SEMIANNUAL REPORT

FRANKLIN TEMPLETON ETF TRUST

September 30, 2022

 

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Franklin FTSE Asia ex Japan ETF

 

Franklin FTSE Japan ETF

Franklin FTSE Australia ETF

 

Franklin FTSE Japan Hedged ETF

Franklin FTSE Brazil ETF

 

Franklin FTSE Latin America ETF

Franklin FTSE Canada ETF

 

Franklin FTSE Mexico ETF

Franklin FTSE China ETF

 

Franklin FTSE Russia ETF

Franklin FTSE Europe ETF

 

Franklin FTSE Saudi Arabia ETF

Franklin FTSE Europe Hedged ETF

 

Franklin FTSE South Africa ETF

Franklin FTSE France ETF

 

Franklin FTSE South Korea ETF

Franklin FTSE Germany ETF

 

Franklin FTSE Switzerland ETF

Franklin FTSE Hong Kong ETF

 

Franklin FTSE Taiwan ETF

Franklin FTSE India ETF

 

Franklin FTSE United Kingdom ETF

Franklin FTSE Italy ETF

 


Contents        
Semiannual Report       
Economic and Market Overview      2  
Franklin FTSE Asia ex Japan ETF      3  
Franklin FTSE Australia ETF      8  
Franklin FTSE Brazil ETF      13  
Franklin FTSE Canada ETF      18  
Franklin FTSE China ETF      23  
Franklin FTSE Europe ETF      28  
Franklin FTSE Europe Hedged ETF      33  
Franklin FTSE France ETF      38  
Franklin FTSE Germany ETF      43  
Franklin FTSE Hong Kong ETF      48  
Franklin FTSE India ETF      53  
Franklin FTSE Italy ETF      58  
Franklin FTSE Japan ETF      63  

 

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

 

 

Franklin FTSE Japan Hedged ETF      68  
Franklin FTSE Latin America ETF      73  
Franklin FTSE Mexico ETF      78  
Franklin FTSE Russia ETF      83  
Franklin FTSE Saudi Arabia ETF      88  
Franklin FTSE South Africa ETF      93  
Franklin FTSE South Korea ETF      98  
Franklin FTSE Switzerland ETF      103  
Franklin FTSE Taiwan ETF      108  
Franklin FTSE United Kingdom ETF      113  
Financial Highlights and Schedules of Investments      118  
Financial Statements      283  
Notes to Financial Statements      307  
Shareholder Information      333  

 

 

 

Not FDIC Insured   |   May Lose Value   |   No Bank Guarantee

 

           
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             1


SEMIANNUAL REPORT

Economic and Market Overview

 

Global developed and emerging market equities, as measured by the MSCI All Country World Index-NR (net of tax withholding when dividends are paid), posted a -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.

In the U.S., gross domestic product (GDP) growth contracted in the second quarter of 2022, with the economy technically entering a recession, amid lower investments in inventories and fixed investments. The inflation rate escalated during the six-month period to the highest level since 1981, precipitating a notable decline in consumer confidence, despite high spending levels. In an effort to control inflation, the U.S. Federal Reserve (Fed) raised the federal funds target rate four times 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, spending and production grew, job growth remained robust and the unemployment rate continued to be low. 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.

 

           
2             

Semiannual Report

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Franklin FTSE Asia ex Japan ETF

 

This semiannual report for Franklin FTSE Asia ex Japan ETF covers the period ended September 30, 2022.

Your Fund’s Goal and Main Investments

The Fund seeks to provide investment results that closely correspond, before fees and expenses, to the performance of the FTSE Asia ex Japan RIC Capped Index (the FTSE Asia ex Japan Capped Index or the Underlying Index).1 Under normal market conditions, the Fund invests at least 80% of its assets in the component securities of the FTSE Asia ex Japan Capped Index and in depositary receipts representing such securities.

Performance Overview

During the six-month period, the Fund posted cumulative total returns of -21.44% based on market price and -21.44% based on net asset value. In comparison, the FTSE Asia ex Japan Capped Index posted a -21.38% total return for the same period.2 You can find more of the Fund’s performance data in the Performance Summary beginning on page 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.

Investment Strategy

The Fund, using a “passive” or indexing investment approach, seeks investment results that closely correspond, before fees and expenses, to the performance of the FTSE Asia ex Japan Capped Index. The Fund may use either a replication strategy or representative sampling strategy. Under a replication strategy, the Fund will replicate the component securities of the Underlying Index as closely as possible (i.e., invest in all of the component securities in their respective weightings in the Underlying Index). However, it

Top 10 Sectors/Industries       
9/30/22       
      % of Total
Net Assets
 

Banks

     11.9%  

Semiconductors & Semiconductor Equipment

     8.7%  

Internet & Catalog Retail

     6.1%  

Interactive Media & Services

     5.4%  

Technology Hardware, Storage & Peripherals

     5.1%  

Oil, Gas & Consumable Fuels

     4.2%  

Insurance

     4.2%  

Real Estate Management & Development

     3.6%  

Automobiles

     3.4%  

Electronic Equipment, Instruments & Components

     3.0%  

may not be possible or practicable to replicate the Underlying Index. In these circumstances, we may use a representative sampling strategy whereby we will invest in what we believe to be a representative sample of the component securities of the Underlying Index, but may not track the Underlying Index with the same degree of accuracy as would an investment vehicle replicating the entire Underlying Index. Under the representative sampling technique, we will select securities that collectively have an investment profile similar to that of the Underlying Index, including securities that resemble those included in the Underlying Index in terms of risk factors, performance attributes and other characteristics, such as market capitalization and industry weightings. The Fund will concentrate its investments (i.e., hold 25% or more of its net assets) in a particular industry or group of industries to approximately the same extent that the Underlying Index is concentrated.

 

1. The FTSE Asia ex Japan Capped Index is a free float-adjusted market capitalization-weighted index maintained and calculated by FTSE Russell with a capping methodology applied quarterly to issuer weights so that no single issuer of a component exceeds 25% of the index weight, and all issuers with weights above 5% do not cumulatively exceed 50% of the index’s weight. The FTSE Asia ex Japan Capped Index is based on the FTSE Asia ex Japan Index and is designed to measure the performance of large- and mid-capitalization stocks from developed and emerging Asian countries, excluding Japan. The Chinese constituents in the FTSE Asia ex Japan Capped Index are represented by H-shares, B-shares, A-shares, N-shares, Red Chips, P-Chips and S-Chips.

2. Source: FactSet.

The index is unmanaged and includes reinvestment of any income or distributions (after the deduction of certain withholding taxes). It does not reflect any fees, expenses or sales charges. One cannot invest directly in an index.

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

The dollar value, number of shares or principal amount, and names of all portfolio holdings are listed in the Fund’s Schedule of Investments (SOI). The SOI begins on page 119.

 

           
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FRANKLIN FTSE ASIA EX JAPAN ETF

 

Top 10 Holdings       
9/30/22       
Company
Sector/Industry, Country
   % of Total
Net Assets
 

Taiwan Semiconductor Manufacturing Co. Ltd.

Semiconductors & Semiconductor Equipment, Taiwan

     6.0%  

Tencent Holdings Ltd.

Interactive Media & Services, China

     3.8%  

Samsung Electronics Co. Ltd.

Technology Hardware, Storage & Peripherals, South Korea

     3.8%  

Alibaba Group Holding Ltd., A

Internet & Catalog Retail, China

     2.8%  

AIA Group Ltd., A

Insurance, Hong Kong

     1.9%  

Reliance Industries Ltd.

Oil, Gas & Consumable Fuels, India

     1.8%  

Meituan Dianping, B, 144A

Internet & Catalog Retail, China

     1.6%  

Infosys Ltd.

IT Services, India

     1.2%  
JD.com Inc., A
Internet & Catalog Retail, China
     1.1%  

China Construction Bank Corp., H

Banks, China

     1.0%  
Top 10 Countries       
9/30/22       
      % of Total
Net Assets
 

China

     34.2%  

India

     18.9%  

Taiwan

     15.3%  

South Korea

     11.9%  

Hong Kong

     7.5%  

Singapore

     3.7%  

Thailand

     2.7%  

Indonesia

     2.4%  

Malaysia

     1.9%  

Philippines

     0.8%  

Thank you for your participation in Franklin FTSE Asia ex Japan ETF. We look forward to serving your future investment needs.

Dina Ting, CFA

Hailey Harris

Joe Diederich

Basit Amin, CFA

Portfolio Management Team

 

 

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 FTSE ASIA EX JAPAN 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 (2/9/18), the NAV of the Fund is used as a proxy for the Market Price to calculate market returns. Market and NAV returns assume that dividends and capital gain distributions have been reinvested at Market Price and NAV.

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

     -21.44%        -21.44%        -21.44%        -21.44%  

1-Year

     -27.86%        -28.23%        -27.86%        -28.23%  

3-Year

     -2.32%        -3.15%        -0.78%        -1.06%  

Since Inception (2/6/18)

     -12.27%        -13.27%        -2.78%        -3.02%  

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 FTSE ASIA EX JAPAN ETF

PERFORMANCE SUMMARY

 

Distributions (4/1/22–9/30/22)

Net Investment
Income

$0.112327

Total Annual Operating Expenses5

 

  0.19%

All investments involve risks, including possible loss of principal. Stock prices fluctuate, sometimes rapidly and dramatically, due to factors affecting individual companies, particular industries or sectors, or general market conditions. Special risks are associated with foreign investing, including currency fluctuations, economic instability and political developments. Investments in developing markets involve heightened risks related to the same factors, in addition to those associated with these markets’ smaller size, lesser liquidity and lack of established legal, political, business and social frameworks to support securities markets. Investments in securities of issuers in Asian countries involve risks that are specific to Asia, including certain legal, regulatory, political and economic risks. Because the Fund invests its assets primarily in companies in a specific country or region, the Fund may also experience greater volatility than a fund that is more broadly diversified geographically. 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. The total annual operating expenses are sourced from the Fund’s prospectus available at the time of publication. Actual expenses may be higher and may impact portfolio returns.

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

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

4. Assumes reinvestment of distributions based on market price.

5. 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 FTSE ASIA EX JAPAN 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   $ 785.60     $ 0.85     $ 1,024.12     $ 0.96       0.19

1. Expenses are equal to the annualized expense ratio for the six-month period as indicated above—in the far right column—multiplied by the simple average account value over the period indicated, and then multiplied by 183/365 to reflect the one-half year period.

 

           
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Franklin FTSE Australia ETF

 

This semiannual report for Franklin FTSE Australia ETF covers the period ended September 30, 2022.

Your Fund’s Goal and Main Investments

The Fund seeks to provide investment results that closely correspond, before fees and expenses, to the performance of the FTSE Australia RIC Capped Index (the FTSE Australia Capped Index or the Underlying Index).1 Under normal market conditions, the Fund invests at least 80% of its assets in the component securities of the FTSE Australia Capped Index and in depositary receipts representing such securities.

Performance Overview

During the six-month period, the Fund posted cumulative total returns of -22.95% based on market price -23.38% based on net asset value. In comparison, the FTSE Australia Capped Index posted a -23.36% total return for the same period.2 You can find more of the Fund’s performance data in the Performance Summary beginning on page 10.

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

Investment Strategy

The Fund, using a “passive” or indexing investment approach, seeks investment results that closely correspond, before fees and expenses, to the performance of the FTSE Australia Capped Index. The Fund may use either a replication strategy or representative sampling strategy. Under a replication strategy, the Fund will replicate the component securities of the Underlying Index as closely as possible (i.e., invest in all of the component securities in their respective weightings in the Underlying Index). However, it may not be possible or practicable to replicate the Underlying Index. In

Top 10 Sectors/Industries       
9/30/22       
      % of Total
Net Assets
 

Banks

     22.6%  

Metals & Mining

     21.2%  

Biotechnology

     7.8%  

Oil, Gas & Consumable Fuels

     6.5%  

Food & Staples Retailing

     4.3%  

Capital Markets

     4.1%  

Equity Real Estate Investment Trusts (REITs)

     3.4%  

Transportation Infrastructure

     2.9%  

Multiline Retail

     2.9%  

Insurance

     2.9%  

these circumstances, we may use a representative sampling strategy whereby we will invest in what we believe to be a representative sample of the component securities of the Underlying Index, but may not track the Underlying Index with the same degree of accuracy as would an investment vehicle replicating the entire Underlying Index. Under the representative sampling technique, we will select securities that collectively have an investment profile similar to that of the Underlying Index, including securities that resemble those included in the Underlying Index in terms of risk factors, performance attributes and other characteristics, such as market capitalization and industry weightings. The Fund will concentrate its investments (i.e., hold 25% or more of its net assets) in a particular industry or group of industries to approximately the same extent that the Underlying Index is concentrated.

 

1. The FTSE Australia Capped Index is a free float-adjusted market capitalization-weighted index maintained and calculated by FTSE Russell with a capping methodology applied quarterly to issuer weights so that no single issuer of a component exceeds 25% of the index weight, and all issuers with weights above 5% do not cumulatively exceed 50% of the index’s weight. The FTSE Australia Capped Index is based on the FTSE Australia Index and is designed to measure the performance of Australian large-and mid-capitalization stocks.

2. Source: FactSet.

The index is unmanaged and includes reinvestment of any income or distributions (after the deduction of certain withholding taxes). It does not reflect any fees, expenses or sales charges. One cannot invest directly in an index.

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

The dollar value, number of shares or principal amount, and names of all portfolio holdings are listed in the Fund’s Schedule of Investments (SOI). The SOI begins on page 154.

 

           
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FRANKLIN FTSE AUSTRALIA ETF

 

Top 10 Holdings       
9/30/22       
Company
Sector/Industry, Country
   % of Total
Net Assets
 

BHP Group Ltd.

Metals & Mining, Australia

     11.0%  

Commonwealth Bank of Australia

Banks, Australia

     8.8%  

CSL Ltd.

Biotechnology, Australia

     7.8%  

National Australia Bank Ltd.

Banks, Australia

     5.2%  

Westpac Banking Corp.

Banks, Australia

     4.1%  

Australia & New Zealand Banking Group Ltd.

Banks, Australia

     4.0%  

Woodside Petroleum Ltd.

Oil, Gas & Consumable Fuels, Australia

     3.4%  

Macquarie Group Ltd.

Capital Markets, Australia

     3.0%  

Wesfarmers Ltd.

Multiline Retail, Australia

     2.8%  

Woolworths Group Ltd.

Food & Staples Retailing, Australia

     2.4%  

 

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

Dina Ting, CFA

Hailey Harris

Joe Diederich

Basit Amin, CFA

Portfolio Management Team

 

 

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

             9


FRANKLIN FTSE AUSTRALIA 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 (11/6/17), the NAV of the Fund is used as a proxy for the Market Price to calculate market returns. Market and NAV returns assume that dividends and capital gain distributions have been reinvested at Market Price and NAV.

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

     -23.38%        -22.95%        -23.38%        -22.95%  

1-Year

     -15.94%        -14.62%        -15.94%        -14.62%  

3-Year

     +4.75%        +4.02%        +1.56%        +1.32%  

Since Inception (11/2/17)

     +12.67%        +12.53%        +2.46%        +2.43%  

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 11 for Performance Summary footnotes.

 

           
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FRANKLIN FTSE AUSTRALIA ETF

PERFORMANCE SUMMARY

 

Distributions (4/1/22–9/30/22)

Net Investment
Income

$0.890273

Total Annual Operating Expenses5

 

  0.09%

All investments involve risks, including possible loss of principal. Stock prices fluctuate, sometimes rapidly and dramatically, due to factors affecting individual companies, particular industries or sectors, or general market conditions. Special risks are associated with foreign investing, including currency fluctuations, economic instability and political developments. Investments in securities of Australian issuers involve risks that are specific to Australia, including certain legal, regulatory, political and economic risks. Because the Fund invests its assets primarily in companies in a specific country or region, the Fund may also experience greater volatility than a fund that is more broadly diversified geographically. As a non-diversified fund, the Fund may invest in a relatively small number of issuers which may negatively impact the Fund’s performance and result in greater fluctuation in the value of the Fund’s shares. 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. The total annual operating expenses are sourced from the Fund’s prospectus available at the time of publication. Actual expenses may be higher and may impact portfolio returns.

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

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

4. Assumes reinvestment of distributions based on market price.

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

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

 

           
franklintempleton.com  

Semiannual Report

             11


FRANKLIN FTSE AUSTRALIA 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     $ 766.20     $ 0.40     $ 1,024.62     $ 0.46       0.09

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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  franklintempleton.com


Franklin FTSE Brazil ETF

 

This semiannual report for Franklin FTSE Brazil ETF covers the period ended September 30, 2022.

Your Fund’s Goal and Main Investments

The Fund seeks to provide investment results that closely correspond, before fees and expenses, to the performance of the FTSE Brazil RIC Capped Index (the FTSE Brazil Capped Index or the Underlying Index).1 Under normal market conditions, the Fund invests at least 80% of its assets in the component securities of the FTSE Brazil Capped Index and in depositary receipts representing such securities.

Performance Overview

During the six-month period, the Fund posted cumulative total returns of -18.30% based on market price -18.70% based on net asset value. In comparison, the FTSE Brazil Capped Index posted a -18.50% total return for the same period.2 You can find more of the Fund’s performance data in the Performance Summary beginning on page 15.

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

Investment Strategy

The Fund, using a “passive” or indexing investment approach, seeks investment results that closely correspond, before fees and expenses, to the performance of the FTSE Brazil Capped Index. The Fund may use either a replication strategy or representative sampling strategy. Under a replication strategy, the Fund will replicate the component securities of the Underlying Index as closely as possible (i.e., invest in all of the component securities in their respective weightings in the Underlying Index). However, it may not be possible or practicable to replicate the Underlying Index. In these circumstances, we may use a representative sampling strategy

Top 10 Sectors/Industries       
9/30/22       
      % of Total
Net Assets
 

Banks

     18.0%  

Oil, Gas & Consumable Fuels

     16.9%  

Metals & Mining

     16.5%  

Electric Utilities

     7.9%  

Capital Markets

     5.3%  

Road & Rail

     3.7%  

Beverages

     3.3%  

Food Products

     3.0%  

Food & Staples Retailing

     2.5%  

Machinery

     2.4%  

whereby we will invest in what we believe to be a representative sample of the component securities of the Underlying Index, but may not track the Underlying Index with the same degree of accuracy as would an investment vehicle replicating the entire Underlying Index. Under the representative sampling technique, we will select securities that collectively have an investment profile similar to that of the Underlying Index, including securities that resemble those included in the Underlying Index in terms of risk factors, performance attributes and other characteristics, such as market capitalization and industry weightings. The Fund will concentrate its investments (i.e., hold 25% or more of its net assets) in a particular industry or group of industries to approximately the same extent that the Underlying Index is concentrated.

 

1. The FTSE Brazil Capped Index is a free float-adjusted market capitalization-weighted index maintained and calculated by FTSE Russell with a capping methodology applied quarterly to issuer weights so that no single issuer of a component exceeds 25% of the index weight, and all issuers with weights above 5% do not cumulatively exceed 50% of the index’s weight. The FTSE Brazil Capped Index is based on the FTSE Brazil Index and is designed to measure the performance of Brazilian large- and mid-capitalization stocks.

2. Source: FactSet.

The index is unmanaged and includes reinvestment of any income or distributions (after the deduction of certain withholding taxes). It does not reflect any fees, expenses or sales charges. One cannot invest directly in an index.

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

The dollar value, number of shares or principal amount, and names of all portfolio holdings are listed in the Fund’s Schedule of Investments (SOI). The SOI begins on page 158.

 

           
franklintempleton.com  

Semiannual Report

             13


FRANKLIN FTSE BRAZIL ETF

 

Top 10 Holdings       
9/30/22       
Company
Sector/Industry, Country
   % of Total
Net Assets
 

Petroleo Brasileiro SA, 38.601%, pfd.

Oil, Gas & Consumable Fuels, Brazil

     14.3%  

Vale SA

Metals & Mining, Brazil

     13.8%  

Itau Unibanco Holding SA, 2.937%, pfd.

Banks, Brazil

     7.2%  

Banco Bradesco SA, 3.165%, pfd.

Banks, Brazil

     6.3%  

B3 SA - Brasil Bolsa Balcao

Capital Markets, Brazil

     3.9%  

Ambev SA

Beverages, Brazil

     3.3%  

Centrais Eletricas Brasileiras SA

Electric Utilities, Brazil

     3.2%  

WEG SA

Machinery, Brazil

     2.4%  

Localiza Rent a Car SA

Road & Rail, Brazil

     2.3%  

Itausa SA, 5.807%, pfd.

Banks, Brazil

     2.3%  

 

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

Dina Ting, CFA

Hailey Harris

Joe Diederich

Basit Amin, CFA

Portfolio Management Team

 

 

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.

 

           
14             

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FRANKLIN FTSE BRAZIL 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 (11/7/17), the NAV of the Fund is used as a proxy for the Market Price to calculate market returns. Market and NAV returns assume that dividends and capital gain distributions have been reinvested at Market Price and NAV.

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

     -18.70%        -18.30%        -18.70%        -18.30%  

1-Year

     +1.47%        +2.18%        +1.47%        +2.18%  

3-Year

     -16.60%        -16.43%        -5.87%        -5.81%  

Since Inception (11/3/17)

     -5.55%        -5.06%        -1.16%        -1.05%  

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 16 for Performance Summary footnotes.

 

           
franklintempleton.com  

Semiannual Report

             15


FRANKLIN FTSE BRAZIL ETF

PERFORMANCE SUMMARY

 

Distributions (4/1/22–9/30/22)

Net Investment
Income

$1.025517

Total Annual Operating Expenses5

 

  0.19%

All investments involve risks, including possible loss of principal. Stock prices fluctuate, sometimes rapidly and dramatically, due to factors affecting individual companies, particular industries or sectors, or general market conditions. Special risks are associated with foreign investing, including currency fluctuations, economic instability and political developments. Investments in developing markets involve heightened risks related to the same factors, in addition to those associated with these markets’ smaller size, lesser liquidity and lack of established legal, political, business and social frameworks to support securities markets. The Brazilian economy has experienced in the past, and may continue to experience, periods of high inflation rates and political unrest. Investments in securities of Brazilian issuers involve risks that are specific to Brazil, including certain legal, regulatory, political and economic risks. Because the Fund invests its assets primarily in companies in a specific country or region, the Fund may also experience greater volatility than a fund that is more broadly diversified geographically. As a non-diversified fund, the Fund may invest in a relatively small number of issuers which may negatively impact the Fund’s performance and result in greater fluctuation in the value of the Fund’s shares. 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. The total annual operating expenses are sourced from the Fund’s prospectus available at the time of publication. Actual expenses may be higher and may impact portfolio returns.

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

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

4. Assumes reinvestment of distributions based on market price.

5. 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.

 

           
16             

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  franklintempleton.com


FRANKLIN FTSE BRAZIL 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     $ 813.00     $ 0.86     $ 1,024.12     $ 0.96       0.19

1. Expenses are equal to the annualized expense ratio for the six-month period as indicated above—in the far right column—multiplied by the simple average account value over the period indicated, and then multiplied by 183/365 to reflect the one-half year period.

 

           
franklintempleton.com  

Semiannual Report

             17


Franklin FTSE Canada ETF

 

This semiannual report for Franklin FTSE Canada ETF covers the period ended September 30, 2022.

Your Fund’s Goal and Main Investments

The Fund seeks to provide investment results that closely correspond, before fees and expenses, to the performance of the FTSE Canada RIC Capped Index (the FTSE Canada Capped Index or the Underlying Index).1 Under normal market conditions, the Fund invests at least 80% of its assets in the component securities of the FTSE Canada Capped Index and in depositary receipts representing such securities.

Performance Overview

During the six-month period, the Fund posted cumulative total returns of -22.55% based on market price and -21.85% based on net asset value. In comparison, the FTSE Canada Capped Index posted a -21.98% total return for the same period.2 You can find more of the Fund’s performance data in the Performance Summary beginning on page 20.

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

Investment Strategy

The Fund, using a “passive” or indexing investment approach, seeks investment results that closely correspond, before fees and expenses, to the performance of the FTSE Canada Capped Index. The Fund may use either a replication strategy or representative sampling strategy. Under a replication strategy, the Fund will replicate the component securities of the Underlying Index as closely as possible (i.e., invest in all of the component securities in their respective weightings in the Underlying Index). However, it may not be possible or practicable to replicate the Underlying Index. In these circumstances, we may use a representative sampling

Top 10 Sectors/Industries      
9/30/22      
     % of Total
Net Assets
 
Banks     29.1%  
Oil, Gas & Consumable Fuels     18.6%  
Road & Rail     9.0%  
Insurance     7.4%  
Metals & Mining     6.9%  
Food & Staples Retailing     4.4%  
Capital Markets     4.0%  
IT Services     3.3%  
Chemicals     3.2%  
Commercial Services & Supplies     2.4%  

strategy whereby we will invest in what we believe to be a representative sample of the component securities of the Underlying Index, but may not track the Underlying Index with the same degree of accuracy as would an investment vehicle replicating the entire Underlying index. Under the representative sampling technique, we will select securities that collectively have an investment profile similar to that of the Underlying Index, including securities that resemble those included in the Underlying Index in terms of risk factors, performance attributes and other characteristics, such as market capitalization and industry weightings. The Fund will concentrate its investments (i.e., hold 25% or more of its net assets) in a particular industry or group of industries to approximately the same extent that the Underlying Index is concentrated.

 

1. The FTSE Canada Capped Index is a free float-adjusted market capitalization-weighted index maintained and calculated by FTSE Russell with a capping methodology applied quarterly to issuer weights so that no single issuer of a component exceeds 25% of the index weight, and all issuers with weights above 5% do not cumulatively exceed 50% of the index’s weight. The FTSE Canada Capped Index is based on the FTSE Canada Index and is designed to measure the performance of Canadian large-and mid-capitalization stocks.

2. Source: FactSet.

The index is unmanaged and includes reinvestment of any income or distributions (after the deduction of certain withholding taxes). It does not reflect any fees, expenses or sales charges. One cannot invest directly in an index.

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

The dollar value, number of shares or principal amount, and names of all portfolio holdings are listed in the Fund’s Schedule of Investments (SOI). The SOI begins on page 162.

 

           
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FRANKLIN FTSE CANADA ETF

 

Top 10 Holdings       
9/30/22       
Company
Sector/Industry, Country
   % of Total
Net Assets
 

Royal Bank of Canada

Banks, Canada

     8.9%  
The Toronto-Dominion Bank
Banks, Canada
     7.8%  
Enbridge Inc.
Oil, Gas & Consumable Fuels, Canada
     5.3%  
Canadian National Railway Co.
Road & Rail, Canada
     4.7%  
Canadian Pacific Railway Ltd.
Road & Rail, Canada
     4.4%  
Bank of Montreal
Banks, Canada
     4.2%  
Bank of Nova Scotia
Banks, Canada
     4.0%  
Brookfield Asset Management Inc., A
Capital Markets, Canada
     3.8%  
Canadian Natural Resources Ltd.
Oil, Gas & Consumable Fuels, Canada
     3.6%  
Nutrien Ltd.
Chemicals, Canada
     3.2%  

 

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

Dina Ting, CFA

Hailey Harris

Joe Diederich

Basit Amin, CFA

Portfolio Management Team

 

 

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

             19


FRANKLIN FTSE CANADA 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 (11/6/17), the NAV of the Fund is used as a proxy for the Market Price to calculate market returns. Market and NAV returns assume that dividends and capital gain distributions have been reinvested at Market Price and NAV.

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

     -21.85%        -22.55%        -21.85%        -22.55%  

1-Year

     -11.64%        -12.12%        -11.64%        -12.12%  

3-Year

     +17.07%        +16.58%        +5.39%        +5.25%  

Since Inception (11/2/17)

     +25.77%        +25.51%        +4.78%        +4.74%  

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

 

 

See page 21 for Performance Summary footnotes.

 

           
20             

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  franklintempleton.com


FRANKLIN FTSE CANADA ETF

PERFORMANCE SUMMARY

 

Distributions (4/1/22–9/30/22)

Net Investment
Income

$0.050796

Total Annual Operating Expenses5

 

  0.09%

All investments involve risks, including possible loss of principal. Stock prices fluctuate, sometimes rapidly and dramatically, due to factors affecting individual companies, particular industries or sectors, or general market conditions. Special risks are associated with foreign investing, including currency fluctuations, economic instability and political developments. Investments in securities of Canadian issuers involve risks that are specific to Canada, including certain legal, regulatory, political and economic risks. Because the Fund invests its assets primarily in companies in a specific country or region, the Fund may also experience greater volatility than a fund that is more broadly diversified geographically. As a non-diversified fund, the Fund may invest in a relatively small number of issuers which may negatively impact the Fund’s performance and result in greater fluctuation in the value of the Fund’s shares. 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. The total annual operating expenses are sourced from the Fund’s prospectus available at the time of publication. Actual expenses may be higher and may impact portfolio returns.

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

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

4. Assumes reinvestment of distributions based on market price.

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

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

 

           
franklintempleton.com  

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             21


FRANKLIN FTSE CANADA 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     $ 781.50     $ 0.40     $ 1,024.62     $ 0.46       0.09

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 FTSE China ETF

 

This semiannual report for Franklin FTSE China ETF covers the period ended September 30, 2022.

Your Fund’s Goal and Main Investments

The Fund seeks to provide investment results that closely correspond, before fees and expenses, to the performance of the FTSE China RIC Capped Index (the FTSE China Capped Index or the Underlying Index).1 Under normal market conditions, the Fund invests at least 80% of its assets in the component securities of the FTSE China Capped Index and in depositary receipts representing such securities.

Performance Overview

During the six-month period, the Fund posted cumulative total returns of -19.29% based on market price and -20.42% based on net asset value. In comparison, the FTSE China Capped Index posted a -20.45% total return for the same period.2 You can find more of the Fund’s performance data in the Performance Summary beginning on page 25.

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

Investment Strategy

The Fund, using a “passive” or indexing investment approach, seeks investment results that closely correspond, before fees and expenses, to the performance of the FTSE China Capped Index. The Fund may use either a replication strategy or representative sampling strategy. Under a replication strategy, the Fund will replicate the component securities of the Underlying Index as closely as possible (i.e., invest in all of the component securities in their respective weightings in the Underlying Index). However, it may not be possible or practicable to replicate the Underlying Index. In these circumstances, we may use a representative sampling strategy

Top 10 Sectors/Industries       
9/30/22       
      % of Total
Net Assets
 
Internet & Catalog Retail      17.2%  
Interactive Media & Services      13.6%  
Banks      10.5%  
Automobiles      4.6%  
Beverages      3.9%  
Real Estate Management & Development      3.6%  
Insurance      3.5%  
Oil, Gas & Consumable Fuels      3.0%  
Food Products      2.0%  
Textiles, Apparel & Luxury Goods      2.0%  

whereby we will invest in what we believe to be a representative sample of the component securities of the Underlying Index, but may not track the Underlying Index with the same degree of accuracy as would an investment vehicle replicating the entire Underlying Index. Under the representative sampling technique, we will select securities that collectively have an investment profile similar to that of the Underlying Index, including securities that resemble those included in the Underlying Index in terms of risk factors, performance attributes and other characteristics, such as market capitalization and industry weightings. The Fund will concentrate its investments (i.e., hold 25% or more of its net assets) in a particular industry or group of industries to approximately the same extent that the Underlying Index is concentrated.

 

1. The FTSE China Capped Index is a free float-adjusted market capitalization-weighted index maintained and calculated by FTSE Russell with a capping methodology applied quarterly to issuer weights so that no single issuer of a component exceeds 25% of the index weight, and all issuers with weights above 5% do not cumulatively exceed 50% of the index’s weight. The FTSE China Capped Index is based on the FTSE China Index and is designed to measure the performance of Chinese large- and mid-capitalization stocks, as represented by H-shares, B-shares, A-shares, N-shares, Red Chips, P-Chips and S-Chips.

2. Source: FactSet.

The index is unmanaged and includes reinvestment of any income or distributions (after the deduction of certain withholding taxes). It does not reflect any fees, expenses or sales charges. One cannot invest directly in an index.

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

The dollar value, number of shares or principal amount, and names of all portfolio holdings are listed in the Fund’s Schedule of Investments (SOI). The SOI begins on page 165.

 

           
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FRANKLIN FTSE CHINA ETF

 

Top 10 Holdings       
9/30/22       
Company
Sector/Industry, Country
   % of Total
Net Assets
 
Tencent Holdings Ltd.
Interactive Media & Services, China
     10.9%  
Alibaba Group Holding Ltd., A
Internet & Catalog Retail, China
     8.0%  
Meituan Dianping, B, 144A
Internet & Catalog Retail, China
     4.7%  
JD.com Inc., A
Internet & Catalog Retail, China
     3.2%  
China Construction Bank Corp., H
Banks, China
     2.9%  
Industrial and Commercial Bank of China Ltd., H
Banks, China
     2.0%  
Baidu Inc.
Interactive Media & Services, China
     1.8%  
Ping An Insurance Group Co. of China Ltd., H
Insurance, China
     1.6%  
NetEase Inc.
Entertainment, China
     1.5%  
Bank of China Ltd., H
Banks, China
     1.3%  

 

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

Dina Ting, CFA

Hailey Harris

Joe Diederich

Basit Amin, CFA

Portfolio Management Team

 

 

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 FTSE CHINA 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 (11/6/17), the NAV of the Fund is used as a proxy for the Market Price to calculate market returns. Market and NAV returns assume that dividends and capital gain distributions have been reinvested at Market Price and NAV.

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

     -20.42%        -19.29%        -20.42%        -19.29%  

1-Year

     -35.25%        -35.32%        -35.25%        -35.32%  

3-Year

     -18.76%        -18.46%        -6.69%        -6.58%  

Since Inception (11/2/17)

     -27.23%        -27.39%        -6.27%        -6.31%  

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.

 

 

See page 26 for Performance Summary footnotes.

 

           
franklintempleton.com  

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FRANKLIN FTSE CHINA ETF

PERFORMANCE SUMMARY

 

Distributions (4/1/22–9/30/22)

Net Investment
Income

$0.140032

Total Annual Operating Expenses5

 

  0.19%

All investments involve risks, including possible loss of principal. Stock prices fluctuate, sometimes rapidly and dramatically, due to factors affecting individual companies, particular industries or sectors, or general market conditions. Special risks are associated with foreign investing, including currency fluctuations, economic instability and political developments. Investments in developing markets involve heightened risks related to the same factors, in addition to those associated with these markets’ smaller size, lesser liquidity and lack of established legal, political, business and social frameworks to support securities markets. China may be subject to considerable degrees of economic, political and social instability. Investments in securities of Chinese issuers involve risks that are specific to China, including certain legal, regulatory, political and economic risks. Because the Fund invests its assets primarily in companies in a specific country or region, the Fund may also experience greater volatility than a fund that is more broadly diversified geographically. As a non-diversified fund, the Fund may invest in a relatively small number of issuers which may negatively impact the Fund’s performance and result in greater fluctuation in the value of the Fund’s shares. 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. The total annual operating expenses are sourced from the Fund’s prospectus available at the time of publication. Actual expenses may be higher and may impact portfolio returns.

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

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

4. Assumes reinvestment of distributions based on market price.

5. 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 FTSE CHINA 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     $ 795.80     $ 0.86     $ 1,024.12     $ 0.96       0.19

1. Expenses are equal to the annualized expense ratio for the six-month period as indicated above—in the far right column—multiplied by the simple average account value over the period indicated, and then multiplied by 183/365 to reflect the one-half year period.

 

           
franklintempleton.com  

Semiannual Report

             27


Franklin FTSE Europe ETF

 

This semiannual report for Franklin FTSE Europe ETF covers the period ended September 30, 2022.

Your Fund’s Goal and Main Investments

The Fund seeks to provide investment results that closely correspond, before fees and expenses, to the performance of the FTSE Developed Europe RIC Capped Index (the FTSE Developed Europe Capped Index or the Underlying Index).1 Under normal market conditions, the Fund invests at least 80% of its assets in the component securities of the FTSE Developed Europe Capped Index and in depositary receipts representing such securities.

Performance Overview

During the six-month period, the Fund posted cumulative total returns of -23.70% based on market price and -23.57% based on net asset value. In comparison, the FTSE Developed Europe Capped Index posted a -23.75% total return for the same period.2 You can find more of the Fund’s performance data in the Performance Summary beginning on page 30.

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

Investment Strategy

The Fund, using a “passive” or indexing investment approach, seeks investment results that closely correspond, before fees and expenses, to the performance of the FTSE Developed Europe Capped Index. The Fund may use either a replication strategy or representative sampling strategy. Under a replication strategy, the Fund will replicate the component securities of the Underlying Index as closely as possible (i.e., invest in all of the component securities in their

respective weightings in the Underlying Index). However, it

Top 10 Sectors/Industries       
9/30/22       
      % of Total
Net Assets
 

Pharmaceuticals

     11.8%  

Banks

     7.3%  

Oil, Gas & Consumable Fuels

     6.2%  

Insurance

     5.1%  

Food Products

     4.8%  

Textiles, Apparel & Luxury Goods

     4.5%  

Chemicals

     3.4%  

Semiconductors & Semiconductor Equipment

     3.0%  

Beverages

     2.8%  

Personal Products

     2.7%  

may not be possible or practicable to replicate the Underlying Index. In these circumstances, we may use a representative sampling strategy whereby we will invest in what we believe to be a representative sample of the component securities of the Underlying Index, but may not track the Underlying Index with the same degree of accuracy as would an investment vehicle replicating the entire Underlying Index. Under the representative sampling technique, we will select securities that collectively have an investment profile similar to that of the Underlying Index, including securities that resemble those included in the Underlying Index in terms of risk factors, performance attributes and other characteristics, such as market capitalization and industry weightings. The Fund will concentrate its investments (i.e., hold 25% or more of its net assets) in a particular industry or group of industries to approximately the same extent that the Underlying Index is concentrated.

 

1. The FTSE Developed Europe Capped Index is a free float-adjusted market capitalization-weighted index maintained and calculated by FTSE Russell with a capping methodology applied quarterly to issuer weights so that no single issuer of a component exceeds 25% of the index weight, and all issuers with weights above 5% do not cumulatively exceed 50% of the index’s weight. The FTSE Developed Europe Capped Index is based on the FTSE Developed Europe Index and is designed to measure the performance of large- and mid-capitalization stocks from developed European countries.

2. Source: FactSet.

The index is unmanaged and includes reinvestment of any income or distributions (after the deduction of certain withholding taxes). It does not reflect any fees, expenses or sales charges. One cannot invest directly in an index.

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

The dollar value, number of shares or principal amount, and names of all portfolio holdings are listed in the Fund’s Schedule of Investments (SOI). The SOI begins on page 186.

 

           
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FRANKLIN FTSE EUROPE ETF

 

Top 10 Holdings       
9/30/22       

Company

Sector/Industry, Country

   % of Total
Net Assets
 

Nestle SA

Food Products, Switzerland

     3.6%  

Roche Holding AG, Non-Voting

Pharmaceuticals, Switzerland

     2.8%  

Shell PLC

Oil, Gas & Consumable Fuels, Netherlands

     2.3%  

ASML Holding NV

Semiconductors & Semiconductor Equipment, Netherlands

     2.1%  

AstraZeneca PLC

Pharmaceuticals, United Kingdom

     2.0%  

Novartis AG

Pharmaceuticals, Switzerland

     2.0%  

Novo Nordisk AS, B

Pharmaceuticals, Denmark

     2.0%  

LVMH Moet Hennessy Louis Vuitton SE

Textiles, Apparel & Luxury Goods, France

     1.8%  

Unilever PLC

Personal Products, United Kingdom

     1.4%  

TotalEnergies SE

Oil, Gas & Consumable Fuels, France

     1.4%  

 

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

Dina Ting, CFA

Hailey Harris

Joe Diederich

Basit Amin, CFA

Portfolio Management Team

 

 

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.

 

Top 10 Countries       
9/30/22       
      % of Total
Net Assets
 

United Kingdom

     20.2%  

Switzerland

     16.4%  

France

     16.2%  

Germany

     11.7%  

Netherlands

     9.0%  

Sweden

     5.0%  

Denmark

     4.0%  

Spain

     3.7%  

Italy

     3.2%  

Finland

     2.1%  

 

 

           
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FRANKLIN FTSE EUROPE 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 (11/6/17), the NAV of the Fund is used as a proxy for the Market Price to calculate market returns. Market and NAV returns assume that dividends and capital gain distributions have been reinvested at Market Price and NAV.

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

     -23.57%        -23.70%        -23.57%        -23.70%  

1-Year

     -25.48%        -26.19%        -25.48%        -26.19%  

3-Year

     -4.88%        -5.65%        -1.65%        -1.92%  

Since Inception (11/2/17)

     -6.21%        -7.13%        -1.30%        -1.50%  

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 31 for Performance Summary footnotes.

 

           
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FRANKLIN FTSE EUROPE ETF

PERFORMANCE SUMMARY

 

Distributions (4/1/22–9/30/22)

Net Investment
Income

$0.513368

Total Annual Operating Expenses5

 

  0.09%

All investments involve risks, including possible loss of principal. Stock prices fluctuate, sometimes rapidly and dramatically, due to factors affecting individual companies, particular industries or sectors, or general market conditions. Special risks are associated with foreign investing, including currency fluctuations, economic instability and political developments. Investments in securities of issuers in European countries involve risks that are specific to Europe, including certain legal, regulatory, political and economic risks. Because the Fund invests its assets primarily in companies in a specific country or region, the Fund may also experience greater volatility than a fund that is more broadly diversified geographically. 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. The total annual operating expenses are sourced from the Fund’s prospectus available at the time of publication. Actual expenses may be higher and may impact portfolio returns.

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

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

4. Assumes reinvestment of distributions based on market price.

5. 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 FTSE EUROPE 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     $ 764.30     $ 0.40     $ 1,024.62     $ 0.46       0.09

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 FTSE Europe Hedged ETF

 

This semiannual report for Franklin FTSE Europe

Hedged ETF covers the period ended September 30, 2022.

Your Fund’s Goal and Main Investments

The Fund seeks to provide investment results that closely correspond, before fees and expenses, to the performance of the FTSE Developed Europe RIC Capped Hedged to USD Index (the FTSE Developed Europe Capped Hedged Index or the Underlying Index).1 Under normal market conditions, the Fund invests at least 80% of its assets in the component securities of the FTSE Developed Europe Capped Hedged Index and in depositary receipts representing such securities, including indirectly through Franklin FTSE Europe ETF (Underlying Fund).

Performance Overview

During the six-month period, the Fund posted cumulative total returns of -12.39% based on market price and -11.84% based on net asset value. In comparison, the FTSE

Developed Europe Capped Hedged Index posted a -11.96% total return for the same period.2 You can find more of the Fund’s performance data in the Performance Summary beginning on page 35.

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

Investment Strategy

The Fund, using a “passive” or indexing investment approach, seeks investment results that closely correspond, before fees and expenses, to the performance of the FTSE Developed Europe Capped Hedged Index. The Fund may use either a replication strategy or representative sampling strategy. Under a replication strategy, the Fund will replicate

 

Top 10 Sectors/Industries       
9/30/22       
      % of Total
Net Assets
 

Pharmaceuticals

     11.9%  

Banks

     7.3%  

Oil, Gas & Consumable Fuels

     6.3%  

Insurance

     5.2%  

Food Products

     4.9%  

Textiles, Apparel & Luxury Goods

     4.6%  

Chemicals

     3.4%  

Semiconductors & Semiconductor Equipment

     3.0%  

Beverages

     2.8%  

Personal Products

     2.7%  

 

the component securities of the Underlying Index as closely as possible (i.e., invest in all of the component securities in their respective weightings in the Underlying Index). However, it may not be possible or practicable to replicate the Underlying Index. In these circumstances, we may use a representative sampling strategy whereby we will invest in what we believe to be a representative sample of the component securities of the Underlying Index, but may not track the Underlying Index with the same degree of accuracy as would an investment vehicle replicating the entire Underlying Index. Under the representative sampling technique, we will select securities that collectively have an investment profile similar to that of the Underlying Index, including securities that resemble those included in the Underlying Index in terms of risk factors, performance attributes and other characteristics, such as market capitalization and industry weightings. We intend to enter into monthly foreign currency forward contracts and/or currency futures contracts designed to offset the Fund’s exposure to the component currencies, in order to replicate the hedge impact incorporated in the calculation of the Underlying Index. The Fund’s exposure to foreign currency forward contracts and currency futures contracts is based on the aggregate exposure of the Fund to the

 

1. The FTSE Developed Europe Capped Hedged Index is a free float-adjusted market capitalization-weighted index maintained and calculated by FTSE Russell with a capping methodology applied quarterly to issuer weights so that no single issuer of a component exceeds 25% of the index weight, and all issuers with weights above 5% do not cumulatively exceed 50% of the index’s weight. The FTSE Developed Europe Capped Hedged Index is based on the FTSE Developed Europe Hedged to USD Index and is designed to measure the performance of large- and mid-capitalization stocks from developed European countries. The FTSE Developed Europe Capped Hedged Index incorporates a hedge against non-U.S. currency fluctuations by reflecting the impact of rolling monthly currency forward contracts on the currencies represented in the FTSE Developed Europe Capped Hedged Index.

2. Source: FactSet.

The index is unmanaged and includes reinvestment of any income or distributions (after the deduction of certain withholding taxes). It does not reflect any fees, expenses or sales charges. One cannot invest directly in an index.

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

The dollar value, number of shares or principal amount, and names of all portfolio holdings are listed in the Fund’s Schedule of Investments (SOI). The SOI begins on page 199.

 

           
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FRANKLIN FTSE EUROPE HEDGED ETF

 

Top 10 Holdings       
9/30/22       
Company
Sector/Industry, Country
   % of Total
Net Assets
 

Nestle SA

Food Products, Switzerland

     3.7%  

Roche Holding AG, Non-Voting

Pharmaceuticals, Switzerland

     2.9%  

Shell PLC

Oil, Gas & Consumable Fuels, Netherlands

     2.3%  

ASML Holding NV

Semiconductors & Semiconductor Equipment, Netherlands

     2.1%  

AstraZeneca PLC

Pharmaceuticals, United Kingdom

     2.1%  

Novartis AG

Pharmaceuticals, Switzerland

     2.0%  

Novo Nordisk AS, B

Pharmaceuticals, Denmark

     2.0%  

LVMH Moet Hennessy Louis Vuitton SE

Textiles, Apparel & Luxury Goods, France

     1.9%  

Unilever PLC

Personal Products, United Kingdom

     1.4%  

TotalEnergies SE

Oil, Gas & Consumable Fuels, France

     1.4%  

 

component currencies. The Fund will concentrate its investments (i.e., hold 25% or more of its net assets) in a particular industry or group of industries to approximately the same extent that the Underlying Index is concentrated.

Thank you for your participation in Franklin FTSE Europe Hedged ETF. We look forward to serving your future investment needs.

Dina Ting, CFA

Hailey Harris

Joe Diederich

Basit Amin, CFA

Portfolio Management Team

 

 

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.

 

Top 10 Countries       
9/30/22       
      % of Total
Net Assets
 

United Kingdom

     20.3%  

Switzerland

     16.5%  

France

     16.3%  

Germany

     11.9%  

Netherlands

     9.1%  

Sweden

     5.0%  

Denmark

     4.0%  

Spain

     3.7%  

Italy

     3.3%  

Finland

     2.2%  

 

 

           
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FRANKLIN FTSE EUROPE HEDGED 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 (11/6/17), the NAV of the Fund is used as a proxy for the Market Price to calculate market returns. Market and NAV returns assume that dividends and capital gain distributions have been reinvested at Market Price and NAV.

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

     -11.84%        -12.39%        -11.84%        -12.39%  

1-Year

     -10.93%        -11.53%        -10.93%        -11.53%  

3-Year

     +8.83%        +8.59%        +2.86%        +2.78%  

Since Inception (11/2/17)

     +19.68%        +19.03%        +3.73%        +3.61%  

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 36 for Performance Summary footnotes.

 

           
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FRANKLIN FTSE EUROPE HEDGED ETF

PERFORMANCE SUMMARY

 

Distributions (4/1/22–9/30/22)

Net Investment
Income

$0.237130

Total Annual Operating Expenses5

 

  0.09%

All investments involve risks, including possible loss of principal. Stock prices fluctuate, sometimes rapidly and dramatically, due to factors affecting individual companies, particular industries or sectors, or general market conditions. Special risks are associated with foreign investing, including currency fluctuations, economic instability and political developments. Investments in securities of issuers in European countries involve risks that are specific to Europe, including certain legal, regulatory, political and economic risks. Because the Fund invests its assets primarily in companies in a specific country or region, the Fund may also experience greater volatility than a fund that is more broadly diversified geographically. Derivatives, including currency management strategies, involve costs and can create economic leverage in the portfolio which may result in significant volatility and cause the Fund to participate in losses on an amount that exceeds the Fund’s initial investment. The Fund may not achieve the anticipated benefits, and may realize losses when a counterparty fails to perform as promised. While the Fund’s currency hedging approach is designed to minimize the impact of currency fluctuations on Fund returns, it does not necessarily eliminate the Fund’s exposure to the currencies. The return of the currency-related derivatives will not perfectly offset the actual fluctuations between the currencies and the U.S. dollar. The Fund’s exposure to the currencies may not be hedged at all times. 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. The total annual operating expenses are sourced from the Fund’s prospectus available at the time of publication. Actual expenses may be higher and may impact portfolio returns.

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

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

4. Assumes reinvestment of distributions based on market price.

5. 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 FTSE EUROPE HEDGED 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     $ 881.60     $ 0.42     $ 1,024.62     $ 0.46       0.09

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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             37


Franklin FTSE France ETF

 

This semiannual report for Franklin FTSE France ETF covers the period ended September 30, 2022.

Your Fund’s Goal and Main Investments

The Fund seeks to provide investment results that closely correspond, before fees and expenses, to the performance of the FTSE France RIC Capped Index (the FTSE France Capped Index or the Underlying Index).1 Under normal market conditions, the Fund invests at least 80% of its assets in the component securities of the FTSE France Capped Index and in depositary receipts representing such securities.

Performance Overview

During the six-month period, the Fund posted cumulative total returns of -22.82% based on market price and -22.36% based on net asset value. In comparison, the FTSE France Capped Index posted a -22.52% total return for the same period.2 You can find more of the Fund’s performance data in the Performance Summary beginning on page 40.

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

Investment Strategy

The Fund, using a “passive” or indexing investment approach, seeks investment results that closely correspond, before fees and expenses, to the performance of the FTSE France Capped Index. The Fund may use either a replication strategy or representative sampling strategy. Under a replication strategy, the Fund will replicate the component securities of the Underlying Index as closely as possible (i.e., invest in all of the component securities in their respective weightings in the Underlying Index). However, it may not be possible or practicable to replicate the Underlying Index. In these circumstances, we may use a representative sampling strategy

Top 10 Sectors/Industries       
9/30/22       
      % of Total
Net Assets
 

Textiles, Apparel & Luxury Goods

     19.4%  

Oil, Gas & Consumable Fuels

     8.4%  

Aerospace & Defense

     7.0%  

Pharmaceuticals

     6.5%  

Personal Products

     6.0%  

Electrical Equipment

     5.9%  

Banks

     5.3%  

Chemicals

     4.8%  

Construction & Engineering

     3.9%  

IT Services

     3.5%  

whereby we will invest in what we believe to be a representative sample of the component securities of the Underlying Index, but may not track the Underlying Index with the same degree of accuracy as would an investment vehicle replicating the entire Underlying Index. Under the representative sampling technique, we will select securities that collectively have an investment profile similar to that of the Underlying Index, including securities that resemble those included in the Underlying Index in terms of risk factors, performance attributes and other characteristics, such as market capitalization and industry weightings. The Fund will concentrate its investments (i.e., hold 25% or more of its net assets) in a particular industry or group of industries to approximately the same extent that the Underlying Index is concentrated.

 

1. The FTSE France Capped Index is a free float-adjusted market capitalization-weighted index maintained and calculated by FTSE Russell with a capping methodology applied quarterly to issuer weights so that no single issuer of a component exceeds 25% of the index weight, and all issuers with weights above 5% do not cumulatively exceed 50% of the index’s weight. The FTSE France Capped Index is based on the FTSE France Index and is designed to measure the performance of French large- and mid-capitalization stocks.

2. Source: FactSet.

The index is unmanaged and includes reinvestment of any income or distributions (after the deduction of certain withholding taxes). It does not reflect any fees, expenses or sales charges. One cannot invest directly in an index.

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

The dollar value, number of shares or principal amount, and names of all portfolio holdings are listed in the Fund’s Schedule of Investments (SOI). The SOI begins on page 213.

 

           
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FRANKLIN FTSE FRANCE ETF

 

Top 10 Holdings       
9/30/22       

Company

Sector/Industry, Country

   % of Total
Net Assets
 
LVMH Moet Hennessy Louis Vuitton SE
Textiles, Apparel & Luxury Goods, France
     11.1%  
TotalEnergies SE
Oil, Gas & Consumable Fuels, France
     8.4%  
Sanofi
Pharmaceuticals, France
     6.2%  
L’Oreal SA
Personal Products, France
     6.0%  
Schneider Electric SE
Electrical Equipment, France
     4.6%  
Air Liquide SA
Chemicals, France
     4.4%  
Airbus SE
Aerospace & Defense, France
     3.6%  
BNP Paribas SA
Banks, France
     3.4%  
EssilorLuxottica SA
Textiles, Apparel & Luxury Goods, France
     3.1%  
AXA SA
Insurance, France
     3.0%  

 

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

Dina Ting, CFA

Hailey Harris

Joe Diederich

Basit Amin, CFA

Portfolio Management Team

 

 

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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Semiannual Report

             39


FRANKLIN FTSE FRANCE 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 (11/6/17), the NAV of the Fund is used as a proxy for the Market Price to calculate market returns. Market and NAV returns assume that dividends and capital gain distributions have been reinvested at Market Price and NAV.

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

     -22.36%        -22.82%        -22.36%        -22.82%  

1-Year

     -24.35%        -25.59%        -24.35%        -25.59%  

3-Year

     -4.94%        -6.62%        -1.68%        -2.26%  

Since Inception (11/2/17)

     -2.52%        -4.06%        -0.52%        -0.84%  

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 41 for Performance Summary footnotes.

 

           
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FRANKLIN FTSE FRANCE ETF

PERFORMANCE SUMMARY

 

Distributions (4/1/22–9/30/22)

Net Investment
Income

$0.454747

Total Annual Operating Expenses5

 

  0.09%

All investments involve risks, including possible loss of principal. Stock prices fluctuate, sometimes rapidly and dramatically, due to factors affecting individual companies, particular industries or sectors, or general market conditions. Special risks are associated with foreign investing, including currency fluctuations, economic instability and political developments. Investments in securities of French issuers involve risks that are specific to France, including certain legal, regulatory, political and economic risks. Because the Fund invests its assets primarily in companies in a specific country or region, the Fund may also experience greater volatility than a fund that is more broadly diversified geographically. As a non-diversified fund, the Fund may invest in a relatively small number of issuers which may negatively impact the Fund’s performance and result in greater fluctuation in the value of the Fund’s shares. 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. The total annual operating expenses are sourced from the Fund’s prospectus available at the time of publication. Actual expenses may be higher and may impact portfolio returns.

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

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

4. Assumes reinvestment of distributions based on market price.

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

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

 

           
franklintempleton.com  

Semiannual Report

             41


FRANKLIN FTSE FRANCE 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     $ 776.40     $ 0.40     $ 1,024.62     $ 0.46       0.09

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 FTSE Germany ETF

 

This semiannual report for Franklin FTSE Germany ETF covers the period ended September 30, 2022.

Your Fund’s Goal and Main Investments

The Fund seeks to provide investment results that closely correspond, before fees and expenses, to the performance of the FTSE Germany RIC Capped Index (the FTSE Germany Capped Index or the Underlying Index).1 Under normal market conditions, the Fund invests at least 80% of its assets in the component securities of the FTSE Germany Capped Index and in depositary receipts representing such securities.

Performance Overview

During the six-month period, the Fund posted cumulative total returns of -28.40% based on market price and -28.52% based on net asset value. In comparison, the FTSE Germany Capped Index posted a -28.78% total return for the same period.2 You can find more of the Fund’s performance data in the Performance Summary beginning on page 45.

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

Investment Strategy

The Fund, using a “passive” or indexing investment approach, seeks investment results that closely correspond, before fees and expenses, to the performance of the FTSE Germany Capped Index. The Fund may use either a replication strategy or representative sampling strategy. Under a replication strategy, the Fund will replicate the component securities of the Underlying Index as closely as possible (i.e., invest in all of the component securities in their respective weightings in the Underlying Index). However, it may not be possible or practicable to replicate the Underlying Index. In these circumstances, we may use a representative sampling

Top 10 Sectors/Industries       
9/30/22       
      % of Total
Net Assets
 

Insurance

     11.5%  

Automobiles

     10.3%  

Software

     9.9%  

Industrial Conglomerates

     8.5%  

Pharmaceuticals

     7.0%  

Diversified Telecommunication Services

     6.7%  

Chemicals

     6.6%  

Capital Markets

     4.8%  

Multi-Utilities

     4.2%  

Air Freight & Logistics

     3.1%  

strategy whereby we will invest in what we believe to be a representative sample of the component securities of the Underlying Index, but may not track the Underlying Index with the same degree of accuracy as would an investment vehicle replicating the entire Underlying Index. Under the representative sampling technique, we will select securities that collectively have an investment profile similar to that of the Underlying Index, including securities that resemble those included in the Underlying Index in terms of risk factors, performance attributes and other characteristics, such as market capitalization and industry weightings. The Fund will concentrate its investments (i.e., hold 25% or more of its net assets) in a particular industry or group of industries to approximately the same extent that the Underlying Index is concentrated.

 

1. The FTSE Germany Capped Index is a free float-adjusted market capitalization-weighted index maintained and calculated by FTSE Russell with a capping methodology applied quarterly to issuer weights so that no single issuer of a component exceeds 25% of the index weight, and all issuers with weights above 5% do not cumulatively exceed 50% of the index’s weight. The FTSE Germany Capped Index is based on the FTSE Germany Index and is designed to measure the performance of German large-and mid-capitalization stocks.

2. Source: FactSet.

The index is unmanaged and includes reinvestment of any income or distributions (after the deduction of certain withholding taxes). It does not reflect any fees, expenses or sales charges. One cannot invest directly in an index.

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

The dollar value, number of shares or principal amount, and names of all portfolio holdings are listed in the Fund’s Schedule of Investments (SOI). The SOI begins on page 216.

 

           
franklintempleton.com  

Semiannual Report

             43


FRANKLIN FTSE GERMANY ETF

 

Top 10 Holdings       
9/30/22       

Company

Sector/Industry, Country

   % of Total
Net Assets
 

SAP SE

Software, Germany

     9.6%  

Siemens AG

Industrial Conglomerates, Germany

     7.8%  

Allianz SE

Insurance, Germany

     6.8%  

Deutsche Telekom AG

Diversified Telecommunication Services, Germany

     6.1%  

Bayer AG

Pharmaceuticals, Germany

     4.8%  

Daimler AG

Automobiles, Germany

     4.5%  

BASF SE

Chemicals, Germany

     3.7%  

Muenchener Rueckversicherungs-Gesellschaft

Aktiengesellschaft in Muenchen

Insurance, Germany

     3.6%  

Deutsche Boerse AG

Capital Markets, Germany

     3.2%  

Deutsche Post AG

Air Freight & Logistics, Germany

     3.1%  

 

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

Dina Ting, CFA

Hailey Harris

Joe Diederich

Basit Amin, CFA

Portfolio Management Team

 

 

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 FTSE GERMANY 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 (11/6/17), the NAV of the Fund is used as a proxy for the Market Price to calculate market returns. Market and NAV returns assume that dividends and capital gain distributions have been reinvested at Market Price and NAV.

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

     -28.52%        -28.40%        -28.52%        -28.40%  

1-Year

     -37.25%        -37.86%        -37.25%        -37.86%  

3-Year

     -18.98%        -19.86%        -6.78%        -7.12%  

Since Inception (11/2/17)

     -30.44%        -31.17%        -7.13%        -7.33%  

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 46 for Performance Summary footnotes.

 

           
franklintempleton.com  

Semiannual Report

             45


FRANKLIN FTSE GERMANY ETF

PERFORMANCE SUMMARY

 

Distributions (4/1/22–9/30/22)

Net Investment
Income

$0.593319

Total Annual Operating Expenses5

 

 0.09%

All investments involve risks, including possible loss of principal. Stock prices fluctuate, sometimes rapidly and dramatically, due to factors affecting individual companies, particular industries or sectors, or general market conditions. Special risks are associated with foreign investing, including currency fluctuations, economic instability and political developments. Investments in securities of German issuers involve risks that are specific to Germany, including certain legal, regulatory, political and economic risks. Because the Fund invests its assets primarily in companies in a specific country or region, the Fund may also experience greater volatility than a fund that is more broadly diversified geographically. As a non-diversified fund, the Fund may invest in a relatively small number of issuers which may negatively impact the Fund’s performance and result in greater fluctuation in the value of the Fund’s shares. 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. The total annual operating expenses are sourced from the Fund’s prospectus available at the time of publication. Actual expenses may be higher and may impact portfolio returns.

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

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

4. Assumes reinvestment of distributions based on market price.

5. 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.

 

           
46             

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FRANKLIN FTSE GERMANY 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     $ 714.80     $ 0.39     $ 1,024.62     $ 0.46       0.09

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

             47


Franklin FTSE Hong Kong ETF

 

This semiannual report for Franklin FTSE Hong Kong ETF covers the period ended September 30, 2022.

Your Fund’s Goal and Main Investments

The Fund seeks to provide investment results that closely correspond, before fees and expenses, to the performance of the FTSE Hong Kong RIC Capped Index (the FTSE Hong Kong Capped Index or the Underlying Index).1 Under normal market conditions, the Fund invests at least 80% of its assets in the component securities of the FTSE Hong Kong Capped Index and in depositary receipts representing such securities.

Performance Overview

During the six-month period, the Fund posted cumulative total returns of -17.42% based on market price and -18.38% based on net asset value. In comparison, the FTSE Hong Kong Capped Index posted a -18.40% total return for the same period.2 You can find more of the Fund’s performance data in the Performance Summary beginning on page 50.

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

Investment Strategy

The Fund, using a “passive” or indexing investment approach, seeks investment results that closely correspond, before fees and expenses, to the performance of the FTSE Hong Kong Capped Index. The Fund may use either a replication strategy or representative sampling strategy. Under a replication strategy, the Fund will replicate the component securities of the Underlying Index as closely as possible (i.e., invest in all of the component securities in their respective weightings in the Underlying Index). However, it may not be possible or practicable to replicate the Underlying Index. In these circumstances, we may use a representative sampling

Top 10 Sectors/Industries       
9/30/22       
      % of Total
Net Assets
 

Real Estate Management & Development

     22.9%  

Insurance

     19.3%  

Capital Markets

     11.3%  

Banks

     6.3%  

Hotels, Restaurants & Leisure

     6.2%  

Electric Utilities

     5.7%  

Equity Real Estate Investment Trusts (REITs)

     4.0%  

Household Durables

     3.8%  

Industrial Conglomerates

     2.9%  

Gas Utilities

     2.4%  

strategy whereby we will invest in what we believe to be a representative sample of the component securities of the Underlying Index, but may not track the Underlying Index with the same degree of accuracy as would an investment vehicle replicating the entire Underlying Index. Under the representative sampling technique, we will select securities that collectively have an investment profile similar to that of the Underlying Index, including securities that resemble those included in the Underlying Index in terms of risk factors, performance attributes and other characteristics, such as market capitalization and industry weightings. The Fund will concentrate its investments (i.e., hold 25% or more of its net assets) in a particular industry or group of industries to approximately the same extent that the Underlying Index is concentrated.

 

1. The FTSE Hong Kong Capped Index is a free float-adjusted market capitalization-weighted index maintained and calculated by FTSE Russell with a capping methodology applied quarterly to issuer weights so that no single issuer of a component exceeds 25% of the index weight, and all issuers with weights above 5% do not cumulatively exceed 50% of the index’s weight. The FTSE Hong Kong Capped Index is based on the FTSE Hong Kong Index and is designed to measure the performance of Hong Kong large- and mid-capitalization stocks.

2. Source: FactSet.

The index is unmanaged and includes reinvestment of any income or distributions (after the deduction of certain withholding taxes). It does not reflect any fees, expenses or sales charges. One cannot invest directly in an index.

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

The dollar value, number of shares or principal amount, and names of all portfolio holdings are listed in the Fund’s Schedule of Investments (SOI). The SOI begins on page 219.

 

           
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FRANKLIN FTSE HONG KONG ETF

 

Top 10 Holdings       
9/30/22       
Company
Sector/Industry, Country
   % of Total
Net Assets
 

AIA Group Ltd., A

Insurance, Hong Kong

     19.3%  

Hong Kong Exchanges and Clearing Ltd.

Capital Markets, Hong Kong

     11.1%  

Sun Hung Kai Properties Ltd.

Real Estate Management & Development, Hong Kong

     4.0%  

Link REIT

Equity Real Estate Investment Trusts (REITs), Hong Kong

     3.8%  

CK Hutchison Holdings Ltd., A

Real Estate Management & Development, United Kingdom

     3.8%  

Galaxy Entertainment Group Ltd.

Hotels, Restaurants & Leisure, Macau

     3.3%  

Techtronic Industries Co. Ltd.

Household Durables, Hong Kong

     3.2%  

CLP Holdings Ltd.

Electric Utilities, Hong Kong

     3.2%  

BOC Hong Kong (Holdings) Ltd.

Banks, China

     3.1%  

CK Asset Holdings Ltd.

Real Estate Management & Development, Hong Kong

     3.0%  

 

Thank you for your participation in Franklin FTSE Hong Kong ETF. We look forward to serving your future investment needs.

Dina Ting, CFA

Hailey Harris

Joe Diederich

Basit Amin, CFA

Portfolio Management Team

 

 

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

             49


FRANKLIN FTSE HONG KONG 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 (11/6/17), the NAV of the Fund is used as a proxy for the Market Price to calculate market returns. Market and NAV returns assume that dividends and capital gain distributions have been reinvested at Market Price and NAV.

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

     -18.38%        -17.42%        -18.38%        -17.42%  

1-Year

     -24.31%        -23.26%        -24.31%        -23.26%  

3-Year

     -12.74%        -11.82%        -4.44%        -4.10%  

Since Inception (11/2/17)

     -15.10%        -14.11%        -3.28%        -3.05%  

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 51 for Performance Summary footnotes.

 

           
50             

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FRANKLIN FTSE HONG KONG ETF

PERFORMANCE SUMMARY

 

Distributions (4/1/22–9/30/22)

Net Investment
Income

$0.416010

Total Annual Operating Expenses5

 

  0.09%

All investments involve risks, including possible loss of principal. Stock prices fluctuate, sometimes rapidly and dramatically, due to factors affecting individual companies, particular industries or sectors, or general market conditions. Special risks are associated with foreign investing, including currency fluctuations, economic instability and political developments. Investments in securities of Hong Kong issuers involve risks that are specific to Hong Kong, including certain legal, regulatory, political and economic risks. Because the Fund invests its assets primarily in companies in a specific country or region, the Fund may also experience greater volatility than a fund that is more broadly diversified geographically. As a non-diversified fund, the Fund may invest in a relatively small number of issuers which may negatively impact the Fund’s performance and result in greater fluctuation in the value of the Fund’s shares. 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. The total annual operating expenses are sourced from the Fund’s prospectus available at the time of publication. Actual expenses may be higher and may impact portfolio returns.

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

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

4. Assumes reinvestment of distributions based on market price.

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

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

 

           
franklintempleton.com  

Semiannual Report

             51


FRANKLIN FTSE HONG KONG 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     $ 816.20     $ 0.41     $ 1,024.62     $ 0.46       0.09

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 FTSE India ETF

 

This semiannual report for Franklin FTSE India ETF covers the period ended September 30, 2022.

Your Fund’s Goal and Main Investments

The Fund seeks to provide investment results that closely correspond, before fees and expenses, to the performance of the FTSE India RIC Capped Index (the FTSE India Capped Index or the Underlying Index).1 Under normal market conditions, the Fund invests at least 80% of its assets in the component securities of the FTSE India Capped Index and in depositary receipts representing such securities.

Performance Overview

During the six-month period, the Fund posted cumulative total returns of -8.25% based on market price -8.04% based on net asset value. In comparison, the FTSE India Capped Index posted a -8.41% total return for the same period.2 You can find more of the Fund’s performance data in the Performance Summary beginning on page 55.

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

Investment Strategy

The Fund, using a “passive” or indexing investment approach, seeks investment results that closely correspond, before fees and expenses, to the performance of the FTSE India Capped Index. The Fund may use either a replication strategy or representative sampling strategy. Under a replication strategy, the Fund will replicate the component securities of the Underlying Index as closely as possible (i.e., invest in all of the component securities in their respective weightings in the Underlying Index). However, it may not be possible or practicable to replicate the Underlying Index. In these circumstances, we may use a representative sampling strategy whereby we will invest in what we believe to be a

Top 10 Sectors/Industries       
9/30/22       
      % of Total
Net Assets
 

IT Services

     13.6%  

Oil, Gas & Consumable Fuels

     12.1%  

Banks

     6.5%  

Automobiles

     5.5%  

Thrifts & Mortgage Finance

     5.1%  

Chemicals

     4.7%  

Pharmaceuticals

     4.2%  

Metals & Mining

     3.5%  

Consumer Finance

     3.4%  

Construction Materials

     2.9%  

representative sample of the component securities of the Underlying Index, but may not track the Underlying Index with the same degree of accuracy as would an investment vehicle replicating the entire Underlying Index. Under the representative sampling technique, we will select securities that collectively have an investment profile similar to that of the Underlying Index, including securities that resemble those included in the Underlying Index in terms of risk factors, performance attributes and other characteristics, such as market capitalization and industry weightings. The Fund will concentrate its investments (i.e., hold 25% or more of its net assets) in a particular industry or group of industries to approximately the same extent that the Underlying Index is concentrated.

 

1. The FTSE India Capped Index is a free float-adjusted market capitalization-weighted index maintained and calculated by FTSE Russell with a capping methodology applied quarterly to issuer weights so that no single issuer of a component exceeds 25% of the index weight, and all issuers with weights above 5% do not cumulatively exceed 50% of the index’s weight. The FTSE India Capped Index is based on the FTSE India Index and is designed to measure the performance of Indian large- and mid-capitalization stocks.

2. Source: FactSet.

The index is unmanaged and includes reinvestment of any income or distributions (after the deduction of certain withholding taxes). It does not reflect any fees, expenses or sales charges. One cannot invest directly in an index.

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

The dollar value, number of shares or principal amount, and names of all portfolio holdings are listed in the Fund’s Schedule of Investments (SOI). The SOI begins on page 223.

 

           
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FRANKLIN FTSE INDIA ETF

 

Top 10 Holdings       
9/30/22       
Company
Sector/Industry, Country
   % of Total
Net Assets
 

Reliance Industries Ltd.

Oil, Gas & Consumable Fuels, India

     9.8%  

Infosys Ltd.

IT Services, India

     6.2%  

Housing Development Finance Corp. Ltd.

Thrifts & Mortgage Finance, India

     4.9%  

Tata Consultancy Services Ltd.

IT Services, India

     3.8%  

Hindustan Unilever Ltd.

Household Products, India

     2.9%  

Bharti Airtel Ltd.

Wireless Telecommunication Services, India

     2.4%  

Bajaj Finance Ltd.

Consumer Finance, India

     2.1%  

Axis Bank Ltd.

Banks, India

     2.1%  

Asian Paints Ltd.

Chemicals, India

     1.9%  

ICICI Bank Ltd.

Banks, India

     1.7%  

 

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

Dina Ting, CFA

Hailey Harris

Joe Diederich

Basit Amin, CFA

Portfolio Management Team

 

 

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 FTSE INDIA 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 (2/9/18), the NAV of the Fund is used as a proxy for the Market Price to calculate market returns. Market and NAV returns assume that dividends and capital gain distributions have been reinvested at Market Price and NAV.

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

     -8.04%        -8.25%        -8.04%        -8.25%  

1-Year

     -10.19%        -10.79%        -10.19%        -10.79%  

3-Year

     +35.70%        +33.50%        +10.71%        +10.11%  

Since Inception (2/6/18)

     +27.67%        +26.68%        +5.40%        +5.22%  

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 56 for Performance Summary footnotes.

 

           
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FRANKLIN FTSE INDIA ETF

PERFORMANCE SUMMARY

 

Total Annual Operating Expenses5

 

  0.19%

All investments involve risks, including possible loss of principal. Stock prices fluctuate, sometimes rapidly and dramatically, due to factors affecting individual companies, particular industries or sectors, or general market conditions. Special risks are associated with foreign investing, including currency fluctuations, economic instability and political developments. Investments in developing markets involve heightened risks related to the same factors, in addition to those associated with these markets’ smaller size, lesser liquidity and lack of established legal, political, business and social frameworks to support securities markets. There are special risks associated with investments in India, including exposure to currency fluctuations, less liquidity, expropriation, confiscatory taxation, and exchange control regulations (including currency blockage). Investments in securities of Indian issuers involve risks that are specific to India, including certain legal, regulatory, political and economic risks. Because the Fund invests its assets primarily in companies in a specific country or region, the Fund may also experience greater volatility than a fund that is more broadly diversified geographically. As a non-diversified fund, the Fund may invest in a relatively small number of issuers which may negatively impact the Fund’s performance and result in greater fluctuation in the value of the Fund’s shares. 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. The total annual operating expenses are sourced from the Fund’s prospectus available at the time of publication. Actual expenses may be higher and may impact portfolio returns.

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

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

4. Assumes reinvestment of distributions based on market price.

5. 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 FTSE INDIA 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     $ 919.60     $ 0.91     $ 1,024.12     $ 0.96       0.19

1. Expenses are equal to the annualized expense ratio for the six-month period as indicated above—in the far right column—multiplied by the simple average account value over the period indicated, and then multiplied by 183/365 to reflect the one-half year period.

 

           
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Franklin FTSE Italy ETF

 

This semiannual report for Franklin FTSE Italy ETF covers the period ended September 30, 2022.

Your Fund’s Goal and Main Investments

The Fund seeks to provide investment results that closely correspond, before fees and expenses, to the performance of the FTSE Italy RIC Capped Index (the FTSE Italy Capped Index or the Underlying Index).1 Under normal market conditions, the Fund invests at least 80% of its assets in the component securities of the FTSE Italy Capped Index and in depositary receipts representing such securities.

Performance Overview

During the six-month period, the Fund posted cumulative total returns of -25.49% based on market price and -25.44% based on net asset value. In comparison, the FTSE Italy Capped Index posted a -25.64% total return for the same period.2 You can find more of the Fund’s performance data in the Performance Summary beginning on page 60.

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

Investment Strategy

The Fund, using a “passive” or indexing investment approach, seeks investment results that closely correspond, before fees and expenses, to the performance of the FTSE Italy Capped Index. The Fund may use either a replication strategy or representative sampling strategy. Under a replication strategy, the Fund will replicate the component securities of the Underlying Index as closely as possible (i.e., invest in all of the component securities in their respective weightings in the Underlying Index). However, it may not be possible or practicable to replicate the Underlying Index. In these circumstances, we may use a representative sampling strategy

Top 10 Sectors/Industries       
9/30/22       
      % of Total
Net Assets
 

Banks

     18.7%  

Automobiles

     14.8%  

Electric Utilities

     12.8%  

Oil, Gas & Consumable Fuels

     8.1%  

Insurance

     7.9%  

Machinery

     4.6%  

Gas Utilities

     4.0%  

Transportation Infrastructure

     3.7%  

IT Services

     3.6%  

Textiles, Apparel & Luxury Goods

     3.2%  

whereby we will invest in what we believe to be a representative sample of the component securities of the Underlying Index, but may not track the Underlying Index with the same degree of accuracy as would an investment vehicle replicating the entire Underlying Index. Under the representative sampling technique, we will select securities that collectively have an investment profile similar to that of the Underlying Index, including securities that resemble those included in the Underlying Index in terms of risk factors, performance attributes and other characteristics, such as market capitalization and industry weightings. The Fund will concentrate its investments (i.e., hold 25% or more of its net assets) in a particular industry or group of industries to approximately the same extent that the Underlying Index is concentrated.

 

1. The FTSE Italy Capped Index is a free float-adjusted market capitalization-weighted index maintained and calculated by FTSE Russell with a capping methodology applied quarterly to issuer weights so that no single issuer of a component exceeds 25% of the index weight, and all issuers with weights above 5% do not cumulatively exceed 50% of the index’s weight. The FTSE Italy Capped Index is based on the FTSE Italy Index and is designed to measure the performance of Italian large- and mid-capitalization stocks.

2. Source: FactSet.

The index is unmanaged and includes reinvestment of any income or distributions (after the deduction of certain withholding taxes). It does not reflect any fees, expenses or sales charges. One cannot invest directly in an index.

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

The dollar value, number of shares or principal amount, and names of all portfolio holdings are listed in the Fund’s Schedule of Investments (SOI). The SOI begins on page 228.

 

           
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FRANKLIN FTSE ITALY ETF

 

Top 10 Holdings       
9/30/22       
Company
Sector/Industry, Country
   % of Total
Net Assets
 

Enel SpA

Electric Utilities, Italy

     9.8%  

Intesa Sanpaolo SpA

Banks, Italy

     8.6%  

Eni SpA

Oil, Gas & Consumable Fuels, Italy

     8.1%  

Stellantis NV

Automobiles, United States

     7.6%  

Ferrari NV

Automobiles, Italy

     7.2%  

Assicurazioni Generali SpA

Insurance, Italy

     6.1%  

UniCredit SpA

Banks, Italy

     4.8%  

Atlantia SpA

Transportation Infrastructure, Italy

     3.7%  

CNH Industrial NV

Machinery, United Kingdom

     3.5%  

Moncler SpA

Textiles, Apparel & Luxury Goods, Italy

     3.2%  

 

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

Dina Ting, CFA

Hailey Harris

Joe Diederich

Basit Amin, CFA

Portfolio Management Team

 

 

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

             59


FRANKLIN FTSE ITALY 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 (11/6/17), the NAV of the Fund is used as a proxy for the Market Price to calculate market returns. Market and NAV returns assume that dividends and capital gain distributions have been reinvested at Market Price and NAV.

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

     -25.44%        -25.49%        -25.44%        -25.49%  

1-Year

     -29.60%        -30.12%        -29.60%        -30.12%  

3-Year

     -14.20%        -14.95%        -4.98%        -5.26%  

Since Inception (11/2/17)

     -17.61%        -18.34%        -3.87%        -4.04%  

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 61 for Performance Summary footnotes.

 

           
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FRANKLIN FTSE ITALY ETF

PERFORMANCE SUMMARY

 

Distributions (4/1/22–9/30/22)

Net Investment
Income

$0.571345

Total Annual Operating Expenses5

 

  0.09%

All investments involve risks, including possible loss of principal. Stock prices fluctuate, sometimes rapidly and dramatically, due to factors affecting individual companies, particular industries or sectors, or general market conditions. Special risks are associated with foreign investing, including currency fluctuations, economic instability and political developments. Investments in securities of Italian issuers involve risks that are specific to Italy, including certain legal, regulatory, political and economic risks. Because the Fund invests its assets primarily in companies in a specific country or region, the Fund may also experience greater volatility than a fund that is more broadly diversified geographically. As a non-diversified fund, the Fund may invest in a relatively small number of issuers which may negatively impact the Fund’s performance and result in greater fluctuation in the value of the Fund’s shares. 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. The total annual operating expenses are sourced from the Fund’s prospectus available at the time of publication. Actual expenses may be higher and may impact portfolio returns.

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

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

4. Assumes reinvestment of distributions based on market price.

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

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

 

           
franklintempleton.com  

Semiannual Report

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FRANKLIN FTSE ITALY 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     $ 745.60     $ 0.39     $ 1,024.62     $ 0.46       0.09

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 FTSE Japan ETF

 

This semiannual report for Franklin FTSE Japan ETF covers the period ended September 30, 2022.

Your Fund’s Goal and Main Investments

The Fund seeks to provide investment results that closely correspond, before fees and expenses, to the performance of the FTSE Japan RIC Capped Index (the FTSE Japan Capped Index or the Underlying Index).1 Under normal market conditions, the Fund invests at least 80% of its assets in the component securities of the FTSE Japan Capped Index and in depositary receipts representing such securities.

Performance Overview

During the six-month period, the Fund posted cumulative total returns of -19.11% based on market price and -20.31% based on net asset value. In comparison, the FTSE Japan Capped Index posted a -20.37% total return for the same period.2 You can find more of the Fund’s performance data in the Performance Summary beginning on page 65.

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

Investment Strategy

The Fund, using a “passive” or indexing investment approach, seeks investment results that closely correspond, before fees and expenses, to the performance of the FTSE Japan Capped Index. The Fund may use either a replication strategy or representative sampling strategy. Under a replication strategy, the Fund will replicate the component securities of the Underlying Index as closely as possible (i.e., invest in all of the component securities in their respective weightings in the Underlying Index). However, it may not be possible or practicable to replicate the Underlying Index. In these circumstances, we may use a representative sampling strategy

Top 10 Sectors/Industries       
9/30/22       
      % of Total
Net Assets
 

Automobiles

     7.4%  

Pharmaceuticals

     6.2%  

Banks

     5.1%  

Electronic Equipment, Instruments & Components

     5.0%  

Machinery

     4.8%  

Trading Companies & Distributors

     4.3%  

Chemicals

     4.0%  

Household Durables

     3.9%  

Wireless Telecommunication Services

     3.4%  

Road & Rail

     3.2%  

whereby we will invest in what we believe to be a representative sample of the component securities of the Underlying Index, but may not track the Underlying Index with the same degree of accuracy as would an investment vehicle replicating the entire Underlying Index. Under the representative sampling technique, we will select securities that collectively have an investment profile similar to that of the Underlying Index, including securities that resemble those included in the Underlying Index in terms of risk factors, performance attributes and other characteristics, such as market capitalization and industry weightings. The Fund will concentrate its investments (i.e., hold 25% or more of its net assets) in a particular industry or group of industries to approximately the same extent that the Underlying Index is concentrated.

 

1. The FTSE Japan Capped Index is a free float-adjusted market capitalization-weighted index maintained and calculated by FTSE Russell with a capping methodology applied quarterly to issuer weights so that no single issuer of a component exceeds 25% of the index weight, and all issuers with weights above 5% do not cumulatively exceed 50% of the index’s weight. The FTSE Japan Capped Index is based on the FTSE Japan Index and is designed to measure the performance of Japanese large- and mid-capitalization stocks.

2. Source: FactSet.

The index is unmanaged and includes reinvestment of any income or distributions (after the deduction of certain withholding taxes). It does not reflect any fees, expenses or sales charges. One cannot invest directly in an index.

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

The dollar value, number of shares or principal amount, and names of all portfolio holdings are listed in the Fund’s Schedule of Investments (SOI). The SOI begins on page 230.

 

           
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FRANKLIN FTSE JAPAN ETF

 

Top 10 Holdings       
9/30/22       
Company
Sector/Industry, Country
   % of Total
Net Assets
 

Toyota Motor Corp.

Automobiles, Japan

     4.8%  

Sony Corp.

Household Durables, Japan

     2.4%  

Keyence Corp.

Electronic Equipment, Instruments & Components, Japan

     2.0%  

Mitsubishi UFJ Financial Group Inc.

Banks, Japan

     1.7%  

Daiichi Sankyo Co. Ltd.

Pharmaceuticals, Japan

     1.6%  

KDDI Corp.

Wireless Telecommunication Services, Japan

     1.5%  

Nintendo Co. Ltd.

Entertainment, Japan

     1.3%  

Daikin Industries Ltd.

Building Products, Japan

     1.3%  

Recruit Holdings Co. Ltd.

Professional Services, Japan

     1.2%  

Takeda Pharmaceutical Co. Ltd.

Pharmaceuticals, Japan

     1.2%  

 

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

Dina Ting, CFA

Hailey Harris

Joe Diederich

Basit Amin, CFA

Portfolio Management Team

 

 

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 FTSE JAPAN 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 (11/6/17), the NAV of the Fund is used as a proxy for the Market Price to calculate market returns. Market and NAV returns assume that dividends and capital gain distributions have been reinvested at Market Price and NAV.

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

     -20.31%        -19.11%        -20.31%        -19.11%  

1-Year

     -28.77%        -28.28%        -28.77%        -28.28%  

3-Year

     -7.08%        -7.47%        -2.42%        -2.56%  

Since Inception (11/2/17)

     -8.77%        -8.46%        -1.85%        -1.78%  

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 66 for Performance Summary footnotes.

 

           
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FRANKLIN FTSE JAPAN ETF

PERFORMANCE SUMMARY

 

Distributions (4/1/22–9/30/22)

Net Investment
Income

$0.255286

Total Annual Operating Expenses5

 

  0.09%

All investments involve risks, including possible loss of principal. Stock prices fluctuate, sometimes rapidly and dramatically, due to factors affecting individual companies, particular industries or sectors, or general market conditions. Special risks are associated with foreign investing, including currency fluctuations, economic instability and political developments. Investments in securities of Japanese issuers involve risks that are specific to Japan, including certain legal, regulatory, political and economic risks. Because the Fund invests its assets primarily in companies in a specific country or region, the Fund may also experience greater volatility than a fund that is more broadly diversified geographically. 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. The total annual operating expenses are sourced from the Fund’s prospectus available at the time of publication. Actual expenses may be higher and may impact portfolio returns.

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

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

4. Assumes reinvestment of distributions based on market price.

5. 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 FTSE JAPAN 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     $ 796.90     $ 0.41     $ 1,024.62     $ 0.46       0.09

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 FTSE Japan Hedged ETF

 

This semiannual report for Franklin FTSE Japan Hedged ETF covers the period ended September 30, 2022.

Your Fund’s Goal and Main Investments

The Fund seeks to provide investment results that closely correspond, before fees and expenses, to the performance of the FTSE Japan RIC Capped Hedged to USD Index (the FTSE Japan Capped Hedged Index or the Underlying Index).1 Under normal market conditions, the Fund invests at least 80% of its assets in the component securities of the FTSE Japan Capped Hedged Index and in depositary receipts representing such securities, including indirectly through Franklin FTSE Japan ETF (Underlying Fund).

Performance Overview

During the six-month period, the Fund posted cumulative total returns of -2.44% based on market price -3.50% based on net asset value. In comparison, the FTSE Japan Capped Hedged Index posted a -3.58% total return for the same period.2 You can find more of the Fund’s performance data in the Performance Summary beginning on page 70.

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

Investment Strategy

The Fund, using a “passive” or indexing investment approach, seeks investment results that closely correspond, before fees and expenses, to the performance of the FTSE Japan Capped Hedged Index. The Fund may use either a replication strategy or representative sampling strategy. Under a replication strategy, the Fund will replicate the component securities of the Underlying Index as closely as possible (i.e., invest in all of the component securities in their

Top 10 Sectors/Industries       
9/30/22       
      % of Total
Net Assets
 

Automobiles

     7.3%  

Pharmaceuticals

     6.1%  

Banks

     5.1%  

Electronic Equipment, Instruments & Components

     5.0%  

Machinery

     4.8%  

Trading Companies & Distributors

     4.3%  

Chemicals

     4.0%  

Household Durables

     3.8%  

Wireless Telecommunication Services

     3.4%  

Road & Rail

     3.2%  

respective weightings in the Underlying Index). However, it may not be possible or practicable to replicate the Underlying Index. In these circumstances, we may use a representative sampling strategy whereby we will invest in what we believe to be a representative sample of the component securities of the Underlying Index, but may not track the Underlying Index with the same degree of accuracy as would an investment vehicle replicating the entire Underlying Index. Under the representative sampling technique, we will select securities that collectively have an investment profile similar to that of the Underlying Index, including securities that resemble those included in the Underlying Index in terms of risk factors, performance attributes and other characteristics, such as market capitalization and industry weightings. We intend to enter into monthly foreign currency forward contracts and/or currency futures contracts designed to offset the Fund’s exposure to the Japanese yen, in order to replicate the hedge impact incorporated in the calculation of the Underlying Index. The Fund’s exposure to foreign currency forward contracts and currency futures contracts is based on the aggregate exposure of the Fund to the Japanese yen.

 

1. The FTSE Japan Capped Hedged Index is a free float-adjusted market capitalization-weighted index maintained and calculated by FTSE Russell with a capping methodology applied quarterly to issuer weights so that no single issuer of a component exceeds 25% of the index weight, and all issuers with weights above 5% do not cumulatively exceed 50% of the index’s weight. The FTSE Japan Capped Hedged Index is based on the FTSE Japan Hedged to USD Index and is designed to measure the performance of Japanese large- and mid-capitalization stocks. The FTSE Japan Capped Hedged Index incorporates a hedge against fluctuations of the Japanese yen by reflecting the impact of rolling monthly currency forward contracts on the Japanese yen.

2. Source: FactSet.

The index is unmanaged and includes reinvestment of any income or distributions (after the deduction of certain withholding taxes). It does not reflect any fees, expenses or sales charges. One cannot invest directly in an index.

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

The dollar value, number of shares or principal amount, and names of all portfolio holdings are listed in the Fund’s Schedule of Investments (SOI). The SOI begins on page 241.

 

           
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FRANKLIN FTSE JAPAN HEDGED ETF

 

Top 10 Holdings  
9/30/22  
Company
Sector/Industry, Country
   % of Total
Net Assets
 
Toyota Motor Corp.
Automobiles, Japan
     4.8%  
Sony Corp.
Household Durables, Japan
     2.4%  
Keyence Corp.
Electronic Equipment, Instruments & Components, Japan
     2.0%  
Mitsubishi UFJ Financial Group Inc.
Banks, Japan
     1.6%  
Daiichi Sankyo Co. Ltd.
Pharmaceuticals, Japan
     1.6%  
KDDI Corp.
Wireless Telecommunication Services, Japan
     1.5%  
Nintendo Co. Ltd.
Entertainment, Japan
     1.3%  
Daikin Industries Ltd.
Building Products, Japan
     1.3%  
Recruit Holdings Co. Ltd.
Professional Services, Japan
     1.2%  
Takeda Pharmaceutical Co. Ltd.
Pharmaceuticals, Japan
     1.2%  

 

The Fund will concentrate its investments (i.e., hold 25% or more of its net assets) in a particular industry or group of industries to approximately the same extent that the Underlying Index is concentrated.

Thank you for your participation in Franklin FTSE Japan Hedged ETF. We look forward to serving your future investment needs.

Dina Ting, CFA

Hailey Harris

Joe Diederich

Basit Amin, CFA

Portfolio Management Team

 

 

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

             69


FRANKLIN FTSE JAPAN HEDGED 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 (11/6/17), the NAV of the Fund is used as a proxy for the Market Price to calculate market returns. Market and NAV returns assume that dividends and capital gain distributions have been reinvested at Market Price and NAV.

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

     -3.50%        -2.44%        -3.50%        -2.44%  

1-Year

     -6.12%        -5.47%        -6.12%        -5.47%  

3-Year

     +27.90%        +27.23%        +8.55%        +8.36%  

Since Inception (11/2/17)

     +23.40%        +23.99%        +4.38%        +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 page 71 for Performance Summary footnotes.

 

           
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FRANKLIN FTSE JAPAN HEDGED ETF

PERFORMANCE SUMMARY

 

Distributions (4/1/22–9/30/22)

Net Investment
Income

$0.924931

Total Annual Operating Expenses5

 

  0.09%

All investments involve risks, including possible loss of principal. Stock prices fluctuate, sometimes rapidly and dramatically, due to factors affecting individual companies, particular industries or sectors, or general market conditions. Special risks are associated with foreign investing, including currency fluctuations, economic instability and political developments. Investments in securities of Japanese issuers involve risks that are specific to Japan, including certain legal, regulatory, political and economic risks. Because the Fund invests its assets primarily in companies in a specific country or region, the Fund may also experience greater volatility than a fund that is more broadly diversified geographically. Derivatives, including currency management strategies, involve costs and can create economic leverage in the portfolio, which may result in significant volatility and cause the Fund to participate in losses on an amount that exceeds the Fund’s initial investment. The Fund may not achieve the anticipated benefits, and may realize losses when a counterparty fails to perform as promised. While the Fund’s currency hedging approach is designed to minimize the impact of currency fluctuations on Fund returns, it does not necessarily eliminate the Fund’s exposure to the currencies. The return of currency-related derivatives will not perfectly offset the actual fluctuations between the currencies and the U.S. dollar. The Fund’s exposure to the currencies may not be hedged at all times. 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. The total annual operating expenses are sourced from the Fund’s prospectus available at the time of publication. Actual expenses may be higher and may impact portfolio returns.

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

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

4. Assumes reinvestment of distributions based on market price.

5. 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 FTSE JAPAN HEDGED 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       $965.00     $ 0.44     $ 1,024.62     $ 0.46       0.09

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 FTSE Latin America ETF

 

This semiannual report for Franklin FTSE Latin America ETF covers the period ended September 30, 2022.

Your Fund’s Goal and Main Investments

The Fund seeks to provide investment results that closely correspond, before fees and expenses, to the performance of the FTSE Latin America RIC Capped Index (the FTSE Latin America Capped Index or the Underlying Index).1 Under normal market conditions, the Fund invests at least 80% of its assets in the component securities of the FTSE Latin America Capped Index and in depositary receipts representing such securities.

Performance Overview

During the six-month period, the Fund posted cumulative total returns of -19.04% based on market price and -18.91% based on net asset value. In comparison, the FTSE Latin America Capped Index posted a -18.81% total return for the same period.2 You can find more of the Fund’s performance data in the Performance Summary beginning on page 75.

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

Investment Strategy

The Fund, using a “passive” or indexing investment approach, seeks investment results that closely correspond, before fees and expenses, to the performance of the FTSE Latin America Capped Index. The Fund may use either a replication strategy or representative sampling strategy. Under a replication strategy, the Fund will replicate the component securities of the Underlying Index as closely as possible (i.e., invest in all of the component securities in their respective weightings in the Underlying Index). However, it

Top 10 Sectors/Industries       
9/30/22       
      % of Total
Net Assets
 

Banks

     19.1%  

Metals & Mining

     13.0%  

Oil, Gas & Consumable Fuels

     12.1%  

Electric Utilities

     5.9%  

Beverages

     5.7%  

Food & Staples Retailing

     5.4%  

Wireless Telecommunication Services

     4.5%  

Food Products

     3.8%  

Capital Markets

     3.5%  

Chemicals

     3.2%  

may not be possible or practicable to replicate the Underlying Index. In these circumstances, we may use a representative sampling strategy whereby we will invest in what we believe to be a representative sample of the component securities of the Underlying Index, but may not track the Underlying Index with the same degree of accuracy as would an investment vehicle replicating the entire Underlying Index. Under the representative sampling technique, we will select securities that collectively have an investment profile similar to that of the Underlying Index, including securities that resemble those included in the Underlying Index in terms of risk factors, performance attributes and other characteristics, such as market capitalization and industry weightings. The Fund will concentrate its investments (i.e., hold 25% or more of its net assets) in a particular industry or group of industries to approximately the same extent that the Underlying Index is concentrated.

 

1. The FTSE Latin America Capped Index is a free float-adjusted market capitalization-weighted index maintained and calculated by FTSE Russell with a capping methodology applied quarterly to issuer weights so that no single issuer of a component exceeds 25% of the index weight, and all issuers with weights above 5% do not cumulatively exceed 50% of the index’s weight. The FTSE Latin America Capped Index is based on the FTSE Latin America Index and is designed to measure the performance of Latin American large- and mid-capitalization stocks.

2. Source: FactSet.

The index is unmanaged and includes reinvestment of any income or distributions (after the deduction of certain withholding taxes). It does not reflect any fees, expenses or sales charges. One cannot invest directly in an index.

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

The dollar value, number of shares or principal amount, and names of all portfolio holdings are listed in the Fund’s Schedule of Investments (SOI). The SOI begins on page 252.

 

           
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FRANKLIN FTSE LATIN AMERICA ETF

 

Top 10 Holdings  
9/30/22  

Company

Sector/Industry, Country

  % of Total
Net Assets
 
Petroleo Brasileiro SA, 38.601%, pfd.
Oil, Gas & Consumable Fuels, Brazil
    9.4%  
Vale SA
Metals & Mining, Brazil
    9.1%  
Itau Unibanco Holding SA, 2.937%, pfd.
Banks, Brazil
    4.8%  
America Movil SAB de CV
Wireless Telecommunication Services, Mexico
    4.1%  
Banco Bradesco SA, 3.165%, pfd.
Banks, Brazil
    4.1%  
Grupo Financiero Banorte SAB de CV
Banks, Mexico
    3.2%  
Wal-Mart de Mexico SAB de CV, V
Food & Staples Retailing, Mexico
    3.2%  
B3 SA – Brasil Bolsa Balcao
Capital Markets, Brazil
    2.6%  
Sociedad Quimica y Minera de Chile SA, 0.005%, pfd., B
Chemicals, Chile
    2.5%  
Ambev SA
Beverages, Brazil
    2.2%  
Country Composition  
9/30/22  
      % of Total
Net Assets
 

Brazil

     63.9%  

Mexico

     25.9%  

Chile

     6.7%  

Colombia

     1.8%  

United States

     1.3%  

Thank you for your participation in Franklin FTSE Latin America ETF. We look forward to serving your future investment needs.

Dina Ting, CFA

Hailey Harris

Joe Diederich

Basit Amin, CFA

Portfolio Management Team

 

 

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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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 (10/11/18), the NAV of the Fund is used as a proxy for the Market Price to calculate market returns. Market and NAV returns assume that dividends and capital gain distributions have been reinvested at Market Price and NAV.

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

     -18.91%        -19.04%        -18.91%        -19.04%  

1-Year

     -1.12%        -1.39%        -1.12%        -1.39%  

3-Year

     -11.95%        -12.25%        -4.15%        -4.26%  

Since Inception (10/9/18)

     -10.61%        -10.55%        -2.78%        -2.77%  

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 76 for Performance Summary footnotes.

 

           
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FRANKLIN FTSE LATIN AMERICA ETF

PERFORMANCE SUMMARY

 

Distributions (4/1/22–9/30/22)

Net Investment
Income

$0.799003

Total Annual Operating Expenses5

 

  0.19%

All investments involve risks, including possible loss of principal. Stock prices fluctuate, sometimes rapidly and dramatically, due to factors affecting individual companies, particular industries or sectors, or general market conditions. Special risks are associated with foreign investing, including currency fluctuations, economic instability and political developments. Investments in developing markets involve heightened risks related to the same factors, in addition to those associated with these markets’ smaller size, lesser liquidity and lack of established legal, political, business and social frameworks to support securities markets. Investments in securities of issuers in Latin American countries involve risks that are specific to Latin America, including certain legal, regulatory, political and economic risks. Because the Fund invests its assets primarily in companies in a specific country or region, the Fund may also experience greater volatility than a fund that is more broadly diversified geographically. 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. The total annual operating expenses are sourced from the Fund’s prospectus available at the time of publication. Actual expenses may be higher and may impact portfolio returns.

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

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

4. Assumes reinvestment of distributions based on market price.

5. 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 FTSE LATIN AMERICA 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     $ 810.90     $ 0.86     $ 1,024.12     $ 0.96       0.19

1. Expenses are equal to the annualized expense ratio for the six-month period as indicated above—in the far right column—multiplied by the simple average account value over the period indicated, and then multiplied by 183/365 to reflect the one-half year period.

 

           
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Franklin FTSE Mexico ETF

 

This semiannual report for Franklin FTSE Mexico ETF covers the period ended September 30, 2022.

Your Fund’s Goal and Main Investments

The Fund seeks to provide investment results that closely correspond, before fees and expenses, to the performance of the FTSE Mexico RIC Capped Index (the FTSE Mexico Capped Index or the Underlying Index).1 Under normal market conditions, the Fund invests at least 80% of its assets in the component securities of the FTSE Mexico Capped Index and in depositary receipts representing such securities.

Performance Overview

During the six-month period, the Fund posted cumulative total returns of -18.50% based on market price and -18.41% based on net asset value. In comparison, the FTSE Mexico Capped Index posted a -18.39% total return for the same period.2 You can find more of the Fund’s performance data in the Performance Summary beginning on page 80.

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

Investment Strategy

The Fund, using a “passive” or indexing investment approach, seeks investment results that closely correspond, before fees and expenses, to the performance of the FTSE Mexico Capped Index. The Fund may use either a replication strategy or representative sampling strategy. Under a replication strategy, the Fund will replicate the component securities of the Underlying Index as closely as possible (i.e., invest in all of the component securities in their respective weightings in the Underlying Index). However, it may not be possible or practicable to replicate the Underlying Index. In these circumstances, we may use a representative sampling strategy

Top 10 Sectors/Industries       
9/30/22       
      % of Total
Net Assets
 

Banks

     18.8%  

Wireless Telecommunication Services

     13.3%  

Beverages

     13.1%  

Food & Staples Retailing

     11.6%  

Transportation Infrastructure

     8.8%  

Metals & Mining

     7.4%  

Food Products

     6.7%  

Construction Materials

     4.2%  

Equity Real Estate Investment Trusts (REITs)

     4.0%  

Industrial Conglomerates

     3.4%  

whereby we will invest in what we believe to be a representative sample of the component securities of the Underlying Index, but may not track the Underlying Index with the same degree of accuracy as would an investment vehicle replicating the entire Underlying Index. Under the representative sampling technique, we will select securities that collectively have an investment profile similar to that of the Underlying Index, including securities that resemble those included in the Underlying Index in terms of risk factors, performance attributes and other characteristics, such as market capitalization and industry weightings. The Fund will concentrate its investments (i.e., hold 25% or more of its net assets) in a particular industry or group of industries to approximately the same extent that the Underlying Index is concentrated.

 

1. The FTSE Mexico Capped Index is a free float-adjusted market capitalization-weighted index maintained and calculated by FTSE Russell with a capping methodology applied quarterly to issuer weights so that no single issuer of a component exceeds 25% of the index weight, and all issuers with weights above 5% do not cumulatively exceed 50% of the index’s weight. The FTSE Mexico Capped Index is based on the FTSE Mexico Index and is designed to measure the performance of Mexican large- and mid-capitalization stocks.

2. Source: FactSet.

The index is unmanaged and includes reinvestment of any income or distributions (after the deduction of certain withholding taxes). It does not reflect any fees, expenses or sales charges. One cannot invest directly in an index.

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

The dollar value, number of shares or principal amount, and names of all portfolio holdings are listed in the Fund’s Schedule of Investments (SOI). The SOI begins on page 257.

 

           
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Top 10 Holdings       
9/30/22       

Company

Sector/Industry, Country

   % of Total
Net Assets
 

America Movil SAB de CV

Wireless Telecommunication Services, Mexico

     13.3%  

Grupo Financiero Banorte SAB de CV

Banks, Mexico

     10.7%  

Wal-Mart de Mexico SAB de CV, V

Food & Staples Retailing, Mexico

     10.4%  
Fomento Economico Mexicano SAB de CV Beverages, Mexico      7.0%  

Grupo Mexico SAB de CV, B

Metals & Mining, Mexico

     6.4%  

Grupo Bimbo SAB de CV

Food Products, Mexico

     4.6%  

Cemex SAB de CV

Construction Materials, Mexico

     3.4%  

Grupo Aeroportuario del Pacifico SAB de CV

Transportation Infrastructure, Mexico

     3.1%  

Grupo Aeroportuario del Sureste SAB de CV

Transportation Infrastructure, Mexico

     3.0%  

Grupo Elektra SAB de CV

Banks, Mexico

     2.8%  

 

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

Dina Ting, CFA

Hailey Harris

Joe Diederich

Basit Amin, CFA

Portfolio Management Team

 

 

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 FTSE MEXICO 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 (11/7/17), the NAV of the Fund is used as a proxy for the Market Price to calculate market returns. Market and NAV returns assume that dividends and capital gain distributions have been reinvested at Market Price and NAV.

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

     -18.41%        -18.50%        -18.41%        -18.50%  

1-Year

     -5.51%        -5.03%        -5.51%        -5.03%  

3-Year

     +10.38%        +10.12%        +3.35%        +3.27%  

Since Inception (11/3/17)

     +0.31%        +0.39%        +0.06%        +0.08%  

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 81 for Performance Summary footnotes.

 

           
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PERFORMANCE SUMMARY

 

Distributions (4/1/22–9/30/22)

Net Investment
Income

$0.339975

Total Annual Operating Expenses5

 

  0.19%

All investments involve risks, including possible loss of principal. Stock prices fluctuate, sometimes rapidly and dramatically, due to factors affecting individual companies, particular industries or sectors, or general market conditions. Special risks are associated with foreign investing, including currency fluctuations, economic instability and political developments. Investments in developing markets involve heightened risks related to the same factors, in addition to those associated with these markets’ smaller size, lesser liquidity and lack of established legal, political, business and social frameworks to support securities markets. Investments in securities of Mexican issuers involve risks that are specific to Mexico, including certain legal, regulatory, political and economic risks. Because the Fund invests its assets primarily in companies in a specific country or region, the Fund may also experience greater volatility than a fund that is more broadly diversified geographically. As a non-diversified fund, the Fund may invest in a relatively small number of issuers which may negatively impact the Fund’s performance and result in greater fluctuation in the value of the Fund’s shares. 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. The total annual operating expenses are sourced from the Fund’s prospectus available at the time of publication. Actual expenses may be higher and may impact portfolio returns.

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

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

4. Assumes reinvestment of distributions based on market price.

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

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

 

           
franklintempleton.com  

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FRANKLIN FTSE MEXICO 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     $ 815.90     $ 0.86     $ 1,024.12     $ 0.96       0.19

1. Expenses are equal to the annualized expense ratio for the six-month period as indicated above—in the far right column—multiplied by the simple average account value over the period indicated, and then multiplied by 183/365 to reflect the one-half year period.

 

           
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Franklin FTSE Russia ETF

 

This semiannual report for Franklin FTSE Russia ETF covers the period ended September 30, 2022. Effective March 1, 2022, the Fund suspended new creations of its shares effective until further notice in light of ongoing issues related to Russia’s invasion of Ukraine. In addition, effective March 4, 2022, NYSE Arca, Inc., the Fund’s primary listing exchange, halted trading of the Fund. Since trading in the Fund’s shares is halted, the Fund no longer has a daily closing price, and a premium/discount to net asset value (NAV) cannot be calculated. Additionally, the value and liquidity of Russian securities experienced significant declines due to the circumstances related to the conflict. The Russian securities markets did not open for trading on February 28, 2022, and were closed for a period of time before reopening on March 24, 2022, but significant trading limitations have remained. As a result, the Fund fair valued all Russian equity securities at $0 (as of September 30, 2022, such securities continue to be fair valued at $0). Accordingly, as of September 30, 2022, the Fund’s portfolio was comprised of Russian equity securities (fair valued at $0 as noted above) and cash. In addition, FTSE Russell has suspended rebalancings/reconstitutions of the FTSE Russia RIC Capped Index, the Fund’s underlying index, including application of the capping methodology, as well as other index policies until further notice. It is impossible to predict when, or if, these circumstances may change. During this time, including while it is primarily holding cash, the Fund will not meet its investment goal and will experience significant tracking error. Further, if the Fund’s shares resume trading on NYSE Arca, Inc., the Fund may experience significant premiums or discounts to the Fund’s NAV and wider bid-ask spreads. Please see below for further discussion of the impact of the Russian/Ukrainian conflict on the Fund as well as related risks.

