182
Grupo Carso SAB de CV, A1	Industrial Conglomerates		50,160		248,800
Grupo Comercial Chedraui SA de CV	Consumer Staples Distribution & Retail		51,315		294,146
Grupo Elektra SAB de CV	Banks		6,699		379,950
Grupo Financiero Banorte SAB de CV, Class O	Banks		321,123		2,701,517
^aGrupo Financiero Inbursa SAB de CV, Class O	Banks		221,958		476,344
Grupo Mexico SAB de CV, Class B	Metals & Mining		351,450		1,660,901
Grupo Televisa SAB	Media		267,564		282,590
Industrias Bachoco SAB de CV	Food Products		8,283		44,631
^aIndustrias Penoles SAB de CV	Metals & Mining		13,794		203,060
Kimberly-Clark de Mexico SAB de CV, Class A	Household Products		92,697		194,881
Megacable Holdings SAB de CV	Media		33,297		84,662
Operadora De Sites Mexicanos SAB de CV, A-1	Diversified Telecommunication Services		139,524		137,700
Orbia Advance Corp. SAB de CV	Chemicals		108,009		234,370
Prologis Property Mexico SA de CV	Diversified REITs		59,994		216,671
Promotora y Operadora de Infraestructura SAB de CV	Transportation Infrastructure		24,354		242,717
Qualitas Controladora SAB de CV	Insurance		18,777		119,894
Regional SAB de CV	Banks		26,367		201,053
^aSitios Latinoamerica SAB de CV	Construction & Engineering		197,340		81,533
Wal-Mart de Mexico SAB de CV, Class V	Consumer Staples Distribution & Retail		573,507		2,287,866

					21,834,890

United States 1.0%
GCC SAB de CV	Construction Materials		18,117		143,333
JBS SA	Food Products		151,800		534,417


					677,750

Total Common Stocks (Cost $49,662,643)					55,459,787


Preferred Stocks 17.4%
Brazil 14.8%
^aAlpargatas SA, pfd.	Textiles, Apparel & Luxury Goods		26,400		42,436
^cBanco Bradesco SA, 6.492%, pfd.	Banks		577,500		1,500,059
^cBradespar SA, 11.708%, pfd.	Metals & Mining		26,400		139,647
^cBraskem SA, Class A, 8.76%, pfd.	Chemicals		19,800		75,603
^cCentrais Eletricas Brasileiras SA, Class B, 4.449%,pfd.	Electric Utilities		29,700		212,517
^cCia Energetica de Minas Gerais, 11.32%, pfd.	Electric Utilities		141,900		320,169
^cCia Paranaense de Energia, 11.974%, pfd.	Electric Utilities		148,500		203,262
^cCTEEP-Cia de Transmissao de Energia Eletrica Paulista, 4.167%, pfd.	Electric Utilities		19,800		84,624
^cGerdau SA, 13.863%, pfd.	Metals & Mining		121,275		604,910
^cItau Unibanco Holding SA, 4.349%, pfd.	Banks		537,900		2,624,653
^cItausa SA, 4.745%, pfd.	Banks		580,800		941,606
^cMetalurgica Gerdau SA, 10.025%, pfd.	Metals & Mining		72,600		169,392
^cPetroleo Brasileiro SA, 43.945%, pfd.	Oil, Gas & Consumable Fuels		623,700		2,884,624
^cUnipar Carbocloro SA, Class B, 19.565%, pfd	Chemicals		5,340		73,777
^cUsinas Siderurgicas de Minas Gerais SA, Class A, 8.628%, pfd.	Metals & Mining		52,800		75,916


					9,953,195



278	Annual Report	franklintempleton.com

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SCHEDULE OF INVESTMENTS

Franklin FTSE Latin America ETF (continued)



	Industry	Shares		Value

Preferred Stocks (continued)
Chile 2.0%
^cEmbotelladora Andina SA, Class B, 13.254%, pfd.	Beverages		41,811	$	108,413
^cSociedad Quimica y Minera de Chile SA, Class B, 0.012%, pfd.	Chemicals		15,147		1,222,320


					1,330,733

Colombia 0.6%
^cBancolombia SA, 11.049%, pfd.	Banks		50,028		313,312
^cGrupo Aval Acciones y Valores SA, 0.75%, pfd.	Banks		482,361		57,861
^cGrupo de Inversiones Suramericana SA, 6.944%,pfd.	Financial Services		8,910		21,590

					392,763

Total Preferred Stocks (Cost $12,040,295)					11,676,691


Right 0.0%^†
Brazil 0.0%^†
Localiza Rent a Car SA	Ground Transportation		389		1,007


Total Rights (Cost $0)					1,007


Total Investments (Cost $61,702,938) 99.7%					67,137,485
Other Assets, less Liabilities 0.3%					234,747


Net Assets 100.0%				$	67,372,232

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

^aNon-income producing.

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

At March 31, 2023, the Fund had the following futures contracts outstanding. See Note 1(c).

Futures Contracts

Description

Type

Number of

Contracts

Notional

Amount

Expiration

Date

Value/Unrealized

Appreciation

(Depreciation)

Equity Contracts

Bovespa Index

Long

$201,426

4/12/23

$(14,879

)

*As of year end.

See Note 7 regarding other derivative information.

See Abbreviations on page 355.



franklintempleton.com	The accompanying notes are an integral part of these financial statements. \| Annual Report	279

FRANKLIN TEMPLETON ETF TRUST

Financial Highlights

Franklin FTSE Mexico ETF



				Year Ended March 31,

	2023			2022			2021			2020			2019

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

Net asset value, beginning of year		$27.49			$22.14			$14.35			$22.11			$24.98

Income from investment operations^a:

Net investment income^b		0.91			0.66			0.33			0.64			0.51

Net realized and unrealized gains (losses)		1.91			5.48			7.78			(7.73	)		(2.86	)

Total from investment operations		2.82			6.14			8.11			(7.09	)		(2.35	)

Less distributions from net investment income		(1.03	)		(0.79	)		(0.32	)		(0.67	)		(0.52	)

Net asset value, end of year		$29.28			$27.49			$22.14			$14.35			$22.11

Total return^c		11.15%			28.33%			56.94%			(33.13)%			(9.28)%

Ratios to average net assets^d

Total expenses		0.19%			0.19%			0.19%			0.19%			0.19%

Net investment income		3.55%			2.73%			1.80%			2.93%			2.21%

Supplemental data

Net assets, end of year (000’s)		$24,890			$12,372			$5,536			$2,871			$4,422

Portfolio turnover rate^e		11.16%^f			22.39%^f			18.32%^f			19.32%^f			10.31%
^aThe amount shown for a share outstanding throughout the period may not correlate with the Statement of Operations for the period due to the timing of sales and repurchases of Creation Unit Fund shares in relation to income earned and/or fluctuating fair value of the investments of the Fund. ^bBased on average daily shares outstanding. ^cTotal return is not annualized for periods less than one year. Total return is calculated assuming an initial investment made at the net asset value at the beginning of the period, reinvestment of all dividends and distributions at net asset value during the period, and redemption at net asset value on the last day of the period. ^dRatios are annualized for periods less than one year. ^ePortfolio turnover rate includes portfolio transactions that are executed as a result of the Fund offering and redeeming Creation Units solely for cash (“Cash creations”).
^fPortfolio turnover rate excluding cash creations was as follows:		11.16%			22.39%			18.32%			19.32%			—



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

FRANKLIN TEMPLETON ETF TRUST

Schedule of Investments, March 31, 2023

Franklin FTSE Mexico ETF



	Industry	Shares		Value

Common Stocks 100.0%
Mexico 99.2%
Alfa SAB de CV, Class A, A	Industrial Conglomerates		573,461	$	362,701
Alpek SAB de CV	Chemicals		59,109		65,538
America Movil SAB de CV	Wireless Telecommunication Services		3,016,718		3,162,742
Arca Continental SAB de CV	Beverages		69,751		632,147
^aBanco del Bajio SA	Banks		111,996		406,897
Becle SAB de CV	Beverages		85,187		220,092
^bCemex SAB de CV	Construction Materials		1,804,890		988,611
Coca-Cola Femsa SAB de CV	Beverages		83,045		665,657
Concentradora Fibra Danhos SA de CV	Diversified REITs		37,961		50,437
El Puerto de Liverpool SAB de CV, Class C1	Broadline Retail		31,229		195,821
Fibra Uno Administracion SA de CV	Diversified REITs		454,308		633,304
Fomento Economico Mexicano SAB de CV	Beverages		206,618		1,965,938
Gruma SAB de CV, Class B	Food Products		30,787		453,280
Grupo Aeroportuario del Centro Norte SAB de CV	Transportation Infrastructure		43,503		484,927
Grupo Aeroportuario del Pacifico SAB de CV, Class B	Transportation Infrastructure		44,472		863,554
Grupo Aeroportuario del Sureste SAB de CV, Class B	Transportation Infrastructure		26,588		811,688
Grupo Bimbo SAB de CV	Food Products		237,048		1,190,491
Grupo Carso SAB de CV, A1	Industrial Conglomerates		71,230		353,310
Grupo Comercial Chedraui SA de CV	Consumer Staples Distribution & Retail		72,879		417,754
Grupo Elektra SAB de CV	Banks		9,521		540,007
Grupo Financiero Banorte SAB de CV, Class O	Banks		314,143		2,642,796
^bGrupo Financiero Inbursa SAB de CV, Class O	Banks		314,806		675,605
Grupo Mexico SAB de CV, Class B	Metals & Mining		365,381		1,726,737
Grupo Televisa SAB	Media		379,457		400,767
Industrias Bachoco SAB de CV	Food Products		11,730		63,204
^bIndustrias Penoles SAB de CV	Metals & Mining		19,601		288,544
Kimberly-Clark de Mexico SAB de CV, Class A	Household Products		131,461		276,377
Megacable Holdings SAB de CV	Media		47,481		120,727
Operadora De Sites Mexicanos SAB de CV, A-1	Diversified Telecommunication Services		198,033		195,445
Orbia Advance Corp. SAB de CV	Chemicals		153,425		332,919
Prologis Property Mexico SA de CV	Diversified REITs		85,085		307,288
Promotora y Operadora de Infraestructura SAB de CV	Transportation Infrastructure		34,561		344,442
Qualitas Controladora SAB de CV	Insurance		26,639		170,094
Regional SAB de CV	Banks		37,383		285,052
^bSitios Latinoamerica SAB de CV	Construction & Engineering		279,803		115,603
Wal-Mart de Mexico SAB de CV, Class V	Consumer Staples Distribution & Retail		569,058		2,270,118

					24,680,614

United States 0.8%
GCC SAB de CV	Construction Materials		25,840		204,433

Total Investments (Cost $21,033,038) 100.0%					24,885,047
Other Assets, less Liabilities 0.0%^†					4,801

Net Assets 100.0%				$	24,889,848

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

^bNon-income producing.



franklintempleton.com	The accompanying notes are an integral part of these financial statements. \| Annual Report	281

FRANKLIN TEMPLETON ETF TRUST

Financial Highlights

Franklin FTSE Saudi Arabia ETF



	Year Ended March 31,

	2023			2022			2021			2020			2019^a

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

Net asset value, beginning of year		$41.30			$30.33			$20.15			$27.89			$24.71

Income from investment operations^b:

Net investment income^c		1.38			0.62			0.52			0.89			0.11

Net realized and unrealized gains (losses)		(8.40	)		11.03			10.23			(7.80	)		3.07

Total from investment operations		(7.02	)		11.65			10.75			(6.91	)		3.18

Less distributions from net investment income		(0.63	)		(0.68	)		(0.57	)		(0.83	)		—

Net asset value, end of year		$33.65			$41.30			$30.33			$20.15			$27.89

Total return^d		(17.04)%			38.99%			54.12%			(25.51)%			12.87%

Ratios to average net assets^e

Total expenses		0.39%			0.39%			0.39%			0.39%			0.39%

Net investment income		3.97%			1.77%			2.11%			3.46%			0.93%

Supplemental data

Net assets, end of year (000’s)		$21,874			$4,130			$3,033			$2,015			$2,789

Portfolio turnover rate^f		5.44%^g			15.51%^g			16.74%^g			32.37%^g			12.41%
^aFor the period October 9, 2018 (commencement of operations) to March 31, 2019. ^bThe amount shown for a share outstanding throughout the period may not correlate with the Statement of Operations for the period due to the timing of sales and repurchases of Creation Unit Fund shares in relation to income earned and/or fluctuating fair value of the investments of the Fund. ^cBased on average daily shares outstanding. ^dTotal return is not annualized for periods less than one year. Total return is calculated assuming an initial investment made at the net asset value at the beginning of the period, reinvestment of all dividends and distributions at net asset value during the period, and redemption at net asset value on the last day of the period. ^eRatios are annualized for periods less than one year. ^fPortfolio turnover rate includes portfolio transactions that are executed as a result of the Fund offering and redeeming Creation Units solely for cash (“Cash creations”).
^gPortfolio turnover rate excluding cash creations was as follows:		5.44%			15.51%			16.74%			32.37%			—



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

FRANKLIN TEMPLETON ETF TRUST

Schedule of Investments, March 31, 2023

Franklin FTSE Saudi Arabia ETF



	Industry	Shares		Value

Common Stocks 99.3%
Saudi Arabia 99.3%
Abdullah Al Othaim Markets Co.	Consumer Staples Distribution & Retail		3,718	$	126,783
ACWA Power Co.	Independent Power Producers & Energy Traders		11,245		421,197
Advanced Petrochemical Co.	Chemicals		10,764		137,070
^aAl Rajhi Bank	Banks		134,589		2,635,344
Alinma Bank	Banks		82,745		649,183
Almarai Co. JSC	Food Products		21,281		319,751
Arab National Bank	Banks		56,238		386,536
Arabian Centres Co. Ltd.	Real Estate Management & Development		13,533		73,475
Arabian Internet & Communications Services Co.	IT Services		2,132		141,312
^aBank AlBilad	Banks		41,379		438,736
Bank Al-Jazira	Banks		33,943		164,393
Banque Saudi Fransi	Banks		49,647		478,787
BinDawood Holding Co.	Consumer Staples Distribution & Retail		2,470		43,363
Bupa Arabia for Cooperative Insurance Co.	Insurance		6,045		279,889
^aCo. for Cooperative Insurance	Insurance		5,161		144,640
Dallah Healthcare Co.	Health Care Providers & Services		3,458		141,869
^aDar Al Arkan Real Estate Development Co.	Real Estate Management & Development		44,720		190,855
Dr Sulaiman Al Habib Medical Services Group Co.	Health Care Providers & Services		7,748		601,478
Elm Co.	IT Services		2,158		253,991
^aEmaar Economic City	Real Estate Management & Development		30,862		66,267
Etihad Etisalat Co.	Wireless Telecommunication Services		31,863		350,147
Jarir Marketing Co.	Specialty Retail		4,966		215,643
^aMobile Telecommunications Co. Saudi Arabia	Wireless Telecommunication Services		37,206		128,854
Mouwasat Medical Services Co.	Health Care Providers & Services		4,004		250,670
Nahdi Medical Co.	Consumer Staples Distribution & Retail		3,289		161,747
^aNational Industrialization Co.	Chemicals		27,599		89,847
Qassim Cement Co.	Construction Materials		3,718		66,660
^aRabigh Refining & Petrochemical Co.	Oil, Gas & Consumable Fuels		35,178		94,465
Riyad Bank	Banks		123,747		979,110
SABIC Agri-Nutrients Co.	Chemicals		19,695		668,445
Sahara International Petrochemical Co.	Chemicals		30,342		305,950
^aSaudi Airlines Catering Co.	Commercial Services & Supplies		3,380		77,258
^aSaudi Arabian Mining Co.	Metals & Mining		61,568		1,049,725
^bSaudi Arabian Oil Co.	Oil, Gas & Consumable Fuels		199,160		1,713,741
Saudi Basic Industries Corp.	Chemicals		64,805		1,558,966
Saudi British Bank	Banks		84,448		793,029
Saudi Cement Co.	Construction Materials		6,331		94,450
Saudi Electricity Co.	Electric Utilities		66,027		410,899
Saudi Industrial Investment Group	Chemicals		31,252		207,975
Saudi Investment Bank	Banks		41,392		182,607
^aSaudi Kayan Petrochemical Co.	Chemicals		62,088		200,140
Saudi National Bank	Banks		153,335		1,872,928
^aSaudi Research & Media Group	Media		2,717		142,737
Saudi Tadawul Group Holding Co.	Capital Markets		4,043		155,529
Saudi Telecom Co.	Diversified Telecommunication Services		131,911		1,407,421
Saudia Dairy & Foodstuff Co.	Food Products		1,300		82,218
Savola Group	Food Products		22,113		164,653
^aSeera Group Holding	Hotels, Restaurants & Leisure		12,376		73,391
Southern Province Cement Co.	Construction Materials		5,798		77,153
United Electronics Co.	Specialty Retail		3,302		68,350
^aYamama Cement Co.	Construction Materials		8,385		68,801
Yanbu Cement Co.	Construction Materials		6,500		60,607



franklintempleton.com	Annual Report	283

FRANKLIN TEMPLETON ETF TRUST

SCHEDULE OF INVESTMENTS

Franklin FTSE Saudi Arabia ETF (continued)



	Industry	Shares		Value

Common Stocks (continued)
Saudi Arabia (continued)
Yanbu National Petrochemical Co.	Chemicals		23,283	$	261,443

Total Investments (Cost $20,984,820) 99.3%					21,730,478
Other Assets, less Liabilities 0.7%					143,154

Net Assets 100.0%				$	21,873,632

^aNon-income producing.



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

FRANKLIN TEMPLETON ETF TRUST

Financial Highlights

Franklin FTSE South Africa ETF



	Year Ended March 31,

	2023			2022			2021			2020			2019^a

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

Net asset value, beginning of year		$29.79			$26.22			$14.81			$26.62			$24.42

Income from investment operations^b:

Net investment income^c		0.94			0.94			1.03			2.65			0.22

Net realized and unrealized gains (losses)		(7.21	)		3.35			11.33			(11.76	)		2.04

Total from investment operations		(6.27	)		4.29			12.36			(9.11	)		2.26

Less distributions from net investment income		(1.08	)		(0.72	)		(0.95	)		(2.70	)		(0.06	)

Net asset value, end of year		$22.44			$29.79			$26.22			$14.81			$26.62

Total return^d		(20.97)%			16.82%			85.24%			(38.46)%			9.26%

Ratios to average net assets^e

Total expenses		0.19%			0.19%			0.19%			0.19%			0.19%

Net investment income		4.03%			3.56%			4.94%			10.42%			1.75%

Supplemental data

Net assets, end of year (000’s)		$2,244			$5,958			$2,622			$1,481			$2,662

Portfolio turnover rate^f		7.91%^g			13.19%^g			11.08%^g			21.44%^g			7.12%
^aFor the period October 10, 2018 (commencement of operations) to March 31, 2019. ^bThe amount shown for a share outstanding throughout the period may not correlate with the Statement of Operations for the period due to the timing of sales and repurchases of Creation Unit Fund shares in relation to income earned and/or fluctuating fair value of the investments of the Fund. ^cBased on average daily shares outstanding. ^dTotal return is not annualized for periods less than one year. Total return is calculated assuming an initial investment made at the net asset value at the beginning of the period, reinvestment of all dividends and distributions at net asset value during the period, and redemption at net asset value on the last day of the period. ^eRatios are annualized for periods less than one year. ^fPortfolio turnover rate includes portfolio transactions that are executed as a result of the Fund offering and redeeming Creation Units solely for cash (“Cash creations”).
^gPortfolio turnover rate excluding cash creations was as follows:		7.91%			13.19%			11.08%			21.44%			—



franklintempleton.com	The accompanying notes are an integral part of these financial statements. \| Annual Report	285

FRANKLIN TEMPLETON ETF TRUST

Schedule of Investments, March 31, 2023

Franklin FTSE South Africa ETF



	Industry	Shares		Value

Common Stocks 99.9%
Luxembourg 1.2%
Reinet Investments SCA	Capital Markets		1,278	$	26,296

Romania 1.1%
NEPI Rockcastle NV	Real Estate Management & Development		4,370		25,445

South Africa 97.6%
Absa Group Ltd.	Banks		7,824		80,160
African Rainbow Minerals Ltd.	Metals & Mining		994		12,922
Anglo American Platinum Ltd.	Metals & Mining		528		28,390
AngloGold Ashanti Ltd.	Metals & Mining		3,942		95,848
Aspen Pharmacare Holdings Ltd.	Pharmaceuticals		3,492		36,053
AVI Ltd.	Food Products		3,084		12,202
Bid Corp. Ltd.	Consumer Staples Distribution & Retail		3,134		70,390
Bidvest Group Ltd.	Industrial Conglomerates		3,198		45,678
Capitec Bank Holdings Ltd.	Banks		800		76,097
Clicks Group Ltd.	Consumer Staples Distribution & Retail		2,298		33,303
^aDis-Chem Pharmacies Ltd.	Consumer Staples Distribution & Retail		3,484		5,094
^bDiscovery Ltd.	Insurance		4,950		38,905
Exxaro Resources Ltd.	Oil, Gas & Consumable Fuels		2,274		23,909
FirstRand Ltd.	Financial Services		46,756		159,117
Foschini Group Ltd.	Specialty Retail		3,032		15,542
Gold Fields Ltd.	Metals & Mining		8,274		110,522
Growthpoint Properties Ltd.	Diversified REITs		31,978		23,539
Harmony Gold Mining Co. Ltd.	Metals & Mining		5,048		20,821
Impala Platinum Holdings Ltd.	Metals & Mining		7,658		70,712
Investec Ltd.	Capital Markets		2,632		14,556
Kumba Iron Ore Ltd.	Metals & Mining		508		12,875
Life Healthcare Group Holdings Ltd.	Health Care Providers & Services		13,076		14,216
Momentum Metropolitan Holdings	Insurance		11,740		11,666
Mr Price Group Ltd.	Specialty Retail		2,420		19,668
MTN Group Ltd.	Wireless Telecommunication Services		16,962		121,863
MultiChoice Group	Media		2,752		19,134
Naspers Ltd., Class N	Internet & Direct Marketing Retail		1,812		336,302
Nedbank Group Ltd.	Banks		3,952		48,302
Netcare Ltd.	Health Care Providers & Services		13,500		11,269
^bNortham Platinum Holdings Ltd.	Metals & Mining		3,486		28,442
Old Mutual Ltd.	Insurance		42,392		28,194
OUTsurance Group Ltd.	Insurance		7,934		15,620
^aPepkor Holdings Ltd.	Specialty Retail		19,460		18,909
Pick n Pay Stores Ltd.	Consumer Staples Distribution & Retail		3,250		7,743
Redefine Properties Ltd.	Diversified REITs		61,912		12,702
Remgro Ltd.	Financial Services		4,790		36,292
Royal Bafokeng Platinum Ltd.	Metals & Mining		702		5,672
Sanlam Ltd.	Insurance		16,536		52,537
Santam Ltd.	Insurance		382		6,136
Sappi Ltd.	Paper & Forest Products		5,370		13,865
Sasol Ltd.	Chemicals		5,254		71,070
Shoprite Holdings Ltd.	Consumer Staples Distribution & Retail		4,572		57,273
Sibanye Stillwater Ltd.	Metals & Mining		26,388		54,479
Standard Bank Group Ltd.	Banks		12,516		121,904
Tiger Brands Ltd.	Food Products		1,486		16,794
Transaction Capital Ltd.	Consumer Finance		5,506		3,957
Vodacom Group Ltd.	Wireless Telecommunication Services		5,620		38,657



286	Annual Report	franklintempleton.com

FRANKLIN TEMPLETON ETF TRUST

SCHEDULE OF INVESTMENTS

Franklin FTSE South Africa ETF (continued)



	Industry	Shares		Value

Common Stocks (continued)
South Africa (continued)
Woolworths Holdings Ltd.	Broadline Retail		8,658	$	31,197


					2,190,498

Total Investments (Cost $2,702,285) 99.9%					2,242,239
Other Assets, less Liabilities 0.1%					1,388

Net Assets 100.0%				$	2,243,627

^bNon-income producing.



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,

	2023			2022			2021			2020			2019

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

Net asset value, beginning of year		$25.57			$31.48			$16.52			$21.19			$25.98

Income from investment operations^a:

Net investment income^b		0.49			0.55			0.54			0.36			0.40

Net realized and unrealized gains (losses)		(4.37	)		(5.87	)		14.72			(4.58	)		(4.81	)

Total from investment operations		(3.88	)		(5.32	)		15.26			(4.22	)		(4.41	)

Less distributions from net investment income		(0.61	)		(0.59	)		(0.30	)		(0.45	)		(0.38	)

Net asset value, end of year		$21.08			$25.57			$31.48			$16.52			$21.19

Total return^c		(15.00)%			(17.15)%			92.55%			(20.24)%			(16.92)%

Ratios to average net assets^d

Expenses before waiver and payments by affiliates		0.09%			0.09%			0.09%			0.09%			0.09%

Expenses net of waiver and payments by affiliates		0.09%			0.09%			0.09%			0.09%			0.09%

Net investment income		2.36%			1.86%			2.07%			1.78%			1.74%

Supplemental data

Net assets, end of year (000’s)		$293,049			$61,361			$62,966			$11,562			$16,948

Portfolio turnover rate^e		5.97%^f			27.38%^f			8.65%^f			21.72%^f			5.21%
^aThe amount shown for a share outstanding throughout the period may not correlate with the Statement of Operations for the period due to the timing of sales and repurchases of Creation Unit Fund shares in relation to income earned and/or fluctuating fair value of the investments of the Fund. ^bBased on average daily shares outstanding. ^cTotal return is not annualized for periods less than one year. Total return is calculated assuming an initial investment made at the net asset value at the beginning of the period, reinvestment of all dividends and distributions at net asset value during the period, and redemption at net asset value on the last day of the period. ^dRatios are annualized for periods less than one year. ^ePortfolio turnover rate includes portfolio transactions that are executed as a result of the Fund offering and redeeming Creation Units solely for cash (“Cash creations”).
^fPortfolio turnover rate excluding cash creations was as follows:		5.97%			10.53%			8.65%			8.02%			—



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

FRANKLIN TEMPLETON ETF TRUST

Schedule of Investments, March 31, 2023

Franklin FTSE South Korea ETF



	Industry	Shares		Value

Common Stocks 95.4%
South Korea 95.4%
^aAlteogen, Inc., Class A	Biotechnology		14,178	$	431,814
Amorepacific Corp., Class H	Personal Products		12,232		1,285,354
AMOREPACIFIC Group, Class A	Personal Products		11,954		353,519
BGF retail Co. Ltd.	Consumer Staples Distribution & Retail		2,641		368,606
BNK Financial Group, Inc., Class H	Banks		122,042		610,280
Celltrion Healthcare Co. Ltd., Class A	Health Care Providers & Services		41,561		1,921,859
^aCelltrion Pharm, Inc., Class A	Pharmaceuticals		8,479		539,931
Celltrion, Inc., Class A	Biotechnology		46,287		5,326,107
Cheil Worldwide, Inc., Class A	Media		29,051		415,508
^aCJ CheilJedang Corp., Class A	Food Products		3,336		835,377
CJ Corp., Class A	Industrial Conglomerates		5,421		434,313
^aCJ ENM Co. Ltd., Class A	Entertainment		4,309		284,321
^aCJ Logistics Corp., Class A	Ground Transportation		3,475		213,275
Coway Co. Ltd.	Household Durables		23,630		952,932
^aDaewoo Engineering & Construction Co. Ltd., Class A	Construction & Engineering		74,365		230,204
^aDaewoo Shipbuilding & Marine Engineering Co. Ltd., Class A	Machinery		20,016		376,689
DB Insurance Co. Ltd., Class A	Insurance		18,765		1,079,616
DGB Financial Group, Inc., Class A	Banks		64,218		340,365
DL E&C Co. Ltd., Class A	Construction & Engineering		12,649		314,318
DL Holdings Co. Ltd., Class A	Construction & Engineering		5,004		204,872
Dongsuh Cos., Inc., Class A	Consumer Staples Distribution & Retail		12,927		194,920
Doosan Bobcat, Inc., Class A	Machinery		10,147		340,611
^aDoosan Enerbility Co. Ltd., Class H	Electrical Equipment		175,557		2,292,483
Ecopro BM Co. Ltd.	Electrical Equipment		16,541		2,852,444
^aE-MART, Inc., Class A	Consumer Staples Distribution & Retail		8,062		653,952
F&F Co. Ltd.	Textiles, Apparel & Luxury Goods		6,672		714,940
Fila Holdings Corp.	Textiles, Apparel & Luxury Goods		21,545		604,058
Green Cross Corp.	Biotechnology		2,224		208,588
GS Engineering & Construction Corp.	Construction & Engineering		26,271		416,712
^aGS Holdings Corp.	Oil, Gas & Consumable Fuels		21,406		664,287
GS Retail Co. Ltd.	Consumer Staples Distribution & Retail		16,263		354,155
Hana Financial Group, Inc.	Banks		120,791		3,776,313
^aHanjin Kal Corp.	Airlines		8,896		313,993
Hankook Tire & Technology Co. Ltd.	Automobile Components		30,997		828,587
^aHanmi Pharm Co. Ltd.	Pharmaceuticals		3,197		628,668
^aHanmi Science Co. Ltd.	Pharmaceuticals		10,286		307,746
Hanon Systems	Automobile Components		67,554		455,601
Hanwha Aerospace Co. Ltd.	Aerospace & Defense		14,456		1,101,536
Hanwha Corp.	Industrial Conglomerates		17,653		355,948
Hanwha Corp.	Industrial Conglomerates		9,730		104,561
Hanwha Galleria Co. Ltd.	Broadline Retail		48,672		79,634
^aHanwha Life Insurance Co. Ltd.	Insurance		115,648		213,201
^aHanwha Solutions Corp.	Chemicals		43,156		1,780,141
HD Hyundai Co. Ltd.	Machinery		21,128		942,917
^aHite Jinro Co. Ltd.	Beverages		12,649		217,642
HL Mando Co. Ltd.	Automobile Components		13,761		484,650
^aHLB, Inc.	Leisure Products		42,256		1,127,930
^aHMM Co. Ltd.	Marine Transportation		122,459		1,914,230
Hotel Shilla Co. Ltd.	Specialty Retail		12,927		809,272
^aHYBE Co. Ltd.	Entertainment		7,645		1,109,299
Hyundai Department Store Co. Ltd.	Broadline Retail		6,116		256,977
^aHyundai Doosan Infracore Co. Ltd.	Machinery		56,851		328,831
Hyundai Engineering & Construction Co. Ltd.	Construction & Engineering		30,580		856,198
Hyundai Glovis Co. Ltd.	Air Freight & Logistics		7,784		947,701
^aHyundai Heavy Industries Co. Ltd.	Machinery		7,923		608,595



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SCHEDULE OF INVESTMENTS

Franklin FTSE South Korea ETF (continued)



	Industry	Shares		Value

Common Stocks (continued)
South Korea (continued)
Hyundai Marine & Fire Insurance Co. Ltd.	Insurance		25,020	$	649,596
^aHyundai Mipo Dockyard Co. Ltd.	Machinery		8,479		457,215
Hyundai Mobis Co. Ltd.	Automobile Components		26,271		4,358,825
Hyundai Motor Co.	Automobiles		58,380		8,273,695
Hyundai Steel Co.	Metals & Mining		31,553		841,026
Hyundai Wia Corp.	Automobile Components		6,533		281,022
^aIndustrial Bank of Korea	Banks		106,613		827,124
^aKakao Corp.	Interactive Media & Services		126,907		5,956,153
^aKakao Games Corp.	Entertainment		12,510		400,712
^aKakaoBank Corp.	Banks		71,168		1,320,204
^aKakaopay Corp.	IT Services		8,757		373,998
^aKangwon Land, Inc.	Hotels, Restaurants & Leisure		44,758		684,168
KB Financial Group, Inc.	Banks		162,908		5,962,719
KCC Corp.	Building Products		1,807		308,141
^aKEPCO Plant Service & Engineering Co. Ltd.	Commercial Services & Supplies		8,757		254,265
Kia Corp.	Automobiles		108,003		6,719,855
^aKorea Aerospace Industries Ltd.	Aerospace & Defense		29,468		1,072,922
^aKorea Electric Power Corp.	Electric Utilities		107,169		1,482,593
^aKorea Gas Corp.	Gas Utilities		10,703		222,799
^aKorea Investment Holdings Co. Ltd.	Capital Markets		15,985		675,327
^aKorea Shipbuilding & Offshore Engineering Co. Ltd.	Machinery		18,070		1,075,719
Korea Zinc Co. Ltd.	Metals & Mining		4,031		1,712,289
^aKorean Air Lines Co. Ltd.	Airlines		77,423		1,379,739
^aKrafton, Inc.	Entertainment		12,232		1,724,140
^aKT&G Corp.	Tobacco		45,036		2,902,424
^aKumho Petrochemical Co. Ltd.	Chemicals		7,089		782,494
L&F Co. Ltd.	Electronic Equipment, Instruments & Components		9,730		2,343,093
LG Chem Ltd.	Chemicals		19,460		10,642,947
LG Corp.	Industrial Conglomerates		36,696		2,333,932
^aLG Display Co. Ltd.	Electronic Equipment, Instruments & Components		93,825		1,184,119
LG Electronics, Inc.	Household Durables		45,175		4,000,981
^aLG Energy Solution Ltd.	Electrical Equipment		14,595		6,547,206
LG H&H Co. Ltd.	Personal Products		3,753		1,729,692
LG Innotek Co. Ltd.	Electronic Equipment, Instruments & Components		5,977		1,241,908
LG Uplus Corp.	Diversified Telecommunication Services		88,821		738,896
Lotte Chemical Corp.	Chemicals		7,645		1,120,456
Lotte Chilsung Beverage Co. Ltd.	Beverages		1,251		158,459
Lotte Corp.	Industrial Conglomerates		10,981		242,504
^aLotte Energy Materials Corp.	Electronic Equipment, Instruments & Components		9,035		477,481
LOTTE Fine Chemical Co. Ltd.	Chemicals		7,367		330,478
Lotte Shopping Co. Ltd.	Broadline Retail		4,726		297,315
LS Corp.	Electrical Equipment		7,228		441,947
Meritz Financial Group, Inc.	Financial Services		54,905		1,627,939
Mirae Asset Securities Co. Ltd.	Capital Markets		110,088		546,275
Mirae Asset Securities Co. Ltd.	Capital Markets		56,712		154,647
NAVER Corp.	Interactive Media & Services		60,465		9,381,979
NCSoft Corp.	Entertainment		6,672		1,903,943
^a,bNetmarble Corp.	Software		7,089		361,025
^aNH Investment & Securities Co. Ltd.	Capital Markets		56,851		384,291
^aNHN Corp.	Software		6,672		134,788
NongShim Co. Ltd.	Food Products		1,390		404,663
^aOCI Co. Ltd.	Chemicals		7,645		600,748
Orion Corp.	Food Products		9,035		948,021
^aOttogi Corp.	Food Products		556		191,334
Pan Ocean Co. Ltd.	Marine Transportation		78,535		350,492
^aParadise Co. Ltd.	Hotels, Restaurants & Leisure		19,182		247,391



290	Annual Report	franklintempleton.com

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SCHEDULE OF INVESTMENTS

Franklin FTSE South Korea ETF (continued)



	Industry	Shares		Value

Common Stocks (continued)
South Korea (continued)
^aPearl Abyss Corp.	Entertainment		12,927	$	459,249
POSCO Chemical Co. Ltd.	Construction Materials		11,398		2,385,801
POSCO Holdings, Inc.	Metals & Mining		31,414		8,879,942
Posco International Corp.	Trading Companies & Distributors		19,043		326,196
S-1 Corp.	Commercial Services & Supplies		7,923		336,553
^a,bSamsung Biologics Co. Ltd.	Life Sciences Tools & Services		7,724		4,675,279
Samsung C&T Corp.	Industrial Conglomerates		35,167		2,922,817
Samsung Card Co. Ltd.	Consumer Finance		12,510		292,126
Samsung Electro-Mechanics Co. Ltd.	Electronic Equipment, Instruments & Components		23,352		2,739,064
Samsung Electronics Co. Ltd.	Technology Hardware, Storage & Peripherals		1,063,767		52,295,647
^aSamsung Engineering Co. Ltd.	Construction & Engineering		66,164		1,611,091
Samsung Fire & Marine Insurance Co. Ltd.	Insurance		13,761		2,177,490
^aSamsung Heavy Industries Co. Ltd.	Machinery		258,679		1,027,285
Samsung Life Insurance Co. Ltd.	Insurance		31,136		1,501,971
Samsung SDI Co. Ltd.	Electronic Equipment, Instruments & Components		22,101		12,477,809
Samsung SDS Co. Ltd.	IT Services		15,290		1,362,400
Samsung Securities Co. Ltd.	Capital Markets		26,410		643,083
SD Biosensor, Inc.	Health Care Equipment & Supplies		13,900		225,287
^aSeegene, Inc.	Biotechnology		11,537		219,778
^aShin Poong Pharmaceutical Co. Ltd.	Pharmaceuticals		14,178		196,141
Shinhan Financial Group Co. Ltd.	Banks		208,917		5,672,862
^aShinsegae, Inc.	Broadline Retail		2,919		483,193
^aSK Biopharmaceuticals Co. Ltd.	Pharmaceuticals		10,286		500,137
^aSK Bioscience Co. Ltd.	Biotechnology		8,340		461,892
SK Chemicals Co. Ltd.	Chemicals		4,170		238,633
SK Hynix, Inc.	Semiconductors & Semiconductor Equipment		226,848		15,438,593
^a,bSK IE Technology Co. Ltd.	Chemicals		10,703		585,362
^aSK Innovation Co. Ltd.	Oil, Gas & Consumable Fuels		21,958		3,024,211
SK Networks Co. Ltd.	Trading Companies & Distributors		56,156		194,326
^aSK Square Co. Ltd.	Semiconductors & Semiconductor Equipment		41,422		1,264,757
SK Telecom Co. Ltd.	Wireless Telecommunication Services		5,282		195,968
SK, Inc.	Industrial Conglomerates		15,151		2,007,564
SKC Co. Ltd.	Chemicals		8,062		707,829
S-Oil Corp.	Oil, Gas & Consumable Fuels		17,236		1,060,494
Solus Advanced Materials Co. Ltd.	Electronic Equipment, Instruments & Components		5,560		200,730
SSANGYONG C&E Co. Ltd.	Construction Materials		46,426		220,032
^aWemade Co. Ltd.	Entertainment		7,089		273,355
Woori Financial Group, Inc.	Banks		265,351		2,325,656
Yuhan Corp.	Pharmaceuticals		22,240		864,419


Total Common Stocks (Cost $281,073,100)					279,609,717

Preferred Stocks 3.8%
South Korea 3.8%
^cAmorepacific Corp., 1.546%, pfd.	Personal Products		4,448		151,359
^a,cCJ CheilJedang Corp., 1.780%,pfd.	Food Products		556		66,412
^cHyundai Motor Co., 7.411%, pfd.	Automobiles		14,595		1,074,011
^cHyundai Motor Co., 7.468%, pfd.	Automobiles		9,313		675,306
^cLG Chem Ltd., 3.237%, pfd.	Chemicals		3,197		762,506
^cLG Electronics, Inc., 1.54%, pfd.	Household Durables		7,228		270,387
^cLG H&H Co. Ltd., 1.636%, pfd.	Personal Products		834		158,555
^cSamsung Electronics Co. Ltd., 2.681%, pfd.	Technology Hardware, Storage & Peripherals		185,148		7,665,612
^cSamsung Fire & Marine Insurance Co. Ltd., 8.666%, pfd.	Insurance		1,112		136,069



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SCHEDULE OF INVESTMENTS

Franklin FTSE South Korea ETF (continued)



	Industry	Shares		Value

Preferred Stocks (continued)
South Korea (continued)
^cSamsung SDI Co. Ltd., 0.325%, pfd.	Electronic Equipment, Instruments & Components		556	$	142,006

Total Preferred Stocks (Cost $11,355,796)					11,102,223

Total Investments (Cost $292,428,896) 99.2%					290,711,940
Other Assets, less Liabilities 0.8%					2,336,853

Net Assets 100.0%				$	293,048,793

^aNon-income producing.

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

At March 31, 2023, 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

$2,175,654

6/08/23

$25,029

*As of year end.

See Note 7 regarding other derivative information.

See Abbreviations on page 355.



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,

	2023			2022			2021			2020			2019

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

Net asset value, beginning of year		$34.00			$30.36			$24.44			$23.86			$23.11

Income from investment operations^a:

Net investment income^b		0.66			0.70			0.88			1.06			0.53

Net realized and unrealized gains (losses)		(2.86	)		3.62			5.74			(0.16	)		0.83

Total from investment operations		(2.20	)		4.32			6.62			0.90			1.36

Less distributions from net investment income		(0.59	)		(0.68	)		(0.70	)		(0.32	)		(0.61	)

Net asset value, end of year		$31.21			$34.00			$30.36			$24.44			$23.86

Total return^c		(6.23)%			14.22%			27.54%			3.70%			6.13%

Ratios to average net assets^d

Total expenses		0.09%			0.09%			0.09%			0.09%			0.09%

Net investment income		2.24%			2.07%			3.13%			4.12%			2.35%

Supplemental data

Net assets, end of year (000’s)		$49,941			$47,593			$48,570			$34,213			$2,386

Portfolio turnover rate^e		7.89%^f			13.99%^f			12.59%^f			16.25%^f			14.06%
^aThe amount shown for a share outstanding throughout the period may not correlate with the Statement of Operations for the period due to the timing of sales and repurchases of Creation Unit Fund shares in relation to income earned and/or fluctuating fair value of the investments of the Fund. ^bBased on average daily shares outstanding. ^cTotal return is not annualized for periods less than one year. Total return is calculated assuming an initial investment made at the net asset value at the beginning of the period, reinvestment of all dividends and distributions at net asset value during the period, and redemption at net asset value on the last day of the period. ^dRatios are annualized for periods less than one year. ^ePortfolio turnover rate includes portfolio transactions that are executed as a result of the Fund offering and redeeming Creation Units solely for cash (“Cash creations”).
^fPortfolio turnover rate excluding cash creations was as follows:		7.89%			13.99%			12.59%			16.25%			—



franklintempleton.com	The accompanying notes are an integral part of these financial statements. \| Annual Report	293

FRANKLIN TEMPLETON ETF TRUST

Schedule of Investments, March 31, 2023

Franklin FTSE Switzerland ETF



	Industry	Shares		Value

Common Stocks 98.2%
Switzerland 95.6%
ABB Ltd.	Electrical Equipment		49,776	$	1,709,237
Adecco Group AG	Professional Services		6,016		218,303
Alcon, Inc.	Health Care Equipment & Supplies		17,456		1,236,279
Bachem Holding AG, Class B	Life Sciences Tools & Services		1,168		116,857
Baloise Holding AG	Insurance		1,712		266,859
Banque Cantonale Vaudoise	Banks		1,056		99,757
Barry Callebaut AG	Food Products		135		286,536
Belimo Holding AG	Building Products		352		169,922
BKW AG	Electric Utilities		688		108,297
Chocoladefabriken Lindt & Spruengli AG	Food Products		78		922,117
Cie Financiere Richemont SA, Class A	Textiles, Apparel & Luxury Goods		16,304		2,603,857
Clariant AG	Chemicals		8,576		141,846
Credit Suisse Group AG	Capital Markets		136,864		123,238
DKSH Holding AG	Professional Services		1,360		109,643
Emmi AG	Food Products		80		80,390
EMS-Chemie Holding AG	Chemicals		269		222,020
^aFlughafen Zurich AG	Transportation Infrastructure		720		132,012
Geberit AG	Building Products		1,292		720,143
Georg Fischer AG	Machinery		3,106		241,055
Givaudan SA	Chemicals		301		979,556
Helvetia Holding AG	Insurance		1,328		185,197
Julius Baer Group Ltd.	Capital Markets		8,016		546,831
Kuehne & Nagel International AG	Marine Transportation		1,872		557,164
Logitech International SA	Technology Hardware, Storage & Peripherals		5,392		313,409
Lonza Group AG	Life Sciences Tools & Services		2,542		1,523,169
Nestle SA	Food Products		79,088		9,649,333
Novartis AG	Pharmaceuticals		60,000		5,501,177
Partners Group Holding AG	Capital Markets		841		788,757
PSP Swiss Property AG	Real Estate Management & Development		1,712		194,897
Roche Holding AG	Pharmaceuticals		20,672		5,904,831
Roche Holding AG	Pharmaceuticals		864		260,084
Schindler Holding AG, PC	Machinery		1,552		343,341
Schindler Holding AG	Machinery		720		152,110
SGS SA	Professional Services		223		490,890
SIG Group AG	Containers & Packaging		12,496		321,718
Sika AG	Chemicals		5,072		1,418,528
Sonova Holding AG	Health Care Equipment & Supplies		1,920		564,514
Straumann Holding AG	Health Care Equipment & Supplies		4,042		603,280
Swatch Group AG	Textiles, Apparel & Luxury Goods		1,088		373,246
Swatch Group AG	Textiles, Apparel & Luxury Goods		1,648		104,268
Swiss Life Holding AG	Insurance		1,152		710,203
Swiss Prime Site AG	Real Estate Management & Development		2,880		239,750
Swiss Re AG	Insurance		10,944		1,124,169
Swisscom AG	Diversified Telecommunication Services		960		612,853
Tecan Group AG	Life Sciences Tools & Services		480		209,749
Temenos AG	Software		2,288		158,486
UBS Group AG	Capital Markets		90,096		1,902,416
^bVAT Group AG	Machinery		976		350,636
Zurich Insurance Group AG	Insurance		4,512		2,161,789

					47,754,719



294	Annual Report	franklintempleton.com

FRANKLIN TEMPLETON ETF TRUST

SCHEDULE OF INVESTMENTS

Franklin FTSE Switzerland ETF (continued)



	Industry	Shares		Value

Common Stocks (continued)
United States 2.6%
Holcim AG, Class B	Construction Materials		20,112	$	1,296,696

Total Investments (Cost $48,952,282) 98.2%					49,051,415
Other Assets, less Liabilities 1.8%					889,334

Net Assets 100.0%				$	49,940,749

^aNon-income producing.

At March 31, 2023, the Fund had the following futures contracts outstanding. See Note 1(c).

Futures Contracts

Description

Type

Number of
Contracts

Notional
Amount

Expiration
Date

Value/Unrealized
Appreciation
(Depreciation)

Equity Contracts

Swiss Mid Cap Future Index

$842,559

6/16/23

$38,313

*As of year end.

See Note 7 regarding other derivative information.

See Abbreviations on page 355.



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,

	2023			2022			2021			2020			2019

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

Net asset value, beginning of year		$43.67			$41.12			$23.18			$24.72			$26.34

Income from investment operations^a:

Net investment income^b		1.25			0.98			0.74			0.89			0.47

Net realized and unrealized gains (losses)		(6.84	)		2.64			17.99			(1.56	)		(1.85	)

Total from investment operations		(5.59	)		3.62			18.73			(0.67	)		(1.38	)

Less distributions from net investment income		(1.03	)		(1.07	)		(0.79	)		(0.87	)		(0.24	)

Net asset value, end of year		$37.05			$43.67			$41.12			$23.18			$24.72

Total return^c		(12.55)%			8.72%			81.35%			(3.29)%			(5.15)%

Ratios to average net assets^d

Total expenses		0.19%			0.19%			0.19%			0.19%			0.19%

Net investment income		3.52%			2.20%			2.24%			3.39%			1.96%

Supplemental data

Net assets, end of year (000’s)		$137,094			$43,667			$32,897			$13,906			$14,834

Portfolio turnover rate^e		11.88%^f			17.76%^f			10.63%^f			12.57%^f			8.71%
^aThe amount shown for a share outstanding throughout the period may not correlate with the Statement of Operations for the period due to the timing of sales and repurchases of Creation Unit Fund shares in relation to income earned and/or fluctuating fair value of the investments of the Fund. ^bBased on average daily shares outstanding. ^cTotal return is not annualized for periods less than one year. Total return is calculated assuming an initial investment made at the net asset value at the beginning of the period, reinvestment of all dividends and distributions at net asset value during the period, and redemption at net asset value on the last day of the period. ^dRatios are annualized for periods less than one year. ^ePortfolio turnover rate includes portfolio transactions that are executed as a result of the Fund offering and redeeming Creation Units solely for cash (“Cash creations”).
^fPortfolio turnover rate excluding cash creations was as follows:		5.40%			7.86%			10.63%			12.57%			—



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

FRANKLIN TEMPLETON ETF TRUST

Schedule of Investments, March 31, 2023

Franklin FTSE Taiwan ETF



	Industry	Shares		Value

Common Stocks 99.8%
China 1.4%
Airtac International Group, Class A	Machinery		27,750	$	1,080,015
Silergy Corp.	Semiconductors & Semiconductor Equipment		57,290		902,227


					1,982,242

Taiwan 98.1%
Accton Technology Corp.	Communications Equipment		93,710		981,804
Acer, Inc., Class H	Technology Hardware, Storage & Peripherals		489,000		452,101
Advanced Energy Solution Holding Co. Ltd.	Electrical Equipment		4,440		104,702
Advantech Co. Ltd.	Technology Hardware, Storage & Peripherals		74,000		901,683
ASE Technology Holding Co. Ltd., Class A	Semiconductors & Semiconductor Equipment		599,700		2,215,822
Asia Cement Corp.	Construction Materials		434,060		617,285
ASMedia Technology, Inc.	Semiconductors & Semiconductor Equipment		7,040		264,744
ASPEED Technology, Inc.	Semiconductors & Semiconductor Equipment		5,380		465,598
Asustek Computer, Inc.	Technology Hardware, Storage & Peripherals		124,460		1,113,896
AUO Corp., Class H	Electronic Equipment, Instruments & Components		1,258,000		760,233
Capital Securities Corp., Class A	Capital Markets		339,000		133,607
Catcher Technology Co. Ltd.	Technology Hardware, Storage & Peripherals		121,460		757,941
Cathay Financial Holding Co. Ltd., Class A	Insurance		1,628,000		2,235,008
Chailease Holding Co. Ltd., Class A	Financial Services		243,162		1,784,932
Chang Hwa Commercial Bank Ltd., Class A	Banks		1,184,033		674,701
Cheng Shin Rubber Industry Co. Ltd., Class A	Automobile Components		322,700		387,378
Chicony Electronics Co. Ltd.	Technology Hardware, Storage & Peripherals		108,840		340,667
China Airlines Ltd., Class A	Airlines		518,000		331,751
China Development Financial Holding Corp., Class A	Banks		2,778,000		1,145,050
China Motor Corp., Class A	Automobiles		47,020		98,681
China Steel Corp., Class A	Metals & Mining		2,183,000		2,215,443
Chunghwa Telecom Co. Ltd.	Diversified Telecommunication Services		671,680		2,636,202
Compal Electronics, Inc., Class H	Technology Hardware, Storage & Peripherals		740,000		613,679
CTBC Financial Holding Co. Ltd., Class A	Banks		3,219,000		2,310,047
Delta Electronics, Inc., Class A	Electronic Equipment, Instruments & Components		382,090		3,777,292
E Ink Holdings, Inc.	Electronic Equipment, Instruments & Components		155,700		943,481
E.Sun Financial Holding Co. Ltd., Class A	Banks		2,405,000		1,998,407
Eclat Textile Co. Ltd., Class A	Textiles, Apparel & Luxury Goods		35,260		573,239
eMemory Technology, Inc.	Semiconductors & Semiconductor Equipment		12,247		748,154
ENNOSTAR, Inc., Class H	Semiconductors & Semiconductor Equipment		124,340		217,256
Eternal Materials Co. Ltd., Class H	Chemicals		168,985		173,994
Eva Airways Corp., Class H	Airlines		447,000		394,185
Evergreen Marine Corp. Taiwan Ltd.	Marine Transportation		177,600		924,529
Far Eastern International Bank	Banks		413,091		150,597
Far Eastern New Century Corp.	Industrial Conglomerates		677,508		696,478
Far EasTone Telecommunications Co. Ltd.	Wireless Telecommunication Services		283,000		698,961
Feng TAY Enterprise Co. Ltd.	Textiles, Apparel & Luxury Goods		78,100		495,059
First Financial Holding Co. Ltd.	Banks		1,850,000		1,607,111
Formosa Chemicals & Fibre Corp.	Chemicals		603,400		1,369,404
Formosa Petrochemical Corp.	Oil, Gas & Consumable Fuels		243,880		680,838
Formosa Plastics Corp.	Chemicals		657,900		1,983,586
Formosa Sumco Technology Corp.	Semiconductors & Semiconductor Equipment		10,020		54,629
Formosa Taffeta Co. Ltd.	Textiles, Apparel & Luxury Goods		185,000		170,737
Foxconn Technology Co. Ltd.	Technology Hardware, Storage & Peripherals		198,720		364,839
Fubon Financial Holding Co. Ltd.	Insurance		1,302,749		2,417,450
Genius Electronic Optical Co. Ltd.	Electronic Equipment, Instruments & Components		15,170		192,069
Giant Manufacturing Co. Ltd.	Leisure Products		53,035		306,566
Globalwafers Co. Ltd.	Semiconductors & Semiconductor Equipment		37,370		635,772
Hiwin Technologies Corp.	Machinery		50,189		412,919
Hon Hai Precision Industry Co. Ltd.	Electronic Equipment, Instruments & Components		2,106,600		7,195,546
Hotai Motor Co. Ltd.	Specialty Retail		55,550		1,171,298



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SCHEDULE OF INVESTMENTS

Fanklin FTSE Taiwan ETF (continued)



	Industry	Shares		Value

Common Stocks (continued)
Taiwan (continued)
^aHTC Corp.	Technology Hardware, Storage & Peripherals		129,500	$	266,252
Hua Nan Financial Holdings Co. Ltd.	Banks		1,787,029		1,311,769
Innolux Corp.	Electronic Equipment, Instruments & Components		1,451,155		691,083
Inventec Corp.	Technology Hardware, Storage & Peripherals		518,000		543,562
Largan Precision Co. Ltd.	Electronic Equipment, Instruments & Components		18,130		1,295,106
Lite-On Technology Corp.	Technology Hardware, Storage & Peripherals		374,200		900,858
MediaTek, Inc.	Semiconductors & Semiconductor Equipment		262,700		6,790,209
Mega Financial Holding Co. Ltd.	Banks		1,962,150		2,126,643
Micro-Star International Co. Ltd.	Technology Hardware, Storage & Peripherals		119,700		566,115
momo.com, Inc.	Broadline Retail		9,998		296,517
Nan Ya Plastics Corp.	Chemicals		999,000		2,542,820
Nan Ya Printed Circuit Board Corp.	Electronic Equipment, Instruments & Components		37,000		343,903
Nanya Technology Corp.	Semiconductors & Semiconductor Equipment		143,670		313,788
Nien Made Enterprise Co. Ltd.	Household Durables		24,420		262,266
Novatek Microelectronics Corp.	Semiconductors & Semiconductor Equipment		101,010		1,431,507
^aOneness Biotech Co. Ltd.	Pharmaceuticals		53,400		468,275
Pegatron Corp.	Technology Hardware, Storage & Peripherals		356,000		814,950
Pou Chen Corp.	Textiles, Apparel & Luxury Goods		481,000		492,888
Powerchip Semiconductor Manufacturing Corp.	Semiconductors & Semiconductor Equipment		518,000		563,127
Powertech Technology, Inc.	Semiconductors & Semiconductor Equipment		119,100		355,960
President Chain Store Corp.	Consumer Staples Distribution & Retail		99,580		881,413
Quanta Computer, Inc.	Technology Hardware, Storage & Peripherals		471,380		1,379,422
Realtek Semiconductor Corp.	Semiconductors & Semiconductor Equipment		83,596		1,063,912
Ruentex Development Co. Ltd.	Real Estate Management & Development		414,900		481,705
Shanghai Commercial & Savings Bank Ltd.	Banks		666,000		1,026,971
Shin Kong Financial Holding Co. Ltd.	Insurance		2,368,000		654,850
Sino-American Silicon Products, Inc.	Semiconductors & Semiconductor Equipment		92,880		475,878
SinoPac Financial Holdings Co. Ltd.	Banks		1,997,969		1,089,294
Synnex Technology International Corp.	Electronic Equipment, Instruments & Components		237,500		478,159
Taishin Financial Holding Co. Ltd.	Banks		2,001,872		1,091,422
Taiwan Business Bank	Banks		931,631		411,542
Taiwan Cement Corp.	Construction Materials		1,111,418		1,328,701
Taiwan Cooperative Financial Holding Co. Ltd.	Banks		1,776,000		1,522,411
Taiwan Fertilizer Co. Ltd.	Chemicals		133,200		244,986
Taiwan Glass Industry Corp.	Building Products		296,000		199,780
Taiwan High Speed Rail Corp.	Transportation Infrastructure		370,000		367,600
Taiwan Mobile Co. Ltd.	Wireless Telecommunication Services		304,140		1,008,889
Taiwan Secom Co. Ltd.	Commercial Services & Supplies		50,360		174,496
Taiwan Semiconductor Manufacturing Co. Ltd.	Semiconductors & Semiconductor Equipment		1,591,400		27,858,320
Teco Electric & Machinery Co. Ltd.	Electrical Equipment		346,000		482,962
Transcend Information, Inc.	Technology Hardware, Storage & Peripherals		50,360		120,907
U-Ming Marine Transport Corp.	Marine Transportation		74,000		135,617
Unimicron Technology Corp.	Electronic Equipment, Instruments & Components		222,000		1,075,458
Uni-President Enterprises Corp.	Food Products		851,000		2,009,587
United Microelectronics Corp.	Semiconductors & Semiconductor Equipment		2,072,000		3,599,928
Vanguard International Semiconductor Corp.	Semiconductors & Semiconductor Equipment		158,400		504,112
Voltronic Power Technology Corp.	Electrical Equipment		11,470		651,715
Walsin Lihwa Corp.	Electrical Equipment		606,289		970,739
Walsin Technology Corp.	Electronic Equipment, Instruments & Components		87,360		277,452
Wan Hai Lines Ltd.	Marine Transportation		160,130		360,256
Win Semiconductors Corp.	Semiconductors & Semiconductor Equipment		72,150		432,462
Winbond Electronics Corp.	Semiconductors & Semiconductor Equipment		522,000		454,323
Wistron Corp.	Technology Hardware, Storage & Peripherals		518,000		711,990
Wiwynn Corp.	Technology Hardware, Storage & Peripherals		15,580		575,663
Yageo Corp.	Electronic Equipment, Instruments & Components		68,729		1,194,109
Yang Ming Marine Transport Corp.	Marine Transportation		308,326		651,133
Yuanta Financial Holding Co. Ltd.	Capital Markets		2,110,406		1,549,144



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SCHEDULE OF INVESTMENTS

Franklin FTSE Taiwan ETF (continued)



	Industry	Shares		Value

Common Stocks (continued)
Taiwan (continued)
Yulon Motor Co. Ltd.	Automobiles		95,979	$	237,051
Yulon Nissan Motor Co. Ltd.	Automobiles		4,070		26,267
Zhen Ding Technology Holding Ltd.	Electronic Equipment, Instruments & Components		112,160		419,944


					134,455,519

United States 0.3%
Parade Technologies Ltd.	Semiconductors & Semiconductor Equipment		12,580		433,828


Total Investments (Cost $125,458,129) 99.8%					136,871,589
Other Assets, less Liabilities 0.2%					222,238


Net Assets 100.0%				$	137,093,827

^aNon-income producing.



