SEMIANNUAL REPORT
FRANKLIN TEMPLETON
ETF TRUST
September 30, 2022
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 |
Not FDIC Insured | | | May Lose Value | | | No Bank Guarantee |
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SEMIANNUAL REPORT
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 -21.41% total return for the six months ended September 30, 2022.1 Supply-chain disruptions and volatile prices for energy and commodities contributed to higher inflation in many countries. This inflationary pressure led many of the world’s central banks to adopt less accommodative stances regarding monetary policy. New lockdowns imposed by China’s government to quell the spread of the Omicron variant of COVID-19 pressured Asian and global emerging market stocks. Geopolitical instability disrupted financial markets amid the ongoing war in Ukraine and international sanctions on Russia, adding to investor uncertainty about the trajectory of the global economy.
U.S. equities, as measured by the Standard & Poor’s® 500 Index, posted a -20.20% total return for the six months ended September 30, 2022.1 Elevated inflation was a major concern for both consumers and investors, as inflation accelerated in June 2022 to the highest rate since 1981. 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, although much of that increase abated by period-end. The unemployment rate declined marginally from 3.6% in March 2022 to 3.5% in September 2022 as notable employment gains occurred in the leisure and hospitality and health care sectors. Wage growth remained strong throughout the period, adding to some investors’ inflation concerns.
U.S. gross domestic product contracted in the second quarter of 2022, with the economy technically entering a recession, amid lower investments in inventories and fixed assets. An inventory drawdown, declining residential and business investment and lower levels of government spending contributed to the economic slowdown. Rising interest rates translated to higher borrowing costs for individuals and businesses, which dampened economic activity. Mortgage rates reached the highest level since 2007, and new home construction slowed toward period-end. In an effort to control inflation, the U.S. Federal Reserve (Fed) continued to raise the federal funds target rate. The Fed raised the federal funds rate at each of its four meetings during the period to end at a range of 3.00%–3.25%. The Fed noted in its September 2022 meeting that inflation remained elevated amid robust job growth and low unemployment. Furthermore,
the Fed said it would continue to reduce its bond holdings, and Fed Chair Jerome Powell indicated that reducing inflation was likely to require a period of below-trend growth.
Economies in the eurozone maintained a slow growth rate in the second quarter of 2022 as the easing of COVID-related restrictions and a strong start to the summer tourism season increased household spending. The war in Ukraine contributed to record high inflation across the eurozone as commodity and oil prices soared. The European Central Bank raised interest rates in July 2022 for the first time in more than a decade, increasing rates again at its subsequent meeting in September, to fight growing inflation. In this environment, European developed market equities, as measured by the MSCI Europe Index-NR, posted a -23.17% total return for the six months under review.1
Asian developed and emerging market equities, as measured by the MSCI All Country Asia Index-NR, posted a -21.45% total return for the six-month period.1 Japan’s economy expanded in the second quarter of 2022 as private consumption increased following the lifting of COVID-related restrictions and expansion of government spending. For the first time since 2020, China’s economy contracted in the second quarter, pressured by COVID-related restrictions and government measures to limit real estate speculation. Unexpected regulatory changes by China’s government, which negatively impacted technology-related businesses, and investor concerns about the solvency of several large property developers in China further pressured stocks in that country.
Global emerging market stocks, as measured by the MSCI Emerging Markets Index-NR, posted a -21.70% total return for the six months under review.1 Following Russia’s invasion of Ukraine, climbing food and energy prices kindled inflationary pressures, which, combined with a strong U.S. dollar, raised concerns over the possibility of government debt defaults in some countries. Rising U.S. interest rates led investors to sell off many holdings in emerging markets, including the major markets of India, South Korea and Taiwan.
The foregoing information reflects our analysis and opinions as of September 30, 2022. 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.
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Franklin Emerging Market Core Dividend Tilt Index ETF
Formerly, Franklin LibertyQ Emerging Markets ETF
This semiannual report for Franklin Emerging Market Core Dividend Tilt Index ETF covers the period ended September 30, 2022. 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 IndexSM (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* | ||||
9/30/22 | ||||
% of Total Net Assets |
||||
Asia |
72.6% | |||
Latin America & Caribbean |
11.9% | |||
Middle East & Africa |
10.2% | |||
North America |
2.8% | |||
Europe |
1.9% | |||
Other Net Assets |
0.6% |
*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 six-month period, the Fund posted cumulative total returns of -23.78% based on market price and -23.72% 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 IndexSM, which commenced calculation and publication on June 17, 2022. For the period from June 17, 2022, through September 30, 2022, the new Underlying Index posted a cumulative total return of -15.31%.2 For the six-month period under review, the Blended 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 -23.51% cumulative total return.2
The Parent Index posted a cumulative total return of -20.51% for the six-month period.2 The Blended 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 -20.79% cumulative total return for the same period.2 The MSCI EM Index-NR posted a -21.70% cumulative total return for the six-month period.3 The 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 5.
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.
1. The Morningstar® Emerging Markets Dividend Enhanced Select IndexSM 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 35.
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FRANKLIN EMERGING MARKET CORE DIVIDEND TILT INDEX ETF
Top 10 Sectors/Industries | ||||
9/30/22 | ||||
% of Total Net Assets |
||||
Banks |
17.5% | |||
Semiconductors & Semiconductor Equipment |
9.0% | |||
Oil, Gas & Consumable Fuels |
7.0% | |||
Metals & Mining |
5.9% | |||
Technology Hardware, Storage & Peripherals |
5.5% | |||
Internet & Catalog Retail |
4.9% | |||
Insurance |
4.4% | |||
Interactive Media & Services |
3.8% | |||
IT Services |
3.6% | |||
Chemicals |
3.3% |
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 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 | ||||
9/30/22 | ||||
Company Sector/Industry, Country |
% of Total Net Assets |
|||
Taiwan
Semiconductor Manufacturing Co. Ltd. Semiconductors & Semiconductor Equipment, Taiwan |
4.6% | |||
Samsung
Electronics Co. Ltd. Technology Hardware, Storage & Peripherals, South Korea |
3.1% | |||
Tencent
Holdings Ltd. Interactive Media & Services, China |
3.0% | |||
Alibaba Group
Holding Ltd., A Internet & Catalog Retail, China |
2.4% | |||
Infosys
Ltd. IT Services, India |
1.6% | |||
China
Construction Bank Corp., H Banks, China |
1.6% | |||
Meituan
Dianping, B, 144A Internet & Catalog Retail, China |
1.5% | |||
Vale
SA Metals & Mining, Brazil |
1.5% | |||
Petroleo
Brasileiro SA, 38.601%, pfd. Oil, Gas & Consumable Fuels, Brazil |
1.3% | |||
Industrial and
Commercial Bank of China Ltd., H Banks, China |
1.0% |
Top 10 Countries | ||||
9/30/22 | ||||
% of Total Net Assets |
||||
China |
29.9% | |||
Taiwan |
17.9% | |||
India |
11.5% | |||
South Korea |
9.5% | |||
Brazil |
6.5% | |||
South Africa |
5.1% | |||
Saudi Arabia |
2.9% | |||
Mexico |
2.7% | |||
Hong Kong |
2.4% | |||
Malaysia |
2.4% |
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 September 30, 2022, 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 September 30, 2022
Total return reflects reinvestment of the Fund’s dividends and capital gain distributions, if any, and any unrealized gains or losses. Total returns do not include brokerage commissions that may be payable on secondary market transactions. The performance table does not reflect any taxes that a shareholder would pay on Fund dividends, capital gain distributions, if any, or any realized gains on the sale of Fund shares.
Net asset value or “NAV” is the value of one share of a fund as calculated in accordance with the standard formula for valuing mutual fund shares. 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 9/30/221
Cumulative Total Return2 | Average Annual Total Return2 | |||||||||||||||
Based on NAV3 |
Based on market price4 |
Based on NAV3 |
Based on market price4 |
|||||||||||||
6-Month |
-23.72% | -23.78% | -23.72% | -23.78% | ||||||||||||
1-Year |
-27.49% | +27.80% | -27.49% | +27.80% | ||||||||||||
5-Year |
-16.06% | -16.98% | -5.67% | -4.20% | ||||||||||||
Since Inception (6/1/16) |
+2.55% | +1.25% | +0.40% | +0.20% |
Distribution Rate5 | 30-Day Standardized Yield6 | |||
12.34% |
6.83% |
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 6 for Performance Summary footnotes.
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FRANKLIN EMERGING MARKET CORE DIVIDEND TILT INDEX ETF
PERFORMANCE SUMMARY
Distributions (4/1/22–9/30/22)
Net Investment
Income
$0.988041 |
Total Annual Operating Expenses7
0.19% |
All investments involve risks, including possible loss of principal. Stock prices fluctuate, sometimes rapidly and dramatically, due to factors affecting individual companies, particular industries or sectors, or general market conditions. Special risks are associated with foreign investing, including currency fluctuations, economic instability and political developments; investments in emerging markets involve heightened risks related to the same factors. To the extent the Fund focuses on particular countries, regions, industries, sectors or types of investment from time to time, it may be subject to greater risks of adverse developments in such areas of focus than a fund that invests in a wider variety of countries, regions, industries, sectors or investments. Dividends may fluctuate and a company may reduce or eliminate its dividend at any time. The Fund might not always include dividend paying companies, in attempt to reduce tracking error. The Fund may experience tracking error and may not closely track the Underlying Index for various reasons. Performance of the Fund may vary significantly from the performance of an index as a result of transaction costs, expenses and other factors. There can be no assurance that the Underlying Index’s calculation methodology or sources of information will provide an accurate assessment of included issuers or that the included issuers will provide the Fund with the market exposure it seeks. Securities issued by mid capitalization companies may be more volatile in price than those of larger companies, involve substantial risks and should be considered speculative. 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.
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 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. 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.
2. Total return calculations represent the cumulative and average annual changes in value of an investment over the periods indicated. Return for less than one year, if any, has not been annualized.
3. Assumes reinvestment of distributions based on net asset value.
4. Assumes reinvestment of distributions based on market price.
5. Distribution rate is based on an annualization of the September dividend and the NAV per share on 9/30/22.
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. 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
As a Fund shareholder, you can incur two types of costs: (1) transaction costs, including brokerage commissions on purchases and sales of Fund shares; and (2) ongoing Fund costs, including management fees and other Fund expenses. All funds have ongoing costs, sometimes referred to as operating expenses. The table below shows ongoing costs of investing in the Fund and can help you understand these costs and compare them with those of other funds. The table assumes a $1,000 investment held for the six months indicated.
Actual Fund Expenses
The table below provides information about actual account values and actual expenses in the columns under the heading “Actual.” In these columns the Fund’s actual return, which includes the effect of Fund expenses, is used to calculate the “Ending Account Value.” You can estimate the expenses you paid during the period by following these steps (of course, your account value and expenses will differ from those in this illustration): Divide your account value by $1,000 (if your account had an $8,600 value, then $8,600 ÷ $1,000 = 8.6). Then multiply the result by the number in the row under the headings “Actual” and “Expenses Paid During Period” (if Actual Expenses Paid During Period were $7.50, then 8.6 × $7.50 = $64.50). In this illustration, the actual expenses paid this period are $64.50.
Hypothetical Example for Comparison with Other Funds
Under the heading “Hypothetical” in the table, information is provided about hypothetical account values and hypothetical expenses based on the Fund’s actual expense ratio and an assumed rate of return of 5% per year before expenses, which is not the Fund’s actual return. This information may not be used to estimate the actual ending account balance or expenses you paid for the period, but it can help you compare ongoing costs of investing in the Fund with those of other funds. To do so, compare this 5% hypothetical example with the 5% hypothetical examples that appear in the shareholder reports of other funds.
Please note that expenses shown in the table are meant to highlight ongoing costs and do not reflect any transactional costs. Therefore, information under the heading “Hypothetical” is useful in comparing ongoing costs only, and will not help you compare total costs of owning different funds. In addition, if transactional costs were included, your total costs would have been higher.
Actual (actual return after expenses) |
Hypothetical (5% annual return before expenses) |
|||||||||||||||||||||
Beginning Account Value 4/1/22 |
Ending Account Value 9/30/22 |
Expenses Paid During Period 4/1/22–9/30/221,2 |
Ending Account Value 9/30/22 |
Expenses Paid During Period 4/1/22–9/30/221,2 |
Net Annualized Expense Ratio2 |
|||||||||||||||||
$1,000.00 | $ | 762.80 | $ | 1.64 | $ | 1,023.21 | $ | 1.88 | 0.37 | % |
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 183/365 to reflect the one-half year period.
2. Effective August 1, 2022, the unified management fee was reduced from 0.45% to 0.19%. Had the new unified management fee been in effect for the full period, the expenses paid would have been $0.84 based upon the Fund’s actual performance and $0.96 based upon a hypothetical 5% return.
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Franklin International Core Dividend Tilt Index ETF
Formerly, Franklin LibertyQ International Equity Hedged ETF
This semiannual report for Franklin International Core Dividend Tilt Index ETF covers the period ended September 30, 2022. 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 IndexSM (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* | ||||
9/30/22 | ||||
% of Total Net Assets |
||||
Europe |
59.0% | |||
Asia |
28.7% | |||
Australia & New Zealand |
10.5% | |||
North America |
0.6% | |||
Middle East & Africa |
0.5% | |||
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 six-month period, the Fund posted cumulative total returns of -16.72% based on market price and -16.78% 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 IndexSM, which commenced calculation and publication on June 17, 2022. For the period from June 17, 2022, through September 30, 2022, the new Underlying Index posted a cumulative total return of -9.57%.2 For the six-month period under review, the Blended 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 -16.48% cumulative total return.2
The Parent Index posted a cumulative total return of -22.51% for the six-month period.2 The Blended Morningstar® Developed Markets ex-North America Target Market Exposure Index-NR, which measures the performance of the old primary benchmark, 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,
1. The Morningstar® Developed Markets ex-North America Dividend Enhanced Select Index 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 48.
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FRANKLIN INTERNATIONAL CORE DIVIDEND TILT INDEX ETF
posted a -15.70% cumulative total return for the same period.2 The MSCI EAFE 100% Hedged to USD Index-NR posted a -9.89% cumulative total return for the six-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 11.