Top 10 Sectors/Industries     
9/30/22     

This disclosure has not been included as all securities of the Fund are valued at zero as of September 30, 2022. As noted, due to the circumstances surrounding the Russian invasion of Ukraine, the Fund is primarily holding cash. Please refer to Note 6 under Notes to Financial Statements.

 

Top 10 Holdings     
9/30/22     

This disclosure has not been included as all securities of the Fund are valued at zero as of September 30, 2022. As noted, due to the circumstances surrounding the Russian invasion of Ukraine, the Fund is primarily holding cash. Please refer to Note 6 under Notes to Financial Statements.

Your Fund’s Goal and Main Investments

The Fund seeks to provide investment results that closely correspond, before fees and expenses, to the performance of the FTSE Russia RIC Capped Index (the FTSE Russia Capped Index or the Underlying Index).1 Under normal market conditions, the Fund invests at least 80% of its assets in the component securities of the FTSE Russia Capped Index and in depositary receipts representing such securities.

Performance Overview

During the six-month period ended September 30, 2022, the Fund’s portfolio was comprised of Russian equity securities (fair valued at $0 as noted above) and cash. During that period, the Fund’s NAV per share increased from $0.003378 as of March 31, 2022 to $0.005827 as of September 30, 2022. In comparison, the FTSE Russia Capped Index posted a -8.71% total return for the same period.2 You can find more of the Fund’s performance data in the Performance Summary beginning on page 85.

 

1. The FTSE Russia Capped Index is a free float-adjusted market capitalization-weighted index maintained and calculated by FTSE Russell with a capping methodology applied quarterly to issuer weights so that no single issuer of a component exceeds 25% of the index weight, and all issuers with weights above 5% do not cumulatively exceed 50% of the index’s weight. The FTSE Russia Capped Index is based on the FTSE Russia Index and is designed to measure the performance of Russian large- and mid-capitalization stocks. FTSE Russell has suspended rebalancings/reconstitutions of the FTSE Russia Capped Index, including application of the capping methodology, as well as other index policies until further notice.

2. Source: FactSet. The Fund’s returns based on net asset value include the Fund’s valuation of its Russian securities based on fair value prices. The value of the FTSE Russia Capped Index, on the other hand, is based on securities’ last closing prices on local foreign markets (i.e., the value of the FTSE Russia Capped Index is not based on fair value prices). With regards to the Fund’s returns based on market price, the Fund suspended new creations of its shares effective March 1, 2022, and NYSE Arca, Inc. halted trading of the Fund effective March 4, 2022. Therefore, from March 4, 2022, through September 30, 2022, the Fund did not have a daily closing market price.

The index is unmanaged and includes reinvestment of any income or distributions (after the deduction of certain withholding taxes). It does not reflect any fees, expenses or sales charges. One cannot invest directly in an index.

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

The dollar value, number of shares or principal amount, and names of all portfolio holdings are listed in the Fund’s Schedule of Investments (SOI). The SOI begins on page 259.

 

           
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FRANKLIN FTSE RUSSIA ETF

 

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

Investment Strategy

The Fund, using a “passive” or indexing investment approach, seeks investment results that closely correspond, before fees and expenses, to the performance of the FTSE Russia Capped Index. The Fund may use either a replication strategy or representative sampling strategy. Under a replication strategy, the Fund will replicate the component securities of the Underlying Index as closely as possible (i.e., invest in all of the component securities in their respective weightings in the Underlying Index). However, it may not be possible or practicable to replicate the Underlying Index. In these circumstances, we may use a representative sampling strategy whereby we will invest in what we believe to be a representative sample of the component securities of the Underlying Index, but may not track the Underlying Index with the same degree of accuracy as would an investment vehicle replicating the entire Underlying Index. Under the representative sampling technique, we will select securities that collectively have an investment profile similar to that of the Underlying Index, including securities that resemble those included in the Underlying Index in terms of risk factors, performance attributes and other characteristics, such as market capitalization and industry weightings. The Fund will concentrate its investments (i.e., hold 25% or more of its net assets) in a particular industry or group of industries to approximately the same extent that the Underlying Index is concentrated.

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

Dina Ting, CFA

Hailey Harris

Joe Diederich

Basit Amin, CFA

Portfolio Management Team

 

 

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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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 (2/9/18), the NAV of the Fund is used as a proxy for the Market Price to calculate market returns. Market and NAV returns assume that dividends and capital gain distributions have been reinvested at Market Price and NAV.

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
 

1-Year

     -99.98%        -71.53%        -99.98%        -71.53%  

3-Year

     -99.97%        -59.55%        -93.63%        -26.05%  

Since Inception (2/6/18)

     -99.97%        -53.30%        -82.56%        -15.11%  

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.

 

 

See page 86 for Performance Summary footnotes.

 

           
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FRANKLIN FTSE RUSSIA ETF

PERFORMANCE SUMMARY

 

Total Annual Operating Expenses5,6

 

  0.19%

All investments involve risks, including possible loss of principal. Stock prices fluctuate, sometimes rapidly and dramatically, due to factors affecting individual companies, particular industries or sectors, or general market conditions. Special risks are associated with foreign investing, including currency fluctuations, economic instability and political developments. Investments in developing markets involve heightened risks related to the same factors, in addition to those associated with these markets’ smaller size, lesser liquidity and lack of established legal, political, business and social frameworks to support securities markets. Investments in securities of Russian issuers involve significant risks that are specific to Russia, including certain legal, regulatory, political and economic risks. Because the Fund invests its assets primarily in companies in a specific country or region, the Fund may also experience greater volatility than a fund that is more broadly diversified geographically. As a non-diversified fund, the Fund may invest in a relatively small number of issuers which may negatively impact the Fund’s performance and result in greater fluctuation in the value of the Fund’s shares. 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 has increased volatility and uncertainty in the financial markets and adversely affected the Fund. The United States and other countries and certain international organizations have imposed broad-ranging economic sanctions on Russia and certain Russian individuals, banking entities and corporations as a response to Russia’s invasion of Ukraine. These sanctions froze certain Russian assets and prohibited, among other things, trading in certain Russian securities and doing business with specific Russian corporate entities, large financial institutions, officials and oligarchs. The sanctions also included the removal of some Russian banks from the Society for Worldwide Interbank Financial Telecommunications (SWIFT), the electronic network that connects banks globally, and imposed restrictive measures to prevent the Russian Central Bank from undermining the impact of the sanctions. A number of large corporations and U.S. states have also announced plans to divest interests or otherwise curtail business dealings with certain Russian businesses. In response, the government of Russia has imposed capital controls to restrict movements of capital entering and exiting the country. These sanctions and any additional sanctions or other intergovernmental actions that may be undertaken against Russia in the future may result in the devaluation of the Russian currency, a downgrade in the country’s credit rating, and a decline in the value and liquidity of Russian securities. These, as well as any other economic consequences to Russia, such as additional sanctions, boycotts or changes in consumer or purchaser preferences or cyberattacks on the Russian government, companies or individuals, along with any retaliatory actions or countermeasures that may be taken by Russia (including cyberattacks on other governments, corporations or individuals), may further decrease the value and liquidity of Russian securities.

As a result, the Fund’s ability to price, buy, sell, receive or deliver Russian investments has been impaired. For example, the Fund may be prohibited from investing in or acquiring securities issued by companies subject to such sanctions. In addition, the sanctions may require the Fund to freeze its existing investments in companies operating in or having dealings with Russia, which would prevent the Fund from selling or delivering these investments. Further, any exposure that the Fund may have to Russian counterparties could negatively impact the Fund’s portfolio. The liquidation of Fund assets during this time may also result in the Fund receiving substantially lower prices for its securities. The extent and duration of Russia’s military actions and the repercussions of such actions are impossible to predict, but could result in significant market disruptions, including in the oil and natural gas markets, and may negatively affect global supply chains, inflation and global growth. These and any related events have adversely affected the value and liquidity of the Fund’s holdings and may continue to significantly impact the Fund’s performance and the value of an investment in the Fund. The Fund’s Underlying Index may also remove securities as a result of the actions described above. Additionally, due to current and potential future sanctions or market closures impacting the ability to trade or transfer Russian securities, the Fund may experience higher transaction costs. During this time, the Fund will not meet its investment goal and will experience significant tracking error. Further, if the Fund’s shares resume trading on NYSE Arca, Inc., the Fund may experience significant premiums or discounts to the Fund’s net asset value (NAV) and wider bid-ask spreads.

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

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

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

3. Assumes reinvestment of distributions based on net asset value. The Fund’s returns based on net asset value include the Fund’s valuation of its Russian securities based on fair value prices.

4. Assumes reinvestment of distributions based on market price. Regarding the Fund’s returns based on market price, the Fund suspended new creations of its shares effective March 1, 2022, and NYSE Arca, Inc. halted trading of the Fund effective March 4, 2022. Therefore, from March 4, 2022, through September 30, 2022, the Fund did not have a daily closing 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.

6. Effective March 1, 2022, Franklin Advisory Services, LLC (the Fund’s investment manager) has implemented a voluntary waiver of its management fee for the Fund. This voluntary waiver may be eliminated by the investment manager at any time.

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

 

           
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FRANKLIN FTSE RUSSIA ETF

 

Your Fund’s Expenses

 

As a Fund shareholder, you can incur two types of costs: (1) transaction costs, including brokerage commissions on purchases and sales of Fund shares; and (2) ongoing Fund costs, including management fees and other Fund expenses. All funds have ongoing costs, sometimes referred to as operating expenses. The table below shows ongoing costs of investing in the Fund and can help you understand these costs and compare them with those of other funds. The table assumes a $1,000 investment held for the six months indicated. As noted above, the Fund suspended new creations of its shares effective March 1, 2022 and NYSE Arca, Inc. halted trading of the Fund effective March 4, 2022. During the six-month period ended September 30, 2022, the Fund’s portfolio was comprised of Russian equity securities (fair valued at $0 as notes above) and cash, and Fund shares were note available for purchase.

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
    Net Annualized
Expense Ratio2
 
  $1,000.00     $ 1,725.00 3    $ 0.00     $ 1,025.07     $ 0.00       0.00

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 March 1, 2022, Franklin Advisory Services, LLC (the fund’s investment manager) has implemented a voluntary waiver of its management fee for the Fund. This voluntary waiver may be eliminated by the investment manager at any time.

3. The amount shown above reflects the Fund’s NAV per share increasing from $0.003378 as of March 31, 2022 to $0.005827 as of September 30, 2022.

 

           
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Franklin FTSE Saudi Arabia ETF

 

This semiannual report for Franklin FTSE Saudi Arabia ETF covers the period ended September 30, 2022.

Your Fund’s Goal and Main Investments

The Fund seeks to provide investment results that closely correspond, before fees and expenses, to the performance of the FTSE Saudi Arabia RIC Capped Index (the FTSE Saudi Arabia Capped Index or the Underlying Index).1 Under normal market conditions, the Fund invests at least 80% of its assets in the component securities of the FTSE Saudi Arabia Capped Index and in depositary receipts representing such securities.

Performance Overview

During the six-month period, the Fund posted cumulative total returns of -12.23% based on market price and -11.10% based on net asset value. In comparison, the FTSE Saudi Arabia Capped Index posted a -11.12% total return for the same period.2 You can find more of the Fund’s performance data in the Performance Summary beginning on page 90.

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

Investment Strategy

The Fund, using a “passive” or indexing investment approach, seeks investment results that closely correspond, before fees and expenses, to the performance of the FTSE Saudi Arabia Capped Index. The Fund may use either a replication strategy or representative sampling strategy. Under a replication strategy, the Fund will replicate the component securities of the Underlying Index as closely as possible (i.e., invest in all of the component securities in their respective weightings in the Underlying Index). However, it

Top 10 Sectors/Industries       
9/30/22       
      % of Total
Net Assets
 

Banks

     43.9%  

Chemicals

     15.3%  

Oil, Gas & Consumable Fuels

     9.2%  

Diversified Telecommunication Services

     6.2%  

Metals & Mining

     4.7%  

Health Care Providers & Services

     3.1%  

Food Products

     2.1%  

Independent Power Producers & Energy Traders

     2.0%  

Electric Utilities

     1.7%  

Wireless Telecommunication Services

     1.7%  

may not be possible or practicable to replicate the Underlying Index. In these circumstances, we may use a representative sampling strategy whereby we will invest in what we believe to be a representative sample of the component securities of the Underlying Index, but may not track the Underlying Index with the same degree of accuracy as would an investment vehicle replicating the entire Underlying Index. Under the representative sampling technique, we will select securities that collectively have an investment profile similar to that of the Underlying Index, including securities that resemble those included in the Underlying Index in terms of risk factors, performance attributes and other characteristics, such as market capitalization and industry weightings. The Fund will concentrate its investments (i.e., hold 25% or more of its net assets) in a particular industry or group of industries to approximately the same extent that the Underlying Index is concentrated.

 

1. The FTSE Saudi Arabia Capped Index is a free float-adjusted market capitalization-weighted index maintained and calculated by FTSE Russell with a capping methodology applied quarterly to issuer weights so that no single issuer of a component exceeds 25% of the index weight, and all issuers with weights above 5% do not cumulatively exceed 50% of the index’s weight. The FTSE Saudi Arabia Capped Index is based on the FTSE Saudi Arabia Index and is designed to measure the performance of Saudi Arabian large- and mid-capitalization stocks.

2. Source: FactSet.

The index is unmanaged and includes reinvestment of any income or distributions (after the deduction of certain withholding taxes). It does not reflect any fees, expenses or sales charges. One cannot invest directly in an index.

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

The dollar value, number of shares or principal amount, and names of all portfolio holdings are listed in the Fund’s Schedule of Investments (SOI). The SOI begins on page 261.

 

           
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Top 10 Holdings       
9/30/22       
Company
Sector/Industry, Country
   % of Total
Net Assets
 

Al Rajhi Bank

Banks, Saudi Arabia

     13.8%  

Saudi National Bank

Banks, Saudi Arabia

     11.9%  

Saudi Arabian Oil Co., 144A

Oil, Gas & Consumable Fuels, Saudi Arabia

     8.7%  

Saudi Basic Industries Corp.

Chemicals, Saudi Arabia

     6.9%  

Saudi Telecom Co.

Diversified Telecommunication Services, Saudi Arabia

     6.2%  

Saudi Arabian Mining Co.

Metals & Mining, Saudi Arabia

     4.7%  

Riyad Bank

Banks, Saudi Arabia

     3.9%  

Saudi British Bank

Banks, Saudi Arabia

     3.4%  

SABIC Agri-Nutrients Co.

Chemicals, Saudi Arabia

     3.2%  

Alinma Bank

Banks, Saudi Arabia

     3.1%  

 

Thank you for your participation in Franklin FTSE Saudi Arabia ETF. We look forward to serving your future investment needs.

Dina Ting, CFA

Hailey Harris

Joe Diederich

Basit Amin, CFA

Portfolio Management Team

 

 

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 FTSE SAUDI ARABIA 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 (10/11/18), the NAV of the Fund is used as a proxy for the Market Price to calculate market returns. Market and NAV returns assume that dividends and capital gain distributions have been reinvested at Market Price and NAV.

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

     -11.10%        -12.32%        -11.10%        -12.32%  

1-Year

     +4.14%        +3.11%        +4.14%        +3.11%  

3-Year

     +52.04%        +49.15%        +14.99%        +14.26%  

Since Inception (10/9/18)

     +60.11%        +58.08%        +12.57%        +12.21%  

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.

 

 

See page 91 for Performance Summary footnotes.

 

           
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PERFORMANCE SUMMARY

 

Distributions (4/1/22–9/30/22)

Net Investment
Income

$0.332627

Total Annual Operating Expenses5

 

  0.39%

All investments involve risks, including possible loss of principal. Stock prices fluctuate, sometimes rapidly and dramatically, due to factors affecting individual companies, particular industries or sectors, or general market conditions. Special risks are associated with foreign investing, including currency fluctuations, economic instability and political developments. Investments in developing markets involve heightened risks related to the same factors, in addition to those associated with these markets’ smaller size, lesser liquidity and lack of established legal, political, business and social frameworks to support securities markets. Investments in securities of Saudi Arabian issuers involve risks that are specific to Saudi Arabia, including certain legal, regulatory, political and economic risks. Because the Fund invests its assets primarily in companies in a specific country or region, the Fund may also experience greater volatility than a fund that is more broadly diversified geographically. As a non-diversified fund, the Fund may invest in a relatively small number of issuers which may negatively impact the Fund’s performance and result in greater fluctuation in the value of the Fund’s shares. 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. The total annual operating expenses are sourced from the Fund’s prospectus available at the time of publication. Actual expenses may be higher and may impact portfolio returns.

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

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

4. Assumes reinvestment of distributions based on market price.

5. 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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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     $ 889.00     $ 1.85     $ 1,023.11     $ 1.98       0.39

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 FTSE South Africa ETF

 

This semiannual report for Franklin FTSE South Africa ETF covers the period ended September 30, 2022.

Your Fund’s Goal and Main Investments

The Fund seeks to provide investment results that closely correspond, before fees and expenses, to the performance of the FTSE/JSE South Africa RIC Capped Index (the FTSE/JSE South Africa Capped Index or the Underlying Index).1 Under normal market conditions, the Fund invests at least 80% of its assets in the component securities of the FTSE/JSE South Africa Capped Index and in depositary receipts representing such securities.

Performance Overview

During the six-month period, the Fund posted cumulative total returns of -33.29% based on market price and -32.23% based on net asset value. In comparison, the FTSE/JSE South Africa Capped Index posted a -32.24% total return for the same period.2 You can find more of the Fund’s performance data in the Performance Summary beginning on page 95.

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

Investment Strategy

The Fund, using a “passive” or indexing investment approach, seeks investment results that closely correspond, before fees and expenses, to the performance of the FTSE/JSE South Africa Capped Index. The Fund may use either a replication strategy or representative sampling strategy. Under a replication strategy, the Fund will replicate the component securities of the Underlying Index as closely as possible (i.e., invest in all of the component securities in their

Top 10 Sectors/Industries       
9/30/22       
      % of Total
Net Assets
 

Metals & Mining

     18.2%  

Banks

     14.4%  

Internet & Direct Marketing Retail

     12.5%  

Diversified Financial Services

     9.6%  

Food & Staples Retailing

     8.5%  

Wireless Telecommunication Services

     7.5%  

Insurance

     6.3%  

Chemicals

     4.1%  

Specialty Retail

     3.6%  

Equity Real Estate Investment Trusts (REITs)

     2.0%  

respective weightings in the Underlying Index). However, it may not be possible or practicable to replicate the Underlying Index. In these circumstances, we may use a representative sampling strategy whereby we will invest in what we believe to be a representative sample of the component securities of the Underlying Index, but may not track the Underlying Index with the same degree of accuracy as would an investment vehicle replicating the entire Underlying Index. Under the representative sampling technique, we will select securities that collectively have an investment profile similar to that of the Underlying Index, including securities that resemble those included in the Underlying Index in terms of risk factors, performance attributes and other characteristics, such as market capitalization and industry weightings. The Fund will concentrate its investments (i.e., hold 25% or more of its net assets) in a particular industry or group of industries to approximately the same extent that the Underlying Index is concentrated.

 

1. The FTSE/JSE South Africa Capped Index is a free float-adjusted market capitalization-weighted index maintained and calculated by FTSE Russell with a capping methodology applied quarterly to issuer weights so that no single issuer of a component exceeds 25% of the index weight, and all issuers with weights above 5% do not cumulatively exceed 50% of the index’s weight. The FTSE/JSE South Africa Capped Index is based on the FTSE South Africa Index and is designed to measure the performance of South African large- and mid-capitalization stocks.

2. Source: FactSet.

The index is unmanaged and includes reinvestment of any income or distributions (after the deduction of certain withholding taxes). It does not reflect any fees, expenses or sales charges. One cannot invest directly in an index.

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

The dollar value, number of shares or principal amount, and names of all portfolio holdings are listed in the Fund’s Schedule of Investments (SOI). The SOI begins on page 264.

 

           
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Top 10 Holdings       
9/30/22       

Company

Sector/Industry, Country

   % of Total
Net Assets
 

Naspers Ltd., N

Internet & Direct Marketing Retail, South Africa

     12.5%  
FirstRand Ltd.
Diversified Financial Services, South Africa
     7.8%  

MTN Group Ltd.

Wireless Telecommunication Services, South Africa

     5.6%  

Standard Bank Group Ltd.

Banks, South Africa

     5.0%  

Sasol Ltd.

Chemicals, South Africa

     4.1%  

Absa Group Ltd.

Banks, South Africa

     3.8%  

Impala Platinum Holdings Ltd.

Metals & Mining, South Africa

     3.6%  

Capitec Bank Holdings Ltd.

Banks, South Africa

     3.4%  

Gold Fields Ltd.

Metals & Mining, South Africa

     3.4%  

Sibanye Stillwater Ltd.

Metals & Mining, South Africa

     3.1%  

 

Thank you for your participation in Franklin FTSE South Africa ETF. We look forward to serving your future investment needs.

Dina Ting, CFA

Hailey Harris

Joe Diederich

Basit Amin, CFA

Portfolio Management Team

 

 

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 FTSE SOUTH AFRICA 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 (10/11/18), the NAV of the Fund is used as a proxy for the Market Price to calculate market returns. Market and NAV returns assume that dividends and capital gain distributions have been reinvested at Market Price and NAV.

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

     -32.23%        -33.29%        -32.23%        -33.29%  

1-Year

     -19.06%        -20.77%        -19.06%        -20.77%  

3-Year

     -3.47%        -5.08%        -1.17%        -1.72%  

Since Inception (10/10/18)

     -1.39%        -3.00%        -0.35%        -0.76%  

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 96 for Performance Summary footnotes.

 

           
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FRANKLIN FTSE SOUTH AFRICA ETF

PERFORMANCE SUMMARY

 

Distributions (4/1/22–9/30/22)

Net Investment
Income

$0.598684

Total Annual Operating Expenses5

 

  0.19%

All investments involve risks, including possible loss of principal. Stock prices fluctuate, sometimes rapidly and dramatically, due to factors affecting individual companies, particular industries or sectors, or general market conditions. Special risks are associated with foreign investing, including currency fluctuations, economic instability and political developments. Investments in developing markets involve heightened risks related to the same factors, in addition to those associated with these markets’ smaller size, lesser liquidity and lack of established legal, political, business and social frameworks to support securities markets. Investments in securities of South African issuers involve risks that are specific to South Africa, including certain legal, regulatory, political and economic risks. Because the Fund invests its assets primarily in companies in a specific country or region, the Fund may also experience greater volatility than a fund that is more broadly diversified geographically. As a non-diversified fund, the Fund may invest in a relatively small number of issuers which may negatively impact the Fund’s performance and result in greater fluctuation in the value of the Fund’s shares. 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. The total annual operating expenses are sourced from the Fund’s prospectus available at the time of publication. Actual expenses may be higher and may impact portfolio returns.

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

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

4. Assumes reinvestment of distributions based on market price.

5. 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 FTSE SOUTH AFRICA 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     $ 677.70     $ 0.80     $ 1,024.12     $ 0.96       0.19

1. Expenses are equal to the annualized expense ratio for the six-month period as indicated above—in the far right column—multiplied by the simple average account value over the period indicated, and then multiplied by 183/365 to reflect the one-half year period.

 

           
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Franklin FTSE South Korea ETF

 

This semiannual report for Franklin FTSE South Korea ETF covers the period ended September 30, 2022.

Your Fund’s Goal and Main Investments

The Fund seeks to provide investment results that closely correspond, before fees and expenses, to the performance of the FTSE South Korea RIC Capped Index (the FTSE South Korea Capped Index or the Underlying Index).1 Under normal market conditions, the Fund invests at least 80% of its assets in the component securities of the FTSE South Korea Capped Index and in depositary receipts representing such securities.

Performance Overview

During the six-month period, the Fund posted cumulative total returns of -34.13% based on market price and -33.72% based on net asset value. In comparison, the FTSE South Korea Capped Index posted a -33.70% total return for the same period.2 You can find more of the Fund’s performance data in the Performance Summary beginning on page 100.

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

Investment Strategy

The Fund, using a “passive” or indexing investment approach, seeks investment results that closely correspond, before fees and expenses, to the performance of the FTSE South Korea Capped Index. The Fund may use either a replication strategy or representative sampling strategy. Under a replication strategy, the Fund will replicate the component securities of the Underlying Index as closely as possible (i.e., invest in all of the component securities in their respective weightings in the Underlying Index). However, it may not

Top 10 Sectors/Industries       
9/30/22       
      % of Total
Net Assets
 

Technology Hardware, Storage & Peripherals

     20.9%  

Banks

     7.5%  

Semiconductors & Semiconductor Equipment

     6.1%  

Automobiles

     6.0%  

Electronic Equipment, Instruments & Components

     5.9%  

Interactive Media & Services

     5.7%  

Chemicals

     5.4%  

Industrial Conglomerates

     3.2%  

Electrical Equipment

     3.2%  

Metals & Mining

     3.0%  

be possible or practicable to replicate the Underlying Index. In these circumstances, we may use a representative sampling strategy whereby we will invest in what we believe to be a representative sample of the component securities of the Underlying Index, but may not track the Underlying Index with the same degree of accuracy as would an investment vehicle replicating the entire Underlying Index. Under the representative sampling technique, we will select securities that collectively have an investment profile similar to that of the Underlying Index, including securities that resemble those included in the Underlying Index in terms of risk factors, performance attributes and other characteristics, such as market capitalization and industry weightings. The Fund will concentrate its investments (i.e., hold 25% or more of its net assets) in a particular industry or group of industries to approximately the same extent that the Underlying Index is concentrated.

 

1. The FTSE South Korea Capped Index is a free float-adjusted market capitalization-weighted index maintained and calculated by FTSE Russell with a capping methodology applied quarterly to issuer weights so that no single issuer of a component exceeds 25% of the index weight, and all issuers with weights above 5% do not cumulatively exceed 50% of the index’s weight. The FTSE South Korea Capped Index is based on the FTSE South Korea Index and is designed to measure the performance of South Korean large- and mid-capitalization stocks.

2. Source: FactSet.

The index is unmanaged and includes reinvestment of any income or distributions (after the deduction of certain withholding taxes). It does not reflect any fees, expenses or sales charges. One cannot invest directly in an index.

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

The dollar value, number of shares or principal amount, and names of all portfolio holdings are listed in the Fund’s Schedule of Investments (SOI). The SOI begins on page 267.

 

           
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FRANKLIN FTSE SOUTH KOREA ETF

 

Top 10 Holdings       
9/30/22       

Company

Sector/Industry, Country

   % of Total
Net Assets
 

Samsung Electronics Co. Ltd.

Technology Hardware, Storage & Peripherals, South Korea

     20.9%  

SK Hynix Inc.

Semiconductors & Semiconductor Equipment, South Korea

     5.7%  

Hyundai Motor Co.

Automobiles, South Korea

     3.7%  

Samsung SDI Co. Ltd.

Electronic Equipment, Instruments & Components, South Korea

     3.6%  

NAVER Corp.

Interactive Media & Services, South Korea

     3.5%  

LG Chem Ltd.

Chemicals, South Korea

     3.3%  

Celltrion Inc., A

Biotechnology, South Korea

     2.4%  

Kia Corp.

Automobiles, South Korea

     2.3%  

Kakao Corp.

Interactive Media & Services, South Korea

     2.2%  

KB Financial Group Inc.

Banks, South Korea

     2.1%  

 

Thank you for your participation in Franklin FTSE South Korea ETF. We look forward to serving your future investment needs.

Dina Ting, CFA

Hailey Harris

Joe Diederich

Basit Amin, CFA

Portfolio Management Team

 

 

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  

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             99


FRANKLIN FTSE SOUTH KOREA 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 (11/6/17), the NAV of the Fund is used as a proxy for the Market Price to calculate market returns. Market and NAV returns assume that dividends and capital gain distributions have been reinvested at Market Price and NAV.

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

     -33.72%        -34.13%        -33.72%        -34.13%  

1-Year

     -40.68%        -41.14%        -40.68%        -41.14%  

3-Year

     -9.20%        -10.37%        -3.16%        -3.58%  

Since Inception (11/2/17)

     -28.56%        -29.62%        -6.62%        -6.91%  

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 101 for Performance Summary footnotes.

 

           
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FRANKLIN FTSE SOUTH KOREA ETF

PERFORMANCE SUMMARY

 

Distributions (4/1/22–9/30/22)

Net Investment
Income

$0.073957

Total Annual Operating Expenses5

 

  0.09%

All investments involve risks, including possible loss of principal. Stock prices fluctuate, sometimes rapidly and dramatically, due to factors affecting individual companies, particular industries or sectors, or general market conditions. Special risks are associated with foreign investing, including currency fluctuations, economic instability and political developments. Investments in securities of South Korean issuers involve risks that are specific to South Korea, including certain legal, regulatory, political and economic risks. Because the Fund invests its assets primarily in companies in a specific country or region, the Fund may also experience greater volatility than a fund that is more broadly diversified geographically. As a non-diversified fund, the Fund may invest in a relatively small number of issuers which may negatively impact the Fund’s performance and result in greater fluctuation in the value of the Fund’s shares. 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. The total annual operating expenses are sourced from the Fund’s prospectus available at the time of publication. Actual expenses may be higher and may impact portfolio returns.

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

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

4. Assumes reinvestment of distributions based on market price.

5. 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 FTSE SOUTH KOREA 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     $ 662.80     $ 0.38     $ 1,024.62     $ 0.46       0.09

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 FTSE Switzerland ETF

 

This semiannual report for Franklin FTSE Switzerland ETF covers the period ended September 30, 2022.

Your Fund’s Goal and Main Investments

The Fund seeks to provide investment results that closely correspond, before fees and expenses, to the performance of the FTSE Switzerland RIC Capped Index (the FTSE Switzerland Capped Index or the Underlying Index).1 Under normal market conditions, the Fund invests at least 80% of its assets in the component securities of the FTSE Switzerland Capped Index and in depositary receipts representing such securities.

Performance Overview

During the six-month period, the Fund posted cumulative total returns of -21.25% based on market price and -20.98% based on net asset value. In comparison, the FTSE Switzerland Capped Index posted a -21.13% total return for the same period.2 You can find more of the Fund’s performance data in the Performance Summary beginning on page 105.

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

Investment Strategy

The Fund, using a “passive” or indexing investment approach, seeks investment results that closely correspond, before fees and expenses, to the performance of the FTSE Switzerland Capped Index. The Fund may use either a replication strategy or representative sampling strategy. Under a replication strategy, the Fund will replicate the component securities of the Underlying Index as closely as possible (i.e., invest in all of the component securities in their

Top 10 Sectors/Industries       
9/30/22       
      % of Total
Net Assets
 

Pharmaceuticals

     28.8%  

Food Products

     22.5%  

Insurance

     8.1%  

Capital Markets

     6.7%  

Chemicals

     5.6%  

Textiles, Apparel & Luxury Goods

     4.4%  

Health Care Equipment & Supplies

     4.1%  

Life Sciences Tools & Services

     3.4%  

Electrical Equipment

     3.1%  

Construction Materials

     1.9%  

respective weightings in the Underlying Index). However, it may not be possible or practicable to replicate the Underlying Index. In these circumstances, we may use a representative sampling strategy whereby we will invest in what we believe to be a representative sample of the component securities of the Underlying Index, but may not track the Underlying Index with the same degree of accuracy as would an investment vehicle replicating the entire Underlying Index. Under the representative sampling technique, we will select securities that collectively have an investment profile similar to that of the Underlying Index, including securities that resemble those included in the Underlying Index in terms of risk factors, performance attributes and other characteristics, such as market capitalization and industry weightings. The Fund will concentrate its investments (i.e., hold 25% or more of its net assets) in a particular industry or group of industries to approximately the same extent that the Underlying Index is concentrated.

 

 

1. The FTSE Switzerland Capped Index is a free float-adjusted market-capitalization weighted index maintained and calculated by FTSE Russell with a capping methodology applied quarterly to issuer weights so that no single issuer of a component exceeds 25% of the index weight, and all issuers with weights above 5% do not cumulatively exceed 50% of the index’s weight. The FTSE Switzerland Capped Index is based on the FTSE Switzerland Index and is designed to measure the performance of Swiss large- and mid-capitalization stocks.

2. Source: FactSet.

The index is unmanaged and includes reinvestment of any income or distributions (after the deduction of certain withholding taxes). It does not reflect any fees, expenses or sales charges. One cannot invest directly in an index.

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

The dollar value, number of shares or principal amount, and names of all portfolio holdings are listed in the Fund’s Schedule of Investments (SOI). The SOI begins on page 272.

 

           
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FRANKLIN FTSE SWITZERLAND ETF

 

Top 10 Holdings       
9/30/22       

Company

Sector/Industry, Country

   % of Total
Net Assets
 
Nestle SA
Food Products, Switzerland
     20.1%  
Roche Holding AG, Non-Voting
Pharmaceuticals, Switzerland
     16.5%  
Novartis AG
Pharmaceuticals, Switzerland
     11.5%  
Zurich Insurance Group AG
Insurance, Switzerland
     4.4%  
Cie Financiere Richemont SA
Textiles, Apparel & Luxury Goods, Switzerland
     3.7%  
UBS Group AG
Capital Markets, Switzerland
     3.4%  
ABB Ltd.
Electrical Equipment, Switzerland
     3.1%  
Lonza Group AG
Life Sciences Tools & Services, Switzerland
     2.9%  
Sika AG
Chemicals, Switzerland
     2.5%  
Givaudan AG
Chemicals, Switzerland
     2.4%  

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

Dina Ting, CFA

Hailey Harris

Joe Diederich

Basit Amin, CFA

Portfolio Management Team

 

 

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 FTSE SWITZERLAND 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 (2/9/18), the NAV of the Fund is used as a proxy for the Market Price to calculate market returns. Market and NAV returns assume that dividends and capital gain distributions have been reinvested at Market Price and NAV.

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

     -20.98%        -21.25%        -20.98%        -21.25%  

1-Year

     -16.67%        -17.10%        -16.67%        -17.10%  

3-Year

     +9.78%        +8.53%        +3.16%        +2.77%  

Since Inception (2/6/18)

     +24.26%        +23.13%        +4.79%        +4.58%  

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 106 for Performance Summary footnotes.

 

           
franklintempleton.com  

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FRANKLIN FTSE SWITZERLAND ETF

PERFORMANCE SUMMARY

 

Distributions (4/1/22–9/30/22)

Net Investment
Income

$0.543061

Total Annual Operating Expenses5

 

  0.09%

All investments involve risks, including possible loss of principal. Stock prices fluctuate, sometimes rapidly and dramatically, due to factors affecting individual companies, particular industries or sectors, or general market conditions. Special risks are associated with foreign investing, including currency fluctuations, economic instability and political developments. Investments in securities of Swiss issuers involve risks that are specific to Switzerland, including certain legal, regulatory, political and economic risks. Because the Fund invests its assets primarily in companies in a specific country or region, the Fund may also experience greater volatility than a fund that is more broadly diversified geographically. As a non-diversified fund, the Fund may invest in a relatively small number of issuers which may negatively impact the Fund’s performance and result in greater fluctuation in the value of the Fund’s shares. 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. The total annual operating expenses are sourced from the Fund’s prospectus available at the time of publication. Actual expenses may be higher and may impact portfolio returns.

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

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

4. Assumes reinvestment of distributions based on market price.

5. 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 FTSE SWITZERLAND 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     $ 790.20     $ 0.40     $ 1,024.62     $ 0.46       0.09

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 FTSE Taiwan ETF

 

This semiannual report for Franklin FTSE Taiwan ETF covers the period ended September 30, 2022.

Your Fund’s Goal and Main Investments

The Fund seeks to provide investment results that closely correspond, before fees and expenses, to the performance of the FTSE Taiwan RIC Capped Index (the FTSE Taiwan Capped Index or the Underlying Index).1 Under normal market conditions, the Fund invests at least 80% of its assets in the component securities of the FTSE Taiwan Capped Index and in depositary receipts representing such securities.

Performance Overview

During the six-month period, the Fund posted cumulative total returns of -29.35% based on market price and -29.26% based on net asset value. In comparison, the FTSE Taiwan Capped Index posted a -29.23% total return for the same period.2 You can find more of the Fund’s performance data in the Performance Summary beginning on page 110.

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

Investment Strategy

The Fund, using a “passive” or indexing investment approach, seeks investment results that closely correspond, before fees and expenses, to the performance of the FTSE Taiwan Capped Index. The Fund may use either a replication strategy or representative sampling strategy. Under a replication strategy, the Fund will replicate the component securities of the Underlying Index as closely as possible (i.e., invest in all of the component securities in their respective weightings in the Underlying Index). However, it may not be possible or

Top 10 Sectors/Industries       
9/30/22       
      % of Total
Net Assets
 

Semiconductors & Semiconductor Equipment

     32.4%  

Electronic Equipment, Instruments & Components

     14.5%  

Banks

     13.6%  

Technology Hardware, Storage & Peripherals

     7.3%  

Chemicals

     5.0%  

Insurance

     4.0%  

Diversified Telecommunication Services

     2.2%  

Metals & Mining

     1.6%  

Food Products

     1.6%  

Electrical Equipment

     1.5%  

practicable to replicate the Underlying Index. In these circumstances, we may use a representative sampling strategy whereby we will invest in what we believe to be a representative sample of the component securities of the Underlying Index, but may not track the Underlying Index with the same degree of accuracy as would an investment vehicle replicating the entire Underlying Index. Under the representative sampling technique, we will select securities that collectively have an investment profile similar to that of the Underlying Index, including securities that resemble those included in the Underlying Index in terms of risk factors, performance attributes and other characteristics, such as market capitalization and industry weightings. The Fund will concentrate its investments (i.e., hold 25% or more of its net assets) in a particular industry or group of industries to approximately the same extent that the Underlying Index is concentrated.

 

1. The FTSE Taiwan Capped Index is a free float-adjusted market capitalization-weighted index maintained and calculated by FTSE Russell with a capping methodology applied quarterly to issuer weights so that no single issuer of a component exceeds 25% of the index weight, and all issuers with weights above 5% do not cumulatively exceed 50% of the index’s weight. The FTSE Taiwan Capped Index is based on the FTSE Taiwan Index and is designed to measure the performance of Taiwanese large- and mid-capitalization stocks.

2. Source: FactSet.

The index is unmanaged and includes reinvestment of any income or distributions (after the deduction of certain withholding taxes). It does not reflect any fees, expenses or sales charges. One cannot invest directly in an index.

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

 

The dollar value, number of shares or principal amount, and names of all portfolio holdings are listed in the Fund’s Schedule of Investments (SOI). The SOI begins on page 275.

 

           
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FRANKLIN FTSE TAIWAN ETF

 

Top 10 Holdings       
9/30/22       

Company

Sector/Industry, Country

   % of Total
Net Assets
 
Taiwan Semiconductor Manufacturing Co. Ltd.
Semiconductors & Semiconductor Equipment, Taiwan
     19.3%  
Hon Hai Precision Industry Co. Ltd.
Electronic Equipment, Instruments & Components, Taiwan
     6.1%  
MediaTek Inc.
Semiconductors & Semiconductor Equipment, Taiwan
     4.1%  
Delta Electronics Inc., A
Electronic Equipment, Instruments & Components, Taiwan
     2.7%  
Chunghwa Telecom Co. Ltd.
Diversified Telecommunication Services, Taiwan
     2.2%  
United Microelectronics Corp.
Semiconductors & Semiconductor Equipment, Taiwan
     2.1%  
Nan Ya Plastics Corp.
Chemicals, Taiwan
     1.9%  
Fubon Financial Holding Co. Ltd.
Insurance, Taiwan
     1.8%  
CTBC Financial Holding Co. Ltd., A
Banks, Taiwan
     1.8%  
E.Sun Financial Holding Co. Ltd., A
Banks, Taiwan
     1.8%  

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

Dina Ting, CFA

Hailey Harris

Joe Diederich

Basit Amin, CFA

Portfolio Management Team

 

 

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

             109


FRANKLIN FTSE TAIWAN 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 (11/6/17), the NAV of the Fund is used as a proxy for the Market Price to calculate market returns. Market and NAV returns assume that dividends and capital gain distributions have been reinvested at Market Price and NAV.

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

     -29.26%        -29.35%        -29.26%        -29.35%  

1-Year

     -28.06%        -28.68%        -28.06%        -28.68%  

3-Year

     +29.55%        +27.10%        +9.01%        +8.32%  

Since Inception (11/2/17)

     +31.70%        +29.86%        +5.77%        +5.47%  

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 111 for Performance Summary footnotes.

 

           
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FRANKLIN FTSE TAIWAN ETF

PERFORMANCE SUMMARY

 

Distributions (4/1/22–9/30/22)

Net Investment
Income

$0.004973

Total Annual Operating Expenses5

 

  0.19%

All investments involve risks, including possible loss of principal. Stock prices fluctuate, sometimes rapidly and dramatically, due to factors affecting individual companies, particular industries or sectors, or general market conditions. Special risks are associated with foreign investing, including currency fluctuations, economic instability and political developments. Investments in developing markets involve heightened risks related to the same factors, in addition to those associated with these markets’ smaller size, lesser liquidity and lack of established legal, political, business and social frameworks to support securities markets. Investments in securities of Taiwanese issuers involve risks that are specific to Taiwan, including certain legal, regulatory, political and economic risks. Investments in securities of Chinese issuers involve risks that are specific to China, including certain legal, regulatory, political and economic risks. Because the Fund invests its assets primarily in companies in a specific country or region, the Fund may also experience greater volatility than a fund that is more broadly diversified geographically. As a non-diversified fund, the Fund may invest in a relatively small number of issuers which may negatively impact the Fund’s performance and result in greater fluctuation in the value of the Fund’s shares. 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. The total annual operating expenses are sourced from the Fund’s prospectus available at the time of publication. Actual expenses may be higher and may impact portfolio returns.

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

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

4. Assumes reinvestment of distributions based on market price.

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

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

 

           
franklintempleton.com  

Semiannual Report

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FRANKLIN FTSE TAIWAN 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     Hypothetical        
      (actual return after expenses)     (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     $ 707.40     $ 0.81     $ 1,024.12     $ 0.96       0.19

1. Expenses are equal to the annualized expense ratio for the six-month period as indicated above—in the far right column—multiplied by the simple average account value over the period indicated, and then multiplied by 183/365 to reflect the one-half year period.

 

           
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Semiannual Report

  franklintempleton.com


Franklin FTSE United Kingdom ETF

 

This semiannual report for Franklin FTSE United Kingdom ETF covers the period ended September 30, 2022.

Your Fund’s Goal and Main Investments

The Fund seeks to provide investment results that closely correspond, before fees and expenses, to the performance of the FTSE UK RIC Capped Index (the FTSE UK Capped Index or the Underlying Index).1 Under normal market conditions, the Fund invests at least 80% of its assets in the component securities of the FTSE UK Capped Index and in depositary receipts representing such securities.

Performance Overview

For the six-month period, the Fund posted cumulative total returns of -20.95% based on market price and -20.61% based on net asset value. In comparison, the FTSE UK Capped Index posted a -20.61% total return for the same period.2 You can find more of the Fund’s performance data in the Performance Summary beginning on page 115.

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

Investment Strategy

The Fund, using a “passive” or indexing investment approach, seeks investment results that closely correspond, before fees and expenses, to the performance of the FTSE UK Capped Index. The Fund may use either a replication strategy or representative sampling strategy. Under a replication strategy, the Fund will replicate the component securities of the Underlying Index as closely as possible (i.e., invest in all of the component securities in their respective weightings in the Underlying Index). However, it may not be possible or practicable to replicate the Underlying Index. In these circumstances, we may use a representative sampling strategy

Top 10 Sectors/Industries       
9/30/22       
      % of Total
Net Assets
 
Oil, Gas & Consumable Fuels      13.3%  
Pharmaceuticals      11.1%  
Banks      9.3%  
Metals & Mining      8.6%  
Personal Products      6.2%  
Tobacco      4.9%  
Beverages      4.9%  
Professional Services      3.9%  
Hotels, Restaurants & Leisure      3.8%  
Insurance      3.4%  

whereby we will invest in what we believe to be a representative sample of the component securities of the Underlying Index, but may not track the Underlying Index with the same degree of accuracy as would an investment vehicle replicating the entire Underlying Index. Under the representative sampling technique, we will select securities that collectively have an investment profile similar to that of the Underlying Index, including securities that resemble those included in the Underlying Index in terms of risk factors, performance attributes and other characteristics, such as market capitalization and industry weightings. The Fund will concentrate its investments (i.e., hold 25% or more of its net assets) in a particular industry or group of industries to approximately the same extent that the Underlying Index is concentrated.

 

1. The FTSE UK Capped Index is a free float-adjusted market capitalization-weighted index maintained and calculated by FTSE Russell with a capping methodology applied quarterly to issuer weights so that no single issuer of a component exceeds 25% of the index weight, and all issuers with weights above 5% do not cumulatively exceed 50% of the index’s weight. The FTSE UK Capped Index is based on the FTSE UK Index and is designed to measure the performance of U.K. large- and mid-capitalization stocks.

2. Source: FactSet.

The index is unmanaged and includes reinvestment of any income or distributions (after the deduction of certain withholding taxes). It does not reflect any fees, expenses or sales charges. One cannot invest directly in an index.

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

The dollar value, number of shares or principal amount, and names of all portfolio holdings are listed in the Fund’s Schedule of Investments (SOI). The SOI begins on page 279.

 

           
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FRANKLIN FTSE UNITED KINGDOM ETF

 

Top 10 Holdings       
9/30/22       
Company
Sector/Industry, Country
   % of Total
Net Assets
 

Shell PLC

Oil, Gas & Consumable Fuels, Netherlands

     8.9%  

AstraZeneca PLC

Pharmaceuticals, United Kingdom

     8.0%  

Unilever PLC

Personal Products, United Kingdom

     5.5%  

HSBC Holdings PLC

Banks, United Kingdom

     5.1%  

Diageo PLC

Beverages, United Kingdom

     4.7%  

BP PLC

Oil, Gas & Consumable Fuels, United Kingdom

     4.4%  

British American Tobacco PLC

Tobacco, United Kingdom

     3.9%  

Glencore PLC

Metals & Mining, Australia

     3.4%  

Rio Tinto PLC

Metals & Mining, Australia

     2.9%  

GSK PLC

Pharmaceuticals, United Kingdom

     2.8%  

Thank you for your participation in Franklin FTSE United Kingdom ETF. We look forward to serving your future investment needs.

Dina Ting, CFA

Hailey Harris

Joe Diederich

Basit Amin, CFA

Portfolio Management Team

 

 

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 FTSE UNITED KINGDOM 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 (11/6/17), the NAV of the Fund is used as a proxy for the Market Price to calculate market returns. Market and NAV returns assume that dividends and capital gain distributions have been reinvested at Market Price and NAV.

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

     -20.61%        -20.95%        -20.61%        -20.95%  

1-Year

     -16.69%        -17.33%        -16.69%        -17.33%  

3-Year

     -6.35%        -7.36%        -2.16%        -2.51%  

Since Inception (11/2/17)

     -6.31%        -7.25%        -1.32%        -1.52%  

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

See page 116 for Performance Summary footnotes.

 

           
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FRANKLIN FTSE UNITED KINGDOM ETF

PERFORMANCE SUMMARY

 

Distributions (4/1/22–9/30/22)

Net Investment
Income

$0.486685

Total Annual Operating Expenses5

 

  0.09%

All investments involve risks, including possible loss of principal. Stock prices fluctuate, sometimes rapidly and dramatically, due to factors affecting individual companies, particular industries or sectors, or general market conditions. Special risks are associated with foreign investing, including currency fluctuations, economic instability and political developments. Investments in securities of U.K. issuers involve risks that are specific to U.K., including certain legal, regulatory, political and economic risks. Because the Fund invests its assets primarily in companies in a specific country or region, the Fund may also experience greater volatility than a fund that is more broadly diversified geographically. As a non-diversified fund, the Fund may invest in a relatively small number of issuers which may negatively impact the Fund’s performance and result in greater fluctuation in the value of the Fund’s shares. 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. The total annual operating expenses are sourced from the Fund’s prospectus available at the time of publication. Actual expenses may be higher and may impact portfolio returns.

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

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

4. Assumes reinvestment of distributions based on market price.

5. 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 FTSE UNITED KINGDOM 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     Hypothetical        
      (actual return after expenses)     (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     $ 793.90     $ 0.40     $ 1,024.62     $ 0.46       0.09

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 TEMPLETON ETF TRUST

 

Financial Highlights

 

Franklin FTSE Asia ex Japan ETF

 

    Six Months Ended
September 30, 2022
(unaudited)
     Year Ended March 31,  
      2022      2021      2020      2019      2018a  
Per share operating performance
(for a share outstanding throughout the period)
                

Net asset value, beginning of period

  $ 24.22      $ 28.60      $ 18.39      $ 21.86      $ 23.63      $ 23.64  
 

 

 

 
Income from investment operationsb:                 

Net investment incomec

    0.40        0.55        0.44        0.49        0.51        0.04  

Net realized and unrealized gains (losses)

    (5.58      (4.31      10.21        (3.46      (1.82      (0.05
 

 

 

 

Total from investment operations

    (5.18      (3.76      10.65        (2.97      (1.31      (0.01
 

 

 

 

Less distributions from net investment income

    (0.11      (0.62      (0.44      (0.50      (0.46       
 

 

 

 

Net asset value, end of period

  $ 18.93      $ 24.22      $ 28.60      $ 18.39      $ 21.86      $ 23.63  
 

 

 

 

Total returnd

    (21.44)%        (13.34)%        58.16%        (13.88)%        (5.34)%        (0.04)%  
Ratios to average net assetse                 

Expenses before waiver and payments by affiliates

    0.19%        0.19%        0.19%        0.19%        0.19%        0.19%  

Expenses net of waiver and payments by affiliates

    0.19%        0.19%        0.19%        0.19%        0.19%        0.19%  

Net investment income

    3.60%        2.01%        1.78%        2.32%        2.34%        1.06%  
Supplemental data                 

Net assets, end of period (000’s)

    $30,286        $38,751        $34,317        $14,712        $17,488        $9,451  

Portfolio turnover ratef

    3.00% g        10.09% g        11.45% g       11.42% g       7.11%        0.96%  

 

aFor the period February 6, 2018 (commencement of operations) to March 31, 2018.

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

cBased on average daily shares outstanding.

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

eRatios are annualized for periods less than one year.

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

 

gPortfolio turnover rate excluding cash creations was as follows:     3.00%        9.63%        11.45%        11.42%     

 

           
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FRANKLIN TEMPLETON ETF TRUST

 

Schedule of Investments, September 30, 2022 (unaudited)

 

Franklin FTSE Asia ex Japan ETF

 

           Industry        Shares        Value  
    Common Stocks 99.6%                    
    Cambodia 0.0%                         
a  

NagaCorp Ltd.

     Hotels, Restaurants & Leisure          8,075        $ 5,308  
              

 

 

 
    China 34.2%                         
 

360 DigiTech Inc.

     Consumer Finance          724          9,282  
 

360 Security Technology Inc., A

     Software          2,800          2,553  
b  

3SBio Inc., A, 144A

     Biotechnology          8,000          5,677  
a  

AAC Technologies Holdings Inc., H

     Electronic Equipment, Instruments & Components          4,000          6,257  
 

ADAMA Ltd.

     Chemicals          400          517  
 

Addsino Co. Ltd., A

     Communications Equipment          800          1,117  
a  

Advanced Micro-Fabrication Equipment Inc. China, A

     Semiconductors & Semiconductor Equipment          200          3,026  
 

AECC Aero-Engine Control Co. Ltd., A

     Aerospace & Defense          400          1,409  
 

AECC Aviation Power Co. Ltd., A

     Aerospace & Defense          1,200          7,061  
a  

Agile Group Holdings Ltd.

     Real Estate Management & Development          8,000          1,875  
 

Agricultural Bank of China Ltd., A

     Banks          38,000          15,244  
 

Agricultural Bank of China Ltd., H

     Banks          176,000          52,689  
 

Aier Eye Hospital Group Co. Ltd., A

     Health Care Providers & Services          2,804          11,276  
a  

Air China Ltd., A

     Airlines          2,400          3,525  
a  

Air China Ltd., H

     Airlines          10,000          7,643  
 

Airtac International Group, A

     Machinery          880          20,289  
a,b  

Akeso Inc., 144A

     Biotechnology          3,000          8,293  
a  

Alibaba Group Holding Ltd., A

     Internet & Catalog Retail          85,000          844,055  
b  

A-Living Services Co. Ltd., H, 144A

     Commercial Services & Supplies          4,000          3,169  
 

All Winner Technology Co. Ltd., A

     Semiconductors & Semiconductor Equipment          400          1,101  
a  

Alpha Group, A

     Leisure Products          400          244  
 

Aluminum Corp. of China Ltd., A

     Metals & Mining          4,800          2,781  
 

Aluminum Corp. of China Ltd., H

     Metals & Mining          22,000          7,203  
a  

Amlogic Shanghai Co. Ltd.

     Semiconductors & Semiconductor Equipment          200          1,823  
a  

An Hui Wenergy Co. Ltd., A

     Independent Power Producers & Energy Traders          1,200          754  
 

Angang Steel Co. Ltd., A

     Metals & Mining          2,000          752  
 

Angang Steel Co. Ltd., H

     Metals & Mining          8,000          1,977  
 

Angel Yeast Co. Ltd., A

     Food Products          400          2,333  
 

Anhui Anke Biotechnology Group Co. Ltd., A

     Pharmaceuticals          532          672  
 

Anhui Conch Cement Co. Ltd., A

     Construction Materials          1,600          6,466  
 

Anhui Conch Cement Co. Ltd., H

     Construction Materials          6,500          20,618  
 

Anhui Expressway Co. Ltd., A

     Transportation Infrastructure          400          374  
 

Anhui Expressway Co. Ltd., H

     Transportation Infrastructure          4,000          2,543  
 

Anhui Gujing Distillery Co. Ltd., A

     Beverages          200          7,629  
 

Anhui Gujing Distillery Co. Ltd., B

     Beverages          700          10,344  
 

Anhui Zhongding Sealing Parts Co. Ltd., A

     Auto Components          400          786  
 

Anker Innovations Technology Co. Ltd., A

     Technology Hardware, Storage & Peripherals          100          778  
 

Anta Sports Products Ltd., A

     Textiles, Apparel & Luxury Goods          6,400          67,833  
 

Apeloa Pharmaceutical Co. Ltd., A

     Pharmaceuticals          400          921  
 

Asymchem Laboratories Tianjin Co. Ltd., A

     Pharmaceuticals          140          2,724  
 

Autohome Inc., ADR

     Software          349          10,037  
 

Avary Holding Shenzhen Co. Ltd., A

     Electronic Equipment, Instruments & Components          400          1,454  
 

Avic Capital Co. Ltd., A

     Diversified Financial Services          3,600          1,520  
 

AVIC Electromechanical Systems Co. Ltd., A

     Aerospace & Defense          1,600          2,545  
 

AviChina Industry & Technology Co. Ltd., H

     Aerospace & Defense          14,000          5,422  
 

AVICOPTER PLC, A

     Aerospace & Defense          400          2,227  
b  

BAIC Motor Corp. Ltd., A, 144A

     Automobiles          14,000          3,068  
a  

Baidu Inc.

     Interactive Media & Services          12,600          183,144  
 

Bank of Beijing Co. Ltd., A

     Banks          8,000          4,612  
 

Bank of Changsha Co. Ltd., A

     Banks          1,200          1,114  
 

Bank of Chengdu Co. Ltd., A

     Banks          400          918  
 

Bank of China Ltd., A

     Banks          18,000          7,802  
 

Bank of China Ltd., H

     Banks          434,000          142,088  
 

Bank of Communications Co. Ltd., A

     Banks          16,000          10,369  

 

           
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FRANKLIN TEMPLETON ETF TRUST

SCHEDULE OF INVESTMENTS (UNAUDITED)

 

Franklin FTSE Asia ex Japan ETF (continued)

 

           Industry        Shares        Value  
    Common Stocks (continued)                    
    China (continued)                         
 

Bank of Communications Co. Ltd., H

     Banks          42,000        $ 22,151  
 

Bank of Guiyang Co. Ltd., A

     Banks          1,200          912  
 

Bank of Hangzhou Co. Ltd., A

     Banks          2,400          4,797  
 

Bank of Jiangsu Co. Ltd., A

     Banks          2,280          2,379  
 

Bank of Nanjing Co. Ltd., A

     Banks          3,600          5,312  
 

Bank of Ningbo Co. Ltd., A

     Banks          2,780          12,303  
 

Bank of Qingdao Co. Ltd., A

     Banks          1,600          761  
 

Bank of Shanghai Co. Ltd., A

     Banks          6,080          4,989  
a  

Bank of Zhengzhou Co. Ltd., A

     Banks          3,484          1,168  
 

Baoshan Iron & Steel Co. Ltd., A

     Metals & Mining          7,200          5,312  
 

BBMG Corp., A

     Construction Materials          2,400          838  
 

BBMG Corp., H

     Construction Materials          16,000          1,936  
a  

BeiGene Ltd.

     Biotechnology          3,400          35,105  
 

Beijing Capital Co. Ltd., A

     Water Utilities          3,200          1,167  
 

Beijing Capital Development Co. Ltd., A

     Real Estate Management & Development          800          492  
a  

Beijing Capital International Airport Co. Ltd., A

     Transportation Infrastructure          10,000          5,414  
a  

Beijing Dabeinong Technology Group Co. Ltd., A

     Food Products          1,200          1,347  
 

Beijing Easpring Material Technology Co. Ltd.

     Chemicals          200          1,852  
a  

Beijing E-Hualu Information Technology Co. Ltd., A

     Software          400          703  
 

Beijing Enlight Media Co. Ltd., H

     Entertainment          1,200          1,195  
 

Beijing Enterprises Holdings Ltd., H

     Industrial Conglomerates          3,000          8,427  
a  

Beijing Jetsen Technology Co. Ltd., A

     Software          1,200          747  
 

Beijing Jingneng Clean Energy Co. Ltd., H

     Independent Power Producers & Energy Traders          10,000          1,911  
 

Beijing Kingsoft Office Software Inc., A

     Software          141          3,978  
 

Beijing New Building Materials PLC, A

     Building Products          800          2,699  
a  

Beijing Orient National Communication Science & Technology Co. Ltd., A

     Software          400          405  
 

Beijing Originwater Technology Co. Ltd., H

     Commercial Services & Supplies          247          164  
 

Beijing Sanju Environmental Protection and New Material Co. Ltd., A

     Chemicals          800          460  
 

Beijing Shiji Information Technology Co. Ltd., A

     Software          800          1,388  
 

Beijing Shougang Co. Ltd., A

     Metals & Mining          2,000          1,002  
 

Beijing Shunxin Agriculture Co. Ltd., A

     Beverages          400          1,117  
 

Beijing Sinnet Technology Co. Ltd., A

     IT Services          800          897  
 

Beijing SL Pharmaceutical Co. Ltd., H

     Biotechnology          400          462  
 

Beijing Tiantan Biological Products Corp. Ltd., A

     Biotechnology          528          1,495  
 

Beijing Tongrentang Co. Ltd., A

     Pharmaceuticals          800          5,111  
 

Beijing Ultrapower Software Co. Ltd., A

     IT Services          800          415  
 

Beijing United Information Technology Co. Ltd., A

     Trading Companies & Distributors          145          2,196  
 

Beijing Wantai Biological Pharmacy Enterprise Co. Ltd., A

     Biotechnology          145          2,327  
 

Beijing Yanjing Brewery Co. Ltd., A

     Beverages          800          1,047  
 

Beijing Yuanliu Hongyuan Electronic Technology Co. Ltd., A

     Electronic Equipment, Instruments & Components          100          1,729  
 

Beijing Zhong Ke San Huan High-Tech Co. Ltd., A

     Electronic Equipment, Instruments & Components          445          864  
 

Beijing-Shanghai High Speed Railway Co. Ltd., A

     Road & Rail          11,600          7,355  
 

BGI Genomics Co. Ltd., A

     Biotechnology          100          748  
a  

Bilibili Inc.

     Entertainment          1,440          21,940  
b  

Blue Moon Group Holdings Ltd., 144A

     Household Products          4,000          2,823  
a  

Blue Sail Medical Co. Ltd., A

     Health Care Equipment & Supplies          400          437  
 

Bluefocus Intelligent Communications Group Co. Ltd., A

     Media          800          503  
 

Bluestar Adisseo Co., A

     Chemicals          400          553  
 

BOC Hong Kong (Holdings) Ltd.

     Banks          20,500          68,291  
 

BOC International China Co. Ltd., A

     Capital Markets          400          589  

 

           
120             

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  franklintempleton.com


FRANKLIN TEMPLETON ETF TRUST

SCHEDULE OF INVESTMENTS (UNAUDITED)

 

Franklin FTSE Asia ex Japan ETF (continued)

 

           Industry        Shares        Value  
    Common Stocks (continued)                    
    China (continued)                         
 

BOE Technology Group Co. Ltd., A

     Electronic Equipment, Instruments & Components          14,800        $ 6,788  
 

BOE Technology Group Co. Ltd., B

     Electronic Equipment, Instruments & Components          5,600          2,390  
 

Boya Bio-pharmaceutical Group Co. Ltd., A

     Biotechnology          400          1,795  
 

Bright Dairy & Food Co. Ltd., A

     Food Products          400          587  
 

BTG Hotels Group Co. Ltd., A

     Hotels, Restaurants & Leisure          400          1,200  
b  

Budweiser Brewing Co. APAC Ltd., H, 144A

     Beverages          9,600          25,132  
 

BYD Co. Ltd., A

     Automobiles          800          28,279  
 

BYD Co. Ltd., H

     Automobiles          4,700          116,394  
 

BYD Electronic International Co. Ltd.

     Communications Equipment          4,500          10,869  
 

By-health Co. Ltd., A

     Personal Products          800          1,975  
 

C&S Paper Co. Ltd., A

     Household Products          400          571  
 

Caitong Securities Co. Ltd., A

     Capital Markets          2,020          1,915  
 

Camel Group Co. Ltd., A

     Electrical Equipment          460          544  
 

CanSino Biologics Inc., A

     Pharmaceuticals          26          441  
b,c  

CanSino Biologics Inc., H, 144A, Reg S

     Pharmaceuticals          400          2,270  
a  

CECEP Solar Energy Co. Ltd., H

     Semiconductors & Semiconductor Equipment          1,200          1,150  
 

CECEP Wind-Power Corp, A

     Independent Power Producers & Energy Traders          2,000          1,234  
 

Central China Securities Co. Ltd., A

     Capital Markets          1,200          587  
 

Central China Securities Co. Ltd., H

     Capital Markets          4,000          515  
 

CGN Power Co. Ltd., A

     Independent Power Producers & Energy Traders          3,200          1,185  
b  

CGN Power Co. Ltd., H, 144A

     Independent Power Producers & Energy Traders          64,000          13,860  
 

Changchun High & New Technology Industry Group Inc., A

     Pharmaceuticals          200          4,779  
 

Changjiang Securities Co. Ltd., A

     Capital Markets          2,400          1,754  
 

Changzhou Xingyu Automotive LightingSystems Co. Ltd., A

     Auto Components          100          2,138  
 

Chaozhou Three-Circle Group Co. Ltd., A

     Electronic Equipment, Instruments & Components          800          2,922  
 

Chengdu Xingrong Environment Co. Ltd., A

     Water Utilities          1,600          1,115  
 

Chengxin Lithium Group Co. Ltd., A

     Paper & Forest Products          400          2,624  
 

China Baoan Group Co. Ltd., A

     Industrial Conglomerates          1,200          1,889  
 

China Cinda Asset Management Co. Ltd., H

     Capital Markets          52,000          5,763  
 

China CITIC Bank Corp. Ltd., A

     Banks          4,400          2,814  
 

China CITIC Bank Corp. Ltd., H

     Banks          54,000          21,463  
 

China Coal Energy Co. Ltd., A

     Oil, Gas & Consumable Fuels          2,000          2,985  
 

China Coal Energy Co. Ltd., H

     Oil, Gas & Consumable Fuels          12,000          10,884  
 

China Communications Services Corp. Ltd., H

     Diversified Telecommunication Services          14,000          4,708  
a  

China Conch Environment Protection Holdings Ltd.

     Commercial Services & Supplies          8,000          4,097  
 

China Conch Venture Holdings Ltd.

     Construction & Engineering          8,500          13,557  
 

China Construction Bank Corp., A

     Banks          4,000          3,097  
 

China Construction Bank Corp., H

     Banks          528,000          305,369  
 

China CSSC Holdings Ltd., A

     Machinery          1,800          5,719  
b,c  

China East Education Holdings Ltd., A, 144A, Reg S

     Diversified Consumer Services          2,000          662  
a  

China Eastern Airlines Corp. Ltd., A

     Airlines          4,400          3,012  
a  

China Eastern Airlines Corp. Ltd., H

     Airlines          8,000          2,721  
 

China Energy Engineering Corp. Ltd.

     Construction & Engineering          13,200          4,147  
 

China Everbright Bank Co. Ltd., A

     Banks          17,200          6,804  
 

China Everbright Bank Co. Ltd., H

     Banks          17,000          4,678  
a  

China Evergrande Group, A

     Real Estate Management & Development          24,000          2,019  
b,c  

China Feihe Ltd., 144A, Reg S

     Food Products          22,000          15,414  
 

China Galaxy Securities Co. Ltd., A

     Capital Markets          800          1,010  
 

China Galaxy Securities Co. Ltd., H

     Capital Markets          21,000          9,711  
 

China Great Wall Securities Co. Ltd., A

     Capital Markets          800          918  
 

China Greatwall Technology Group Co. Ltd., A

     Technology Hardware, Storage & Peripherals          1,200          1,437  
 

China Hongqiao Group Ltd.

     Metals & Mining          12,500          10,350  
 

China International Capital Corp. Ltd., A

     Capital Markets          400          1,931  
b  

China International Capital Corp. Ltd., H, 144A

     Capital Markets          8,500          12,366  

 

           
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SCHEDULE OF INVESTMENTS (UNAUDITED)

 

Franklin FTSE Asia ex Japan ETF (continued)

 

           Industry        Shares        Value  
    Common Stocks (continued)                    
    China (continued)                         
 

China International Marine Containers (Group) Co. Ltd., H

     Machinery          4,200        $ 2,675  
 

China International Marine Containers Group Co. Ltd., A

     Machinery          750          727  
 

China Jinmao Holdings Group Ltd., A

     Real Estate Management & Development          36,000          7,338  
 

China Jushi Co. Ltd., A

     Construction Materials          1,771          3,274  
 

China Lesso Group Holdings Ltd.

     Building Products          5,000          4,656  
 

China Life Insurance Co. Ltd., H

     Insurance          42,000          53,825  
a,b  

China Literature Ltd., A, 144A

     Media          2,400          6,803  
 

China Lodging Group Ltd., ADR

     Hotels, Restaurants & Leisure          1,228          41,187  
 

China Longyuan Power Group Corp., A

     Independent Power Producers & Energy Traders          19,000          23,841  
 

China Medical System Holdings Ltd.

     Pharmaceuticals          7,000          8,356  
 

China Meheco Co. Ltd., A

     Trading Companies & Distributors          560          946  
 

China Meidong Auto Holdings Ltd.

     Specialty Retail          2,000          3,164  
 

China Merchants Bank Co. Ltd., A

     Banks          8,400          39,648  
 

China Merchants Bank Co. Ltd., H

     Banks          21,500          99,969  
 

China Merchants Energy Shipping Co. Ltd., A

     Oil, Gas & Consumable Fuels          4,000          3,984  
 

China Merchants Expressway Network & Technology Holdings Co. Ltd., A

     Transportation Infrastructure          800          851  
 

China Merchants Port Holdings Co. Ltd.

     Transportation Infrastructure          8,000          10,059  
 

China Merchants Property Operation & Service Co. Ltd., A

     Real Estate Management & Development          400          856  
b  

China Merchants Securities Co. Ltd., A, 144A

     Capital Markets          2,400          2,079  
 

China Merchants Securities Co. Ltd., A

     Capital Markets          3,020          5,227  
 

China Merchants Shekou Industrial Zone Holdings Co. Ltd., A

     Real Estate Management & Development          2,800          6,418  
a  

China Minmetals Rare Earth Co. Ltd., A

     Metals & Mining          400          1,477  
 

China Minsheng Banking Corp. Ltd., A

     Banks          14,000          6,657  
 

China Minsheng Banking Corp. Ltd., H

     Banks          36,000          10,319  
 

China Molybdenum Co. Ltd., A

     Metals & Mining          4,000          2,648  
 

China Molybdenum Co. Ltd., H

     Metals & Mining          24,000          9,386  
 

China National Building Material Co. Ltd., H

     Construction Materials          26,000          19,906  
 

China National Chemical Engineering Co. Ltd., A

     Construction & Engineering          2,400          2,697  
 

China National Nuclear Power Co. Ltd., A

     Independent Power Producers & Energy Traders          6,600          5,416  
a  

China Nonferrous Metal Industry’s Foreign Engineeringand Construction Co. Ltd., A

     Metals & Mining          800          494  
 

China Northern Rare Earth Group High-Tech Co. Ltd., A

     Metals & Mining          1,600          5,961  
 

China Oilfield Services Ltd., A

     Energy Equipment & Services          800          1,610  
 

China Oilfield Services Ltd., H

     Energy Equipment & Services          10,000          9,924  
 

China Orient Securities Co. Ltd., A

     Capital Markets          3,072          3,314  
 

China Overseas Land & Investment Ltd., A

     Real Estate Management & Development          22,000          57,313  
 

China Pacific Insurance Group Co. Ltd., A

     Insurance          2,800          7,985  
 

China Pacific Insurance Group Co. Ltd., H

     Insurance          14,800          27,263  
 

China Petroleum & Chemical Corp., A

     Oil, Gas & Consumable Fuels          13,200          7,943  
 

China Petroleum & Chemical Corp., H

     Oil, Gas & Consumable Fuels          146,000          62,679  
 

China Railway Group Ltd., A

     Construction & Engineering          8,000          5,869  
 

China Railway Group Ltd., H

     Construction & Engineering          24,000          11,771  
b,c  

China Railway Signal & Communication Corp. Ltd., 144A, Reg S

     Electronic Equipment, Instruments & Components          8,000          2,201  
 

China Railway Signal & Communication Corp. Ltd., A

     Electronic Equipment, Instruments & Components          2,666          1,552  
 

China Reinsurance Group Corp., H

     Insurance          40,000          2,471  
 

China Resources Cement Holdings Ltd.

     Construction Materials          12,000          5,564  
 

China Resources Double Crane Pharmaceutical Co. Ltd., A

     Pharmaceuticals          400          987  
 

China Resources Microelectronics Ltd., A

     Semiconductors & Semiconductor Equipment          392          2,618  

 

           
122             

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FRANKLIN TEMPLETON ETF TRUST

SCHEDULE OF INVESTMENTS (UNAUDITED)

 

Franklin FTSE Asia ex Japan ETF (continued)

 

           Industry        Shares        Value  
    Common Stocks (continued)                    
    China (continued)                         
b  

China Resources Mixc Lifestyle Services Ltd., 144A

     Real Estate Management & Development          3,400        $ 13,059  
b  

China Resources Pharmaceutical Group Ltd., A, 144A

     Pharmaceuticals          10,000          6,866  
 

China Resources Power Holdings Co. Ltd.

     Independent Power Producers & Energy Traders          10,000          15,542  
 

China Resources Sanjiu Medical & Pharmaceutical Co. Ltd., B

     Pharmaceuticals          400          2,155  
 

China Shenhua Energy Co. Ltd., A

     Oil, Gas & Consumable Fuels          2,800          12,427  
 

China Shenhua Energy Co. Ltd., H

     Oil, Gas & Consumable Fuels          19,500          58,252  
 

China Shipping Container Lines Co. Ltd., A

     Marine          3,200          1,109  
a  

China Shipping Development Co. Ltd., A

     Marine          1,200          3,045  
 

China South Publishing & Media Group Co. Ltd., A

     Media          800          1,104  
a  

China Southern Airlines Co. Ltd., A

     Airlines          4,400          4,098  
a  

China Southern Airlines Co. Ltd., H

     Airlines          8,000          4,219  
 

China Southern Power Grid Energy Efficiency & Clean Energy Co. Ltd., A

     Commercial Services & Supplies          1,200          956  
 

China State Construction Engineering Corp. Ltd., A

     Construction & Engineering          16,800          12,136  
 

China Suntien Green Energy Corp. Ltd.

     Oil, Gas & Consumable Fuels          10,000          3,669  
 

China Taiping Insurance Holdings Co. Ltd.

     Insurance          8,000          6,736  
 

China Three Gorges Renewables Group Co. Ltd., A

     Independent Power Producers & Energy Traders          10,000          7,897  
 

China Tourism Group Duty Free Corp. Ltd., A

     Hotels, Restaurants & Leisure          800          22,247  
b,c  

China Tower Corp. Ltd., H, 144A, Reg S

     Diversified Telecommunication Services          264,000          28,250  
a  

China TransInfo Technology Co. Ltd., A

     IT Services          400          466  
a  

China Travel International Investment Hong Kong Ltd., A

     Hotels, Restaurants & Leisure          16,000          2,813  
 

China United Network Communications Ltd., A

     Wireless Telecommunication Services          10,000          4,699  
 

China Vanke Co. Ltd., A

     Real Estate Management & Development          4,000          10,004  
 

China Vanke Co. Ltd., H

     Real Estate Management & Development          10,800          19,674  
 

China World Trade Center Co. Ltd., A

     Real Estate Management & Development          400          768  
 

China Yangtze Power Co. Ltd., A

     Independent Power Producers & Energy Traders          9,200          29,345  
 

China Zhenhua Group Science & Technology Co. Ltd., A

     Electronic Equipment, Instruments & Components          200          3,254  
a  

China Zheshang Bank Co. Ltd., A

     Banks          2,800          1,170  
 

Chinalin Securities Co. Ltd., A

     Capital Markets          400          732  
 

Chinese Universe Publishing and Media Group Co. Ltd., A

     Media          400          471  
 

Chongqing Brewery Co. Ltd., A

     Beverages          200          3,148  
 

Chongqing Changan Automobile Co. Ltd., A

     Automobiles          3,120          5,497  
 

Chongqing Changan Automobile Co. Ltd., B

     Automobiles          9,438          4,340  
 

Chongqing Fuling Zhacai Group Co. Ltd., A

     Food Products          400          1,525  
 

Chongqing Rural Commercial Bank Co. Ltd., A

     Banks          2,000          1,002  
 

Chongqing Rural Commercial Bank Co. Ltd., H

     Banks          13,000          4,223  
 

Chongqing Water Group Co. Ltd., A

     Water Utilities          400          286  
 

Chongqing Zhifei Biological Products Co. Ltd., B

     Biotechnology          600          7,274  
 

Chow Tai Fook Jewellery Co. Ltd., A

     Specialty Retail          10,000          18,828  
 

CIFI Holdings Group Co. Ltd., A

     Real Estate Management & Development          22,880          2,332  
 

CITIC Ltd., B

     Industrial Conglomerates          28,000          26,395  
 

Citic Pacific Special Steel Group Co. Ltd., A

     Metals & Mining          2,080          5,141  
 

CITIC Securities Co. Ltd., A

     Capital Markets          4,995          12,205  
 

CITIC Securities Co. Ltd., H

     Capital Markets          12,500          21,242  
 

CMST Development Co. Ltd., A

     Air Freight & Logistics          400          273  
 

CNOOC Energy Technology & Services Ltd., A

     Energy Equipment & Services          2,800          1,131  
 

Contemporary Amperex Technology Co. Ltd., H

     Electrical Equipment          1,000          56,233  
 

COSCO SHIPPING Development Co. Ltd., H

     Marine          20,000          2,522  

 

           
franklintempleton.com  

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SCHEDULE OF INVESTMENTS (UNAUDITED)

 

Franklin FTSE Asia ex Japan ETF (continued)

 

           Industry        Shares        Value  
    Common Stocks (continued)                    
    China (continued)                         
a  

COSCO SHIPPING Energy Transportation Co. Ltd., H

     Marine          8,000        $ 6,655  
 

COSCO SHIPPING Holdings Co. Ltd., A

     Marine          5,200          8,038  
 

COSCO SHIPPING Holdings Co. Ltd., B

     Marine          18,950          22,233  
 

Country Garden Holdings Co. Ltd.

     Real Estate Management & Development          52,000          12,056  
 

Country Garden Services Holdings Co. Ltd.

     Commercial Services & Supplies          10,600          15,610  
 

CRRC Corp. Ltd., A

     Machinery          9,200          6,052  
 

CRRC Corp. Ltd., H

     Machinery          24,000          7,766  
b  

CSC Financial Co. Ltd., A, 144A

     Capital Markets          5,000          3,822  
 

CSC Financial Co. Ltd., A

     Capital Markets          2,000          6,500  
 

CSG Holding Co. Ltd.

     Construction Materials          6,101          2,339  
 

CSG Holding Co. Ltd., A

     Construction Materials          800          779  
 

CSPC Pharmaceutical Group Ltd., A

     Pharmaceuticals          48,000          47,573  
 

Daan Gene Co. Ltd.

     Biotechnology          612          1,423  
a  

Dada Nexus Ltd., A, ADR

     Internet & Catalog Retail          392          1,854  
b  

Dali Foods Group Co. Ltd., 144A

     Food Products          12,500          5,382  
 

Daqin Railway Co. Ltd., A

     Road & Rail          6,000          5,698  
a  

Daqo New Energy Corp.

     Semiconductors & Semiconductor Equipment          320          16,986  
a  

Datang International Power Generation Co. Ltd., A

     Independent Power Producers & Energy Traders          3,200          1,490  
a  

Datang International Power Generation Co. Ltd., H

     Independent Power Producers & Energy Traders          16,000          3,057  
 

DHC Software Co. Ltd., A

     IT Services          1,200          897  
 

Dian Diagnostics Group Co. Ltd., A

     Health Care Providers & Services          400          1,628  
 

Digital China Information Service Co. Ltd., H

     IT Services          400          541  
 

Do-Fluoride Chemicals Co. Ltd., A

     Chemicals          400          2,014  
 

Dong-E-E-Jiao Co. Ltd., A

     Pharmaceuticals          400          1,817  
 

Dongfang Electric Corp. Ltd., A

     Electrical Equipment          1,200          3,441  
 

Dongfang Electric Corp. Ltd., H

     Electrical Equipment          2,000          2,726  
 

Dongfeng Motor Group Co. Ltd., H

     Automobiles          16,000          8,561  
 

Dongguan Development Holdings Co. Ltd., A

     Transportation Infrastructure          400          515  
 

Dongxing Securities Co. Ltd., A

     Capital Markets          1,200          1,246  
 

East Group Co. Ltd., A

     Electrical Equipment          400          365  
 

East Money Information Co. Ltd.

     Capital Markets          5,488          13,564  
 

Easyhome New Retail Group Co. Ltd., A

     Multiline Retail          1,200          635  
 

Ecovacs Robotics Co. Ltd., A

     Household Durables          200          1,871  
 

ENN Ecological Holdings Co. Ltd., A

     Chemicals          1,200          3,124  
 

ENN Energy Holdings Ltd.

     Gas Utilities          4,300          57,517  
b  

ESR Cayman Ltd., H, 144A

     Real Estate Management & Development          11,200          28,250  
 

Eternal Asia Supply Chain Management Ltd., A

     Commercial Services & Supplies          1,000          774  
 

Eve Energy Co. Ltd.

     Electrical Equipment          780          9,256  
b  

Everbright Securities Co. Ltd., 144A

     Capital Markets          1,600          864  
 

Everbright Securities Co. Ltd., A

     Capital Markets          1,600          2,951  
a,b  

Evergrande Property Services Group Ltd., 144A

     Real Estate Management & Development          24,000          2,536  
a  

Fangda Carbon New Material Co. Ltd.

     Electrical Equipment          1,660          1,451  
 

Faw Jiefang Group Co. Ltd.

     Automobiles          1,200          1,209  
 

Fiberhome Telecommunication Technologies Co. Ltd., A

     Communications Equipment          400          697  
a  

FIH Mobile Ltd.

     Electronic Equipment, Instruments & Components          20,000          2,064  
 

Financial Street Holdings Co. Ltd., A

     Real Estate Management & Development          1,200          855  
 

First Capital Securities Co. Ltd.

     Capital Markets          1,600          1,223  
a  

Flat Glass Group Co Ltd., H

     Semiconductors & Semiconductor Equipment          3,000          7,299  
a  

Flat Glass Group Co. Ltd., A

     Semiconductors & Semiconductor Equipment          400          1,835  
 

Focus Media Information Technology Co. Ltd.

     Technology Hardware, Storage & Peripherals          6,200          4,801  
 

Foshan Haitian Flavouring & Food Co. Ltd.

     Food Products          1,600          18,587  
 

Fosun International Ltd.

     Industrial Conglomerates          12,000          7,445  
 

Founder Securities Co. Ltd., A

     Capital Markets          3,400          3,124  
 

Foxconn Industrial Internet Co. Ltd., A

     Electronic Equipment, Instruments & Components          5,200          6,214  

 

           
124             

Semiannual Report

  franklintempleton.com


FRANKLIN TEMPLETON ETF TRUST

SCHEDULE OF INVESTMENTS (UNAUDITED)

 

Franklin FTSE Asia ex Japan ETF (continued)

 

           Industry        Shares        Value  
    Common Stocks (continued)                    
    China (continued)                         
 

Fu Jian Anjoy Foods Co. Ltd., A

     Food Products          100        $ 2,178  
 

Fujian Funeng Co. Ltd., A

     Independent Power Producers & Energy Traders          400          600  
 

Fujian Sunner Development Co. Ltd.

     Food Products          400          1,086  
a  

Full Truck Alliance Co. Ltd.

     Road & Rail          3,628          23,763  
 

Fuyao Glass Industry Group Co. Ltd., A

     Auto Components          800          4,018  
b  

Fuyao Group Glass Industries Co. Ltd., 144A

     Auto Components          3,600          14,538  
 

Ganfeng Lithium Co. Ltd.

     Metals & Mining          700          7,348  
b  

Ganfeng Lithium Co. Ltd., H, 144A

     Metals & Mining          1,400          9,319  
a  

GCL System Integration Technology Co. Ltd.

     Semiconductors & Semiconductor Equipment          1,600          709  
a  

GD Power Development Co. Ltd., A

     Independent Power Producers & Energy Traders          6,400          3,654  
a  

GDS Holdings Ltd.

     IT Services          5,200          11,394  
 

GEM Co. Ltd.

     Metals & Mining          2,000          2,070  
 

Gemdale Corp., A

     Real Estate Management & Development          2,000          3,223  
a  

Genscript Biotech Corp.

     Life Sciences Tools & Services          6,000          13,116  
 

GF Securities Co. Ltd.

     Capital Markets          2,500          5,004  
 

GF Securities Co. Ltd., H

     Capital Markets          6,400          6,971  
 

Gigadevice Semiconductor Beijing Inc., A

     Semiconductors & Semiconductor Equipment          300          3,945  
a  

Ginlong Technologies Co. Ltd., A

     Electrical Equipment          150          4,649  
 

Glarun Technology Co. Ltd., A

     Communications Equipment          400          752  
 

GoerTek Inc.

     Electronic Equipment, Instruments & Components          1,200          4,461  
a  

GOME Retail Holdings Ltd.

     Specialty Retail          68,000          1,273  
a  

Grandjoy Holdings Group Co. Ltd., A

     Real Estate Management & Development          800          376  
 

Great Wall Motor Co. Ltd., A

     Automobiles          1,200          4,679  
 

Great Wall Motor Co. Ltd., H

     Automobiles          17,500          20,109  
a  

Greattown Holdings Ltd., A

     Real Estate Management & Development          400          178  
 

Greentown China Holdings Ltd.

     Real Estate Management & Development          5,000          9,401  
 

GRG Banking Equipment Co. Ltd.

     Technology Hardware, Storage & Peripherals          800          915  
 

Guangdong Baolihua New Energy Stock Co. Ltd.

     Independent Power Producers & Energy Traders          1,200          794  
a  

Guangdong Electric Power Development Co. Ltd., A

     Independent Power Producers & Energy Traders          1,200          751  
a  

Guangdong Electric Power Development Co. Ltd., B

     Independent Power Producers & Energy Traders          3,600          968  
 

Guangdong Golden Dragon Development Inc.

     Capital Markets          400          759  
 

Guangdong Haid Group Co. Ltd.

     Food Products          800          6,764  
 

Guangdong HEC Technology Holding Co. Ltd., A

     Metals & Mining          800          988  
 

Guangdong Kinlong Hardware Products Co. Ltd.

     Building Products          100          1,242  
a  

Guangdong LY Intelligent Manufacturing Co. Ltd.

     Electrical Equipment          3,200          1,997  
 

Guangdong Xinbao Electrical Appliances Holdings Co. Ltd.

     Household Durables          400          994  
 

Guanghui Energy Co. Ltd., A

     Oil, Gas & Consumable Fuels          2,400          4,134  
a  

Guangshen Railway Co. Ltd., A

     Road & Rail          1,200          328  
a  

Guangshen Railway Co. Ltd., H

     Road & Rail          8,000          1,090  
 

Guangxi Guiguan Electric Power Co. Ltd., A

     Independent Power Producers & Energy Traders          1,200          986  
 

Guangxi Liugong Machinery Co. Ltd.

     Machinery          500          396  
 

Guangzhou Automobile Group Co. Ltd., A

     Automobiles          1,200          2,042  
 

Guangzhou Automobile Group Co. Ltd., H

     Automobiles          18,000          12,841  
 

Guangzhou Baiyunshan Pharmaceutical Holdings Co. Ltd., A

     Pharmaceuticals          400          1,457  
 

Guangzhou Baiyunshan Pharmceutical Holdings Co. Ltd.

     Pharmaceuticals          1,200          2,593  
 

Guangzhou Haige Communications Group Inc. Co.

     Communications Equipment          800          872  
 

Guangzhou Kingmed Diagnostics Group Co. Ltd.

     Health Care Providers & Services          200          1,778  
 

Guangzhou Shiyuan Electronic Technology Co. Ltd., A

     Electronic Equipment, Instruments & Components          100          837  
 

Guangzhou TInc.i Materials Technology Co. Ltd.

     Chemicals          820          5,068  
 

Guangzhou Yuexiu Financial Holdings Group Co. Ltd., A

     Capital Markets          1,080          860  

 

           
franklintempleton.com  

Semiannual Report

             125


FRANKLIN TEMPLETON ETF TRUST

SCHEDULE OF INVESTMENTS (UNAUDITED)

 

Franklin FTSE Asia ex Japan ETF (continued)

 

           Industry        Shares        Value  
    Common Stocks (continued)                    
    China (continued)                         
 

Guangzhou Zhujiang Brewery Co. Ltd.

     Beverages          400        $ 425  
 

Guizhou Panjiang Refined Coal Co. Ltd., A

     Oil, Gas & Consumable Fuels          800          952  
 

Guizhou Xinbang Pharmaceutical Co. Ltd.

     Pharmaceuticals          400          272  
 

Guolian Securities Co. Ltd., A

     Capital Markets          800          981  
 

Guosen Securities Co. Ltd.

     Capital Markets          1,800          2,171  
a  

Guosheng Financial Holding Inc.

     Electrical Equipment          400          428  
b  

Guotai Junan Securities Co. Ltd., 144A

     Capital Markets          4,000          4,250  
 

Guotai Junan Securities Co. Ltd., A

     Capital Markets          2,800          5,369  
 

Guoxuan High-Tech Co. Ltd.

     Electrical Equipment          800          3,426  
 

Guoyuan Securities Co. Ltd.

     Capital Markets          2,120          1,903  
a,b,c  

Haidilao International Holding Ltd., 144A, Reg S

     Hotels, Restaurants & Leisure          6,200          12,163  
 

Haier Smart Home Co. Ltd., A

     Household Durables          2,400          8,339  
 

Haier Smart Home Co. Ltd., H

     Household Durables          13,200          40,441  
 

Haisco Pharmaceutical Group Co. Ltd.

     Pharmaceuticals          400          1,075  
 

Haitian International Holdings Ltd.

     Machinery          3,000          5,702  
 

Haitong Securities Co. Ltd., A

     Capital Markets          3,600          4,373  
 

Haitong Securities Co. Ltd., H

     Capital Markets          19,200          10,175  
a  

Hang Zhou Great Star Industrial Co. Ltd.

     Household Durables          400          1,066  
 

Hangzhou Binjiang Real Estate Group Co. Ltd.

     Real Estate Management & Development          800          1,175  
 

Hangzhou Chang Chuan Technology Co. Ltd., A

     Semiconductors & Semiconductor Equipment          400          3,199  
 

Hangzhou First Applied Material Co. Ltd., A

     Semiconductors & Semiconductor Equipment          324          2,418  
 

Hangzhou Lion Electronics Co. Ltd., A

     Semiconductors & Semiconductor Equipment          400          2,555  
 

Hangzhou Oxygen Plant Group Co. Ltd.

     Machinery          400          1,924  
 

Hangzhou Robam Appliances Co. Ltd., A

     Household Durables          400          1,287  
 

Hangzhou Shunwang Technology Co. Ltd.

     Entertainment          400          555  
 

Hangzhou Silan Microelectronics Co. Ltd., A

     Semiconductors & Semiconductor Equipment          600          2,697  
 

Hangzhou Tigermed Consulting Co. Ltd.

     Life Sciences Tools & Services          300          3,837  
b,c  

Hangzhou Tigermed Consulting Co. Ltd., A, 144A, Reg S

     Life Sciences Tools & Services          700          5,676  
 

Han’s Laser Technology Industry Group Co. Ltd., A

     Machinery          400          1,462  
b  

Hansoh Pharmaceutical Group Co. Ltd., 144A

     Pharmaceuticals          6,000          9,493  
 

Haohua Chemical Science & Technology Co. Ltd., A

     Chemicals          400          2,183  
 

Hefei Meiya Optoelectronic Technology Inc.

     Machinery          120          385  
 

Heilongjiang Agriculture Co. Ltd., A

     Food Products          800          1,494  
 

Henan Shuanghui Investment & Development Co. Ltd.

     Food Products          1,300          4,460  
 

Hengan International Group Co. Ltd.

     Personal Products          4,000          17,886  
 

Hengdian Group DMEGC Magnetics Co. Ltd.

     Electronic Equipment, Instruments & Components          800          2,221  
 

Hengli Petrochemical Co. Ltd., A

     Chemicals          1,360          3,228  
a  

HengTen Networks Group Ltd.

     Internet & Catalog Retail          16,000          3,424  
 

Hengtong Optic-electric Co. Ltd.

     Communications Equipment          800          2,042  
 

Hengyi Petrochemical Co. Ltd., A

     Chemicals          1,200          1,298  
 

Hesteel Co. Ltd.

     Metals & Mining          5,200          1,641  
 

Hithink RoyalFlush Information Network Co. Ltd., A

     Capital Markets          200          2,174  
a  

Holitech Technology Co. Ltd.

     Electronic Equipment, Instruments & Components          800          292  
 

Hongfa Technology Co. Ltd., A

     Electrical Equipment          560          2,736  
 

Hopson Development Holdings Ltd.

     Real Estate Management & Development          4,257          4,458  
 

Hoshine Silicon Industry Co. Ltd., A

     Chemicals          200          3,073  
a,b,c  

Hua Hong Semiconductor Ltd., 144A

     Semiconductors & Semiconductor Equipment          2,000          4,576  
 

Huadian Power International Corp. Ltd., A

     Independent Power Producers & Energy Traders          2,000          1,669  
 

Huadian Power International Corp. Ltd., H

     Independent Power Producers & Energy Traders          10,000          3,656  
 

Huadong Medicine Co. Ltd., A

     Health Care Providers & Services          800          4,502  
 

Huafa Industrial Co. Ltd. Zhuhai, A

     Real Estate Management & Development          800          1,105  
 

Huafon Chemical Co. Ltd.

     Chemicals          1,600          1,466  
 

Huagong Tech Co. Ltd.

     Electronic Equipment, Instruments & Components          400          1,037  

 

           
126             

Semiannual Report

  franklintempleton.com


FRANKLIN TEMPLETON ETF TRUST

SCHEDULE OF INVESTMENTS (UNAUDITED)

 

Franklin FTSE Asia ex Japan ETF (continued)

 

           Industry        Shares        Value  
    Common Stocks (continued)                    
    China (continued)                         
 

Huaibei Mining Holdings Co. Ltd., A

     Metals & Mining          800        $ 1,891  
 

Hualan Biological Engineering Inc.

     Biotechnology          800          2,038  
a  

Huaneng Power International Inc., A

     Independent Power Producers & Energy Traders          3,200          3,407  
a  

Huaneng Power International Inc., H

     Independent Power Producers & Energy Traders          24,000          10,456  
 

Huapont Life Sciences Co. Ltd.

     Chemicals          1,200          895  
b  

Huatai Securities Co. Ltd., 144A

     Capital Markets          9,200          10,126  
 

Huatai Securities Co. Ltd., A

     Capital Markets          3,000          5,100  
 

Huaxi Securities Co. Ltd.

     Capital Markets          800          823  
 

Huaxia Bank Co. Ltd., A

     Banks          5,600          3,951  
 

Huaxin Cement Co. Ltd., H

     Construction Materials          1,500          1,546  
 

Huaxin Cement Co. Ltd., A

     Construction Materials          400          940  
 

Huayu Automotive Systems Co. Ltd.

     Auto Components          1,200          2,781  
 

Hubei Biocause Pharmaceutical Co. Ltd.

     Insurance          800          340  
 

Hubei Energy Group Co. Ltd.

     Independent Power Producers & Energy Traders          2,400          1,478  
 

Hubei Xingfa Chemicals Group Co. Ltd., A

     Chemicals          400          1,878  
 

Hubei Xinyangfeng Fertilizer Co. Ltd.

     Chemicals          400          728  
 

Huizhou Desay Sv Automotive Co. Ltd.

     Household Durables          200          3,870  
 

Humanwell Healthcare Group Co. Ltd., A

     Pharmaceuticals          800          1,967  
 

Hunan Gold Corp. Ltd.

     Metals & Mining          400          674  
 

Hunan Valin Steel Co. Ltd., A

     Metals & Mining          2,800          1,602  
 

Hundsun Technologies Inc., A

     Software          676          3,214  
 

Huolinhe Opencut Coal Industry Corp. Ltd. of Inner Mongolia

     Oil, Gas & Consumable Fuels          400          733  
a  

HUTCHMED China Ltd.

     Pharmaceuticals          3,000          5,052  
a,b  

Hygeia Healthcare Holdings Co. Ltd., 144A

     Health Care Providers & Services          2,000          11,300  
a  

Hytera Communications Corp. Ltd., A

     Communications Equipment          400          251  
 

Iflytek Co. Ltd.

     Software          900          4,143  
 

Imeik Technology Development Co. Ltd., A

     Biotechnology          100          6,878  
 

Industrial and Commercial Bank of China Ltd.

     Banks          30,400          18,549  
 

Industrial and Commercial Bank of China Ltd., H

     Banks          444,000          208,145  
 

Industrial Bank Co. Ltd., A

     Banks          8,400          19,618  
a  

Industrial Securities Co. Ltd., A

     Capital Markets          3,640          2,783  
 

Ingenic Semiconductor Co. Ltd., A

     Semiconductors & Semiconductor Equipment          200          2,075  
 

Inmyshow Digital Technology Group Co. Ltd.

     Media          800          667  
 

Inner Mongolia BaoTou Steel Union Co. Ltd., A

     Metals & Mining          15,200          3,923  
 

Inner Mongolia ERDOS Resources Co. Ltd., B

     Metals & Mining          2,400          4,543  
 

Inner Mongolia Junzheng Energy & Chemical Industry Group Co. Ltd., A

     Chemicals          3,200          1,764  
 

Inner Mongolia Yili Industrial Group Co. Ltd., A

     Food Products          2,500          11,565  
 

Inner Mongolia Yitai Coal Co. Ltd., B

     Oil, Gas & Consumable Fuels          5,600          8,439  
a,b  

Innovent Biologics Inc., B, 144A

     Biotechnology          7,500          23,360  
 

Inspur Electronic Information Industry Co. Ltd.

     Technology Hardware, Storage & Peripherals          400          1,108  
 

Intco Medical Technology Co. Ltd.

     Health Care Equipment & Supplies          180          503  
a  

Iqiyi Inc., ADR

     Entertainment          1,830          4,959  
 

JA Solar Technology Co. Ltd., A

     Semiconductors & Semiconductor Equipment          840          7,546  
 

Jafron Biomedical Co. Ltd., A

     Health Care Equipment & Supplies          400          2,720  
 

Jason Furniture Hangzhou Co. Ltd., A

     Household Durables          460          2,577  
a,b  

JD Health International Inc., 144A

     Internet & Catalog Retail          4,200          24,130  
a,b  

JD Logistics Inc., 144A

     Air Freight & Logistics          9,200          16,173  
 

JD.com Inc., A

     Internet & Catalog Retail          13,400          339,016  
a  

Jiajiayue Group Co. Ltd., A

     Food & Staples Retailing          400          605  
 

Jiangling Motors Corp. Ltd., A

     Automobiles          400          816  
 

Jiangsu Changjiang Electronics Technology Co. Ltd., A

     Semiconductors & Semiconductor Equipment          800          2,405  
 

Jiangsu Eastern Shenghong Co. Ltd.

     Chemicals          1,600          3,910  
 

Jiangsu Expressway Co. Ltd., A

     Transportation Infrastructure          400          403  
 

Jiangsu Expressway Co. Ltd., H

     Transportation Infrastructure          8,000          6,003  
 

Jiangsu Hengli Hydraulic Co. Ltd., A

     Machinery          496          3,150  

 

           
franklintempleton.com  

Semiannual Report

             127


FRANKLIN TEMPLETON ETF TRUST

SCHEDULE OF INVESTMENTS (UNAUDITED)

 

Franklin FTSE Asia ex Japan ETF (continued)

 

           Industry        Shares        Value  
    Common Stocks (continued)                    
    China (continued)                         
 

Jiangsu Hengrui Medicine Co. Ltd., A

     Pharmaceuticals          2,632        $ 12,959  
 

Jiangsu King’s Luck Brewery JSC Ltd.

     Beverages          500          3,218  
 

Jiangsu Linyang Energy Co. Ltd., A

     Electrical Equipment          800          753  
 

Jiangsu Yanghe Brewery JST Co. Ltd., A

     Beverages          600          13,310  
 

Jiangsu Yangnong Chemical Co. Ltd., A

     Chemicals          100          1,403  
 

Jiangsu Yuyue Medical Equipment & Supply Co. Ltd.

     Health Care Equipment & Supplies          400          1,616  
 

Jiangsu Zhangjiagang Rural Commercial Bank Co. Ltd.

     Banks          480          313  
a  

Jiangsu Zhongnan Construction Group Co. Ltd.

     Real Estate Management & Development          2,000          651  
 

Jiangsu Zhongtian Technology Co. Ltd., A

     Electrical Equipment          1,200          3,782  
 

Jiangxi Copper Co. Ltd., A

     Metals & Mining          800          1,710  
 

Jiangxi Copper Co. Ltd., H

     Metals & Mining          7,000          8,097  
a  

Jiangxi Special Electric Motor Co. Ltd., A

     Electrical Equipment          800          2,203  
a  

Jiangxi Zhengbang Technology Co. Ltd., A

     Food Products          800          502  
 

Jilin Aodong Pharmaceutical Group Co. Ltd.

     Pharmaceuticals          400          751  
a  

Jinke Properties Group Co. Ltd.

     Real Estate Management & Development          2,800          821  
 

Jinke Smart Services Group Co. Ltd., H

     Real Estate Management & Development          1,600          2,426  
b,c  

Jinxin Fertility Group Ltd., 144A, Reg S

     Health Care Providers & Services          8,500          4,169  
 

JiuGui Liquor Co. Ltd., A

     Beverages          100          1,762  
b  

Jiumaojiu International Holdings Ltd., 144A

     Hotels, Restaurants & Leisure          4,000          6,563  
 

Jizhong Energy Resources Co. Ltd., A

     Oil, Gas & Consumable Fuels          1,200          1,220  
 

JoInc.are Pharmaceutical Group Industry Co. Ltd., A

     Pharmaceuticals          800          1,181  
 

Joinn Laboratories China Co. Ltd., A

     Life Sciences Tools & Services          140          1,110  
b  

Joinn Laboratories China Co. Ltd., H, 144A

     Life Sciences Tools & Services          560          2,137  
a  

Jointo Energy Investment Co. Ltd.

     Independent Power Producers & Energy Traders          400          247  
 

Jointown Pharmaceutical Group Co. Ltd., A

     Health Care Providers & Services          800          1,284  
 

Jonjee Hi-Tech Industrial And Commercial Holding Co. Ltd., A

     Food Products          400          1,789  
 

Joyoung Co. Ltd.

     Household Durables          400          829  
 

JOYY Inc., ADR

     Interactive Media & Services          260          6,760  
 

Juewei Food Co. Ltd., A

     Food Products          100          703  
a  

Juneyao Airlines Co. Ltd., A

     Airlines          400          849  
a  

Kaishan Group Co. Ltd., A

     Machinery          400          1,043  
a  

Kanzhun Ltd., ADR

     Interactive Media & Services          768          12,964  
a  

KE Holdings Inc., ADR

     Real Estate Management & Development          3,432          60,129  
 

Keda Industrial Group Co. Ltd.

     Machinery          800          1,878  
 

Kerry Logistics Network Ltd.

     Air Freight & Logistics          1,500          2,412  
 

Kingboard Holdings Ltd.

     Electronic Equipment, Instruments & Components          4,000          11,312  
a  

Kingdee International Software Group Co. Ltd.

     Software          14,000          18,334  
 

Kingfa Sci & Tech Co. Ltd., A

     Chemicals          1,200          1,579  
a  

Kingsoft Cloud Holdings Ltd., ADR

     IT Services          561          1,116  
 

Kingsoft Corp. Ltd.

     Software          5,000          13,312  
a,b  

Kuaishou Technology, B, 144A

     Interactive Media & Services          11,000          71,396  
a  

Kuang-Chi Technologies Co. Ltd.

     Auto Components          800          1,666  
 

Kunlun Tech Co. Ltd.

     Entertainment          400          695  
 

Kweichow Moutai Co. Ltd., A

     Beverages          500          131,327  
a  

KWG Group Holdings Ltd.

     Real Estate Management & Development          8,000          989  
a  

Lakala Payment Co. Ltd., A

     IT Services          400          768  
 

Lao Feng Xiang Co. Ltd., B

     Textiles, Apparel & Luxury Goods          1,200          3,468  
 

Laobaixing Pharmacy Chain JSC

     Food & Staples Retailing          130          585  
 

Lee & Man Paper Manufacturing Ltd.

     Paper & Forest Products          8,000          2,568  
b  

Legend Holdings Corp., 144A

     Technology Hardware, Storage & Peripherals          3,000          2,606  
 

Lenovo Group Ltd.

     Technology Hardware, Storage & Peripherals          44,000          30,604  
 

Lens Technology Co. Ltd.

     Electronic Equipment, Instruments & Components          2,000          2,589  
a  

Leo Group Co. Ltd.

     Media          2,400          589  

 

           
128             

Semiannual Report

  franklintempleton.com


FRANKLIN TEMPLETON ETF TRUST

SCHEDULE OF INVESTMENTS (UNAUDITED)

 

Franklin FTSE Asia ex Japan ETF (continued)

 

           Industry        Shares        Value  
    Common Stocks (continued)                    
    China (continued)                         
 

Lepu Medical Technology Beijing Co. Ltd.

     Health Care Equipment & Supplies          800        $ 2,371  
 

Levima Advanced Materials Corp., A

     Chemicals          400          2,243  
 

Leyard Optoelectronic Co. Ltd.

     Electronic Equipment, Instruments & Components          800          618  
a  

Li Auto Inc., ADR

     Automobiles          2,944          67,741  
 

Li Ning Co. Ltd.

     Textiles, Apparel & Luxury Goods          12,500          95,702  
 

LianChuang Electronic Technology Co. Ltd., A

     Electronic Equipment, Instruments & Components          400          769  
 

Lianhe Chemical Technology Co. Ltd.

     Chemicals          400          1,004  
 

Liaoning Port Co. Ltd., A

     Transportation Infrastructure          7,600          1,706  
 

Liuzhou Iron & Steel Co. Ltd., A

     Metals & Mining          400          190  
 

Livzon Pharmaceutical Group Inc.

     Pharmaceuticals          400          1,689  
 

Livzon Pharmaceutical Group Inc., H

     Pharmaceuticals          900          2,256  
 

Lomon Billions Group Co. Ltd.

     Chemicals          1,000          2,209  
b,c  

Longfor Group Holdings Ltd., 144A, Reg S

     Real Estate Management & Development          10,660          30,622  
 

LONGi Green Energy Technology Co. Ltd., A

     Semiconductors & Semiconductor Equipment          3,052          20,510  
 

Longshine Technology Group Co. Ltd., A

     Software          400          1,203  
 

Luenmei Quantum Co. Ltd., A

     Water Utilities          800          794  
 

Lufax Holding Ltd., ADR

     Consumer Finance          3,908          9,926  
 

Luolai Lifestyle Technology Co. Ltd., A

     Textiles, Apparel & Luxury Goods          400          573  
 

Luxi Chemical Group Co. Ltd., A

     Chemicals          800          1,454  
 

Luxshare Precision Industry Co. Ltd., A

     Electronic Equipment, Instruments & Components          2,800          11,547  
a,b  

Luye Pharma Group Ltd., 144A

     Pharmaceuticals          10,500          2,916  
 

Luzhou Laojiao Co. Ltd., A

     Beverages          600          19,413  
 

Maanshan Iron & Steel Co. Ltd., A

     Metals & Mining          2,000          755  
 

Maanshan Iron & Steel Co. Ltd., H

     Metals & Mining          4,000          831  
 

Mango Excellent Media Co. Ltd.

     Entertainment          840          2,937  
 

Maxscend Microelectronics Co. Ltd., A

     Electronic Equipment, Instruments & Components          160          1,984  
a  

Meinian Onehealth Healthcare Holdings Co. Ltd.

     Health Care Providers & Services          1,720          1,030  
a,b  

Meituan Dianping, B, 144A

     Internet & Catalog Retail          23,200          489,423  
 

Metallurgical Corp. of China Ltd.

     Construction & Engineering          17,000          2,772  
 

Metallurgical Corp. of China Ltd., A

     Construction & Engineering          6,400          2,684  
a  

Microport Scientific Corp.

     Health Care Equipment & Supplies          2,900          4,995  
 

Ming Yang Smart Energy Group Ltd.

     Electrical Equipment          800          2,708  
 

Ming Yuan Cloud Group Holdings Ltd.