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FRANKLIN TEMPLETON ETF TRUST

Financial Highlights

Franklin FTSE United Kingdom ETF



	Year Ended March 31,

	2023			2022			2021			2020			2019

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

Net asset value, beginning of year	$	25.46		$	23.78		$	17.92		$	24.23		$	25.23


Income from investment operations^a:

Net investment income^b		0.94			0.95			0.84			1.08			1.05

Net realized and unrealized gains (losses)		(1.22	)		1.47			5.62			(6.30	)		(1.21	)


Total from investment operations		(0.28	)		2.42			6.46			(5.22	)		(0.16	)


Less distributions from net investment income		(0.97	)		(0.74	)		(0.60	)		(1.09	)		(0.84	)


Net asset value, end of year	$	24.21		$	25.46		$	23.78		$	17.92		$	24.23


Total return^c		(0.71)%			10.27%			36.19%			(22.42)%			(0.51)%

Ratios to average net assets^d

Expenses before waiver and payments by affiliates		0.09%			0.09%			0.09%			0.09%			0.09%

Expenses net of waiver and payments by affiliates		0.09%			0.09%			0.09%			0.09%			0.09%

Net investment income		4.10%			3.77%			3.98%			4.84%			4.46%

Supplemental data

Net assets, end of year (000’s)	$	568,961		$	613,573		$	205,673		$	89,624		$	29,076

Portfolio turnover rate^e		5.61%	^f		5.76%	^f		7.26%	^f		4.41%	^f		10.10%

^bBased on average daily shares outstanding.

^dRatios are annualized for periods less than one year.

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


^f Portfolio turnover rate excluding cash creations was as follows:			5.60%				5.76%				�� 7.26%				4.41%				—



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

FRANKLIN TEMPLETON ETF TRUST

Schedule of Investments, March 31, 2023

Franklin FTSE United Kingdom ETF



		Industry	Shares		Value

	Common Stocks 99.1%
	Australia 5.9%
	Glencore PLC	Metals & Mining		2,891,440	$	16,610,013
	Rio Tinto PLC	Metals & Mining		249,100		16,872,224


						33,482,237

	Bermuda 0.2%
	Hiscox Ltd.	Insurance		77,080		1,056,939


	Chile 0.3%
	Antofagasta PLC	Metals & Mining		79,430		1,552,719


	Ireland 4.6%
	CRH PLC	Construction Materials		171,080		8,633,673
	DCC PLC	Industrial Conglomerates		22,560		1,316,054
	Experian PLC	Professional Services		210,560		6,925,228
a	Flutter Entertainment PLC	Hotels, Restaurants & Leisure		40,420		7,311,681
	Smurfit Kappa Group PLC	Containers & Packaging		59,690		2,159,496


						26,346,132

	Isle Of Man 0.4%
	Entain PLC	Hotels, Restaurants & Leisure		133,950		2,081,047


	Mexico 0.1%
	Fresnillo PLC	Metals & Mining		42,300		390,172


	Netherlands 8.0%
	Shell PLC	Oil, Gas & Consumable Fuels		1,594,710		45,518,524


	Nigeria 0.0%†
b	Airtel Africa PLC	Wireless Telecommunication Services		249,570		328,639


	Russia 0.0%†
a	Evraz PLC	Metals & Mining		128,818		—


	Switzerland 0.2%
	Coca-Cola HBC AG	Beverages		45,120		1,234,602


	United Kingdom 79.4%
	3i Group PLC	Capital Markets		218,080		4,543,519
	abrdn PLC	Capital Markets		452,610		1,138,846
	Admiral Group PLC	Insurance		65,330		1,646,241
	Anglo American PLC	Metals & Mining		276,360		9,150,869
	Ashtead Group PLC	Trading Companies & Distributors		100,110		6,137,063
	Associated British Foods PLC	Food Products		79,430		1,905,298
	AstraZeneca PLC	Pharmaceuticals		338,400		46,996,339
b	Auto Trader Group PLC	Interactive Media & Services		206,330		1,572,029
	Aviva PLC	Insurance		638,730		3,192,201
	B&M European Value Retail SA	Broadline Retail		212,910		1,269,141
	BAE Systems PLC	Aerospace & Defense		699,830		8,502,485
	Barclays PLC	Banks		3,619,940		6,525,826
	Barratt Developments PLC	Household Durables		227,480		1,312,114
	Beazley PLC	Insurance		151,810		1,121,540
	Berkeley Group Holdings PLC	Household Durables		24,440		1,268,285
	BP PLC	Oil, Gas & Consumable Fuels		4,053,280		25,599,653
	British American Tobacco PLC	Tobacco		513,240		18,025,689
	British Land Co. PLC	Diversified REITs		211,970		1,016,386
	BT Group PLC	Diversified Telecommunication Services		1,589,540		2,865,534
	Bunzl PLC	Trading Companies & Distributors		77,080		2,913,491
	Burberry Group PLC	Textiles, Apparel & Luxury Goods		86,010		2,750,135
	Centrica PLC	Multi-Utilities		1,331,980		1,746,566
	Compass Group PLC	Hotels, Restaurants & Leisure		401,850		10,101,315
b	ConvaTec Group PLC	Health Care Equipment & Supplies		373,180		1,054,803



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SCHEDULE OF INVESTMENTS

Franklin FTSE United Kingdom ETF (continued)



		Industry	Shares		Value

	Common Stocks (continued)
	United Kingdom (continued)
	Croda International PLC	Chemicals		31,960	$	2,567,811
	Dechra Pharmaceuticals PLC	Pharmaceuticals		25,380		831,599
	Derwent London PLC	Diversified REITs		25,380		739,966
	Diageo PLC	Beverages		508,540		22,724,265
	Direct Line Insurance Group PLC	Insurance		304,090		516,989
	DS Smith PLC	Containers & Packaging		293,280		1,140,459
	Endeavour Mining PLC	Metals & Mining		41,360		1,021,769
	Ferguson PLC	Trading Companies & Distributors		47,470		6,250,941
	GSK PLC	Pharmaceuticals		915,090		16,168,607
a	Haleon PLC	Personal Products		1,143,040		4,550,864
	Halma PLC	Electronic Equipment, Instruments & Components		86,950		2,396,383
	Hargreaves Lansdown PLC	Capital Markets		86,480		854,784
	Hikma Pharmaceuticals PLC	Pharmaceuticals		37,130		768,982
	Howden Joinery Group PLC	Trading Companies & Distributors		122,200		1,054,637
	HSBC Holdings PLC	Banks		4,611,170		31,341,043
	IMI PLC	Machinery		58,750		1,114,320
	Imperial Brands PLC	Tobacco		211,970		4,885,364
	Informa PLC	Media		322,890		2,765,118
	InterContinental Hotels Group PLC	Hotels, Restaurants & Leisure		40,420		2,654,795
	Intermediate Capital Group PLC	Capital Markets		63,450		954,770
a	International Consolidated Airlines Group SA	Airlines		252,390		471,160
	Intertek Group PLC	Professional Services		37,130		1,860,708
	ITV PLC	Media		857,750		878,148
	J Sainsbury PLC	Consumer Staples Distribution & Retail		392,920		1,353,997
	JD Sports Fashion PLC	Specialty Retail		567,290		1,246,784
	Johnson Matthey PLC	Chemicals		41,360		1,014,353
	Kingfisher PLC	Specialty Retail		445,090		1,437,466
	Land Securities Group PLC	Diversified REITs		169,200		1,299,596
	Legal & General Group PLC	Insurance		1,357,830		4,010,866
	Lloyds Banking Group PLC	Banks		15,373,230		9,062,174
	London Stock Exchange Group PLC	Capital Markets		89,300		8,687,451
	M&G PLC	Financial Services		495,850		1,213,926
	Melrose Industries PLC	Industrial Conglomerates		916,500		1,886,789
	Mondi PLC	Paper & Forest Products		110,920		1,758,225
	National Grid PLC	Multi-Utilities		834,720		11,316,862
	NatWest Group PLC	Banks		1,239,390		4,039,522
	Next PLC	Broadline Retail		28,200		2,291,518
a	NMC Health PLC	Health Care Providers & Services		3,705		—
a	Ocado Group PLC	Consumer Staples Distribution & Retail		138,650		917,171
	Pearson PLC	Media		164,970		1,722,383
	Persimmon PLC	Household Durables		72,380		1,124,048
	Phoenix Group Holdings PLC	Insurance		167,790		1,133,583
	Prudential PLC	Insurance		629,800		8,581,453
	Reckitt Benckiser Group PLC	Household Products		164,030		12,489,342
	RELX PLC	Professional Services		439,920		14,240,326
	Renishaw PLC	Electronic Equipment, Instruments & Components		7,990		404,456
	Rentokil Initial PLC	Commercial Services & Supplies		573,400		4,194,328
	Rightmove PLC	Interactive Media & Services		188,940		1,315,252
a	Rolls-Royce Holdings PLC	Aerospace & Defense		1,917,600		3,533,289
	RS GROUP PLC	Trading Companies & Distributors		107,630		1,216,343
	Sage Group PLC	Software		233,120		2,233,870
	Schroders PLC	Capital Markets		198,340		1,128,093
	Segro PLC	Diversified REITs		274,950		2,609,548
	Severn Trent PLC	Water Utilities		57,340		2,041,155
	Smith & Nephew PLC	Health Care Equipment & Supplies		200,220		2,777,646
	Smiths Group PLC	Industrial Conglomerates		81,310		1,725,696
	Spirax-Sarco Engineering PLC	Machinery		16,920		2,480,153



302	Annual Report	franklintempleton.com

FRANKLIN TEMPLETON ETF TRUST

SCHEDULE OF INVESTMENTS

Franklin FTSE United Kingdom ETF (continued)



		Industry	Shares		Value

	Common Stocks (continued)
	United Kingdom (continued)
	SSE PLC	Electric Utilities		248,160	$	5,532,279
	St. James’s Place PLC	Capital Markets		122,670		1,836,788
	Standard Chartered PLC	Banks		543,320		4,126,122
	Tate & Lyle PLC	Food Products		91,650		889,114
	Taylor Wimpey PLC	Household Durables		806,520		1,186,195
	Tesco PLC	Consumer Staples Distribution & Retail		1,658,160		5,447,466
	Unilever PLC	Personal Products		575,280		29,803,679
	UNITE Group PLC	Diversified REITs		73,320		869,849
	United Utilities Group PLC	Water Utilities		156,040		2,045,118
	Vodafone Group PLC	Wireless Telecommunication Services		5,403,590		5,966,373
	Weir Group PLC	Machinery		59,220		1,361,208
	Whitbread PLC	Hotels, Restaurants & Leisure		46,060		1,701,123
a	Wise PLC, Class A	IT Services		161,210		1,083,946
	WPP PLC	Media		238,760		2,829,929


						452,035,703

	Total Investments before Short- Term Investments (Cost $590,608,335)					564,026,714


	Short-Term Investments 0.0%
	Money Market Funds 0.0%
	United States 0.0%
c,d	Institutional Fiduciary Trust - Money Market Portfolio, 4.47%	Money Market Funds		10		10


	Total Short-Term Investments (Cost $10)					10

	Total Investments (Cost $590,608,345) 99.1%					564,026,724
	Other Assets, less Liabilities 0.9%					4,934,191


	Net Assets 100.0%				$	568,960,915

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

^aNon-income producing.

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

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

At March 31, 2023, the Fund had the following futures contracts outstanding. See Note 1(c).

Futures Contracts

Description

Type

Number of

Contracts

Notional

Amount*

Expiration

Date

Value/Unrealized

Appreciation

(Depreciation)

Index Contracts

FTSE 100 Index

Long

5,005,978

6/16/23

$27,481

*As of year end.

See Note 7 regarding other derivative information.

See Abbreviations on page 355.



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, 2023



	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		$32,145,017			$27,816,869			$ 268,034,332			$298,943,761
Value – Unaffiliated issuers		$30,033,178			$28,942,982			$ 266,560,670			$279,121,167
Cash		—			60			22,230			67,820
Foreign currency, at value (cost $47,250, $191,523, $793,582 and $612,335, respectively)		47,486			191,862			821,952			614,983
Receivables:
Dividends		86,933			256,240			1,170,621			625,313
Variation margin on futures contracts		—			8,037			—			6,231
Deposits with brokers for:
Futures contracts		49			40,024			427,274			50,360


Total assets		30,167,646			29,439,205			269,002,747			280,485,874


Liabilities:
Payables:
Investment securities purchased		6,233			—			—			537,862
Management fees		4,716			2,269			47,523			20,964
Variation margin on futures contracts		—			—			41,448			—
Funds advanced by custodian		81,349			—			—			—
Deferred tax		95,019			—			—			—


Total liabilities		187,317			2,269			88,971			558,826


Net assets, at value		$29,980,329			$29,436,936			$ 268,913,776			$279,927,048


Net assets consist of:
Paid-in capital		$36,318,823			$29,526,662			$ 422,644,770			$301,211,266

Total distributable earnings (loss)		(6,338,494	)		(89,726	)		(153,730,994	)		(21,284,218	)


Net assets, at value		$29,980,329			$29,436,936			$ 268,913,776			$279,927,048


Shares outstanding		1,400,000			1,100,000			16,000,000			9,100,000


Net asset value per share		$ 21.41			$ 26.76			$ 16.81			$ 30.76



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, 2023



	Franklin FTSE China ETF			Franklin FTSE Europe ETF			Franklin FTSE Europe Hedged ETF			Franklin FTSE France ETF


Assets:
Investments in securities:
Cost – Unaffiliated issuers		$140,465,875			$113,790,301			$14,095,289			$5,871,994
Cost – Non-controlled affiliates (Note 3c)		—			—			4,136			—
Value – Unaffiliated issuers		$114,257,538			$110,175,895			$14,018,999			$6,047,577
Value – Non-controlled affiliates (Note 3c)		—			—			4,136			—
Cash		—			37,235			—			—
Foreign currency, at value (cost $3,687, $202,826, $27,374 and $43,026, respectively)		3,687			203,722			27,481			43,711
Receivables:
Dividends and interest		5,406			685,581			67,832			4,940
European Union tax reclaims receivable (Note 1e)		—			497,518			38,729			84,224
Investment securities sold		—			—			301,126			—
Variation margin on futures contracts		—			598			—			636
Deposits with brokers for:
Futures contracts		4			90,197			11,471			5,975
Unrealized appreciation on OTC forward exchange contracts		—			—			2,354			—


Total assets		114,266,635			111,690,746			14,472,128			6,187,063


Liabilities:
Payables:
Investment securities purchased		—			—			21			31,582
European Union tax reclaim contingent fees payable (Note 1e)		—			124,379			9,682			21,056
Management fees		17,826			8,219			1,057			450
Variation margin on futures contracts		—			—			3,223			—
Funds advanced by custodian		14,453			—			—			194
Unrealized depreciation on OTC forward exchange contracts		—			—			295,253			—

Total liabilities		32,279			132,598			309,236			53,282


Net assets, at value		$114,234,356			$111,558,148			$14,162,892			$6,133,781


Net assets consist of:
Paid-in capital		$161,465,654			$118,847,959			$17,715,519			$6,219,484
Total distributable earnings (loss)		(47,231,298	)		(7,289,811	)		(3,552,627	)		(85,703	)


Net assets, at value		$114,234,356			$111,558,148			$14,162,892			$6,133,781


Shares outstanding		5,800,000			4,200,000			600,000			200,000

Net asset value per share		$ 19.70			$ 26.56			$ 23.60			$ 30.67



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, 2023



	Franklin FTSE Germany ETF			Franklin FTSE Hong Kong ETF			Franklin FTSE India ETF			Franklin FTSE Italy ETF


Assets:

Investments in securities:
Cost – Unaffiliated issuers	$	19,214,695		$	18,872,342		$	98,043,841		$	4,459,161
Value – Unaffiliated issuers	$	17,683,414		$	17,034,504		$	99,072,406		$	5,037,427
Cash		—			893			—			251
Foreign currency, at value (cost $760, $4,657, $299,561 and $1,492, respectively)		766			4,657			300,634			1,502
Receivables:
Dividends		468			27,141			11,662			—
Variation margin on futures contracts		—			247			—			—
Deposits with brokers for:
Futures contracts		—			2,648			13			—

Total assets		17,684,648			17,070,090			99,384,715			5,039,180

Liabilities:
Due to Custodian		5			—			—			—
Payables:
Management fees		1,277			1,217			15,815			366
Funds advanced by custodian		153			—			279,516			—
Deferred tax		—			—			111,942			—

Total liabilities		1,435			1,217			407,273			366

Net assets, at value	$	17,683,213		$	17,068,873		$	98,977,442		$	5,038,814

Net assets consist of:
Paid-in capital	$	20,187,918		$	20,392,708		$	101,969,733		$	4,977,355
Total distributable earnings (loss)		(2,504,705	)		(3,323,835	)		(2,992,291	)		61,459

Net assets, at value	$	17,683,213		$	17,068,873		$	98,977,442		$	5,038,814

Shares outstanding		800,000			800,000			3,600,000			200,000

Net asset value per share	$	22.10		$	21.34		$	27.49		$	25.19



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, 2023



	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	$	1,089,076,853			$13,750,298			$61,702,938	$	21,033,038
Cost – Non-controlled affiliates (Note 3c)		4,417,293			721			—		—
Value – Unaffiliated issuers⁺	$	988,568,241			$13,036,206			$67,137,485	$	24,885,047
Value – Non-controlled affiliates (Note 3c)		4,417,293			721			—		—
Cash		32			—			—		—
Foreign currency, at value (cost $928,337, $59,181, $50,224 and $5,990, respectively)		920,343			58,717			51,729		6,103
Receivables:
Dividends		10,450,363			141,239			181,240		15,014
Investment securities sold		196,649			285,879			—		—
Variation margin on futures contracts		201,220			2,700			—		—
Deposits with brokers for:
Futures contracts		480,577			7,393			37,522		35


Total assets		1,005,234,718			13,532,855			67,407,976		24,906,199


Liabilities:
Payables:
Investment securities purchased		1,519			121			—		—
Management fees		74,143			988			10,606		3,882
Variation margin on futures contracts		—			—			3,962		—
Funds advanced by custodian		—			—			21,176		12,469
Payable upon return of securities loaned		4,355,834			—			—		—
Unrealized depreciation on OTC forward exchange contracts		—			247,252			—		—


Total liabilities		4,431,496			248,361			35,744		16,351


Net assets, at value	$	1,000,803,222			$13,284,494			$67,372,232	$	24,889,848


Net assets consist of:
Paid-in capital	$	1,111,304,190			$20,188,740			$63,559,300	$	22,021,779
Total distributable earnings (loss)		(110,500,968	)		(6,904,246	)		3,812,932		2,868,069


Net assets, at value	$	1,000,803,222			$13,284,494			$67,372,232	$	24,889,848


Shares outstanding		39,000,000			500,000			3,300,000		850,000

Net asset value per share	$	25.66			$ 26.57			$ 20.42	$	29.28

⁺Includes securities loaned		4,146,755			—			—		—



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, 2023



	Franklin FTSE Saudi Arabia ETF		Franklin FTSE South Africa ETF			Franklin FTSE South Korea ETF


Assets:

Investments in securities:
Cost – Unaffiliated issuers		$20,984,820		$2,702,285			$292,428,896
Value – Unaffiliated issuers		$21,730,478		$2,242,239			$290,711,940
Foreign currency, at value (cost $56,228, $5,118 and $75,909, respectively)		56,252		5,154			75,945
Receivables:
Dividends		149,721		8,936			2,161,241
Investment securities sold		—		—			449,585
Variation margin on futures contracts		—		—			55,556
Deposits with brokers for:
Futures contracts		—		—			172,070


Total assets		21,936,451		2,256,329			293,626,337


Liabilities:
Payables:
Investment securities purchased		—		—			507,088
Management fees		7,002		428			21,733
Funds advanced by custodian		55,817		12,274			48,723


Total liabilities		62,819		12,702			577,544


Net assets, at value		$21,873,632		$2,243,627			$293,048,793


Net assets consist of:
Paid-in capital		$21,045,215		$3,099,543			$307,935,864
Total distributable earnings (loss)		828,417		(855,916	)		(14,887,071	)


Net assets, at value		$21,873,632		$2,243,627			$293,048,793


Shares outstanding		650,000		100,000			13,900,000

Net asset value per share		$ 33.65		$ 22.44			$ 21.08



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, 2023



	Franklin FTSE Switzerland ETF			Franklin FTSE Taiwan ETF		Franklin FTSE United Kingdom ETF


Assets:
Investments in securities:
Cost – Unaffiliated issuers		$48,952,282			$125,458,129		$590,608,325
Cost – Non-controlled affiliates (Note 3c)		—			—		10
Value – Unaffiliated issuers		$49,051,415			$136,871,589		$564,026,704
Value – Non-controlled affiliates (Note 3c)		—			—		10
Cash		—			954		66,638
Foreign currency, at value (cost $17,394, $78,095 and $911,204, respectively)		17,446			78,102		910,804
Receivables:
Dividends		854,880			159,771		3,737,339
Variation margin on futures contracts		5,205			—		9,870
Deposits with brokers for:
Futures contracts		48,710			13		283,163


Total assets		49,977,656			137,110,429		569,034,528


Liabilities:
Payables:
Investment securities purchased		—			—		31,950
Management fees		3,656			16,602		41,663
Funds advanced by custodian		33,251			—		—


Total liabilities		36,907			16,602		73,613


Net assets, at value		$49,940,749			$137,093,827		$568,960,915

Net assets consist of:
Paid-in capital		$50,648,740			$128,392,163		$608,290,313
Total distributable earnings (loss)		(707,991	)		8,701,664		(39,329,398	)


Net assets, at value		$49,940,749			$137,093,827		$568,960,915


Shares outstanding		1,600,000			3,700,000		23,500,000

Net asset value per share		$ 31.21			$ 37.05		$ 24.21



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, 2023



	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		$ 853,108			$ 1,714,905			$ 36,247,124			$ 6,964,614
Non-cash dividends		76,504			—			—			—
Interest:
Unaffiliated issuers		230			—			—			—
Interest from securities loaned (Note 1d):
Unaffiliated issuers (net of fees and rebates)		12			—			—			—
Non-Controlled affiliates (Note 3c)		10			—			—			—


Total investment income		929,864			1,714,905			36,247,124			6,964,614


Expenses:
Management fees (Note 3a)		61,706			25,597			619,096			202,904


Total expenses		61,706			25,597			619,096			202,904

Expenses waived/paid by affiliates (Note 3c)		(143	)		—			—			—


Net expenses		61,563			25,597			619,096			202,904


Net investment income		868,301			1,689,308			35,628,028			6,761,710


Realized and unrealized gains (losses):
Net realized gain (loss) from:
Investments:
Unaffiliated issuers		(2,269,307	)		(591,067	)		(91,682,458	)		(2,938,738	)
In-kind redemptions		169,438			382,610			—			6,382,227
Foreign currency transactions		(17,679	)		(33,976	)		(1,122,565	)		(71,721	)
Futures contracts		(41,334	)		4,705			(2,139,014	)		(32,397	)

Net realized gain (loss)		(2,158,882	)		(237,728	)		(94,944,037	)		3,339,371

Net change in unrealized appreciation (depreciation) on:
Investments:
Unaffiliated issuers		(2,721,461	)		(4,246,961	)		(44,926,968	)		(27,305,464	)
Translation of other assets and liabilities denominated in foreign currencies		404			(515	)		(9,444	)		5,184
Futures contracts		—			865			(313,611	)		13,181
Change in deferred taxes on unrealized appreciation		82,986			—			—			—


Net change in unrealized appreciation (depreciation)		(2,638,071	)		(4,246,611	)		(45,250,023	)		(27,287,099	)


Net realized and unrealized gain (loss)		(4,796,953	)		(4,484,339	)		(140,194,060	)		(23,947,728	)


Net increase (decrease) in net assets resulting from operations		$(3,928,652	)		$(2,795,031	)		$(104,566,032	)		$(17,186,018	)



^aForeign taxes withheld on dividends		$116,622			$11,838			$1,369,781			$1,231,578



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, 2023



	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		$ 3,169,280			$ 3,413,567			$ 567,428			$ 227,982
European Union tax reclaims (Note 1e)		—			497,518			38,729			84,224
Interest:
Unaffiliated issuers		2,413			—			—			—
Interest from securities loaned (Note 1d):
Non-Controlled affiliates (Note 3c)		1,001			—			—			—


Total investment income		3,172,694			3,911,085			606,157			312,206


Expenses:
Management fees (Note 3a)		200,306			74,288			15,218			6,610
Contingent fees for European Union tax reclaims (Note 1e)		—			124,379			9,682			21,056
Other		—			305			25			1


Total expenses		200,306			198,972			24,925			27,667
Expenses waived/paid by affiliates (Note 3c)		(114	)		—			(85	)		—


Net expenses		200,192			198,972			24,840			27,667


Net investment income		2,972,502			3,712,113			581,317			284,539


Realized and unrealized gains (losses):
Net realized gain (loss) from:
Investments:
Unaffiliated issuers		(8,197,395	)		(2,028,827	)		(1,927,497	)		(200,236	)
In-kind redemptions		—			6,498,626			308,341			(75,711	)
Foreign currency transactions		(10,174	)		(26,976	)		(6,270	)		(997	)
Forward exchange contracts		—			—			1,844,814			—
Futures contracts		(282,944	)		35,645			800			(3,299	)


Net realized gain (loss)		(8,490,513	)		4,478,468			220,188			(280,243	)


Net change in unrealized appreciation (depreciation) on:
Investments:
Unaffiliated issuers		(281,035	)		(20,809,475	)		(492,570	)		(133,773	)
Translation of other assets and liabilities denominated in foreign currencies		117			6,754			256			1,510
Futures contracts		—			(40,919	)		2,816			2,470
Forward exchange contracts		—			—			(515,430	)		—


Net change in unrealized appreciation (depreciation)		(280,918	)		(20,843,640	)		(1,004,928	)		(129,793	)


Net realized and unrealized gain (loss)		(8,771,431	)		(16,365,172	)		(784,740	)		(410,036	)


Net increase (decrease) in net assets resulting from operations		$(5,798,929	)		$(12,653,059	)		$ (203,423	)		$(125,497	)



^aForeign taxes withheld on dividends		$199,805			$428,263			$72,213			$39,278



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, 2023



	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		$ 456,585			$ 530,227			$ 715,520			$136,695
Interest:
Unaffiliated issuers		—			—			—			37


Total investment income		456,585			530,227			715,520			136,732

Expenses:
Management fees (Note 3a)		12,821			12,935			116,142			3,036
Other		22			—			—			—


Total expenses		12,843			12,935			116,142			3,036


Net investment income		443,742			517,292			599,378			133,696


Realized and unrealized gains (losses):
Net realized gain (loss) from:
Investments:
Unaffiliated issuers		(539,191	)		(797,621	)		(1,460,849	)		(96,290	)
In-kind redemptions		821,012			210,305			—			—
Foreign currency transactions		(43	)		(107	)		(153,763	)		(745	)
Futures contracts		(10,835	)		(2,161	)		4,985			—


Net realized gain (loss)		270,943			(589,584	)		(1,609,627	)		(97,035	)


Net change in unrealized appreciation (depreciation) on:
Investments:
Unaffiliated issuers		248,165			(625,796	)		(7,898,915	)		215,951
Translation of other assets and liabilities denominated in foreign currencies		(118	)		35			1,138			34
Futures contracts		—			477			(1,364	)		—
Change in deferred taxes on unrealized appreciation		—			—			850,370			—


Net change in unrealized appreciation (depreciation)		248,047			(625,284	)		(7,048,771	)		215,985


Net realized and unrealized gain (loss)		518,990			(1,214,868	)		(8,658,398	)		118,950


Net increase (decrease) in net assets resulting from operations		$ 962,732			$ (697,576	)		$(8,059,020	)		$252,646



^aForeign taxes withheld on dividends		$71,663			$443			$219,492			$23,212



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, 2023



	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		$21,871,300			$ 476,413			$ 4,057,749			$ 421,658
Non-cash dividends		—			—			—			64,977
Interest from securities loaned (Note 1d):
Non-Controlled affiliates (Note 3c)		10,989			—			—			—


Total investment income		21,882,289			476,413			4,057,749			486,635

Expenses:
Management fees (Note 3a)		731,006			20,638			93,144			24,713
Other		323			10			—			—

Total expenses		731,329			20,648			93,144			24,713

Expenses waived/paid by affiliates (Note 3c)		(1,696	)		(523	)		—			—

Net expenses		729,633			20,125			93,144			24,713


Net investment income		21,152,656			456,288			3,964,605			461,922


Realized and unrealized gains (losses):
Net realized gain (loss) from:
Investments:
Unaffiliated issuers		(10,941,946	)		(3,889,020	)		(1,454,275	)		(225,846	)
In-kind redemptions		6,334,028			1,515,186			—			462,021
Foreign currency transactions		(477,798	)		(20,515	)		(117,101	)		(327	)
Forward exchange contracts		—			2,715,905			—			—
Futures contracts		354,956			4,773			(99,250	)		(1,730	)


Net realized gain (loss)		(4,730,760	)		326,329			(1,670,626	)		234,118


Net change in unrealized appreciation (depreciation) on:
Investments:
Unaffiliated issuers		(55,828,260	)		1,551,360			4,569,870			1,254,910
Translation of other assets and liabilities denominated in foreign currencies		(54,841	)		(1,653	)		6,467			107
Futures contracts		14,541			832			(15,889	)		—
Forward exchange contracts		—			(797,600	)		—			—


Net change in unrealized appreciation (depreciation)		(55,868,560	)		752,939			4,560,448			1,255,017


Net realized and unrealized gain (loss)		(60,599,320	)		1,079,268			2,889,822			1,489,135


Net increase (decrease) in net assets resulting from operations		$(39,446,664	)		$ 1,535,556			$ 6,854,427			$1,951,057



^aForeign taxes withheld on dividends		$2,426,823			$52,376			$242,662			$33,514



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, 2023



	Franklin FTSE Saudi Arabia ETF			Franklin FTSE South Africa ETF			Franklin FTSE South Korea ETF			Franklin FTSE Switzerland ETF


Investment income:
Dividends: (net of foreign taxes)^a
Unaffiliated issuers		$ 282,081			$ 144,621			$ 2,548,524			$ 1,175,893
Non-cash dividends		—			24,173			—			—
Interest:
Unaffiliated issuers		—			—			8,463			—


Total investment income		282,081			168,794			2,556,987			1,175,893


Expenses:
Management fees (Note 3a)		25,252			7,608			93,962			45,437
Other		—			—			—			1,349

Total expenses		25,252			7,608			93,962			46,786
Expenses waived/paid by affiliates (Note 3c)		—			—			(6	)		—


Net expenses		25,252			7,608			93,956			46,786


Net investment income		256,829			161,186			2,463,031			1,129,107


Realized and unrealized gains (losses):
Net realized gain (loss) from:
Investments:
Unaffiliated issuers		(84,402	)		(135,018	)		(3,827,692	)		(799,546	)
In-kind redemptions		—			182,042			—			926,985
Foreign currency transactions		(5,043	)		(2,257	)		(156,508	)		4,604
Forward exchange contracts		1			—			—			—
Futures contracts		—			—			116,088			(97,288	)


Net realized gain (loss)		(89,444	)		44,767			(3,868,112	)		34,755


Net change in unrealized appreciation (depreciation) on:
Investments:
Unaffiliated issuers		(908,728	)		(1,673,931	)		(2,418,540	)		(3,646,051	)
Translation of other assets and liabilities denominated in foreign currencies		103			309			(29,194	)		(180	)
Futures contracts		—			—			(12,915	)		3,897


Net change in unrealized appreciation (depreciation)		(908,625	)		(1,673,622	)		(2,460,649	)		(3,642,334	)


Net realized and unrealized gain (loss)		(998,069	)		(1,628,855	)		(6,328,761	)		(3,607,579	)


Net increase (decrease) in net assets resulting from operations		$(741,240	)		$(1,467,669	)		$(3,865,730	)		$(2,478,472	)



^aForeign taxes withheld on dividends		$13,410			$25,219			$504,329			$188,331



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, 2023



	Franklin FTSE Taiwan ETF			Franklin FTSE United Kingdom ETF


Investment income:
Dividends: (net of foreign taxes)^a
Unaffiliated issuers		$ 1,659,413			$ 21,250,677
Interest:
Unaffiliated issuers		—			4,351
Interest from securities loaned (Note 1d):
Unaffiliated issuers (net of fees and rebates)		—			19,311
Non-Controlled affiliates (Note 3c)		—			7,535


Total investment income		1,659,413			21,281,874


Expenses:
Management fees (Note 3a)		84,970			457,578


Total expenses		84,970			457,578
Expenses waived/paid by affiliates (Note 3c)		—			(1,339	)


Net expenses		84,970			456,239


Net investment income		1,574,443			20,825,635


Realized and unrealized gains (losses):
Net realized gain (loss) from:
Investments:
Unaffiliated issuers		(1,909,374	)		(11,493,177	)
In-kind redemptions		—			3,462,099
Foreign currency transactions		(76,972	)		(570,016	)
Futures contracts		589			(107,586	)


Net realized gain (loss)		(1,985,757	)		(8,708,680	)


Net change in unrealized appreciation (depreciation) on:
Investments:
Unaffiliated issuers		(1,986,237	)		(35,514,032	)
Translation of other assets and liabilities denominated in foreign currencies		4,476			47,175
Futures contracts		—			(203,775	)


Net change in unrealized appreciation (depreciation)		(1,981,761	)		(35,670,632	)


Net realized and unrealized gain (loss)		(3,967,518	)		(44,379,312	)


Net increase (decrease) in net assets resulting from operations		$(2,393,075	)		$(23,553,677	)



^aForeign taxes withheld on dividends		$404,157			$35,421



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, 2023			Year Ended March 31, 2022			Year Ended March 31, 2023			Year Ended March 31, 2022


Increase (decrease) in net assets:
Operations:
Net investment income		$ 868,301			$ 664,421			$ 1,689,308			$ 1,235,873
Net realized gain (loss)		(2,158,882	)		(979,634	)		(237,728	)		(464,945	)
Net change in unrealized appreciation (depreciation)		(2,638,071	)		(3,275,420	)		(4,246,611	)		2,892,489


Net increase (decrease) in net assets resulting from operations		(3,928,652	)		(3,590,633	)		(2,795,031	)		3,663,417


Distributions to shareholders (Note 1f)		(845,059	)		(744,268	)		(1,647,793	)		(1,262,140	)


Capital share transactions: (Note 2)		(3,997,011	)		8,769,376			3,911,576			4,271,838


Net increase (decrease) in net assets		(8,770,722	)		4,434,475			(531,248	)		6,673,115
Net assets:
Beginning of year		38,751,051			34,316,576			29,968,184			23,295,069


End of year		$29,980,329			$38,751,051			$29,436,936			$29,968,184



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, 2023			Year Ended March 31, 2022			Year Ended March 31, 2023			Year Ended March 31, 2022


Increase (decrease) in net assets:
Operations:
Net investment income		$ 35,628,028			$ 20,729,461			$ 6,761,710			$ 725,501
Net realized gain (loss)		(94,944,037	)		(18,881,968	)		3,339,371			(201,770	)
Net change in unrealized appreciation (depreciation)		(45,250,023	)		69,556,549			(27,287,099	)		5,384,898


Net increase (decrease) in net assets resulting from operations		(104,566,032	)		71,404,042			(17,186,018	)		5,908,629


Distributions to shareholders (Note 1f)		(37,484,866	)		(16,614,538	)		(5,031,676	)		(639,656	)


Capital share transactions: (Note 2)		(116,854,829	)		365,373,593			258,855,931			13,859,588


Net increase (decrease) in net assets		(258,905,727	)		420,163,097			236,638,237			19,128,561
Net assets:
Beginning of year		527,819,503			107,656,406			43,288,811			24,160,250


End of year		$268,913,776			$527,819,503			$279,927,048			$43,288,811



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, 2023			Year Ended March 31, 2022			Year Ended March 31, 2023			Year Ended March 31, 2022


Increase (decrease) in net assets:
Operations:
Net investment income		$ 2,972,502			$ 2,209,264			$ 3,712,113			$ 6,105,734
Net realized gain (loss)		(8,490,513	)		(4,775,014	)		4,478,468			26,177,110
Net change in unrealized appreciation (depreciation)		(280,918	)		(42,274,445	)		(20,843,640	)		(24,258,897	)


Net increase (decrease) in net assets resulting from operations		(5,798,929	)		(44,840,195	)		(12,653,059	)		8,023,947


Distributions to shareholders (Note 1f)		(2,755,725	)		(1,744,579	)		(3,354,521	)		(7,497,235	)


Capital share transactions: (Note 2)		11,335,252			37,256,442			(57,291,354	)		(44,796,057	)


Net increase (decrease) in net assets		2,780,598			(9,328,332	)		(73,298,934	)		(44,269,345	)
Net assets:
Beginning of year		111,453,758			120,782,090			184,857,082			229,126,427


End of year		$114,234,356			$111,453,758			$111,558,148			$184,857,082



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, 2023			Year Ended March 31, 2022			Year Ended March 31, 2023			Year Ended March 31, 2022


Increase (decrease) in net assets:
Operations:
Net investment income		$ 581,317			$ 515,076			$ 284,539			$ 268,585
Net realized gain (loss)		220,188			758,844			(280,243	)		(84,036	)
Net change in unrealized appreciation (depreciation)		(1,004,928	)		(221,066	)		(129,793	)		(57,195	)


Net increase (decrease) in net assets resulting from operations		(203,423	)		1,052,854			(125,497	)		127,354


Distributions to shareholders (Note 1f)		(3,158,611	)		(666,937	)		(227,103	)		(270,848	)


Capital share transactions: (Note 2)		(4,169,747	)		5,879,630			(3,601,500	)		3,120,862

Net increase (decrease) in net assets		(7,531,781	)		6,265,547			(3,954,100	)		2,977,368
Net assets:
Beginning of year		21,694,673			15,429,126			10,087,881			7,110,513


End of year		$14,162,892			$21,694,673			$6,133,781			$10,087,881



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, 2023			Year Ended March 31, 2022			Year Ended March 31, 2023			Year Ended March 31, 2022


Increase (decrease) in net assets:
Operations:
Net investment income		$ 443,742			$ 423,991			$ 517,292			$ 489,122
Net realized gain (loss)		270,943			(191,927	)		(589,584	)		(407,601	)
Net change in unrealized appreciation (depreciation)		248,047			(2,762,955	)		(625,284	)		(2,850,341	)


Net increase (decrease) in net assets resulting from operations		962,732			(2,530,891	)		(697,576	)		(2,768,820	)


Distributions to shareholders (Note 1f)		(449,481	)		(404,523	)		(536,059	)		(478,429	)


Capital share transactions: (Note 2)		395,253			10,617,319			729,118			3,959,042

Net increase (decrease) in net assets		908,504			7,681,905			(504,517	)		711,793

Net assets:
Beginning of year		16,774,709			9,092,804			17,573,390			16,861,597


End of year		$17,683,213			$16,774,709			$17,068,873			$17,573,390



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, 2023			Year Ended March 31, 2022			Year Ended March 31, 2023			Year Ended March 31, 2022


Increase (decrease) in net assets:
Operations:
Net investment income		$ 599,378			$ 318,604			$ 133,696			$ 127,754
Net realized gain (loss)		(1,609,627	)		(535,539	)		(97,035	)		(26,481	)
Net change in unrealized appreciation (depreciation)		(7,048,771	)		3,883,589			215,985			(211,281	)

Net increase (decrease) in net assets resulting from operations		(8,059,020	)		3,666,654			252,646			(110,008	)


Distributions to shareholders (Note 1f)		(445,431	)		(1,055,912	)		(160,658	)		(166,253	)


Capital share transactions: (Note 2)		57,341,977			23,985,026			1,248,714			—

Net increase (decrease) in net assets		48,837,526			26,595,768			1,340,702			(276,261	)
Net assets:
Beginning of year		50,139,916			23,544,148			3,698,112			3,974,373


End of year		$98,977,442			$50,139,916			$5,038,814			$3,698,112



franklintempleton.com	The accompanying notes are an integral part of these financial statements. \| Annual Report	321

FRANKLIN TEMPLETON ETF TRUST

FINANCIAL STATEMENTS

Statements of Changes in Net Assets (continued)



	Franklin FTSE Japan ETF						Franklin FTSE Japan Hedged ETF


	Year Ended March 31, 2023			Year Ended March 31, 2022			Year Ended March 31, 2023			Year Ended March 31, 2022


Increase (decrease) in net assets:
Operations:
Net investment income	$	21,152,656		$	14,429,061		$	456,288		$	366,040
Net realized gain (loss)		(4,730,760	)		12,140,033			326,329			1,786,855
Net change in unrealized appreciation (depreciation)		(55,868,560	)		(89,344,816	)		752,939			(2,137,629	)

Net increase (decrease) in net assets resulting from operations		(39,446,664	)		(62,775,722	)		1,535,556			15,266


Distributions to shareholders (Note 1f)		(15,080,965	)		(15,304,771	)		(6,293,059	)		(162,493	)


Capital share transactions: (Note 2)		265,693,564			268,783,660			(6,677,798	)		303,836


Net increase (decrease) in net assets		211,165,935			190,703,167			(11,435,301	)		156,609
Net assets:
Beginning of year		789,637,287			598,934,120			24,719,795			24,563,186


End of year	$	1,000,803,222		$	789,637,287		$	13,284,494		$	24,719,795



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

FRANKLIN TEMPLETON ETF TRUST

FINANCIAL STATEMENTS

Statements of Changes in Net Assets (continued)



	Franklin FTSE Latin America ETF						Franklin FTSE Mexico ETF


	Year Ended March 31, 2023			Year Ended March 31, 2022			Year Ended March 31, 2023			Year Ended March 31, 2022


Increase (decrease) in net assets:
Operations:
Net investment income	$	3,964,605		$	322,765		$	461,922		$	254,422
Net realized gain (loss)		(1,670,626	)		(234,913	)		234,118			(158,105	)
Net change in unrealized appreciation (depreciation)		4,560,448			1,079,782			1,255,017			2,181,332

Net increase (decrease) in net assets resulting from operations		6,854,427			1,167,634			1,951,057			2,277,649


Distributions to shareholders (Note 1f)		(3,573,506	)		(304,300	)		(447,955	)		(302,647	)


Capital share transactions: (Note 2)		56,516,479			2,231,798			11,014,721			4,861,121


Net increase (decrease) in net assets		59,797,400			3,095,132			12,517,823			6,836,123
Net assets:
Beginning of year		7,574,832			4,479,700			12,372,025			5,535,902


End of year	$	67,372,232		$	7,574,832		$	24,889,848		$	12,372,025



franklintempleton.com	The accompanying notes are an integral part of these financial statements. \| Annual Report	323

FRANKLIN TEMPLETON ETF TRUST

FINANCIAL STATEMENTS

Statements of Changes in Net Assets (continued)



	Franklin FTSE Saudi Arabia ETF						Franklin FTSE South Africa ETF


	Year Ended March 31, 2023			Year Ended March 31, 2022			Year Ended March 31, 2023			Year Ended March 31, 2022


Increase (decrease) in net assets:
Operations:
Net investment income	$	256,829		$	62,016		$	161,186		$	141,667
Net realized gain (loss)		(89,444	)		42,036			44,767			(81,742	)
Net change in unrealized appreciation (depreciation)		(908,625	)		1,061,595			(1,673,622	)		824,250

Net increase (decrease) in net assets resulting from operations		(741,240	)		1,165,647			(1,467,669	)		884,175


Distributions to shareholders (Note 1f)		(78,128	)		(68,376	)		(191,901	)		(111,346	)


Capital share transactions: (Note 2)		18,562,690			—			(2,054,548	)		2,562,673

Net increase (decrease) in net assets		17,743,322			1,097,271			(3,714,118	)		3,335,502
Net assets:
Beginning of year		4,130,310			3,033,039			5,957,745			2,622,243


End of year	$	21,873,632		$	4,130,310		$	2,243,627		$	5,957,745



324	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 South Korea ETF						Franklin FTSE Switzerland ETF


	Year Ended March 31, 2023			Year Ended March 31, 2022			Year Ended March 31, 2023			Year Ended March 31, 2022


Increase (decrease) in net assets:
Operations:
Net investment income	$	2,463,031		$	1,268,057		$	1,129,107		$	999,855
Net realized gain (loss)		(3,868,112	)		(5,450,316	)		34,755			3,329,359
Net change in unrealized appreciation (depreciation)		(2,460,649	)		(8,014,155	)		(3,642,334	)		2,599,949

Net increase (decrease) in net assets resulting from operations		(3,865,730	)		(12,196,414	)		(2,478,472	)		6,929,163


Distributions to shareholders (Note 1f)		(2,183,845	)		(1,354,645	)		(1,004,310	)		(1,077,037	)


Capital share transactions: (Note 2)		237,736,926			11,946,711			5,830,307			(6,828,650	)


Net increase (decrease) in net assets		231,687,351			(1,604,348	)		2,347,525			(976,524	)
Net assets:
Beginning of year		61,361,442			62,965,790			47,593,224			48,569,748


End of year	$	293,048,793		$	61,361,442		$	49,940,749		$	47,593,224



franklintempleton.com	The accompanying notes are an integral part of these financial statements. \| Annual Report	325

FRANKLIN TEMPLETON ETF TRUST

FINANCIAL STATEMENTS

Statements of Changes in Net Assets (continued)



	Franklin FTSE Taiwan ETF						Franklin FTSE United Kingdom ETF


	Year Ended March 31, 2023			Year Ended March 31, 2022			Year Ended March 31, 2023			Year Ended March 31, 2022

Increase (decrease) in net assets:
Operations:
Net investment income	$	1,574,443		$	990,911		$	20,825,635		$	15,398,911
Net realized gain (loss)		(1,985,757	)		(550,668	)		(8,708,680	)		(202,105	)
Net change in unrealized appreciation (depreciation)		(1,981,761	)		2,783,522			(35,670,632	)		8,007,752

Net increase (decrease) in net assets resulting from operations		(2,393,075	)		3,223,765			(23,553,677	)		23,204,558


Distributions to shareholders (Note 1f)		(1,549,538	)		(1,073,757	)		(20,583,824	)		(11,671,197	)


Capital share transactions: (Note 2)		97,369,890			8,619,703			(474,084	)		396,366,561


Net increase (decrease) in net assets		93,427,277			10,769,711			(44,611,585	)		407,899,922
Net assets:
Beginning of year		43,666,550			32,896,839			613,572,500			205,672,578


End of year	$	137,093,827		$	43,666,550		$	568,960,915		$	613,572,500



326	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-eight separate funds, twenty-two of which are included in this report (Funds). The Funds follow the accounting and reporting guidance in Financial Accounting Standards Board ("FASB") Accounting Standard Codification Topic 946, Financial Services - Investment Companies ("ASC 946") and applies the specialized accounting and reporting guidance in U.S. Generally Accepted Accounting Principles (U.S. GAAP), including, but not limited to, ASC 946. 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 Fund may utilize independent pricing services, quotations from securities and financial instrument dealers, and other market sources to determine fair value.

Equity securities and derivative financial instruments listed on an exchange or on the NASDAQ National Market System are valued at the last quoted sale price or the official closing price of the day, respectively. Foreign equity securities are valued as of the close of trading on the foreign stock exchange on which the security is primarily traded or as of 4 p.m. Eastern time. The value is then converted into its U.S. dollar equivalent at the foreign exchange rate in effect at 4 p.m. London time on the day that the value of the security is determined. Over-the-counter (OTC) securities are valued

within the range of the most recent quoted bid and ask prices. Securities that trade in multiple markets or on multiple exchanges are valued according to the broadest and most representative market. Certain equity securities are valued based upon fundamental characteristics or relationships to similar securities.

Certain derivative financial instruments are centrally cleared or trade in the OTC market. The Fund 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 Fund net benefit or obligation under the derivative contract, as measured by the fair value of the contract, is included in net assets.

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

Trading in securities on foreign securities stock exchanges and OTC markets may be completed before 4 p.m. Eastern time. In addition, trading in certain foreign markets may not take place on every Funds’ business day. Occasionally, events occur between the time at which trading in a foreign security is completed and 4 p.m. Eastern time that might call into question the reliability of the value of a portfolio security held by the Fund. As a result, differences may arise between the value of the Funds’ portfolio securities as determined at the foreign market close and the latest indications of value at 4 p.m. Eastern time. In order to minimize the potential for these differences, an independent pricing service may be used to adjust the Fund’s portfolio securities to the latest indications of fair value at 4 p.m. Eastern time. At March 31, 2023, certain securities may have been fair valued using these procedures, in which case the securities were categorized as Level 2 inputs within the fair value hierarchy (referred to as “market level fair value”).



franklintempleton.com	Annual Report	327

FRANKLIN TEMPLETON ETF TRUST

NOTES TO FINANCIAL STATEMENTS

1. Organization and Significant Accounting Policies (continued)

a. Financial Instrument Valuation (continued)

b. Foreign Currency Translation

c. Derivative Financial Instruments



328	Annual Report	franklintempleton.com

FRANKLIN TEMPLETON ETF TRUST

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 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 7 regarding other derivative information.

d. Securities Lending

money market fund managed by Franklin Advisers, Inc., an affiliate of the Funds. These securities received as collateral are held in segregated accounts with the Funds’ custodian. The Fund cannot repledge or resell these securities received as collateral. As such, the non-cash collateral is excluded from the Statements of Assets and Liabilities. The Fund may receive income from the investment of cash collateral, in addition to lending fees and rebates paid by the borrower. Income from securities loaned, net of fees paid to the securities lending agent and/or third-party vendor, is reported separately in the Statements of Operations. The Fund bears the market risk with respect to the collateral investment, securities loaned, and the risk that the agent may default on its obligations to the Fund. If the borrower defaults on its obligation to return the securities loaned, the Fund has the right to repurchase the securities in the open market using the collateral received. The securities lending agent has agreed to indemnify the Fund in the event of default by a third party borrower.

e. Income and Deferred Taxes

It is Funds’ policy to qualify as a regulated investment company under the Internal Revenue Code. The Fund intends to distribute to shareholders substantially all of its taxable income and net realized gains to relieve it from federal income and excise taxes. As a result, no provision for U.S. federal income taxes is required.

The Funds may be subject to foreign taxation related to income received, capital gains on the sale of securities and certain foreign currency transactions in the foreign jurisdictions in which the Funds invests. Foreign taxes, if any, are recorded based on the tax regulations and rates that exist in the foreign markets in which the Funds invest. When a capital gain tax is determined to apply, Funds records an estimated deferred tax liability in an amount that would be payable if the securities were disposed of on the valuation date.