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 | ||||
9/30/22 | ||||
% of Total Net Assets |
||||
Pharmaceuticals |
10.8% | |||
Banks |
10.5% | |||
Insurance |
6.6% | |||
Metals & Mining |
5.0% | |||
Automobiles |
4.2% | |||
Semiconductors & Semiconductor Equipment |
3.6% | |||
Oil, Gas & Consumable Fuels |
3.2% | |||
Electric Utilities |
3.2% | |||
Food Products |
2.8% | |||
Textiles, Apparel & Luxury Goods |
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 | ||||
9/30/22 | ||||
Company Sector/Industry, Country |
% of Total Net Assets |
|||
Nestle
SA Food Products, Switzerland |
2.4% | |||
Novartis
AG Pharmaceuticals, Switzerland |
1.9% | |||
BHP Group
Ltd. Metals & Mining, Australia |
1.6% | |||
ASML Holding
NV Semiconductors & Semiconductor Equipment, Netherlands |
1.6% | |||
Roche Holding
AG, Non-Voting Pharmaceuticals, Switzerland |
1.5% | |||
AstraZeneca
PLC Pharmaceuticals, United Kingdom |
1.4% | |||
Novo Nordisk
AS, B Pharmaceuticals, Denmark |
1.4% | |||
LVMH Moet
Hennessy Louis Vuitton SE Textiles, Apparel & Luxury Goods, France |
1.3% | |||
Toyota Motor
Corp. Automobiles, Japan |
1.2% | |||
British
American Tobacco PLC Tobacco, United Kingdom |
1.1% |
Top 10 Countries | ||||
9/30/22 | ||||
% of Total Net Assets |
||||
Japan |
24.1% | |||
United Kingdom |
12.7% | |||
Switzerland |
10.5% | |||
Australia |
10.2% | |||
France |
9.1% | |||
Germany |
7.9% | |||
Netherlands |
4.6% | |||
Hong Kong |
3.0% | |||
Italy |
2.8% | |||
Sweden |
2.5% |
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FRANKLIN INTERNATIONAL CORE DIVIDEND TILT INDEX ETF
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
The foregoing information reflects our analysis, opinions and portfolio holdings as of September 30, 2022, the end of the reporting period. These opinions may not be relied upon as investment advice or an offer for a particular security. The information is not a complete analysis of every aspect of any market, country, industry, security or the Fund. Statements of fact are from sources considered reliable, but the investment manager makes no representation or warranty as to their completeness or accuracy. Although historical performance is no guarantee of future results, these insights may help you understand our investment management philosophy.
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FRANKLIN INTERNATIONAL CORE DIVIDEND TILT INDEX ETF
Performance Summary as of September 30, 2022
Total return reflects reinvestment of the Fund’s dividends and capital gain distributions, if any, and any unrealized gains or losses. Total returns do not include brokerage commissions that may be payable on secondary market transactions. The performance table does not reflect any taxes that a shareholder would pay on Fund dividends, capital gain distributions, if any, or any realized gains on the sale of Fund shares.
Net asset value or “NAV” is the value of one share of a fund as calculated in accordance with the standard formula for valuing mutual fund shares. 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 9/30/221
Cumulative Total Return2 | Average Annual Total Return2 | |||||||||||||||
Based on NAV3 |
Based on market price4 |
Based on NAV3 |
Based on market price4 |
|||||||||||||
6-Month |
-16.78% | -16.72% | -16.78% | -16.72% | ||||||||||||
1-Year |
-12.50% | -12.24% | -12.50% | -12.24% | ||||||||||||
5-Year |
+16.37% | +15.78% | +3.08% | +2.97% | ||||||||||||
Since Inception (6/1/16) |
+32.04% | +31.47% | +4.49% | +4.42% |
Distribution Rate5 | 30-Day Standardized Yield6 | |||
10.18% |
4.48% |
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 page12 for Performance Summary footnotes.
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Semiannual Report |
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FRANKLIN INTERNATIONAL CORE DIVIDEND TILT INDEX ETF
PERFORMANCE SUMMARY
Distributions (4/1/22–9/30/22)
Net Investment Income |
Long-Term Capital Gain |
Total | ||||||
$1.139902 |
$0.466738 | $1.606640 |
Total Annual Operating Expenses7
0.09% |
All investments involve risks, including possible loss of principal. Stock prices fluctuate, sometimes rapidly and dramatically, due to factors affecting individual companies, particular industries or sectors, or general market conditions. Special risks are associated with foreign investing, including currency fluctuations, economic instability and political developments. To the extent the Fund focuses on particular countries, regions, industries, sectors or types of investment from time to time, it may be subject to greater risks of adverse developments in such areas of focus than a fund that invests in a wider variety of countries, regions, industries, sectors or investments. Dividends may fluctuate and a company may reduce or eliminate its dividend at any time. The Fund might not always include dividend paying companies, in attempt to reduce tracking error. The Fund may experience tracking error and may not closely track the Underlying Index various reasons. Performance of the Fund may vary significantly from the performance of an index as a result of transaction costs, expenses and other factors. There can be no assurance that the Underlying Index’s calculation methodology or sources of information will provide an accurate assessment of included issuers or that the included issuers will provide the Fund with the market exposure it seeks. Securities issued by mid capitalization companies may be more volatile in price than those of larger companies, involve substantial risks and should be considered speculative. 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.
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.
ETFs trade like stocks, fluctuate in market value and may trade at prices above or below their net asset value. Brokerage commissions and ETF expenses will reduce returns.
1. Effective December 1, 2017, the Fund adopted a unified fee structure whereby Management has agreed to reimburse the Fund’s acquired fund fees and expenses (if any) and pay all of the ordinary operating expenses of the Fund, excluding: (i) payments under the Fund’s Rule 12b-1 plan (if any); (ii) brokerage expenses (including any costs incidental to transactions in portfolio securities or instruments); (iii) taxes; (iv) interest (including borrowing costs and dividend expenses on securities sold short and overdraft charges); (v) litigation expenses (including litigation to which the Trust or a Fund may be a party and indemnification of the Trustees and officers with respect thereto); and (vi) other non-routine or extraordinary expenses.
2. Total return calculations represent the cumulative and average annual changes in value of an investment over the periods indicated. Return for less than one year, if any, has not been annualized.
3. Assumes reinvestment of distributions based on net asset value.
4. Assumes reinvestment of distributions based on market price.
5. Distribution rate is based on an annualization of the September dividend and the NAV per share on 9/30/22.
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. 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 INTERNATIONAL CORE DIVIDEND TILT INDEX ETF
Your Fund’s Expenses
As a Fund shareholder, you can incur two types of costs: (1) transaction costs, including brokerage commissions on purchases and sales of Fund shares; and (2) ongoing Fund costs, including management fees and other Fund expenses. All funds have ongoing costs, sometimes referred to as operating expenses. The table below shows ongoing costs of investing in the Fund and can help you understand these costs and compare them with those of other funds. The table assumes a $1,000 investment held for the six months indicated.
Actual Fund Expenses
The table below provides information about actual account values and actual expenses in the columns under the heading “Actual.” In these columns the Fund’s actual return, which includes the effect of Fund expenses, is used to calculate the “Ending Account Value.” You can estimate the expenses you paid during the period by following these steps (of course, your account value and expenses will differ from those in this illustration): Divide your account value by $1,000 (if your account had an $8,600 value, then $8,600 ÷ $1,000 = 8.6). Then multiply the result by the number in the row under the headings “Actual” and “Expenses Paid During Period” (if Actual Expenses Paid During Period were $7.50, then 8.6 × $7.50 = $64.50). In this illustration, the actual expenses paid this period are $64.50.
Hypothetical Example for Comparison with Other Funds
Under the heading “Hypothetical” in the table, information is provided about hypothetical account values and hypothetical expenses based on the Fund’s actual expense ratio and an assumed rate of return of 5% per year before expenses, which is not the Fund’s actual return. This information may not be used to estimate the actual ending account balance or expenses you paid for the period, but it can help you compare ongoing costs of investing in the Fund with those of other funds. To do so, compare this 5% hypothetical example with the 5% hypothetical examples that appear in the shareholder reports of other funds.
Please note that expenses shown in the table are meant to highlight ongoing costs and do not reflect any transactional costs. Therefore, information under the heading “Hypothetical” is useful in comparing ongoing costs only, and will not help you compare total costs of owning different funds. In addition, if transactional costs were included, your total costs would have been higher.
Actual (actual return after expenses) |
Hypothetical (5% annual return before expenses) |
|||||||||||||||||||||
Beginning Account Value 4/1/22 |
Ending Account Value 9/30/22 |
Expenses Paid During Period 4/1/22–9/30/221,2 |
Ending Account Value 9/30/22 |
Expenses Paid During Period 4/1/22–9/30/221,2 |
Net Annualized Expense Ratio2 |
|||||||||||||||||
$1,000.00 | $ | 832.20 | $ | 1.24 | $ | 1,023.72 | $ | 1.37 | 0.27 | % |
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 183/365 to reflect the one-half year period.
2. Effective August 1, 2022, the unified management fee was reduced from 0.40% to 0.09%. Had the new unified management fee been in effect for the full period, the expenses paid would have been $0.41 based upon the Fund’s actual performance and $0.46 based upon a hypothetical 5% return.
franklintempleton.com |
Semiannual Report |
13 |
Franklin U.S. Core Dividend Tilt Index ETF
Formerly, Franklin LibertyQ Global Dividend ETF
This semiannual report for Franklin U.S. Core Dividend Tilt Index ETF covers the period ended September 30, 2022. 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 IndexSM (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* | ||||
9/30/22 | ||||
% of Total Net Assets |
||||
North America |
97.8% | |||
Europe |
1.7% | |||
Latin America & Caribbean |
0.2% | |||
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 six-month period, the Fund posted cumulative total returns of -20.01% based on market price and -20.14% based on net asset value (NAV).2
On August 1, 2022, the Fund changed its underlying index from the LibertyQ Global Dividend Index to the Morningstar® US Dividend Enhanced Select IndexSM, which commenced calculation and publication on June 17, 2022. For the period from June 17, 2022, through September 30, 2022, the new Underlying Index posted a cumulative total return of -3.05%.2 For the six-month period under review, the Blended 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 -20.06% cumulative total return.2
The Parent Index posted a cumulative total return of -20.76% for the six-month period.2 The Blended 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 -21.38% cumulative total return for the same period.2 The MSCI ACWI ex REITs Index-NR posted a -21.34% cumulative total return for the six-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 16.
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.
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.
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 61.
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FRANKLIN U.S. CORE DIVIDEND TILT INDEX ETF
Top 10 Sectors/Industries | ||||
9/30/22 | ||||
% of Total Net Assets |
||||
Software |
8.8% | |||
Semiconductors & Semiconductor Equipment |
8.2% | |||
Technology Hardware, Storage & Peripherals |
7.6% | |||
Pharmaceuticals |
6.1% | |||
Banks |
5.4% | |||
Equity Real Estate Investment Trusts (REITs) |
5.3% | |||
Oil, Gas & Consumable Fuels |
5.0% | |||
Interactive Media & Services |
3.9% | |||
IT Services |
3.9% | |||
Internet & Direct Marketing Retail |
3.6% |
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 to provide additional opportunities to add value and better track the performance of the Fund’s Underlying Index.
Top 10 Holdings | ||||
9/30/22 | ||||
Company Sector/Industry |
% of Total Net Assets |
|||
Apple
Inc. Information Technology |
7.1% | |||
Microsoft
Corp. Information Technology |
5.9% | |||
Amazon.com
Inc. Consumer Discretionary |
3.2% | |||
Tesla
Inc. Consumer Discretionary |
2.1% | |||
Johnson & Johnson Health Care |
1.9% | |||
Exxon Mobil
Corp. Energy |
1.6% | |||
Alphabet Inc.,
A Communication Services |
1.4% | |||
Alphabet Inc.,
C Information Technology |
1.3% | |||
UnitedHealth
Group Inc. Health Care |
1.3% | |||
AbbVie
Inc. Health Care |
1.3% |
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 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
The foregoing information reflects our analysis, opinions and portfolio holdings as of September 30, 2022, 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.
franklintempleton.com |
Semiannual Report |
15 |
FRANKLIN U.S. CORE DIVIDEND TILT INDEX ETF
Performance Summary as of September 30, 2022
Total return reflects reinvestment of the Fund’s dividends and capital gain distributions, if any, and any unrealized gains or losses. Total returns do not include brokerage commissions that may be payable on secondary market transactions. The performance table does not reflect any taxes that a shareholder would pay on Fund dividends, capital gain distributions, if any, or any realized gains on the sale of Fund shares.
Net asset value or “NAV” is the value of one share of a fund as calculated in accordance with the standard formula for valuing mutual fund shares. 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 9/30/221
Cumulative Total Return2 | Average Annual Total Return2 | |||||||||||||||
Based on NAV3 |
Based on market price4 |
Based on NAV3 |
Based on market price4 |
|||||||||||||
6-Month |
-20.14% | -20.01% | -20.14% | -20.01% | ||||||||||||
1-Year |
-14.56% | -14.69% | -14.56% | -14.69% | ||||||||||||
5-Year |
+18.74% | +18.21% | +3.49% | +3.40% | ||||||||||||
Since Inception (6/1/16) |
+37.21% | +37.17% | +5.12% | +5.12% |
Distribution Rate5 | 30-Day Standardized Yield6 | |||
3.15% |
2.62% |
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 17 for Performance Summary footnotes.
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FRANKLIN U.S. CORE DIVIDEND TILT INDEX ETF
PERFORMANCE SUMMARY
Distributions (4/1/22–9/30/22)
Net Investment Income |
$0.524014 |
Total Annual Operating Expenses7
0.06% |
All investments involve risks, including possible loss of principal. Stock prices fluctuate, sometimes rapidly and dramatically, due to factors affecting individual companies, particular industries or sectors, or general market conditions. To the extent the Fund focuses on particular countries, regions, industries, sectors or types of investment from time to time, it may be subject to greater risks of adverse developments in such areas of focus than a fund that invests in a wider variety of industries, sectors or investments. Dividends may fluctuate and a company may reduce or eliminate its dividend at any time. The Fund might not always include dividend paying companies, in attempt to reduce tracking error. The Fund may experience tracking error and may not closely track the Underlying Index various reasons. Performance of the Fund may vary significantly from the performance of an index as a result of transaction costs, expenses and other factors. There can be no assurance that the Underlying Index’s calculation methodology or sources of information will provide an accurate assessment of included issuers or that the included issuers will provide the Fund with the market exposure it seeks. Securities issued by mid capitalization companies may be more volatile in price than those of larger companies, involve substantial risks and should be considered speculative. 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.
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 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. 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.
2. Total return calculations represent the cumulative and average annual changes in value of an investment over the periods indicated. Return for less than one year, if any, has not been annualized.