     Software          3,000          1,777  
 

MINISO Group Holding Ltd., ADR

     Multiline Retail          416          2,284  
 

Minth Group Ltd.

     Auto Components          4,000          8,856  
a  

MMG Ltd.

     Metals & Mining          16,000          3,832  
 

Montage Technology Co. Ltd.

     Semiconductors & Semiconductor Equipment          339          2,488  
a  

Montnets Rongxin Technology Group Co. Ltd.

     Software          400          549  
 

Muyuan Foods Co. Ltd.

     Food Products          2,096          16,029  
 

NanJi E-Commerce Co. Ltd.

     Media          800          499  
 

Nanjing Hanrui Cobalt Co. Ltd., A

     Metals & Mining          100          615  
 

Nanjing Iron & Steel Co. Ltd., A

     Metals & Mining          2,800          1,072  
 

Nanjing King-Friend Biochemical Pharmaceutical Co. Ltd.

     Pharmaceuticals          520          1,214  
 

Nanjing Securities Co. Ltd., A

     Capital Markets          1,200          1,284  
 

Nanyang Topsec Technologies Group Inc., A

     Electrical Equipment          400          516  
 

Nari Technology Development Co. Ltd., A

     Electrical Equipment          2,880          10,047  
a  

National Silicon Industry Group Co. Ltd., A

     Semiconductors & Semiconductor Equipment          712          1,783  
 

NAURA Technology Group Co. Ltd., A

     Electronic Equipment, Instruments & Components          200          7,810  
 

NavInfo Co. Ltd.

     Household Durables          800          1,295  
 

NetEase Inc.

     Entertainment          10,400          156,996  
 

New China Life Insurance Co. Ltd., A

     Insurance          800          3,023  
 

New China Life Insurance Co. Ltd., H

     Insurance          5,200          9,923  
a  

New Hope Liuhe Co. Ltd.

     Food Products          1,600          3,120  
a  

New Oriental Education & Technology Group Inc., Sponsored ADR

     Diversified Consumer Services          751          18,001  
 

Newland Digital Technology Co. Ltd.

     Software          400          679  

 

           
franklintempleton.com  

Semiannual Report

             129


FRANKLIN TEMPLETON ETF TRUST

SCHEDULE OF INVESTMENTS (UNAUDITED)

 

Franklin FTSE Asia ex Japan ETF (continued)

 

           Industry        Shares        Value  
    Common Stocks (continued)                    
    China (continued)                         
 

Nexteer Automotive Group Ltd.

     Auto Components          5,000        $ 2,713  
 

Nine Dragons Paper Holdings Ltd.

     Paper & Forest Products          9,000          5,595  
 

Ninestar Corp.

     Technology Hardware, Storage & Peripherals          800          4,842  
 

Ningbo Deye Technology Co. Ltd., A

     Machinery          140          8,252  
a  

Ningbo Joyson Electronic Corp.

     Auto Components          500          927  
 

Ningbo Orient Wires & Cables Co. Ltd., A

     Electrical Equipment          300          2,934  
 

Ningbo Ronbay New Energy Technology Co. Ltd.

     Electrical Equipment          200          2,361  
 

Ningbo Sanxing Medical Electric Co. Ltd., A

     Electrical Equipment          400          642  
 

Ningbo Shanshan Co. Ltd., A

     Chemicals          800          2,340  
 

Ningbo Tuopu Group Co. Ltd., A

     Auto Components          400          4,141  
 

Ningbo Zhoushan Port Co. Ltd., A

     Transportation Infrastructure          3,600          1,833  
 

Ningxia Baofeng Energy Group Co. Ltd., A

     Chemicals          1,200          2,242  
a  

NIO Inc., ADR

     Automobiles          7,408          116,824  
b  

Nongfu Spring Co. Ltd., H, 144A

     Beverages          9,600          55,705  
 

North Huajin Chemical Industries Co. Ltd.

     Chemicals          400          399  
 

North Industries Group Red Arrow Co. Ltd., A

     Machinery          400          1,254  
 

Northeast Securities Co. Ltd.

     Capital Markets          800          724  
 

NSFOCUS Information Technology Co. Ltd.

     Software          400          457  
a  

Oceanwide Holdings Co. Ltd.

     Diversified Financial Services          800          134  
a  

Offcn Education Technology Co. Ltd., A

     Diversified Consumer Services          800          454  
 

Offshore Oil Engineering Co. Ltd., A

     Energy Equipment & Services          2,000          1,248  
a  

OFILM Group Co. Ltd.

     Electronic Equipment, Instruments & Components          1,600          1,183  
 

Oppein Home Group Inc., A

     Household Durables          100          1,594  
 

ORG Technology Co. Ltd.

     Containers & Packaging          800          520  
b  

Orient Securities Co. Ltd. of China, 144A

     Capital Markets          4,000          1,569  
 

Oriental Energy Co. Ltd., A

     Oil, Gas & Consumable Fuels          800          855  
a  

Ourpalm Co. Ltd.

     Entertainment          1,600          626  
 

Ovctek China Inc., A

     Health Care Equipment & Supplies          400          2,317  
a  

Pangang Group Vanadium Titanium & Resources Co. Ltd., A

     Metals & Mining          2,800          1,815  
 

People.cn Co. Ltd.

     Media          400          579  
 

Perfect World Co. Ltd.

     Entertainment        400          697  
 

PetroChina Co. Ltd.

     Oil, Gas & Consumable Fuels          10,000          7,196  
 

PetroChina Co. Ltd., H

     Oil, Gas & Consumable Fuels          120,000          49,224  
 

Pharmaron Beijing Co. Ltd., A

     Life Sciences Tools & Services          150          1,137  
b,c  

Pharmaron Beijing Co. Ltd., H, 144A, Reg S

     Life Sciences Tools & Services          1,100          5,346  
 

PICC Property and Casualty Co. Ltd., H

     Insurance          38,000          39,404  
a  

Pinduoduo Inc., ADR

     Internet & Direct Marketing Retail          2,112          132,169  
 

Ping An Bank Co. Ltd., A

     Banks          7,600          12,622  
a,b,c  

Ping An Healthcare and Technology Co. Ltd., 144A, Reg S

     Health Care Technology          2,200          4,148  
 

Ping An Insurance Group Co. of China Ltd., A

     Insurance          4,400          25,663  
 

Ping An Insurance Group Co. of China Ltd., H

     Insurance          34,000          169,786  
 

Pingdingshan Tianan Coal Mining Co. Ltd., A

     Oil, Gas & Consumable Fuels          900          1,722  
 

Poly Developments and Holdings Group Co. Ltd., A

     Real Estate Management & Development          4,800          12,119  
 

Poly Property Services Co. Ltd., H

     Real Estate Management & Development          800          4,245  
b  

Pop Mart International Group Ltd., 144A

     Specialty Retail          4,000          7,358  
b  

Postal Savings Bank of China Co. Ltd., 144A

     Banks          54,000          31,850  
 

Postal Savings Bank of China Co. Ltd.

     Banks          8,400          5,255  
 

Power Construction Corp. of China Ltd.

     Construction & Engineering          4,400          4,302  
 

Qingdao Port International Co. Ltd., A

     Transportation Infrastructure          400          307  
 

Qingdao TGOOD Electric Co. Ltd.

     Electrical Equipment          400          816  
a  

Qinghai Salt Lake Industry Co. Ltd., A

     Chemicals          2,000          6,699  
 

Qinhuangdao Port Co. Ltd., A

     Transportation Infrastructure          800          298  
 

Raytron Technology Co. Ltd., A

     Electronic Equipment, Instruments & Components          126          672  
b  

Red Star Macalline Group Corp. Ltd., 144A

     Real Estate Management & Development          4,000          1,096  
 

Red Star Macalline Group Corp. Ltd., A

     Real Estate Management & Development          420          256  

 

           
130             

Semiannual Report

  franklintempleton.com


FRANKLIN TEMPLETON ETF TRUST

SCHEDULE OF INVESTMENTS (UNAUDITED)

 

Franklin FTSE Asia ex Japan ETF (continued)

 

           Industry        Shares        Value  
    Common Stocks (continued)                    
    China (continued)                         
a,b  

Remegen Co. Ltd., H, 144A

     Biotechnology          1,000        $ 4,847  
a  

RiseSun Real Estate Development Co. Ltd.

     Real Estate Management & Development          1,200          396  
a  

RLX Technology Inc., ADR

     Tobacco          4,056          4,259  
 

Rongsheng Petro Chemical Co. Ltd.

     Chemicals          1,350          2,619  
 

SAIC Motor Corp. Ltd.

     Automobiles          4,000          8,023  
 

Sailun Group Co. Ltd., A

     Auto Components          1,200          1,703  
 

Sangfor Technologies Inc.

     Software          100          1,403  
 

Sansteel Minguang Co. Ltd.

     Metals & Mining          800          549  
 

Sany Heavy Industry Co. Ltd., A

     Machinery          3,200          6,230  
 

SDIC Power Holdings Co. Ltd., A

     Independent Power Producers & Energy Traders          2,800          4,218  
 

Sealand Securities Co. Ltd.

     Capital Markets          1,380          625  
a  

Seazen Group Ltd.

     Real Estate Management & Development          12,000          2,813  
a  

Seazen Holdings Co. Ltd., A

     Real Estate Management & Development          900          2,207  
 

SF Holding Co. Ltd.

     Air Freight & Logistics          2,000          13,247  
 

SG Micro Corp., A

     Semiconductors & Semiconductor Equipment          150          2,964  
 

Shaanxi Coal Industry Co. Ltd.

     Oil, Gas & Consumable Fuels          4,000          12,776  
 

Shaanxi International Trust Co. Ltd.

     Capital Markets          800          324  
a  

Shandong Chenming Paper Holdings Ltd., A

     Paper & Forest Products          800          525  
a  

Shandong Chenming Paper Holdings Ltd., B

     Paper & Forest Products          4,000          1,187  
a  

Shandong Chenming Paper Holdings Ltd., H

     Paper & Forest Products          3,000          829  
 

Shandong Denghai Seeds Co. Ltd.

     Food Products          400          1,071  
b  

Shandong Gold Mining Co. Ltd., 144A

     Metals & Mining          4,000          6,359  
 

Shandong Gold Mining Co. Ltd., A

     Metals & Mining          1,600          3,845  
 

Shandong Himile Mechanical Science &

            
 

Technology Co. Ltd.

     Machinery          400          1,296  
 

Shandong Hi-speed Co. Ltd., A

     Transportation Infrastructure          1,200          914  
 

Shandong Hualu Hengsheng Chemical Co. Ltd., A

     Chemicals          800          3,273  
 

Shandong Humon Smelting Co. Ltd.

     Metals & Mining          400          510  
 

Shandong Linglong Tyre Co. Ltd., A

     Auto Components          400          1,021  
 

Shandong Nanshan Aluminum Co. Ltd., A

     Metals & Mining          4,000          1,689  
 

Shandong Pharmaceutical Glass Co. Ltd., A

     Health Care Equipment & Supplies          400          1,625  
 

Shandong Shida Shenghua Chemical Group Co. Ltd., A

     Chemicals          100          1,356  
 

Shandong Sun Paper Industry JSC Ltd., A

     Paper & Forest Products          800          1,285  
 

Shandong Weigao Group Medical Polymer Co. Ltd., H

     Health Care Equipment & Supplies          13,400          18,026  
 

Shanghai 2345 Network Holding Group Co. Ltd.

     Software          1,200          323  
 

Shanghai AJ Group Co. Ltd., A

     Diversified Financial Services          400          298  
 

Shanghai Bailian Group Co. Ltd., B

     Food & Staples Retailing          1,600          1,072  
 

Shanghai Bairun Investment Holding Group Co. Ltd.

     Beverages          392          1,481  
 

Shanghai Baosight Software Co. Ltd., A

     Software          520          2,683  
 

Shanghai Baosight Software Co. Ltd., B

     Software          2,912          8,474  
 

Shanghai Construction Group Co. Ltd., A

     Construction & Engineering          2,800          994  
 

Shanghai Dazhong Public Utilities Group Co. Ltd., A

     Gas Utilities          800          334  
a  

Shanghai Electric Group Co. Ltd., A

     Electrical Equipment          3,200          1,737  
a  

Shanghai Electric Group Co. Ltd., H

     Electrical Equipment          16,000          3,180  
a  

Shanghai Electric Power Co. Ltd., A

     Independent Power Producers & Energy Traders          1,200          1,513  
 

Shanghai Environment Group Co. Ltd., A

     Commercial Services & Supplies          400          499  
 

Shanghai Fosun Pharmaceutical Group Co. Ltd., A

     Pharmaceuticals          800          3,317  
 

Shanghai Fosun Pharmaceutical Group Co. Ltd., H

     Pharmaceuticals          3,000          7,277  
 

Shanghai Huayi Group Co. Ltd., B

     Chemicals          800          471  
a  

Shanghai International Airport Co. Ltd., A

     Transportation Infrastructure          1,200          9,726  
 

Shanghai International Port Group Co. Ltd., A

     Transportation Infrastructure          4,000          3,120  

 

           
franklintempleton.com  

Semiannual Report

             131


FRANKLIN TEMPLETON ETF TRUST

SCHEDULE OF INVESTMENTS (UNAUDITED)

 

Franklin FTSE Asia ex Japan ETF (continued)

 

           Industry        Shares        Value  
    Common Stocks (continued)                    
    China (continued)                         
 

Shanghai Jinjiang International Hotels Co. Ltd.

     Hotels, Restaurants & Leisure          800        $ 1,486  
 

Shanghai Jinjiang International Hotels Co. Ltd., A

     Hotels, Restaurants & Leisure          400          3,235  
 

Shanghai Jinqiao Export Processing Zone Development Co. Ltd., A

     Real Estate Management & Development          400          597  
 

Shanghai Jinqiao Export Processing Zone Development Co. Ltd., B

     Real Estate Management & Development          1,200          1,068  
a,b  

Shanghai Junshi Biosciences Co. Ltd., H, 144A

     Biotechnology          1,000          3,178  
 

Shanghai Lingang Holdings Corp. Ltd.

     Real Estate Management & Development          520          862  
 

Shanghai Lujiazui Finance & Trade Zone Development Co. Ltd., A

     Real Estate Management & Development          800          1,081  
 

Shanghai Lujiazui Finance & Trade Zone Development Co. Ltd., B

     Real Estate Management & Development          6,000          4,698  
 

Shanghai Mechanical and Electrical Industry Co. Ltd., B

     Machinery          1,600          1,629  
 

Shanghai Pharmaceuticals Holding Co. Ltd., A

     Health Care Providers & Services          1,600          3,705  
 

Shanghai Pharmaceuticals Holding Co. Ltd., H

     Health Care Providers & Services          5,000          6,905  
 

Shanghai Pudong Development Bank Co. Ltd., A

     Banks          12,000          11,850  
 

Shanghai Putailai New Energy Technology Co. Ltd., A

     Chemicals          540          4,227  
 

Shanghai RAAS Blood Products Co. Ltd., A

     Biotechnology          2,000          1,495  
 

Shanghai Shibei Hi-Tech Co. Ltd., B

     Real Estate Management & Development          3,600          882  
a  

Shanghai Shimao Co. Ltd., A

     Real Estate Management & Development          1,600          530  
 

Shanghai Tunnel Engineering Co. Ltd., A

     Construction & Engineering          1,600          1,106  
 

Shanghai Waigaoqiao Free Trade Zone Group Co. Ltd.

     Trading Companies & Distributors          800          686  
 

Shanghai Waigaoqiao Free Trade Zone Group Co. Ltd., A

     Trading Companies & Distributors          400          654  
 

Shanghai Yuyuan Tourist Mart Group Co. Ltd., A

     Specialty Retail          1,600          1,497  
 

Shanghai Zhangjiang High-Tech Park Development Co. Ltd., A

     Real Estate Management & Development          800          1,166  
 

Shanghai Zhenhua Port Machinery Co. Ltd., B

     Machinery          4,400          1,065  
a  

Shangri-La Asia Ltd.

     Hotels, Restaurants & Leisure          6,000          4,166  
 

Shanxi Lu’an Environmental Energy Development Co. Ltd., A

     Oil, Gas & Consumable Fuels          1,200          2,841  
 

Shanxi Meijin Energy Co. Ltd., A

     Metals & Mining          1,600          2,157  
 

Shanxi Securities Co. Ltd.

     Capital Markets          920          653  
 

Shanxi Taigang Stainless Steel Co. Ltd., A

     Metals & Mining          2,400          1,505  
 

Shanxi Xinghuacun Fen Wine Factory Co. Ltd., A

     Beverages          500          21,243  
 

Shanxi Xishan Coal & Electricity Power Co. Ltd.

     Oil, Gas & Consumable Fuels          1,680          3,530  
 

Shanying International Holding Co. Ltd., A

     Paper & Forest Products          1,200          401  
 

Shenghe Resources Holding Co. Ltd., A

     Metals & Mining          800          1,699  
 

Shengyi Technology Co. Ltd., A

     Electronic Equipment, Instruments & Components          800          1,470  
 

Shennan Circuits Co. Ltd., A

     Electronic Equipment, Instruments & Components          100          1,060  
 

Shenwan Hongyuan Group Co. Ltd.

     Capital Markets          8,400          4,548  
b,c  

Shenwan Hongyuan Group Co. Ltd., 144A, Reg S

     Capital Markets          9,600          1,565  
 

Shenzhen Accord Pharmaceutical Co. Ltd., B

     Health Care Providers & Services          400          824  
 

Shenzhen Agricultural Products Group Co. Ltd.

     Food & Staples Retailing          400          291  
 

Shenzhen Airport Co. Ltd.

     Transportation Infrastructure          800          754  
 

Shenzhen Aisidi Co. Ltd.

     Electronic Equipment, Instruments & Components          400          471  
 

Shenzhen Capchem Technology Co. Ltd., A

     Chemicals          360          2,115  
 

Shenzhen Dynanonic Co. Ltd., A

     Chemicals          100          3,953  
 

Shenzhen Energy Group Co. Ltd.

     Independent Power Producers & Energy Traders          2,080          1,637  
a  

Shenzhen Everwin Precision Technology Co. Ltd.

     Electronic Equipment, Instruments & Components          460          692  
 

Shenzhen Expressway Co. Ltd., H

     Transportation Infrastructure          4,000          2,925  
 

Shenzhen Gas Corporation Ltd., A

     Gas Utilities          1,200          1,145  
b  

Shenzhen Hepalink Pharmaceutical Group Co. Ltd., 144A

     Pharmaceuticals          500          330  

 

           
132             

Semiannual Report

  franklintempleton.com


FRANKLIN TEMPLETON ETF TRUST

SCHEDULE OF INVESTMENTS (UNAUDITED)

 

Franklin FTSE Asia ex Japan ETF (continued)

 

           Industry        Shares        Value  
    Common Stocks (continued)                    
    China (continued)                         
 

Shenzhen Huaqiang Industry Co. Ltd.

     Electronic Equipment, Instruments & Components          400        $ 669  
a  

Shenzhen Infogem Technologies Co. Ltd., A

     Software          400          486  
 

Shenzhen Inovance Technology Co. Ltd.

     Machinery          1,200          9,680  
 

Shenzhen International Holdings Ltd.

     Transportation Infrastructure          8,000          6,115  
 

Shenzhen Investment Ltd.

     Real Estate Management & Development          16,000          2,426  
 

Shenzhen Jinjia Group Co. Ltd.

     Containers & Packaging          400          476  
 

Shenzhen Kaifa Technology Co. Ltd.

     Technology Hardware, Storage & Peripherals          400          589  
 

Shenzhen Kangtai Biological Products Co. Ltd.

     Biotechnology          480          2,041  
 

Shenzhen Kedali Industry Co. Ltd., A

     Auto Components          100          1,349  
 

Shenzhen Kingdom Sci-Tech Co. Ltd., A

     Software          400          552  
 

Shenzhen Mindray Bio-Medical Electronics Co. Ltd., A

     Health Care Equipment & Supplies          500          20,970  
a  

Shenzhen MTC Co. Ltd.

     Household Durables          2,400          1,097  
 

Shenzhen Overseas Chinese Town Co. Ltd.

     Hotels, Restaurants & Leisure          2,800          1,889  
 

Shenzhen Salubris Pharmaceuticals Co. Ltd.

     Pharmaceuticals          400          1,371  
 

Shenzhen SC New Energy Technology Corp., A

     Semiconductors & Semiconductor Equipment          100          1,616  
 

Shenzhen Sunway Communication Co. Ltd.

     Communications Equipment          400          794  
 

Shenzhen Transsion Holdings Co. Ltd., A

     Technology Hardware, Storage & Peripherals          246          2,007  
 

Shenzhen Yan Tian Port Holding Co. Ltd., A

     Transportation Infrastructure          800          572  
 

Shenzhen YUTO Packaging Technology Co. Ltd.

     Containers & Packaging          400          1,689  
 

Shenzhen Zhongjin Lingnan Nonfemet Co. Ltd., A

     Metals & Mining          1,200          693  
 

Shenzhou International Group Holdings Ltd.

     Textiles, Apparel & Luxury Goods          4,300          33,606  
a  

Shijiazhuang Changshan BeiMing Technology Co. Ltd.

     Textiles, Apparel & Luxury Goods          400          306  
 

Shijiazhuang Yiling Pharmaceutical Co. Ltd.

     Pharmaceuticals          820          2,497  
a  

Shimao Group Holdings Ltd.

     Real Estate Management & Development          8,500          2,006  
a,b  

Shimao Services Holdings Ltd., Z, 144A

     Real Estate Management & Development          4,000          851  
 

Shui On Land Ltd.

     Real Estate Management & Development          20,500          2,089  
a  

Siasun Robot & Automation Co. Ltd.

     Machinery          400          490  
 

Sichuan Chuantou Energy Co Ltd., A

     Independent Power Producers & Energy Traders          1,600          2,700  
 

Sichuan Hebang Biotechnology Co. Ltd., A

     Chemicals          4,000          1,807  
 

Sichuan Kelun Pharmaceutical Co. Ltd.

     Pharmaceuticals          400          1,237  
a  

Sichuan New Energy Power Co. Ltd.

     Trading Companies & Distributors          400          1,057  
 

Sichuan Road & Bridge Co. Ltd., A

     Construction & Engineering          2,000          2,867  
 

Sichuan Swellfun Co. Ltd., A

     Beverages          200          1,760  
 

Sichuan Yahua Industrial Group Co. Ltd., A

     Chemicals          400          1,426  
 

Sieyuan Electric Co. Ltd.

     Electrical Equipment          400          2,144  
 

Silergy Corp.

     Semiconductors & Semiconductor Equipment          1,840          24,399  
 

Sinolink Securities Co. Ltd., A

     Capital Markets          1,200          1,286  
 

Sinoma International Engineering Co.

     Construction & Engineering          800          921  
 

Sinoma Science & Technology Co. Ltd.

     Chemicals          800          2,235  
 

Sino-Ocean Land Holdings Ltd.

     Real Estate Management & Development          16,000          1,671  
 

Sinopec Engineering Group Co. Ltd.

     Construction & Engineering          8,500          3,411  
a  

Sinopec Oilfield Service Corp.

     Energy Equipment & Services          16,000          927  
a  

Sinopec Oilfield Service Corp., A

     Energy Equipment & Services          1,200          310  
 

Sinopec Shangıhai Petrochemical Co. Ltd., A

     Chemicals          1,600          669  
 

Sinopec Shanghai Petrochemical Co. Ltd., H

     Chemicals          20,000          2,624  
 

Sinopharm Group Co. Ltd., H

     Health Care Providers & Services          7,200          14,437  
 

Sinotrans Ltd., A

     Air Freight & Logistics          2,000          996  
 

Sinotrans Ltd., H

     Air Freight & Logistics          12,000          3,027  
 

Sinotruk Hong Kong Ltd.

     Machinery          4,000          3,348  
 

SITC International Holdings Co. Ltd.

     Marine          7,000          12,948  
a  

Skshu Paint Co. Ltd., A

     Chemicals          100          1,229  
 

Skyworth Digital Co. Ltd., A

     Communications Equipment          400          897  
b  

Smoore International Holdings Ltd., 144A

     Tobacco          10,000          11,962  
 

Songcheng Performance Development Co. Ltd.

     Hotels, Restaurants & Leisure          1,200          2,020  
 

SooChow Securities Co. Ltd., A

     Capital Markets          2,086          1,802  

 

           
franklintempleton.com  

Semiannual Report

             133


FRANKLIN TEMPLETON ETF TRUST

SCHEDULE OF INVESTMENTS (UNAUDITED)

 

Franklin FTSE Asia ex Japan ETF (continued)

 

           Industry        Shares        Value  
    Common Stocks (continued)                    
    China (continued)                         
 

Southwest Securities Co. Ltd., A

     Capital Markets          2,800        $ 1,441  
 

StarPower Semiconductor Ltd., A

     Semiconductors & Semiconductor Equipment          100          4,545  
a  

STO Express Co. Ltd.

     Air Freight & Logistics          400          715  
 

Sun Art Retail Group Ltd.

     Food & Staples Retailing          10,000          2,140  
a  

Sunac China Holdings Ltd.

     Real Estate Management & Development          18,000          2,440  
b  

Sunac Services Holdings Ltd., 144A

     Real Estate Management & Development          4,000          1,004  
 

Sungrow Power Supply Co. Ltd.

     Electrical Equipment          600          9,310  
 

Suning Universal Co. Ltd.

     Real Estate Management & Development          2,000          864  
 

Sunny Optical Technology Group Co. Ltd.

     Electronic Equipment, Instruments & Components          3,700          35,421  
 

Sunwoda Electronic Co. Ltd., A

     Electrical Equipment          800          2,612  
 

Suofeiya Home Collection Co. Ltd.

     Household Durables          400          942  
 

Suzhou Anjie Technology Co. Ltd., A

     Electrical Equipment          400          697  
 

Suzhou Dongshan Precision Manufacturing Co. Ltd., A

     Electronic Equipment, Instruments & Components          800          2,598  
a  

Suzhou Gold Mantis Construction Decoration Co. Ltd.

     Construction & Engineering          800          507  
 

Suzhou Maxwell Technologies Co. Ltd.

     Electrical Equipment          100          6,788  
 

Suzhou TA&A Ultra Clean Technology Co. Ltd., A

     Chemicals          200          1,859  
 

Taiji Computer Corp. Ltd.

     IT Services          400          946  
a  

TAL Education Group, ADR

     Diversified Consumer Services          2,504          12,370  
 

Tangshan Jidong Cement Co. Ltd.

     Construction Materials          1,200          1,407  
 

TangShan Port Group Co. Ltd., A

     Transportation Infrastructure          1,600          579  
 

Tangshan Sanyou Chemical Industries Co. Ltd., A

     Chemicals          800          688  
 

TBEA Co. Ltd., A

     Electrical Equipment          1,600          4,863  
 

TCL Corp.

     Household Durables          5,200          2,648  
 

Tencent Holdings Ltd.

     Interactive Media & Services          33,900          1,150,455  
a  

Tencent Music Entertainment Group, ADR

     Entertainment          3,352          13,609  
 

The People’s Insurance Co. Group of China Ltd., H

     Insurance          46,000          13,361  
 

Thunder Software Technology Co. Ltd.

     Software          200          2,962  
 

Tian Di Science & Technology Co. Ltd., A

     Machinery          1,600          1,071  
 

Tianjin Chase Sun Pharmaceutical Co. Ltd.

     Pharmaceuticals          1,200          885  
 

Tianjin Guangyu Development Co. Ltd., A

     Real Estate Management & Development          800          1,394  
 

Tianjin Zhonghuan Semiconductor Co. Ltd.

     Semiconductors & Semiconductor Equipment          1,200          7,534  
 

Tianma Microelectronics Co. Ltd.

     Electronic Equipment, Instruments & Components          900          1,074  
a  

Tianqi Lithium Corp., A

     Chemicals          800          11,266  
 

Tianshan Aluminum Group Co. Ltd., A

     Machinery          800          803  
 

Tianshui Huatian Technology Co. Ltd., A

     Semiconductors & Semiconductor Equipment          1,200          1,363  
a  

Tibet Summit Resources Co. Ltd., A

     Metals & Mining          400          1,251  
 

Tingyi Cayman Islands Holding Corp.

     Food Products          10,000          17,249  
 

Titan Wind Energy Suzhou Co. Ltd., A

     Electrical Equipment          800          1,420  
a,c  

Tongcheng-Elong Holdings Ltd., Reg S

     Internet & Catalog Retail          4,800          9,417  
a  

TongFu Microelectronics Co. Ltd., A

     Semiconductors & Semiconductor Equipment          400          846  
 

Tongkun Group Co. Ltd., A

     Chemicals          800          1,515  
 

Tongling Nonferrous Metals Group Co. Ltd.

     Metals & Mining          4,400          1,611  
 

Tongwei Co. Ltd., A

     Food Products          2,000          13,174  
a  

Topchoice Medical Investment Corp., A

     Health Care Providers & Services          100          1,795  
b  

Topsports International Holdings Ltd., 144A

     Specialty Retail          10,000          7,045  
 

Towngas China Co. Ltd.

     Gas Utilities          6,000          2,301  
 

TravelSky Technology Ltd., H

     IT Services          5,000          7,656  
 

Trina Solar Co. Ltd., A

     Semiconductors & Semiconductor Equipment          844          7,590  
a  

Trip.com Group Ltd., ADR

     Internet & Catalog Retail          3,024          82,585  
 

Tsingtao Brewery Co. Ltd., A

     Beverages          300          4,469  
 

Tsingtao Brewery Co. Ltd., H

     Beverages          3,500          33,195  
a  

Tuya Inc., ADR

     Software          672          625  

 

           
134             

Semiannual Report

  franklintempleton.com


FRANKLIN TEMPLETON ETF TRUST

SCHEDULE OF INVESTMENTS (UNAUDITED)

 

Franklin FTSE Asia ex Japan ETF (continued)

 

           Industry        Shares        Value  
    Common Stocks (continued)                    
    China (continued)                         
 

Unigroup Guoxin Microelectronics Co. Ltd.

     Electronic Equipment, Instruments & Components          419        $ 8,463  
 

Uni-President China Holdings Ltd.

     Food Products          7,000          5,877  
 

Unisplendour Corp. Ltd.

     Electronic Equipment, Instruments & Components          560          1,246  
 

Universal Scientific Industrial Shanghai Co. Ltd., A

     Electronic Equipment, Instruments & Components          400          846  
 

Valiant Co. Ltd., A

     Chemicals          400          818  
a  

Vipshop Holdings Ltd., ADR

     Internet & Catalog Retail          2,336          19,646  
 

Visual China Group Co. Ltd., A

     Internet & Catalog Retail          400          555  
 

Walvax Biotechnology Co. Ltd.

     Biotechnology          800          4,163  
 

Wangsu Science & Technology Co. Ltd.

     IT Services          800          509  
 

Wanhua Chemical Group Co. Ltd., A

     Chemicals          1,300          16,794  
 

Want Want China Holdings Ltd.

     Food Products          25,000          16,338  
 

Wanxiang Qianchao Co. Ltd.

     Auto Components          1,600          1,104  
a  

Weibo Corp., ADR

     Interactive Media & Services          404          6,908  
 

Weichai Power Co. Ltd., A

     Machinery          2,800          3,778  
 

Weichai Power Co. Ltd., H

     Machinery          11,000          10,440  
 

Weifu High-Technology Co. Ltd., B

     Auto Components          800          1,371  
 

Weifu High-Technology Group Co. Ltd., A

     Auto Components          400          968  
 

Weihai Guangwei Composites Co. Ltd., A

     Chemicals          200          2,326  
a  

Wens Foodstuffs Group Co. Ltd.

     Food Products          800          2,302  
 

Western Mining Co. Ltd., A

     Metals & Mining          800          1,048  
 

Western Securities Co. Ltd.

     Capital Markets          2,000          1,636  
 

Western Superconducting Technologies Co. Ltd., A

     Metals & Mining          135          2,024  
 

Westone Information Industry Inc.

     Electronic Equipment, Instruments & Components          400          1,543  
 

Will Semiconductor Ltd., A

     Semiconductors & Semiconductor Equipment          405          4,552  
 

Wingtech Technology Co. Ltd., A

     Electronic Equipment, Instruments & Components          500          3,343  
 

Winning Health Technology Group Co. Ltd.

     Health Care Technology          800          790  
 

Wolong Electric Group Co. Ltd., A

     Electrical Equipment          400          651  
 

Wuchan Zhongda Group Co. Ltd., A

     Distributors          2,000          1,156  
 

Wuhan Guide Infrared Co. Ltd.

     Electronic Equipment, Instruments & Components          1,142          1,861  
 

Wuhu Sanqi Interactive Entertainment NetworkTechnology Group Co. Ltd.

     Entertainment          1,200          2,932  
 

Wuliangye Yibin Co. Ltd., A

     Beverages          1,600          37,980  
 

WUS Printed Circuit Kunshan Co. Ltd.

     Electronic Equipment, Instruments & Components          800          1,118  
b  

WuXi AppTec Co. Ltd., 144A

     Life Sciences Tools & Services          1,940          15,681  
 

WuXi AppTec Co. Ltd., A

     Life Sciences Tools & Services          1,000          10,056  
a,b  

WuXi Biologics (Cayman) Inc., 144A

     Life Sciences Tools & Services          20,000          120,766  
 

Wuxi Shangji Automation Co. Ltd., A

     Machinery          140          2,649  
 

XCMG Construction Machinery Co. Ltd.

     Machinery          2,800          1,760  
 

Xiamen C & D Inc., A

     Trading Companies & Distributors          1,200          2,331  
 

Xiamen Faratronic Co. Ltd., A

     Electronic Equipment, Instruments & Components          100          2,254  
 

Xiamen ITG Group Corp. Ltd., A

     Trading Companies & Distributors          800          716  
 

Xiamen Tungsten Co. Ltd., A

     Metals & Mining          1,200          3,809  
 

Xiangcai Co. Ltd., A

     Real Estate Management & Development          800          710  
a,b  

Xiaomi Corp., B, 144A

     Technology Hardware, Storage & Peripherals          83,600          95,422  
 

Xinhua Winshare Publishing and Media Co. Ltd., H

     Distributors          2,000          1,271  
 

Xinjiang Goldwind Science & Technology Co. Ltd.

     Electrical Equipment          1,200          1,909  
 

Xinjiang Goldwind Science & Technology Co. Ltd., H

     Electrical Equipment          4,000          4,642  
 

Xinjiang Tianshan Cement Co. Ltd., A

     Construction Materials          800          998  
 

Xinjiang Zhongtai Chemical Co. Ltd., A

     Chemicals          1,200          1,123  
 

Xinxing Ductile Iron Pipes Co. Ltd.

     Metals & Mining          2,000          1,004  
 

Xinyi Solar Holdings Ltd.

     Semiconductors & Semiconductor Equipment          24,000          25,407  
a  

XPeng Inc., ADR

     Automobiles          2,988          35,707  
 

Xtep International Holdings Ltd.

     Textiles, Apparel & Luxury Goods          6,000          6,382  

 

           
franklintempleton.com  

Semiannual Report

             135


FRANKLIN TEMPLETON ETF TRUST

SCHEDULE OF INVESTMENTS (UNAUDITED)

 

Franklin FTSE Asia ex Japan ETF (continued)

 

           Industry        Shares        Value  
    Common Stocks (continued)                    
    China (continued)                         
 

Xuji Electric Co. Ltd., A

     Electrical Equipment          400        $ 934  
b,c  

Yadea Group Holdings Ltd., 144A, Reg S

     Automobiles          5,300          8,507  
 

Yang Quan Coal Industry Group Co. Ltd., A

     Oil, Gas & Consumable Fuels          800          2,050  
a  

Yango Group Co. Ltd.

     Real Estate Management & Development          2,400          656  
b,c  

Yangtze Optical Fibre and Cable Joint Stock Ltd. Co., 144A, Reg S

     Communications Equipment          1,000          2,273  
 

Yangzhou Yangjie Electronic Technology Co. Ltd.

     Semiconductors & Semiconductor Equipment          200          1,386  
 

Yangzijiang Shipbuilding Holdings Ltd.

     Machinery          14,400          10,337  
 

Yantai Changyu Pioneer Wine Co. Ltd., B

     Beverages          1,200          1,761  
 

Yantai Eddie Precision Machinery Co. Ltd., A

     Machinery          440          882  
 

Yantai Jereh Oilfield Services Group Co. Ltd.

     Energy Equipment & Services          400          1,831  
 

Yanzhou Coal Mining Co. Ltd., A

     Oil, Gas & Consumable Fuels          500          3,519  
 

Yanzhou Coal Mining Co. Ltd., H

     Oil, Gas & Consumable Fuels          10,000          36,370  
a  

Yatsen Holding Ltd., ADR

     Personal Products          1,468          1,600  
 

Yealink Network Technology Corp. Ltd.

     Communications Equipment          300          2,651  
a  

Yifan Pharmaceutical Co. Ltd.

     Pharmaceuticals          400          587  
 

Yifeng Pharmacy Chain Co. Ltd.

     Food & Staples Retailing          260          1,815  
 

Yihai International Holding Ltd.

     Food Products          2,600          5,498  
 

Yihai Kerry Arawana Holdings Co. Ltd., A

     Food Products          800          4,847  
 

Yintai Gold Co. Ltd.

     Metals & Mining          800          1,443  
 

YongXing Special Materials Technology Co. Ltd.

     Metals & Mining          200          3,484  
 

Yonyou Network Technology Co. Ltd., A

     Software          1,380          3,407  
 

Youngor Group Co. Ltd., A

     Real Estate Management & Development          2,000          1,773  
 

YTO Express Group Co. Ltd., A

     Air Freight & Logistics          1,200          3,493  
a  

Yuan Longping High-tech Agriculture Co. Ltd.

     Food Products          400          775  
 

Yuexiu Property Co. Ltd.

     Real Estate Management & Development          7,000          8,454  
 

Yum China Holdings Inc.

     Hotels, Restaurants & Leisure          2,400          114,835  
 

Yunda Holding Co. Ltd., A

     Air Freight & Logistics          400          878  
 

Yunnan Aluminium Co. Ltd.

     Metals & Mining          1,200          1,550  
 

Yunnan Baiyao Group Co. Ltd.

     Pharmaceuticals          600          4,406  
 

Yunnan Botanee Bio-Technology Group Co. Ltd., A

     Personal Products          100          2,413  
 

Yunnan Copper Co. Ltd.

     Metals & Mining          800          1,103  
 

Yunnan Energy New Material Co. Ltd.

     Containers & Packaging          300          7,327  
 

Yunnan Hongxiang Yixintang Pharmaceutical Co. Ltd.

     Food & Staples Retailing          200          678  
 

Yunnan Tin Co. Ltd.

     Metals & Mining          600          1,037  
a  

Zai Lab Ltd., ADR

     Biotechnology          524          17,921  
 

Zhangzhou Pientzehuang Pharmaceutical Co. Ltd.

     Pharmaceuticals          300          11,227  
a  

Zhaojin Mining Industry Co. Ltd., H

     Metals & Mining          6,000          4,097  
 

Zhefu Holding Group Co. Ltd.

     Electrical Equipment          2,400          1,316  
a  

Zhejiang Century Huatong Group Co. Ltd., A

     Entertainment          3,200          1,674  
 

Zhejiang China Commodities City Group Co. Ltd., A

     Real Estate Management & Development          2,400          1,501  
 

Zhejiang Chint Electrics Co. Ltd., A

     Electrical Equipment          500          1,878  
 

Zhejiang Crystal-Optech Co. Ltd.

     Electronic Equipment, Instruments & Components          580          868  
 

Zhejiang Dahua Technology Co. Ltd.

     Electronic Equipment, Instruments & Components          1,200          2,163  
 

Zhejiang Dingli Machinery Co. Ltd.

     Machinery          200          1,018  
 

Zhejiang Expressway Co. Ltd., H

     Transportation Infrastructure          8,000          5,452  
 

Zhejiang Hailiang Co. Ltd.

     Metals & Mining          400          650  
 

Zhejiang Hisoar Pharmaceutical Co. Ltd., A

     Pharmaceuticals          400          381  
 

Zhejiang Huace Film & TV Co. Ltd., A

     Entertainment          400          274  
 

Zhejiang Huahai Pharmaceutical Co. Ltd., A

     Pharmaceuticals          400          1,077  
 

Zhejiang Huayou Cobalt Co. Ltd., A

     Metals & Mining          650          5,866  
 

Zhejiang Jingsheng Mechanical & Electrical Co. Ltd., A

     Semiconductors & Semiconductor Equipment          500          4,742  
 

Zhejiang Jiuzhou Pharmaceutical Co. Ltd., A

     Pharmaceuticals          400          2,198  

 

           
136             

Semiannual Report

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FRANKLIN TEMPLETON ETF TRUST

SCHEDULE OF INVESTMENTS (UNAUDITED)

 

Franklin FTSE Asia ex Japan ETF (continued)

 

           Industry      Shares        Value  
    Common Stocks (continued)                  
    China (continued)                       
 

Zhejiang Juhua Co. Ltd., A

     Chemicals        1,200        $ 2,338  
 

Zhejiang Medicine Co. Ltd., A

     Pharmaceuticals        400          760  
 

Zhejiang NHU Co. Ltd.

     Pharmaceuticals        1,344          4,183  
 

Zhejiang Runtu Co. Ltd.

     Chemicals        400          453  
 

Zhejiang Sanhua Intelligent Controls Co. Ltd.

     Machinery        400          1,380  
 

Zhejiang Satellite Petrochemical Co. Ltd.

     Chemicals        867          2,587  
 

Zhejiang Semir Garment Co. Ltd.

     Textiles, Apparel & Luxury Goods        400          268  
 

Zhejiang Supor Co. Ltd.

     Household Durables        200          1,294  
a  

Zhejiang Wanfeng Auto Wheel Co. Ltd.

     Auto Components        2,400          1,788  
a  

Zhejiang Wanliyang Co. Ltd.

     Machinery        400          445  
 

Zhejiang Weiming Environment Protection Co. Ltd., A

     Commercial Services & Supplies        520          1,706  
 

Zhejiang Weixing New Building Materials Co. Ltd., A

     Building Products        800          2,312  
 

Zhejiang Wolwo Bio-Pharmaceutical Co. Ltd., A

     Pharmaceuticals        200          1,367  
 

Zhejiang Yongtai Technology Co. Ltd., A

     Chemicals        400          1,288  
 

Zhengzhou Coal Mining Machinery Group Co. Ltd., A

     Machinery        800          1,458  
 

Zheshang Securities Co. Ltd., A

     Capital Markets        400          532  
a  

Zhihu Inc., ADR

     Interactive Media & Services        892          946  
a,b,c  

ZhongAn Online P & C Insurance Co. Ltd., 144A, Reg S

     Insurance        4,400          9,865  
 

Zhongji Innolight Co. Ltd.

     Machinery        400          1,463  
 

Zhongshan Public Utilities Group Co. Ltd., A

     Water Utilities        800          731  
 

Zhongsheng Group Holdings Ltd.

     Specialty Retail        4,000          15,975  
 

Zhongtai Securities Co. Ltd., A

     Capital Markets        1,200          1,111  
 

Zhuzhau CRRC Times Electric Co. Ltd., A

     Electrical Equipment        228          1,733  
 

Zhuzhou CRRC Times Electric Co. Ltd., H

     Electrical Equipment        3,000          12,612  
 

Zhuzhou Hongda Electronics Corp. Ltd., A

     Electronic Equipment, Instruments & Components        200          1,247  
 

Zhuzhou Kibing Group Co. Ltd., A

     Building Products        800          1,083  
 

Zijin Mining Group Co. Ltd., A

     Metals & Mining        8,400          9,238  
 

Zijin Mining Group Co. Ltd., H

     Metals & Mining        32,000          31,185  
 

Zoomlion Heavy Industry Science and Technology Co. Ltd.

     Machinery        3,200          2,487  
 

Zoomlion Heavy Industry Science and Technology Co. Ltd., H

     Machinery        8,800          3,060  
 

ZTE Corp.

     Communications Equipment        1,600          4,803  
 

ZTE Corp., H

     Communications Equipment        4,400          7,892  
 

ZTO Express Cayman Inc.

     Air Freight & Logistics        2,600          62,368  
            

 

 

 
               10,359,464  
            

 

 

 
    Hong Kong 7.5%                       
 

AIA Group Ltd., A

     Insurance        67,400          561,960  
a  

Alibaba Health Information Technology Ltd., A

     Health Care Technology        26,000          11,924  
a  

Alibaba Pictures Group Ltd., A

     Media        80,000          4,127  
 

ASM Pacific Technology Ltd., A

     Semiconductors & Semiconductor Equipment        1,800          10,961  
 

Beijing Enterprises Water Group Ltd., A

     Water Utilities        24,000          5,534  
 

Bosideng International Holdings Ltd., A

     Household Durables        16,000          7,929  
 

Cafe de Coral Holdings Ltd., A

     Hotels, Restaurants & Leisure        2,000          2,489  
a  

Cathay Pacific Airways Ltd., A

     Airlines        6,000          6,329  
 

Champion REIT, A

     Equity Real Estate Investment Trusts (REITs      12,000          4,234  
 

China Everbright Environment Group Ltd., B

     Commercial Services & Supplies        21,000          8,721  
 

China Everbright Ltd., A

     Capital Markets        4,000          2,313  
 

China Gas Holdings Ltd., A

     Gas Utilities        16,800          20,139  
 

China Mengniu Dairy Co. Ltd., B

     Food Products        17,000          67,459  
 

China Power International Development Ltd., H

     Independent Power Producers & Energy Traders        32,000          12,759  
 

China Resources Beer Holdings Co. Ltd., A

     Beverages        8,960          62,378  
 

China Resources Gas Group Ltd., A

     Gas Utilities        5,100          16,210  

 

           
franklintempleton.com  

Semiannual Report

             137


FRANKLIN TEMPLETON ETF TRUST

SCHEDULE OF INVESTMENTS (UNAUDITED)

 

Franklin FTSE Asia ex Japan ETF (continued)

 

           Industry      Shares        Value  
    Common Stocks (continued)                  
    Hong Kong (continued)                       
 

China Resources Land Ltd., H

     Real Estate Management & Development        16,000        $ 62,982  
 

China State Construction International Holdings Ltd., A

     Construction & Engineering        10,000          10,128  
 

China Traditional Chinese Medicine Co. Ltd.

     Pharmaceuticals        14,000          4,887  
 

CK Asset Holdings Ltd.

     Real Estate Management & Development        11,000          66,141  
 

CK Infrastructure Holdings Ltd., A

     Electric Utilities        3,300          16,837  
 

CLP Holdings Ltd.

     Electric Utilities        9,000          68,045  
 

COSCO SHIPPING Ports Ltd., B

     Transportation Infrastructure        10,000          6,306  
 

Dah Sing Banking Group Ltd., A

     Banks        2,400          1,590  
 

Dah Sing Financial Group, H

     Banks        800          1,822  
 

Dairy Farm International Holdings Ltd., A

     Food & Staples Retailing        1,700          3,927  
 

Far East Horizon Ltd.

     Diversified Financial Services        8,000          5,401  
 

Geely Automobile Holdings Ltd.

     Automobiles        31,000          42,729  
 

Guangdong Investment Ltd.

     Water Utilities        16,000          12,821  
 

Guotai Junan International Holdings Ltd.

     Capital Markets        14,000          1,034  
a  

Haitong International Securities Group Ltd.

     Capital Markets        17,600          1,502  
 

Hang Lung Group Ltd.

     Real Estate Management & Development        5,000          8,077  
 

Hang Lung Properties Ltd.

     Real Estate Management & Development        10,000          16,408  
 

Hang Seng Bank Ltd.

     Banks        4,100          62,258  
 

Henderson Land Development Co. Ltd.

     Real Estate Management & Development        7,000          19,618  
 

Hong Kong and China Gas Co. Ltd.

     Gas Utilities        62,000          54,655  
 

Hong Kong Exchanges and Clearing Ltd.

     Capital Markets        7,200          247,280  
 

Hongkong Land Holdings Ltd.

     Real Estate Management & Development        6,400          28,288  
 

Huabao International Holdings Ltd.

     Chemicals        5,000          2,318  
 

Hutchison Port Holdings Trust

     Transportation Infrastructure        30,000          5,520  
 

Hutchison Telecommunications Hong Kong Holdings Ltd.

     Diversified Telecommunication Services        8,000          1,172  
 

Hysan Development Co. Ltd.

     Real Estate Management & Development        3,000          7,559  
 

Jardine Matheson Holdings Ltd.

     Industrial Conglomerates        1,120          56,717  
 

Johnson Electric Holdings Ltd.

     Electrical Equipment        2,000          2,008  
 

Kerry Properties Ltd.

     Real Estate Management & Development        3,500          6,643  
 

Kingboard Laminates Holdings Ltd.

     Electronic Equipment, Instruments & Components        6,000          5,404  
 

Kunlun Energy Co. Ltd.

     Oil, Gas & Consumable Fuels        22,000          15,891  
 

Link REIT

     Equity Real Estate Investment Trusts (REITs      12,000          83,925  
 

Man Wah Holdings Ltd.

     Household Durables        8,800          5,605  
a  

Melco International Development Ltd.

     Hotels, Restaurants & Leisure        4,000          3,108  
 

MTR Corp. Ltd.

     Road & Rail        8,500          39,036  
 

New World Development Co. Ltd.

     Real Estate Management & Development        8,000          22,726  
 

NWS Holdings Ltd.

     Industrial Conglomerates        8,000          7,236  
 

Orient Overseas International Ltd.

     Marine        750          13,137  
 

PCCW Ltd.

     Diversified Telecommunication Services        24,000          10,854  
 

Power Assets Holdings Ltd.

     Electric Utilities        8,000          40,153  
 

Shanghai Industrial Holdings Ltd.

     Industrial Conglomerates        3,000          3,248  
 

Shougang Fushan Resources Group Ltd.

     Metals & Mining        8,000          2,334  
 

Sino Biopharmaceutical Ltd.

     Pharmaceuticals        56,000          26,324  
 

Sino Land Co. Ltd.

     Real Estate Management & Development        20,000          26,446  
 

Sun Hung Kai Properties Ltd.

     Real Estate Management & Development        8,000          88,511  
 

Swire Pacific Ltd., A

     Real Estate Management & Development        3,000          22,453  
 

Swire Pacific Ltd., B

     Real Estate Management & Development        5,000          5,841  
 

Swire Properties Ltd.

     Real Estate Management & Development        6,400          13,779  
 

Techtronic Industries Co. Ltd.

     Household Durables        7,500          72,469  
 

The Bank of East Asia Ltd., A

     Banks        5,600          6,135  
 

The Wharf Holdings Ltd.

     Real Estate Management & Development        7,000          22,427  
 

United Energy Group Ltd.

     Oil, Gas & Consumable Fuels        40,000          4,586  
 

Vinda International Holdings Ltd.

     Household Products        1,000          2,354  
a  

Vitasoy International Holdings Ltd.

     Food Products        4,000          4,978  
 

VTech Holdings Ltd.

     Communications Equipment        900          5,165  
b  

WH Group Ltd., 144A, Reg S

     Food Products        44,000          27,746  

 

           
138             

Semiannual Report

  franklintempleton.com


FRANKLIN TEMPLETON ETF TRUST

SCHEDULE OF INVESTMENTS (UNAUDITED)

 

Franklin FTSE Asia ex Japan ETF (continued)

 

           Industry        Shares        Value  
    Common Stocks (continued)                    
    Hong Kong (continued)                         
 

Wharf Real Estate Investment Co. Ltd.

     Real Estate Management & Development          9,000        $ 40,930  
 

Xinyi Glass Holdings Ltd.

     Auto Components          11,000          16,003  
 

Yue Yuen Industrial Holdings Ltd.

     Textiles, Apparel & Luxury Goods          4,000          5,116  
              

 

 

 
                 2,274,059  
              

 

 

 
    India 18.9%                         
a  

3M India Ltd.

     Industrial Conglomerates          16          4,839  
 

Aarti Industries Ltd.

     Chemicals          1,064          9,745  
 

ABB India Ltd.

     Electrical Equipment          308          11,693  
 

ACC Ltd.

     Construction Materials          488          14,491  
 

Adani Enterprises Ltd.

     Trading Companies & Distributors          1,496          63,549  
a  

Adani Green Energy Ltd.

     Independent Power Producers & Energy Traders          2,236          62,140  
 

Adani Ports & Special Economic Zone Ltd.

     Transportation Infrastructure          4,508          45,475  
a  

Adani Power Ltd.

     Independent Power Producers & Energy Traders          5,496          25,233  
 

Adani Total Gas Ltd.

     Gas Utilities          1,524          62,567  
a  

Adani Transmission Ltd.

     Electric Utilities          1,416          57,262  
a  

Adani Wilmar Ltd.

     Food Products          880          8,172  
a  

Aditya Birla Capital Ltd.

     Diversified Financial Services          2,745          3,772  
 

Alkem Laboratories Ltd.

     Pharmaceuticals          148          5,962  
 

Ambuja Cements Ltd.

     Construction Materials          3,908          24,769  
 

Apollo Hospitals Enterprise Ltd.

     Health Care Providers & Services          560          30,174  
 

Ashok Leyland Ltd.

     Machinery          8,080          15,162  
 

Asian Paints Ltd.

     Chemicals          2,508          103,045  
 

Astral Ltd.

     Building Products          500          13,721  
b  

AU Small Finance Bank Ltd., 144A

     Banks          1,792          13,640  
 

Aurobindo Pharma Ltd.

     Pharmaceuticals          1,504          9,440  
a,b  

Avenue Supermarts Ltd., 144A

     Food & Staples Retailing          804          43,353  
 

Axis Bank Ltd.

     Banks          12,688          114,354  
 

Bajaj Auto Ltd.

     Automobiles          392          16,999  
 

Bajaj Finance Ltd.

     Consumer Finance          1,316          118,669  
 

Bajaj Finserv Ltd.

     Diversified Financial Services          2,080          42,912  
 

Bajaj Holdings & Investment Ltd.

     Diversified Financial Services          148          11,626  
 

Balkrishna Industries Ltd.

     Auto Components          448          10,373  
a,b  

Bandhan Bank Ltd, 144A

     Banks          4,568          14,970  
 

Bank of Baroda

     Banks          5,904          9,609  
 

Bank of India

     Banks          2,744          1,626  
 

Bata India Ltd.

     Textiles, Apparel & Luxury Goods          352          7,881  
 

Bayer CropScience Ltd.

     Chemicals          68          4,082  
 

Berger Paints India Ltd.

     Chemicals          1,380          10,466  
 

Bharat Electronics Ltd.

     Aerospace & Defense          18,684          23,185  
 

Bharat Forge Ltd.

     Auto Components          1,416          12,106  
a  

Bharat Heavy Electricals Ltd.

     Electrical Equipment          7,456          5,490  
 

Bharat Petroleum Corp. Ltd.

     Oil, Gas & Consumable Fuels          5,748          21,536  
 

Bharti Airtel Ltd.

     Wireless Telecommunication Services          840          4,151  
 

Bharti Airtel Ltd.

     Wireless Telecommunication Services          13,016          127,982  
 

Bharti Infratel Ltd.

     Diversified Telecommunication Services          4,984          12,097  
 

Biocon Ltd.

     Biotechnology          2,520          9,013  
 

Bosch Ltd.

     Auto Components          48          9,331  
 

Britannia Industries Ltd.

     Food Products          684          32,312  
 

Canara Bank Ltd.

     Banks          2,128          5,984  
 

Castrol India Ltd.

     Chemicals          2,816          3,901  
a  

CG Power & Industrial Solutions Ltd.

     Electrical Equipment          3,952          11,450  
 

Cholamandalam Investment and Finance Co. Ltd.

     Consumer Finance          2,304          20,737  
 

Cipla Ltd.

     Pharmaceuticals          2,896          39,691  
 

Coal India Ltd.

     Oil, Gas & Consumable Fuels          10,728          27,990  
 

Coforge Ltd.

     IT Services          204          8,431  
 

Colgate-Palmolive India Ltd.

     Personal Products          744          14,902  
 

Container Corp. Of India Ltd.

     Road & Rail          1,564          13,682  

 

           
franklintempleton.com  

Semiannual Report

             139


FRANKLIN TEMPLETON ETF TRUST

SCHEDULE OF INVESTMENTS (UNAUDITED)

 

Franklin FTSE Asia ex Japan ETF (continued)

 

           Industry      Shares        Value  
    Common Stocks (continued)                  
    India (continued)                       
 

Coromandel International Ltd.

     Chemicals        632        $ 7,724  
 

Cummins India Ltd.

     Machinery        756          11,113  
 

Dabur India Ltd.

     Personal Products        3,284          23,129  
 

Dalmia Bharat Ltd.

     Construction Materials        480          9,429  
 

Deepak Nitrite Ltd.

     Chemicals        424          10,612  
 

Divi’s Laboratories Ltd.

     Life Sciences Tools & Services        676          30,789  
 

Dixon Technologies India Ltd.

     Household Durables        204          10,962  
 

DLF Ltd.

     Real Estate Management & Development        3,440          15,083  
b  

Dr Lal PathLabs Ltd., 144A

     Health Care Providers & Services        200          6,192  
 

Dr Reddy’s Laboratories Ltd.

     Pharmaceuticals        684          36,454  
 

Eicher Motors Ltd.

     Automobiles        792          35,745  
 

Emami Ltd.

     Personal Products        1,240          7,687  
 

Embassy Office Parks REIT

     Equity Real Estate Investment Trusts (REITs      3,053          12,979  
 

Exide Industries Ltd.

     Auto Components        2,508          4,839  
 

Federal Bank Ltd.

     Banks        7,508          10,960  
a  

FSN E-Commerce Ventures Ltd.

     Internet & Catalog Retail        332          5,192  
 

GAIL India Ltd.

     Gas Utilities        15,234          16,301  
b  

General Insurance Corp. of India, 144A

     Insurance        592          895  
 

Gillette India Ltd.

     Personal Products        48          3,053  
 

GlaxoSmithKline Pharmaceuticals Ltd.

     Pharmaceuticals        228          3,992  
 

Glenmark Pharmaceuticals Ltd.

     Pharmaceuticals        808          3,860  
a  

GMR Infrastructure Ltd.

     Construction & Engineering        13,596          5,941  
a  

Godrej Consumer Products Ltd.

     Personal Products        2,100          23,502  
a  

Godrej Industries Ltd.

     Chemicals        480          2,590  
a  

Godrej Properties Ltd.

     Real Estate Management & Development        504          7,397  
 

Grasim Industries Ltd.

     Construction Materials        2,184          44,964  
 

Gujarat Fluorochemicals Ltd.

     Chemicals        196          9,505  
 

Gujarat Gas Ltd.

     Gas Utilities        1,176          7,275  
 

Havells India Ltd.

     Electrical Equipment        1,376          22,810  
 

HCL Technologies Ltd.

     IT Services        6,180          70,828  
b  

HDFC Asset Management Co. Ltd., 144A

     Capital Markets        320          7,433  
b  

HDFC Life Insurance Co. Ltd., 144A

     Insurance        5,520          35,993  
 

Hero MotoCorp Ltd.

     Automobiles        680          21,308  
 

Hindalco Industries Ltd.

     Metals & Mining        7,956          38,195  
 

Hindustan Aeronautics Ltd.

     Aerospace & Defense        472          13,605  
 

Hindustan Petroleum Corp. Ltd.

     Oil, Gas & Consumable Fuels        3,952          10,508  
 

Hindustan Unilever Ltd.

     Household Products        4,964          164,536  
 

Hindustan Zinc Ltd.

     Metals & Mining        1,380          4,533  
 

Honeywell Automation India Ltd.

     Electronic Equipment, Instruments & Components        13          6,393  
 

Housing Development Finance Corp. Ltd.

     Thrifts & Mortgage Finance        9,900          278,407  
 

ICICI Bank Ltd.

     Banks        8,904          94,347  
b,c  

ICICI Lombard General Insurance Co. Ltd., 144A, Reg S

     Insurance        1,356          19,188  
b,c  

ICICI Prudential Life Insurance Co. Ltd., 144A, Reg S

     Insurance        2,180          14,094  
a  

IDFC First Bank Ltd.

     Banks        17,928          10,986  
 

Indian Hotels Co. Ltd.

     Hotels, Restaurants & Leisure        4,660          19,001  
 

Indian Oil Corp. Ltd.

     Oil, Gas & Consumable Fuels        23,226          19,114  
 

Indian Railway Catering and Tourism Corp. Ltd.

     Commercial Services & Supplies        1,452          12,601  
b  

Indian Railway Finance Corp. Ltd., 144A

     Diversified Financial Services        10,936          2,857  
 

Indraprastha Gas Ltd.

     Gas Utilities        1,992          9,716  
 

Info Edge India Ltd.

     Interactive Media & Services        428          20,311  
 

Infosys Ltd.

     IT Services        20,236          351,594  
a,b,c  

InterGlobe Aviation Ltd., 144A, Reg S

     Airlines        540          12,315  
 

Ipca Laboratories Ltd.

     Pharmaceuticals        792          8,908  
 

ITC Ltd.

     Tobacco        16,844          68,783  
 

Jindal Steel & Power Ltd.

     Metals & Mining        2,244          11,823  
 

JSW Energy Ltd.

     Independent Power Producers & Energy Traders        2,124          7,842  

 

           
140             

Semiannual Report

  franklintempleton.com


FRANKLIN TEMPLETON ETF TRUST

SCHEDULE OF INVESTMENTS (UNAUDITED)

 

Franklin FTSE Asia ex Japan ETF (continued)

 

           Industry        Shares        Value  
    Common Stocks (continued)                    
    India (continued)                         
 

JSW Steel Ltd.

     Metals & Mining          5,700        $ 44,258  
 

Jubilant Foodworks Ltd.

     Hotels, Restaurants & Leisure          2,080          15,921  
 

Kansai Nerolac Paints Ltd.

     Chemicals          772          4,647  
 

L&T Finance Holdings Ltd.

     Diversified Financial Services          5,140          4,720  
b  

L&T Technology Services Ltd., 144A

     Professional Services          152          6,711  
b,c  

Larsen & Toubro Infotech Ltd.,, 144A, Reg S

     IT Services          256          14,028  
 

Larsen & Toubro Ltd.

     Construction & Engineering          3,816          86,671  
b  

Laurus Labs Ltd., 144A

     Pharmaceuticals          2,064          13,016  
 

LIC Housing Finance Ltd.

     Thrifts & Mortgage Finance          1,912          9,727  
 

Linde India Ltd.

     Chemicals          120          4,885  
 

Lupin Ltd.

     Pharmaceuticals          1,404          11,733  
 

Macrotech Developers Ltd.

     Real Estate Management & Development          440          4,999  
 

Mahindra & Mahindra Financial Services Ltd.

     Consumer Finance          3,464          7,888  
 

Mahindra & Mahindra Ltd.

     Automobiles          5,236          81,625  
a  

Mangalore Refinery & Petrochemicals Ltd.

     Oil, Gas & Consumable Fuels          892          651  
 

Marico Ltd.

     Personal Products          2,988          19,755  
 

Maruti Suzuki India Ltd.

     Automobiles          752          81,606  
a  

Max Financial Services Ltd.

     Insurance          1,400          13,124  
a  

Max Healthcare Institute Ltd.

     Health Care Providers & Services          4,124          20,678  
 

Minda Industries Ltd.

     Auto Components          968          6,653  
 

Mindtree Ltd.

     IT Services          240          9,320  
 

Mphasis Ltd.

     IT Services          516          13,242  
 

MRF Ltd.

     Auto Components          15          15,056  
 

Muthoot Finance Ltd.

     Consumer Finance          616          7,875  
 

Nestle India Ltd.

     Food Products          204          48,008  
 

NHPC Ltd.

     Independent Power Producers & Energy Traders          13,216          5,800  
b  

Nippon Life India Asset Management Ltd., 144A

     Capital Markets          904          2,985  
 

NMDC Ltd.

     Metals & Mining          6,544          10,276  
 

NTPC Ltd.

     Independent Power Producers & Energy Traders          24,944          48,952  
 

Oberoi Realty Ltd.

     Real Estate Management & Development          688          7,762  
 

Oil & Natural Gas Corp. Ltd.

     Oil, Gas & Consumable Fuels          21,152          32,969  
 

Oil India Ltd.

     Oil, Gas & Consumable Fuels          1,956          4,194  
 

One 97 Communications Ltd.

     IT Services          524          4,109  
 

Oracle Financial Services Software Ltd.

     Software          136          4,986  
 

Page Industries Ltd.

     Textiles, Apparel & Luxury Goods          33          20,553  
a  

PB Fintech Ltd.

     Insurance          900          5,228  
 

Persistent Systems Ltd.

     IT Services          280          11,156  
 

Petronet LNG Ltd.

     Oil, Gas & Consumable Fuels          4,348          10,684  
 

PI Industries Ltd.

     Chemicals          416          15,332  
 

Pidilite Industries Ltd.

     Chemicals          852          28,176  
 

Piramal Enterprises Ltd.

     Pharmaceuticals          724          7,692  
a  

Piramal Pharma Ltd.

     Pharmaceuticals          2,896          7,801  
 

Polycab India Ltd.

     Electrical Equipment          152          4,785  
 

Power Finance Corp. Ltd.

     Diversified Financial Services          6,840          8,795  
 

Power Grid Corp. of India Ltd.

     Electric Utilities          17,892          46,670  
 

Punjab National Bank

     Banks          6,412          2,881  
 

Rajesh Exports Ltd.

     Textiles, Apparel & Luxury Goods          788          5,606  
a,b,c  

RBL Bank Ltd., 144A, Reg S

     Banks          2,720          3,803  
 

REC Ltd.

     Diversified Financial Services          7,274          8,405  
 

Relaxo Footwears Ltd.

     Textiles, Apparel & Luxury Goods          420          5,198  
 

Reliance Industries Ltd.

     Oil, Gas & Consumable Fuels          19,020          555,920  
 

Samvardhana Motherson International Ltd.

     Auto Components          8,348          11,185  
 

SBI Cards & Payment Services Ltd.

     Consumer Finance          1,660          18,640  
b  

SBI Life Insurance Co. Ltd., 144A

     Insurance          2,388          36,706  
 

Schaeffler India Ltd.

     Machinery          228          9,003  
 

Shree Cement Ltd.

     Construction Materials          76          19,650  
 

Shriram Transport Finance Co. Ltd.

     Consumer Finance          1,152          16,958  
 

Siemens Ltd.

     Industrial Conglomerates          448          15,259  

 

           
franklintempleton.com  

Semiannual Report

             141


FRANKLIN TEMPLETON ETF TRUST

SCHEDULE OF INVESTMENTS (UNAUDITED)

 

Franklin FTSE Asia ex Japan ETF (continued)

 

           Industry        Shares        Value  
    Common Stocks (continued)                    
    India (continued)                         
b  

Sona Blw Precision Forgings Ltd., 144A

     Auto Components          1,472        $ 8,391  
 

SRF Ltd.

     Chemicals          788          24,249  
a  

Star Health & Allied Insurance Co. Ltd.

     Insurance          468          4,063  
 

State Bank of India

     Banks          10,164          66,293  
 

Steel Authority of India Ltd.

     Metals & Mining          8,056          7,600  
 

Sun Pharmaceutical Industries Ltd.

     Pharmaceuticals          6,180          72,066  
 

Sun TV Network Ltd.

     Media          572          3,578  
 

Tata Communications Ltd.

     Diversified Telecommunication Services          660          9,336  
 

Tata Consultancy Services Ltd.

     IT Services          5,828          215,246  
 

Tata Consumer Products Ltd.

     Food Products          3,432          33,870  
 

Tata Elxsi Ltd.

     Software          192          20,194  
a  

Tata Motors Ltd.

     Automobiles          2,048          4,925  
a  

Tata Motors Ltd., A

     Automobiles          10,476          52,102  
 

Tata Power Co. Ltd.

     Electric Utilities          9,304          24,761  
 

Tata Steel Ltd.

     Metals & Mining          46,440          56,686  
a  

Tata Teleservices Maharashtra Ltd.

     Diversified Telecommunication Services          2,920          3,711  
 

Tech Mahindra Ltd.

     IT Services          3,464          42,947  
 

Titan Co. Ltd.

     Textiles, Apparel & Luxury Goods          2,368          75,884  
 

Torrent Pharmaceuticals Ltd.

     Pharmaceuticals          536          10,277  
 

Torrent Power Ltd.

     Electric Utilities          1,188          7,110  
 

Trent Ltd.

     Multiline Retail          1,040          18,153  
 

Tube Investments of India Ltd.

     Auto Components          560          18,891  
 

TVS Motor Co. Ltd.

     Automobiles          1,160          14,719  
 

UltraTech Cement Ltd.

     Construction Materials          652          50,132  
 

Union Bank of India Ltd.

     Banks          6,424          3,526  
 

United Breweries Ltd.

     Beverages          412          8,644  
a  

United Spirits Ltd.

     Beverages          1,676          17,353  
 

UPL Ltd.

     Chemicals          3,000          24,783  
 

Varun Beverages Ltd.

     Beverages          1,152          14,787  
 

Vedanta Ltd.

     Metals & Mining          6,916          22,958  
a  

Vodafone Idea Ltd.

     Wireless Telecommunication Services          47,708          5,161  
 

Voltas Ltd.

     Construction & Engineering          1,320          14,708  
 

Whirlpool of India Ltd.

     Household Durables          180          3,617  
 

Wipro Ltd.

     IT Services          7,148          34,641  
a  

Yes Bank Ltd.

     Banks          71,244          13,706  
 

Zee Entertainment Enterprises Ltd.

     Media          4,632          14,699  
a  

Zomato Ltd.

     Internet & Catalog Retail          25,972          19,906  
 

Zydus Lifesciences Ltd.

     Pharmaceuticals          1,352          6,430  
              

 

 

 
                 5,716,954  
              

 

 

 
    Indonesia 2.4%                         
 

Adaro Energy Tbk PT, B

     Oil, Gas & Consumable Fuels          72,400          18,828  
 

Astra Agro Lestari Tbk PT, H

     Food Products          2,800          1,517  
 

Astra International Tbk PT, H

     Automobiles          109,600          47,683  
 

Avia Avian Tbk PT

     Chemicals          66,800          3,488  
 

Bank Central Asia Tbk PT, A

     Banks          313,200          175,857  
 

Bank Danamon Indonesia Tbk PT, H

     Banks          4,800          801  
 

Bank Mandiri Persero Tbk PT, A

     Banks          105,200          65,113  
 

Bank Negara Indonesia Persero Tbk PT, H

     Banks          42,400          24,990  
 

Bank Rakyat Indonesia Persero Tbk PT, A

     Banks          361,200          106,504  
 

Bank Syariah Indonesia Tbk PT

     Banks          16,800          1,622  
 

Bukit Asam Tbk PT, A

     Oil, Gas & Consumable Fuels          23,200          6,353  
a  

Bumi Serpong Damai Tbk PT, A

     Real Estate Management & Development          50,400          2,995  
 

Charoen Pokphand Indonesia Tbk PT, A

     Food Products          42,000          15,584  
 

Dayamitra Telekomunikasi PT

     Diversified Telecommunication Services          133,600          6,361  
 

Elang Mahkota Teknologi Tbk PT

     Media          170,000          16,969  
 

First Pacific Co. Ltd.

     Diversified Financial Services          14,000          4,262  
 

Gudang Garam Tbk PT

     Tobacco          2,800          4,215  

 

           
142             

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  franklintempleton.com


FRANKLIN TEMPLETON ETF TRUST

SCHEDULE OF INVESTMENTS (UNAUDITED)

 

Franklin FTSE Asia ex Japan ETF (continued)

 

           Industry        Shares        Value  
    Common Stocks (continued)                    
    Indonesia (continued)                         
 

Hanjaya Mandala Sampoerna Tbk PT

     Tobacco          50,800        $ 3,036  
 

Indah Kiat Pulp & Paper Corp Tbk PT

     Paper & Forest Products          14,400          8,558  
 

Indocement Tunggal Prakarsa Tbk PT

     Construction Materials          10,400          6,488  
 

Indofood CBP Sukses Makmur Tbk PT

     Food Products          12,400          7,044  
 

Indofood Sukses Makmur Tbk PT

     Food Products          24,400          9,654  
a  

Jasa Marga Persero Tbk PT

     Transportation Infrastructure          12,800          2,724  
 

Kalbe Farma Tbk PT

     Pharmaceuticals          105,600          12,691  
 

Mayora Indah Tbk PT

     Food Products          22,400          2,692  
a  

Media Nusantara Citra Tbk PT

     Media          24,800          1,352  
a  

MNC Digital Entertainment Tbk PT

     Entertainment          9,200          2,966  
 

Perusahaan Gas Negara Tbk PT

     Gas Utilities          57,200          6,592  
 

Perusahaan Perseroan (Persero) PT TelekomunikasiIndonesia Tbk, B

     Diversified Telecommunication Services          263,600          77,206  
 

PT Barito Pacific Tbk, A

     Chemicals          138,000          7,205  
 

PT XL Axiata Tbk

     Wireless Telecommunication Services          21,600          3,489  
 

Sarana Menara Nusantara Tbk PT

     Diversified Telecommunication Services          141,600          11,484  
 

Semen Indonesia (Persero) Tbk PT

     Construction Materials          16,400          8,051  
a  

Smartfren Telecom Tbk PT

     Wireless Telecommunication Services          581,655          3,056  
 

Sumber Alfaria Trijaya Tbk PT

     Food & Staples Retailing          108,000          16,951  
 

Surya Citra Media Tbk PT

     Media          160,000          2,165  
 

Tower Bersama Infrastructure Tbk PT

     Diversified Telecommunication Services          23,200          4,312  
 

Unilever Indonesia Tbk PT

     Household Products          31,600          10,023  
 

United Tractors Tbk PT

     Oil, Gas & Consumable Fuels          8,700          18,754  
a  

Vale Indonesia Tbk PT

     Metals & Mining          12,000          5,044  
              

 

 

 
                 734,679  
              

 

 

 
    Italy 0.1%                         
 

Prada SpA

     Textiles, Apparel & Luxury Goods          3,000          13,911  
              

 

 

 
    Luxembourg 0.0%                         
 

L’Occitane International SA

     Specialty Retail          2,500          7,596  
              

 

 

 
    Macau 0.4%                         
 

Galaxy Entertainment Group Ltd.

     Hotels, Restaurants & Leisure          12,400          73,295  
a  

MGM China Holdings Ltd.

     Hotels, Restaurants & Leisure          4,800          2,654  
a  

Sands China Ltd.

     Hotels, Restaurants & Leisure          13,600          34,130  
a  

SJM Holdings Ltd.

     Hotels, Restaurants & Leisure          12,500          4,682  
a  

Wynn Macau Ltd.

     Hotels, Restaurants & Leisure          8,400          5,393  
              

 

 

 
                 120,154  
              

 

 

 
    Malaysia 1.9%                         
 

Alliance Bank Malaysia Bhd., A

     Banks          6,800          5,177  
 

AMMB Holdings Bhd.

     Beverages          12,000          10,093  
 

Astro Malaysia Holdings Bhd., A

     Media          6,800          1,122  
 

Axiata Group Bhd., A

     Wireless Telecommunication Services          26,000          14,690  
 

British American Tobacco Malaysia Bhd., A

     Tobacco          800          1,770  
 

CIMB Group Holdings Bhd., A

     Banks          35,600          39,385  
 

Dialog Group Bhd., A

     Energy Equipment & Services          23,200          9,956  
 

Digi.com Bhd.

     Wireless Telecommunication Services          18,000          13,121  
 

FGV Holdings Bhd.

     Food Products          3,600          1,095  
 

Fraser & Neave Holdings Bhd.

     Beverages          600          2,795  
 

Gamuda Bhd.

     Construction & Engineering          12,400          10,509  
 

Genting Bhd.

     Hotels, Restaurants & Leisure          12,800          12,367  
 

Genting Malaysia Bhd.

     Hotels, Restaurants & Leisure          16,000          9,627  
 

Hartalega Holdings Bhd.

     Health Care Equipment & Supplies          9,000          3,222  
 

Hong Leong Bank Bhd.

     Banks          3,600          15,915  
 

Hong Leong Financial Group Bhd.

     Banks          1,200          4,777  
 

IHH Healthcare Bhd.

     Health Care Providers & Services          11,600          14,760  
 

IJM Corp. Bhd.

     Construction & Engineering          17,600          6,339  
 

IOI Corp. Bhd.

     Food Products          18,000          14,634  

 

           
franklintempleton.com  

Semiannual Report

             143


FRANKLIN TEMPLETON ETF TRUST

SCHEDULE OF INVESTMENTS (UNAUDITED)

 

Franklin FTSE Asia ex Japan ETF (continued)

 

           Industry        Shares        Value  
    Common Stocks (continued)                    
    Malaysia (continued)                         
 

Kuala Lumpur Kepong Bhd.

     Food Products          2,400        $ 10,714  
 

Malayan Banking Bhd.

     Banks          40,400          74,753  
a  

Malaysia Airports Holdings Bhd.

     Transportation Infrastructure          5,200          6,280  
 

Maxis Bhd.

     Wireless Telecommunication Services          11,600          8,781  
 

MISC Bhd.

     Marine          10,000          14,578  
b  

MR DIY Group M Bhd., 144A

     Specialty Retail          12,600          5,353  
 

Nestle (Malaysia) Bhd.

     Food Products          300          8,443  
 

Petronas Chemicals Group Bhd.

     Chemicals          16,000          28,950  
 

Petronas Dagangan Bhd.

     Oil, Gas & Consumable Fuels          1,600          6,908  
 

Petronas Gas Bhd.

     Gas Utilities          3,300          11,742  
 

PPB Group Bhd.

     Food Products          3,200          11,111  
 

Press Metal Aluminium Holdings Bhd.

     Metals & Mining          20,000          17,425  
 

Public Bank Bhd.

     Banks          80,800          73,708  
 

QL Resources Bhd.

     Food Products          6,500          6,981  
 

RHB Bank Bhd.

     Banks          9,200          11,031  
 

Sime Darby Bhd.

     Industrial Conglomerates          20,200          9,322  
 

Sime Darby Plantation Bhd.

     Food Products          20,400          17,993  
 

Telekom Malaysia Bhd.

     Diversified Telecommunication Services          6,800          8,022  
 

Tenaga Nasional Bhd.

     Electric Utilities          18,400          31,943  
 

Top Glove Corp. Bhd.

     Health Care Equipment & Supplies          30,000          4,044  
 

Westports Holdings Bhd.

     Transportation Infrastructure          4,000          2,640  
 

YTL Corp. Bhd.

     Multi-Utilities          23,613          2,953  
              

 

 

 
                 565,029  
              

 

 

 
    Pakistan 0.0%                         
 

Fauji Fertilizer Co. Ltd.

     Chemicals          4,000          1,777  
 

Habib Bank Ltd.

     Banks          4,000          1,222  
 

Oil & Gas Development Co. Ltd.

     Oil, Gas & Consumable Fuels          4,000          1,328  
 

Pakistan Petroleum Ltd.

     Oil, Gas & Consumable Fuels          4,008          1,080  
              

 

 

 
                 5,407  
              

 

 

 
    Philippines 0.8%                         
 

Aboitiz Power Corp., A

     Independent Power Producers & Energy Traders          9,200          4,833  
 

AC Energy Corp.

     Independent Power Producers & Energy Traders          37,640          3,595  
 

Alliance Global Group Inc., A

     Industrial Conglomerates          22,000          3,096  
 

Ayala Corp., A

     Diversified Financial Services          1,600          16,812  
 

Ayala Land Inc., A

     Real Estate Management & Development          45,600          17,773  
 

Bank of the Philippine Islands, A

     Banks          10,160          15,511  
 

BDO Unibank Inc., A

     Banks          11,280          21,454  
a  

Bloomberry Resorts Corp., H

     Hotels, Restaurants & Leisure          17,200          1,966  
a  

Converge Information and Communications Technology Solutions Inc.

     Diversified Telecommunication Services          11,600          2,592  
 

DMCI Holdings Inc., A

     Industrial Conglomerates          20,400          3,442  
a  

Emperador Inc.

     Beverages          13,600          4,463  
 

Globe Telecom Inc.

     Wireless Telecommunication Services          160          5,540  
 

GT Capital Holdings Inc.

     Diversified Financial Services          600          4,254  
 

International Container Terminal Services Inc.

     Transportation Infrastructure          6,320          16,882  
 

JG Summit Holdings Inc.

     Industrial Conglomerates          17,160          12,308  
 

Jollibee Foods Corp.

     Hotels, Restaurants & Leisure          2,440          9,531  
 

LT Group Inc.

     Industrial Conglomerates          18,000          2,536  
 

Manila Electric Co.

     Electric Utilities          1,520          6,819  
 

Megaworld Corp.

     Real Estate Management & Development          72,000          2,505  
 

Metro Pacific Investments Corp.

     Diversified Financial Services          40,000          2,272  
 

Metropolitan Bank & Trust Co.

     Banks          10,260          8,488  
b  

Monde Nissin Corp., 144A

     Food Products          41,600          8,643  
 

PLDT Inc.

     Wireless Telecommunication Services          525          13,505  
 

Puregold Price Club Inc.

     Food & Staples Retailing          6,060          2,920  
 

San Miguel Corp.

     Industrial Conglomerates          2,180          3,642  

 

           
144             

Semiannual Report

  franklintempleton.com


FRANKLIN TEMPLETON ETF TRUST

SCHEDULE OF INVESTMENTS (UNAUDITED)

 

Franklin FTSE Asia ex Japan ETF (continued)

 

           Industry      Shares        Value  
    Common Stocks (continued)                  
    Philippines (continued)                       
 

Semirara Mining and Power Corp.

     Oil, Gas & Consumable Fuels        6,400        $ 4,258  
 

SM Prime Holdings Inc.

     Real Estate Management & Development        60,000          30,806  
 

Universal Robina Corp.

     Food Products        5,160          10,034  
            

 

 

 
               240,480  
            

 

 

 
    Singapore 3.7%                       
 

Ascendas REIT, A

     Equity Real Estate Investment Trusts (REITs      19,600          36,744  
 

Ascott Residence Trust, A

     Equity Real Estate Investment Trusts (REITs      10,400          7,103  
b  

BOC Aviation Ltd., A, 144A

     Trading Companies & Distributors        1,200          8,522  
 

Capitaland Investment Ltd.

     Real Estate Management & Development        14,400          34,823  
 

CapitaLand Mall Trust, A

     Equity Real Estate Investment Trusts (REITs      28,800          38,537  
 

City Developments Ltd., H

     Real Estate Management & Development        2,800          14,830  
 

ComfortDelGro Corp. Ltd., H

     Road & Rail        11,600          10,671  
 

DBS Group Holdings Ltd., A

     Banks        10,300          239,680  
 

Frasers Logistics & Commercial Trust

     Equity Real Estate Investment Trusts (REITs      16,000          13,715  
 

Genting Singapore Ltd.

     Hotels, Restaurants & Leisure        32,800          17,944  
 

Golden Agri-Resources Ltd.

     Food Products        34,400          6,353  
 

Jardine Cycle & Carriage Ltd.

     Distributors        600          14,129  
 

Keppel Corp. Ltd.

     Industrial Conglomerates        8,000          38,748  
 

Keppel DC REIT

     Equity Real Estate Investment Trusts (REITs      7,200          8,530  
 

Keppel REIT

     Equity Real Estate Investment Trusts (REITs      9,600          6,624  
 

Mapletree Commercial Trust

     Equity Real Estate Investment Trusts (REITs      12,400          14,864  
 

Mapletree Industrial Trust

     Equity Real Estate Investment Trusts (REITs      10,800          17,914  
 

Mapletree Logistics Trust

     Equity Real Estate Investment Trusts (REITs      18,400          20,004  
c  

NetLink NBN Trust, Reg S

     Diversified Telecommunication Services        16,000          10,091  
 

Olam Group Ltd.

     Food & Staples Retailing        4,500          4,108  
 

Oversea-Chinese Banking Corp. Ltd.

     Banks        19,600          161,592  
a  

SATS Ltd.

     Transportation Infrastructure        3,700          7,762  
 

SembCorp Industries Ltd.

     Industrial Conglomerates        5,200          11,162  
a  

SembCorp Marine Ltd.

     Machinery        90,000          6,649  
a  

SIA Engineering Co. Ltd.

     Transportation Infrastructure        1,200          1,873  
a  

Singapore Airlines Ltd.

     Airlines        7,200          25,591  
 

Singapore Exchange Ltd.

     Capital Markets        4,400          29,008  
 

Singapore Post Ltd.

     Air Freight & Logistics        8,800          3,342  
 

Singapore Technologies Engineering Ltd.

     Aerospace & Defense        8,600          21,457  
 

Singapore Telecommunications Ltd.

     Diversified Telecommunication Services        42,800          79,342  
 

StarHub Ltd.

     Wireless Telecommunication Services        3,200          2,453  
 

Suntec REIT

     Equity Real Estate Investment Trusts (REITs      12,000          12,795  
 

United Overseas Bank Ltd.

     Banks        7,300          133,088  
 

UOL Group Ltd.

     Real Estate Management & Development        2,400          11,123  
 

Venture Corp. Ltd.

     Electronic Equipment, Instruments & Components        1,500          17,175  
 

Wilmar International Ltd.

     Food Products        12,000          32,114  
a  

Yangzijiang Financial Holding Ltd.

     Capital Markets        14,400          3,763  
 

Yanlord Land Group Ltd.

     Real Estate Management & Development        3,200          2,130  
            

 

 

 
               1,126,353  
            

 

 

 
    South Korea 11.3%                       
a  

Alteogen Inc., A

     Biotechnology        160          5,072  
 

Amorepacific Corp., H

     Personal Products        164          11,692  
 

AMOREPACIFIC Group, A

     Personal Products        168          3,153  
 

BGF retail Co. Ltd.

     Food & Staples Retailing        36          4,164  
 

BNK Financial Group Inc., H

     Banks        1,692          7,119  
 

Celltrion Healthcare Co. Ltd., A

     Health Care Providers & Services        540          25,590  
 

Celltrion Inc., A

     Biotechnology        588          72,128  
a  

Celltrion Pharm Inc., A

     Pharmaceuticals        109          4,884  
 

Cheil Worldwide Inc., A

     Media        408          6,473  
 

CJ CheilJedang Corp., A

     Food Products        44          12,640  
 

CJ Corp., A

     Industrial Conglomerates        68          3,303  

 

           
franklintempleton.com  

Semiannual Report

             145


FRANKLIN TEMPLETON ETF TRUST

SCHEDULE OF INVESTMENTS (UNAUDITED)

 

Franklin FTSE Asia ex Japan ETF (continued)

 

           Industry        Shares        Value  
    Common Stocks (continued)                    
    South Korea (continued)                         
 

CJ ENM Co. Ltd., A

     Internet & Catalog Retail          62        $ 3,298  
a  

CJ Logistics Corp., A

     Road & Rail          48          3,033  
 

Coway Co. Ltd.

     Household Durables          320          12,056  
a  

Daewoo Engineering & Construction Co. Ltd., A

     Construction & Engineering          976          2,811  
a  

Daewoo Shipbuilding & Marine Engineering Co. Ltd., A

     Machinery          280          3,709  
 

DB Insurance Co. Ltd., A

     Insurance          248          9,568  
 

DGB Financial Group Inc., A

     Banks          892          4,346  
 

DL E&C Co. Ltd., A

     Construction & Engineering          176          4,219  
 

DL Holdings Co. Ltd., A

     Construction & Engineering          72          2,884  
 

Dongsuh Cos. Inc., A

     Food & Staples Retailing          176          2,559  
 

Doosan Bobcat Inc., A

     Machinery          124          2,470  
a  

Doosan Enerbility Co. Ltd., H

     Electrical Equipment          2,212          22,032  
 

Ecopro BM Co. Ltd.

     Electrical Equipment          224          13,794  
 

E-MART Inc., A

     Food & Staples Retailing          116          6,803  
 

F&F Co. Ltd. / New

     Textiles, Apparel & Luxury Goods          90          8,650  
 

Fila Holdings Corp.

     Textiles, Apparel & Luxury Goods          280          6,126  
 

Green Cross Corp.

     Biotechnology          32          2,762  
 

GS Engineering & Construction Corp.

     Construction & Engineering          352          5,548  
 

GS Holdings Corp.

     Oil, Gas & Consumable Fuels          288          8,394  
 

GS Retail Co. Ltd.

     Food & Staples Retailing          216          3,865  
 

Hana Financial Group Inc.

     Banks          1,632          40,438  
a  

Hanjin Kal Corp.

     Airlines          126          3,289  
 

Hankook Tire & Technology Co. Ltd.

     Auto Components          416          10,250  
 

Hanmi Pharm Co. Ltd.

     Pharmaceuticals          44          7,043  
 

Hanmi Science Co. Ltd.

     Pharmaceuticals          89          1,963  
 

Hanon Systems

     Auto Components          956          5,559  
 

Hanssem Co. Ltd.

     Household Durables          60          1,793  
 

Hanwha Aerospace Co. Ltd.

     Aerospace & Defense          192          8,253  
 

Hanwha Corp.

     Industrial Conglomerates          228          3,896  
 

Hanwha Corp.

     Industrial Conglomerates          100          979  
a  

Hanwha Life Insurance Co. Ltd.

     Insurance          1,644          2,402  
a  

Hanwha Solutions Corp.

     Chemicals          640          21,114  
 

HD Hyundai Co. Ltd.

     Machinery          280          10,588  
 

Hite Jinro Co. Ltd.

     Beverages          176          3,260  
 

HL Mando Co. Ltd.

     Auto Components          196          6,076  
a  

HLB Inc.

     Leisure Products          508          15,215  
 

HMM Co. Ltd.

     Marine          1,632          21,103  
 

Hotel Shilla Co. Ltd.

     Specialty Retail          180          9,046  
a  

HYBE Co. Ltd.

     Entertainment          104          9,813  
 

Hyundai Department Store Co. Ltd.

     Multiline Retail          84          3,194  
a  

Hyundai Doosan Infracore Co. Ltd.

     Machinery          740          2,302  
 

Hyundai Engineering & Construction Co. Ltd.

     Construction & Engineering          408          10,694  
 

Hyundai Glovis Co. Ltd.

     Air Freight & Logistics          104          11,812  
a  

Hyundai Heavy Industries Co. Ltd.

     Machinery          80          6,430  
 

Hyundai Marine & Fire Insurance Co. Ltd.

     Insurance          349          7,147  
a  

Hyundai Mipo Dockyard Co. Ltd.

     Machinery          117          8,423  
 

Hyundai Mobis Co. Ltd.

     Auto Components          348          46,458  
 

Hyundai Motor Co.

     Automobiles          768          94,745  
 

Hyundai Steel Co.

     Metals & Mining          424          8,328  
 

Hyundai Wia Corp.

     Auto Components          96          4,033  
 

Iljin Materials Co. Ltd.

     Electronic Equipment, Instruments & Components          100          3,551  
 

Industrial Bank of Korea

     Banks          1,456          9,688  
 

Kakao Corp.

     Interactive Media & Services          1,712          68,327  
a  

Kakao Games Corp.

     Entertainment          156          4,650  
a  

KakaoBank Corp.

     Banks          876          12,276  
a  

Kakaopay Corp.

     IT Services          120          4,118  
a  

Kangwon Land Inc.

     Hotels, Restaurants & Leisure          616          10,140  

 

           
146             

Semiannual Report

  franklintempleton.com


FRANKLIN TEMPLETON ETF TRUST

SCHEDULE OF INVESTMENTS (UNAUDITED)

 

Franklin FTSE Asia ex Japan ETF (continued)

 

           Industry        Shares        Value  
    Common Stocks (continued)                    
    South Korea (continued)                         
 

KB Financial Group Inc.

     Banks          2,200        $ 67,198  
 

KCC Corp.

     Building Products          25          4,045  
 

KEPCO Plant Service & Engineering Co. Ltd.

     Commercial Services & Supplies          132          3,201  
 

Kia Corp.

     Automobiles          1,460          73,372  
 

Korea Aerospace Industries Ltd.

     Aerospace & Defense          400          13,546  
a  

Korea Electric Power Corp.

     Electric Utilities          1,432          20,118  
 

Korea Gas Corp.

     Gas Utilities          152          3,591  
 

Korea Investment Holdings Co. Ltd.

     Capital Markets          208          6,906  
a  

Korea Shipbuilding & Offshore Engineering Co Ltd.

     Machinery          244          12,433  
 

Korea Zinc Co. Ltd.

     Metals & Mining          56          23,289  
a  

Korean Air Lines Co. Ltd.

     Airlines          1,000          15,447  
a  

Krafton Inc.

     Entertainment          152          22,311  
 

KT&G Corp.

     Tobacco          604          36,560  
 

Kumho Petrochemical Co. Ltd.

     Chemicals          96          7,750  
a  

L&F Co. Ltd.

     Electronic Equipment, Instruments & Components          124          15,401  
 

LG Chem Ltd.

     Chemicals          258          96,658  
 

LG Corp.

     Industrial Conglomerates          496          25,655  
 

LG Display Co. Ltd.

     Electronic Equipment, Instruments & Components          1,264          10,602  
 

LG Electronics Inc.

     Household Durables          608          33,402  
a  

LG Energy Solution Ltd.

     Electrical Equipment          196          58,429  
 

LG H&H Co. Ltd.

     Personal Products          50          22,122  
 

LG Innotek Co. Ltd.

     Electronic Equipment, Instruments & Components          80          15,293  
 

LG Uplus Corp.

     Diversified Telecommunication Services          1,204          9,047  
 

Lotte Chemical Corp.

     Chemicals          84          8,455  
 

Lotte Chilsung Beverage Co. Ltd.

     Beverages          20          2,230  
 

Lotte Corp.

     Industrial Conglomerates          152          4,069  
 

LOTTE Fine Chemical Co. Ltd.

     Chemicals          96          3,778  
 

Lotte Shopping Co. Ltd.

     Multiline Retail          64          3,869  
 

LS Corp.

     Electrical Equipment          92          3,646  
 

Meritz Financial Group Inc.

     Diversified Financial Services          156          2,273  
 

Mirae Asset Securities Co. Ltd.

     Capital Markets          1,496          6,253  
 

Mirae Asset Securities Co. Ltd.

     Capital Markets          824          2,105  
 

NAVER Corp.

     Interactive Media & Services          816          110,363  
 

NCSoft Corp.

     Entertainment          90          21,766  
b  

Netmarble Corp., 144A

     Software          100          3,586  
 

NH Investment & Securities Co. Ltd.

     Capital Markets          740          4,650  
a  

NHN Corp.

     Software          88          1,322  
 

NongShim Co. Ltd.

     Food Products          20          4,166  
 

OCI Co. Ltd.

     Chemicals          100          6,361  
 

Orion Corp/Republic of Korea

     Food Products          128          9,215  
 

Ottogi Corp.

     Food Products          8          2,578  
 

Pan Ocean Co. Ltd.

     Marine          1,132          3,560  
a  

Paradise Co. Ltd.

     Hotels, Restaurants & Leisure          272          2,928  
a  

Pearl Abyss Corp.

     Entertainment          172          5,608  
 

POSCO Chemical Co. Ltd.

     Construction Materials          152          15,936  
 

POSCO Holdings Inc.

     Metals & Mining          424          62,532  
 

Posco International Corp.

     Trading Companies & Distributors          296          4,324  
 

S-1 Corp.

     Commercial Services & Supplies          100          4,047  
a,b  

Samsung Biologics Co. Ltd., 144A

     Life Sciences Tools & Services          104          58,662  
 

Samsung C&T Corp.

     Industrial Conglomerates          476          34,435  
 

Samsung Card Co. Ltd.

     Consumer Finance          176          3,715  
 

Samsung Electro-Mechanics Co. Ltd.

     Electronic Equipment, Instruments & Components          316          24,738  
 

Samsung Electronics Co. Ltd.

     Technology Hardware, Storage & Peripherals          26,740          992,447  
a  

Samsung Engineering Co. Ltd.

     Construction & Engineering          896          14,248  
 

Samsung Fire & Marine Insurance Co. Ltd.

     Insurance          188          24,178  
a  

Samsung Heavy Industries Co. Ltd.

     Machinery          3,422          12,701  
 

Samsung Life Insurance Co. Ltd.

     Insurance          368          16,050  

 

           
franklintempleton.com  

Semiannual Report

             147


FRANKLIN TEMPLETON ETF TRUST

SCHEDULE OF INVESTMENTS (UNAUDITED)

 

Franklin FTSE Asia ex Japan ETF (continued)

 

           Industry        Shares        Value  
    Common Stocks (continued)                    
    South Korea (continued)                         
 

Samsung SDI Co. Ltd.

     Electronic Equipment, Instruments & Components          298        $ 113,726  
 

Samsung SDS Co. Ltd.

     IT Services          204          16,398  
 

Samsung Securities Co. Ltd.

     Capital Markets          368          7,909  
 

SD Biosensor Inc.

     Health Care Equipment & Supplies          196          3,644  
 

Seegene Inc.

     Biotechnology          168          3,147  
a  

Shin Poong Pharmaceutical Co. Ltd.

     Pharmaceuticals          196          2,726  
 

Shinhan Financial Group Co. Ltd.

     Banks          2,824          66,124  
 

Shinsegae Inc.

     Multiline Retail          40          6,458  
a,d  

SillaJen Inc.

     Biotechnology          196           
a  

SK Biopharmaceuticals Co. Ltd.

     Pharmaceuticals          144          5,727  
a  

SK Bioscience Co. Ltd.

     Biotechnology          112          6,286  
 

SK Chemicals Co. Ltd.

     Chemicals          80          5,088  
 

SK Hynix Inc.

     Semiconductors & Semiconductor Equipment          3,024          175,644  
a,b  

SK IE Technology Co. Ltd., 144A

     Chemicals          148          5,421  
 

SK Inc.

     Industrial Conglomerates          200          26,840  
a  

SK Innovation Co. Ltd.

     Oil, Gas & Consumable Fuels          292          29,288  
 

SK Networks Co. Ltd.

     Trading Companies & Distributors          832          2,303  
a  

SK Square Co. Ltd.

     Semiconductors & Semiconductor Equipment          564          14,251  
 

SK Telecom Co. Ltd.

     Wireless Telecommunication Services          188          6,675  
 

SKC Co. Ltd.

     Chemicals          108          6,333  
 

S-Oil Corp.

     Oil, Gas & Consumable Fuels          232          13,135  
 

Solus Advanced Materials Co. Ltd.

     Electronic Equipment, Instruments & Components          82          1,714  
 

SSANGYONG C&E Co. Ltd.

     Construction Materials          656          2,691  
 

Wemade Co. Ltd.

     Entertainment          96          3,073  
 

Woori Financial Group Inc.

     Banks          3,588          26,834  
 

Yuhan Corp.

     Pharmaceuticals          280          10,627  
              

 

 

 
                 3,422,773  
              

 

 

 
    Taiwan 15.3%                         
 

Accton Technology Corp.

     Communications Equipment          3,000          25,749  
 

Acer Inc., H

     Technology Hardware, Storage & Peripherals          16,000          11,037  
 

Advanced Energy Solution Holding Co. Ltd.

     Electrical Equipment          120          2,411  
 

Advantech Co. Ltd.

     Technology Hardware, Storage & Peripherals          2,000          18,489  
 

ASE Industrial Holding Co. Ltd., A

     Semiconductors & Semiconductor Equipment          19,000          47,935  
 

Asia Cement Corp.

     Construction Materials          14,330          17,783  
 

ASMedia Technology Inc.

     Semiconductors & Semiconductor Equipment          200          4,183  
 

ASPEED Technology Inc.

     Semiconductors & Semiconductor Equipment          176          9,867  
 

Asustek Computer Inc.

     Technology Hardware, Storage & Peripherals          4,000          29,481  
 

AU Optronics Corp., H

     Electronic Equipment, Instruments & Components          50,000          23,150  
 

Capital Securities Corp., A

     Capital Markets          12,000          3,988  
 

Catcher Technology Co. Ltd.

     Technology Hardware, Storage & Peripherals          4,270          23,200  
 

Cathay Financial Holding Co. Ltd., A

     Insurance          47,000          59,140  
 

Chailease Holding Co. Ltd., A

     Diversified Financial Services          7,938          45,629  
 

Chang Hwa Commercial Bank Ltd., A

     Banks          37,673          20,350  
 

Cheng Shin Rubber Industry Co. Ltd., A

     Auto Components          10,000          11,244  
 

Chicony Electronics Co. Ltd.

     Technology Hardware, Storage & Peripherals          3,000          7,786  
 

China Airlines Ltd., A

     Airlines          16,000          9,903  
 

China Development Financial Holding Corp., A

     Banks          92,000          34,773  
 

China Motor Corp., A

     Automobiles          1,060          1,357  
 

China Steel Corp., A

     Metals & Mining          70,000          58,868  
 

Chunghwa Telecom Co. Ltd.

     Diversified Telecommunication Services          21,000          75,404  
 

Compal Electronics Inc., H

     Technology Hardware, Storage & Peripherals          24,000          16,404  
 

CTBC Financial Holding Co. Ltd., A

     Banks          103,000          64,397  
 

Delta Electronics Inc., A

     Electronic Equipment, Instruments & Components          12,000          95,625  
 

E Ink Holdings Inc.

     Electronic Equipment, Instruments & Components          5,000          33,387  
 

E.Sun Financial Holding Co. Ltd., A

     Banks          76,852          62,331  
 

Eclat Textile Co. Ltd., A

     Textiles, Apparel & Luxury Goods          1,160          14,322  
 

eMemory Technology Inc.

     Semiconductors & Semiconductor Equipment          400          14,426  

 

           
148             

Semiannual Report

  franklintempleton.com


FRANKLIN TEMPLETON ETF TRUST

SCHEDULE OF INVESTMENTS (UNAUDITED)

 

Franklin FTSE Asia ex Japan ETF (continued)

 

           Industry        Shares        Value  
    Common Stocks (continued)                    
    Taiwan (continued)                         
 

ENNOSTAR Inc., H

     Semiconductors & Semiconductor Equipment          3,330        $ 4,348  
 

Eternal Materials Co. Ltd., H

     Chemicals          6,000          5,726  
 

EVA Airways Corp., H

     Airlines          14,000          12,435  
 

Evergreen Marine Corp. Taiwan Ltd.

     Marine          6,000          27,591  
 

Far Eastern International Bank

     Banks          13,770          4,814  
 

Far Eastern New Century Corp.

     Industrial Conglomerates          22,000          22,416  
 

Far EasTone Telecommunications Co. Ltd.

     Wireless Telecommunication Services          9,000          20,523  
 

Feng Tay Enterprise Co. Ltd.

     Textiles, Apparel & Luxury Goods          2,640          13,138  
 

First Financial Holding Co. Ltd.

     Banks          59,160          48,448  
a,b  

FIT Hon Teng Ltd., 144A

     Electronic Equipment, Instruments & Components          8,000          948  
 

Formosa Chemicals & Fibre Corp.

     Chemicals          19,000          41,353  
 

Formosa Petrochemical Corp.

     Oil, Gas & Consumable Fuels          7,000          18,278  
 

Formosa Plastics Corp.

     Chemicals          21,000          57,281  
 

Formosa Sumco Technology Corp.

     Semiconductors & Semiconductor Equipment          400          1,726  
 

Formosa Taffeta Co. Ltd.

     Textiles, Apparel & Luxury Goods          6,000          5,112  
 

Foxconn Technology Co. Ltd.

     Technology Hardware, Storage & Peripherals          6,000          8,665  
 

Fubon Financial Holding Co. Ltd.

     Insurance          42,000          66,012  
 

Genius Electronic Optical Co. Ltd.

     Electronic Equipment, Instruments & Components          520          5,659  
 

Giant Manufacturing Co. Ltd.

     Leisure Products          1,730          11,198  
 

Globalwafers Co. Ltd.

     Semiconductors & Semiconductor Equipment          1,200          13,852  
 

Hiwin Technologies Corp.

     Machinery          1,685          9,394  
 

Hon Hai Precision Industry Co. Ltd.

     Electronic Equipment, Instruments & Components          67,000          215,251  
 

Hotai Motor Co. Ltd.

     Specialty Retail          1,800          32,429  
a  

HTC Corp.

     Technology Hardware, Storage & Peripherals          4,000          6,904  
 

Hua Nan Financial Holdings Co. Ltd.

     Banks          57,904          40,580  
 

Innolux Corp.

     Electronic Equipment, Instruments & Components          52,000          17,116  
 

Inventec Corp.

     Technology Hardware, Storage & Peripherals          17,000          12,262  
 

Largan Precision Co. Ltd.

     Electronic Equipment, Instruments & Components          580          30,599  
 

Lite-On Technology Corp.

     Technology Hardware, Storage & Peripherals          12,000          24,114  
 

MediaTek Inc.

     Semiconductors & Semiconductor Equipment          8,440          146,475  
 

Mega Financial Holding Co. Ltd.

     Banks          61,000          59,849  
 

Micro-Star International Co. Ltd.

     Technology Hardware, Storage & Peripherals          4,000          13,544  
 

momo.com Inc.

     Internet & Catalog Retail          336          5,651  
 

Nan Ya Plastics Corp.

     Chemicals          32,000          67,429  
 

Nan Ya Printed Circuit Board Corp.

     Electronic Equipment, Instruments & Components          1,330          7,917  
 

Nanya Technology Corp.

     Semiconductors & Semiconductor Equipment          4,330          6,676  
 

Nien Made Enterprise Co. Ltd.

     Household Durables          880          6,971  
 

Novatek Microelectronics Corp. Ltd.

     Semiconductors & Semiconductor Equipment          3,300          22,763  
a  

OBI Pharma Inc.

     Biotechnology          1,000          2,252  
a  

Oneness Biotech Co. Ltd.

     Pharmaceuticals          1,600          12,725  
 

Pegatron Corp.

     Technology Hardware, Storage & Peripherals          12,000          22,111  
 

Pou Chen Corp.

     Textiles, Apparel & Luxury Goods          15,000          13,465  
 

Powerchip Semiconductor Manufacturing Corp.

     Semiconductors & Semiconductor Equipment          16,000          14,363  
 

Powertech Technology Inc.

     Semiconductors & Semiconductor Equipment          4,000          9,714  
 

President Chain Store Corp.

     Food & Staples Retailing          3,200          28,473  
 

Quanta Computer Inc.

     Technology Hardware, Storage & Peripherals          15,000          36,379  
 

Realtek Semiconductor Corp.

     Semiconductors & Semiconductor Equipment          2,708          23,029  
 

Ruentex Development Co. Ltd.

     Real Estate Management & Development          9,000          14,571  
 

Shin Kong Financial Holding Co. Ltd.

     Insurance          76,041          19,664  
 

Sino-American Silicon Products Inc.

     Semiconductors & Semiconductor Equipment          3,060          12,626  
 

SinoPac Financial Holdings Co. Ltd.

     Banks          60,600          33,021  
 

Synnex Technology International Corp.

     Electronic Equipment, Instruments & Components          8,000          13,304  
 

Taishin Financial Holding Co. Ltd.

     Banks          65,257          28,159  
 

Taiwan Business Bank

     Banks          31,110          12,346  
 

Taiwan Cement Corp.

     Construction Materials          34,097          36,300  
 

Taiwan Cooperative Financial Holding Co. Ltd.