Each Fund may recognize an income tax liability related to its uncertain tax positions under U.S. GAAP when the uncertain tax position has a less than 50% probability that it will be sustained upon examination by the tax authorities based on its technical merits. As of March 31, 2023, 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.



franklintempleton.com	Annual Report	329

FRANKLIN TEMPLETON ETF TRUST

NOTES TO FINANCIAL STATEMENTS

1. Organization and Significant Accounting Policies (continued)

e. Income and Deferred Taxes (continued)

As a result of several court cases, in certain countries across the European Union the Fund filed additional tax reclaims for previously withheld taxes on dividends earned in those countries (EU reclaims). Income recognized, if any, for EU reclaims is reflected as European Union tax reclaims in the Statement of Operations and any related receivable is reflected as European Union tax reclaims receivable in the Statement of Assets and Liabilities. Any fees associated with these filings are reflected as European Union tax reclaim contingent fees in the Statement of Operations. When uncertainty exists as to the ultimate resolution of these proceedings, the likelihood of receipt of these EU reclaims, and the potential timing of payment, no amounts are reflected in the financial statements. For U.S. income tax purposes, EU reclaims received by the Fund, if any, reduce the amount of foreign taxes Fund shareholders can use as tax deductions or credits on their income tax returns.

f. Security Transactions, Investment Income, Expenses and Distributions

Security transactions are accounted for on trade date. Realized gains and losses on security transactions are determined on a specific identification basis. Interest Income 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.

g. Accounting Estimates

h. Guarantees and Indemnifications

2. Shares of Beneficial Interest

Shares of the Funds is issued and redeemed at their respective NAV only in aggregations of a specified number of shares or multiples thereof (Creation Units). Only certain large institutional investors (Authorized Participants) may engage in creation or redemption transactions directly with the Funds. Once created, shares of the Funds generally trade in the secondary market in amounts less than one Creation Unit. The market price of the Funds’ shares will be based on the price in the secondary 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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2. Shares of Beneficial Interest (continued)

At March 31, 2023, 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, 2023						Year Ended March 31, 2022

	Shares			Amount			Shares			Amount


Shares sold		—		$	13,819			400,000		$	8,769,376
Shares redeemed		(200,000	)		(4,010,830	)		—			—


Net increase (decrease)		(200,000	)	$	(3,997,011	)		400,000		$	8,769,376


	Franklin FTSE Australia ETF


	Year Ended March 31, 2023						Year Ended March 31, 2022


	Shares			Amount			Shares			Amount


Shares sold		200,000		$	5,212,830			150,000		$	4,271,838
Shares redeemed		(50,000	)		(1,301,254	)		—			—


Net increase (decrease)		150,000		$	3,911,576			150,000		$	4,271,838


	Franklin FTSE Brazil ETF


	Year Ended March 31, 2023						Year Ended March 31, 2022


	Shares			Amount			Shares			Amount


Shares sold		7,000,000		$	130,953,951			17,500,000		$	372,085,342
Shares redeemed		(13,400,000	)		(247,808,780	)		(300,000	)		(6,711,749	)


Net increase (decrease)		(6,400,000	)	$	(116,854,829	)		17,200,000		$	365,373,593


	Franklin FTSE Canada ETF


	Year Ended March 31, 2023						Year Ended March 31, 2022


	Shares			Amount			Shares			Amount


Shares sold		11,250,000		$	360,676,656			400,000		$	13,859,588
Shares redeemed		(3,350,000	)		(101,820,725	)		—			—


Net increase (decrease)		7,900,000		$	258,855,931			400,000		$	13,859,588



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NOTES TO FINANCIAL STATEMENTS

2. Shares of Beneficial Interest (continued)



	Franklin FTSE China ETF


	Year Ended March 31, 2023						Year Ended March 31, 2022


	Shares			Amount			Shares			Amount

Shares sold		600,000		$	11,335,252			1,600,000		$	43,703,237
Shares redeemed		—			—			(200,000	)		(6,446,795	)

Net increase (decrease)		600,000		$	11,335,252			1,400,000		$	37,256,442


	Franklin FTSE Europe ETF


	Year Ended March 31, 2023						Year Ended March 31, 2022


	Shares			Amount			Shares			Amount


Shares sold		2,800,000		$	71,589,590			1,400,000		$	38,599,643
Shares redeemed		(5,400,000	)		(128,880,944	)		(3,000,000	)		(83,395,700	)


Net increase (decrease)		(2,600,000	)	$	(57,291,354	)		(1,600,000	)	$	(44,796,057	)


	Franklin FTSE Europe Hedged ETF


	Year Ended March 31, 2023						Year Ended March 31, 2022


	Shares			Amount			Shares			Amount


Shares sold		400,000		$	10,645,855			200,000		$	5,879,630
Shares redeemed		(600,000	)		(14,815,602	)		—			—


Net increase (decrease)		(200,000	)	$	(4,169,747	)		200,000		$	5,879,630


	Franklin FTSE France ETF


	Year Ended March 31, 2023						Year Ended March 31, 2022


	Shares			Amount			Shares			Amount


Shares sold		—		$	—			100,000		$	3,120,862
Shares redeemed		(150,000	)		(3,601,500	)		—			—


Net increase (decrease)		(150,000	)	$	(3,601,500	)		100,000		$	3,120,862


	Franklin FTSE Germany ETF


	Year Ended March 31, 2023						Year Ended March 31, 2022


	Shares			Amount			Shares			Amount


Shares sold		300,000		$	5,539,373			400,000		$	10,617,319
Shares redeemed		(250,000	)		(5,144,120	)		—			—


Net increase (decrease)		50,000		$	395,253			400,000		$	10,617,319



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2. Shares of Beneficial Interest (continued)


	Franklin FTSE Hong Kong ETF


	Year Ended March 31, 2023						Year Ended March 31, 2022


	Shares			Amount			Shares			Amount


Shares sold		200,000		$	4,048,817			150,000		$	3,959,042
Shares redeemed		(150,000	)		(3,319,699	)		—			—


Net increase (decrease)		50,000		$	729,118			150,000		$	3,959,042


	Franklin FTSE India ETF


	Year Ended March 31, 2023						Year Ended March 31, 2022


	Shares			Amount			Shares			Amount


Shares sold		2,000,000		$	57,341,977			750,000		$	23,985,026


Net increase (decrease)		2,000,000		$	57,341,977			750,000		$	23,985,026


	Franklin FTSE Italy ETF


	Year Ended March 31, 2023						Year Ended March 31, 2022


	Shares			Amount			Shares			Amount


Shares sold		50,000		$	1,248,714			—		$	—


Net increase (decrease)		50,000		$	1,248,714			—		$	—


	Franklin FTSE Japan ETF


	Year Ended March 31, 2023						Year Ended March 31, 2022


	Shares			Amount			Shares			Amount


Shares sold		17,400,000		$	429,036,842			11,400,000		$	340,542,812
Shares redeemed		(7,200,000	)		(163,343,278	)		(2,400,000	)		(71,759,152	)


Net increase (decrease)		10,200,000		$	265,693,564			9,000,000		$	268,783,660


	Franklin FTSE Japan Hedged ETF


	Year Ended March 31, 2023						Year Ended March 31, 2022


	Shares			Amount			Shares			Amount


Shares sold		200,000		$	6,015,210			400,000		$	12,446,606
Shares redeemed		(500,000	)		(12,693,008	)		(400,000	)		(12,142,770	)


Net increase (decrease)		(300,000	)	$	(6,677,798	)		—		$	303,836



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NOTES TO FINANCIAL STATEMENTS

2. Shares of Beneficial Interest (continued)



	Franklin FTSE Latin America ETF


	Year Ended March 31, 2023						Year Ended March 31, 2022


	Shares			Amount			Shares			Amount

Shares sold		3,000,000		$	56,516,479			100,000		$	2,231,798

Net increase (decrease)		3,000,000		$	56,516,479			100,000		$	2,231,798


	Franklin FTSE Mexico ETF


	Year Ended March 31, 2023						Year Ended March 31, 2022


	Shares			Amount			Shares			Amount

Shares sold		450,000		$	12,282,600			200,000		$	4,861,121
Shares redeemed		(50,000	)		(1,267,879	)		—			—

Net increase (decrease)		400,000		$	11,014,721			200,000		$	4,861,121


	Franklin FTSE Saudi Arabia ETF


	Year Ended March 31, 2023						Year Ended March 31, 2022


	Shares			Amount			Shares			Amount

Shares sold		550,000		$	18,562,690			—		$	—

Net increase (decrease)		550,000		$	18,562,690			—		$	—


	Franklin FTSE South Africa ETF


	Year Ended March 31, 2023						Year Ended March 31, 2022


	Shares			Amount			Shares			Amount

Shares sold		—		$	—			100,000		$	2,562,673
Shares redeemed		(100,000	)		(2,054,548	)		—			—

Net increase (decrease)		(100,000	)	$	(2,054,548	)		100,000		$	2,562,673


	Franklin FTSE South Korea ETF


	Year Ended March 31, 2023						Year Ended March 31, 2022


	Shares			Amount			Shares			Amount

Shares sold		11,500,000		$	237,736,926			800,000		$	23,052,455
Shares redeemed		—			—			(400,000	)		(11,105,744	)

Net increase (decrease)		11,500,000		$	237,736,926			400,000		$	11,946,711



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NOTES TO FINANCIAL STATEMENTS

2. Shares of Beneficial Interest (continued)



	Franklin FTSE Switzerland ETF


	Year Ended March 31, 2023						Year Ended March 31, 2022


	Shares			Amount			Shares			Amount

Shares sold		500,000		$	14,529,344			300,000		$	10,413,668
Shares redeemed		(300,000	)		(8,699,037	)		(500,000	)		(17,242,318	)

Net increase (decrease)		200,000		$	5,830,307			(200,000	)	$	(6,828,650	)


	Franklin FTSE Taiwan ETF


	Year Ended March 31, 2023						Year Ended March 31, 2022


	Shares			Amount			Shares			Amount

Shares sold		2,800,000		$	100,458,761			300,000		$	13,007,178
Shares redeemed		(100,000	)		(3,088,871	)		(100,000	)		(4,387,475	)

Net increase (decrease)		2,700,000		$	97,369,890			200,000		$	8,619,703


	Franklin FTSE United Kingdom ETF


	Year Ended March 31, 2023						Year Ended March 31, 2022


	Shares			Amount			Shares			Amount

Shares sold		7,150,000		$	165,942,304			16,400,000		$	419,981,074
Shares redeemed		(7,750,000	)		(166,416,388	)		(950,000	)		(23,614,513	)

Net increase (decrease)		(600,000	)	$	(474,084	)		15,450,000		$	396,366,561

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 Distributors, LLC (Distributors)		Principal underwriter



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NOTES TO FINANCIAL STATEMENTS

3. Transactions with Affiliates (continued)

a. Management fees



		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 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%

b. Administrative Fees

Under an agreement with FASL, FT Services provides administrative services to the Funds. The fee is paid by FASL based on the Funds’ average daily net assets, and is not an additional expense of the Funds.



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NOTES TO FINANCIAL STATEMENTS

3. Transactions with Affiliates (continued)

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 4.47%	$	6,825	$	48,550	$	(55,375	)		$ —		$ —	$	—		—		$ 10


Franklin FTSE China ETF Non-Controlled Affiliates																Income from Securities loaned

Institutional Fiduciary Trust Money Market Portfolio 4.47%	$	78,125	$	1,058,393	$	(1,136,518	)		$ —		$ —	$	—		—		$ 1,001


Franklin FTSE Europe Hedged ETF Non-Controlled Affiliates																Income from Securities loaned

Institutional Fiduciary Trust Money Market Portfolio 4.47%	$	—	$	4,136	$	—			$ —		$ —	$	4,136		4,136		$ —


Franklin FTSE Japan ETF Non-Controlled Affiliates																Income from Securities loaned

Institutional Fiduciary Trust Money Market Portfolio 4.47%	$	251,746	$	4,165,547	$	—			$ —		$ —	$	4,417,293		4,417,293		$10,989


Franklin FTSE Japan Hedged ETF Non-Controlled Affiliates																Income from Securities loaned

Institutional Fiduciary Trust Money Market Portfolio 4.47%	$	695,758	$	9,497,074	$	(10,192,111	)		$ —		$ —	$	721		721		$ —



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NOTES TO FINANCIAL STATEMENTS

3. Transactions with Affiliates (continued)

c. Investments in Affiliated Management Investment Companies (continued)



	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 United Kingdom ETF Non-Controlled Affiliates																	Income from Securities loaned


Institutional Fiduciary Trust Money Market Portfolio 4.47%		$620,830		$9,249,442		$ (9,870,262	)		$—		$—	$	10		10		$ 7,535

d. Other Affiliated Transactions

At March 31, 2023, the shares of the Funds were owned by the following entities:



Funds	Shares		Percentage of Outstanding Shares^a


Franklin FTSE Latin America ETF
Franklin Resources Inc.		985,000		29.8%


Franklin FTSE South Africa ETF
Franklin Resources Inc.		16,000		16.0%


Franklin FTSE Taiwan ETF
Franklin Resources Inc.		1,260,000		34.1%


Franklin FTSE United Kingdom ETF
Franklin Resources Inc.		2,930,000		12.5%

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

4. Income Taxes

For tax purposes, capital losses may be carried over to offset future capital gains. At March 31, 2023, 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	$	2,978,321	$	861,861	$	58,599,726	$	917,859
Short term		773,828		287,758		66,857,630		2,247,375


Total capital loss carryforwards	$	3,752,149	$	1,149,619	$	125,457,356	$	3,165,234



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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	$	13,143,127	$	3,778,280	$	185,736	$	253,790
Short term		3,376,115		908,263		211,682		52,788


Total capital loss carryforwards	$	16,519,242	$	4,686,543	$	397,418	$	306,578


	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	$	744,560	$	809,586	$	1,024,623	$	358,163
Short term		207,142		553,844		321,248		22,058


Total capital loss carryforwards	$	951,702	$	1,363,430	$	1,345,871	$	380,221


	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	$	14,225,837	$	—	$	890,110	$	826,878
Short term		3,657,331		—		668,844		80,987


Total capital loss carryforwards	$	17,883,168	$	—	$	1,558,954	$	907,865


	Franklin FTSE Saudi Arabia ETF		Franklin FTSE South Africa ETF		Franklin FTSE South Korea ETF		Franklin FTSE Switzerland ETF


Capital loss carryforwards not subject to expiration:
Long term	$	12,585	$	329,148	$	4,244,652	$	510,380
Short term		51,837		75,911		2,671,797		794,022


Total capital loss carryforwards	$	64,422	$	405,059	$	6,916,449	$	1,304,402


	Franklin FTSE Taiwan ETF		Franklin FTSE United Kingdom ETF


Capital loss carryforwards not subject to expiration:
Long term	$	1,217,333	$	11,733,951
Short term		636,412		5,822,629


Total capital loss carryforwards	$	1,853,745	$	17,556,580



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NOTES TO FINANCIAL STATEMENTS

4. Income Taxes (continued)



	Franklin FTSE Europe Hedged ETF		Franklin FTSE India ETF		Franklin FTSE Japan Hedged ETF


Post October capital losses	$	2,717,313	$	—	$	7,324,097
Late year ordinary losses	$	—	$	242,051	$	—

For tax purposes, capital losses may be carried over to offset future capital gains. During the year ended March 31, 2023, the following Fund utilized capital loss carryforwards as follows:



	Franklin FTSE Europe Hedged ETF

Capital loss carryforwards utilized	$	38,507

The tax character of distributions paid during the period ended March 31, 2023 and 2022, were as follows:


	Franklin FTSE Asia ex Japan ETF


	2023		2022

Distributions paid from Ordinary income		$845,059		$744,268


	Franklin FTSE Australia ETF


	2023		2022

Distributions paid from Ordinary income		$1,647,793		$1,262,140


	Franklin FTSE Brazil ETF


	2023		2022

Distributions paid from Ordinary income		$37,484,866		$16,614,538


	Franklin FTSE Canada ETF


	2023		2022

Distributions paid from Ordinary income		$5,031,676		$639,656


	Franklin FTSE China ETF


	2023		2022

Distributions paid from Ordinary income		$2,755,725		$1,744,579


	Franklin FTSE Europe ETF


	2023		2022

Distributions paid from Ordinary income		$3,354,521		$7,497,235



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NOTES TO FINANCIAL STATEMENTS

4. Income Taxes (continued)



	Franklin FTSE Europe Hedged ETF

	2023		2022

Distributions paid from:
Ordinary income		$1,664,444		$666,937
Long-term Capital Gain		1,494,167		—

		$3,158,611		$666,937


	Franklin FTSE France ETF

	2023		2022

Distributions paid from Ordinary income		$227,103		$270,848


	Franklin FTSE Germany ETF

	2023		2022

Distributions paid from Ordinary income		$449,481		$404,523


	Franklin FTSE Hong Kong ETF

	2023		2022

Distributions paid from Ordinary income		$536,059		$478,429


	Franklin FTSE India ETF

	2023		2022

Distributions paid from Ordinary income		$445,431		$1,055,912


	Franklin FTSE Italy ETF

	2023		2022

Distributions paid from Ordinary income		$160,658		$166,253


	Franklin FTSE Japan ETF

	2023		2022

Distributions paid from Ordinary income		$15,080,965		$15,304,771


	Franklin FTSE Japan Hedged ETF

	2023		2022

Distributions paid from:
Ordinary income		$2,846,872		$162,493
Long-term Capital Gain		3,446,187		—

		$6,293,059		$162,493


	Franklin FTSE Latin America ETF

	2023		2022

Distributions paid from Ordinary income		$3,573,506		$304,300



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4. Income Taxes (continued)



	Franklin FTSE Mexico ETF


	2023		2022

Distributions paid from Ordinary income		$447,955		$302,647


	Franklin FTSE Saudi Arabia ETF


	2023		2022

Distributions paid from Ordinary income		$78,128		$68,376


	Franklin FTSE South Africa ETF


	2023		2022

Distributions paid from Ordinary income		$191,901		$111,346


	Franklin FTSE South Korea ETF


	2023		2022

Distributions paid from Ordinary income		$2,183,845		$1,354,645


	Franklin FTSE Switzerland ETF


	2023		2022

Distributions paid from Ordinary income		$1,004,310		$1,077,037


	Franklin FTSE Taiwan ETF


	2023		2022

Distributions paid from Ordinary income		$1,549,538		$1,073,757


	Franklin FTSE United Kingdom ETF


	2023		2022

Distributions paid from Ordinary income		$20,583,824		$11,671,197

At March 31, 2023, 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	$	32,682,770		$	28,252,930		$	297,219,785		$	299,117,396


Unrealized appreciation	$	3,337,011		$	2,327,728		$	22,307,974		$	7,025,985
Unrealized depreciation		(5,986,603	)		(1,637,676	)		(52,967,089	)		(27,022,214)

Net unrealized appreciation (depreciation)	$	(2,649,592	)	$	690,052		$	(30,659,115	)	$	(19,996,229)


Distributable earnings – undistributed ordinary income	$	159,005		$	368,009		$	2,304,975		$	1,871,648



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NOTES TO FINANCIAL STATEMENTS

4. Income Taxes (continued)



	Franklin FTSE China ETF			Franklin FTSE Europe ETF			Franklin FTSE Europe Hedged ETF			Franklin FTSE France ETF


Cost of investments	$	145,822,604		$	113,965,929		$	14,491,062		$	5,905,750


Unrealized appreciation	$	6,781,773		$	4,404,303		$	1,054,124		$	707,632
Unrealized depreciation		(38,346,839	)		(8,194,337	)		(1,522,051	)		(565,805)

Net unrealized appreciation (depreciation)	$	(31,565,066	)	$	(3,790,034	)	$	(467,927	)	$	141,827

Distributable earnings – undistributed ordinary income	$	853,016		$	805,273		$	—		$	15,078


	Franklin FTSE Germany ETF			Franklin FTSE Hong Kong ETF			Franklin FTSE India ETF			Franklin FTSE Italy ETF


Cost of investments	$	19,347,639		$	19,099,547		$	100,367,195		$	4,635,561


Unrealized appreciation	$	910,338		$	799,851		$	4,780,687		$	707,896
Unrealized depreciation		(2,574,563	)		(2,864,894	)		(6,075,476	)		(306,030)

Net unrealized appreciation (depreciation)	$	(1,664,225	)	$	(2,065,043	)	$	(1,294,789	)	$	401,866

Distributable earnings – undistributed ordinary income	$	111,219		$	104,641		$	—		$	39,803


	Franklin FTSE Japan ETF			Franklin FTSE Japan Hedged ETF			Franklin FTSE Latin America ETF			Franklin FTSE Mexico ETF


Cost of investments	$	1,102,887,621		$	14,143,991		$	62,315,928		$	21,219,139


Unrealized appreciation	$	34,397,639		$	553,403		$	8,758,934		$	4,213,826
Unrealized depreciation		(144,299,726	)		(1,660,467	)		(3,937,377	)		(547,918)

Net unrealized appreciation (depreciation)	$	(109,902,087	)	$	(1,107,064	)	$	4,821,557		$	3,665,908

Distributable earnings – undistributed ordinary income	$	17,312,929		$	1,527,675		$	542,988		$	109,912


	Franklin FTSE Saudi Arabia ETF			Franklin FTSE South Africa ETF			Franklin FTSE South Korea ETF			Franklin FTSE Switzerland ETF


Cost of investments	$	21,016,214		$	2,717,890		$	301,280,999		$	48,973,220


Unrealized appreciation	$	1,160,042		$	103,181		$	14,712,621		$	3,820,850
Unrealized depreciation		(445,778	)		(578,832	)		(25,281,680	)		(3,742,655)

Net unrealized appreciation (depreciation)	$	714,264		$	(475,651	)	$	(10,569,059	)	$	78,195

Distributable earnings – undistributed ordinary income	$	178,472		$	24,552		$	2,643,619		$	504,795



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4. Income Taxes (continued)



	Franklin FTSE Taiwan ETF			Franklin FTSE United Kingdom ETF


Cost of investments	$	127,023,589		$	592,580,014


Unrealized appreciation	$	12,266,200		$	27,830,054
Unrealized depreciation		(2,418,200	)		(56,383,344)

Net unrealized appreciation (depreciation)	$	9,848,000		$	(28,553,290)

Distributable earnings – undistributed ordinary income	$	706,564		$	6,735,922

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, EU reclaims and gains/losses realized on in-kind shareholder redemptions 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, 2023, were as follows:


	Franklin FTSE Asia ex Japan ETF			Franklin FTSE Australia ETF		Franklin FTSE Brazil ETF		Franklin FTSE Canada ETF

Purchases		$	1,908,691	$	1,671,688	$	173,242,572	$	12,912,510
Sales		$	4,294,561	$	2,108,563	$	293,865,300	$	11,416,876

	Franklin FTSE China ETF			Franklin FTSE Europe ETF		Franklin FTSE Europe Hedged ETF		Franklin FTSE France ETF

Purchases		$	20,746,623	$	4,542,129	$	3,685,035	$	354,887
Sales		$	10,197,058	$	4,476,786	$	5,327,831	$	388,721

	Franklin FTSE Germany ETF			Franklin FTSE Hong Kong ETF		Franklin FTSE India ETF		Franklin FTSE Italy ETF

Purchases		$	606,127	$	5,151,427	$	61,517,360	$	615,475
Sales		$	607,720	$	1,300,220	$	4,264,684	$	643,828

	Franklin FTSE Japan ETF			Franklin FTSE Japan Hedged ETF		Franklin FTSE Latin America ETF		Franklin FTSE Mexico ETF

Purchases		$	30,902,470	$	7,112,900	$	46,099,803	$	1,511,502
Sales		$	24,462,987	$	10,887,531	$	5,129,698	$	1,497,626

	Franklin FTSE Saudi Arabia ETF			Franklin FTSE South Africa ETF		Franklin FTSE South Korea ETF		Franklin FTSE Switzerland ETF

Purchases		$	18,976,370	$	315,163	$	243,049,567	$	3,974,138



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5. Investment Transactions (continued)



	Franklin FTSE Saudi Arabia ETF		Franklin FTSE South Africa ETF		Franklin FTSE South Korea ETF		Franklin FTSE Switzerland ETF

Sales	$	387,290	$	342,295	$	6,620,131	$	3,928,753

	Franklin FTSE Taiwan ETF		Franklin FTSE United Kingdom ETF

Purchases	$	102,686,342	$	32,754,756
Sales	$	5,594,586	$	28,776,359

In-kind transactions associated with creation and redemptions for the year ended March 31, 2023, 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	$	—	$	—	$	—	$	—
Value of Securities Delivered^a	$	1,657,109	$	—	$	—	$	—

	Franklin FTSE China ETF		Franklin FTSE Europe ETF		Franklin FTSE Europe Hedged ETF		Franklin FTSE France ETF

Cost of Securities Received	$	747,193	$	70,731,122	$	10,576,827	$	—
Value of Securities Delivered^a	$	—	$	127,792,935	$	14,396,526	$	—

	Franklin FTSE Germany ETF		Franklin FTSE Hong Kong ETF		Franklin FTSE India ETF		Franklin FTSE Italy ETF

Cost of Securities Received	$	5,533,324	$	144,988	$	—	$	1,248,141
Value of Securities Delivered^a	$	5,139,872	$	3,255,694	$	—	$	—

	Franklin FTSE Japan ETF		Franklin FTSE Japan Hedged ETF		Franklin FTSE Latin America ETF		Franklin FTSE Mexico ETF

Cost of Securities Received	$	422,602,145	$	5,821,497	$	15,533,410	$	12,277,160
Value of Securities Delivered^a	$	160,515,326	$	12,708,732	$	—	$	1,266,860

	Franklin FTSE Saudi Arabia ETF		Franklin FTSE South Africa ETF		Franklin FTSE South Korea ETF		Franklin FTSE Switzerland ETF

Cost of Securities Received	$	—	$	—	$	—	$	14,253,301
Value of Securities Delivered^a	$	—	$	2,054,263	$	—	$	4,543,769

	Franklin FTSE Taiwan ETF		Franklin FTSE United Kingdom ETF

Cost of Securities Received	$	—	$	164,931,197



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NOTES TO FINANCIAL STATEMENTS

5. Investment Transactions (continued)



	Franklin FTSE Taiwan ETF		Franklin FTSE United Kingdom ETF


Value of Securities Delivered^a	$	—	$	164,898,997

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, 2023, in connection with securities lending transactions, certain or all Funds loaned investments and received cash collateral as follows:



	Franklin FTSE Japan ETF


Securities lending transactions^a:
Equity Investments^b	$	4,355,834

^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

Russia’s military invasion of Ukraine in February 2022, the resulting responses by the United States and other countries, and the potential for wider conflict could increase volatility and uncertainty in the financial markets and adversely affect regional and global economies. The United States and other countries have imposed broad-ranging economic sanctions on Russia and certain Russian individuals, banking entities and corporations as a response to its invasion of Ukraine. The United States and other countries have also imposed economic sanctions on Belarus and may impose sanctions on other countries that support Russia’s military invasion. These sanctions, as well as any other economic consequences related to the invasion, such as additional sanctions, boycotts or changes in consumer or purchaser preferences or cyberattacks on governments, companies or individuals, may further decrease the value and liquidity of certain Russian securities and securities of issuers in other countries that are subject to economic sanctions related to the invasion. To the extent that the Funds have exposure to Russian investments or investments in countries affected by the invasion, the Fund’s ability to price, buy, sell, receive or deliver such investments was impaired. The Funds could determine at any time that certain of the most affected securities have little or no value. In addition, any exposure that the Funds may have to counterparties in Russia or in countries affected by the invasion could negatively impact the Fund’s portfolio. The extent and duration of Russia’s military actions and the repercussions of such actions (including any retaliatory actions or countermeasures that may be taken by those subject to sanctions) are impossible to predict, but could result in significant market disruptions, including in the oil and natural gas markets, and may negatively affect global supply chains, inflation and global growth. These and any related events could significantly impact the Fund’s performance and the value of an investment in the Funds’, even beyond any direct exposure the Funds may have to Russian issuers or issuers in other countries affected by the invasion.

7. Other Derivative Information

At March 31, 2023, the Funds’ investments in derivative contracts are reflected in the Statements of Asset and Liabilities as follows:



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7. Other Derivative Information (continued)



	Asset Derivatives			Liability Derivatives

	Statements of Assets and Liabilities Location	Fair Value		Statements of Assets and Liabilities Location	Fair Value
Franklin FTSE Australia ETF

Equity contracts	Variation margin on futures contracts	$	865	Variation margin on futures contracts	$	—

Franklin FTSE Brazil ETF

Equity contracts	Variation margin on futures contracts	$	—	Variation margin on futures contracts	$	100,113

Franklin FTSE Canada ETF

Equity contracts	Variation margin on futures contracts	$	13,181	Variation margin on futures contracts	$	—

Franklin FTSE Europe ETF

Equity contracts	Variation margin on futures contracts	$	30,814	Variation margin on futures contracts	$	—

Franklin FTSE Europe Hedged ETF

Foreign exchange contracts	Unrealized appreciation on OTC forward exchange contracts	$	2,354	Unrealized depreciation on OTC forward exchange contracts	$	295,253

Equity contracts	Variation margin on futures contracts		2,816	Variation margin on futures contracts		—


Totals		$	5,170		$	295,253

Franklin FTSE France ETF

Equity contracts	Variation margin on futures contracts	$	2,470	Variation margin on futures contracts	$	—

Franklin FTSE Hong Kong ETF

Equity contracts	Variation margin on futures contracts	$	1,064	Variation margin on futures contracts	$	—

Franklin FTSE Japan ETF

Equity contracts	Variation margin on futures contracts	$	162,284	Variation margin on futures contracts	$	—

Franklin FTSE Japan Hedged ETF

Foreign exchange contracts	Unrealized appreciation on OTC forward exchange contracts	$	—	Unrealized depreciation on OTC forward exchange contracts	$	247,252

Equity contracts	Variation margin on futures contracts		2,278	Variation margin on futures contracts		—


Totals		$	2,278		$	247,252

Franklin FTSE Latin America ETF

Equity contracts	Variation margin on futures contracts	$	—	Variation margin on futures contracts	$	14,879

Franklin FTSE South Korea ETF

Equity contracts	Variation margin on futures contracts	$	25,029	Variation margin on futures contracts	$	—

Franklin FTSE Switzerland ETF

Equity contracts	Variation margin on futures contracts	$	38,313	Variation margin on futures contracts	$	—

Franklin FTSE United Kingdom ETF

Equity contracts	Variation margin on futures contracts	$	27,481	Variation margin on futures contracts	$	—



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NOTES TO FINANCIAL STATEMENTS

7. Other Derivative Information (continued)

For the year ended March 31, 2023, the effect of derivative contracts in the Funds’ Statements of Operations was as follows:



Derivative Contracts Not Accounted for as Hedging Instruments	Statements of Operations Locations	Net Realized Gain (Loss) for the Period			Statements of Operations Locations	Net Change in Unrealized Appreciation (Depreciation) for the Period

Franklin FTSE Asia ex Japan ETF
	Net realized gain (loss) from:				Net change in unrealized appreciation (depreciation) on:

Equity contracts	Futures contracts	$	(41,334	)	Futures contracts	$	—

Franklin FTSE Australia ETF
	Net realized gain (loss) from:				Net change in unrealized appreciation (depreciation) on:

Equity contracts	Futures contracts	$	4,705		Futures contracts	$	865

Franklin FTSE Brazil ETF
	Net realized gain (loss) from:				Net change in unrealized appreciation (depreciation) on:

Equity contracts	Futures contracts	$	(2,139,014	)	Futures contracts	$	(313,611	)

Franklin FTSE Canada ETF
	Net realized gain (loss) from:				Net change in unrealized appreciation (depreciation) on:

Equity contracts	Futures contracts	$	(32,397	)	Futures contracts	$	13,181

Franklin FTSE China ETF
	Net realized gain (loss) from:				Net change in unrealized appreciation (depreciation) on:

Equity contracts	Futures contracts	$	(282,944	)	Futures contracts	$	—

Franklin FTSE Europe ETF
	Net realized gain (loss) from:				Net change in unrealized appreciation (depreciation) on:

Equity contracts	Futures contracts	$	35,645		Futures contracts	$	(40,919	)

Franklin FTSE Europe Hedged ETF
	Net realized gain (loss) from:				Net change in unrealized appreciation (depreciation) on:

Foreign exchange contracts	Forward exchange contracts	$	1,844,814		Forward exchange contracts	$	(515,430	)

Equity contracts	Futures contracts		800		Futures contracts		2,816


Totals		$	1,845,614			$	(512,614	)

Franklin FTSE France ETF
	Net realized gain (loss) from:				Net change in unrealized appreciation (depreciation) on:

Equity contracts	Futures contracts	$	(3,299	)	Futures contracts	$	2,470

Franklin FTSE Germany ETF
	Net realized gain (loss) from:				Net change in unrealized appreciation (depreciation) on:

Equity contracts	Futures contracts	$	(10,835	)	Futures contracts	$	—

Franklin FTSE Hong Kong ETF
	Net realized gain (loss) from:				Net change in unrealized appreciation (depreciation) on:

Equity contracts	Futures contracts	$	(2,161	)	Futures contracts	$	477



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NOTES TO FINANCIAL STATEMENTS

7. Other Derivative Information (continued)



Derivative Contracts Not Accounted for as Hedging Instruments	Statements of Operations Locations	Net Realized Gain (Loss) for the Period			Statements of Operations Locations	Net Change in Unrealized Appreciation (Depreciation) for the Period

Franklin FTSE India ETF

	Net realized gain (loss) from:				Net change in unrealized appreciation (depreciation) on:

Equity contracts	Futures contracts	$	4,985		Futures contracts	$	(1,364	)

Franklin FTSE Japan ETF

	Net realized gain (loss) from:				Net change in unrealized appreciation (depreciation) on:

Equity contracts	Futures contracts	$	354,956		Futures contracts	$	14,541

Franklin FTSE Japan Hedged ETF

	Net realized gain (loss) from:				Net change in unrealized appreciation (depreciation) on:

Foreign exchange contracts	Forward exchange contracts	$	2,715,905		Forward exchange contracts	$	(797,600	)

Equity contracts	Futures contracts		4,773		Futures contracts		832


Totals		$	2,720,678			$	(796,768	)

Franklin FTSE Latin America ETF

	Net realized gain (loss) from:				Net change in unrealized appreciation (depreciation) on:

Equity contracts	Futures contracts	$	(99,250	)	Futures contracts	$	(15,889	)

Franklin FTSE Mexico ETF

	Net realized gain (loss) from:				Net change in unrealized appreciation (depreciation) on:

Equity contracts	Futures contracts	$	(1,730	)	Futures contracts	$	—

Franklin FTSE Saudi Arabia ETF

	Net realized gain (loss) from:				Net change in unrealized appreciation (depreciation) on:

Foreign exchange contracts	Forward exchange contracts	$	1		Forward exchange contracts	$	—

Franklin FTSE South Korea ETF

	Net realized gain (loss) from:				Net change in unrealized appreciation (depreciation) on:

Equity contracts	Futures contracts	$	116,088		Futures contracts	$	(12,915	)

Franklin FTSE Switzerland ETF

	Net realized gain (loss) from:				Net change in unrealized appreciation (depreciation) on:

Equity contracts	Futures contracts	$	(97,288	)	Futures contracts	$	3,897

Franklin FTSE Taiwan ETF

	Net realized gain (loss) from:				Net change in unrealized appreciation (depreciation) on:

Equity contracts	Futures contracts	$	589		Futures contracts	$	—

Franklin FTSE United Kingdom ETF

	Net realized gain (loss) from:				Net change in unrealized appreciation (depreciation) on:

Equity contracts	Futures contracts	$	(107,586	)	Futures contracts	$	(203,775	)



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NOTES TO FINANCIAL STATEMENTS

7. Other Derivative Information (continued)

For the year ended March 31, 2023, the average month end notional amount of futures contracts and average month end contract value for forward exchange contracts were as follows:



	Franklin FTSE Asia ex Japan ETF		Franklin FTSE Australia ETF		Franklin FTSE Brazil ETF		Franklin FTSE Canada ETF
Futures contracts		$35,047		$152,132		$5,819,540	$519,804
Forward exchange contracts		$ —		$ —		$ —	$ —

	Franklin FTSE China ETF		Franklin FTSE Europe ETF		Franklin FTSE Europe Hedged ETF		Franklin FTSE France ETF
Futures contracts		$304,969		$788,608		$ 89,942	$7,706
Forward exchange contracts		$ —		$ —		$52,732,966	$ —

	Franklin FTSE Germany ETF		Franklin FTSE Hong Kong ETF		Franklin FTSE India ETF		Franklin FTSE Japan ETF
Futures contracts		$37,240		$55,744		$66,394	$5,604,615
Forward exchange contracts		$ —		$ —		$ —	$ —

	Franklin		Franklin		Franklin		Franklin
	FTSE		FTSE		FTSE		FTSE
	Japan Hedged		Latin America		Saudi Arabia		South Korea
	ETF		ETF		ETF		ETF
Futures contracts		$ 194,640		$415,110		$ —	$750,795
Forward exchange contracts		$68,391,103		$ —		$430	$ —

	Franklin		Franklin		Franklin
	FTSE		FTSE		FTSE
	Switzerland		Taiwan		United Kingdom
	ETF		ETF		ETF
Futures contracts		$697,945		$122,352		$3,050,206
Forward exchange contracts		$ —		$ —		$ —

At March 31, 2023, 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

Liabilities

Franklin FTSE Europe Hedged ETF

Foreign exchange contracts

$2,354

$295,253

Franklin FTSE Japan Hedged ETF

Foreign exchange contracts

$—

$247,252



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NOTES TO FINANCIAL STATEMENTS

7. Other Derivative Information (continued)

At March 31, 2023, 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

Financial

of Assets Presented in

Financial

Instruments

Cash

the Statements of

Instruments

Collateral

Net Amount (Not

Assets and Liabilities

Available for Offset

Received^a

less than zero)

Franklin FTSE Europe

Hedged ETF

Counterparty

BOFA

$2,330

$(2,330)

$—

UBSW

(24)

—

Total

$2,354

$(2,354)

$—

At March 31, 2023, 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				Financial
	of Liabilities Presented in		Financial		Instruments			Cash
	the Statements of		Instruments		Collateral			Collateral			Net Amount (Not
		Assets and Liabilities		Available for Offset		Pledged	^a		Pledged	^a		less than zero)

Franklin FTSE Europe
Hedged ETF
Counterparty
BOFA		$ 70,666		$(2,330)		$—			$—			$ 68,336
HSBK		53,130		—		—			—			53,130
UBSW		171,457		(24)		—			—			171,433
Total		$295,253		$(2,354)		$—			$—			$292,899

Franklin FTSE Japan
Hedged ETF
Counterparty
BOFA		$ 61,844		$ —		$—			$—			$ 61,844
HSBK		61,819		—		—			—			61,819
UBSW		123,589		—		—			—			123,589
Total		$247,252		$ —		$—			$—			$247,252

See Note 1(c) regarding derivative financial instruments.



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NOTES TO FINANCIAL STATEMENTS

8. Fair Value Measurements

•

Level 1 – quoted prices in active markets for identical financial instruments

•

Level 2 – other significant observable inputs (including quoted prices for similar financial instruments, interest rates, prepayment speed, credit risk, etc.)

•

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

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

A summary of inputs used as of March 31, 2023, 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	$	30,019,732	$	2,022	$	11,424^c	$	30,033,178

Franklin FTSE Australia ETF

Assets:
Investments in Securities:^a
Equity Investments^b	$	28,942,982	$	—	$	—	$	28,942,982

Other Financial Instruments:
Futures Contracts	$	865	$	—	$	—	$	865

Franklin FTSE Brazil ETF

Assets:
Investments in Securities:^a
Equity Investments^b	$	266,560,670	$	—	$	—	$	266,560,670

Liabilities:
Other Financial Instruments:
Futures Contracts	$	100,113	$	—	$	—	$	100,113

Franklin FTSE Canada ETF

Assets:
Investments in Securities:^a
Equity Investments^b	$	279,121,167	$	—	$	—	$	279,121,167

Other Financial Instruments:
Futures Contracts	$	13,181	$	—	$	—	$	13,181

Franklin FTSE China ETF

Assets:
Investments in Securities:^a
Equity Investments^b	$	114,131,584	$	25,784	$	100,170^c	$	114,257,538

Franklin FTSE Europe ETF

Assets:
Investments in Securities:^a
Equity Investments^b	$	110,175,895	$	—	$	—^c	$	110,175,895

Other Financial Instruments:
Futures Contracts	$	30,814	$	—	$	—	$	30,814



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NOTES TO FINANCIAL STATEMENTS

8. Fair Value Measurements (continued)



	Level 1		Level 2		Level 3		Total

Franklin FTSE Europe Hedged ETF

Assets:
Investments in Securities:^a
Equity Investments^b	$	14,018,999	$	—	$	—^c	$	14,018,999
Short-Term Investments		4,136		—		—		4,136

Total Investments in Securities	$	14,023,135	$	—	$	—	$	14,023,135

Other Financial Instruments:
Forward Exchange Contracts	$	—	$	2,354	$	—	$	2,354
Futures Contracts		2,816		—		—		2,816

Total Other Financial Instruments	$	2,816	$	2,354	$	—	$	5,170

Liabilities:
Other Financial Instruments:
Forward Exchange Contracts	$	—	$	295,253	$	—	$	295,253

Franklin FTSE France ETF

Assets:
Investments in Securities:^a
Equity Investments^b	$	6,047,577	$	—	$	—	$	6,047,577

Other Financial Instruments:
Futures Contracts	$	2,470	$	—	$	—	$	2,470

Franklin FTSE Germany ETF

Assets:
Investments in Securities:^a
Equity Investments^b	$	17,683,414	$	—	$	—	$	17,683,414

Franklin FTSE Hong Kong ETF

Assets:
Investments in Securities:^a
Equity Investments^b	$	17,034,504	$	—	$	—	$	17,034,504
Other Financial Instruments:
Futures Contracts	$	1,064	$	—	$	—	$	1,064

Franklin FTSE India ETF

Assets:
Investments in Securities:^a
Equity Investments^b	$	99,072,406	$	—	$	—	$	99,072,406

Franklin FTSE Italy ETF

Assets:
Investments in Securities:^a
Equity Investments^b	$	5,037,427	$	—	$	—	$	5,037,427

Franklin FTSE Japan ETF

Assets:
Investments in Securities:^a
Equity Investments^b	$	988,568,241	$	—	$	—	$	988,568,241
Short-Term Investments		4,417,293		—		—		4,417,293

Total Investments in Securities	$	992,985,534	$	—	$	—	$	992,985,534
Other Financial Instruments:
Futures Contracts	$	162,284	$	—	$	—	$	162,284



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NOTES TO FINANCIAL STATEMENTS

8. Fair Value Measurements (continued)



	Level 1		Level 2		Level 3		Total

Franklin FTSE Japan Hedged ETF

Assets:
Investments in Securities:^a
Equity Investments^b	$	13,036,206	$	—	$	—	$	13,036,206
Short-Term Investments		721		—		—		721

Total Investments in Securities	$	13,036,927	$	—	$	—	$	13,036,927

Other Financial Instruments:
Futures Contracts	$	2,278	$	—	$	—	$	2,278

Liabilities:
Other Financial Instruments:
Forward Exchange Contracts	$	—	$	247,252	$	—	$	247,252

Franklin FTSE Latin America ETF

Assets:
Investments in Securities:^a
Equity Investments^b	$	67,137,485	$	—	$	—	$	67,137,485

Liabilities:
Other Financial Instruments:
Futures Contracts	$	14,879	$	—	$	—	$	14,879

Franklin FTSE Mexico ETF

Assets:
Investments in Securities:^a
Equity Investments^b	$	24,885,047	$	—	$	—	$	24,885,047

Franklin FTSE Saudi Arabia ETF

Assets:
Investments in Securities:^a
Equity Investments^b	$	21,730,478	$	—	$	—	$	21,730,478

Franklin FTSE South Africa ETF

Assets:
Investments in Securities:^a
Equity Investments^b	$	2,242,239	$	—	$	—	$	2,242,239

Franklin FTSE South Korea ETF

Assets:
Investments in Securities:^a
Equity Investments^b	$	290,711,940	$	—	$	—	$	290,711,940

Other Financial Instruments:
Futures Contracts	$	25,029	$	—	$	—	$	25,029

Franklin FTSE Switzerland ETF

Assets:
Investments in Securities:^a
Equity Investments^b	$	49,051,415	$	—	$	—	$	49,051,415

Other Financial Instruments:
Futures Contracts	$	38,313	$	—	$	—	$	38,313

Franklin FTSE Taiwan ETF

Assets:
Investments in Securities:^a
Equity Investments^b	$	136,871,589	$	—	$	—	$	136,871,589



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NOTES TO FINANCIAL STATEMENTS

8. Fair Value Measurements (continued)



	Level 1		Level 2		Level 3		Total

Franklin FTSE United Kingdom ETF

Assets:
Investments in Securities:^a
Equity Investments^b	$	564,026,714	$	—	$	—c	$	564,026,714
Short-Term Investments		10		—		—		10

Total Investments in Securities	$	564,026,724	$	—	$	—	$	564,026,724

Other Financial Instruments:
Futures Contracts	$	27,481	$	—	$	—	$	27,481

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

^bIncludes common and preferred stocks, warrants, as well as other equity investments.

^cIncludes securities determined to have no value at March 31, 2023.

9. New Accounting Pronouncements

10. Subsequent Events

The Funds have evaluated subsequent events through the issuance of these Financial Statements and determined that no events have occurred that require disclosure.

Abbreviations


Selected Portfolio		Counterparty

ADR	American Depositary Receipt	BOFA	Bank of America Corp.
CDI	Clearing House Electronic Subregister System Depositary Interest	HSBK	HSBC Bank PLC
CDI		UBSW	UBS AG
NVDR	Non-Voting Depositary Receipt
REIT	Real Estate Investment Trust
SF	Single Family
SPA	Standby Purchase Agreement
SRF	State Revolving Fund



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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 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 schedules 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 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-two of the funds constituting Franklin Templeton ETF Trust, hereafter collectively referred to as the "Funds") as of March 31, 2023, the related statements of operations for the year ended March 31, 2023, the statements of changes in net assets for each of the two years in the period ended March 31, 2023, 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, 2023, 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, 2023 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 23, 2023

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)

The following tax information for the Funds is required to be furnished to shareholders with respect to the income earned and distributions paid during their fiscal year.

The Funds below hereby report the following amounts, or if subsequently determined to be different, the maximum allowable amounts, for the fiscal year ended March 31, 2023:



	Pursuant to:		Franklin FTSE Asia ex Janpan ETF		Franklin FTSE Australia ETF		Franklin FTSE Brazil ETF			Franklin FTSE Canada ETF
Long-Term Capital Gain Dividends		§852(b)(3)(C)		$ —		$ —		$—			$ —
Qualified Dividend Income (QDI)		§854(b)(1)(B)		$432,488		$1,659,460		$—			$6,243,337
Short-Term Capital Gain Dividends		§871(k)(2)(C)		$ —		$ —		$—			$ —

	Pursuant to:		Franklin FTSE China ETF		Franklin FTSE Europe ETF		Franklin FTSE Europe Hedged ETF			Franklin FTSE France ETF
Long-Term Capital Gain Dividends		§852(b)(3)(C)		$ —		$ —		$1,854,370			$ —
Qualified Dividend Income (QDI)		§854(b)(1)(B)		$1,864,327		$3,315,327		$ 590,158			$228,229
Short-Term Capital Gain Dividends		§871(k)(2)(C)		$ —		$ —		$1,223,776			$ —

	Pursuant to:		Franklin FTSE Germany ETF		Franklin FTSE Hong Kong ETF		Franklin FTSE India ETF			Franklin FTSE Italy ETF
Long-Term Capital Gain Dividends		§852(b)(3)(C)		$ —		$—		$ —			$ —
Qualified Dividend Income (QDI)		§854(b)(1)(B)		$396,209		$—		$797,312	��		$155,960
Short-Term Capital Gain Dividends		§871(k)(2)(C)		$ —		$—		$ —			$ —

	Pursuant to:		Franklin FTSE Japan ETF		Franklin FTSE Japan Hedged ETF		Franklin FTSE Latin America ETF			Franklin FTSE Mexico ETF
Long-Term Capital Gain Dividends		§852(b)(3)(C)		$ —		$3,446,187		$ —			$ —
Qualified Dividend Income (QDI)		§854(b)(1)(B)		$17,494,206		$ 446,213		$519,676			$454,652
Short-Term Capital Gain Dividends		§871(k)(2)(C)		$ —		$2,106,927		$ —			$ —

	Pursuant to:		Franklin FTSE Saudi Arabia ETF		Franklin FTSE South Africa ETF		Franklin FTSE South Korea ETF			Franklin FTSE Switzerland ETF
Long-Term Capital Gain Dividends		§852(b)(3)(C)		$—		$ —		$ —			$ —
Qualified Dividend Income (QDI)		§854(b)(1)(B)		$—		$158,331		$2,388,233			$1,191,933
Short-Term Capital Gain Dividends		§871(k)(2)(C)		$—		$ —		$ —			$ —

					Pursuant to:		Franklin FTSE Taiwan ETF			Franklin FTSE United Kingdom ETF
Long-Term Capital Gain Dividends						§852(b)(3)(C)		$—			$ —
Qualified Dividend Income (QDI)						§854(b)(1)(B)		$—			$20,402,341
Short-Term Capital Gain Dividends						§871(k)(2)(C)		$—			$ —



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Tax information (unaudited) (continued)



	Franklin FTSE Asia ex Janpan ETF		Franklin FTSE Australia ETF		Franklin FTSE Brazil ETF		Franklin FTSE Canada ETF
Foreign Taxes Paid		$154,749		$ 11,667		$ 1,353,900		$1,211,661
Foreign Source Income		$984,149		$1,700,733		$36,993,572		$7,991,293

	Franklin FTSE China ETF		Franklin FTSE Europe ETF		Franklin FTSE Europe Hedged ETF		Franklin FTSE France ETF
Foreign Taxes Paid		$ 199,000		$ 292,678		$ 49,382		$ 1,126
Foreign Source Income		$3,163,497		$3,772,704		$631,757		$261,445

	Franklin FTSE Germany ETF		Franklin FTSE Hong Kong ETF		Franklin FTSE India ETF		Franklin FTSE Italy ETF
Foreign Taxes Paid		$ 71,213		$ 443		$351,881		$ 23,213
Foreign Source Income		$515,557		$518,118		$820,696		$157,311

	Franklin FTSE Japan ETF		Franklin FTSE Japan Hedged ETF		Franklin FTSE Latin America ETF		Franklin FTSE Mexico ETF
Foreign Taxes Paid		$ 2,413,241		$ 52,222		$ 241,585		$ 33,514
Foreign Source Income		$23,596,110		$521,762		$4,206,885		$496,442

	Franklin FTSE Saudi Arabia ETF		Franklin FTSE South Africa ETF		Franklin FTSE South Korea ETF		Franklin FTSE Switzerland ETF
Foreign Taxes Paid		$ 13,295		$ 25,133		$ 501,177		$ 187,623
Foreign Source Income		$270,256		$186,396		$2,990,894		$1,314,229

					Franklin FTSE Taiwan ETF		Franklin FTSE United Kingdom ETF
Foreign Taxes Paid						$ 388,893		$ 14,061
Foreign Source Income						$1,985,202		$20,830,214



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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

AssetMark Financial Holdings, Inc. (investment solutions) (2018-present) and PhonePe (2020-present) (payment and financial services); formerly, Axis Bank (financial) (2013- 2021), FlipKart Limited (2019-2020) (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

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), Citi Group Global Enterprise Payments (financial services); and President, Citi’s Personal Banking and Wealth Management (2009-2011).

Anantha K. Pradeep (1963)

Trustee

Since 2016

None

One Franklin Parkway

San Mateo, CA 94403-1906

Principal Occupation During at Least the Past 5 Years:

Chief Executive Officer, Smilable, Inc. (technology company) (2014-present); Chief Executive Officer, Machine Vantage (technology company) (2018-present); Founder and Managing Partner, Consult Meridian, LLC (consulting company) (2009-present); and formerly, Founder, Board Vantage (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	70	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, of some of the other subsidiaries of Franklin Resources, Inc. and of certain funds in the Franklin Templeton/Legg Mason fund complex; 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 certain funds in the Franklin Templeton/Legg Mason fund complex.

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; Assistant Secretary, Franklin Distributors, LLC; and officer of certain funds in the Franklin Templeton/Legg Mason fund complex.

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 certain funds in the Franklin Templeton/Legg Mason fund complex; and formerly, Vice President, Global Tax (2012-April 2017) and Treasurer/Assistant Treasurer, Franklin Templeton (2009-2017).

Fred Jensen (1963) 620 Eighth Avenue, 47th Floor New York, NY 10018	Chief Compliance Officer	Since 2021	Not Applicable	Not Applicable

Principal Occupation During at Least the Past 5 Years:
Director - Global Compliance of Franklin Templeton; Managing Director of Legg Mason & Co.; Director of Compliance, Legg Mason Office of the Chief Compliance Officer; Chief Compliance Officer, Franklin Advisory Services, LLC; Compliance Officer, Franklin Advisers, Inc.; officer of certain funds in the Franklin Templeton/Legg Mason fund complex; formerly, Chief Compliance Officer of Legg Mason Global Asset Allocation; Chief Compliance Officer, Legg Mason Private Portfolio; Chief Compliance Officer to The Reserves Funds (investment adviser, funds and broker-dealer) and Ambac Financial Group (investment adviser, funds and broker-dealer).

Susan Kerr (1949) 620 Eighth Avenue New York, NY 10018	Vice President - AML Compliance	Since 2021	Not Applicable	Not Applicable

Principal Occupation During at Least the Past 5 Years:
Senior Compliance Analyst, Franklin Templeton; Chief Anti-Money Laundering Compliance Officer, Legg Mason & Co., or its affiliates; Anti Money Laundering Compliance Officer; Senior Compliance Officer, LMIS; and officer of certain funds in the Franklin Templeton/Legg Mason fund complex.

Todd Mathias (1983) One Franklin Parkway, San Mateo, Ca 94403-1906	Vice President	Since March 2022	Not Applicable	Not Applicable

Principal Occupation During at Least the Past 5 Years:
Head of US ETF Product Strategy, Franklin Templeton; and officer of certain funds in the Franklin Templeton/Legg Mason fund complex.



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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.; and officer of certain funds in the Franklin Templeton/Legg Mason fund complex.

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 certain funds in the Franklin Templeton/Legg Mason fund complex.

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:
Senior Associate General Counsel, Franklin Templeton; and officer of certain funds in the Franklin Templeton/Legg Mason fund complex.

Lori A. Weber (1964) 300 S.E. 2nd Street Fort Lauderdale, FL 33301-1923	Vice President and Secretary	Vice President since 2011 and Secretary since 2013	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 certain funds in the Franklin Templeton/Legg Mason fund complex.

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 Schedule of Investments

Premium/Discount Information



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	Annual Report Franklin Templeton ETF Trust

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© 2023 Franklin Templeton Investments. All rights reserved.			ETF5 A 05/23

LOGO

ANNUAL REPORT CLEARBRIDGE SUSTAINABLE INFRASTRUCTURE ETF A Series of Franklin Templeton ETF Trust March 31, 2023



Contents

Annual Report

ClearBridge Sustainable Infrastructure ETF			2

Performance Summary			6

Your Fund’s Expenses			9

Financial Highlights and Schedule of Investment			10

Financial Statements			13

Notes to Financial Statements			16

Report of Independent Registered Public Accounting Firm			22

Tax Information			23

Board Members and Officers			24

Shareholder Information			27

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

ClearBridge Sustainable Infrastructure ETF

This inaugural annual report for ClearBridge Sustainable Infrastructure ETF (the “Fund”) covers the period since the Fund’s inception on December 14, 2022, through March 31, 2023.

Q. What is the Fund’s investment strategy?

A. The Fund seeks total return, consisting of capital appreciation and income. Under normal circumstances, the Fund invests at least 80% of its net assets, plus the amount of borrowings for investment purposes, if any, in securities issued by companies that are engaged in the infrastructure business and that meet the sub-advisor’s sustainability and financial criteria at the time of investment, and other investments with similar economic characteristics.

The Fund seeks to achieve its investment objective by investing in a portfolio of equity securities of infrastructure companies with attractive valuation, distributions and cash flow characteristics that meet the sub-advisor’s sustainability criteria for investment. The Fund invests in equity and equity-related securities of exchange-traded infrastructure companies and may invest in companies of any size and market capitalization, including small and mid-capitalization companies. These issuers may be newer or less seasoned companies, including companies making initial public offerings (IPOs). The Fund’s portfolio is expected to be highly concentrated, with approximately 25 to 50 holdings. The Fund may seek investment opportunities in any foreign country and may invest a significant portion of its assets in foreign securities. The Fund may invest up to 20% of its assets in securities of companies located in countries with developing or emerging markets.

The sub-advisor applies a proprietary screening methodology to develop an investment universe of securities of companies that are engaged in the infrastructure business and meet the Fund’s sustainability and financial criteria. In constructing the Fund’s portfolio, the sub-advisor applies inclusionary liquidity, infrastructure exposure, quality and income screens to the global listed infrastructure investable universe. All eligible companies are then assigned a proprietary rating on a scale of 1-5 with companies assessed at the current point in time as well as expectations of any improvement (e.g., decarbonization opportunities) or deterioration (e.g., climate-related risk exposures) across a five-year investment horizon based on a company’s planned

actions, strategies and engagement as evaluated by the sub-advisor. The sub-advisor’s proprietary environmental, social and/or governance (ESG) ratings system assesses whether a company focuses on ESG factors, integrates ESG factors into its business model, and measures such efforts. Specifically, the sub-advisor assesses various climate related risks and opportunities as part of its bottom-up stock selection process. ESG efforts are measured using the sub-advisor’s proprietary scorecard, which assesses a range of data including adverse impacts and includes ongoing issuer engagement. The sub-advisor uses various quantitative and qualitative measures to analyze global listed equity securities of infrastructure companies. In identifying companies that meet the Fund’s sustainability criteria, the sub-advisor assesses ESG factors through a proprietary analytical framework that is applied to each potential investment. In constructing the Fund’s portfolio, each infrastructure sub-industry is assessed against a weighting of factors relevant to its business operations. This analysis includes such factors as: the company’s environmental practices including green-house gas emissions, carbon emissions, energy efficiency initiatives, supply chain, pollution/hazardous waste policies, water usage, and climate change policies; social factors such as a company’s approach to community relations, occupational safety and health and the management of its human capital; the governance structure of the company including alignment with management, the board and other major shareholders of the company, board effectiveness and quality, operating excellence, risk control, diversity, remuneration practices, shareholder rights, accounting standards, and cybersecurity/data protection. The materiality and relevance of these factors will vary by company and sub-industry. The sub-advisor uses ESG factors as a tool to assess sustainability in the context of an individual company’s circumstances. In addition, the Fund seeks to avoid investing in companies that are assigned to the following Global Industry Classification Standard (GICS) sub-industries: Oil & Gas Storage & Transportation; Gas Utilities; and Airport Services (excluding Air Navigation Service Providers). The sub-advisor may modify this list of prohibited investments, or any particular exclusion, at any time, without shareholder approval or notice. The sustainability criteria described above apply to 100% of the Fund’s portfolio, excluding cash and cash equivalents held for cash management. The sub-advisor also focuses on companies that it believes are

The dollar value, number of shares or principal amount, and names of all portfolio holdings are listed in the Fund’s Schedule of Investments (SOI). The SOI begins on page 11.



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attractively valued relative to other companies in the same industry or market. The sub-advisor’s value analysis includes consideration of a company’s dividends, cash flows, capital growth projections, capital expenditures, balance sheet and capital requirements. The sub-advisor primarily selects stocks based on their bottom-up risk and return characteristics. A top-down approach is then applied to ensure that the portfolio is not overly exposed to a particular geography, sector or other macro factors.

Top 10 Sectors/Industries

3/31/23



	% of Total Net Assets
Electric Utilities		36.1%
Transportation Infrastructure		12.1%
Water Utilities		11.3%
Ground Transportation		11.1%
Independent Power Producers & Energy Traders		9.6%
Multi-Utilities		8.3%
Diversified REITs		4.1%
Construction & Engineering		3.3%
Diversified Telecommunication Services		2.9%

Q. What were the overall market conditions during the Fund’s reporting period?

A. Amid a growth push during the period, the performance of infrastructure equities generally trailed global equities as a whole. Infrastructure trends that closed out 2022 continued in 2023’s first quarter, with energy prices stabilizing and even declining across Europe and the rest of the globe amid a warmer-than-expected winter. This kept pressure off both utilities as well as households, while a continuing re-emergence of mobility and travel lifted the airports and toll roads sectors. Bond yields too came off recent highs, supporting longer-duration assets such as renewables, which performed well. Lower yields are also positive for communication towers, though yields are still elevated, and some broad market pressure on real estate—tower companies are generally structured as real estate investment trusts (REITs)—was still being felt during the period.