3. Assumes reinvestment of distributions based on net asset value.
4. Assumes reinvestment of distributions based on market price.
5. Distribution rate is based on an annualization of the September dividend and the NAV per share on 9/30/22.
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. 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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Semiannual Report |
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FRANKLIN U.S. CORE DIVIDEND TILT INDEX ETF
Your Fund’s Expenses
As a Fund shareholder, you can incur two types of costs: (1) transaction costs, including brokerage commissions on purchases and sales of Fund shares; and (2) ongoing Fund costs, including management fees and other Fund expenses. All funds have ongoing costs, sometimes referred to as operating expenses. The table below shows ongoing costs of investing in the Fund and can help you understand these costs and compare them with those of other funds. The table assumes a $1,000 investment held for the six months indicated.
Actual Fund Expenses
The table below provides information about actual account values and actual expenses in the columns under the heading “Actual.” In these columns the Fund’s actual return, which includes the effect of Fund expenses, is used to calculate the “Ending Account Value.” You can estimate the expenses you paid during the period by following these steps (of course, your account value and expenses will differ from those in this illustration): Divide your account value by $1,000 (if your account had an $8,600 value, then $8,600 ÷ $1,000 = 8.6). Then multiply the result by the number in the row under the headings “Actual” and “Expenses Paid During Period” (if Actual Expenses Paid During Period were $7.50, then 8.6 × $7.50 = $64.50). In this illustration, the actual expenses paid this period are $64.50.
Hypothetical Example for Comparison with Other Funds
Under the heading “Hypothetical” in the table, information is provided about hypothetical account values and hypothetical expenses based on the Fund’s actual expense ratio and an assumed rate of return of 5% per year before expenses, which is not the Fund’s actual return. This information may not be used to estimate the actual ending account balance or expenses you paid for the period, but it can help you compare ongoing costs of investing in the Fund with those of other funds. To do so, compare this 5% hypothetical example with the 5% hypothetical examples that appear in the shareholder reports of other funds.
Please note that expenses shown in the table are meant to highlight ongoing costs and do not reflect any transactional costs. Therefore, information under the heading “Hypothetical” is useful in comparing ongoing costs only, and will not help you compare total costs of owning different funds. In addition, if transactional costs were included, your total costs would have been higher.
Actual (actual return after expenses) |
Hypothetical (5% annual return before expenses) |
|||||||||||||||||||||
Beginning Account Value 4/1/22 |
Ending Account Value 9/30/22 |
Expenses Paid During Period 4/1/22–9/30/221,2 |
Ending Account Value 9/30/22 |
Expenses Paid During Period 4/1/22–9/30/221,2 |
Net Annualized Expense Ratio2 |
|||||||||||||||||
$1,000.00 | $ | 798.60 | $ | 1.35 | $ | 1,023.56 | $ | 1.52 | 0.30 | % |
1. Expenses are equal to the annualized expense ratio for the six-month period as indicated above—in the far right column—multiplied by the simple average account value over the period indicated, and then multiplied by 183/365 to reflect the one-half year period.
2. Effective August 1, 2022, the unified management fee was reduced from 0.45% to 0.06%. Had the new unified management fee been in effect for the full period, the expenses paid would have been $0.27 based upon the Fund’s actual performance and $0.30 based upon a hypothetical 5% return.
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Franklin U.S. Large Cap Multifactor Index ETF
Formerly, Franklin LibertyQ U.S. Equity ETF
This semiannual report for Franklin U.S. Large Cap Multifactor Index ETF covers the period ended September 30, 2022. 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 six-month period, the Fund posted cumulative total returns of -17.61% based on market price and -17.61% based on net asset value (NAV). In comparison, the LibertyQ U.S. Large Cap Equity Index posted a -17.56% cumulative total return for the same period, while the Russell 1000® Index posted a -20.51% cumulative total return.2
You can find more of the Fund’s performance data in the Performance Summary beginning on page 21.
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 | ||||
9/30/22 | ||||
% of Total Net Assets |
||||
Information Technology |
31.8% | |||
Health Care |
20.2% | |||
Consumer Discretionary |
11.6% | |||
Energy |
7.8% | |||
Industrials |
7.5% | |||
Consumer Staples |
5.9% | |||
Communication Services |
5.2% | |||
Financials |
4.3% | |||
Real Estate |
2.6% | |||
Materials |
1.8% |
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 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.
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 69.
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FRANKLIN U.S. LARGE CAP MULTIFACTOR INDEX ETF
Top 10 Holdings | ||||
9/30/22 | ||||
Company Sector/Industry |
% of Total Net Assets |
|||
Apple
Inc. Information Technology |
7.2% | |||
Microsoft
Corp. Information Technology |
5.3% | |||
Amazon.com
Inc. Consumer Discretionary |
2.0% | |||
Eli
Lilly & Co. Health Care |
1.9% | |||
Tesla
Inc. Consumer Discretionary |
1.9% | |||
Chevron
Corp. Energy |
1.8% | |||
AbbVie
Inc. Health Care |
1.7% | |||
Pfizer
Inc. Health Care |
1.7% | |||
Merck & Co. Inc. Health Care |
1.7% | |||
UnitedHealth
Group Inc. Health Care |
1.7% |
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
The foregoing information reflects our analysis, opinions and portfolio holdings as of September 30, 2022, the end of the reporting period. These opinions may not be relied upon as investment advice or an offer for a particular security. The information is not a complete analysis of every aspect of any market, country, industry, security or the Fund. Statements of fact are from sources considered reliable, but the investment manager makes no representation or warranty as to their completeness or accuracy. Although historical performance is no guarantee of future results, these insights may help you understand our investment management philosophy.
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FRANKLIN U.S. LARGE CAP MULTIFACTOR INDEX ETF
Performance Summary as of September 30, 2022
Total return reflects reinvestment of the Fund’s dividends and capital gain distributions, if any, and any unrealized gains or losses. Total returns do not include brokerage commissions that may be payable on secondary market transactions. The performance table does not reflect any taxes that a shareholder would pay on Fund dividends, capital gain distributions, if any, or any realized gains on the sale of Fund shares.
Net asset value or “NAV” is the value of one share of a fund as calculated in accordance with the standard formula for valuing mutual fund shares. 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.
Your dividend income will vary depending on dividends or interest paid by securities in the Fund’s portfolio, adjusted for operating expenses. Capital gain distributions are net profits realized from the sale of portfolio securities.
Performance as of 9/30/221
Cumulative Total Return2 | Average Annual Total Return2 | |||||||||||||||
Based on NAV3 |
Based on market price4 |
Based on NAV3 |
Based on market price4 |
|||||||||||||
6-Month |
-17.61% | -17.61% | -17.61% | -17.61% | ||||||||||||
1-Year |
-11.53% | -11.42% | -11.53% | -11.42% | ||||||||||||
5-Year |
+50.63% | +50.86% | +8.54% | +8.57% | ||||||||||||
Since Inception (4/26/17) |
+59.49% | +59.61% | +8.98% | +8.99% |
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 22 for Performance Summary footnotes.
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FRANKLIN U.S. LARGE CAP MULTIFACTOR INDEX ETF
PERFORMANCE SUMMARY
Distributions (4/1/22–9/30/22)
Net Investment Income |
$0.397917 |
Total Annual Operating Expenses5
0.15% |
All investments involve risks, including possible loss of principal. Stock prices fluctuate, sometimes rapidly and dramatically, due to factors affecting individual companies, particular industries or sectors, or general market conditions. To the extent the Fund concentrates in a specific industry or group of industries, the Fund will carry much greater risks of adverse developments and price movements in such industries than a fund that invests in a wider variety of industries; there is also the risk that the Fund will perform poorly during a slump in demand for securities of companies in such industries. There can be no assurance that the Fund’s multi-factor stock selection process will enhance performance. Exposure to such investment factors may detract from performance in some market environments, perhaps for extended periods. Performance of the Fund may vary significantly from the performance of an index, as a result of transactions costs, expenses and other factors. 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.
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.
ETFs trade like stocks, fluctuate in market value and may trade at prices above or below their net asset value. Brokerage commissions and ETF expenses will reduce returns.
1. Effective December 1, 2017, the Fund adopted a unified fee structure whereby Management has agreed to reimburse the Fund’s acquired fund fees and expenses (if any) and pay all of the ordinary operating expenses of the Fund, excluding: (i) payments under the Fund’s Rule 12b-1 plan (if any); (ii) brokerage expenses (including any costs incidental to transactions in portfolio securities or instruments); (iii) taxes; (iv) interest (including borrowing costs and dividend expenses on securities sold short and overdraft charges); (v) litigation expenses (including litigation to which the Trust or a Fund may be a party and indemnification of the Trustees and officers with respect thereto); and (vi) other non-routine or extraordinary expenses.
2. Total return calculations represent the cumulative and average annual changes in value of an investment over the periods indicated. Return for less than one year, if any, has not been annualized.
3. Assumes reinvestment of distributions based on net asset value.
4. Assumes reinvestment of distributions based on market price.
5. 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
As a Fund shareholder, you can incur two types of costs: (1) transaction costs, including brokerage commissions on purchases and sales of Fund shares; and (2) ongoing Fund costs, including management fees and other Fund expenses. All funds have ongoing costs, sometimes referred to as operating expenses. The table below shows ongoing costs of investing in the Fund and can help you understand these costs and compare them with those of other funds. The table assumes a $1,000 investment held for the six months indicated.
Actual Fund Expenses
The table below provides information about actual account values and actual expenses in the columns under the heading “Actual.” In these columns the Fund’s actual return, which includes the effect of Fund expenses, is used to calculate the “Ending Account Value.” You can estimate the expenses you paid during the period by following these steps (of course, your account value and expenses will differ from those in this illustration): Divide your account value by $1,000 (if your account had an $8,600 value, then $8,600 ÷ $1,000 = 8.6). Then multiply the result by the number in the row under the headings “Actual” and “Expenses Paid During Period” (if Actual Expenses Paid During Period were $7.50, then 8.6 × $7.50 = $64.50). In this illustration, the actual expenses paid this period are $64.50.
Hypothetical Example for Comparison with Other Funds
Under the heading “Hypothetical” in the table, information is provided about hypothetical account values and hypothetical expenses based on the Fund’s actual expense ratio and an assumed rate of return of 5% per year before expenses, which is not the Fund’s actual return. This information may not be used to estimate the actual ending account balance or expenses you paid for the period, but it can help you compare ongoing costs of investing in the Fund with those of other funds. To do so, compare this 5% hypothetical example with the 5% hypothetical examples that appear in the shareholder reports of other funds.
Please note that expenses shown in the table are meant to highlight ongoing costs and do not reflect any transactional costs. Therefore, information under the heading “Hypothetical” is useful in comparing ongoing costs only, and will not help you compare total costs of owning different funds. In addition, if transactional costs were included, your total costs would have been higher.
Actual (actual return after expenses) |
Hypothetical (5% annual return before expenses) |
|||||||||||||||||||||
Beginning Account Value 4/1/22 |
Ending Account Value 9/30/22 |
Expenses Paid During Period 4/1/22–9/30/221 |
Ending Account Value 9/30/22 |
Expenses Paid During Period 4/1/22–9/30/221 |
Net Annualized Expense Ratio |
|||||||||||||||||
$1,000.00 | $ | 823.90 | $ | 0.69 | $ | 1,024.32 | $ | 0.76 | 0.15 | % |
1. Expenses are equal to the annualized expense ratio for the six-month period as indicated above—in the far right column—multiplied by the simple average account value over the period indicated, and then multiplied by 183/365 to reflect the one-half year period.
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Franklin U.S. Mid Cap Multifactor Index ETF
Formerly, Franklin LibertyQ U.S. Mid Cap Equity ETF
This semiannual report for Franklin U.S. Mid Cap Multifactor Index ETF covers the period ended September 30, 2022. 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 six-month period, the Fund posted cumulative total returns of -16.18% based on market price and -16.04% based on net asset value (NAV). In comparison, the LibertyQ U.S. Mid Cap Equity Index posted a -15.95% cumulative total return for the same period, while the Russell Midcap® Index posted a -19.71% 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 26.
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 | ||||
9/30/22 | ||||
% of Total Net Assets |
||||
Information Technology |
20.0% | |||
Industrials |
17.7% | |||
Consumer Discretionary |
16.3% | |||
Health Care |
9.5% | |||
Financials |
9.3% | |||
Consumer Staples |
8.1% | |||
Materials |
6.3% | |||
Utilities |
5.6% | |||
Real Estate |
3.9% | |||
Communication Services |
2.5% |
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 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.
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.
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 75.
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FRANKLIN U.S. MID CAP MULTIFACTOR INDEX ETF
Top 10 Holdings | ||||
9/30/22 | ||||
Company Sector/Industry |
% of Total Net Assets |
|||
Arista Networks
Inc. Information Technology |
1.3% | |||
O’Reilly
Automotive Inc. Consumer Discretionary |
1.3% | |||
ResMed
Inc. Health Care |
1.2% | |||
Cadence Design
Systems Inc. Information Technology |
1.2% | |||
Trane
Technologies PLC Industrials |
1.2% | |||
AutoZone
Inc. Consumer Discretionary |
1.2% | |||
The Hershey
Co. Consumer Staples |
1.2% | |||
Motorola
Solutions Inc. Information Technology |
1.2% | |||
W.W. Grainger
Inc. Industrials |
1.2% | |||
Tractor Supply
Co. Consumer Discretionary |
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
The foregoing information reflects our analysis, opinions and portfolio holdings as of September 30, 2022, the end of the reporting period. These opinions may not be relied upon as investment advice or an offer for a particular security. The information is not a complete analysis of every aspect of any market, country, industry, security or the Fund. Statements of fact are from sources considered reliable, but the investment manager makes no representation or warranty as to their completeness or accuracy. Although historical performance is no guarantee of future results, these insights may help you understand our investment management philosophy.
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FRANKLIN U.S. MID CAP MULTIFACTOR INDEX ETF
Performance Summary as of September 30, 2022
Total return reflects reinvestment of the Fund’s dividends and capital gain distributions, if any, and any unrealized gains or losses. Total returns do not include brokerage commissions that may be payable on secondary market transactions. The performance table does not reflect any taxes that a shareholder would pay on Fund dividends, capital gain distributions, if any, or any realized gains on the sale of Fund shares.
Net asset value or “NAV” is the value of one share of a fund as calculated in accordance with the standard formula for valuing mutual fund shares. 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.
Your dividend income will vary depending on dividends or interest paid by securities in the Fund’s portfolio, adjusted for operating expenses. Capital gain distributions are net profits realized from the sale of portfolio securities.