     Banks          57,680          47,690  
 

Taiwan Fertilizer Co. Ltd.

     Chemicals          4,000          6,942  
 

Taiwan Glass Industry Corp.

     Building Products          9,000          4,947  

 

           
franklintempleton.com  

Semiannual Report

             149


FRANKLIN TEMPLETON ETF TRUST

SCHEDULE OF INVESTMENTS (UNAUDITED)

 

Franklin FTSE Asia ex Japan ETF (continued)

 

           Industry        Shares        Value  
    Common Stocks (continued)                    
    Taiwan (continued)                         
 

Taiwan High Speed Rail Corp.

     Transportation Infrastructure          12,000        $ 10,772  
 

Taiwan Mobile Co. Ltd.

     Wireless Telecommunication Services          10,330          31,105  
 

Taiwan Secom Co. Ltd.

     Commercial Services & Supplies          1,330          4,231  
 

Taiwan Semiconductor Manufacturing Co. Ltd.

     Semiconductors & Semiconductor Equipment          135,720          1,803,957  
 

Teco Electric & Machinery Co. Ltd.

     Electrical Equipment          11,000          9,753  
 

The Shanghai Commercial & Savings Bank Ltd.

     Banks          19,000          29,443  
 

Transcend Information Inc.

     Technology Hardware, Storage & Peripherals          1,330          2,702  
 

U-Ming Marine Transport Corp.

     Marine          2,000          2,299  
 

Unimicron Technology Corp.

     Electronic Equipment, Instruments & Components          7,000          25,906  
 

Uni-President Enterprises Corp.

     Food Products          27,000          57,233  
 

United Microelectronics Corp.

     Semiconductors & Semiconductor Equipment          66,000          74,317  
 

Vanguard International Semiconductor Corp.

     Semiconductors & Semiconductor Equipment          5,000          10,237  
 

Voltronic Power Technology Corp.

     Electrical Equipment          370          16,374  
 

Walsin Lihwa Corp.

     Electrical Equipment          19,258          24,566  
 

Walsin Technology Corp.

     Electronic Equipment, Instruments & Components          2,800          6,570  
 

Wan Hai Lines Ltd.

     Marine          5,060          10,646  
 

Win Semiconductors Corp.

     Semiconductors & Semiconductor Equipment          2,000          7,780  
 

Winbond Electronics Corp.

     Semiconductors & Semiconductor Equipment          17,000          10,575  
 

Wistron Corp.

     Technology Hardware, Storage & Peripherals          16,000          13,380  
 

Wiwynn Corp.

     Technology Hardware, Storage & Peripherals          480          12,216  
 

Yageo Corp.

     Electronic Equipment, Instruments & Components          3,000          25,418  
 

Yang Ming Marine Transport Corp.

     Marine          10,000          19,371  
 

Yuanta Financial Holding Co. Ltd.

     Capital Markets          67,980          41,860  
 

Yulon Motor Co. Ltd.

     Automobiles          3,271          4,229  
 

Zhen Ding Technology Holding Ltd.

     Electronic Equipment, Instruments & Components          3,000          10,016  
              

 

 

 
                 4,615,103  
              

 

 

 
    Thailand 2.7%                         
 

Advanced Info Service PCL, NVDR

     Wireless Telecommunication Services          6,400          33,086  
a  

Airports of Thailand Public Co. Ltd., H, NVDR

     Transportation Infrastructure          24,400          46,898  
 

Asset World Corp PCL, H, NVDR

     Hotels, Restaurants & Leisure          42,400          6,520  
 

B Grimm Power PCL, A, NVDR

     Independent Power Producers & Energy Traders          4,400          3,937  
 

Bangkok Bank PCL, A, fgn.

     Banks          2,400          8,685  
 

Bangkok Bank PCL, A, NVDR

     Banks          1,200          4,343  
 

Bangkok Dusit Medical Services PCL, A, NVDR

     Health Care Providers & Services          50,400          39,417  
 

Bangkok Expressway and Metro PCL, H, NVDR

     Transportation Infrastructure          44,400          10,829  
 

Bangkok Life Assurance PCL, A, NVDR

     Insurance          2,800          2,505  
 

Banpu PCL, A, NVDR

     Oil, Gas & Consumable Fuels          32,000          10,435  
 

Berli Jucker PCL, A, NVDR

     Food & Staples Retailing          5,600          4,862  
 

BTS Group Holdings PCL, A, NVDR

     Road & Rail          48,000          10,562  
 

Bumrungrad Hospital PCL, NVDR

     Health Care Providers & Services          3,200          19,258  
 

Carabao Group PCL, A, NVDR

     Beverages          2,000          4,520  
 

Central Pattana PCL, A, NVDR

     Real Estate Management & Development          15,600          26,986  
 

Central Retail Corp. PCL, A, NVDR

     Multiline Retail          16,000          16,755  
 

Charoen Pokphand Foods PCL, A, NVDR

     Food Products          28,400          18,823  
 

CP ALL PCL, B, NVDR

     Food & Staples Retailing          34,000          50,703  
 

Delta Electronics Thailand PCL, A, NVDR

     Electronic Equipment, Instruments & Components          1,600          27,741  
 

Digital Telecommunications Infrastructure Fund, A, fgn.

     Diversified Financial Services          29,600          10,594  
 

Electricity Generating PCL, A, NVDR

     Independent Power Producers & Energy Traders          1,600          6,999  
 

Energy Absolute PCL, A, NVDR

     Oil, Gas & Consumable Fuels          9,600          22,460  
 

Global Power Synergy PCL, NVDR

     Independent Power Producers & Energy Traders          4,000          6,760  
 

Gulf Energy Development PCL, NVDR

     Independent Power Producers & Energy Traders          24,400          33,961  
 

Home Product Center PCL, NVDR, NVDR

     Specialty Retail          32,000          11,453  
 

Indorama Ventures PCL, NVDR

     Chemicals          10,000          10,339  
 

Intouch Holdings PCL, NVDR

     Wireless Telecommunication Services          8,000          15,430  
 

IRPC PCL, NVDR

     Oil, Gas & Consumable Fuels          55,600          4,599  
 

Kasikornbank PCL, fgn.

     Banks          6,000          23,144  

 

           
150             

Semiannual Report

  franklintempleton.com


FRANKLIN TEMPLETON ETF TRUST

SCHEDULE OF INVESTMENTS (UNAUDITED)

 

Franklin FTSE Asia ex Japan ETF (continued)

 

           Industry        Shares        Value  
    Common Stocks (continued)                    
    Thailand (continued)                         
 

Kasikornbank PCL, NVDR

     Banks          2,000        $ 7,635  
 

Krung Thai Bank PCL, NVDR

     Banks          35,200          15,584  
 

Krungthai Card PCL, NVDR

     Consumer Finance          7,500          11,433  
 

Land and Houses PCL, NVDR

     Real Estate Management & Development          47,600          11,231  
a  

Minor International PCL, NVDR

     Hotels, Restaurants & Leisure          22,800          16,018  
 

Muangthai Capital PCL, NVDR

     Consumer Finance          4,000          3,844  
 

Osotspa PCL, NVDR

     Beverages          7,600          5,490  
 

PTT Exploration and Production PCL, NVDR

     Oil, Gas & Consumable Fuels          8,000          34,040  
 

PTT Global Chemical PCL, NVDR

     Chemicals          11,200          12,322  
 

PTT Oil & Retail Business PCL, NVDR

     Specialty Retail          15,600          10,650  
 

PTT PCL, NVDR

     Oil, Gas & Consumable Fuels          81,200          73,192  
 

Ratch Group PCL, NVDR

     Independent Power Producers & Energy Traders          6,800          7,391  
 

SCB X PCL

     Banks          9,600          26,469  
 

SCG Packaging PCL, NVDR

     Containers & Packaging          6,800          9,374  
 

Siam City Cement PCL, NVDR

     Construction Materials          400          1,623  
 

Siam Makro Public Company Ltd., NVDR

     Food & Staples Retailing          8,000          7,158  
 

Sri Trang Gloves Thailand PCL, NVDR

     Health Care Equipment & Supplies          5,600          1,692  
 

Srisawad Corp. PCL, NVDR

     Consumer Finance          3,600          4,104  
 

Thai Oil PCL, NVDR

     Oil, Gas & Consumable Fuels          6,075          8,254  
 

Thai Union Group PCL, NVDR

     Food Products          16,400          8,130  
 

The Siam Cement PCL, NVDR

     Construction Materials          4,000          34,571  
 

TMB Bank PCL, NVDR

     Banks          240,000          7,699  
 

Total Access Communication PCL, NVDR

     Wireless Telecommunication Services          4,000          4,825  
 

True Corporation PCL, NVDR

     Diversified Telecommunication Services          62,000          8,301  
              

 

 

 
                 823,634  
              

 

 

 
    United Kingdom 0.3%                         
 

CK Hutchison Holdings Ltd., A

     Real Estate Management & Development          15,000          82,931  
              

 

 

 
    United States 0.1%                         
b  

JS Global Lifestyle Co. Ltd., 144A

     Household Durables          6,000          5,801  
 

Parade Technologies Ltd.

     Semiconductors & Semiconductor Equipment          400          7,459  
a,b  

Samsonite International SA, 144A

     Textiles, Apparel & Luxury Goods          7,200          17,445  
              

 

 

 
                 30,705  
              

 

 

 
 

Total Common Stocks (Cost $37,725,806)

               30,144,540  
              

 

 

 
    Preferred Stocks 0.6%                         
    South Korea 0.6%                         
e  

Amorepacific Corp., 2.345%, pfd.

     Personal Products          60          1,761  
e  

CJ CheilJedang Corp., 4.184%, pfd.

     Food Products          8          942  
e  

Hyundai Motor Co., 6.093%, pfd.

     Automobiles          196          11,467  
e  

Hyundai Motor Co., 6.005%, pfd.

     Automobiles          128          7,524  
e  

LG Chem Ltd., 4.782%, pfd.

     Chemicals          45          7,926  
e  

LG Electronics Inc., 2.436%, pfd.

     Household Durables          88          2,273  
e  

LG H&H Co. Ltd., 3.657%, pfd.

     Personal Products          12          2,764  
e  

Samsung Electronics Co. Ltd., 2.311%, pfd.

     Technology Hardware, Storage & Peripherals          4,624          151,580  
e  

Samsung Fire & Marine Insurance Co. Ltd., 7.77%, pfd.

     Insurance          16          1,728  
e  

Samsung SDI Co. Ltd., 0.387%, pfd.

     Electronic Equipment, Instruments & Components          8          1,515  
              

 

 

 
 

Total Preferred Stocks (Cost $272,013)

               189,480  
              

 

 

 

 

           
franklintempleton.com  

Semiannual Report

             151


FRANKLIN TEMPLETON ETF TRUST

SCHEDULE OF INVESTMENTS (UNAUDITED)

 

Franklin FTSE Asia ex Japan ETF (continued)

 

           Industry        Shares        Value  
    Right 0.0%                         
    Philippines 0.0%                         
a  

GLOBE TELECOM Inc. RIGHTS

     Wireless Telecommunication Services          12        $ 72  
              

 

 

 
 

Total Rights (Cost $0)

               72  
              

 

 

 
 

Total Investments (Cost $37,997,819) 100.2%

               30,334,092  
 

Other Assets, less Liabilities (0.2)%

               (48,316
              

 

 

 
 

Net Assets 100.0%

             $ 30,285,776  
              

 

 

 

 

 

 

Rounds to less than 0.1% of net assets.

aNon-income producing.

bSecurity was purchased pursuant to Rule 144A under the Securities Act of 1933 and may be sold in transactions exempt from registration only to qualified institutional buyers or in a public offering registered under the Securities Act of 1933. At September 30, 2022, the value of was $1,743,205, representing 5.8% of net assets.

cSecurity was purchased pursuant to Regulation S under the Securities Act of 1933, which exempts from registration securities offered and sold outside of the United States. Such a security cannot be sold in the United States without either an effective registration statement filed pursuant to the Securities Act of 1933, or pursuant to an exemption from registration. At September 30, 2022, the value of was $220,645, representing 0.7% of net assets.

dFair valued using significant unobservable inputs. See Note 9 regarding fair value measurements.

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

See Note 8 regarding other derivative information.

See Abbreviations on page 332.

 

           
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FRANKLIN TEMPLETON ETF TRUST

 

Financial Highlights

 

Franklin FTSE Australia ETF

 

   

Six Months Ended

September 30, 2022

(unaudited)

     Year Ended March 31,  
      2022      2021      2020      2019      2018a  
Per share operating performance
(for a share outstanding throughout the period)
                

Net asset value, beginning of period

  $ 31.55      $ 29.12      $ 17.38      $ 24.63      $ 24.67      $ 25.23  
 

 

 

 
Income from investment operationsb:                 

Net investment incomec

    1.06        1.48        0.81        1.07        1.29        0.52  

Net realized and unrealized gains (losses)

    (8.39      2.47        11.55        (7.18      (0.37      (1.03
 

 

 

 

Total from investment operations

    (7.33      3.95        12.36        (6.11      0.92        (0.51
 

 

 

 

Less distributions from net investment income

    (0.89      (1.52      (0.62      (1.14      (0.96      (0.05
 

 

 

 

Net asset value, end of period

  $ 23.33      $ 31.55      $ 29.12      $ 17.38      $ 24.63      $ 24.67  
 

 

 

 

Total returnd

    (23.38)%        13.93%        71.72%        (26.23)%        4.00%        (2.05)%  
Ratios to average net assetse                 

Total expenses

    0.09%        0.09%        0.09%        0.09%        0.09%        0.09%  

Net investment income

    7.72%        4.93%        3.25%        4.28%        5.30%        4.96%  
Supplemental data                 

Net assets, end of period (000’s)

    $23,326        $29,968        $23,295        $7,820        $7,389        $2,467  

Portfolio turnover ratef

    3.13% g       15.26% g       6.98% g       8.16% g       4.56%        1.63%  

aFor the period November 2, 2017 (commencement of operations) to March 31, 2018.

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

cBased on average daily shares outstanding.

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

eRatios are annualized for periods less than one year.

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

 

gPortfolio turnover rate excluding cash creations was as follows:     3.13%        15.26%        6.98%        8.16%        

 

           
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FRANKLIN TEMPLETON ETF TRUST

 

Schedule of Investments, September 30, 2022 (unaudited)

 

Franklin FTSE Australia ETF

 

           Industry      Shares        Value  
    Common Stocks 98.2%                       
    Australia 95.4%                       
 

Adbri Ltd.

     Construction Materials        9,580        $ 11,333  
 

AGL Energy Ltd.

     Multi-Utilities        13,960          61,393  
a  

Allkem Ltd.

     Metals & Mining        12,100          107,749  
 

ALS Ltd.

     Professional Services        9,980          65,001  
 

Altium Ltd.

     Software        2,260          50,029  
 

Alumina Ltd.

     Metals & Mining        52,220          42,472  
a  

AMP Ltd.

     Diversified Financial Services        68,080          47,930  
 

Ampol Ltd.

     Oil, Gas & Consumable Fuels        4,880          90,206  
 

Ansell Ltd.

     Health Care Equipment & Supplies        2,660          43,081  
 

Apa Group

     Gas Utilities        24,400          150,448  
 

Aristocrat Leisure Ltd.

     Hotels, Restaurants & Leisure        13,820          292,513  
 

Atlas Arteria Ltd.

     Transportation Infrastructure        29,856          119,591  
 

Aurizon Holdings Ltd.

     Road & Rail        36,480          80,919  
 

Australia & New Zealand Banking Group Ltd.

     Banks        63,660          933,208  
 

Australian Stock Exchange Ltd.

     Capital Markets        4,000          184,552  
 

Bank of Queensland Ltd.

     Banks        13,340          55,836  
 

Beach Energy Ltd.

     Oil, Gas & Consumable Fuels        36,580          34,926  
 

Bendigo and Adelaide Bank Ltd.

     Banks        11,700          58,600  
 

BHP Group Ltd.

     Metals & Mining        103,940          2,574,223  
 

BlueScope Steel Ltd.

     Metals & Mining        9,700          94,734  
 

Boral Ltd.

     Construction Materials        6,840          11,742  
 

Brambles Ltd.

     Commercial Services & Supplies        28,660          210,251  
 

carsales.com Ltd.

     Interactive Media & Services        6,920          83,690  
 

Challenger Ltd.

     Diversified Financial Services        13,940          52,432  
 

Charter Hall Group

     Equity Real Estate Investment Trusts (REITs      9,780          72,187  
 

Cleanaway Waste Management Ltd.

     Commercial Services & Supplies        42,460          73,982  
 

Cochlear Ltd.

     Health Care Equipment & Supplies        1,320          165,105  
 

Coles Group Ltd.

     Food & Staples Retailing        26,240          277,191  
 

Commonwealth Bank of Australia

     Banks        35,280          2,057,373  
 

Computershare Ltd.

     IT Services        11,060          176,069  
 

CSL Ltd.

     Biotechnology        9,940          1,821,541  
 

CSR Ltd.

     Construction Materials        10,080          28,840  
 

Deterra Royalties Ltd.

     Metals & Mining        8,760          22,529  
 

Dexus

     Equity Real Estate Investment Trusts (REITs      22,220          110,291  
 

Domain Holdings Australia Ltd.

     Interactive Media & Services        5,200          10,766  
 

Domino’s Pizza Enterprises Ltd.

     Hotels, Restaurants & Leisure        1,260          41,737  
 

Downer EDI Ltd.

     Commercial Services & Supplies        14,020          41,195  
 

Endeavour Group Ltd.

     Food & Staples Retailing        26,240          118,097  
 

Evolution Mining Ltd.

     Metals & Mining        35,780          47,160  
a  

Flight Centre Travel Group Ltd.

     Hotels, Restaurants & Leisure        3,000          27,428  
 

Fortescue Metals Group Ltd.

     Metals & Mining        32,880          355,578  
 

Goodman Group

     Equity Real Estate Investment Trusts (REITs      37,860          384,118  
 

Harvey Norman Holdings Ltd.

     Multiline Retail        12,280          31,898  
 

IDP Education Ltd.

     Diversified Consumer Services        3,720          63,310  
 

IGO Ltd.

     Metals & Mining        12,880          113,452  
 

Iluka Resources Ltd.

     Metals & Mining        8,720          50,795  
 

Incitec Pivot Ltd.

     Chemicals        40,240          90,812  
 

Insignia Financial Ltd.

     Capital Markets        13,300          25,226  
 

Insurance Australia Group Ltd.

     Insurance        50,960          150,718  
 

JB Hi-Fi Ltd.

     Specialty Retail        2,260          55,158  
 

Lendlease Corp. Ltd.

     Real Estate Management & Development        14,200          81,439  
a  

Lottery Corp. Ltd.

     Hotels, Restaurants & Leisure        45,780          123,035  
a  

Lynas Rare Earths Ltd.

     Metals & Mining        18,600          90,409  
 

Macquarie Group Ltd.

     Capital Markets        7,180          705,106  
 

Magellan Financial Group Ltd.

     Capital Markets        2,900          20,995  
 

Medibank Private Ltd.

     Insurance        56,960          127,080  
 

Metcash Ltd.

     Food & Staples Retailing        20,100          50,013  

 

           
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FRANKLIN TEMPLETON ETF TRUST

SCHEDULE OF INVESTMENTS (UNAUDITED)

 

Franklin FTSE Australia ETF (continued)

 

           Industry      Shares        Value  
    Common Stocks (continued)                       
    Australia (continued)                       
 

Mineral Resources Ltd.

     Metals & Mining        3,440        $ 145,422  
 

Mirvac Group

     Equity Real Estate Investment Trusts (REITs      81,500          101,919  
 

National Australia Bank Ltd.

     Banks        65,620          1,215,505  
 

Newcrest Mining Ltd.

     Metals & Mining        18,400          200,168  
a  

NEXTDC Ltd.

     IT Services        9,420          53,419  
 

Northern Star Resources Ltd.

     Metals & Mining        23,520          118,407  
 

Nufarm Ltd.

     Chemicals        7,800          25,075  
 

Orica Ltd.

     Chemicals        9,220          78,368  
 

Origin Energy Ltd.

     Oil, Gas & Consumable Fuels        35,480          117,937  
 

Orora Ltd.

     Containers & Packaging        17,640          34,025  
 

OZ Minerals Ltd.

     Metals & Mining        6,780          112,380  
 

Perpetual Ltd.

     Capital Markets        1,160          17,594  
a  

Pilbara Minerals Ltd.

     Metals & Mining        54,260          159,082  
 

Platinum Asset Management Ltd.

     Capital Markets        10,920          11,936  
 

Pro Medicus Ltd.

     Health Care Technology        860          27,752  
a  

Qantas Airways Ltd.

     Airlines        17,180          55,450  
 

QBE Insurance Group Ltd.

     Insurance        30,560          226,548  
 

Qube Logistics Holdings Ltd.

     Transportation Infrastructure        34,280          54,660  
 

Ramsay Health Care Ltd.

     Health Care Providers & Services        3,620          133,318  
 

REA Group Ltd.

     Media        1,040          76,797  
 

Reece Ltd.

     Trading Companies & Distributors        4,420          39,843  
 

Rio Tinto Ltd.

     Metals & Mining        7,680          461,146  
 

Santos Ltd.

     Oil, Gas & Consumable Fuels        63,480          289,375  
 

Scentre Group

     Real Estate Investment Trusts (REITs      106,900          174,578  
 

SEEK Ltd.

     Professional Services        7,220          88,989  
 

Seven Group Holdings Ltd.

     Trading Companies & Distributors        2,940          32,040  
 

Shopping Centres Australasia Property Group

     Equity Real Estate Investment Trusts (REITs      23,180          35,023  
a  

Sierra Rutile Holdings Ltd.

     Metals & Mining        8,720          1,177  
 

Sonic Healthcare Ltd.

     Health Care Providers & Services        9,880          194,255  
 

South32 Ltd.

     Metals & Mining        95,920          223,868  
a  

Star Entertainment Grp Ltd.

     Hotels, Restaurants & Leisure        17,820          29,560  
 

Stockland

     Real Estate Investment Trusts (REITs      49,340          103,735  
 

Suncorp-Metway Ltd.

     Insurance        26,000          167,668  
 

Tabcorp Holdings Ltd.

     Hotels, Restaurants & Leisure        45,700          27,473  
 

Telstra Corp. Ltd.

     Diversified Telecommunication Services        84,140          208,277  
 

The GPT Group

     Equity Real Estate Investment Trusts (REITs      39,800          98,007  
 

TPG Telecom Limited

     Diversified Telecommunication Services        7,620          23,762  
 

Transurban Group

     Transportation Infrastructure        63,480          503,650  
 

Treasury Wine Estates Ltd.

     Beverages        14,940          120,743  
 

Vicinity Centres

     Real Estate Investment Trusts (REITs      77,940          86,943  
 

Washington H Soul Pattinson & Co. Ltd.

     Oil, Gas & Consumable Fuels        5,520          95,080  
 

Wesfarmers Ltd.

     Multiline Retail        23,400          642,724  
 

Westpac Banking Corp.

     Banks        71,980          955,210  
 

Whitehaven Coal Ltd.

     Oil, Gas & Consumable Fuels        16,540          95,816  
 

WiseTech Global Ltd.

     Software        3,260          108,993  
 

Woodside Petroleum Ltd.

     Oil, Gas & Consumable Fuels        39,080          795,505  
 

Woolworths Group Ltd.

     Food & Staples Retailing        25,080          547,450  
 

Worley Ltd.

     Energy Equipment & Services        7,780          63,677  
            

 

 

 
               22,247,821  
            

 

 

 
    Ireland 0.8%                       
 

James Hardie Industries PLC

     Construction Materials        9,120          180,836  
            

 

 

 
    New Zealand 0.5%                       
a  

Xero Ltd.

     Software        2,620          123,830  
            

 

 

 
    United Kingdom 1.4%                       
 

Amcor PLC, IDR

     Containers & Packaging        31,100          332,729  
            

 

 

 

 

           
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Semiannual Report

             155


FRANKLIN TEMPLETON ETF TRUST

SCHEDULE OF INVESTMENTS (UNAUDITED)

 

Franklin FTSE Australia ETF (continued)

 

           Industry        Shares        Value  
    Common Stocks (continued)                         
    United States 0.1%                         
 

Sims Ltd.

     Metals & Mining          3,320        $ 28,561  
              

 

 

 
 

Total Investments (Cost $25,399,172) 98.2%

               22,913,777  
 

Other Assets, less Liabilities 1.8%

               412,240  
              

 

 

 
 

Net Assets 100.0%

             $ 23,326,017  
              

 

 

 

aNon-income producing.

At September 30, 2022, the Fund had the following futures contracts outstanding. See Note 1(c).

 

Futures Contracts                                   
Description    Type      Number of
Contracts
     Notional
Amount*
     Expiration
Date
     Value/Unrealized
Appreciation
(Depreciation)
 
Index Contracts                                   

SPI 200 Index

     Long        4      $ 415,731        12/15/22      $ (30,610

*As of period end.

 

 

See 335 regarding other derivative information.

See Abbreviations on page 332.

 

           
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FRANKLIN TEMPLETON ETF TRUST

 

Financial Highlights

 

Franklin FTSE Brazil ETF

 

   

Six Months Ended
September 30, 2022

(unaudited)

     Year Ended March 31,  
      2022      2021      2020      2019      2018a  
Per share operating performance
(for a share outstanding throughout the period)
                

Net asset value, beginning of period

  $ 23.56      $ 20.70      $ 14.46      $ 25.72      $ 27.87      $ 24.37  
 

 

 

 
Income from investment operationsb:                 

Net investment incomec

    1.45        1.84        0.46        1.07        0.80        0.50  

Net realized and unrealized gains (losses)

    (5.90      2.55        6.31        (11.33      (2.07      3.11  
 

 

 

 

Total from investment operations

    (4.45      4.39        6.77        (10.26      (1.27      3.61  
 

 

 

 

Less distributions from net investment income

    (1.03      (1.53      (0.53      (1.00      (0.88      (0.11
 

 

 

 

Net asset value, end of period

  $ 18.08      $ 23.56      $ 20.70      $ 14.46      $ 25.72      $ 27.87  
 

 

 

 

Total returnd

    (18.70)%        23.03%        46.83%        (41.69)%        (3.98)%        14.86%  
Ratios to average net assetse                 

Total expenses

    0.19%        0.19%        0.19%        0.23%        0.19%        0.19%  

Net investment income

    14.67%        8.87%        2.43%        4.26%        3.37%        4.53%  
Supplemental data                 

Net assets, end of period (000’s)

    $280,200        $527,820        $107,656        $102,700        $20,579        $44,593  

Portfolio turnover ratef

    22.89% g        17.71% g        21.01% g        36.07% g        39.76%        4.79%  

 

aFor the period November 3, 2017 (commencement of operations) to March 31, 2018.

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

cBased on average daily shares outstanding.

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

eRatios are annualized for periods less than one year.

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

 

gPortfolio turnover rate excluding cash creations was as follows:     8.63%        14.95%        9.31%        17.47%        

 

           
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The accompanying notes are an integral part of these financial statements.    |   Semiannual Report

             157


FRANKLIN TEMPLETON ETF TRUST

 

Schedule of Investments, September 30, 2022 (unaudited)

 

Franklin FTSE Brazil ETF

 

           Industry        Shares        Value  
    Common Stocks 71.8%                         
    Brazil 70.1%                         
 

Ambev SA

     Beverages          3,255,000        $ 9,351,840  
 

Americanas SA

     Internet & Catalog Retail          496,000          1,557,093  
 

Atacadao SA

     Food & Staples Retailing          387,500          1,384,837  
 

Auren Energia SA

     Independent Power Producers & Energy Traders          263,543          660,216  
 

B3 SA – Brasil Bolsa Balcao

     Capital Markets          4,541,500          10,957,334  
 

Banco Bradesco SA

     Banks          1,131,500          3,411,957  
 

Banco BTG Pactual SA

     Capital Markets          868,000          3,981,453  
 

Banco do Brasil SA

     Banks          635,504          4,525,844  
 

Banco Santander Brasil SA

     Banks          279,000          1,565,002  
 

BB Seguridade Participacoes SA

     Insurance          496,000          2,436,511  
 

BR Malls Participacoes SA

     Real Estate Management & Development          620,000          1,080,932  
 

Bradespar SA

     Metals & Mining          24,630          101,319  
a  

BRF SA

     Food Products          589,000          1,402,575  
 

Caixa Seguridade Participacoes S/A

     Insurance          341,000          536,511  
 

CCR SA

     Transportation Infrastructure          837,000          1,938,972  
 

Centrais Eletricas Brasileiras SA

     Electric Utilities          930,000          7,388,280  
 

Cia de Saneamento Basico do Estado de Sao Paulo

     Water Utilities          248,000          2,274,199  
 

Cia Energetica de Minas Gerais

     Electric Utilities          248,000          742,783  
 

Cia Paranaense de Energia

     Electric Utilities          232,500          266,508  
 

Cia Siderurgica Nacional SA

     Metals & Mining          465,000          1,093,541  
 

Cielo SA

     IT Services          852,500          851,105  
 

Cosan SA

     Oil, Gas & Consumable Fuels          899,000          2,888,714  
 

CPFL Energia SA

     Electric Utilities          139,500          870,706  
 

CSN Mineracao SA

     Metals & Mining          387,500          237,135  
 

Dexco SA

     Paper & Forest Products          232,500          401,911  
 

Diagnosticos da America SA

     Health Care Providers & Services          62,000          216,186  
 

EDP – Energias do Brasil SA

     Electric Utilities          201,500          813,250  
a  

Embraer SA

     Aerospace & Defense          542,500          1,168,479  
 

Energisa SA

     Electric Utilities          186,080          1,441,136  
a  

Eneva SA

     Independent Power Producers & Energy Traders          914,500          2,392,408  
 

Engie Brasil Energia SA

     Independent Power Producers & Energy Traders          139,500          993,214  
 

Equatorial Energia SA

     Electric Utilities          697,500          3,468,898  
b  

GPS Participacoes e Empreendimentos SA, 144A

     Commercial Services & Supplies          310,000          770,293  
 

Grendene SA

     Textiles, Apparel & Luxury Goods          248,000          324,165  
 

GRUPO DE MODA SOMA SA

     Textiles, Apparel & Luxury Goods          325,500          801,586  
a  

Grupo Mateus SA

     Food & Staples Retailing          305,600          372,900  
b  

Hapvida Participacoes e Investimentos S/A, 144A

     Health Care Providers & Services          2,991,500          4,186,778  
 

Hypera SA

     Pharmaceuticals          294,500          2,409,315  
 

Itau Unibanco Holding SA

     Banks          341,000          1,482,814  
 

Klabin SA

     Containers & Packaging          573,500          1,924,443  
 

Localiza Rent a Car SA

     Road & Rail          580,949          6,561,501  
 

Lojas Renner SA

     Multiline Retail          728,500          3,751,024  
 

M Dias Branco SA

     Food Products          93,000          753,271  
a  

Magazine Luiza SA

     Multiline Retail          2,278,500          1,887,218  
 

Marfrig Global Foods SA

     Food Products          263,500          480,831  
 

Multiplan Empreendimentos Imobiliarios SA

     Real Estate Management & Development          201,500          900,423  
 

Natura & Co. Holding SA

     Personal Products          713,016          1,941,767  
 

Neoenergia SA

     Electric Utilities          170,500          482,293  
 

Odontoprev SA

     Health Care Providers & Services          217,020          353,084  
a  

Petro Rio SA

     Oil, Gas & Consumable Fuels          496,000          2,524,544  
 

Petroleo Brasileiro SA

     Oil, Gas & Consumable Fuels          2,774,500          16,968,572  
 

Porto Seguro SA

     Insurance          139,500          544,965  
 

Raia Drogasil SA

     Food & Staples Retailing          806,043          3,387,293  
b  

Rede D’Or Sao Luiz SA, 144A

     Health Care Providers & Services          356,500          1,958,860  

 

           
158             

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FRANKLIN TEMPLETON ETF TRUST

SCHEDULE OF INVESTMENTS (UNAUDITED)

 

Franklin FTSE Brazil ETF (continued)

 

           Industry        Shares        Value  
    Common Stocks (continued)                         
    Brazil (continued)                         
 

Rumo SA

     Road & Rail          930,000        $ 3,177,459  
 

Sao Martinho SA

     Food Products          124,400          586,943  
 

Sendas Distribuidora SA

     Food & Staples Retailing          589,000          1,911,118  
 

SIMPAR SA

     Road & Rail          217,000          387,554  
 

SLC Agricola SA

     Food Products          77,500          620,275  
a  

Smartfit Escola de Ginastica e Danca SA

     Hotels, Restaurants & Leisure          93,000          261,349  
 

Sul America SA

     Insurance          294,541          1,201,286  
 

Suzano SA

     Paper & Forest Products          542,500          4,463,287  
 

Telefonica Brasil SA

     Diversified Telecommunication Services          325,500          2,436,654  
 

TIM SA

     Wireless Telecommunication Services          604,500          1,350,076  
 

Totvs SA

     Software          341,000          1,850,366  
 

Transmissora Alianca de Energia Eletrica SA

     Electric Utilities          170,500          1,227,798  
 

Ultrapar Participacoes SA

     Oil, Gas & Consumable Fuels          620,000          1,344,574  
 

Usinas Siderurgicas de Minas Gerais SA Usiminas .

     Metals & Mining          124,000          187,988  
 

Vale SA

     Metals & Mining          2,903,989          38,677,975  
 

Vamos Locacao de Caminhoes Maquinas e Equipamentos SA

     Road & Rail          139,500          352,564  
 

Vibra Energia SA

     Specialty Retail          837,000          2,669,375  
 

WEG SA

     Machinery          1,116,000          6,631,399  
              

 

 

 
                 196,506,829  
              

 

 

 
    United States 1.7%                         
 

JBS SA

     Food Products          1,007,500          4,679,072  
              

 

 

 
 

Total Common Stocks
(Cost $208,197,909)

               201,185,901  
              

 

 

 
    Preferred Stocks 27.3%                         
    Brazil 27.3%                         
 

Alpargatas SA, 2.045%, pfd.

     Textiles, Apparel & Luxury Goods          170,500          670,482  
 

Banco Bradesco SA, 3.165%, pfd.

     Banks          3,890,500          14,270,597  
 

Bradespar SA, 32.075%, pfd.

     Metals & Mining          186,084          817,430  
 

Braskem SA, 35.194%, pfd., A

     Chemicals          134,900          654,442  
 

Centrais Eletricas Brasileiras SA, 3.575%, pfd., B

     Electric Utilities          201,500          1,682,007  
 

Cia de Transmissao de Energia Eletrica Paulista, 6.461%, pfd.

     Electric Utilities          139,500          592,421  
 

Cia Paranaense de Energia, 17.781%, pfd.

     Electric Utilities          992,000          1,206,793  
 

Companhia Energetica de Minas Gerais, 12.825%, pfd.

     Electric Utilities          945,500          1,880,914  
 

Gerdau SA, 14.894%, pfd.

     Metals & Mining          790,500          3,571,890  
 

Itau Unibanco Holding SA, 2.937%, pfd.

     Banks          3,611,500          18,735,718  
 

Itausa SA, 5.807%, pfd.

     Banks          3,549,500          6,385,208  
 

Metalurgica Gerdau SA, 21.719%, pfd.

     Metals & Mining          542,500          1,062,162  
 

Petroleo Brasileiro SA, 38.601%, pfd.

     Oil, Gas & Consumable Fuels          4,185,000          23,057,212  
 

Raizen SA, 1.575%, pfd.

     Oil, Gas & Consumable Fuels          883,500          684,409  
 

Unipar Carbocloro SA, 16.852%, pfd., B

     Chemicals          34,540          612,976  
 

Usinas Siderurgicas de Minas Gerais SA Usiminas, 10.931%, pfd., A

     Metals & Mining          341,000          474,097  
              

 

 

 
 

Total Preferred Stocks
(Cost $75,710,982)

               76,358,758  
              

 

 

 

 

           
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FRANKLIN TEMPLETON ETF TRUST

SCHEDULE OF INVESTMENTS (UNAUDITED)

 

Franklin FTSE Brazil ETF (continued)

 

           Industry        Shares        Value  
    Right 0.0%                         
    Brazil 0.0%                         
 

Localiza Rent a Car SA

     Road & Rail          1,782        $ 3,624  
              

 

 

 
 

Total Rights (Cost $0)

               3,624  
              

 

 

 
 

Total Investments (Cost $283,908,891) 99.1%

               277,548,283  
 

Other Assets, less Liabilities 0.9%

               2,652,215  
              

 

 

 
 

Net Assets 100.0%

             $ 280,200,498  
              

 

 

 

Rounds to less than 0.1% of net assets.

aNon-income producing.

bSecurity was purchased pursuant to Rule 144A under the Securities Act of 1933 and may be sold in transactions exempt from registration only to qualified institutional buyers or in a public offering registered under the Securities Act of 1933. At September 30, 2022, the value of was $6,915,931, representing 2.5% of net assets.

At September 30, 2022, the Fund had the following futures contracts outstanding. See Note 1(c).

 

Futures Contracts                                   
Description    Type      Number of
Contracts
     Notional
Amount*
     Expiration
Date
     Value/Unrealized
Appreciation
(Depreciation)
 
Equity Contracts                                   

Bovespa Index

     Long        115      $ 2,349,433        10/13/22      $ (88,239

*As of period end.

See 335 regarding other derivative information.

See Abbreviations on page 332.

 

           
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FRANKLIN TEMPLETON ETF TRUST

 

Financial Highlights

 

Franklin FTSE Canada ETF

 

   

Six Months Ended
September 30, 2022

(unaudited)

     Year Ended March 31,  
      2022      2021      2020      2019      2018a  
Per share operating performance
(for a share outstanding throughout the period)
                

Net asset value, beginning of period

  $ 36.07      $ 30.20      $ 19.50      $ 24.13      $ 23.77      $ 24.80  
 

 

 

 
Income from investment operationsb:                 

Net investment incomec

    0.47        0.80        0.75        0.69        0.67        0.24  

Net realized and unrealized gains (losses)

    (8.35      5.77        10.63        (4.72      0.33        (1.25
 

 

 

 

Total from investment operations

    (7.88      6.57        11.38        (4.03      1.00        (1.01
 

 

 

 

Less distributions from net investment income

    (0.05      (0.70      (0.68      (0.60      (0.64      (0.02
 

 

 

 

Net asset value, end of period

  $ 28.14      $ 36.07      $ 30.20      $ 19.50      $ 24.13      $ 23.77  
 

 

 

 

Total returnd

    (21.85)%        21.95%        59.10%        (17.25)%        4.48%        (4.06)%  
Ratios to average net assetse                 

Total expenses

    0.09%        0.09%        0.09%        0.09%        0.09%        0.09%  

Net investment income

    3.05%        2.37%        2.88%        2.73%        2.79%        2.39%  
Supplemental data                 

Net assets, end of period (000’s)

    $258,861        $43,289        $24,160        $4,876        $4,827        $2,377  

Portfolio turnover ratef

    3.26% g        5.63% g        3.14% g        4.57% g        6.95%        1.26%  

aFor the period November 2, 2017 (commencement of operations) to March 31, 2018.

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

cBased on average daily shares outstanding.

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

eRatios are annualized for periods less than one year.

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

 

gPortfolio turnover rate excluding cash creations was as follows:     3.26%        5.63%        3.14%        4.57%        

 

           
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             161


FRANKLIN TEMPLETON ETF TRUST

 

Schedule of Investments, September 30, 2022 (unaudited)

 

Franklin FTSE Canada ETF

 

           Industry        Shares        Value  
    Common Stocks 99.6%                         
    Canada 97.2%                         
 

Agnico Eagle Mines Ltd.

     Metals & Mining          82,616        $ 3,508,948  
 

Alimentation Couche-Tard Inc.

     Food & Staples Retailing          141,496          5,726,569  
 

Bank of Montreal

     Banks          122,176          10,765,146  
 

Bank of Nova Scotia

     Banks          218,040          10,425,551  
 

Barrick Gold Corp.

     Metals & Mining          321,264          5,005,831  
 

BCE Inc.

     Diversified Telecommunication Services          54,832          2,311,320  
 

Brookfield Asset Management Inc., A

     Capital Markets          241,040          9,913,155  
 

Canadian Imperial Bank of Commerce

     Banks          159,712          7,027,537  
 

Canadian National Railway Co.

     Road & Rail          111,136          12,065,986  
 

Canadian Natural Resources Ltd.

     Oil, Gas & Consumable Fuels          198,720          9,299,295  
 

Canadian Pacific Railway Ltd.

     Road & Rail          168,176          11,285,986  
 

Canadian Tire Corp. Ltd., A

     Multiline Retail          9,936          1,063,345  
 

Canadian Utilities Ltd., A

     Multi-Utilities          21,896          572,558  
 

Cenovus Energy Inc.

     Oil, Gas & Consumable Fuels          222,824          3,441,160  
a  

CGI Inc.

     IT Services          38,272          2,896,478  
 

Constellation Software Inc.

     Software          3,466          4,848,414  
 

Dollarama Inc.

     Multiline Retail          50,048          2,888,400  
 

Enbridge Inc.

     Oil, Gas & Consumable Fuels          366,344          13,656,082  
 

Fairfax Financial Holdings Ltd.

     Insurance          3,874          1,778,733  
 

Fortis Inc.

     Electric Utilities          86,480          3,302,988  
 

Franco-Nevada Corp.

     Metals & Mining          34,408          4,131,815  
 

George Weston Ltd.

     Food & Staples Retailing          12,696          1,336,358  
 

Great-West Lifeco Inc.

     Insurance          48,944          1,062,196  
b  

Hydro One Ltd., 144A

     Electric Utilities          57,224          1,406,810  
 

IGM Financial Inc.

     Capital Markets          14,720          368,737  
 

Imperial Oil Ltd.

     Oil, Gas & Consumable Fuels          34,960          1,521,748  
 

Intact Financial Corp.

     Insurance          31,832          4,528,829  
 

Loblaw Companies Ltd.

     Food & Staples Retailing          28,152          2,241,014  
 

Magna International Inc.

     Auto Components          48,760          2,325,420  
 

Manulife Financial Corp.

     Insurance          345,368          5,449,276  
 

Metro Inc., A

     Food & Staples Retailing          43,240          2,176,712  
 

National Bank of Canada

     Banks          60,904          3,837,610  
 

Nutrien Ltd.

     Chemicals          97,520          8,176,052  
 

Pembina Pipeline Corp.

     Oil, Gas & Consumable Fuels          99,728          3,045,440  
 

Power Corp. of Canada

     Insurance          97,336          2,205,211  
 

Restaurant Brands International Inc.

     Hotels, Restaurants & Leisure          54,648          2,922,408  
 

Royal Bank of Canada

     Banks          253,920          22,983,174  
 

Saputo Inc.

     Food Products          43,424          1,040,684  
 

Shaw Communications Inc.

     Media          77,280          1,889,185  
a  

Shopify Inc., A

     IT Services          205,759          5,569,067  
 

Sun Life Financial Inc.

     Insurance          106,168          4,244,247  
 

Suncor Energy Inc.

     Oil, Gas & Consumable Fuels          247,112          6,995,857  
 

TC Energy Corp.

     Oil, Gas & Consumable Fuels          182,712          7,398,636  
a  

Teck Resources Ltd., B

     Metals & Mining          83,536          2,554,017  
 

TELUS Corp.

     Diversified Telecommunication Services          85,192          1,700,678  
 

The Toronto-Dominion Bank

     Banks          329,176          20,296,052  
 

Thomson Reuters Corp.

     Professional Services          29,808          3,076,143  
 

Tourmaline Oil Corp.

     Oil, Gas & Consumable Fuels          51,152          2,672,539  
 

Wheaton Precious Metals Corp.

     Metals & Mining          81,328          2,647,503  
              

 

 

 
                 251,586,900  
              

 

 

 

 

           
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FRANKLIN TEMPLETON ETF TRUST

SCHEDULE OF INVESTMENTS (UNAUDITED)

 

Franklin FTSE Canada ETF (continued)

 

           Industry        Shares        Value  
    Common Stocks (continued)                         
    United States 2.4%                         
 

Waste Connections Inc.

     Commercial Services & Supplies          46,368        $ 6,298,597  
              

 

 

 
 

Total Investments (Cost $300,579,922) 99.6%

               257,885,497  
 

Other Assets, less Liabilities 0.4%

               975,758  
              

 

 

 
 

Net Assets 100.0%

             $ 258,861,255  
              

 

 

 

aNon-income producing.

bSecurity was purchased pursuant to Rule 144A under the Securities Act of 1933 and may be sold in transactions exempt from registration only to qualified institutional buyers or in a public offering registered under the Securities Act of 1933. At September 30, 2022, the value of was $1,406,810, representing 0.5% of net assets.

At September 30, 2022, the Fund had the following futures contracts outstanding. See Note 1(c).

 

Futures Contracts                                   
Description    Type      Number of
Contracts
     Notional
Amount*
     Expiration
Date
     Value/Unrealized
Appreciation
(Depreciation)
 
Index Contracts                                   

S&P/TSX 60 Index

     Long        5      $ 812,198        12/15/22      $ (27,595

*As of period end.

 

 

See Note 8 regarding other derivative information.

See Abbreviations on page 332.

 

           
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             163


FRANKLIN TEMPLETON ETF TRUST

 

Financial Highlights

 

Franklin FTSE China ETF

 

   

Six Months Ended

September 30, 2022

(unaudited)

     Year Ended March 31,  
      2022      2021      2020      2019      2018a  
Per share operating performance
(for a share outstanding throughout the period)

 

Net asset value, beginning of period

  $ 21.43      $ 31.78      $ 22.19      $ 24.01      $ 25.99      $ 24.95  
 

 

 

 
Income from investment operationsb:

 

Net investment income (loss)c

    0.41        0.49        0.32        0.45        0.40        (0.01

Net realized and unrealized gains (losses)

    (4.76      (10.47      9.56        (1.78      (1.99      1.05  
 

 

 

 

Total from investment operations

    (4.35      (9.98      9.88        (1.33      (1.59      1.04  
 

 

 

 

Less distributions from net investment income

    (0.14      (0.37      (0.29      (0.49      (0.39      d  
 

 

 

 

Net asset value, end of period

  $ 16.94      $ 21.43      $ 31.78      $ 22.19      $ 24.01      $ 25.99  
 

 

 

 

Total returne

    (20.42)%        (31.63)%        44.67%        (5.64)%        (5.94)%        4.17%  
Ratios to average net assetsf

 

Expenses before waiver and payments by affiliates

    0.19%        0.19%        0.19%        0.19%        0.19%        0.19%  

Expenses net of waiver and payments by affiliates

    0.19%        0.19%        0.19%        0.19%        0.19%        0.19%  

Net investment income (loss)

    4.11%        1.80%        1.06%        1.94%        1.70%        (0.12)%  
Supplemental data

 

Net assets, end of period (000’s)

    $91,484        $111,454        $120,782        $48,807        $43,220        $31,191  

Portfolio turnover rateg

    5.46% h        12.78% h        15.97% h        32.47% h       7.21%        2.71%  

 

 

aFor the period November 2, 2017 (commencement of operations) to March 31, 2018.

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.

dAmount rounds to less than $0.01 per share.

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

fRatios are annualized for periods less than one year.

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

 

h Portfolio turnover rate excluding cash creations was as follows:     5.46%        12.00%        15.31%      32.47%      

 

           
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FRANKLIN TEMPLETON ETF TRUST

 

Schedule of Investments, September 30, 2022 (unaudited)

 

Franklin FTSE China ETF

 

           Industry        Shares        Value  
    Common Stocks 99.9%                         
    China 95.3%                         
 

360 DigiTech Inc.

     Consumer Finance          6,480        $ 83,074  
 

360 Security Technology Inc., A

     Software          27,000          24,617  
 

3peak Inc., A

     Semiconductors & Semiconductor Equipment          321          10,502  
a  

3SBio Inc., A, 144A

     Biotechnology          67,500          47,896  
 

Addsino Co. Ltd., A

     Communications Equipment          5,400          7,537  
b  

Advanced Micro-Fabrication Equipment Inc. China, A

     Semiconductors & Semiconductor Equipment          2,040          30,867  
 

AECC Aero-Engine Control Co. Ltd., A

     Aerospace & Defense          5,400          19,027  
 

AECC Aviation Power Co. Ltd., A

     Aerospace & Defense          8,100          47,663  
 

Agile Group Holdings Ltd.

     Real Estate Management & Development          74,000          17,345  
 

Agricultural Bank of China Ltd., A

     Banks          332,100          133,229  
 

Agricultural Bank of China Ltd., H

     Banks          1,485,000          444,560  
 

Aier Eye Hospital Group Co. Ltd., A

     Health Care Providers & Services          22,741          91,453  
b  

Air China Ltd., A

     Airlines          16,200          23,792  
b  

Air China Ltd., H

     Airlines          78,000          59,619  
a,b  

Akeso Inc., 144A

     Biotechnology          27,000          74,638  
b  

Alibaba Group Holding Ltd., A

     Internet & Catalog Retail          738,717          7,335,506  
a  

A-Living Services Co. Ltd., H, 144A

     Commercial Services & Supplies          33,750          26,742  
 

Aluminum Corp. of China Ltd., A

     Metals & Mining          45,900          26,590  
 

Aluminum Corp. of China Ltd., H

     Metals & Mining          216,000          70,717  
b  

Amlogic Shanghai Co. Ltd.

     Semiconductors & Semiconductor Equipment          1,456          13,273  
 

Angang Steel Co. Ltd., A

     Metals & Mining          21,600          8,120  
 

Angang Steel Co. Ltd., H

     Metals & Mining          72,000          17,794  
 

Angel Yeast Co. Ltd., A

     Food Products          2,700          15,747  
a  

Angelalign Technology Inc., 144A

     Health Care Equipment & Supplies          1,200          11,519  
 

Anhui Anke Biotechnology Group Co. Ltd., A

     Pharmaceuticals          6,516          8,235  
 

Anhui Conch Cement Co. Ltd., A

     Construction Materials          13,500          54,556  
 

Anhui Conch Cement Co. Ltd., H

     Construction Materials          59,400          188,418  
 

Anhui Expressway Co. Ltd., H

     Transportation Infrastructure          18,000          11,442  
 

Anhui Gujing Distillery Co. Ltd., A

     Beverages          1,500          57,219  
 

Anhui Gujing Distillery Co. Ltd., B

     Beverages          5,900          87,186  
 

Anhui Zhongding Sealing Parts Co. Ltd., A

     Auto Components          5,400          10,612  
 

Anta Sports Products Ltd., A

     Textiles, Apparel & Luxury Goods          57,110          605,301  
 

Apeloa Pharmaceutical Co. Ltd., A

     Pharmaceuticals          5,400          12,437  
 

Asymchem Laboratories Tianjin Co. Ltd., A

     Pharmaceuticals          700          13,619  
 

Autohome Inc., ADR

     Software          3,024          86,970  
 

Avary Holding Shenzhen Co. Ltd., A

     Electronic Equipment, Instruments & Components          2,700          9,813  
 

Avic Capital Co. Ltd., A

     Diversified Financial Services          35,100          14,820  
 

AVIC Electromechanical Systems Co. Ltd., A

     Aerospace & Defense          13,500          21,474  
 

AviChina Industry & Technology Co. Ltd., H

     Aerospace & Defense          108,000          41,825  
 

AVICOPTER PLC, A

     Aerospace & Defense          2,700          15,032  
a  

BAIC Motor Corp. Ltd., A, 144A

     Automobiles          108,000          23,664  
b  

Baidu Inc.

     Interactive Media & Services          109,538          1,592,159  
 

Bank of Beijing Co. Ltd., A

     Banks          75,600          43,584  
 

Bank of Changsha Co. Ltd., A

     Banks          13,500          12,536  
 

Bank of Chengdu Co. Ltd., A

     Banks          5,400          12,392  
 

Bank of China Ltd., A

     Banks          153,900          66,705  
 

Bank of China Ltd., H

     Banks          3,726,000          1,219,865  
 

Bank of Communications Co. Ltd., A

     Banks          135,000          87,486  
 

Bank of Communications Co. Ltd., H

     Banks          351,000          185,116  
 

Bank of Guiyang Co. Ltd., A

     Banks          13,500          10,263  
 

Bank of Hangzhou Co. Ltd., A

     Banks          21,600          43,175  
 

Bank of Jiangsu Co. Ltd., A

     Banks          19,700          20,559  
 

Bank of Nanjing Co. Ltd., A

     Banks          35,100          51,795  
 

Bank of Ningbo Co. Ltd., A

     Banks          21,620          95,679  
 

Bank of Qingdao Co. Ltd., A

     Banks          16,200          7,703  
 

Bank of Shanghai Co. Ltd., A

     Banks          51,300          42,095  
 

Bank of Suzhou Co. Ltd., A

     Banks          5,920          5,539  

 

           
franklintempleton.com  

Semiannual Report

             165


FRANKLIN TEMPLETON ETF TRUST

SCHEDULE OF INVESTMENTS (UNAUDITED)

 

Franklin FTSE China ETF (continued)

 

           Industry        Shares        Value  
    Common Stocks (continued)                         
    China (continued)                         
b  

Bank of Zhengzhou Co. Ltd., A

     Banks          20,580        $ 6,899  
 

Baoshan Iron & Steel Co. Ltd., A

     Metals & Mining          64,800          47,810  
 

BBMG Corp., A

     Construction Materials          35,100          12,259  
 

BBMG Corp., H

     Construction Materials          108,000          13,070  
b  

BeiGene Ltd.

     Biotechnology          29,700          306,652  
 

Beijing Capital Co. Ltd., A

     Water Utilities          27,000          9,847  
 

Beijing Capital Development Co. Ltd., A

     Real Estate Management & Development          8,100          4,976  
b  

Beijing Capital International Airport Co. Ltd., A

     Transportation Infrastructure          108,000          58,472  
b  

Beijing Dabeinong Technology Group Co. Ltd., A

     Food Products          13,500          15,149  
 

Beijing Easpring Material Technology Co. Ltd.

     Chemicals          2,700          25,000  
b  

Beijing E-Hualu Information Technology Co. Ltd., A

     Software          2,700          4,745  
 

Beijing Enlight Media Co. Ltd., H

     Entertainment          10,800          10,756  
 

Beijing Enterprises Holdings Ltd., H

     Industrial Conglomerates          27,000          75,842  
b  

Beijing Jetsen Technology Co. Ltd., A

     Software          8,100          5,045  
 

Beijing Jingneng Clean Energy Co. Ltd., H

     Independent Power Producers & Energy Traders          54,000          10,319  
 

Beijing Kingsoft Office Software Inc., A

     Software          1,560          44,007  
 

Beijing New Building Materials PLC, A

     Building Products          5,400          18,217  
b  

Beijing Orient National Communication Science &Technology Co. Ltd., A

     Software          5,400          5,469  
 

Beijing Originwater Technology Co. Ltd., H

     Commercial Services & Supplies          3,335          2,208  
 

Beijing Roborock Technology Co. Ltd., A

     Household Durables          280          10,140  
 

Beijing Sanju Environmental Protection and New Material Co. Ltd., A

     Chemicals          9,300          5,348  
 

Beijing Shiji Information Technology Co. Ltd., A

     Software          6,080          10,550  
 

Beijing Shougang Co. Ltd., A

     Metals & Mining          27,000          13,521  
 

Beijing Shunxin Agriculture Co. Ltd., A

     Beverages          2,700          7,540  
 

Beijing Sinnet Technology Co. Ltd., A

     IT Services          5,600          6,276  
 

Beijing Tiantan Biological Products Corp. Ltd., A

     Biotechnology          6,920          19,598  
 

Beijing Tongrentang Co. Ltd., A

     Pharmaceuticals          5,400          34,502  
 

Beijing Ultrapower Software Co. Ltd., A

     IT Services          8,100          4,204  
 

Beijing United Information Technology Co. Ltd., A

     Trading Companies & Distributors          1,740          26,350  
 

Beijing Wantai Biological Pharmacy Enterprise Co. Ltd., A

     Biotechnology          1,015          16,287  
 

Beijing Yanjing Brewery Co. Ltd., A

     Beverages          10,800          14,134  
 

Beijing Yuanliu Hongyuan Electronic Technology Co. Ltd., A

     Electronic Equipment, Instruments & Components          800          13,828  
 

Beijing Zhong Ke San Huan High-Tech Co. Ltd., A

     Electronic Equipment, Instruments & Components          5,760          11,182  
 

Beijing-Shanghai High Speed Railway Co. Ltd., A

     Road & Rail          102,600          65,050  
b  

Bilibili Inc.

     Entertainment          12,420          189,229  
 

Bloomage Biotechnology Corp. Ltd., A

     Biotechnology          1,118          20,544  
a  

Blue Moon Group Holdings Ltd., 144A

     Household Products          40,500          28,583  
 

Bluefocus Intelligent Communications Group Co. Ltd., A

     Media          10,800          6,787  
 

Bluestar Adisseo Co., A

     Chemicals          2,700          3,734  
 

BOC International China Co. Ltd., A

     Capital Markets          2,700          3,973  
 

BOE Technology Group Co. Ltd., A

     Electronic Equipment, Instruments & Components          129,600          59,445  
 

BOE Technology Group Co. Ltd., B

     Electronic Equipment, Instruments & Components          51,300          21,893  
 

Bright Dairy & Food Co. Ltd., A

     Food Products          5,400          7,931  
 

BTG Hotels Group Co. Ltd., A

     Hotels, Restaurants & Leisure          5,400          16,202  
 

BYD Co. Ltd., A

     Automobiles          6,400          226,235  
 

BYD Co. Ltd., H

     Automobiles          40,738          1,008,862  
 

BYD Electronic International Co. Ltd.

     Communications Equipment          37,500          90,574  
 

By-health Co. Ltd., A

     Personal Products          5,400          13,331  
 

C&S Paper Co. Ltd., A

     Household Products          5,400          7,711  
 

Caida Securities Co. Ltd., A

     Capital Markets          5,400          5,189  
 

Caitong Securities Co. Ltd., A

     Capital Markets          16,260          15,418  

 

           
166             

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  franklintempleton.com


FRANKLIN TEMPLETON ETF TRUST

SCHEDULE OF INVESTMENTS (UNAUDITED)

 

Franklin FTSE China ETF (continued)

 

           Industry        Shares        Value  
    Common Stocks (continued)                         
    China (continued)                         
 

Camel Group Co. Ltd., A

     Electrical Equipment          5,400        $ 6,385  
 

CanSino Biologics Inc., A

     Pharmaceuticals          240          4,073  
a,c  

CanSino Biologics Inc., H, 144A, Reg S

     Pharmaceuticals          3,200          18,161  
b  

CECEP Solar Energy Co. Ltd., H

     Semiconductors & Semiconductor Equipment          10,800          10,347  
 

CECEP Wind-Power Corp, A

     Independent Power Producers & Energy Traders          18,900          11,665  
 

Central China Securities Co. Ltd., A

     Capital Markets          10,800          5,287  
 

Central China Securities Co. Ltd., H

     Capital Markets          54,000          6,948  
 

CGN Power Co. Ltd., A

     Independent Power Producers & Energy Traders          29,700          10,998  
a  

CGN Power Co. Ltd., H, 144A

     Independent Power Producers & Energy Traders          540,000          116,944  
 

Changchun High & New Technology Industry Group Inc., A

     Pharmaceuticals          1,500          35,842  
 

Changjiang Securities Co. Ltd., A

     Capital Markets          21,600          15,785  
 

Changzhou Xingyu Automotive LightingSystems Co. Ltd., A

     Auto Components          1,000          21,376  
 

Chaozhou Three-Circle Group Co. Ltd., A

     Electronic Equipment, Instruments & Components          5,400          19,724  
 

Chengdu Xingrong Environment Co. Ltd., A

     Water Utilities          10,800          7,529  
 

Chengxin Lithium Group Co. Ltd., A

     Paper & Forest Products          2,700          17,709  
 

China Baoan Group Co. Ltd., A

     Industrial Conglomerates          8,100          12,748  
 

China Cinda Asset Management Co. Ltd., H

     Capital Markets          432,000          47,878  
 

China CITIC Bank Corp. Ltd., A

     Banks          35,100          22,451  
 

China CITIC Bank Corp. Ltd., H

     Banks          459,000          182,433  
 

China Coal Energy Co. Ltd., A

     Oil, Gas & Consumable Fuels          18,900          28,208  
 

China Coal Energy Co. Ltd., H

     Oil, Gas & Consumable Fuels          108,000          97,958  
 

China Communications Services Corp. Ltd., H

     Diversified Telecommunication Services          118,000          39,685  
b  

China Conch Environment Protection Holdings Ltd.

     Commercial Services & Supplies          67,120          34,373  
 

China Conch Venture Holdings Ltd.

     Construction & Engineering          73,410          117,083  
 

China Construction Bank Corp., A

     Banks          35,100          27,177  
 

China Construction Bank Corp., H

     Banks          4,590,000          2,654,633  
 

China CSSC Holdings Ltd., A

     Machinery          16,200          51,469  
a,c  

China East Education Holdings Ltd., A, 144A, Reg S

     Diversified Consumer Services          27,000          8,943  
b  

China Eastern Airlines Corp. Ltd., A

     Airlines          40,500          27,723  
b  

China Eastern Airlines Corp. Ltd., H

     Airlines          54,000          18,367  
 

China Energy Engineering Corp. Ltd.

     Construction & Engineering          116,100          36,479  
 

China Energy Engineering Corp. Ltd., H

     Construction & Engineering          216,000          22,563  
 

China Everbright Bank Co. Ltd., A

     Banks          143,100          56,604  
 

China Everbright Bank Co. Ltd., H

     Banks          135,000          37,147  
b  

China Evergrande Group, A

     Real Estate Management & Development          182,000          15,314  
a,c  

China Feihe Ltd., 144A, Reg S

     Food Products          189,000          132,422  
 

China Galaxy Securities Co. Ltd., A

     Capital Markets          8,100          10,226  
 

China Galaxy Securities Co. Ltd., H

     Capital Markets          175,500          81,156  
 

China Great Wall Securities Co. Ltd., A

     Capital Markets          8,100          9,294  
 

China Greatwall Technology Group Co. Ltd., A

     Technology Hardware, Storage & Peripherals          10,800          12,937  
 

China Hongqiao Group Ltd.

     Metals & Mining          108,000          89,428  
 

China International Capital Corp. Ltd., A

     Capital Markets          2,700          13,032  
a  

China International Capital Corp. Ltd., H, 144A

     Capital Markets          75,600          109,983  
 

China International Marine Containers (Group) Co. Ltd., H

     Machinery          35,100          22,357  
 

China International Marine Containers Group Co. Ltd., A

     Machinery          8,550          8,287  
 

China Jushi Co. Ltd., A

     Construction Materials          14,787          27,337  
 

China Lesso Group Holdings Ltd.

     Building Products          54,000          50,286  
 

China Life Insurance Co. Ltd., H

     Insurance          378,000          484,424  
a,b  

China Literature Ltd., A, 144A

     Media          21,600          61,224  
 

China Lodging Group Ltd., ADR

     Hotels, Restaurants & Leisure          10,692          358,610  
 

China Longyuan Power Group Corp., A

     Independent Power Producers & Energy Traders          162,000          203,276  
 

China Medical System Holdings Ltd.

     Pharmaceuticals          61,000          72,812  

 

           
franklintempleton.com  

Semiannual Report

             167


FRANKLIN TEMPLETON ETF TRUST

SCHEDULE OF INVESTMENTS (UNAUDITED)

 

Franklin FTSE China ETF (continued)

 

           Industry        Shares        Value  
    Common Stocks (continued)                         
    China (continued)                         
 

China Meheco Co. Ltd., A

     Trading Companies & Distributors          5,440        $ 9,187  
 

China Meidong Auto Holdings Ltd.

     Specialty Retail          22,000          34,808  
 

China Merchants Bank Co. Ltd., A

     Banks          70,200          331,348  
 

China Merchants Bank Co. Ltd., H

     Banks          186,000          864,852  
 

China Merchants Energy Shipping Co. Ltd., A

     Oil, Gas & Consumable Fuels          27,000          26,890  
 

China Merchants Expressway Network & Technology Holdings Co. Ltd., A

     Transportation Infrastructure          10,800          11,483  
 

China Merchants Port Holdings Co. Ltd.

     Transportation Infrastructure          71,980          90,503  
 

China Merchants Property Operation & Service Co. Ltd., A

     Real Estate Management & Development          2,700          5,779  
a  

China Merchants Securities Co. Ltd., A, 144A

     Capital Markets          21,600          18,711  
 

China Merchants Securities Co. Ltd., A

     Capital Markets          27,000          46,735  
 

China Merchants Shekou Industrial Zone Holdings Co. Ltd., A

     Real Estate Management & Development          24,300          55,696  
b  

China Minmetals Rare Earth Co. Ltd., A

     Metals & Mining          2,700          9,968  
 

China Minsheng Banking Corp. Ltd., A

     Banks          124,200          59,059  
 

China Minsheng Banking Corp. Ltd., H

     Banks          297,000          85,128  
 

China Molybdenum Co. Ltd., A

     Metals & Mining          35,100          23,239  
 

China Molybdenum Co. Ltd., H

     Metals & Mining          201,000          78,609  
 

China National Building Material Co. Ltd., H

     Construction Materials          216,000          165,373  
 

China National Chemical Engineering Co. Ltd., A

     Construction & Engineering          21,600          24,269  
 

China National Nuclear Power Co. Ltd., A

     Independent Power Producers & Energy Traders          59,400          48,742  
 

China National Software & Service Co. Ltd., A

     Software          2,700          16,308  
 

China Northern Rare Earth Group High-Tech Co. Ltd., A

     Metals & Mining          10,800          40,236  
 

China Oilfield Services Ltd., A

     Energy Equipment & Services          5,400          10,869  
 

China Oilfield Services Ltd., H

     Energy Equipment & Services          90,000          89,313  
 

China Orient Securities Co. Ltd., A

     Capital Markets          24,924          26,885  
 

China Pacific Insurance Group Co. Ltd., A

     Insurance          24,300          69,296  
 

China Pacific Insurance Group Co. Ltd., H

     Insurance          124,200          228,784  
 

China Petroleum & Chemical Corp., A

     Oil, Gas & Consumable Fuels          118,800          71,488  
 

China Petroleum & Chemical Corp., H

     Oil, Gas & Consumable Fuels          1,242,000          533,197  
 

China Railway Group Ltd., A

     Construction & Engineering          72,900          53,480  
 

China Railway Group Ltd., H

     Construction & Engineering          189,000          92,695  
a,c  

China Railway Signal & Communication Corp. Ltd., 144A, Reg S

    
Electronic Equipment, Instruments &
Components
 
 
       81,000          22,288  
 

China Railway Signal & Communication Corp. Ltd., A

    
Electronic Equipment, Instruments &
Components
 
 
       23,382          13,611  
 

China Reinsurance Group Corp., H

     Insurance          324,000          20,018  
 

China Resources Cement Holdings Ltd.

     Construction Materials          118,000          54,717  
 

China Resources Double Crane Pharmaceutical Co. Ltd., A

     Pharmaceuticals        2,700          6,662  
 

China Resources Microelectronics Ltd., A

     Semiconductors & Semiconductor Equipment          3,432          22,924  
a  

China Resources Mixc Lifestyle Services Ltd., 144A

     Real Estate Management & Development          27,000          103,702  
a  

China Resources Pharmaceutical Group Ltd., A, 144A

     Pharmaceuticals          81,000          55,617  
 

China Resources Power Holdings Co. Ltd.

     Independent Power Producers & Energy Traders          95,100          147,801  
 

China Resources Sanjiu Medical & Pharmaceutical Co. Ltd., B

     Pharmaceuticals          2,700          14,547  
 

China Shenhua Energy Co. Ltd., A

     Oil, Gas & Consumable Fuels          24,300          107,846  
 

China Shenhua Energy Co. Ltd., H

     Oil, Gas & Consumable Fuels          166,649          497,830  
 

China Shipping Container Lines Co. Ltd., A

     Marine          37,800          13,096  
b  

China Shipping Development Co. Ltd., A

     Marine          10,800          27,405  
 

China South Publishing & Media Group Co. Ltd., A

     Media          8,100          11,180  
b  

China Southern Airlines Co. Ltd., A

     Airlines          35,100          32,692  

 

           
168             

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  franklintempleton.com


FRANKLIN TEMPLETON ETF TRUST

SCHEDULE OF INVESTMENTS (UNAUDITED)

 

Franklin FTSE China ETF (continued)

 

           Industry        Shares        Value  
    Common Stocks (continued)                         
    China (continued)                         
b  

China Southern Airlines Co. Ltd., H

     Airlines          74,000        $ 39,027  
 

China Southern Power Grid Energy Efficiency&Clean Energy Co. Ltd., A

     Commercial Services & Supplies          10,800          8,605  
 

China State Construction Engineering Corp. Ltd., A

     Construction & Engineering          137,700          99,473  
 

China Suntien Green Energy Corp. Ltd.

     Oil, Gas & Consumable Fuels          81,000          29,718  
 

China Taiping Insurance Holdings Co. Ltd.

     Insurance          70,200          59,112  
 

China Three Gorges Renewables Group Co. Ltd., A

     Independent Power Producers & Energy Traders          89,100          70,364  
 

China Tourism Group Duty Free Corp. Ltd., A

     Hotels, Restaurants & Leisure          7,100          197,439  
a,c  

China Tower Corp. Ltd., H, 144A, Reg S

     Diversified Telecommunication Services          2,268,000          242,694  
b  

China TransInfo Technology Co. Ltd., A

     IT Services          2,700          3,147  
 

China United Network Communications Ltd., A

     Wireless Telecommunication Services          97,200          45,674  
 

China Vanke Co. Ltd., A

     Real Estate Management & Development          32,400          81,032  
 

China Vanke Co. Ltd., H

     Real Estate Management & Development          94,500          172,149  
 

China World Trade Center Co. Ltd., A

     Real Estate Management & Development          2,700          5,185  
 

China Yangtze Power Co. Ltd., A

     Independent Power Producers & Energy Traders          78,300          249,755  
 

China Zhenhua Group Science & Technology Co. Ltd., A

     Electronic Equipment, Instruments & Components          1,800          29,283  
b  

China Zheshang Bank Co. Ltd., A

     Banks          27,000          11,286  
 

Chinalin Securities Co. Ltd., A

     Capital Markets          2,700          4,939  
 

Chinese Universe Publishing and Media Group Co. Ltd., A

     Media          5,400          6,355  
 

Chongqing Brewery Co. Ltd., A

     Beverages          1,700          26,755  
 

Chongqing Changan Automobile Co. Ltd., A

     Automobiles          28,144          49,584  
 

Chongqing Changan Automobile Co. Ltd., B

     Automobiles          76,172          35,030  
 

Chongqing Fuling Zhacai Group Co. Ltd., A

     Food Products          2,700          10,294  
 

Chongqing Rural Commercial Bank Co. Ltd., A

     Banks          16,200          8,112  
 

Chongqing Rural Commercial Bank Co. Ltd., H

     Banks          108,000          35,083  
 

Chongqing Water Group Co. Ltd., A

     Water Utilities          8,100          5,783  
 

Chongqing Zhifei Biological Products Co. Ltd., B

     Biotechnology          5,400          65,467  
 

CIFI Holdings Group Co. Ltd., A

     Real Estate Management & Development          196,320          20,007  
 

CITIC Ltd., B

     Industrial Conglomerates          243,000          229,073  
 

Citic Pacific Special Steel Group Co. Ltd., A

     Metals & Mining          17,080          42,214  
 

CITIC Securities Co. Ltd., A

     Capital Markets          40,500          98,961  
 

CITIC Securities Co. Ltd., H

     Capital Markets          108,200          183,873  
 

CMST Development Co. Ltd., A

     Air Freight & Logistics          8,100          5,522  
 

CNOOC Energy Technology & Services Ltd., A

     Energy Equipment & Services          18,900          7,635  
 

CNPC Capital Co. Ltd., A

     Machinery          16,200          10,180  
b  

Contemporary Amperex Technology Co. Ltd., H

     Electrical Equipment          8,300          466,730  
 

COSCO SHIPPING Development Co. Ltd., H

     Marine          189,000          23,836  
b  

COSCO SHIPPING Energy Transportation Co. Ltd., H

     Marine          66,000          54,903  
 

COSCO SHIPPING Holdings Co. Ltd., A

     Marine          45,180          69,838  
 

COSCO SHIPPING Holdings Co. Ltd., B

     Marine          162,000          190,069  
 

Country Garden Holdings Co. Ltd.

     Real Estate Management & Development          486,000          112,679  
 

Country Garden Services Holdings Co. Ltd.

     Commercial Services & Supplies          91,300          134,451  
 

CRRC Corp. Ltd., A

     Machinery          78,300          51,511  
 

CRRC Corp. Ltd., H

     Machinery          189,000          61,155  
a  

CSC Financial Co. Ltd., A, 144A

     Capital Markets          40,500          30,956  
 

CSC Financial Co. Ltd., A

     Capital Markets          16,200          52,651  
 

CSG Holding Co. Ltd.

     Construction Materials          56,700          21,741  
 

CSG Holding Co. Ltd., A

     Construction Materials          5,400          5,257  
 

CSPC Pharmaceutical Group Ltd., A

     Pharmaceuticals          432,000          428,153  
 

Daan Gene Co. Ltd.

     Biotechnology          3,940          9,163  
b  

Dada Nexus Ltd., A, ADR

     Internet & Catalog Retail          3,510          16,602  
a  

Dali Foods Group Co. Ltd., 144A

     Food Products          108,000          46,502  
 

Daqin Railway Co. Ltd., A

     Road & Rail          54,000          51,280  

 

           
franklintempleton.com  

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             169


FRANKLIN TEMPLETON ETF TRUST

SCHEDULE OF INVESTMENTS (UNAUDITED)

 

Franklin FTSE China ETF (continued)

 

           Industry        Shares        Value  
    Common Stocks (continued)                         
    China (continued)                         
b  

Daqo New Energy Corp.

     Semiconductors & Semiconductor Equipment          2,754        $ 146,182  
 

DaShenLin Pharmaceutical Group Co. Ltd., A

     Food & Staples Retailing          1,152          4,896  
b  

Datang International Power Generation Co. Ltd., A

     Independent Power Producers & Energy Traders          24,300          11,316  
b  

Datang International Power Generation Co. Ltd., H

     Independent Power Producers & Energy Traders          108,000          20,637  
 

DHC Software Co. Ltd., A

     IT Services          10,800          8,074  
 

Dian Diagnostics Group Co. Ltd., A

     Health Care Providers & Services          2,700          10,991  
 

Do-Fluoride Chemicals Co. Ltd., A

     Chemicals          2,700          13,596  
 

Dong-E-E-Jiao Co. Ltd., A

     Pharmaceuticals          2,700          12,267  
 

Dongfang Electric Corp. Ltd., A

     Electrical Equipment          10,800          30,965  
 

Dongfang Electric Corp. Ltd., H

     Electrical Equipment          16,200          22,082  
 

Dongfeng Motor Group Co. Ltd., H

     Automobiles          143,300          76,671  
 

Dongxing Securities Co. Ltd., A

     Capital Markets          10,800          11,210  
 

East Group Co. Ltd., A

     Electrical Equipment          8,100          7,385  
 

East Money Information Co. Ltd.

     Capital Markets          45,280          111,911  
 

Eastern Air Logistics Co. Ltd., A

     Air Freight & Logistics          5,400          12,028  
 

Ecovacs Robotics Co. Ltd., A

     Household Durables          1,700          15,905  
 

ENN Ecological Holdings Co. Ltd., A

     Chemicals          8,100          21,088  
 

ENN Energy Holdings Ltd.

     Gas Utilities          38,300          512,300  
 

Eternal Asia Supply Chain Management Ltd., A

     Commercial Services & Supplies          10,800          8,362  
 

Eve Energy Co. Ltd.

     Electrical Equipment          6,900          81,881  
a  

Everbright Securities Co. Ltd., 144A

     Capital Markets          16,200          8,750  
 

Everbright Securities Co. Ltd., A

     Capital Markets          13,500          24,901  
a,b  

Evergrande Property Services Group Ltd., 144A

     Real Estate Management & Development          221,000          23,348  
b  

Fangda Carbon New Material Co. Ltd.

     Electrical Equipment          13,500          11,797  
 

Far East Horizon Ltd.

     Diversified Financial Services          54,000          36,459  
 

Faw Jiefang Group Co. Ltd.

     Automobiles          10,800          10,877  
 

Fiberhome Telecommunication Technologies Co. Ltd., A

     Communications Equipment          5,400          9,408  
b  

FIH Mobile Ltd.

     Electronic Equipment, Instruments & Components          135,000          13,930  
 

Financial Street Holdings Co. Ltd., A

     Real Estate Management & Development          10,800          7,696  
 

First Capital Securities Co. Ltd.

     Capital Markets          16,200          12,384  
b  

Flat Glass Group Co Ltd., H

     Semiconductors & Semiconductor Equipment          27,000          65,695  
b  

Flat Glass Group Co. Ltd., A

     Semiconductors & Semiconductor Equipment          2,700          12,384  
 

Focus Media Information Technology Co. Ltd.

     Technology Hardware, Storage & Peripherals          51,300          39,721  
 

Foshan Haitian Flavouring & Food Co. Ltd.

     Food Products          14,061          163,348  
 

Fosun International Ltd.

     Industrial Conglomerates          108,000          67,002  
 

Founder Securities Co. Ltd., A

     Capital Markets          29,700          27,287  
 

Foxconn Industrial Internet Co. Ltd., A

     Electronic Equipment, Instruments & Components          45,900          54,855  
 

Fu Jian Anjoy Foods Co. Ltd., A

     Food Products          700          15,247  
 

Fujian Funeng Co. Ltd., A

     Independent Power Producers & Energy Traders          5,400          8,097  
 

Fujian Sunner Development Co. Ltd.

     Food Products          5,400          14,664  
b  

Full Truck Alliance Co. Ltd.

     Road & Rail          30,915          202,493  
 

Fuyao Glass Industry Group Co. Ltd., A

     Auto Components          8,100          40,687  
a  

Fuyao Group Glass Industries Co. Ltd., 144A

     Auto Components          32,400          130,840  
 

Ganfeng Lithium Co. Ltd.

     Metals & Mining          5,660          59,417  
a  

Ganfeng Lithium Co. Ltd., H, 144A

     Metals & Mining          10,560          70,289  
 

G-bits Network Technology Xiamen Co. Ltd., A

     Entertainment          200          6,972  
b  

GCL System Integration Technology Co. Ltd.

     Semiconductors & Semiconductor Equipment          21,600          9,574  
b  

GD Power Development Co. Ltd., A

     Independent Power Producers & Energy Traders          64,800          36,994  
b  

GDS Holdings Ltd.

     IT Services          45,900          100,572  
 

GEM Co. Ltd.

     Metals & Mining          18,900          19,565  
 

Gemdale Corp., A

     Real Estate Management & Development          16,200          26,109  
b  

Genscript Biotech Corp.

     Life Sciences Tools & Services          47,769          104,424  
 

GF Securities Co. Ltd.

     Capital Markets          21,600          43,235  
 

GF Securities Co. Ltd., H

     Capital Markets          54,000          58,816  
 

Gigadevice Semiconductor Beijing Inc., A

     Semiconductors & Semiconductor Equipment          2,248          29,562  

 

           
170             

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FRANKLIN TEMPLETON ETF TRUST

SCHEDULE OF INVESTMENTS (UNAUDITED)

 

Franklin FTSE China ETF (continued)

 

           Industry        Shares        Value  
    Common Stocks (continued)                         
    China (continued)                         
 

Ginlong Technologies Co. Ltd., A

     Electrical Equipment          1,350        $ 41,840  
 

Glarun Technology Co. Ltd., A

     Communications Equipment          5,400          10,157  
 

GoerTek Inc.

     Electronic Equipment, Instruments & Components          10,800          40,145  
b  

GOME Retail Holdings Ltd.

     Specialty Retail          621,000          11,629  
b  

Grandjoy Holdings Group Co. Ltd., A

     Real Estate Management & Development          16,200          7,612  
 

Great Wall Motor Co. Ltd., A

     Automobiles          8,100          31,586  
 

Great Wall Motor Co. Ltd., H

     Automobiles          148,500          170,635  
 

Greentown China Holdings Ltd.

     Real Estate Management & Development          40,500          76,151  
 

GRG Banking Equipment Co. Ltd.

     Technology Hardware, Storage & Peripherals          8,100          9,260  
 

Guangdong Baolihua New Energy Stock Co. Ltd.

     Independent Power Producers & Energy Traders          8,100          5,363  
b  

Guangdong Electric Power Development Co. Ltd., A

     Independent Power Producers & Energy Traders          8,100          5,067  
b  

Guangdong Electric Power Development Co. Ltd., B

     Independent Power Producers & Energy Traders          43,200          11,612  
 

Guangdong Golden Dragon Development Inc.

     Capital Markets          2,700          5,120  
 

Guangdong Haid Group Co. Ltd.

     Food Products          6,300          53,269  
b  

Guangdong HEC Technology Holding Co. Ltd., A

     Metals & Mining          10,800          13,331  
 

Guangdong Kinlong Hardware Products Co. Ltd.

     Building Products          700          8,693  
b  

Guangdong LY Intelligent Manufacturing Co. Ltd.

     Electrical Equipment          27,000          16,853  
 

Guangdong Xinbao Electrical Appliances Holdings Co. Ltd.

     Household Durables          2,700          6,711  
 

Guanghui Energy Co. Ltd., A

     Oil, Gas & Consumable Fuels          24,300          41,857  
 

Guangshen Railway Co. Ltd., A

     Road & Rail          13,500          3,693  
b  

Guangshen Railway Co. Ltd., H

     Road & Rail          108,000          14,721  
 

Guangxi Guiguan Electric Power Co. Ltd., A

     Independent Power Producers & Energy Traders          13,500          11,097  
 

Guangxi Liugong Machinery Co. Ltd.

     Machinery          5,400          4,280  
 

Guangzhou Automobile Group Co. Ltd., A

     Automobiles          10,800          18,376  
 

Guangzhou Automobile Group Co. Ltd., H

     Automobiles          154,000          109,861  
 

Guangzhou Baiyunshan Pharmaceutical Holdings Co. Ltd., A

     Pharmaceuticals          5,400          19,663  
 

Guangzhou Baiyunshan Pharmceutical Holdings Co. Ltd.

     Pharmaceuticals          9,900          21,389  
 

Guangzhou Haige Communications Group Inc. Co.

     Communications Equipment          8,100          8,828  
 

Guangzhou Kingmed Diagnostics Group Co. Ltd.

     Health Care Providers & Services          2,700          24,004  
 

Guangzhou Shiyuan Electronic Technology Co. Ltd., A

     Electronic Equipment, Instruments & Components          700          5,862  
 

Guangzhou TInc.i Materials Technology Co. Ltd.

     Chemicals          7,060          43,633  
 

Guangzhou Wondfo Biotech Co. Ltd., A

     Health Care Equipment & Supplies          1,300          5,348  
 

Guangzhou Yuexiu Financial Holdings Group Co. Ltd., A

     Capital Markets          9,493          7,563  
 

Guangzhou Zhujiang Brewery Co. Ltd.

     Beverages          5,400          5,734  
b  

Guizhou Bailing Group Pharmaceutical Co. Ltd., A

     Pharmaceuticals          5,400          4,810  
 

Guizhou Panjiang Refined Coal Co. Ltd., A

     Oil, Gas & Consumable Fuels          5,400          6,423  
 

Guizhou Xinbang Pharmaceutical Co. Ltd.

     Pharmaceuticals          8,100          5,499  
 

Guolian Securities Co. Ltd., A

     Capital Markets          8,100          9,930  
 

Guosen Securities Co. Ltd.

     Capital Markets          18,900          22,799  
b  

Guosheng Financial Holding Inc.

     Electrical Equipment          8,100          8,669  
a  

Guotai Junan Securities Co. Ltd., 144A

     Capital Markets          37,800          40,160  
 

Guotai Junan Securities Co. Ltd., A

     Capital Markets          24,300          46,595  
 

Guoxuan High-Tech Co. Ltd.

     Electrical Equipment          5,400          23,125  
 

Guoyuan Securities Co. Ltd.

     Capital Markets          16,200          14,543  
a,b,c  

Haidilao International Holding Ltd., 144A, Reg S

     Hotels, Restaurants & Leisure          54,000          105,938  
 

Haier Smart Home Co. Ltd., A

     Household Durables          21,600          75,048  
 

Haier Smart Home Co. Ltd., H

     Household Durables          113,400          347,427  
 

Haitian International Holdings Ltd.

     Machinery          28,000          53,219  
 

Haitong Securities Co. Ltd., A

     Capital Markets          35,100          42,637  

 

           
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             171


FRANKLIN TEMPLETON ETF TRUST

SCHEDULE OF INVESTMENTS (UNAUDITED)

 

Franklin FTSE China ETF (continued)

 

           Industry        Shares        Value  
    Common Stocks (continued)                         
    China (continued)                         
 

Haitong Securities Co. Ltd., H

     Capital Markets          162,000        $ 85,851  
b  

Hang Zhou Great Star Industrial Co. Ltd.

     Household Durables          5,400          14,392  
 

Hangzhou Binjiang Real Estate Group Co. Ltd.

     Real Estate Management & Development          10,800          15,861  
 

Hangzhou Chang Chuan Technology Co. Ltd., A

     Semiconductors & Semiconductor Equipment          2,700          21,595  
 

Hangzhou First Applied Material Co. Ltd., A

     Semiconductors & Semiconductor Equipment          2,440          18,208  
 

Hangzhou Lion Electronics Co. Ltd., A

     Semiconductors & Semiconductor Equipment          2,700          17,243  
 

Hangzhou Oxygen Plant Group Co. Ltd.

     Machinery          2,700          12,987  
 

Hangzhou Robam Appliances Co. Ltd., A

     Household Durables          2,700          8,684  
 

Hangzhou Silan Microelectronics Co. Ltd., A

     Semiconductors & Semiconductor Equipment          5,400          24,276  
 

Hangzhou Tigermed Consulting Co. Ltd.

     Life Sciences Tools & Services          2,700          34,532  
a,c  

Hangzhou Tigermed Consulting Co. Ltd., A, 144A, Reg S

     Life Sciences Tools & Services          6,500          52,704  
 

Han’s Laser Technology Industry Group Co. Ltd., A

     Machinery          2,700          9,870  
a  

Hansoh Pharmaceutical Group Co. Ltd., 144A

     Pharmaceuticals          54,000          85,438  
 

Haohua Chemical Science & Technology Co. Ltd., A

     Chemicals          2,700          14,732  
 

Harbin Boshi Automation Co. Ltd.

     Machinery          2,700          5,408  
 

Hefei Meiya Optoelectronic Technology Inc.

     Machinery          3,480          11,169  
 

Heilongjiang Agriculture Co. Ltd., A

     Food Products          5,400          10,082  
 

Henan Shuanghui Investment & Development Co. Ltd.

     Food Products          10,800          37,055  
 

Hengan International Group Co. Ltd.

     Personal Products          34,750          155,381  
 

Hengdian Group DMEGC Magnetics Co. Ltd.

     Electronic Equipment, Instruments & Components          5,400          14,990  
 

Hengli Petrochemical Co. Ltd., A

     Chemicals          10,800          25,632  
b  

HengTen Networks Group Ltd.

     Internet & Catalog Retail          108,000          23,114  
 

Hengtong Optic-electric Co. Ltd.

     Communications Equipment          8,100          20,678  
 

Hengyi Petrochemical Co. Ltd., A

     Chemicals          13,500          14,600  
 

Hesteel Co. Ltd.

     Metals & Mining          37,800          11,930  
 

Hithink RoyalFlush Information Network Co. Ltd., A

     Capital Markets          2,700          29,344  
b  

Holitech Technology Co. Ltd.

     Electronic Equipment, Instruments & Components          10,800          3,939  
 

Hongfa Technology Co. Ltd., A

     Electrical Equipment          3,740          18,272  
 

Hopson Development Holdings Ltd.

     Real Estate Management & Development          36,544          38,267  
 

Hoshine Silicon Industry Co. Ltd., A

     Chemicals          2,700          41,490  
a,b  

Hua Hong Semiconductor Ltd., 144A

     Semiconductors & Semiconductor Equipment          20,000          45,759  
 

Huadian Power International Corp. Ltd., A

     Independent Power Producers & Energy Traders          24,300          20,281  
 

Huadian Power International Corp. Ltd., H

     Independent Power Producers & Energy Traders          54,000          19,743  
 

Huadong Medicine Co. Ltd., A

     Health Care Providers & Services          5,400          30,389  
 

Huafa Industrial Co. Ltd. Zhuhai, A

     Real Estate Management & Development          8,100          11,191  
 

Huafon Chemical Co. Ltd.

     Chemicals          13,500          12,365  
 

Huagong Tech Co. Ltd.

     Electronic Equipment, Instruments & Components          2,700          6,999  
 

Huaibei Mining Holdings Co. Ltd., A

     Metals & Mining          8,100          19,145  
 

Hualan Biological Engineering Inc.

     Biotechnology          6,060          15,437  
 

Huaneng Lancang River Hydropower Inc., A

     Independent Power Producers & Energy Traders          21,600          20,845  
b  

Huaneng Power International Inc., A

     Independent Power Producers & Energy Traders          27,000          28,745  
 

Huaneng Power International Inc., H

     Independent Power Producers & Energy Traders          216,000          94,106  
 

Huapont Life Sciences Co. Ltd.

     Chemicals          5,400          4,030  
a  

Huatai Securities Co. Ltd., 144A

     Capital Markets          75,600          83,209  
 

Huatai Securities Co. Ltd., A

     Capital Markets          27,000          45,902  
 

Huaxi Securities Co. Ltd.

     Capital Markets          8,100          8,328  
 

Huaxia Bank Co. Ltd., A

     Banks          56,700          40,005  
 

Huaxin Cement Co. Ltd., H

     Construction Materials          17,400          17,932  
 

Huaxin Cement Co. Ltd., A

     Construction Materials          5,400          12,687  
 

Huayu Automotive Systems Co. Ltd.

     Auto Components          10,800          25,026  
 

Hubei Biocause Pharmaceutical Co. Ltd.

     Insurance          13,500          5,738  
 

Hubei Energy Group Co. Ltd.

     Independent Power Producers & Energy Traders          24,300          14,963  
 

Hubei Xingfa Chemicals Group Co. Ltd., A

     Chemicals          2,700          12,680  

 

           
172             

Semiannual Report

  franklintempleton.com


FRANKLIN TEMPLETON ETF TRUST

SCHEDULE OF INVESTMENTS (UNAUDITED)

 

Franklin FTSE China ETF (continued)

 

           Industry        Shares        Value  
    Common Stocks (continued)                         
    China (continued)                         
 

Hubei Xinyangfeng Fertilizer Co. Ltd.

     Chemicals          5,400        $ 9,832  
 

Huizhou Desay Sv Automotive Co. Ltd.

     Household Durables          1,700          32,895  
 

Humanwell Healthcare Group Co. Ltd., A

     Pharmaceuticals          5,400          13,278  
 

Hunan Gold Corp. Ltd.

     Metals & Mining          5,400          9,097  
 

Hunan Valin Steel Co. Ltd., A

     Metals & Mining          24,300          13,907  
 

Hundsun Technologies Inc., A

     Software          6,506          30,928  
 

Huolinhe Opencut Coal Industry Corp. Ltd. of Inner Mongolia

     Oil, Gas & Consumable Fuels          5,400          9,900  
a,b  

Hygeia Healthcare Holdings Co. Ltd., 144A

     Health Care Providers & Services          16,200          91,526  
 

Iflytek Co. Ltd.

     Software          8,100          37,289  
 

Imeik Technology Development Co. Ltd., A

     Biotechnology          600          41,266  
 

Industrial and Commercial Bank of China Ltd.

     Banks          259,200          158,156  
 

Industrial and Commercial Bank of China Ltd., H

     Banks          3,861,000          1,810,020  
 

Industrial Bank Co. Ltd., A

     Banks          70,200          163,951  
b  

Industrial Securities Co. Ltd., A

     Capital Markets          31,590          24,150  
 

Ingenic Semiconductor Co. Ltd., A

     Semiconductors & Semiconductor Equipment          1,300          13,488  
 

Inmyshow Digital Technology Group Co. Ltd.

     Media          5,400          4,499  
 

Inner Mongolia BaoTou Steel Union Co. Ltd., A

     Metals & Mining          148,500          38,327  
 

Inner Mongolia ERDOS Resources Co. Ltd.

     Metals & Mining          5,400          11,491  
 

Inner Mongolia ERDOS Resources Co. Ltd., B

     Metals & Mining          18,900          35,778  
 

Inner Mongolia Junzheng Energy & Chemical Industry Group Co. Ltd., A

     Chemicals          27,000          14,884  
 

Inner Mongolia Yili Industrial Group Co. Ltd., A

     Food Products          21,600          99,923  
 

Inner Mongolia Yitai Coal Co. Ltd., B

     Oil, Gas & Consumable Fuels          51,300          77,309  
 

Inner Mongolia Yuan Xing Energy Co. Ltd.

     Chemicals          13,500          14,070  
a,b  

Innovent Biologics Inc., B, 144A

     Biotechnology          65,000          202,455  
 

Inspur Electronic Information Industry Co. Ltd.

     Technology Hardware, Storage & Peripherals          5,508          15,259  
 

Intco Medical Technology Co. Ltd.

     Health Care Equipment & Supplies          1,890          5,284  
b  

Iqiyi Inc., ADR

     Entertainment          15,633          42,365  
 

JA Solar Technology Co. Ltd., A

     Semiconductors & Semiconductor Equipment          7,480          67,192  
 

Jafron Biomedical Co. Ltd., A

     Health Care Equipment & Supplies          2,700          18,361  
 

Jason Furniture Hangzhou Co. Ltd., A

     Household Durables          3,480          19,496  
a,b  

JD Health International Inc., 144A

     Internet & Catalog Retail          36,450          209,416  
a,b  

JD Logistics Inc., 144A

     Air Freight & Logistics          81,000          142,397  
 

JD.com Inc., A

     Internet & Catalog Retail          115,910          2,932,487  
b  

Jiajiayue Group Co. Ltd., A

     Food & Staples Retailing          2,700          4,086  
 

Jiangsu Changjiang Electronics Technology Co. Ltd., A

     Semiconductors & Semiconductor Equipment          5,400          16,232  
 

Jiangsu Cnano Technology Co. Ltd., A

     Chemicals          810          13,085  
 

Jiangsu Eastern Shenghong Co. Ltd.

     Chemicals          13,500          32,987  
 

Jiangsu Expressway Co. Ltd., A

     Transportation Infrastructure          8,100          8,169  
 

Jiangsu Expressway Co. Ltd., H

     Transportation Infrastructure          64,000          48,021  
 

Jiangsu GoodWe Power Supply Technology Co. Ltd., A

     Electrical Equipment          364          14,451  
 

Jiangsu Hengli Hydraulic Co. Ltd., A

     Machinery          3,980          25,279  
 

Jiangsu Hengrui Medicine Co. Ltd., A

     Pharmaceuticals          22,740          111,959  
 

Jiangsu King’s Luck Brewery JSC Ltd

     Beverages          5,400          34,752  
 

Jiangsu Linyang Energy Co. Ltd., A

     Electrical Equipment          8,100          7,624  
 

Jiangsu Yanghe Brewery JST Co. Ltd., A

     Beverages          5,400          119,791  
 

Jiangsu Yangnong Chemical Co. Ltd., A

     Chemicals          900          12,625  
 

Jiangsu Yoke Technology Co. Ltd., A

     Chemicals          2,700          23,288  
 

Jiangsu Yuyue Medical Equipment & Supply Co. Ltd.

     Health Care Equipment & Supplies          2,700          10,911  
b  

Jiangsu Zhongnan Construction Group Co. Ltd.

     Real Estate Management & Development          16,200          5,272  
 

Jiangsu Zhongtian Technology Co. Ltd., A

     Electrical Equipment          10,800          34,040  
 

Jiangxi Copper Co. Ltd., A

     Metals & Mining          8,100          17,315  
 

Jiangxi Copper Co. Ltd., H

     Metals & Mining          54,000          62,462  
b  

Jiangxi Special Electric Motor Co. Ltd., A

     Electrical Equipment          5,400          14,869  

 

           
franklintempleton.com  

Semiannual Report

             173


FRANKLIN TEMPLETON ETF TRUST

SCHEDULE OF INVESTMENTS (UNAUDITED)

 

Franklin FTSE China ETF (continued)

 

           Industry        Shares        Value  
    Common Stocks (continued)                         
    China (continued)                         
b  

Jiangxi Zhengbang Technology Co. Ltd., A

     Food Products          10,800        $ 6,772  
 

Jilin Aodong Pharmaceutical Group Co. Ltd.

     Pharmaceuticals          5,400          10,135  
b  

Jinke Properties Group Co. Ltd.

     Real Estate Management & Development          21,600          6,332  
 

Jinke Smart Services Group Co. Ltd., H

     Real Estate Management & Development          16,200          24,558  
a,c  

Jinxin Fertility Group Ltd., 144A, Reg S

     Health Care Providers & Services          74,000          36,293  
 

JiuGui Liquor Co. Ltd., A

     Beverages          900          15,862  
a  

Jiumaojiu International Holdings Ltd., 144A

     Hotels, Restaurants & Leisure          27,000          44,301  
 

Jizhong Energy Resources Co. Ltd., A

     Oil, Gas & Consumable Fuels          10,800          10,983  
 

JoInc.are Pharmaceutical Group Industry Co. Ltd., A

     Pharmaceuticals          8,100          11,953  
 

Joinn Laboratories China Co. Ltd., A

     Life Sciences Tools & Services          1,400          11,097  
a  

Joinn Laboratories China Co. Ltd., H, 144A

     Life Sciences Tools & Services          3,780          14,422  
 

Jointown Pharmaceutical Group Co. Ltd., A

     Health Care Providers & Services          8,100          12,998  
 

Jonjee Hi-Tech Industrial And Commercial Holding Co. Ltd., A

     Food Products          2,700          12,074  
 

Joyoung Co. Ltd.

     Household Durables          2,700          5,594  
 

JOYY Inc., ADR

     Interactive Media & Services          2,295          59,670  
b  

Juneyao Airlines Co. Ltd., A

     Airlines          2,700          5,734  
b  

Kaishan Group Co. Ltd., A

     Machinery          2,700          7,041  
b  

Kanzhun Ltd., ADR

     Interactive Media & Services          6,453          108,927  
b  

KE Holdings Inc., ADR

     Real Estate Management & Development          31,428          550,619  
 

Keda Industrial Group Co. Ltd.

     Machinery          5,400          12,680  
 

Kingboard Holdings Ltd.

     Electronic Equipment, Instruments & Components          40,500          114,536  
b  

Kingdee International Software Group Co. Ltd.

     Software          126,000          165,006  
 

Kingfa Sci & Tech Co. Ltd., A

     Chemicals          10,800          14,210  
b  

Kingsoft Cloud Holdings Ltd., ADR

     IT Services          4,914          9,779  
 

Kingsoft Corp. Ltd.

     Software          45,000          119,810  
a,b  

Kuaishou Technology, B, 144A

     Interactive Media & Services          94,500          613,355  
b  

Kuang-Chi Technologies Co. Ltd.

     Auto Components          8,100          16,872  
 

Kunlun Tech Co. Ltd.

     Entertainment          5,400          9,377  
 

Kweichow Moutai Co. Ltd., A

     Beverages          4,300          1,129,412  
 

KWG Group Holdings Ltd.

     Real Estate Management & Development          67,500          8,341  
b  

Lakala Payment Co. Ltd., A

     IT Services          2,700          5,181  
 

Lao Feng Xiang Co. Ltd., B

     Textiles, Apparel & Luxury Goods          10,800          31,212  
 

Lee & Man Paper Manufacturing Ltd.

     Paper & Forest Products          54,000          17,335  
a  

Legend Holdings Corp., 144A

     Technology Hardware, Storage & Peripherals          27,000          23,458  
 

Lens Technology Co. Ltd.

     Electronic Equipment, Instruments & Components          16,200          20,974  
b  

Leo Group Co. Ltd.

     Media          29,700          7,290  
 

Lepu Medical Technology Beijing Co. Ltd.

     Health Care Equipment & Supplies          5,400          16,005  
 

Levima Advanced Materials Corp., A

     Chemicals          2,700          15,141  
 

Leyard Optoelectronic Co. Ltd.

     Electronic Equipment, Instruments & Components          8,100          6,260  
b  

Li Auto Inc., ADR

     Automobiles          25,704          591,449  
 

Li Ning Co. Ltd.

     Textiles, Apparel & Luxury Goods          111,500          853,661  
 

LianChuang Electronic Technology Co. Ltd., A

     Electronic Equipment, Instruments & Components          3,360          6,462  
 

Lianhe Chemical Technology Co. Ltd.

     Chemicals          2,700          6,779  
 

Liaoning Port Co. Ltd., A

     Transportation Infrastructure          62,100          13,937  
 

Livzon Pharmaceutical Group Inc.

     Pharmaceuticals          2,700          11,400  
 

Livzon Pharmaceutical Group Inc., H

     Pharmaceuticals          8,100          20,307  
 

Lomon Billions Group Co. Ltd.

     Chemicals          8,100          17,895  
a,c  

Longfor Group Holdings Ltd., 144A, Reg S

     Real Estate Management & Development          90,910          261,152  
 

LONGi Green Energy Technology Co. Ltd., A

     Semiconductors & Semiconductor Equipment          27,000          181,448  
 

Longshine Technology Group Co. Ltd., A

     Software          2,700          8,120  
 

Luenmei Quantum Co. Ltd., A

     Water Utilities          5,400          5,363  
 

Lufax Holding Ltd., ADR

     Consumer Finance          33,723          85,656  
 

Luolai Lifestyle Technology Co. Ltd., A

     Textiles, Apparel & Luxury Goods          2,700          3,867  
 

Luxi Chemical Group Co. Ltd., A

     Chemicals          5,400          9,817  
 

Luxshare Precision Industry Co. Ltd., A

     Electronic Equipment, Instruments & Components          24,399          100,619  
a,b  

Luye Pharma Group Ltd., 144A

     Pharmaceuticals          94,500          26,244  

 

           
174             

Semiannual Report

  franklintempleton.com


FRANKLIN TEMPLETON ETF TRUST

SCHEDULE OF INVESTMENTS (UNAUDITED)

 

Franklin FTSE China ETF (continued)

 

           Industry        Shares        Value  
    Common Stocks (continued)                         
    China (continued)                         
 

Luzhou Laojiao Co. Ltd., A

     Beverages          5,400        $ 174,714  
 

Maanshan Iron & Steel Co. Ltd., A

     Metals & Mining          21,600          8,150  
 

Maccura Biotechnology Co. Ltd.

     Life Sciences Tools & Services          2,700          6,344  
 

Mango Excellent Media Co. Ltd.

     Entertainment          8,130          28,430  
 

Maxscend Microelectronics Co. Ltd., A

     Electronic Equipment, Instruments & Components          1,632          20,239  
b  

Meinian Onehealth Healthcare Holdings Co. Ltd.

     Health Care Providers & Services          13,500          8,086  
a,b  

Meituan Dianping, B, 144A

     Internet & Catalog Retail          201,615          4,253,232  
 

Metallurgical Corp. of China Ltd.

     Construction & Engineering          135,000          22,013  
 

Metallurgical Corp. of China Ltd., A

     Construction & Engineering          59,400          24,913  
b  

Microport Scientific Corp.

     Health Care Equipment & Supplies          24,300          41,852  
 

Ming Yang Smart Energy Group Ltd.

     Electrical Equipment          8,100          27,416  
 

Ming Yuan Cloud Group Holdings Ltd.

     Software          27,000          15,994  
 

MINISO Group Holding Ltd., ADR

     Multiline Retail          3,834          21,049  
 

Minth Group Ltd.

     Auto Components          34,000          75,277  
 

Montage Technology Co. Ltd.

     Semiconductors & Semiconductor Equipment          4,025          29,545  
 

Muyuan Foods Co. Ltd.

     Food Products          18,360          140,408  
 

NanJi E-Commerce Co. Ltd.

     Media          10,800          6,741  
 

Nanjing Hanrui Cobalt Co. Ltd., A

     Metals & Mining          800          4,921  
 

Nanjing Iron & Steel Co. Ltd., A

     Metals & Mining          21,600          8,271  
 

Nanjing King-Friend Biochemical Pharmaceutical Co. Ltd.

     Pharmaceuticals          4,845          11,309  
 

Nanjing Securities Co. Ltd., A

     Capital Markets          13,500          14,448  
 

Nanyang Topsec Technologies Group Inc., A

     Electrical Equipment          5,400          6,969  
 

Nari Technology Development Co. Ltd., A

     Electrical Equipment          22,640          78,980  
b  

National Silicon Industry Group Co. Ltd., A

     Semiconductors & Semiconductor Equipment          6,399          16,022  
 

NAURA Technology Group Co. Ltd., A

     Electronic Equipment, Instruments & Components          1,800          70,292  
 

NavInfo Co. Ltd.

     Household Durables          8,100          13,112  
 

NetEase Inc.

     Entertainment          89,100          1,345,030  
 

New China Life Insurance Co. Ltd., A

     Insurance          8,100          30,609  
 

New China Life Insurance Co. Ltd., H

     Insurance          45,900          87,591  
b  

New Hope Liuhe Co. Ltd.

     Food Products          16,200          31,586  
b  

New Oriental Education & Technology Group Inc., Sponsored ADR

     Diversified Consumer Services          6,868          164,626  
 

Newland Digital Technology Co. Ltd.

     Software          2,700          4,586  
 

Nine Dragons Paper Holdings Ltd.

     Paper & Forest Products          77,000          47,868  
 

Ninestar Corp.

     Technology Hardware, Storage & Peripherals          5,400          32,684  
 

Ningbo Deye Technology Co. Ltd., A

     Machinery          700          41,260  
b  

Ningbo Joyson Electronic Corp.

     Auto Components          5,400          10,014  
 

Ningbo Orient Wires & Cables Co. Ltd., A

     Electrical Equipment          2,700          26,409  
 

Ningbo Ronbay New Energy Technology Co. Ltd.

     Electrical Equipment          1,586          18,721  
 

Ningbo Sanxing Medical Electric Co. Ltd., A

     Electrical Equipment          5,400          8,665  
 

Ningbo Shanshan Co. Ltd., A

     Chemicals          8,100          23,689  
 

Ningbo Tuopu Group Co. Ltd., A

     Auto Components          2,700          27,950  
 

Ningbo Zhoushan Port Co. Ltd., A

     Transportation Infrastructure          32,400          16,497  
 

Ningxia Baofeng Energy Group Co. Ltd., A

     Chemicals          10,800          20,179  
b  

NIO Inc., ADR

     Automobiles          64,881          1,023,173  
a  

Nongfu Spring Co. Ltd., H, 144A

     Beverages          86,400          501,347  
 

North Huajin Chemical Industries Co. Ltd.

     Chemicals          5,400          5,393  
 

North Industries Group Red Arrow Co. Ltd., A

     Machinery          2,700          8,465  
 

Northeast Securities Co. Ltd.

     Capital Markets          8,100          7,328  
 

NSFOCUS Information Technology Co. Ltd.