The rail and energy infrastructure industries underperformed. A weak outlook for the rail industry amid growing recession expectations, continued service challenges and fuel and

labor cost increases were headwinds. Energy infrastructure trailed the broader market as 2022’s tight price environment loosened somewhat with abnormally warm weather.

Q. How did we respond to these changing market conditions?

A. We maintained our defensive positioning as we believe that the impacts of tightened financial conditions will eventually impact the economy and ultimately corporate earnings. In fact, we started to see some weakness in corporate earnings from higher interest costs. We think that the U.S. Federal Reserve (Fed) and many other central banks around the world will have to maintain their hawkish positions and have started to accept the recessionary risks as increasingly likely but necessary to combat stubbornly high levels of inflation. The banking collapses from Silicon Valley Bank and Credit Suisse seem to have added a very credible datapoint toward a recessionary environment, paired with the Fed’s need to continue its monetary tightening policy direction.

We are still trying to find areas where a COVID-19 recovery is still happening, and we found such exposure through a new position in West Japan Railway. It is our belief that much of this recovery is due to domestic reopening in Japan, but now there is an added benefit from the Chinese reopening as well. Renewable energy’s recent struggles may be coming to an end as we approach the end of the monetary tightening cycle. We continue to be constructive on the long-term outlook, and purchased Danish renewable energy company Orsted during the period, while adding to existing positions in Auren Energia and NextEra Energy.

Performance Overview

During the period since the Fund’s inception on December 14, 2022, through March 31, 2023, the Fund posted cumulative total returns of +1.20% based on market price and +0.88% based on net asset value (NAV).¹ In comparison, the Fund’s primary benchmark, the FTSE Global Core Infrastructure 50/50 – Net Tax, which is comprised of equity securities of infrastructure companies as defined by FTSE Russell, posted a -2.28% cumulative total return for the same period.² The Fund’s secondary benchmark, the OECD G7 CPI + 5.5%, which measures the change in the prices of consumer goods and services in G7 countries, posted a +2.24% cumulative total return for the same period.² You can find more of the Fund’s performance data in the Performance Summary beginning on page 6.

1. Prior to the Fund’s listing on December 16, 2022, the Fund’s NAV performance is used as a proxy for the Fund’s market price returns.

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 Tax returns include income net of tax withholding when dividends are paid.



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CLEARBRIDGE SUSTAINABLE INFRASTRUCTURE ETF

Q. What were the leading contributors to performance?

A. On a regional basis, the main contributors to performance were Western Europe and Latin America. On a sub-sector basis, the main contributors to performance were electric and toll roads. On an individual stock basis, the main contributors to performance were Portuguese renewables utility Energias de Portugal, Brazilian toll road operator CCR, and Spanish electric utility Iberdrola.

Q. What were the leading detractors from performance?

A. On a regional basis, the main detractors from performance were the U.S. & Canada and Asia Pacific Developed. On a sub-sector basis, the main detractors from performance were rail and other infrastructure. On an individual stock basis, the main detractors from performance were U.S. renewables company NextEra Energy Partners, U.S. rail operator CSX, and U.S. water utility American Water Works Company.

Q. Were there any significant changes to the Fund during the reporting period?

A. During the period, we initiated new positions in Danish renewables company Orsted and Japanese rail operator West Japan Railway. We exited French toll road operator Vinci.


Top 10 Holdings

3/31/23

Company *Sector/Industry, Country*	% of Total Net Assets
EDP - Energias de Portugal SA Electric Utilities, Portugal		5.0%
Terna - Rete Elettrica Nazionale Electric Utilities, Italy		4.8%
SSE PLC Electric Utilities, United Kingdom		4.7%
NextEra Energy, Inc. Electric Utilities, United States		4.5%
Iberdrola SA Electric Utilities, Spain		4.5%
Public Service Enterprise Group, Inc. Multi-Utilities, United States		4.4%
Hydro One Ltd. Electric Utilities, Canada		4.1%
Transurban Group Transportation Infrastructure, Australia		4.0%
National Grid PLC Multi-Utilities, United Kingdom		3.9%
Getlink SE Transportation Infrastructure, France		3.5%


Top 10 Countries

3/31/23

	% of Total Net Assets
United States		25.7%
United Kingdom		17.0%
Spain		12.4%
Japan		8.4%
Italy		7.6%
Canada		6.8%
Brazil		5.5%
Portugal		5.0%
Australia		4.0%
France		3.5%

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



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CLEARBRIDGE SUSTAINABLE INFRASTRUCTURE ETF

Thank you for your participation in ClearBridge Sustainable Infrastructure ETF. We look forward to serving your future investment needs.

Charles Hamieh

Shane Hurst

Nick Langley

Portfolio Management Team



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CLEARBRIDGE SUSTAINABLE INFRASTRUCTURE ETF

Performance Summary as of March 31, 2023

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 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 (12/16/22), 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 3/31/23¹

Cumulative Total Return

Average Annual Total Return

Based on
NAV²

Based on
market price³

Based on
NAV²

Based on
market price³

Since Inception (12/14/22)

+0.88%

+1.20%

+3.03%

+4.15%


Distribution Rate	30-Day Standardized Yield	⁴
0.00%	2.20%

See page 8 for Performance Summary footnotes.



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CLEARBRIDGE SUSTAINABLE INFRASTRUCTURE ETF

PERFORMANCE SUMMARY

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

12/14/22–3/31/23

LOGO

See page 8 for Performance Summary footnotes.



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CLEARBRIDGE SUSTAINABLE INFRASTRUCTURE ETF

PERFORMANCE SUMMARY

Total Annual Operating Expenses⁶

0.59%

All investments involve risks, including possible loss of principal. The Fund is newly organized, with a limited history of operations. Equity securities are subject to price fluctuation and possible loss of principal. Companies in the infrastructure industry may be subject to a variety of factors that could adversely affect their business or operations, including high interest costs in connection with capital intensive construction programs, high degrees of leverage, costs associated with governmental, environmental and other regulations, the effects of economic slowdowns, increased competition from other providers of services, uncertainties concerning costs, the level of government spending on infrastructure projects, and other factors. International investments are subject to special risks including currency fluctuations, social, economic and political uncertainties, which could increase volatility. Because this Fund expects to hold a concentrated portfolio of securities, and invests primarily in a certain industry, it has increased vulnerability to market volatility. The sub-advisor’s environmental social and governance (ESG) strategies may limit the types and number of investments available and, as a result, may forego favorable market opportunities or underperform strategies that are not subject to such criteria. The managers’ environmental social and governance (ESG) strategies may limit the types and number of investments available and, as a result, may forego favorable market opportunities or underperform strategies that are not subject to such criteria. There is no guarantee that the strategy’s ESG directives will be successful or will result in better performance. The Fund may invest in real estate investment trusts (REITs), which are closely linked to the performance of the real estate markets. REITs are subject to illiquidity, credit and interest rate risks, as well as risks associated with small-and mid-cap investments. Investments in master limited partnerships (MLPs) include the risks of declines in energy and commodity prices, decreases in energy demand, adverse weather conditions, natural or other disasters, changes in government regulation, and changes in tax laws, and other risks of the MLP and energy sector. 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 total annual operating expenses are as of the Fund’s prospectus available at the time of publication. Actual expenses may be higher and may impact portfolio returns.

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

3. Assumes reinvestment of distributions based on market price.

4. 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.

5. Source: FactSet. The FTSE Global Core Infrastructure 50/50 Index – Net Tax is comprised of equity securities of infrastructure companies as defined by FTSE Russell to include companies that derive a minimum of 65% of their revenue from core infrastructure activities. The index is readjusted semiannually to adjust the exposure to certain infrastructure sub-sectors and limit company weights to 5%. Net Tax returns include income net of tax withholding when dividends are paid. The OECD G7 CPI +5.5% Index is estimated as a series of summary measures of the period-to-period proportional change in the prices of a fixed set of consumer goods and services of constant quantity and characteristics, acquired, used or paid for by the reference population. The OECD publishes the data on a 3-4 month lag basis. Therefore, the index being used is comparing the current month returns for the fund against a reference Benchmark that uses a previous index return (using past performance calculations).

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.

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



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CLEARBRIDGE SUSTAINABLE INFRASTRUCTURE 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 12/14/2022		Ending Account Value 3/31/23		Expenses Paid During Period 12/14/2022–3/31/23^1,2		Ending Account Value 3/31/23		Expenses Paid During Period 12/14/2022–3/31/23^1,2		Net Annualized Expense Ratio²
	$1,000.00		$1,008.80		$1.74		$1,012.93		$1.74		0.59%

2. Reflects expenses after fee waivers and expense reimbursements.



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FRANKLIN TEMPLETON ETF TRUST

Financial Highlights

ClearBridge Sustainable Infrastructure ETF



	Period Ended March 31, 2023^a

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

Net asset value, beginning of period		$25.00


Income from investment operations^b:

Net investment income^c		0.13

Net realized and unrealized gains (losses)		0.09


Total from investment operations		0.22


Net asset value, end of period		$25.22


Total return^d		0.88%

Ratios to average net assets^e

Total expenses		0.59%

Net investment income		1.82%

Supplemental data

Net assets, end of period (000’s)		$2,522

Portfolio turnover rate^f		6.33%^g

^aFor the period December 14, 2022 (commencement of operations) to March 31, 2023.

^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: 6.33%



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

FRANKLIN TEMPLETON ETF TRUST

Schedule of Investments, March 31, 2023

ClearBridge Sustainable Infrastructure ETF



		Industry		Shares		Value
	Common Stocks 98.9%
	Australia 4.0%
	Transurban Group		Transportation Infrastructure		10,632	$	101,186


	Brazil 5.5%
	Auren Energia SA		Independent Power Producers & Energy Traders		20,741		60,011
	CCR SA		Transportation Infrastructure		17,546		44,295
	Neoenergia SA		Electric Utilities		11,474		33,945

							138,251


	Canada 6.8%
	Brookfield Renewable Corp., Class A		Independent Power Producers & Energy Traders		1,906		66,615
a	Hydro One Ltd.		Electric Utilities		3,660		104,065

							170,680


	Denmark 3.0%
a	Orsted AS		Electric Utilities		880		74,876


	France 3.5%
	Getlink SE		Transportation Infrastructure		5,436		89,711


	Italy 7.6%
a	Enav SpA		Transportation Infrastructure		16,623		69,640
	Terna - Rete Elettrica Nazionale		Electric Utilities		14,718		120,983

							190,623


	Japan 8.4%
	Central Japan Railway Co.		Ground Transportation		594		70,562
	East Japan Railway Co.		Ground Transportation		1,507		83,056
	West Japan Railway Co.		Ground Transportation		1,442		59,125

							212,743


	Portugal 5.0%
	EDP - Energias de Portugal SA		Electric Utilities		23,236		126,628


	Spain 12.4%
a,b	Cellnex Telecom SA		Diversified Telecommunication Services		1,893		73,546
	Ferrovial SA		Construction & Engineering		2,799		82,380
	Iberdrola SA		Electric Utilities		9,053		112,962
	Red Electrica Corp. SA		Electric Utilities		2,486		43,755

							312,643


	United Kingdom 17.0%
	National Grid PLC		Multi-Utilities		7,248		98,266
	Pennon Group PLC		Water Utilities		6,476		69,984
	Severn Trent PLC		Water Utilities		2,268		80,735
	SSE PLC		Electric Utilities		5,366		119,625
	United Utilities Group PLC		Water Utilities		4,544		59,555

							428,165


	United States 25.7%
	American Tower Corp.		Diversified REITs		296		60,485
	American Water Works Co., Inc.		Water Utilities		514		75,296
	Clearway Energy, Inc., Class C		Independent Power Producers & Energy Traders		2,066		64,728
	Crown Castle, Inc.		Diversified REITs		330		44,167
	CSX Corp.		Ground Transportation		2,276		68,143
	Exelon Corp.		Electric Utilities		1,398		58,562
	NextEra Energy Partners LP		Independent Power Producers & Energy Traders		830		50,423
	NextEra Energy, Inc.		Electric Utilities		1,485		114,464



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FRANKLIN TEMPLETON ETF TRUST

SCHEDULE OF INVESTMENT

ClearBridge Sustainable Infrastructure ETF (continued)



	Industry		Shares		Value
Common Stocks (continued)
United States (continued)
Public Service Enterprise Group, Inc.		Multi-Utilities		1,780	$	111,161

						647,429

Total Investments (Cost $2,481,429) 98.9%						2,492,935
Other Assets, less Liabilities 1.1%						28,986

Net Assets 100.0%					$	2,521,921

^bNon-income producing.



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FRANKLIN TEMPLETON ETF TRUST

FINANCIAL STATEMENTS

Statement of Assets and Liabilities

March 31, 2023

ClearBridge Sustainable Infrastructure ETF


Assets:
Investments in securities:
Cost – Unaffiliated issuers			$2,481,429
Value – Unaffiliated issuers			$2,492,935
Cash			27,031
Foreign currency, at value (cost $253)			252
Receivables:
Dividends			2,914

Total assets			2,523,132


Liabilities:
Payables:
Management fees			1,211

Total liabilities			1,211

Net assets, at value			$2,521,921


Net assets consist of:
Paid-in capital			$2,500,000
Total distributable earnings (loss)			21,921

Net assets, at value			$2,521,921


Shares outstanding			100,000

Net asset value per share			$ 25.22



franklintempleton.com	The accompanying notes are an integral part of these financial statements. \| Annual Report	13

FRANKLIN TEMPLETON ETF TRUST

FINANCIAL STATEMENTS

Statement of Operations

for the period ended March 31, 2023^a

ClearBridge Sustainable Infrastructure ETF


Investment income:
Dividends: (net of foreign taxes)^b
Unaffiliated issuers	$15,106
Non-cash dividends	1,979
Interest:
Unaffiliated issuers	348

Total investment income	17,433

Expenses:
Management fees (Note 3a)	4,240

Total expenses	4,240

Net investment income	13,193

Realized and unrealized gains (losses):
Net realized gain (loss) from:
Investments:
Unaffiliated issuers	(2,670	)
Foreign currency transactions	(138	)

Net realized gain (loss)	(2,808	)

Net change in unrealized appreciation (depreciation) on:
Investments:
Unaffiliated issuers	11,506
Translation of other assets and liabilities denominated in foreign currencies	30

Net change in unrealized appreciation (depreciation)	11,536

Net realized and unrealized gain (loss)	8,728

Net increase (decrease) in net assets resulting from operations	$21,921


^aFor the period December 14, 2022 (commencement of operations) to March 31, 2023.

^bForeign taxes withheld on dividends	$845



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FRANKLIN TEMPLETON ETF TRUST

FINANCIAL STATEMENTS

Statement of Changes in Net Assets

ClearBridge Sustainable Infrastructure ETF



	Period Ended March 31, 2023^a
Increase (decrease) in net assets:
Operations:
Net investment income		$ 13,193
Net realized loss		(2,808	)
Net change in unrealized appreciation (depreciation)		11,536

Net increase (decrease) in net assets resulting from operations		21,921

Capital share transactions: (Note 2)		2,500,000

Net increase (decrease) in net assets		2,521,921
Net assets:
Beginning of period		—

End of period		$2,521,921

^aFor the period December 14, 2022 (commencement of operations) to March 31, 2023.



franklintempleton.com	The accompanying notes are an integral part of these financial statements. \| Annual Report	15

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-eight separate funds, one of which is included in this report (Fund). The Fund follow the accounting and reporting guidance in Financial Accounting Standards Board (“FASB”) Accounting Standard Codification Topic 946, Financial Services - Investment Companies (“ASC 946”), and applies the specialized accounting and reporting guidance in U.S. Generally Accepted Accounting Principles (U.S. GAAP), including, but not limited to, ASC 946. The Fund is an exchange traded fund (ETF) and seek to provide the investment results that closely correspond, before fees and expenses, to the performance of Fund corresponding underlying index.

The following summarizes the Fund’s significant accounting policies.

a. Financial Instrument Valuation

The Fund’s investments in financial instruments are carried at fair value daily. Fair value is the price that would be received to sell an asset or paid to transfer a liability in an orderly transaction between market participants on the measurement date. The Fund calculates the net asset value (NAV) per share each business day as of 4 p.m. Eastern time or the regularly scheduled close of the New York Stock Exchange (NYSE), whichever is earlier. Under compliance policies and procedures approved by the Fund’s Board of Trustees (the Board), the Board has designated the Fund’s investment manager as the valuation designee and has responsibility for oversight of valuation. The investment manager is assisted by the Fund’s administrator in performing this responsibility, including leading the cross-functional Valuation Committee (VC).

The Fund may utilize independent pricing services, quotations from securities and financial instrument dealers, and other market sources to determine fair value.

day that the value of the security is determined. Over-the-counter (OTC) securities are valued within the range of the most recent quoted bid and ask prices. Securities that trade in multiple markets or on multiple exchanges are valued according to the broadest and most representative market. Certain equity securities are valued based upon fundamental characteristics or relationships to similar securities.

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

Trading in securities on foreign securities stock exchanges and OTC markets may be completed before 4 p.m. Eastern time. In addition, trading in certain foreign markets may not take place on Fund business day. Occasionally, events occur between the time at which trading in a foreign security is completed and 4 p.m. Eastern time that might call into question the reliability of the value of a portfolio security held by the Fund. As a result, differences may arise between the value of the Fund’s portfolio securities as determined at the foreign market close and the latest indications of value at 4 p.m. Eastern time. In order to minimize the potential for these differences, an independent pricing service may be used to adjust the Fund’s portfolio securities to the latest indications of fair value at 4 p.m. Eastern time on March 31,



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FRANKLIN TEMPLETON ETF TRUST

NOTES TO FINANCIAL STATEMENTS

1. Organization and Significant Accounting

Policies (continued)

a. Financial Instrument Valuation (continued)

2023. At March 31, 2023, certain securities may have been fair valued using these procedures, in which case the securities were categorized as Level 2 inputs within the fair value hierarchy (referred to as “market level fair value”).

b. Foreign Currency Translation

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

The Fund 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.

foreign denominated assets and liabilities other than investments in securities held at the end of the reporting period.

c. Derivative Financial Instruments

During the period ended March 31, 2023, the Fund did not invest in derivative instruments.

d. Income and Deferred Taxes

It is Fund’s policy to qualify as a regulated investment company under the Internal Revenue Code. The Fund intends to distribute to shareholders substantially all of its taxable income and net realized gains to relieve it from federal income and excise taxes. As a result, no provision for U.S. federal income taxes is required.

The Fund may be subject to foreign taxation related to income received, capital gains on the sale of securities and certain foreign currency transactions in the foreign jurisdictions in which the Fund invests. Foreign taxes, if any, are recorded based on the tax regulations and rates that exist in the foreign markets in which the Fund invest. When a capital gain tax is determined to apply, Fund records an estimated deferred tax liability in an amount that would be payable if the securities were disposed of on the valuation date.

The Fund may recognize an income tax liability related to its uncertain tax positions under U.S. GAAP when the uncertain tax position has a less than 50% probability that it will be sustained upon examination by the tax authorities based on its technical merits. As of March 31, 2023, Fund has determined that no tax liability is required in its financial statements related to uncertain tax positions for any open tax years (or expected to be taken in future tax years). Open tax years are those that remain subject to examination and are based on the statute of limitations in each jurisdiction in which the Fund invests.

e. Security Transactions, Investment Income, Expenses and Distributions



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FRANKLIN TEMPLETON ETF TRUST

NOTES TO FINANCIAL STATEMENTS

1. Organization and Significant Accounting

Policies (continued)

e. Security Transactions, Investment Income, Expenses and Distributions (continued)

tax regulations (tax basis) and may differ from earnings recorded in accordance with U.S. GAAP. These differences may be permanent or temporary. Permanent differences are reclassified among capital accounts to reflect their tax character. These reclassifications have no impact on net assets or the results of operations. Temporary differences are not reclassified, as they may reverse in subsequent periods.

Common expenses incurred by the Trust are allocated to the Fund based on the ratio of net assets of Fund to the combined net assets of the Trust. Certain Fund specific expenses are allocated directly to the Fund that incurred the expense. These expenses are paid by the Fund or by the investment manager, as applicable, according to the terms of the unified management fee agreement.

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 Fund, enters into contracts with service providers that contain general indemnification clauses. The Trust’s maximum exposure under these arrangements is unknown as this would involve future claims that may be made against the Trust that have not yet occurred. Currently, the Trust expects the risk of loss to be remote.

2. Shares of Beneficial Interest

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

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

At March 31, 2023, there were an unlimited number of shares authorized (without par value). Transactions in the Fund’s shares were as follows:


	Period Ended March 31, 2023^a

	Shares		Amount

Shares sold		100,000		$2,500,000

Net increase (decrease)		100,000		$2,500,000

^aFor the period December 14, 2022 (commencement of operations) to March 31, 2023.



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FRANKLIN TEMPLETON ETF TRUST

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 Fund 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 Distributors, LLC (Distributors)		Principal underwriter

a. Management fees

The Fund pay a unified management fee to Advisers whereby Advisers has agreed to reimburse the Fund’s acquired fund fees and expenses (if any) and pay all of the ordinary operating expenses of the Fund, including custody, transfer agency, and Trustee fees and expenses, among others, but excluding payments under the Fund’s Rule 12b-1 plan (if any), brokerage expenses (including any costs incidental to transactions in portfolio securities or instruments), taxes, interest (including borrowing costs and dividend expenses on securities sold short and overdraft charges), litigation expenses (including litigation to which the Trust or a Fund may be a party and indemnification of the Trustees and officers with respect thereto), and other non-routine or extraordinary expenses. For the period December 14, 2022 through March 31, 2023, the annualized fee rate was 0.59% of the average daily net assets of the fund. The fee is calculated daily and paid monthly according to the terms of the management agreement.

b. Administrative Fees

c. Other Affiliated Transactions

At March 31, 2023, the shares of ClearBridge Sustainable Infrastructure ETF were owned by the following entity:


Funds	Shares		Percentage of Outstanding Shares^a
ClearBridge Sustainable Infrastructure ETF
Franklin Resources Inc.		50,000		50.0%

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

4. Income Taxes

For tax purposes, capital losses may be carried over to offset future capital gains, if any. At March 31, 2023, the capital loss carryforwards were as follows:


	Period Ended March 31, 2023
Capital loss carryforwards not subject to expiration:
Short term		$2,666

Total capital loss carryforwards		$2,666



franklintempleton.com	Annual Report	19

FRANKLIN TEMPLETON ETF TRUST

NOTES TO FINANCIAL STATEMENTS

4. Income Taxes (continued)

At March 31, 2023, the cost of investments and net unrealized appreciation (depreciation) for income tax purposes were as follows:


	Period Ended March 31, 2023
Cost of investments		$2,480,578


Unrealized appreciation		$ 75,464
Unrealized depreciation		(63,107	)

Net unrealized appreciation (depreciation)		$ 12,357


Distributable earnings – undistributed ordinary income		$ 12,200

Differences between income and/or capital gains as determined on a book basis and a tax basis are primarily due to differing treatments of real estate investment trust shares.

5. Investment Transactions

Purchases and sales of investments (excluding short term securities and in-kind transactions, if any) for the period ended March 31, 2023, $317,485 and $150,271, respectively.

In-kind transactions associated with creation and redemptions for the period ended March 31, 2023, $2,314,516 and $-, respectively.

6. Fair Value Measurements

The Fund follow a fair value hierarchy that distinguishes between market data obtained from independent sources (observable inputs) and the Fund’s own market assumptions (unobservable inputs). These inputs are used in determining the value of the Fund’s financial instruments and are summarized in the following fair value hierarchy:

•

Level 1 – quoted prices in active markets for identical financial instruments

•

Level 2 – other significant observable inputs (including quoted prices for similar financial instruments, interest rates, prepayment speed, credit risk, etc.)

•

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

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

A summary of inputs used as of March 31, 2023, in valuing the Fund’s assets and liabilities carried at fair value, is as follows:

Level 1

Level 2

Level 3

Total

ClearBridge Sustainable Infrastructure ETF

Assets:

Investments in Securities:^a

Equity Investments^b

2,492,935

$ —

$2,492,935

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

^bIncludes common stocks.



20	Annual Report	franklintempleton.com

FRANKLIN TEMPLETON ETF TRUST

NOTES TO FINANCIAL STATEMENTS

7. New Accounting Pronouncements

8. Subsequent Events

The Fund has evaluated subsequent events through the issuance of these Financial Statements and determined that no events have occurred that require disclosure.



franklintempleton.com	Annual Report	21

FRANKLIN TEMPLETON ETF TRUST

Report of Independent Registered Public Accounting Firm

To the Board of Trustees of Franklin Templeton ETF Trust and Shareholders of ClearBridge Sustainable Infrastructure ETF

Opinion on the Financial Statements

We have audited the accompanying statements of assets and liabilities, including the schedule of investments, of ClearBridge Sustainable Infrastructure ETF (one of the funds constituting Franklin Templeton ETF Trust, hereafter collectively referred to as the “Fund”) as of March 31, 2023, the related statements of operations, changes in net assets including the related notes, and the financial highlights for the period December 14, 2022 (commencement of operations) through March 31, 2023 (collectively referred to as the “financial statements”). In our opinion, the financial statements present fairly, in all material respects, the financial position of the Fund as of March 31, 2023, and the results of its operations, the changes in its net assets and the financial highlights for the period December 14, 2022 (commencement of operations) through March 31, 2023, in conformity with accounting principles generally accepted in the United States of America.

Basis for Opinion

These financial statements are the responsibility of the Fund’s management. Our responsibility is to express an opinion on the Fund’s 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 Fund in accordance with the U.S. federal securities laws and the applicable rules and regulations of the Securities and Exchange Commission and the PCAOB.

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, 2023 by correspondence with the custodian. We believe that our audits provide a reasonable basis for our opinion.

PricewaterhouseCoopers LLP

San Francisco, California

May 23, 2023

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



22	Annual Report	franklintempleton.com

Tax information (unaudited)

The following tax information for the Fund is required to be furnished to shareholders with respect to the income earned and distributions paid during their fiscal year.

The Fund hereby report the following amounts, or if subsequently determined to be different, the maximum allowable amounts, for the period ended March 31, 2023:


	Pursuant to:
Dividends Received Deduction (DRD)		§854(b)(1)(A)	$ 3,573
Qualified Dividend Income (QDI)		§854(b)(1)(B)	$15,745
Qualified Business Income Dividends (QBI)		§199A	$ 793



franklintempleton.com	Annual Report	23

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	59	AssetMark Financial Holdings, Inc. (investment solutions) (2018-present) and PhonePe (2020-present) (payment and financial services); formerly, Axis Bank (financial) (2013- 2021), FlipKart Limited (2019-2020) (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)	Trustee	Since 2020	59	S&P Global, Inc. (financial
One Franklin Parkway San Mateo, CA 94403-1906				information services) (February 2022), Borg Warner (automotive) (2018-present), LegalShield (consumer services) (2020-present); and formerly, IHS Markit (information services) (2015-2022), 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)	Trustee	Since 2016	59	None
One Franklin Parkway
San Mateo, CA 94403-1906

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).



24	Annual Report	franklintempleton.com

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	70	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, of some of the other subsidiaries of Franklin Resources, Inc. and of certain funds in the Franklin Templeton/Legg Mason fund complex; 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 certain funds in the Franklin Templeton/Legg Mason fund complex.

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; Assistant Secretary, Franklin Distributors, LLC; and officer of certain funds in the Franklin Templeton/Legg Mason fund complex.

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 certain funds in the Franklin Templeton/Legg Mason fund complex; and formerly, Vice President, Global Tax (2012-April 2017) and Treasurer/Assistant Treasurer, Franklin Templeton (2009-2017).

Fred Jensen (1963) 620 Eighth Avenue, 47th Floor New York, NY 10018	Chief Compliance Officer	Since 2021	Not Applicable	Not Applicable

Principal Occupation During at Least the Past 5 Years:
Director - Global Compliance of Franklin Templeton; Managing Director of Legg Mason & Co.; Director of Compliance, Legg Mason Office of the Chief Compliance Officer; Chief Compliance Officer, Franklin Advisory Services, LLC; Compliance Officer, Franklin Advisers, Inc.; officer of certain funds in the Franklin Templeton/Legg Mason fund complex; formerly, Chief Compliance Officer of Legg Mason Global Asset Allocation; Chief Compliance Officer, Legg Mason Private Portfolio; Chief Compliance Officer to The Reserves Funds (investment adviser, funds and broker-dealer) and Ambac Financial Group (investment adviser, funds and broker-dealer).

Susan Kerr (1949) 620 Eighth Avenue New York, NY 10018	Vice President - AML Compliance	Since 2021	Not Applicable	Not Applicable

Principal Occupation During at Least the Past 5 Years:
Senior Compliance Analyst, Franklin Templeton; Chief Anti-Money Laundering Compliance Officer, Legg Mason & Co., or its affiliates; Anti Money Laundering Compliance Officer; Senior Compliance Officer, LMIS; and officer of certain funds in the Franklin Templeton/Legg Mason fund complex.

Todd Mathias (1983) One Franklin Parkway, San Mateo, Ca 94403-1906	Vice President	Since March 2022	Not Applicable	Not Applicable

Principal Occupation During at Least the Past 5 Years:
Head of US ETF Product Strategy, Franklin Templeton; and officer of certain funds in the Franklin Templeton/Legg Mason fund complex.



franklintempleton.com	Annual Report	25

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.; and officer of certain funds in the Franklin Templeton/Legg Mason fund complex.

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 certain funds in the Franklin Templeton/Legg Mason fund complex.

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:
Senior Associate General Counsel, Franklin Templeton; and officer of certain funds in the Franklin Templeton/Legg Mason fund complex.

Lori A. Weber (1964) 300 S.E. 2nd Street Fort Lauderdale, FL 33301-1923	Vice President and Secretary	Vice President since 2011 and Secretary since 2013	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 certain funds in the Franklin Templeton/Legg Mason fund complex.

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.



26	Annual Report	franklintempleton.com

Shareholder Information

Board Approval of Investment Management Agreements

FRANKLIN TEMPLETON ETF TRUST

Clearbridge Sustainable Infrastructure ETF (Fund)

At a meeting held on November 18, 2022 (Meeting), the Board of Trustees (Board) of Franklin Templeton ETF Trust (Trust), including a majority of the trustees who are not “interested persons” as defined in the Investment Company Act of 1940 (Independent Trustees), reviewed and approved (i) an investment management agreement between Franklin Advisers, Inc. (FAV) and the Trust; and (ii) an investment sub-advisory agreement between FAV and ClearBridge Investments (North America) Pty Limited (ClearBridge), on behalf of the Fund, for an initial two-year period (each a Management Agreement). The Independent Trustees received advice from and met separately with Independent Trustee counsel in considering whether to approve each Management Agreement. FAV and ClearBridge are each referred to herein as a Manager.

In considering the approval of each Management Agreement, the Board reviewed and considered information provided by each Manager at the Meeting and throughout the year at meetings of the Board and its committees. The Board reviewed and considered all of the factors it deemed relevant in approving each Management Agreement, including, but not limited to: (i) the nature, extent and quality of the services to be provided by each Manager; (ii) the costs of the services to be provided by each Manager; and (iii) the extent to which economies of scale may be realized as the Fund grows. The Board also reviewed and considered the form of each Management Agreement and the terms of each Management Agreement which were explained at the Meeting, noting that FAV would provide general investment management and administrative services and that the Fund would operate under a unified management fee structure consistent with the current management fee structure for most of the existing Franklin Templeton (FT) exchange-traded funds.

In approving each Management Agreement, the Board, including a majority of the Independent Trustees, determined that the terms of the proposed Management Agreement are fair and reasonable and that such Management Agreement is in the 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 Managers and their affiliates to the Fund and its shareholders. This information included, among other things, the Fund’s proposed investment strategies and the ability of the applicable Managers to implement such investment strategies; the qualifications, background and experience of the investment personnel that will be responsible for the day-to-day portfolio management of the Fund; each Manager’s experience as the Manager of other funds and accounts, including other series of the Trust and other funds in the FT family of funds; each Manager’s strength and reputation within the industry; the personnel, operations, financial condition, and investment management capabilities, methodologies and resources of each Manager; and each Manager’s compliance capabilities, as demonstrated by, among other things, its policies and procedures reasonably designed to prevent violations of the Federal Securities Laws (as defined in Rule 38a-1 of the Investment Company Act of 1940). Following consideration of such information, the Board was satisfied with the nature, extent and quality of services to be provided by each Manager and its affiliates to the Fund and its shareholders.

Fund Performance

The Board noted that, as the Fund had not yet commenced investment operations, there was no investment performance for the Fund. The Board also considered the proposed performance benchmark for the Fund and how such benchmark would be utilized to measure performance of each Manager.

Comparative Fees and Expenses

The Board reviewed and considered information regarding the Fund’s proposed total expense ratio, noting that the Fund will pay a Unified Fee (as defined below). The Board considered the proposed total expense ratio and, separately, the proposed contractual unified fee rate, without the effect of fee waivers, if any (Management Rate) of the Fund in comparison to the median expense ratio and median Management Rate, respectively, of other exchange-traded funds deemed comparable to and with a similar expense structure as the Fund (Expense Group) as selected by Broadridge Financial Solutions, Inc. (Broadridge), an independent provider of investment company data. Broadridge fee and expense data is based upon information taken from each fund’s most recent annual report (excluding the Fund), which reflects historical asset levels that may be quite different from those currently existing, particularly in a period of market volatility. While recognizing such inherent



franklintempleton.com	Annual Report	27

limitation and the fact that expense ratios and Management Rates generally increase as assets decline and decrease as assets grow, the Board believed the independent analysis conducted by Broadridge to be an appropriate measure of comparative fees and expenses. The Broadridge Management Rate includes administrative charges. The Board received a description of the methodology used by Broadridge to select the exchange-traded funds included in an Expense Group.

The Expense Group for the Fund was comprised of actively managed exchange-traded funds, which included the Fund, one other global infrastructure fund, one multi-cap core fund, one industrials fund, four global multi-cap core funds, one global science/technology fund, one global multi-cap growth fund and one alternative energy fund. The Board noted that the proposed Management Rate and total expense ratio for the Fund was below the median of its Expense Group. The Board also noted that the Fund proposed to implement a unified management fee (Unified Fee). The Board further noted that pursuant to the Unified Fee arrangement FAV would reimburse the Fund for all of its acquired fund fees and expenses (if any) and pay all of the ordinary operating expenses of the Fund, except for (i) the Fund’s Unified Fee, (ii) payments under the Fund’s Rule 12b-1 plan (if any), (iii) brokerage expenses, (iv) taxes, (v) interest (including borrowing costs and dividend expenses on securities sold short and overdraft charges), (vi) litigation expenses (including litigation to which the Trust or the Fund may be a party and indemnification of the Trustees and officers with respect thereto), and (vii) other non-routine or extraordinary expenses. The Board also noted that ClearBridge is paid by FAV out of the Unified Fee FAV receives from the Fund and that the allocation of the fee between FAV and ClearBridge reflected the services to be provided by ClearBridge to the Fund. After consideration of the above, the Board concluded that the Management Rate to be charged to the Fund and the sub-advisory fee to be paid to ClearBridge are reasonable.

Profitability

The Board noted that the Managers (and their affiliates) could not report any financial results from their relationships with the Fund because the Fund has not yet commenced investment operations, and thus, the Board could not evaluate each Manager’s (or its affiliates’) profitability with respect to the Fund.

Economies of Scale

The Board reviewed and considered the extent to which each Manager may realize economies of scale, if any, as the

Fund grows larger and whether the Fund’s management fee structure reflects any economies of scale for the benefit of shareholders. With respect to possible economies of scale in the future, the Board noted that it is not anticipated that the Fund will generate significant, if any, profit for the Managers and/or their affiliates for some time.

Conclusion

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

Proxy Voting Policies and Procedures

Quarterly Schedule of Investments

Premium/Discount Information



28	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
ClearBridge Sustainable Infrastructure ETF
Investment Manager	Distributor	Investor Services
Franklin Advisory	Franklin Distributors, LLC	Transfer Agent
Services, LLC	(800) DIAL BEN^®/342-5236	State Street Bank and
	franklintempleton.com	Trust Company
		1 Heritage Drive
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www.franklintempleton.com
© 2023 Franklin Templeton Investments. All rights reserved.		INFR A 05/23

LOGO

ANNUAL REPORT BRANDYWINEGLOBAL -DYNAMIC US LARGE CAP VALUE ETF A Series of Franklin Templeton ETF Trust March 31, 2023

Contents


Annual Report

BrandywineGLOBAL - Dynamic US Large Cap Value ETF			3

Fund Overview			4

Performance Summary			7

Your Fund’s Expenses			10

Financial Highlights and Schedule of Investments			11

Financial Statements			16

Notes to Financial Statements			19

Report of Independent Registered Public Accounting Firm			27

Tax Information			28

Board Members and Officers			29

Shareholder Information			32

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



2	Annual Report	franklintempleton.com

ANNUAL REPORT

BrandywineGLOBAL - Dynamic US Large Cap Value ETF

As approved by the Board of Trustees at a meeting held on November 18, 2022, the fiscal year-end for Brandywine-GLOBAL – Dynamic US Large Cap Value ETF (the “Fund”) was changed to March 31. Effective after the market close on October 28, 2022, the Fund’s predecessor mutual fund, BrandywineGLOBAL – Dynamic US Large Cap Value Fund, reorganized into this Fund (the “Reorganization”). The Fund has an identical investment goal and substantially similar investment strategies as the predecessor mutual fund. This annual report for the Fund covers the shortened fiscal year for the transitional six-month period between the predecessor mutual fund’s prior fiscal year-end, September 30, 2022, and March 31, 2023.

Q. What is the Fund’s investment strategy?

A. The Fund seeks to provide long-term capital appreciation by quantitatively investing in U.S. equities. The portfolio managers use a proprietary quantitative model to identify investments for the Fund. To identify investments, the model evaluates multiple quantitative characteristics for each potential stock investment and applies specific rules to select stocks for investment based on these characteristics. The sub-advisor’s quantitative model seeks to identify stocks that appear to have upside potential and relatively low downside risk relative to the Russell 1000^® Value Index. The quantitative model analyzes factors regarding a stock’s valuation and quality, as well as market sentiment toward a stock, to select stocks that may have the potential to outperform the Russell 1000^® Value Index. The Fund seeks to do this by purchasing stocks that the sub-advisor’s proprietary quantitative model identifies as having low valuations and appropriate quantitative characteristics for the market environment. The quantitative factors are selected based on prevailing market conditions and include, among other things, earnings quality and profitability, investor sentiment, and management’s utilization of capital.

The Fund will typically invest in a stock when it meets the large capitalization threshold and its historical price-to-earnings or price-to-book ratios relative to the large-cap segment of the U.S. equity market indicate a potentially attractive valuation and the quantitative model ranks it with a high multi-factor score. The Fund will typically sell a stock when its multi-factor score reaches a sell target set by the quantitative model, its historical price-to-earnings and price-to-book ratios relative to the large-cap segment of the

U.S. equity market, exceed the upper thresholds, or its market capitalization falls below the Fund’s large capitalization definition.

The Fund will only invest in U.S. traded companies, which may include companies incorporated outside the U.S. which conduct a significant portion of their activities in the U.S. and are considered U.S. companies in the Russell U.S. indices. Under normal market conditions, the Fund invests at least 80% of its net assets in issuers domiciled, or having their principal activities, in the U.S., at the time of investment or other instruments with similar economic characteristics. In addition, under normal market conditions, the Fund invests at least 80% of its net assets in equity securities of large capitalization companies or other instruments with similar economic characteristics.

Q. What were the overall market conditions during the Fund’s reporting period?

A. In the beginning of the reporting period, broad equity markets were in the midst of a bear market, with declines for many indices exceeding 20% for the calendar year as of September 30, 2022. During the six-month period ending March 31, 2023, market sentiment vacillated between hard landing and recession fears and optimism for a pivot by the U.S. Federal Reserve (Fed) from monetary tightening and a softer landing. A tight labor market continued to keep pressure on the Fed to combat persistently high inflation, resulting in the Fed raising the upper bound of the target rate to 5.00% from 3.25% at the beginning of the period. Interest rates rose in the beginning of the period and bond markets flashed recession warnings as yield curves inverted. The more policy-sensitive two-year Treasury yield climbed again in February 2023 amid higher-than-expected inflation, resulting in yield curves becoming more deeply inverted. Suddenly, the shock of the second largest bank failure in U.S. history altered the landscape dramatically in March. Stocks sold off and bond yields fell sharply in the wake of the unfolding banking crisis. This resulted in substantial underperformance of financial-heavy value benchmarks, which up until that point were outperforming for the period. Growth-oriented stocks, such as those in the technology sector, were beneficiaries of the sudden decline in interest rates and consequently growth stocks posted higher returns than value stocks for the six-month period. As the period drew to a close, markets rallied as the banking crisis showed

The dollar value, number of shares or principal amount, and names of all portfolio holdings are listed in the Fund’s Schedule of Investments (SOI). The SOI begins on page 12.



franklintempleton.com	Annual Report	3

signs of stabilizing and expectations grew that the Fed may be near the end of its tightening campaign. The economy showed signs of weakening toward the end of the period, but consumers continued to be quite resilient, and the labor market has remained robust. The unemployment rate ended the period as it began at 3.5%, and we believe the labor market is not yet indicating a recession in the near term.

Q. How did we respond to these changing market conditions?

A. Market conditions over momentary periods of time do not alter our approach. Our investment strategy is based on the consistent application of our investment philosophy, which relies on long term equity factors and market relationships while avoiding emotional reactions to near term events. We respond to volatile environments by the consistent, disciplined execution of our investment strategy. This process has been back tested over 40 years of varied conditions, and while we recognize it will not excel in every situation, we believe it has the potential to outperform over many 3-to-5-year periods. We are aware of the macroeconomic implications of events for specific securities, but do not alter our primary focus on value, quality, and favorable sentiment factors.

Geographic Composition*

3/31/23



	% of Total Net Assets

North America		98.1%

Short-Term Investments & Other Net Assets		1.9%

*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.

Top 10 Sectors/Industries

3/31/23



	% of Total Net Assets

Insurance		16.2%

Banks		7.9%

Specialty Retail		6.7%

Oil, Gas & Consumable Fuels		6.6%

Ground Transportation		6.2%

Health Care Providers & Services		4.5%

Consumer Staples Distribution & Retail		3.9%

Consumer Finance		3.9%

Chemicals		3.2%

Pharmaceuticals		3.2%

Performance Overview

During the six-month period under review the Fund posted cumulative total returns of +13.84% based on market price and +14.03% based on net asset value (NAV).¹ In comparison, the Russell 1000^® Value Index, which measures the performance of Russell 1000^® Index companies with relatively lower forecasted growth rates, posted a +13.55% cumulative total return for the same period.² Also in comparison, the Standard & Poor’s^® 500 (S&P 500^®), which is designed to measure total U.S. equity market performance, posted a +15.62% cumulative total return.²

You can find more of the Fund’s performance data in the Performance Summary beginning on page 7.

1. The Fund adopted the performance of the predecessor mutual fund as the result of the Reorganization. Prior to the Reorganization, the Fund had not yet commenced operations. The returns shown for periods ended on or prior to October 28, 2022, are those of the predecessor mutual fund. The predecessor mutual fund’s performance is represented by the performance of the predecessor mutual fund’s Class IS Shares. Prior to the Fund’s listing on October 31, 2022, the NAV performance of the Class IS Shares of the predecessor mutual fund is used as a proxy for the Fund’s market price returns. Had the predecessor mutual fund been structured as an ETF, its performance may have differed.

2. Source: Morningstar.

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.

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



4	Annual Report	franklintempleton.com

Q. What were the leading contributors to performance?

A. Our overweighted position and positive stock selection in metals and mining in the materials sector were our largest contributors to performance. Consumer discretionary was our second largest sector-based contributor, driven by an overweight position of homebuilders and positive stock selection in specialty retail. From a factor perspective, the 12-month change in shares outstanding was effective as our higher exposure to companies buying back shares and lower weighting to share issuers added to performance.

Q. What were the leading detractors from performance?

A. Financials were the largest source of underperformance, primarily from an overweight of insurance and negative stock selection from diversified banks. These industries underperformed late in the period in the wake of the banking crisis. The strategy also did not keep pace with above benchmark returns in the food, beverage and tobacco industry within the consumer staples sector. On a factor basis, a higher exposure to companies that have decreased their book value detracted from performance. In addition, being underweight companies that underperformed during the 12 months prior to the period was not effective, as these companies rebounded strongly during the six-month period under review.

Q. Were there any significant changes to the Fund during the reporting period?

A. Although there was not a regime shift over the last six months, there were notable sector changes. The largest increase was in the industrial sector, which went from a large underweight to a substantial overweight position, primarily from adding to transportation and capital goods. The strategy also added to exploration and production as well as refining and marketing, but remains slightly underweight the energy sector. The largest sector decline resulted from sales in semiconductors and semiconductor equipment and technology hardware and equipment within the information technology sector, leading to an underweight position at the end of the period. The strategy also sold out of home-building stocks during the period, which drove the decline in the consumer discretionary sector, but the strategy remains overweighted to the overall sector.

Top 10 Holdings

3/31/23



Company *Sector/Industry, Country*	% of Total Net Assets

Chubb Ltd. Insurance, United States		3.9%

Union Pacific Corp. Ground Transportation, United States		3.7%

Wells Fargo & Co. Banks, United States		3.2%

Amgen, Inc. Biotechnology, United States		3.0%

Lockheed Martin Corp. Aerospace & Defense, United States		3.0%

Kroger Co. Consumer Staples Distribution & Retail, United States		2.7%

3M Co. Industrial Conglomerates, United States		2.6%

Caterpillar, Inc. Machinery, United States		2.5%

KLA Corp. Semiconductors & Semiconductor Equipment, United States		2.3%

Cigna Group Health Care Providers & Services, United States		2.2%

Thank you for your participation in BrandywineGLOBAL - Dynamic US Large Cap Value ETF. We look forward to

serving your future investment needs.

Michael Fleisher

Henry Otto

Steven Tonkovich

Portfolio Management Team



franklintempleton.com	Annual Report	5



6	Annual Report	franklintempleton.com

BRANDYWINEGLOBAL - DYNAMIC US LARGE CAP VALUE ETF

Performance Summary as of March 31, 2023

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 (October 31, 2022), 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 3/31/23¹

Cumulative Total Return²

Average Annual Total Return²

Based on
NAV³

Based on
market price⁴

Based on
NAV³

Based on
market price⁴

6-Month

+14.03%

+13.84%

+14.03%

+13.84%

1-Year

-4.57%

-4.73%

-4.57%

-4.73%

3-Year

+75.76%

+75.47%

+20.68%

+20.62%

Since Inception (10/31/14)

+2.08%

+13.84%

+5.09%

+4.67%

See page 9 for Performance Summary footnotes.



franklintempleton.com	Annual Report	7

BRANDYWINEGLOBAL - DYNAMIC US LARGE CAP VALUE 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 indexes includes 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.

3/31/13–3/31/23

LOGO

See page 9 for Performance Summary footnotes.



8	Annual Report	franklintempleton.com

BRANDYWINEGLOBAL - DYNAMIC US LARGE CAP VALUE ETF

PERFORMANCE SUMMARY

Distributions (6/1/22–3/31/23)



Net Investment Income	Long-Term Capital Gain		Total
$0.183100		$1.319900		$1.503000

Total Annual Operating Expenses⁶

0.49%

All investments involve risks, including possible loss of principal. Equity securities are subject to price fluctuation and possible loss of principal. The value approach to investing involves the risk that stocks may remain undervalued. Value stocks may underperform the overall equity market while the market concentrates on growth stocks. The sub-advisor’s investment style may become out of favor and/or the sub-advisor’s selection process may prove incorrect, which may have a negative impact on the Fund’s performance. To the extent the Fund holds a concentrated portfolio of securities, or invests in certain regions or industries, it is subject to increased volatility. 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 total annual operating expenses are as of the Fund’s prospectus available at the time of publication. Actual expenses may be higher and may impact portfolio returns.

2. The Fund adopted the performance of the predecessor mutual fund as the result of the Reorganization. Prior to the Reorganization, the Fund had not yet commenced operations. 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. The returns shown for periods ended on or prior to October 28, 2022, are those of the predecessor mutual fund (except as noted below). The predecessor mutual fund’s performance is represented by the performance of the predecessor mutual fund’s Class IS Shares. Prior to the Fund’s listing on October 31, 2022, the NAV performance of the Class IS Shares of the predecessor mutual fund is used as a proxy for the Fund’s market price returns.

The predecessor mutual fund was the successor to an unregistered private fund (the “predecessor private fund” and, together with the predecessor mutual fund, the “predecessor funds”), as described in greater detail below. Performance prior to October 31, 2014, is that of the predecessor private fund. Had the predecessor funds been structured as an ETF, their performance may have differed.

The performance prior to the predecessor mutual fund’s inception is that of the predecessor private fund. On October 31, 2014, the predecessor private fund transferred its assets to the predecessor mutual fund in exchange for the predecessor mutual fund’s Class IS shares. The investment policies, objectives, guidelines and restrictions of the predecessor mutual fund were in all material respects equivalent to those of the predecessor private fund. In addition, the predecessor private fund’s portfolio managers were the portfolio managers of the predecessor mutual fund. As a mutual fund registered under the Investment Company Act of 1940 (1940 Act), the predecessor mutual fund was subject to certain restrictions under the 1940 Act and the Internal Revenue Code of 1986, as amended (Code) to which the predecessor private fund was not subject. Had the predecessor private fund been registered under the 1940 Act and been subject to the provisions of the 1940 Act and the Code, its investment performance could have been adversely affected, but these restrictions were not expected to have a material effect on the predecessor mutual fund’s investment program. The performance information for the predecessor private fund reflects the gross expenses of the predecessor private fund adjusted to reflect the higher fees and expenses of Class IS shares of the predecessor mutual fund. The performance is shown net of an annual management fee of 0.55% and other expenses of 0.10% which reflects the application of the predecessor mutual fund’s Class IS shares’ expense limitation agreement. If the expense limitation agreement were not applicable, expenses would have been higher and performance lower.

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

4. Assumes reinvestment of distributions based on market price.

5. Source: FactSet. The Russell 1000^® Value Index is market capitalization weighted and measures the performance of those Russell 1000^® Index companies with relatively lower price-to-book ratios and lower forecasted growth rates. The S&P 500^® is a market capitalization-weighted index of 500 stocks designed to measure total U.S. equity market performance.

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.

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



franklintempleton.com	Annual Report	9

BRANDYWINEGLOBAL - DYNAMIC US LARGE CAP VALUE 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 10/1/22		Ending Account Value 3/31/23		Expenses Paid During Period 10/1/22–3/31/23¹		Ending Account Value 3/31/23		Expenses Paid During Period 10/1/22–3/31/23¹		Net Annualized Expense Ratio
	$1,000.00	$	1,140.30	$	3.26	$	1,021.89	$	3.07		0.61	%



10	Annual Report	franklintempleton.com

FRANKLIN TEMPLETON ETF TRUST

Financial Highlights

BrandywineGLOBAL - Dynamic US Large Cap Value ETF^a



	Period Ended March 31,			Year Ended September 30,

	2023^b			2022			2021			2020			2019			2018

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

Net asset value, beginning of period		$11.36			$15.45			$11.49			$11.77			$13.04			$11.72

Income from investment operations^c:

Net investment income^d		0.14			0.17			0.19			0.20			0.22			0.17

Net realized and unrealized gains (losses)		1.49			(1.87	)		4.44			0.02			(0.31	)		1.51

Total from investment operations		1.63			(1.70	)		4.63			0.22			(0.09	)		1.68

Less distributions from:

Net investment income		(0.18	)		(0.20	)		(0.17	)		(0.18	)		(0.20	)		(0.11	)

Net realized gains		(1.32	)		(2.19	)		(0.50	)		(0.32	)		(0.98	)		(0.25	)

Total distributions		(1.50	)		(2.39	)		(0.67	)		(0.50	)		(1.18	)		(0.36	)

Net asset value, end of period		$11.49			$11.36			$15.45			$11.49			$11.77			$13.04

Total return^e,f		14.03%			(13.03)%			41.75%			1.66%			0.01%			14.51%

Ratios to average net assets^g

Expenses before waiver and payments by affiliates		0.65%			0.67%			0.67%			0.71%^h			0.72%^h			0.72%^h

Expenses net of waiver and payments by affiliates		0.61%			0.65%			0.65%			0.65%^h			0.65%^h			0.65%^h

Net investment income		2.40%			1.24%			1.37%			1.75%			1.88%			1.37%

Supplemental data

Net assets, end of period (000’s)		$158,053			$155,901			$207,109			$169,544			$167,688			$156,361

Portfolio turnover rateⁱ		52.48%^j			124.00%			83.00%			141.00%			126.00%			91.00%

^bFor the period October 1, 2022 through March 31, 2023.

^dBased on average daily shares outstanding.

^eThe Fund adopted the performance of the predecessor mutual fund as the result of the Reorganization. Prior to the Reorganization, the Fund had not yet commenced operations. The returns shown for periods ending on or prior to October 28, 2022, are those of the predecessor mutual fund. The predecessor mutual fund’s performance is represented by the performance of the predecessor mutual fund’s Class IS Shares. Had the predecessor mutual ^fund been structured as an ETF, its performance may have differed.

^fTotal 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.

^gRatios are annualized for periods less than one year.

^hReflects recapture of expenses waived/reimbursed from prior fiscal years.