Performance as of 9/30/221
Cumulative Total Return2 | Average Annual Total Return2 | |||||||||||||||
Based on NAV3 |
Based on market price4 |
Based on NAV3 |
Based on market price4 |
|||||||||||||
6-Month |
-16.04% | -16.18% | -16.04% | -16.18% | ||||||||||||
1-Year |
-13.32% | -13.42% | -13.32% | -13.42% | ||||||||||||
5-Year |
+54.90% | +54.79% | +9.15% | +9.13% | ||||||||||||
Since Inception (4/26/17) |
+57.79% | +57.79% | +8.75% | +8.76% |
Performance data represent past performance, which does not guarantee future results. Investment return and principal value will fluctuate, and you may have a gain or loss when you sell your shares. Current performance may differ from figures shown. For most recent month-end performance, go to franklintempleton.com or call (800) 342-5236.
See page 27 for Performance Summary footnotes.
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FRANKLIN U.S. MID CAP MULTIFACTOR INDEX ETF
PERFORMANCE SUMMARY
Distributions (4/1/22–9/30/22)
Net Investment Income |
$0.279102 |
Total Annual Operating Expenses5
0.30% |
All investments involve risks, including possible loss of principal. Stock prices fluctuate, sometimes rapidly and dramatically, due to factors affecting individual companies, particular industries or sectors, or general market conditions. Historically, mid-size company securities have been more volatile in price than larger company securities, especially over the short term. Mid-size companies may be more susceptible to particular economic events or competitive factors than are larger, more broadly diversified companies. There can be no assurance that the Fund’s multi-factor stock selection process will enhance performance. Exposure to such investment factors may detract from performance in some market environments, perhaps for extended periods. Performance of the Fund may vary significantly from the performance of an index, as a result of transactions costs, expenses and other factors. 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.
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.
ETFs trade like stocks, fluctuate in market value and may trade at prices above or below their net asset value. Brokerage commissions and ETF expenses will reduce returns.
1. Effective December 1, 2017, the Fund adopted a unified fee structure whereby Management has agreed to reimburse the Fund’s acquired fund fees and expenses (if any) and pay all of the ordinary operating expenses of the Fund, excluding: (i) payments under the Fund’s Rule 12b-1 plan (if any); (ii) brokerage expenses (including any costs incidental to transactions in portfolio securities or instruments); (iii) taxes; (iv) interest (including borrowing costs and dividend expenses on securities sold short and overdraft charges); (v) litigation expenses (including litigation to which the Trust or a Fund may be a party and indemnification of the Trustees and officers with respect thereto); and (vi) other non-routine or extraordinary expenses.
2. Total return calculations represent the cumulative and average annual changes in value of an investment over the periods indicated. Return for less than one year, if any, has not been annualized.
3. Assumes reinvestment of distributions based on net asset value.
4. Assumes reinvestment of distributions based on market price.
5. 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
As a Fund shareholder, you can incur two types of costs: (1) transaction costs, including brokerage commissions on purchases and sales of Fund shares; and (2) ongoing Fund costs, including management fees and other Fund expenses. All funds have ongoing costs, sometimes referred to as operating expenses. The table below shows ongoing costs of investing in the Fund and can help you understand these costs and compare them with those of other funds. The table assumes a $1,000 investment held for the six months indicated.
Actual Fund Expenses
The table below provides information about actual account values and actual expenses in the columns under the heading “Actual.” In these columns the Fund’s actual return, which includes the effect of Fund expenses, is used to calculate the “Ending Account Value.” You can estimate the expenses you paid during the period by following these steps (of course, your account value and expenses will differ from those in this illustration): Divide your account value by $1,000 (if your account had an $8,600 value, then $8,600 ÷ $1,000 = 8.6). Then multiply the result by the number in the row under the headings “Actual” and “Expenses Paid During Period” (if Actual Expenses Paid During Period were $7.50, then 8.6 × $7.50 = $64.50). In this illustration, the actual expenses paid this period are $64.50.
Hypothetical Example for Comparison with Other Funds
Under the heading “Hypothetical” in the table, information is provided about hypothetical account values and hypothetical expenses based on the Fund’s actual expense ratio and an assumed rate of return of 5% per year before expenses, which is not the Fund’s actual return. This information may not be used to estimate the actual ending account balance or expenses you paid for the period, but it can help you compare ongoing costs of investing in the Fund with those of other funds. To do so, compare this 5% hypothetical example with the 5% hypothetical examples that appear in the shareholder reports of other funds.
Please note that expenses shown in the table are meant to highlight ongoing costs and do not reflect any transactional costs. Therefore, information under the heading “Hypothetical” is useful in comparing ongoing costs only, and will not help you compare total costs of owning different funds. In addition, if transactional costs were included, your total costs would have been higher.
Actual (actual return after expenses) |
Hypothetical (5% annual return before expenses) |
|||||||||||||||||||||
Beginning Account Value 4/1/22 |
Ending Account Value 9/30/22 |
Expenses Paid During Period 4/1/22–9/30/221 |
Ending Account Value 9/30/22 |
Expenses Paid During Period 4/1/22–9/30/221 |
Net Annualized Expense Ratio |
|||||||||||||||||
$1,000.00 | $ | 839.60 | $ | 1.38 | $ | 1,023.56 | $ | 1.52 | 0.30 | % |
1. Expenses are equal to the annualized expense ratio for the six-month period as indicated above—in the far right column—multiplied by the simple average account value over the period indicated, and then multiplied by 183/365 to reflect the one-half year period.
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Franklin U.S. Small Cap Multifactor Index ETF
Formerly, Franklin LibertyQ U.S. Small Cap Equity ETF
This semiannual report for Franklin U.S. Small Cap Multifactor Index ETF covers the period ended September 30, 2022. 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 six-month period, the Fund posted cumulative total returns of -16.83% based on market price and -16.74% based on net asset value (NAV). In comparison, the LibertyQ U.S. Small Cap Equity Index posted a -16.66% cumulative total return for the same period, while the Russell 2000® Index posted a -19.01% cumulative total return.2
You can find more of the Fund’s performance data in the Performance Summary beginning on page 31.
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 | ||||
9/30/22 | ||||
% of Total Net Assets |
||||
Industrials |
21.4% | |||
Consumer Discretionary |
18.9% | |||
Information Technology |
11.8% | |||
Financials |
10.9% | |||
Health Care |
9.5% | |||
Utilities |
7.9% | |||
Consumer Staples |
6.4% | |||
Real Estate |
4.5% | |||
Materials |
3.6% | |||
Communication Services |
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’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.
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.
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 81.
franklintempleton.com |
Semiannual Report |
29 |
FRANKLIN U.S. SMALL CAP MULTIFACTOR INDEX ETF
Top 10 Holdings | ||||
9/30/22 | ||||
Company Sector/Industry |
% of Total Net Assets |
|||
Texas Roadhouse
Inc. Consumer Discretionary |
1.3% | |||
Murphy USA
Inc. Consumer Discretionary |
1.2% | |||
Qualys
Inc. Information Technology |
1.1% | |||
AMN Healthcare
Services Inc. Health Care |
1.0% | |||
Saia
Inc. Industrials |
0.9% | |||
Southwest Gas
Holdings Inc. Utilities |
0.9% | |||
Kinsale Capital
Group Inc. Financials |
0.9% | |||
Exponent
Inc. Industrials |
0.9% | |||
SPS Commerce
Inc. Information Technology |
0.8% | |||
LHC Group
Inc. Health Care |
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
The foregoing information reflects our analysis, opinions and portfolio holdings as of September 30, 2022, 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.
30 |
Semiannual Report |
franklintempleton.com |
FRANKLIN U.S. SMALL CAP MULTIFACTOR INDEX ETF
Performance Summary as of September 30, 2022
Total return reflects reinvestment of the Fund’s dividends and capital gain distributions, if any, and any unrealized gains or losses. Total returns do not include brokerage commissions that may be payable on secondary market transactions. The performance table does not reflect any taxes that a shareholder would pay on Fund dividends, capital gain distributions, if any, or any realized gains on the sale of Fund shares.
Net asset value or “NAV” is the value of one share of a fund as calculated in accordance with the standard formula for valuing mutual fund shares. 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.
Your dividend income will vary depending on dividends or interest paid by securities in the Fund’s portfolio, adjusted for operating expenses. Capital gain distributions are net profits realized from the sale of portfolio securities.
Performance as of 9/30/221
Cumulative Total Return2 | Average Annual Total Return2 | |||||||||||||||
Based on NAV3 |
Based on market price4 |
Based on NAV3 |
Based on market price4 |
|||||||||||||
6-Month |
-16.74% | -16.83% | -16.74% | -16.83% | ||||||||||||
1-Year |
-19.61% | -19.71% | -19.61% | -19.71% | ||||||||||||
5-Year |
+24.09% | +28.23% | +4.41% | +5.10% | ||||||||||||
Since Inception (4/26/17) |
+26.36% | +26.41% | +4.40% | +4.41% |
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 32 for Performance Summary footnotes.
franklintempleton.com |
Semiannual Report |
31 |
FRANKLIN U.S. SMALL CAP MULTIFACTOR INDEX ETF
PERFORMANCE SUMMARY
Distributions (4/1/22–9/30/22)
Net Investment Income |
$0.204570 |
Total Annual Operating Expenses5
0.35% |
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. Smaller, mid-sized and relatively new or unseasoned companies can be particularly sensitive to changing economic conditions, and their prospects for growth are less certain than those of larger, more established companies. Historically, these securities have experienced more price volatility than larger company stocks, especially over the short term. Smaller companies may be more susceptible to particular events or economic conditions, less certain growth prospects, lack of depth of management and funds for growth and development and limited or less developed product lines and markets. There can be no assurance that the Fund’s multi-factor stock selection process will enhance performance. Exposure to such investment factors may detract from performance in some market environments, perhaps for extended periods. Performance of the Fund may vary significantly from the performance of an index, as a result of transactions costs, expenses and other factors. 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.
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.
ETFs trade like stocks, fluctuate in market value and may trade at prices above or below their net asset value. Brokerage commissions and ETF expenses will reduce returns.
1. Effective December 1, 2017, the Fund adopted a unified fee structure whereby Management has agreed to reimburse the Fund’s acquired fund fees and expenses (if any) and pay all of the ordinary operating expenses of the Fund, excluding: (i) payments under the Fund’s Rule 12b-1 plan (if any); (ii) brokerage expenses (including any costs incidental to transactions in portfolio securities or instruments); (iii) taxes; (iv) interest (including borrowing costs and dividend expenses on securities sold short and overdraft charges); (v) litigation expenses (including litigation to which the Trust or a Fund may be a party and indemnification of the Trustees and officers with respect thereto); and (vi) other non-routine or extraordinary expenses.
2. Total return calculations represent the cumulative and average annual changes in value of an investment over the periods indicated. Return for less than one year, if any, has not been annualized.
3. Assumes reinvestment of distributions based on net asset value.
4. Assumes reinvestment of distributions based on market price.
5. 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.
32 |
Semiannual Report |
franklintempleton.com |
FRANKLIN U.S. SMALL CAP MULTIFACTOR INDEX ETF
Your Fund’s Expenses
As a Fund shareholder, you can incur two types of costs: (1) transaction costs, including brokerage commissions on purchases and sales of Fund shares; and (2) ongoing Fund costs, including management fees and other Fund expenses. All funds have ongoing costs, sometimes referred to as operating expenses. The table below shows ongoing costs of investing in the Fund and can help you understand these costs and compare them with those of other funds. The table assumes a $1,000 investment held for the six months indicated.
Actual Fund Expenses
The table below provides information about actual account values and actual expenses in the columns under the heading “Actual.” In these columns the Fund’s actual return, which includes the effect of Fund expenses, is used to calculate the “Ending Account Value.” You can estimate the expenses you paid during the period by following these steps (of course, your account value and expenses will differ from those in this illustration): Divide your account value by $1,000 (if your account had an $8,600 value, then $8,600 ÷ $1,000 = 8.6). Then multiply the result by the number in the row under the headings “Actual” and “Expenses Paid During Period” (if Actual Expenses Paid During Period were $7.50, then 8.6 × $7.50 = $64.50). In this illustration, the actual expenses paid this period are $64.50.
Hypothetical Example for Comparison with Other Funds
Under the heading “Hypothetical” in the table, information is provided about hypothetical account values and hypothetical expenses based on the Fund’s actual expense ratio and an assumed rate of return of 5% per year before expenses, which is not the Fund’s actual return. This information may not be used to estimate the actual ending account balance or expenses you paid for the period, but it can help you compare ongoing costs of investing in the Fund with those of other funds. To do so, compare this 5% hypothetical example with the 5% hypothetical examples that appear in the shareholder reports of other funds.
Please note that expenses shown in the table are meant to highlight ongoing costs and do not reflect any transactional costs. Therefore, information under the heading “Hypothetical” is useful in comparing ongoing costs only, and will not help you compare total costs of owning different funds. In addition, if transactional costs were included, your total costs would have been higher.