     Software          2,700          3,087  
b  

Offcn Education Technology Co. Ltd., A

     Diversified Consumer Services          8,100          4,602  
 

Offshore Oil Engineering Co. Ltd., A

     Energy Equipment & Services          13,500          8,427  
b  

OFILM Group Co. Ltd.

     Electronic Equipment, Instruments & Components          10,800          7,984  
 

Oppein Home Group Inc., A

     Household Durables          900          14,342  
 

ORG Technology Co. Ltd.

     Containers & Packaging          8,100          5,261  
a  

Orient Securities Co. Ltd. of China, 144A

     Capital Markets          43,200          16,950  
 

Oriental Energy Co. Ltd., A

     Oil, Gas & Consumable Fuels          5,400          5,772  

 

           
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Semiannual Report

             175


FRANKLIN TEMPLETON ETF TRUST

SCHEDULE OF INVESTMENTS (UNAUDITED)

 

Franklin FTSE China ETF (continued)

 

           Industry        Shares        Value  
    Common Stocks (continued)                         
    China (continued)                         
b  

Ourpalm Co. Ltd.

     Entertainment          13,500        $ 5,283  
 

Ovctek China Inc., A

     Health Care Equipment & Supplies          3,420          19,812  
b  

Pangang Group Vanadium Titanium & Resources Co. Ltd., A

     Metals & Mining          29,700          19,247  
 

People.cn Co. Ltd.

     Media          5,400          7,817  
 

People’s Insurance Co. Group of China Ltd., A

     Insurance          35,100          24,666  
 

Perfect World Co. Ltd.

     Entertainment          5,400          9,408  
 

PetroChina Co. Ltd.

     Oil, Gas & Consumable Fuels          83,700          60,229  
 

PetroChina Co. Ltd., H

     Oil, Gas & Consumable Fuels          1,026,000          420,861  
 

Pharmaron Beijing Co. Ltd., A

     Life Sciences Tools & Services          1,500          11,372  
a,c  

Pharmaron Beijing Co. Ltd., H, 144A, Reg S

     Life Sciences Tools & Services          9,400          45,683  
 

PICC Property and Casualty Co. Ltd., H

     Insurance          324,000          335,974  
b  

Pinduoduo Inc., ADR

     Internet & Direct Marketing Retail          18,225          1,140,520  
 

Ping An Bank Co. Ltd., A

     Banks          67,500          112,103  
a,b,c  

Ping An Healthcare and Technology Co. Ltd., 144A, Reg S

     Health Care Technology          18,900          35,634  
 

Ping An Insurance Group Co. of China Ltd., A

     Insurance          37,800          220,464  
 

Ping An Insurance Group Co. of China Ltd., H

     Insurance          297,000          1,483,127  
 

Pingdingshan Tianan Coal Mining Co. Ltd., A

     Oil, Gas & Consumable Fuels          8,100          15,497  
 

Poly Developments and Holdings Group Co. Ltd., A

     Real Estate Management & Development          40,500          102,256  
 

Poly Property Services Co. Ltd., H

     Real Estate Management & Development          6,400          33,957  
a  

Pop Mart International Group Ltd., 144A

     Specialty Retail          32,400          59,600  
 

Porton Pharma Solutions Ltd., A

     Pharmaceuticals          2,700          17,649  
a  

Postal Savings Bank of China Co. Ltd., 144A

     Banks          459,000          270,726  
 

Postal Savings Bank of China Co. Ltd.

     Banks          75,600          47,295  
 

Power Construction Corp. of China Ltd.

     Construction & Engineering          37,800          36,956  
 

Pylon Technologies Co. Ltd., A

     Electrical Equipment          459          25,753  
 

Qingdao TGOOD Electric Co. Ltd.

     Electrical Equipment          2,700          5,510  
b  

Qinghai Salt Lake Industry Co. Ltd., A

     Chemicals          18,900          63,308  
 

Raytron Technology Co. Ltd., A

     Electronic Equipment, Instruments & Components          1,348          7,189  
a  

Red Star Macalline Group Corp. Ltd., 144A

     Real Estate Management & Development          33,600          9,203  
a,b  

Remegen Co. Ltd., H, 144A

     Biotechnology          7,500          36,354  
b  

RiseSun Real Estate Development Co. Ltd.

     Real Estate Management & Development          13,500          4,450  
b  

RLX Technology Inc., ADR

     Tobacco          36,450          38,272  
 

Rongsheng Petro Chemical Co. Ltd.

     Chemicals          10,800          20,951  
 

SAIC Motor Corp Ltd.

     Automobiles          32,400          64,990  
 

Sailun Group Co. Ltd., A

     Auto Components          10,800          15,331  
 

Sangfor Technologies Inc.

     Software          300          4,208  
 

Sansteel Minguang Co. Ltd.

     Metals & Mining          8,100          5,556  
 

Sany Heavy Industry Co. Ltd., A

     Machinery          29,700          57,824  
 

SDIC Power Holdings Co. Ltd., A

     Independent Power Producers & Energy Traders          27,000          40,675  
 

Sealand Securities Co. Ltd.

     Capital Markets          22,640          10,257  
b  

Seazen Group Ltd.

     Real Estate Management & Development          108,000          25,315  
b  

Seazen Holdings Co. Ltd., A

     Real Estate Management & Development          8,100          19,860  
 

SF Holding Co. Ltd.

     Air Freight & Logistics          16,200          107,301  
 

SG Micro Corp., A

     Semiconductors & Semiconductor Equipment          1,275          25,197  
 

Shaanxi Coal Industry Co. Ltd.

     Oil, Gas & Consumable Fuels          32,400          103,483  
 

Shaanxi International Trust Co. Ltd.

     Capital Markets          13,500          5,473  
b  

Shandong Chenming Paper Holdings Ltd., A

     Paper & Forest Products          5,400          3,545  
b  

Shandong Chenming Paper Holdings Ltd., B

     Paper & Forest Products          32,400          9,617  
b  

Shandong Chenming Paper Holdings Ltd., H

     Paper & Forest Products          27,000          7,464  
 

Shandong Denghai Seeds Co. Ltd.

     Food Products          2,700          7,230  
a  

Shandong Gold Mining Co. Ltd., 144A

     Metals & Mining          34,250          54,452  
 

Shandong Gold Mining Co. Ltd., A

     Metals & Mining          11,484          27,594  
 

Shandong Himile Mechanical Science & Technology Co. Ltd.

     Machinery          2,700          8,749  
 

Shandong Hi-speed Co. Ltd., A

     Transportation Infrastructure          10,800          8,226  

 

           
176             

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FRANKLIN TEMPLETON ETF TRUST

SCHEDULE OF INVESTMENTS (UNAUDITED)

 

Franklin FTSE China ETF (continued)

 

           Industry        Shares        Value  
    Common Stocks (continued)                         
    China (continued)                         
 

Shandong Hualu Hengsheng Chemical Co. Ltd., A

     Chemicals          8,180        $ 33,470  
 

Shandong Humon Smelting Co. Ltd.

     Metals & Mining          2,700          3,443  
 

Shandong Linglong Tyre Co. Ltd., A

     Auto Components          2,700          6,893  
 

Shandong Nanshan Aluminum Co. Ltd., A

     Metals & Mining          40,500          17,100  
 

Shandong Pharmaceutical Glass Co. Ltd., A

     Health Care Equipment & Supplies          2,700          10,972  
 

Shandong Sun Paper Industry JSC Ltd., A

     Paper & Forest Products          8,100          13,009  
 

Shandong Weigao Group Medical Polymer Co. Ltd., H

     Health Care Equipment & Supplies          112,900          151,878  
 

Shanghai AJ Group Co. Ltd., A

     Diversified Financial Services          5,400          4,022  
 

Shanghai Bailian Group Co. Ltd., B

     Food & Staples Retailing          10,800          7,236  
 

Shanghai Bairun Investment Holding Group Co. Ltd.

     Beverages          3,740          14,133  
 

Shanghai Baosight Software Co. Ltd., A

     Software          3,080          15,894  
 

Shanghai Baosight Software Co. Ltd., B

     Software          22,990          66,901  
 

Shanghai Construction Group Co. Ltd., A

     Construction & Engineering          24,300          8,624  
b  

Shanghai Electric Group Co. Ltd., A

     Electrical Equipment          32,400          17,588  
b  

Shanghai Electric Group Co. Ltd., H

     Electrical Equipment          108,000          21,463  
b  

Shanghai Electric Power Co. Ltd., A

     Independent Power Producers & Energy Traders          10,800          13,619  
 

Shanghai Environment Group Co. Ltd., A

     Commercial Services & Supplies          5,400          6,741  
 

Shanghai Fosun Pharmaceutical Group Co. Ltd., A

     Pharmaceuticals          5,400          22,390  
 

Shanghai Fosun Pharmaceutical Group Co. Ltd., H

     Pharmaceuticals          27,000          65,489  
 

Shanghai Friendess Electronic Technology Corp. Ltd., A

     Electronic Equipment, Instruments & Components          420          11,164  
 

Shanghai Fudan Microelectronics Group Co. Ltd., A

     Semiconductors & Semiconductor Equipment          999          10,546  
 

Shanghai Fudan Microelectronics Group Co. Ltd., H

     Semiconductors & Semiconductor Equipment          14,000          64,026  
 

Shanghai Huayi Group Co. Ltd., B

     Chemicals          16,200          9,542  
b  

Shanghai International Airport Co. Ltd., A

     Transportation Infrastructure          7,100          57,544  
 

Shanghai International Port Group Co. Ltd., A

     Transportation Infrastructure          37,800          29,480  
 

Shanghai Jinjiang International Hotels Co. Ltd.

     Hotels, Restaurants & Leisure          8,100          15,042  
 

Shanghai Jinjiang International Hotels Co. Ltd., A

     Hotels, Restaurants & Leisure          2,700          21,834  
 

Shanghai Jinqiao Export Processing Zone Development Co. Ltd., A

     Real Estate Management & Development          2,700          4,030  
 

Shanghai Jinqiao Export Processing Zone Development Co. Ltd., B

     Real Estate Management & Development          16,200          14,418  
b  

Shanghai Junshi Biosciences Co. Ltd., A

     Biotechnology          866          6,133  
a,b  

Shanghai Junshi Biosciences Co. Ltd., H, 144A

     Biotechnology          10,800          34,327  
 

Shanghai Lingang Holdings Corp. Ltd.

     Real Estate Management & Development          6,200          10,279  
 

Shanghai Lujiazui Finance & Trade Zone Development Co. Ltd., A

     Real Estate Management & Development          5,400          7,294  
 

Shanghai Lujiazui Finance & Trade Zone Development Co. Ltd., B

     Real Estate Management & Development          56,700          44,396  
 

Shanghai M&G Stationery Inc., A

     Commercial Services & Supplies          2,700          17,077  
 

Shanghai Mechanical and Electrical Industry Co. Ltd., B

     Machinery          10,800          10,994  
 

Shanghai Pharmaceuticals Holding Co. Ltd., A

     Health Care Providers & Services          8,100          18,758  
 

Shanghai Pharmaceuticals Holding Co. Ltd., H

     Health Care Providers & Services          43,200          59,655  
 

Shanghai Pudong Development Bank Co. Ltd., A .

     Banks          97,215          95,999  
 

Shanghai Putailai New Energy Technology Co. Ltd., A

     Chemicals          5,520          43,205  
 

Shanghai RAAS Blood Products Co. Ltd., A

     Biotechnology          24,300          18,168  
 

Shanghai Rural Commercial Bank Co. Ltd., A

     Banks          10,800          8,044  
 

Shanghai Shibei Hi-Tech Co. Ltd., B

     Real Estate Management & Development          29,700          7,276  

 

           
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             177


FRANKLIN TEMPLETON ETF TRUST

SCHEDULE OF INVESTMENTS (UNAUDITED)

 

Franklin FTSE China ETF (continued)

 

           Industry        Shares        Value  
    Common Stocks (continued)                         
    China (continued)                         
b  

Shanghai Shimao Co. Ltd., A

     Real Estate Management & Development          10,800        $ 3,575  
 

Shanghai Tunnel Engineering Co. Ltd., A

     Construction & Engineering          13,500          9,336  
 

Shanghai Waigaoqiao Free Trade Zone Group Co. Ltd.

     Trading Companies & Distributors          10,800          9,256  
 

Shanghai Yuyuan Tourist Mart Group Co. Ltd., A .

     Specialty Retail          16,200          15,157  
 

Shanghai Zhangjiang High-Tech Park Development Co. Ltd., A

     Real Estate Management & Development          5,400          7,870  
 

Shanghai Zhenhua Port Machinery Co. Ltd., B

     Machinery          59,400          14,375  
 

Shanxi Lu’an Environmental Energy Development Co. Ltd., A

     Oil, Gas & Consumable Fuels          10,800          25,572  
 

Shanxi Meijin Energy Co. Ltd., A

     Metals & Mining          16,200          21,837  
 

Shanxi Securities Co. Ltd.

     Capital Markets          13,700          9,724  
 

Shanxi Taigang Stainless Steel Co. Ltd., A

     Metals & Mining          21,600          13,543  
 

Shanxi Xinghuacun Fen Wine Factory Co. Ltd., A .

     Beverages          4,220          179,291  
 

Shanxi Xishan Coal & Electricity Power Co. Ltd.

     Oil, Gas & Consumable Fuels          13,500          28,367  
 

Shanying International Holding Co. Ltd., A

     Paper & Forest Products          16,200          5,408  
 

Shenghe Resources Holding Co. Ltd., A

     Metals & Mining          5,400          11,468  
 

Shengyi Technology Co. Ltd., A

     Electronic Equipment, Instruments & Components          8,100          14,884  
 

Shennan Circuits Co. Ltd., A

     Electronic Equipment, Instruments & Components          600          6,361  
 

Shenwan Hongyuan Group Co. Ltd.

     Capital Markets          72,900          39,471  
a,c  

Shenwan Hongyuan Group Co. Ltd., 144A, Reg S

     Capital Markets          86,400          14,088  
 

Shenzhen Accord Pharmaceutical Co. Ltd., B

     Health Care Providers & Services          2,700          5,565  
 

Shenzhen Agricultural Products Group Co. Ltd.

     Food & Staples Retailing          5,400          3,931  
 

Shenzhen Airport Co. Ltd.

     Transportation Infrastructure          10,800          10,180  
 

Shenzhen Capchem Technology Co. Ltd., A

     Chemicals          2,080          12,219  
 

Shenzhen Dynanonic Co. Ltd., A

     Chemicals          540          21,345  
 

Shenzhen Energy Group Co. Ltd.

     Independent Power Producers & Energy Traders          16,200          12,748  
b  

Shenzhen Everwin Precision Technology Co. Ltd.

     Electronic Equipment, Instruments & Components          5,400          8,120  
 

Shenzhen Expressway Co. Ltd., H

     Transportation Infrastructure          24,000          17,549  
 

Shenzhen Gas Corporation Ltd., A

     Gas Utilities          8,800          8,394  
 

Shenzhen Hepalink Pharmaceutical Group Co. Ltd., A

     Pharmaceuticals          2,700          5,696  
 

Shenzhen Huaqiang Industry Co. Ltd.

     Electronic Equipment, Instruments & Components          2,700          4,518  
b  

Shenzhen Infogem Technologies Co. Ltd., A

     Software          2,700          3,280  
 

Shenzhen Inovance Technology Co. Ltd.

     Machinery          9,050          73,005  
 

Shenzhen International Holdings Ltd.

     Transportation Infrastructure          67,500          51,593  
 

Shenzhen Investment Ltd.

     Real Estate Management & Development          108,000          16,372  
 

Shenzhen Jinjia Group Co. Ltd.

     Containers & Packaging          5,400          6,423  
 

Shenzhen Kaifa Technology Co. Ltd.

     Technology Hardware, Storage & Peripherals          5,400          7,953  
 

Shenzhen Kangtai Biological Products Co. Ltd.

     Biotechnology          4,260          18,112  
 

Shenzhen Kedali Industry Co. Ltd., A

     Auto Components          800          10,794  
 

Shenzhen Kingdom Sci-Tech Co. Ltd., A

     Software          2,700          3,727  
 

Shenzhen Mindray Bio-Medical Electronics Co. Ltd., A

     Health Care Equipment & Supplies          4,300          180,344  
b  

Shenzhen MTC Co. Ltd.

     Household Durables          18,900          8,643  
b  

Shenzhen Neptunus Bioengineering Co. Ltd.

     Health Care Providers & Services          10,800          4,893  
 

Shenzhen Overseas Chinese Town Co. Ltd.

     Hotels, Restaurants & Leisure          29,700          20,038  
 

Shenzhen Salubris Pharmaceuticals Co. Ltd.

     Pharmaceuticals          2,700          9,252  
 

Shenzhen SC New Energy Technology Corp., A

     Semiconductors & Semiconductor Equipment          1,100          17,778  
 

Shenzhen Senior Technology Material Co. Ltd., A .

     Chemicals          5,400          15,164  
 

Shenzhen Sunway Communication Co. Ltd.

     Communications Equipment          2,700          5,359  
 

Shenzhen Transsion Holdings Co. Ltd., A

     Technology Hardware, Storage & Peripherals          2,912          23,756  
 

Shenzhen Yan Tian Port Holding Co. Ltd., A

     Transportation Infrastructure          8,100          5,795  
 

Shenzhen YUTO Packaging Technology Co. Ltd.

     Containers & Packaging          2,700          11,400  
 

Shenzhen Zhongjin Lingnan Nonfemet Co. Ltd., A

     Metals & Mining          13,500          7,802  
 

Shenzhou International Group Holdings Ltd.

     Textiles, Apparel & Luxury Goods          37,800          295,422  

 

           
178             

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FRANKLIN TEMPLETON ETF TRUST

SCHEDULE OF INVESTMENTS (UNAUDITED)

 

Franklin FTSE China ETF (continued)

 

           Industry        Shares        Value  
    Common Stocks (continued)                         
    China (continued)                         
b  

Shijiazhuang Changshan BeiMing Technology Co. Ltd.

     Textiles, Apparel & Luxury Goods          5,400        $ 4,136  
 

Shijiazhuang Yiling Pharmaceutical Co. Ltd.

     Pharmaceuticals          6,080          18,515  
a,b  

Shimao Services Holdings Ltd., Z, 144A

     Real Estate Management & Development          27,000          5,744  
 

Shui On Land Ltd.

     Real Estate Management & Development          162,000          16,510  
b  

Siasun Robot & Automation Co. Ltd.

     Machinery          5,400          6,613  
 

Sichuan Chuantou Energy Co Ltd., A

     Independent Power Producers & Energy Traders          16,200          27,336  
 

Sichuan Hebang Biotechnology Co. Ltd., A

     Chemicals          32,400          14,634  
 

Sichuan Kelun Pharmaceutical Co. Ltd.

     Pharmaceuticals          5,400          16,694  
b  

Sichuan New Energy Power Co. Ltd.

     Trading Companies & Distributors          5,400          14,263  
 

Sichuan Road & Bridge Co. Ltd., A

     Construction & Engineering          16,200          23,224  
 

Sichuan Swellfun Co. Ltd., A

     Beverages          1,600          14,076  
 

Sichuan Yahua Industrial Group Co. Ltd., A

     Chemicals          2,700          9,627  
 

Sieyuan Electric Co. Ltd.

     Electrical Equipment          2,700          14,475  
 

Sinolink Securities Co. Ltd., A

     Capital Markets          10,800          11,574  
 

Sinoma International Engineering Co.

     Construction & Engineering          8,100          9,328  
 

Sinoma Science & Technology Co. Ltd.

     Chemicals          5,400          15,088  
 

Sino-Ocean Land Holdings Ltd.

     Real Estate Management & Development          108,000          11,282  
 

Sinopec Engineering Group Co. Ltd.

     Construction & Engineering          67,500          27,086  
b  

Sinopec Oilfield Service Corp.

     Energy Equipment & Services          162,000          9,390  
b  

Sinopec Oilfield Service Corp., A

     Energy Equipment & Services          24,300          6,272  
 

Sinopec Shanghai Petrochemical Co. Ltd., A

     Chemicals          21,600          9,029  
 

Sinopec Shanghai Petrochemical Co. Ltd., H

     Chemicals          162,000          21,256  
 

Sinopharm Group Co. Ltd., H

     Health Care Providers & Services          64,800          129,932  
 

Sinotrans Ltd., A

     Air Freight & Logistics          13,500          6,722  
 

Sinotrans Ltd., H

     Air Freight & Logistics          108,000          27,241  
 

Sinotruk Hong Kong Ltd.

     Machinery          27,000          22,598  
b  

Skshu Paint Co. Ltd., A

     Chemicals          980          12,040  
 

Skyworth Digital Co. Ltd., A

     Communications Equipment          2,700          6,052  
a  

Smoore International Holdings Ltd., 144A

     Tobacco          87,230          104,344  
 

Songcheng Performance Development Co. Ltd.

     Hotels, Restaurants & Leisure          8,760          14,745  
 

SooChow Securities Co. Ltd., A

     Capital Markets          19,104          16,507  
 

Southwest Securities Co. Ltd., A

     Capital Markets          24,300          12,509  
 

StarPower Semiconductor Ltd., A

     Semiconductors & Semiconductor Equipment          500          22,724  
b  

STO Express Co. Ltd.

     Air Freight & Logistics          5,400          9,658  
 

Sun Art Retail Group Ltd.

     Food & Staples Retailing          94,500          20,224  
 

Sunac China Holdings Ltd.

     Real Estate Management & Development          160,000          21,689  
a  

Sunac Services Holdings Ltd., 144A

     Real Estate Management & Development          28,898          7,252  
 

Sungrow Power Supply Co. Ltd.

     Electrical Equipment          5,400          83,790  
 

Suning Universal Co. Ltd.

     Real Estate Management & Development          13,500          5,832  
 

Sunny Optical Technology Group Co. Ltd.

     Electronic Equipment, Instruments & Components          32,400          310,177  
 

Sunwoda Electronic Co. Ltd., A

     Electrical Equipment          5,400          17,634  
 

Suofeiya Home Collection Co. Ltd.

     Household Durables          2,700          6,359  
 

Suzhou Anjie Technology Co. Ltd., A

     Electrical Equipment          2,700          4,704  
 

Suzhou Dongshan Precision Manufacturing Co. Ltd., A

     Electronic Equipment, Instruments & Components          5,400          17,535  
b  

Suzhou Gold Mantis Construction Decoration Co. Ltd.

     Construction & Engineering          8,100          5,136  
 

Suzhou Maxwell Technologies Co. Ltd.

     Electrical Equipment          540          36,658  
 

Suzhou TA&A Ultra Clean Technology Co.
Ltd., A .

     Chemicals          2,700          25,098  
 

Taiji Computer Corp. Ltd.

     IT Services          2,700          6,385  
b  

TAL Education Group, ADR

     Diversified Consumer Services          21,546          106,437  
 

Tangshan Jidong Cement Co. Ltd.

     Construction Materials          10,800          12,665  
 

TangShan Port Group Co. Ltd., A

     Transportation Infrastructure          18,900          6,840  
 

Tangshan Sanyou Chemical Industries Co. Ltd., A

     Chemicals          8,300          7,137  
 

TBEA Co. Ltd., A

     Electrical Equipment          13,500          41,035  
 

TCL Corp.

     Household Durables          51,300          26,121  

 

           
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             179


FRANKLIN TEMPLETON ETF TRUST

SCHEDULE OF INVESTMENTS (UNAUDITED)

 

Franklin FTSE China ETF (continued)

 

           Industry        Shares        Value  
    Common Stocks (continued)                         
    China (continued)                         
 

Tencent Holdings Ltd.

     Interactive Media & Services          294,626        $ 9,998,645  
b  

Tencent Music Entertainment Group, ADR

     Entertainment          29,484          119,705  
 

The People’s Insurance Co. Group of China Ltd., H

     Insurance          405,000          117,632  
 

Thunder Software Technology Co. Ltd.

     Software          1,200          17,772  
 

Tian Di Science & Technology Co. Ltd., A

     Machinery          13,500          9,033  
 

Tianjin Chase Sun Pharmaceutical Co. Ltd.

     Pharmaceuticals          10,800          7,968  
 

Tianjin Guangyu Development Co. Ltd., A

     Real Estate Management & Development          5,400          9,408  
 

Tianjin Zhonghuan Semiconductor Co. Ltd.

     Semiconductors & Semiconductor Equipment          10,800          67,807  
 

Tianma Microelectronics Co. Ltd.

     Electronic Equipment, Instruments & Components          8,100          9,669  
b  

Tianqi Lithium Corp., A

     Chemicals          5,400          76,048  
 

Tianshan Aluminum Group Co. Ltd., A

     Machinery          8,100          8,135  
 

Tianshui Huatian Technology Co. Ltd., A

     Semiconductors & Semiconductor Equipment          10,800          12,271  
b  

Tibet Summit Resources Co. Ltd., A

     Metals & Mining          2,700          8,446  
 

Tingyi Cayman Islands Holding Corp.

     Food Products          92,000          158,687  
 

Titan Wind Energy Suzhou Co. Ltd., A

     Electrical Equipment          5,400          9,582  
b,c  

Tongcheng-Elong Holdings Ltd., Reg S

     Internet & Catalog Retail          57,600          113,000  
b  

TongFu Microelectronics Co. Ltd., A

     Semiconductors & Semiconductor Equipment          5,400          11,422  
 

Tongkun Group Co. Ltd., A

     Chemicals          8,100          15,338  
 

Tongling Nonferrous Metals Group Co. Ltd.

     Metals & Mining          37,800          13,839  
 

Tongwei Co. Ltd., A

     Food Products          16,200          106,710  
b  

Topchoice Medical Investment Corp., A

     Health Care Providers & Services          1,200          21,545  
a  

Topsports International Holdings Ltd., 144A

     Specialty Retail          81,000          57,062  
 

Towngas China Co. Ltd.

     Gas Utilities          54,000          20,706  
 

TravelSky Technology Ltd., H

     IT Services          54,000          82,686  
 

Trina Solar Co. Ltd., A

     Semiconductors & Semiconductor Equipment          7,479          67,256  
b  

Trip.com Group Ltd., ADR

     Internet & Catalog Retail          26,109          713,037  
 

Tsingtao Brewery Co. Ltd., A

     Beverages          2,700          40,221  
 

Tsingtao Brewery Co. Ltd., H

     Beverages          29,492          279,708  
b  

Tuya Inc., ADR

     Software          6,021          5,598  
 

Unigroup Guoxin Microelectronics Co. Ltd.

     Electronic Equipment, Instruments & Components          2,799          56,536  
 

Uni-President China Holdings Ltd.

     Food Products          54,000          45,333  
 

Unisplendour Corp. Ltd.

     Electronic Equipment, Instruments & Components          5,400          12,013  
 

Universal Scientific Industrial Shanghai Co. Ltd., A

     Electronic Equipment, Instruments & Components          2,700          5,711  
 

Valiant Co. Ltd., A

     Chemicals          2,700          5,522  
b  

Vipshop Holdings Ltd., ADR

     Internet & Catalog Retail          19,980          168,032  
 

Visual China Group Co. Ltd., A

     Internet & Catalog Retail          2,700          3,749  
 

Walvax Biotechnology Co. Ltd.

     Biotechnology          5,400          28,102  
b  

Wanda Film Holding Co. Ltd., A

     Entertainment          8,100          11,850  
 

Wangsu Science & Technology Co. Ltd.

     IT Services          8,100          5,158  
 

Wanhua Chemical Group Co. Ltd., A

     Chemicals          10,800          139,523  
 

Wanxiang Qianchao Co. Ltd.

     Auto Components          13,500          9,317  
b  

Weibo Corp., ADR

     Interactive Media & Services          3,564          60,944  
 

Weichai Power Co. Ltd., A

     Machinery          24,300          32,790  
 

Weichai Power Co. Ltd., H

     Machinery          81,000          76,874  
 

Weifu High-Technology Co. Ltd., B

     Auto Components          8,100          13,879  
 

Weifu High-Technology Group Co. Ltd., A

     Auto Components          2,700          6,533  
 

Weihai Guangwei Composites Co. Ltd., A

     Chemicals          2,700          31,400  
b  

Wens Foodstuffs Group Co. Ltd.

     Food Products          5,400          15,535  
 

Western Mining Co. Ltd., A

     Metals & Mining          8,100          10,612  
 

Western Securities Co. Ltd.

     Capital Markets          16,200          13,248  
 

Western Superconducting Technologies Co. Ltd., A

     Metals & Mining          1,488          22,310  
 

Westone Information Industry Inc.

     Electronic Equipment, Instruments & Components          2,700          10,415  
 

Will Semiconductor Ltd., A

     Semiconductors & Semiconductor Equipment          2,700          30,347  
 

Wingtech Technology Co. Ltd., A

     Electronic Equipment, Instruments & Components          5,400          36,108  
 

Winning Health Technology Group Co. Ltd.

     Health Care Technology          9,000          8,887  

 

           
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FRANKLIN TEMPLETON ETF TRUST

SCHEDULE OF INVESTMENTS (UNAUDITED)

 

Franklin FTSE China ETF (continued)

 

           Industry        Shares        Value  
    Common Stocks (continued)                         
    China (continued)                         
 

Wolong Electric Group Co. Ltd., A

     Electrical Equipment          5,400        $ 8,786  
 

Wuchan Zhongda Group Co. Ltd., A

     Distributors          21,600          12,483  
 

Wuhan Guide Infrared Co. Ltd.

     Electronic Equipment, Instruments & Components          10,873          17,722  
 

Wuhu Sanqi Interactive Entertainment

            
 

NetworkTechnology Group Co. Ltd.

     Entertainment          5,400          13,195  
 

Wuliangye Yibin Co. Ltd., A

     Beverages          13,400          318,086  
 

WUS Printed Circuit Kunshan Co. Ltd.

     Electronic Equipment, Instruments & Components          5,440          7,600  
a  

WuXi AppTec Co. Ltd., 144A

     Life Sciences Tools & Services          16,820          135,954  
 

WuXi AppTec Co. Ltd., A

     Life Sciences Tools & Services          8,960          90,101  
a,b  

WuXi Biologics (Cayman) Inc., 144A

     Life Sciences Tools & Services          176,284          1,064,455  
 

Wuxi Shangji Automation Co. Ltd., A

     Machinery          1,260          23,842  
b  

XCMG Construction Machinery Co. Ltd.

     Machinery          27,000          16,967  
 

Xiamen C & D Inc., A

     Trading Companies & Distributors          10,800          20,981  
 

Xiamen Faratronic Co. Ltd., A

     Electronic Equipment, Instruments & Components          800          18,030  
 

Xiamen ITG Group Corp. Ltd., A

     Trading Companies & Distributors          8,100          7,249  
 

Xiamen Tungsten Co. Ltd., A

     Metals & Mining          5,400          17,141  
 

Xiangcai Co. Ltd., A

     Real Estate Management & Development          5,400          4,795  
a,b  

Xiaomi Corp., B, 144A

     Technology Hardware, Storage & Peripherals          718,200          819,765  
 

Xinfengming Group Co. Ltd., A

     Chemicals          2,700          3,409  
 

Xinhua Winshare Publishing and Media Co. Ltd., H

     Distributors          27,000          17,163  
 

Xinjiang Goldwind Science & Technology Co. Ltd.

     Electrical Equipment          13,500          21,474  
 

Xinjiang Goldwind Science & Technology Co. Ltd., H

     Electrical Equipment          32,400          37,601  
 

Xinjiang Tianshan Cement Co. Ltd., A

     Construction Materials          8,100          10,101  
 

Xinjiang Zhongtai Chemical Co. Ltd., A

     Chemicals          10,800          10,104  
 

Xinxing Ductile Iron Pipes Co. Ltd.

     Metals & Mining          13,500          6,779  
 

Xinyi Solar Holdings Ltd.

     Semiconductors & Semiconductor Equipment          216,000          228,660  
b  

XPeng Inc., ADR

     Automobiles          26,325          314,584  
 

Xtep International Holdings Ltd.

     Textiles, Apparel & Luxury Goods          54,000          57,440  
 

Xuji Electric Co. Ltd., A

     Electrical Equipment          2,700          6,306  
a,c  

Yadea Group Holdings Ltd., 144A, Reg S

     Automobiles          54,000          86,676  
 

Yang Quan Coal Industry Group Co. Ltd., A

     Oil, Gas & Consumable Fuels          8,100          20,758  
 

Yangling Metron New Material Inc., A

     Semiconductors & Semiconductor Equipment          2,700          21,466  
b  

Yango Group Co. Ltd.

     Real Estate Management & Development          18,900          5,170  
a,c  

Yangtze Optical Fibre and Cable Joint Stock Ltd. Co., 144A, Reg S

     Communications Equipment          13,500          30,681  
 

Yangzhou Yangjie Electronic Technology Co. Ltd.

     Semiconductors & Semiconductor Equipment          2,700          18,705  
 

Yangzijiang Shipbuilding Holdings Ltd.

     Machinery          126,900          91,091  
 

Yantai Changyu Pioneer Wine Co. Ltd., B

     Beverages          10,800          15,849  
 

Yantai Eddie Precision Machinery Co. Ltd., A

     Machinery          3,460          6,935  
 

Yantai Jereh Oilfield Services Group Co. Ltd.

     Energy Equipment & Services          2,700          12,358  
 

Yanzhou Coal Mining Co. Ltd., A

     Oil, Gas & Consumable Fuels          5,400          38,001  
 

Yanzhou Coal Mining Co. Ltd., H

     Oil, Gas & Consumable Fuels          92,000          334,603  
b  

Yatsen Holding Ltd., ADR

     Personal Products          14,823          16,157  
 

Yealink Network Technology Corp. Ltd.

     Communications Equipment          2,700          23,860  
b  

Yifan Pharmaceutical Co. Ltd.

     Pharmaceuticals          5,400          7,923  
 

Yifeng Pharmacy Chain Co. Ltd.

     Food & Staples Retailing          1,690          11,796  
 

Yihai International Holding Ltd.

     Food Products          27,000          57,096  
 

Yihai Kerry Arawana Holdings Co. Ltd., A

     Food Products          8,100          49,072  
 

Yintai Gold Co. Ltd.

     Metals & Mining          11,000          19,842  
 

YongXing Special Materials Technology Co. Ltd.

     Metals & Mining          1,100          19,164  
 

Yonyou Network Technology Co. Ltd., A

     Software          11,790          29,106  
 

Youngor Group Co. Ltd., A

     Real Estate Management & Development          18,900          16,755  
b  

Youngy Co. Ltd., A

     Metals & Mining          1,000          15,789  
 

YTO Express Group Co. Ltd., A

     Air Freight & Logistics          10,800          31,434  
b  

Yuan Longping High-tech Agriculture Co. Ltd.

     Food Products          5,400          10,460  
 

Yuexiu Property Co. Ltd.

     Real Estate Management & Development          62,800          75,841  

 

           
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Franklin FTSE China ETF (continued)

 

           Industry        Shares        Value  
    Common Stocks (continued)                         
    China (continued)                         
 

Yum China Holdings Inc.

     Hotels, Restaurants & Leisure          20,600        $ 985,663  
 

Yunda Holding Co. Ltd., A

     Air Freight & Logistics          5,700          12,513  
 

Yunnan Aluminium Co. Ltd.

     Metals & Mining          12,390          16,006  
 

Yunnan Baiyao Group Co. Ltd.

     Pharmaceuticals          5,780          42,443  
 

Yunnan Botanee Bio-Technology Group Co. Ltd., A

     Personal Products          700          16,891  
 

Yunnan Copper Co. Ltd.

     Metals & Mining          5,400          7,446  
 

Yunnan Energy New Material Co. Ltd.

     Containers & Packaging          2,700          65,944  
 

Yunnan Hongxiang Yixintang Pharmaceutical Co. Ltd.

     Food & Staples Retailing          2,700          9,158  
 

Yunnan Tin Co. Ltd.

     Metals & Mining          5,400          9,332  
b  

Yunnan Yuntianhua Co. Ltd., A

     Chemicals          5,400          17,974  
b  

Zai Lab Ltd., ADR

     Biotechnology          4,536          155,131  
 

Zangge Mining Co. Ltd., A

     Chemicals          5,400          21,587  
 

Zhangzhou Pientzehuang Pharmaceutical Co. Ltd.

     Pharmaceuticals          2,100          78,590  
b  

Zhaojin Mining Industry Co. Ltd., H

     Metals & Mining          54,000          36,872  
 

Zhefu Holding Group Co. Ltd.

     Electrical Equipment          21,600          11,847  
b  

Zhejiang Century Huatong Group Co. Ltd., A

     Entertainment          24,300          12,714  
 

Zhejiang China Commodities City Group Co. Ltd., A

     Real Estate Management & Development          18,900          11,824  
 

Zhejiang Chint Electrics Co. Ltd., A

     Electrical Equipment          2,700          10,142  
 

Zhejiang Crystal-Optech Co. Ltd.

     Electronic Equipment, Instruments & Components          5,400          8,082  
 

Zhejiang Dahua Technology Co. Ltd.

     Electronic Equipment, Instruments & Components          10,800          19,467  
 

Zhejiang Dingli Machinery Co. Ltd.

     Machinery          2,700          13,744  
 

Zhejiang Expressway Co. Ltd., H

     Transportation Infrastructure          72,692          49,542  
 

Zhejiang Hailiang Co. Ltd.

     Metals & Mining          5,400          8,779  
 

Zhejiang HangKe Technology Inc. Co.

     Electrical Equipment          1,196          8,386  
 

Zhejiang Hisoar Pharmaceutical Co. Ltd., A

     Pharmaceuticals          5,400          5,143  
 

Zhejiang Huace Film & TV Co. Ltd., A

     Entertainment          8,100          5,556  
 

Zhejiang Huahai Pharmaceutical Co. Ltd., A

     Pharmaceuticals          5,600          15,074  
 

Zhejiang Huayou Cobalt Co. Ltd., A

     Metals & Mining          4,260          38,446  
 

Zhejiang Jingsheng Mechanical & Electrical Co. Ltd., A

     Semiconductors & Semiconductor Equipment          5,400          51,219  
 

Zhejiang Jiuzhou Pharmaceutical Co. Ltd., A

     Pharmaceuticals          2,700          14,839  
 

Zhejiang Juhua Co. Ltd., A

     Chemicals          10,800          21,042  
 

Zhejiang Medicine Co. Ltd., A

     Pharmaceuticals          2,700          5,132  
 

Zhejiang NHU Co. Ltd.

     Pharmaceuticals          11,056          34,413  
 

Zhejiang Sanhua Intelligent Controls Co. Ltd.

     Machinery          2,700          9,317  
 

Zhejiang Satellite Petrochemical Co. Ltd.

     Chemicals          6,890          20,556  
 

Zhejiang Supcon Technology Co. Ltd., A

     Electronic Equipment, Instruments & Components          1,728          18,935  
 

Zhejiang Supor Co. Ltd.

     Household Durables          1,400          9,059  
b  

Zhejiang Wanfeng Auto Wheel Co. Ltd.

     Auto Components          10,800          8,044  
b  

Zhejiang Wanliyang Co. Ltd.

     Machinery          5,400          6,007  
 

Zhejiang Weiming Environment Protection Co. Ltd., A

     Commercial Services & Supplies          780          2,559  
 

Zhejiang Weixing New Building Materials Co. Ltd., A

     Building Products          5,400          15,604  
 

Zhejiang Wolwo Bio-Pharmaceutical Co. Ltd., A

     Pharmaceuticals          2,700          18,455  
 

Zhejiang Yongtai Technology Co. Ltd., A

     Chemicals          2,700          8,696  
 

Zhengzhou Coal Mining Machinery Group Co. Ltd., A

     Machinery          5,400          9,839  
 

Zheshang Securities Co. Ltd., A

     Capital Markets          5,400          7,181  
b  

Zhihu Inc., ADR

     Interactive Media & Services          7,884          8,357  
a,b,c  

ZhongAn Online P & C Insurance Co. Ltd., 144A, Reg S

     Insurance          35,100          78,697  
 

Zhongji Innolight Co. Ltd.

     Machinery          2,700          9,877  
 

Zhongshan Public Utilities Group Co. Ltd., A

     Water Utilities          5,400          4,931  
 

Zhongsheng Group Holdings Ltd.

     Specialty Retail          33,500          133,788  

 

           
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FRANKLIN TEMPLETON ETF TRUST

SCHEDULE OF INVESTMENTS (UNAUDITED)

 

Franklin FTSE China ETF (continued)

 

           Industry        Shares        Value  
    Common Stocks (continued)                         
    China (continued)                         
 

Zhongtai Securities Co. Ltd., A

     Capital Markets          8,100        $ 7,499  
 

Zhuzhau CRRC Times Electric Co. Ltd., A

     Electrical Equipment          2,002          15,220  
 

Zhuzhou CRRC Times Electric Co. Ltd., H

     Electrical Equipment          24,300          102,154  
 

Zhuzhou Kibing Group Co. Ltd., A

     Building Products          8,100          10,964  
 

Zijin Mining Group Co. Ltd., A

     Metals & Mining          72,900          80,169  
 

Zijin Mining Group Co. Ltd., H

     Metals & Mining          286,000          278,717  
 

Zoomlion Heavy Industry Science and Technology Co. Ltd.

     Machinery          27,000          20,981  
 

Zoomlion Heavy Industry Science and Technology Co. Ltd., H

     Machinery          75,600          26,292  
 

ZTE Corp.

     Communications Equipment          13,500          40,524  
 

ZTE Corp., H

     Communications Equipment          37,800          67,800  
 

ZTO Express Cayman Inc.

     Air Freight & Logistics          21,498          515,685  
              

 

 

 
                 87,179,005  
              

 

 

 
    Hong Kong 4.5%                         
b  

Alibaba Health Information Technology Ltd., A

     Health Care Technology          236,000          108,231  
b  

Alibaba Pictures Group Ltd., A

     Media          540,000          27,860  
 

Beijing Enterprises Water Group Ltd., A

     Water Utilities          162,000          37,353  
 

Bosideng International Holdings Ltd., A

     Household Durables          135,000          66,899  
 

China Everbright Environment Group Ltd., B

     Commercial Services & Supplies          162,000          67,277  
 

China Everbright Ltd., A

     Capital Markets          42,000          24,291  
 

China Gas Holdings Ltd., A

     Gas Utilities          145,800          174,776  
 

China Jinmao Holdings Group Ltd., A

     Real Estate Management & Development          324,000          66,039  
 

China Mengniu Dairy Co. Ltd., B

     Food Products          152,000          603,167  
 

China Overseas Land & Investment Ltd., A

     Real Estate Management & Development          189,000          492,369  
 

China Power International Development Ltd., H

     Independent Power Producers & Energy Traders          270,000          107,657  
 

China Resources Beer Holdings Co. Ltd., A

     Beverages          75,884          528,295  
 

China Resources Gas Group Ltd., A

     Gas Utilities          43,600          138,578  
 

China Resources Land Ltd., H

     Real Estate Management & Development          138,500          545,185  
 

China State Construction International Holdings Ltd., A

     Construction & Engineering          78,000          78,995  
 

China Traditional Chinese Medicine Co. Ltd.

     Pharmaceuticals          108,000          37,697  
 

COSCO SHIPPING Ports Ltd., B

     Transportation Infrastructure          108,000          68,103  
 

Geely Automobile Holdings Ltd.

     Automobiles          273,000          376,293  
 

Guangdong Investment Ltd.

     Water Utilities          147,900          118,510  
 

Kingboard Laminates Holdings Ltd.

     Electronic Equipment, Instruments & Components          52,100          46,924  
 

Kunlun Energy Co. Ltd.

     Oil, Gas & Consumable Fuels          162,000          117,013  
 

Shanghai Industrial Holdings Ltd.

     Industrial Conglomerates          27,000          29,236  
 

Shimao Group Holdings Ltd.

     Real Estate Management & Development          78,000          18,405  
 

Shougang Fushan Resources Group Ltd.

     Metals & Mining          54,000          15,753  
 

Sino Biopharmaceutical Ltd.

     Pharmaceuticals          459,000          215,762  
 

Vinda International Holdings Ltd.

     Household Products          13,000          30,604  
              

 

 

 
                 4,141,272  
              

 

 

 
    Singapore 0.1%                         
b  

Yangzijiang Financial Holding Ltd.

     Capital Markets          126,900          33,165  
 

Yanlord Land Group Ltd.

     Real Estate Management & Development          24,300          16,173  
              

 

 

 
                 49,338  
              

 

 

 
 

Total Investments
(Cost $138,328,688) 99.9%

               91,369,615  
 

Other Assets, less Liabilities 0.1%

               114,757  
              

 

 

 
 

Net Assets 100.0%

             $ 91,484,372  
              

 

 

 

aSecurity was purchased pursuant to Rule 144A under the Securities Act of 1933 and may be sold in transactions exempt from registration only to qualified institutional buyers or in a public offering registered under the Securities Act of 1933. At September 30, 2022, the value of was $11,214,865, representing 12.3% of net assets.

 

           
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FRANKLIN TEMPLETON ETF TRUST

SCHEDULE OF INVESTMENTS (UNAUDITED)

 

Franklin FTSE China ETF (continued)

 

bNon-income producing.

cSecurity was purchased pursuant to Regulation S under the Securities Act of 1933, which exempts from registration securities offered and sold outside of the United States. Such a security cannot be sold in the United States without either an effective registration statement filed pursuant to the Securities Act of 1933, or pursuant to an exemption from registration. At September 30, 2022, the value of was $1,285,054, representing 1.4% of net assets.

At September 30, 2022, the Fund had the following futures contracts outstanding. See Note 1(c).

 

Futures Contracts                                   
Description    Type      Number of
Contracts
     Notional
Amount*
     Expiration
Date
     Value/Unrealized
Appreciation
(Depreciation)
 
Equity Contracts                                   

MSCI China Future

     Long        4      $ 85,300        12/16/22      $ (10,265

*As of period end.

See Note 8 regarding other derivative information.

See Abbreviations on page 332.

 

           
184             

Semiannual Report    |   The accompanying notes are an integral part of these financial statements.

  franklintempleton.com


FRANKLIN TEMPLETON ETF TRUST

 

Financial Highlights

 

Franklin FTSE Europe ETF

 

    Six Months Ended
September 30, 2022
(unaudited)
    Year Ended March 31,  
     2022     2021     2020     2019     2018a  
Per share operating performance
(for a share outstanding throughout the period)
           

Net asset value, beginning of period

    $27.18       $27.28       $19.03       $23.24       $24.98       $25.05  
 

 

 

 
Income from investment operationsb:            

Net investment incomec

    0.61       0.85       0.60       0.76       0.86       0.24  

Net realized and unrealized gains (losses)

    (6.97     0.11       8.14       (4.21     (1.79     (0.30
 

 

 

 

Total from investment operations

    (6.36     0.96       8.74       (3.45     (0.93     (0.06
 

 

 

 

Less distributions from net investment income

    (0.51     (1.06     (0.49     (0.76     (0.81     (0.01
 

 

 

 

Net asset value, end of period

    $20.31       $27.18       $27.28       $19.03       $23.24       $24.98  
 

 

 

 

Total returnd

    (23.57)%       3.30%       46.23%       (15.44)%       (3.69)%       (0.26)%  
Ratios to average net assetse            

Expenses before waiver and payments by affiliates

    0.09%       0.09%       0.09%       0.09%       0.09%       0.09%  

Expenses net of waiver and payments by affiliates

    0.09%       0.09%       0.09%       0.09%       0.09%       0.09%  

Net investment income

    4.96%       2.96%       2.53%       3.23%       3.61%       2.35%  
Supplemental data            

Net assets, end of period (000’s)

    $36,555       $184,857       $229,126       $91,356       $74,359       $104,911  

Portfolio turnover ratef

    2.66% g      5.47% g      5.00% g      4.47% g      5.81%       0.96%  

aFor the period November 2, 2017 (commencement of operations) to March 31, 2018.

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

cBased on average daily shares outstanding.

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

eRatios are annualized for periods less than one year.

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

 

gPortfolio turnover rate excluding cash creations was as follows:     2.63%        5.47%        4.92%       4.47%      

 

           
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The accompanying notes are an integral part of these financial statements.    |   Semiannual Report

             185


FRANKLIN TEMPLETON ETF TRUST

 

Schedule of Investments, September 30, 2022 (unaudited)

 

Franklin FTSE Europe ETF

 

           Industry      Shares        Value  
    Common Stocks 98.2%                       
    Australia 1.6%                       
 

Glencore PLC

     Metals & Mining        59,328        $ 316,668  
 

Rio Tinto PLC

     Metals & Mining        4,896          267,586  
            

 

 

 
               584,254  
            

 

 

 
    Austria 0.3%                       
 

Andritz AG

     Machinery        315          13,467  
 

Erste Group Bank AG

     Banks        1,458          32,337  
 

OMV AG

     Oil, Gas & Consumable Fuels        639          23,393  
 

Raiffeisen Bank International AG

     Banks        585          6,998  
 

Telekom Austria AG

     Diversified Telecommunication Services        648          3,752  
 

Verbund AG

     Electric Utilities        297          25,444  
 

Voestalpine AG

     Metals & Mining        513          8,800  
            

 

 

 
               114,191  
            

 

 

 
    Belgium 1.3%                       
 

Ackermans & van Haaren NV

     Diversified Financial Services        99          12,618  
 

Ageas SA/NV

     Insurance        846          31,030  
 

Anheuser-Busch InBev SA/NV

     Beverages        3,888          178,046  
 

Colruyt SA

     Food & Staples Retailing        234          5,158  
 

D’ieteren Group

     Distributors        108          15,373  
 

Elia Group SA/NV

     Electric Utilities        180          21,231  
 

Groupe Bruxelles Lambert SA

     Diversified Financial Services        441          31,054  
 

KBC Groep NV

     Banks        1,215          57,919  
 

Proximus SADP

     Diversified Telecommunication Services        639          6,632  
 

Sofina SA

     Diversified Financial Services        72          12,520  
 

Solvay SA

     Chemicals        315          24,576  
 

UCB SA

     Pharmaceuticals        549          38,250  
 

Umicore SA

     Chemicals        936          27,628  
 

Warehouses De Pauw CVA

     Equity Real Estate Investment Trusts (REITs      630          15,503  
            

 

 

 
               477,538  
            

 

 

 
    Bermuda 0.1%                       
 

Hiscox Ltd.

     Insurance        1,512          14,894  
            

 

 

 
    Chile 0.1%                       
 

Antofagasta PLC

     Metals & Mining        1,557          19,388  
            

 

 

 
    Denmark 4.0%                       
 

AP Moller-Maersk A/S, A

     Marine        13          23,089  
 

AP Moller-Maersk A/S, B

     Marine        24          43,842  
 

Carlsberg AS, B

     Beverages        423          49,813  
 

Chr. Hansen Holding AS

     Chemicals        468          23,111  
 

Coloplast AS, B

     Health Care Equipment & Supplies        603          61,636  
 

Danske Bank AS

     Banks        2,979          37,224  
 

DSV A/S

     Air Freight & Logistics        855          100,934  
a  

Genmab A/S

     Biotechnology        297          96,301  
 

GN Store Nord AS

     Health Care Equipment & Supplies        585          10,336  
 

H Lundbeck A/S

     Pharmaceuticals        1,116          3,575  
a  

H Lundbeck A/S, A

     Pharmaceuticals        279          832  
 

Novo Nordisk AS, B

     Pharmaceuticals        7,083          710,549  
 

Novozymes AS

     Chemicals        891          44,985  
b  

Orsted AS, 144A

     Electric Utilities        855          68,435  
 

Pandora AS

     Textiles, Apparel & Luxury Goods        414          19,588  
 

Rockwool International AS, B

     Building Products        27          4,280  
 

Royal Unibrew A/S

     Beverages        225          14,671  
 

SimCorp A/S

     Software        180          10,195  
 

Tryg AS

     Insurance        1,602          33,117  
 

Vestas Wind Systems A/S

     Electrical Equipment        4,527          84,469  

 

           
186             

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FRANKLIN TEMPLETON ETF TRUST

SCHEDULE OF INVESTMENTS (UNAUDITED)

 

Franklin FTSE Europe ETF (continued)

 

           Industry      Shares        Value  
    Common Stocks (continued)                       
    Denmark (continued)                       
a  

William Demant Holding AS

     Health Care Equipment & Supplies        432        $ 10,755  
            

 

 

 
               1,451,737  
            

 

 

 
    Finland 2.1%                       
 

Elisa OYJ

     Diversified Telecommunication Services        648          29,424  
c  

Fortum OYJ, Reg S

     Electric Utilities        1,881          25,374  
 

Huhtamaki OYJ

     Containers & Packaging        423          13,534  
 

Kesko OYJ

     Food & Staples Retailing        1,224          22,957  
 

Kojamo Oyj

     Real Estate Management & Development        891          11,452  
 

Kone OYJ, B

     Machinery        1,764          68,450  
 

Metso Outotec Oyj

     Machinery        2,763          18,558  
 

Neste Oil OYJ

     Oil, Gas & Consumable Fuels        1,863          81,764  
 

Nokia OYJ

     Communications Equipment        25,371          109,870  
 

Nordea Bank Abp

     Banks        16,263          140,202  
 

Orion OYJ

     Pharmaceuticals        495          20,891  
 

Sampo OYJ, A

     Insurance        2,205          94,527  
 

Stora Enso OYJ, R

     Paper & Forest Products        2,646          33,931  
 

UPM-Kymmene OYJ

     Paper & Forest Products        2,403          76,696  
 

Valmet Oyj

     Machinery        765          15,611  
 

Wartsila OYJ ABP

     Machinery        2,250          14,508  
            

 

 

 
               777,749  
            

 

 

 
    France 16.2%                       
a  

Accor SA

     Hotels, Restaurants & Leisure        837          17,720  
a  

Aeroports de Paris SA

     Transportation Infrastructure        126          14,689  
 

Air Liquide SA

     Chemicals        2,313          266,383  
 

Airbus SE

     Aerospace & Defense        2,529          220,228  
b  

ALD SA, 144A

     Road & Rail        360          3,336  
 

Alstom SA

     Machinery        1,341          21,998  
b  

Amundi SA, 144A

     Capital Markets        261          10,984  
 

Arkema SA

     Chemicals        297          21,845  
 

AXA SA

     Insurance        8,370          184,288  
 

Biomerieux

     Health Care Equipment & Supplies        198          15,789  
 

BNP Paribas SA

     Banks        4,833          206,454  
 

Bollore

     Entertainment        4,545          21,025  
 

Bouygues SA

     Construction & Engineering        963          25,330  
 

Bureau Veritas SA

     Professional Services        1,287          28,973  
 

Capgemini SE

     IT Services        720          116,735  
 

Carrefour SA

     Food & Staples Retailing        2,736          38,101  
 

Cie Generale des Etablissements Michelin SCA

     Auto Components        3,231          73,291  
 

Compagnie de Saint-Gobain

     Building Products        2,106          76,439  
 

Covivio

     Equity Real Estate Investment Trusts (REITs      225          10,915  
 

Credit Agricole SA

     Banks        5,373          44,025  
 

Danone SA

     Food Products        2,745          130,611  
 

Dassault Aviation SA

     Aerospace & Defense        99          11,347  
 

Dassault Systemes SE

     Software        3,078          107,754  
 

Edenred

     IT Services        1,125          52,196  
 

EDF SA

     Electric Utilities        2,772          32,288  
 

Eiffage SA

     Construction & Engineering        333          26,920  
 

Engie SA

     Multi-Utilities        7,524          87,286  
 

EssilorLuxottica SA

     Textiles, Apparel & Luxury Goods        1,359          186,854  
 

Eurazeo SE

     Diversified Financial Services        207          10,920  
a  

Euroapi SA

     Pharmaceuticals        218          3,639  
a  

Faurecia SE

     Auto Components        707          7,778  
 

Gecina SA

     Equity Real Estate Investment Trusts (REITs      234          18,442  
 

Getlink SE

     Transportation Infrastructure        2,070          32,253  
 

Hermes International

     Textiles, Apparel & Luxury Goods        139          165,721  
 

ICADE

     Equity Real Estate Investment Trusts (REITs      144          5,389  

 

           
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             187


FRANKLIN TEMPLETON ETF TRUST

SCHEDULE OF INVESTMENTS (UNAUDITED)

 

Franklin FTSE Europe ETF (continued)

 

           Industry      Shares        Value  
    Common Stocks (continued)                       
    France (continued)                       
 

Ipsen SA

     Pharmaceuticals        153        $ 14,224  
a  

JCDecaux SA

     Media        342          4,044  
 

Kering SA

     Textiles, Apparel & Luxury Goods        333          149,590  
 

Klepierre SA

     Equity Real Estate Investment Trusts (REITs      846          14,835  
b  

La Francaise des Jeux SAEM, 144A

     Hotels, Restaurants & Leisure        396          11,821  
 

Legrand SA

     Electrical Equipment        1,224          79,931  
 

L’Oreal SA

     Personal Products        1,116          361,059  
 

LVMH Moet Hennessy Louis Vuitton SE

     Textiles, Apparel & Luxury Goods        1,125          672,726  
b  

Neoen SA, 144A

     Independent Power Producers & Energy Traders      198          6,661  
 

Orange SA

     Diversified Telecommunication Services        8,604          77,951  
 

Pernod Ricard SA

     Beverages        936          173,166  
 

Publicis Groupe

     Media        1,017          48,719  
 

Remy Cointreau SA

     Beverages        108          18,082  
a  

Renault SA

     Automobiles        837          22,935  
 

Rexel SA

     Trading Companies & Distributors        1,080          16,378  
 

Safran SA

     Aerospace & Defense        1,575          145,053  
 

Sanofi

     Pharmaceuticals        4,932          378,800  
 

Sartorius Stedim Biotech

     Life Sciences Tools & Services        108          33,550  
 

Schneider Electric SE

     Electrical Equipment        2,412          276,319  
 

SCOR SE

     Insurance        720          10,485  
 

SEB SA

     Household Durables        135          8,557  
 

Societe Generale SA

     Banks        3,510          70,198  
 

Sodexo SA

     Hotels, Restaurants & Leisure        396          29,934  
a  

SOITEC

     Semiconductors & Semiconductor Equipment        126          14,646  
 

Somfy SA

     Electrical Equipment        36          3,354  
 

Teleperformance

     Professional Services        261          66,709  
 

Thales SA

     Aerospace & Defense        459          50,812  
 

TotalEnergies SE

     Oil, Gas & Consumable Fuels        10,710          506,504  
a  

Ubisoft Entertainment SA

     Entertainment        405          11,236  
a  

Unibail-Rodamco-Westfield

     Equity Real Estate Investment Trusts (REITs      364          15,292  
a  

Unibail-Rodamco-Westfield

     Equity Real Estate Investment Trusts (REITs      104          4,369  
 

Valeo

     Auto Components        1,098          16,813  
 

Veolia Environnement SA

     Multi-Utilities        2,781          53,698  
 

Vinci SA

     Construction & Engineering        2,241          182,591  
 

Vivendi SA

     Media        3,168          24,741  
 

Wendel SE

     Diversified Financial Services        126          9,116  
a,b,c  

Worldline SA, 144A, Reg S

     IT Services        1,107          44,116  
            

 

 

 
               5,926,961  
            

 

 

 
    Germany 11.1%                       
 

1&1 Drillisch AG

     Wireless Telecommunication Services        198          2,632  
 

Adidas AG

     Textiles, Apparel & Luxury Goods        756          88,044  
 

Allianz SE

     Insurance        1,845          292,446  
 

Aroundtown SA

     Real Estate Management & Development        5,247          11,602  
 

BASF SE

     Chemicals        4,122          159,909  
 

Bayer AG

     Pharmaceuticals        4,464          207,353  
 

Bayerische Motoren Werke AG

     Automobiles        1,458          99,969  
 

Bechtle AG

     IT Services        387          14,077  
 

Beiersdorf AG

     Personal Products        450          44,503  
 

Brenntag AG

     Trading Companies & Distributors        702          42,900  
 

Carl Zeiss Meditec AG

     Health Care Equipment & Supplies        180          18,947  
a  

Commerzbank AG

     Banks        4,734          34,050  
 

Continental AG

     Auto Components        477          21,472  
b  

Covestro AG, 144A

     Chemicals        819          23,701  
a  

CTS Eventim AG & Co. KGaA

     Entertainment        261          10,872  
 

Daimler AG

     Automobiles        3,798          194,779  
a  

Daimler Truck Holding AG

     Machinery        1,908          43,645  
a,b  

Delivery Hero SE, 144A

     Internet & Direct Marketing Retail        882          32,782  

 

           
188             

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FRANKLIN TEMPLETON ETF TRUST

SCHEDULE OF INVESTMENTS (UNAUDITED)

 

Franklin FTSE Europe ETF (continued)

 

           Industry        Shares        Value  
    Common Stocks (continued)                         
    Germany (continued)                         
 

Deutsche Bank AG

     Capital Markets          9,126        $ 68,357  
 

Deutsche Boerse AG

     Capital Markets          846          139,443  
a  

Deutsche Lufthansa AG

     Airlines          2,700          15,653  
 

Deutsche Post AG

     Air Freight & Logistics          4,383          133,602  
 

Deutsche Telekom AG

     Diversified Telecommunication Services          15,336          262,798  
 

Deutsche Wohnen AG

     Real Estate Management & Development          198          3,783  
b  

DWS Group GmbH & Co. KGaA, 144A

     Capital Markets          162          3,898  
 

E.ON SE

     Multi-Utilities          10,044          77,694  
 

Evonik Industries AG

     Chemicals          882          14,905  
a  

Evotec SE

     Life Sciences Tools & Services          711          12,506  
 

Fielmann AG

     Specialty Retail          108          3,487  
a  

Fraport AG Frankfurt Airport Services Worldwide .

     Transportation Infrastructure          162          5,902  
 

Fresenius Medical Care AG & Co. KGaA

     Health Care Providers & Services          954          27,131  
 

Fresenius SE & Co. KGaA

     Health Care Providers & Services          1,809          38,900  
 

Fuchs Petrolub SE

     Chemicals          153          3,380  
 

GEA Group AG

     Machinery          747          24,398  
 

Hannover Rueck SE

     Insurance          270          40,787  
 

HeidelbergCement AG

     Construction Materials          639          25,572  
 

Hella GmbH & Co. KGaA

     Auto Components          99          6,605  
a  

HelloFresh SE

     Internet & Direct Marketing Retail          738          15,725  
 

Henkel AG & Co. KGaA

     Household Products          459          26,215  
 

Hochtief AG

     Construction & Engineering          90          4,308  
 

Infineon Technologies AG

     Semiconductors & Semiconductor Equipment          5,886          130,951  
 

KION Group AG

     Machinery          369          7,163  
 

Knorr-Bremse AG

     Machinery          297          12,913  
 

Lanxess AG

     Chemicals          378          11,135  
 

LEG Immobilien AG

     Real Estate Management & Development          324          19,476  
 

Merck KGaA

     Pharmaceuticals          585          95,592  
a  

METRO AG

     Food & Staples Retailing          603          4,230  
 

MTU Aero Engines AG

     Aerospace & Defense          252          38,080  
 

Muenchener Rueckversicherungs-Gesellschaft Aktiengesellschaft in Muenchen

     Insurance          639          154,934  
 

Nemetschek AG

     Software          243          11,719  
 

Puma SE

     Textiles, Apparel & Luxury Goods          450          21,147  
 

Rational AG

     Machinery          18          8,826  
 

Rheinmetall AG

     Industrial Conglomerates          198          30,686  
 

RWE AG

     Multi-Utilities          2,853          105,621  
 

SAP SE

     Software          5,022          413,854  
 

Sartorius AG

     Health Care Equipment & Supplies          9          2,724  
b,c  

Scout24 AG, 144A, Reg S

     Interactive Media & Services          342          17,328  
 

Siemens AG

     Industrial Conglomerates          3,420          339,061  
a  

Siemens Energy AG

     Electrical Equipment          1,935          21,582  
b  

Siemens Healthineers AG, 144A

     Health Care Equipment & Supplies          1,233          53,486  
 

Sixt SE

     Road & Rail          63          5,064  
 

Symrise AG

     Chemicals          585          57,567  
a  

Talanx AG

     Insurance          234          8,344  
 

Telefonica Deutschland Holding AG

     Diversified Telecommunication Services          4,113          8,353  
a  

thyssenkrupp AG

     Metals & Mining          2,250          9,668  
 

Traton SE

     Machinery          225          2,698  
a  

TUI AG

     Hotels, Restaurants & Leisure          5,427          6,552  
 

Uniper SE

     Independent Power Producers & Energy Traders          396          1,515  
 

United Internet AG

     Diversified Telecommunication Services          495          9,340  
 

Vantage Towers AG

     Diversified Telecommunication Services          432          11,232  
 

Varta AG

     Electrical Equipment          63          1,811  
 

Volkswagen AG

     Automobiles          126          20,818  
 

Vonovia SE

     Real Estate Management & Development          3,645          79,308  
 

Wacker Chemie AG

     Chemicals          72          7,487  

 

           
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             189


FRANKLIN TEMPLETON ETF TRUST

SCHEDULE OF INVESTMENTS (UNAUDITED)

 

Franklin FTSE Europe ETF (continued)

 

           Industry        Shares        Value  
    Common Stocks (continued)                         
    Germany (continued)                         
a,b  

Zalando SE, 144A

     Internet & Direct Marketing Retail          990        $ 19,620  
              

 

 

 
                 4,048,617  
              

 

 

 
    Ireland 1.4%                         
 

AIB Group PLC

     Banks          4,869          11,858  
 

Bank of Ireland Group PLC

     Banks          4,104          26,479  
 

CRH PLC

     Construction Materials          3,447          111,973  
 

DCC PLC

     Industrial Conglomerates          450          23,555  
 

Experian PLC

     Professional Services          4,140          122,978  
a  

Flutter Entertainment PLC

     Hotels, Restaurants & Leisure          792          87,863  
 

Glanbia PLC

     Food Products          873          10,075  
 

Kerry Group

     Food Products          693          61,915  
 

Kingspan Group PLC

     Building Products          666          30,234  
 

Smurfit Kappa Group PLC

     Containers & Packaging          1,179          33,982  
              

 

 

 
                 520,912  
              

 

 

 
    Isle Of Man 0.1%                         
 

GVC Holdings PLC

     Hotels, Restaurants & Leisure          2,637          31,968  
              

 

 

 
    Italy 3.2%                         
 

A2A SpA

     Multi-Utilities          7,029          6,885  
 

Amplifon SpA

     Health Care Providers & Services          603          15,891  
 

Assicurazioni Generali SpA

     Insurance          6,255          85,910  
 

Atlantia SpA

     Transportation Infrastructure          2,430          53,824  
 

Banca Mediolanum SpA

     Diversified Financial Services          1,044          6,617  
 

Buzzi Unicem SpA

     Construction Materials          387          5,529  
 

Davide Campari-Milano NV

     Beverages          2,250          20,085  
 

De’ Longhi SpA

     Household Durables          288          4,252  
 

DiaSorin SpA

     Health Care Equipment & Supplies          99          11,134  
 

Enel SpA

     Electric Utilities          35,127          145,357  
 

Eni SpA

     Oil, Gas & Consumable Fuels          11,115          118,797  
 

Ferrari NV

     Automobiles          549          103,101  
 

FinecoBank Banca Fineco SpA

     Banks          2,763          34,471  
 

Hera SpA

     Multi-Utilities          3,753          8,037  
b,c  

Infrastrutture Wireless Italiane SpA, 144A, Reg S

     Diversified Telecommunication Services          1,494          13,128  
 

Interpump Group SpA

     Machinery          360          11,786  
 

Intesa Sanpaolo SpA

     Banks          74,988          125,091  
 

Italgas Reti SpA

     Gas Utilities          2,277          10,654  
 

Leonardo SpA

     Aerospace & Defense          1,827          13,016  
 

Mediobanca Banca di Credito Finanziario SpA

     Banks          2,952          23,309  
 

Moncler SpA

     Textiles, Apparel & Luxury Goods          918          38,122  
a,b  

Nexi SpA, 144A

     IT Services          3,357          27,434  
b  

Pirelli & C SpA, 144A

     Auto Components          2,115          6,962  
b,c  

Poste Italiane SpA, 144A, Reg S

     Insurance          2,079          15,866  
 

Prysmian SpA

     Electrical Equipment          1,170          33,950  
 

Recordati Industria Chimica e Farmaceutica SpA

     Pharmaceuticals          432          15,951  
 

Reply SpA

     IT Services          99          10,436  
 

Snam SpA

     Gas Utilities          9,981          40,539  
a  

Telecom Italia SpA

     Diversified Telecommunication Services          48,339          9,012  
a  

Telecom Italia SpA/Milano

     Diversified Telecommunication Services          27,675          5,016  
 

Tenaris SA

     Energy Equipment & Services          2,124          27,601  
 

Terna – Rete Elettrica Nazionale

     Electric Utilities          6,408          39,235  
 

UniCredit SpA

     Banks          8,883          91,008  
 

UnipolSai Assicurazioni SpA

     Insurance          2,160          4,507  
              

 

 

 
                 1,182,513  
              

 

 

 
    Luxembourg 0.2%                         
 

ArcelorMittal SA

     Metals & Mining          2,313          46,826  
 

Eurofins Scientific SE

     Life Sciences Tools & Services          549          32,872  

 

           
190             

Semiannual Report

  franklintempleton.com


FRANKLIN TEMPLETON ETF TRUST

SCHEDULE OF INVESTMENTS (UNAUDITED)

 

Franklin FTSE Europe ETF (continued)

 

           Industry        Shares        Value  
    Common Stocks (continued)                         
    Luxembourg (continued)                         
a  

RTL Group SA

     Media          171        $ 5,451  
a  

SUSE SA

     Software          162          2,409  
              

 

 

 
                 87,558  
              

 

 

 
    Mexico 0.0%                         
 

Fresnillo PLC

     Metals & Mining          855          7,342  
              

 

 

 
    Netherlands 9.0%                         
 

Aalberts NV

     Machinery          432          14,292  
b  

ABN AMRO Bank NV, 144A

     Banks          1,881          17,005  
a,b  

Adyen NV, 144A

     IT Services          135          172,167  
 

Aegon NV

     Insurance          7,983          32,080  
 

Akzo Nobel NV

     Chemicals          801          45,764  
a  

Argenx SE

     Biotechnology          198          71,478  
a  

Argenx SE

     Biotechnology          54          19,494  
 

ASM International NV

     Semiconductors & Semiconductor Equipment          207          47,402  
 

ASML Holding NV

     Semiconductors & Semiconductor Equipment          1,827          776,066  
 

ASR Nederland NV

     Insurance          576          22,328  
 

BE Semiconductor Industries NV

     Semiconductors & Semiconductor Equipment          333          14,546  
b  

CTP NV, 144A

     Real Estate Management & Development          225          2,328  
b,c  

Euronext NV, 144A, Reg S

     Capital Markets          369          23,533  
a  

EXOR NV

     Diversified Financial Services          50          3,207  
a  

EXOR NV

     Diversified Financial Services          400          25,659  
 

Heineken Holding NV

     Beverages          477          32,944  
 

Heineken NV

     Beverages          1,071          94,282  
 

IMCD Group NV

     Trading Companies & Distributors          270          32,428  
 

ING Groep NV

     Banks          17,091          148,311  
 

JDE Peet’s BV

     Food Products          369          10,823  
 

Koninklijke Ahold Delhaize NV

     Food & Staples Retailing          4,554          116,597  
 

Koninklijke DSM NV

     Chemicals          792          91,127  
 

Koninklijke KPN NV

     Diversified Telecommunication Services          14,535          39,471  
 

Koninklijke Philips NV

     Health Care Equipment & Supplies          3,996          62,635  
 

Koninklijke Vopak NV

     Oil, Gas & Consumable Fuels          297          5,441  
 

NN Group NV

     Insurance          1,350          52,861  
 

OCI NV

     Chemicals          432          15,896  
 

Prosus NV

     Internet & Direct Marketing Retail          3,888          205,565  
a  

QIAGEN NV

     Life Sciences Tools & Services          999          42,063  
 

Randstad NV

     Professional Services          504          22,011  
 

Shell PLC

     Oil, Gas & Consumable Fuels          33,156          831,475  
b  

Signify NV, 144A

     Electrical Equipment          567          14,792  
 

Universal Music Group NV

     Entertainment          3,420          64,750  
 

Wolters Kluwer NV

     Professional Services          1,161          113,646  
              

 

 

 
                 3,284,467  
              

 

 

 
    Nigeria 0.0%                         
b  

Airtel Africa PLC, 144A

     Wireless Telecommunication Services          4,518          6,516  
              

 

 

 
    Norway 1.3%                         
a  

Adevinta ASA, B

     Interactive Media & Services          1,305          7,784  
 

Aker ASA

     Diversified Financial Services          108          6,997  
 

Aker BP ASA

     Oil, Gas & Consumable Fuels          1,388          39,816  
a,b  

AutoStore Holdings Ltd., 144A

     Machinery          2,673          2,948  
 

DNB Bank ASA

     Banks          4,608          73,091  
 

Equinor ASA

     Oil, Gas & Consumable Fuels          4,248          139,596  
 

Gjensidige Forsikring ASA

     Insurance          747          12,819  
 

Kongsberg Gruppen ASA

     Aerospace & Defense          333          10,145  
 

Leroy Seafood Group ASA

     Food Products          1,188          4,664  
 

Mowi ASA

     Food Products          2,007          25,508  
a  

Nordic Semiconductor ASA

     Semiconductors & Semiconductor Equipment          702          9,373  

 

           
franklintempleton.com  

Semiannual Report

             191


FRANKLIN TEMPLETON ETF TRUST

SCHEDULE OF INVESTMENTS (UNAUDITED)

 

Franklin FTSE Europe ETF (continued)

 

           Industry      Shares        Value  
    Common Stocks (continued)                       
    Norway (continued)                       
 

Norsk Hydro ASA

     Metals & Mining        6,057        $ 32,705  
 

Orkla ASA

     Food Products        3,456          25,118  
 

Salmar ASA

     Food Products        243          8,188  
 

Schibsted ASA, A

     Media        351          4,761  
 

Schibsted ASA, B

     Media        450          5,666  
 

Telenor ASA

     Diversified Telecommunication Services        2,880          26,339  
 

TOMRA Systems ASA

     Commercial Services & Supplies        1,044          18,431  
 

Var Energi ASA

     Oil, Gas & Consumable Fuels        1,827          5,950  
 

Yara International ASA

     Chemicals        711          25,009  
            

 

 

 
               484,908  
            

 

 

 
    Poland 0.3%                       
a,b  

Allegro.eu, 144A

     Internet & Direct Marketing Retail        1,773          7,734  
 

Bank Pekao SA

     Banks        711          8,738  
a,b  

Dino Polska SA, 144A

     Food & Staples Retailing        216          13,207  
a  

InPost SA

     Air Freight & Logistics        909          5,355  
 

KGHM Polska Miedz SA

     Metals & Mining        621          11,022  
 

LPP SA

     Textiles, Apparel & Luxury Goods        5          7,891  
 

Polski Koncern Naftowy Orlen SA

     Oil, Gas & Consumable Fuels        1,854          20,098  
a  

Polskie Gornictwo Naftowe i Gazownictwo SA

     Oil, Gas & Consumable Fuels        7,965          7,867  
 

Powszechna Kasa Oszczednosci Bank Polski SA

     Banks        3,879          17,153  
 

Powszechny Zaklad Ubezpieczen SA

     Insurance        2,520          11,817  
 

Santander Bank Polska SA

     Banks        135          5,382  
            

 

 

 
               116,264  
            

 

 

 
    Portugal 0.3%                       
 

EDP – Energias de Portugal SA

     Electric Utilities        12,654          55,040  
 

Galp Energia SGPS SA, B

     Oil, Gas & Consumable Fuels        2,340          22,520  
 

Jeronimo Martins SGPS SA

     Food & Staples Retailing        1,215          22,675  
            

 

 

 
               100,235  
            

 

 

 
    Russia 0.0%                       
d  

Evraz PLC

     Metals & Mining        10,404           
            

 

 

 
    Spain 3.7%                       
 

Acciona SA

     Electric Utilities        108          19,108  
 

ACS Actividades de Construccion y Servicios SA

     Construction & Engineering        982          22,251  
a,b  

Aena SME SA, 144A

     Transportation Infrastructure        306          32,046  
a  

Amadeus IT Group SA

     IT Services        1,917          89,974  
 

Banco Bilbao Vizcaya Argentaria SA

     Banks        27,441          124,211  
 

Banco Santander SA

     Banks        75,042          176,252  
 

Bankinter SA

     Banks        3,114          17,590  
 

CaixaBank SA

     Banks        19,980          64,807  
a  

Cellnex Telecom SA, 144A

     Diversified Telecommunication Services        2,718          84,647  
 

Corp. ACCIONA Energias Renovables SA

     Independent Power Producers & Energy Traders        225          8,455  
 

Corporacion Mapfre SA

     Insurance        4,365          6,799  
 

EDP Renovaveis SA

     Independent Power Producers & Energy Traders        1,080          22,261  
 

Enagas SA

     Gas Utilities        1,125          17,457  
 

Endesa SA

     Electric Utilities        1,440          21,753  
 

Ferrovial SA

     Construction & Engineering        2,178          49,907  
 

Fluidra SA

     Machinery        486          7,389  
a  

Grifols SA

     Biotechnology        1,503          13,078  
 

Iberdrola SA

     Electric Utilities        26,937          252,858  
 

Industria de Diseno Textil SA

     Specialty Retail        4,779          99,628  
 

Inmobiliaria Colonial SA

     Equity Real Estate Investment Trusts (REITs      1,503          7,268  
 

Merlin Properties Socimi SA

     Equity Real Estate Investment Trusts (REITs      1,512          11,709  
 

Naturgy Energy Group SA

     Gas Utilities        666          15,483  
 

Red Electrica Corp. SA

     Electric Utilities        1,962          30,196  
 

Repsol SA

     Oil, Gas & Consumable Fuels        5,562          64,323  

 

           
192             

Semiannual Report

  franklintempleton.com


FRANKLIN TEMPLETON ETF TRUST

SCHEDULE OF INVESTMENTS (UNAUDITED)

 

Franklin FTSE Europe ETF (continued)

 

           Industry        Shares        Value  
    Common Stocks (continued)                         
    Spain (continued)                         
a  

Siemens Gamesa Renewable Energy SA

     Electrical Equipment          1,026        $ 18,017  
 

Telefonica SA

     Diversified Telecommunication Services          23,427          77,480  
              

 

 

 
                 1,354,947  
              

 

 

 
    Sweden 5.0%                         
 

Alfa Laval AB

     Machinery          1,368          34,319  
a  

Alleima AB

     Metals & Mining          967          3,032  
 

Assa Abloy AB, B

     Building Products          4,086          77,210  
 

Atlas Copco AB, A

     Machinery          11,385          107,515  
 

Atlas Copco AB, B

     Machinery          7,047          59,221  
 

Axfood AB

     Food & Staples Retailing          486          11,163  
 

Beijer Ref AB

     Trading Companies & Distributors          1,107          13,716  
 

Boliden AB

     Metals & Mining          1,242          38,785  
 

Castellum AB

     Real Estate Management & Development          1,134          12,788  
 

Electrolux AB, B

     Household Durables          1,035          10,839  
 

Epiroc AB, A

     Machinery          2,826          40,782  
 

Epiroc AB, B

     Machinery          1,719          21,841  
 

EQT AB

     Capital Markets          1,323          26,120  
 

Ericsson, B

     Communications Equipment          13,500          79,668  
 

Essity AB, B

     Household Products          2,700          53,720  
b,c  

Evolution Gaming Group AB, 144A, Reg S

     Hotels, Restaurants & Leisure          711          56,816  
a  

Fastighets AB Balder, B

     Real Estate Management & Development          2,700          10,889  
 

Getinge AB, B

     Health Care Equipment & Supplies          1,017          17,568  
 

Hennes & Mauritz AB, B

     Specialty Retail          3,987          37,170  
 

Hexagon AB, B

     Electronic Equipment, Instruments & Components          8,433          79,562  
 

Holmen AB, B

     Paper & Forest Products          432          16,525  
 

Husqvarna AB, A

     Household Durables          117          654  
 

Husqvarna AB, B

     Household Durables          1,926          10,778  
 

Industrivarden AB, A

     Diversified Financial Services          972          19,768  
 

Industrivarden AB, C

     Diversified Financial Services          801          16,117  
 

Indutrade AB

     Machinery          1,269          20,857  
 

Investment AB Latour, B

     Industrial Conglomerates          639          10,687  
 

Investor AB, A

     Diversified Financial Services          2,412          37,286  
 

Investor AB, B

     Diversified Financial Services          8,208          120,988  
a  

Kinnevik AB, B

     Diversified Financial Services          1,089          14,484  
 

L E Lundbergforetagen AB, B

     Diversified Financial Services          342          12,463  
 

Lifco AB, B

     Industrial Conglomerates          1,035          14,568  
 

Nibe Industrier AB, B

     Building Products          6,534          58,937  
 

Saab AB, B

     Aerospace & Defense          414          12,967  
 

Sagax AB, B

     Real Estate Management & Development          774          12,847  
 

Sagax AB, D

     Real Estate Management & Development          540          1,216  
 

Sandvik AB

     Machinery          4,842          66,560  
 

Securitas AB, B

     Commercial Services & Supplies          1,483          10,370  
 

Skandinaviska Enskilda Banken AB, A

     Banks          6,435          61,929  
 

Skandinaviska Enskilda Banken AB, C

     Banks          99          1,053  
 

Skanska AB, B

     Construction & Engineering          1,629          20,477  
 

SKF AB, B

     Machinery          1,737          23,517  
 

Svenska Cellulosa AB, A

     Paper & Forest Products          108          1,388  
 

Svenska Cellulosa AB, B

     Paper & Forest Products          2,691          34,433  
 

Svenska Handelsbanken AB, A

     Banks          6,876          56,768  
 

Svenska Handelsbanken AB, B

     Banks          171          1,680  
 

Sweco AB, B

     Construction & Engineering          900          7,591  
 

Swedbank AB, A

     Banks          4,554          60,262  
 

Swedish Match AB

     Tobacco          6,876          68,156  
a  

Swedish Orphan Biovitrum AB

     Biotechnology          810          15,736  
 

Tele2 AB, B

     Wireless Telecommunication Services          2,475          21,410  
 

Telefonaktiebolaget LM Ericsson, A

     Communications Equipment          171          1,032  
 

Telia Co. AB

     Diversified Telecommunication Services          11,682          33,717  

 

           
franklintempleton.com  

Semiannual Report

             193


FRANKLIN TEMPLETON ETF TRUST

SCHEDULE OF INVESTMENTS (UNAUDITED)

 

Franklin FTSE Europe ETF (continued)

 

           Industry        Shares        Value  
    Common Stocks (continued)                         
    Sweden (continued)                         
 

Trelleborg AB, B

     Machinery          1,098        $ 20,768  
 

Vitrolife AB

     Biotechnology          297          4,255  
 

Volvo AB, A

     Machinery          936          13,900  
 

Volvo AB, B

     Machinery          6,858          97,690  
a  

Volvo Car AB, B

     Automobiles          2,457          10,789  
              

 

 

 
                 1,807,347  
              

 

 

 
    Switzerland 16.4%                         
 

ABB Ltd.

     Electrical Equipment          6,876          180,240  
 

Adecco Group AG

     Professional Services          729          20,302  
 

Alcon Inc.

     Health Care Equipment & Supplies          2,115          124,934  
 

Bachem Holding AG

     Life Sciences Tools & Services          144          9,188  
 

Baloise Holding AG

     Insurance          207          26,647  
 

Banque Cantonale Vaudoise

     Banks          126          11,995  
 

Barry Callebaut AG

     Food Products          18          34,180  
 

Belimo Holding AG

     Building Products          45          16,802  
 

BKW AG

     Electric Utilities          81          9,719  
 

Chocoladefabriken Lindt & Spruengli AG

     Food Products          9          87,417  
 

Cie Financiere Richemont SA

     Textiles, Apparel & Luxury Goods          2,322          222,421  
 

Clariant AG

     Chemicals          1,035          16,720  
 

Coca-Cola HBC AG

     Beverages          891          18,838  
 

Credit Suisse Group AG

     Capital Markets          11,826          47,773  
 

DKSH Holding AG

     Professional Services          162          11,818  
 

Emmi AG

     Food Products          9          7,032  
 

EMS-Chemie Holding AG

     Chemicals          36          22,988  
a  

Flughafen Zurich AG

     Transportation Infrastructure          90          13,433  
 

Geberit AG

     Building Products          153          66,454  
 

Georg Fischer AG

     Machinery          360          17,410  
 

Givaudan AG

     Chemicals          42          128,144  
 

Helvetia Holding AG

     Insurance          162          15,291  
 

Holcim Ltd., B

     Construction Materials          2,475          103,048  
 

Julius Baer Group Ltd.

     Capital Markets          972          42,959  
 

Kuehne + Nagel International AG

     Marine          225          46,177  
 

Logitech International SA

     Technology Hardware, Storage & Peripherals          666          31,092  
 

Lonza Group AG

     Life Sciences Tools & Services          333          164,529  
 

Nestle SA

     Food Products          12,213          1,328,695  
 

Novartis AG

     Pharmaceuticals          9,288          712,748  
 

Partners Group Holding AG

     Capital Markets          99          80,930  
 

PSP Swiss Property AG

     Real Estate Management & Development          198          19,916  
 

Roche Holding AG, Bearer

     Pharmaceuticals          117          46,099  
 

Roche Holding AG, Non-Voting

     Pharmaceuticals          3,141          1,032,214  
 

Schindler Holding AG, PC

     Machinery          189          29,697  
 

Schindler Holding AG

     Machinery          90          13,716  
 

SGS SA

     Professional Services          27          58,293  
 

SIG Combibloc Group AG

     Containers & Packaging          1,710          35,060  
 

Sika AG

     Chemicals          693          141,311  
 

Sonova Holding AG

     Health Care Equipment & Supplies          234          52,304  
 

STMicroelectronics NV

     Semiconductors & Semiconductor Equipment          2,844          89,838  
 

Straumann Holding AG

     Health Care Equipment & Supplies          477          44,509  
 

Swatch Group AG

     Textiles, Apparel & Luxury Goods          207          8,783  
 

Swiss Life Holding AG

     Insurance          135          60,145  
 

Swiss Prime Site AG

     Real Estate Management & Development          342          27,450  
 

Swiss Re AG

     Insurance          1,305          97,002  
 

Swisscom AG

     Diversified Telecommunication Services          117          55,097  
 

Tecan Group AG

     Life Sciences Tools & Services          54          18,818  
 

Temenos AG

     Software          279          19,117  
 

The Swatch Group AG

     Textiles, Apparel & Luxury Goods          135          30,792  
 

UBS Group AG

     Capital Markets          13,743          202,113  

 

           
194             

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FRANKLIN TEMPLETON ETF TRUST

SCHEDULE OF INVESTMENTS (UNAUDITED)

 

Franklin FTSE Europe ETF (continued)

 

           Industry      Shares        Value  
    Common Stocks (continued)                       
    Switzerland (continued)                       
b,c  

VAT Group AG, 144A

     Machinery        117        $ 24,226  
 

Zurich Insurance Group AG

     Insurance        675          270,891  
            

 

 

 
               5,997,315  
            

 

 

 
    United Kingdom 20.2%                       
 

3i Group PLC

     Capital Markets        4,365          53,258  
 

Abrdn PLC

     Capital Markets        9,702          15,065  
 

Admiral Group PLC

     Insurance        1,287          27,505  
 

Allfunds Group PLC

     Capital Markets        1,098          8,148  
 

Anglo American PLC

     Metals & Mining        5,463          166,820  
 

Ashtead Group PLC

     Trading Companies & Distributors        1,989          90,722  
 

Associated British Foods PLC

     Food Products        1,584          22,306  
 

AstraZeneca PLC

     Pharmaceuticals        6,696          743,288  
b  

Auto Trader Group PLC, 144A

     Interactive Media & Services        4,077          23,438  
 

AVEVA Group PLC

     Software        531          18,624  
 

Aviva PLC

     Insurance        12,816          55,538  
 

B&M European Value Retail SA

     Multiline Retail        4,014          13,716  
 

BAE Systems PLC

     Aerospace & Defense        14,202          125,212  
 

Barclays PLC

     Banks        73,854          118,966  
 

Barratt Developments PLC

     Household Durables        4,446          16,984  
 

Bellway PLC

     Household Durables        558          10,608  
 

Berkeley Group Holdings PLC

     Household Durables        450          16,562  
 

BP PLC

     Oil, Gas & Consumable Fuels        84,294          407,536  
 

British American Tobacco PLC

     Tobacco        10,152          365,649  
 

British Land Co. PLC

     Equity Real Estate Investment Trusts (REITs      4,176          16,348  
 

BT Group PLC

     Diversified Telecommunication Services        31,428          42,573  
 

Bunzl PLC

     Trading Companies & Distributors        1,530          47,139  
 

Burberry Group PLC

     Textiles, Apparel & Luxury Goods        1,728          34,876  
a  

Centrica PLC

     Multi-Utilities        26,883          21,259  
 

CNH Industrial NV

     Machinery        4,500          51,270  
 

Compass Group PLC

     Hotels, Restaurants & Leisure        8,028          161,758  
b  

ConvaTec Group PLC, 144A

     Health Care Equipment & Supplies        7,299          16,752  
 

Croda International PLC

     Chemicals        612          44,037  
 

Dechra Pharmaceuticals PLC

     Pharmaceuticals        477          13,962  
 

Derwent London PLC

     Equity Real Estate Investment Trusts (REITs      450          10,147  
 

Diageo PLC

     Beverages        10,206          432,647  
 

Direct Line Insurance Group PLC

     Insurance        5,652          11,704  
 

Dr. Martens PLC

     Textiles, Apparel & Luxury Goods        2,529          6,290  
 

DS Smith PLC

     Containers & Packaging        5,805          16,647  
a  

easyJet PLC

     Airlines        1,705          5,641  
 

Electrocomponents PLC

     Trading Companies & Distributors        2,124          22,975  
 

Endeavour Mining PLC

     Metals & Mining        828          15,168  
 

Ferguson PLC

     Trading Companies & Distributors        972          102,037  
 

GSK PLC

     Pharmaceuticals        18,054          263,167  
a  

Haleon PLC

     Personal Products      22,491          70,110  
 

Halma PLC

     Electronic Equipment, Instruments & Components        1,719          39,242  
 

Hargreaves Lansdown PLC

     Capital Markets        1,719          16,641  
 

Hikma Pharmaceuticals PLC

     Pharmaceuticals        765          11,644  
 

HomeServe PLC

     Commercial Services & Supplies        1,233          16,297  
 

Howden Joinery Group PLC

     Trading Companies & Distributors        2,592          14,618  
 

HSBC Holdings PLC

     Banks        91,242          475,961  
 

IMI PLC

     Machinery        1,161          14,503  
 

Imperial Brands PLC

     Tobacco        4,284          88,710  
 

Informa PLC

     Media        6,642          38,496  
 

InterContinental Hotels Group PLC

     Hotels, Restaurants & Leisure        837          40,821  
 

Intermediate Capital Group PLC

     Capital Markets        1,260          13,823  
a  

International Consolidated Airlines Group SA

     Airlines        5,151          5,444  
 

Intertek Group PLC

     Professional Services        729          30,167  

 

           
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             195


FRANKLIN TEMPLETON ETF TRUST

SCHEDULE OF INVESTMENTS (UNAUDITED)

 

Franklin FTSE Europe ETF (continued)

 

           Industry      Shares        Value  
    Common Stocks (continued)                       
    United Kingdom (continued)                       
 

ITV PLC

     Media        17,073        $ 10,917  
 

J Sainsbury PLC

     Food & Staples Retailing        7,659          14,902  
 

JD Sports Fashion PLC

     Specialty Retail        11,583          12,956  
 

Johnson Matthey PLC

     Chemicals        810          16,570  
a,b,c  

Just Eat Takeaway.com NV, 144A, Reg S

     Internet & Direct Marketing Retail        819          12,979  
 

Kingfisher PLC

     Specialty Retail        8,973          22,076  
 

Land Securities Group PLC

     Equity Real Estate Investment Trusts (REITs      3,240          18,873  
 

Legal & General Group PLC

     Insurance        26,856          64,905  
 

Lloyds Banking Group PLC

     Banks        308,025          142,319  
 

London Stock Exchange Group PLC

     Capital Markets        1,647          140,244  
 

M&G PLC

     Diversified Financial Services        11,826          21,987  
 

Melrose Industries PLC

     Industrial Conglomerates        17,289          19,724  
 

Mondi PLC

     Paper & Forest Products        2,223          34,593  
 

National Grid PLC

     Multi-Utilities        16,434          170,794  
 

NatWest Group PLC

     Banks        23,040          58,100  
 

Next PLC

     Multiline Retail        549          29,423  
a  

NMC Health PLC

     Health Care Providers & Services        1,159           
a  

Ocado Group PLC

     Food & Staples Retailing        2,817          14,858  
 

Pearson PLC

     Media        3,411          33,005  
 

Pennon Group PLC

     Water Utilities        1,125          9,883  
a,b  

Pepco Group NV, 144A

     Multiline Retail        486          2,942  
 

Persimmon PLC

     Household Durables        1,440          19,892  
 

Phoenix Group Holdings PLC

     Insurance        3,195          18,789  
 

Prudential PLC

     Insurance        12,429          124,010  
 

Reckitt Benckiser Group PLC

     Household Products        3,240          216,141  
 

RELX PLC

     Professional Services        8,397          206,406  
 

Renishaw PLC

     Electronic Equipment, Instruments & Components        153          6,005  
 

Rentokil Initial PLC

     Commercial Services & Supplies        8,442          44,999  
 

Rightmove PLC

     Interactive Media & Services        3,726          20,056  
a  

Rolls-Royce Holdings PLC

     Aerospace & Defense        37,872          29,420  
 

Royal Mail PLC

     Air Freight & Logistics        4,320          8,895  
 

Schroders PLC

     Capital Markets        3,017          13,111  
 

Segro PLC

     Equity Real Estate Investment Trusts (REITs      5,508          46,299  
 

Severn Trent PLC

     Water Utilities        1,197          31,468  
 

Smith & Nephew PLC

     Health Care Equipment & Supplies        3,915          45,910  
 

Smiths Group PLC

     Industrial Conglomerates        1,701          28,672  
 

Spirax-Sarco Engineering PLC

     Machinery        333          38,660  
 

SSE PLC

     Electric Utilities        4,833          82,410  
 

St. James’s Place Capital PLC

     Capital Markets        2,403          27,790  
 

Standard Chartered PLC

     Banks        11,097          70,213  
 

Tate & Lyle PLC

     Food Products        1,828          13,876  
 

Taylor Wimpey PLC

     Household Durables        16,461          16,225  
 

Tesco PLC

     Food & Staples Retailing        33,867          78,182  
 

The Sage Group PLC

     Software        4,761          37,054  
 

Unilever PLC

     Personal Products        11,475          508,411  
 

UNITE Group PLC

     Equity Real Estate Investment Trusts (REITs      1,449          13,886  
 

United Utilities Group PLC

     Water Utilities        3,105          30,807  
 

Vodafone Group PLC

     Wireless Telecommunication Services        113,328          127,925  
 

Weir Group PLC

     Machinery        1,188          18,653  
 

Whitbread PLC

     Hotels, Restaurants & Leisure        918          23,590  
a  

Wise PLC, A

     IT Services        2,025          14,933  
 

WPP PLC

     Media        4,923          41,217  
            

 

 

 
               7,368,774  
            

 

 

 
    United States 0.3%                       
 

Stellantis NV

     Automobiles        9,297          111,771  
            

 

 

 
 

Total Common Stocks
(Cost $51,342,130)

             35,878,166  
            

 

 

 

 

           
196             

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FRANKLIN TEMPLETON ETF TRUST

SCHEDULE OF INVESTMENTS (UNAUDITED)

 

Franklin FTSE Europe ETF (continued)

 

           Industry        Shares        Value  
 

Preferred Stocks 0.6%

            
    Germany 0.6%                         
e  

Bayerische Motoren Werke AG, 8.700%, pfd.

     Automobiles          261        $ 17,106  
e  

Fuchs Petrolub SE, 3.962%, pfd.

     Chemicals          315          8,023  
e  

Henkel AG & Co. KGaA, 3.032%, pfd.

     Household Products          792          47,344  
e  

Sartorius AG, 0.353%, pfd.

     Health Care Equipment & Supplies          108          37,782  
e  

Sixt SE, 9.740%, pfd.

     Road & Rail          72          3,305  
e  

Volkswagen AG, 5.981%, pfd.

     Automobiles          909          112,559  
              

 

 

 
                 226,119  
              

 

 

 
    Spain 0.0%                         
a  

Grifols SA, pfd., B

     Biotechnology          1,170          7,393  
              

 

 

 
 

Total Preferred Stocks (Cost $364,977)

               233,512  
              

 

 

 
    Right 0.0%                         
    Sweden 0.0%                         
a  

Securitas AB, rts., 10/11/2022

     Commercial Services & Supplies          4,960          2,069  
              

 

 

 
 

Total Rights (Cost $3,371)

               2,069  
              

 

 

 
 

Total Investments (Cost $51,710,478) 98.8%

               36,113,747  
 

Other Assets, less Liabilities 1.2%

               441,377  
              

 

 

 
 

Net Assets 100.0%

             $ 36,555,124  
              

 

 

 

Rounds to less than 0.1% of net assets.

aNon-income producing.

bSecurity was purchased pursuant to Rule 144A under the Securities Act of 1933 and may be sold in transactions exempt from registration only to qualified institutional buyers or in a public offering registered under the Securities Act of 1933. At September 30, 2022, the value of was $873,635, representing 2.4% of net assets.

cSecurity was purchased pursuant to Regulation S under the Securities Act of 1933, which exempts from registration securities offered and sold outside of the United States. Such a security cannot be sold in the United States without either an effective registration statement filed pursuant to the Securities Act of 1933, or pursuant to an exemption from registration. At September 30, 2022, the value of was $233,367, representing 0.6% of net assets.

dFair valued using significant unobservable inputs. See Note 9 regarding fair value measurements.

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

At September 30, 2022, the Fund had the following futures contracts outstanding. See Note 1(c).

 

Futures Contracts                                   
Description    Type      Number of
Contracts
     Notional
Amount*
     Expiration
Date
     Value/Unrealized
Appreciation
(Depreciation)
 
Index Contracts                                   

EURO STOXX 50 Index

     Long        10      $ 324,754        12/16/22      $ (22,195

FTSE 100 Index

     Long        2        154,373        12/16/22        (10,808
              

 

 

 

Total Futures Contracts

               $ (33,003
              

 

 

 

*As of period end.

See Note 8 regarding other derivative information.

See Abbreviations on page 332.

 

           
franklintempleton.com  

The accompanying notes are an integral part of these financial statements.    |   Semiannual Report

             197


FRANKLIN TEMPLETON ETF TRUST

 

Financial Highlights

 

Franklin FTSE Europe Hedged ETF

 

   

Six Months Ended

September 30, 2022

(unaudited)

     Year Ended March 31,  
      2022      2021      2020      2019      2018a  
Per share operating performance
(for a share outstanding throughout the period)
                
Net asset value, beginning of period   $ 27.12      $ 25.72      $ 19.15      $ 22.81      $ 23.88      $ 25.05  
 

 

 

 
Income from investment operationsb:                 

Net investment incomec

    0.54        0.76        0.59        0.73        0.79        0.25  

Net realized and unrealized gains (losses)

    (3.75      1.51        6.45        (2.92      0.62        (1.40
 

 

 

 

Total from investment operations

    (3.21      2.27        7.04        (2.19      1.41        (1.15
 

 

 

 
Less distributions from:                 

Net investment income

    (0.24      (0.87      (0.47      (1.47      (0.38      (0.02

Net realized gains

                                (2.10      d 
 

 

 

 
Total Distributions     (0.24      (0.87      (0.47      (1.47      (2.48      (0.02
 

 

 

 
Net asset value, end of period   $ 23.67      $ 27.12      $ 25.72      $ 19.15      $ 22.81      $ 23.88  
 

 

 

 

Total return

    (11.84)%        8.75%        36.92%        (10.67)%        6.98%        (4.61)%  
Ratios to average net assetse                 

Expenses before waiver and payments by affiliates

    0.09%        0.09%        0.09%        0.09%        0.09%        0.09%  

Expenses net of waiver and payments by affiliates

    0.09%        0.09%        0.09%        0.09%        0.09%        0.09%  

Net investment income

    4.19%        2.77%        2.58%        3.10%        3.28%        2.47%  
Supplemental data                 

Net assets, end of period (000’s)

    $14,204        $21,695        $15,429        $3,831        $4,563        $33,428  

Portfolio turnover ratef

    3.56% g       11.67% g       12.87% g       14.81% g       26.81%        5.33%  

aFor the period November 2, 2017 (commencement of operations) to March 31, 2018.

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.

dAmount rounds to less than $0.001 per share.

eRatios are annualized for periods less than one year.

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

 

gPortfolio turnover rate excluding cash creations was as follows:     1.47%        11.67%        12.87%        14.81%                                          

 

           
198             

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 FTSE Europe Hedged ETF

 

           Industry      Shares        Value  
    Common Stocks 98.9%                       
    Australia 1.6%                       
 

Glencore PLC

     Metals & Mining        23,208        $ 123,875  
 

Rio Tinto PLC

     Metals & Mining        1,929          105,427  
            

 

 

 
               229,302  
            

 

 

 
    Austria 0.3%                       
 

Andritz AG

     Machinery        123          5,259  
 

Erste Group Bank AG

     Banks        579          12,842  
 

OMV AG

     Oil, Gas & Consumable Fuels        252          9,226  
 

Raiffeisen Bank International AG

     Banks        222          2,655  
 

Telekom Austria AG

     Diversified Telecommunication Services        240          1,390  
 

Verbund AG

     Electric Utilities        117          10,023  
 

Voestalpine AG

     Metals & Mining        210          3,602  
            

 

 

 
               44,997  
            

 

 

 
    Belgium 1.3%                       
 

Ackermans & van Haaren NV

     Diversified Financial Services        39          4,971  
 

Ageas SA/NV

     Insurance        324          11,884  
 

Anheuser-Busch InBev SA/NV

     Beverages        1,533          70,202  
 

Colruyt SA

     Food & Staples Retailing        87          1,918  
 

D’ieteren Group

     Distributors        42          5,978  
 

Elia Group SA/NV

     Electric Utilities        66          7,785  
 

Groupe Bruxelles Lambert SA

     Diversified Financial Services        177          12,464  
 

KBC Groep NV

     Banks        486          23,167  
 

Proximus SADP

     Diversified Telecommunication Services        240          2,491  
 

Sofina SA

     Diversified Financial Services        27          4,695  
 

Solvay SA

     Chemicals        123          9,596  
 

UCB SA

     Pharmaceuticals        213          14,840  
 

Umicore SA

     Chemicals        363          10,715  
 

Warehouses De Pauw CVA

     Equity Real Estate Investment Trusts (REITs      252          6,201  
            

 

 

 
               186,907  
            

 

 

 
    Bermuda 0.0%                       
 

Hiscox Ltd.