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

^jPortfolio turnover rate excluding cash creations was as follows: 52.48%



franklintempleton.com	The accompanying notes are an integral part of these financial statements. \| Annual Report	11

FRANKLIN TEMPLETON ETF TRUST

Schedule of Investments, March 31, 2023

BrandywineGLOBAL - Dynamic US Large Cap Value ETF



		Country		Shares		Value

	Common Stocks 98.1%
	Aerospace & Defense 3.0%
	Lockheed Martin Corp.		United States		9,911	$	4,685,227

	Air Freight & Logistics 2.2%
	CH Robinson Worldwide, Inc.		United States		7,220		717,451
	Expeditors International of Washington, Inc.		United States		2,521		277,613
	FedEx Corp.		United States		10,581		2,417,653

							3,412,717

	Banks 7.9%
	BOK Financial Corp.		United States		3,098		261,502
	Comerica, Inc.		United States		9,964		432,637
	Commerce Bancshares, Inc.		United States		8,388		489,440
	Cullen/Frost Bankers, Inc.		United States		2,980		313,913
	Fifth Third Bancorp		United States		52,483		1,398,147
	Hancock Whitney Corp.		United States		2,310		84,084
	KeyCorp		United States		62,709		785,117
	Popular, Inc.		Puerto Rico		5,605		321,783
	Regions Financial Corp.		United States		75,791		1,406,681
	Synovus Financial Corp.		United States		12,220		376,743
	Truist Financial Corp.		United States		30,075		1,025,557
	UMB Financial Corp.		United States		2,743		158,326
	Wells Fargo & Co.		United States		136,314		5,095,417
	Zions Bancorp NA		United States		11,434		342,220

							12,491,567

	Biotechnology 3.0%
	Amgen, Inc.		United States		19,585		4,734,674

	Broadline Retail 1.5%
	Dillard’s, Inc., Class A		United States		236		72,613
	Target Corp.		United States		14,348		2,376,459

							2,449,072

	Building Products 1.3%
a	Builders FirstSource, Inc.		United States		21,004		1,864,735
	Fortune Brands Innovations, Inc.		United States		3,676		215,892

							2,080,627

	Capital Markets 2.4%
	Affiliated Managers Group, Inc.		United States		827		117,781
	Ameriprise Financial, Inc.		United States		9,018		2,764,017
	Blackstone, Inc.		United States		8,257		725,295
	Lazard Ltd., Class A		United States		6,406		212,103

							3,819,196

	Chemicals 3.2%
	Chemours Co.		United States		3,453		103,383
	Eastman Chemical Co.		United States		8,782		740,674
	Huntsman Corp.		United States		26,911		736,285
	LyondellBasell Industries NV, Class A		United States		24,297		2,281,245
	Mosaic Co.		United States		15,831		726,326
	Olin Corp.		United States		8,269		458,930

							5,046,843

	Communications Equipment 1.1%
	Cisco Systems, Inc.		United States		34,065		1,780,748

	Construction Materials 0.4%
	Eagle Materials, Inc.		United States		4,844		710,857



12	Annual Report	franklintempleton.com

FRANKLIN TEMPLETON ETF TRUST

SCHEDULE OF INVESTMENTS

BrandywineGLOBAL - Dynamic US Large Cap Value ETF (continued)



		Country		Shares		Value

	Common Stocks (continued)
	Consumer Finance 3.9%
	Capital One Financial Corp.		United States		25,625	$	2,464,100
a	Credit Acceptance Corp.		United States		1,076		469,179
	Discover Financial Services		United States		18,326		1,811,342
	OneMain Holdings, Inc.		United States		6,707		248,696
	Synchrony Financial		United States		38,179		1,110,245

							6,103,562

	Consumer Staples Distribution & Retail 3.9%
	Albertsons Cos., Inc., Class A		United States		15,595		324,064
	Kroger Co.		United States		85,131		4,202,917
	Walmart, Inc.		United States		10,922		1,610,449

							6,137,430

	Containers & Packaging 1.2%
	Amcor PLC		United States		69,767		793,948
	Berry Global Group, Inc.		United States		2,823		166,275
	International Paper Co.		United States		24,468		882,316

							1,842,539

	Distributors 1.3%
	LKQ Corp.		United States		36,323		2,061,694

	Diversified Consumer Services 0.8%
	Service Corp. International		United States		19,061		1,311,016

	Electric Utilities 2.1%
	Duke Energy Corp.		United States		6,314		609,112
	Exelon Corp.		United States		52,033		2,179,662
	NextEra Energy, Inc.		United States		7,286		561,605

							3,350,379

	Electrical Equipment 0.1%
	Acuity Brands, Inc.		United States		919		167,929

	Electronic Equipment, Instruments & Components 1.1%
a	Arrow Electronics, Inc.		United States		4,765		595,006
	Corning, Inc.		United States		34,144		1,204,600

							1,799,606

	Financial Services 0.2%
	Essent Group Ltd.		United States		6,839		273,902

	Food Products 0.4%
	Mondelez International, Inc., Class A		United States		5,815		405,422
a	Pilgrim’s Pride Corp.		United States		11,826		274,127

							679,549

	Ground Transportation 6.2%
	CSX Corp.		United States		96,755		2,896,845
	Norfolk Southern Corp.		United States		5,303		1,124,236
	Union Pacific Corp.		United States		28,720		5,780,187

							9,801,268

	Health Care Providers & Services 4.5%
	Cigna Group		United States		13,546		3,461,409
	CVS Health Corp.		United States		7,837		582,368
a	DaVita, Inc.		United States		11,710		949,798
	Quest Diagnostics, Inc.		United States		14,650		2,072,682

							7,066,257



franklintempleton.com	Annual Report	13

FRANKLIN TEMPLETON ETF TRUST

SCHEDULE OF INVESTMENTS

BrandywineGLOBAL - Dynamic US Large Cap Value ETF (continued)



`		Country		Shares		Value

	Common Stocks (continued)
	Household Durables 0.1%
	Leggett & Platt, Inc.		United States		5,540	$	176,615

	Household Products 1.1%
	Procter & Gamble Co.		United States		11,289		1,678,561

	Industrial Conglomerates 2.6%
	3M Co.		United States		39,773		4,180,540

	Insurance 16.2%
	Aflac, Inc.		United States		52,834		3,408,850
	American Financial Group, Inc.		United States		7,141		867,631
	American International Group, Inc.		United States		63,387		3,192,169
	Assurant, Inc.		United States		1,510		181,306
	Chubb Ltd.		United States		31,611		6,138,224
	CNA Financial Corp.		United States		21,226		828,451
	Fidelity National Financial, Inc.		United States		23,129		807,896
	Hartford Financial Services Group, Inc.		United States		26,975		1,879,888
	Loews Corp.		United States		14,729		854,577
	Old Republic International Corp.		United States		25,596		639,132
	Principal Financial Group, Inc.		United States		20,739		1,541,322
	Reinsurance Group of America, Inc.		United States		1,548		205,512
	RLI Corp.		United States		2,100		279,111
	Travelers Cos., Inc.		United States		19,781		3,390,661
	Unum Group		United States		14,228		562,860
	W R Berkley Corp.		United States		12,627		786,157

							25,563,747

	IT Services 0.6%
a	FleetCor Technologies, Inc.		United States		4,214		888,522

	Leisure Products 0.3%
	Polaris, Inc.		United States		4,226		467,522

	Machinery 2.7%
	Caterpillar, Inc.		United States		17,420		3,986,393
	Crane Holdings Co.		United States		2,783		315,870

							4,302,263

	Media 2.8%
a	Charter Communications, Inc., Class A		United States		564		201,692
	Nexstar Media Group, Inc.		United States		4,739		818,236
	Omnicom Group, Inc.		United States		26,438		2,494,161
a	Walt Disney Co.		United States		9,189		920,094

							4,434,183

	Oil, Gas & Consumable Fuels 6.6%
	Chevron Corp.		United States		4,214		687,556
	ConocoPhillips		United States		4,949		490,990
	Coterra Energy, Inc., Class A		United States		12,549		307,953
	Exxon Mobil Corp.		United States		7,588		832,100
	Marathon Oil Corp.		United States		32,593		780,928
	Marathon Petroleum Corp.		United States		24,100		3,249,403
	Pioneer Natural Resources Co.		United States		15,882		3,243,740
	Williams Cos., Inc.		United States		28,549		852,473

							10,445,143

	Paper & Forest Products 0.2%
	Louisiana-Pacific Corp.		United States		5,356		290,349



14	Annual Report	franklintempleton.com

FRANKLIN TEMPLETON ETF TRUST

SCHEDULE OF INVESTMENTS

BrandywineGLOBAL - Dynamic US Large Cap Value ETF (continued)



		Country		Shares		Value

	Common Stocks (continued)
	Pharmaceuticals 3.2%
	Bristol-Myers Squibb Co.		United States		11,500	$	797,065
	Johnson & Johnson		United States		13,941		2,160,855
	Merck & Co., Inc.		United States		7,325		779,307
	Pfizer, Inc.		United States		30,967		1,263,453

							5,000,680

	Professional Services 0.2%
	ManpowerGroup, Inc.		United States		2,875		237,274
a	TriNet Group, Inc.		United States		1,391		112,128

							349,402

	Semiconductors & Semiconductor Equipment 2.6%
	KLA Corp.		United States		8,979		3,584,147
	Teradyne, Inc.		United States		4,476		481,215

							4,065,362

	Specialty Retail 6.7%
	Advance Auto Parts, Inc.		United States		7,325		890,793
a	AutoNation, Inc.		United States		7,601		1,021,270
	Best Buy Co., Inc.		United States		15,188		1,188,765
	Dick’s Sporting Goods, Inc.		United States		7,233		1,026,290
	Murphy USA, Inc.		United States		2,822		728,217
	Penske Automotive Group, Inc.		United States		8,861		1,256,579
a	Ulta Beauty, Inc.		United States		6,209		3,388,065
	Williams-Sonoma, Inc.		United States		8,782		1,068,418

							10,568,397

	Textiles, Apparel & Luxury Goods 0.5%
a	Capri Holdings Ltd.		United States		6,078		285,666
	Tapestry, Inc.		United States		13,467		580,562

							866,228

	Total Common Stocks (Cost $151,940,360)						155,084,173

	Total Investments before Short-Term Investments (Cost $151,940,360)						155,084,173


	Short-Term Investments 1.8%
	Money Market Funds 1.8%
b	State Street Institutional U.S. Government Money Market Fund, 4.70%		United States		2,837,064		2,837,064

	Total Short-Term Investments (Cost $2,837,064)						2,837,064

	Total Investments (Cost $154,777,424) 99.9%						157,921,237
	Other Assets, less Liabilities 0.1%						131,504

	Net Assets 100.0%					$	158,052,741

^aNon-income producing.

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



franklintempleton.com	The accompanying notes are an integral part of these financial statements. \| Annual Report	15

FRANKLIN TEMPLETON ETF TRUST

FINANCIAL STATEMENTS

Statement of Assets and Liabilities

March 31, 2023

BrandywineGLOBAL - Dynamic US Large Cap Value ETF



Assets:

Investments in securities:
Cost – Unaffiliated issuers	$	154,777,424
Value – Unaffiliated issuers⁺	$	157,921,237

Receivables:
Dividends and interest		221,136

Total assets		158,142,373


Liabilities:

Payables:
Management fees		66,206

Accrued expenses and other liabilities		23,426

Total liabilities		89,632

Net assets, at value	$	158,052,741


Net assets consist of:

Paid-in capital	$	158,290,644

Total distributable earnings (loss)		(237,903	)

Net assets, at value	$	158,052,741


Shares outstanding		13,752,953


Net asset value per share	$	11.49



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

FRANKLIN TEMPLETON ETF TRUST

FINANCIAL STATEMENTS

Statement of Operations

For the period ended March 31, 2023 and the year ended September 30, 2022

BrandywineGLOBAL - Dynamic US Large Cap Value ETF^a



	2023†			2022

Investment income:

Dividends: (net of foreign taxes)^b

Unaffiliated issuers	$	2,432,774		$	4,349,518

Non-Controlled affiliates		—			44,599

Interest:

Unaffiliated issuers		101,330			—

Total investment income		2,534,104			4,394,117

Expenses:

Management fees (Note 3a)		498,408			1,275,842

Registration and filing fees		27,037			81,508

Fund accounting fees		5,782			69,605

Professional fees		2,886			70,736

Transfer agent fees		2,847			35,788

Distribution and service fees		2,561			52,912

Reports to shareholders		1,492			17,055

Trustee fees		723			18,096

Custodian fees		83			1,261

Other		1,855			12,142

Total expenses		543,674			1,634,945

Expenses waived/paid by affiliates (Note 3c)		(27,988	)		(46,697	)

Net expenses		515,686			1,588,248

Net investment income		2,018,418			2,805,869

Realized and unrealized gains (losses):

Net realized gain (loss) from:

Investments:

Unaffiliated issuers		(327,510	)		16,810,000

In-kind redemptions		11,162,020			—

Net realized gain (loss)		10,834,510			16,810,000

Net change in unrealized appreciation (depreciation) on:

Investments:

Unaffiliated issuers		11,214,241			(49,039,398	)

Net change in unrealized appreciation (depreciation)		11,214,241			(49,039,398	)

Net realized and unrealized gain (loss)		22,048,751			(32,229,398	)

Net increase (decrease) in net assets resulting from operations	$	24,067,169		$	(29,423,529	)


^bForeign taxes withheld on dividends		$	584			$	1,191

^†For the period October 1, 2022 through March 31, 2023.



franklintempleton.com	The accompanying notes are an integral part of these financial statements. \| Annual Report	17

FRANKLIN TEMPLETON ETF TRUST

FINANCIAL STATEMENTS

Statements of Changes in Net Assets

BrandywineGLOBAL - Dynamic US Large Cap Value ETF^a



	Period Ended March 31, 2023†			Year Ended September 30, 2022			Year Ended September 30, 2021

Increase (decrease) in net assets:

Operations:

Net investment income		$ 2,018,418			$ 2,805,869			$ 2,961,771

Net realized gain		10,834,510			16,810,000			32,207,663

Net change in unrealized appreciation (depreciation)		11,214,241			(49,039,398	)		37,367,443

Total Operations:		24,067,169			(29,423,529	)		72,536,877

Distributions to shareholders (Note 1e)		(20,520,894	)		(35,713,355	)		(10,154,684	)

Capital share transactions: (Note 2)		(26,987,678	)		20,691,101			(13,382,931	)

Net increase (decrease) in net assets		(23,441,403	)		(44,445,783	)		48,999,262

Net assets:

Beginning of period		181,494,144			225,939,927			176,940,665

End of period		$158,052,741			$181,494,144			$225,939,927

^†For the period October 1, 2022 through March 31, 2023.



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FRANKLIN TEMPLETON ETF TRUST

Notes to Financial Statements

1. Organization and Significant Accounting Policies

BrandywineGLOBAL - Dynamic US Large Cap Value ETF (the “Fund”) is a separate non-diversified investment series of the “Trust”. The Trust, a Delaware statutory trust, is registered under the Investment Company Act of 1940, as amended (the “1940 Act”), as an open-end management investment company. The Fund follows the accounting and reporting guidance in Financial Accounting Standards Board (“FASB”) Accounting Standard Codification Topic 946, Financial Services - Investment Companies (“ASC 946”). At a meeting held on November 18, 2022, the Fund’s Board of Trustees approved changing the Fund’s fiscal year end from September 30th to March 31st. This change resulted in a short-period annual report for the six-month period from October 1, 2022 through March 31, 2023.

The Fund adopted the performance of the BrandywineGLOBAL—Dynamic US Large Cap Value Fund (the “predecessor mutual fund”) as the result of a reorganization of the predecessor mutual fund into the fund (the “Reorganization”) that was effective after the market close on October 28, 2022. Prior to the Reorganization, the Fund had not yet commenced operations. The returns shown for periods ended on or prior to October 28, 2022 are those of the predecessor mutual fund. The predecessor mutual fund’s performance is represented by the performance of the predecessor mutual fund’s Class IS Shares.

Prior to the Fund’s listing on October 31, 2022, the NAV performance of the Class IS Shares of the predecessor mutual fund is used as a proxy for the Fund’s market price returns. Had the predecessor mutual fund have been structured as an ETF, its performance may have differed.

State Street Bank and Trust Company, serves as the Fund’s Custodian and Transfer Agent pursuant to a Global Custodial and Agency Services Agreement with the Trust. American Stock Transfer & Trust Company, LLC serves as stock transfer agent for the Acquiring Fund listed above. Prior to the Reorganizations, The Bank of New York Mellon was the Custodian and Franklin Templeton Investor Services, LLC was the Transfer Agent for the Target Fund.

The following are significant accounting policies consistently followed by the Fund and are in conformity with U.S. generally accepted accounting principles (“GAAP”). Estimates and assumptions are required to be made regarding assets, liabilities and changes in net assets resulting from operations when financial statements are prepared. Changes in the economic environment, financial markets and any other parameters used in determining

these estimates could cause actual results to differ. Subsequent events have been evaluated through the date the financial statements were issued.

a. Financial Instrument Valuation

The Fund’s investments in financial instruments are carried at fair value daily. Fair value is the price that would be received to sell an asset or paid to transfer a liability in an orderly transaction between market participants on the measurement date. The Fund calculates the net asset value (NAV) per share each business day as of 4 p.m. Eastern time or the regularly scheduled close of the New York Stock Exchange (NYSE), whichever is earlier. Under compliance policies and procedures approved by the Fund’s Board of Trustees (the Board), the Board has designated the Fund’s investment manager as the valuation designee and has responsibility for oversight of valuation. The investment manager is assisted by the Fund’s administrator in performing this responsibility, including leading the cross-functional Valuation Committee (VC).

The Fund may utilize independent pricing services, quotations from securities and financial instrument dealers, and other market sources to determine fair value.

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)

a. Financial Instrument Valuation (continued)

net benefit or obligation under the derivative contract, as measured by the fair value of the contract, is included in net assets.

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

Trading in securities on foreign securities stock exchanges and OTC markets may be completed before 4 p.m. Eastern time. In addition, trading in certain foreign markets may not take place on Fund business day. Occasionally, events occur between the time at which trading in a foreign security is completed and 4 p.m. Eastern time that might call into question the reliability of the value of a portfolio security held by the Fund. As a result, differences may arise between the value of the Fund’s portfolio securities as determined at the foreign market close and the latest indications of value at 4 p.m. Eastern time. In order to minimize the potential for these differences, an independent pricing service may be used to adjust the Fund’s portfolio securities to the latest indications of fair value at 4 p.m. Eastern time on March 31 2023. At March 31 2023, certain securities may have been fair valued using these procedures, in which case the securities were categorized as Level 2 inputs within the fair value hierarchy (referred to as “market level fair value”).

changes due to an open foreign market are adjusted and reflected by the Fund for financial reporting purposes.

b. Foreign Currency Translation

Investment securities and other assets and liabilities denominated in foreign currencies are translated into U.S. dollar amounts based upon prevailing exchange rates on the date of valuation. Purchases and sales of investment securities and income and expense items denominated in foreign currencies are translated into U.S. dollar amounts based upon prevailing exchange rates on the respective dates of such transactions.

The Fund does not isolate that portion of the results of operations resulting from fluctuations in foreign exchange rates on investments from the fluctuations arising from changes in market prices of securities held. Such fluctuations are included with the net realized and unrealized gain or loss on investments.

Net realized foreign exchange gains or losses arise from sales of foreign currencies, including gains and losses on forward foreign currency contracts, currency gains or losses realized between the trade and settlement dates on securities transactions, and the difference between the amounts of dividends, interest, and foreign withholding taxes recorded on the Fund’s books and the U.S. dollar equivalent of the amounts actually received or paid. Net unrealized foreign exchange gains and losses arise from changes in the values of assets and liabilities, other than investments in securities, on the date of valuation, resulting from changes in exchange rates.

Foreign security and currency transactions may involve certain considerations and risks not typically associated with those of U.S. dollar denominated transactions as a result of, among other factors, the possibility of lower levels of governmental supervision and regulation of foreign securities markets and the possibility of political or economic instability.

The Fund’s investments in foreign securities may involve risks not present in domestic investments. Since securities may be denominated in foreign currencies, may require settlement in foreign currencies or may pay interest or dividends in foreign currencies, changes in the relationship of these foreign currencies to the U.S. dollar can significantly affect the value of the investments and earnings of the Fund. Foreign investments may also subject the Fund to foreign government exchange restrictions, expropriation, taxation or other political, social or economic developments,



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NOTES TO FINANCIAL STATEMENTS

1. Organization and Significant Accounting Policies (continued)

b. Foreign Currency Translation (continued)

all of which affect the market and/or credit risk of the investments.

c. Derivative Financial Instruments

During the period ended March 31, 2023, the Fund did not invest in derivative instruments.

d. Income and Deferred Taxes

The Fund may be subject to foreign taxation related to income received, capital gains on the sale of securities and certain foreign currency transactions in the foreign jurisdictions in which the Fund invests. Foreign taxes, if any, are recorded based on the tax regulations and rates that exist in the foreign markets in which the Fund invests. When a capital gain tax is determined to apply, Funds record an estimated deferred tax liability in an amount that would be payable if the securities were disposed of on the valuation date.

The Fund may recognize an income tax liability related to its uncertain tax positions under U.S. GAAP when the uncertain tax position has a less than 50% probability that it will be sustained upon examination by the tax authorities based on its technical merits. As of March 31, 2023, Fund has determined that no tax liability is required in its financial statements related to uncertain tax positions for any open tax years (or expected to be taken in future tax years). Open tax years are those that remain subject to examination and are based on the statute of limitations in each jurisdiction in which the Fund invests.

e. Security Transactions, Investment Income, Expenses and Distributions

gain distributions are recorded on the ex-dividend date except for certain dividends from securities where the dividend rate is not available. In such cases, the dividend is recorded as soon as the information is received by the Funds. Distributions to shareholders are recorded on the ex-dividend date. Distributable earnings are determined according to income tax regulations (tax basis) and may differ from earnings recorded in accordance with U.S. GAAP. These differences may be permanent or temporary. Permanent differences are reclassified among capital accounts to reflect their tax character. These reclassifications have no impact on net assets or the results of operations. Temporary differences are not reclassified, as they may reverse in subsequent periods.

Common expenses incurred by the Trust are allocated among the Fund based on the ratio of net assets of Fund to the combined net assets of the Trust. Certain Fund specific expenses are allocated directly to the Fund that incurred the expense. These expenses are paid by the Fund or by the investment manager, as applicable, according to the terms of the unified management fee agreement.

f. Compensating Balance Arrangements

Prior to the reorganization, the predecessor mutual fund had an arrangement with its custodian bank whereby a portion of the custodian’s fees is paid indirectly by credits earned on the Fund’s cash on deposit with the bank.

g. Accounting Estimates

The preparation of financial statements in accordance with U.S. GAAP requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities at the date of the financial statements and the amounts of income and expenses during the reporting period. Actual results could differ from those estimates.

h. Guarantees and Indemnifications

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



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FRANKLIN TEMPLETON ETF TRUST

NOTES TO FINANCIAL STATEMENTS

2. Shares of Beneficial Interest

At March 31, 2023, there were an unlimited number of shares authorized (without par value). Transactions in the Fund’s shares were as follows:



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FRANKLIN TEMPLETON ETF TRUST

NOTES TO FINANCIAL STATEMENTS

2. Shares of Beneficial Interest (continued)


	Six Months Ended						Year Ended						Year Ended
	March 31, 2023						September 30, 2022						September 30, 2021

	Shares			Amount			Shares			Amount			Shares			Amount
Capital Transactions^(a)
Shares sold		7,044,346		$	85,629,495			2,776,923		$	37,193,756			1,036,338		$	14,801,061
Shares reinvested		—			—			2,460,970			32,443,766			787,422			9,764,032
Shares redeemed		(7,016,304	)		(85,983,005	)		(4,915,352	)		(63,639,979	)		(3,181,922	)		(46,793,633	)
Net increase (decrease)		28,042		$	(353,510	)		322,541		$	5,997,543			(1,358,162	)	$	(22,228,540	)
Class A^(b)
Shares sold		47			578			572,314			7,684,930			156,732			2,395,081
Shares reinvested		—			—			119,096			1,561,866			25,473			315,097
Shares redeemed		(953,559	)		(11,206,733	)		(355,767	)		(4,762,733	)		(83,108	)		(1,249,432	)
Net increase (decrease)		(953,512	)	$	(11,206,155	)		335,643		$	4,484,063			99,097		$	1,460,746
Class C^(b)
Shares sold		—			—			309,819			4,097,721			16,591			250,423
Shares reinvested		—			—			9,369			116,930			894			10,993
Shares redeemed		(298,070	)		(3,444,751	)		(67,396	)		(826,386	)		(1,169	)		(18,108	)
Net increase (decrease)		(298,070	)	$	(3,444,751	)		251,792		$	3,388,265			16,316		$	243,308
Class R^b
Shares sold		—			—			15,030			231,122			9,357			135,141
Shares reinvested		—			—			3,026			39,820			277			3,444
Shares redeemed		(19,625	)		(226,287	)		(9,309	)		(126,785	)		(5,175	)		(79,897	)
Net increase (decrease)		(19,625	)	$	(226,287	)		8,747		$	144,157			4,459		$	58,688
Class I^b
Shares sold		—			—			810,734			11,306,052			594,754			9,207,028
Shares reinvested		—			—			114,799			1,506,308			4,456			55,252
Shares redeemed		(996,323	)		(11,756,975	)		(477,495	)		(6,135,287	)		(143,554	)		(2,179,413	)
Net increase (decrease)		(996,323	)	$	(11,756,975	)		448,038		$	6,677,073			455,656		$	7,082,867

^aEffective after the market close on October 28, 2022, the Fund’s predecessor mutual fund, BrandywineGLOBAL - Dynamic US Large Cap Value ETF, reorganized into this Fund (the “Reorganization”). The predecessor mutual fund’s Class IS Shares’ performance and financial history have been adopted by BrandywineGLOBAL - Dynamic US Large Cap Value ET and will be used going forward. As a result, the information prior to the Reorganization reflects that of the predecessor mutual fund’s Class IS Shares. Shares of the other classes of the predecessor mutual fund were converted into Class IS Shares as a part of the Reorganization. Such conversion of the other classes of shares into Class IS Shares is included under “Shares sold”.

^bShares of the class of the Target Fund was converted into Class IS shares as a part of the Reorganization. Such conversion of shares into Class IS shares is included under “Shares redeemed”.

3. Transactions with Affiliates


Subsidiary		Affiliation
Franklin Advisers, Inc. (Advisers)		Investment manager
Franklin Templeton Services, LLC (FT Services)		Administrative Manager
Franklin Distributors, LLC (Distributors)		Principal Underwriter



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FRANKLIN TEMPLETON ETF TRUST

NOTES TO FINANCIAL STATEMENTS

3. Transactions with Affiliates (continued)

a. Management fees

Effective after the market close on October 28, 2022 pursuant to the investment management agreement with the Trust on behalf of the Fund, the Fund pays Advisers a unified management fee equal to the annual rate of 0.65% based on the average daily net assets of the Fund. Effective February 1, 2023, the management fee was reduced to 0.49% of the average daily net assets of the Fund. Pursuant to the investment management agreement, Advisers reimburses the Fund for all acquired fund fees and expenses (such as those associated with the Fund’s investment in a Franklin Templeton money fund) and pays all of the ordinary operating expenses of the Fund, except for (i) the Fund’s management fee, (ii) payments under the Fund’s Rule 12b-1 plan (if any), (iii) brokerage expenses (including any costs incidental to transactions in portfolio securities or instruments), (iv) taxes, (v) interest (including borrowing costs and dividend expenses on securities sold short and overdraft charges), (vi) litigation expenses (including litigation to which the Trust or the Fund may be a party and indemnification of the Trustees and officers with respect thereto), and (vii) other non-routine or extraordinary expenses. Advisers pays Brandywine Global for its services.

For the period October 1, 2022 through October 28, 2022 the predecessor mutual fund paid an investment management fee to Legg Mason Partners Fund Advisor, LLC (“LMPFA”), the investment advisor to the predecessor fund at an annual rate of 0.55% of the Fund’s average daily net assets.

For its services, LMPFA paid Brandywine Global monthly, an aggregate fee equal to 90% of the net management fee it receives from the predecessor mutual fund.

For the period ended Mach 31, 2023, the Fund’s annualized effective investment management fee rate based on average daily net assets was 0.56%.

b. Administrative Fees

Under an agreement with Advisers, FT Services provides administrative services to the Fund. The fee is paid by Advisers based on the Fund’s average daily net assets, and is not an additional expense of the Fund. For the period October 1, 2022 through October 28, 2022, LMPFA provided administrative and certain oversight services to the Fund.

4. Income Taxes

For tax purposes, capital losses of the predecessor mutual fund may be carried over to offset future capital gains, if any. At March 31, 2023, there were no capital loss carryforwards.

The tax character of distributions paid during the period ended March 31, 2023 and the year ended September 31, 2022, were as follows:


	2023		2022
Distributions paid from:
Ordinary income	$	2,164,816	$	29,043,421
Long-term Capital Gain		18,356,078		6,669,934

	$	20,520,894	$	35,713,355

At March 31, 2023, the cost of investments and net unrealized appreciation (depreciation) for income tax purposes were as follows:



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FRANKLIN TEMPLETON ETF TRUST

NOTES TO FINANCIAL STATEMENTS

4. Income Taxes (continued)


	Period Ended
	March 31, 2023

Cost of investments	$	157,277,981

Unrealized appreciation	$	10,622,823
Unrealized depreciation		(9,979,567	)
Net unrealized appreciation (depreciation) .	$	643,256

Distributable earnings – undistributed ordinary income	$	1,760,857

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 period ended March 31, 2023, $88,074,548 and $123,405,000 respectively.

6. Global Credit Facility

On February 4, 2022, the predecessor mutual fund, together with other U.S. registered and foreign investment funds (collectively, the “Borrowers”) managed by Franklin Resources or its affiliates, became a borrower in a joint syndicated senior unsecured credit facility totaling $2.675 billion (the “Global Credit Facility”). The 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. The Global Credit Facility has been matured on February 3, 2023.

Under the terms of the Global Credit Facility, the Fund shall, in addition to interest charged on any borrowings made by the Fund and other costs incurred by the Fund, pay its share of fees and expenses incurred in connection with the implementation and maintenance of the Global Credit Facility, based upon its relative share of the aggregate net assets of all 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 the Statement of Operations. The Fund did not utilize the Global Credit Facility during the period ended March 31, 2023.

7. Fair Value Measurements

•

Level 1 – quoted prices in active markets for identical financial instruments

•

Level 2 – other significant observable inputs (including quoted prices for similar financial instruments, interest rates, prepayment speed, credit risk, etc.)

•

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

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



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FRANKLIN TEMPLETON ETF TRUST

NOTES TO FINANCIAL STATEMENTS

7. Fair Value Measurements (continued)

A summary of inputs used as of March 31, 2023, in valuing the Fund’s assets and liabilities carried at fair value, is as follows:


	Level 1		Level 2		Level 3		Total
BrandywineGLOBAL - Dynamic US Large Cap Value ETF
Assets:
Investments in Securities:^a
Equity Investments^b	$	155,084,173	$	—	$	—	$	155,084,173
Short-Term Investments		2,837,064		—		—		2,837,064
Total Investments in Securities	$	157,921,237	$	—	$	—	$	157,921,237

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

^bIncludes common stocks.

8. New Accounting Pronouncements

9. Subsequent Events

The Fund has evaluated subsequent events through the issuance of the financial statements and determined that no events have occurred that require disclosure.



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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 BrandywineGLOBAL – Dynamic US Large Cap Value ETF

Opinion on the Financial Statements

We have audited the accompanying statements of assets and liabilities, including the schedule of investments, of Brandywine-GLOBAL – Dynamic US Large Cap Value ETF (one of the funds constituting Franklin Templeton ETF Trust, hereafter referred to as the “Fund”) as of March 31, 2023, the related statements of operations for the period October 1, 2022 through March 31, 2023 and the year ended September 30, 2022, and the statements of changes in net assets for the period October 1, 2022 through March 31, 2023, and each of the two years in the period ended September 30, 2022, including the related notes, and the financial highlights for the period October 1, 2022 through March 31, 2023, and each of the five years in the period ended September 30, 2022 (collectively referred to as the “financial statements”). In our opinion, the financial statements present fairly, in all material respects, the financial position of the Fund as of March 31, 2023, and the results of its operations for the period October 1, 2022 through March 31, 2023 and the year ended September 30, 2022, the changes in each of their net assets for the period October 1, 2022 through March 31, 2023, and each of the two years in the period ended September 30, 2022, and the financial highlights for the period October 1, 2022 through March 31, 2023, and each of the five years in the period ended September 30, 2022, in conformity with accounting principles generally accepted in the United States of America.

Basis for Opinion

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, 2023 by correspondence with the custodian. We believe that our audits provide a reasonable basis for our opinion.

PricewaterhouseCoopers LLP

San Francisco, California

May 23, 2023

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)

The following tax information for the Fund is required to be furnished to shareholders with respect to the income earned and distributions paid during their fiscal year.

The Fund below hereby report the following amounts, or if subsequently determined to be different, the maximum allowable amounts, for the period ended March 31, 2023:


	Pursuant to:
Long-Term Capital Gain Dividends	§	852(b)(3)(C)	$	18,356,078
Dividends Received Deduction (DRD)	§	854(b)(1)(A)	$	2,285,289
Qualified Dividend Income (QDI)	§	854(b)(1)(B)	$	2,356,757



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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

Rohit Bhagat (1964) One Franklin Parkway San Mateo, CA 94403-1906	Lead Independent Trustee	Since 2016	59	AssetMark Financial Holdings, Inc. (investment solutions) (2018-present) and PhonePe (2020-present) (payment and financial services); formerly, Axis Bank (financial) (2013- 2021), FlipKart Limited (2019-2020) (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	59	S&P Global, Inc. (financial information services) (February 2022), Borg Warner (automotive) (2018-present), LegalShield (consumer services) (2020-present); and formerly, IHS Markit (information services) (2015-2022), 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	59	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).

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	70	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, of some of the other subsidiaries of Franklin Resources, Inc. and of certain funds in the Franklin Templeton/Legg Mason fund complex; 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).



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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

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 certain funds in the Franklin Templeton/Legg Mason fund complex.

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; Assistant Secretary, Franklin Distributors, LLC; and officer of certain funds in the Franklin Templeton/Legg Mason fund complex.

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 certain funds in the Franklin Templeton/Legg Mason fund complex; and formerly, Vice President, Global Tax (2012-April 2017) and Treasurer/Assistant Treasurer, Franklin Templeton (2009-2017).

Fred Jensen (1963) 620 Eighth Avenue, 47th Floor New York, NY 10018	Chief Compliance Officer	Since 2021	Not Applicable	Not Applicable

Principal Occupation During at Least the Past 5 Years:
Director - Global Compliance of Franklin Templeton; Managing Director of Legg Mason & Co.; Director of Compliance, Legg Mason Office of the Chief Compliance Officer; Chief Compliance Officer, Franklin Advisory Services, LLC; Compliance Officer, Franklin Advisers, Inc.; officer of certain funds in the Franklin Templeton/Legg Mason fund complex; formerly, Chief Compliance Officer of Legg Mason Global Asset Allocation; Chief Compliance Officer, Legg Mason Private Portfolio; Chief Compliance Officer to The Reserves Funds (investment adviser, funds and broker-dealer) and Ambac Financial Group (investment adviser, funds and broker-dealer).

Susan Kerr (1949) 620 Eighth Avenue New York, NY 10018	Vice President - AML Compliance	Since 2021	Not Applicable	Not Applicable

Principal Occupation During at Least the Past 5 Years:
Senior Compliance Analyst, Franklin Templeton; Chief Anti-Money Laundering Compliance Officer, Legg Mason & Co., or its affiliates; Anti Money Laundering Compliance Officer; Senior Compliance Officer, LMIS; and officer of certain funds in the Franklin Templeton/Legg Mason fund complex.

Todd Mathias (1983) One Franklin Parkway, San Mateo, Ca 94403-1906	Vice President	Since March 2022	Not Applicable	Not Applicable

Principal Occupation During at Least the Past 5 Years:
Head of US ETF Product Strategy, Franklin Templeton; and officer of certain funds in the Franklin Templeton/Legg Mason fund complex.



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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.; and officer of certain funds in the Franklin Templeton/Legg Mason fund complex.

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 certain funds in the Franklin Templeton/Legg Mason fund complex.

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:
Senior Associate General Counsel, Franklin Templeton; and officer of certain funds in the Franklin Templeton/Legg Mason fund complex.

Lori A. Weber (1964) 300 S.E. 2nd Street Fort Lauderdale, FL 33301-1923	Vice President and Secretary	Vice President since 2011 and Secretary since 2013	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 certain funds in the Franklin Templeton/Legg Mason fund complex.

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.



franklintempleton.com	Annual Report	31

Shareholder Information

Board Approval of Investment Management Agreements

FRANKLIN TEMPLETON ETF TRUST

BrandywineGLOBAL Dynamic US Large Cap Value ETF

(Fund)

At a meeting held on November 19, 2021 (Meeting), the Board of Trustees (Board) of Franklin Templeton ETF Trust (Trust), including a majority of the trustees who are not “interested persons” as defined in the Investment Company Act of 1940 (Independent Trustees), reviewed and approved (i) an investment management agreement between Franklin Advisers, Inc. (FAV) and the Trust, on behalf of the Fund, and (ii) an investment sub-advisory agreement between FAV and Brandywine Global Investment Management, LLC (Brandywine Global), on behalf of the Fund (each a 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 each Management Agreement. FAV and Brandywine Global are each referred to herein as a Manager.

In considering the approval of each Management Agreement, the Board reviewed and considered information provided by each Manager at the Meeting and by FAV throughout the year at meetings of the Board and its committees. The Board reviewed and considered all of the factors it deemed relevant in approving each Management Agreement, including, but not limited to: (i) the nature, extent and quality of the services to be provided by each Manager; (ii) the costs of the services to be provided by each Manager; and (iii) the extent to which economies of scale may be realized as the Fund grows. The Board also considered management’s representation that the Fund was being established to acquire the assets of a series of Legg Mason Global Asset Management Trust, the Dynamic US Large Cap Value Fund (Legg Mason Fund), in connection with the reorganization of the Legg Mason Fund into the Fund. The Board noted that the current investment sub-adviser and portfolio managers for the Legg Mason Fund would sub-advise and manage the Fund. The Board then reviewed and considered the form of each Management Agreement and the terms of each Management Agreement which were explained at the Meeting.

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 each 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 each 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; each Manager’s experience as the Manager of other funds and accounts, including other series of the Trust and other funds in the Franklin Templeton family of funds; each Manager’s strength and reputation within the industry; the personnel, operations, financial condition, and investment management capabilities, methodologies and resources of each Manager; and each Manager’s compliance capabilities, as demonstrated by, among other things, its policies and procedures reasonably designed to prevent violations of the Federal Securities Laws (as defined in Rule 38a-1 of the Investment Company Act of 1940). Following consideration of such information, the Board was satisfied with the nature, extent and quality of services to be provided by each Manager and its affiliates to the Fund and its shareholders.

Fund Performance

The Board noted that the Fund was being established to acquire the assets of the Legg Mason Fund and that the current investment sub-adviser and portfolio managers for the Legg Mason Fund would sub-advise and manage the Fund. Accordingly, the Board further noted the historical performance information of the Legg Mason Fund. The Board considered the proposed performance benchmark for the Fund and how such benchmark would be utilized to measure performance of each Manager.

Comparative Fees and Expenses



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structure as the Fund (Expense Group) as selected by Broadridge Financial Solutions, Inc. (Broadridge), an independent provider of investment company data. Broadridge fee and expense data is based upon information taken from each fund’s most recent annual report (excluding the Fund), which reflects historical asset levels that may be quite different from those currently existing, particularly in a period of market volatility. While recognizing such inherent limitation and the fact that expense ratios and Management Rates generally increase as assets decline and decrease as assets grow, the Board believed the independent analysis conducted by Broadridge to be an appropriate measure of comparative fees and expenses. The Broadridge Management Rate includes administrative charges. The Board received a description of the methodology used by Broadridge to select the exchange-traded funds included in an Expense Group.

The Expense Group for the Fund was comprised of actively managed exchange-traded funds, which included the Fund, two other multi-cap value funds, four multi-cap growth funds, and five multi-cap core funds. The Board noted that the proposed Management Rate and total expense ratio for the Fund was above the median of its Expense Group. The Board also noted that the Fund proposed to implement a unified management fee (Unified Fee). The Board further noted that pursuant to the Unified Fee arrangement FAV would reimburse the Fund for all of its acquired fund fees and expenses (if any) and pay all of the ordinary operating expenses of the Fund, except for (i) the Fund’s Unified Fee, (ii) payments under the Fund’s Rule 12b-1 plan (if any), (iii) brokerage expenses, (iv) taxes, (v) interest (including borrowing costs and dividend expenses on securities sold short and overdraft charges), (vi) litigation expenses (including litigation to which the Trust or the Fund may be a party and indemnification of the Trustees and officers with respect thereto), and (vii) other non-routine or extraordinary expenses. The Board concluded that the Management Rate to be charged to the Fund is reasonable. In doing so, the Board noted that the fee paid to Brandywine Global would be paid out of the Unified Fee FAV receives from the Fund, as applicable.

Profitability

The Board noted that each Manager (and its affiliates) could not report any financial results from their relationships with the Fund because the Fund has not commenced investment operations, and thus, the Board could not evaluate each Manager’s (or its affiliates’) profitability with respect to the Fund.

Economies of Scale

The Board reviewed and considered the extent to which each Manager may realize economies of scale, if any, as the Fund grows larger and whether the Fund’s management fee structure reflects any economies of scale for the benefit of shareholders. With respect to possible economies of scale in the future, the Board noted that it is not anticipated that the Fund will generate significant, if any, profit for its respective Managers 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 applicable Management Agreements for the Fund for an initial two-year period.

Proxy Voting Policies and Procedures

Quarterly Schedule of Investments

Premium/Discount Information



franklintempleton.com	Annual Report	33

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


	Annual Report BrandywineGLOBAL - Dynamic US Large Cap Value ETF

	Investment Manager	Distributor	Investor Services

	Franklin Advisers, Inc. Subadvisor Brandywine Global Investment Management, LLC	Franklin Distributors, LLC (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

© 2023 Franklin Templeton Investments. All rights reserved.			DVAL A 05/23

LOGO

ANNUAL REPORT MARTIN CURRIE SUSTAINABLE INTERNATIONAL EQUITY ETF A Series of Franklin Templeton ETF Trust March 31, 2023



Contents

Annual Report

Martin Currie Sustainable International Equity ETF			2
Performance Summary			6
Your Fund’s Expenses			9
Financial Highlights and Schedule of Investments			10
Financial Statements			13
Notes to Financial Statements			16
Report of Independent Registered Public Accounting Firm			24
Tax Information			25
Board Members and Officers			26
Shareholder Information			30

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

Martin Currie Sustainable International Equity ETF

As approved by the Board of Trustees at a meeting held on November 18, 2022, the fiscal year-end for Martin Currie Sustainable International Equity ETF (the “Fund”) was changed to March 31. Effective after the market close on October 28, 2022, the Fund’s predecessor mutual fund, Martin Currie International Sustainable Equity Fund, reorganized into this Fund (the “Reorganization”). The Fund has an identical investment goal and substantially similar investment strategies as the predecessor mutual fund. This annual report for the Fund covers the shortened fiscal year for the transitional 10-month period between the predecessor mutual fund’s prior fiscal year-end, May 31, 2022, and March 31, 2023.

Fund Overview

Q. What is the Fund’s investment strategy?

A. The Fund’s investment goal is to seek long-term capital appreciation. Under normal market conditions, the Fund invests at least 80% of its net assets in equity and equity-related securities of foreign companies and other investments with similar economic characteristics that meet the sub-advisor’s environmental, social and governance (ESG) criteria for the Fund. Subject to the ESG criteria, the Fund is generally unconstrained by any particular sector, geography or market capitalization. The Fund may invest without limit in securities of companies located in any foreign country, including countries with developed or emerging markets. The Fund will typically invest in those companies with market capitalizations in excess of $3 billion. The Fund’s portfolio is expected to be highly concentrated, with approximately 20-40 holdings.

The sub-advisor focuses on companies that it believes have a strong history of, or future potential for, offering high and durable returns on invested capital over time and seeks to acquire securities of companies with reasonable valuations based on the sub-advisor’s assessment of the company’s long-term potential. When the sub-advisor identifies an opportunity it finds attractive, it aims to make a long-term capital commitment.

Q. What were the overall market conditions during the Fund’s reporting period?

A. International equity markets remained volatile during the reporting period, with monetary policy and inflation often

dictating market direction and leadership between growth and value equity styles. Markets corrected sharply in June 2022 following worse-than-expected inflationary data from the U.S. This saw the U.S. Federal Reserve (Fed) raise interest rates by 0.75%, the largest hike since 1994, followed by a 0.25% increase by the Bank of England (BoE). The European Central Bank (ECB) raised its respective benchmark rate in July 2022 and again in September, ending the negative rates era. July 2022 was noteworthy for growth areas of the market as focus turned to the prospect of interest-rate cuts in 2023. However, this reversed in August 2022 after central banks indicated substantial interest-rate rises were still needed to control inflation, and markets declined as the prospect of more modest rate cuts diminished. Ongoing concerns over rising energy costs in Europe weighed on markets, as August 2022 saw the closure again of the Nord Stream 1 pipeline, which supplies natural gas to Germany from Russia. International markets finished the final quarter of 2022 in positive territory overall, despite further interest-rate hikes from the ECB, the Fed and the BoE.

The last six months of the period have seen continued volatility, but markets were generally positive in October and November 2022 on the hope that inflation could be nearing a peak and future interest-rate hikes would be less severe, a view supported by better-than-expected inflation data. Additionally, some easing of COVID-19-restrictions in China raised hopes of a recovery for the world’s second largest economy. However, markets fell again in December, as the Fed and ECB not only raised their respective rates 0.50% each, as expected, but also reiterated their commitment to aggressive rate hikes. January 2023 saw markets rally strongly. An end to China’s zero-COVID policy in late December 2022 got markets off to a strong start, combined with optimism that the rate cycle might be close to peaking. This was tempered in February 2023 after central banks continued with rate increases. Falling bond yields during the quarter also aided the performance of growth stocks. Economic data was resilient, and there was a recovery in composite purchasing manager index (PMI) survey data, with falling energy prices contributing to the pick-up in activity. Geopolitical tensions continued, and increased U.S.-China tensions led emerging markets to underperform developed markets, particularly in February 2023.

The dollar value, number of shares or principal amount, and names of all portfolio holdings are listed in the Fund’s Schedule of Investments (SOI). The SOI begins on page 11.



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Q. How did we respond to these changing market conditions?

A. As the interest cycle progressed with further rate hikes, we frequently assessed our stock holdings in terms of balance sheet risks, with a particular focus on cash flow profile. We made a number of changes to the portfolio over the period, including exiting Chinese internet platform Tencent Holdings, German sportswear firm adidas, U.K. online luxury platform Farfetch and U.K. bootmaker Dr. Martens. Over the same period, we added U.K. consumer care firm Croda International and French global drinks group Pernod Ricard. We expand further on these below.

While much of the positive investor sentiment during 2023’s first quarter came from expectations that the U.S. Federal Funds rate might be close to peaking, we do not believe this to be the case. We therefore see a major risk of disappointment and volatility for investors expecting an early end to the hiking cycle this year. We still believe central banks are unlikely to pivot until 2024. However, the wide range of possible monetary policy outcomes is what will drive an important bull-bear debate across asset classes. An early end to the hiking cycle would be supportive for markets, and for the quality and growth equity style.

In this uncertain macroeconomic environment, we continue to focus on companies with the below characteristics:

•

Resilient earnings growth profiles, given the ongoing risks of earnings downgrades.

•

Strong pricing power, given the ongoing elevated inflationary pressures weighing on margins.

•

Solid balance sheets, to withstand the potential risk of an economic hard landing.

•

Exposed to long-term structural growth themes, given the lower growth environment.


Geographic Composition*

3/31/23

	% of Total Net Assets

Europe		73.9%

North America		12.0%

Asia		9.3%

Australia & New Zealand		4.1%

Other Net Assets		0.7%

*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.


Top 10 Sectors/Industries

3/31/23

	% of Total Net Assets

Semiconductors & Semiconductor Equipment		11.0%

Life Sciences Tools & Services		10.2%

Health Care Equipment & Supplies		10.0%

Textiles, Apparel & Luxury Goods		9.8%

Building Products		8.6%

Chemicals		7.9%

Software		6.4%

Electronic Equipment, Instruments & Components		5.4%

Personal Products		5.3%

Machinery		4.9%

Performance Overview

During the 10-month period under review, the Fund posted cumulative total returns of +4.28% based on market price and +4.30% based on net asset value (NAV).¹ In comparison, the MSCI All Country World Index (ACWI) ex USA Index-NR posted a +0.57% cumulative total return for the same period.² You can find more of the Fund’s performance data in the the Performance Summary beginning on page 6.³

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

2. Source: Morningstar.

The index is unmanaged and include reinvestment of any income or distributions. It does not reflect any fees, expenses or sales charges. One cannot invest directly in an index.

3. Effective September 30, 2021, the predecessor mutual fund changed its name from Martin Currie International Unconstrained Equity Fund to Martin Currie International Sustainable Equity Fund and adopted the Fund’s current ESG-related investment strategies.

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



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MARTIN CURRIE SUSTAINABLE INTERNATIONAL EQUITY ETF

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.

Q. What were the leading contributors to performance?

A. Over the period, stocks from the consumer discretionary and consumer staples sectors were the strongest contributors to overall performance. From a regional perspective, European stocks contributed, particularly those from Italy, France and the Netherlands.

Notable stock contributions over the period included Moncler, the Italian luxury outerwear manufacturer, which benefited from China’s post-lockdown reopening in January 2023. Although its winter season was impacted by COVID-19, the market is focused on the prospect of customers being able to travel freely around Europe. The company also announced robust financial year results, strongly beating consensus estimates on sales. Improving consumer sentiment also benefited our holding in L’Oreal, the France-based global beauty firm, as reflected in the firm’s 2022 third-quarter results.

Luxury carmaker Ferrari released 2022 second-quarter results in early August which were notable for exceptionally strong growth (+29%) in shipments. Despite this record production, record new orders in the quarter meant backlogs, and therefore customer waiting times stayed high. September 2022 also saw the launch of Ferrari’s long-awaited Purosangue, its first four-door, four-seater model. Management’s guidance for 2023 was also stronger than expected, as a much richer mix of models, including the four-door Purosangue and the Daytona SP3, should lead to higher average selling prices and, in turn, higher profitability.

Although technology exposure was overall a negative, ASML Holding, a Dutch semiconductor equipment manufacturer, published strong results for 2022’s third and fourth quarters. The third quarter showed a record order intake of €8.9bn, versus sales of €5.8bn, and guidance issued with the fourth quarter results suggested +25% growth in 2023. Uncertainty regarding possible further restrictions on its sales in China remain, and the company experienced some weakness in February 2023, after further export controls on semiconductor technology were agreed by the U.S., Japanese and Dutch governments.

Q. What were the leading detractors from performance?

A. The portfolio’s communication services and industrials sector exposures were the largest detractors, and at a country level, our China, Germany and Ireland stocks were the weakest over the period.

Notable detractors at the stock level included Ireland’s Kingspan Group, a building materials firm, due to volatile ordering conditions in the construction industry, which was affected by the prevailing economic conditions. While short-term construction demand remains uncertain, the energy crisis in Europe has highlighted the relevance of insulation products in helping to reduce society’s energy needs.

Our communication services exposure detracted through our position in Tencent Holdings, and we exited the stock. The Chinese internet giant has seen low single digit and mid-to-high single digit revenue and earnings downgrades for both 2022 and 2023. This is likely due to a persistent weakness in the Chinese macroeconomic environment and consumer spending, prolonged lockdowns from China’s zero-COVID policy, and a lack of visibility around blockbuster games gaining approval.

German sportswear firm adidas was also a significant detractor, as an ad-hoc profit warning was driven by worse-than-expected COVID-19 impacts in China along with elevated inventories in the U.S. and Western Europe. We also exited the stock over the period.

Q. Were there any significant changes to the Fund during the reporting period?

A. Over the reporting period we added two new stocks and exited four positions.

The new positions were U.K. consumer care and life sciences firm Croda and France’s Pernod Ricard, the world’s second-largest spirits and wine group. Croda has continued to reposition its portfolio with the disposal of its Performance Technologies and Industrial Chemicals (PTIC) business, while several important acquisitions have led to the business becoming more focused, with stronger growth potential. Pernod Ricard benefits from strong pricing power and a balanced portfolio across different geographical regions and drink categories. The company is actively repositioning its U.S. business after a period of underperformance, and we believe is well positioned in the key emerging markets of China and India.

On disposals, we exited Tencent due to the lack of visibility on the regulatory front, and potential growing geopolitical risk in China. As mentioned above, we also exited adidas. We believe there is further risk to earnings, and the Yeezy (Kayne West) termination highlighted weaker performance of the brand than was previously understood. We also believe there is further risk from succession planning, following the



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MARTIN CURRIE SUSTAINABLE INTERNATIONAL EQUITY ETF

announcement that current CEO Kaspar Rorsted is leaving his contract early.

We also exited Farfetch, the online luxury retailer, whose shares declined following disappointing guidance delivered at its recent Capital Market Day in December 2022. We held a follow-up call with the CEO and founder, but our reduced conviction was unchanged. Finally, we sold Dr. Martens. We held a small position and were unable to rebuild our conviction following January 2023’s weak results and guidance. We subsequently exited and reinvested the proceeds into Moncler.


Top 10 Holdings

3/31/23

Company *Sector/Industry, Country*	% of Total Net Assets

ASML Holding NV Semiconductors & Semiconductor Equipment, Netherlands		8.6%

Mettler-Toledo International, Inc. Life Sciences Tools & Services, United States		6.3%

ResMed, Inc., CDI Health Care Equipment & Supplies, United States		5.7%

Linde PLC Chemicals, United States		5.7%

Moncler SpA Textiles, Apparel & Luxury Goods, Italy		5.6%

Hexagon AB, Class B Electronic Equipment, Instruments & Components, Sweden		5.4%

L’Oreal SA Personal Products, France		5.3%

Atlas Copco AB, Class A Machinery, Sweden		4.9%

Ferrari NV Automobiles, Italy		4.8%

Dassault Systemes SE Software, France		4.7%

CFA^® is a trademark owned by CFA Institute.


Top 10 Countries

3/31/23

	% of Total Net Assets

United States		17.7%

France		17.4%

Sweden		14.7%

Italy		10.4%

Netherlands		8.6%

Ireland		7.7%

Denmark		4.3%

Hong Kong		4.2%

Australia		4.1%

United Kingdom		3.4%

Thank you for your participation in Martin Currie Sustainable International Equity ETF. We look forward to serving your future investment needs.

Zehrid Osmani

Lead Portfolio Manager

Ken Hughes, CFA

Portfolio Manager



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MARTIN CURRIE SUSTAINABLE INTERNATIONAL EQUITY ETF

Performance Summary as of March 31, 2023

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. Market Price returns typically are based upon the official closing price of the ETF’s shares. Since shares of the Fund did not trade in the secondary market until after the Fund’s inception, for the period from the Fund’s inception (October 28, 2022) to the first day of secondary trading (October 31, 2022), the NAV performance of the class IS Shares of the predecessor mutual fund is used as a proxy for the Market Price to calculate Market Price returns. Market price and NAV returns assume that dividends and capital gain distributions have been reinvested at Market Price and NAV.

Performance as of 3/31/23¹

Cumulative Total Return²

Average Annual Total Return²

Based on
NAV³

Based on
market price⁴

Based on
NAV³

Based on
market price⁴

10-Month

+4.30%

+4.28%

+4.30%

+4.28%

5-Year

+37.01%

+36.98%

+6.50%

Since Inception (11/30/15)

+66.42%

+66.39%

+7.19%

See page 8 for Performance Summary footnotes.



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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.

11/30/15-3/31/23

LOGO

See page 8 for Performance Summary footnotes.



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MARTIN CURRIE SUSTAINABLE INTERNATIONAL EQUITY ETF

PERFORMANCE SUMMARY

Distributions (6/1/22–3/31/23)



Net Investment Income	Long-Term Capital Gain		Total
$0.049529		$0.011504		$0.061033

Total Annual Operating Expenses⁶

0.59%

All investments involve risks, including possible loss of principal. Equity securities are subject to price fluctuation and possible loss of principal. Small- and mid-cap stocks involve greater risks and volatility than large-cap stocks. International investments are subject to special risks including currency fluctuations, as well as social, economic and political uncertainties, which could increase volatility. These risks are magnified in emerging markets. To the extent the Fund focuses its investments in a single country or only a few countries in a particular geographic region, economic, political, regulatory or other conditions affecting such country or region may have a greater impact on Fund performance relative to a more geographically diversified fund. The managers’ environmental social and governance (ESG) strategies may limit the types and number of investments available and, as a result, may forego favorable market opportunities or under perform strategies that are not subject to such criteria. There is no guarantee that the strategy’s ESG directives will be successful or will result in better performance. The Fund is classified as “non-diversified,” which means it may invest a larger percentage of its assets in a smaller number of issuers than a diversified fund. To the extent the Fund invests its assets in a smaller number of issuers, the Fund will be more susceptible to negative events affecting those issuers than a diversified 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 total annual operating expenses are as of the Fund’s prospectus available at the time of publication. Actual expenses may be higher and may impact portfolio returns.

2. The Fund adopted the performance of the predecessor mutual fund as the result of the Reorganization. Prior to the Reorganization, the Fund had not yet commenced operations. 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. The returns shown for periods ended on or prior to October 28, 2022, are those of the predecessor mutual fund. The predecessor mutual fund’s performance is represented by the performance of the predecessor mutual fund’s Class IS Shares. Prior to the Fund’s listing on October 31, 2022, the NAV performance of the Class IS Shares of the predecessor mutual fund is used as a proxy for market price returns. Had the predecessor mutual fund been structured as an ETF, its performance may have differed.

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

4. Assumes reinvestment of distributions based on market price.

5. Source: FactSet. The MSCI ACWI ex USA Index-NR is a free float-adjusted, market capitalization-weighted index designed to measure the combined equity market performance of developed and emerging markets, excluding the U.S. Net Returns (NR) include income net of tax withholding when dividends are paid.

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.

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



8	Annual Report	franklintempleton.com

MARTIN CURRIE SUSTAINABLE INTERNATIONAL 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 10/1/22		Ending Account Value 3/31/23		Expenses Paid During Period 10/1/22–3/31/23^1,2		Ending Account Value 3/31/23		Expenses Paid During Period 10/1/22–3/31/23^1,2		Net Annualized Expense Ratio²
	$1,000.00		$1,287.90		$4.05		$1,021.39		$3.58		0.71	%

2. Included in the expense ratio are “Other fees” described in Note 1 under Income and Deferred Taxes which are not annualized. Without these expenses, the expense ratio would have been 0.70% and the actual and hypothetical expenses paid during the period would have been $0.06 and $0.05, respectively.



franklintempleton.com	Annual Report	9

FRANKLIN TEMPLETON ETF TRUST

Financial Highlights

Martin Currie Sustainable International Equity ETF


	Period Ended March 31, 2023^†			Year Ended May 31,
	Period Ended March 31, 2023^†			2022			2021			2020			2019			2018

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

Net asset value, beginning of period		$13.88			$18.93			$12.72			$11.58			$11.55			$11.43

Income from investment operations^b:

Net investment income^c		—^d			0.10			0.04			0.02			0.10			0.17

Net realized and unrealized gains (losses)		0.59			(4.10	)		6.19			1.17			0.21			0.27

Total from investment operations		0.59			(4.00	)		6.23			1.19			0.31			0.44

Less distributions from:

Net investment income		(0.05	)		—			(—	)^d		(0.05	)		(0.16	)		(0.17	)

Net realized gains		(0.01	)		(1.05	)		(0.02	)		—			(0.12	)		(0.15	)

Total distributions		(0.06	)		(1.05	)		(0.02	)		(0.05	)		(0.28	)		(0.32	)

Net asset value, end of period		$14.41			$13.88			$18.93			$12.72			$11.58			$11.55

Total return^e,f		4.30%			(22.38)%			49.06%			10.26%			3.06%			3.86%

Ratios to average net assets^g

Expenses before waiver and payments by affiliates		1.07%^h			1.50%			1.89%			4.61%ⁱ			5.22%ⁱ			4.38%

Expenses net of waiver and payments by affiliates		0.73%^h			0.75%			0.75%			0.75%ⁱ			0.75%ⁱ			0.78%

Net investment income		0.03%			0.57%			0.22%			0.14%			0.88%			1.42%

Supplemental data

Net assets, end of period (000’s)		$19,700			$40,848			$20,966			$4,783			$4,800			$4,655

Portfolio turnover rate		26.05%^j			25.00%			49.00%			37.00%			63.00%			15.00%

^†For the period June 1, 2022 through March 31, 2023.