Actual (actual return after expenses) |
Hypothetical (5% annual return before expenses) |
|||||||||||||||||||||
Beginning Account Value 4/1/22 |
Ending Account Value 9/30/22 |
Expenses Paid During Period 4/1/22–9/30/221 |
Ending Account Value 9/30/22 |
Expenses Paid During Period 4/1/22–9/30/221 |
Net Annualized Expense Ratio |
|||||||||||||||||
$1,000.00 | $ | 832.60 | $ | 1.61 | $ | 1,023.31 | $ | 1.78 | 0.35 | % |
1. Expenses are equal to the annualized expense ratio for the six-month period as indicated above—in the far right column—multiplied by the simple average account value over the period indicated, and then multiplied by 183/365 to reflect the one-half year period.
franklintempleton.com |
Semiannual Report |
33 |
FRANKLIN TEMPLETON ETF TRUST
Franklin Emerging Market Core Dividend Tilt Index ETFa
Six Months Ended (unaudited) |
Year Ended March 31, | |||||||||||||||||||||||
2022 | 2021 | 2020 | 2019 | 2018 | ||||||||||||||||||||
Per share operating performance (for a share outstanding throughout the period) |
||||||||||||||||||||||||
Net asset value, beginning of period |
$ | 28.33 | $ | 30.78 | $ | 22.20 | $ | 29.70 | $ | 33.41 | $ | 29.29 | ||||||||||||
|
|
|||||||||||||||||||||||
Income from investment operationsb: | ||||||||||||||||||||||||
Net investment incomec |
1.02 | 1.32 | 0.84 | 1.24 | 1.14 | 0.83 | ||||||||||||||||||
Net realized and unrealized gains (losses) |
(7.65 | ) | (2.55 | ) | 8.55 | (6.96 | ) | (3.76 | ) | 4.15 | ||||||||||||||
|
|
|||||||||||||||||||||||
Total from investment operations |
(6.63 | ) | (1.23 | ) | 9.39 | (5.72 | ) | (2.62 | ) | 4.98 | ||||||||||||||
|
|
|||||||||||||||||||||||
Less distributions from net investment income | (0.99 | ) | (1.22 | ) | (0.81 | ) | (1.78 | ) | (1.09 | ) | (0.86 | ) | ||||||||||||
|
|
|||||||||||||||||||||||
Net asset value, end of period |
$ | 20.71 | $ | 28.33 | $ | 30.78 | $ | 22.20 | $ | 29.70 | $ | 33.41 | ||||||||||||
|
|
|||||||||||||||||||||||
Total returnd |
(23.72)% | (4.21)% | 42.57% | (20.55)% | (7.70)% | 17.20% | ||||||||||||||||||
Ratios to average net assetse | ||||||||||||||||||||||||
Expenses before waiver and payments by affiliates |
0.37% | 0.45% | 0.45% | 0.49% | 0.55% | 0.69% | f | |||||||||||||||||
Expenses net of waiver and payments by affiliates |
0.37% | 0.45% | 0.45% | 0.49% | 0.55% | 0.54% | f | |||||||||||||||||
Net investment income |
8.17% | 4.28% | 3.15% | 4.26% | 3.75% | 2.61% | ||||||||||||||||||
Supplemental data | ||||||||||||||||||||||||
Net assets, end of period (000’s) |
$12,427 | $17,000 | $24,627 | $57,711 | $344,484 | $400,908 | ||||||||||||||||||
Portfolio turnover rateg |
82.74% | h | 34.27% | h | 40.22% | h | 44.11% | h | 52.42% | 32.87% |
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.
fEffective December 1, 2017, the Fund replaced the prior fee structure with a unified management fee. See Note 3(a).
gPortfolio turnover rate includes portfolio transactions that are executed as a result of the Fund offering and redeeming Creation Units solely for cash (“Cash creations”).
hPortfolio turnover rate excluding cash creations was as follows: | 82.74% | 34.27% | 36.91% | 41.78% |
34 |
Semiannual Report | The accompanying notes are an integral part of these financial statements. |
franklintempleton.com |
FRANKLIN TEMPLETON ETF TRUST
Schedule of Investments, September 30, 2022 (unaudited)
Franklin Emerging Market Core Dividend Tilt Index ETF
Industry | Shares | Value | ||||||||||||
Common Stocks 97.4% | ||||||||||||||
Brazil 5.2% | ||||||||||||||
Alupar Investimento SA, UNIT |
Electric Utilities | 600 | $ | 3,017 | ||||||||||
Ambev SA |
Beverages | 27,000 | 77,573 | |||||||||||
Americanas SA |
Internet & Catalog Retail | 4,200 | 13,185 | |||||||||||
B3 SA – Brasil Bolsa Balcao |
Capital Markets | 31,800 | 76,724 | |||||||||||
Banco Bradesco SA |
Banks | 600 | 1,809 | |||||||||||
Banco do Brasil SA |
Banks | 5,400 | 38,457 | |||||||||||
BB Seguridade Participacoes SA |
Insurance | 4,200 | 20,632 | |||||||||||
Caixa Seguridade Participacoes S/A |
Insurance | 4,200 | 6,608 | |||||||||||
Cia Energetica de Minas Gerais |
Electric Utilities | 1,800 | 5,391 | |||||||||||
CPFL Energia SA |
Electric Utilities | 1,200 | 7,490 | |||||||||||
Energisa SA |
Electric Utilities | 1,800 | 13,941 | |||||||||||
Engie Brasil Energia SA |
Independent Power Producers & Energy Traders | 1,200 | 8,544 | |||||||||||
Hypera SA |
Pharmaceuticals | 2,400 | 19,635 | |||||||||||
Itausa SA |
Banks | 600 | 1,095 | |||||||||||
Klabin SA |
Containers & Packaging | 5,400 | 18,120 | |||||||||||
Neoenergia SA |
Electric Utilities | 1,200 | 3,394 | |||||||||||
Petroleo Brasileiro SA |
Oil, Gas & Consumable Fuels | 13,200 | 80,730 | |||||||||||
Porto Seguro SA |
Insurance | 1,200 | 4,688 | |||||||||||
a |
Rede D’Or Sao Luiz SA, 144A |
Health Care Providers & Services | 4,800 | 26,375 | ||||||||||
Telefonica Brasil SA |
Diversified Telecommunication Services | 3,000 | 22,458 | |||||||||||
TIM SA |
Wireless Telecommunication Services | 4,800 | 10,720 | |||||||||||
Transmissora Alianca de Energia Eletrica SA |
Electric Utilities | 1,200 | 8,641 | |||||||||||
Vale SA |
Metals & Mining | 13,720 | 182,735 | |||||||||||
|
|
|||||||||||||
651,962 | ||||||||||||||
|
|
|||||||||||||
Chile 0.7% | ||||||||||||||
Banco de Chile |
Banks | 269,028 | 23,919 | |||||||||||
Banco Santander Chile |
Banks | 383,760 | 13,549 | |||||||||||
Cencosud SA |
Food & Staples Retailing | 8,148 | 10,420 | |||||||||||
Cencosud Shopping SA |
Real Estate Management & Development | 3,174 | 3,346 | |||||||||||
Cia Cervecerias Unidas SA |
Beverages | 822 | 4,514 | |||||||||||
Cia Sud Americana de Vapores SA |
Marine | 102,078 | 7,108 | |||||||||||
Empresas CMPC SA |
Paper & Forest Products | 7,242 | 11,137 | |||||||||||
Empresas Copec SA |
Oil, Gas & Consumable Fuels | 2,190 | 14,177 | |||||||||||
Quinenco SA |
Industrial Conglomerates | 1,644 | 3,604 | |||||||||||
|
|
|||||||||||||
91,774 | ||||||||||||||
|
|
|||||||||||||
China 29.9% | ||||||||||||||
Agricultural Bank of China Ltd., A |
Banks | 84,000 | 33,698 | |||||||||||
Agricultural Bank of China Ltd., H |
Banks | 204,000 | 61,071 | |||||||||||
b |
Alibaba Group Holding Ltd., A |
Internet & Catalog Retail | 29,400 | 291,944 | ||||||||||
Anhui Conch Cement Co. Ltd., A |
Construction Materials | 2,400 | 9,699 | |||||||||||
Anhui Conch Cement Co. Ltd., H |
Construction Materials | 8,000 | 25,376 | |||||||||||
Anta Sports Products Ltd., A |
Textiles, Apparel & Luxury Goods | 2,200 | 23,317 | |||||||||||
b |
Baidu Inc. |
Interactive Media & Services | 3,300 | 47,966 | ||||||||||
Bank of Beijing Co. Ltd., A |
Banks | 10,800 | 6,226 | |||||||||||
Bank of Changsha Co. Ltd., A |
Banks | 2,400 | 2,229 | |||||||||||
Bank of Chengdu Co. Ltd., A |
Banks | 1,800 | 4,131 | |||||||||||
Bank of China Ltd., A |
Banks | 28,200 | 12,223 | |||||||||||
Bank of China Ltd., H |
Banks | 342,000 | 111,968 | |||||||||||
Bank of Communications Co. Ltd., A |
Banks | 20,400 | 13,220 | |||||||||||
Bank of Communications Co. Ltd., H |
Banks | 138,000 | 72,781 | |||||||||||
Bank of Jiangsu Co. Ltd., A |
Banks | 7,200 | 7,514 | |||||||||||
Bank of Nanjing Co. Ltd., A |
Banks | 4,800 | 7,083 | |||||||||||
Bank of Shanghai Co. Ltd., A |
Banks | 8,400 | 6,893 | |||||||||||
Baoshan Iron & Steel Co. Ltd., A |
Metals & Mining | 11,400 | 8,411 | |||||||||||
b |
BeiGene Ltd. |
Biotechnology | 1,200 | 12,390 | ||||||||||
Beijing Enterprises Holdings Ltd., H |
Industrial Conglomerates | 3,000 | 8,427 |
franklintempleton.com |
Semiannual Report |
35 |
FRANKLIN TEMPLETON ETF TRUST
SCHEDULE OF INVESTMENTS (UNAUDITED)
Franklin Emerging Market Core Dividend Tilt Index ETF (continued)
Industry | Shares | Value | ||||||||||||
Common Stocks (continued) | ||||||||||||||
China (continued) | ||||||||||||||
b |
Bilibili Inc. |
Entertainment | 600 | $ | 9,142 | |||||||||
a |
Blue Moon Group Holdings Ltd., 144A |
Household Products | 9,000 | 6,352 | ||||||||||
BOC Hong Kong (Holdings) Ltd. |
Banks | 24,000 | 79,950 | |||||||||||
BOE Technology Group Co. Ltd., A |
Electronic Equipment, Instruments & Components | 20,500 | 9,403 | |||||||||||
BOE Technology Group Co. Ltd., B |
Electronic Equipment, Instruments & Components | 7,800 | 3,329 | |||||||||||
BYD Co. Ltd., A |
Automobiles | 100 | 3,535 | |||||||||||
BYD Co. Ltd., H |
Automobiles | 500 | 12,382 | |||||||||||
BYD Electronic International Co. Ltd. |
Communications Equipment | 3,000 | 7,246 | |||||||||||
Changjiang Securities Co. Ltd., A |
Capital Markets | 3,000 | 2,192 | |||||||||||
China CITIC Bank Corp. Ltd., H |
Banks | 54,000 | 21,463 | |||||||||||
China Conch Venture Holdings Ltd. |
Construction & Engineering | 12,000 | 19,139 | |||||||||||
China Construction Bank Corp., A |
Banks | 2,400 | 1,858 | |||||||||||
China Construction Bank Corp., H |
Banks | 339,000 | 196,061 | |||||||||||
China Everbright Bank Co. Ltd., A |
Banks | 22,200 | 8,781 | |||||||||||
China Everbright Bank Co. Ltd., H |
Banks | 18,000 | 4,953 | |||||||||||
a,c |
China Feihe Ltd., 144A, Reg S |
Food Products | 18,000 | 12,612 | ||||||||||
China Hongqiao Group Ltd. |
Metals & Mining | 15,000 | 12,421 | |||||||||||
China International Marine Containers (Group) Co. Ltd., H |
Machinery | 4,800 | 3,057 | |||||||||||
China International Marine Containers Group Co. Ltd., A |
Machinery | 1,200 | 1,163 | |||||||||||
China Lesso Group Holdings Ltd. |
Building Products | 6,000 | 5,587 | |||||||||||
China Life Insurance Co. Ltd., H |
Insurance | 48,000 | 61,514 | |||||||||||
China Longyuan Power Group Corp., A |
Independent Power Producers & Energy Traders | 3,000 | 3,764 | |||||||||||
China Medical System Holdings Ltd. |
Pharmaceuticals | 9,000 | 10,743 | |||||||||||
China Merchants Bank Co. Ltd., A |
Banks | 5,400 | 25,488 | |||||||||||
China Merchants Bank Co. Ltd., H |
Banks | 12,500 | 58,122 | |||||||||||
China Merchants Expressway Network & Technology Holdings Co. Ltd., A |
Transportation Infrastructure | 1,800 | 1,914 | |||||||||||
China Merchants Port Holdings Co. Ltd. |
Transportation Infrastructure | 8,000 | 10,059 | |||||||||||
a |
China Merchants Securities Co. Ltd., A, 144A |
Capital Markets | 1,200 | 1,039 | ||||||||||
China Merchants Securities Co. Ltd., A |
Capital Markets | 1,800 | 3,116 | |||||||||||
China Merchants Shekou Industrial Zone Holdings Co. Ltd., A |
Real Estate Management & Development | 4,200 | 9,626 | |||||||||||
China Minsheng Banking Corp. Ltd., A |
Banks | 18,600 | 8,845 | |||||||||||
China Minsheng Banking Corp. Ltd., H |
Banks | 42,000 | 12,038 | |||||||||||
China National Building Material Co. Ltd., H |
Construction Materials | 30,000 | 22,968 | |||||||||||
China Pacific Insurance Group Co. Ltd., A |
Insurance | 3,000 | 8,555 | |||||||||||
China Pacific Insurance Group Co. Ltd., H |
Insurance | 13,200 | 24,315 | |||||||||||
China Petroleum & Chemical Corp., A |
Oil, Gas & Consumable Fuels | 18,600 | 11,193 | |||||||||||
China Petroleum & Chemical Corp., H |
Oil, Gas & Consumable Fuels | 168,000 | 72,123 | |||||||||||
China Resources Cement Holdings Ltd. |