     Insurance        594          5,851  
            

 

 

 
    Chile 0.1%                       
 

Antofagasta PLC

     Metals & Mining        618          7,695  
            

 

 

 
    Denmark 4.0%                       
 

AP Moller-Maersk A/S, A

     Marine        5          8,880  
 

AP Moller-Maersk A/S, B

     Marine        9          16,441  
 

Carlsberg AS, B

     Beverages        165          19,431  
 

Chr. Hansen Holding AS

     Chemicals        183          9,037  
 

Coloplast AS, B

     Health Care Equipment & Supplies        237          24,225  
 

Danske Bank AS

     Banks        1,167          14,582  
 

DSV A/S

     Air Freight & Logistics        333          39,311  
a  

Genmab A/S

     Biotechnology        117          37,937  
 

GN Store Nord AS

     Health Care Equipment & Supplies        228          4,028  
 

H Lundbeck A/S

     Pharmaceuticals        408          1,307  
a  

H Lundbeck A/S, A

     Pharmaceuticals        102          304  
 

Novo Nordisk AS, B

     Pharmaceuticals        2,772          278,080  
 

Novozymes AS

     Chemicals        351          17,721  
b  

Orsted AS, 144A

     Electric Utilities        333          26,654  
 

Pandora AS

     Textiles, Apparel & Luxury Goods        159          7,523  
 

Rockwool International AS, B

     Building Products        12          1,902  
 

Royal Unibrew A/S

     Beverages        87          5,673  
 

SimCorp A/S

     Software        66          3,738  
 

Tryg AS

     Insurance        636          13,148  
 

Vestas Wind Systems A/S

     Electrical Equipment        1,782          33,250  

 

           
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Semiannual Report

             199


FRANKLIN TEMPLETON ETF TRUST

SCHEDULE OF INVESTMENTS (UNAUDITED)

 

Franklin FTSE Europe Hedged ETF (continued)

 

           Industry      Shares        Value  
    Common Stocks (continued)                       
    Denmark (continued)                       
a  

William Demant Holding AS

     Health Care Equipment & Supplies        177        $ 4,407  
            

 

 

 
               567,579  
            

 

 

 
    Finland 2.2%                       
 

Elisa OYJ

     Diversified Telecommunication Services        255          11,579  
c  

Fortum OYJ, Reg S

     Electric Utilities        765          10,320  
 

Huhtamaki OYJ

     Containers & Packaging        168          5,375  
 

Kesko OYJ

     Food & Staples Retailing        480          9,002  
 

Kojamo Oyj

     Real Estate Management & Development        333          4,280  
 

Kone OYJ, B

     Machinery        696          27,007  
 

Metso Outotec Oyj

     Machinery        1,077          7,234  
 

Neste Oil OYJ

     Oil, Gas & Consumable Fuels        738          32,389  
 

Nokia OYJ

     Communications Equipment        9,999          43,301  
 

Nordea Bank Abp

     Banks        6,366          54,881  
 

Orion OYJ

     Pharmaceuticals        180          7,597  
 

Sampo OYJ, A

     Insurance        870          37,296  
 

Stora Enso OYJ, R

     Paper & Forest Products        1,017          13,042  
 

UPM-Kymmene OYJ

     Paper & Forest Products        945          30,161  
 

Valmet Oyj

     Machinery        297          6,061  
 

Wartsila OYJ ABP

     Machinery        870          5,610  
            

 

 

 
               305,135  
            

 

 

 
    France 16.3%                       
a  

Accor SA

     Hotels, Restaurants & Leisure        327          6,923  
a  

Aeroports de Paris SA

     Transportation Infrastructure        51          5,945  
 

Air Liquide SA

     Chemicals        906          104,342  
 

Airbus SE

     Aerospace & Defense        990          86,210  
b  

ALD SA, 144A

     Road & Rail        147          1,362  
 

Alstom SA

     Machinery        537          8,809  
b  

Amundi SA, 144A

     Capital Markets        99          4,166  
 

Arkema SA

     Chemicals        117          8,606  
 

AXA SA

     Insurance        3,279          72,196  
 

Biomerieux

     Health Care Equipment & Supplies        78          6,220  
 

BNP Paribas SA

     Banks        1,896          80,993  
 

Bollore

     Entertainment        1,752          8,105  
 

Bouygues SA

     Construction & Engineering        378          9,943  
 

Bureau Veritas SA

     Professional Services        504          11,346  
 

Capgemini SE

     IT Services        285          46,208  
 

Carrefour SA

     Food & Staples Retailing        1,047          14,580  
 

Cie Generale des Etablissements Michelin SCA

     Auto Components        1,242          28,173  
 

Compagnie de Saint-Gobain

     Building Products        813          29,509  
 

Covivio

     Equity Real Estate Investment Trusts (REITs      90          4,366  
 

Credit Agricole SA

     Banks        2,148          17,600  
 

Danone SA

     Food Products        1,080          51,388  
 

Dassault Aviation SA

     Aerospace & Defense        42          4,814  
 

Dassault Systemes SE

     Software        1,185          41,484  
 

Edenred

     IT Services        441          20,461  
 

EDF SA

     Electric Utilities        1,119          13,034  
 

Eiffage SA

     Construction & Engineering        132          10,671  
 

Engie SA

     Multi-Utilities        2,946          34,177  
 

EssilorLuxottica SA

     Textiles, Apparel & Luxury Goods        528          72,597  
 

Eurazeo SE

     Diversified Financial Services        84          4,431  
a  

Euroapi SA

     Pharmaceuticals        75          1,252  
a  

Faurecia SE

     Auto Components        270          2,970  
 

Gecina SA

     Equity Real Estate Investment Trusts (REITs      93          7,330  
 

Getlink SE

     Transportation Infrastructure        810          12,621  
 

Hermes International

     Textiles, Apparel & Luxury Goods        55          65,573  
 

ICADE

     Equity Real Estate Investment Trusts (REITs      57          2,133  

 

           
200             

Semiannual Report

  franklintempleton.com


FRANKLIN TEMPLETON ETF TRUST

SCHEDULE OF INVESTMENTS (UNAUDITED)

 

Franklin FTSE Europe Hedged ETF (continued)

 

           Industry      Shares        Value  
    Common Stocks (continued)                       
    France (continued)                       
 

Ipsen SA

     Pharmaceuticals        60        $ 5,578  
a  

JCDecaux SA

     Media        129          1,525  
 

Kering SA

     Textiles, Apparel & Luxury Goods        129          57,949  
 

Klepierre SA

     Equity Real Estate Investment Trusts (REITs      333          5,839  
b  

La Francaise des Jeux SAEM, 144A

     Hotels, Restaurants & Leisure        156          4,657  
 

Legrand SA

     Electrical Equipment        474          30,954  
 

L’Oreal SA

     Personal Products        438          141,706  
 

LVMH Moet Hennessy Louis Vuitton SE

     Textiles, Apparel & Luxury Goods        442          264,306  
b  

Neoen SA, 144A

     Independent Power Producers & Energy Traders        75          2,523  
 

Orange SA

     Diversified Telecommunication Services        3,399          30,794  
 

Pernod Ricard SA

     Beverages        363          67,158  
 

Publicis Groupe

     Media        402          19,258  
 

Remy Cointreau SA

     Beverages        45          7,534  
a  

Renault SA

     Automobiles        339          9,289  
 

Rexel SA

     Trading Companies & Distributors        429          6,506  
 

Safran SA

     Aerospace & Defense        618          56,916  
 

Sanofi

     Pharmaceuticals        1,932          148,386  
 

Sartorius Stedim Biotech

     Life Sciences Tools & Services        42          13,047  
 

Schneider Electric SE

     Electrical Equipment        942          107,916  
 

SCOR SE

     Insurance        273          3,976  
 

SEB SA

     Household Durables        51          3,233  
 

Societe Generale SA

     Banks        1,344          26,879  
 

Sodexo SA

     Hotels, Restaurants & Leisure        156          11,792  
a  

SOITEC

     Semiconductors & Semiconductor Equipment        45          5,231  
 

Somfy SA

     Electrical Equipment        15          1,397  
 

Teleperformance

     Professional Services        102          26,070  
 

Thales SA

     Aerospace & Defense        177          19,594  
 

TotalEnergies SE

     Oil, Gas & Consumable Fuels        4,194          198,345  
a  

Ubisoft Entertainment SA

     Entertainment        171          4,744  
a  

Unibail-Rodamco-Westfield

     Equity Real Estate Investment Trusts (REITs      186          7,814  
 

Valeo

     Auto Components        429          6,569  
 

Veolia Environnement SA

     Multi-Utilities        1,104          21,317  
 

Vinci SA

     Construction & Engineering        882          71,863  
 

Vivendi SA

     Media        1,218          9,512  
 

Wendel SE

     Diversified Financial Services        45          3,256  
a,b,c  

Worldline SA, 144A, Reg S

     IT Services        432          17,216  
            

 

 

 
               2,321,187  
            

 

 

 
    Germany 11.2%                       
 

1&1 Drillisch AG

     Wireless Telecommunication Services        84          1,117  
 

Adidas AG

     Textiles, Apparel & Luxury Goods        297          34,589  
 

Allianz SE

     Insurance        723          114,601  
 

Aroundtown SA

     Real Estate Management & Development        1,926          4,259  
 

BASF SE

     Chemicals        1,623          62,963  
 

Bayer AG

     Pharmaceuticals        1,734          80,544  
 

Bayerische Motoren Werke AG

     Automobiles        570          39,082  
 

Bechtle AG

     IT Services        147          5,347  
 

Beiersdorf AG

     Personal Products        177          17,505  
 

Brenntag AG

     Trading Companies & Distributors        273          16,683  
 

Carl Zeiss Meditec AG

     Health Care Equipment & Supplies        66          6,947  
a  

Commerzbank AG

     Banks        1,845          13,270  
 

Continental AG

     Auto Components        192          8,643  
b  

Covestro AG, 144A

     Chemicals        318          9,203  
a  

CTS Eventim AG & Co. KGaA

     Entertainment        102          4,249  
 

Daimler AG

     Automobiles        1,491          76,465  
a  

Daimler Truck Holding AG

     Machinery        744          17,019  
a,b  

Delivery Hero SE, 144A

     Internet & Direct Marketing Retail        339          12,600  

 

           
franklintempleton.com  

Semiannual Report

             201


FRANKLIN TEMPLETON ETF TRUST

SCHEDULE OF INVESTMENTS (UNAUDITED)

 

Franklin FTSE Europe Hedged ETF (continued)

 

           Industry        Shares        Value  
    Common Stocks (continued)                         
    Germany (continued)                         
 

Deutsche Bank AG

     Capital Markets          3,591        $ 26,898  
 

Deutsche Boerse AG

     Capital Markets          327          53,898  
a  

Deutsche Lufthansa AG

     Airlines          1,062          6,157  
 

Deutsche Post AG

     Air Freight & Logistics          1,716          52,307  
 

Deutsche Telekom AG

     Diversified Telecommunication Services          6,003          102,868  
 

Deutsche Wohnen AG

     Real Estate Management & Development          87          1,662  
b  

DWS Group GmbH & Co. KGaA, 144A

     Capital Markets          63          1,516  
 

E.ON SE

     Multi-Utilities          3,927          30,377  
 

Evonik Industries AG

     Chemicals          339          5,729  
a  

Evotec SE

     Life Sciences Tools & Services          285          5,013  
 

Fielmann AG

     Specialty Retail          39          1,259  
a  

Fraport AG Frankfurt Airport Services Worldwide

     Transportation Infrastructure          63          2,295  
 

Fresenius Medical Care AG & Co. KGaA

     Health Care Providers & Services          360          10,238  
 

Fresenius SE & Co. KGaA

     Health Care Providers & Services          723          15,547  
 

Fuchs Petrolub SE

     Chemicals          60          1,325  
 

GEA Group AG

     Machinery          291          9,505  
 

Hannover Rueck SE

     Insurance          105          15,862  
 

HeidelbergCement AG

     Construction Materials          261          10,445  
 

Hella GmbH & Co. KGaA

     Auto Components          39          2,602  
a  

HelloFresh SE

     Internet & Direct Marketing Retail          279          5,945  
 

Henkel AG & Co. KGaA

     Household Products          180          10,280  
 

Hochtief AG

     Construction & Engineering          39          1,867  
 

Infineon Technologies AG

     Semiconductors & Semiconductor Equipment          2,310          51,393  
 

KION Group AG

     Machinery          135          2,621  
 

Knorr-Bremse AG

     Machinery          117          5,087  
 

Lanxess AG

     Chemicals          156          4,595  
 

LEG Immobilien AG

     Real Estate Management & Development          132          7,935  
 

Merck KGaA

     Pharmaceuticals          228          37,256  
a  

METRO AG

     Food & Staples Retailing          240          1,683  
 

MTU Aero Engines AG

     Aerospace & Defense          96          14,507  
 

Muenchener Rueckversicherungs-Gesellschaft Aktiengesellschaft in Muenchen

     Insurance          249          60,373  
 

Nemetschek AG

     Software          93          4,485  
 

Puma SE

     Textiles, Apparel & Luxury Goods          177          8,318  
 

Rational AG

     Machinery          9          4,413  
 

Rheinmetall AG

     Industrial Conglomerates          78          12,089  
 

RWE AG

     Multi-Utilities          1,116          41,315  
 

SAP SE

     Software          1,968          162,179  
 

Sartorius AG

     Health Care Equipment & Supplies          4          1,211  
b,c  

Scout24 AG, 144A, Reg S

     Interactive Media & Services          138          6,992  
 

Siemens AG

     Industrial Conglomerates          1,338          132,650  
a  

Siemens Energy AG

     Electrical Equipment          759          8,465  
b  

Siemens Healthineers AG, 144A

     Health Care Equipment & Supplies          492          21,342  
 

Sixt SE

     Road & Rail          21          1,688  
 

Symrise AG

     Chemicals          231          22,732  
a  

Talanx AG

     Insurance          90          3,209  
 

Telefonica Deutschland Holding AG

     Diversified Telecommunication Services          1,638          3,326  
a  

thyssenkrupp AG

     Metals & Mining          897          3,854  
 

Traton SE

     Machinery          93          1,115  
a  

TUI AG

     Hotels, Restaurants & Leisure          2,076          2,506  
 

Uniper SE

     Independent Power Producers & Energy Traders          135          517  
 

United Internet AG

     Diversified Telecommunication Services          180          3,396  
 

Vantage Towers AG

     Diversified Telecommunication Services          159          4,134  
 

Varta AG

     Electrical Equipment          24          690  
 

Volkswagen AG

     Automobiles          51          8,426  
 

Vonovia SE

     Real Estate Management & Development          1,413          30,744  
 

Wacker Chemie AG

     Chemicals          27          2,808  

 

           
202             

Semiannual Report

  franklintempleton.com


FRANKLIN TEMPLETON ETF TRUST

SCHEDULE OF INVESTMENTS (UNAUDITED)

 

Franklin FTSE Europe Hedged ETF (continued)

 

           Industry        Shares        Value  
    Common Stocks (continued)                         
    Germany (continued)                         
a,b  

Zalando SE, 144A

     Internet & Direct Marketing Retail          393        $ 7,789  
              

 

 

 
                 1,584,524  
              

 

 

 
    Ireland 1.4%                         
 

AIB Group PLC

     Banks          1,656          4,033  
 

Bank of Ireland Group PLC

     Banks          1,623          10,471  
 

CRH PLC

     Construction Materials          1,356          44,049  
 

DCC PLC

     Industrial Conglomerates          177          9,265  
 

Experian PLC

     Professional Services          1,632          48,478  
a  

Flutter Entertainment PLC

     Hotels, Restaurants & Leisure          312          34,613  
 

Glanbia PLC

     Food Products          318          3,670  
 

Kerry Group

     Food Products          273          24,391  
 

Kingspan Group PLC

     Building Products          267          12,121  
 

Smurfit Kappa Group PLC

     Containers & Packaging          462          13,316  
              

 

 

 
                 204,407  
              

 

 

 
    Isle Of Man 0.1%                         
 

GVC Holdings PLC

     Hotels, Restaurants & Leisure          1,038          12,584  
              

 

 

 
    Italy 3.3%                         
 

A2A SpA

     Multi-Utilities          2,658          2,603  
 

Amplifon SpA

     Health Care Providers & Services          231          6,087  
 

Assicurazioni Generali SpA

     Insurance          2,445          33,581  
 

Atlantia SpA

     Transportation Infrastructure          951          21,065  
 

Banca Mediolanum SpA

     Diversified Financial Services          417          2,643  
 

Buzzi Unicem SpA

     Construction Materials          159          2,272  
 

Davide Campari-Milano NV

     Beverages          882          7,873  
 

De’ Longhi SpA

     Household Durables          126          1,860  
 

DiaSorin SpA

     Health Care Equipment & Supplies          39          4,386  
 

Enel SpA

     Electric Utilities          13,782          57,030  
 

Eni SpA

     Oil, Gas & Consumable Fuels          4,323          46,204  
 

Ferrari NV

     Automobiles          213          40,001  
 

FinecoBank Banca Fineco SpA

     Banks          1,083          13,511  
 

Hera SpA

     Multi-Utilities          1,344          2,878  
b,c  

Infrastrutture Wireless Italiane SpA, 144A, Reg S

     Diversified Telecommunication Services          624          5,483  
 

Interpump Group SpA

     Machinery          144          4,715  
 

Intesa Sanpaolo SpA

     Banks          29,445          49,119  
 

Italgas Reti SpA

     Gas Utilities          882          4,127  
 

Leonardo SpA

     Aerospace & Defense          708          5,044  
 

Mediobanca Banca di Credito Finanziario SpA

     Banks          1,140          9,001  
 

Moncler SpA

     Textiles, Apparel & Luxury Goods          360          14,950  
a,b  

Nexi SpA, 144A

     IT Services          1,344          10,984  
b  

Pirelli & C SpA, 144A

     Auto Components          843          2,775  
b,c  

Poste Italiane SpA, 144A, Reg S

     Insurance          825          6,296  
 

Prysmian SpA

     Electrical Equipment          468          13,580  
 

Recordati Industria Chimica e Farmaceutica SpA

     Pharmaceuticals          174          6,425  
 

Reply SpA

     IT Services          39          4,111  
 

Snam SpA

     Gas Utilities          3,951          16,048  
a  

Telecom Italia SpA

     Diversified Telecommunication Services          19,608          3,655  
a  

Telecom Italia SpA/Milano

     Diversified Telecommunication Services          10,329          1,872  
 

Tenaris SA

     Energy Equipment & Services          828          10,760  
 

Terna - Rete Elettrica Nazionale

     Electric Utilities          2,499          15,301  
 

UniCredit SpA

     Banks          3,477          35,622  
 

UnipolSai Assicurazioni SpA

     Insurance          756          1,578  
              

 

 

 
                 463,440  
              

 

 

 
    Luxembourg 0.3%                         
 

ArcelorMittal SA

     Metals & Mining          927          18,767  

 

           
franklintempleton.com  

Semiannual Report

             203


FRANKLIN TEMPLETON ETF TRUST

SCHEDULE OF INVESTMENTS (UNAUDITED)

 

Franklin FTSE Europe Hedged ETF (continued)

 

           Industry        Shares        Value  
    Common Stocks (continued)                         
    Luxembourg (continued)                         
 

Eurofins Scientific SE

     Life Sciences Tools & Services          216        $ 12,933  
a  

RTL Group SA

     Media          66          2,104  
a  

SUSE SA

     Software          63          937  
              

 

 

 
                 34,741  
              

 

 

 
    Mexico 0.0%                         
 

Fresnillo PLC

     Metals & Mining          336          2,885  
              

 

 

 
    Netherlands 9.1%                         
 

Aalberts NV

     Machinery          171          5,657  
b  

ABN AMRO Bank NV, 144A

     Banks          735          6,645  
a,b  

Adyen NV, 144A

     IT Services          52          66,316  
 

Aegon NV

     Insurance          3,141          12,622  
 

Akzo Nobel NV

     Chemicals          312          17,826  
a  

Argenx SE

     Biotechnology          96          34,656  
 

ASM International NV

     Semiconductors & Semiconductor Equipment          81          18,549  
 

ASML Holding NV

     Semiconductors & Semiconductor Equipment          714          303,290  
 

ASR Nederland NV

     Insurance          234          9,071  
 

BE Semiconductor Industries NV

     Semiconductors & Semiconductor Equipment          147          6,421  
b  

CTP NV, 144A

     Real Estate Management & Development          111          1,148  
b,c  

Euronext NV, 144A, Reg S

     Capital Markets          144          9,184  
a  

EXOR NV

     Diversified Financial Services          183          11,739  
 

Heineken Holding NV

     Beverages          186          12,846  
 

Heineken NV

     Beverages          423          37,237  
 

IMCD Group NV

     Trading Companies & Distributors          102          12,251  
 

ING Groep NV

     Banks          6,708          58,210  
 

JDE Peet’s BV

     Food Products          144          4,224  
 

Koninklijke Ahold Delhaize NV

     Food & Staples Retailing          1,794          45,932  
 

Koninklijke DSM NV

     Chemicals          309          35,554  
 

Koninklijke KPN NV

     Diversified Telecommunication Services          5,790          15,723  
 

Koninklijke Philips NV

     Health Care Equipment & Supplies          1,572          24,640  
 

Koninklijke Vopak NV

     Oil, Gas & Consumable Fuels          114          2,088  
 

NN Group NV

     Insurance          528          20,675  
 

OCI NV

     Chemicals          174          6,402  
 

Prosus NV

     Internet & Direct Marketing Retail          1,512          79,942  
a  

QIAGEN NV

     Life Sciences Tools & Services          390          16,421  
 

Randstad NV

     Professional Services          195          8,516  
 

Shell PLC

     Oil, Gas & Consumable Fuels          12,981          325,533  
b  

Signify NV, 144A

     Electrical Equipment          225          5,870  
 

Universal Music Group NV

     Entertainment          1,323          25,048  
 

Wolters Kluwer NV

     Professional Services          459          44,930  
              

 

 

 
                 1,285,166  
              

 

 

 
    Nigeria 0.0%                         
 

Airtel Africa PLC, 144A

     Wireless Telecommunication Services          2,001          2,886  
              

 

 

 
    Norway 1.3%                         
a  

Adevinta ASA, B

     Interactive Media & Services          468          2,791  
 

Aker ASA

     Diversified Financial Services          42          2,721  
 

Aker BP ASA

     Oil, Gas & Consumable Fuels          543          15,577  
a,b  

AutoStore Holdings Ltd., 144A

     Machinery          1,041          1,148  
 

DNB Bank ASA

     Banks          1,815          28,789  
 

Equinor ASA

     Oil, Gas & Consumable Fuels          1,659          54,517  
 

Gjensidige Forsikring ASA

     Insurance          294          5,045  
 

Kongsberg Gruppen ASA

     Aerospace & Defense          135          4,113  
 

Leroy Seafood Group ASA

     Food Products          438          1,719  
 

Mowi ASA

     Food Products          759          9,647  
a  

Nordic Semiconductor ASA

     Semiconductors & Semiconductor Equipment          270          3,605  
 

Norsk Hydro ASA

     Metals & Mining          2,373          12,813  

 

           
204             

Semiannual Report

  franklintempleton.com


FRANKLIN TEMPLETON ETF TRUST

SCHEDULE OF INVESTMENTS (UNAUDITED)

 

Franklin FTSE Europe Hedged ETF (continued)

 

           Industry      Shares        Value  
    Common Stocks (continued)                       
    Norway (continued)                       
 

Orkla ASA

     Food Products        1,350        $ 9,812  
 

Salmar ASA

     Food Products        93          3,134  
 

Schibsted ASA, A

     Media        132          1,790  
 

Schibsted ASA, B

     Media        162          2,040  
 

Telenor ASA

     Diversified Telecommunication Services        1,125          10,289  
 

TOMRA Systems ASA

     Commercial Services & Supplies        414          7,309  
 

Var Energi ASA

     Oil, Gas & Consumable Fuels        690          2,247  
 

Yara International ASA

     Chemicals        288          10,130  
            

 

 

 
               189,236  
            

 

 

 
    Poland 0.3%                       
a,b  

Allegro.eu, 144A

     Internet & Direct Marketing Retail        708          3,088  
 

Bank Pekao SA

     Banks        285          3,503  
a,b  

Dino Polska SA, 144A

     Food & Staples Retailing        84          5,136  
a  

InPost SA

     Air Freight & Logistics        381          2,245  
 

KGHM Polska Miedz SA

     Metals & Mining        246          4,366  
 

LPP SA

     Textiles, Apparel & Luxury Goods        2          3,157  
 

Polski Koncern Naftowy Orlen SA

     Oil, Gas & Consumable Fuels        738          8,000  
a  

Polskie Gornictwo Naftowe i Gazownictwo SA

     Oil, Gas & Consumable Fuels        2,973          2,936  
 

Powszechna Kasa Oszczednosci Bank Polski SA

     Banks        1,518          6,713  
 

Powszechny Zaklad Ubezpieczen SA

     Insurance        969          4,544  
 

Santander Bank Polska SA

     Banks        51          2,033  
            

 

 

 
               45,721  
            

 

 

 
    Portugal 0.3%                       
 

EDP- Energias de Portugal SA

     Electric Utilities        5,013          21,805  
 

Galp Energia SGPS SA, B

     Oil, Gas & Consumable Fuels        912          8,777  
 

Jeronimo Martins SGPS SA

     Food & Staples Retailing        489          9,126  
            

 

 

 
               39,708  
            

 

 

 
    Russia 0.0%                       
d  

Evraz PLC

     Metals & Mining        1,168           
            

 

 

 
    Spain 3.7%                       
 

Acciona SA

     Electric Utilities        42          7,431  
 

ACS Actividades de Construccion y Servicios SA

     Construction & Engineering        385          8,724  
a,b  

Aena SME SA, 144A

     Transportation Infrastructure        126          13,195  
a  

Amadeus IT Group SA

     IT Services        753          35,342  
 

Banco Bilbao Vizcaya Argentaria SA

     Banks        10,833          49,035  
 

Banco Santander SA

     Banks        29,445          69,158  
 

Bankinter SA

     Banks        1,215          6,863  
 

CaixaBank SA

     Banks        7,629          24,746  
b  

Cellnex Telecom SA, 144A

     Diversified Telecommunication Services        1,065          33,167  
 

Corp. ACCIONA Energias Renovables SA

     Independent Power Producers & Energy Traders        105          3,946  
 

Corporacion Mapfre SA

     Insurance        1,707          2,659  
 

EDP Renovaveis SA

     Independent Power Producers & Energy Traders        426          8,781  
 

Enagas SA

     Gas Utilities        447          6,936  
 

Endesa SA

     Electric Utilities        561          8,475  
 

Ferrovial SA

     Construction & Engineering        831          19,041  
 

Fluidra SA

     Machinery        195          2,965  
a  

Grifols SA

     Biotechnology        564          4,907  
 

Iberdrola SA

     Electric Utilities        10,569          99,211  
 

Industria de Diseno Textil SA

     Specialty Retail        1,863          38,838  
 

Inmobiliaria Colonial SA

     Equity Real Estate Investment Trusts (REITs      585          2,829  
 

Merlin Properties Socimi SA

     Equity Real Estate Investment Trusts (REITs      576          4,461  
 

Naturgy Energy Group SA

     Gas Utilities        255          5,928  
 

Red Electrica Corp. SA

     Electric Utilities        765          11,774  
 

Repsol SA

     Oil, Gas & Consumable Fuels        2,220          25,674  

 

           
franklintempleton.com  

Semiannual Report

             205


FRANKLIN TEMPLETON ETF TRUST

SCHEDULE OF INVESTMENTS (UNAUDITED)

 

Franklin FTSE Europe Hedged ETF (continued)

 

           Industry        Shares        Value  
    Common Stocks (continued)                         
    Spain (continued)                         
a  

Siemens Gamesa Renewable Energy SA

     Electrical Equipment          399        $ 7,006  
 

Telefonica SA

     Diversified Telecommunication Services          9,027          29,855  
              

 

 

 
                 530,947  
              

 

 

 
    Sweden 5.0%                         
 

Alfa Laval AB

     Machinery          549          13,773  
a  

Alleima AB

     Metals & Mining          356          1,116  
 

Assa Abloy AB, B

     Building Products          1,626          30,725  
 

Atlas Copco AB, A

     Machinery          4,488          42,383  
 

Atlas Copco AB, B

     Machinery          2,679          22,513  
 

Axfood AB

     Food & Staples Retailing          189          4,341  
 

Beijer Ref AB

     Trading Companies & Distributors          423          5,241  
 

Boliden AB

     Metals & Mining          486          15,177  
 

Castellum AB

     Real Estate Management & Development          444          5,007  
 

Electrolux AB, B

     Household Durables          378          3,959  
 

Epiroc AB, A

     Machinery          1,107          15,975  
 

Epiroc AB, B

     Machinery          669          8,500  
 

EQT AB

     Capital Markets          504          9,951  
 

Ericsson, B

     Communications Equipment          5,337          31,495  
 

Essity AB, B

     Household Products          1,080          21,488  
b,c  

Evolution Gaming Group AB, 144A, Reg S

     Hotels, Restaurants & Leisure          285          22,774  
a  

Fastighets AB Balder, B

     Real Estate Management & Development          1,086          4,380  
 

Getinge AB, B

     Health Care Equipment & Supplies          402          6,944  
 

Hennes & Mauritz AB, B

     Specialty Retail          1,554          14,488  
 

Hexagon AB, B

     Electronic Equipment, Instruments & Components          3,321          31,332  
 

Holmen AB, B

     Paper & Forest Products          171          6,541  
 

Husqvarna AB, A

     Household Durables          36          201  
 

Husqvarna AB, B

     Household Durables          738          4,130  
 

Industrivarden AB, A

     Diversified Financial Services          399          8,115  
 

Industrivarden AB, C

     Diversified Financial Services          306          6,157  
 

Indutrade AB

     Machinery          498          8,185  
 

Investment AB Latour, B

     Industrial Conglomerates          249          4,164  
 

Investor AB, A

     Diversified Financial Services          942          14,562  
 

Investor AB, B

     Diversified Financial Services          3,225          47,537  
a  

Kinnevik AB, B

     Diversified Financial Services          426          5,666  
 

L E Lundbergforetagen AB, B

     Diversified Financial Services          132          4,810  
 

Lifco AB, B

     Industrial Conglomerates          411          5,785  
 

Nibe Industrier AB, B

     Building Products          2,577          23,245  
 

Saab AB, B

     Aerospace & Defense          159          4,980  
 

Sagax AB, B

     Real Estate Management & Development          300          4,980  
 

Sagax AB, D

     Real Estate Management & Development          165          372  
 

Sandvik AB

     Machinery          1,908          26,228  
 

Securitas AB, B

     Commercial Services & Supplies          562          3,930  
 

Skandinaviska Enskilda Banken AB, A

     Banks          2,523          24,281  
 

Skandinaviska Enskilda Banken AB, C

     Banks          30          319  
 

Skanska AB, B

     Construction & Engineering          636          7,995  
 

SKF AB, B

     Machinery          684          9,261  
 

Svenska Cellulosa AB, A

     Paper & Forest Products          36          463  
 

Svenska Cellulosa AB, B

     Paper & Forest Products          1,053          13,474  
 

Svenska Handelsbanken AB, A

     Banks          2,634          21,746  
 

Svenska Handelsbanken AB, B

     Banks          60          589  
 

Sweco AB, B

     Construction & Engineering          351          2,960  
 

Swedbank AB, A

     Banks          1,782          23,581  
 

Swedish Match AB

     Tobacco          2,619          25,960  
a  

Swedish Orphan Biovitrum AB

     Biotechnology          315          6,120  
 

Tele2 AB, B

     Wireless Telecommunication Services          978          8,460  
 

Telefonaktiebolaget LM Ericsson, A

     Communications Equipment          72          435  
 

Telia Co. AB

     Diversified Telecommunication Services          4,551          13,135  

 

           
206             

Semiannual Report

  franklintempleton.com


FRANKLIN TEMPLETON ETF TRUST

SCHEDULE OF INVESTMENTS (UNAUDITED)

 

Franklin FTSE Europe Hedged ETF (continued)

 

           Industry        Shares        Value  
    Common Stocks (continued)                         
    Sweden (continued)                         
 

Trelleborg AB, B

     Machinery          414        $ 7,830  
 

Vitrolife AB

     Biotechnology          111          1,590  
 

Volvo AB, A

     Machinery          357          5,302  
 

Volvo AB, B

     Machinery          2,676          38,119  
a  

Volvo Car AB, B

     Automobiles          957          4,202  
              

 

 

 
                 706,972  
              

 

 

 
    Switzerland 16.5%                         
 

ABB Ltd.

     Electrical Equipment          2,697          70,696  
 

Adecco Group AG

     Professional Services          282          7,853  
 

Alcon Inc.

     Health Care Equipment & Supplies          816          48,201  
 

Bachem Holding AG

     Life Sciences Tools & Services          57          3,637  
 

Baloise Holding AG

     Insurance          81          10,427  
 

Banque Cantonale Vaudoise

     Banks          51          4,855  
 

Barry Callebaut AG

     Food Products          6          11,393  
 

Belimo Holding AG

     Building Products          15          5,601  
 

BKW AG

     Electric Utilities          33          3,960  
 

Chocoladefabriken Lindt & Spruengli AG

     Food Products          4          38,852  
 

Cie Financiere Richemont SA

     Textiles, Apparel & Luxury Goods          906          86,785  
a  

Clariant AG

     Chemicals          402          6,494  
 

Coca-Cola HBC AG

     Beverages          330          6,977  
 

Credit Suisse Group AG

     Capital Markets          4,632          18,712  
 

DKSH Holding AG

     Professional Services          66          4,815  
 

Emmi AG

     Food Products          3          2,344  
 

EMS-Chemie Holding AG

     Chemicals          13          8,301  
a  

Flughafen Zurich AG

     Transportation Infrastructure          33          4,925  
 

Geberit AG

     Building Products          63          27,363  
 

Georg Fischer AG

     Machinery          145          7,012  
 

Givaudan AG

     Chemicals          16          48,817  
 

Helvetia Holding AG

     Insurance          63          5,946  
 

Holcim Ltd., B

     Construction Materials          966          40,220  
 

Julius Baer Group Ltd.

     Capital Markets          375          16,573  
 

Kuehne + Nagel International AG

     Marine          90          18,471  
 

Logitech International SA

     Technology Hardware, Storage & Peripherals          258          12,045  
 

Lonza Group AG

     Life Sciences Tools & Services          132          65,219  
 

Nestle SA

     Food Products          4,782          520,250  
 

Novartis AG

     Pharmaceuticals          3,636          279,022  
 

Partners Group Holding AG

     Capital Markets          39          31,881  
 

PSP Swiss Property AG

     Real Estate Management & Development          75          7,544  
 

Roche Holding AG, Bearer

     Pharmaceuticals          48          18,912  
 

Roche Holding AG, Non-Voting

     Pharmaceuticals          1,233          405,196  
 

Schindler Holding AG, PC

     Machinery          72          11,313  
 

Schindler Holding AG

     Machinery          33          5,029  
 

SGS SA

     Professional Services          10          21,590  
 

SIG Combibloc Group AG

     Containers & Packaging          675          13,839  
 

Sika AG

     Chemicals          270          55,056  
 

Sonova Holding AG

     Health Care Equipment & Supplies          90          20,117  
 

STMicroelectronics NV

     Semiconductors & Semiconductor Equipment          1,122          35,443  
 

Straumann Holding AG

     Health Care Equipment & Supplies          189          17,635  
 

Swatch Group AG

     Textiles, Apparel & Luxury Goods          81          3,437  
 

Swiss Life Holding AG

     Insurance          54          24,058  
 

Swiss Prime Site AG

     Real Estate Management & Development          135          10,836  
 

Swiss Re AG

     Insurance          513          38,132  
 

Swisscom AG

     Diversified Telecommunication Services          45          21,191  
 

Tecan Group AG

     Life Sciences Tools & Services          22          7,667  
 

Temenos AG

     Software          108          7,400  
 

The Swatch Group AG

     Textiles, Apparel & Luxury Goods          51          11,633  
 

UBS Group AG

     Capital Markets          5,403          79,460  

 

           
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FRANKLIN TEMPLETON ETF TRUST

SCHEDULE OF INVESTMENTS (UNAUDITED)

 

Franklin FTSE Europe Hedged ETF (continued)

 

           Industry      Shares        Value  
    Common Stocks (continued)                       
    Switzerland (continued)                       
b,c  

VAT Group AG, 144A

     Machinery        45        $ 9,318  
 

Zurich Insurance Group AG

     Insurance        264          105,949  
            

 

 

 
               2,348,402  
            

 

 

 
    United Kingdom 20.3%                       
 

3i Group PLC

     Capital Markets        1,689          20,608  
 

Abrdn PLC

     Capital Markets        3,885          6,033  
 

Admiral Group PLC

     Insurance        507          10,835  
 

Allfunds Group PLC

     Capital Markets        417          3,095  
 

Anglo American PLC

     Metals & Mining        2,139          65,317  
 

Ashtead Group PLC

     Trading Companies & Distributors        783          35,714  
 

Associated British Foods PLC

     Food Products        615          8,661  
 

AstraZeneca PLC

     Pharmaceuticals        2,622          291,055  
b  

Auto Trader Group PLC, 144A

     Interactive Media & Services        1,635          9,400  
 

AVEVA Group PLC

     Software        210          7,366  
 

Aviva PLC

     Insurance        4,956          21,477  
 

B&M European Value Retail SA

     Multiline Retail        1,653          5,648  
 

BAE Systems PLC

     Aerospace & Defense        5,595          49,328  
 

Barclays PLC

     Banks        28,632          46,121  
 

Barratt Developments PLC

     Household Durables        1,803          6,887  
 

Bellway PLC

     Household Durables        225          4,277  
 

Berkeley Group Holdings PLC

     Household Durables        183          6,735  
 

BP PLC

     Oil, Gas & Consumable Fuels        32,916          159,139  
 

British American Tobacco PLC

     Tobacco        3,975          143,169  
 

British Land Co. PLC

     Equity Real Estate Investment Trusts (REITs      1,644          6,436  
 

BT Group PLC

     Diversified Telecommunication Services        12,327          16,699  
 

Bunzl PLC

     Trading Companies & Distributors        597          18,393  
 

Burberry Group PLC

     Textiles, Apparel & Luxury Goods        699          14,108  
a  

Centrica PLC

     Multi-Utilities        10,473          8,282  
 

CNH Industrial NV

     Machinery        1,752          19,961  
 

Compass Group PLC

     Hotels, Restaurants & Leisure        3,162          63,712  
b  

ConvaTec Group PLC, 144A

     Health Care Equipment & Supplies        2,904          6,665  
 

Croda International PLC

     Chemicals        240          17,270  
 

Dechra Pharmaceuticals PLC

     Pharmaceuticals        204          5,971  
 

Derwent London PLC

     Equity Real Estate Investment Trusts (REITs      207          4,668  
 

Diageo PLC

     Beverages        4,002          169,651  
 

Direct Line Insurance Group PLC

     Insurance        2,346          4,858  
 

Dr. Martens PLC

     Textiles, Apparel & Luxury Goods        996          2,477  
 

DS Smith PLC

     Containers & Packaging        2,298          6,590  
a  

easyJet PLC

     Airlines        642          2,124  
 

Electrocomponents PLC

     Trading Companies & Distributors        834          9,021  
 

Endeavour Mining PLC

     Metals & Mining        327          5,990  
 

Ferguson PLC

     Trading Companies & Distributors        375          39,366  
 

GSK PLC

     Pharmaceuticals        7,089          103,334  
a  

Haleon PLC

     Personal Products        8,859          27,616  
 

Halma PLC

     Electronic Equipment, Instruments & Components        672          15,341  
 

Hargreaves Lansdown PLC

     Capital Markets        672          6,505  
 

Hikma Pharmaceuticals PLC

     Pharmaceuticals        288          4,384  
 

HomeServe PLC

     Commercial Services & Supplies        489          6,463  
 

Howden Joinery Group PLC

     Trading Companies & Distributors        924          5,211  
 

HSBC Holdings PLC

     Banks        35,706          186,259  
 

IMI PLC

     Machinery        462          5,771  
 

Imperial Brands PLC

     Tobacco        1,677          34,726  
 

Informa PLC

     Media        2,553          14,797  
 

InterContinental Hotels Group PLC

     Hotels, Restaurants & Leisure        327          15,948  
 

Intermediate Capital Group PLC

     Capital Markets        501          5,496  
a  

International Consolidated Airlines Group SA

     Airlines        2,019          2,134  
 

Intertek Group PLC

     Professional Services        285          11,794  

 

           
208             

Semiannual Report

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FRANKLIN TEMPLETON ETF TRUST

SCHEDULE OF INVESTMENTS (UNAUDITED)

 

Franklin FTSE Europe Hedged ETF (continued)

 

           Industry      Shares        Value  
    Common Stocks (continued)                       
    United Kingdom (continued)                       
 

ITV PLC

     Media        6,606        $ 4,224  
 

J Sainsbury PLC

     Food & Staples Retailing        3,051          5,936  
 

JD Sports Fashion PLC

     Specialty Retail        4,374          4,892  
 

Johnson Matthey PLC

     Chemicals        321          6,566  
a,b,c  

Just Eat Takeaway.com NV, 144A, Reg S

     Internet & Direct Marketing Retail        327          5,182  
 

Kingfisher PLC

     Specialty Retail        3,513          8,643  
 

Land Securities Group PLC

     Equity Real Estate Investment Trusts (REITs      1,263          7,357  
 

Legal & General Group PLC

     Insurance        10,515          25,413  
 

Lloyds Banking Group PLC

     Banks        121,242          56,018  
 

London Stock Exchange Group PLC

     Capital Markets        648          55,178  
 

M&G PLC

     Diversified Financial Services        4,554          8,467  
 

Melrose Industries PLC

     Industrial Conglomerates        7,119          8,122  
 

Mondi PLC

     Paper & Forest Products        858          13,352  
 

National Grid PLC

     Multi-Utilities        6,462          67,158  
 

NatWest Group PLC

     Banks        9,015          22,733  
 

Next PLC

     Multiline Retail        219          11,737  
a,d  

NMC Health PLC

     Health Care Providers & Services        60           
a  

Ocado Group PLC

     Food & Staples Retailing        975          5,143  
 

Pearson PLC

     Media        1,302          12,598  
 

Pennon Group PLC

     Water Utilities        474          4,164  
a,b  

Pepco Group NV, 144A

     Multiline Retail        204          1,235  
 

Persimmon PLC

     Household Durables        564          7,791  
 

Phoenix Group Holdings PLC

     Insurance        1,302          7,657  
 

Prudential PLC

     Insurance        4,875          48,640  
 

Reckitt Benckiser Group PLC

     Household Products        1,269          84,655  
 

RELX PLC

     Professional Services        3,288          80,822  
 

Renishaw PLC

     Electronic Equipment, Instruments & Components        60          2,355  
 

Rentokil Initial PLC

     Commercial Services & Supplies        3,309          17,638  
 

Rightmove PLC

     Interactive Media & Services        1,479          7,961  
a  

Rolls-Royce Holdings PLC

     Aerospace & Defense        14,850          11,536  
 

Royal Mail PLC

     Air Freight & Logistics        1,614          3,323  
 

Schroders PLC

     Capital Markets        1,170          5,085  
 

Segro PLC

     Equity Real Estate Investment Trusts (REITs      2,130          17,904  
 

Severn Trent PLC

     Water Utilities        444          11,672  
 

Smith & Nephew PLC

     Health Care Equipment & Supplies        1,548          18,153  
 

Smiths Group PLC

     Industrial Conglomerates        645          10,872  
 

Spirax-Sarco Engineering PLC

     Machinery        129          14,976  
 

SSE PLC

     Electric Utilities        1,893          32,278  
 

St. James’s Place Capital PLC

     Capital Markets        948          10,963  
 

Standard Chartered PLC

     Banks        4,332          27,409  
 

Tate & Lyle PLC

     Food Products        708          5,374  
 

Taylor Wimpey PLC

     Household Durables        6,324          6,234  
 

Tesco PLC

     Food & Staples Retailing        13,119          30,285  
 

The Sage Group PLC

     Software        1,806          14,056  
 

Unilever PLC

     Personal Products        4,497          199,244  
 

UNITE Group PLC

     Equity Real Estate Investment Trusts (REITs      555          5,319  
 

United Utilities Group PLC

     Water Utilities        1,209          11,995  
 

Vodafone Group PLC

     Wireless Telecommunication Services        44,514          50,247  
 

Weir Group PLC

     Machinery        459          7,207  
 

Whitbread PLC

     Hotels, Restaurants & Leisure        357          9,174  
a  

Wise PLC, A

     IT Services        810          5,973  
 

WPP PLC

     Media        1,893          15,849  
            

 

 

 
               2,885,651  
            

 

 

 
    United States 0.3%                       
 

Stellantis NV

     Automobiles        3,591          43,172  
            

 

 

 
 

Total Common Stocks
(Cost $19,579,782)

             14,049,095  
            

 

 

 

 

           
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Semiannual Report

             209


FRANKLIN TEMPLETON ETF TRUST

SCHEDULE OF INVESTMENTS (UNAUDITED)

 

Franklin FTSE Europe Hedged ETF (continued)

 

           Industry        Shares        Value  
    Preferred Stocks 0.7%                         
    Germany 0.7%                         
e  

ayerische Motoren Werke AG, 8.700%, pfd.

     Automobiles          108        $ 7,078  
e  

Fuchs Petrolub SE, 3.962%, pfd.

     Chemicals          126          3,209  
e  

Henkel AG & Co. KGaA, 3.032%, pfd.

     Household Products          297          17,754  
e  

Sartorius AG, 0.353%, pfd.

     Health Care Equipment & Supplies          44          15,393  
e  

Sixt SE, 9.740%, pfd.

     Road & Rail          27          1,239  
e  

Volkswagen AG, 5.981%, pfd.

     Automobiles          357          44,207  
              

 

 

 
                 88,880  
              

 

 

 
    Spain 0.0%                         
a,e  

Grifols SA, pfd., B

     Biotechnology          435          2,749  
              

 

 

 
 

Total Preferred Stocks
(Cost $149,593)

               91,629  
              

 

 

 
    Right 0.0%                         
    Sweden 0.0%                         
a  

Securitas AB, rts., 10/11/2022

     Commercial Services & Supplies          2,100          876  
              

 

 

 
 

Total Rights (Cost $1,416)

               876  
              

 

 

 
 

Total Investments (Cost $19,730,791) 99.6%

               14,141,600  
 

Other Assets, less Liabilities 0.4%

               62,297  
              

 

 

 
 

Net Assets 100.0%

             $ 14,203,897  
              

 

 

 

Rounds to less than 0.1% of net assets.

aNon-income producing.

bSecurity was purchased pursuant to Rule 144A under the Securities Act of 1933 and may be sold in transactions exempt from registration only to qualified institutional buyers or in a public offering registered under the Securities Act of 1933. At September 30, 2022, the value of was $343,915, representing 2.4% of net assets.

cSecurity was purchased pursuant to Regulation S under the Securities Act of 1933, which exempts from registration securities offered and sold outside of the United States. Such a security cannot be sold in the United States without either an effective registration statement filed pursuant to the Securities Act of 1933, or pursuant to an exemption from registration. At September 30, 2022, the value of was $92,765, representing 0.7% of net assets.

dFair valued using significant unobservable inputs. See Note 9 regarding fair value measurements.

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

At September 30, 2022 the Fund had the following forward exchange contracts outstanding. See Note 1(c).

 

Forward Exchange Contracts         
Currency    Counterpartya      Type      Quantity      Contract
Amount
     Settlement
Date
     Unrealized
Appreciation
     Unrealized
Depreciation
 
OTC Forward Exchange Contracts                                            

Danish Krone

     BOFA        Buy        130,263      $ 17,408        10/04/22      $      $ (245

Danish Krone

     BOFA        Buy        4,540,337        598,220        10/04/22               (12

Danish Krone

     BOFA        Sell        4,670,600        632,753        10/04/22        17,383         

Euro

     BOFA        Buy        66,570        66,160        10/04/22               (945

Euro

     HSBK        Buy        66,570        66,160        10/04/22               (945

Euro

     UBSW        Buy        66,570        66,159        10/04/22               (944

Euro

     BOFA        Buy        2,320,297        2,273,125        10/04/22               (47

Euro

     HSBK        Buy        2,320,297        2,273,114        10/04/22               (35

Euro

     UBSW        Buy        2,320,297        2,273,102        10/04/22               (24

Euro

     UBSW        Sell        2,386,867        2,405,129        10/04/22        66,835         

Euro

     HSBK        Sell        2,386,867        2,405,150        10/04/22        66,857         

Euro

     BOFA        Sell        2,386,867        2,405,200        10/04/22        66,906         

Great British Pound

     DBAB        Buy        94,185        108,427        10/04/22               (3,288

Great British Pound

     DBAB        Buy        3,282,815        3,663,622        10/04/22        983         

Great British Pound

     DBAB        Sell        3,377,000        3,931,470        10/04/22        161,726         

Norwegian Krone

     BOFA        Buy        62,513        6,280        10/04/22               (543

Norwegian Krone

     BOFA        Buy        2,178,887        199,952        10/04/22               (4

 

           
210             

Semiannual Report

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FRANKLIN TEMPLETON ETF TRUST

SCHEDULE OF INVESTMENTS (UNAUDITED)

 

Franklin FTSE Europe Hedged ETF (continued)

 

Forward Exchange Contracts (continued)         
Currency    Counterpartya      Type      Quantity      Contract
Amount
     Settlement
Date
     Unrealized
Appreciation
     Unrealized
Depreciation
 
OTC Forward Exchange Contracts (continued)                                            

Norwegian Krone

     BOFA        Sell        2,241,400      $ 225,971        10/04/22      $ 20,286      $  

Polish Zloty

     BOFA        Buy        7,171        1,501        10/04/22               (49

Polish Zloty

     BOFA        Buy        249,929        50,604        10/04/22               (1

Polish Zloty

     BOFA        Sell        257,100        54,493        10/04/22        2,437         

Swedish Krona

     BOFA        Buy        226,046        20,964        10/04/22               (595

Swedish Krona

     BOFA        Buy        7,878,854        709,981        10/04/22               (14

Swedish Krona

     BOFA        Sell        8,104,900        763,401        10/04/22        33,066         

Swiss Franc

     MSCO        Buy        66,233        67,627        10/04/22               (334

Swiss Franc

     MSCO        Buy        2,308,567        2,345,452        10/04/22        57         

Swiss Franc

     MSCO        Sell        2,374,800        2,439,573        10/04/22        26,772         

Danish Krone

     BOFA        Sell        4,389,700        579,519        11/02/22               (15

Euro

     UBSW        Sell        2,312,527        2,270,002        11/02/22        29         

Euro

     HSBK        Sell        2,312,527        2,270,011        11/02/22        38         

Euro

     BOFA        Sell        2,312,527        2,270,061        11/02/22        88         

Great British Pound

     DBAB        Sell        3,275,900        3,657,870        11/02/22               (1,304

Norwegian Krone

     BOFA        Sell        2,102,800        192,990        11/02/22               (13

Swedish Krona

     BOFA        Sell        7,833,100        706,733        11/02/22               (16

Swiss Franc

     MSCO        Sell        2,286,100        2,328,452        11/02/22               (163

Polish Zloty

     BOFA        Sell        225,500        45,421        11/03/22               (15
                 

 

 

 

Total Forward Exchange Contracts

 

   $ 463,463      $ (9,551
                 

 

 

 

Net unrealized appreciation (depreciation)

 

      $ 453,912  
                    

 

 

 

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

At September 30, 2022, the Fund had the following futures contracts outstanding. See Note 1(c).

 

Futures Contracts                                   
Description    Type      Number of
Contracts
    

Notional

Amount*

    

Expiration

Date

    

Value/Unrealized
Appreciation

(Depreciation)

 
Index Contracts                                   

EURO STOXX 50 Index

     Long        1      $ 32,475        12/16/22      $ (2,661

*As of period end.

See Note 8 regarding other derivative information.

See Abbreviations on page 332.

 

           
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The accompanying notes are an integral part of these financial statements.    |   Semiannual Report

             211


FRANKLIN TEMPLETON ETF TRUST

 

Financial Highlights

 

Franklin FTSE France ETF

 

   

Six Months Ended

September 30, 2022

(unaudited)

     Year Ended March 31,  
      2022      2021      2020      2019      2018a  
Per share operating performance
(for a share outstanding throughout the period)
                

Net asset value, beginning of period

    $28.82      $ 28.44      $ 19.34      $ 23.86      $ 25.33      $ 25.32  
 

 

 

    

 

 

 

Income from investment operationsb:

                

Net investment incomec

    0.57        0.85        0.40        0.52        0.70        0.08  

Net realized and unrealized gains (losses)

    (6.98      0.41        9.10        (4.47      (1.48      (0.01
 

 

 

    

 

 

 

Total from investment operations

    (6.41      1.26        9.50        (3.95      (0.78      0.07  
 

 

 

    

 

 

 

Less distributions from net investment income

    (0.45      (0.88      (0.40      (0.57      (0.69      (0.06
 

 

 

    

 

 

 

Net asset value, end of period

    $21.96      $ 28.82      $ 28.44      $ 19.34      $ 23.86      $ 25.33  
 

 

 

 

Total returnd

    (22.36)%        4.23%        49.47%        (17.08)%        (3.07)%        0.26%  
Ratios to average net assetse                 

Total expenses

    0.09%        0.09%        0.09%        0.09%        0.09%        0.09%  

Net investment income

    4.43%        2.77%        1.68%        2.14%        2.90%        0.78%  
Supplemental data                 

Net assets, end of period (000’s)

    $6,587      $ 10,088      $ 7,111      $ 8,702      $ 2,386      $ 2,533  

Portfolio turnover ratef

    2.48% g       5.94% g       4.56% g       2.60% g       5.80%        1.90%  

aFor the period November 2, 2017 (commencement of operations) to March 31, 2018.

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

cBased on average daily shares outstanding.

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

eRatios are annualized for periods less than one year.

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

 

gPortfolio turnover rate excluding cash creations was as follows:     2.87%        5.94%        4.56%        2.60%        

 

           
212             

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 FTSE France ETF

 

           Industry      Shares        Value  
    Common Stocks 99.9%                       
    France 97.5%                       
a  

Accor SA

     Hotels, Restaurants & Leisure        906        $ 19,180  
a  

Aeroports de Paris SA

     Transportation Infrastructure        138          16,088  
 

Air Liquide SA

     Chemicals        2,514          289,531  
 

Airbus SE

     Aerospace & Defense        2,742          238,776  
b  

ALD SA, 144A

     Road & Rail        396          3,670  
 

Alstom SA

     Machinery        1,488          24,409  
b  

Amundi SA, 144A

     Capital Markets        276          11,616  
 

Arkema SA

     Chemicals        318          23,390  
 

AXA SA

     Insurance        9,108          200,537  
 

Biomerieux

     Health Care Equipment & Supplies        210          16,746  
 

BNP Paribas SA

     Banks        5,268          225,036  
 

Bollore

     Entertainment        4,884          22,593  
 

Bouygues SA

     Construction & Engineering        1,044          27,461  
 

Bureau Veritas SA

     Professional Services        1,410          31,742  
 

Capgemini SE

     IT Services        786          127,436  
 

Carrefour SA

     Food & Staples Retailing        2,904          40,440  
 

Cie de L’Odet SE

     Air Freight & Logistics        2          2,257  
 

Cie Generale des Etablissements Michelin SCA

     Auto Components        3,444          78,123  
 

Compagnie de Saint-Gobain

     Building Products        2,262          82,102  
 

Covivio

     Equity Real Estate Investment Trusts (REITs      246          11,934  
 

Credit Agricole SA

     Banks        5,952          48,769  
 

Danone SA

     Food Products        3,000          142,745  
 

Dassault Aviation SA

     Aerospace & Defense        114          13,067  
 

Dassault Systemes SE

     Software        3,294          115,316  
 

Edenred

     IT Services        1,230          57,067  
 

EDF SA

     Electric Utilities        3,084          35,923  
 

Eiffage SA

     Construction & Engineering        360          29,103  
 

Engie SA

     Multi-Utilities        8,166          94,734  
 

EssilorLuxottica SA

     Textiles, Apparel & Luxury Goods        1,464          201,291  
 

Eurazeo SE

     Diversified Financial Services        240          12,661  
a  

Euroapi SA

     Pharmaceuticals        233          3,889  
a  

Faurecia SE

     Auto Components        780          8,581  
 

Gecina SA

     Equity Real Estate Investment Trusts (REITs      252          19,861  
 

Getlink SE

     Transportation Infrastructure        2,250          35,058  
 

Hermes International

     Textiles, Apparel & Luxury Goods        153          182,412  
 

ICADE

     Equity Real Estate Investment Trusts (REITs      156          5,838  
 

Ipsen SA

     Pharmaceuticals        168          15,619  
a  

JCDecaux SA

     Media        354          4,186  
 

Kering SA

     Textiles, Apparel & Luxury Goods        359          161,269  
 

Klepierre SA

     Equity Real Estate Investment Trusts (REITs      936          16,413  
b  

La Francaise des Jeux SAEM, 144A

     Hotels, Restaurants & Leisure        432          12,895  
 

Legrand SA

     Electrical Equipment        1,320          86,201  
 

L’Oreal SA

     Personal Products        1,212          392,117  
 

LVMH Moet Hennessy Louis Vuitton SE

     Textiles, Apparel & Luxury Goods        1,226          733,121  
b  

Neoen SA, 144A

     Independent Power Producers & Energy Traders        216          7,266  
 

Orange SA

     Diversified Telecommunication Services        9,426          85,398  
 

Pernod Ricard SA

     Beverages        1,008          186,487  
 

Publicis Groupe

     Media        1,110          53,174  
 

Remy Cointreau SA

     Beverages        124          20,760  
a  

Renault SA

     Automobiles        942          25,812  
 

Rexel SA

     Trading Companies & Distributors        1,182          17,925  
 

Safran SA

     Aerospace & Defense        1,716          158,038  
 

Sanofi

     Pharmaceuticals        5,358          411,519  
 

Sartorius Stedim Biotech

     Life Sciences Tools & Services        119          36,967  
 

Schneider Electric SE

     Electrical Equipment        2,616          299,690  
 

SCOR SE

     Insurance        732          10,660  
 

SEB SA

     Household Durables        150          9,507  

 

           
franklintempleton.com  

Semiannual Report

             213


FRANKLIN TEMPLETON ETF TRUST

SCHEDULE OF INVESTMENTS (UNAUDITED)

 

Franklin FTSE France ETF (continued)

 

           Industry        Shares        Value  
    Common Stocks (continued)                         
    France (continued)                         
 

Societe Generale SA

     Banks          3,726        $ 74,518  
 

Sodexo SA

     Hotels, Restaurants & Leisure          432          32,655  
a  

SOITEC

     Semiconductors & Semiconductor Equipment          120          13,948  
 

Somfy SA

     Electrical Equipment          36          3,354  
 

Teleperformance

     Professional Services          286          73,099  
 

Thales SA

     Aerospace & Defense          492          54,465  
 

TotalEnergies SE

     Oil, Gas & Consumable Fuels          11,640          550,486  
a  

Ubisoft Entertainment SA

     Entertainment          468          12,984  
 

Valeo

     Auto Components          1,200          18,374  
 

Veolia Environnement SA

     Multi-Utilities          3,066          59,201  
 

Vinci SA

     Construction & Engineering          2,442          198,968  
 

Vivendi SA

     Media          3,420          26,709  
 

Wendel SE

     Diversified Financial Services          132          9,550  
a,b,c  

Worldline SA, 144A, Reg S

     IT Services          1,200          47,823  
              

 

 

 
                 6,420,540  
              

 

 

 
    Luxembourg 0.5%                         
 

Eurofins Scientific SE

     Life Sciences Tools & Services          606          36,285  
              

 

 

 
    Netherlands 0.4%                         
b,c  

Euronext NV, 144A, Reg S

     Capital Markets          402          25,638  
              

 

 

 
    Switzerland 1.5%                         
 

STMicroelectronics NV

     Semiconductors & Semiconductor Equipment          3,114          98,368  
              

 

 

 
 

Total Investments (Cost $ 8,467,663) 99.9%

               6,580,831  
 

Other Assets, less Liabilities 0.1%

               6,492  
              

 

 

 
 

Net Assets 100.0%

             $ 6,587,323  
              

 

 

 

aNon-income producing.

bSecurity was purchased pursuant to Rule 144A under the Securities Act of 1933 and may be sold in transactions exempt from registration only to qualified institutional buyers or in a public offering registered under the Securities Act of 1933. At September 30, 2022, the value of was $108,908, representing 1.7% of net assets.

cSecurity was purchased pursuant to Regulation S under the Securities Act of 1933, which exempts from registration securities offered and sold outside of the United States. Such a security cannot be sold in the United States without either an effective registration statement filed pursuant to the Securities Act of 1933, or pursuant to an exemption from registration. At September 30, 2022, the value of was $73,461, representing 1.1% of net assets.

See Note 8 regarding other derivative information.

See Abbreviations on page 332

 

           
214             

Semiannual Report    |   The accompanying notes are an integral part of these financial statements.

  franklintempleton.com


FRANKLIN TEMPLETON ETF TRUST

 

Financial Highlights

 

Franklin FTSE Germany ETF

 

   

Six Months Ended
September 30, 2022

(unaudited)

     Year Ended March 31,  
      2022      2021      2020      2019      2018a  
Per share operating performance
(for a share outstanding throughout the period)
                

Net asset value, beginning of period

    $22.37      $ 25.98      $ 16.73      $ 20.70      $ 24.60      $ 25.55  
 

 

 

 
Income from investment operationsb:                 

Net investment incomec

    0.52        0.70        0.61        0.52        0.53        0.05  

Net realized and unrealized gains (losses)

    (6.81      (3.63      9.29        (3.92      (3.83      (1.00
 

 

 

 

Total from investment operations

    (6.29      (2.93      9.90        (3.40      (3.30      (0.95
 

 

 

 

Less distributions from net investment income

    (0.59      (0.68      (0.65      (0.57      (0.60       
 

 

 

 

Net asset value, end of period

    $15.49      $ 22.37      $ 25.98      $ 16.73      $ 20.70      $ 24.60  
 

 

 

 

Total returnd

    (28.52)%        (11.68)%        59.79%        (17.00)%        (13.72)%        (3.72)%  
Ratios to average net assetse                 

Total expenses

    0.09%        0.09%        0.09%        0.09%        0.09%        0.09%  

Net investment income

    5.47%        2.73%        2.66%        2.46%        2.44%        0.52%  
Supplemental data                 

Net assets, end of period (000’s)

    $13,167        $16,775        $9,093        $4,182        $4,140        $2,460  

Portfolio turnover ratef

    2.93% g       6.70% g       5.79% g       5.74% g       10.75%        1.75%  

aFor the period November 2, 2017 (commencement of operations) to March 31, 2018.

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

cBased on average daily shares outstanding.

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

eRatios are annualized for periods less than one year.

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

 

gPortfolio turnover rate excluding cash creations was as follows:     2.93%        6.70%        5.79%        5.74%        

 

           
franklintempleton.com  

The accompanying notes are an integral part of these financial statements.    |   Semiannual Report

             215


FRANKLIN TEMPLETON ETF TRUST

 

Schedule of Investments, September 30, 2022 (unaudited)

 

Franklin FTSE Germany ETF

 

           Industry        Shares        Value  
             
    Common Stocks 94.7%                         
    Germany 93.5%                         
 

1&1 Drillisch AG

     Wireless Telecommunication Services          629        $ 8,362  
 

Adidas AG

     Textiles, Apparel & Luxury Goods          2,312          269,257  
 

Allianz SE

     Insurance          5,610          889,226  
 

Aroundtown SA

     Real Estate Management & Development        14,858          32,852  
 

BASF SE

     Chemicals          12,631          490,009  
 

Bayer AG

     Pharmaceuticals          13,566          630,142  
 

Bayerische Motoren Werke AG

     Automobiles          4,420          303,060  
 

Bechtle AG

     IT Services          1,122          40,812  
 

Beiersdorf AG

     Personal Products          1,377          136,179  
 

Brenntag AG

     Trading Companies & Distributors          2,142          130,899  
 

Carl Zeiss Meditec AG

     Health Care Equipment & Supplies          510          53,684  
a  

Commerzbank AG

     Banks          14,382          103,444  
 

Continental AG

     Auto Components          1,479          66,577  
b  

Covestro AG, 144A

     Chemicals          2,465          71,334  
a  

CTS Eventim AG & Co. KGaA

     Entertainment          816          33,990  
 

Daimler AG

     Automobiles          11,628          596,338  
a  

Daimler Truck Holding AG

     Machinery          5,814          132,994  
a,b  

Delivery Hero SE, 144A

     Internet & Direct Marketing Retail          2,635          97,937  
 

Deutsche Bank AG

     Capital Markets          27,965          209,469  
 

Deutsche Boerse AG

     Capital Markets          2,533          417,504  
a  

Deutsche Lufthansa AG

     Airlines          8,262          47,900  
 

Deutsche Post AG

     Air Freight & Logistics          13,362          407,298  
 

Deutsche Telekom AG

     Diversified Telecommunication Services          46,716          800,527  
 

Deutsche Wohnen AG

     Real Estate Management & Development          663          12,669  
b  

DWS Group GmbH & Co. KGaA, 144A

     Capital Markets          476          11,453  
 

E.ON SE

     Multi-Utilities          30,566          236,438  
 

Evonik Industries AG

     Chemicals          2,618          44,241  
a  

Evotec SE

     Life Sciences Tools & Services          2,193          38,574  
 

Fielmann AG

     Specialty Retail          340          10,978  
a  

Fraport AG Frankfurt Airport Services Worldwide

     Transportation Infrastructure          493          17,962  
 

Fresenius Medical Care AG & Co. KGaA

     Health Care Providers & Services          2,805          79,772  
 

Fresenius SE & Co. KGaA

     Health Care Providers & Services          5,627          120,999  
 

Fuchs Petrolub SE

     Chemicals          459          10,140  
 

GEA Group AG

     Machinery          2,261          73,848  
 

Hannover Rueck SE

     Insurance          833          125,835  
 

HeidelbergCement AG

     Construction Materials          2,006          80,278  
 

Hella GmbH & Co. KGaA

     Auto Components          306          20,415  
a  

HelloFresh SE

     Internet & Direct Marketing Retail          2,261          48,176  
 

Henkel AG & Co. KGaA

     Household Products          1,411          80,587  
 

Hochtief AG

     Construction & Engineering          272          13,019  
 

Infineon Technologies AG

    
Semiconductors &Semiconductor
Equipment
 
 
       18,003          400,528  
 

KION Group AG

     Machinery          1,071          20,790  
 

Knorr-Bremse AG

     Machinery          901          39,173  
 

Lanxess AG

     Chemicals          1,173          34,554  
 

LEG Immobilien AG

     Real Estate Management & Development          1,020          61,314  
 

Merck KGaA

     Pharmaceuticals          1,785          291,679  
a  

METRO AG

     Food & Staples Retailing          1,836          12,878  
 

MTU Aero Engines AG

     Aerospace & Defense          737          111,369  
 

Muenchener Rueckversicherungs-Gesellschaft Aktiengesellschaft in Muenchen

     Insurance          1,938          469,894  
 

Nemetschek AG

     Software          748          36,075  
 

Puma SE

     Textiles, Apparel & Luxury Goods          1,377          64,710  
 

Rational AG

     Machinery          68          33,341  
 

Rheinmetall AG

     Industrial Conglomerates          595          92,213  
 

RWE AG

     Multi-Utilities          8,704          322,231  
 

SAP SE

     Software          15,300          1,260,845  
 

Sartorius AG

     Health Care Equipment & Supplies          34          10,292  

 

           
216             

Semiannual Report

  franklintempleton.com


FRANKLIN TEMPLETON ETF TRUST

SCHEDULE OF INVESTMENTS (UNAUDITED)

 

Franklin FTSE Germany ETF (continued)

 

           Industry        Shares        Value  
    Common Stocks (continued)                         
    Germany (continued)                         
b  

Scout24 AG, 144A, Reg S

     Interactive Media & Services          1,071        $ 54,265  
 

Siemens AG

     Industrial Conglomerates          10,421          1,033,144  
a  

Siemens Energy AG

     Electrical Equipment        5,916          65,983  
b  

Siemens Healthineers AG, 144A

     Health Care Equipment & Supplies          3,791          164,449  
 

Sixt SE

     Road & Rail          187          15,031  
 

Symrise AG

     Chemicals          1,802          177,327  
a  

Talanx AG

     Insurance          731          26,067  
 

Telefonica Deutschland Holding AG

     Diversified Telecommunication Services          12,461          25,306  
a  

thyssenkrupp AG

     Metals & Mining          6,817          29,291  
 

Traton SE

     Machinery          697          8,358  
 

Uniper SE

     Independent Power Producers & Energy Traders          1,207          4,619  
 

United Internet AG

     Diversified Telecommunication Services          1,513          28,547  
 

Vantage Towers AG

     Diversified Telecommunication Services          1,275          33,150  
 

Varta AG

     Electrical Equipment          187          5,377  
 

Volkswagen AG

     Automobiles          391          64,600  
 

Vonovia SE

     Real Estate Management & Development          11,016          239,686  
 

Wacker Chemie AG

     Chemicals          204          21,214  
a,b  

Zalando SE, 144A

     Internet & Direct Marketing Retail          3,026          59,970  
              

 

 

 
                 12,313,448  
              

 

 

 
    Luxembourg 0.2%                         
 

RTL Group SA

     Media          527          16,799  
a  

SUSE SA

     Software          544          8,090  
              

 

 

 
                 24,889  
              

 

 

 
    Netherlands 1.0%                         
a  

QIAGEN NV

     Life Sciences Tools & Services          3,026          127,411  
              

 

 

 
 

Total Common Stocks
(Cost $18,662,856)

               12,465,748  
              

 

 

 
    Preferred Stocks 5.2%                         
    Germany 5.2%                         
c  

Bayerische Motoren Werke AG, 8.700%, pfd.

     Automobiles          816          53,479  
c  

Fuchs Petrolub SE, 3.962%, pfd.

     Chemicals          969          24,681  
c  

Henkel AG & Co. KGaA, 3.032%, pfd.

     Household Products          2,329          139,224  
c  

Sartorius AG, 0.353%, pfd.

     Health Care Equipment & Supplies          340          118,943  
c  

Sixt SE, 9.740%, pfd.

     Road & Rail          221          10,143  
c  

Volkswagen AG, 5.981%, pfd.

     Automobiles          2,788          345,232  
              

 

 

 
 

Total Preferred Stocks
(Cost $1,046,007)

               691,702  
              

 

 

 
 

Total Investments
(Cost $19,708,863) 99.9%

               13,157,450  
 

Other Assets, less Liabilities 0.1%

               9,397  
              

 

 

 
 

Net Assets 100.0%

             $ 13,166,847  
              

 

 

 

aNon-income producing.

bSecurity was purchased pursuant to Rule 144A under the Securities Act of 1933 and may be sold in transactions exempt from registration only to qualified institutional buyers or in a public offering registered under the Securities Act of 1933. At September 30, 2022, the value of was $459,409, representing 3.5% of net assets.

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

 

           
franklintempleton.com  

Semiannual Report

             217


FRANKLIN TEMPLETON ETF TRUST

 

Financial Highlights

 

Franklin FTSE Hong Kong ETF

 

   

Six Months Ended
September 30, 2022

(unaudited)

     Year Ended March 31,  
      2022      2021      2020      2019      2018a  
Per share operating performance                 

(for a share outstanding throughout the period)

                

Net asset value, beginning of period

    $23.43      $ 28.10      $ 20.58      $ 26.82      $ 26.17      $ 25.30  
 

 

 

 
Income from investment operationsb:                 
Net investment incomec     0.58        0.74        0.72        0.77        0.66        0.16  

Net realized and unrealized gains (losses)

    (4.83      (4.72      7.61        (6.25      0.59        0.78  
 

 

 

 

Total from investment operations

    (4.25      (3.98      8.33        (5.48      1.25        0.94  
 

 

 

 

Less distributions from net investment income

    (0.42      (0.69      (0.81      (0.76      (0.60      (0.07
 

 

 

 

Net asset value, end of period

    $18.76      $ 23.43      $ 28.10      $ 20.58      $ 26.82      $ 26.17  
 

 

 

 

Total returnd

    (18.38)%        (14.41)%        41.14%        (20.90)%        4.97%        3.70%  
Ratios to average net assetse                 

Total expenses

    0.09%        0.09%        0.09%        0.09%        0.09%        0.09%  

Net investment income

    5.27%        2.79%        2.99%        3.10%        2.67%        1.49%  
Supplemental data                 

Net assets, end of period (000’s)

    $11,254        $17,573        $16,862        $15,433        $20,118        $7,852  

Portfolio turnover ratef

    5.10% g       9.91% g       14.84% g       5.99% g       5.33%        0.93%  

aFor the period November 2, 2017 (commencement of operations) to March 31, 2018.

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

cBased on average daily shares outstanding.

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

eRatios are annualized for periods less than one year.

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

 

gPortfolio turnover rate excluding cash creations was as follows:     5.10%        9.74%        14.84%        5.99%        

 

           
218             

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 FTSE Hong Kong ETF

 

           Industry      Shares        Value  
    Common Stocks 99.3%                       
    Cambodia 0.2%                       
a  

NagaCorp Ltd.

   Hotels, Restaurants & Leisure        40,372        $ 26,538  
              

 

 

 
    China 10.1%                       
a  

AAC Technologies Holdings Inc., H

   Electronic Equipment, Instruments & Components        20,000          31,287  
 

BOC Hong Kong (Holdings) Ltd.

   Banks        103,000          343,119  
b  

Budweiser Brewing Co. APAC Ltd., H, 144A

   Beverages        48,800          127,752  
a  

China Travel International Investment Hong Kong Ltd., A

   Hotels, Restaurants & Leisure        80,000          14,064  
 

Chow Tai Fook Jewellery Co. Ltd., A

   Specialty Retail        50,400          94,895  
a,b  

ESR Cayman Ltd., H, 144A

   Real Estate Management & Development        58,400          147,304  
a  

HUTCHMED China Ltd.

   Pharmaceuticals        14,000          23,577  
 

Kerry Logistics Network Ltd.

   Air Freight & Logistics        8,000          12,861  
 

Lenovo Group Ltd.

   Technology Hardware, Storage & Peripherals        216,000          150,239  
a  

MMG Ltd.

   Metals & Mining        68,000          16,286  
 

Nexteer Automotive Group Ltd.

   Auto Components        24,000          13,024  
a  

Shangri-La Asia Ltd.

   Hotels, Restaurants & Leisure        32,000          22,217  
 

SITC International Holdings Co. Ltd.

   Marine        33,000          61,040  
 

Want Want China Holdings Ltd.

   Food Products        124,000          81,035  
              

 

 

 
                 1,138,700  
              

 

 

 
    Hong Kong 77.5%                       
 

AIA Group Ltd., A

   Insurance        260,200          2,169,466  
 

ASM Pacific Technology Ltd., A

   Semiconductors & Semiconductor Equipment        8,800          53,585  
 

Cafe de Coral Holdings Ltd., A

   Hotels, Restaurants & Leisure        8,000          9,957  
a  

Cathay Pacific Airways Ltd., A

   Airlines        28,000          29,534  
 

Champion REIT, A

   Equity Real Estate Investment Trusts (REITs)        56,000          19,761  
 

CK Asset Holdings Ltd.

   Real Estate Management & Development        57,000          342,731  
 

CK Infrastructure Holdings Ltd., A

   Electric Utilities        17,000          86,734  
 

CLP Holdings Ltd.

   Electric Utilities        47,000          355,349  
 

Dah Sing Banking Group Ltd., A

   Banks        9,600          6,359  
 

Dah Sing Financial Group, H

   Banks        4,000          9,111  
 

Dairy Farm International Holdings Ltd., A

   Food & Staples Retailing        8,800          20,328  
 

Guotai Junan International Holdings Ltd.

   Capital Markets        76,000          5,615  
a  

Haitong International Securities Group Ltd.

   Capital Markets        84,000          7,170  
 

Hang Lung Group Ltd.

   Real Estate Management & Development        24,000          38,767  
 

Hang Lung Properties Ltd.

   Real Estate Management & Development        52,000          85,321  
 

Hang Seng Bank Ltd.

   Banks        20,800          315,846  
 

Henderson Land Development Co. Ltd.

   Real Estate Management & Development        37,000          103,696  
 

Hong Kong and China Gas Co. Ltd.

   Gas Utilities        312,000          275,040  
 

Hong Kong Exchanges and Clearing Ltd.

   Capital Markets        36,500          1,253,570  
 

Hongkong Land Holdings Ltd.

   Real Estate Management & Development        32,000          141,440  
 

Huabao International Holdings Ltd.

   Chemicals        28,000          12,984  
 

Hutchison Telecommunications Hong Kong Holdings Ltd.

   Diversified Telecommunication Services        32,000          4,688  
 

Hysan Development Co. Ltd.

   Real Estate Management & Development        17,000          42,836  
 

Jardine Matheson Holdings Ltd.

   Industrial Conglomerates        5,700          288,648  
 

Johnson Electric Holdings Ltd.

   Electrical Equipment        10,000          10,038  
b  

JS Global Lifestyle Co. Ltd., 144A

   Household Durables        36,000          34,808  
 

Kerry Properties Ltd.

   Real Estate Management & Development        18,000          34,166  
 

Link REIT

   Equity Real Estate Investment Trusts (REITs)        60,800          425,218  
 

Man Wah Holdings Ltd.

   Household Durables        44,800          28,535  
a  

Melco International Development Ltd.

   Hotels, Restaurants & Leisure        24,000          18,650  
 

MTR Corp. Ltd.

   Road & Rail        41,500          190,585  
 

New World Development Co. Ltd.

   Real Estate Management & Development        40,000          113,632  
 

NWS Holdings Ltd.

   Industrial Conglomerates        40,000          36,179  
 

Orient Overseas International Ltd.

   Marine        3,800          66,561  
 

PCCW Ltd.

   Diversified Telecommunication Services        120,000          54,268  
 

Power Assets Holdings Ltd.

   Electric Utilities        39,500          198,257  
 

Sino Land Co. Ltd.

   Real Estate Management & Development        104,000          137,520  

 

           
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Semiannual Report

             219


FRANKLIN TEMPLETON ETF TRUST

SCHEDULE OF INVESTMENTS (UNAUDITED)

 

Franklin FTSE Hong Kong ETF (continued)

 

           Industry      Shares        Value  
    Common Stocks (continued)                       
    Hong Kong (continued)                       
 

Sun Hung Kai Properties Ltd.

   Real Estate Management & Development        41,000        $ 453,617  
 

Swire Pacific Ltd., A

   Real Estate Management & Development        14,500          108,521  
 

Swire Pacific Ltd., B

   Real Estate Management & Development        27,500          32,125  
 

Swire Properties Ltd.

   Real Estate Management & Development        30,400          65,448  
 

Techtronic Industries Co. Ltd.

   Household Durables        37,500          362,345  
 

The Bank of East Asia Ltd., A

   Banks        27,200          29,799  
 

The Wharf Holdings Ltd.

   Real Estate Management & Development        35,000          112,135  
 

United Energy Group Ltd.

   Oil, Gas & Consumable Fuels        216,000          24,765  
a  

Vitasoy International Holdings Ltd.

   Food Products        22,600          28,128  
 

VTech Holdings Ltd.

   Communications Equipment        4,800          27,547  
b  

WH Group Ltd., 144A, Reg S

   Food Products        225,748          142,353  
 

Wharf Real Estate Investment Co. Ltd.

   Real Estate Management & Development        44,060          200,377  
 

Xinyi Glass Holdings Ltd.

   Auto Components        58,400          84,960  
 

Yue Yuen Industrial Holdings Ltd.

   Textiles, Apparel & Luxury Goods        20,000          25,580  
              

 

 

 
                 8,724,653  
              

 

 

 
    Indonesia 0.2%                       
 

First Pacific Co. Ltd.

   Diversified Financial Services        64,000          19,486  
              

 

 

 
    Italy 0.6%                       
 

Prada SpA

   Textiles, Apparel & Luxury Goods        14,800          68,628  
              

 

 

 
    Luxembourg 0.3%                       
 

L’Occitane International SA

   Specialty Retail        13,000          39,497  
              

 

 

 
    Macau 5.4%                       
 

Galaxy Entertainment Group Ltd.

   Hotels, Restaurants & Leisure        62,000          366,476  
a  

MGM China Holdings Ltd.

   Hotels, Restaurants & Leisure        20,800          11,500  
a  

Sands China Ltd.

   Hotels, Restaurants & Leisure        68,800          172,660  
a  

SJM Holdings Ltd.

   Hotels, Restaurants & Leisure        68,000          25,468  
a  

Wynn Macau Ltd.

   Hotels, Restaurants & Leisure        43,200          27,736  
              

 

 

 
                 603,840  
              

 

 

 
    Singapore 0.4%                       
b  

BOC Aviation Ltd., A, 144A

   Trading Companies & Distributors        6,000          42,612  
              

 

 

 
    Taiwan 0.0%                       
a,b  

FIT Hon Teng Ltd., 144A

   Electronic Equipment, Instruments & Components        28,000          3,317  
              

 

 

 
    United Kingdom 3.8%                       
 

CK Hutchison Holdings Ltd., A

   Real Estate Management & Development        76,500          422,948  
              

 

 

 
    United States 0.8%                       
a,b  

Samsonite International SA, 144A

   Textiles, Apparel & Luxury Goods        37,200          90,134  
              

 

 

 
 

Total Investments
(Cost $15,063,230) 99.3%

               11,180,353  
 

Other Assets, less Liabilities 0.7%

               73,894  
              

 

 

 
 

Net Assets 100.0%

             $ 11,254,247  
              

 

 

 

Rounds to less than 0.1% of net assets.

aNon-income producing.

bSecurity was purchased pursuant to Rule 144A under the Securities Act of 1933 and may be sold in transactions exempt from registration only to qualified institutional buyers or in a public offering registered under the Securities Act of 1933. At September 30, 2022, the value of was $588,280, representing 5.2% of net assets.

 

 

           
220             

Semiannual Report

  franklintempleton.com


FRANKLIN TEMPLETON ETF TRUST

SCHEDULE OF INVESTMENTS (UNAUDITED)

 

Franklin FTSE Hong Kong ETF (continued)

 

At September 30, 2022, the Fund had the following futures contracts outstanding. See Note 1(c).

 

Futures Contracts               
Description    Type      Number of
Contracts
     Notional
Amount*
     Expiration
Date
     Value/Unrealized
Appreciation
(Depreciation)
 
Equity Contracts                                   

MINI HSI IDX

     Long        3      $ 65,772        10/28/22        $(2,203)  

*As of period end.

See Note 8 regarding other derivative information.

See Abbreviations on page 332.

 

           
franklintempleton.com  

The accompanying notes are an integral part of these financial statements.    |   Semiannual Report

             221


FRANKLIN TEMPLETON ETF TRUST

 

Financial Highlights

 

Franklin FTSE India ETF

 

    

Six Months Ended

September 30, 2022

(unaudited)

     Year Ended March 31,  
   2022      2021      2020      2019      2018a  
Per share operating performance
(for a share outstanding throughout the period)
                

Net asset value, beginning of period

  $ 31.34      $ 27.70      $ 15.98      $ 23.36      $ 22.74      $ 23.72  
 

 

 

 

Income from investment operationsb:

                

Net investment incomec

    0.19        0.27        0.20        0.26        0.29        0.09  

Net realized and unrealized gains (losses)

    (2.71      4.09        11.70        (7.43      0.53        (1.07
 

 

 

 

Total from investment operations

 

 

(2.52

     4.36        11.90        (7.17      0.82        (0.98
 

 

 

 

Less distributions from net investment income

           (0.72      (0.18      (0.21      (0.20       
 

 

 

 

Net asset value, end of period

 

$

28.82

 

   $ 31.34      $ 27.70      $ 15.98      $ 23.36      $ 22.74  
 

 

 

 

Total returnd

    (8.04)%        15.75%        74.87%        (30.98)%        3.66%        (4.13)%  
Ratios to average net assetse                 

Total expenses

    0.19%        0.19%        0.19%        0.19%        0.19%        0.19%  

Net investment income

    1.28%        0.86%        0.89%        1.20%        1.33%        2.78%  
Supplemental data                 

Net assets, end of period (000’s)

    $53,325        $50,140        $23,544        $8,790        $7,007        $2,274  

Portfolio turnover ratef

    2.41% g       10.73% g       23.48% g       36.55% g       8.03%        1.59%  

aFor the period February 6, 2018 (commencement of operations) to March 31, 2018.

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

cBased on average daily shares outstanding.

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

eRatios are annualized for periods less than one year.

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

 

gPortfolio turnover rate excluding cash creations was as follows:     2.41%        8.16%        16.91%        6.83%        

 

           
222             

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 FTSE India ETF

 

           Industry        Shares        Value  
    Common Stocks 101.3%                         
    India 101.3%                         
a  

3M India Ltd.

     Industrial Conglomerates          148        $ 44,766  
 

Aarti Industries Ltd.

     Chemicals          9,842          90,137  
 

ABB India Ltd.

     Electrical Equipment          2,849          108,159  
 

ACC Ltd.

     Construction Materials          4,514          134,039  
 

Adani Enterprises Ltd.

     Trading Companies & Distributors          14,541          617,693  
a  

Adani Green Energy Ltd.

     Independent Power Producers & Energy Traders          21,201          589,189  
 

Adani Ports & Special Economic Zone Ltd.

     Transportation Infrastructure          42,291          426,620  
a  

Adani Power Ltd.

     Independent Power Producers & Energy Traders          51,171          234,936  
 

Adani Total Gas Ltd.

     Gas Utilities          14,800          607,609  
a  

Adani Transmission Ltd.

     Electric Utilities          13,542          547,631  
a  

Adani Wilmar Ltd.

     Food Products          8,436          78,344  
a  

Aditya Birla Capital Ltd.

     Diversified Financial Services          23,199          31,882  
 

Alkem Laboratories Ltd.

     Pharmaceuticals          1,332          53,659  
 

Ambuja Cements Ltd.

     Construction Materials          36,667          232,394  
 

Apollo Hospitals Enterprise Ltd.

     Health Care Providers & Services          5,291          285,092  
 

Ashok Leyland Ltd.

     Machinery          76,146          142,883  
 

Asian Paints Ltd.

     Chemicals          24,087          989,654  
 

Astral Ltd.

     Building Products          4,736          129,966  
b  

AU Small Finance Bank Ltd., 144A

     Banks          17,390          132,363  
 

Aurobindo Pharma Ltd.

     Pharmaceuticals          13,875          87,086  
a,b  

Avenue Supermarts Ltd., 144A

     Food & Staples Retailing          7,955          428,942  
 

Axis Bank Ltd.

     Banks          121,397          1,094,123  
 

Bajaj Auto Ltd.

     Automobiles          3,700          160,448  
 

Bajaj Finance Ltd.

     Consumer Finance          12,580          1,134,386  
 

Bajaj Finserv Ltd.

     Diversified Financial Services          20,387          420,602  
 

Bajaj Holdings & Investment Ltd.

     Diversified Financial Services          1,443          113,358  
 

Balkrishna Industries Ltd.

     Auto Components          4,292          99,379  
a,b  

Bandhan Bank Ltd, 144A

     Banks          42,365          138,836  
 

Bank of Baroda

     Banks          54,168          88,159  
 

Bank of India

     Banks          26,344          15,609  
 

Bata India Ltd.

     Textiles, Apparel & Luxury Goods          3,256          72,904  
 

Bayer CropScience Ltd.

     Chemicals          703          42,197  
 

Berger Paints India Ltd.

     Chemicals          12,839          97,376  
 

Bharat Electronics Ltd.

     Aerospace & Defense          176,490          219,009  
 

Bharat Forge Ltd.

     Auto Components          13,320          113,877  
a  

Bharat Heavy Electricals Ltd.

     Electrical Equipment          65,934          48,548  
 

Bharat Petroleum Corp. Ltd.

     Oil, Gas & Consumable Fuels          52,947          198,377  
 

Bharti Airtel Ltd.

     Wireless Telecommunication Services          7,585          37,486  
 

Bharti Airtel Ltd.

     Wireless Telecommunication Services          123,432          1,213,666  
 

Bharti Infratel Ltd.

     Diversified Telecommunication Services          47,101          114,320  
 

Biocon Ltd.

     Biotechnology          24,605          87,999  
 

Bosch Ltd.

     Auto Components          444          86,315  
 

Britannia Industries Ltd.

     Food Products          6,364          300,637  
 

Canara Bank Ltd.

     Banks          19,573          55,037  
 

Castrol India Ltd.

     Chemicals          26,159          36,239  
a  

CG Power & Industrial Solutions Ltd.

     Electrical Equipment          37,333          108,165  
 

Cholamandalam Investment and Finance Co. Ltd.

     Consumer Finance          21,275          191,485  
 

Cipla Ltd.

     Pharmaceuticals          27,343          374,746  
 

Coal India Ltd.

     Oil, Gas & Consumable Fuels          100,640          262,575  
 

Coforge Ltd.

     IT Services          1,924          79,512  
 

Colgate-Palmolive India Ltd.

     Personal Products          7,067          141,546  
 

Container Corp. Of India Ltd.

     Road & Rail          14,578          127,526  
 

Coromandel International Ltd.

     Chemicals          5,772          70,540  
 

Cummins India Ltd.

     Machinery          7,104          104,428  
 

Dabur India Ltd.

     Personal Products          31,043          218,633  
 

Dalmia Bharat Ltd.

     Construction Materials          4,440          87,216  
 

Deepak Nitrite Ltd.

     Chemicals          3,885          97,231  
 

Divi’s Laboratories Ltd.

     Life Sciences Tools & Services          6,808          310,075  

 

           
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Semiannual Report

             223


FRANKLIN TEMPLETON ETF TRUST

SCHEDULE OF INVESTMENTS (UNAUDITED)

 

Franklin FTSE India ETF (continued)

 

           Industry      Shares        Value  
    Common Stocks (continued)                       
    India (continued)                       
 

Dixon Technologies India Ltd.

     Household Durables        1,887        $ 101,402  
 

DLF Ltd.

     Real Estate Management & Development        33,115          145,199  
b  

Dr Lal PathLabs Ltd., 144A

     Health Care Providers & Services        1,887          58,424  
 

Dr Reddy’s Laboratories Ltd.

     Pharmaceuticals        6,438          343,120  
 

Eicher Motors Ltd.

     Automobiles        7,400          333,982  
 

Emami Ltd.

     Personal Products        11,285          69,956  
 

Embassy Office Parks REIT

     Equity Real Estate Investment Trusts (REITs      32,523          138,262  
 

Exide Industries Ltd.

     Auto Components        24,346          46,970  
 

Federal Bank Ltd.

     Banks        83,102          121,306  
a  

FSN E-Commerce Ventures Ltd.

     Internet & Catalog Retail        3,219          50,336  
 

GAIL India Ltd.

     Gas Utilities        140,655          150,508  
b  

General Insurance Corp. of India, 144A

     Insurance        5,624          8,500  
 

Gillette India Ltd.

     Personal Products        370          23,532  
 

GlaxoSmithKline Pharmaceuticals Ltd.

     Pharmaceuticals        2,257          39,518  
 

Glenmark Pharmaceuticals Ltd.

     Pharmaceuticals        7,992          38,181  
a  

GMR Infrastructure Ltd.

     Construction & Engineering        132,275          57,803  
a  

Godrej Consumer Products Ltd.

     Personal Products        19,351          216,569  
a  

Godrej Industries Ltd.

     Chemicals        4,736          25,557  
a  

Godrej Properties Ltd.

     Real Estate Management & Development        4,773          70,048  
 

Grasim Industries Ltd.

     Construction Materials        20,498          422,010  
 

Gujarat Fluorochemicals Ltd.

     Chemicals        1,850          89,720  
 

Gujarat Gas Ltd.

     Gas Utilities        10,397          64,317  
 

Havells India Ltd.

     Electrical Equipment        12,765          211,604  
 

HCL Technologies Ltd.

     IT Services        57,942          664,061  
b  

HDFC Asset Management Co. Ltd., 144A

     Capital Markets        3,663          85,083  
b  

HDFC Life Insurance Co. Ltd., 144A

     Insurance        51,726          337,279  
 

Hero MotoCorp Ltd.

     Automobiles        6,956          217,971  
 

Hindalco Industries Ltd.

     Metals & Mining        75,295          361,475  
 

Hindustan Aeronautics Ltd.

     Aerospace & Defense        4,440          127,978  
 

Hindustan Petroleum Corp. Ltd.

     Oil, Gas & Consumable Fuels        37,481          99,656  
 

Hindustan Unilever Ltd.

     Household Products        47,323          1,568,557  
 

Hindustan Zinc Ltd.

     Metals & Mining        12,358          40,590  
 

Honeywell Automation India Ltd.

     Electronic Equipment, Instruments & Components        119          58,518  
 

Housing Development Finance Corp. Ltd.

     Thrifts & Mortgage Finance        93,573          2,631,449  
 

ICICI Bank Ltd.

     Banks        83,546          885,256  
b,c  

ICICI Lombard General Insurance Co. Ltd., 144A, Reg S

     Insurance        12,728          180,106  
b,c  

ICICI Prudential Life Insurance Co. Ltd., 144A, Reg S

     Insurance        20,572          133,002  
a  

IDFC First Bank Ltd.

     Banks        164,354          100,712  
 

Indian Hotels Co. Ltd.

     Hotels, Restaurants & Leisure        44,215          180,281  
 

Indian Oil Corp. Ltd.

     Oil, Gas & Consumable Fuels        216,820          178,437  
 

Indian Railway Catering and Tourism Corp. Ltd.

     Commercial Services & Supplies        14,060          122,019  
b  

Indian Railway Finance Corp. Ltd., 144A

     Diversified Financial Services        92,685          24,211  
 

Indraprastha Gas Ltd.

     Gas Utilities        18,352          89,514  
 

Info Edge India Ltd.

     Interactive Media & Services        4,070          193,146  
 

Infosys Ltd.

     IT Services        189,588          3,294,026  
a,b,c  

InterGlobe Aviation Ltd., 144A, Reg S

     Airlines        5,698          129,949  
 

Ipca Laboratories Ltd.

     Pharmaceuticals        7,400          83,232  
 

ITC Ltd.

     Tobacco        157,842          644,552  
 

Jindal Steel & Power Ltd.

     Metals & Mining        20,868          109,943  
 

JSW Energy Ltd.

     Independent Power Producers & Energy Traders        20,646          76,225  
 

JSW Steel Ltd.

     Metals & Mining        53,502          415,415  
 

Jubilant Foodworks Ltd.

     Hotels, Restaurants & Leisure        19,388          148,405  
 

Kansai Nerolac Paints Ltd.

     Chemicals        6,882          41,422  
 

L&T Finance Holdings Ltd.

     Diversified Financial Services        45,769          42,027  
b  

L&T Technology Services Ltd., 144A

     Professional Services        1,406          62,074  
b,c  

Larsen & Toubro Infotech Ltd.,, 144A, Reg S

     IT Services        2,368          129,761  

 

           
224             

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  franklintempleton.com


FRANKLIN TEMPLETON ETF TRUST

SCHEDULE OF INVESTMENTS (UNAUDITED)

 

Franklin FTSE India ETF (continued)

 

           Industry        Shares        Value  
    Common Stocks (continued)                         
    India (continued)                         
 

Larsen & Toubro Ltd.

     Construction & Engineering          36,778        $ 835,325  
b  

Laurus Labs Ltd., 144A

     Pharmaceuticals          19,166          120,861  
 

LIC Housing Finance Ltd.

     Thrifts & Mortgage Finance          17,723          90,160  
 

Linde India Ltd.

     Chemicals          1,147          46,694  
 

Lupin Ltd.

     Pharmaceuticals          12,913          107,914  
a  

Macrotech Developers Ltd.

     Real Estate Management & Development          4,144          47,078  
 

Mahindra & Mahindra Financial Services Ltd.

     Consumer Finance          31,339          71,364  
 

Mahindra & Mahindra Ltd.

     Automobiles          49,136          765,990  
a  

Mangalore Refinery & Petrochemicals Ltd.

     Oil, Gas & Consumable Fuels          11,544          8,422  
 

Marico Ltd.

     Personal Products          27,528          182,000  
 

Maruti Suzuki India Ltd.

     Automobiles          7,067          766,903  
a  

Max Financial Services Ltd.

     Insurance          12,987          121,742  
a  

Max Healthcare Institute Ltd.

     Health Care Providers & Services          39,146          196,280  
 

Minda Industries Ltd.

     Auto Components          8,917          61,284  
 

Mindtree Ltd.

     IT Services          2,331          90,521  
 

Mphasis Ltd.

     IT Services          4,810          123,435  
 

MRF Ltd.

     Auto Components          148          148,552  
 

Muthoot Finance Ltd.

     Consumer Finance          5,735          73,320  
 

Nestle India Ltd.

     Food Products          1,924          452,785  
 

NHPC Ltd.

     Independent Power Producers & Energy Traders          119,473          52,429  
b  

Nippon Life India Asset Management Ltd., 144A

     Capital Markets          8,473          27,981  
 

NMDC Ltd.

     Metals & Mining          61,383          96,393  
 

NTPC Ltd.

     Independent Power Producers & Energy Traders          236,948          465,005  
 

Oberoi Realty Ltd.

     Real Estate Management & Development          6,179          69,711  
 

Oil & Natural Gas Corp. Ltd.

     Oil, Gas & Consumable Fuels          196,581          306,406  
 

Oil India Ltd.

     Oil, Gas & Consumable Fuels          17,649          37,847  
a  

One 97 Communications Ltd.

     IT Services          4,921          38,590  
 

Oracle Financial Services Software Ltd.

     Software          1,221          44,764  
 

Page Industries Ltd.

     Textiles, Apparel & Luxury Goods          306          190,579  
a  

PB Fintech Ltd.

     Insurance          8,510          49,433  
 

Persistent Systems Ltd.

     IT Services          2,553          101,717  
 

Petronet LNG Ltd.

     Oil, Gas & Consumable Fuels          40,552          99,646  
 

PI Industries Ltd.

     Chemicals          3,848          141,825  
 

Pidilite Industries Ltd.

     Chemicals          8,103          267,968  
 

Piramal Enterprises Ltd.

     Pharmaceuticals          6,707          71,253  
a  

Piramal Pharma Ltd.

     Pharmaceuticals          27,528          74,149  
 

Polycab India Ltd.

     Electrical Equipment          1,369          43,093  
 

Power Finance Corp. Ltd.

     Diversified Financial Services          62,900          80,876  
 

Power Grid Corp. of India Ltd.

     Electric Utilities          167,980          438,166  
 

Punjab National Bank

     Banks          58,386          26,232  
 

Rajesh Exports Ltd.

     Textiles, Apparel & Luxury Goods          7,326          52,123  
a,b,c  

RBL Bank Ltd., 144A, Reg S

     Banks          24,309          33,990  
 

REC Ltd.

     Diversified Financial Services          67,093          77,525  
 

Relaxo Footwears Ltd.

     Textiles, Apparel & Luxury Goods          3,922          48,541  
 

Reliance Industries Ltd.

     Oil, Gas & Consumable Fuels          179,413          5,243,918  
 

Samvardhana Motherson International Ltd.

     Auto Components          76,960          103,116  
 

SBI Cards & Payment Services Ltd.

     Consumer Finance          15,392          172,838  
b  

SBI Life Insurance Co. Ltd., 144A

     Insurance          22,422          344,649  
 

Schaeffler India Ltd.

     Machinery          2,146          84,740  
 

Shree Cement Ltd.

     Construction Materials          740          191,325  
 

Shriram Transport Finance Co. Ltd.

     Consumer Finance          10,545          155,230  
 

Siemens Ltd.

     Industrial Conglomerates          4,736          161,307  
b  

Sona Blw Precision Forgings Ltd., 144A

     Auto Components          13,986          79,728  
 

SRF Ltd.

     Chemicals          7,511          231,139  
a  

Star Health & Allied Insurance Co. Ltd.

     Insurance          4,403          38,225  
 

State Bank of India

     Banks          95,386          622,139  
 

Steel Authority of India Ltd.

     Metals & Mining          78,033          73,619  
 

Sun Pharmaceutical Industries Ltd.

     Pharmaceuticals          58,016          676,534  

 

           
franklintempleton.com  

Semiannual Report

             225


FRANKLIN TEMPLETON ETF TRUST    

SCHEDULE OF INVESTMENTS (UNAUDITED)

 

Franklin FTSE India ETF (continued)

 

           Industry        Shares        Value  
    Common Stocks (continued)                         
    India (continued)                         
 

Sun TV Network Ltd.

     Media          5,143        $ 32,169  
 

Tata Communications Ltd.

     Diversified Telecommunication Services          6,179          87,409  
 

Tata Consultancy Services Ltd.

     IT Services          54,501          2,012,888  
 

Tata Consumer Products Ltd.

     Food Products          32,227          318,046  
 

Tata Elxsi Ltd.

     Software          1,813          190,690  
a  

Tata Motors Ltd.

     Automobiles          20,387          49,031  
a  

Tata Motors Ltd., A

     Automobiles          98,050          487,651  
 

Tata Power Co. Ltd.

     Electric Utilities          88,430          235,339  
 

Tata Steel Ltd.

     Metals & Mining          435,268          531,302  
a  

Tata Teleservices Maharashtra Ltd.

     Diversified Telecommunication Services          27,380          34,801  
 

Tech Mahindra Ltd.

     IT Services          32,301          400,471  
 

Titan Co. Ltd.

     Textiles, Apparel & Luxury Goods          22,200          711,412  
 

Torrent Pharmaceuticals Ltd.

     Pharmaceuticals          5,106          97,904  
 

Torrent Power Ltd.

     Electric Utilities          11,729          70,200  
 

Trent Ltd.

     Multiline Retail          9,731          169,856  
 

Tube Investments of India Ltd.

     Auto Components          5,217          175,993  
 

TVS Motor Co. Ltd.

     Automobiles          10,730          136,151  
 

UltraTech Cement Ltd.

     Construction Materials          6,105          469,414  
 

Union Bank of India Ltd.

     Banks          60,458          33,183  
 

United Breweries Ltd.

     Beverages          3,737          78,409  
a  

United Spirits Ltd.

     Beverages          15,392          159,367  
 

UPL Ltd.

     Chemicals          28,194          232,913  
 

Varun Beverages Ltd.

     Beverages          10,748          137,958  
 

Vedanta Ltd.

     Metals & Mining          66,082          219,363  
a  

Vodafone Idea Ltd.

     Wireless Telecommunication Services          432,604          46,796  
 

Voltas Ltd.

     Construction & Engineering          12,210          136,049  
 

Whirlpool of India Ltd.

     Household Durables          1,665          33,453  
 

Wipro Ltd.

     IT Services          67,303          326,168  
a  

Yes Bank Ltd.

     Banks          661,100          127,180  
 

Zee Entertainment Enterprises Ltd.

     Media          44,326          140,659  
a  

Zomato Ltd.

     Internet & Catalog Retail          243,497          186,623  
 

Zydus Lifesciences Ltd.

     Pharmaceuticals          13,690          65,109  
              

 

 

 
 

Total Investments
(Cost $49,608,914) 101.3%

               53,998,101  
 

Other Assets, less Liabilities (1.3)%

               (673,174
              

 

 

 
 

Net Assets 100.0%

             $ 53,324,927  
              

 

 

 

aNon-income producing.

bSecurity was purchased pursuant to Rule 144A under the Securities Act of 1933 and may be sold in transactions exempt from registration only to qualified institutional buyers or in a public offering registered under the Securities Act of 1933. At September 30, 2022, the value of was $2,455,739, representing 4.6% of net assets.

cSecurity was purchased pursuant to Regulation S under the Securities Act of 1933, which exempts from registration securities offered and sold outside of the United States. Such a security cannot be sold in the United States without either an effective registration statement filed pursuant to the Securities Act of 1933, or pursuant to an exemption from registration. At September 30, 2022, the value of was $606,808, representing 1.1% of net assets.

See Abbreviations on page 332.

 

           
226             

Semiannual Report    |   The accompanying notes are an integral part of these financial statements.

  franklintempleton.com


FRANKLIN TEMPLETON ETF TRUST

 

Financial Highlights

 

Franklin FTSE Italy ETF

 

    

Six Months Ended

September 30, 2022

(unaudited)

     Year Ended March 31,  
   2022      2021      2020      2019      2018a  
Per share operating performance
(for a share outstanding throughout the period)
                

Net asset value, beginning of period

  $ 24.65      $ 26.50      $ 17.61      $ 23.13      $ 26.27      $ 25.51  
 

 

 

 
Income from investment operationsb:                 

Net investment incomec

    0.63        0.85        0.67        0.90        0.46        0.11  

Net realized and unrealized gains (losses)

    (6.84      (1.59      8.80        (5.52      (2.99      0.70  
 

 

 

 

Total from investment operations

    (6.21      (0.74      9.47        (4.62      (2.53      0.81  
 

 

 

 

Less distributions from net investment income

    (0.57      (1.11      (0.58      (0.90      (0.61      (0.05
 

 

 

 

Net asset value, end of period

  $ 17.87      $ 24.65      $ 26.50      $ 17.61      $ 23.13      $ 26.27  
 

 

 

 

Total returnd

    (25.44)%        (3.15)%        54.64%        (20.84)%        (9.67)%        3.19%  
Ratios to average net assetse                 

Total expenses

    0.09%        0.09%        0.09%        0.09%        0.09%        0.09%  

Net investment income

    5.99%        3.15%        3.04%        3.85%        2.05%        1.01%  
Supplemental data                 

Net assets, end of period (000’s)

    $2,681        $3,698        $3,974        $2,641        $10,410        $2,627  

Portfolio turnover ratef

    5.49% g       12.75% g       17.45%g        9.89% g       16.67%        3.09%  

 

 

aFor the period November 2, 2017 (commencement of operations) to March 31, 2018.

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

cBased on average daily shares outstanding.

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

eRatios are annualized for periods less than one year.

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

 

gPortfolio turnover rate excluding cash creations was as follows:     5.49%        12.75%        17.45%        9.89%        

 

           
franklintempleton.com  

The accompanying notes are an integral part of these financial statements.    |   Semiannual Report

             227


FRANKLIN TEMPLETON ETF TRUST

 

Schedule of Investments, September 30, 2022 (unaudited)

 

Franklin FTSE Italy ETF

 

             Industry        Shares        Value  
    Common Stocks 99.9%                           
    Italy 88.8%                           
 

A2A SpA

       Multi-Utilities          16,890        $ 16,543  
 

Amplifon SpA

       Health Care Providers & Services        1,428          37,632  
 

Assicurazioni Generali SpA

       Insurance          11,868          163,003  
 

Atlantia SpA

       Transportation Infrastructure          4,503          99,741  
 

Banca Mediolanum SpA

       Diversified Financial Services          2,664          16,885  
 

Buzzi Unicem SpA

       Construction Materials          954          13,631  
 

Davide Campari-Milano NV

       Beverages          5,526          49,328  
 

De’ Longhi SpA

       Household Durables          765          11,294  
 

DiaSorin SpA

       Health Care Equipment & Supplies          248          27,891  
 

Enel SpA

       Electric Utilities          63,438          262,509  
 

Eni SpA

       Oil, Gas & Consumable Fuels          20,319          217,169  
 

Ferrari NV

       Automobiles          1,022          191,930  
 

FinecoBank Banca Fineco SpA

       Banks          6,780          84,586  
 

Hera SpA

       Multi-Utilities          8,706          18,644  
a,b  

Infrastrutture Wireless Italiane SpA, 144A, Reg S

       Diversified Telecommunication Services          3,912          34,377  
 

Interpump Group SpA

       Machinery          885          28,975  
 

Intesa Sanpaolo SpA

       Banks          137,676          229,664  
 

Italgas Reti SpA

       Gas Utilities          5,460          25,546  
 

Leonardo SpA

       Aerospace & Defense          4,431          31,567  
 

Mediobanca Banca di Credito Finanziario SpA

       Banks          7,203          56,875  
 

Moncler SpA

       Textiles, Apparel & Luxury Goods          2,043          84,840  
a,c  

Nexi SpA, 144A

       IT Services          8,415          68,769  
a  

Pirelli & C SpA, 144A

       Auto Components          5,421          17,844  
a,b  

Poste Italiane SpA, 144A, Reg S

       Insurance          5,067          38,669  
 

Prysmian SpA

       Electrical Equipment          2,763          80,175  
 

Recordati Industria Chimica e Farmaceutica SpA

       Pharmaceuticals          1,077          39,766  
 

Reply SpA

       IT Services          251          26,458  
 

Snam SpA

       Gas Utilities          20,376          82,760  
c  

Telecom Italia SpA

       Diversified Telecommunication Services          118,872          22,161  
c  

Telecom Italia SpA/Milano

       Diversified Telecommunication Services          67,173          12,174  
 

Tenaris SA

       Energy Equipment & Services          5,190          67,444  
 

Terna - Rete Elettrica Nazionale

       Electric Utilities          13,365          81,831  
 

UniCredit SpA

       Banks          12,660          129,704  
 

UnipolSai Assicurazioni SpA

       Insurance          4,719          9,847  
                

 

 

 
                   2,380,232  
                

 

 

 
    United Kingdom 3.5%                           
 

CNH Industrial NV

       Machinery          8,307          94,644  
                

 

 

 
    United States 7.6%                           
 

Stellantis NV

       Automobiles          16,971          204,030  
                

 

 

 
 

Total Investments (Cost $ 3,322,879) 99.9%

                 2,678,906  
 

Other Assets, less Liabilities 0.1%

                 2,131  
                

 

 

 
 

Net Assets 100.0%

               $ 2,681,037  
                

 

 

 

aSecurity was purchased pursuant to Rule 144A under the Securities Act of 1933 and may be sold in transactions exempt from registration only to qualified institutional buyers or in a public offering registered under the Securities Act of 1933. At September 30, 2022, the value of was $159,659, representing 6.0% of net assets.

bSecurity was purchased pursuant to Regulation S under the Securities Act of 1933, which exempts from registration securities offered and sold outside of the United States. Such a security cannot be sold in the United States without either an effective registration statement filed pursuant to the Securities Act of 1933, or pursuant to an exemption from registration. At September 30, 2022, the value of was $73,046, representing 2.7% of net assets.

cNon-income producing.