^aEffective after the market close on October 28, 2022, the Fund’s predecessor mutual fund, Martin Currie International Sustainable Equity Fund, reorganized into this Fund (the “Reorganization”). See Note 1 in the Notes to Financial Statements for additional information about the Reorganization.

^cBased on average daily shares outstanding.

^dAmount rounds to less than $0.005 per share.

^eThe Fund adopted the performance of the predecessor mutual fund as the result of the Reorganization. Prior to the Reorganization, the Fund had not yet commenced operations. The returns shown for periods ending on or prior to October 28, 2022, are those of the predecessor mutual fund. The predecessor mutual fund’s performance is represented by the performance of the predecessor mutual fund’s Class IS Shares. Had the predecessor mutual fund been structured as an ETF, its performance may have differed.

^gRatios are annualized for periods less than one year, except for non-recurring expenses, if any.

^hExpense ratios are including non-recurring European Union tax reclaim contingent fees that were incurred by the Fund during the period. Without these fees, the gross and net expense ratios would have been 1.06% and 0.73%, respectively, for the period ended March 31, 2023.

ⁱReflects recapture of expenses waived/reimbursed from prior fiscal years for period prior to the Reorganization.

^jPortfolio turnover rate excluding cash creations was as follows: 26.05%



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

FRANKLIN TEMPLETON ETF TRUST

Schedule of Investments, March 31, 2023

Martin Currie Sustainable International Equity ETF


		Country	Shares		Value

	Common Stocks 99.3%
	Automobiles 4.8%
	Ferrari NV	Italy	3,484	$	943,648

	Beverages 3.2%
	Pernod Ricard SA	France	2,770		628,076

	Biotechnology 4.1%
	CSL Ltd.	Australia	4,208		812,518

	Building Products 8.6%
	Assa Abloy AB, Class B	Sweden	36,276		868,633
	Kingspan Group PLC	Ireland	11,943		817,974

					1,686,607

	Chemicals 7.9%
	Croda International PLC	United Kingdom	5,401		433,941
	Linde PLC	United States	3,140		1,116,081

					1,550,022

	Electronic Equipment, Instruments & Components 5.4%
	Hexagon AB, Class B	Sweden	92,416		1,059,221

	Food Products 3.5%
	Kerry Group PLC, Class A	Ireland	6,919		690,375

	Health Care Equipment & Supplies 10.0%
	Coloplast AS, Class B	Denmark	6,434		846,224
	ResMed, Inc., CDI	United States	51,554		1,118,372

					1,964,596

	Insurance 4.2%
	AIA Group Ltd.	Hong Kong	78,072		821,999

	Life Sciences Tools & Services 10.2%
^a	Mettler-Toledo International, Inc.	United States	816		1,248,651
^a	Oxford Nanopore Technologies PLC	United Kingdom	87,233		239,987
^a,b	Wuxi Biologics Cayman, Inc.	China	85,040		526,493

					2,015,131

	Machinery 4.9%
	Atlas Copco AB, Class A	Sweden	76,063		964,876

	Personal Products 5.3%
	L’Oreal SA	France	2,355		1,052,220

	Semiconductors & Semiconductor Equipment 11.0%
	ASML Holding NV	Netherlands	2,492		1,692,687
	Taiwan Semiconductor Manufacturing Co. Ltd., ADR	Taiwan	5,140		478,123

					2,170,810

	Software 6.4%
	Dassault Systemes SE	France	22,750		936,146
	Nemetschek SE	Germany	4,863		334,334

					1,270,480



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FRANKLIN TEMPLETON ETF TRUST

SCHEDULE OF INVESTMENTS

Martin Currie Sustainable International Equity ETF (continued)

Country

Shares

Value

Common Stocks (continued)

Textiles, Apparel & Luxury Goods 9.8%

Kering SA

France

1,261

822,008

Moncler SpA

Italy

16,050

1,107,980

1,929,988

Total Common Stocks (Cost $20,852,425)

19,560,567

Total Investments (Cost $20,852,425) 99.3%

19,560,567

Other Assets, less Liabilities 0.7%

139,246

Net Assets 100.0%

19,699,813

^aNon-income producing.

See Abbreviations on page 23.



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

FRANKLIN TEMPLETON ETF TRUST

FINANCIAL STATEMENTS

Statement of Assets and Liabilities

March 31, 2023

Martin Currie International Sustainable Equity ETF^a


Assets:
Investments in securities:
Cost – Unaffiliated issuers	$	20,852,425
Value – Unaffiliated issuers	$	19,560,567
Cash		129,375
Receivables:
Dividends and interest		45,763
European Union tax reclaims receivable (Note 1d)		12,467
Investment securities sold		111,311

Total assets		19,859,483

Liabilities:
Payables:
Investment securities purchased		141,305
European Union tax reclaim contingent fees payable (Note 1d)		3,114
Management fees		14,751
Accrued expenses and other liabilities		500

Total liabilities		159,670

Net assets, at value	$	19,699,813

Net assets consist of:
Paid-in capital		$26,348,933
Total distributable earnings (loss)		(6,649,120	)

Net assets, at value	$	19,699,813

Shares outstanding		1,366,807

Net asset value per share		$ 14.41



franklintempleton.com	The accompanying notes are an integral part of these financial statements. \| Annual Report	13

FRANKLIN TEMPLETON ETF TRUST

FINANCIAL STATEMENTS

Statements of Operations

For the Period Ended March 31, 2023 and the Year Ended May 31, 2022

Martin Currie International Sustainable Equity ETF^a



	2023†			2022

Investment income:
Dividends: (net of foreign taxes)^b
Unaffiliated issuers	$	196,285		$	452,613
European Union tax reclaims (Note 1d)		12,457			—

Total investment income		208,742			452,613

Expenses:
Management fees (Note 3a)		195,170			241,415
Fund accounting fees		32,233			76,082
Registration and filing fees		30,527			62,034
Professional fees		10,336			78,268
Reports to shareholders		9,710			8,028
European Union tax reclaims contingent fees (Note 1d)		3,114			—
Trustee fees		1,138			3,538
Distribution and service fees		480			1,113
Transfer agent fees		—			9,075
Custodian fees		—			4,118
Other		5,293			12,566

Total expenses		288,001			496,237
Expenses waived/paid by affiliates (Note 3c)		(88,984	)		(250,006	)

Net expenses		199,017			246,231

Net investment income		9,725			159,345

Realized and unrealized gains (losses):
Net realized gain (loss) from:
Investments:
Unaffiliated issuers		(4,700,354	)		(684,701	)
In-kind redemptions		3,852,422			—
Foreign currency transactions		5,679			(29,169	)
Forward exchange contracts		(598	)		—

Net realized gain (loss)		(842,851	)		(713,870	)

Net change in unrealized appreciation (depreciation) on:
Investments:
Unaffiliated issuers		674,738			(9,371,356	)
Translation of other assets and liabilities denominated in foreign currencies		257			(2,065	)

Net change in unrealized appreciation (depreciation)		674,995			(9,373,421	)

Net realized and unrealized gain (loss)		(167,856	)		(10,087,291	)

Net increase (decrease) in net assets resulting from operations	$	(158,131	)	$	(9,927,946	)


^bForeign taxes withheld on dividends	$28,487	$47,037

^†For the period June 1, 2022 through March 31, 2023.



14	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

Martin Currie Sustainable International Equity ETF^a



	Period Ended March 31, 2023†			Year Ended May 31, 2022			Year Ended May 31, 2021
Increase (decrease) in net assets:
Operations:
Net investment income	$	9,725		$	159,345		$	46,286
Net realized gain (loss)		(842,851	)		(713,870	)		1,020,256
Net change in unrealized appreciation (depreciation)		674,995			(9,373,421	)		6,202,329

Total Operations:		(158,131	)		(9,927,946	)		7,268,871

Distributions to shareholders (Note 1e)		(156,660	)		(1,443,082	)		(37,118	)

Capital share transactions: (Note 2)		(21,930,980	)		29,246,241			10,972,343

Net increase (decrease) in net assets		(22,245,771	)		17,875,213			18,204,096
Net assets:
Beginning of period		41,945,584			24,070,371			5,866,275

End of period	$	19,699,813		$	41,945,584		$	24,070,371

^†For the period June 1, 2022 through March 31, 2023.



franklintempleton.com	The accompanying notes are an integral part of these financial statements. \| Annual Report	15

FRANKLIN TEMPLETON ETF TRUST

Notes to Financial Statements

1. Organization and Significant Accounting Policies

Martin Currie Sustainable International Equity ETF (the” Fund”) is a separate non-diversified investment series of the “Trust”. The Trust, a Delaware statutory trust, is registered under the Investment Company Act of 1940, as amended (the “1940 Act”), as an open-end management investment company. The Fund follows the accounting and reporting guidance in Financial Accounting Standards Board (“FASB”) Accounting Standard Codification Topic 946, Financial Services - Investment Companies (“ASC 946”). At a meeting held on November 18, 2022, the Fund’s Board of Trustees approved changing the Fund’s fiscal year end from May 31st to March 31st. This change resulted in a short-period annual report for the ten-month period from June 1, 2022 through March 31, 2023.

The Fund adopted the performance of the Martin Currie International Sustainable Equity Fund (the “predecessor mutual fund”) as the result of a reorganization of the predecessor mutual fund into the fund (the “Reorganization”) that was effective after the market close on October 28, 2022. Prior to the Reorganization, the Fund had not yet commenced operations. The returns shown for periods ended on or prior to October 28, 2022 are those of the predecessor mutual fund. The predecessor mutual fund’s performance is represented by the performance of the predecessor mutual fund’s Class IS Shares.

The following are significant accounting policies consistently followed by the Fund and are in conformity with U.S. generally accepted accounting principles (“GAAP”), including, but not limited to, ASC 946. Estimates and assumptions are required to be made regarding assets, liabilities and changes in net assets resulting from operations when financial statements are prepared. Changes in the economic environment, financial markets and any other

parameters used in determining these estimates could cause actual results to differ. Subsequent events have been evaluated through the date the financial statements were issued.

a. Financial Instrument Valuation

The Fund’s investments in financial instruments are carried at fair value daily. Fair value is the price that would be received to sell an asset or paid to transfer a liability in an orderly transaction between market participants on the measurement date. The Fund calculates the net asset value (NAV) per share each business day as of 4 p.m. Eastern time or the regularly scheduled close of the New York Stock Exchange (NYSE), whichever is earlier. Under compliance policies and procedures approved by the Fund’s Board of Trustees (the Board), the Board has designated the Fund’s investment manager as the valuation designee and has responsibility for oversight of valuation. The investment manager is assisted by the Fund’s administrator in performing this responsibility, including leading the cross-functional Valuation Committee (VC).

The Fund may utilize independent pricing services, quotations from securities and financial instrument dealers, and other market sources to determine fair value.

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

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



16	Annual Report	franklintempleton.com

FRANKLIN TEMPLETON ETF TRUST

NOTES TO FINANCIAL STATEMENTS

1. Organization and Significant Accounting Policies (continued)

a. Financial Instrument Valuation (continued)

net benefit or obligation under the derivative contract, as measured by the fair value of the contract, is included in net assets.

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

Trading in securities on foreign securities stock exchanges and OTC markets may be completed before 4 p.m. Eastern time. In addition, trading in certain foreign markets may not take place on Fund business day. Occasionally, events occur between the time at which trading in a foreign security is completed and 4 p.m. Eastern time that might call into question the reliability of the value of a portfolio security held by the Fund. As a result, differences may arise between the value of the Fund’s portfolio securities as determined at the foreign market close and the latest indications of value at 4 p.m. Eastern time. In order to minimize the potential for these differences, an independent pricing service may be used to adjust the Fund’s portfolio securities to the latest indications of fair value at 4 p.m. Eastern time on March 31, 2023. At March 31, 2023, certain securities may have been fair valued using these procedures, in which case the securities were categorized as Level 2 inputs within the fair value hierarchy (referred to as “market level fair value”).

changes due to an open foreign market are adjusted and reflected by the Fund for financial reporting purposes.

b. Foreign Currency Translation



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FRANKLIN TEMPLETON ETF TRUST

NOTES TO FINANCIAL STATEMENTS

1. Organization and Significant Accounting Policies (continued)

b. Foreign Currency Translation (continued)

all of which affect the market and/or credit risk of the investments.

c. Derivative Financial Instruments

During the period ended March 31, 2023, the Fund did not invest in derivative instruments.

d. Income and Deferred Taxes

The Fund may recognize an income tax liability related to its uncertain tax positions under U.S. GAAP when the uncertain tax position has a less than 50% probability that it will be sustained upon examination by the tax authorities based on its technical merits. As of March 31, 2023, 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.

contingent fees in the Statement of Operations. When uncertainty exists as to the ultimate resolution of these proceedings, the likelihood of receipt of these EU reclaims, and the potential timing of payment, no amounts are reflected in the financial statements. For U.S. income tax purposes, EU reclaims received by the Fund, if any, reduce the amount of foreign taxes Fund shareholders can use as tax deductions or credits on their income tax returns.

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 Fund. Distributions to shareholders are recorded on the ex-dividend date. Distributable earnings are determined according to income tax regulations (tax basis) and may differ from earnings recorded in accordance with U.S. GAAP. These differences may be permanent or temporary.

Permanent differences are reclassified among capital accounts to reflect their tax character. These reclassifications have no impact on net assets or the results of operations. Temporary differences are not reclassified, as they may reverse in subsequent periods.

f. Compensating Balance Arrangements

g. Accounting Estimates

The preparation of financial statements in accordance with U.S. GAAP requires management to make estimates and assumptions that affect the reported amounts of assets and



18	Annual Report	franklintempleton.com

FRANKLIN TEMPLETON ETF TRUST

NOTES TO FINANCIAL STATEMENTS

1. Organization and Significant Accounting Policies (continued)

g. Accounting Estimates (continued)

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

h. Guarantees and Indemnifications

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

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

2. Shares of Beneficial Interest

Shares of the Fund is issued and redeemed at their respective NAV only in aggregations of a 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 Fund generally trade in the secondary market in amounts less than one Creation Unit. The market price of the Fund’s shares will be based on the price in the secondary market which may be at, above or below the most recent NAV. Creation Units may be issued and redeemed in exchange for a designated portfolio of securities and/or cash (which may include cash in lieu of certain securities).

Authorized Participants pay a standard transaction fee to the shareholder servicing agent when purchasing or redeeming Creation Units of the Fund regardless of the number of Creation Units that are being created or redeemed on the same day by the Authorized Participant. The standard transaction fee is imposed to offset transfer and other transaction costs associated with the issuance and redemption of Creation Units and is not charged to or paid by the Funds. Such transactions fees are treated as increases in capital and are disclosed in the Fund’s Statements of Changes in Net Assets.



franklintempleton.com	Annual Report	19

FRANKLIN TEMPLETON ETF TRUST

NOTES TO FINANCIAL STATEMENTS

2. Shares of Beneficial Interest (continued)

At March 31, 2023, there were an unlimited number of shares authorized (without par value). Transactions in the Fund’s shares were as follows:


	Year Ended March 31, 2023^†						Year Ended May 31, 2022						Year Ended May 31, 2021

	Shares			Amount			Shares			Amount			Shares			Amount
Capital Transactions^(a)
Shares sold		787,311		$	10,884,675			2,095,132		$	34,967,223			1,233,089		$	18,783,877
Shares reinvested		—			—			70,688			1,260,375			542			8,901
Shares redeemed		(2,362,502	)		(31,900,630	)		(331,581	)		(5,789,430	)		(501,962	)		(9,093,329	)
Net increase (decrease)		(1,575,191	)	$	(21,015,955	)		1,834,239		$	30,438,168			731,669		$	9,699,449
Class A^(b)
Shares sold		4,822			60,967			32,274			540,466			8,789			158,214
Shares reinvested		—			—			1,355			23,847			28			451
Shares redeemed		(43,699	)		(501,526	)		(11,404	)		(190,145	)		(11,271	)		(204,887	)
Net increase (decrease)		(38,877	)	$	(440,559	)		22,225		$	374,168			(2,454	)	$	(46,222	)
Class C^(b)
Shares sold		745			10,400			117,838			2,291,106			153,634			2,607,437
Shares reinvested		—			—			8,522			151,694			155			2,534
Shares redeemed		(41,637	)		(484,866	)		(233,235	)		(4,008,895	)		(72,199	)		(1,290,855	)
Net increase (decrease)		(40,892	)	$	(474,466	)		(106,875	)	$	(1,566,095	)		81,590		$	1,319,116

^†For the period June 1, 2022 through March 31, 2023.

^aEffective after the market close on October 28, 2022, the Fund’s predecessor mutual fund, Martin Currie International Sustainable Equity Fund, reorganized into Martin Currie Sustainable International Equity ETF (the “Reorganization”). The predecessor mutual funds Class IS Shares’ performance and financial history have been adopted by Martin Currie Sustainable International Equity ETF and will be used going forward. As a result, the information prior to the Reorganization reflects that of the Predecessor Fund’s Class IS Shares. Shares of the class of the Target Fund was converted into Class IS shares as a part of the Reorganization. Such conversion of shares into Class IS shares is included under “Shares sold”.

^bShares of the class of the Target Fund was converted into Class IS shares as a part of the Reorganization. Such conversion of shares into Class IS shares is included under “Shares redeemed”.

3. Transactions with Affiliates



Subsidiary		Affiliation
Franklin Advisers, Inc. (Advisers)		Investment manager
Franklin Templeton Services, LLC (FT Services)		Administrative manager
Franklin Distributors, LLC (Distributors)		Principal underwriter



20	Annual Report	franklintempleton.com

FRANKLIN TEMPLETON ETF TRUST

NOTES TO FINANCIAL STATEMENTS

3. Transactions with Affiliates (continued)

a. Management fees

Effective after the market close on October 28, 2022 pursuant to the investment management agreement with the Trust on behalf of the Fund, the Fund pays Advisers a unified management fee equal to the annual rate of 0.75% based on the average daily net assets of the Fund. The Fund’s management fee was reduced from 0.75% to 0.59% effective February 1, 2023. Pursuant to the investment management agreement, Advisers reimburses the Fund for all acquired fund fees and expenses (such as those associated with the Fund’s investment in a Franklin Templeton money fund) and pays all of the ordinary operating expenses of the Fund, except for (i) the Fund’s management fee, (ii) payments under the Fund’s Rule 12b-1 plan (if any), (iii) brokerage expenses (including any costs incidental to transactions in portfolio securities or instruments), (iv) taxes, (v) interest (including borrowing costs and dividend expenses on securities sold short and overdraft charges), (vi) litigation expenses (including litigation to which the Trust or the Fund may be a party and indemnification of the Trustees and officers with respect thereto), and (vii) other non-routine or extraordinary expenses. Advisers pays Martin Currie for its services.

For the period June 1, 2022 through October 28, 2022 the predecessor mutual fund paid an investment management fee to Legg Mason Partners Fund Advisor, LLC (“LMPFA”), the investment advisor to the predecessor fund based on the average daily net assets of the fund as follows:



Average Daily Net Assets	Annual Rate	��

First $1 billion	0.750%

Next $1 billion	0.700

Next $3 billion	0.650

Next $5 billion	0.600

Over $10 billion	0.550

For its services, LMPFA paid Martin Currie monthly, an aggregate fee equal to 70% of the net management fee it receives from the predecessor mutual fund.

For the period ended March 31, 2023, the Fund’s annualized effective investment management fee rate based on average daily net assets was 0.73%.

b. Administrative Fees

Under an agreement with Advisers, FT Services provides administrative services to the Fund. The fee is paid by Advisers based on the Fund’s average daily net assets, and is not an additional expense of the Fund. For the period June 1, 2022 through October 28, 2022, LMPFA provided administrative and certain oversight services to the Fund.

4. Income Taxes

For tax purposes, capital losses of the predecessor mutual fund may be carried over to offset future capital gains, if any. At March 31, 2023, the capital loss carryforwards were as follows:



	Period Ended March 31, 2023

Capital loss carryforwards not subject to expiration:
Long term		$1,696,352
Short term		3,468,090
Total capital loss carryforwards		$5,164,442



franklintempleton.com	Annual Report	21

FRANKLIN TEMPLETON ETF TRUST

NOTES TO FINANCIAL STATEMENTS

4. Income Taxes (continued)

The tax character of distributions paid during the period ended March 31, 2023 and the predecessor mutual fund of May 31 2022, were as follows:



	Period Ended March 31, 2023		Year Ended May 31, 2022
Distributions paid from:
Ordinary income		$ 156,660		$ 1,007,863
Long-term Capital Gain		—		435,219
		$ 156,660		$ 1,443,082

At March 31, 2023, the cost of investments and net unrealized appreciation (depreciation) for income tax purposes were as follows:



	Period Ended March 31, 2023
Cost of investments	$	21,056,228

Unrealized appreciation	$	643,841
Unrealized depreciation		(2,139,502	)
Net unrealized appreciation (depreciation)	$	(1,495,661	)
Distributable earnings – undistributed ordinary income	$	1,862

Differences between income and/or capital gains as determined on a book basis and a tax basis are primarily due to wash sales.

5. Investment Transactions

Purchases and sales of investments (excluding short term securities and in-kind transactions, if any) for the period ended March 31, 2023, $8,031,742 and $13,935,494, respectively.

6. Global Credit Facility

7. Fair Value Measurements

•

Level 1 – quoted prices in active markets for identical financial instruments



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FRANKLIN TEMPLETON ETF TRUST

NOTES TO FINANCIAL STATEMENTS

7. Fair Value Measurements (continued)

•

Level 2 – other significant observable inputs (including quoted prices for similar financial instruments, interest rates, prepayment speed, credit risk, etc.)

•

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

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

A summary of inputs used as of March 31, 2023, in valuing the Fund’s assets and liabilities carried at fair value, is as follows:

Level 1

Level 2

Level 3

Total

Martin Currie Sustainable International Equity ETF

Assets:

Investments in Securities:^a

Equity Investments^b

$19,560,567

$ —

$19,560,567

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

^bIncludes common stocks.

8. New Accounting Pronouncements

9. Subsequent Events

The Fund has evaluated subsequent events through the issuance of these Financial Statements and determined that no events have occurred that require disclosure.

Abbreviations


ADR		American Depositary Receipt

CDI		Clearing House Electronic Subregister
		System Depositary Interest

SPA		Standby Purchase Agreement



franklintempleton.com	Annual Report	23

Report of Independent Registered Public Accounting Firm

To the Board of Trustees of Franklin Templeton ETF Trust and Shareholders of Martin Currie Sustainable International Equity ETF

Opinion on the Financial Statements

We have audited the accompanying statement of assets and liabilities, including the schedule of investments, of Martin Currie Sustainable International Equity ETF (one of the funds constituting Franklin Templeton ETF Trust, hereafter collectively referred to as the “Fund”) as of March 31, 2023, the related statements of operations for the period June 1, 2022 through March 31, 2023 and the year ended May 31, 2022, and the statements of changes in net assets for the period June 1, 2022 through March 31, 2023, and each of the two years in the period ended May 31, 2022, including the related notes, and the financial highlights for the period June 1, 2022 through March 31, 2023, and each of the five years in the period ended May 31, 2022 (collectively referred to as the “financial statements”). In our opinion, the financial statements present fairly, in all material respects, the financial position of the Fund as of March 31, 2023, and the results of its operations for the period June 1, 2022 through March 31, 2023 and the year ended May 31, 2022, the changes in its net assets for the period June 1, 2022 through March 31, 2023, and each of the two years in the period ended May 31, 2022, and the financial highlights for the period June 1, 2022 through March 31, 2023, and each of the five years in the period ended May 31, 2022, in conformity with accounting principles generally accepted in the United States of America.

Basis for Opinion

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, 2023 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 opinion.

PricewaterhouseCoopers LLP

San Francisco, California

May 23, 2023

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



24	Annual Report	franklintempleton.com

Tax information (unaudited)

The following tax information for the Fund is required to be furnished to shareholders with respect to the income earned and distributions paid during their fiscal year.

The Fund below hereby report the following amounts, or if subsequently determined to be different, the maximum allowable amounts, for the period ended March 31, 2023:


Foreign Taxes Paid	$	13,325
Foreign Source Income	$	169,705



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FRANKLIN TEMPLETON ETF TRUST

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	59	AssetMark Financial Holdings, Inc. (investment solutions) (2018-present) and PhonePe (2020-present) (payment and financial services); formerly, Axis Bank (financial) (2013- 2021), FlipKart Limited (2019-2020) (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	59	S&P Global, Inc. (financial information services) (February 2022), Borg Warner (automotive) (2018-present), LegalShield (consumer services) (2020-present); and formerly, IHS Markit (information services) (2015-2022), 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	59	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	70	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, of some of the other subsidiaries of Franklin Resources, Inc. and of certain funds in the Franklin Templeton/Legg Mason fund complex; 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 certain funds in the Franklin Templeton/Legg Mason fund complex.

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; Assistant Secretary, Franklin Distributors, LLC; and officer of certain funds in the Franklin Templeton/Legg Mason fund complex.

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 certain funds in the Franklin Templeton/Legg Mason fund complex; and formerly, Vice President, Global Tax (2012-April 2017) and Treasurer/Assistant Treasurer, Franklin Templeton (2009-2017).

Fred Jensen (1963) 620 Eighth Avenue, 47th Floor New York, NY 10018	Chief Compliance Officer	Since 2021	Not Applicable	Not Applicable

Principal Occupation During at Least the Past 5 Years:
Director - Global Compliance of Franklin Templeton; Managing Director of Legg Mason & Co.; Director of Compliance, Legg Mason Office of the Chief Compliance Officer; Chief Compliance Officer, Franklin Advisory Services, LLC; Compliance Officer, Franklin Advisers, Inc.; officer of certain funds in the Franklin Templeton/Legg Mason fund complex; formerly, Chief Compliance Officer of Legg Mason Global Asset Allocation; Chief Compliance Officer, Legg Mason Private Portfolio; Chief Compliance Officer to The Reserves Funds (investment adviser, funds and broker-dealer) and Ambac Financial Group (investment adviser, funds and broker-dealer).

Susan Kerr (1949) 620 Eighth Avenue New York, NY 10018	Vice President - AML Compliance	Since 2021	Not Applicable	Not Applicable

Principal Occupation During at Least the Past 5 Years:
Senior Compliance Analyst, Franklin Templeton; Chief Anti-Money Laundering Compliance Officer, Legg Mason & Co., or its affiliates; Anti Money Laundering Compliance Officer; Senior Compliance Officer, LMIS; and officer of certain funds in the Franklin Templeton/Legg Mason fund complex.



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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

Todd Mathias (1983) One Franklin Parkway, San Mateo, Ca 94403-1906	Vice President	Since March 2022	Not Applicable	Not Applicable

Principal Occupation During at Least the Past 5 Years:
Head of US ETF Product Strategy, Franklin Templeton; and officer of certain funds in the Franklin Templeton/Legg Mason fund complex.

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.; and officer of certain funds in the Franklin Templeton/Legg Mason fund complex.

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 certain funds in the Franklin Templeton/Legg Mason fund complex.

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:
Senior Associate General Counsel, Franklin Templeton; and officer of certain funds in the Franklin Templeton/Legg Mason fund complex.

Lori A. Weber (1964) 300 S.E. 2nd Street Fort Lauderdale, FL 33301-1923	Vice President and Secretary	Vice President since 2011 and Secretary since 2013	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 certain funds in the Franklin Templeton/Legg Mason fund complex.

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

experience, the Board believes that Mr. Bhagat and Ms. McWhinney have 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 presents 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 and Ms. McWhinney are independent Board members as that term is defined under the relevant Securities and Exchange Commission Rules and Releases.



franklintempleton.com	Annual Report	29

Shareholder Information

Statement regarding liquidity risk management program (unaudited)

Each Fund has adopted and implemented a written Liquidity Risk Management Program (the “LRMP”) as required by Rule 22e-4 under the Investment Company Act of 1940 (the “Liquidity Rule”). The LRMP is designed to assess and manage each Fund’s liquidity risk, which is defined as the risk that the Fund could not meet requests to redeem shares issued by the Fund without significant dilution of remaining investors’ interests in the Fund. In accordance with the Liquidity Rule, the LRMP includes policies and procedures that provide for: (1) assessment, management, and review (no less frequently than annually) of each Fund’s liquidity risk; (2) classification of each Fund’s portfolio holdings into one of four liquidity categories (Highly Liquid, Moderately Liquid, Less Liquid, and Illiquid); (3) for Funds that do not primarily hold assets that are Highly Liquid, establishing and maintaining a minimum percentage of the Fund’s net assets in Highly Liquid investments (called a “Highly Liquid Investment Minimum” or “HLIM”); and (4) prohibiting the Fund’s acquisition of Illiquid investments that would result in the Fund holding more than 15% of its net assets in Illiquid assets. The LRMP also requires reporting to the Securities and Exchange Commission (“SEC”) (on a non-public basis) and to the Board if the Fund’s holdings of Illiquid assets exceed 15% of the Fund’s net assets. Funds with HLIMs must have procedures for addressing HLIM shortfalls, including reporting to the Board and, with respect to HLIM shortfalls lasting more than seven consecutive calendar days, reporting to the SEC (on a non-public basis).

The Director of Liquidity Risk within the Investment Risk Management Group (the “IRMG”) is the appointed Administrator of the LRMP. The IRMG maintains the Investment Liquidity Committee (the “ILC”) to provide oversight and administration of policies and procedures governing liquidity risk management for Franklin Templeton and Legg Mason products and portfolios. The ILC includes representatives from Franklin Templeton’s Risk, Trading, Global Compliance, Legal, Investment Compliance, Investment Operations, Valuation Committee, Product Management and Global Product Strategy.

In assessing and managing each Fund’s liquidity risk, the ILC considers, as relevant, a variety of factors, including the Fund’s investment strategy and the liquidity of its portfolio investments during both normal and reasonably foreseeable stressed conditions; its short and long-term cash flow projections; and its cash holdings and access to other funding sources including the Funds’ interfund lending facility

and line of credit. Classification of the Fund’s portfolio holdings in the four liquidity categories is based on the number of days it is reasonably expected to take to convert the investment to cash (for Highly Liquid and Moderately Liquid holdings) or sell or dispose of the investment (for Less Liquid and Illiquid investments), in current market conditions without significantly changing the investment’s market value.

Each Fund primarily holds liquid assets that are defined under the Liquidity Rule as “Highly Liquid Investments,” and therefore is not required to establish an HLIM. Highly Liquid Investments are defined as cash and any investment reasonably expected to be convertible to cash in current market conditions in three business days or less without the conversion to cash significantly changing the market value of the investment.

At meetings of the Funds’ Board of Trustees/Directors held in May 2022, the Program Administrator provided a written report to the Board addressing the adequacy and effectiveness of the program for the year ended December 31, 2021. The Program Administrator report concluded that (i.) the LRMP, as adopted and implemented, remains reasonably designed to assess and manage each Fund’s liquidity risk; (ii.) the LRMP, including the Highly Liquid Investment Minimum (“HLIM”) where applicable, was implemented and operated effectively to achieve the goal of assessing and managing each Fund’s liquidity risk; and (iii.) each Fund was able to meet requests for redemption without significant dilution of remaining investors’ interests in the Fund.

Proxy Voting Policies and Procedures



30	Annual Report	franklintempleton.com

Quarterly Schedule of Investments

Premium/Discount Information



franklintempleton.com	Annual Report	31

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


	Annual Report Martin Currie Sustainable International Equity ETF

	Investment Manager	Distributor	Investor Services

	Franklin Advisers, Inc. Subadvisor Martin Currie Inc.	Franklin Distributors, LLC (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


www.franklintempleton.com © 2023 Franklin Templeton Investments. All rights reserved.			MCSE A 05/23

ANNUAL REPORT

FRANKLIN U.S. EQUITY

INDEX ETF

Formerly, Franklin LibertyQ Global Equity ETF

A Series of Franklin Templeton ETF Trust

March 31, 2023

LOGO



Contents

Annual Report

Franklin U.S. Equity Index ETF			2
Performance Summary			5
Your Fund’s Expenses			8
Financial Highlights and Schedules of Investments			9
Financial Statements			22
Notes to Financial Statements			25
Report of Independent Registered Public Accounting Firm			33
Tax Information			34
Board Members and Officers			35
Shareholder Information			38

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

Franklin U.S. Equity Index ETF

Formerly, Franklin LibertyQ Global Equity ETF

This annual report for Franklin U.S. Equity Index ETF covers the fiscal year ended March 31, 2023. Effective August 1, 2022, Franklin LibertyQ Global Equity ETF changed its name to Franklin U.S. Equity Index ETF. The Fund also changed its ticker symbol, underlying index, distribution frequency, investment goal and strategy and reduced its unified management fee.

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 Morningstar^® US Target Market Exposure 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 includes large- and mid-capitalization stocks representing the top 85% of the U.S. equity market by float-adjusted market capitalization (“float-adjusted” means that only shares that are estimated to be publicly available to investors are included in the calculation of market capitalization).


Geographic Composition

3/31/23

	% of Total Net Assets
North America		98.0	%
Europe		1.5	%
Latin America & Caribbean		0.2	%
Asia		0.0	%
Short-Term Investments & Other Net Assets		0.3	%

Performance Overview

During the 12-month period, the Fund posted cumulative total returns of -8.48% based on market price and -8.63% based on net asset value (NAV).

On August 1, 2022, the Fund changed its underlying index from the LibertyQ Global Equity Index-NR to the Underlying Index, which also became the Fund’s primary benchmark at

that time. For the 12-month period, the Underlying Index posted a cumulative total return of -8.53%.² The Linked Morningstar^® US Target Market Exposure Index, which measures the performance of the previous underlying index through July 31, 2022, followed by the performance of the Underlying Index thereafter, posted a -8.56% cumulative total return for the same period.²

The Fund’s former primary benchmark, the MSCI All Country World Index (ACWI)-NR posted a -6.96% cumulative total return for the 12-month period.³ The Underlying Index replaced the MSCI ACWI-NR as the Fund’s primary benchmark effective August 1, 2022, to more accurately reflect the Fund’s new investment strategy.

You can find more of the Fund’s performance data in the Performance Summary beginning on page 5.

Economic and Market Overview

U.S. equities, as measured by the Standard & Poor’s^® 500 Index, posted a -7.73% total return for the 12 months ended March 31, 2023.3 High inflation, rising interest rates and geopolitical instability contributed to a sharp decline in equity prices. Consumer spending continued to rise, but deteriorating financial conditions and investors’ expectations for slower growth pressured equity markets.

1. The Morningstar^®US Target Market Exposure Index is a free float-adjusted market capitalization weighted index that is maintained and calculated by Morningstar, Inc.

2. Source: FactSet.

3. 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 Schedule of Investments (SOI). The SOI begins on page 10.



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FRANKLIN U.S. EQUITY INDEX ETF

unemployment rate down to a historic 54-year low of 3.4% in January 2023 before ending the period at 3.5%.


Top 10 Sectors/Industries

3/31/23

	% of Total Net Assets
Software		9.9%
Technology Hardware, Storage & Peripherals		7.1%
Semiconductors & Semiconductor Equipment		6.3%
Interactive Media & Services		4.7%
IT Services		4.5%
Oil, Gas & Consumable Fuels		4.2%
Pharmaceuticals		4.0%
Capital Markets		3.0%
Banks		3.0%
Internet & Direct Marketing Retail		2.9%

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 Underlying Index. The Fund may use either a replication strategy or representative sampling strategy. The Fund generally rebalances and reconstitutes its portfolio in accordance with the Underlying Index, which is rebalanced quarterly and reconstituted semiannually.

The Fund may invest in equity futures and equity total return swaps to provide additional opportunities to add value and better track the performance of the Fund’s Underlying Index.


Top 10 Holdings

3/31/23

Company *Sector/Industry, Country*	% of Total Net Assets
Apple, Inc. Technology Hardware, Storage & Peripherals, United States		6.8%
Microsoft Corp. Software, United States		6.0%
Amazon.com, Inc. Internet & Direct Marketing Retail, United States		2.6%
NVIDIA Corp. Semiconductors & Semiconductor Equipment, United States		1.9%
Alphabet, Inc., Class A Interactive Media & Services, United States		1.7%
Tesla, Inc. Automobiles, United States		1.6%
Berkshire Hathaway, Inc., Class B Financial Services, United States		1.5%
Alphabet, Inc., Class C Interactive Media & Services, United States		1.5%
Meta Platforms, Inc., Class A Interactive Media & Services, United States		1.3%
Exxon Mobil Corp. Oil, Gas & Consumable Fuels, United States		1.3%

Manager’s Discussion

For the fiscal year ended March 31, 2023, individual holdings that hindered the Fund’s absolute return included Tesla, Amazon.com and Alphabet. Individual holdings that lifted the Fund’s absolute return included NVIDIA, Merck and Eli Lilly.

Prior to August 1, 2022, the Fund’s research-based selection process focused on four investment factors: value, quality, momentum and low volatility. Since then, the Fund has focused on offering broad exposure to the U.S. market. Of the four target-style factors, value and quality contributed to the Fund’s relative performance for the reporting period, while momentum detracted modestly. The low volatility factor had no significant impact on the Fund’s relative return.

As of July 20, 2022, the Franklin U.S. Equity Index ETF held Russian securities that were fair valued at zero. While Russian securities were removed from the Fund’s former underlying index and Russian securities are not included in the Fund’s new Underlying Index, as of July 20, 2022, the



franklintempleton.com	Annual Report	3

FRANKLIN U.S. EQUITY INDEX ETF

Fund has not been able to dispose of all such securities due to ongoing issues related to Russia’s invasion of Ukraine. The Fund will continue to monitor Russian related developments and will seek to dispose of such securities as soon as it is practicable.


Top 10 Countries

3/31/23

	% of Total Net Assets
United States		99.3%
Brazil		0.2%
China		0.1%
Switzerland		0.1%

Thank you for your participation in Franklin U.S. Equity Index ETF. We look forward to serving your future investment needs.

Dina Ting, CFA

Hailey Harris

Joe Diederich

Basit Amin, CFA

Portfolio Management Team

CFA^® is a trademark owned by CFA Institute.



4	Annual Report	franklintempleton.com

FRANKLIN U.S. EQUITY INDEX ETF

Performance Summary as of March 31, 2023

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 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 (6/3/16), 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.

Performance as of 3/31/23^1,2

Cumulative Total Return³

Average Annual Total Return³

Based on

NAV⁴

Based on

market price⁵

Based on

NAV⁴

Based on

market price⁵

1-Year

-8.63%

-8.48%

-8.63%

-8.48%

5-Year

+35.89%

+36.18%

+6.33%

+6.37%

Since Inception (6/1/16)

+70.09%

+69.97%

+8.09%

+8.08%


Distribution Rate⁶	30-Day Standardized Yield⁷
0.19%		1.72%

See page 7 for Performance Summary footnotes.



franklintempleton.com	Annual Report	5

FRANKLIN U.S. EQUITY INDEX ETF

PERFORMANCE SUMMARY

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

6/1/16–3/31/23

LOGO

See page 7 for Performance Summary footnotes.



6	Annual Report	franklintempleton.com

FRANKLIN U.S. EQUITY INDEX ETF

PERFORMANCE SUMMARY

Distributions (4/1/22–3/31/23)

Net Investment
Income

$0.828387

Total Annual Operating Expenses⁹

0.03%

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 total annual operating expenses are as of the Fund’s prospectus available at the time of publication. Actual expenses may be higher and may impact portfolio returns.

3. 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.

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

5. Assumes reinvestment of distributions based on market price.

6. Distribution rate is based on an annualization of the March dividend and the NAV per share on 3/31/23.

8. Source: FactSet. The Morningstar^® US Target Market Exposure Index includes large- and mid-capitalization stocks representing the top 85% of the U.S. equity market by float-adjusted market capitalization. The Linked Morningstar^® US Target Market Exposure Index measures the performance of the LibertyQ Global Equity Index-NR through July 31, 2022, followed by the performance of the Morningstar^® US Target Market Exposure Index thereafter. The LibertyQ Global Equity Index-NR is a systematic, rules-based proprietary index that is owned and calculated by MSCI Inc. 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-NR is a free float-adjusted, market capitalization-weighted index designed to measure the equity market performance of global developed and emerging markets. Net Returns (NR) include income net of tax withholding when dividends are paid.

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

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



franklintempleton.com	Annual Report	7

FRANKLIN U.S. EQUITY INDEX 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 10/1/22		Ending Account Value 3/31/23		Expenses Paid During Period 10/1/22–3/31/23^1,2		Ending Account Value 3/31/23		Expenses Paid During Period 10/1/22–3/31/23^1,2		Net Annualized Expense Ratio²
	$1,000.00	$	1,154.10	$	0.16	$	1,024.78	$	0.15		0.03	%

2. Effective August 1, 2022, the unified management fee was reduced from 0.35% to 0.03%. Had the new unified management fee been in effect for the full period, the expenses paid would have been $0.13 based upon the Fund’s actual performance and $0.15 based upon a hypothetical 5% return.



8	Annual Report	franklintempleton.com

FRANKLIN TEMPLETON ETF TRUST

Financial Highlights

Franklin U.S. Equity Index ETF^a



	Year Ended March 31,

	2023			2022			2021			2020			2019
Per share operating performance (for a share outstanding throughout the year)

Net asset value, beginning of year	$	40.04		$	37.65		$	26.77		$	30.90		$	30.14


Income from investment operations^b:

Net investment income^c		0.59			1.05			0.81			0.90			0.89

Net realized and unrealized gains (losses)		(4.10	)		2.34			10.97			(4.00	)		0.67


Total from investment operations		(3.51	)		3.39			11.78			(3.10	)		1.56


Less distributions from net investment income		(0.83	)		(1.00	)		(0.90	)		(1.03	)		(0.80	)


Net asset value, end of year	$	35.70		$	40.04		$	37.65		$	26.77		$	30.90


Total return^d		(8.63)%			9.00%			44.55%			(10.53)%			5.44%

Ratios to average net assets^e

Expenses before waiver and payments by affiliates		0.03%			0.35%			0.35%			0.35%			0.35%

Expenses net of waiver and payments by affiliates		0.03%			0.35%			0.34%			0.34%			0.34%

Net investment income		1.73%			2.63%			2.45%			2.86%			2.99%

Supplemental data

Net assets, end of year (000’s)		$681,913			$16,014			$15,059			$16,059			$24,721

Portfolio turnover rate^f		6.33%	^g		24.13%	^g		31.70%	^g		27.85%	^g		34.99%

^aEffective August 1, 2022, Formerly, Franklin LibertyQ Global Equity ETF was renamed Franklin U.S. Equity Index ETF.

^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:			6.33%				24.13%				31.70%				27.85%				—

franklintempleton.com

The accompanying notes are an integral part of these financial statements.

Annual Report

FRANKLIN TEMPLETON ETF TRUST

Schedule of Investments, March 31, 2023

Franklin U.S. Equity Index ETF



		Industry		Shares		Value
	Common Stocks 99.7%
	Brazil 0.2%
a	MercadoLibre, Inc.		Internet & Direct Marketing Retail		867	$	1,142,758

	China 0.1%
	NXP Semiconductors NV		Semiconductors & Semiconductor Equipment		4,966		926,035
a,b	Sunac China Holdings Ltd.		Real Estate Management & Development		1,000		198


							926,233

	Ireland 0.0%^†
	Seagate Technology Holdings PLC		Technology Hardware, Storage & Peripherals		3,617		239,156

	Russia 0.0%^†
a,b	Alrosa PJSC		Metals & Mining		3,584		—
b	Gazprom PJSC		Oil, Gas & Consumable Fuels		15,428		—
b	Inter RAO UES PJSC		Electric Utilities		53,546		—
b	LUKOIL PJSC		Oil, Gas & Consumable Fuels		516		—
b	MMC Norilsk Nickel PJSC		Metals & Mining		100		—
a,b	Novolipetsk Steel PJSC		Metals & Mining		2,272		—
b	PhosAgro PJSC		Chemicals		73		—
b	PhosAgro PJSC		Chemicals		2		—
a,b	Polymetal International PLC		Metals & Mining		470		—
a,b	Polyus PJSC		Metals & Mining		50		—
b	Rosneft Oil Co. PJSC		Oil, Gas & Consumable Fuels		1,154		—
a,b	Severstal PAO		Metals & Mining		392		—
b	Surgutneftegas PJSC		Oil, Gas & Consumable Fuels		8,286		—
b	Tatneft PJSC		Oil, Gas & Consumable Fuels		1,974		—
a,b	TCS Group Holding PLC, GDR		Banks		118		—
b	United Co. RUSAL International PJSC		Metals & Mining		1,714		—


							—

	Switzerland 0.1%
	TE Connectivity Ltd.		Electronic Equipment, Instruments & Components		6,112		801,589

	United States 99.3%
	3M Co.		Industrial Conglomerates		10,696		1,124,257
	Abbott Laboratories		Health Care Equipment & Supplies		33,031		3,344,719
	AbbVie, Inc.		Biotechnology		33,616		5,357,382
	Accenture PLC, Class A		IT Services		11,842		3,384,562
	Activision Blizzard, Inc.		Entertainment		13,752		1,177,034
a	Adobe, Inc.		Software		8,786		3,385,861
	Advance Auto Parts, Inc.		Specialty Retail		1,146		139,365
a	Advanced Micro Devices, Inc.		Semiconductors & Semiconductor Equipment		30,560		2,995,186
	AES Corp.		Independent Power Producers & Energy Traders		12,403		298,664
	Aflac, Inc.		Insurance		10,696		690,106
	Agilent Technologies, Inc.		Life Sciences Tools & Services		5,730		792,688
a	agilon health, Inc.		Health Care Providers & Services		3,617		85,904
	Air Products & Chemicals, Inc.		Chemicals		4,202		1,206,856
a	Airbnb, Inc., Class A		Hotels, Restaurants & Leisure		7,437		925,163
a	Akamai Technologies, Inc.		IT Services		3,056		239,285
	Albemarle Corp.		Chemicals		2,292		506,624
	Albertsons Cos., Inc., Class A		Consumer Staples Distribution & Retail		3,056		63,504
	Alexandria Real Estate Equities, Inc.		Diversified REITs		3,056		383,803
a	Align Technology, Inc.		Health Care Equipment & Supplies		1,528		510,566
	Allegion PLC		Building Products		1,707		182,188
	Alliant Energy Corp.		Electric Utilities		4,966		265,184
	Allstate Corp.		Insurance		4,966		550,282
	Ally Financial, Inc.		Consumer Finance		5,909		150,620
a	Alnylam Pharmaceuticals, Inc.		Biotechnology		2,292		459,133
a	Alphabet, Inc., Class A		Interactive Media & Services		113,072		11,728,959
a	Alphabet, Inc., Class C		Interactive Media & Services		98,556		10,249,824



10	Annual Report	franklintempleton.com

FRANKLIN TEMPLETON ETF TRUST

SCHEDULE OF INVESTMENTS

Franklin U.S. Equity Index ETF (continued)



		Industry			Shares		Value
	Common Stocks (continued)
	United States (continued)
	Altria Group, Inc.		Tobacco			33,998	$	1,516,991
a	Amazon.com, Inc.		Internet & Direct Marketing Retail			169,226		17,479,354
	Amcor PLC		Containers & Packaging			28,650		326,037
	Ameren Corp.		Multi-Utilities			4,966		429,013
	American Electric Power Co., Inc.		Electric Utilities			9,932		903,713
	American Express Co.		Consumer Finance			11,460		1,890,327
	American Financial Group, Inc.		Insurance			1,325		160,988
	American International Group, Inc.		Insurance			14,134		711,788
	American Tower Corp.		Diversified REITs			8,786		1,795,331
	American Water Works Co., Inc.		Water Utilities			3,820		559,592
	Ameriprise Financial, Inc.		Capital Markets			1,910		585,415
	AmerisourceBergen Corp.		Health Care Providers & Services			3,056		489,296
	AMETEK, Inc.		Electrical Equipment			4,584		666,193
	Amgen, Inc.		Biotechnology			10,111		2,444,334
	Amphenol Corp., Class A		Electronic Equipment, Instruments & Components			11,078		905,294
	Analog Devices, Inc.		Semiconductors & Semiconductor Equipment			9,550		1,883,451
	Annaly Capital Management, Inc.		Mortgage Real Estate Investment Trusts (REITs	)		8,786		167,900
a	ANSYS, Inc.		Software			1,528		508,518
	Aon PLC, Class A		Insurance			3,820		1,204,408
	APA Corp.		Oil, Gas & Consumable Fuels			6,112		220,399
	Apollo Global Management, Inc.		Financial Services			8,201		517,975
	Apple, Inc.		Technology Hardware, Storage & Peripherals			282,298		46,550,940
	Applied Materials, Inc.		Semiconductors & Semiconductor Equipment			16,044		1,970,685
a	Aptiv PLC		Automobile Components			4,966		557,136
	Aramark		Hotels, Restaurants & Leisure			4,763		170,515
a	Arch Capital Group Ltd.		Insurance			6,876		466,674
	Archer-Daniels-Midland Co.		Food Products			10,314		821,613
a	Arista Networks, Inc.		Communications Equipment			4,584		769,470
	Arthur J Gallagher & Co.		Insurance			3,999		765,049
a	Aspen Technology, Inc.		Software			382		87,428
	AT&T, Inc.		Diversified Telecommunication Services			135,992		2,617,846
a	Atlassian Corp., Class A		Software			2,674		457,709
	Atmos Energy Corp.		Gas Utilities			2,674		300,451
a	Autodesk, Inc.		Software			4,202		874,688
	Automatic Data Processing, Inc.		IT Services			7,819		1,740,744
a	AutoZone, Inc.		Specialty Retail			338		830,855
	AvalonBay Communities, Inc.		Diversified REITs			2,674		449,392
	Avangrid, Inc.		Electric Utilities			1,146		45,702
a	Avantor, Inc.		Life Sciences Tools & Services			12,606		266,491
	Avery Dennison Corp.		Containers & Packaging			1,528		273,405
	Baker Hughes Co.		Energy Equipment & Services			19,482		562,251
	Ball Corp.		Containers & Packaging			5,909		325,645
	Bank of America Corp.		Banks			132,172		3,780,119
	Bank of New York Mellon Corp.		Capital Markets			13,752		624,891
	Bath & Body Works, Inc.		Specialty Retail			4,202		153,709
	Baxter International, Inc.		Health Care Equipment & Supplies			9,550		387,348
	Becton Dickinson & Co.		Health Care Equipment & Supplies			5,348		1,323,844
	Bentley Systems, Inc., Class B		Software			3,617		155,495
a	Berkshire Hathaway, Inc., Class B		Financial Services			33,998		10,497,562
	Best Buy Co., Inc.		Specialty Retail			3,820		298,991
a	Bills Holdings, Inc.		Software			1,528		123,982
a	Biogen, Inc.		Biotechnology			2,674		743,452
a	BioMarin Pharmaceutical, Inc.		Biotechnology			3,438		334,311
a	Bio-Rad Laboratories, Inc., Class A		Life Sciences Tools & Services			382		182,986
	Bio-Techne Corp.		Life Sciences Tools & Services			3,056		226,725
	BlackRock, Inc.		Capital Markets			2,831		1,894,279
	Blackstone, Inc.		Capital Markets			13,370		1,174,421



franklintempleton.com	Annual Report	11

FRANKLIN TEMPLETON ETF TRUST

SCHEDULE OF INVESTMENTS

Franklin U.S. Equity Index ETF (continued)



		Industry		Shares		Value
	Common Stocks (continued)
	United States (continued)
a	Block, Inc.		IT Services		10,314	$	708,056
a	Boeing Co.		Aerospace & Defense		10,696		2,272,151
a	Booking Holdings, Inc.		Hotels, Restaurants & Leisure		713		1,891,168
	Booz Allen Hamilton Holding Corp.		Professional Services		2,674		247,853
	BorgWarner, Inc.		Automobile Components		4,584		225,120
	Boston Properties, Inc.		Diversified REITs		2,674		144,717
a	Boston Scientific Corp.		Health Care Equipment & Supplies		27,122		1,356,914
	Bristol-Myers Squibb Co.		Pharmaceuticals		40,110		2,780,024
	Broadcom, Inc.		Semiconductors & Semiconductor Equipment		8,022		5,146,434
	Broadridge Financial Solutions, Inc.		IT Services		2,292		335,938
	Brown & Brown, Inc.		Insurance		4,584		263,213
	Brown-Forman Corp., Class A		Beverages		1,146		74,708
	Brown-Forman Corp., Class B		Beverages		3,438		220,960
	Bunge Ltd.		Food Products		2,853		272,519
a	Burlington Stores, Inc.		Specialty Retail		1,146		231,607
a	Cadence Design Systems, Inc.		Software		5,145		1,080,913
a	Caesars Entertainment, Inc.		Hotels, Restaurants & Leisure		3,999		195,191
	Camden Property Trust		Diversified REITs		1,910		200,244
	Campbell Soup Co.		Food Products		3,820		210,024
	Capital One Financial Corp.		Consumer Finance		7,258		697,929
	Cardinal Health, Inc.		Health Care Providers & Services		4,966		374,933
	Carlyle Group, Inc.		Capital Markets		4,202		130,514
a	CarMax, Inc.		Specialty Retail		3,056		196,440
a	Carnival Corp.		Hotels, Restaurants & Leisure		19,100		193,865
	Carrier Global Corp.		Building Products		15,841		724,726
a	Catalent, Inc.		Pharmaceuticals		3,438		225,911
	Caterpillar, Inc.		Machinery		9,932		2,272,839
a	CBRE Group, Inc., Class A		Real Estate Management & Development		6,112		445,015
	CDW Corp.		Electronic Equipment, Instruments & Components		2,674		521,136
	Celanese Corp.		Chemicals		1,910		207,980
a	Centene Corp.		Health Care Providers & Services		10,314		651,948
	CenterPoint Energy, Inc.		Multi-Utilities		11,639		342,885
a	Ceridian HCM Holding, Inc.		Software		3,056		223,760
	CF Industries Holdings, Inc.		Chemicals		3,820		276,912
	CH Robinson Worldwide, Inc.		Air Freight & Logistics		2,292		227,756
a	Charles River Laboratories International, Inc.		Life Sciences Tools & Services		943		190,316
	Charles Schwab Corp.		Capital Markets		29,032		1,520,696
a	Charter Communications, Inc., Class A		Media		1,910		683,035
	Cheniere Energy, Inc.		Oil, Gas & Consumable Fuels		4,584		722,438
	Chevron Corp.		Oil, Gas & Consumable Fuels		33,616		5,484,787
a	Chipotle Mexican Grill, Inc.		Hotels, Restaurants & Leisure		516		881,478
	Chubb Ltd.		Insurance		7,819		1,518,293
	Church & Dwight Co., Inc.		Household Products		4,584		405,271
	Cigna Group		Health Care Providers & Services		5,730		1,464,187
	Cincinnati Financial Corp.		Insurance		3,056		342,516
	Cintas Corp.		Commercial Services & Supplies		1,528		706,975
	CisCo Systems, Inc.		Communications Equipment		77,928		4,073,686
	Citigroup, Inc.		Banks		36,672		1,719,550
	Citizens Financial Group, Inc.		Banks		9,347		283,868
a	Clarivate PLC		Professional Services		7,819		73,420
	Clorox Co.		Household Products		2,292		362,686
a	Cloudflare, Inc., Class A		Software		5,348		329,758
	CME Group, Inc.		Capital Markets		6,876		1,316,892
	CMS Energy Corp.		Multi-Utilities		5,730		351,707
	Coca-Cola Co.		Beverages		74,108		4,596,919
	Cognex Corp.		Electronic Equipment, Instruments & Components		3,438		170,353
	Cognizant Technology Solutions Corp., Class A		IT Services		9,932		605,157



12	Annual Report	franklintempleton.com

FRANKLIN TEMPLETON ETF TRUST

SCHEDULE OF INVESTMENTS

Franklin U.S. Equity Index ETF (continued)