Construction Materials | 14,000 | 6,492 | |||||||||||
China Resources Power Holdings Co. Ltd. |
Independent Power Producers & Energy Traders | 1,000 | 1,554 | |||||||||||
China Shenhua Energy Co. Ltd., A |
Oil, Gas & Consumable Fuels | 3,600 | 15,977 | |||||||||||
China Shenhua Energy Co. Ltd., H |
Oil, Gas & Consumable Fuels | 21,000 | 62,733 | |||||||||||
China Suntien Green Energy Corp. Ltd. |
Oil, Gas & Consumable Fuels | 12,000 | 4,403 | |||||||||||
China Taiping Insurance Holdings Co. Ltd. |
Insurance | 9,600 | 8,084 | |||||||||||
a,c |
China Tower Corp. Ltd., H, 144A, Reg S |
Diversified Telecommunication Services | 276,000 | 29,534 | ||||||||||
China Vanke Co. Ltd., A |
Real Estate Management & Development | 4,800 | 12,005 | |||||||||||
China Vanke Co. Ltd., H |
Real Estate Management & Development | 10,200 | 18,581 | |||||||||||
China Yangtze Power Co. Ltd., A |
Independent Power Producers & Energy Traders | 2,400 | 7,655 | |||||||||||
b |
China Zheshang Bank Co. Ltd., A |
Banks | 9,000 | 3,762 | ||||||||||
Chongqing Rural Commercial Bank Co. Ltd., A |
Banks | 4,800 | 2,404 | |||||||||||
Chongqing Rural Commercial Bank Co. Ltd., H |
Banks | 12,000 | 3,898 | |||||||||||
Chow Tai Fook Jewellery Co. Ltd., A |
Specialty Retail | 14,400 | 27,113 | |||||||||||
CIFI Holdings Group Co. Ltd., A |
Real Estate Management & Development | 36,000 | 3,669 | |||||||||||
CITIC Ltd., B |
Industrial Conglomerates | 42,000 | 39,593 | |||||||||||
Citic Pacific Special Steel Group Co. Ltd., A |
Metals & Mining | 1,800 | 4,449 |
36 |
Semiannual Report |
franklintempleton.com |
FRANKLIN TEMPLETON ETF TRUST
SCHEDULE OF INVESTMENTS (UNAUDITED)
Franklin Emerging Market Core Dividend Tilt Index ETF (continued)
Industry | Shares | Value | ||||||||||||
Common Stocks (continued) | ||||||||||||||
China (continued) | ||||||||||||||
COSCO SHIPPING Holdings Co. Ltd., B |
Marine | 24,000 | $ | 28,158 | ||||||||||
Country Garden Holdings Co. Ltd. |
Real Estate Management & Development | 48,000 | 11,129 | |||||||||||
Country Garden Services Holdings Co. Ltd. |
Commercial Services & Supplies | 8,000 | 11,781 | |||||||||||
a |
Dali Foods Group Co. Ltd., 144A |
Food Products | 15,000 | 6,459 | ||||||||||
b |
Datang International Power Generation Co. Ltd., H |
Independent Power Producers & Energy Traders | 12,000 | 2,293 | ||||||||||
ENN Energy Holdings Ltd. |
Gas Utilities | 700 | 9,363 | |||||||||||
Far East Horizon Ltd. |
Diversified Financial Services | 12,000 | 8,102 | |||||||||||
Faw Jiefang Group Co. Ltd. |
Automobiles | 1,200 | 1,209 | |||||||||||
Focus Media Information Technology Co. Ltd. |
Technology Hardware, Storage & Peripherals | 8,400 | 6,504 | |||||||||||
Fosun International Ltd. |
Industrial Conglomerates | 18,000 | 11,167 | |||||||||||
Foxconn Industrial Internet Co. Ltd., A |
Electronic Equipment, Instruments & Components | 5,400 | 6,453 | |||||||||||
b |
GDS Holdings Ltd. |
IT Services | 3,000 | 6,573 | ||||||||||
Gemdale Corp., A |
Real Estate Management & Development | 2,400 | 3,868 | |||||||||||
Gree Electric Appliances Inc. of Zhuhai |
Household Durables | 3,000 | 13,647 | |||||||||||
Guangxi Guiguan Electric Power Co. Ltd., A |
Independent Power Producers & Energy Traders | 2,400 | 1,973 | |||||||||||
Guangzhou TInc.i Materials Technology Co. Ltd. |
Chemicals | 600 | 3,708 | |||||||||||
Guangzhou Yuexiu Financial Holdings Group Co. Ltd., A |
Capital Markets | 2,400 | 1,912 | |||||||||||
Guosen Securities Co. Ltd. |
Capital Markets | 4,200 | 5,067 | |||||||||||
a |
Guotai Junan Securities Co. Ltd., 144A |
Capital Markets | 6,000 | 6,375 | ||||||||||
Guotai Junan Securities Co. Ltd., A |
Capital Markets | 4,200 | 8,053 | |||||||||||
Guoyuan Securities Co. Ltd. |
Capital Markets | 2,400 | 2,155 | |||||||||||
Haitian International Holdings Ltd. |
Machinery | 5,000 | 9,503 | |||||||||||
Henan Shuanghui Investment & Development Co. Ltd. |
Food Products | 1,800 | 6,176 | |||||||||||
Hengan International Group Co. Ltd. |
Personal Products | 4,500 | 20,121 | |||||||||||
Hengli Petrochemical Co. Ltd., A |
Chemicals | 3,000 | 7,120 | |||||||||||
Hopson Development Holdings Ltd. |
Real Estate Management & Development | 6,000 | 6,283 | |||||||||||
Huadian Power International Corp. Ltd., A |
Independent Power Producers & Energy Traders | 3,600 | 3,005 | |||||||||||
Huadian Power International Corp. Ltd., H |
Independent Power Producers & Energy Traders | 12,000 | 4,387 | |||||||||||
Huaxia Bank Co. Ltd., A |
Banks | 8,400 | 5,927 | |||||||||||
Huaxin Cement Co. Ltd., H |
Construction Materials | 2,400 | 2,473 | |||||||||||
Huaxin Cement Co. Ltd., A |
Construction Materials | 600 | 1,410 | |||||||||||
Huayu Automotive Systems Co. Ltd. |
Auto Components | 1,800 | 4,171 | |||||||||||
Huizhou Desay Sv Automotive Co. Ltd. |
Household Durables | 200 | 3,870 | |||||||||||
Industrial and Commercial Bank of China Ltd. |
Banks | 33,000 | 20,136 | |||||||||||
Industrial and Commercial Bank of China Ltd., H . |
Banks | 264,000 | 123,762 | |||||||||||
Industrial Bank Co. Ltd., A |
Banks | 10,200 | 23,822 | |||||||||||
b |
Industrial Securities Co. Ltd., A |
Capital Markets | 3,080 | 2,355 | ||||||||||
a,b |
Innovent Biologics Inc., B, 144A |
Biotechnology | 3,000 | 9,344 | ||||||||||
JA Solar Technology Co. Ltd., A |
Semiconductors & Semiconductor Equipment | 600 | 5,390 | |||||||||||
a,b |
JD Health International Inc., 144A |
Internet & Catalog Retail | 1,500 | 8,618 | ||||||||||
JD.com Inc., A |
Internet & Catalog Retail | 4,050 | 102,464 | |||||||||||
Jiangsu Expressway Co. Ltd., A |
Transportation Infrastructure | 600 | 605 | |||||||||||
Jiangsu Expressway Co. Ltd., H |
Transportation Infrastructure | 12,000 | 9,004 | |||||||||||
b |
KE Holdings Inc., ADR |
Real Estate Management & Development | 1,044 | 18,291 | ||||||||||
Kingboard Holdings Ltd. |
Electronic Equipment, Instruments & Components | 4,000 | 11,312 | |||||||||||
a,b |
Kuaishou Technology, B, 144A |
Interactive Media & Services | 3,000 | 19,472 | ||||||||||
Lenovo Group Ltd. |
Technology Hardware, Storage & Peripherals | 48,000 | 33,386 | |||||||||||
b |
Li Auto Inc., A |
Automobiles | 900 | 10,387 | ||||||||||
Li Ning Co. Ltd. |
Textiles, Apparel & Luxury Goods | 2,500 | 19,140 | |||||||||||
Livzon Pharmaceutical Group Inc., H |
Pharmaceuticals | 1,200 | 3,008 | |||||||||||
Lomon Billions Group Co. Ltd. |
Chemicals | 1,200 | 2,651 | |||||||||||
a,c |
Longfor Group Holdings Ltd., 144A, Reg S |
Real Estate Management & Development | 9,500 | 27,290 | ||||||||||
a,b |
Meituan Dianping, B, 144A |
Internet & Catalog Retail | 8,700 | 183,534 | ||||||||||
b |
Microport Scientific Corp. |
Health Care Equipment & Supplies | 1,800 | 3,100 | ||||||||||
Midea Group Co. Ltd., A |
Household Durables | 2,400 | 16,600 |
franklintempleton.com |
Semiannual Report |
37 |
FRANKLIN TEMPLETON ETF TRUST
SCHEDULE OF INVESTMENTS (UNAUDITED)
Franklin Emerging Market Core Dividend Tilt Index ETF (continued)
Industry | Shares | Value | ||||||||||||
Common Stocks (continued) | ||||||||||||||
China (continued) | ||||||||||||||
Minth Group Ltd. |
Auto Components | 4,000 | $ | 8,856 | ||||||||||
NetEase Inc. |
Entertainment | 4,100 | 61,892 | |||||||||||
New China Life Insurance Co. Ltd., A |
Insurance | 1,200 | 4,535 | |||||||||||
New China Life Insurance Co. Ltd., H |
Insurance | 5,400 | 10,305 | |||||||||||
Nine Dragons Paper Holdings Ltd. |
Paper & Forest Products | 12,000 | 7,460 | |||||||||||
Perfect World Co. Ltd. |
Entertainment | 1,200 | 2,091 | |||||||||||
PetroChina Co. Ltd., H |
Oil, Gas & Consumable Fuels | 132,000 | 54,146 | |||||||||||
PICC Property and Casualty Co. Ltd., H |
Insurance | 42,000 | 43,552 | |||||||||||
Ping An Insurance Group Co. of China Ltd., A |
Insurance | 3,000 | 17,497 | |||||||||||
Ping An Insurance Group Co. of China Ltd., H |
Insurance | 23,000 | 114,855 | |||||||||||
Poly Developments and Holdings Group Co. Ltd., A |
Real Estate Management & Development | 2,400 | 6,060 | |||||||||||
a |
Pop Mart International Group Ltd., 144A |
Specialty Retail | 3,600 | 6,622 | ||||||||||
a |
Postal Savings Bank of China Co. Ltd., 144A |
Banks | 60,000 | 35,389 | ||||||||||
Postal Savings Bank of China Co. Ltd. |
Banks | 19,200 | 12,012 | |||||||||||
SAIC Motor Corp Ltd. |
Automobiles | 5,400 | 10,832 | |||||||||||
Shaanxi Coal Industry Co. Ltd. |
Oil, Gas & Consumable Fuels | 4,200 | 13,414 | |||||||||||
Shanghai Bairun Investment Holding Group Co. Ltd. |
Beverages | 600 | 2,267 | |||||||||||
Shanghai Baosight Software Co. Ltd., A |
Software | 600 | 3,096 | |||||||||||
Shanghai Baosight Software Co. Ltd., B |
Software | 3,000 | 8,730 | |||||||||||
Shanghai Construction Group Co. Ltd., A |
Construction & Engineering | 5,400 | 1,916 | |||||||||||
Shanghai Lujiazui Finance & Trade Zone Development Co. Ltd., A |
Real Estate Management & Development | 1,200 | 1,621 | |||||||||||
Shanghai Lujiazui Finance & Trade Zone Development Co. Ltd., B |
Real Estate Management & Development | 7,800 | 6,107 | |||||||||||
Shanghai Pudong Development Bank Co. Ltd., A |
Banks | 15,600 | 15,405 | |||||||||||
Shanxi Xishan Coal & Electricity Power Co. Ltd. |
Oil, Gas & Consumable Fuels | 1,800 | 3,782 | |||||||||||
Shengyi Technology Co. Ltd., A |
Electronic Equipment, Instruments & Components | 1,200 | 2,205 | |||||||||||
Shenzhen Transsion Holdings Co. Ltd., A |
Technology Hardware, Storage & Peripherals | 510 | 4,161 | |||||||||||
Shenzhou International Group Holdings Ltd. |
Textiles, Apparel & Luxury Goods | 2,400 | 18,757 | |||||||||||
Shijiazhuang Yiling Pharmaceutical Co. Ltd. |
Pharmaceuticals | 600 | 1,827 | |||||||||||
Sichuan Chuantou Energy Co Ltd., A |
Independent Power Producers & Energy Traders | 2,400 | 4,050 | |||||||||||
Sichuan Road & Bridge Co. Ltd., A |
Construction & Engineering | 2,400 | 3,441 | |||||||||||
Silergy Corp. |
Semiconductors & Semiconductor Equipment | 300 | 3,978 | |||||||||||
Sinotruk Hong Kong Ltd. |
Machinery | 3,000 | 2,511 | |||||||||||
a |
Smoore International Holdings Ltd., 144A |
Tobacco | 12,000 | 14,354 | ||||||||||
Sun Art Retail Group Ltd. |
Food & Staples Retailing | 12,000 | 2,568 | |||||||||||
Sunac China Holdings Ltd. |
Real Estate Management & Development | 18,000 | 2,440 | |||||||||||
Sunny Optical Technology Group Co. Ltd. |
Electronic Equipment, Instruments & Components | 2,400 | 22,976 | |||||||||||
Tencent Holdings Ltd. |
Interactive Media & Services | 10,800 | 366,517 | |||||||||||
The People’s Insurance Co. Group of China Ltd., H |
Insurance | 54,000 | 15,684 | |||||||||||
Tianshan Aluminum Group Co. Ltd., A |
Machinery | 2,400 | 2,410 | |||||||||||
Tongwei Co. Ltd., A |
Food Products | 1,800 | 11,857 | |||||||||||
a |
Topsports International Holdings Ltd., 144A |
Specialty Retail | 18,000 | 12,680 | ||||||||||
Uni-President China Holdings Ltd. |
Food Products | 6,000 | 5,037 | |||||||||||
Universal Scientific Industrial Shanghai Co. Ltd., A |
Electronic Equipment, Instruments & Components | 1,200 | 2,538 | |||||||||||
Want Want China Holdings Ltd. |