 

           
228             

Semiannual Report

  franklintempleton.com


FRANKLIN TEMPLETON ETF TRUST

 

Financial Highlights

 

Franklin FTSE Japan ETF

 

    

Six Months Ended

September 30, 2022

(unaudited)

    Year Ended March 31,  
  2022     2021     2020     2019     2018a  
Per share operating performance
(for a share outstanding throughout the period)
           

Net asset value, beginning of period

  $ 27.42     $ 30.25     $ 21.93     $ 24.18     $ 26.69     $ 25.91  
 

 

 

 
Income from investment operationsb:            

Net investment income

    0.29       0.63       0.53       0.56       0.59       0.44  

Net realized and unrealized gains (losses)

    (5.84     (2.76     8.24       (2.22     (2.76     0.37  
 

 

 

 

Total from investment operations

    (5.55     (2.13     8.77       (1.66     (2.17     0.81  
 

 

 

 

Less distributions from net investment income

    (0.26     (0.70     (0.45     (0.59     (0.34     (0.03
 

 

 

 

Net asset value, end of period

  $ 21.61     $ 27.42     $ 30.25     $ 21.93     $ 24.18     $ 26.69  
 

 

 

 

Total returnc

    (20.31)%       7.21%       40.23%       (7.15)%       (8.10)%       3.11%  
Ratios to average net assetsd            

Expenses before waiver and payments by affiliates

    0.09%       0.09%       0.09%       0.09%       0.09%       0.09%  

Expenses net of waiver and payments by affiliates

    0.09%       0.09%       0.09%       0.09%       0.09%       0.09%  

Net investment income

    2.40%       2.14%       1.98%       2.30%       2.39%       4.07%  
Supplemental data            

Net assets, end of period (000’s)

    $777,972       $789,637       $598,934       $315,851       $290,205       $96,082  

Portfolio turnover ratee

    1.68% f      2.95% f      5.76% f      4.59% f      4.35%       0.93%  

aFor the period November 2, 2017 (commencement of operations) to March 31, 2018.

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.

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

dRatios are annualized for periods less than one year.

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

 

fPortfolio turnover rate excluding cash creations was as follows:     1.68%       2.80%       5.76%       4.51%      

 

           
franklintempleton.com  

The accompanying notes are an integral part of these financial statements.    |   Semiannual Report

             229


FRANKLIN TEMPLETON ETF TRUST

 

Schedule of Investments, September 30, 2022 (unaudited)

 

Franklin FTSE Japan ETF

 

           Industry      Shares        Value  
    Common Stocks 98.9%                       
    Japan 98.9%                       
 

ABC-Mart Inc.

     Specialty Retail        6,000        $ 258,247  
 

Acom Co. Ltd.

     Consumer Finance        90,000          193,375  
 

Activia Properties Inc.

     Equity Real Estate Investment Trusts (REITs      180          526,029  
 

Advance Residence Investment

     Equity Real Estate Investment Trusts (REITs )      300          734,740  
 

Advantest Corp.

     Semiconductors & Semiconductor Equipment        48,000          2,221,838  
 

AEON Co. Ltd.

     Food & Staples Retailing        168,000          3,137,849  
 

AEON Financial Service Co. Ltd.

     Consumer Finance        30,000          296,798  
 

AEON Mall Co. Ltd.

     Real Estate Management & Development        30,000          333,690  
 

AEON REIT Investment Corp.

     Equity Real Estate Investment Trusts (REITs )      420          452,658  
 

AGC Inc.

     Building Products        42,000          1,302,843  
 

Aica Kogyo Co. Ltd.

     Building Products        12,000          259,491  
 

AIN Holdings Inc.

     Food & Staples Retailing        6,000          259,076  
 

Air Water Inc.

     Chemicals        42,000          495,603  
 

Aisin Seiki Co. Ltd.

     Auto Components        42,000          1,076,514  
 

Ajinomoto Co. Inc.

     Food Products        114,000          3,120,439  
 

Alfresa Holdings Corp.

     Health Care Providers & Services        36,000          420,325  
 

Alps Alpine Co. Ltd.

     Electronic Equipment, Instruments & Components      48,000          346,872  
 

Amada Co. Ltd.

     Machinery        72,000          487,975  
 

Amano Corp.

     Electronic Equipment, Instruments & Components      18,000          302,187  
a  

ANA Holdings Inc.

     Airlines        36,000          676,003  
 

Anritsu Corp.

     Electronic Equipment, Instruments & Components        30,000          327,265  
 

Aozora Bank Ltd.

     Banks        30,000          535,148  
 

Ariake Japan Co. Ltd.

     Food Products      6,000          208,090  
 

As One Corp.

     Health Care Providers & Services        6,000          248,299  
 

Asahi Group Holdings Ltd.

     Beverages        114,000          3,531,562  
 

Asahi Intecc Co. Ltd.

     Health Care Equipment & Supplies        48,000          768,358  
 

Asahi Kasei Corp.

     Chemicals        294,000          1,940,772  
 

Asics Corp.

     Textiles, Apparel & Luxury Goods        42,000          667,381  
 

ASKUL Corp.

     Internet & Direct Marketing Retail        12,000          123,859  
 

Astellas Pharma Inc.

     Pharmaceuticals        438,000          5,800,864  
 

Azbil Corp.

     Electronic Equipment, Instruments & Components        30,000          781,374  
 

Bandai Namco Holdings Inc.

     Leisure Products        46,240          3,013,451  
 

BayCurrent Consulting Inc.

     Professional Services        2,841          738,980  
 

Benefit One Inc.

     Professional Services        12,000          168,545  
 

Benesse Holdings Inc.

     Diversified Consumer Services        18,000          267,989  
 

BIC CAMERA Inc.

     Specialty Retail        36,000          307,658  
 

Bridgestone Corp.

     Auto Components        138,000          4,451,428  
 

Brother Industries Ltd.

     Technology Hardware, Storage & Peripherals        54,000          929,317  
 

Calbee Inc.

     Food Products        18,000          385,506  
 

CANON Inc.

     Technology Hardware, Storage & Peripherals        234,000          5,127,970  
 

Canon Marketing Japan Inc.

     Electronic Equipment, Instruments & Components      12,000          265,294  
 

Capcom Co. Ltd.

     Entertainment        42,000          1,056,202  
 

Casio Computer Co. Ltd.

     Household Durables        48,000          420,823  
 

Central Japan Railway Co.

     Road & Rail        43,260          5,061,371  
 

Chubu Electric Power Co. Inc.

     Electric Utilities        168,000          1,513,503  
 

Chugai Pharmaceutical Co. Ltd.

     Pharmaceuticals        154,900          3,880,392  
 

Chuo Mitsui Trust Holdings Inc.

     Banks        84,000          2,378,776  
 

Coca-Cola Bottlers Japan Holdings Inc.

     Beverages        30,000          290,995  
 

COMSYS Holdings Corp.

     Construction & Engineering        24,000          408,221  
 

Concordia Financial Group Ltd.

     Banks        264,000          815,282  
 

Cosmo Energy Holdings Co. Ltd.

     Oil, Gas & Consumable Fuels        18,000          461,363  
 

Cosmos Pharmaceutical Corp.

     Food & Staples Retailing        4,200          416,387  
 

Credit Saison Co. Ltd.

     Consumer Finance        36,000          420,823  
 

CyberAgent Inc.

     Media        102,000          858,309  
 

Dai Nippon Printing Co. Ltd.

     Commercial Services & Supplies        60,000          1,202,114  
 

Daicel Corp.

     Chemicals        60,000          352,758  
 

Daido Steel Co. Ltd.

     Metals & Mining        8,200          199,413  

 

           
230             

Semiannual Report

  franklintempleton.com


FRANKLIN TEMPLETON ETF TRUST

SCHEDULE OF INVESTMENTS (UNAUDITED)

 

Franklin FTSE Japan ETF (continued)

 

           Industry      Shares        Value  
    Common Stocks (continued)                       
    Japan (continued)                       
 

Daifuku Co. Ltd.

     Machinery        24,000        $ 1,129,158  
 

Dai-ichi Life Holdings Inc.

     Insurance        234,000          3,705,330  
 

Daiichi Sankyo Co. Ltd.

     Pharmaceuticals        450,000          12,566,237  
 

Daiichikosho Co. Ltd.

     Entertainment        12,000          337,421  
 

Daikin Industries Ltd.

     Building Products        63,480          9,777,793  
 

Daio Paper Corp.

     Paper & Forest Products        18,000          144,254  
 

Daito Trust Construction Co. Ltd.

     Real Estate Management & Development        15,430          1,446,579  
 

Daiwa House Industry Co. Ltd.

     Real Estate Management & Development        150,000          3,050,364  
 

Daiwa House Residential Investment Corp.

     Equity Real Estate Investment Trusts (REITs      480          998,169  
 

Daiwa Office Investment Corp.

     Equity Real Estate Investment Trusts (REITs      60          278,559  
 

Daiwa Securities Group Inc.

     Capital Markets        348,000          1,361,755  
 

Daiwa Securities Living Investments Corp.

     Equity Real Estate Investment Trusts (REITs      480          380,697  
 

DeNA Co. Ltd.

     Entertainment        18,000          227,448  
 

Denka Co. Ltd.

     Chemicals        18,000          394,832  
 

Denso Corp.

     Auto Components        108,000          4,914,076  
 

Dentsu Group Inc.

     Media        48,000          1,362,949  
 

Descente Ltd.

     Textiles, Apparel & Luxury Goods        12,000          275,657  
 

DIC Corp.

     Chemicals        18,000          299,326  
 

Disco Corp.

     Semiconductors & Semiconductor Equipment        6,720          1,485,647  
 

DMG Mori Co. Ltd.

     Machinery        24,000          273,585  
 

Dowa Holdings Co. Ltd.

     Metals & Mining        12,000          430,274  
 

East Japan Railway Co.

     Road & Rail        87,100          4,465,571  
 

EBARA Corp.

     Machinery        24,000          785,105  
 

Eisai Co. Ltd.

     Pharmaceuticals        62,740          3,358,819  
 

Electric Power Development Co. Ltd.

     Independent Power Producers & Energy Traders        42,000          594,259  
 

ENEOS Holdings Inc.

     Oil, Gas & Consumable Fuels        690,000          2,217,134  
 

Ezaki Glico Co. Ltd.

     Food Products        12,000          295,554  
 

Fancl Corp.

     Personal Products        18,000          357,650  
 

FANUC Corp.

     Machinery        45,800          6,410,639  
 

Fast Retailing Co. Ltd.

     Specialty Retail        12,200          6,465,591  
 

FP Corp.

     Containers & Packaging        12,000          294,725  
 

Frontier Real Estate Investment Corp.

     Equity Real Estate Investment Trusts (REITs      120          441,881  
 

Fuji Electric Co. Ltd.

     Electrical Equipment        30,000          1,096,411  
 

Fuji Kyuko Co. Ltd.

     Hotels, Restaurants & Leisure        6,000          177,415  
 

Fuji Media Holdings Inc.

     Media        12,000          88,044  
 

Fuji Oil Holdings Inc.

     Food Products        12,000          199,468  
 

FUJIFILM Holdings Corp.

     Technology Hardware, Storage & Peripherals        84,000          3,835,407  
 

Fujitsu General Ltd.

     Household Durables        12,000          249,128  
 

Fujitsu Ltd.

     IT Services        44,050          4,803,822  
 

Fukuoka Financial Group Inc.

     Banks        36,000          638,198  
 

Furukawa Electric Co. Ltd.

     Electrical Equipment        18,000          285,150  
 

Fuyo General Lease Co. Ltd.

     Diversified Financial Services        6,000          327,058  
 

GLP J-Reit

     Equity Real Estate Investment Trusts (REITs      1,020          1,128,205  
 

GMO internet Inc.

     IT Services        12,000          211,240  
 

GMO Payment Gateway Inc.

     IT Services        9,700          666,793  
 

Goldwin Inc.

     Textiles, Apparel & Luxury Goods        8,400          444,534  
 

GS Yuasa Corp.

     Electrical Equipment        18,000          280,797  
 

GungHo Online Entertainment Inc.

     Entertainment        6,000          92,231  
 

Hachijuni Bank Ltd.

     Banks        108,000          357,401  
 

Hakuhodo DY Holdings Inc.

     Media        54,000          379,785  
 

Hamamatsu Photonics K.K.

     Electronic Equipment, Instruments & Components      30,000          1,285,018  
 

Hankyu Hanshin Holdings Inc.

     Road & Rail        54,000          1,622,854  
 

Haseko Corp.

     Household Durables        60,000          651,214  
 

Heiwa Corp.

     Leisure Products        12,000          185,540  
 

Hikari Tsushin Inc.

     Specialty Retail        5,400          635,711  
 

Hino Motors Ltd.

     Machinery        66,000          271,761  
 

Hirogin Holdings Inc.

     Banks        72,000          302,435  

 

           
franklintempleton.com  

Semiannual Report

             231


FRANKLIN TEMPLETON ETF TRUST

SCHEDULE OF INVESTMENTS (UNAUDITED)

 

Franklin FTSE Japan ETF (continued)

 

           Industry      Shares        Value  
    Common Stocks (continued)                       
    Japan (continued)                       
 

Hirose Electric Co. Ltd.

     Electronic Equipment, Instruments & Components        7,800        $ 1,022,792  
 

Hisamitsu Pharmaceutical Co. Inc.

     Pharmaceuticals        18,000          422,191  
 

Hitachi Construction Machinery Co. Ltd.

     Machinery        24,000          443,704  
 

Hitachi Ltd.

     Industrial Conglomerates        216,000          9,123,797  
a  

Hitachi Metals Ltd.

     Metals & Mining        48,000          721,268  
 

Hitachi Transport System Ltd.

     Road & Rail        6,000          358,976  
 

Honda Motor Co. Ltd.

     Automobiles        402,000          8,712,384  
 

HORIBA Ltd.

    
Electronic Equipment, Instruments &
Components
 
 
     9,100          352,696  
 

Hoshizaki Corp.

     Machinery        24,000          669,039  
 

House Foods Group Inc.

     Food Products        18,000          359,018  
 

Hoya Corp.

     Health Care Equipment & Supplies        83,700          8,026,225  
 

Hulic Co. Ltd.

     Real Estate Management & Development        96,000          705,019  
 

Ibiden Co. Ltd.

    
Electronic Equipment, Instruments &
Components
 
 
     24,000          656,603  
 

Idemitsu Kosan Co. Ltd.

     Oil, Gas & Consumable Fuels        54,000          1,169,574  
 

IHI Corp.

     Machinery        30,000          642,509  
 

Iida Group Holdings Co. Ltd.

     Household Durables        30,000          406,853  
 

Industrial & Infrastructure Fund Investment Corp.

     Equity Real Estate Investment Trusts (REITs      480          544,185  
 

Information Services International-Dentsu Ltd.

     IT Services        6,000          183,633  
 

INFRONEER Holdings Inc.

     Construction & Engineering        54,000          367,101  
 

INPEX Corp.

     Oil, Gas & Consumable Fuels        234,000          2,197,009  
 

Internet Initiative Japan Inc.

     Diversified Telecommunication Services        24,000          368,261  
 

Isetan Mitsukoshi Holdings Ltd.

     Multiline Retail        84,000          712,066  
 

Isuzu Motors Ltd.

     Automobiles        126,000          1,390,183  
 

Ito En Ltd.

     Beverages        12,000          485,820  
 

ITOCHU Corp.

     Trading Companies & Distributors        318,000          7,691,582  
 

ITOCHU Techno-Solutions Corp.

     IT Services        24,000          562,092  
 

Itoham Yonekyu Holdings Inc.

     Food Products        30,000          138,036  
 

Iwatani Corp.

     Oil, Gas & Consumable Fuels        12,000          451,829  
 

Izumi Co. Ltd.

     Multiline Retail        12,000          257,418  
 

J Front Retailing Co. Ltd.

     Multiline Retail        60,000          487,478  
a  

Japan Airlines Co. Ltd.

     Airlines        36,000          642,178  
a  

Japan Airport Terminal Co. Ltd.

     Transportation Infrastructure        12,000          501,572  
 

Japan Aviatn Elect

     Electronic Equipment, Instruments & Components        12,000          175,757  
 

Japan Exchange Group Inc.

     Capital Markets        126,000          1,699,644  
 

Japan Hotel REIT Investment Corp.

     Equity Real Estate Investment Trusts (REITs      1,080          537,967  
 

Japan Logistics Fund Inc.

     Equity Real Estate Investment Trusts (REITs      240          514,836  
 

Japan Post Bank Co. Ltd.

     Banks        96,000          669,204  
 

Japan Post Holdings Co. Ltd.

     Insurance        516,000          3,414,095  
 

Japan Post Insurance Co. Ltd.

     Insurance        48,000          671,857  
 

Japan Prime Realty Investment Corp.

     Equity Real Estate Investment Trusts (REITs      240          651,629  
 

Japan Real Estate Investment Corp.

     Equity Real Estate Investment Trusts (REITs      300          1,237,348  
 

Japan Retail Fund Investment Corp.

     Equity Real Estate Investment Trusts (REITs      1,620          1,217,700  
 

Japan Tobacco Inc.

     Tobacco        282,000          4,625,155  
 

JCR Pharmaceuticals Co. Ltd.

     Pharmaceuticals        12,000          179,488  
 

Jeol Ltd.

     Health Care Equipment & Supplies        12,000          394,211  
 

JFE Holdings Inc.

     Metals & Mining        120,000          1,111,748  
 

JGC Holdings Corp.

     Construction & Engineering        54,000          674,883  
 

JMDC Inc.

     Health Care Technology        6,000          197,520  
 

JSR Corp.

     Chemicals        42,000          797,955  
 

JTEKT Corp.

     Auto Components        54,000          341,732  
 

Justsystems Corp.

     Software        6,000          138,658  
 

Kadokawa Corp.

     Media        24,000          441,383  
 

Kagome Co. Ltd.

     Food Products        18,000          374,935  
 

Kajima Corp.

     Construction & Engineering        102,000          967,536  
 

Kakaku.com Inc.

     Interactive Media & Services        30,000          510,277  
 

Kaken Pharmaceutical Co. Ltd.

     Pharmaceuticals        6,000          158,140  

 

           
232             

Semiannual Report

  franklintempleton.com


FRANKLIN TEMPLETON ETF TRUST

SCHEDULE OF INVESTMENTS (UNAUDITED)

 

Franklin FTSE Japan ETF (continued)

 

           Industry      Shares        Value  
    Common Stocks (continued)                       
    Japan (continued)                       
 

Kamigumi Co. Ltd.

     Transportation Infrastructure        24,000        $ 443,373  
 

Kandenko Co. Ltd.

     Construction & Engineering        24,000          137,953  
 

Kaneka Corp.

     Chemicals        12,000          299,285  
 

Kansai Paint Co. Ltd.

     Chemicals        42,000          593,969  
 

KAO Corp.

     Personal Products        108,000          4,400,732  
 

Katitas Co. Ltd.

     Real Estate Management & Development      12,000          266,538  
 

Kawasaki Heavy Industries Ltd.

     Machinery        36,000          543,936  
 

Kawasaki Kisen Kaisha Ltd.

     Marine        54,000          758,078  
 

KDDI Corp.

     Wireless Telecommunication Services        390,074          11,434,481  
 

Keihan Holdings Co. Ltd.

     Industrial Conglomerates        24,000          622,612  
 

Keikyu Corp.

     Road & Rail        60,000          607,689  
 

Keio Corp.

     Road & Rail        27,600          1,004,884  
 

Keisei Electric Railway Co. Ltd.

     Road & Rail        30,000          816,609  
 

Kenedix Office Investment Corp.

     Equity Real Estate Investment Trusts (REITs )      85          399,910  
 

Kewpie Corp.

     Food Products        24,000          394,625  
 

Keyence Corp.

     Electronic Equipment, Instruments & Components      46,422          15,362,284  
 

Kikkoman Corp.

     Food Products        42,000          2,379,357  
 

Kinden Corp.

     Construction & Engineering        30,000          316,695  
 

Kintetsu Group Holdings Co. Ltd.

     Road & Rail        42,000          1,398,598  
 

Kirin Holdings Co. Ltd.

     Beverages        180,000          2,769,422  
 

Kobayashi Pharmaceutical Co. Ltd.

     Personal Products        14,400          843,635  
 

Kobe Bussan Co. Ltd.

     Food & Staples Retailing        36,000          869,253  
 

Kobe Steel Ltd.

     Metals & Mining        78,000          312,550  
 

Koei Tecmo Holdings Co. Ltd.

     Entertainment        36,000          590,694  
 

Koito Manufacturing Co. Ltd.

     Auto Components        55,200          751,661  
 

Kokuyo Co. Ltd.

     Commercial Services & Supplies        18,000          228,319  
 

Komatsu Ltd.

     Machinery        216,000          3,896,342  
 

Konami Holdings Corp.

     Entertainment        24,000          1,107,603  
 

Konica Minolta Inc.

     Technology Hardware, Storage & Peripherals        108,000          332,778  
 

Kose Corp.

     Personal Products        6,860          706,166  
 

Kotobuki Spirits Co. Ltd.

     Food Products        6,000          346,126  
 

K’s Holdings Corp.

     Specialty Retail        36,000          297,212  
 

Kubota Corp.

     Machinery        258,000          3,572,020  
 

Kuraray Co. Ltd.

     Chemicals        78,000          544,806  
 

Kurita Water Industries Ltd.

     Machinery        24,000          855,574  
 

Kusuri no Aoki Holdings Co. Ltd.

     Food & Staples Retailing        3,900          183,488  
 

Kyocera Corp.

     Electronic Equipment, Instruments & Components        72,700          3,666,517  
 

Kyowa Exeo Corp.

     Construction & Engineering        24,000          346,706  
 

Kyowa Kirin Co. Ltd.

     Pharmaceuticals        60,000          1,374,141  
 

Kyudenko Corp.

     Construction & Engineering        12,000          227,987  
 

Kyushu Electric Power Co. Inc.

     Electric Utilities        108,000          576,020  
 

Kyushu Financial Group Inc.

     Banks        90,000          237,521  
 

Kyushu Railway Co.

     Road & Rail        36,000          777,229  
 

LaSalle Logiport REIT

     Equity Real Estate Investment Trusts (REITs      420          469,778  
 

Lasertec Corp.

     Semiconductors & Semiconductor Equipment        18,000          1,827,421  
 

Lawson Inc.

     Food & Staples Retailing        12,000          392,967  
 

LINTEC Corp.

     Chemicals        12,000          184,131  
 

Lion Corp.

     Household Products        60,000          678,158  
 

LIXIL Group Corp.

     Building Products        60,000          878,372  
 

M3 Inc.

     Health Care Technology        100,580          2,814,948  
 

Mabuchi Motor Co. Ltd.

     Electrical Equipment        12,000          325,814  
 

Makita Corp.

     Machinery        60,000          1,160,247  
 

Mani Inc.

     Health Care Equipment & Supplies        12,000          145,746  
 

Marubeni Corp.

     Trading Companies & Distributors        366,000          3,206,245  
 

Marui Group Co. Ltd.

     Multiline Retail        42,000          695,817  
 

Maruichi Steel Tube Ltd.

     Metals & Mining        12,000          245,314  
 

Maruwa Unyu Kikan Co. Ltd.

     Air Freight & Logistics        12,000          120,294  

 

           
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             233


FRANKLIN TEMPLETON ETF TRUST

SCHEDULE OF INVESTMENTS (UNAUDITED)

 

Franklin FTSE Japan ETF (continued)

 

           Industry      Shares        Value  
    Common Stocks (continued)                       
    Japan (continued)                       
 

Matsui Securities Co. Ltd.

     Capital Markets        24,000        $ 129,331  
 

Matsumotokiyoshi Holdings Co. Ltd.

     Food & Staples Retailing        30,000          1,291,236  
 

Mazda Motor Corp.

     Automobiles        138,000          911,451  
 

Mebuki Financial Group Inc.

     Banks        240,000          467,581  
 

Medipal Holdings Corp.

     Health Care Providers & Services        36,000          458,379  
 

Meiji Holdings Co. Ltd.

     Food Products        30,000          1,332,689  
 

Menicon Co. Ltd.

     Health Care Equipment & Supplies      12,000          246,475  
 

Minebea Mitsumi Inc.

     Machinery        96,000          1,418,660  
 

Miraca Holdings Inc.

     Health Care Providers & Services        12,000          218,868  
 

MISUMI Group Inc.

     Machinery        66,000          1,422,640  
 

Mitsubishi Chemical Holdings Corp.

     Chemicals        306,000          1,398,664  
 

Mitsubishi Corp.

     Trading Companies & Distributors        282,000          7,730,671  
 

Mitsubishi Electric Corp.

     Electrical Equipment        462,000          4,163,729  
 

Mitsubishi Estate Co. Ltd.

     Real Estate Management & Development        270,000          3,537,635  
 

Mitsubishi Gas Chemical Co. Inc.

     Chemicals        42,000          550,154  
 

Mitsubishi Heavy Industries Ltd.

     Machinery        66,000          2,191,412  
 

Mitsubishi Logistics Corp.

     Transportation Infrastructure        12,000          282,704  
 

Mitsubishi Materials Corp.

     Metals & Mining        30,000          412,242  
a  

Mitsubishi Motors Corp.

     Automobiles        150,000          536,806  
 

Mitsubishi UFJ Financial Group Inc.

     Banks        2,856,000          12,854,910  
 

Mitsubishi UFJ Lease & Finance Co. Ltd.

     Diversified Financial Services        150,660          647,418  
 

Mitsui & Co. Ltd.

     Trading Companies & Distributors        372,000          7,938,844  
 

Mitsui Chemicals Inc.

     Chemicals        42,000          817,976  
 

Mitsui Fudosan Co. Ltd.

     Real Estate Management & Development        216,000          4,110,484  
 

Mitsui Fudosan Logistics Park Inc.

     Equity Real Estate Investment Trusts (REITs      120          410,377  
 

Mitsui High-Tec Inc.

     Semiconductors & Semiconductor Equipment        6,000          282,290  
 

Mitsui Mining and Smelting Co. Ltd.

     Metals & Mining        12,000          252,029  
 

Mitsui OSK Lines Ltd.

     Marine        78,000          1,402,162  
 

Miura Co. Ltd.

     Machinery        24,000          488,473  
 

Mizuho Financial Group Inc.

     Banks        606,000          6,541,677  
a  

Money Forward Inc.

     Software        12,000          255,346  
 

MonotaRO Co. Ltd.

     Trading Companies & Distributors        56,400          865,804  
 

Mori Hills REIT Investment Corp.

     Equity Real Estate Investment Trusts (REITs      360          388,739  
 

Morinaga & Co. Ltd.

     Food Products        6,000          164,773  
 

Morinaga Milk Industry Co. Ltd.

     Food Products        6,000          176,379  
 

MS&AD Insurance Group Holdings Inc.

     Insurance        109,900          2,912,546  
 

Murata Manufacturing Co. Ltd.

     Electronic Equipment, Instruments & Components        134,830          6,177,710  
 

Nabtesco Corp.

     Machinery        24,000          489,965  
 

Nagase & Co. Ltd.

     Trading Companies & Distributors        24,000          326,809  
 

Nagoya Railroad Co. Ltd.

     Road & Rail        48,000          737,518  
 

Nankai Electric Railway Co. Ltd.

     Road & Rail        24,000          490,131  
 

NEC Corp.

     IT Services        60,000          1,917,165  
 

NEC System Integration & Construction Ltd.

     IT Services        18,000          195,613  
 

Net One Systems Co. Ltd.

     IT Services        18,000          350,437  
 

Nexon Co. Ltd.

     Entertainment        96,000          1,692,577  
 

NGK Insulators Ltd.

     Machinery        60,000          746,140  
 

NGK Spark Plug Co. Ltd.

     Auto Components        48,000          849,604  
 

NH Foods Ltd.

     Food Products        24,000          631,732  
 

NHK Spring Co. Ltd.

     Auto Components        36,000          211,655  
 

Nichirei Corp.

     Food Products        24,000          395,454  
 

Nidec Corp.

     Electrical Equipment        108,730          6,107,119  
 

Nifco Inc.

     Auto Components        18,000          373,692  
 

Nihon Kohden Corp.

     Health Care Equipment & Supplies        18,000          383,018  
 

Nihon M&A Center Inc.

     Professional Services        62,300          715,775  
 

Nihon Unisys Ltd.

     IT Services        18,000          390,480  
 

Nikon Corp.

     Household Durables        78,000          736,647  
 

Nintendo Co. Ltd.

     Entertainment        248,020          10,030,806  

 

           
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FRANKLIN TEMPLETON ETF TRUST

SCHEDULE OF INVESTMENTS (UNAUDITED)

 

Franklin FTSE Japan ETF (continued)

 

           Industry      Shares        Value  
    Common Stocks (continued)                       
    Japan (continued)                       
 

Nippon Accommodations Fund Inc.

     Equity Real Estate Investment Trusts (REITs      120        $ 543,853  
 

Nippon Building Fund Inc.

     Equity Real Estate Investment Trusts (REITs      360          1,581,816  
 

Nippon Electric Glass Co. Ltd.

     Electronic Equipment, Instruments & Components        18,000          310,021  
 

Nippon Express Co. Ltd.

     Road & Rail        18,000          915,265  
 

Nippon Kayaku Co. Ltd.

     Chemicals        36,000          288,010  
 

Nippon Paint Holdings Co. Ltd.

     Chemicals        240,000          1,623,269  
 

Nippon Prologis REIT Inc.

     Equity Real Estate Investment Trusts (REITs      540          1,180,766  
 

Nippon Sanso Holdings Corp.

     Chemicals        36,000          567,315  
 

Nippon Shinyaku Co. Ltd.

     Pharmaceuticals        12,000          613,493  
 

Nippon Shobukai Co. Ltd.

     Chemicals        6,000          223,842  
 

Nippon Steel Corp.

     Metals & Mining        198,000          2,744,737  
 

Nippon Telegraph & Telephone Corp.

     Diversified Telecommunication Services        282,000          7,609,879  
 

Nippon Television Holdings Inc.

     Media        6,000          47,960  
 

Nippon Yusen KK

     Marine        114,750          1,955,772  
 

Nipro Corp.

     Health Care Equipment & Supplies        24,000          180,400  
 

Nishi-Nippon Railroad Co. Ltd.

     Road & Rail        18,000          358,645  
 

Nissan Chemical Corp.

     Chemicals        32,000          1,425,956  
 

Nissan Motor Co. Ltd.

     Automobiles        456,000          1,449,799  
 

Nisshin Seifun Group Inc.

     Food Products        60,000          608,518  
 

Nissin Foods Holdings Co. Ltd.

     Food Products        18,000          1,252,271  
 

Nitori Holdings Co. Ltd.

     Specialty Retail        18,000          1,515,907  
 

Nitto Denko Corp.

     Chemicals        36,000          1,947,425  
 

Noevir Holdings Co. Ltd.

     Personal Products        6,000          235,449  
 

NOF Corp.

     Chemicals        18,000          649,142  
 

NOK Corp.

     Auto Components        24,000          186,867  
 

Nomura Holdings Inc.

     Capital Markets        708,000          2,340,027  
 

Nomura Real Estate Holdings Inc.

     Real Estate Management & Development        24,000          543,024  
 

Nomura Real Estate Master Fund Inc.

     Equity Real Estate Investment Trusts (REITs      1,080          1,191,585  
 

Nomura Research Institute Ltd.

     IT Services        90,000          2,207,330  
 

NS Solutions Corp.

     IT Services        6,000          144,875  
 

NSK Ltd.

     Machinery        102,000          498,214  
 

NTT Data Corp.

     IT Services        150,000          1,933,746  
 

Obayashi Corp.

     Construction & Engineering        162,000          1,038,627  
 

OBIC Business Consultants Co. Ltd.

     Software        6,000          185,706  
 

OBIC Co. Ltd.

     IT Services        15,800          2,116,564  
 

Odakyu Electric Railway Co. Ltd.

     Road & Rail        72,000          927,203  
 

Oji Holdings Corp.

     Paper & Forest Products        210,000          780,545  
 

Okuma Corp.

     Machinery        6,000          205,188  
 

Olympus Corp.

     Health Care Equipment & Supplies        300,000          5,758,748  
 

Omron Corp.

     Electronic Equipment, Instruments & Components        44,040          2,012,979  
 

Ono Pharmaceutical Co. Ltd.

     Pharmaceuticals        102,000          2,382,549  
 

Open House Co. Ltd.

     Household Durables        18,000          608,726  
 

Oracle Corp. Japan

     Software        8,100          430,896  
 

Orient Corp.

     Consumer Finance        13,200          104,509  
 

Oriental Land Co. Ltd.

     Hotels, Restaurants & Leisure        44,540          6,063,496  
 

ORIX Corp.

     Diversified Financial Services        282,000          3,952,033  
 

ORIX JREIT Inc.

     Equity Real Estate Investment Trusts (REITs      600          766,866  
 

Osaka Gas Co. Ltd.

     Gas Utilities        90,000          1,359,218  
 

OSG Corp.

     Machinery        18,000          222,101  
 

Otsuka Corp.

     IT Services        24,000          750,285  
 

Otsuka Holdings Co. Ltd.

     Pharmaceuticals        102,000          3,230,288  
 

Paltac Corp.

     Distributors        6,000          184,670  
 

Pan Pacific International Holdings Corp.

     Multiline Retail        96,000          1,697,882  
 

Panasonic Corp.

     Household Durables        510,000          3,574,528  
a  

Park24 Co. Ltd.

     Commercial Services & Supplies        30,000          387,371  
 

Penta-Ocean Construction Co. Ltd.

     Construction & Engineering        66,000          331,493  
a  

PeptiDream Inc.

     Biotechnology        19,700          219,804  

 

           
franklintempleton.com  

   Semiannual Report

             235


FRANKLIN TEMPLETON ETF TRUST

SCHEDULE OF INVESTMENTS (UNAUDITED)

 

Franklin FTSE Japan ETF (continued)

 

           
236             

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           Industry      Shares        Value  
    Common Stocks (continued)                       
    Japan (continued)                       
 

Persol Holdings Co. Ltd.

     Professional Services      42,000        $ 776,193  
 

Pigeon Corp.

     Household Products        24,000          350,520  
 

Pola Orbis Holdings Inc.

     Personal Products        18,000          203,323  
 

Rakus Co. Ltd.

     Software        24,000          226,826  
 

Rakuten Inc.

     Internet & Direct Marketing Retail        192,000          823,738  
 

Recruit Holdings Co. Ltd.

     Professional Services        330,000          9,486,545  
 

Relo Group Inc.

     Real Estate Management & Development        24,000          365,111  
a  

Renesas Electronics Corp.

     Semiconductors & Semiconductor Equipment        288,000          2,391,627  
 

Rengo Co. Ltd.

     Containers & Packaging        48,000          278,559  
a  

RENOVA Inc.

     Independent Power Producers & Energy Traders        12,000          282,290  
 

Resona Holdings Inc.

     Banks        510,000          1,860,375  
 

Resorttrust Inc.

     Hotels, Restaurants & Leisure        12,000          192,504  
 

Ricoh Co. Ltd.

     Technology Hardware, Storage & Peripherals        138,000          1,006,791  
 

Rinnai Corp.

     Household Durables        8,240          591,479  
 

Rohm Co. Ltd.

     Semiconductors & Semiconductor Equipment        19,800          1,294,055  
 

Rohto Pharmaceutical Co. Ltd.

     Personal Products        24,000          768,524  
 

Ryohin Keikaku Co. Ltd.

     Multiline Retail        54,000          451,042  
 

Sankyo Co. Ltd.

     Leisure Products        12,000          363,536  
 

Sankyu Inc.

     Road & Rail        12,000          348,199  
 

Sanrio Co. Ltd.

     Specialty Retail        12,000          308,404  
 

Santen Pharmaceutical Co. Ltd.

     Pharmaceuticals        84,000          565,823  
 

Sanwa Holdings Corp.

     Building Products        48,000          412,532  
 

Sapporo Holdings Ltd.

     Beverages        12,000          263,636  
 

Sawai Group Holdings Co. Ltd.

     Pharmaceuticals        6,000          168,296  
 

SBI Holdings Inc.

     Capital Markets        60,000          1,076,099  
 

SCREEN Holdings Co. Ltd.

     Semiconductors & Semiconductor Equipment        9,200          500,853  
 

SCSK Corp.

     IT Services        30,000          453,902  
 

Secom Co. Ltd.

     Commercial Services & Supplies        48,000          2,744,468  
 

Sega Sammy Holdings Inc.

     Leisure Products        36,000          489,716  
 

Seibu Holdings Inc.

     Industrial Conglomerates        48,000          479,519  
 

Seiko Epson Corp.

     Technology Hardware, Storage & Peripherals        66,000          898,269  
 

Seino Holdings Co. Ltd.

     Road & Rail        30,000          240,423  
 

Sekisui Chemical Co. Ltd.

     Household Durables        78,000          952,738  
 

Sekisui House Ltd.

     Household Durables        138,000          2,289,115  
 

Sekisui House Reit Inc.

     Equity Real Estate Investment Trusts (REITs      960          538,547  
 

Seven & i Holdings Co. Ltd.

     Food & Staples Retailing        186,000          7,460,817  
 

Seven Bank Ltd.

     Banks        156,000          279,139  
 

SG Holdings Co. Ltd.

     Air Freight & Logistics        102,000          1,395,281  
 

Sharp Corp.

     Household Durables        48,000          286,186  
a  

SHIFT Inc.

     IT Services        2,200          287,112  
 

Shikoku Electric Power Co. Inc.

     Electric Utilities        36,000          179,820  
 

Shimadzu Corp.

     Electronic Equipment, Instruments & Components        66,000          1,730,422  
 

Shimamura Co. Ltd.

     Specialty Retail        6,000          506,961  
 

SHIMANO Inc.

     Leisure Products        17,988          2,825,984  
 

Shimizu Corp.

     Construction & Engineering        126,000          617,182  
 

Shin-Etsu Chemical Co. Ltd.

     Chemicals        93,380          9,244,778  
 

Shinko Electric Industries Co. Ltd.

     Semiconductors & Semiconductor Equipment        18,000          387,371  
 

Shinsei Bank Ltd.

     Banks        12,000          172,027  
 

Shionogi & Co. Ltd.

     Pharmaceuticals        66,000          3,186,804  
 

Ship Healthcare Holdings Inc.

     Health Care Providers & Services        18,000          338,126  
 

Shiseido Co. Ltd.

     Personal Products        91,900          3,210,103  
 

SHO-BOND Holdings Co. Ltd.

     Construction & Engineering        12,000          518,982  
a  

Shochiku Co. Ltd.

     Entertainment        2,100          172,648  
 

Showa Denko K.K.

     Chemicals        42,000          596,000  
a  

Skylark Holdings Co. Ltd.

     Hotels, Restaurants & Leisure        54,000          575,647  
 

SMC Corp.

     Machinery        13,346          5,368,090  
 

SMS Co. Ltd.

     Professional Services        12,000          242,827  
 

Softbank Corp.

     Wireless Telecommunication Services        654,000          6,535,708  


FRANKLIN TEMPLETON ETF TRUST

SCHEDULE OF INVESTMENTS (UNAUDITED)

 

Franklin FTSE Japan ETF (continued)

 

           Industry        Shares        Value  
    Common Stocks (continued)                         
    Japan (continued)                         
 

SoftBank Group Corp.

     Wireless Telecommunication Services          246,000        $ 8,327,749  
 

Sohgo Security Services Co. Ltd.

     Commercial Services & Supplies          18,000          452,658  
 

Sojitz Corp.

     Trading Companies & Distributors          56,220          824,977  
 

Sompo Holdings Inc.

     Insurance          78,000          3,105,019  
 

Sony Corp.

     Household Durables          294,000          18,861,335  
 

Sotetsu Holdings Inc.

     Road & Rail          18,000          298,083  
 

Square Enix Holdings Co. Ltd.

     Entertainment          18,000          774,742  
 

Stanley Electric Co. Ltd.

     Auto Components          30,000          469,239  
 

Subaru Corp.

     Automobiles          144,000          2,155,847  
 

Sugi Pharmacy Co. Ltd.

     Food & Staples Retailing          8,440          338,778  
 

Sumco Corp.

     Semiconductors & Semiconductor Equipment          78,000          909,627  
 

Sumitomo Bakelite Co. Ltd.

     Chemicals          6,000          164,358  
 

Sumitomo Chemical Co. Ltd.

     Chemicals          360,000          1,236,105  
 

Sumitomo Corp.

     Trading Companies & Distributors          270,000          3,362,292  
 

Sumitomo Dainippon Pharma Co. Ltd.

     Pharmaceuticals          36,000          256,423  
 

Sumitomo Electric Industries Ltd.

     Auto Components          180,000          1,820,581  
 

Sumitomo Forestry Co. Ltd.

     Household Durables          36,000          548,413  
 

Sumitomo Heavy Industries Ltd.

     Machinery          24,000          443,207  
 

Sumitomo Metal Mining Co. Ltd.

     Metals & Mining          60,000          1,724,412  
 

Sumitomo Mitsui Financial Group Inc.

     Banks          306,000          8,506,988  
 

Sumitomo Realty & Development Co. Ltd.

     Real Estate Management & Development          96,000          2,180,718  
 

Sumitomo Rubber Industries Ltd.

     Auto Components          42,000          333,980  
 

Sundrug Co. Ltd.

     Food & Staples Retailing          16,200          393,402  
 

Suntory Beverage & Food Ltd.

     Beverages          30,000          1,063,249  
 

Sushiro Global Holdings Ltd.

     Hotels, Restaurants & Leisure          24,000          368,759  
 

Suzuken Co. Ltd.

     Health Care Providers & Services          18,000          410,999  
 

Suzuki Motor Corp.

     Automobiles          108,000          3,343,452  
 

Sysmex Corp.

     Health Care Equipment & Supplies          45,156          2,423,378  
 

T&D Holdings Inc.

     Insurance          120,000          1,133,303  
 

Taiheiyo Cement Corp.

     Construction Materials          30,000          422,398  
 

Taisei Corp.

     Construction & Engineering          42,000          1,166,465  
 

Taisho Pharmaceutical Holdings Co. Ltd.

     Pharmaceuticals          10,200          373,484  
 

Taiyo Yuden Co. Ltd.

     Electronic Equipment, Instruments & Components          30,000          772,047  
 

Takara Bio Inc.

     Biotechnology          12,000          141,020  
 

Takara Holdings Inc.

     Beverages          42,000          306,705  
 

Takashimaya Co. Ltd.

     Multiline Retail          36,000          425,548  
 

Takeda Pharmaceutical Co. Ltd.

     Pharmaceuticals          360,000          9,369,028  
 

TBS Holdings Inc.

     Media          6,000          65,619  
 

TDK Corp.

     Electronic Equipment, Instruments & Components          86,520          2,662,936  
 

TechnoPro Holdings Inc.

     Professional Services          25,320          539,654  
 

Teijin Ltd.

     Chemicals          42,000          406,812  
 

Terumo Corp.

     Health Care Equipment & Supplies          156,000          4,390,784  
 

The Bank of Kyoto Ltd.

     Banks          18,000          657,847  
 

The Chiba Bank Ltd.

     Banks          144,000          774,991  
 

The Chugoku Bank Ltd.

     Banks          42,000          264,921  
 

The Chugoku Electric Power Co. Inc.

     Electric Utilities          72,000          365,111  
a  

The Iyo Bank Ltd.

     Banks          66,000          322,374  
 

The Japan Steel Works Ltd.

     Machinery          12,000          235,946  
 

The Kansai Electric Power Co. Inc.

     Electric Utilities          174,000          1,456,962  
 

The Shizuoka Bank Ltd.

     Banks          114,000          700,169  
 

THK Co. Ltd.

     Machinery          30,000          517,324  
 

TIS Inc.

     IT Services          54,000          1,430,723  
 

Tobu Railway Co. Ltd.

     Road & Rail          48,000          1,130,816  
 

Toda Corp.

     Construction & Engineering          54,000          277,564  
 

Toho Co. Ltd.

     Entertainment          24,000          870,496  
 

Toho Gas Co. Ltd.

     Gas Utilities          19,600          390,389  
 

Tohoku Electric Power Co. Inc.

     Electric Utilities          114,000          536,350  
 

Tokai Carbon Co. Ltd.

     Chemicals          48,000          324,654  

 

           
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FRANKLIN TEMPLETON ETF TRUST

SCHEDULE OF INVESTMENTS (UNAUDITED)

 

Franklin FTSE Japan ETF (continued)

 

           Industry      Shares        Value  
    Common Stocks (continued)                       
    Japan (continued)                       
 

Tokio Marine Holdings Inc.

     Insurance        450,000        $ 7,974,369  
 

Tokyo Century Corp.

     Diversified Financial Services        15,000          477,737  
a  

Tokyo Electric Power Co. Holdings Inc.

     Electric Utilities        372,000          1,187,357  
 

Tokyo Electron Ltd.

     Semiconductors & Semiconductor Equipment        35,120          8,662,019  
 

Tokyo Gas Co. Ltd.

     Gas Utilities        96,000          1,625,590  
 

Tokyo Ohka Kogyo Co. Ltd.

     Chemicals        9,000          375,557  
 

Tokyo Tatemono Co. Ltd.

     Real Estate Management & Development        48,000          682,469  
 

TOKYU Corp.

     Road & Rail        114,000          1,297,164  
 

Tokyu Fudosan Holdings Corp.

     Real Estate Management & Development        144,000          747,135  
 

TOPPAN Inc.

     Commercial Services & Supplies        66,000          982,169  
 

Toray Industries Inc.

     Chemicals        360,000          1,770,341  
 

Toshiba Corp.

     Industrial Conglomerates        102,000          3,627,732  
 

Toshiba TEC Corp.

     Technology Hardware, Storage & Peripherals        6,000          155,031  
 

Tosoh Corp.

     Chemicals        66,000          734,119  
 

TOTO Ltd.

     Building Products        36,000          1,198,798  
 

Toyo Seikan Group Holdings Ltd.

     Containers & Packaging        36,000          433,756  
 

Toyo Suisan Kaisha Ltd.

     Food Products        24,000          988,221  
 

Toyo Tire Corp.

     Auto Components        24,000          260,320  
 

Toyoda Gosei Co. Ltd.

     Auto Components        18,000          271,719  
 

Toyota Boshoku Corp.

     Auto Components        18,000          220,360  
 

Toyota Industries Corp.

     Auto Components        36,000          1,711,147  
 

Toyota Motor Corp.

     Automobiles        2,892,000          37,482,414  
 

Toyota Tsusho Corp.

     Trading Companies & Distributors        54,000          1,671,353  
 

Trend Micro Inc.

     Software        30,000          1,620,781  
 

TS TECH Co. Ltd.

     Auto Components        24,000          235,283  
 

Tsumura & Co.

     Pharmaceuticals        18,000          383,640  
 

Tsuruha Holdings Inc.

     Food & Staples Retailing        8,570          502,672  
 

Ube Industries Ltd.

     Chemicals        24,000          320,343  
 

Ulvac Inc.

     Semiconductors & Semiconductor Equipment        12,000          425,300  
 

Unicharm Corp.

     Household Products        90,000          2,953,470  
 

United Urban Investment Corp.

     Equity Real Estate Investment Trusts (REITs      720          743,653  
 

Ushio Inc.

     Electrical Equipment        24,000          249,045  
 

USS Co. Ltd.

     Specialty Retail        48,000          741,829  
 

Welcia Holdings Co. Ltd.

     Food & Staples Retailing        24,000          506,546  
 

West Japan Railway Co.

     Road & Rail        54,000          2,066,807  
 

Yakult Honsha Co. Ltd.

     Food Products        30,000          1,743,065  
 

Yamada Holdings Co. Ltd.

     Specialty Retail        174,000          572,206  
 

Yamaguchi Financial Group Inc.

     Banks        54,000          286,518  
 

Yamaha Corp.

     Leisure Products        36,000          1,278,386  
 

Yamaha Motor Co. Ltd.

     Automobiles        72,000          1,346,534  
 

Yamato Holdings Co. Ltd.

     Air Freight & Logistics        78,000          1,173,139  
 

Yamato Kogyo Co. Ltd.

     Metals & Mining        6,000          181,561  
 

Yamazaki Baking Co. Ltd.

     Food Products        30,000          344,675  
 

Yaoko Co. Ltd.

     Food & Staples Retailing        6,000          271,927  
 

YASKAWA Electric Corp.

     Machinery        60,000          1,726,485  
 

Yokogawa Electric Corp.

     Electronic Equipment, Instruments & Components        60,000          943,038  
 

Yokohama Rubber Co. Ltd.

     Auto Components        30,000          459,290  
 

Z Holdings Corp.

     Interactive Media & Services        618,000          1,623,293  
 

Zenkoku Hosho Co. Ltd.

     Diversified Financial Services        12,000          399,185  
 

Zensho Holdings Co. Ltd.

     Hotels, Restaurants & Leisure        24,000          594,425  
 

Zeon Corp.

     Chemicals        36,000          317,856  
 

Zozo Inc.

     Internet & Direct Marketing Retail        24,000          479,851  
            

 

 

 
 

Total Investments before Short Term Investments
(Cost $1,002,459,019)

             769,637,967  
            

 

 

 

 

           
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FRANKLIN TEMPLETON ETF TRUST

SCHEDULE OF INVESTMENTS (UNAUDITED)

 

Franklin FTSE Japan ETF (continued)

 

           Industry        Shares        Value  
    Short-Term Investments 0.1%                         
 

Money Market Funds 0.1%

            
    United States 0.1%                         
b,c  

Institutional Fiduciary Trust Portfolio, 2.45%

     Money Market Funds          392,360        $ 392,360  
              

 

 

 
 

Total Short-Term Investments
(Cost $392,360)

               392,360  
              

 

 

 
 

Total Investments
(Cost $1,002,851,379) 99.0%

               770,030,327  
    Other Assets, less Liabilities 1.0%                      7,942,048  
              

 

 

 
 

Net Assets 100.0%

             $ 777,972,375  
              

 

 

 

aNon-income producing.

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

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

At September 30, 2022, the Fund had the following futures contracts outstanding. See Note 1(c).

 

Futures Contracts                                   
Description    Type      Number of
Contracts
     Notional
Amount*
     Expiration
Date
    

Value/Unrealized
Appreciation

(Depreciation)

 
Index Contracts  

Nikkei 225 Mini

     Long        45      $ 8,064,527        12/08/22      $ (46,911

*As of period end.

See Note 8 regarding other derivative information.

See Abbreviations on page 332.

 

           
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FRANKLIN TEMPLETON ETF TRUST

 

Financial Highlights

 

Franklin FTSE Japan Hedged ETF

 

    

Six Months Ended
September 30, 2022

(unaudited)

    Year Ended March 31,  
  2022     2021     2020     2019     2018a  
Per share operating performance
(for a share outstanding throughout the period)
           

Net asset value, beginning of period

    $30.90     $ 30.70     $ 21.35     $ 23.12     $ 25.11     $ 25.91  
 

 

 

 
Income from investment operationsb:            

Net investment incomec

    0.33       0.68       0.88       0.38       0.38       0.32  

Net realized and unrealized gains (losses)

    (1.43     (0.08     8.47       (2.15     (1.11     (1.11
 

 

 

 

Total from investment operations

    (1.10     0.60       9.35       (1.77     (0.73     (0.79
 

 

 

 
Less distributions from:            

Net investment income

    (0.92     (0.40                 (0.01     (0.01

Net realized gains

                            (1.25     d 
 

 

 

 

Total Distributions

    (0.92     (0.40                 (1.26     (0.01
 

 

 

 

Net asset value, end of period

    $28.88     $ 30.90     $ 30.70     $ 21.35     $ 23.12     $ 25.11  
 

 

 

 

Total returne

    (3.50)%       1.93%       43.84%       (7.66)%       (2.59)%       (3.04)%  
Ratios to average net assetsf            

Expenses before waiver and payments by affiliates

    0.09%       0.09%       0.09%       0.09%       0.09%       0.09%  

Expenses net of waiver and payments by affiliates

    0.09%       0.09%       0.09%       0.09%       0.09%       0.09%  

Net investment income

    2.20%       2.22%       3.29%       1.59%       1.51%       3.10%  
Supplemental data            

Net assets, end of period (000’s)

    $23,104       $24,720       $24,563       $4,269       $13,870       $45,197  

Portfolio turnover rateg

    6.68%     5.46%     6.31% h      10.06% h      19.78%       1.92%  

aFor the period November 2, 2017 (commencement of operations) to March 31, 2018.

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.

dAmount rounds to less than $0.001 per share.

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

fRatios are annualized for periods less than one year, except for non- recurring expenses, if any.

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

 

hPortfolio turnover rate excluding cash creations was as follows:     6.68%       5.03%       6.31%     10.06%    

 

           
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FRANKLIN TEMPLETON ETF TRUST

 

Schedule of Investments, September 30, 2022 (unaudited)

 

Franklin FTSE Japan Hedged ETF

 

           Industry      Shares        Value  
    Common Stocks 98.4%                       
    Japan 98.4%                       
 

ABC-Mart Inc.

     Specialty Retail        236        $ 10,158  
 

Acom Co. Ltd.

     Consumer Finance        2,700          5,801  
 

Activia Properties Inc.

     Equity Real Estate Investment Trusts (REITs      5          14,612  
 

Advance Residence Investment

     Equity Real Estate Investment Trusts (REITs      9          22,042  
 

Advantest Corp.

     Semiconductors & Semiconductor Equipment        1,400          64,804  
 

AEON Co. Ltd.

     Food & Staples Retailing        5,000          93,388  
 

AEON Financial Service Co. Ltd.

     Consumer Finance        900          8,904  
 

AEON Mall Co. Ltd.

     Real Estate Management & Development        800          8,898  
 

AEON REIT Investment Corp.

     Equity Real Estate Investment Trusts (REITs      12          12,933  
 

AGC Inc.

     Building Products        1,336          41,443  
 

Aica Kogyo Co. Ltd.

     Building Products        372          8,044  
 

AIN Holdings Inc.

     Food & Staples Retailing        236          10,190  
 

Air Water Inc.

     Chemicals        1,300          15,340  
 

Aisin Seiki Co. Ltd.

     Auto Components        1,256          32,193  
 

Ajinomoto Co. Inc.

     Food Products        3,348          91,642  
 

Alfresa Holdings Corp.

     Health Care Providers & Services        1,100          12,843  
 

Alps Alpine Co. Ltd.

     Electronic Equipment, Instruments & Components        1,272          9,192  
 

Amada Co. Ltd.

     Machinery        2,100          14,233  
 

Amano Corp.

     Electronic Equipment, Instruments & Components        400          6,715  
a  

ANA Holdings Inc.

     Airlines        1,100          20,656  
 

Anritsu Corp.

     Electronic Equipment, Instruments & Components        913          9,960  
 

Aozora Bank Ltd.

     Banks        800          14,271  
 

Ariake Japan Co. Ltd.

     Food Products        96          3,329  
 

As One Corp.

     Health Care Providers & Services        228          9,435  
 

Asahi Group Holdings Ltd.

     Beverages        3,372          104,460  
 

Asahi Intecc Co. Ltd.

     Health Care Equipment & Supplies        1,360          21,770  
 

Asahi Kasei Corp.

     Chemicals        8,700          57,431  
 

Asics Corp.

     Textiles, Apparel & Luxury Goods        1,200          19,068  
 

ASKUL Corp.

     Internet & Direct Marketing Retail        272          2,807  
 

Astellas Pharma Inc.

     Pharmaceuticals        12,900          170,847  
 

Azbil Corp.

     Electronic Equipment, Instruments & Components        872          22,712  
 

Bandai Namco Holdings Inc.

     Leisure Products        1,351          88,044  
 

BayCurrent Consulting Inc.

     Professional Services        90          23,410  
 

Benefit One Inc.

     Professional Services        372          5,225  
 

Benesse Holdings Inc.

     Diversified Consumer Services        500          7,444  
 

BIC CAMERA Inc.

     Specialty Retail        1,000          8,546  
 

Bridgestone Corp.

     Auto Components        3,984          128,511  
 

Brother Industries Ltd.

     Technology Hardware, Storage & Peripherals        1,600          27,535  
 

Calbee Inc.

     Food Products        500          10,709  
 

CANON Inc.

     Technology Hardware, Storage & Peripherals        6,900          151,209  
 

Canon Marketing Japan Inc.

     Electronic Equipment, Instruments & Components        272          6,013  
 

Capcom Co. Ltd.

     Entertainment        1,248          31,384  
 

Casio Computer Co. Ltd.

     Household Durables        1,500          13,151  
 

Central Japan Railway Co.

     Road & Rail        1,290          150,929  
 

Chubu Electric Power Co. Inc.

     Electric Utilities        4,932          44,432  
 

Chugai Pharmaceutical Co. Ltd.

     Pharmaceuticals        4,592          115,034  
 

Chuo Mitsui Trust Holdings Inc.

     Banks        2,572          72,836  
 

Coca-Cola Bottlers Japan Holdings Inc.

     Beverages        900          8,730  
 

COMSYS Holdings Corp.

     Construction & Engineering        736          12,519  
 

Concordia Financial Group Ltd.

     Banks        7,500          23,161  
 

Cosmo Energy Holdings Co. Ltd.

     Oil, Gas & Consumable Fuels        520          13,328  
 

Cosmos Pharmaceutical Corp.

     Food & Staples Retailing        97          9,617  
 

Credit Saison Co. Ltd.

     Consumer Finance        1,000          11,690  
 

CyberAgent Inc.

     Media        2,884          24,268  
 

Dai Nippon Printing Co. Ltd.

     Commercial Services & Supplies        1,872          37,506  
 

Daicel Corp.

     Chemicals        1,800          10,583  
 

Daido Steel Co. Ltd.

     Metals & Mining        268          6,517  

 

           
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FRANKLIN TEMPLETON ETF TRUST

SCHEDULE OF INVESTMENTS (UNAUDITED)

 

Franklin FTSE Japan Hedged ETF (continued)

 

           Industry      Shares        Value  
    Common Stocks (continued)                       
    Japan (continued)                       
 

Daifuku Co. Ltd.

     Machinery        701        $ 32,981  
 

Dai-ichi Life Holdings Inc.

     Insurance        6,900          109,260  
 

Daiichi Sankyo Co. Ltd.

     Pharmaceuticals        13,200          368,610  
 

Daiichikosho Co. Ltd.

     Entertainment        340          9,560  
 

Daikin Industries Ltd.

     Building Products        1,876          288,959  
 

Daio Paper Corp.

     Paper & Forest Products        500          4,007  
 

Daito Trust Construction Co. Ltd.

     Real Estate Management & Development        432          40,500  
 

Daiwa House Industry Co. Ltd.

     Real Estate Management & Development        4,472          90,942  
 

Daiwa House Residential Investment Corp.

     Equity Real Estate Investment Trusts (REITs      15          31,193  
 

Daiwa Office Investment Corp.

     Equity Real Estate Investment Trusts (REITs      2          9,285  
 

Daiwa Securities Group Inc.

     Capital Markets        10,300          40,305  
 

Daiwa Securities Living Investments Corp.

     Equity Real Estate Investment Trusts (REITs      14          11,104  
 

DeNA Co. Ltd.

     Entertainment        636          8,037  
 

Denka Co. Ltd.

     Chemicals        564          12,371  
 

Denso Corp.

     Auto Components        3,200          145,602  
 

Dentsu Group Inc.

     Media        1,500          42,592  
 

Descente Ltd.

     Textiles, Apparel & Luxury Goods        300          6,891  
 

DIC Corp.

     Chemicals        500          8,315  
 

Disco Corp.

     Semiconductors & Semiconductor Equipment        178          39,352  
 

DMG Mori Co. Ltd.

     Machinery        736          8,390  
 

Dowa Holdings Co. Ltd.

     Metals & Mining        372          13,339  
 

East Japan Railway Co.

     Road & Rail        2,580          132,275  
 

EBARA Corp.

     Machinery        680          22,245  
 

Eisai Co. Ltd.

     Pharmaceuticals        1,860          99,576  
 

Electric Power Development Co. Ltd.

     Independent Power Producers & Energy Traders        1,100          15,564  
 

ENEOS Holdings Inc.

     Oil, Gas & Consumable Fuels        20,500          65,871  
 

Ezaki Glico Co. Ltd.

     Food Products        372          9,162  
 

Fancl Corp.

     Personal Products        432          8,584  
 

FANUC Corp.

     Machinery        1,360          190,360  
 

Fast Retailing Co. Ltd.

     Specialty Retail        360          190,788  
 

FP Corp.

     Containers & Packaging        272          6,680  
 

Frontier Real Estate Investment Corp.

     Equity Real Estate Investment Trusts (REITs      4          14,729  
 

Fuji Electric Co. Ltd.

     Electrical Equipment        872          31,869  
 

Fuji Kyuko Co. Ltd.

     Hotels, Restaurants & Leisure        200          5,914  
 

Fuji Media Holdings Inc.

     Media        272          1,996  
 

Fuji Oil Holdings Inc.

     Food Products        272          4,521  
 

FUJIFILM Holdings Corp.

     Technology Hardware, Storage & Peripherals        2,456          112,140  
 

Fujitsu General Ltd.

     Household Durables        372          7,723  
 

Fujitsu Ltd.

     IT Services        1,292          140,898  
 

Fukuoka Financial Group Inc.

     Banks        1,100          19,501  
 

Furukawa Electric Co. Ltd.

     Electrical Equipment        412          6,527  
 

Fuyo General Lease Co. Ltd.

     Diversified Financial Services        100          5,451  
 

GLP J-Reit

     Equity Real Estate Investment Trusts (REITs      30          33,183  
 

GMO internet Inc.

     IT Services        400          7,041  
 

GMO Payment Gateway Inc.

     IT Services        260          17,873  
 

Goldwin Inc.

     Textiles, Apparel & Luxury Goods        276          14,606  
 

GS Yuasa Corp.

     Electrical Equipment        500          7,800  
 

GungHo Online Entertainment Inc.

     Entertainment        200          3,074  
 

Hachijuni Bank Ltd.

     Banks        3,100          10,259  
 

Hakuhodo DY Holdings Inc.

     Media        1,800          12,660  
 

Hamamatsu Photonics K.K.

     Electronic Equipment, Instruments & Components        872          37,351  
 

Hankyu Hanshin Holdings Inc.

     Road & Rail        1,500          45,079  
 

Haseko Corp.

     Household Durables        1,700          18,451  
 

Heiwa Corp.

     Leisure Products        372          5,752  
 

Hikari Tsushin Inc.

     Specialty Retail        116          13,656  
 

Hino Motors Ltd.

     Machinery        1,800          7,412  
 

Hirogin Holdings Inc.

     Banks        2,200          9,241  

 

           
242             

Semiannual Report

  franklintempleton.com


FRANKLIN TEMPLETON ETF TRUST

SCHEDULE OF INVESTMENTS (UNAUDITED)

 

Franklin FTSE Japan Hedged ETF (continued)

 

           Industry      Shares        Value  
    Common Stocks (continued)                       
    Japan (continued)                       
 

Hirose Electric Co. Ltd.

     Electronic Equipment, Instruments & Components        210        $ 27,537  
 

Hisamitsu Pharmaceutical Co. Inc.

     Pharmaceuticals        500          11,728  
 

Hitachi Construction Machinery Co. Ltd.

     Machinery        736          13,607  
 

Hitachi Ltd.

     Industrial Conglomerates        6,400          270,335  
a  

Hitachi Metals Ltd.

     Metals & Mining        1,372          20,616  
 

Hitachi Transport System Ltd.

     Road & Rail        208          12,445  
 

Honda Motor Co. Ltd.

     Automobiles        11,900          257,904  
 

HORIBA Ltd.

     Electronic Equipment, Instruments & Components        300          11,627  
 

Hoshizaki Corp.

     Machinery        844          23,528  
 

House Foods Group Inc.

     Food Products        500          9,973  
 

Hoya Corp.

     Health Care Equipment & Supplies        2,500          239,732  
 

Hulic Co. Ltd.

     Real Estate Management & Development        2,800          20,563  
 

Ibiden Co. Ltd.

     Electronic Equipment, Instruments & Components        736          20,136  
 

Idemitsu Kosan Co. Ltd.

     Oil, Gas & Consumable Fuels        1,688          36,560  
 

IHI Corp.

     Machinery        872          18,676  
 

Iida Group Holdings Co. Ltd.

     Household Durables        1,100          14,918  
 

Industrial & Infrastructure Fund Investment Corp.

     Equity Real Estate Investment Trusts (REITs      14          15,872  
 

Information Services International-Dentsu Ltd.

     IT Services        200          6,121  
 

INFRONEER Holdings Inc.

     Construction & Engineering        1,592          10,823  
 

INPEX Corp.

     Oil, Gas & Consumable Fuels        7,000          65,722  
 

Internet Initiative Japan Inc.

     Diversified Telecommunication Services        800          12,275  
 

Isetan Mitsukoshi Holdings Ltd.

     Multiline Retail        2,500          21,192  
 

Isuzu Motors Ltd.

     Automobiles        3,600          39,720  
 

Ito En Ltd.

     Beverages        372          15,060  
 

ITOCHU Corp.

     Trading Companies & Distributors        9,412          227,651  
 

ITOCHU Techno-Solutions Corp.

     IT Services        700          16,394  
 

Itoham Yonekyu Holdings Inc.

     Food Products        1,100          5,061  
 

Iwatani Corp.

     Oil, Gas & Consumable Fuels        400          15,061  
 

Izumi Co. Ltd.

     Multiline Retail        308          6,607  
 

J Front Retailing Co. Ltd.

     Multiline Retail        1,700          13,812  
a  

Japan Airlines Co. Ltd.

     Airlines        1,000          17,838  
a  

Japan Airport Terminal Co. Ltd.

     Transportation Infrastructure        380          15,883  
 

Japan Aviatn Elect

     Electronic Equipment, Instruments & Components        272          3,984  
 

Japan Exchange Group Inc.

     Capital Markets        3,772          50,881  
 

Japan Hotel REIT Investment Corp.

     Equity Real Estate Investment Trusts (REITs      32          15,940  
 

Japan Logistics Fund Inc.

     Equity Real Estate Investment Trusts (REITs      6          12,871  
 

Japan Post Bank Co. Ltd.

     Banks        2,800          19,518  
 

Japan Post Holdings Co. Ltd.

     Insurance        15,200          100,570  
 

Japan Post Insurance Co. Ltd.

     Insurance        1,496          20,940  
 

Japan Prime Realty Investment Corp.

     Equity Real Estate Investment Trusts (REITs      7          19,006  
 

Japan Real Estate Investment Corp.

     Equity Real Estate Investment Trusts (REITs      9          37,120  
 

Japan Retail Fund Investment Corp.

     Equity Real Estate Investment Trusts (REITs      49          36,832  
 

Japan Tobacco Inc.

     Tobacco        8,300          136,130  
 

JCR Pharmaceuticals Co. Ltd.

     Pharmaceuticals        400          5,983  
 

Jeol Ltd.

     Health Care Equipment & Supplies        300          9,855  
 

JFE Holdings Inc.

     Metals & Mining        3,500          32,426  
 

JGC Holdings Corp.

     Construction & Engineering        1,600          19,997  
 

JMDC Inc.

     Health Care Technology        100          3,292  
 

JSR Corp.

     Chemicals        1,236          23,483  
 

JTEKT Corp.

     Auto Components        1,600          10,125  
 

Justsystems Corp.

     Software        200          4,622  
 

Kadokawa Corp.

     Media        600          11,035  
 

Kagome Co. Ltd.

     Food Products        500          10,415  
 

Kajima Corp.

     Construction & Engineering        3,100          29,406  
 

Kakaku.com Inc.

     Interactive Media & Services        872          14,832  
 

Kaken Pharmaceutical Co. Ltd.

     Pharmaceuticals        260          6,853  
 

Kamigumi Co. Ltd.

     Transportation Infrastructure        636          11,749  

 

           
franklintempleton.com  

   Semiannual Report

             243


FRANKLIN TEMPLETON ETF TRUST

SCHEDULE OF INVESTMENTS (UNAUDITED)

 

Franklin FTSE Japan Hedged ETF (continued)

 

           Industry      Shares        Value  
    Common Stocks (continued)                       
    Japan (continued)                       
 

Kandenko Co. Ltd.

     Construction & Engineering        600        $ 3,449  
 

Kaneka Corp.

     Chemicals        472          11,772  
 

Kansai Paint Co. Ltd.

     Chemicals        1,288          18,215  
 

KAO Corp.

     Personal Products        3,224          131,370  
 

Katitas Co. Ltd.

     Real Estate Management & Development        300          6,663  
 

Kawasaki Heavy Industries Ltd.

     Machinery        1,000          15,109  
 

Kawasaki Kisen Kaisha Ltd.

     Marine        1,700          23,865  
 

KDDI Corp.

     Wireless Telecommunication Services        11,568          339,100  
 

Keihan Holdings Co. Ltd.

     Industrial Conglomerates        692          17,952  
 

Keikyu Corp.

     Road & Rail        1,700          17,218  
 

Keio Corp.

     Road & Rail        800          29,127  
 

Keisei Electric Railway Co. Ltd.

     Road & Rail        1,004          27,329  
 

Kenedix Office Investment Corp.

     Equity Real Estate Investment Trusts (REITs      3          14,114  
 

Kewpie Corp.

     Food Products      736          12,102  
 

Keyence Corp.

     Electronic Equipment, Instruments & Components        1,374          454,693  
 

Kikkoman Corp.

     Food Products        1,336          75,686  
 

Kinden Corp.

     Construction & Engineering        872          9,205  
 

Kintetsu Group Holdings Co. Ltd.

     Road & Rail        1,296          43,157  
 

Kirin Holdings Co. Ltd.

     Beverages        5,300          81,544  
 

Kobayashi Pharmaceutical Co. Ltd.

     Personal Products        424          24,840  
 

Kobe Bussan Co. Ltd.

     Food & Staples Retailing        1,000          24,146  
 

Kobe Steel Ltd.

     Metals & Mining        2,400          9,617  
 

Koei Tecmo Holdings Co. Ltd.

     Entertainment        994          16,310  
 

Koito Manufacturing Co. Ltd.

     Auto Components        1,594          21,706  
 

Kokuyo Co. Ltd.

     Commercial Services & Supplies        500          6,342  
 

Komatsu Ltd.

     Machinery        6,416          115,736  
 

Konami Holdings Corp.

     Entertainment        676          31,198  
 

Konica Minolta Inc.

     Technology Hardware, Storage & Peripherals        3,300          10,168  
 

Kose Corp.

     Personal Products        256          26,353  
 

Kotobuki Spirits Co. Ltd.

     Food Products        100          5,769  
 

K’s Holdings Corp.

     Specialty Retail        1,100          9,081  
 

Kubota Corp.

     Machinery        7,600          105,222  
 

Kuraray Co. Ltd.

     Chemicals        2,400          16,763  
 

Kurita Water Industries Ltd.

     Machinery        736          26,238  
 

Kusuri no Aoki Holdings Co. Ltd.

     Food & Staples Retailing        80          3,764  
 

Kyocera Corp.

     Electronic Equipment, Instruments & Components        2,192          110,550  
 

Kyowa Exeo Corp.

     Construction & Engineering        636          9,188  
 

Kyowa Kirin Co. Ltd.

     Pharmaceuticals        1,700          38,934  
 

Kyudenko Corp.

     Construction & Engineering        280          5,320  
 

Kyushu Electric Power Co. Inc.

     Electric Utilities        3,200          17,067  
 

Kyushu Financial Group Inc.

     Banks        2,700          7,126  
 

Kyushu Railway Co.

     Road & Rail        1,100          23,749  
 

LaSalle Logiport REIT

     Equity Real Estate Investment Trusts (REITs      12          13,422  
 

Lasertec Corp.

     Semiconductors & Semiconductor Equipment        584          59,290  
 

Lawson Inc.

     Food & Staples Retailing        352          11,527  
 

LINTEC Corp.

     Chemicals        272          4,174  
 

Lion Corp.

     Household Products        1,700          19,214  
 

LIXIL Group Corp.

     Building Products        1,936          28,342  
 

M3 Inc.

     Health Care Technology        2,920          81,722  
 

Mabuchi Motor Co. Ltd.

     Electrical Equipment        372          10,100  
 

Makita Corp.

     Machinery        1,728          33,415  
 

Mani Inc.

     Health Care Equipment & Supplies        400          4,858  
 

Marubeni Corp.

     Trading Companies & Distributors        10,900          95,487  
 

Marui Group Co. Ltd.

     Multiline Retail        1,372          22,730  
 

Maruichi Steel Tube Ltd.

     Metals & Mining        412          8,422  
 

Maruwa Unyu Kikan Co. Ltd.

     Air Freight & Logistics        200          2,005  
 

Matsui Securities Co. Ltd.

     Capital Markets        600          3,233  

 

           
244             

Semiannual Report

  franklintempleton.com


FRANKLIN TEMPLETON ETF TRUST

SCHEDULE OF INVESTMENTS (UNAUDITED)

 

Franklin FTSE Japan Hedged ETF (continued)

 

           Industry      Shares        Value  
    Common Stocks (continued)                       
    Japan (continued)                       
 

Matsumotokiyoshi Holdings Co. Ltd.

     Food & Staples Retailing        900        $ 38,737  
 

Mazda Motor Corp.

     Automobiles        3,900          25,758  
 

Mebuki Financial Group Inc.

     Banks        6,800          13,248  
 

Medipal Holdings Corp.

     Health Care Providers & Services        1,100          14,006  
 

Meiji Holdings Co. Ltd.

     Food Products        893          39,670  
 

Menicon Co. Ltd.

     Health Care Equipment & Supplies        340          6,983  
 

Minebea Mitsumi Inc.

     Machinery        2,836          41,910  
 

Miraca Holdings Inc.

     Health Care Providers & Services        372          6,785  
 

MISUMI Group Inc.

     Machinery        1,980          42,679  
 

Mitsubishi Chemical Holdings Corp.

     Chemicals        9,000          41,137  
 

Mitsubishi Corp.

     Trading Companies & Distributors        8,373          229,535  
 

Mitsubishi Electric Corp.

     Electrical Equipment        13,700          123,470  
 

Mitsubishi Estate Co. Ltd.

     Real Estate Management & Development        7,901          103,522  
 

Mitsubishi Gas Chemical Co. Inc.

     Chemicals        1,236          16,190  
 

Mitsubishi Heavy Industries Ltd.

     Machinery        2,000          66,406  
 

Mitsubishi Logistics Corp.

     Transportation Infrastructure        424          9,989  
 

Mitsubishi Materials Corp.

     Metals & Mining        972          13,357  
a  

Mitsubishi Motors Corp.

     Automobiles        4,200          15,031  
 

Mitsubishi UFJ Financial Group Inc.

     Banks        84,500          380,336  
 

Mitsubishi UFJ Lease & Finance Co. Ltd.

     Diversified Financial Services        4,589          19,720  
 

Mitsui & Co. Ltd.

     Trading Companies & Distributors        11,000          234,751  
 

Mitsui Chemicals Inc.

     Chemicals        1,236          24,072  
 

Mitsui Fudosan Co. Ltd.

     Real Estate Management & Development        6,400          121,792  
 

Mitsui Fudosan Logistics Park Inc.

     Equity Real Estate Investment Trusts (REITs      4          13,679  
 

Mitsui High-Tec Inc.

     Semiconductors & Semiconductor Equipment        220          10,351  
 

Mitsui Mining and Smelting Co. Ltd.

     Metals & Mining        372          7,813  
 

Mitsui OSK Lines Ltd.

     Marine        2,308          41,490  
 

Miura Co. Ltd.

     Machinery        680          13,840  
 

Mizuho Financial Group Inc.

     Banks        17,900          193,228  
a  

Money Forward Inc.

     Software        300          6,384  
 

MonotaRO Co. Ltd.

     Trading Companies & Distributors        1,620          24,869  
 

Mori Hills REIT Investment Corp.

     Equity Real Estate Investment Trusts (REITs      11          11,878  
 

Morinaga & Co. Ltd.

     Food Products        304          8,348  
 

Morinaga Milk Industry Co. Ltd.

     Food Products        308          9,054  
 

MS&AD Insurance Group Holdings Inc.

     Insurance        3,272          86,714  
 

Murata Manufacturing Co. Ltd.

     Electronic Equipment, Instruments & Components        4,032          184,740  
 

Nabtesco Corp.

     Machinery        776          15,842  
 

Nagase & Co. Ltd.

     Trading Companies & Distributors        700          9,532  
 

Nagoya Railroad Co. Ltd.

     Road & Rail        1,476          22,679  
 

Nankai Electric Railway Co. Ltd.

     Road & Rail        736          15,031  
 

NEC Corp.

     IT Services        1,860          59,432  
 

NEC System Integration & Construction Ltd.

     IT Services        600          6,520  
 

Net One Systems Co. Ltd.

     IT Services        600          11,681  
 

Nexon Co. Ltd.

     Entertainment        2,772          48,873  
 

NGK Insulators Ltd.

     Machinery        1,900          23,628  
 

NGK Spark Plug Co. Ltd.

     Auto Components        1,400          24,780  
 

NH Foods Ltd.

     Food Products        736          19,373  
 

NHK Spring Co. Ltd.

     Auto Components        1,100          6,467  
 

Nichirei Corp.

     Food Products        736          12,127  
 

Nidec Corp.

     Electrical Equipment        3,189          179,119  
 

Nifco Inc.

     Auto Components        600          12,456  
 

Nihon Kohden Corp.

     Health Care Equipment & Supplies        500          10,639  
 

Nihon M&A Center Inc.

     Professional Services        1,744          20,037  
 

Nihon Unisys Ltd.

     IT Services        412          8,938  
 

Nikon Corp.

     Household Durables        2,200          20,777  
 

Nintendo Co. Ltd.

     Entertainment        7,430          300,496  
 

Nippon Accommodations Fund Inc.

     Equity Real Estate Investment Trusts (REITs      3          13,596  

 

           
franklintempleton.com  

Semiannual Report

             245


FRANKLIN TEMPLETON ETF TRUST

SCHEDULE OF INVESTMENTS (UNAUDITED)

 

Franklin FTSE Japan Hedged ETF (continued)

 

           Industry      Shares        Value  
    Common Stocks (continued)                       
    Japan (continued)                       
 

Nippon Building Fund Inc.

     Equity Real Estate Investment Trusts (REITs      11        $ 48,333  
 

Nippon Electric Glass Co. Ltd.

     Electronic Equipment, Instruments & Components      500          8,612  
 

Nippon Express Co. Ltd.

     Road & Rail        500          25,424  
 

Nippon Kayaku Co. Ltd.

     Chemicals        1,100          8,800  
 

Nippon Paint Holdings Co. Ltd.

     Chemicals        7,152          48,373  
 

Nippon Prologis REIT Inc.

     Equity Real Estate Investment Trusts (REITs      16          34,986  
 

Nippon Sanso Holdings Corp.

     Chemicals        1,024          16,137  
 

Nippon Shinyaku Co. Ltd.

     Pharmaceuticals        336          17,178  
 

Nippon Shobukai Co. Ltd.

     Chemicals        256          9,551  
 

Nippon Steel Corp.

     Metals & Mining        5,700          79,015  
 

Nippon Telegraph & Telephone Corp.

     Diversified Telecommunication Services        8,300          223,979  
 

Nippon Television Holdings Inc.

     Media        100          799  
 

Nippon Yusen KK

     Marine        3,300          56,244  
 

Nipro Corp.

     Health Care Equipment & Supplies        700          5,262  
 

Nishi-Nippon Railroad Co. Ltd.

     Road & Rail        500          9,962  
 

Nissan Chemical Corp.

     Chemicals        912          40,640  
 

Nissan Motor Co. Ltd.

     Automobiles        13,600          43,240  
 

Nisshin Seifun Group Inc.

     Food Products        1,700          17,241  
 

Nissin Foods Holdings Co. Ltd.

     Food Products        452          31,446  
 

Nitori Holdings Co. Ltd.

     Specialty Retail        501          42,193  
 

Nitto Denko Corp.

     Chemicals        1,000          54,095  
 

Noevir Holdings Co. Ltd.

     Personal Products        92          3,610  
 

NOF Corp.

     Chemicals        500          18,032  
 

NOK Corp.

     Auto Components        872          6,789  
 

Nomura Holdings Inc.

     Capital Markets        21,100          69,738  
 

Nomura Real Estate Holdings Inc.

     Real Estate Management & Development        800          18,101  
 

Nomura Real Estate Master Fund Inc.

     Equity Real Estate Investment Trusts (REITs      32          35,306  
 

Nomura Research Institute Ltd.

     IT Services        2,740          67,201  
 

NS Solutions Corp.

     IT Services        236          5,698  
 

NSK Ltd.

     Machinery        3,100          15,142  
 

NTT Data Corp.

     IT Services        4,300          55,434  
 

Obayashi Corp.

     Construction & Engineering        4,700          30,133  
 

OBIC Business Consultants Co. Ltd.

     Software        184          5,695  
 

OBIC Co. Ltd.

     IT Services        467          62,559  
 

Odakyu Electric Railway Co. Ltd.

     Road & Rail        2,200          28,331  
 

Oji Holdings Corp.

     Paper & Forest Products        6,000          22,301  
 

Okuma Corp.

     Machinery        236          8,071  
 

Olympus Corp.

     Health Care Equipment & Supplies        8,840          169,691  
 

Omron Corp.

     Electronic Equipment, Instruments & Components        1,316          60,152  
 

Ono Pharmaceutical Co. Ltd.

     Pharmaceuticals        2,904          67,833  
 

Open House Co. Ltd.

     Household Durables        500          16,909  
 

Oracle Corp. Japan

     Software        260          13,831  
 

Orient Corp.

     Consumer Finance        360          2,850  
 

Oriental Land Co. Ltd.

     Hotels, Restaurants & Leisure        1,332          181,333  
 

ORIX Corp.

     Diversified Financial Services        8,400          117,720  
 

ORIX JREIT Inc.

     Equity Real Estate Investment Trusts (REITs      19          24,284  
 

Osaka Gas Co. Ltd.

     Gas Utilities        2,700          40,777  
 

OSG Corp.

     Machinery        600          7,403  
 

Otsuka Corp.

     IT Services        736          23,009  
 

Otsuka Holdings Co. Ltd.

     Pharmaceuticals        2,904          91,968  
 

Paltac Corp.

     Distributors        260          8,002  
 

Pan Pacific International Holdings Corp.

     Multiline Retail        2,828          50,017  
 

Panasonic Corp.

     Household Durables        15,000          105,133  
a  

Park24 Co. Ltd.

     Commercial Services & Supplies        872          11,260  
 

Penta-Ocean Construction Co. Ltd.

     Construction & Engineering        1,900          9,543  
a  

PeptiDream Inc.

     Biotechnology        660          7,364  
 

Persol Holdings Co. Ltd.

     Professional Services        1,200          22,177  

 

           
246             

Semiannual Report

  franklintempleton.com


FRANKLIN TEMPLETON ETF TRUST

SCHEDULE OF INVESTMENTS (UNAUDITED)

 

Franklin FTSE Japan Hedged ETF (continued)

 

           Industry      Shares        Value  
    Common Stocks (continued)                       
    Japan (continued)                       
 

Pigeon Corp.

     Household Products        736        $ 10,749  
 

Pola Orbis Holdings Inc.

     Personal Products        600          6,777  
 

Rakus Co. Ltd.

     Software        600          5,671  
 

Rakuten Inc.

     Internet & Direct Marketing Retail        5,500          23,597  
 

Recruit Holdings Co. Ltd.

     Professional Services        9,676          278,157  
 

Relo Group Inc.

     Real Estate Management & Development        736          11,197  
a  

Renesas Electronics Corp.

     Semiconductors & Semiconductor Equipment        8,500          70,586  
 

Rengo Co. Ltd.

     Containers & Packaging        1,500          8,705  
a  

RENOVA Inc.

     Independent Power Producers & Energy Traders        300          7,057  
 

Resona Holdings Inc.

     Banks        15,536          56,672  
 

Resorttrust Inc.

     Hotels, Restaurants & Leisure        400          6,417  
 

Ricoh Co. Ltd.

     Technology Hardware, Storage & Peripherals        4,200          30,641  
 

Rinnai Corp.

     Household Durables        228          16,366  
 

Rohm Co. Ltd.

     Semiconductors & Semiconductor Equipment        636          41,567  
 

Rohto Pharmaceutical Co. Ltd.

     Personal Products        736          23,568  
 

Ryohin Keikaku Co. Ltd.

     Multiline Retail        1,700          14,199  
 

Sankyo Co. Ltd.

     Leisure Products        272          8,240  
 

Sankyu Inc.

     Road & Rail        372          10,794  
 

Sanrio Co. Ltd.

     Specialty Retail        400          10,280  
 

Santen Pharmaceutical Co. Ltd.

     Pharmaceuticals        2,600          17,514  
 

Sanwa Holdings Corp.

     Building Products        1,300          11,173  
 

Sapporo Holdings Ltd.

     Beverages        400          8,788  
 

Sawai Group Holdings Co. Ltd.

     Pharmaceuticals        288          8,078  
 

SBI Holdings Inc.

     Capital Markets        1,712          30,705  
 

SCREEN Holdings Co. Ltd.

     Semiconductors & Semiconductor Equipment        292          15,897  
 

SCSK Corp.

     IT Services        872          13,193  
 

Secom Co. Ltd.

     Commercial Services & Supplies        1,372          78,446  
 

Sega Sammy Holdings Inc.

     Leisure Products        1,228          16,705  
 

Seibu Holdings Inc.

     Industrial Conglomerates        1,400          13,986  
 

Seiko Epson Corp.

     Technology Hardware, Storage & Peripherals        1,900          25,859  
 

Seino Holdings Co. Ltd.

     Road & Rail        1,000          8,014  
 

Sekisui Chemical Co. Ltd.

     Household Durables        2,300          28,094  
 

Sekisui House Ltd.

     Household Durables        3,900          64,692  
 

Sekisui House Reit Inc.

     Equity Real Estate Investment Trusts (REITs      28          15,708  
 

Seven & i Holdings Co. Ltd.

     Food & Staples Retailing        5,400          216,604  
 

Seven Bank Ltd.

     Banks        4,300          7,694  
 

SG Holdings Co. Ltd.

     Air Freight & Logistics        3,044          41,640  
 

Sharp Corp.

     Household Durables        1,400          8,347  
a  

SHIFT Inc.

     IT Services        60          7,830  
a  

Shikoku Electric Power Co. Inc.

     Electric Utilities        1,000          4,995  
 

Shimadzu Corp.

     Electronic Equipment, Instruments & Components        1,900          49,815  
 

Shimamura Co. Ltd.

     Specialty Retail        116          9,801  
 

SHIMANO Inc.

     Leisure Products        539          84,679  
 

Shimizu Corp.

     Construction & Engineering        3,500          17,144  
 

Shin-Etsu Chemical Co. Ltd.

     Chemicals        2,770          274,235  
 

Shinko Electric Industries Co. Ltd.

     Semiconductors & Semiconductor Equipment        500          10,760  
 

Shinsei Bank Ltd.

     Banks        400          5,734  
 

Shionogi & Co. Ltd.

     Pharmaceuticals        1,912          92,321  
 

Ship Healthcare Holdings Inc.

     Health Care Providers & Services        500          9,392  
 

Shiseido Co. Ltd.

     Personal Products        2,708          94,592  
 

SHO-BOND Holdings Co. Ltd.

     Construction & Engineering        340          14,704  
a  

Shochiku Co. Ltd.

     Entertainment        56          4,604  
 

Showa Denko K.K.

     Chemicals        1,352          19,186  
a  

Skylark Holdings Co. Ltd.

     Hotels, Restaurants & Leisure        1,500          15,990  
 

SMC Corp.

     Machinery        397          159,683  
 

SMS Co. Ltd.

     Professional Services        380          7,690  
 

Softbank Corp.

     Wireless Telecommunication Services        19,300          192,873  

 

           
franklintempleton.com  

Semiannual Report

             247


FRANKLIN TEMPLETON ETF TRUST

SCHEDULE OF INVESTMENTS (UNAUDITED)

 

Franklin FTSE Japan Hedged ETF (continued)

 

           Industry        Shares        Value  
    Common Stocks (continued)                         
    Japan (continued)                         
 

SoftBank Group Corp.

     Wireless Telecommunication Services          7,360        $ 249,155  
 

Sohgo Security Services Co. Ltd.

     Commercial Services & Supplies          428          10,763  
 

Sojitz Corp.

     Trading Companies & Distributors          1,600          23,479  
 

Sompo Holdings Inc.

     Insurance          2,236          89,011  
 

Sony Corp.

     Household Durables          8,700          558,142  
 

Sotetsu Holdings Inc.

     Road & Rail          500          8,280  
 

Square Enix Holdings Co. Ltd.

     Entertainment          600          25,825  
 

Stanley Electric Co. Ltd.

     Auto Components          1,016          15,892  
 

Subaru Corp.

     Automobiles          4,200          62,879  
 

Sugi Pharmacy Co. Ltd.

     Food & Staples Retailing          284          11,400  
 

Sumco Corp.

     Semiconductors & Semiconductor Equipment          2,300          26,822  
 

Sumitomo Bakelite Co. Ltd.

     Chemicals          236          6,465  
 

Sumitomo Chemical Co. Ltd.

     Chemicals          10,600          36,396  
 

Sumitomo Corp.

     Trading Companies & Distributors          7,900          98,378  
 

Sumitomo Dainippon Pharma Co. Ltd.

     Pharmaceuticals          1,300          9,260  
 

Sumitomo Electric Industries Ltd.

     Auto Components          5,300          53,606  
 

Sumitomo Forestry Co. Ltd.

     Household Durables          1,000          15,234  
 

Sumitomo Heavy Industries Ltd.

     Machinery          736          13,592  
 

Sumitomo Metal Mining Co. Ltd.

     Metals & Mining          1,700          48,858  
 

Sumitomo Mitsui Financial Group Inc.

     Banks          9,188          255,432  
 

Sumitomo Realty & Development Co. Ltd.

     Real Estate Management & Development          2,700          61,333  
 

Sumitomo Rubber Industries Ltd.

     Auto Components          1,200          9,542  
 

Sundrug Co. Ltd.

     Food & Staples Retailing          440          10,685  
 

Suntory Beverage & Food Ltd.

     Beverages          940          33,315  
 

Sushiro Global Holdings Ltd.

     Hotels, Restaurants & Leisure          660          10,141  
 

Suzuken Co. Ltd.

     Health Care Providers & Services          500          11,417  
 

Suzuki Motor Corp.

     Automobiles          3,232          100,056  
 

Sysmex Corp.

     Health Care Equipment & Supplies          1,380          74,060  
 

T&D Holdings Inc.

     Insurance          3,600          33,999  
 

Taiheiyo Cement Corp.

     Construction Materials          800          11,264  
 

Taisei Corp.

     Construction & Engineering          1,240          34,439  
 

Taisho Pharmaceutical Holdings Co. Ltd.

     Pharmaceuticals          316          11,571  
 

Taiyo Yuden Co. Ltd.

     Electronic Equipment, Instruments & Components          841          21,643  
 

Takara Bio Inc.

     Biotechnology          272          3,196  
 

Takara Holdings Inc.

     Beverages          1,200          8,763  
 

Takashimaya Co. Ltd.

     Multiline Retail          1,100          13,003  
 

Takeda Pharmaceutical Co. Ltd.

     Pharmaceuticals          10,592          275,658  
 

TBS Holdings Inc.

     Media          172          1,881  
 

TDK Corp.

     Electronic Equipment, Instruments & Components          2,556          78,669  
 

TechnoPro Holdings Inc.

     Professional Services          728          15,516  
 

Teijin Ltd.

     Chemicals          1,200          11,623  
 

Terumo Corp.

     Health Care Equipment & Supplies          4,660          131,161  
 

The Bank of Kyoto Ltd.

     Banks          500          18,274  
 

The Chiba Bank Ltd.

     Banks          4,100          22,066  
 

The Chugoku Bank Ltd.

     Banks          1,000          6,308  
 

The Chugoku Electric Power Co. Inc.

     Electric Utilities          2,000          10,142  
 

The Iyo Bank Ltd.

     Banks          1,900          9,280  
 

The Japan Steel Works Ltd.

     Machinery          400          7,865  
 

The Kansai Electric Power Co. Inc.

     Electric Utilities          5,100          42,704  
 

The Shizuoka Bank Ltd.

     Banks          3,300          20,268  
 

THK Co. Ltd.

     Machinery          780          13,450  
 

TIS Inc.

     IT Services          1,600          42,392  
 

Tobu Railway Co. Ltd.

     Road & Rail          1,472          34,678  
 

Toda Corp.

     Construction & Engineering          1,600          8,224  
 

Toho Co. Ltd.

     Entertainment          760          27,566  
 

Toho Gas Co. Ltd.

     Gas Utilities          665          13,245  
 

Tohoku Electric Power Co. Inc.

     Electric Utilities          3,500          16,467  

 

           
248             

Semiannual Report

  franklintempleton.com


FRANKLIN TEMPLETON ETF TRUST

SCHEDULE OF INVESTMENTS (UNAUDITED)

 

Franklin FTSE Japan Hedged ETF (continued)

 

           Industry      Shares        Value  
    Common Stocks (continued)                       
    Japan (continued)                       
 

Tokai Carbon Co. Ltd.

     Chemicals        1,300        $ 8,793  
 

Tokio Marine Holdings Inc.

     Insurance        13,292          235,545  
 

Tokyo Century Corp.

     Diversified Financial Services        432          13,759  
a  

Tokyo Electric Power Co. Holdings Inc.

     Electric Utilities        11,000          35,110  
 

Tokyo Electron Ltd.

     Semiconductors & Semiconductor Equipment        1,040          256,506  
 

Tokyo Gas Co. Ltd.

     Gas Utilities        2,897          49,056  
 

Tokyo Ohka Kogyo Co. Ltd.

     Chemicals        292          12,185  
 

Tokyo Tatemono Co. Ltd.

     Real Estate Management & Development        1,472          20,929  
 

TOKYU Corp.

     Road & Rail        3,500          39,825  
 

Tokyu Fudosan Holdings Corp.

     Real Estate Management & Development        4,100          21,273  
 

TOPPAN Inc.

     Commercial Services & Supplies        2,000          29,763  
 

Toray Industries Inc.

     Chemicals        10,700          52,618  
 

Toshiba Corp.

     Industrial Conglomerates        2,980          105,987  
 

Toshiba TEC Corp.

     Technology Hardware, Storage & Peripherals        220          5,684  
 

Tosoh Corp.

     Chemicals        1,872          20,822  
 

TOTO Ltd.

     Building Products        1,056          35,165  
 

Toyo Seikan Group Holdings Ltd.

     Containers & Packaging        1,000          12,049  
 

Toyo Suisan Kaisha Ltd.

     Food Products        673          27,711  
 

Toyo Tire Corp.

     Auto Components        636          6,898  
 

Toyoda Gosei Co. Ltd.

     Auto Components        500          7,548  
 

Toyota Boshoku Corp.

     Auto Components        400          4,897  
 

Toyota Industries Corp.

     Auto Components        1,100          52,285  
 

Toyota Motor Corp.

     Automobiles        85,509          1,108,259  
 

Toyota Tsusho Corp.

     Trading Companies & Distributors        1,600          49,522  
 

Trend Micro Inc.

     Software        808          43,653  
 

TS TECH Co. Ltd.

     Auto Components        800          7,843  
 

Tsumura & Co.

     Pharmaceuticals        500          10,657  
 

Tsuruha Holdings Inc.

     Food & Staples Retailing        296          17,362  
 

Ube Industries Ltd.

     Chemicals        636          8,489  
 

Ulvac Inc.

     Semiconductors & Semiconductor Equipment        372          13,184  
 

Unicharm Corp.

     Household Products        2,700          88,604  
 

United Urban Investment Corp.

     Equity Real Estate Investment Trusts (REITs      20          20,657  
 

Ushio Inc.

     Electrical Equipment        700          7,264  
 

USS Co. Ltd.

     Specialty Retail        1,400          21,637  
 

Welcia Holdings Co. Ltd.

     Food & Staples Retailing        644          13,592  
 

West Japan Railway Co.

     Road & Rail        1,620          62,004  
 

Yakult Honsha Co. Ltd.

     Food Products        889          51,653  
 

Yamada Holdings Co. Ltd.

     Specialty Retail        5,000          16,443  
 

Yamaguchi Financial Group Inc.

     Banks        1,500          7,959  
 

Yamaha Corp.

     Leisure Products        1,100          39,062  
 

Yamaha Motor Co. Ltd.

     Automobiles        2,096          39,199  
 

Yamato Holdings Co. Ltd.

     Air Freight & Logistics        2,320          34,893  
 

Yamato Kogyo Co. Ltd.

     Metals & Mining        236          7,141  
 

Yamazaki Baking Co. Ltd.

     Food Products        772          8,870  
 

Yaoko Co. Ltd.

     Food & Staples Retailing        136          6,164  
 

YASKAWA Electric Corp.

     Machinery        1,820          52,370  
 

Yokogawa Electric Corp.

     Electronic Equipment, Instruments & Components        1,700          26,719  
 

Yokohama Rubber Co. Ltd.

     Auto Components        900          13,779  
 

Z Holdings Corp.

     Interactive Media & Services        18,400          48,331  
 

Zenkoku Hosho Co. Ltd.

     Diversified Financial Services        372          12,375  
 

Zensho Holdings Co. Ltd.

     Hotels, Restaurants & Leisure        700          17,337  
 

Zeon Corp.

     Chemicals        1,000          8,829  
 

Zozo Inc.

     Internet & Direct Marketing Retail        736          14,715  
            

 

 

 
 

Total Investments before Short Term Investments (Cost $29,743,748)

             22,742,013  
            

 

 

 

 

           
franklintempleton.com  

Semiannual Report

             249


FRANKLIN TEMPLETON ETF TRUST

SCHEDULE OF INVESTMENTS (UNAUDITED)

 

Franklin FTSE Japan Hedged ETF (continued)

 

           Industry        Shares        Value  
    Short-Term Investments 1.2%                         
 

Money Market Funds 1.2%

            
    United States 1.2%                         
b,c  

Institutional Fiduciary Trust Portfolio, 2.45%

     Money Market Funds          272,885        $ 272,885  
              

 

 

 
 

Total Short-Term Investments (Cost $272,885)

               272,885  
              

 

 

 
 

Total Investments (Cost $30,016,633) 99.6%

               23,014,898  
 

Other Assets, less Liabilities 0.4%

               89,563  
              

 

 

 
 

Net Assets 100.0%

             $ 23,104,461  
              

 

 

 

aNon-income producing.

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

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

At September 30, 2022 the Fund had the following forward exchange contracts outstanding. See Note 1(c).

 

Forward Exchange Contracts                              
Currency    Counterpartya      Type      Quantity     

Contract

Amount

    

Settlement

Date

    

Unrealized

Appreciation

    

Unrealized

Depreciation

 
OTC Forward Exchange Contracts  

Japanese Yen

     HSBK        Buy        13,811,930      $ 98,490        10/04/22      $      $ (3,068

Japanese Yen

     UBSW        Buy        13,811,930        98,490        10/04/22               (3,068

Japanese Yen

     DBAB        Buy        13,811,930        98,486        10/04/22               (3,064

Japanese Yen

     MSCO        Buy        5,650,336        40,291        10/04/22               (1,255

Japanese Yen

     DBAB        Buy        979,852,070        6,769,739        10/04/22               (234

Japanese Yen

     HSBK        Buy        979,852,070        6,769,608        10/04/22               (103

Japanese Yen

     UBSW        Buy        979,852,070        6,769,571        10/04/22               (65

Japanese Yen

     MSCO        Buy        400,848,664        2,769,275        10/04/22        69         

Japanese Yen

     MSCO        Sell        406,499,000        2,939,706        10/04/22        131,326         

Japanese Yen

     DBAB        Sell        993,664,000        7,184,870        10/04/22        319,943         

Japanese Yen

     HSBK        Sell        993,664,000        7,186,024        10/04/22        321,096         

Japanese Yen

     UBSW        Sell        993,664,000        7,186,097        10/04/22        321,169         

Japanese Yen

     MSCO        Sell        400,434,000        2,773,784        11/02/22               (129

Japanese Yen

     UBSW        Sell        978,839,000        6,780,556        11/02/22               (123

Japanese Yen

     HSBK        Sell        978,839,000        6,780,612        11/02/22               (67

Japanese Yen

     DBAB        Sell        978,839,000        6,780,739        11/02/22        60         
                 

 

 

 

Total Forward Exchange Contracts

 

   $ 1,093,663      $ (11,176
                 

 

 

 

Net unrealized appreciation (depreciation)

 

      $ 1,082,487  
                    

 

 

 

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

At September 30, 2022, the Fund had the following futures contracts outstanding. See Note 1(c).

 

Futures Contracts                                   
Description    Type      Number of
Contracts
     Notional
Amount*
     Expiration
Date
     Value/Unrealized
Appreciation
(Depreciation)
 
Index Contracts                                   

Nikkei 225 Mini

     Long        12      $ 215,054        12/08/22        $(2,018)  

*As of period end.

See Note 8 regarding other derivative information.

See Abbreviations on page 332.

 

           
250             

Semiannual Report    |   The accompanying notes are an integral part of these financial statements.

  franklintempleton.com


FRANKLIN TEMPLETON ETF TRUST

 

Financial Highlights

 

Franklin FTSE Latin America ETF

 

   

Six Months Ended
September 30, 2022

(unaudited)

     Year Ended March 31,  
      2022      2021      2020      2019a  
Per share operating performance
(for a share outstanding throughout the period)

 

Net asset value, beginning of period

    $25.25      $ 22.40      $ 15.20      $ 26.41      $ 26.17  
 

 

 

 
Income from investment operationsb:              

Net investment incomec

    1.33        1.54        0.57        0.77        0.38  

Net realized and unrealized gains (losses)

    (6.11      2.83        7.13        (11.08      (0.02
 

 

 

 

Total from investment operations

    (4.78      4.37        7.70        (10.31      0.36  
 

 

 

 

Less distributions from net investment income

    (0.80      (1.52      (0.50      (0.90      (0.12
 

 

 

 

Net asset value, end of period

    $19.67      $ 25.25      $ 22.40      $ 15.20      $ 26.41  
 

 

 

 

Total returnd

    (18.91)%        21.12%        50.80%        (40.49)%        1.42%  
Ratios to average net assetse              

Total expenses

    0.19%        0.19%        0.19%        0.21%        0.19%  

Net investment income

    13.15%        6.75%        2.86%        2.97%        3.08%  
Supplemental data              

Net assets, end of period (000’s)

    $60,974        $7,575        $4,480        $1,520        $2,641  

Portfolio turnover ratef

    3.85% g       18.50%g        10.21% g       12.74% g       4.08%  

aFor the period October 9, 2018 (commencement of operations) to March 31, 2019.

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

cBased on average daily shares outstanding.

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

eRatios are annualized for periods less than one year.