		Industry		Shares		Value
	Common Stocks (continued)
	United States (continued)
a,c	Coinbase Global, Inc., Class A		Capital Markets		3,056	$	206,494
	Colgate-Palmolive Co.		Household Products		16,044		1,205,707
	Comcast Corp., Class A		Media		79,838		3,026,659
	Comerica, Inc.		Banks		2,292		99,519
	Conagra Brands, Inc.		Food Products		9,168		344,350
	ConocoPhillips		Oil, Gas & Consumable Fuels		23,302		2,311,791
	Consolidated Edison, Inc.		Multi-Utilities		6,673		638,406
	Constellation Brands, Inc., Class A		Beverages		3,056		690,320
	Constellation Energy Corp.		Electric Utilities		6,112		479,792
	Cooper Cos., Inc.		Health Care Equipment & Supplies		943		352,078
a	Copart, Inc.		Commercial Services & Supplies		8,022		603,335
	Corebridge Financial, Inc.		Financial Services		1,528		24,479
	Corning, Inc.		Electronic Equipment, Instruments & Components		14,313		504,963
	Corteva, Inc.		Chemicals		13,549		817,140
a	CoStar Group, Inc.		Professional Services		7,640		526,014
	Costco Wholesale Corp.		Consumer Staples Distribution & Retail		8,404		4,175,695
	Coterra Energy, Inc., Class A		Oil, Gas & Consumable Fuels		14,898		365,597
a	Coupang, Inc.		Broadline Retail		19,482		311,712
a	Crowdstrike Holdings, Inc., Class A		Software		4,202		576,767
	Crown Castle, Inc.		Diversified REITs		8,201		1,097,622
	Crown Holdings, Inc.		Containers & Packaging		2,292		189,571
	CSX Corp.		Ground Transportation		40,492		1,212,330
	Cummins, Inc.		Machinery		2,674		638,765
	CVS Health Corp.		Health Care Providers & Services		24,830		1,845,117
	Danaher Corp.		Life Sciences Tools & Services		12,403		3,126,052
	Darden Restaurants, Inc.		Hotels, Restaurants & Leisure		2,292		355,627
a	Datadog, Inc., Class A		Software		4,763		346,080
a	DaVita, Inc.		Health Care Providers & Services		1,146		92,952
	Deere & Co.		Machinery		4,966		2,050,362
	Dell Technologies, Inc., Class C		Technology Hardware, Storage & Peripherals		4,966		199,683
a	Delta Air Lines, Inc.		Airlines		12,224		426,862
	DENTSPLY SIRONA, Inc.		Health Care Equipment & Supplies		3,820		150,050
	Devon Energy Corp.		Oil, Gas & Consumable Fuels		12,606		637,990
a	Dexcom, Inc.		Health Care Equipment & Supplies		7,437		864,031
	Diamondback Energy, Inc.		Oil, Gas & Consumable Fuels		3,438		464,714
	Digital Realty Trust, Inc.		Diversified REITs		5,348		525,762
	Discover Financial Services		Consumer Finance		5,145		508,532
a	DocuSign, Inc.		Software		3,820		222,706
	Dollar General Corp.		Broadline Retail		4,202		884,353
a	Dollar Tree, Inc.		Broadline Retail		3,999		574,056
	Dominion Energy, Inc.		Multi-Utilities		15,662		875,662
	Domino’s Pizza, Inc.		Hotels, Restaurants & Leisure		764		252,021
a	DoorDash, Inc., Class A		Internet & Direct Marketing Retail		4,966		315,639
	Dover Corp.		Machinery		2,674		406,288
	Dow, Inc.		Chemicals		13,549		742,756
	DR Horton, Inc.		Household Durables		6,112		597,081
	DTE Energy Co.		Multi-Utilities		3,617		396,206
	Duke Energy Corp.		Electric Utilities		14,516		1,400,359
	DuPont de Nemours, Inc.		Chemicals		8,786		630,571
a	DXC Technology Co.		IT Services		4,763		121,742
a	Dynatrace, Inc.		Software		4,202		177,745
	East West Bancorp, Inc.		Banks		2,674		148,407
	Eastman Chemical Co.		Chemicals		2,292		193,307
	Eaton Corp. PLC		Electrical Equipment		7,640		1,309,038
	eBay, Inc.		Internet & Direct Marketing Retail		10,314		457,632
	Ecolab, Inc.		Chemicals		4,584		758,790
	Edison International		Electric Utilities		7,258		512,342



franklintempleton.com	Annual Report	13

FRANKLIN TEMPLETON ETF TRUST

SCHEDULE OF INVESTMENTS

Franklin U.S. Equity Index ETF (continued)



		Industry		Shares		Value
	Common Stocks (continued)
	United States (continued)
a	Edwards Lifesciences Corp.		Health Care Equipment & Supplies		11,842	$	979,689
a	Elanco Animal Health, Inc.		Pharmaceuticals		8,786		82,588
	Electronic Arts, Inc.		Entertainment		4,966		598,155
	Elevance Health, Inc.		Health Care Providers & Services		4,584		2,107,769
	Eli Lilly & Co.		Pharmaceuticals		14,898		5,116,271
	Emerson Electric Co.		Electrical Equipment		11,078		965,337
a	Enphase Energy, Inc.		Semiconductors & Semiconductor Equipment		2,674		562,289
	Entegris, Inc.		Semiconductors & Semiconductor Equipment		2,853		233,975
	Entergy Corp.		Electric Utilities		3,820		411,567
	EOG Resources, Inc.		Oil, Gas & Consumable Fuels		11,078		1,269,871
a	EPAM Systems, Inc.		IT Services		1,146		342,654
	EQT Corp.		Oil, Gas & Consumable Fuels		6,876		219,413
	Equifax, Inc.		Professional Services		2,292		464,909
	Equinix, Inc.		Diversified REITs		1,764		1,271,915
	Equitable Holdings, Inc.		Financial Services		6,673		169,427
	Equity LifeStyle Properties, Inc.		Diversified REITs		3,235		217,166
	Equity Residential		Diversified REITs		6,494		389,640
	Essex Property Trust, Inc.		Diversified REITs		1,146		239,674
	Estee Lauder Cos., Inc., Class A		Personal Products		4,381		1,079,741
a	Etsy, Inc.		Internet & Direct Marketing Retail		2,292		255,168
	Everest Re Group Ltd.		Insurance		764		273,527
	Evergy, Inc.		Electric Utilities		4,202		256,826
	Eversource Energy		Electric Utilities		6,876		538,116
a	Exact Sciences Corp.		Biotechnology		3,438		233,131
	Exelon Corp.		Electric Utilities		18,897		791,595
a	Expedia Group, Inc.		Internet & Direct Marketing Retail		2,853		276,827
	Expeditors International of Washington, Inc.		Air Freight & Logistics		3,056		336,527
	Extra Space Storage, Inc.		Diversified REITs		2,674		435,675
	Exxon Mobil Corp.		Oil, Gas & Consumable Fuels		78,310		8,587,475
a	F5, Inc.		Communications Equipment		1,146		166,961
	FactSet Research Systems, Inc.		Capital Markets		764		317,129
	Fastenal Co.		Trading Companies & Distributors		10,875		586,598
	Federal Realty Investment Trust		Diversified REITs		1,325		130,950
	FedEx Corp.		Air Freight & Logistics		4,584		1,047,398
	Fidelity National Financial, Inc.		Insurance		5,145		179,715
	Fidelity National Information Services, Inc.		IT Services		11,078		601,868
	Fifth Third Bancorp		Banks		12,988		346,000
c	First Republic Bank		Banks		3,438		48,098
a	First Solar, Inc.		Semiconductors & Semiconductor Equipment		1,910		415,425
	FirstEnergy Corp.		Electric Utilities		10,314		413,179
a	Fiserv, Inc.		IT Services		12,021		1,358,734
a	FleetCor Technologies, Inc.		IT Services		1,528		322,179
a	Flex Ltd.		Electronic Equipment, Instruments & Components		8,404		193,376
	FMC Corp.		Chemicals		2,292		279,922
	Ford Motor Co.		Automobiles		74,872		943,387
a	Fortinet, Inc.		Software		12,403		824,303
	Fortive Corp.		Machinery		6,673		454,898
	Fortune Brands Innovations, Inc.		Building Products		2,471		145,122
	Fox Corp., Class A		Media		5,730		195,107
	Fox Corp., Class B		Media		2,853		89,327
	Franklin Resources, Inc.		Capital Markets		5,348		144,075
	Freeport-McMoRan, Inc.		Metals & Mining		27,122		1,109,561
	Garmin Ltd.		Household Durables		2,853		287,925
a	Gartner, Inc.		IT Services		1,528		497,777
	Gen Digital, Inc.		Software		10,696		183,543
a	Generac Holdings, Inc.		Electrical Equipment		1,146		123,779
	General Dynamics Corp.		Aerospace & Defense		4,202		958,938



14	Annual Report	franklintempleton.com

FRANKLIN TEMPLETON ETF TRUST

SCHEDULE OF INVESTMENTS

Franklin U.S. Equity Index ETF (continued)



		Industry		Shares		Value
	Common Stocks (continued)
	United States (continued)
	General Electric Co.		Industrial Conglomerates		20,628	$	1,972,037
	General Mills, Inc.		Food Products		11,257		962,023
	General Motors Co.		Automobiles		26,740		980,823
	Genuine Parts Co.		Distributors		2,674		447,387
	Gilead Sciences, Inc.		Biotechnology		23,684		1,965,061
	Global Payments, Inc.		IT Services		4,966		522,622
	Globe Life, Inc.		Insurance		1,707		187,804
a	GoDaddy, Inc., Class A		IT Services		2,650		205,958
	Goldman Sachs Group, Inc.		Capital Markets		6,494		2,124,252
	Halliburton Co.		Energy Equipment & Services		17,190		543,892
	Hartford Financial Services Group, Inc.		Insurance		6,112		425,945
	Hasbro, Inc.		Leisure Products		2,471		132,668
	HCA Healthcare, Inc.		Health Care Providers & Services		3,999		1,054,456
	Healthpeak Properties, Inc.		Diversified REITs		9,932		218,206
	HEICO Corp.		Aerospace & Defense		764		130,675
	HEICO Corp., Class A		Aerospace & Defense		1,325		180,068
a	Henry Schein, Inc.		Health Care Providers & Services		2,471		201,485
	Hershey Co.		Food Products		2,674		680,292
	Hess Corp.		Oil, Gas & Consumable Fuels		5,348		707,754
	Hewlett Packard Enterprise Co.		Technology Hardware, Storage & Peripherals		24,245		386,223
	Hilton Worldwide Holdings, Inc.		Hotels, Restaurants & Leisure		5,145		724,776
a	Hologic, Inc.		Health Care Equipment & Supplies		4,584		369,929
	Home Depot, Inc.		Specialty Retail		19,482		5,749,528
	Honeywell International, Inc.		Industrial Conglomerates		12,606		2,409,259
a	Horizon Therapeutics PLC		Biotechnology		4,202		458,606
	Hormel Foods Corp.		Food Products		5,730		228,512
	Host Hotels & Resorts, Inc.		Diversified REITs		13,370		220,471
	Howmet Aerospace, Inc.		Aerospace & Defense		6,876		291,336
	HP, Inc.		Technology Hardware, Storage & Peripherals		16,426		482,103
	Hubbell, Inc., Class B		Electrical Equipment		1,146		278,833
a	HubSpot, Inc.		Software		943		404,311
	Humana, Inc.		Health Care Providers & Services		2,292		1,112,674
	Huntington Bancshares, Inc.		Banks		27,122		303,766
	Huntington Ingalls Industries, Inc.		Aerospace & Defense		764		158,163
	IDEX Corp.		Machinery		1,528		353,014
a	IDEXX Laboratories, Inc.		Health Care Equipment & Supplies		1,528		764,122
	Illinois Tool Works, Inc.		Machinery		5,348		1,301,971
a	Illumina, Inc.		Life Sciences Tools & Services		3,056		710,673
a	Incyte Corp.		Biotechnology		3,438		248,464
	Ingersoll Rand, Inc.		Machinery		7,640		444,495
a	Insulet Corp.		Health Care Equipment & Supplies		1,325		422,622
	Intel Corp.		Semiconductors & Semiconductor Equipment		78,692		2,570,868
	Intercontinental Exchange, Inc.		Capital Markets		10,696		1,115,486
	International Business Machines Corp.		IT Services		17,190		2,253,437
	International Flavors & Fragrances, Inc.		Chemicals		4,763		438,005
	International Paper Co.		Containers & Packaging		6,876		247,949
	Interpublic Group of Cos., Inc.		Media		7,258		270,288
	Intuit, Inc.		Software		5,348		2,384,299
a	Intuitive Surgical, Inc.		Health Care Equipment & Supplies		6,494		1,659,022
	Invesco Ltd		Capital Markets		8,583		140,761
	Invitation Homes, Inc.		Diversified REITs		11,078		345,966
a	IQVIA Holdings, Inc.		Life Sciences Tools & Services		3,438		683,784
	Iron Mountain, Inc.		Diversified REITs		5,348		282,963
	J M Smucker Co.		Food Products		1,910		300,577
	Jack Henry & Associates, Inc.		IT Services		1,325		199,704
	Jacobs Solutions, Inc.		Professional Services		2,292		269,333
a	Jazz Pharmaceuticals PLC		Pharmaceuticals		1,146		167,694



franklintempleton.com	Annual Report	15

FRANKLIN TEMPLETON ETF TRUST

SCHEDULE OF INVESTMENTS

Franklin U.S. Equity Index ETF (continued)



		Industry		Shares		Value
	Common Stocks (continued)
	United States (continued)
	JB Hunt Transport Services, Inc.		Ground Transportation		1,528	$	268,103
	Jefferies Financial Group, Inc.		Capital Markets		3,438		109,122
	Johnson & Johnson		Pharmaceuticals		49,660		7,697,300
	Johnson Controls International PLC		Building Products		12,988		782,137
	JPMorgan Chase & Co.		Banks		55,772		7,267,649
	Juniper Networks, Inc.		Communications Equipment		6,494		223,523
	Kellogg Co.		Food Products		4,763		318,930
	Keurig Dr Pepper, Inc.		Beverages		16,044		566,032
	KeyCorp		Banks		17,572		220,001
a	Keysight Technologies, Inc.		Electronic Equipment, Instruments & Components		3,438		555,168
	Kimberly-Clark Corp.		Household Products		6,494		871,625
	Kimco Realty Corp.		Diversified REITs		11,639		227,310
	Kinder Morgan, Inc.		Oil, Gas & Consumable Fuels		37,615		658,639
	KKR & Co., Inc.		Capital Markets		11,078		581,817
	KLA Corp.		Semiconductors & Semiconductor Equipment		2,674		1,067,381
	Kraft Heinz Co.		Food Products		15,662		605,650
	Kroger Co.		Consumer Staples Distribution & Retail		12,403		612,336
	L3Harris Technologies, Inc.		Aerospace & Defense		3,617		709,800
	Laboratory Corp. of America Holdings		Health Care Providers & Services		1,707		391,620
	Lam Research Corp.		Semiconductors & Semiconductor Equipment		2,674		1,417,541
	Lamb Weston Holdings, Inc.		Food Products		2,674		279,486
a	Las Vegas Sands Corp.		Hotels, Restaurants & Leisure		6,291		361,418
	Lear Corp.		Automobile Components		1,146		159,856
	Leidos Holdings, Inc.		Professional Services		2,674		246,168
	Lennar Corp., Class A		Household Durables		4,763		500,639
	Lennar Corp., Class B		Household Durables		179		15,987
	Lennox International, Inc.		Building Products		561		140,968
a	Liberty Broadband Corp., Class A		Media		382		31,370
a	Liberty Broadband Corp., Class C		Media		2,292		187,256
a	Liberty Media Corp.-Liberty SiriusXM, Class A		Media		1,325		37,219
a	Liberty Media Corp.-Liberty SiriusXM, Class C		Media		2,853		79,855
	Lincoln National Corp.		Insurance		2,853		64,107
	Linde PLC		Chemicals		9,347		3,322,298
a	Live Nation Entertainment, Inc.		Entertainment		2,674		187,180
	LKQ Corp.		Distributors		4,763		270,348
	Lockheed Martin Corp.		Aerospace & Defense		4,202		1,986,411
	Loews Corp.		Insurance		3,999		232,022
	Lowe’s Cos., Inc.		Specialty Retail		11,460		2,291,656
	LPL Financial Holdings, Inc.		Capital Markets		1,528		309,267
a,c	Lucid Group, Inc.		Automobiles		10,493		84,364
a	Lululemon Athletica, Inc.		Textiles, Apparel & Luxury Goods		2,292		834,723
	Lumen Technologies, Inc.		Diversified Telecommunication Services		17,369		46,028
	LyondellBasell Industries NV, Class A		Chemicals		4,763		447,198
	M&T Bank Corp.		Banks		3,235		386,809
	Marathon Oil Corp.		Oil, Gas & Consumable Fuels		11,842		283,734
	Marathon Petroleum Corp.		Oil, Gas & Consumable Fuels		8,404		1,133,111
a	Markel Corp.		Insurance		243		310,411
	MarketAxess Holdings, Inc.		Capital Markets		764		298,946
	Marriott International, Inc., Class A		Hotels, Restaurants & Leisure		4,966		824,555
	Marsh & McLennan Cos., Inc.		Insurance		9,347		1,556,743
	Martin Marietta Materials, Inc.		Construction Materials		1,146		406,899
	Marvell Technology, Inc.		Semiconductors & Semiconductor Equipment		16,044		694,705
	Masco Corp.		Building Products		4,202		208,923
	Mastercard, Inc., Class A		IT Services		16,044		5,830,550
a	Match Group, Inc.		Interactive Media & Services		5,348		205,310
	McCormick & Co., Inc.		Food Products		4,763		396,329
	McDonald’s Corp.		Hotels, Restaurants & Leisure		13,752		3,845,197



16	Annual Report	franklintempleton.com

FRANKLIN TEMPLETON ETF TRUST

SCHEDULE OF INVESTMENTS

Franklin U.S. Equity Index ETF (continued)



		Industry		Shares		Value
	Common Stocks (continued)
	United States (continued)
	McKesson Corp.		Health Care Providers & Services		2,674	$	952,078
	Medtronic PLC		Health Care Equipment & Supplies		25,212		2,032,591
	Merck & Co., Inc.		Pharmaceuticals		48,132		5,120,764
a	Meta Platforms, Inc., Class A		Interactive Media & Services		42,020		8,905,719
	MetLife, Inc.		Insurance		12,606		730,392
a	Mettler-Toledo International, Inc.		Life Sciences Tools & Services		431		659,521
	MGM Resorts International		Hotels, Restaurants & Leisure		6,112		271,495
	Microchip Technology, Inc.		Semiconductors & Semiconductor Equipment		10,314		864,107
	Micron Technology, Inc.		Semiconductors & Semiconductor Equipment		20,807		1,255,494
	Microsoft Corp.		Software		141,340		40,748,322
	Mid-America Apartment Communities, Inc.		Diversified REITs		2,292		346,184
a	Moderna, Inc.		Biotechnology		6,112		938,681
a	Molina Healthcare, Inc.		Health Care Providers & Services		1,146		306,544
	Molson Coors Beverage Co., Class B		Beverages		3,438		177,676
	Mondelez International, Inc., Class A		Food Products		25,976		1,811,047
a	MongoDB, Inc.		IT Services		1,325		308,884
	Monolithic Power Systems, Inc.		Semiconductors & Semiconductor Equipment		764		382,413
a	Monster Beverage Corp.		Beverages		14,516		784,009
	Moody’s Corp.		Capital Markets		3,056		935,197
	Morgan Stanley		Capital Markets		24,830		2,180,074
	Mosaic Co.		Chemicals		6,673		306,157
	Motorola Solutions, Inc.		Communications Equipment		3,056		874,413
	MSCI, Inc.		Capital Markets		1,528		855,206
	Nasdaq, Inc.		Capital Markets		6,494		355,027
	NetApp, Inc.		Technology Hardware, Storage & Peripherals		3,999		255,336
a	Netflix, Inc.		Entertainment		8,404		2,903,414
a	Neurocrine Biosciences, Inc.		Biotechnology		1,910		193,330
	Newmont Corp.		Metals & Mining		14,898		730,300
	News Corp., Class A		Media		7,258		125,346
	News Corp., Class B		Media		2,089		36,411
	NextEra Energy, Inc.		Electric Utilities		37,818		2,915,011
	NIKE, Inc., Class B		Textiles, Apparel & Luxury Goods		23,684		2,904,606
	NiSource, Inc.		Multi-Utilities		7,640		213,614
	Norfolk Southern Corp.		Ground Transportation		4,381		928,772
	Northern Trust Corp.		Capital Markets		3,820		336,657
	Northrop Grumman Corp.		Aerospace & Defense		2,674		1,234,639
a	Novocure Ltd.		Health Care Equipment & Supplies		1,910		114,867
	NRG Energy, Inc.		Electric Utilities		4,584		157,185
	Nucor Corp.		Metals & Mining		4,584		708,090
	NVIDIA Corp.		Semiconductors & Semiconductor Equipment		46,604		12,945,193
a	NVR, Inc.		Household Durables		55		306,470
	Occidental Petroleum Corp.		Oil, Gas & Consumable Fuels		13,752		858,537
a	Okta, Inc.		IT Services		2,853		246,043
	Old Dominion Freight Line, Inc.		Ground Transportation		1,707		581,814
	Omnicom Group, Inc.		Media		3,820		360,379
a	ON Semiconductor Corp.		Semiconductors & Semiconductor Equipment		8,022		660,371
	ONEOK, Inc.		Oil, Gas & Consumable Fuels		8,404		533,990
	Oracle Corp.		Software		29,032		2,697,653
a	O’Reilly Automotive, Inc.		Specialty Retail		1,181		1,002,645
	Otis Worldwide Corp.		Machinery		7,819		659,924
	Owens Corning		Building Products		1,910		182,978
	PACCAR, Inc.		Machinery		9,730		712,236
	Packaging Corp. of America		Containers & Packaging		1,707		236,983
a	Palantir Technologies, Inc., Class A		Software		33,795		285,568
a	Palo Alto Networks, Inc.		Software		5,730		1,144,510
	Paramount Global, Class B		Media		9,550		213,061
	Parker-Hannifin Corp.		Machinery		2,471		830,528



franklintempleton.com	Annual Report	17

FRANKLIN TEMPLETON ETF TRUST

SCHEDULE OF INVESTMENTS

Franklin U.S. Equity Index ETF (continued)



		Industry		Shares		Value
	Common Stocks (continued)
	United States (continued)
	Paychex, Inc.		IT Services		6,112	$	700,374
a	Paycom Software, Inc.		Software		943		286,681
a	Paylocity Holding Corp.		Software		764		151,868
a	PayPal Holdings, Inc.		IT Services		21,392		1,624,508
	Pentair PLC		Machinery		3,235		178,798
	PepsiCo, Inc.		Beverages		25,976		4,735,425
	PerkinElmer, Inc.		Life Sciences Tools & Services		2,292		305,432
	Pfizer, Inc.		Pharmaceuticals		106,196		4,332,797
a	PG&E Corp.		Electric Utilities		30,357		490,873
	Philip Morris International, Inc.		Tobacco		29,414		2,860,512
	Phillips 66		Oil, Gas & Consumable Fuels		8,786		890,725
	Pinnacle West Capital Corp.		Electric Utilities		2,089		165,532
a	Pinterest, Inc., Class A		Interactive Media & Services		11,078		302,097
	Pioneer Natural Resources Co.		Oil, Gas & Consumable Fuels		4,584		936,236
a	Plug Power, Inc.		Electrical Equipment		9,729		114,024
	PNC Financial Services Group, Inc.		Banks		7,640		971,044
	Pool Corp.		Distributors		764		261,624
	PPG Industries, Inc.		Chemicals		4,584		612,331
	PPL Corp.		Electric Utilities		13,752		382,168
	Principal Financial Group, Inc.		Insurance		4,381		325,596
	Procter & Gamble Co.		Household Products		44,694		6,645,551
	Progressive Corp.		Insurance		11,078		1,584,819
	Prologis, Inc.		Diversified REITs		17,572		2,192,458
	Prudential Financial, Inc.		Insurance		6,876		568,920
a	PTC, Inc.		Software		1,910		244,919
	Public Service Enterprise Group, Inc.		Multi-Utilities		9,550		596,398
	Public Storage		Diversified REITs		3,056		923,340
	PulteGroup, Inc.		Household Durables		4,202		244,893
a	Qorvo, Inc.		Semiconductors & Semiconductor Equipment		1,910		193,999
	QUALCOMM, Inc.		Semiconductors & Semiconductor Equipment		21,392		2,729,191
	Quanta Services, Inc.		Construction & Engineering		2,674		445,595
	Quest Diagnostics, Inc.		Health Care Providers & Services		1,910		270,227
	Raymond James Financial, Inc.		Capital Markets		3,617		337,358
	Raytheon Technologies Corp.		Aerospace & Defense		27,886		2,730,876
	Realty Income Corp.		Diversified REITs		11,842		749,835
	Regency Centers Corp.		Diversified REITs		2,853		174,547
a	Regeneron Pharmaceuticals, Inc.		Biotechnology		2,028		1,666,347
	Regions Financial Corp.		Banks		17,572		326,136
	Reinsurance Group of America, Inc.		Insurance		1,146		152,143
	Republic Services, Inc.		Commercial Services & Supplies		3,820		516,540
	ResMed, Inc.		Health Care Equipment & Supplies		2,674		585,579
a	Rivian Automotive, Inc., Class A		Automobiles		10,314		159,661
a	ROBLOX Corp., Class A		Entertainment		6,876		309,282
	Rockwell Automation, Inc.		Electrical Equipment		2,292		672,587
a	Roku, Inc.		Entertainment		2,292		150,859
	Rollins, Inc.		Commercial Services & Supplies		4,202		157,701
	Roper Technologies, Inc.		Industrial Conglomerates		1,910		841,718
	Ross Stores, Inc.		Specialty Retail		6,494		689,208
a	Royal Caribbean Cruises Ltd.		Hotels, Restaurants & Leisure		3,999		261,135
	Royalty Pharma PLC, Class A		Pharmaceuticals		7,258		261,506
	S&P Global, Inc.		Capital Markets		6,112		2,107,234
a	Salesforce, Inc.		Software		19,100		3,815,798
	SBA Communications Corp.		Diversified REITs		2,089		545,375
	Schlumberger NV		Energy Equipment & Services		27,122		1,331,690
a	Seagen, Inc.		Biotechnology		2,674		541,405
	Sealed Air Corp.		Containers & Packaging		2,853		130,981
	SEI Investments Co.		Capital Markets		1,910		109,921



18	Annual Report	franklintempleton.com

FRANKLIN TEMPLETON ETF TRUST

SCHEDULE OF INVESTMENTS

Franklin U.S. Equity Index ETF (continued)



		Industry			Shares		Value
	Common Stocks (continued)
	United States (continued)
	Sempra Energy		Multi-Utilities			5,909	$	893,204
	Sensata Technologies Holding PLC		Electrical Equipment			3,056		152,861
a	ServiceNow, Inc.		Software			3,820		1,775,230
	Sherwin-Williams Co.		Chemicals			4,584		1,030,346
	Simon Property Group, Inc.		Real Estate Investment Trusts (REITs	)		6,112		684,361
c	Sirius XM Holdings, Inc.		Media			14,898		59,145
	Skyworks Solutions, Inc.		Semiconductors & Semiconductor Equipment			3,056		360,547
a	Snap, Inc., Class A		Interactive Media & Services			19,100		214,111
	Snap-on, Inc.		Machinery			943		232,817
a	Snowflake, Inc., Class A		IT Services			5,348		825,143
a	SolarEdge Technologies, Inc.		Semiconductors & Semiconductor Equipment			1,146		348,327
	Southern Co.		Electric Utilities			20,628		1,435,296
	Southern Copper Corp.		Metals & Mining			1,528		116,510
	Southwest Airlines Co.		Airlines			11,078		360,478
a	Splunk, Inc.		Software			2,674		256,383
	SS&C Technologies Holdings, Inc.		IT Services			3,999		225,824
	Stanley Black & Decker, Inc.		Machinery			2,853		229,895
	Starbucks Corp.		Hotels, Restaurants & Leisure			21,774		2,267,327
	State Street Corp.		Capital Markets			6,494		491,531
	Steel Dynamics, Inc.		Metals & Mining			3,056		345,511
	STERIS PLC		Health Care Equipment & Supplies			1,910		365,345
	Stryker Corp.		Health Care Equipment & Supplies			6,494		1,853,842
	Sun Communities, Inc.		Diversified REITs			2,292		322,897
	Synchrony Financial		Consumer Finance			8,404		244,388
a	Synopsys, Inc.		Software			2,853		1,101,971
	Sysco Corp.		Consumer Staples Distribution & Retail			9,550		737,547
	T Rowe Price Group, Inc.		Capital Markets			4,202		474,406
a	Take-Two Interactive Software, Inc.		Entertainment			3,056		364,581
	Tapestry, Inc.		Textiles, Apparel & Luxury Goods			4,202		181,148
	Targa Resources Corp.		Oil, Gas & Consumable Fuels			4,202		306,536
	Target Corp.		Broadline Retail			8,786		1,455,225
a	Teledyne Technologies, Inc.		Electronic Equipment, Instruments & Components			943		421,860
	Teleflex, Inc.		Health Care Equipment & Supplies			943		238,871
	Teradyne, Inc.		Semiconductors & Semiconductor Equipment			2,650		284,902
a	Tesla, Inc.		Automobiles			51,188		10,619,463
	Texas Instruments, Inc.		Semiconductors & Semiconductor Equipment			17,190		3,197,512
	Texas Pacific Land Corp.		Oil, Gas & Consumable Fuels			109		185,411
	Textron, Inc.		Aerospace & Defense			3,999		282,449
	Thermo Fisher Scientific, Inc.		Life Sciences Tools & Services			7,429		4,281,853
	TJX Cos., Inc.		Specialty Retail			21,953		1,720,237
a	T-Mobile U.S., Inc.		Wireless Telecommunication Services			11,078		1,604,538
	Tractor Supply Co.		Specialty Retail			2,089		490,999
a	Trade Desk, Inc., Class A		Software			8,404		511,888
	Trane Technologies PLC		Building Products			4,381		806,016
	TransDigm Group, Inc.		Aerospace & Defense			967		712,727
	TransUnion		Professional Services			3,617		224,760
	Travelers Cos., Inc.		Insurance			4,202		720,265
a	Trimble, Inc.		Electronic Equipment, Instruments & Components			4,584		240,293
	Truist Financial Corp.		Banks			25,212		859,729
a	Twilio, Inc., Class A		IT Services			3,438		229,074
a	Tyler Technologies, Inc.		Software			764		270,945
	Tyson Foods, Inc., Class A		Food Products			5,348		317,243
	U.S. Bancorp		Banks			26,358		950,206
a	Uber Technologies, Inc.		Ground Transportation			37,818		1,198,831
	UDR, Inc.		Diversified REITs			5,730		235,274
	UGI Corp.		Gas Utilities			3,820		132,783
a	Ulta Beauty, Inc.		Specialty Retail			943		514,567



franklintempleton.com	Annual Report	19

FRANKLIN TEMPLETON ETF TRUST

SCHEDULE OF INVESTMENTS

Franklin U.S. Equity Index ETF (continued)



		Industry		Shares		Value
	Common Stocks (continued)
	United States (continued)
	Union Pacific Corp.		Ground Transportation		11,460	$	2,306,440
a	United Airlines Holdings, Inc.		Airlines		6,112		270,456
	United Parcel Service, Inc., Class B		Air Freight & Logistics		13,752		2,667,750
a	United Rentals, Inc.		Trading Companies & Distributors		1,325		524,382
	UnitedHealth Group, Inc.		Health Care Providers & Services		17,572		8,304,352
a	Unity Software, Inc.		Software		4,584		148,705
	Universal Health Services, Inc., Class B		Health Care Providers & Services		1,146		145,657
	Vail Resorts, Inc.		Hotels, Restaurants & Leisure		764		178,532
	Valero Energy Corp.		Oil, Gas & Consumable Fuels		7,258		1,013,217
a	Veeva Systems, Inc., Class A		Health Care Technology		2,674		491,454
	Ventas, Inc.		Diversified REITs		7,640		331,194
a	VeriSign, Inc.		IT Services		1,707		360,740
	Verisk Analytics, Inc.		Professional Services		3,056		586,324
	Verizon Communications, Inc.		Diversified Telecommunication Services		80,220		3,119,756
a	Vertex Pharmaceuticals, Inc.		Biotechnology		4,966		1,564,638
	VF Corp.		Textiles, Apparel & Luxury Goods		5,909		135,375
	Viatris, Inc.		Pharmaceuticals		22,920		220,490
	VICI Properties, Inc.		Diversified REITs		19,100		623,042
	Visa, Inc., Class A		IT Services		30,942		6,976,183
	Vistra Corp.		Independent Power Producers & Energy Traders		7,258		174,192
a	VMware, Inc., Class A		Software		3,820		476,927
	Voya Financial, Inc.		Financial Services		1,910		136,489
	Vulcan Materials Co.		Construction Materials		2,471		423,925
	W R Berkley Corp.		Insurance		3,820		237,833
	Walgreens Boots Alliance, Inc.		Consumer Staples Distribution & Retail		13,752		475,544
	Walmart, Inc.		Consumer Staples Distribution & Retail		26,740		3,942,813
a	Walt Disney Co.		Media		34,762		3,480,719
	Waste Management, Inc.		Commercial Services & Supplies		7,055		1,151,164
a	Waters Corp.		Life Sciences Tools & Services		1,146		354,836
	Watsco, Inc.		Trading Companies & Distributors		561		178,488
	WEC Energy Group, Inc.		Multi-Utilities		6,112		579,356
	Wells Fargo & Co.		Banks		72,198		2,698,761
	Welltower, Inc.		Diversified REITs		9,168		657,254
	West Pharmaceutical Services, Inc.		Life Sciences Tools & Services		1,528		529,406
a	Western Digital Corp.		Technology Hardware, Storage & Peripherals		6,112		230,239
	Westinghouse Air Brake Technologies Corp.		Machinery		3,438		347,444
	Westlake Corp.		Chemicals		561		65,065
	Westrock Co.		Containers & Packaging		4,584		139,674
	Weyerhaeuser Co.		Diversified REITs		13,752		414,348
	Whirlpool Corp.		Household Durables		1,146		151,295
	Williams Cos., Inc.		Oil, Gas & Consumable Fuels		22,920		684,391
	Willis Towers Watson PLC		Insurance		2,089		485,442
a	Workday, Inc., Class A		Software		3,820		788,983
	WP Carey, Inc.		Diversified REITs		3,999		309,723
	WW Grainger, Inc.		Trading Companies & Distributors		764		526,251
a	Wynn Resorts Ltd.		Hotels, Restaurants & Leisure		1,910		213,748
	Xcel Energy, Inc.		Electric Utilities		10,314		695,576
	Xylem, Inc.		Machinery		3,438		359,959
	Yum! Brands, Inc.		Hotels, Restaurants & Leisure		5,348		706,364
a	Zebra Technologies Corp., Class A		Electronic Equipment, Instruments & Components		943		299,874
a	Zillow Group, Inc., Class A		Real Estate Management & Development		1,325		57,903
a	Zillow Group, Inc., Class C		Real Estate Management & Development		3,056		135,900
	Zimmer Biomet Holdings, Inc.		Health Care Equipment & Supplies		3,999		516,671
	Zions Bancorp NA		Banks		2,853		85,390
	Zoetis, Inc.		Pharmaceuticals		8,786		1,462,342
a	Zoom Video Communications, Inc., Class A		Software		4,202		310,276
a	ZoomInfo Technologies, Inc., Class A		Interactive Media & Services		5,145		127,133



20	Annual Report	franklintempleton.com

FRANKLIN TEMPLETON ETF TRUST

SCHEDULE OF INVESTMENTS

Franklin U.S. Equity Index ETF (continued)

Industry

Shares

Value

Common Stocks (continued)

United States (continued)

Zscaler, Inc.

Software

1,528

178,516

676,873,231

Preferred Stock 0.0%^†

Russia 0.0%^†

Surgutneftegas PJSC, pfd

Oil, Gas & Consumable Fuels

10,688

—

Total Preferred Stocks
(Cost $6,128)

—

Total Investments before Short-Term
Investments (Cost $658,925,146)

679,982,967

Short-Term Investments 0.1%

Investments from Cash Collateral
Received for Loaned Securities 0.1%

United States 0.1%

d,e

Institutional Fiduciary Trust Portfolio, 4.47%

Money Market Funds

266,830

Total Short-Term Investments
(Cost $266,830)

266,830

Total Investments
(Cost $659,191,976) 99.8%

680,249,797

Other Assets, less Liabilities 0.2%

1,662,887

Net Assets 100.0%

681,912,684

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

^aNon-income producing.

^bFair valued using significant unobservable inputs. Note 8 regarding fair value measurements.

^cA portion or all of the security is on loan at March 31, 2023 Note 1(c).

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

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

At March 31, 2023, the Fund had the following futures contracts outstanding. See Note 1(c).

Futures Contracts

Description

Type

Number of
Contracts

Notional
Amount*

Expiration
Date

Value/Unrealized

Appreciation

(Depreciation)

Index Contracts

S&P 500 E-Mini

Long

1,655,100

6/16/23

82,436

*As of year end.

See Note 7 regarding other derivative information.

See Abbreviations on page 32.



franklintempleton.com	The accompanying notes are an integral part of these financial statements. \| Annual Report	21

FRANKLIN TEMPLETON ETF TRUST

FINANCIAL STATEMENTS

Statement of Assets and Liabilities

March 31, 2023

Franklin U.S. Equity Index ETF


Assets:
Investments in securities:
Cost – Unaffiliated issuers	$	658,925,146
Cost – Non-controlled affiliates (Note 3c)		266,830
Value – Unaffiliated issuers⁺	$	679,982,967
Value – Non-controlled affiliates (Note 3c)		266,830
Cash		1,715,605
Foreign currency, at value (cost $767)		769
Receivables:
Dividends		477,514
Investment securities sold		28,200,735
Variation margin on futures contracts		23,142
Deposits with brokers for:
Futures contracts		89,600

Total assets		710,757,162

Liabilities:
Payables:
Capital shares redeemed		28,561,720
Management fees		15,928
Payable upon return of securities loaned		266,830

Total liabilities		28,844,478

Net assets, at value	$	681,912,684

Net assets consist of:
Paid-in capital	$	661,550,760
Total distributable earnings (loss)		20,361,924

Net assets, at value	$	681,912,684

Shares outstanding		19,100,000

Net asset value per share	$	35.70

⁺Includes securities loaned		259,144



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

FRANKLIN TEMPLETON ETF TRUST

FINANCIAL STATEMENTS

Statement of Operations

for the year ended March 31, 2023

Franklin U.S. Equity Index ETF


Investment income:
Dividends: (net of foreign taxes)^a
Unaffiliated issuers	$	6,219,628
Interest:
Unaffiliated issuers		5,590
Interest from securities loaned (Note 1d):
Unaffiliated issuers (net of fees and rebates)		5,129
Non-Controlled affiliates (Note 3c)		4,455

Total investment income		6,234,802

Expenses:
Management fees (Note 3a)		121,940
Other		55

Total expenses		121,995
Expenses waived/paid by affiliates (Note 3c)		(444	)

Net expenses		121,551

Net investment income		6,113,251

Realized and unrealized gains (losses):
Net realized gain (loss) from:
Investments:
Unaffiliated issuers		(1,397,343	)
In-kind redemptions		7,791,109
Foreign currency transactions		(5,295	)
Futures contracts		(218,545	)

Net realized gain (loss)		6,169,926

Net change in unrealized appreciation (depreciation) on:
Investments:
Unaffiliated issuers		18,068,675
Translation of other assets and liabilities denominated in foreign currencies		(277	)
Futures contracts		82,022
Change in deferred taxes on unrealized appreciation		3,475

Net change in unrealized appreciation (depreciation)		18,153,895

Net realized and unrealized gain (loss)		24,323,821

Net increase (decrease) in net assets resulting from operations	$	30,437,072


^aForeign taxes withheld on dividends	$	14,577



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

FRANKLIN TEMPLETON ETF TRUST

FINANCIAL STATEMENTS

Statements of Changes in Net Assets

Franklin U.S. Equity Index ETF



	Year Ended March 31, 2023			Year Ended March 31, 2022
Increase (decrease) in net assets:
Operations:
Net investment income	$	6,113,251		$	421,555
Net realized gain		6,169,926			732,588
Net change in unrealized appreciation (depreciation)		18,153,895			201,548

Net increase (decrease) in net assets resulting from operations		30,437,072			1,355,691

Distributions to shareholders (Note 1f)		(5,371,807	)		(401,042	)

Capital share transactions: (Note 2)		640,833,384			—

Net increase (decrease) in net assets		665,898,649			954,649
Net assets:
Beginning of year		16,014,035			15,059,386

End of year	$	681,912,684		$	16,014,035



24	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-eight separate funds, one of which is included in this report (Fund). The Fund follows the accounting and reporting guidance in Financial Accounting Standards Board (“FASB”) Accounting Standard Codification Topic 946, Financial Services - Investment Companies (“ASC 946”), and applies the specialized accounting and reporting guidance in U.S. Generally Accepted Accounting Principles (U.S. GAAP), including, but not limited to, ASC 946. The Fund is an exchange traded fund (ETF) and seek to provide the investment results that closely correspond, before fees and expenses, to the performance of Fund corresponding underlying index.

Effective August 1, 2022 the Franklin LibertyQ Global Equity ETF changed its name to Franklin U.S. Equity Index ETF.

The following summarizes the Fund’s significant accounting policies.

a. Financial Instrument Valuation

The Fund’s investments in financial instruments are carried at fair value daily. Fair value is the price that would be received to sell an asset or paid to transfer a liability in an orderly transaction between market participants on the measurement date. The Fund calculates the net asset value (NAV) per share each business day as of 4 p.m. Eastern time or the regularly scheduled close of the New York Stock Exchange (NYSE), whichever is earlier. Under compliance policies and procedures approved by the Fund’s Board of Trustees (the Board), the Board has designated the Fund’s investment manager as the valuation designee and has responsibility for oversight of valuation. The investment manager is assisted by the Fund’s administrator in performing this responsibility, including leading the cross-functional Valuation Committee (VC).

The Fund may utilize independent pricing services, quotations from securities and financial instrument dealers, and other market sources to determine fair value.

value is then converted into its U.S. dollar equivalent at the foreign exchange rate in effect at 4 p.m. London time on the day that the value of the security is determined. Over-the-counter (OTC) securities are valued within the range of the most recent quoted bid and ask prices. Securities that trade in multiple markets or on multiple exchanges are valued according to the broadest and most representative market. Certain equity securities are valued based upon fundamental characteristics or relationships to similar securities.

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

Certain derivative financial instruments are centrally cleared or trade in the OTC market. The Fund’s 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 Fund’s net benefit or obligation under the derivative contract, as measured by the fair value of the contract, is included in net assets.

The Fund has procedures to determine the fair value of financial instruments for which market prices are not reliable or readily available. Under these procedures, the Fund primarily 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.



franklintempleton.com	Annual Report	25

FRANKLIN TEMPLETON ETF TRUST

NOTES TO FINANCIAL STATEMENTS

1. Organization and Significant Accounting Policies (continued)

a. Financial Instrument Valuation (continued)

used to adjust the Fund’s portfolio securities to the latest indications of fair value at 4 p.m. Eastern time on March 31, 2023. At March 31, 2023, certain securities may have been fair valued using these procedures, in which case the securities were categorized as Level 2 inputs within the fair value hierarchy (referred to as “market level fair value”).

b. Foreign Currency Translation

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

received or paid. Net unrealized foreign exchange gains and losses arise from changes in foreign exchange rates on foreign denominated assets and liabilities other than investments in securities held at the end of the reporting period.

c. Derivative Financial Instruments

The Fund invested in derivative financial instruments in order to manage risk or gain exposure to various other investments or markets. Derivatives are financial contracts based on an underlying or notional amount, require no initial investment or an initial net investment that is smaller than would normally be required to have a similar response to changes in market factors, and require or permit net settlement. Derivatives contain various risks including the potential inability of the counterparty to fulfill their obligations under the terms of the contract, the potential for an illiquid secondary market, and/or the potential for market movements which expose the Fund to gains or losses in excess of the amounts shown in the Statement of Assets and Liabilities. Realized gain and loss and unrealized appreciation and depreciation on these contracts for the period are included in the Statement of Operations.

Derivative counterparty credit risk is managed through a formal evaluation of the creditworthiness of all potential counterparties. Fund attempt to reduce their exposure to counterparty credit risk on OTC derivatives, whenever possible, by entering into International Swaps and Derivatives Association (ISDA) master agreements with certain counterparties. These agreements contain various provisions, including but not limited to collateral requirements, events of default, or early termination. Termination events applicable to the counterparty include certain deteriorations in the credit quality of the counterparty.

Termination events applicable to the Fund include failure of the Fund to maintain certain net asset levels and/or limit the decline in net assets over various periods of time. In the event of default or early termination, the ISDA master agreement gives the non-defaulting party the right to net and close-out all transactions traded, whether or not arising under the ISDA agreement, to one net amount payable by one counterparty to the other. However, absent an event of default or early termination, OTC derivative assets and liabilities are presented gross and not offset in the Statement of Assets and Liabilities. Early termination by the counterparty may result in an immediate payment by the Fund of any net liability owed to that counterparty under the ISDA agreement.



26	Annual Report	franklintempleton.com

FRANKLIN TEMPLETON ETF TRUST

NOTES TO FINANCIAL STATEMENTS

1. Organization and Significant Accounting Policies (continued)

c. Derivative Financial Instruments (continued)

Collateral requirements differ by type of derivative. Collateral terms are contract specific for OTC derivatives. For OTC derivatives traded under an ISDA master agreement, posting of collateral is required by either the Fund or the applicable counterparty if the total net exposure of all OTC derivatives with the applicable counterparty exceeds the minimum transfer amount, which typically ranges from $100,000 to $250,000, and can vary depending on the counterparty and the type of agreement. Generally, collateral is determined at the close of Fund business each day and any additional collateral required due to changes in derivative values may be delivered by the Fund or the counterparty the next business day, or within a few business days. Collateral pledged and/or received by the Fund, if any, is held in segregated accounts with the Fund’s custodian/counterparty broker and can be in the form of cash and/or securities. Unrestricted cash may be invested according to the Fund’s investment objectives. To the extent that the amounts due to the Fund from its counterparties are not subject to collateralization or are not fully collateralized, the Fund bears the risk of loss from counterparty non-performance.

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

The Fund entered into OTC forward exchange contracts primarily to manage and/or gain exposure to certain foreign currencies. A forward exchange contract is an agreement between the Fund and a counterparty to buy or sell a foreign currency at a specific exchange rate on a future date.

See Note 7 regarding other derivative information.

d. Securities Lending

The Fund 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 fund and is used to invest in a money market fund managed by Franklin Advisers, Inc., an affiliate of the Fund. These securities received as collateral are held in segregated accounts with the Fund’s custodian. The Fund cannot repledge or resell these securities received as collateral. As such, the non-cash collateral is excluded from the Statement of Assets and Liabilities. The Fund may receive income from the investment of cash collateral, in addition to lending fees and rebates paid by the borrower. Income from securities loaned, net of fees paid to the securities lending agent and/or third-party vendor, is reported separately in the Statement of Operations. The Fund bears the market risk with respect to the collateral investment, securities loaned, and the risk that the agent may default on its obligations to the Fund. If the borrower defaults on its obligation to return the securities loaned, the Fund has the right to repurchase the securities in the open market using the collateral received. The securities lending agent has agreed to indemnify the Fund in the event of default by a third party borrower.

e. Income and Deferred Taxes

The Fund may recognize an income tax liability related to its uncertain tax positions under U.S. GAAP when the uncertain tax position has a less than 50% probability that it will be sustained upon examination by the tax authorities based on its technical merits. As of March 31, 2023, 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



franklintempleton.com	Annual Report	27

FRANKLIN TEMPLETON ETF TRUST

NOTES TO FINANCIAL STATEMENTS

1. Organization and Significant Accounting Policies (continued)

e. Income and Deferred Taxes (continued)

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 Fund. Distributions to shareholders are recorded on the ex-dividend date. Distributable earnings are determined according to income tax regulations (tax basis) and may differ from earnings recorded in accordance with U.S. GAAP. These differences may be permanent or temporary. Permanent differences are reclassified among capital accounts to reflect their tax character. These reclassifications have no impact on net assets or the results of operations. Temporary differences are not reclassified, as they may reverse in subsequent periods.

g. Accounting Estimates

h. Guarantees and Indemnifications

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

2. Shares of Beneficial Interest



28	Annual Report	franklintempleton.com

FRANKLIN TEMPLETON ETF TRUST

NOTES TO FINANCIAL STATEMENTS

2. Shares of Beneficial Interest (continued)

At March 31, 2023, there were an unlimited number of shares authorized (without par value). Transactions in the Fund’s shares were as follows:



	Year Ended March 31, 2023						Year Ended March 31, 2022

	Shares			Amount			Shares		Amount
Shares sold		20,200,000		$	693,370,004			—	$	—
Shares redeemed		(1,500,000	)		(52,536,620	)		—		—

Net increase (decrease)		18,700,000		$	640,833,384			—	$	—

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 Distributors, LLC (Distributors)		Principal underwriter

a. Management fees

For the period April 1, 2022 through July 31, 2022 the annualized fee rate was 0.35% and for the period August 1, 2022 through March 31, 2023 the annualized fee rate was 0.03%.

b. Administrative Fees

c. Investments in Affiliated Management Investment Companies

The Fund 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 do not invest for purposes of exercising a controlling influence over the management or policies. Management fees paid by the Fund are waived on assets invested in the affiliated management investment companies, as noted in the Statement of Operations, in an amount not to exceed the management and administrative fees paid directly or indirectly by each affiliate. During the year ended March 31, 2023, 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
Non-Controlled Affiliates																Income from Securities loaned

Institutional Fiduciary Trust Money Market Portfolio 4.47%	$	—	$	989,096	$	(722,266	)	$	—	$	—	$	266,830		266,830	$	4,455



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FRANKLIN TEMPLETON ETF TRUST

NOTES TO FINANCIAL STATEMENTS

4. Income Taxes

For tax purposes, capital losses may be carried over to offset future capital gains, if any. At March 31, 2023, the capital loss carryforwards were as follows:



	Year Ended March 31, 2023
Capital loss carryforwards not subject to expiration:
Long term	$	74,246
Short term		1,439,455

Total capital loss carryforwards	$	1,513,701

The tax character of distributions paid during the period ended March 31, 2023 and 2022, were as follows:



	2023		2022
Distributions paid from Ordinary income	$	5,371,807	$	401,042

At March 31, 2023, the cost of investments and net unrealized appreciation (depreciation) for income tax purposes were as follows:



	Year Ended March 31, 2023
Cost of investments	$	659,238,083

Unrealized appreciation	$	49,113,164
Unrealized depreciation		(28,101,450	)

Net unrealized appreciation (depreciation)	$	21,011,714

Distributable earnings – undistributed ordinary income	$	863,796

Differences between income and/or capital gains as determined on a book basis and a tax basis are primarily due to differing treatments of financial futures transactions and gains/losses realized on in-kind shareholder redemptions 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, 2023, $29,593,430 and $23,552,316, respectively.

In-kind transactions associated with creation and redemptions for the year ended March 31, 2023, $685,655,944 and $51,987,593, respectively.

At March 31, 2023, in connection with securities lending transactions, Fund loaned investments and received cash collateral for Equity Investments are $266,830.

6. Concentration of Risk



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NOTES TO FINANCIAL STATEMENTS

6. Concentration of Risk (continued)

Russia’s military invasion of Ukraine in February 2022, the resulting responses by the United States and other countries, and the potential for wider conflict could increase volatility and uncertainty in the financial markets and adversely affect regional and global economies. The United States and other countries have imposed broad-ranging economic sanctions on Russia and certain Russian individuals, banking entities and corporations as a response to its invasion of Ukraine. The United States and other countries have also imposed economic sanctions on Belarus and may impose sanctions on other countries that support Russia’s military invasion. These sanctions, as well as any other economic consequences related to the invasion, such as additional sanctions, boycotts or changes in consumer or purchaser preferences or cyberattacks on governments, companies or individuals, may further decrease the value and liquidity of certain Russian securities and securities of issuers in other countries that are subject to economic sanctions related to the invasion. To the extent that the Fund has exposure to Russian investments or investments in countries affected by the invasion, the Fund’s ability to price, buy, sell, receive or deliver such investments was impaired. The Fund could determine at any time that certain of the most affected securities have little or no value. In addition, any exposure that the Fund may have to counterparties in Russia or in countries affected by the invasion could negatively impact the Fund’s portfolio. The extent and duration of Russia’s military actions and the repercussions of such actions (including any retaliatory actions or countermeasures that may be taken by those subject to sanctions) are impossible to predict, but could result in significant market disruptions, including in the oil and natural gas markets, and may negatively affect global supply chains, inflation and global growth. These and any related events could significantly impact the Fund’s performance and the value of an investment in the Fund, even beyond any direct exposure the Fund may have to Russian issuers or issuers in other countries affected by the invasion.

7. Other Derivative Information

At March 31, 2023, the Fund’s investments in derivative contracts are reflected in the Statement of Assets and Liabilities as follows:

Asset Derivatives

Liability Derivatives

Statement of Assets and

Liabilities Location

Fair Value

Statement of Assets and

Liabilities Location

Fair Value

Equity contracts

Variation margin on futures contracts

82,436

Variation margin on futures contracts

—

For the year ended March 31, 2023, the effect of derivative contracts in the Fund’s Statement of Operations was as follows:

Derivative Contracts

Not Accounted for as

Hedging Instruments

Statement of

Operations Locations

Net Realized

Gain (Loss)

for the Period

Statement of

Operations Locations

Net Change in

Unrealized

Appreciation

(Depreciation)

for the Period

Net realized gain (loss) from:

Net change in unrealized appreciation (depreciation) on:

Equity contracts

Futures contracts

(218,545

)

Futures contracts

82,022

For the period ended March 31, 2023, the average month end notional amount of futures contracts was $711,790.

See Note 1(c) regarding derivative financial instruments.

8. Fair Value Measurements

•

Level 1 – quoted prices in active markets for identical financial instruments



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NOTES TO FINANCIAL STATEMENTS

8. Fair Value Measurements (continued)

•

Level 2 – other significant observable inputs (including quoted prices for similar financial instruments, interest rates, prepayment speed, credit risk, etc.)

•

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

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

A summary of inputs used as of March 31, 2023, in valuing the Fund’s assets and liabilities carried at fair value, is as follows:



	Level 1		Level 2		Level 3			Total

Franklin U.S. Equity Index ETF

Assets:
Investments in Securities:^a
Equity Investments^b	$	679,982,769	$	—	$	198	^c	$	679,982,967
Short-Term Investments		266,830		—		—			266,830
Total Investments in Securities	$	680,249,599	$	—	$	198		$	680,249,797
Other Financial Instruments:
Futures Contracts	$	82,436	$	—	$	—		$	82,436

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

^bIncludes common and preferred stocks.

^cIncludes securities determined to have no value at March 31, 2023.

9. New Accounting Pronouncements

10. Subsequent Events

The Fund has evaluated subsequent events through the issuance of these Financial Statements and determined that no events have occurred that require disclosure.

Abbreviations


GDR		Global Depositary Receipt
REIT		Real Estate Investment Trust
SBA		Small Business Administration



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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 U.S. Equity Index ETF

Opinion on the Financial Statements

We have audited the accompanying statements of assets and liabilities, including the schedule of investments, of Franklin U.S. Equity Index ETF (one of the funds constituting Franklin Templeton ETF Trust, hereafter collectively referred to as the “Fund” ) as of March 31, 2023, the related statements of operations for the year ended March 31, 2023, the statements of changes in net assets for each of the two years in the period ended March 31, 2023, including the related notes, and the financial highlights for each of the five years in the period ended March 31, 2023 (collectively referred to as the “financial statements”). In our opinion, the financial statements present fairly, in all material respects, the financial position of the Fund as of March 31, 2023, the results of its operations for the year then ended, the changes in its net assets for each of the two years in the period ended March 31, 2023 and the financial highlights for each of the five years in the period ended March 31, 2023, in conformity with accounting principles generally accepted in the United States of America.

Basis for Opinion

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, 2023 by correspondence with the custodian, and transfer agent. We believe that our audits provide a reasonable basis for our opinion.

PricewaterhouseCoopers LLP

San Francisco, California

May 23, 2023

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)

The following tax information for the Fund is required to be furnished to shareholders with respect to the income earned and distributions paid during their fiscal year.

The Fund below hereby report the following amounts, or if subsequently determined to be different, the maximum allowable amounts, for the period ended March 31, 2023:



	Pursuant to:		Franklin U.S. Equity Index ETF
Dividends Received Deduction (DRD)		§854(b)(1)(A)	$	5,371,807
Qualified Dividend Income (QDI)		§854(b)(1)(B)	$	5,371,807



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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	59	AssetMark Financial Holdings, Inc. (investment solutions) (2018-present) and PhonePe (2020-present) (payment and financial services); formerly, Axis Bank (financial) (2013- 2021), FlipKart Limited (2019-2020) (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	59	S&P Global, Inc. (financial information services) (February 2022), Borg Warner (automotive) (2018-present), LegalShield (consumer services) (2020-present); and formerly, IHS Markit (information services) (2015-2022), 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	59	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	70	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, of some of the other subsidiaries of Franklin Resources, Inc. and of certain funds in the Franklin Templeton/Legg Mason fund complex; 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 certain funds in the Franklin Templeton/Legg Mason fund complex.