Food Products | 18,000 | 11,763 | |||||||||||
Weichai Power Co. Ltd., H |
Machinery | 1,000 | 949 | |||||||||||
Wuhan Guide Infrared Co. Ltd. |
Electronic Equipment, Instruments & Components | 1,800 | 2,934 | |||||||||||
Wuhu Sanqi Interactive Entertainment NetworkTechnology Group Co. Ltd. |
Entertainment | 1,200 | 2,932 | |||||||||||
Xiamen C & D Inc., A |
Trading Companies & Distributors | 1,200 | 2,331 | |||||||||||
Xinyi Solar Holdings Ltd. |
Semiconductors & Semiconductor Equipment | 30,000 | 31,758 | |||||||||||
b |
XPeng Inc., A |
Automobiles | 1,800 | 10,548 | ||||||||||
Youngor Group Co. Ltd., A |
Real Estate Management & Development | 2,400 | 2,128 |
38 |
Semiannual Report |
franklintempleton.com |
FRANKLIN TEMPLETON ETF TRUST
SCHEDULE OF INVESTMENTS (UNAUDITED)
Franklin Emerging Market Core Dividend Tilt Index ETF (continued)
Industry | Shares | Value | ||||||||||||
Common Stocks (continued) | ||||||||||||||
China (continued) | ||||||||||||||
Yunnan Baiyao Group Co. Ltd. |
Pharmaceuticals | 600 | $ | 4,406 | ||||||||||
Yunnan Energy New Material Co. Ltd. |
Containers & Packaging | 500 | 12,212 | |||||||||||
Zhuzhou CRRC Times Electric Co. Ltd., H |
Electrical Equipment | 1,200 | 5,045 | |||||||||||
Zoomlion Heavy Industry Science and Technology Co. Ltd. |
Machinery | 4,200 | 3,264 | |||||||||||
Zoomlion Heavy Industry Science and Technology Co. Ltd., H |
Machinery | 10,800 | 3,756 | |||||||||||
|
|
|||||||||||||
3,715,046 | ||||||||||||||
|
|
|||||||||||||
Colombia 0.4% | ||||||||||||||
Banco de Bogota SA |
Banks | 642 | 3,988 | |||||||||||
Bancolombia SA |
Banks | 1,794 | 12,145 | |||||||||||
b |
Corp. Financiera Colombiana SA |
Diversified Financial Services | 504 | 1,832 | ||||||||||
Ecopetrol SA |
Oil, Gas & Consumable Fuels | 32,484 | 14,665 | |||||||||||
Grupo Energia Bogota SA ESP |
Gas Utilities | 16,662 | 6,786 | |||||||||||
Interconexion Electrica SA ESP |
Electric Utilities | 3,252 | 11,680 | |||||||||||
|
|
|||||||||||||
51,096 | ||||||||||||||
|
|
|||||||||||||
Czech Republic 0.4% | ||||||||||||||
CEZ AS |
Electric Utilities | 1,002 | 34,356 | |||||||||||
Komercni Banka AS |
Banks | 462 | 11,586 | |||||||||||
a |
Moneta Money Bank AS, 144A |
Banks | 2,844 | 8,005 | ||||||||||
|
|
|||||||||||||
53,947 | ||||||||||||||
|
|
|||||||||||||
Greece 0.5% | ||||||||||||||
Hellenic Petroleum Holdings SA |
Oil, Gas & Consumable Fuels | 378 | 2,318 | |||||||||||
Hellenic Telecommunications Organization SA |
Diversified Telecommunication Services | 1,494 | 21,734 | |||||||||||
JUMBO SA |
Specialty Retail | 792 | 10,591 | |||||||||||
Motor Oil Hellas Corinth Refineries SA |
Oil, Gas & Consumable Fuels | 450 | 7,115 | |||||||||||
OPAP SA |
Hotels, Restaurants & Leisure | 1,320 | 15,880 | |||||||||||
|
|
|||||||||||||
57,638 | ||||||||||||||
|
|
|||||||||||||
Hong Kong 2.4% | ||||||||||||||
Beijing Enterprises Water Group Ltd., A |
Water Utilities | 24,000 | 5,534 | |||||||||||
Bosideng International Holdings Ltd., A |
Household Durables | 24,000 | 11,893 | |||||||||||
China Everbright Environment Group Ltd., B |
Commercial Services & Supplies | 24,000 | 9,967 | |||||||||||
China Gas Holdings Ltd., A |
Gas Utilities | 15,600 | 18,700 | |||||||||||
China Jinmao Holdings Group Ltd., A |
Real Estate Management & Development | 24,000 | 4,892 | |||||||||||
China Overseas Land & Investment Ltd., A |
Real Estate Management & Development | 23,000 | 59,918 | |||||||||||
China Resources Gas Group Ltd., A |
Gas Utilities | 6,000 | 19,070 | |||||||||||
China Resources Land Ltd., H |
Real Estate Management & Development | 18,000 | 70,854 | |||||||||||
Geely Automobile Holdings Ltd. |
Automobiles | 13,000 | 17,919 | |||||||||||
Guangdong Investment Ltd. |
Water Utilities | 18,000 | 14,423 | |||||||||||
Kingboard Laminates Holdings Ltd. |
Electronic Equipment, Instruments & Components | 6,000 | 5,404 | |||||||||||
Orient Overseas International Ltd. |
Marine | 1,700 | 29,778 | |||||||||||
Shimao Group Holdings Ltd. |
Real Estate Management & Development | 9,000 | 2,124 | |||||||||||
Xinyi Glass Holdings Ltd. |
Auto Components | 18,000 | 26,186 | |||||||||||
|
|
|||||||||||||
296,662 | ||||||||||||||
|
|
|||||||||||||
Hungary 0.4% | ||||||||||||||
MOL Hungarian Oil & Gas PLC |
Oil, Gas & Consumable Fuels | 3,828 | 21,326 | |||||||||||
OTP Bank Nyrt |
Banks | 1,374 | 25,160 | |||||||||||
|
|
|||||||||||||
46,486 | ||||||||||||||
|
|
|||||||||||||
India 11.5% | ||||||||||||||
ACC Ltd. |
Construction Materials | 510 | 15,144 | |||||||||||
b |
Adani Green Energy Ltd. |
Independent Power Producers & Energy Traders | 450 | 12,506 | ||||||||||
Ambuja Cements Ltd. |
Construction Materials | 3,264 | 20,687 |
franklintempleton.com |
Semiannual Report |
39 |
FRANKLIN TEMPLETON ETF TRUST
SCHEDULE OF INVESTMENTS (UNAUDITED)
Franklin Emerging Market Core Dividend Tilt Index ETF (continued)
Industry | Shares | Value | ||||||||||||
Common Stocks (continued) | ||||||||||||||
India (continued) | ||||||||||||||
Apollo Hospitals Enterprise Ltd. |
Health Care Providers & Services | 18 | $ | 970 | ||||||||||
Asian Paints Ltd. |
Chemicals | 402 | 16,517 | |||||||||||
Aurobindo Pharma Ltd. |
Pharmaceuticals | 1,848 | 11,599 | |||||||||||
Bajaj Auto Ltd. |
Automobiles | 450 | 19,514 | |||||||||||
Bajaj Holdings & Investment Ltd. |
Diversified Financial Services | 144 | 11,312 | |||||||||||
Bharat Electronics Ltd. |
Aerospace & Defense | 6,588 | 8,175 | |||||||||||
Bharat Petroleum Corp. Ltd. |
Oil, Gas & Consumable Fuels | 6,270 | 23,492 | |||||||||||
Bharti Infratel Ltd. |
Diversified Telecommunication Services | 4,950 | 12,014 | |||||||||||
Britannia Industries Ltd. |
Food Products | 312 | 14,739 | |||||||||||
Coal India Ltd. |
Oil, Gas & Consumable Fuels | 13,230 | 34,518 | |||||||||||
Colgate-Palmolive India Ltd. |
Personal Products | 852 | 17,065 | |||||||||||
Dr Reddy’s Laboratories Ltd. |
Pharmaceuticals | 204 | 10,872 | |||||||||||
Embassy Office Parks REIT |
Equity Real Estate Investment Trusts (REITs | ) | 3,426 | 14,565 | ||||||||||
GAIL India Ltd. |
Gas Utilities | 17,316 | 18,529 | |||||||||||
HCL Technologies Ltd. |
IT Services | 6,954 | 79,698 | |||||||||||
a |
HDFC Asset Management Co. Ltd., 144A |
Capital Markets | 222 | 5,157 | ||||||||||
Hero MotoCorp Ltd. |
Automobiles | 822 | 25,758 | |||||||||||
Hindustan Petroleum Corp. Ltd. |
Oil, Gas & Consumable Fuels | 4,098 | 10,896 | |||||||||||
Hindustan Unilever Ltd. |
Household Products | 2,268 | 75,175 | |||||||||||
Housing Development Finance Corp. Ltd. |
Thrifts & Mortgage Finance | 1,686 | 47,414 | |||||||||||
Indian Oil Corp. Ltd. |
Oil, Gas & Consumable Fuels | 23,646 | 19,460 | |||||||||||
Info Edge India Ltd. |
Interactive Media & Services | 384 | 18,223 | |||||||||||
Infosys Ltd. |
IT Services | 11,490 | 199,635 | |||||||||||
ITC Ltd. |
Tobacco | 18,228 | 74,435 | |||||||||||
a,c |
Larsen & Toubro Infotech Ltd.,, 144A, Reg S |
IT Services | 294 | 16,110 | ||||||||||
LIC Housing Finance Ltd. |
Thrifts & Mortgage Finance | 1,806 | 9,187 | |||||||||||
Mahindra & Mahindra Ltd. |
Automobiles | 162 | 2,525 | |||||||||||
Marico Ltd. |
Personal Products | 3,312 | 21,897 | |||||||||||
Mindtree Ltd. |
IT Services | 396 | 15,378 | |||||||||||
Mphasis Ltd. |
IT Services | 534 | 13,704 | |||||||||||
NMDC Ltd. |
Metals & Mining | 5,952 | 9,347 | |||||||||||
NTPC Ltd. |
Independent Power Producers & Energy Traders | 29,652 | 58,191 | |||||||||||
Oil & Natural Gas Corp. Ltd. |
Oil, Gas & Consumable Fuels | 8,556 | 13,336 | |||||||||||
Oracle Financial Services Software Ltd. |
Software | 162 | 5,939 | |||||||||||
Piramal Enterprises Ltd. |
Pharmaceuticals | 828 | 8,796 | |||||||||||
Power Finance Corp. Ltd. |
Diversified Financial Services | 7,506 | 9,651 | |||||||||||
Power Grid Corp. of India Ltd. |
Electric Utilities | 22,224 | 57,970 | |||||||||||
REC Ltd. |
Diversified Financial Services | 7,776 | 8,985 | |||||||||||
Reliance Industries Ltd. |
Oil, Gas & Consumable Fuels | 3,540 | 103,468 | |||||||||||
Shriram Transport Finance Co. Ltd. |
Consumer Finance | 1,266 | 18,636 | |||||||||||
Steel Authority of India Ltd. |
Metals & Mining | 9,162 | 8,644 | |||||||||||
Tata Consultancy Services Ltd. |
IT Services | 2,562 | 94,623 | |||||||||||
Tata Consumer Products Ltd. |
Food Products | 1,068 | 10,540 | |||||||||||
Tata Steel Ltd. |
Metals & Mining | 44,532 | 54,357 | |||||||||||
Tech Mahindra Ltd. |
IT Services | 1,302 | 16,142 | |||||||||||
Torrent Pharmaceuticals Ltd. |
Pharmaceuticals | 642 | 12,310 | |||||||||||
TVS Motor Co. Ltd. |
Automobiles | 774 | 9,821 | |||||||||||
Vedanta Ltd. |
Metals & Mining | 8,508 | 28,243 | |||||||||||
b |
Zomato Ltd. |
Internet & Catalog Retail | 10,248 | 7,854 | ||||||||||
|
|
|||||||||||||
1,433,723 | ||||||||||||||
|
|
|||||||||||||
Indonesia 1.0% | ||||||||||||||
Adaro Energy Tbk PT, B |
Oil, Gas & Consumable Fuels | 80,400 | 20,909 | |||||||||||
Bank Mandiri Persero Tbk PT, A |
Banks | 24,600 | 15,226 | |||||||||||
Bank Rakyat Indonesia Persero Tbk PT, A |
Banks | 118,200 | 34,853 | |||||||||||
Bukit Asam Tbk PT, A |
Oil, Gas & Consumable Fuels | 25,800 | 7,065 | |||||||||||
Indocement Tunggal Prakarsa Tbk PT |
Construction Materials | 10,800 | 6,738 | |||||||||||
Indofood Sukses Makmur Tbk PT |
Food Products | 27,600 | 10,920 |
40 |
Semiannual Report |
franklintempleton.com |
FRANKLIN TEMPLETON ETF TRUST
SCHEDULE OF INVESTMENTS (UNAUDITED)
Franklin Emerging Market Core Dividend Tilt Index ETF (continued)
Industry | Shares | Value | ||||||||||||
Common Stocks (continued) | ||||||||||||||
Indonesia (continued) | ||||||||||||||
Perusahaan Perseroan (Persero) PT TelekomunikasiIndonesia Tbk, B |
Diversified Telecommunication Services | 67,800 | $ | 19,858 | ||||||||||
Unilever Indonesia Tbk PT |
Household Products | 37,200 | 11,799 | |||||||||||
|
|
|||||||||||||
127,368 | ||||||||||||||
|
|
|||||||||||||
Kuwait 0.2% | ||||||||||||||
Mobile Telecommunications Co. KSCP |
Wireless Telecommunication Services | 13,848 | 26,137 | |||||||||||
|
|
|||||||||||||
Malaysia 2.4% | ||||||||||||||
CIMB Group Holdings Bhd., A |
Banks | 44,400 | 49,121 | |||||||||||
Digi.com Bhd |
Wireless Telecommunication Services | 22,200 | 16,182 | |||||||||||
HAP Seng Consolidated Bhd |
Industrial Conglomerates | 4,200 | 5,543 | |||||||||||
Hartalega Holdings Bhd |
Health Care Equipment & Supplies | 13,200 | 4,725 | |||||||||||
Kuala Lumpur Kepong Bhd |
Food Products | 3,600 | 16,071 | |||||||||||
Malayan Banking Bhd |
Banks | 44,400 | 82,155 | |||||||||||
Maxis Bhd |
Wireless Telecommunication Services | 15,600 | 11,808 | |||||||||||
MISC Bhd |
Marine | 8,400 | 12,246 | |||||||||||
Petronas Gas Bhd |
Gas Utilities | 6,000 | 21,350 | |||||||||||
RHB Bank Bhd |
Banks | 13,200 | 15,827 | |||||||||||
Sime Darby Bhd |
Industrial Conglomerates | 15,000 | 6,923 | |||||||||||
Sime Darby Plantation Bhd |
Food Products | 18,000 | 15,877 | |||||||||||
Tenaga Nasional Bhd |
Electric Utilities | 18,000 | 31,249 | |||||||||||
Top Glove Corp. Bhd |
Health Care Equipment & Supplies | 30,600 | 4,124 | |||||||||||