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; Assistant Secretary, Franklin Distributors, LLC; and officer of certain funds in the Franklin Templeton/Legg Mason fund complex.

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 certain funds in the Franklin Templeton/Legg Mason fund complex; and formerly, Vice President, Global Tax (2012-April 2017) and Treasurer/Assistant Treasurer, Franklin Templeton (2009-2017).

Fred Jensen (1963) 620 Eighth Avenue, 47th Floor New York, NY 10018	Chief Compliance Officer	Since 2021	Not Applicable	Not Applicable

Principal Occupation During at Least the Past 5 Years:
Director - Global Compliance of Franklin Templeton; Managing Director of Legg Mason & Co.; Director of Compliance, Legg Mason Office of the Chief Compliance Officer; Chief Compliance Officer, Franklin Advisory Services, LLC; Compliance Officer, Franklin Advisers, Inc.; officer of certain funds in the Franklin Templeton/Legg Mason fund complex; formerly, Chief Compliance Officer of Legg Mason Global Asset Allocation; Chief Compliance Officer, Legg Mason Private Portfolio; Chief Compliance Officer to The Reserves Funds (investment adviser, funds and broker-dealer) and Ambac Financial Group (investment adviser, funds and broker-dealer).

Susan Kerr (1949) 620 Eighth Avenue New York, NY 10018	Vice President – AML Compliance	Since 2021	Not Applicable	Not Applicable

Principal Occupation During at Least the Past 5 Years:
Senior Compliance Analyst, Franklin Templeton; Chief Anti-Money Laundering Compliance Officer, Legg Mason & Co., or its affiliates; Anti Money Laundering Compliance Officer; Senior Compliance Officer, LMIS; and officer of certain funds in the Franklin Templeton/Legg Mason fund complex.

Todd Mathias (1983) One Franklin Parkway, San Mateo, Ca 94403-1906	Vice President	Since March 2022	Not Applicable	Not Applicable

Principal Occupation During at Least the Past 5 Years:
Head of US ETF Product Strategy, Franklin Templeton; and officer of certain funds in the Franklin Templeton/Legg Mason fund complex.



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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.; and officer of certain funds in the Franklin Templeton/Legg Mason fund complex.

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 certain funds in the Franklin Templeton/Legg Mason fund complex.

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:
Senior Associate General Counsel, Franklin Templeton; and officer of certain funds in the Franklin Templeton/Legg Mason fund complex.

Lori A. Weber (1964) 300 S.E. 2nd Street Fort Lauderdale, FL 33301-1923	Vice President and Secretary	Vice President since 2011 and Secretary since 2013	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 certain funds in the Franklin Templeton/Legg Mason fund complex.

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

Board Approval of Investment Management Agreements

FRANKLIN TEMPLETON ETF TRUST

Franklin U.S. Equity Index ETF (formerly Franklin LibertyQ Global Equity ETF)

At a meeting held on May 25, 2022 (Meeting), the Board of Trustees (Board) of Franklin Templeton ETF Trust (Trust), including a majority of the trustees who are not “interested persons” as defined in the Investment Company Act of 1940 (Independent Trustees), reviewed and approved the continuance of the investment management agreement between Franklin Advisory Services, LLC (Manager) and the Trust, on behalf the Fund (each a Management Agreement) for an additional one-year period. The Independent Trustees received advice from and met separately with Independent Trustee counsel in considering whether to approve the continuation of each Management Agreement. Although the Management Agreements for the Funds were considered at the same Board meeting, the Board considered the information provided to it about the Funds together and with respect to Fund separately as the Board deemed appropriate.

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

(v) whether fee levels reflect these economies of scale for the benefit of Fund investors.

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

Nature, Extent and Quality of Services

The Board reviewed and considered information regarding the nature, extent and quality of investment management services provided by the Manager and its affiliates to the Fund and their shareholders. This information included, among other things, the qualifications, background and experience of the senior management and investment personnel of the Manager; the structure of investment personnel compensation; oversight of third-party service providers; investment performance reports and related financial information for the Fund; reports on expenses; legal and compliance matters; risk controls; pricing and other services provided by the Manager and its affiliates; and management fees charged by the Manager and its affiliates to US funds and other accounts, including management’s explanation of differences among accounts where relevant. The Board acknowledged the ongoing integration of the Legg Mason family of funds into the Franklin Templeton (FT) family of funds, and developing strategies to address areas of heightened concern in the registered fund industry, including various regulatory initiatives and recent geopolitical concerns.

The Board also reviewed and considered the benefits provided to Fund shareholders of investing in a fund that is part of the FT family of funds. The Board noted the financial position of Franklin Resources, Inc. (FRI), the Manager’s parent, and its commitment to the registered fund business as evidenced by its continued introduction of new funds, reassessment of the fund offerings in response to the market environment and project initiatives and capital investments relating to the services provided to the Fund’s by the FT organization. The Board specifically noted FT’s commitment to being a global leader in stewardship and sustainability and the recent addition of a senior executive focused on environmental, social and governance and climate control initiatives.



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SHAREHOLDER INFORMATION

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

Fund Performance

The Board reviewed and considered the performance results of the Fund for various time periods ended February 28, 2022. The Board considered the performance returns for the Fund in comparison to the performance returns of registered fund deemed comparable to the Fund included in a universe (Performance Universe) selected by Broadridge Financial Solutions, Inc. (Broadridge), an independent provider of investment company data. The Board received a description of the methodology used by Broadridge to select the registered fund included in a Performance Universe. The Board also reviewed and considered Fund performance reports provided and discussions that occurred with portfolio managers at Board meetings throughout the year. The Board noted its ongoing discussions with management about the performance of the Fund to date, particularly as compared to peers, the importance of performance to asset growth and growth of market share, and the performance of the Fund in periods of volatility. In addition, the Board acknowledged information provided regarding management’s strategy behind the overall product line up, the sources of asset growth, the nature of management’s research, potential use of innovative data and technology, and investments in marketing and distribution. Finally, the Board noted management’s high level of client engagement and the strength of its compliance program. A summary of Fund’s performance results is below.

Franklin U.S. Equity Index ETF (The information and data included below for the Fund is with respect to the Fund’s name, investment goal and strategies prior to the August 1, 2022 Fund Repositioning- The Performance Universe for the Fund included the Fund and all retail and institutional global multi-cap core funds and exchange-traded funds. The Fund commenced operations on June 1, 2016, and thus has been in operation for less than 10 years. The Board noted that the Fund’s annualized total return for the one- and five-year periods was above the median of its Performance Universe, but for the three-year period was below the median of its Performance Universe. The Board further noted that, in light of the Fund’s use of a “passive” or indexing investment approach, management evaluates the Fund based on its tracking error against a specified benchmark. The Board noted that for the one-year period ended February 28, 2022, the Fund’s tracking error was within the tolerance anticipated for the Fund. The Board further considered and approved

implementing the Fund Repositioning for the Fund, noting management’s representation that the Fund would be repositioned as a low-cost, market capitalization-weighted, index-based ETF investing in large- and mid-capitalization US stocks. The Board concluded that the Fund’s performance was satisfactory.

Comparative Fees and Expenses

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

Franklin U.S. Equity Index ETF - The Expense Group for the Fund was comprised of strategic beta exchange-traded funds, which included the Fund, one other global multi-cap core fund, and two global multi-cap value funds. The Board noted that the Management Rate for the Fund was equal the median of its Expense Group, and that the actual total expense ratio for the Fund was below the median of its Expense Group. The Board also noted the small size of the Fund’s Expense Group. The Board further noted that the Fund has a Unified Fee and the terms of the Unified Fee Arrangement. The Board further considered and approved management’s proposed reduction in the Fund’s Management Rate from 0.35% to 0.03% in connection with the Fund Repositioning. The Board concluded that the Management Rate charged to the Fund is reasonable.



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SHAREHOLDER INFORMATION

Profitability

The Board reviewed and considered information regarding the profits realized by the Manager and its affiliates in connection with the operation of the Fund. In this respect, the Board considered the Fund profitability analysis that addresses the overall profitability of FT’s US fund business, as well as its profits in providing investment management and other services to each of the individual funds during the 12-month period ended September 30, 2021, being the most recent fiscal year-end for FRI. The Board noted that although management continually makes refinements to its methodologies used in calculating profitability in response to organizational and product-related changes, the overall methodology has remained consistent with that used in the Fund’s profitability report presentations from prior years. The Board also noted that PricewaterhouseCoopers LLP, auditor to FRI and certain FT funds, has been engaged to periodically review and assess the allocation methodologies to be used solely by the Funds’ Board with respect to the profitability analysis.

The Board noted management’s belief that costs incurred in establishing the infrastructure necessary for the type of fund operations conducted by the Manager and its affiliates may not be fully reflected in the expenses allocated to each Fund in determining its profitability, as well as the fact that the level of profits, to a certain extent, reflected operational cost savings and efficiencies initiated by management. As part of this evaluation, the Board considered management’s outsourcing of certain operations, which effort has required considerable up-front expenditures but, over the long run, is expected to result in greater efficiencies. The Board also noted management’s expenditures in improving shareholder services provided to the Fund, as well as the need to implement systems and meet additional regulatory and compliance requirements resulting from recent US Securities and Exchange Commission and other regulatory requirements.

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

Economies of Scale

The Board reviewed and considered the extent to which the Manager may realize economies of scale, if any, as the Fund grows larger and whether the Fund’s management fee structure reflects any economies of scale for the benefit of shareholders. The Board considered that Fund would likely experience benefits from the Unified Fee at the Fund’s projected asset levels because of the Manager’s contractual requirement to bear most of the Fund’s ordinary operating expenses. The Board noted that, under the Unified Fee, it is not anticipated that the Fund will generate significant, if any, profit for the Manager and/or its affiliates for some time. The Board also considered management’s view that any analyses of potential economies of scale in managing a particular fund are inherently limited in light of the joint and common costs and investments the Manager incurs across the FT family of funds as a whole. The Board also noted that, as of December 31, 2021, each Fund (except for the Franklin U.S. Large Cap Multifactor Index ETF) had net assets below $58 million. The Board also noted management’s representation that, while the Franklin U.S. Large Cap Multifactor Index ETF had net assets of approximately $1 billion as of December 31, 2021, none of the Funds experienced a profit for the fiscal year ended September 30, 2021. The Board recognized that there would not likely be any economies of scale for a Fund until the Fund’s assets grow.

Conclusion

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

Liquidity Risk Management Program – Non-In-Kind ETFs

The Fund has adopted and implemented a written Liquidity Risk Management Program (the “LRMP”) as required by Rule 22e-4 under the Investment Company Act of 1940 (the “Liquidity Rule”). The LRMP for the Franklin Templeton and Legg Mason Funds is designed to assess and manage Fund’s liquidity risk, which is defined as the risk that the Fund could not meet requests to redeem shares issued by the Fund without significant dilution of remaining investors’ interests in the Fund. In accordance with the Liquidity Rule, the LRMP includes policies and procedures that provide for: (1) assessment, management, and review (no less frequently than annually) of Fund’s liquidity risk; (2) classification of Fund’s portfolio holdings into one of four



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SHAREHOLDER INFORMATION

liquidity categories (Highly Liquid, Moderately Liquid, Less Liquid, and Illiquid); (3) for Fund’s that do not primarily hold assets that are Highly Liquid, establishing and maintaining a minimum percentage of the Fund’s net assets in Highly Liquid investments (called a “Highly Liquid Investment Minimum” or “HLIM”); and (4) prohibiting the Fund’s acquisition of Illiquid investments that would result in the Fund holding more than 15% of its net assets in Illiquid assets. The LRMP also requires reporting to the Securities and Exchange Commission (“SEC”) (on a non-public basis) and to the Board if the Fund’s holdings of Illiquid assets exceed 15% of the Fund’s net assets. Funds with HLIMs must have procedures for addressing HLIM shortfalls, including reporting to the Board and, with respect to HLIM shortfalls lasting more than seven consecutive calendar days, reporting to the SEC (on a non-public basis).

In assessing and managing Fund’s liquidity risk, the ILC considers, as relevant, a variety of factors, including the Fund’s investment strategy and the liquidity of its portfolio investments during both normal and reasonably foreseeable stressed conditions; its short and long-term cash flow projections; and its cash holdings and access to other funding sources including the Fund’s interfund lending facility and line of credit. Classification of the Fund’s portfolio holdings in the four liquidity categories is based on the number of days it is reasonably expected to take to convert the investment to cash (for Highly Liquid and Moderately Liquid holdings) or sell or dispose of the investment (for Less Liquid and Illiquid investments), in current market conditions without significantly changing the investment’s market value.

Fund primarily holds liquid assets that are defined under the Liquidity Rule as “Highly Liquid Investments,” and therefore is not required to establish an HLIM. Highly Liquid Investments are defined as cash and any investment reasonably expected to be convertible to cash in current market conditions in three business days or less without the

conversion to cash significantly changing the market value of the investment.

At meetings of the Funds’ Board of Trustees held in May 2022, the Program Administrator provided a written report to the Board addressing the adequacy and effectiveness of the program for the year ended December 31, 2021. The Program Administrator report concluded that (i.) the LRMP, as adopted and implemented, remains reasonably designed to assess and manage each Fund’s liquidity risk; (ii.) the LRMP, including the Highly Liquid Investment Minimum (“HLIM”) where applicable, was implemented and operated effectively to achieve the goal of assessing and managing each Fund’s liquidity risk; and (iii.) each Fund was able to meet requests for redemption without significant dilution of remaining investors’ interests in the Fund.

Proxy Voting Policies and Procedures

Quarterly Schedule of Investments

Premium/Discount Information



franklintempleton.com	Annual Report	41

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ANNUAL REPORT

FRANKLIN FTSE

RUSSIA ETF

A Series of Franklin Templeton ETF Trust

March 31, 2023

LOGO



Contents

Annual Report

Franklin FTSE Russia ETF			3
Economic and Market Overview			4
Performance Summary			6
Financial Highlights and Schedules of Investments			11
Financial Statements			13
Notes to Financial Statements			17
Report of Independent Registered Public Accounting Firm			24
Board Members and Officers			26
Shareholder Information			29

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updates and documents, or to find helpful

financial planning tools.


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



franklintempleton.com	Annual Report	1



2	Annual Report	franklintempleton.com

ANNUAL REPORT

FRANKLIN FTSE RUSSIA ETF

This annual report for Franklin FTSE Russia ETF covers the period ended March 31, 2023. Effective March 1, 2022, the Fund suspended new creations of its shares in light of ongoing issues related to Russia’s invasion of Ukraine. In addition, effective March 4, 2022, NYSE Arca, Inc., the Fund’s primary listing exchange (“NYSE Arca”), halted trading of the Fund. Additionally, the value and liquidity of Russian securities experienced significant declines due to the circumstances related to the conflict. The Russian securities markets did not open for trading on February 28, 2022, and were closed for a period of time before reopening on March 24, 2022, but significant trading limitations have remained. As a result, the Fund fair valued all Russian equity securities at $0 (as of March 31, 2023, such securities continue to be fair valued at $0). Accordingly, as of March 31, 2023, the Fund’s portfolio was comprised of Russian equity securities (fair valued at $0 as noted above) and cash. In addition, FTSE Russell has suspended rebalancings/reconstitutions of the FTSE Russia RIC Capped Index, the Fund’s underlying index, including application of the capping methodology, as well as other index policies until further notice.

On July 20, 2022, the Board of Trustees of the Trust (the “Board”) unanimously voted to close and liquidate the Fund, contingent on receiving any necessary relief from the U.S. Securities and Exchange Commission (“SEC”). On December 23, 2022, the SEC granted exemptive relief to the Fund permitting the Fund to suspend the right of redemption with respect to shares of the Fund and, if necessary, postpone the date of payment of redemption proceeds with respect to redemption orders received but not yet paid until the Fund completes the liquidation of its portfolio and distributes all its assets to remaining shareholders. The Fund was delisted from NYSE Arca effective December 27, 2022.

The Fund is in the process of liquidating its assets and winding up its business pursuant to a plan of liquidation. The Fund may make one or more liquidating distributions. It is possible that the liquidation of the Fund will take an extended period of time if circumstances involving Russian securities do not improve. While the Fund is in the process of liquidating its portfolio, the Fund will hold cash and securities that may not be consistent with the Fund’s investment goal and strategies and will experience significantly higher tracking error than is typical for the Fund. Furthermore, because of the delisting of the Fund by NYSE Arca and the liquidation of the Fund, the Fund is no longer an exchange-traded fund. Upon payment of the final liquidating distribution, it is anticipated that the Fund will be terminated.

Franklin Templeton anticipates that the Fund will remain in existence until at least December 31, 2023, to allow the Fund to sell the securities, if conditions permit; the Fund may be terminated sooner if all of the Russian securities have been sold before that date (or they cease to represent valid interests in their issuers). After December 31, 2023, the Fund may be terminated at any time, at the discretion of the Board, even if not all of the Russian securities have been sold. Due to the uncertainty involved, there can be no assurance that shareholders will receive any liquidating distribution relating to any unsold Russian securities. Refer to the notes to financial statements for additional information about the plan of liquidation.

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

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. FTSE Russell has suspended rebalancings/reconstitutions of the FTSE Russia Capped Index, including application of the capping methodology, as well as other index policies.

2. Source: FactSet. The Fund’s returns based on net asset value include the Fund’s valuation of its Russian securities based on fair value prices. The value of the FTSE Russia Capped Index, on the other hand, is based on securities’ last closing prices on local foreign markets (i.e., the value of the FTSE Russia Capped Index is not based on fair value prices). With regards to the Fund’s returns based on market price, the Fund suspended new creations of its shares effective March 1, 2022, NYSE Arca halted trading of the Fund effective March 4, 2022 and the Fund was delisted from NYSE Arca effective December 27, 2022. Therefore, from March 4 2022 through March 31, 2023, the Fund did not have a daily closing market price.

3. Source: Morningstar.

The dollar value, number of shares or principal amount, and names of all portfolio holdings are listed in the Fund’s Schedule of Investments (SOI). The SOI begins on page 12.



franklintempleton.com	Annual Report	3

FRANKLIN FTSE RUSSIA ETF

Capped Index and in depositary receipts representing such securities. The Fund is in the process of liquidating its assets and winding up its business pursuant to a plan of liquidation.


Top 10 Sectors/Industries

3/31/23

This disclosure has not been included as all securities of the Fund are valued at zero as of March 31, 2023. As noted, due to the circumstances surrounding the Russian invasion of Ukraine, the Fund is primarily holding cash. Please refer to Note 6 under Notes to Financial Statements.


Top 10 Holdings

3/31/23

Performance Overview

During the 12-month period ended March 31, 2023, the Fund’s portfolio was comprised of Russian equity securities (fair valued at $0 as noted above) and cash. During that period, the Fund’s NAV per share increased from $0.003378 as of March 31, 2022, to $0.005857 as of March 31, 2023. In comparison, the FTSE Russia Capped Index posted a -19.34% total return for the same period.² You can find more of the Fund’s performance data in the Performance Summary beginning on page 6.

Economic and Market Overview

for economic growth. Russia’s ongoing invasion of Ukraine and related disruptions to the global economy also increased investor uncertainty and led to substantial volatility in commodity markets. In China, COVID-19-related lockdowns sharply restricted economic activity prior to the government easing controls in December 2022.

Economic growth in the eurozone was tepid during 2022, ending with zero growth in the fourth quarter. The ongoing war in Ukraine disrupted supply chains, weakened the economic outlook and contributed to record high inflation across the eurozone, as energy prices soared in the first half of the period. However, governments spent significant sums to subsidize consumers and find alternative supplies. Consequently, price of natural gas in Europe declined notably in the period’s second half, providing a tailwind for European stocks. The European Central Bank increased interest rates in July 2022 for the first time in 11 years to curtail growing inflation and further raised rates in five subsequent meetings. In this environment, European developed market equities, as measured by the MSCI Europe Index-NR, posted a +1.38% total return for the 12 months under review.³

Asian developed and emerging market equities, as measured by the MSCI All Country Asia Index-NR, posted a -7.61% total return for the 12-month period.³ Economic activity in Japan remained slow, alternating between positive quarterly GDP growth and contraction before stalling in 2022’s fourth quarter with zero growth. On an annual basis, China’s economic growth slowed, hindered by investor concerns about the solvency of several large property developers and a period of strict COVID-19 lockdowns.

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



4	Annual Report	franklintempleton.com

FRANKLIN FTSE RUSSIA ETF

Global emerging market stocks, as measured by the MSCI Emerging Markets Index-NR, posted a -10.70% total return for the 12 months under review.³ Central bank tightening, the threat of recession, and a U.S. dollar that strengthened relative to many emerging market currencies contributed to the downturn. While most of the commodity price increases related to the war in Ukraine moderated by period-end, this volatility disrupted some emerging market economies that are dependent on energy and food imports.

Manager’s Discussion

Following Russia’s invasion of Ukraine in February 2022 and subsequent related economic sanctions, our Fund operations were significantly impacted. As disclosed previously, trading in the Fund was halted by NYSE Arca prior to market open on March 4, 2022. No further trading occurred for the entire fiscal year ending March 31, 2023, and the Fund was delisted on December 27, 2022. On July 20, 2022, the Board unanimously approved the closure and liquidation of the Fund, and the SEC granted necessary relief to suspend redemptions on December 23, 2022. The Fund is in the process of liquidating its assets and winding up its business pursuant to a plan of liquidation. The Fund may make one or more liquidating distributions. Given current market conditions in Russia and related sanctions that remain in effect, it is possible that the liquidation of the Fund will take an extended period of time if circumstances involving Russian securities do not improve. Please see above as well as Note 7 under Notes to Financial Statements for more information.

Thank you for your participation in Franklin FTSE Russia ETF. We look forward to serving your future investment needs.

Dina Ting, CFA

Hailey Harris

Joe Diederich

Basit Amin, CFA

Portfolio Management Team

CFA^® is a trademark owned by CFA Institute.



franklintempleton.com	Annual Report	5

FRANKLIN FTSE RUSSIA ETF

Performance Summary as of March 31, 2023

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. Market Price returns typically are based upon the official closing price of the ETF’s shares. 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.

The Fund is in the process of liquidating its assets and winding up its business pursuant to a plan of liquidation.

Performance as of 3/31/23¹

Cumulative Total Return²

Average Annual Total Return²

Based on
NAV³

Based on
market price⁴

Based on
NAV³

Based on
market price⁴

1-Year

N/A

3-Year

-99.97%

-44.98%

-92.97%

-18.06%

Since Inception (2/6/18)

-99.97%

-53.30%

-79.32%

-13.76%

* During the 12-month period ended March 31, 2023, the Fund’s unrounded NAV per share increased from $0.003378 as of March 31, 2022 to $0.005857 as of March 31, 2023.

See page 9 for Performance Summary footnotes.



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FRANKLIN FTSE RUSSIA 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.

2/6/18–3/31/23

LOGO

See page 9 for Performance Summary footnotes.



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FRANKLIN FTSE RUSSIA ETF

PERFORMANCE SUMMARY

Distributions (4/1/22–3/31/23)

Net Investment

Income

$0.000000

Total Annual Operating Expenses^6,7

0.19%

As a result, the Fund’s ability to price, buy, sell, receive or deliver Russian investments has been severely impaired. For example, the Fund may be prohibited from investing in or acquiring securities issued by companies subject to such sanctions. In addition, the sanctions may require the Fund to freeze its existing investments in companies operating in or having dealings with Russia, which would prevent the Fund from selling or delivering these investments. Further, any exposure that the Fund may have to Russian counterparties could negatively impact the Fund’s portfolio. The liquidation of Fund assets during this time may also result in the Fund receiving substantially lower prices for its securities. The extent and duration of Russia’s military actions and the repercussions of such actions are impossible to predict, but could result in significant market disruptions, including in the oil and natural gas markets, and may negatively affect global supply chains, inflation and global growth. These and any related events have adversely affected the value and liquidity of the Fund’s holdings and may continue to significantly impact the Fund’s performance and the value of an investment in the Fund. These as well as any other consequences to Russia, such as additional sanctions, boycotts or changes in consumer or purchaser preferences or cyberattacks on the Russian government, companies or individuals, along with any retaliatory actions or countermeasures that may be taken by Russia (including cyberattacks on other governments, corporations or individuals), may further decrease the value and liquidity of Russian securities. Additionally, due to current and potential future sanctions or market closures impacting the ability to trade or transfer Russian securities, the Fund may experience higher transaction costs. During this time, the Fund will not meet its investment goal and will experience significant tracking error. These circumstances could also have adverse tax, regulatory and/or other consequences to the Fund.



8	Annual Report	franklintempleton.com

FRANKLIN FTSE RUSSIA ETF

PERFORMANCE SUMMARY

1. The total annual operating expenses are as of the Fund’s prospectus available at the time of publication. Actual expenses may be higher and may impact portfolio returns. Effective March 1, 2022, Franklin Advisory Services, LLC (the Fund’s investment manager) implemented a voluntary waiver of its management fee for the Fund. This voluntary waiver may be eliminated by the investment manager at any time.

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. The Fund’s returns based on net asset value include the Fund’s valuation of its Russian securities based on fair value prices.

4. Assumes reinvestment of distributions based on market price. Regarding the Fund’s returns based on market price, the Fund suspended new creations of its shares effective March 1, 2022, NYSE Arca halted trading of the Fund effective March 4, 2022, and the Fund was delisted from NYSE Arca effective December 27, 2022. Therefore, from March 4, 2022, through March 31, 2023, the Fund did not have a daily closing market price.

5. 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. The Fund’s returns based on net asset value include the Fund’s valuation of its Russian securities based on fair value prices. The value of the FTSE Russia Capped Index, on the other hand, is based on securities’ last closing prices on local foreign markets (i.e., the value of the FTSE Russia Capped Index is not based on fair value prices). FTSE Russell has temporarily suspended rebalancings/reconstitutions of the FTSE Russia Capped Index, including application of the capping methodology.

7. Effective March 1, 2022, Franklin Advisory Services, LLC (the Fund’s investment manager) implemented a voluntary waiver of its management fee for the Fund. This voluntary waiver may be eliminated by the investment manager at any time.

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



franklintempleton.com	Annual Report	9

FRANKLIN FTSE RUSSIA 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. As noted above, the Fund suspended new creations of its shares effective March 1, 2022, NYSE Arca halted trading of the Fund effective March 4, 2022 and the fund was delisted from NYSE Arca effective December 27, 2022. During the 12-month period ended March 31, 2023, the Fund’s portfolio was comprised of Russian equity securities (fair valued at $0 as noted above) and cash, and Fund shares were not available for purchase.

Actual Fund Expenses

Hypothetical Example for Comparison with Other Funds


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

Beginning Account Value 10/1/22		Ending Account Value 3/31/23			Expenses Paid During Period 10/1/22–3/31/23^1,2		Ending Account Value 3/31/23		Expenses Paid During Period 10/1/22–3/31/23¹		Net Annualized Expense Ratio
	$1,000.00	$	1,006.20	³	$	0.00	$	1,024.93	$	0.00		0.00	%

2. Effective March 1, 2022, Franklin Advisory Services, LLC (the fund’s investment manager) has implemented a voluntary waiver of its management fee for the Fund. This voluntary waiver may be eliminated by the investment manager at any time.

3. The amount shown above reflects the Fund’s unrounded NAV per share increasing from $0.005827 as of September 30, 2022 to $0.005857 as of March 31, 2023.



10	Annual Report	franklintempleton.com

FRANKLIN TEMPLETON ETF TRUST

Financial Highlights

Franklin FTSE Russia ETF



	Year Ended March 31,

	2023			2022			2021			2020			2019
Per share operating performance (for a share outstanding throughout the year)

Net asset value, beginning of year	$	—	^a	$	26.98		$	18.91		$	23.37		$	24.24


Income from investment operations^b:

Net investment income^c		—	^a		1.68			1.41			1.73			1.03

Net realized and unrealized gains (losses)		0.01	^d		(27.28	)		8.34			(4.44	)		(1.26	)


Total from investment operations		0.01	^d		(25.60	)		9.75			(2.71	)		(0.23	)


Less distributions from net investment income		—			(1.38	)		(1.68	)		(1.75	)		(0.64	)


Net asset value, end of year	$	0.01	^d	$	—	^a	$	26.98		$	18.91		$	23.37


Total return^e		73.56%	^f		(100.00)%			52.27%			(13.90)%			(0.63)%

Ratios to average net assets^g

Expenses before waiver and payments by affiliates		0.19%			0.19%			0.19%			0.19%			0.19%

Expenses net of waiver and payments by affiliates		—%			0.19%			0.19%			0.19%			—%

Net investment income		49.38%	^h		6.19%			6.02%			6.49%			4.57%

Supplemental data

Net assets, end of year (000’s)		$5			$3			$10,794			$13,240			$11,683

Portfolio turnover rateⁱ		—%	^j		20.45%	^j		18.82%	^j		15.74%	^j		31.57%

^aAmount rounds to less than $0.005 per share.

^cBased on average daily shares outstanding.

^dActual amount less than $0.01 per share. Amount shown reflects effect of rounding.

^fThe amount shown above reflects the Fund’s unrounded NAV per share increasing from $0.003378 as of March 31, 2022 to $0.005857 as of March 31, 2023.

^gRatios are annualized for periods less than one year.

^h47.52% of this amount represents income from refunds of foreign tax withheld included in net investment income.

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


^jPortfolio turnover rate excluding cash creations was as follows:			—				20.45%				18.82%				5.74%

franklintempleton.com

The accompanying notes are an integral part of these financial statements. | Annual Report

FRANKLIN TEMPLETON ETF TRUST

Schedule of Investments, March 31, 2023

Franklin FTSE Russia ETF



		Industry		Shares		Value
	Common Stocks 0.0%^†
a	Russia 0.0%^†
b	Aeroflot Russian Airline PJSC		Airlines		174,496	$	—
b	Alrosa PJSC		Metals & Mining		361,232		—
b	Credit Bank of Moscow PJSC		Banks		2,127,840		—
b	Federal Grid Co. Unified Energy System PJSC		Electric Utilities		45,533,568		—
	Gazprom PJSC		Oil, Gas & Consumable Fuels		981,872		—
	Inter RAO UES PJSC		Electric Utilities		6,229,280		—
	LUKOIL PJSC		Oil, Gas & Consumable Fuels		36,048		—
b	M.Video PJSC		Specialty Retail		8,000		—
b	Magnit PJSC		Consumer Staples Distribution & Retail		8,112		—
b	Magnitogorsk Iron & Steel Works PJSC		Metals & Mining		370,640		—
	MMC Norilsk Nickel PJSC		Metals & Mining		2,888		—
	Mobile TeleSystems PJSC		Wireless Telecommunication Services		147,584		—
b	Moscow Exchange MICEX		Capital Markets		253,248		—
	Mosenergo PJSC		Electric Utilities		1,418,704		—
	Novatek PJSC		Oil, Gas & Consumable Fuels		47,472		—
b	Novolipetsk Steel PJSC		Metals & Mining		200,944		—
	PhosAgro PJSC		Chemicals		6,208		—
b	Polyus PJSC		Metals & Mining		3,504		—
b	Raspadskaya OJSC		Metals & Mining		10,720		—
	Rosneft Oil Co. PJSC		Oil, Gas & Consumable Fuels		92,320		—
b	Rosseti PJS		Electric Utilities		34,561,909		—
	Rostelecom PJSC		Diversified Telecommunication Services		165,056		—
	RusHydro PJSC		Electric Utilities		20,149,712		—
b	Sberbank of Russia PJSC		Banks		959,968		—
c	Segezha Group PJSC, 144A		Paper & Forest Products		666,096		—
b	Severstal PAO		Metals & Mining		27,744		—
b	Sistema PJSFC		Wireless Telecommunication Services		499,664		—
b	Sovcomflot OAOSovcomflotOAO		Oil, Gas & Consumable Fuels		72,128		—
	Surgutneftegas PJSC		Oil, Gas & Consumable Fuels		634,480		—
	Tatneft PJSC		Oil, Gas & Consumable Fuels		105,552		—
b	Unipro PJSC		Independent Power Producers & Energy Traders		1,811,376		—
	United Co. RUSAL International PJSC		Metals & Mining		447,600		—
b	VTB Bank PJSC		Banks		886,353,216		—

	Preferred Stocks 0.0%^†
b	Russia 0.0%^†
d	Bashneft PJSC, pfd.		Oil, Gas & Consumable Fuels		3,392		—
d	Surgutneftegas PJSC, pfd.		Oil, Gas & Consumable Fuels		682,080		—
d	Tatneft PJSC, pfd.		Oil, Gas & Consumable Fuels		10,416		—
d	Transneft PJSC, pfd.		Oil, Gas & Consumable Fuels		276		—

	Total Preferred Stocks (Cost $1,113,686)		.				—

	Total Investments (Cost $22,476,787) 0.0%						—
	Other Assets, less Liabilities 100.0%						4,691

	Net Assets 100.0%					$	4,691

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

^aFair valued using significant unobservable inputs. Note 8 regarding fair value measurements.

^bNon-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, 2023, the value of was $0, representing 0.0% of net assets.

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



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

FRANKLIN TEMPLETON ETF TRUST

FINANCIAL STATEMENTS

Statement of Assets and Liabilities

March 31, 2023


Assets:
Investments in securities:
Cost – Unaffiliated issuers	$	22,476,787
Value – Unaffiliated issuers	$	—
Cash		4,527
Receivables:
Affiliates		82
Other assets		82

Total assets		4,691

Liabilities:
Payables:
Total liabilities		—

Net assets, at value	$	4,691

Net assets consist of:
Paid-in capital	$	23,212,734
Total distributable earnings (loss)		(23,208,043	)

Net assets, at value	$	4,691

Shares outstanding		800,000

Net asset value per share	$	0.01^a

^a Actual amount less than $0.01 per share. Amount shown reflects effect of rounding.



franklintempleton.com	The accompanying notes are an integral part of these financial statements. \| Annual Report	13

FRANKLIN TEMPLETON ETF TRUST

FINANCIAL STATEMENTS

Statement of Operation



Investment income:
Dividends: (net of foreign taxes)^a
Unaffiliated issuers	$	2,075
Interest:
Unaffiliated issuers		81

Total investment income		2,156

Expenses:
Management fees (Note 3a)		8

Total expenses		8
Expenses waived/paid by affiliates (Note 3c)		(8	)

Net investment income		2,156

Realized and unrealized gains (losses):
Net realized gain (loss) from:
Investments:
Foreign currency transactions		(167	)

Net realized gain (loss)		(167	)

Net change in unrealized appreciation (depreciation) on:
Investments:
Net change in unrealized appreciation (depreciation)		—

Net realized and unrealized gain (loss)		(167	)

Net increase (decrease) in net assets resulting from operations	$	1,989


^aForeign taxes withheld on dividends	$	(2,075	)



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

FRANKLIN TEMPLETON ETF TRUST

FINANCIAL STATEMENTS

Statement of Changes in Net assets



	Year Ended March 31, 2023			Year Ended March 31, 2022
Increase (decrease) in net assets:
Operations:
Net investment income	$	2,156		$	1,109,115
Net realized loss		(167	)		(184,908	)
Net change in unrealized appreciation (depreciation)		—			(23,581,497	)

Net increase (decrease) in net assets resulting from operations		1,989			(22,657,290	)

Distributions to shareholders (Note 1d)		—			(1,062,975	)

Capital share transactions: (Note 2)		—			12,929,102

Net increase (decrease) in net assets		1,989			(10,791,163	)
Net assets:
Beginning of year		2,702			10,793,865

End of year	$	4,691		$	2,702



franklintempleton.com	The accompanying notes are an integral part of these financial statements. \| Annual Report	15

FRANKLIN TEMPLETON ETF TRUST

FINANCIAL STATEMENTS

Statement of Cash Flows

for the year ended March 31, 2023



	Franklin FTSE Russia ETF
Cash Flows from Operating Activities
Net increase in net assets resulting from operations	$	1,989
Adjustments to reconcile net decrease in net assets resulting from operations to net cash used in operating activities:
Increase in miscellaneous receivable		(164	)
Decrease in management fees payable		(82	)

Net cash used in operating activities		1,743

Cash Flows from Financing Activities
Net change in cash		1,743
Cash/(bank overdraft) at beginning of year		2,784

Cash at end of year	$	4,527



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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-eight separate funds, one of which is included in this report (Fund) and applies the specialized accounting and reporting guidance in U.S. Generally Accepted Accounting Principles (U.S. GAAP), including, but not limited to, ASC 946. The Fund follows the accounting and reporting guidance in Financial Accounting Standards Board (“FASB”) Accounting Standard Codification Topic 946, Financial Services -Investment Companies (“ASC 946”). The Fund seeks to provide the investment results that closely correspond, before fees and expenses, to the performance of the Fund’s underlying index.

The following summarizes the Fund’s significant accounting policies.

a. Financial Instrument Valuation

The Fund may utilize independent pricing services, quotations from securities and financial instrument dealers, and other market sources to determine fair value.

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.

Trading in securities on foreign securities stock exchanges and OTC markets may be completed before 4 p.m. Eastern time. In addition, trading in certain foreign markets may not take place on Fund’s business day. Occasionally, events occur between the time at which trading in a foreign security is completed and 4 p.m. Eastern time that might call into question the reliability of the value of a portfolio security held by the Fund. As a result, differences may arise between the value of the Fund’s portfolio securities as determined at the foreign market close and the latest indications of value at 4 p.m. Eastern time. In order to minimize the potential for these differences, an independent pricing service may be used to adjust the Fund’s portfolio securities to the latest indications of fair value at 4 p.m. Eastern time. At March 31, 2023, certain securities may have been fair valued using these procedures, in which case the securities were categorized as Level 2 inputs within the fair value hierarchy (referred to as “market level fair value”).



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FRANKLIN TEMPLETON ETF TRUST

NOTES TO FINANCIAL STATEMENTS

1. Organization and Significant Accounting Policies (continued)

a. Financial Instrument Valuation (continued)

b. Foreign Currency Translation

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

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

c. Income and Deferred Taxes

The Fund may recognize an income tax liability related to its uncertain tax positions under U.S. GAAP when the uncertain tax position has a less than 50% probability that it will be sustained upon examination by the tax authorities based on its technical merits. As of March 31, 2023, the Fund has determined that no tax liability is required in its financial statements related to uncertain tax positions for any open tax years (or expected to be taken in future tax years). Open tax years are those that remain subject to examination and are based on the statute of limitations in each jurisdiction in which the Fund invests.

d. Security Transactions, Investment Income, Expenses and Distributions

Security transactions are accounted for on trade date. Realized gains and losses on security transactions are determined on a specific identification basis. Interest income and estimated expenses are accrued daily. Amortization of premium and accretion of discount on debt securities are included in interest income. Dividend income and capital gain distributions are recorded on the ex-dividend date except for certain dividends from securities where the dividend rate is not available. In such cases, the dividend is recorded as soon as the information is received by the Fund. Distributions to shareholders are recorded on the ex-dividend date. Distributable earnings are determined according to income tax regulations (tax basis) and may differ from earnings recorded in accordance with U.S. GAAP. These differences may be permanent or temporary. Permanent differences are reclassified among capital accounts to reflect their tax character. These reclassifications



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NOTES TO FINANCIAL STATEMENTS

1. Organization and Significant Accounting Policies (continued)

d. Security Transactions, Investment Income, Expenses and Distributions (continued)

have no impact on net assets or the results of operations. Temporary differences are not reclassified, as they may reverse in subsequent periods.

e. Accounting Estimates

The preparation of financial statement in accordance with U.S. GAAP requires management to make estimates and

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

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 Fund, enters into contracts with service providers that contain general indemnification clauses. The Trust’s maximum exposure under these arrangements is unknown as this would involve future claims that may be made against the Trust that have not yet occurred. Currently, the Trust expects the risk of loss to be remote.

2. Shares of Beneficial Interest

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

At March 31, 2023, there were an unlimited number of shares authorized (without par value). Transactions in the Fund’s shares were as follows:



	Franklin FTSE Russia ETF^{1, 2}

	Year Ended March 31, 2023				Year Ended March 31, 2022

	Shares		Amount		Shares		Amount
Shares sold		—	$	—		400,000	$	12,929,102

Net increase (decrease)		—	$	—		400,000	$	12,929,102

1. Effective 4 AM Eastern Time on March 4, 2022: The NYSE Arca, Inc. announced a trading halt of the Fund.

2. Effective March 1, 2022: The Fund has temporarily suspended new creations of its shares until further notice. Please refer to the prospectus for further detail.



franklintempleton.com	Annual Report	19

FRANKLIN TEMPLETON ETF TRUST

NOTES TO FINANCIAL STATEMENTS

3. Transactions with Affiliates



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

a. Management fees

The Fund pays a unified management fee to FASL whereby FASL has agreed to reimburse the Fund’s acquired fund fees and expenses (if any) and pay all of the ordinary operating expenses of the Fund, including custody, transfer agency, and Trustee fees and expenses, among others, but excluding payments under the Fund’s Rule 12b-1 plan (if any), brokerage expenses (including any costs incidental to transactions in portfolio securities or instruments), taxes, interest (including borrowing costs and dividend expenses on securities sold short and overdraft charges), litigation expenses (including litigation to which the Trust or a Fund may be a party and indemnification of the Trustees and officers with respect thereto), and other non-routine or extraordinary expenses. Effective March 1, 2022, FASL has implemented a voluntary waiver of its management fee for the Fund. This voluntary waiver may be eliminated by the investment manager at any time. For the period April 1, 2022 through March 31, 2023 the annualized contractual management fee rate was 0.19%. FASL waived it’s management fee for the period.

b. Administrative Fees

4. Income Taxes

For tax purposes, capital losses may be carried over to offset future capital gains. At March 31, 2023, the capital loss carryforwards were as follows:



	Year Ended March 31, 2023
Capital loss carryforwards not subject to expiration:
Long term	$	313,328
Short term		235,236

Total capital loss carryforwards	$	548,564

The tax character of distributions paid during the period ended March 31, 2023 and 2022, were as follows:



	2023		2022
Distributions paid from Ordinary income	$	—	$	1,062,975



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FRANKLIN TEMPLETON ETF TRUST

NOTES TO FINANCIAL STATEMENTS

4. Income Taxes (continued)

At March 31, 2023, the cost of investments, net unrealized appreciation (depreciation) and undistributed ordinary income for income tax purposes were as follows:



	Year Ended March 31, 2023
Cost of investments	$	22,661,468

Unrealized appreciation	$	—
Unrealized depreciation		(22,661,468	)

Net unrealized appreciation (depreciation)	$	(22,661,468	)

Distributable earnings – undistributed ordinary income	$	1,989

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, and wash sales.

5. Investment Transactions

There were no purchases and sales of investments for the year ended March 31, 2023.

6. Concentration of Risk

Russia’s military invasion of Ukraine in February 2022, the resulting responses by the United States and other countries, and the potential for wider conflict has increased volatility and uncertainty in the financial markets and adversely affected the Fund. The United States and other countries and certain international organizations have imposed broad-ranging economic sanctions on Russia and certain Russian individuals, banking entities and corporations as a response to Russia’s invasion of Ukraine. These sanctions froze certain Russian assets and prohibited, among other things, trading in certain Russian securities and doing business with specific Russian corporate entities, large financial institutions, officials and oligarchs. The sanctions also included the removal of some Russian banks from the Society for Worldwide Interbank Financial Telecommunications (SWIFT), the electronic network that connects banks globally, and imposed restrictive measures to prevent the Russian Central Bank from undermining the impact of the sanctions. A number of large corporations and U.S. states have also announced plans to divest interests or otherwise curtail business dealings with certain Russian businesses. In response, the government of Russia has imposed capital controls to restrict movements of capital entering and exiting the country. These sanctions and any additional sanctions or other intergovernmental actions that may be undertaken against Russia in the future may result in the devaluation of the Russian currency and a downgrade in the country’s credit rating. Ongoing developments related to the war have caused and may continue to cause severe declines in the value and liquidity of Russian securities. As a result, the Fund’s ability to price, buy, sell, receive or deliver Russian investments has been severely impaired. For example, the Fund may be prohibited from investing in or acquiring securities issued by companies subject to such sanctions. In addition, the sanctions may require the Fund to freeze its existing investments in companies operating in or having dealings with Russia, which would prevent the Fund from selling or delivering these investments. Further, any exposure that the Fund may have to Russian counterparties could negatively impact the Fund’s portfolio. The liquidation of Fund assets during this time may also result in the Fund receiving substantially lower prices for its securities. The extent and duration of Russia’s military actions and the repercussions of such actions are impossible to predict, but could result in significant market disruptions, including in the oil and natural gas markets, and may negatively affect global supply chains, inflation and global growth. These and any related events have adversely affected the value and liquidity of the Fund’s holdings and may continue



franklintempleton.com	Annual Report	21

FRANKLIN TEMPLETON ETF TRUST

NOTES TO FINANCIAL STATEMENTS

6. Concentration of Risk (continued)

to significantly impact the Fund’s performance and the value of an investment in the Fund. These as well as any other consequences to Russia, such as additional sanctions, boycotts or changes in consumer or purchaser preferences or cyberattacks on the Russian government, companies or individuals, along with any retaliatory actions or countermeasures that may be taken by Russia (including cyberattacks on other governments, corporations or individuals), may further decrease the value and liquidity of Russian securities. Additionally, due to current and potential future sanctions or market closures impacting the ability to trade or transfer Russian securities, the Fund may experience higher transaction costs. During this time, the Fund will not meet its investment goal and will experience significant tracking error. These circumstances could also have adverse tax, regulatory and/or other consequences to the Fund.

At March 31, 2023, the Franklin FTSE Russia ETF had 100% of its net assets invested in securities with significant economic risk or exposure to Russia. The Valuation Committee determined that based on their analysis of the market and access to market participants, the Russian financial instruments held by the Franklin FTSE Russia ETF had no value at March 31, 2023.

7. Plan of Liquidation

Russia’s large-scale invasion of Ukraine on February 24, 2022 has led to economic sanctions on certain Russian individuals and Russian corporate and banking entities, the imposition of capital controls in Russia, and the closure of Russian securities markets. Previously, on March 1, 2022, the Fund suspended new creations of its shares in light of circumstances involving Russia and Ukraine and trading in the Fund was halted by the Fund’s listing exchange, NYSE Arca, Inc. (“NYSE Arca”), prior to market open on March 4, 2022. The Fund had 100% of its net assets invested in securities with significant economic risk or exposure to Russia. The Fund fair valued all Russian equity securities at $0 (as of March 31, 2023, such securities continue to be fair valued at $0). Accordingly, as of March 31, 2023, the Fund’s portfolio is comprised of Russian equity securities (currently fair valued at $0 as noted above) and cash.

8. Fair Value Measurements

The Fund follows a fair value hierarchy that distinguishes between market data obtained from independent sources (observable inputs) and the Fund’s own market assumptions (unobservable inputs). These inputs are used in determining the value of the Fund’s financial instruments and are summarized in the following fair value hierarchy:

•

Level 1 – quoted prices in active markets for identical financial instruments



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FRANKLIN TEMPLETON ETF TRUST

NOTES TO FINANCIAL STATEMENTS

8. Fair Value Measurements (continued)

•

Level 2 – other significant observable inputs (including quoted prices for similar financial instruments, interest rates, prepayment speed, credit risk, etc.)

•

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

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

A summary of inputs used as of March 31, 2023, in valuing the Fund’s assets and liabilities carried at fair value, is as follows:

Level 1

Level 2

Level 3

Total

Franklin FTSE Russia ETF

Assets:

Investments in Securities:^a

Equity Investments^b

—

—^c

—

^a For detailed categories, see the accompanying Schedules of Investments.

^b Includes common and preferred stocks, warrants, as well as other equity investments.

^c Includes securities determined to have no value at March 31, 2023.

9. New Accounting Pronouncements

10. Subsequent Events

The Fund has evaluated subsequent events through the issuance of these Financial Statements and determined that no events have occurred that require disclosure.



franklintempleton.com	Annual Report	23

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 FTSE Russia ETF

Opinion on the Financial Statements

We have audited the accompanying statements of assets and liabilities, including the schedule of investments, of Franklin FTSE Russia ETF (one of the funds constituting Franklin Templeton ETF Trust, hereafter collectively referred to as the “Fund”) as of March 31, 2023, the related statement of operations and its cash flows for the year ended March 31, 2023, the statements of changes in net assets for each of the two years in the period ended March 31, 2023, including the related notes, and the financial highlights for each of the five years in the period ended March 31, 2023 (collectively referred to as the “financial statements”). In our opinion, the financial statements present fairly, in all material respects, the financial position of the Fund as of March 31, 2023, the results of its operations for the year then ended, the changes in its net assets for each of the two years in the period ended March 31, 2023 and the financial highlights for each of the five years in the period ended March 31, 2023, in conformity with accounting principles generally accepted in the United States of America.

Basis for Opinion

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, 2023 by correspondence with the custodian. We believe that our audits provide a reasonable basis for our opinion.

Emphasis of Matter

As discussed in Note 7 to the financial statements, on July 20, 2022, the Board of Trustees of the Trust unanimously voted to close and liquidate the Fund, contingent on receiving any necessary relief from the U.S. Securities and Exchange Commission (SEC). On December 23, 2022, the SEC granted exemptive relief to the Fund permitting the Fund to suspend the right of redemption with respect to shares of the Fund and, if necessary, postpone the date of payment of redemption proceeds with respect to redemption orders received but not yet paid until the Fund completes the liquidation of its portfolio and distributes all its assets to remaining shareholders. The Fund may be terminated at the discretion of the Fund’s Board based on the facts and circumstances as discussed in Note 7.

PricewaterhouseCoopers LLP

San Francisco, California

May 23, 2023

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



24	Annual Report	franklintempleton.com



franklintempleton.com	Annual Report	25

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	59	AssetMark Financial Holdings, Inc. (investment solutions) (2018-present) and PhonePe (2020-present) (payment and financial services); formerly, Axis Bank (financial) (2013- 2021), FlipKart Limited (2019-2020) (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	59	S&P Global, Inc. (financial information services) (February 2022), Borg Warner (automotive) (2018-present), LegalShield (consumer services) (2020-present); and formerly, IHS Markit (information services) (2015-2022), 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	59	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	70	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, of some of the other subsidiaries of Franklin Resources, Inc. and of certain funds in the Franklin Templeton/Legg Mason fund complex; 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 certain funds in the Franklin Templeton/Legg Mason fund complex.

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; Assistant Secretary, Franklin Distributors, LLC; and officer of certain funds in the Franklin Templeton/Legg Mason fund complex.

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 certain funds in the Franklin Templeton/Legg Mason fund complex; and formerly, Vice President, Global Tax (2012-April 2017) and Treasurer/Assistant Treasurer, Franklin Templeton (2009-2017).

Fred Jensen (1963) 620 Eighth Avenue, 47th Floor New York, NY 10018	Chief Compliance Officer	Since 2021	Not Applicable	Not Applicable

Principal Occupation During at Least the Past 5 Years:
Director - Global Compliance of Franklin Templeton; Managing Director of Legg Mason & Co.; Director of Compliance, Legg Mason Office of the Chief Compliance Officer; Chief Compliance Officer, Franklin Advisory Services, LLC; Compliance Officer, Franklin Advisers, Inc.; officer of certain funds in the Franklin Templeton/Legg Mason fund complex; formerly, Chief Compliance Officer of Legg Mason Global Asset Allocation; Chief Compliance Officer, Legg Mason Private Portfolio; Chief Compliance Officer to The Reserves Funds (investment adviser, funds and broker-dealer) and Ambac Financial Group (investment adviser, funds and broker-dealer).

Susan Kerr (1949) 620 Eighth Avenue New York, NY 10018	Vice President - AML Compliance	Since 2021	Not Applicable	Not Applicable

Principal Occupation During at Least the Past 5 Years:
Senior Compliance Analyst, Franklin Templeton; Chief Anti-Money Laundering Compliance Officer, Legg Mason & Co., or its affiliates; Anti Money Laundering Compliance Officer; Senior Compliance Officer, LMIS; and officer of certain funds in the Franklin Templeton/Legg Mason fund complex.

Todd Mathias (1983) One Franklin Parkway, San Mateo, Ca 94403-1906	Vice President	Since March 2022	Not Applicable	Not Applicable

Principal Occupation During at Least the Past 5 Years:
Head of US ETF Product Strategy, Franklin Templeton; and officer of certain funds in the Franklin Templeton/Legg Mason fund complex.



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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.; and officer of certain funds in the Franklin Templeton/Legg Mason fund complex.

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 certain funds in the Franklin Templeton/Legg Mason fund complex.

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:
Senior Associate General Counsel, Franklin Templeton; and officer of certain funds in the Franklin Templeton/Legg Mason fund complex.

Lori A. Weber (1964) 300 S.E. 2nd Street Fort Lauderdale, FL 33301-1923	Vice President and Secretary	Vice President since 2011 and Secretary since 2013	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 certain funds in the Franklin Templeton/Legg Mason fund complex.

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 Schedule of Investments

Premium/Discount Information

Information about the differences between the daily market price on the secondary market for the shares of the Fund and the Fund’s net asset value may be found on the Fund’s website at franklintempleton.com. The Fund suspended new creations of its shares effective March 1, 2022, NYSE Arca halted trading of the Fund effective March 4, 2022, and the Fund was delisted from NYSE Arca effective December 27, 2022. Therefore, from March 4, 2022, through March 31, 2023, the Fund did not have a daily closing market price and and a premium/discount to net asset value (NAV) could not be calculated. The Fund is no longer an exchange-traded fund.



franklintempleton.com	Annual Report	29

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

Item 2.

Code of Ethics.

(a) The Registrant has adopted a code of ethics that applies to its principal executive officers and principal financial and accounting officer.

(d) N/A

(f) Pursuant to Item 13(a)(1), the Registrant is attaching as an exhibit a copy of its code of ethics that applies to its principal executive officers and principal financial and accounting officer.

Item 3.

Audit Committee Financial Expert.

(a)(1) The Registrant has an audit committee financial expert serving on its audit committee.

(2) The audit committee financial experts are Rohit Bhagat and Deborah D. McWhinney. They are “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 $999,623 for the fiscal year ended March 31, 2023 and $903,487 for the fiscal year ended March 31, 2022.

(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.

The aggregate 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 were $6,000 for the fiscal year ended March 31, 2023 and $0 for the fiscal year ended March 31, 2022. The services for which these fees were paid included tax compliance services related to year-end.

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 $418,850 for the fiscal year ended March 31, 2023 and $100,125 for the fiscal year ended March 31, 2022. The services for which these fees were paid included global access to tax platform International Tax View and tax compliance services related to year-end.

(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, 2023 and $3,461 for the fiscal year ended March 31, 2022. 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 $59,560 for the fiscal year ended March 31, 2023 and $225,000 for the fiscal year ended March 31, 2022. The services for which these fees were paid included compliance examination for Investment Advisor Act rule 206(4)-2, professional services relating to the readiness assessment over Greenhouse Gas Emissions and Energy, professional fees in connection with determining the feasibility of a U.S. direct lending structure, fees in connection with a license for accounting and business knowledge platform Viewpoint, and fees in connection with license for employee development tool Pro Edge.

(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 $484,410 for the fiscal year ended March 31, 2023 and $328,586 for the fiscal year ended March 31, 2022

(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.

(i) N/A

(j) N/A

Item 5.

Audit Committee of Listed Registrants.

Not Applicable.

Item 6.

Investments.

Not applicable.

Item 7.

Disclosure of Proxy Voting Policies and Procedures for Closed-End Management Investment Companies.

Not applicable.

Item 8.

Portfolio Managers of Closed-End Management Investment Companies.

Not applicable.

Item 9.

Purchases of Equity Securities by Closed-End Management Investment Company and Affiliated Purchasers.

Not applicable.

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 Companies.

Not applicable.

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

(a)(2)(1) There were no written solicitations to purchase securities under Rule 23c-1 under the Act sent or given during the period covered by the report by or on behalf of the Registrant to 10 or more persons.

(a)(2)(2) There was no change in the Registrant’s independent public accountant during the period covered by the report.

(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: 05/30/2023

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: 05/30/2023

By		/s/ Vivek Pai
		Vivek Pai
		Chief Financial Officer and Chief Accounting Officer Date: 05/30/2023

Annual Report
Franklin Templeton ETF Trust

Investment Managers

Distributor

Investor Services

Franklin Advisers, Inc.
Franklin Templeton
Investment
Management Limited

Franklin Distributors, LLC
(800) DIAL BEN^®/342-5236
franklintempleton.com

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Trust Company
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Mail Stop OHD0100
North Quincy, MA 02171

© 2023 Franklin Templeton Investments. All rights reserved.

ETF2 A 05/23