Westports Holdings Bhd |
Transportation Infrastructure | 5,400 | 3,564 | |||||||||||
YTL Corp. Bhd |
Multi-Utilities | 39,000 | 4,878 | |||||||||||
|
|
|||||||||||||
301,643 | ||||||||||||||
|
|
|||||||||||||
Mexico 2.7% | ||||||||||||||
America Movil SAB de CV |
Wireless Telecommunication Services | 67,218 | 55,593 | |||||||||||
Arca Continental SAB de CV |
Beverages | 2,598 | 18,737 | |||||||||||
Coca-Cola Femsa SAB de CV |
Beverages | 3,276 | 19,171 | |||||||||||
Fibra Uno Administracion SA de CV |
Equity Real Estate Investment Trusts (REITs | ) | 18,072 | 18,632 | ||||||||||
Gruma SAB de CV |
Food Products | 1,242 | 11,915 | |||||||||||
Grupo Aeroportuario del Pacifico SAB de CV |
Transportation Infrastructure | 2,154 | 27,268 | |||||||||||
Grupo Aeroportuario del Sureste SAB de CV |
Transportation Infrastructure | 1,230 | 24,265 | |||||||||||
Grupo Financiero Banorte SAB de CV |
Banks | 14,028 | 90,220 | |||||||||||
Grupo Mexico SAB de CV, B |
Metals & Mining | 18,726 | 63,440 | |||||||||||
|
|
|||||||||||||
329,241 | ||||||||||||||
|
|
|||||||||||||
Pakistan 0.0% | ||||||||||||||
Oil & Gas Development Co. Ltd. |
Oil, Gas & Consumable Fuels | 6,156 | 2,044 | |||||||||||
|
|
|||||||||||||
Peru 0.1% | ||||||||||||||
a |
InRetail Peru Corp., 144A |
Food & Staples Retailing | 174 | 5,786 | ||||||||||
|
|
|||||||||||||
Philippines 0.3% | ||||||||||||||
Aboitiz Power Corp., A |
Independent Power Producers & Energy Traders | 9,600 | 5,043 | |||||||||||
First Gen Corp. |
Independent Power Producers & Energy Traders | 6,000 | 1,666 | |||||||||||
Globe Telecom Inc. |
Wireless Telecommunication Services | 210 | 7,272 | |||||||||||
Manila Electric Co. |
Electric Utilities | 1,800 | 8,075 | |||||||||||
PLDT Inc. |
Wireless Telecommunication Services | 570 | 14,662 | |||||||||||
|
|
|||||||||||||
36,718 | ||||||||||||||
|
|
|||||||||||||
Romania 0.1% | ||||||||||||||
NEPI Rockcastle PLC |
Real Estate Management & Development | 3,078 | 13,883 | |||||||||||
|
|
|||||||||||||
Russia 0.0%† | ||||||||||||||
b,d |
Alrosa PJSC |
Metals & Mining | 54,971 | — | ||||||||||
b,d |
Gazprom PJSC |
Oil, Gas & Consumable Fuels | 44,709 | — | ||||||||||
b,d |
Inter RAO UES PJSC |
Electric Utilities | 811,741 | — |
franklintempleton.com |
Semiannual Report |
41 |
FRANKLIN TEMPLETON ETF TRUST
SCHEDULE OF INVESTMENTS (UNAUDITED)
Franklin Emerging Market Core Dividend Tilt Index ETF (continued)
Industry | Shares | Value | ||||||||||||
Common Stocks (continued) | ||||||||||||||
Russia† (continued) | ||||||||||||||
d |
LUKOIL PJSC |
Oil, Gas & Consumable Fuels | 2,268 | — | ||||||||||
d |
MMC Norilsk Nickel PJSC |
Metals & Mining | 693 | — | ||||||||||
b,d |
Moscow Exchange MICEX |
Capital Markets | 21,224 | — | ||||||||||
b,d |
Novolipetsk Steel PJSC |
Metals & Mining | 35,119 | — | ||||||||||
d |
PhosAgro PJSC |
Chemicals | 1,073 | — | ||||||||||
d |
PhosAgro PJSC |
Chemicals | 21 | — | ||||||||||
d |
PhosAgro PJSC |
Chemicals | 1 | — | ||||||||||
b,d |
Polymetal International PLC |
Metals & Mining | 7,294 | — | ||||||||||
b,d |
Polyus PJSC |
Metals & Mining | 756 | — | ||||||||||
d |
Rosneft Oil Co. PJSC |
Oil, Gas & Consumable Fuels | 20,055 | — | ||||||||||
d |
Severstal PAO |
Metals & Mining | 6,090 | — | ||||||||||
d |
Surgutneftegas PJSC |
Oil, Gas & Consumable Fuels | 132,846 | — | ||||||||||
d |
Tatneft PAO |
Oil, Gas & Consumable Fuels | 29,792 | — | ||||||||||
b,d |
TCS Group Holding PLC, GDR |
Banks | 1,778 | — | ||||||||||
b,d |
United Co. RUSAL International PJSC |
Metals & Mining | 24,749 | — | ||||||||||
|
|
|||||||||||||
— | ||||||||||||||
|
|
|||||||||||||
Saudi Arabia 2.9% | ||||||||||||||
Advanced Petrochemical Co. |
Chemicals | 816 | $ | 9,698 | ||||||||||
Banque Saudi Fransi |
Banks | 1,068 | 11,939 | |||||||||||
Jarir Marketing Co. |
Specialty Retail | 384 | 17,069 | |||||||||||
SABIC Agri-Nutrients Co. |
Chemicals | 402 | 16,906 | |||||||||||
Sahara International Petrochemical Co. |
Chemicals | 2,340 | 26,066 | |||||||||||
a |
Saudi Arabian Oil Co., 144A |
Oil, Gas & Consumable Fuels | 9,942 | 94,868 | ||||||||||
Saudi Basic Industries Corp. |
Chemicals | 450 | 10,636 | |||||||||||
Saudi Electricity Co. |
Electric Utilities | 2,076 | 13,560 | |||||||||||
Saudi Industrial Investment Group |
Chemicals | 2,490 | 15,151 | |||||||||||
Saudi Investment Bank |
Banks | 3,180 | 14,457 | |||||||||||
Saudi National Bank |
Banks | 198 | 3,325 | |||||||||||
Saudi Telecom Co. |
Diversified Telecommunication Services | 9,702 | 101,617 | |||||||||||
Yanbu National Petrochemical Co. |
Chemicals | 1,764 | 21,739 | |||||||||||
|
|
|||||||||||||
357,031 | ||||||||||||||
|
|
|||||||||||||
South Africa 5.1% | ||||||||||||||
Absa Group Ltd. |
Banks | 3,678 | 36,147 | |||||||||||
African Rainbow Minerals Ltd. |
Metals & Mining | 624 | 8,490 | |||||||||||
Anglo American Platinum Ltd. |
Metals & Mining | 408 | 29,245 | |||||||||||
Exxaro Resources Ltd. |
Oil, Gas & Consumable Fuels | 1,602 | 18,044 | |||||||||||
FirstRand Ltd. |
Diversified Financial Services | 30,846 | 104,247 | |||||||||||
Gold Fields Ltd. |
Metals & Mining | 3,708 | 30,421 | |||||||||||
Growthpoint Properties Ltd. |
Equity Real Estate Investment Trusts (REITs | ) | 21,936 | 14,390 | ||||||||||
Impala Platinum Holdings Ltd. |
Metals & Mining | 5,196 | 49,053 | |||||||||||
Kumba Iron Ore Ltd. |
Metals & Mining | 360 | 7,768 | |||||||||||
Mr Price Group Ltd. |
Specialty Retail | 1,656 | 15,921 | |||||||||||
MultiChoice Group |
Media | 2,976 | 19,148 | |||||||||||
Naspers Ltd., N |
Internet & Direct Marketing Retail | 378 | 47,602 | |||||||||||
Nedbank Group Ltd. |
Banks | 2,952 | 32,807 | |||||||||||
Old Mutual Ltd. |
Insurance | 29,142 | 15,858 | |||||||||||
Pick ‘N Pay Stores Ltd. |
Food & Staples Retailing | 2,526 | 7,798 | |||||||||||
Sanlam Ltd. |
Insurance | 11,424 | 32,793 | |||||||||||
Santam Ltd. |
Insurance | 288 | 4,007 | |||||||||||
Sibanye Stillwater Ltd. |
Metals & Mining | 16,680 | 38,989 | |||||||||||
SPAR Group Ltd. |
Food & Staples Retailing | 1,290 | 10,290 | |||||||||||
Standard Bank Group Ltd. |
Banks | 8,922 | 71,485 | |||||||||||
Tiger Brands Ltd. |
Food Products | 1,170 | 11,030 | |||||||||||
Vodacom Group Ltd. |
Wireless Telecommunication Services | 4,542 | 30,852 | |||||||||||
|
|
|||||||||||||
636,385 | ||||||||||||||
|
|
42 |
Semiannual Report |
franklintempleton.com |
FRANKLIN TEMPLETON ETF TRUST
SCHEDULE OF INVESTMENTS (UNAUDITED)
Franklin Emerging Market Core Dividend Tilt Index ETF (continued)
Industry | Shares | Value | ||||||||||||
Common Stocks (continued) | ||||||||||||||
South Korea 9.1% | ||||||||||||||
BNK Financial Group Inc., H |
Banks | 1,944 | $ | 8,180 | ||||||||||
Cheil Worldwide Inc., A |
Media | 468 | 7,425 | |||||||||||
DB Insurance Co. Ltd., A |
Insurance | 324 | 12,501 | |||||||||||
GS Retail Co. Ltd. |
Food & Staples Retailing | 246 | 4,402 | |||||||||||
Hana Financial Group Inc. |
Banks | 2,082 | 51,588 | |||||||||||
Hanon Systems |
Auto Components | 978 | 5,687 | |||||||||||
HD Hyundai Co. Ltd. |
Machinery | 372 | 14,067 | |||||||||||
b |
HYBE Co. Ltd. |
Entertainment | 30 | 2,831 | ||||||||||
Hyundai Marine & Fire Insurance Co. Ltd. |
Insurance | 78 | 1,597 | |||||||||||
Industrial Bank of Korea |
Banks | 1,824 | 12,137 | |||||||||||
Kakao Corp. |
Interactive Media & Services | 558 | 22,270 | |||||||||||
b |
Kakao Games Corp. |
Entertainment | 258 | 7,691 | ||||||||||
b |
KakaoBank Corp. |
Banks | 150 | 2,102 | ||||||||||
KB Financial Group Inc. |
Banks | 2,598 | 79,355 | |||||||||||
Kia Corp. |
Automobiles | 1,284 | 64,528 | |||||||||||
Korea Gas Corp.. |
Gas Utilities | 216 | 5,103 | |||||||||||
Korea Investment Holdings Co. Ltd. |
Capital Markets | 270 | 8,964 | |||||||||||
KT Corp. |
Diversified Telecommunication Services | 828 | 20,950 | |||||||||||
KT&G Corp. |
Tobacco | 744 | 45,034 | |||||||||||
Kumho Petrochemical Co. Ltd. |
Chemicals | 114 | 9,203 | |||||||||||
b |
L&F Co. Ltd. |
Electronic Equipment, Instruments & Components | 12 | 1,490 | ||||||||||
LG Chem Ltd. |
Chemicals | 48 | 17,983 | |||||||||||
LG Corp. |
Industrial Conglomerates | 480 | 24,827 | |||||||||||
LG Display Co. Ltd. |
Electronic Equipment, Instruments & Components | 1,536 | 12,883 | |||||||||||
LG Uplus Corp. |
Diversified Telecommunication Services | 1,374 | 10,324 | |||||||||||
NH Investment & Securities Co. Ltd. |
Capital Markets | 960 | 6,032 | |||||||||||
POSCO Holdings Inc. |
Metals & Mining | 522 | 76,985 | |||||||||||
S-1 Corp. |
Commercial Services & Supplies | 120 | 4,856 | |||||||||||
Samsung Card Co. Ltd. |
Consumer Finance | 144 | 3,040 | |||||||||||
Samsung Electronics Co. Ltd. |
Technology Hardware, Storage & Peripherals | 9,060 | 336,259 | |||||||||||
Samsung Fire & Marine Insurance Co. Ltd. |
Insurance | 216 | 27,779 | |||||||||||
Samsung Securities Co. Ltd. |
Capital Markets | 414 | 8,898 | |||||||||||
SD Biosensor Inc. |
Health Care Equipment & Supplies | 234 | 4,351 | |||||||||||
Seegene Inc. |
Biotechnology | 306 | 5,732 | |||||||||||
Shinhan Financial Group Co. Ltd. |
Banks | 3,498 | 81,906 | |||||||||||
b |
SK Biopharmaceuticals Co. Ltd. |
Pharmaceuticals | 114 | 4,534 | ||||||||||
b |
SK Bioscience Co. Ltd. |
Biotechnology | 54 | 3,031 | ||||||||||
SK Hynix Inc. |
Semiconductors & Semiconductor Equipment | 870 | 50,533 | |||||||||||
SK Telecom Co. Ltd. |
Wireless Telecommunication Services | 702 | 24,926 | |||||||||||
SSANGYONG C&E Co. Ltd. |
Construction Materials | 684 | 2,806 | |||||||||||
Wemade Co. Ltd. |
Entertainment | 78 | 2,497 | |||||||||||
Woori Financial Group Inc. |
Banks | 3,990 | 29,841 | |||||||||||
|
|
|||||||||||||
1,127,128 | ||||||||||||||
|
|
|||||||||||||
Taiwan 17.9% | ||||||||||||||
Acer Inc., H |
Technology Hardware, Storage & Peripherals | 18,000 | 12,416 | |||||||||||
ASE Industrial Holding Co. Ltd., A |
Semiconductors & Semiconductor Equipment | 24,000 | 60,550 | |||||||||||
Asia Cement Corp. |
Construction Materials | 18,000 | 22,338 | |||||||||||
ASMedia Technology Inc. |
Semiconductors & Semiconductor Equipment | 240 | 5,019 | |||||||||||
Asustek Computer Inc. |
Technology Hardware, Storage & Peripherals | 4,620 | 34,051 | |||||||||||
AU Optronics Corp., H |
Electronic Equipment, Instruments & Components | 54,000 | 25,002 | |||||||||||
b |
Catcher Technology Co. Ltd. |
Technology Hardware, Storage & Peripherals | 5,000 | 27,166 | ||||||||||
Cathay Financial Holding Co. Ltd., A |
Insurance | 57,000 | 71,724 | |||||||||||
Chicony Electronics Co. Ltd. |
Technology Hardware, Storage & Peripherals | 4,000 | 10,381 | |||||||||||
China Development Financial Holding Corp., A |
Banks | 114,000 | 43,088 | |||||||||||
China Steel Corp., A |
Metals & Mining | 78,000 | 65,596 | |||||||||||
Compal Electronics Inc., H |
Technology Hardware, Storage & Peripherals | 24,000 | 16,404 | |||||||||||
CTBC Financial Holding Co. Ltd., A |
Banks | 126,000 | 78,777 |
franklintempleton.com |
Semiannual Report |
43 |
FRANKLIN TEMPLETON ETF TRUST
SCHEDULE OF INVESTMENTS (UNAUDITED)
Franklin Emerging Market Core Dividend Tilt Index ETF (continued)