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

 

gPortfolio turnover rate excluding cash creations was as follows:     3.85%        18.50%        10.21%        12.74%                  

 

           
franklintempleton.com  

The accompanying notes are an integral part of these financial statements.    |   Semiannual Report

             251


FRANKLIN TEMPLETON ETF TRUST

 

Schedule of Investments, September 30, 2022 (unaudited)

 

Franklin FTSE Latin America ETF

 

           Industry        Shares        Value  
    Common Stocks 78.7%                         
    Brazil 46.0%                         
 

Ambev SA

     Beverages          465,000        $ 1,335,977  
 

Americanas SA

     Internet & Catalog Retail          71,343          223,967  
 

Atacadao SA

     Food & Staples Retailing          55,800          199,417  
 

Auren Energia SA

     Independent Power Producers & Energy Traders          37,479          93,891  
 

B3 SA – Brasil Bolsa Balcao

     Capital Markets          647,900          1,563,197  
 

Banco Bradesco SA

     Banks          161,260          486,268  
 

Banco BTG Pactual SA

     Capital Markets          124,000          568,779  
 

Banco do Brasil SA

     Banks          89,900          640,237  
 

Banco Santander Brasil SA

     Banks          40,300          226,056  
 

BB Seguridade Participacoes SA

     Insurance          71,300          350,248  
 

BR Malls Participacoes SA

     Real Estate Management & Development          86,800          151,331  
 

Bradespar SA

     Metals & Mining          3,110          12,793  
a  

BRF SA

     Food Products          86,800          206,695  
 

Caixa Seguridade Participacoes S/A

     Insurance          49,600          78,038  
 

CCR SA

     Transportation Infrastructure          117,800          272,892  
 

Centrais Eletricas Brasileiras SA

     Electric Utilities          133,300          1,058,987  
 

Cia de Saneamento Basico do Estado de Sao Paulo

     Water Utilities          37,200          341,130  
 

Cia Energetica de Minas Gerais

     Electric Utilities          34,169          102,339  
 

Cia Paranaense de Energia

     Electric Utilities          34,100          39,088  
 

Cia Siderurgica Nacional SA

     Metals & Mining          65,100          153,096  
 

Cielo SA

     IT Services          120,900          120,702  
 

Cosan SA

     Oil, Gas & Consumable Fuels          127,112          408,443  
 

CPFL Energia SA

     Electric Utilities          18,600          116,094  
 

CSN Mineracao SA

     Metals & Mining          52,700          32,250  
 

Dexco SA

     Paper & Forest Products          31,180          53,899  
 

Diagnosticos da America SA

     Health Care Providers & Services          9,300          32,428  
 

EDP – Energias do Brasil SA

     Electric Utilities          27,900          112,604  
a  

Embraer SA

     Aerospace & Defense          77,500          166,926  
 

Energisa SA

     Electric Utilities          27,900          216,078  
a  

Eneva SA

     Independent Power Producers & Energy Traders          127,100          332,504  
 

Engie Brasil Energia SA

     Independent Power Producers & Energy Traders          18,600          132,429  
 

Equatorial Energia SA

     Electric Utilities          99,200          493,354  
b  

GPS Participacoes e Empreendimentos SA, 144A

     Commercial Services & Supplies          43,400          107,841  
 

Grendene SA

     Textiles, Apparel & Luxury Goods          37,200          48,625  
 

GRUPO DE MODA SOMA SA

     Textiles, Apparel & Luxury Goods          46,500          114,512  
a  

Grupo Mateus SA

     Food & Staples Retailing          43,400          52,958  
b,c  

Hapvida Participacoes e Investimentos S/A, 144A

     Health Care Providers & Services          424,752          594,465  
 

Hypera SA

     Pharmaceuticals          43,400          355,057  
 

Itau Unibanco Holding SA

     Banks          49,600          215,682  
 

Klabin SA

     Containers & Packaging          80,600          270,462  
 

Localiza Rent a Car SA

     Road & Rail          83,776          946,204  
 

Lojas Renner SA

     Multiline Retail          105,426          542,835  
 

M Dias Branco SA

     Food Products          12,400          100,436  
a  

Magazine Luiza SA

     Multiline Retail          319,336          264,497  
 

Marfrig Global Foods SA

     Food Products          37,200          67,882  
 

Multiplan Empreendimentos Imobiliarios SA

     Real Estate Management & Development          31,000          138,527  
 

Natura & Co. Holding SA

     Personal Products          102,300          278,595  
 

Neoenergia SA

     Electric Utilities          24,800          70,152  
 

Odontoprev SA

     Health Care Providers & Services          31,070          50,550  
a  

Petro Rio SA

     Oil, Gas & Consumable Fuels          71,300          362,903  
 

Petroleo Brasileiro SA

     Oil, Gas & Consumable Fuels          396,800          2,426,790  
 

Porto Seguro SA

     Insurance          18,600          72,662  
 

Raia Drogasil SA

     Food & Staples Retailing          114,700          482,012  
b  

Rede D’Or Sao Luiz SA, 144A

     Health Care Providers & Services          49,600          272,537  
 

Rumo SA

     Road & Rail          133,300          455,436  
 

Sao Martinho SA

     Food Products          18,600          87,758  

 

           
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FRANKLIN TEMPLETON ETF TRUST

SCHEDULE OF INVESTMENTS (UNAUDITED)

 

Franklin FTSE Latin America ETF (continued)

 

           Industry        Shares        Value  
    Common Stocks (continued)                         
    Brazil (continued)                         
 

Sendas Distribuidora SA

     Food & Staples Retailing          83,700        $ 271,580  
 

SIMPAR SA

     Road & Rail          31,000          55,365  
 

SLC Agricola SA

     Food Products          9,300          74,433  
a  

Smartfit Escola de Ginastica e Danca SA

     Hotels, Restaurants & Leisure          12,400          34,847  
 

Sul America SA

     Insurance          43,400          177,007  
 

Suzano SA

     Paper & Forest Products          77,500          637,612  
 

Telefonica Brasil SA

     Diversified Telecommunication Services          46,500          348,093  
 

TIM SA

     Wireless Telecommunication Services          86,800          193,857  
 

Totvs SA

     Software          46,500          252,323  
 

Transmissora Alianca de Energia Eletrica SA

     Electric Utilities          24,800          178,589  
 

Ultrapar Participacoes SA

     Oil, Gas & Consumable Fuels          86,842          188,332  
 

Usinas Siderurgicas de Minas Gerais SA Usiminas

     Metals & Mining          18,600          28,198  
 

Vale SA

     Metals & Mining          414,400          5,519,357  
 

Vamos Locacao de Caminhoes Maquinas e Equipamentos SA

     Road & Rail          21,700          54,843  
 

Vibra Energia SA

     Specialty Retail          117,800          375,690  
 

WEG SA

     Machinery          158,100          939,448  
              

 

 

 
                 28,031,089  
              

 

 

 
    Chile 4.3%                         
 

Banco de Chile

     Banks          4,667,329          414,972  
 

Banco de Credito e Inversiones SA

     Banks          5,829          149,690  
 

Banco Santander Chile

     Banks          6,599,280          232,988  
 

CAP SA

     Metals & Mining          7,905          51,658  
 

Cencosud SA

     Food & Staples Retailing          139,283          178,114  
 

Cencosud Shopping SA

     Real Estate Management & Development          51,336          54,126  
 

Cia Cervecerias Unidas SA

     Beverages          14,415          79,168  
 

Cia Sud Americana de Vapores SA

     Marine          1,879,933          130,898  
 

Colbun SA

     Independent Power Producers & Energy Traders          767,157          68,072  
 

Empresas CMPC SA

     Paper & Forest Products          128,092          196,978  
 

Empresas Copec SA

     Oil, Gas & Consumable Fuels          52,173          337,742  
 

Enel Americas SA

     Electric Utilities          2,015,961          214,658  
 

Enel Chile SA

     Electric Utilities          2,639,247          77,116  
 

Falabella SA

     Multiline Retail          83,917          169,072  
 

Itau CorpBanca Chile SA

     Banks          34,425,717          65,873  
 

Plaza SA

     Real Estate Management & Development          31,093          25,350  
 

Quinenco SA

     Industrial Conglomerates          28,458          62,392  
 

Sociedad Quimica y Minera de Chile SA, A

     Chemicals          1,829          141,309  
              

 

 

 
                 2,650,176  
              

 

 

 
    Colombia 1.2%                         
 

Bancolombia SA

     Banks          29,047          196,639  
 

Cementos Argos SA

     Construction Materials          54,839          40,347  
 

Ecopetrol SA

     Oil, Gas & Consumable Fuels          507,563          229,143  
 

Grupo de Inversiones Suramericana SA

     Diversified Financial Services          10,726          87,554  
 

Interconexion Electrica SA ESP

     Electric Utilities          46,159          165,787  
              

 

 

 
                 719,470  
              

 

 

 
    Mexico 25.9%                         
 

Alfa SAB de CV, A

     Industrial Conglomerates          387,035          246,763  
 

Alpek SAB de CV

     Chemicals          41,137          53,376  
 

America Movil SAB de CV

     Wireless Telecommunication Services          3,049,036          2,521,719  
 

Arca Continental SAB de CV

     Beverages          47,244          340,735  
b  

Banco del Bajio SA, 144A

     Banks          75,299          190,649  
 

Becle SAB de CV

     Beverages          57,195          101,462  
a  

Cemex SAB de CV

     Construction Materials          1,570,739          542,133  
 

Coca-Cola Femsa SAB de CV

     Beverages          56,234          329,084  

 

           
franklintempleton.com  

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             253


FRANKLIN TEMPLETON ETF TRUST

SCHEDULE OF INVESTMENTS (UNAUDITED)

 

Franklin FTSE Latin America ETF (continued)

 

           Industry      Shares        Value  
    Common Stocks (continued)                       
    Mexico (continued)                       
 

Concentradora Fibra Danhos SA de CV

     Equity Real Estate Investment Trusts (REITs      26,133        $ 31,452  
a  

Controladora Vuela Cia de Aviacion SAB de CV, A

     Airlines        97,247          68,821  
 

El Puerto de Liverpool SAB de CV

     Multiline Retail        20,615          90,734  
 

Fibra Uno Administracion SA de CV

     Equity Real Estate Investment Trusts (REITs      308,946          318,511  
 

Fomento Economico Mexicano SAB de CV

     Beverages        194,494          1,220,889  
 

Gruma SAB de CV

     Food Products        20,770          199,256  
 

Grupo Aeroportuario del Centro Norte SAB de CV

     Transportation Infrastructure        28,830          181,690  
 

Grupo Aeroportuario del Pacifico SAB de CV

     Transportation Infrastructure        36,735          465,045  
 

Grupo Aeroportuario del Sureste SAB de CV

     Transportation Infrastructure        21,328          420,747  
 

Grupo Bimbo SAB de CV

     Food Products        236,623          835,168  
 

Grupo Carso SAB de CV, A1

     Industrial Conglomerates        48,236          176,943  
 

Grupo Comercial Chedraui SA de CV

     Food & Staples Retailing        49,352          146,062  
 

Grupo Elektra SAB de CV

     Banks        6,727          345,040  
 

Grupo Financiero Banorte SAB de CV

     Banks        307,861          1,979,987  
a  

Grupo Financiero Inbursa SAB de CV

     Banks        212,784          337,788  
 

Grupo Mexico SAB de CV, B

     Metals & Mining        336,939          1,141,479  
 

Grupo Televisa SAB

     Media        253,518          274,857  
 

Industrias Bachoco SAB de CV

     Food Products        17,267          66,861  
 

Industrias Penoles SAB de CV

     Metals & Mining        13,268          129,186  
 

Kimberly-Clark de Mexico SAB de CV, A

     Household Products        88,195          118,032  
 

Megacable Holdings SAB de CV

     Media        32,271          65,128  
 

Operadora De Sites Mexicanos SAB de CV, A-1

     Diversified Telecommunication Services        134,943          112,343  
 

Orbia Advance Corp. SAB de CV

     Chemicals        103,943          174,621  
 

Prologis Property Mexico SA de CV

     Equity Real Estate Investment Trusts (REITs      62,839          159,977  
 

Promotora y Operadora de Infraestructura SAB de CV

     Transportation Infrastructure        23,405          159,653  
 

Qualitas Controladora SAB de CV

     Insurance        17,639          72,854  
 

Regional SAB de CV

     Banks        25,420          143,525  
 

Sitios Latinoamerica SAB de CV

     Construction & Engineering        152,452          68,161  
 

Wal-Mart de Mexico SAB de CV, V

     Food & Staples Retailing        549,785          1,936,654  
            

 

 

 
               15,767,385  
            

 

 

 
    Panama 0.0%                       
a  

BAC Holding International Corp.

     Banks        554,900          23,288  
            

 

 

 
    United States 1.3%                       
 

GCC SAB de CV

     Construction Materials        17,918          107,557  
 

JBS SA

     Food Products        145,700          676,666  
            

 

 

 
               784,223  
            

 

 

 
 

Total Common Stocks
(Cost $48,437,960)

             47,975,631  
            

 

 

 
    Preferred Stocks 20.9%                       
    Brazil 17.9%                       
d  

Alpargatas SA, 2.045%, pfd.

     Textiles, Apparel & Luxury Goods        24,800          97,525  
d  

Banco Bradesco SA, 3.165%, pfd.

     Banks        554,925          2,035,500  
d  

Bradespar SA, 32.075%, pfd.

     Metals & Mining        27,907          122,590  
d  

Braskem SA, 35.194%, pfd., A

     Chemicals        21,700          105,273  
d  

Centrais Eletricas Brasileiras SA, 3.575%, pfd., B

     Electric Utilities        31,000          258,770  
d  

Cia de Transmissao de Energia Eletrica Paulista, 6.461%, pfd.

     Electric Utilities        18,600          78,989  
d  

Cia Paranaense de Energia, 17.781%, pfd.

     Electric Utilities        136,400          165,934  
d  

Companhia Energetica de Minas Gerais, 12.825%, pfd.

     Electric Utilities        133,315          265,208  
d  

Gerdau SA, 14.894%, pfd.

     Metals & Mining        111,600          504,267  
d  

Itau Unibanco Holding SA, 2.937%, pfd.

     Banks        514,600          2,669,639  
d  

Itausa SA, 5.807%, pfd.

     Banks        508,430          914,617  
d  

Metalurgica Gerdau SA, 21.719%, pfd.

     Metals & Mining        74,400          145,668  
d  

Petroleo Brasileiro SA, 38.601%, pfd.

     Oil, Gas & Consumable Fuels        598,300          3,296,327  

 

           
254             

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FRANKLIN TEMPLETON ETF TRUST

SCHEDULE OF INVESTMENTS (UNAUDITED)

 

Franklin FTSE Latin America ETF (continued)

 

           Industry        Shares        Value  
    Preferred Stocks (continued)                         
    Brazil (continued)                         
d  

Raizen SA, 1.575%, pfd.

     Oil, Gas & Consumable Fuels        127,100        $ 98,459  
d  

Unipar Carbocloro SA, 16.852%, pfd., B

     Chemicals          4,940          87,669  
d  

Usinas Siderurgicas de Minas Gerais SA Usiminas, 10.931%, pfd., A

     Metals & Mining          49,600          68,960  
              

 

 

 
                 10,915,395  
              

 

 

 
    Chile 2.4%                         
 

Embotelladora Andina SA, B, 16.21%, pfd., B

     Beverages          40,176          70,296  
 

Sociedad Quimica y Minera de Chile SA, 0.005%, pfd., B

     Chemicals          14,539          1,367,487  
              

 

 

 
                 1,437,783  
              

 

 

 
    Colombia 0.6%                         
 

Bancolombia SA, 8.583%, pfd.

     Banks          47,678          290,800  
 

Grupo Aval Acciones y Valores SA, 5.062%, pfd.

     Banks          463,419          58,507  
 

Grupo de Inversiones Suramericana SA, 5.772%, pfd.

     Diversified Financial Services          8,370          23,321  
              

 

 

 
                 372,628  
              

 

 

 
 

Total Preferred Stocks (Cost $11,896,256)

               12,725,806  
              

 

 

 
    Right 0.0%                         
    Brazil 0.0%†                         
a  

Localiza Rent a Car SA

     Road & Rail          257          523  
              

 

 

 
 

Total Rights (Cost $0)

               523  
              

 

 

 
 

Total Investments (Cost $60,334,216) 99.6%

               60,701,960  
 

Other Assets, less Liabilities 0.4%

               271,581  
              

 

 

 
 

Net Assets 100.0%

             $ 60,973,541  
              

 

 

 

Rounds to less than 0.1% of net assets.

aNon-income producing.

bSecurity was purchased pursuant to Rule 144A under the Securities Act of 1933 and may be sold in transactions exempt from registration only to qualified institutional buyers or in a public offering registered under the Securities Act of 1933. At September 30, 2022, the value of was $1,165,492, representing 1.9% of net assets.

cSecurity was purchased pursuant to Regulation S under the Securities Act of 1933, which exempts from registration securities offered and sold outside of the United States. Such a security cannot be sold in the United States without either an effective registration statement filed pursuant to the Securities Act of 1933, or pursuant to an exemption from registration. At September 30,2022, the value of was $594,465, representing 1.0% of net assets.

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

At September 30, 2022, the Fund had the following futures contracts outstanding. See Note 1(c).

 

Futures Contracts                                   
Description    Type      Number of
Contracts
     Notional
Amount*
     Expiration
Date
     Value/Unrealized
Appreciation
(Depreciation)
 
Equity Contracts                                   

Bovespa Index

     Long        10      $ 204,298        10/13/22      $ (8,940

Mini Bovespa Index

     Long        2        8,172        10/13/22        (334
              

 

 

 

Total Futures Contracts

               $ (9,274
              

 

 

 

*As of period end.

 

           
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Semiannual Report

             255


FRANKLIN TEMPLETON ETF TRUST

 

Financial Highlights

 

Franklin FTSE Mexico ETF

 

   

Six Months Ended

September 30, 2022

(unaudited)

     Year Ended March 31,  
      2022      2021      2020      2019      2018a  
Per share operating performance
(for a share outstanding throughout the period)
                

Net asset value, beginning of period

  $ 27.49      $ 22.14      $ 14.35      $ 22.11      $ 24.98      $ 24.90  
 

 

 

 
Income from investment operationsb:                 

Net investment incomec

    0.64        0.66        0.33        0.64        0.51        0.12  

Net realized and unrealized gains (losses)

    (5.69      5.48        7.78        (7.73      (2.86      0.04  
 

 

 

 

Total from investment operations

    (5.05      6.14        8.11        (7.09      (2.35      0.16  
 

 

 

 

Less distributions from net investment income

    (0.34      (0.79      (0.32      (0.67      (0.52      (0.08
 

 

 

 

Net asset value, end of period

  $ 22.10      $ 27.49      $ 22.14      $ 14.35      $ 22.11      $ 24.98  
 

 

 

 

Total returnd

    (18.41)%        28.33%        56.94%        (33.13)%        (9.28)%        0.63%  
Ratios to average net assetse                 

Total expenses

    0.19%        0.19%        0.19%        0.19%        0.19%        0.19%  

Net investment income

    5.28%        2.73%        1.80%        2.93%        2.21%        1.18%  
Supplemental data                 

Net assets, end of period (000’s)

    $9,946        $12,372        $5,536        $2,871        $4,422        $2,498  

Portfolio turnover ratef

    8.34% g       22.39% g       18.32% g       19.32% g       10.31%        9.64%  

 

aFor the period November 3, 2017 (commencement of operations) to March 31, 2018.

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

cBased on average daily shares outstanding.

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

eRatios are annualized for periods less than one year.

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

 

gPortfolio turnover rate excluding cash creations was as follows:     8.34%        22.39%        18.32%        19.32%        

 

           
256             

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FRANKLIN TEMPLETON ETF TRUST

 

Schedule of Investments, September 30, 2022 (unaudited)

 

Franklin FTSE Mexico ETF

 

           Industry      Shares        Value  
    Common Stocks 99.9%                       
    Mexico 99.1%                       
 

Alfa SAB de CV, A

     Industrial Conglomerates        305,667        $ 194,885  
 

Alpek SAB de CV

     Chemicals        31,464          40,825  
 

America Movil SAB de CV

     Wireless Telecommunication Services        1,599,543          1,322,909  
 

Arca Continental SAB de CV

     Beverages        37,170          268,079  
a  

Banco del Bajio SA, 144A

     Banks        59,688          151,124  
 

Becle SAB de CV

     Beverages        45,396          80,531  
b  

Cemex SAB de CV

     Construction Materials        973,881          336,130  
 

Coca-Cola Femsa SAB de CV

     Beverages        44,262          259,023  
 

Concentradora Fibra Danhos SA de CV

     Equity Real Estate Investment Trusts (REITs      19,953          24,014  
b  

Controladora Vuela Cia de Aviacion SAB de CV, A

     Airlines        78,552          55,591  
 

El Puerto de Liverpool SAB de CV

     Multiline Retail        16,641          73,243  
 

Fibra Uno Administracion SA de CV

     Equity Real Estate Investment Trusts (REITs      242,064          249,558  
 

Fomento Economico Mexicano SAB de CV

     Beverages        110,412          693,085  
 

Gruma SAB de CV

     Food Products        16,407          157,400  
 

Grupo Aeroportuario del Centro Norte SAB de CV

     Transportation Infrastructure        22,941          144,577  
 

Grupo Aeroportuario del Pacifico SAB de CV

     Transportation Infrastructure        24,255          307,055  
 

Grupo Aeroportuario del Sureste SAB de CV

     Transportation Infrastructure        14,985          295,616  
 

Grupo Bimbo SAB de CV

     Food Products        129,114          455,712  
 

Grupo Carso SAB de CV, A1

     Industrial Conglomerates        37,962          139,255  
 

Grupo Comercial Chedraui SA de CV

     Food & Staples Retailing        38,844          114,962  
 

Grupo Elektra SAB de CV

     Banks        5,343          274,052  
 

Grupo Financiero Banorte SAB de CV

     Banks        166,122          1,068,402  
b  

Grupo Financiero Inbursa SAB de CV

     Banks        167,949          266,614  
 

Grupo Mexico SAB de CV, B

     Metals & Mining        188,577          638,859  
 

Grupo Televisa SAB

     Media        202,248          219,272  
 

Industrias Bachoco SAB de CV

     Food Products        13,554          52,484  
 

Industrias Penoles SAB de CV

     Metals & Mining        10,449          101,738  
 

Kimberly-Clark de Mexico SAB de CV, A

     Household Products        70,065          93,768  
 

Megacable Holdings SAB de CV

     Media        25,200          50,857  
 

Operadora De Sites Mexicanos SAB de CV, A-1

     Diversified Telecommunication Services        105,552          87,875  
 

Orbia Advance Corp. SAB de CV

     Chemicals        81,738          137,317  
 

Prologis Property Mexico SA de CV

     Equity Real Estate Investment Trusts (REITs      49,923          127,095  
 

Promotora y Operadora de Infraestructura SAB de CV

     Transportation Infrastructure        18,423          125,670  
 

Qualitas Controladora SAB de CV

     Insurance        14,193          58,621  
 

Regional SAB de CV

     Banks        19,926          112,505  
b  

Sitios Latinoamerica SAB de CV

     Construction & Engineering        79,977          35,758  
 

Wal-Mart de Mexico SAB de CV, V

     Food & Staples Retailing        295,002          1,039,164  
            

 

 

 
               9,853,625  
            

 

 

 
    United States 0.8%                       
 

GCC SAB de CV

     Construction Materials        13,743          82,496  
            

 

 

 
 

Total Investments
(Cost $10,126,558) 99.9%

             9,936,121  
 

Other Assets, less Liabilities 0.1%

             9,737  
            

 

 

 
 

Net Assets 100.0%

           $ 9,945,858  
            

 

 

 

aSecurity was purchased pursuant to Rule 144A under the Securities Act of 1933 and may be sold in transactions exempt from registration only to qualified institutional buyers or in a public offering registered under the Securities Act of 1933. At September 30, 2022, the value of was $694,093, representing 7.0% of net assets.

bNon-income producing.

 

           
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Semiannual Report

             257


FRANKLIN TEMPLETON ETF TRUST

 

Financial Highlights

 

Franklin FTSE Russia ETF

 

   

Six Months Ended

September 30, 2022

(unaudited)

     Year Ended March 31,  
      2022      2021      2020      2019      2018a  
Per share operating performance
(for a share outstanding throughout the period)
                

Net asset value, beginning of period

  $ b     $ 26.98      $ 18.91      $ 23.37      $ 24.24      $ 23.90  
 

 

 

 
Income from investment operationsc:                 

Net investment income (loss)d

           1.68        1.41        1.73        1.03        (— )b 

Net realized and unrealized gains (losses)

    0.01 e       (27.28      8.34        (4.44      (1.26      0.34  
 

 

 

 

Total from investment operations

    0.01 e       (25.60      9.75        (2.71      (0.23      0.34  
 

 

 

 

Less distributions from net investment income

           (1.38      (1.68      (1.75      (0.64       
 

 

 

 

Net asset value, end of period

  $ 0.01 e     $      $ 26.98      $ 18.91      $ 23.37      $ 24.24  
 

 

 

 

Total returnf

    72.50% g       (100.00)%        52.27%        (13.90)%        (0.63)%        1.42%  
Ratios to average net assetsh                 

Expenses before waiver and payments by affiliates

    —%        0.19%        0.19%        0.19%        0.19%        0.19%  

Expenses net of waiver and payments by affiliates

    —%        0.19%        0.19%        0.19%        0.19%        0.19%  

Net investment income (loss)

    104.56% g       6.19%        6.02%        6.49%        4.57%        (0.13)%  
Supplemental data                 

Net assets, end of period (000’s)

    $5        $3        $10,794        $13,240        $11,683        $2,424  

Portfolio turnover ratei

    —% j       20.45% j       18.82% j       15.74% j       31.57%        7.58%  

 

aFor the period February 6, 2018 (commencement of operations) to March 31, 2018.

bAmount rounds to less than $0.01 per share.

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

dBased on average daily shares outstanding.

eActual amount less than $0.01 per share. Amount shown reflects effect of rounding.

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

gThe amounts shown reflect the Fund’s NAV per share increasing from $0.003378 as of March 31, 2022 to $0.005827 as of September 30, 2022.

hRatios are annualized for periods less than one year.

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

 

jPortfolio turnover rate excluding cash creations was as follows:     20.45%       18.82%       15.74%        

 

           
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FRANKLIN TEMPLETON ETF TRUST

 

Schedule of Investments, September 30, 2022 (unaudited)

 

Franklin FTSE Russia ETF

 

           Industry        Shares        Value  
    Common Stocks 0.0%                         
a   Russia 0.0%                         
b  

Aeroflot Russian Airlines PJSC

     Airlines          174,496        $  
 

Alrosa PJSC

     Metals & Mining          361,232           
b  

Credit Bank of Moscow PJSC

     Banks          2,127,840           
 

Federal Grid Co. Unified Energy System PJSC

     Electric Utilities          45,533,568           
 

Gazprom PJSC

     Oil, Gas & Consumable Fuels          981,872           
 

Inter RAO UES PJSC

     Electric Utilities          6,229,280           
 

LUKOIL PJSC

     Oil, Gas & Consumable Fuels          36,048           
 

M.Video PJSC

     Specialty Retail          8,000           
 

Magnit PJSC

     Food & Staples Retailing          8,112           
 

Magnitogorsk Iron & Steel Works PJSC

     Metals & Mining          370,640           
 

MMC Norilsk Nickel PJSC

     Metals & Mining          2,888           
 

Mobile TeleSystems PJSC

     Wireless Telecommunication Services          147,584           
 

Moscow Exchange MICEX

     Capital Markets          253,248           
 

Mosenergo PJSC

     Electric Utilities          1,418,704           
 

Novatek PJSC

     Oil, Gas & Consumable Fuels          47,472           
 

Novolipetsk Steel PJSC

     Metals & Mining          200,944           
 

PhosAgro PJSC

     Chemicals          6,208           
 

Polyus PJSC

     Metals & Mining          3,504           
 

Raspadskaya OJSC

     Metals & Mining          10,720           
 

Rosneft Oil Co. PJSC

     Oil, Gas & Consumable Fuels          92,320           
 

Rosseti PJS

     Electric Utilities          5,157,472           
 

Rostelecom PJSC

     Diversified Telecommunication Services          165,056           
 

RusHydro PJSC

     Electric Utilities          20,149,712           
 

Sberbank of Russia PJSC

     Banks          959,968           
c  

Segezha Group PJSC, 144A

     Paper & Forest Products          666,096           
 

Severstal PAO

     Metals & Mining          27,744           
 

Sistema PJSFC

     Wireless Telecommunication Services          499,664           
 

Sovcomflot OAOSovcomflot OAO

     Oil, Gas & Consumable Fuels          72,128           
 

Surgutneftegas PJSC

     Oil, Gas & Consumable Fuels          634,480           
 

Tatneft PAO

     Oil, Gas & Consumable Fuels          105,552           
 

Unipro PJSC

     Independent Power Producers & Energy Traders          1,811,376           
b  

United Co. RUSAL International PJSC

     Metals & Mining          447,600           
 

VTB Bank PJSC

     Banks          886,353,216           
              

 

 

 
 

Total Common Stocks
(Cost $21,363,101)

                
              

 

 

 
    Preferred Stocks 0.0%                         
a   Russia 0.0%                         
d  

Bashneft PJSC, pfd.

     Oil, Gas & Consumable Fuels          3,392           
d  

Surgutneftegas PJSC, pfd.

     Oil, Gas & Consumable Fuels          682,080           
d  

Tatneft PJSC, pfd.

     Oil, Gas & Consumable Fuels          10,416           
d  

Transneft PJSC, pfd.

     Oil, Gas & Consumable Fuels          276           
              

 

 

 
 

Total Preferred Stocks
(Cost $1,113,686)

     .                
              

 

 

 
 

Total Investments
(Cost $22,476,787) 0.0%

                
 

Other Assets, less
Liabilities 100.0%

               4,664  
              

 

 

 
 

Net Assets 100.0%

             $ 4,664  
              

 

 

 

Rounds to less than 0.1% of net assets.

aFair valued using significant unobservable inputs. See Note 9 regarding fair value measurements.

bNon-income producing.

cSecurity was purchased pursuant to Rule 144A under the Securities Act of 1933 and may be sold in transactions exempt from registration only to qualified institutional buyers or in a public offering registered under the Securities Act of 1933. At September 30, 2022, the value of was $0, representing 0.0% of net assets.

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

See Note 8 regarding other derivative information.

See Abbreviations on page 332.

 

           
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             259


FRANKLIN TEMPLETON ETF TRUST

 

Financial Highlights

 

Franklin FTSE Saudi Arabia ETF

 

   

Six Months Ended
September 30, 2022

(unaudited)

     Year Ended March 31,  
      2022      2021      2020      2019a  
Per share operating performance
(for a share outstanding throughout the period)
             

Net asset value, beginning of period

  $ 41.30      $ 30.33      $ 20.15      $ 27.89      $ 24.71  
 

 

 

 
Income from investment operationsb:              

Net investment incomec

    0.61        0.62        0.52        0.89        0.11  

Net realized and unrealized gains (losses)

    (5.19      11.03        10.23        (7.80      3.07  
 

 

 

 

Total from investment operations

    (4.58      11.65        10.75        (6.91      3.18  
 

 

 

 

Less distributions from net investment income

    (0.33      (0.68      (0.57      (0.83       
 

 

 

 

Net asset value, end of period

  $ 36.39      $ 41.30      $ 30.33      $ 20.15      $ 27.89  
 

 

 

 

Total returnd

    (11.10)%        38.99%        54.12%        (25.51)%        12.87%  
Ratios to average net assetse              

Total expenses

    0.39%        0.39%        0.39%        0.39%        0.39%  

Net investment income

    3.09%        1.77%        2.11%        3.46%        0.93%  
Supplemental data              

Net assets, end of period (000’s)

    $5,458        $4,130        $3,033        $2,015        $2,789  

Portfolio turnover ratef

    2.48% g       15.51% g       16.74% g       32.37% g       12.41%  

 

aFor the period October 9, 2018 (commencement of operations) to March 31, 2019.

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

cBased on average daily shares outstanding.

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

eRatios are annualized for periods less than one year.

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

 

gPortfolio turnover rate excluding cash creations was as follows:     2.48%        15.51%        16.74%        32.37%     

 

           
260             

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FRANKLIN TEMPLETON ETF TRUST

 

Schedule of Investments, September 30, 2022 (unaudited)

 

Franklin FTSE Saudi Arabia ETF

 

           Industry        Shares        Value  
    Common Stocks 99.8%                         
    Saudi Arabia 99.8%                         
 

Abdullah Al Othaim Markets Co.

     Food & Staples Retailing          816        $ 26,802  
 

ACWA Power Co.

     Independent Power Producers & Energy Traders          2,457          109,868  
 

Advanced Petrochemical Co.

     Chemicals          2,355          27,988  
a  

Al Rajhi Bank

     Banks          34,788          752,799  
 

Alinma Bank

     Banks          17,742          171,186  
 

Almarai Co. JSC

     Food Products          4,650          65,845  
 

Arab National Bank

     Banks          12,282          100,525  
 

Arabian Centres Co. Ltd.

     Real Estate Management & Development          2,952          15,243  
 

Arabian Internet & Communications Services Co.

     IT Services          465          29,457  
a  

Bank AlBilad

     Banks          9,042          114,319  
 

Bank Al-Jazira

     Banks          7,413          44,632  
 

Banque Saudi Fransi

     Banks          10,845          121,238  
 

BinDawood Holding Co.

     Food & Staples Retailing          537          9,719  
 

Bupa Arabia for Cooperative Insurance Co.

     Insurance          1,056          47,333  
a  

Co. for Cooperative Insurance

     Insurance          1,137          24,362  
 

Dallah Healthcare Co.

     Health Care Providers & Services          699          29,396  
a  

Dar Al Arkan Real Estate Development Co.

     Real Estate Management & Development          9,768          41,339  
 

Dr Sulaiman Al Habib Medical Services Group Co.

     Health Care Providers & Services          1,692          93,675  
 

Elm Co.

     IT Services          471          39,716  
a  

Emaar Economic City

     Real Estate Management & Development          8,133          21,301  
 

Etihad Etisalat Co.

     Wireless Telecommunication Services          6,963          65,979  
 

Jarir Marketing Co.

     Specialty Retail          1,086          48,273  
a  

Mobile Telecommunications Co. Saudi Arabia

     Wireless Telecommunication Services          8,151          24,863  
 

Mouwasat Medical Services Co.

     Health Care Providers & Services          876          46,167  
 

Nahdi Medical Co.

     Food & Staples Retailing          723          36,525  
a  

National Industrialization Co.

     Chemicals          6,021          21,860  
 

Qassim Cement Co.

     Construction Materials          810          16,687  
a  

Rabigh Refining & Petrochemical Co.

     Oil, Gas & Consumable Fuels          7,719          28,189  
 

Riyad Bank

     Banks          25,425          214,864  
 

SABIC Agri-Nutrients Co.

     Chemicals          4,170          175,369  
 

Sahara International Petrochemical Co.

     Chemicals          6,630          73,853  
a  

Saudi Airlines Catering Co.

     Commercial Services & Supplies          738          14,025  
a  

Saudi Arabian Mining Co.

     Metals & Mining          13,830          256,207  
b  

Saudi Arabian Oil Co., 144A

     Oil, Gas & Consumable Fuels          49,857          475,745  
 

Saudi Basic Industries Corp.

     Chemicals          16,056          379,498  
 

Saudi British Bank

     Banks          17,811          185,600  
 

Saudi Cement Co.

     Construction Materials          1,392          19,340  
 

Saudi Electricity Co.

     Electric Utilities          14,421          94,195  
a  

Saudi Ground Services Co.

     Transportation Infrastructure          1,641          11,291  
 

Saudi Industrial Investment Group

     Chemicals          6,825          41,528  
 

Saudi Investment Bank

     Banks          9,042          41,107  
a  

Saudi Kayan Petrochemical Co.

     Chemicals          13,563          49,602  
 

Saudi National Bank

     Banks          38,610          648,467  
a  

Saudi Research & Media Group

     Media          594          30,072  
 

Saudi Tadawul Group Holding Co.

     Capital Markets          663          35,541  
 

Saudi Telecom Co.

     Diversified Telecommunication Services          32,148          336,711  
 

Saudia Dairy & Foodstuff Co.

     Food Products          282          14,562  
 

Savola Group

     Food Products          4,830          36,447  
a  

Seera Group Holding

     Hotels, Restaurants & Leisure          2,700          13,884  
 

Southern Province Cement Co.

     Construction Materials          1,275          18,461  
 

United Electronics Co.

     Specialty Retail          540          15,810  
a  

Yamama Cement Co.

     Construction Materials          1,824          13,958  
 

Yanbu Cement Co.

     Construction Materials          1,419          14,126  

 

           
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FRANKLIN TEMPLETON ETF TRUST

SCHEDULE OF INVESTMENTS (UNAUDITED)

 

Franklin FTSE Saudi Arabia ETF (continued)

 

           Industry        Shares        Value  
    Common Stocks (continued)                         
    Saudi Arabia (continued)                         
 

Yanbu National Petrochemical Co.

     Chemicals          5,085        $ 62,666  
              

 

 

 
 

Total Investments (Cost $4,370,666) 99.8%

               5,448,215  
 

Other Assets, less Liabilities 0.2%

               9,793  
              

 

 

 
 

Net Assets 100.0%

             $ 5,458,008  
              

 

 

 

 

 

 

aNon-income producing.

bSecurity was purchased pursuant to Rule 144A under the Securities Act of 1933 and may be sold in transactions exempt from registration only to qualified institutional buyers or in a public offering registered under the Securities Act of 1933. At September 30, 2022, the value of was $475,745, representing 8.7% of net assets.

 

           
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FRANKLIN TEMPLETON ETF TRUST

 

Financial Highlights

 

Franklin FTSE South Africa ETF

 

   

Six Months Ended

September 30, 2022

(unaudited)

     Year Ended March 31,  
      2022      2021      2020      2019a  
Per share operating performance
(for a share outstanding throughout the period)

 

Net asset value, beginning of period

  $ 29.79      $ 26.22      $ 14.81      $ 26.62      $ 24.42  
 

 

 

 

Income from investment operationsb:

             

Net investment incomec

    0.62        0.94        1.03        2.65        0.22  

Net realized and unrealized gains (losses)

    (10.14      3.35        11.33        (11.76      2.04  
 

 

 

 

Total from investment operations

    (9.52      4.29        12.36        (9.11      2.26  
 

 

 

 

Less distributions from net investment income

    (0.60      (0.72      (0.95      (2.70      (0.06
 

 

 

 

Net asset value, end of period

  $ 19.67      $ 29.79      $ 26.22      $ 14.81      $ 26.62  
 

 

 

 

Total returnd

    (32.23)%        16.82%        85.24%        (38.46)%        9.26%  
Ratios to average net assetse

 

Total expenses

    0.19%        0.19%        0.19%        0.19%        0.19%  

Net investment income

    5.15%        3.56%        4.94%        10.42%        1.75%  
Supplemental data

 

Net assets, end of period (000’s)

    $2,950        $5,958        $2,622        $1,481        $2,662  

Portfolio turnover ratef

    4.29% g       13.19% h       11.08% h       21.44% h       7.12%  

aFor the period October 10, 2018 (commencement of operations) to March 31, 2019.

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

cBased on average daily shares outstanding.

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

eRatios are annualized for periods less than one year.

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

 

hPortfolio turnover rate excluding cash creations was as follows:     4.29%        13.19%        11.08%        21.44%     

 

           
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FRANKLIN TEMPLETON ETF TRUST

 

Schedule of Investments, September 30, 2022 (unaudited)

 

Franklin FTSE South Africa ETF

 

      Industry      Shares        Value  
    Common Stocks 100.0%  
    Luxembourg 0.9%  
 

Reinet Investments SCA

     Capital Markets        1,869        $ 27,759  
            

 

 

 
    Romania 1.0%  
 

NEPI Rockcastle PLC

     Real Estate Management & Development        6,393          28,834  
            

 

 

 
    South Africa 98.1%  
 

Absa Group Ltd.

     Banks        11,445          112,479  
 

African Rainbow Minerals Ltd.

     Metals & Mining        1,458          19,836  
 

Anglo American Platinum Ltd.

     Metals & Mining        774          55,480  
 

AngloGold Ashanti Ltd.

     Metals & Mining        5,766          80,100  
 

Aspen Pharmacare Holdings Ltd.

     Pharmaceuticals        5,106          38,149  
 

AVI Ltd.

     Food Products        4,527          18,337  
 

Bid Corp. Ltd.

     Food & Staples Retailing        4,584          71,115  
 

Bidvest Group Ltd.

     Industrial Conglomerates        4,677          51,146  
 

Capitec Bank Holdings Ltd.

     Banks        1,170          101,099  
 

Clicks Group Ltd.

     Food & Staples Retailing        3,363          53,415  
a,b  

Dis-Chem Pharmacies Ltd., 144A, Reg S

     Food & Staples Retailing        5,121          9,075  
c  

Discovery Ltd.

     Insurance        7,239          42,264  
c  

Distell Group Holdings Ltd.

     Beverages        1,092          10,478  
 

Exxaro Resources Ltd.

     Oil, Gas & Consumable Fuels        3,324          37,439  
 

FirstRand Ltd.

     Diversified Financial Services        68,394          231,145  
 

Foschini Group Ltd.

     Specialty Retail        4,425          28,962  
 

Gold Fields Ltd.

     Metals & Mining        12,102          99,287  
 

Growthpoint Properties Ltd.

     Equity Real Estate Investment Trusts (REITs      46,776          30,685  
 

Harmony Gold Mining Co. Ltd.

     Metals & Mining        7,371          17,521  
 

Impala Platinum Holdings Ltd.

     Metals & Mining        11,202          105,753  
 

Investec Ltd.

     Capital Markets        3,945          15,725  
 

Kumba Iron Ore Ltd.

     Metals & Mining        747          16,120  
 

Life Healthcare Group Holdings Ltd.

     Health Care Providers & Services        19,035          18,270  
 

Momentum Metropolitan Holdings

     Insurance        17,754          16,586  
 

Mr Price Group Ltd.

     Specialty Retail        3,537          34,005  
 

MTN Group Ltd.

     Wireless Telecommunication Services        24,810          165,487  
 

MultiChoice Group

     Media        4,743          30,518  
 

Naspers Ltd., N

     Internet & Direct Marketing Retail        2,928          368,725  
 

Nedbank Group Ltd.

     Banks        5,778          64,215  
 

Netcare Ltd.

     Health Care Providers & Services        19,836          15,143  
c  

Northam Platinum Ltd.

     Metals & Mining        5,097          44,477  
 

Old Mutual Ltd.

     Insurance        62,250          33,874  
a,b  

Pepkor Holdings Ltd., 144A, Reg S

     Specialty Retail        24,774          28,630  
 

Pick ‘N Pay Stores Ltd.

     Food & Staples Retailing        4,773          14,734  
 

Rand Merchant Investment Holdings Ltd.

     Insurance        10,377          16,906  
 

Redefine Properties Ltd.

     Equity Real Estate Investment Trusts (REITs      91,011          17,977  
 

Remgro Ltd.

     Diversified Financial Services        7,008          51,763  
 

Resilient REIT Ltd.

     Equity Real Estate Investment Trusts (REITs      4,194          11,187  
 

Royal Bafokeng Platinum Ltd.

     Metals & Mining        1,035          8,266  
 

Sanlam Ltd.

     Insurance        24,189          69,434  
 

Santam Ltd.

     Insurance        561          7,805  
c  

Sappi Ltd.

     Paper & Forest Products        7,836          19,193  
c  

Sasol Ltd.

     Chemicals        7,686          122,198  
 

Shoprite Holdings Ltd.

     Food & Staples Retailing        6,687          80,735  
 

Sibanye Stillwater Ltd.

     Metals & Mining        38,598          90,221  
 

SPAR Group Ltd.

     Food & Staples Retailing        2,649          21,130  
 

Standard Bank Group Ltd.

     Banks        18,309          146,696  
 

Tiger Brands Ltd.

     Food Products        2,169          20,449  
 

Transaction Capital Ltd.

     Consumer Finance        7,692          15,733  
 

Truworths International Ltd.

     Specialty Retail        5,244          14,545  

 

           
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FRANKLIN TEMPLETON ETF TRUST

SCHEDULE OF INVESTMENTS (UNAUDITED)

 

Franklin FTSE South Africa ETF (continued)

 

      Industry        Shares        Value  
    Common Stocks (continued)  
    South Africa (continued)  
 

Vodacom Group Ltd.

     Wireless Telecommunication Services          8,211        $ 55,774  
 

Woolworths Holdings Ltd.

     Multiline Retail          12,876          43,752  
              

 

 

 
                 2,894,038  
              

 

 

 
 

Total Investments
(Cost $3,808,391) 100.0%

               2,950,631  
 

Other Assets, less Liabilities 0.0%

               (377
              

 

 

 
 

Net Assets 100.0%

             $ 2,950,254  
              

 

 

 

 

Rounds to less than 0.1% of net assets.

aSecurity was purchased pursuant to Rule 144A under the Securities Act of 1933 and may be sold in transactions exempt from registration only to qualified institutional buyers or in a public offering registered under the Securities Act of 1933. At September 30, 2022, the value of was $37,705, representing 1.3% of net assets.

bSecurity was purchased pursuant to Regulation S under the Securities Act of 1933, which exempts from registration securities offered and sold outside of the United States. Such a security cannot be sold in the United States without either an effective registration statement filed pursuant to the Securities Act of 1933, or pursuant to an exemption from registration. At September 30, 2022, the value of was $37,705, representing 1.3% of net assets.

cNon-income producing.

See Abbreviations on page 332.

 

           
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             265


FRANKLIN TEMPLETON ETF TRUST

 

Financial Highlights

 

Franklin FTSE South Korea ETF

 

   

Six Months Ended
September 30, 2022

(unaudited)

     Year Ended March 31,  
      2022      2021      2020      2019      2018a  
Per share operating performance
(for a share outstanding throughout the period)

 

Net asset value, beginning of period

  $ 25.57      $ 31.48      $ 16.52      $ 21.19      $ 25.98      $ 25.75  
 

 

 

 

Income from investment operationsb:

                

Net investment incomec

    0.09        0.55        0.54        0.36        0.40        0.10  

Net realized and unrealized gains (losses)

    (8.70      (5.87      14.72        (4.58      (4.81      0.40  
 

 

 

 

Total from investment operations

    (8.61      (5.32      15.26        (4.22      (4.41      0.50  
 

 

 

 

Less distributions from net investment income

    (0.07      (0.59      (0.30      (0.45      (0.38      (0.27
 

 

 

 

Net asset value, end of period

  $ 16.89      $ 25.57      $ 31.48      $ 16.52      $ 21.19      $ 25.98  
 

 

 

 

Total returnd

    (33.72)%        (17.15)%        92.55%        (20.24)%        (16.92)%        1.95%  
Ratios to average net assetse                 

Expenses before waiver and payments by affiliates

    0.09%        0.09%        0.09%        0.09%        0.09%        0.09%  

Expenses net of waiver and payments by affiliates

    0.09%        0.09%        0.09%        0.09%        0.09%        0.09%  

Net investment income

    0.85%        1.86%        2.07%        1.78%        1.74%        0.94%  
Supplemental data                 

Net assets, end of period (000’s)

    $43,913        $61,361        $62,966        $11,562        $16,948        $25,981  

Portfolio turnover ratef

    4.38% g       27.38% g       8.65% g       21.72% g       5.21%        3.85%  

aFor the period November 2, 2017 (commencement of operations) to March 31, 2018.

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

cBased on average daily shares outstanding.

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

eRatios are annualized for periods less than one year.

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

 

gPortfolio turnover rate excluding cash creations was as follows:     4.38%       10.53%       8.65%       8.02%      

 

           
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FRANKLIN TEMPLETON ETF TRUST

 

Schedule of Investments, September 30, 2022 (unaudited)

 

Franklin FTSE South Korea ETF

 

           Industry        Shares        Value  
    Common Stocks 95.8%                         
    South Korea 95.8%                         
a  

Alteogen Inc., A

     Biotechnology          2,262        $ 71,700  
 

Amorepacific Corp., H

     Personal Products          2,288          163,120  
 

AMOREPACIFIC Group, A

     Personal Products          2,288          42,939  
 

BGF retail Co. Ltd.

     Food & Staples Retailing          494          57,145  
 

BNK Financial Group Inc., H

     Banks          22,490          94,632  
 

Celltrion Healthcare Co. Ltd., A

     Health Care Providers & Services          7,540          357,316  
 

Celltrion Inc., A

     Biotechnology          8,476          1,039,727  
a  

Celltrion Pharm Inc., A

     Pharmaceuticals          1,534          68,728  
 

Cheil Worldwide Inc., A

     Media          5,538          87,868  
 

CJ CheilJedang Corp., A

     Food Products          624          179,258  
 

CJ Corp., A

     Industrial Conglomerates          988          47,995  
 

CJ ENM Co. Ltd., A

     Internet & Catalog Retail          780          41,489  
a  

CJ Logistics Corp., A

     Road & Rail          650          41,071  
 

Coway Co. Ltd.

     Household Durables          4,446          167,498  
a  

Daewoo Engineering & Construction Co. Ltd., A

     Construction & Engineering          14,170          40,805  
a  

Daewoo Shipbuilding & Marine Engineering Co. Ltd., A

     Machinery          3,822          50,623  
 

DB Insurance Co. Ltd., A

     Insurance          3,562          137,431  
 

DGB Financial Group Inc., A

     Banks          12,298          59,913  
 

DL E&C Co. Ltd., A

     Construction & Engineering          2,418          57,970  
 

DL Holdings Co. Ltd., A

     Construction & Engineering          936          37,487  
 

Dongsuh Cos. Inc., A

     Food & Staples Retailing          2,470          35,910  
 

Doosan Bobcat Inc., A

     Machinery          1,924          38,327  
a  

Doosan Enerbility Co. Ltd., H

     Electrical Equipment          33,150          330,179  
 

Ecopro BM Co. Ltd.

     Electrical Equipment          3,120          192,124  
 

E-MART Inc., A

     Food & Staples Retailing          1,560          91,482  
 

F&F Co. Ltd. / New

     Textiles, Apparel & Luxury Goods          1,248          119,941  
 

Fila Holdings Corp.

     Textiles, Apparel & Luxury Goods          4,108          89,872  
 

Green Cross Corp.

     Biotechnology          416          35,910  
 

GS Engineering & Construction Corp.

     Construction & Engineering          5,018          79,091  
 

GS Holdings Corp.

     Oil, Gas & Consumable Fuels          4,082          118,976  
 

GS Retail Co. Ltd.

     Food & Staples Retailing          3,120          55,827  
 

Hana Financial Group Inc.

     Banks          22,776          564,346  
a  

Hanjin Kal Corp.

     Airlines          1,690          44,119  
 

Hankook Tire & Technology Co. Ltd.

     Auto Components          5,772          142,212  
 

Hanmi Pharm Co. Ltd.

     Pharmaceuticals          572          91,555  
 

Hanmi Science Co. Ltd.

     Pharmaceuticals          1,144          25,228  
 

Hanon Systems

     Auto Components          12,896          74,995  
 

Hanssem Co. Ltd.

     Household Durables          754          22,530  
 

Hanwha Aerospace Co. Ltd.

     Aerospace & Defense          2,756          118,469  
 

Hanwha Corp.

     Industrial Conglomerates          3,380          57,763  
 

Hanwha Corp.

     Industrial Conglomerates          1,820          17,809  
a  

Hanwha Life Insurance Co. Ltd.

     Insurance          22,022          32,170  
a  

Hanwha Solutions Corp.

     Chemicals          9,048          298,501  
 

HD Hyundai Co. Ltd.

     Machinery          3,952          149,440  
 

Hite Jinro Co. Ltd.

     Beverages          2,444          45,269  
 

HL Mando Co. Ltd.

     Auto Components          2,626          81,403  
a  

HLB Inc.

     Leisure Products          7,020          210,252  
 

HMM Co. Ltd.

     Marine          23,036          297,872  
 

Hotel Shilla Co. Ltd.

     Specialty Retail          2,470          124,130  
a  

HYBE Co. Ltd.

     Entertainment          1,456          137,387  
 

Hyundai Department Store Co. Ltd.

     Multiline Retail          1,170          44,487  
a  

Hyundai Doosan Infracore Co. Ltd.

     Machinery          10,920          33,965  
 

Hyundai Engineering & Construction Co. Ltd.

     Construction & Engineering          5,720          149,927  
 

Hyundai Glovis Co. Ltd.

     Air Freight & Logistics          1,456          165,374  
a  

Hyundai Heavy Industries Co. Ltd.

     Machinery          1,170          94,045  
 

Hyundai Marine & Fire Insurance Co. Ltd.

     Insurance          4,784          97,974  
a  

Hyundai Mipo Dockyard Co. Ltd.

     Machinery          1,586          114,180  

 

           
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FRANKLIN TEMPLETON ETF TRUST

SCHEDULE OF INVESTMENTS (UNAUDITED)

 

Franklin FTSE South Korea ETF (continued)

 

           Industry        Shares        Value  
    Common Stocks (continued)                         
    South Korea (continued)                         
 

Hyundai Mobis Co. Ltd.

     Auto Components          4,862        $ 649,082  
 

Hyundai Motor Co.

     Automobiles          10,998          1,356,781  
 

Hyundai Steel Co.

     Metals & Mining          5,876          115,409  
 

Hyundai Wia Corp.

     Auto Components          1,222          51,333  
 

Iljin Materials Co. Ltd.

     Electronic Equipment, Instruments & Components          1,352          48,006  
 

Industrial Bank of Korea

     Banks          19,812          131,831  
 

Kakao Corp.

     Interactive Media & Services          23,920          954,660  
a  

Kakao Games Corp.

     Entertainment          2,288          68,207  
a  

KakaoBank Corp.

     Banks          13,390          187,649  
a  

Kakaopay Corp.

     IT Services          1,690          57,999  
a  

Kangwon Land Inc.

     Hotels, Restaurants & Leisure          8,346          137,379  
 

KB Financial Group Inc.

     Banks          30,706          937,899  
 

KCC Corp.

     Building Products          312          50,484  
 

KEPCO Plant Service & Engineering Co. Ltd.

     Commercial Services & Supplies          1,690          40,989  
 

Kia Corp.

     Automobiles          20,358          1,023,094  
 

Korea Aerospace Industries Ltd.

     Aerospace & Defense          5,538          187,542  
a  

Korea Electric Power Corp.

     Electric Utilities          20,176          283,454  
 

Korea Gas Corp.

     Gas Utilities          2,080          49,140  
 

Korea Investment Holdings Co. Ltd.

     Capital Markets          3,042          100,996  
a  

Korea Shipbuilding & Offshore Engineering Co. Ltd.

     Machinery          3,406          173,550  
 

Korea Zinc Co. Ltd.

     Metals & Mining          780          324,387  
a  

Korean Air Lines Co. Ltd.

     Airlines          13,806          213,261  
a  

Krafton Inc.

     Entertainment          2,314          339,652  
 

KT&G Corp.

     Tobacco          8,476          513,051  
 

Kumho Petrochemical Co. Ltd.

     Chemicals          1,378          111,246  
a  

L&F Co. Ltd.

     Electronic Equipment, Instruments & Components          1,768          219,594  
 

LG Chem Ltd.

     Chemicals          3,692          1,383,177  
 

LG Corp.

     Industrial Conglomerates          7,020          363,095  
 

LG Display Co. Ltd.

     Electronic Equipment, Instruments & Components          17,654          148,073  
 

LG Electronics Inc.

     Household Durables          8,528          468,512  
a  

LG Energy Solution Ltd.

     Electrical Equipment          2,730          813,829  
 

LG H&H Co. Ltd.

     Personal Products          702          310,593  
 

LG Innotek Co. Ltd.

     Electronic Equipment, Instruments & Components          1,118          213,723  
 

LG Uplus Corp.

     Diversified Telecommunication Services          16,510          124,053  
 

Lotte Chemical Corp.

     Chemicals          1,170          117,761  
 

Lotte Chilsung Beverage Co. Ltd.

     Beverages          234          26,087  
 

Lotte Corp.

     Industrial Conglomerates          2,106          56,378  
 

LOTTE Fine Chemical Co. Ltd.

     Chemicals          1,404          55,249  
 

Lotte Shopping Co. Ltd.

     Multiline Retail          910          55,019  
 

LS Corp.

     Electrical Equipment          1,378          54,611  
 

Meritz Financial Group Inc.

     Diversified Financial Services          2,080          30,312  
 

Mirae Asset Securities Co. Ltd.

     Capital Markets          21,112          88,243  
 

Mirae Asset Securities Co. Ltd.

     Capital Markets          11,024          28,163  
 

NAVER Corp.

     Interactive Media & Services          11,388          1,540,210  
 

NCSoft Corp.

     Entertainment          1,248          301,816  
b  

Netmarble Corp., 144A

     Software          1,378          49,410  
 

NH Investment & Securities Co. Ltd.

     Capital Markets          10,868          68,291  
a  

NHN Corp.

     Software          1,378          20,708  
 

NongShim Co. Ltd.

     Food Products          260          54,155  
 

OCI Co. Ltd.

     Chemicals          1,404          89,302  
 

Orion Corp/Republic of Korea

     Food Products          1,690          121,668  
 

Ottogi Corp.

     Food Products          104          33,511  
 

Pan Ocean Co. Ltd.

     Marine          15,054          47,350  
a  

Paradise Co. Ltd.

     Hotels, Restaurants & Leisure          3,640          39,181  
a  

Pearl Abyss Corp.

     Entertainment          2,470          80,538  
 

POSCO Chemical Co. Ltd.

     Construction Materials          2,158          226,253  

 

           
268             

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FRANKLIN TEMPLETON ETF TRUST

SCHEDULE OF INVESTMENTS (UNAUDITED)

 

Franklin FTSE South Korea ETF (continued)

 

           Industry        Shares        Value  
    Common Stocks (continued)                         
    South Korea (continued)                         
 

POSCO Holdings Inc.

     Metals & Mining          5,902        $ 870,428  
 

Posco International Corp.

     Trading Companies & Distributors          3,952          57,732  
 

S-1 Corp.

     Commercial Services & Supplies          1,534          62,081  
a,b  

Samsung Biologics Co. Ltd., 144A

     Life Sciences Tools & Services          1,456          821,271  
 

Samsung C&T Corp.

     Industrial Conglomerates          6,630          479,629  
 

Samsung Card Co. Ltd.

     Consumer Finance          2,418          51,040  
 

Samsung Electro-Mechanics Co. Ltd.

     Electronic Equipment, Instruments & Components          4,394          343,977  
 

Samsung Electronics Co. Ltd.

     Technology Hardware, Storage & Peripherals          214,448          7,959,173  
a  

Samsung Engineering Co. Ltd.

     Construction & Engineering          12,402          197,208  
 

Samsung Fire & Marine Insurance Co. Ltd.

     Insurance          2,600          334,382  
a  

Samsung Heavy Industries Co. Ltd.

     Machinery          48,620          180,452  
 

Samsung Life Insurance Co. Ltd.

     Insurance          5,876          256,282  
 

Samsung SDI Co. Ltd.

     Electronic Equipment, Instruments & Components          4,160          1,587,587  
 

Samsung SDS Co. Ltd.

     IT Services          2,886          231,977  
 

Samsung Securities Co. Ltd.

     Capital Markets          4,914          105,616  
 

SD Biosensor Inc.

     Health Care Equipment & Supplies          2,678          49,790  
 

Seegene Inc.

     Biotechnology          2,288          42,859  
a  

Shin Poong Pharmaceutical Co. Ltd.

     Pharmaceuticals          2,652          36,887  
 

Shinhan Financial Group Co. Ltd.

     Banks          39,390          922,321  
 

Shinsegae Inc.

     Multiline Retail          546          88,157  
a,c  

SillaJen Inc.

     Biotechnology          1,616           
a  

SK Biopharmaceuticals Co. Ltd.

     Pharmaceuticals          1,950          77,553  
a  

SK Bioscience Co. Ltd.

     Biotechnology          1,586          89,016  
 

SK Chemicals Co. Ltd.

     Chemicals          1,066          67,803  
 

SK Hynix Inc.

     Semiconductors & Semiconductor Equipment          42,770          2,484,229  
a,b  

SK IE Technology Co. Ltd., 144A

     Chemicals          2,028          74,276  
 

SK Inc.

     Industrial Conglomerates          2,860          383,812  
a  

SK Innovation Co. Ltd.

     Oil, Gas & Consumable Fuels          4,108          412,035  
 

SK Networks Co. Ltd.

     Trading Companies & Distributors          10,686          29,578  
a  

SK Square Co. Ltd.

     Semiconductors & Semiconductor Equipment          7,800          197,085  
 

SK Telecom Co. Ltd.

     Wireless Telecommunication Services          2,730          96,934  
 

SKC Co. Ltd.

     Chemicals          1,534          89,958  
 

S-Oil Corp.

     Oil, Gas & Consumable Fuels          3,224          182,529  
 

Solus Advanced Materials Co. Ltd.

     Electronic Equipment, Instruments & Components          1,066          22,278  
 

SSANGYONG C&E Co. Ltd.

     Construction Materials          8,684          35,629  
 

Wemade Co. Ltd.

     Entertainment          1,352          43,281  
 

Woori Financial Group Inc.

     Banks          50,050          374,317  
 

Yuhan Corp.

     Pharmaceuticals          3,952          149,992  
              

 

 

 
 

Total Common Stocks
(Cost $60,942,799)

               42,092,856  
              

 

 

 
    Preferred Stocks 4.0%                         
    South Korea 4.0%                         
d  

Amorepacific Corp., 2.345%, pfd.

     Personal Products          832          24,424  
d  

CJ CheilJedang Corp., 4.184%, pfd.

     Food Products          104          12,249  
d  

Hyundai Motor Co., 6.093%, pfd.

     Automobiles          2,756          161,234  
d  

Hyundai Motor Co., 6.005%, pfd.

     Automobiles          1,742          102,399  
d  

LG Chem Ltd., 4.782%, pfd.

     Chemicals          598          105,330  
d  

LG Electronics Inc., 2.436%, pfd.

     Household Durables          1,378          35,589  
d  

LG H&H Co. Ltd., 3.657%, pfd.

     Personal Products          156          35,928  
d  

Samsung Electronics Co. Ltd., 2.311%, pfd.

     Technology Hardware, Storage & Peripherals          37,310          1,223,065  

 

           
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Semiannual Report

             269


FRANKLIN TEMPLETON ETF TRUST

SCHEDULE OF INVESTMENTS (UNAUDITED)

 

Franklin FTSE South Korea ETF (continued)

 

           Industry        Shares        Value  
    Preferred Stocks (continued)                         
    South Korea (continued)                         
d  

Samsung Fire & Marine Insurance Co. Ltd., 7.77%, pfd.

     Insurance          208        $ 22,462  
d  

Samsung SDI Co. Ltd., 0.387%, pfd.

     Electronic Equipment, Instruments & Components          104          19,699  
              

 

 

 
 

Total Preferred Stocks
(Cost $2,553,083)

               1,742,379  
              

 

 

 
    Total Investments
(Cost $63,495,882) 99.8%
                     43,835,235  
    Other Assets, less Liabilities 0.2%                      77,411  
              

 

 

 
    Net Assets 100.0%                      $43,912,646  
              

 

 

 

aNon-income producing.

bSecurity was purchased pursuant to Rule 144A under the Securities Act of 1933 and may be sold in transactions exempt from registration only to qualified institutional buyers or in a public offering registered under the Securities Act of 1933. At September 30, 2022, the value of was $944,957, representing 2.2% of net assets.

cFair valued using significant unobservable inputs. See Note 9 regarding fair value measurements.

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

At September 30, 2022, the Fund had the following futures contracts outstanding. See Note 1(c).

 

Futures Contracts                                   
Description    Type      Number of
Contracts
     Notional
Amount*
     Expiration
Date
    

Value/Unrealized
Appreciation

(Depreciation)

 
Index Contracts                                   

Kospi 200 Mini

     Long        2      $ 98,710        12/08/22      $ (491

*As of period end.

See Note 8 regarding other derivative information.

See Abbreviations on page 332.

 

           
270             

Semiannual Report    |   The accompanying notes are an integral part of these financial statements.

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FRANKLIN TEMPLETON ETF TRUST

 

Financial Highlights

 

Franklin FTSE Switzerland ETF

 

   

Six Months Ended

September 30, 2022

(unaudited)

     Year Ended March 31,  
      2022      2021      2020      2019      2018a  
Per share operating performance
(for a share outstanding throughout the period)
                
Net asset value, beginning of period   $ 34.00      $ 30.36      $ 24.44      $ 23.86      $ 23.11      $ 23.56  
 

 

 

 
Income from investment operationsb:                 

Net investment income

    0.38        0.70        0.88        1.06        0.53        0.22  

Net realized and unrealized gains (losses)

    (7.50      3.62        5.74        (0.16      0.83        (0.67
 

 

 

 

Total from investment operations

    (7.12      4.32        6.62        0.90        1.36        (0.45
 

 

 

 
Less distributions from net investment income     (0.54      (0.68      (0.70      (0.32      (0.61       
 

 

 

 

Net asset value, end of period

  $ 26.34      $ 34.00      $ 30.36      $ 24.44      $ 23.86      $ 23.11  
 

 

 

 

Total returnc

    (20.98)%        14.22%        27.54%        3.70%        6.13%        (1.91)%  
Ratios to average net assetsd                 

Total expenses

    0.09%        0.09%        0.09%        0.09%        0.09%        0.09%  

Net investment income

    2.56%        2.07%        3.13%        4.12%        2.35%        6.54%  
Supplemental data                 

Net assets, end of period (000’s)

    $50,042        $47,593        $48,570        $34,213        $2,386        $2,311  

Portfolio turnover ratee

    4.54%f        13.99%f        12.59%f        16.25%f        14.06%        2.72%  

 

aFor the period February 6, 2018 (commencement of operations) to March 31, 2018.

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.

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

dRatios are annualized for periods less than one year.

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

 

fPortfolio turnover rate excluding cash creations was as follows:     4.54%        13.99%        12.59%      16.25%      

 

           
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             271


FRANKLIN TEMPLETON ETF TRUST

 

Schedule of Investments, September 30, 2022 (unaudited)

 

Franklin FTSE Switzerland ETF

 

           Industry        Shares        Value  
    Common Stocks 98.5%                         
    Switzerland 98.5%                         
 

ABB Ltd.

     Electrical Equipment          59,641        $ 1,563,361  
 

Adecco Group AG

     Professional Services          6,707          186,781  
 

Alcon Inc.

     Health Care Equipment & Supplies          19,190          1,133,560  
 

Bachem Holding AG

     Life Sciences Tools & Services          1,292          82,436  
 

Baloise Holding AG

     Insurance          1,900          244,582  
 

Banque Cantonale Vaudoise

     Banks          1,197          113,954  
 

Barry Callebaut AG

     Food Products          150          284,836  
 

Belimo Holding AG

     Building Products          399          148,979  
 

BKW AG

     Electric Utilities          760          91,192  
 

Chocoladefabriken Lindt & Spruengli AG

     Food Products          88          854,742  
 

Cie Financiere Richemont SA

     Textiles, Apparel & Luxury Goods          19,209          1,840,005  
a  

Clariant AG

     Chemicals          9,557          154,388  
 

Credit Suisse Group AG

     Capital Markets          110,485          446,318  
 

DKSH Holding AG

     Professional Services          1,501          109,496  
 

Emmi AG

     Food Products          76          59,379  
 

EMS-Chemie Holding AG

     Chemicals          299          190,929  
a  

Flughafen Zurich AG

     Transportation Infrastructure          798          119,102  
 

Geberit AG

     Building Products          1,468          637,612  
 

Georg Fischer AG

     Machinery          3,465          167,573  
 

Givaudan AG

     Chemicals          390          1,189,911  
 

Helvetia Holding AG

     Insurance          1,463          138,088  
 

Holcim Ltd., B

     Construction Materials          23,066          960,371  
 

Julius Baer Group Ltd.

     Capital Markets          8,987          397,190  
 

Kuehne + Nagel International AG

     Marine          2,128          436,735  
 

Logitech International SA

     Technology Hardware, Storage & Peripherals          6,137          286,508  
 

Lonza Group AG

     Life Sciences Tools & Services          2,933          1,449,142  
 

Nestle SA

     Food Products          92,644          10,079,065  
 

Novartis AG

     Pharmaceuticals          74,860          5,744,654  
 

Partners Group Holding AG

     Capital Markets          948          774,967  
 

PSP Swiss Property AG

     Real Estate Management & Development          1,824          183,466  
 

Roche Holding AG, Bearer

     Pharmaceuticals          969          381,791  
 

Roche Holding AG, Non-Voting

     Pharmaceuticals          25,175          8,273,156  
 

Schindler Holding AG, PC

     Machinery          1,729          271,669  
 

Schindler Holding AG

     Machinery          798          121,615  
 

SGS SA

     Professional Services          249          537,592  
 

SIG Combibloc Group AG

     Containers & Packaging          16,093          329,953  
 

Sika AG

     Chemicals          6,213          1,266,903  
 

Sonova Holding AG

     Health Care Equipment & Supplies          2,185          488,392  
 

Straumann Holding AG

     Health Care Equipment & Supplies          4,508          420,640  
 

Swatch Group AG

     Textiles, Apparel & Luxury Goods          1,900          80,614  
 

Swiss Life Holding AG

     Insurance          1,292          575,608  
 

Swiss Prime Site AG

     Real Estate Management & Development          3,211          257,728  
 

Swiss Re AG

     Insurance          12,217          908,098  
 

Swisscom AG

     Diversified Telecommunication Services          1,083          510,003  
 

Tecan Group AG

     Life Sciences Tools & Services          532          185,396  
 

Temenos AG

     Software          2,546          174,450  
 

The Swatch Group AG

     Textiles, Apparel & Luxury Goods          1,216          277,360  
 

UBS Group AG

     Capital Markets          116,698          1,716,234  
b  

VAT Group AG, 144A

     Machinery          1,083          224,247  

 

           
272             

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FRANKLIN TEMPLETON ETF TRUST

SCHEDULE OF INVESTMENTS (UNAUDITED)

 

Franklin FTSE Switzerland ETF (continued)

 

           Industry        Shares        Value  
    Common Stocks (continued)                         
    Switzerland (continued)                         
 

Zurich Insurance Group AG

     Insurance          5,472        $ 2,196,027  
              

 

 

 
 

Total Investments (Cost $56,620,228) 98.5%

               49,266,798  
 

Other Assets, less Liabilities 1.5%

               774,868  
              

 

 

 
 

Net Assets 100.0%

             $ 50,041,666  
              

 

 

 

aNon-income producing.

bSecurity was purchased pursuant to Rule 144A under the Securities Act of 1933 and may be sold in transactions exempt from registration only to qualified institutional buyers or in a public offering registered under the Securities Act of 1933. At September 30, 2022, the value of was $224,247, representing 0.4% of net assets.

At September 30, 2022, the Fund had the following futures contracts outstanding. See Note 1(c).

 

Futures Contracts                                   
Description    Type      Number of
Contracts
     Notional
Amount*
     Expiration
Date
    

Value/Unrealized
Appreciation

(Depreciation)

 
Equity Contracts                                   

Swiss Mid Cap Future Index

     Long        7      $ 729,622        12/16/22      $ (32,156

*As of period end.

See Note 8 regarding other derivative information.

 

           
franklintempleton.com  

The accompanying notes are an integral part of these financial statements.    |   Semiannual Report

             273


FRANKLIN TEMPLETON ETF TRUST

 

Financial Highlights

 

Franklin FTSE Taiwan ETF

 

   

Six Months Ended
September 30, 2022

(unaudited)

     Year Ended March 31,  
      2022      2021      2020      2019      2018a  
Per share operating performance
(for a share outstanding throughout the period)
                

Net asset value, beginning of period

  $ 43.67      $ 41.12      $ 23.18      $ 24.72      $ 26.34      $ 25.59  
 

 

 

 
Income from investment operationsb:                 

Net investment income (loss)c

    1.36        0.98        0.74        0.89        0.47        (0.02

Net realized and unrealized gains (losses)

    (14.15      2.64        17.99        (1.56      (1.85      0.77  
 

 

 

 

Total from investment operations

    (12.79      3.62        18.73        (0.67      (1.38      0.75  
 

 

 

 

Less distributions from net investment income

    (0.00      (1.07      (0.79      (0.87      (0.24      d 
 

 

 

 

Net asset value, end of period

  $ 30.88      $ 43.67      $ 41.12      $ 23.18      $ 24.72      $ 26.34  
 

 

 

 

Total returne

    (29.26)%        8.72%        81.35%        (3.29)%        (5.15)%        2.93%  
Ratios to average net assetsf                 

Total expenses

    0.19%        0.19%        0.19%        0.19%        0.19%        0.19%  

Net investment income (loss)

    7.27%        2.20%        2.24%        3.39%        1.96%        (0.19)%  
Supplemental data                 

Net assets, end of period (000’s)

    $27,788        $43,667        $32,897        $13,906        $14,834        $5,268  

Portfolio turnover rateg

    4.77% h       17.76% h       10.63% h       12.57% h       8.71%        3.63%  

 

 

aFor the period November 2, 2017 (commencement of operations) to March 31, 2018.

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.

dAmount rounds to less than $0.001 per share.

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

fRatios are annualized for periods less than one year.

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

 

hPortfolio turnover rate excluding cash creations was as follows:     1.44%        7.86%        10.63%        12.57%                                          

 

           
274             

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 FTSE Taiwan ETF

 

           Industry        Shares        Value  
    Common Stocks 99.8%                         
    China 1.3%                         
a  

Airtac International Group, A

     Machinery          6,923        $ 159,615  
 

Silergy Corp.

     Semiconductors & Semiconductor Equipment          14,220          188,561  
              

 

 

 
                 348,176  
              

 

 

 
    Taiwan 98.3%                         
 

Accton Technology Corp.

     Communications Equipment          24,030          206,248  
 

Acer Inc., H

     Technology Hardware, Storage & Peripherals          124,000          85,533  
 

Advanced Energy Solution Holding Co. Ltd.

     Electrical Equipment          1,080          21,703  
 

Advantech Co. Ltd.

     Technology Hardware, Storage & Peripherals          18,138          167,675  
 

ASE Industrial Holding Co. Ltd., A

     Semiconductors & Semiconductor Equipment          150,100          378,689  
 

Asia Cement Corp.

     Construction Materials          108,000          134,026  
 

ASMedia Technology Inc.

     Semiconductors & Semiconductor Equipment          1,720          35,972  
 

ASPEED Technology Inc.

     Semiconductors & Semiconductor Equipment          1,350          75,687  
 

Asustek Computer Inc.

     Technology Hardware, Storage & Peripherals          31,540          232,460  
 

AU Optronics Corp., H

     Electronic Equipment, Instruments & Components          430,000          199,093  
 

Capital Securities Corp., A

     Capital Markets          87,000          28,910  
a  

Catcher Technology Co. Ltd.

     Technology Hardware, Storage & Peripherals          32,000          173,864  
 

Cathay Financial Holding Co. Ltd., A

     Insurance          363,300          457,143  
 

Chailease Holding Co. Ltd., A

     Diversified Financial Services          61,002          350,652  
 

Chang Hwa Commercial Bank Ltd., A

     Banks          288,033          155,588  
 

Cheng Shin Rubber Industry Co. Ltd., A

     Auto Components          81,300          91,417  
 

Chicony Electronics Co. Ltd.

     Technology Hardware, Storage & Peripherals          26,520          68,829  
 

China Airlines Ltd., A

     Airlines          126,000          77,984  
 

China Development Financial Holding Corp., A

     Banks          714,000          269,867  
 

China Motor Corp., A

     Automobiles          11,460          14,673  
 

China Steel Corp., A

     Metals & Mining          545,000          458,329  
 

Chunghwa Telecom Co. Ltd.

     Diversified Telecommunication Services          167,240          600,503  
 

Compal Electronics Inc., H

     Technology Hardware, Storage & Peripherals          180,000          123,027  
 

CTBC Financial Holding Co. Ltd., A

     Banks          801,000          500,798  
 

Delta Electronics Inc., A

     Electronic Equipment, Instruments & Components          95,490          760,936  
 

E Ink Holdings Inc.

     Electronic Equipment, Instruments & Components          39,500          263,756  
 

E.Sun Financial Holding Co. Ltd., A

     Banks          601,415          487,777  
 

Eclat Textile Co. Ltd., A

     Textiles, Apparel & Luxury Goods          8,820          108,899  
 

eMemory Technology Inc.

     Semiconductors & Semiconductor Equipment          3,018          108,842  
 

ENNOSTAR Inc., H

     Semiconductors & Semiconductor Equipment          27,820          36,320  
 

Eternal Materials Co. Ltd., H

     Chemicals          48,300          46,096  
 

EVA Airways Corp., H

     Airlines          111,000          98,592  
 

Evergreen Marine Corp. Taiwan Ltd.

     Marine          44,072          202,668  
 

Far Eastern International Bank

     Banks          105,091          36,742  
 

Far Eastern New Century Corp.

     Industrial Conglomerates          172,800          176,071  
 

Far EasTone Telecommunications Co. Ltd.

     Wireless Telecommunication Services          71,000          161,907  
 

Feng Tay Enterprise Co. Ltd.

     Textiles, Apparel & Luxury Goods          19,240          95,749  
 

First Financial Holding Co. Ltd.

     Banks          457,770          374,879  
 

Formosa Chemicals & Fibre Corp.

     Chemicals          151,000          328,643  
 

Formosa Petrochemical Corp.

     Oil, Gas & Consumable Fuels          59,820          156,196  
 

Formosa Plastics Corp.

     Chemicals          164,460          448,588  
 

Formosa Sumco Technology Corp.

     Semiconductors & Semiconductor Equipment          2,460          10,615  
 

Formosa Taffeta Co. Ltd.

     Textiles, Apparel & Luxury Goods          45,000          38,340  
 

Foxconn Technology Co. Ltd.

     Technology Hardware, Storage & Peripherals          48,360          69,839  
 

Fubon Financial Holding Co. Ltd.

     Insurance          323,149          507,894  
 

Genius Electronic Optical Co. Ltd.

     Electronic Equipment, Instruments & Components          3,690          40,155  
 

Giant Manufacturing Co. Ltd.

     Leisure Products          13,100          84,792  
 

Globalwafers Co. Ltd.

     Semiconductors & Semiconductor Equipment          9,270          107,010  
 

Hiwin Technologies Corp.

     Machinery          12,289          68,511  
 

Hon Hai Precision Industry Co. Ltd.

     Electronic Equipment, Instruments & Components          525,600          1,688,595  
 

Hotai Motor Co. Ltd.

     Specialty Retail          14,040          252,949  
a  

HTC Corp.

     Technology Hardware, Storage & Peripherals          31,500          54,370  
 

Hua Nan Financial Holdings Co. Ltd.

     Banks          450,029          315,385  

 

           
franklintempleton.com  

Semiannual Report

             275


FRANKLIN TEMPLETON ETF TRUST

SCHEDULE OF INVESTMENTS (UNAUDITED)

 

Franklin FTSE Taiwan ETF (continued)

 

           Industry        Shares        Value  
    Common Stocks (continued)                         
    Taiwan (continued)                         
 

Innolux Corp.

     Electronic Equipment, Instruments & Components          451,000        $ 148,444  
 

Inventec Corp.

     Technology Hardware, Storage & Peripherals          132,000          95,209  
 

Largan Precision Co. Ltd.

     Electronic Equipment, Instruments & Components          4,500          237,409  
 

Lite-On Technology Corp.

     Technology Hardware, Storage & Peripherals          93,600          188,090  
 

MediaTek Inc.

     Semiconductors & Semiconductor Equipment          65,520          1,137,092  
 

Mega Financial Holding Co. Ltd.

     Banks          496,150          486,789  
 

Micro-Star International Co. Ltd.

     Technology Hardware, Storage & Peripherals          30,500          103,271  
 

momo.com Inc.

     Internet & Catalog Retail          2,438          41,006  
 

Nan Ya Plastics Corp.

     Chemicals          248,490          523,606  
 

Nan Ya Printed Circuit Board Corp.

     Electronic Equipment, Instruments & Components          9,000          53,576  
 

Nanya Technology Corp.

     Semiconductors & Semiconductor Equipment          35,190          54,255  
 

Nien Made Enterprise Co. Ltd.

     Household Durables          6,120          48,480  
 

Novatek Microelectronics Corp. Ltd.

     Semiconductors & Semiconductor Equipment          25,240          174,102  
a  

OBI Pharma Inc.

     Biotechnology          7,446          16,769  
a  

Oneness Biotech Co. Ltd.

     Pharmaceuticals          13,200          104,980  
 

Pegatron Corp.

     Technology Hardware, Storage & Peripherals          90,000          165,832  
 

Pou Chen Corp.

     Textiles, Apparel & Luxury Goods          117,000          105,027  
 

Powerchip Semiconductor Manufacturing Corp.

     Semiconductors & Semiconductor Equipment          126,000          113,106  
 

Powertech Technology Inc.

     Semiconductors & Semiconductor Equipment          31,300          76,010  
 

President Chain Store Corp.

     Food & Staples Retailing          24,840          221,024  
 

Quanta Computer Inc.

     Technology Hardware, Storage & Peripherals          117,260          284,388  
 

Realtek Semiconductor Corp.

     Semiconductors & Semiconductor Equipment          20,942          178,095  
 

Ruentex Development Co. Ltd.

     Real Estate Management & Development          69,000          111,707  
 

Shin Kong Financial Holding Co. Ltd.

     Insurance          592,565          153,232  
 

Sino-American Silicon Products Inc.

     Semiconductors & Semiconductor Equipment          23,820          98,284  
 

SinoPac Financial Holdings Co. Ltd.

     Banks          468,070          255,051  
 

Synnex Technology International Corp.

     Electronic Equipment, Instruments & Components          59,100          98,286  
 

Taishin Financial Holding Co. Ltd.

     Banks          498,872          215,268  
 

Taiwan Business Bank

     Banks          231,631          91,926  
 

Taiwan Cement Corp.

     Construction Materials          261,418          278,306  
 

Taiwan Cooperative Financial Holding Co. Ltd.

     Banks          441,446          364,987  
 

Taiwan Fertilizer Co. Ltd.

     Chemicals          32,400          56,230  
 

Taiwan Glass Industry Corp.

     Building Products          72,000          39,573  
 

Taiwan High Speed Rail Corp.

     Transportation Infrastructure          91,000          81,688  
 

Taiwan Mobile Co. Ltd.

     Wireless Telecommunication Services          75,780          228,183  
 

Taiwan Secom Co. Ltd.

     Commercial Services & Supplies          12,280          39,065  
 

Taiwan Semiconductor Manufacturing Co. Ltd.

     Semiconductors & Semiconductor Equipment          402,620          5,351,527  
 

Teco Electric & Machinery Co. Ltd.

     Electrical Equipment          87,000          77,138  
 

The Shanghai Commercial & Savings Bank Ltd.

     Banks          144,000          223,150  
 

Transcend Information Inc.

     Technology Hardware, Storage & Peripherals          12,280          24,948  
 

U-Ming Marine Transport Corp.

     Marine          18,000          20,694  
 

Unimicron Technology Corp.

     Electronic Equipment, Instruments & Components          55,800          206,510  
 

Uni-President Enterprises Corp.

     Food Products          210,700          446,632  
 

United Microelectronics Corp.

     Semiconductors & Semiconductor Equipment          515,220          580,148  
 

Vanguard International Semiconductor Corp.

     Semiconductors & Semiconductor Equipment          39,360          80,582  
 

Voltronic Power Technology Corp.

     Electrical Equipment          2,880          127,450  
 

Walsin Lihwa Corp.

     Electrical Equipment          150,679          192,211  
 

Walsin Technology Corp.

     Electronic Equipment, Instruments & Components          21,280          49,934  
 

Wan Hai Lines Ltd.

     Marine          40,530          85,275  
 

Win Semiconductors Corp.

     Semiconductors & Semiconductor Equipment          17,550          68,267  
 

Winbond Electronics Corp.

     Semiconductors & Semiconductor Equipment          128,000          79,625  
 

Wistron Corp.

     Technology Hardware, Storage & Peripherals          125,000          104,531  
 

Wiwynn Corp.

     Technology Hardware, Storage & Peripherals          3,820          97,218  
 

Yageo Corp.

     Electronic Equipment, Instruments & Components          22,250          188,518  
 

Yang Ming Marine Transport Corp.

     Marine          77,400          149,929  
 

Yuanta Financial Holding Co. Ltd.

     Capital Markets          532,406          327,838  
 

Yulon Motor Co. Ltd.

     Automobiles          23,549          30,448  

 

           
276             

Semiannual Report

  franklintempleton.com


FRANKLIN TEMPLETON ETF TRUST

SCHEDULE OF INVESTMENTS (UNAUDITED)

 

Franklin FTSE Taiwan ETF (continued)

 

           Industry        Shares        Value  
    Common Stocks (continued)                         
    Taiwan (continued)                         
 

Yulon Nissan Motor Co. Ltd.

     Automobiles          1,260        $ 7,540  
 

Zhen Ding Technology Holding Ltd.

     Electronic Equipment, Instruments & Components          27,900          93,149  
              

 

 

 
                 27,321,394  
              

 

 

 
    United States 0.2%                         
 

Parade Technologies Ltd.

     Semiconductors & Semiconductor Equipment          3,060          57,058  
              

 

 

 
 

Total Investments
(Cost $27,057,905) 99.8%

               27,726,628  
 

Other Assets, less Liabilities 0.2%

               61,144  
              

 

 

 
 

Net Assets 100.0%

             $ 27,787,772  
              

 

 

 

aNon-income producing.

At September 30, 2022, the Fund had the following futures contracts outstanding. See Note 1(c).

 

Futures Contracts                                   
Description    Type      Number of
Contracts
     Notional
Amount*
     Expiration
Date
     Value/Unrealized
Appreciation
(Depreciation)
 
Equity Contracts                                   

FTSE TAIWAN INDEX

     Long        2      $ 93,400        10/28/22      $ (4,144

*As of period end.

 

 

See Note 8 regarding other derivative information.

 

           
franklintempleton.com  

The accompanying notes are an integral part of these financial statements.    |   Semiannual Report

             277


FRANKLIN TEMPLETON ETF TRUST

 

Financial Highlights

 

Franklin FTSE United Kingdom ETF

 

   

Six Months Ended
September 30, 2022

(unaudited)

    Year Ended March 31,  
     2022     2021     2020     2019     2018a  
Per share operating performance
(for a share outstanding throughout the period)
           

Net asset value, beginning of period

  $ 25.46     $ 23.78     $ 17.92     $ 24.23     $ 25.23     $ 24.89  
 

 

 

 
Income from investment operationsb:            

Net investment incomec

    0.55       0.95       0.84       1.08       1.05       0.38  

Net realized and unrealized gains (losses)

    (5.75     1.47       5.62       (6.30     (1.21     0.07  
 

 

 

 

Total from investment operations

    (5.20     2.42       6.46       (5.22     (0.16     0.45  
 

 

 

 
Less distributions from net investment income     (0.49     (0.74     (0.60     (1.09     (0.84     (0.11
 

 

 

 

Net asset value, end of period

  $ 19.77     $ 25.46     $ 23.78     $ 17.92     $ 24.23     $ 25.23  
 

 

 

 

Total returnd

    (20.61)%       10.27%       36.19%       (22.42)%       (0.51)%       1.80%  
Ratios to average net assetse            

Expenses before waiver and payments by affiliates

    0.09%       0.09%       0.09%       0.09%       0.09%       0.09%  

Expenses net of waiver and payments by affiliates

    0.09%       0.09%       0.09%       0.09%       0.09%       0.09%  

Net investment income

    4.73%       3.77%       3.98%       4.84%       4.46%       3.68%  
Supplemental data            

Net assets, end of period (000’s)

    $390,474       $613,573       $205,673       $89,624       $29,076       $2,523  

Portfolio turnover ratef

    2.90%g       5.76%g       7.26%g       4.41%g       10.10%       1.61%  

 

aFor the period November 2, 2017 (commencement of operations) to March 31, 2018.

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, except for non-recurring expenses, if any.

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

 

gPortfolio turnover rate excluding cash creations was as follows:     2.90%       5.76%       7.26%       4.41%                                        

 

           
278             

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 FTSE United Kingdom ETF

 

           Industry      Shares        Value  
    Common Stocks 99.0%                       
    Australia 6.3%                       
 

Glencore PLC

     Metals & Mining        2,492,450        $ 13,303,666  
 

Rio Tinto PLC

     Metals & Mining        207,375          11,333,877  
            

 

 

 
               24,637,543  
            

 

 

 
    Bermuda 0.2%                       
 

Hiscox Ltd.

     Insurance        63,200          622,534  
            

 

 

 
    Chile 0.2%                       
 

Antofagasta PLC

     Metals & Mining        65,570          816,499  
            

 

 

 
    Germany 0.1%                       
a,b  

TUI AG

     Hotels, Restaurants & Leisure        235,420          284,217  
            

 

 

 
    Ireland 4.1%                       
 

CRH PLC

     Construction Materials        145,755          4,734,751  
 

DCC PLC

     Industrial Conglomerates        18,960          992,429  
 

Experian PLC

     Professional Services        174,985          5,197,882  
a  

Flutter Entertainment PLC

     Hotels, Restaurants & Leisure        33,575          3,724,738  
 

Smurfit Kappa Group PLC

     Containers & Packaging        49,770          1,434,513  
            

 

 

 
               16,084,313  
            

 

 

 
    Isle Of Man 0.3%                       
 

GVC Holdings PLC

     Hotels, Restaurants & Leisure        111,785          1,355,171  
            

 

 

 
    Mexico 0.1%                       
 

Fresnillo PLC

     Metals & Mining        34,760          298,469  
            

 

 

 
    Netherlands 8.9%                       
 

Shell PLC

     Oil, Gas & Consumable Fuels        1,393,955          34,957,139  
            

 

 

 
    Nigeria 0.1%                       
 

Airtel Africa PLC, 144A

     Wireless Telecommunication Services        204,215          294,531  
            

 

 

 
    Russia 0.0%                       
c  

Evraz PLC

     Metals & Mining        128,818           
            

 

 

 
    Switzerland 0.2%                       
 

Coca-Cola HBC AG

     Beverages        37,525          793,380  
            

 

 

 
    United Kingdom 78.5%                       
 

3i Group PLC

     Capital Markets        181,305          2,212,130  
 

Abrdn PLC

     Capital Markets        409,220          635,426  
 

Admiral Group PLC

     Insurance        54,115          1,156,522  
 

Anglo American PLC

     Metals & Mining        229,890          7,020,006  
 

Ashtead Group PLC

     Trading Companies & Distributors        84,135          3,837,565  
 

Associated British Foods PLC

     Food Products        65,570          923,364  
 

AstraZeneca PLC

     Pharmaceuticals        281,240          31,218,994  
d  

Auto Trader Group PLC, 144A

     Interactive Media & Services        175,775          1,010,520  
 

AVEVA Group PLC

     Software        22,515          789,694  
 

Aviva PLC

     Insurance        531,670          2,303,978  
 

B&M European Value Retail SA

     Multiline Retail        176,170          601,972  
 

BAE Systems PLC

     Aerospace & Defense        600,795          5,296,929  
 

Barclays PLC

     Banks        3,074,680          4,952,756  
 

Barratt Developments PLC

     Household Durables        195,130          745,392  
 

Bellway PLC

     Household Durables        23,305          443,042  
 

Berkeley Group Holdings PLC

     Household Durables        19,355          712,349  
 

BP PLC

     Oil, Gas & Consumable Fuels      3,535,645          17,093,757  
 

British American Tobacco PLC

     Tobacco        426,600          15,365,023  
 

British Land Co. PLC

     Equity Real Estate Investment Trusts (REITs      177,750          695,867  
 

BT Group PLC

     Diversified Telecommunication Services        1,326,410          1,796,794  
 

Bunzl PLC

     Trading Companies & Distributors        64,385          1,983,693  
 

Burberry Group PLC

     Textiles, Apparel & Luxury Goods        75,050          1,514,711  
a  

Centrica PLC

     Multi-Utilities        1,128,515          892,414  

 

           
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FRANKLIN TEMPLETON ETF TRUST

SCHEDULE OF INVESTMENTS (UNAUDITED)

 

Franklin FTSE United Kingdom ETF (continued)

 

           Industry      Shares        Value  
    Common Stocks (continued)                       
    United Kingdom (continued)                       
 

Compass Group PLC

     Hotels, Restaurants & Leisure        339,305        $ 6,836,726  
a  

ConvaTec Group PLC, 144A

     Health Care Equipment & Supplies        312,445          717,096  
 

Croda International PLC

     Chemicals        25,675          1,847,487  
 

Dechra Pharmaceuticals PLC

     Pharmaceuticals        20,935          612,754  
 

Derwent London PLC

     Equity Real Estate Investment Trusts (REITs      18,960          427,534  
 

Diageo PLC

     Beverages        429,760          18,218,158  
 

Direct Line Insurance Group PLC

     Insurance        251,615          521,028  
 

Dr. Martens PLC

     Textiles, Apparel & Luxury Goods        104,280          259,356  
 

DS Smith PLC

     Containers & Packaging        245,690          704,583  
a  

easyJet PLC

     Airlines        70,310          232,636  
 

Electrocomponents PLC

     Trading Companies & Distributors        88,875          961,356  
 

Endeavour Mining PLC

     Metals & Mining        34,760          636,750  
 

Ferguson PLC

     Trading Companies & Distributors        40,290          4,229,515  
 

GSK PLC

     Pharmaceuticals        761,165          11,095,227  
a  

Haleon PLC

     Personal Products        951,555          2,966,250  
 

Halma PLC

     Electronic Equipment, Instruments & Components        72,285          1,650,145  
 

Hargreaves Lansdown PLC

     Capital Markets        71,495          692,111  
 

Hikma Pharmaceuticals PLC

     Pharmaceuticals        31,205          474,963  
 

HomeServe PLC

     Commercial Services & Supplies        52,930          699,575  
 

Howden Joinery Group PLC

     Trading Companies & Distributors        101,910          574,726  
 

HSBC Holdings PLC

     Banks        3,835,055          20,005,439  
 

IMI PLC

     Machinery        48,585          606,894  
 

Imperial Brands PLC

     Tobacco        180,120          3,729,809  
 

Informa PLC

     Media        274,525          1,591,099  
 

InterContinental Hotels Group PLC

     Hotels, Restaurants & Leisure        35,155          1,714,549  
 

Intermediate Capital Group PLC

     Capital Markets        52,535          576,361  
a  

International Consolidated Airlines Group SA

     Airlines        210,535          222,494  
 

Intertek Group PLC

     Professional Services        30,810          1,274,955  
 

ITV PLC

     Media        718,505          459,424  
 

J Sainsbury PLC

     Food & Staples Retailing        325,480          633,290  
 

JD Sports Fashion PLC

     Specialty Retail        463,335          518,255  
 

Johnson Matthey PLC

     Chemicals        34,760          711,057  
 

Kingfisher PLC

     Specialty Retail        378,015          930,039  
 

Land Securities Group PLC

     Equity Real Estate Investment Trusts (REITs      136,670          796,082  
 

Legal & General Group PLC

     Insurance        1,129,305          2,729,291  
 

Lloyds Banking Group PLC

     Banks        13,025,520          6,018,263  
 

London Stock Exchange Group PLC

     Capital Markets        69,915          5,953,355  
 

M&G PLC

     Diversified Financial Services        482,690          897,416  
 

Melrose Industries PLC

     Industrial Conglomerates        761,955          869,282  
 

Mondi PLC

     Paper & Forest Products        92,430          1,438,323  
 

National Grid PLC

     Multi-Utilities        694,015          7,212,723  
 

NatWest Group PLC

     Banks        968,145          2,441,391  
 

Next PLC

     Multiline Retail        23,305          1,248,997  
a,c  

NMC Health PLC

     Health Care Providers & Services        3,705           
a  

Ocado Group PLC

     Food & Staples Retailing        109,810          579,194  
 

Pearson PLC

     Media        139,830          1,353,007  
 

Pennon Group PLC

     Water Utilities        50,165          440,713  
 

Persimmon PLC

     Household Durables        60,830          840,318  
 

Phoenix Group Holdings PLC

     Insurance        138,645          815,325  
 

Prudential PLC

     Insurance        523,375          5,221,966  
 

Reckitt Benckiser Group PLC

     Household Products        136,275          9,090,913  
 

RELX PLC

     Professional Services        353,130          8,680,258  
 

Renishaw PLC

     Electronic Equipment, Instruments & Components        6,448          253,078  
 

Rentokil Initial PLC

     Commercial Services & Supplies        355,105          1,892,827  
 

Rightmove PLC

     Interactive Media & Services        158,790          854,734  
a  

Rolls-Royce Holdings PLC

     Aerospace & Defense        1,595,010          1,239,056  
 

Royal Mail PLC

     Air Freight & Logistics        168,665          347,284  

 

           
280             

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FRANKLIN TEMPLETON ETF TRUST

SCHEDULE OF INVESTMENTS (UNAUDITED)

 

Franklin FTSE United Kingdom ETF (continued)

 

           Industry      Shares        Value  
    Common Stocks (continued)                       
    United Kingdom (continued)                       
 

Schroders PLC

     Capital Markets        123,182        $ 535,319  
 

Segro PLC

     Equity Real Estate Investment Trusts (REITs      228,705          1,922,434  
 

Severn Trent PLC

     Water Utilities        47,400          1,246,092  
 

Smith & Nephew PLC

     Health Care Equipment & Supplies        166,295          1,950,096  
 

Smiths Group PLC

     Industrial Conglomerates        69,125          1,165,179  
 

Spirax-Sarco Engineering PLC

     Machinery        13,825          1,605,015  
 

SSE PLC

     Electric Utilities        203,425          3,468,696  
 

St. James’s Place Capital PLC

     Capital Markets        101,910          1,178,575  
 

Standard Chartered PLC

     Banks        465,310          2,944,103  
 

Tate & Lyle PLC

     Food Products        75,840          575,689  
 

Taylor Wimpey PLC

     Household Durables        668,340          658,778  
 

Tesco PLC

     Food & Staples Retailing        1,409,755          3,254,430  
 

The Sage Group PLC

     Software        193,945          1,509,443  
 

Unilever PLC

     Personal Products        483,480          21,421,028  
 

UNITE Group PLC

     Equity Real Estate Investment Trusts (REITs      60,435          579,175  
 

United Utilities Group PLC

     Water Utilities        129,560          1,285,451  
 

Vodafone Group PLC

     Wireless Telecommunication Services        4,780,290          5,396,001  
 

Weir Group PLC

     Machinery        49,770          781,426  
 

Whitbread PLC

     Hotels, Restaurants & Leisure        38,315          984,589  
a  

Wise PLC, A

     IT Services        87,295          643,737  
 

WPP PLC

     Media        203,425          1,703,124  
            

 

 

 
                         306,556,715  
            

 

 

 
 

Total Investments before Short Term Investments
(Cost $508,915,285)

             386,700,511  
            

 

 

 
    Short-Term Investments 0.1%                       
 

Investments from Cash Collateral Received for Loaned Securities 0.1%

          
    United States 0.1%                       
e,f  

Institutional Fiduciary Trust Portfolio, 2.45%

     Money Market Funds        273,000          273,000  
            

 

 

 
 

Total Short-Term Investments
(Cost $273,000)

             273,000  
            

 

 

 
 

Total Investments
(Cost $509,188,285) 99.1%

             386,973,511  
 

Other Assets, less Liabilities 0.9%

             3,500,130  
            

 

 

 
 

Net Assets 100.0%

           $ 390,473,641  
            

 

 

 

aNon-income producing.

bA portion or all of the security is on loan at September 30, 2022. See Note 1(d).

cFair valued using significant unobservable inputs. See Note 9 regarding fair value measurements.

dSecurity was purchased pursuant to Rule 144A under the Securities Act of 1933 and may be sold in transactions exempt from registration only to qualified institutional buyers or in a public offering registered under the Securities Act of 1933.At September 30, 2022, the value of was $2,022,147, representing 0.5% of net assets.

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

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

 

           
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FRANKLIN TEMPLETON ETF TRUST

SCHEDULE OF INVESTMENTS (UNAUDITED)

 

Franklin FTSE United Kingdom ETF (continued)

 

At September 30, 2022, the Fund had the following futures contracts outstanding. See Note 1(c).

 

Futures Contracts                                   
Description    Type      Number of
Contracts
     Notional
Amount*
     Expiration
Date
     Value/Unrealized
Appreciation
(Depreciation)
 
Index Contracts                                   

FTSE 100 Index

     Long        47      $ 3,627,767        12/16/22      $ (236,095

*As of period end.

 

See Note 8 regarding other derivative information.

See Abbreviations on page 332.

 

           
282             

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  franklintempleton.com


FRANKLIN TEMPLETON ETF TRUST

FINANCIAL STATEMENTS

 

Statements of Assets and Liabilities

September 30, 2022 (unaudited)

 

 

      Franklin FTSE
Asia ex Japan ETF
     Franklin FTSE
Australia ETF
     Franklin FTSE
Brazil ETF
     Franklin FTSE
Canada ETF
 

Assets:

           

Investments in securities:

           

Cost – Unaffiliated issuers

   $ 37,997,819      $ 25,399,172      $ 283,908,891      $ 300,579,922  

Value – Unaffiliated issuers

   $ 30,334,092      $ 22,913,777      $ 277,548,283      $ 257,885,497  

Cash

            197        182,456         

Foreign currency, at value (cost $58,396, $279,747, $1,047,633 and $334,426, respectively)

     57,880        276,344        981,878        332,236  

Receivables:

           

Dividends

     52,691        98,762        1,039,760        618,927  

Variation margin on futures contracts

            386                

Deposits with brokers for:

           

Futures contracts

     49        38,423        579,506        48,347  

Other assets

     46                       
  

 

 

 

Total assets

     30,444,758        23,327,889        280,331,883        258,885,007  
  

 

 

 

Liabilities:

           

Payables:

           

Management fees

     5,111        1,872        43,256        21,523  

Variation margin on futures contracts

                   88,129        1,582  

Funds advanced by custodian

     8,683                      647  

Deferred tax

     145,188                       
  

 

 

 

Total liabilities

     158,982        1,872        131,385        23,752  
  

 

 

 

Net assets, at value

   $ 30,285,776      $ 23,326,017      $ 280,200,498      $ 258,861,255  
  

 

 

 

Net assets consist of:

           

Paid-in capital

   $ 40,272,908      $ 26,726,887      $ 406,857,769      $ 296,448,312  

Total distributable earnings (loss)

     (9,987,132      (3,400,870      (126,657,271      (37,587,057
  

 

 

 

Net assets, at value

   $ 30,285,776      $ 23,326,017      $ 280,200,498      $ 258,861,255  
  

 

 

 

Shares outstanding

     1,600,000        1,000,000        15,500,000        9,200,000  
  

 

 

 

Net asset value per share

   $ 18.93      $ 23.33      $ 18.08      $ 28.14  
  

 

 

 

 

           
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             283


FRANKLIN TEMPLETON ETF TRUST

FINANCIAL STATEMENTS

 

Statements of Assets and Liabilities (continued)

September 30, 2022 (unaudited)

 

 

      Franklin FTSE
China ETF
     Franklin FTSE
Europe ETF
     Franklin FTSE
Europe Hedged ETF
     Franklin FTSE
France ETF
 

Assets:

           

Investments in securities:

           

Cost – Unaffiliated issuers

   $ 138,328,688      $ 51,710,478      $ 19,730,791      $ 8,467,663  

Value – Unaffiliated issuers

   $ 91,369,615      $ 36,113,747      $ 14,141,600      $ 6,580,831  

Cash

            20,055                

Foreign currency, at value (cost $47,695, $20,448, $58,337 and $2,701, respectively)

     47,674        20,414        57,540        2,652  

Receivables:

           

Dividends

     131,406        354,619        35,314        7,019  

Variation margin on futures contracts

     527        4,994        421         

Deposits with brokers for:

           

Futures contracts

     9,330        43,691        3,379         

Unrealized appreciation on OTC forward exchange contracts

                   463,463         

Other assets

            122        36         
  

 

 

 

Total assets

     91,558,552        36,557,642        14,701,753        6,590,502  
  

 

 

 

Liabilities:

           

Payables:

           

Investment securities purchased

                   456,599         

Management fees

     15,649        2,518        1,099        577  

Funds advanced by custodian

     58,531               30,607        2,603  

Unrealized depreciation on OTC forward exchange contracts

                   9,551         
  

 

 

 

Total liabilities

     74,180        2,518        497,856        3,180  
  

 

 

 

Net assets, at value

   $ 91,484,372      $ 36,555,124      $ 14,203,897      $ 6,587,322  
  

 

 

 

Net assets consist of:

           

Paid-in capital

   $ 154,199,656      $ 50,687,177      $ 17,257,761      $ 8,740,296  

Total distributable earnings (loss)

     (62,715,284      (14,132,053      (3,053,864      (2,152,974
  

 

 

 

Net assets, at value

   $ 91,484,372      $ 36,555,124      $ 14,203,897      $ 6,587,322  
  

 

 

 

Shares outstanding

     5,400,000        1,800,000        600,000        300,000  
  

 

 

 

Net asset value per share

   $ 16.94      $ 20.31      $ 23.67      $ 21.96  
  

 

 

 

 

           
284             

Semiannual Report    |   The accompanying notes are an integral part of these financial statements.

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FRANKLIN TEMPLETON ETF TRUST

FINANCIAL STATEMENTS

 

Statements of Assets and Liabilities (continued)

September 30, 2022 (unaudited)

 

 

      Franklin FTSE
Germany ETF
     Franklin FTSE
Hong Kong ETF
     Franklin FTSE
India ETF
     Franklin FTSE
Italy ETF
 

Assets:

           

Investments in securities:

           

Cost – Unaffiliated issuers

   $ 19,708,863      $ 15,063,230      $ 49,608,914      $ 3,322,879  

Value – Unaffiliated issuers

   $ 13,157,450      $ 11,180,353      $ 53,998,101      $ 2,678,906  

Cash

     3,924        417               360  

Foreign currency, at value (cost $6,569, $30,206, $20,278 and $1,998, respectively)

     6,439        30,204        20,274        1,982  

Receivables:

           

Dividends

            37,263        17,053         

Investment securities sold

                   37,263         

Variation margin on futures contracts

            160                

Deposits with brokers for:

           

Futures contracts

            6,750        10         
  

 

 

 

Total assets

     13,167,813        11,255,147        54,072,701        2,681,248  
  

 

 

 

Liabilities:

           

Payables:

           

Investment securities purchased

                   16,620         

Management fees

     966        900        8,670        211  

Funds advanced by custodian

                   42,473         

Deferred tax

                   680,011         
  

 

 

 

Total liabilities

     966        900        747,774        211  
  

 

 

 

Net assets, at value

   $ 13,166,847      $ 11,254,247      $ 53,324,927      $ 2,681,037  
  

 

 

 

Net assets consist of:

           

Paid-in capital

   $ 20,206,663      $ 16,156,328      $ 52,135,669      $ 3,728,641  

Total distributable earnings (loss)

     (7,039,816      (4,902,081      1,189,258        (1,047,604
  

 

 

 

Net assets, at value

   $ 13,166,847      $ 11,254,247      $ 53,324,927      $ 2,681,037  
  

 

 

 

Shares outstanding

     850,000        600,000        1,850,000        150,000  
  

 

 

 

Net asset value per share

   $ 15.49      $ 18.76      $ 28.82      $ 17.87  
  

 

 

 

 

           
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The accompanying notes are an integral part of these financial statements.    |   Semiannual Report

             285


FRANKLIN TEMPLETON ETF TRUST

FINANCIAL STATEMENTS

 

Statements of Assets and Liabilities (continued)

September 30, 2022 (unaudited)

 

 

      Franklin FTSE
Japan ETF
     Franklin FTSE
Japan Hedged ETF
     Franklin FTSE
Latin America ETF
     Franklin FTSE
Mexico ETF
 

Assets:

           

Investments in securities:

           

Cost – Unaffiliated issuers

   $ 1,002,459,019      $ 29,743,748      $ 60,334,216      $ 10,126,558  

Cost – Non-controlled affiliates (Note 3c)

     392,360        272,885                

Value – Unaffiliated issuers

   $ 769,637,967      $ 22,742,013      $ 60,701,960      $ 9,936,121  

Value – Non-controlled affiliates (Note 3c)

     392,360        272,885                

Cash

     3               129,046        470  

Foreign currency, at value (cost $349,368 and $6,195, respectively)

     348,532        6,187                

Receivables:

           

Dividends

     7,376,935        210,085        197,230        65,668  

Deposits with brokers for:

           

Futures contracts

     401,050        10,695        54,139         

Unrealized appreciation on OTC forward exchange contracts

            1,093,663                
  

 

 

 

Total assets

     778,156,847        24,335,528        61,082,375        10,002,259  
  

 

 

 

Liabilities:

           

Payables:

           

Investment securities purchased

            954,798        37,284        28,649  

Management fees

     60,121        1,777        9,976        1,573  

Variation margin on futures contracts

     124,351        3,319        9,263         

Funds advanced by custodian

            259,997                

Foreign currency advanced by custodian

                   52,059        26,179  

Unrealized depreciation on OTC forward exchange contracts

            11,176                

Accrued expenses and other liabilities

                   252         
  

 

 

 

Total liabilities

     184,472        1,231,067        108,834        56,401  
  

 

 

 

Net assets, at value

   $ 777,972,375      $ 23,104,461      $ 60,973,541      $ 9,945,858  
  

 

 

 

Net assets consist of:

           

Paid-in capital

   $ 1,019,094,736      $ 26,243,566      $ 59,414,204      $ 10,460,130  

Total distributable earnings (loss)

     (241,122,361      (3,139,105      1,559,337        (514,272
  

 

 

 

Net assets, at value

   $ 777,972,375      $ 23,104,461      $ 60,973,541      $ 9,945,858  
  

 

 

 

Shares outstanding

     36,000,000        800,000        3,100,000        450,000  
  

 

 

 

Net asset value per share

   $ 21.61      $ 28.88      $ 19.67      $ 22.10  
  

 

 

 

 

           
286             

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FRANKLIN TEMPLETON ETF TRUST

FINANCIAL STATEMENTS

 

Statements of Assets and Liabilities (continued)

September 30, 2022 (unaudited)

 

 

      Franklin FTSE
Russia ETF
     Franklin FTSE
Saudi Arabia ETF
     Franklin FTSE
South Africa ETF
     Franklin FTSE
South Korea ETF
 

Assets:

           

Investments in securities:

           

Cost – Unaffiliated issuers

   $ 22,476,787      $ 4,370,666      $ 3,808,391      $ 63,495,882  

Value – Unaffiliated issuers

   $      $ 5,448,215      $ 2,950,631      $ 43,835,235  

Cash

     4,500        101                

Foreign currency, at value (cost $5,246, $11,038 and $2,671, respectively)

            5,250        11,082        2,631  

Receivables:

           

Dividends

            5,914        8,047        78,542  

Affiliates

     82                       

Deposits with brokers for:

           

Futures contracts

                          8,997  

Other assets

     82                      3,264  
  

 

 

 

Total assets

     4,664        5,459,480        2,969,760        43,928,669  
  

 

 

 

Liabilities:

           

Payables:

           

Management fees

            1,472        637        3,551  

Variation margin on futures contracts

                          1,647  

Funds advanced by custodian

                   18,868        10,825  
  

 

 

 

Total liabilities

            1,472        19,505        16,023  
  

 

 

 

Net assets, at value

   $ 4,664      $ 5,458,008      $ 2,950,255      $ 43,912,646  
  

 

 

 

Net assets consist of:

           

Paid-in capital

   $ 23,177,931      $ 4,366,705      $ 4,028,309      $ 74,619,328  

Total distributable earnings (loss)

     (23,173,267      1,091,303        (1,078,054      (30,706,682
  

 

 

 

Net assets, at value

   $ 4,664      $ 5,458,008      $ 2,950,255      $ 43,912,646  
  

 

 

 

Shares outstanding

     800,000        150,000        150,000        2,600,000  
  

 

 

 

Net asset value per share

   $ 0.01 1     $ 36.39      $ 19.67      $ 16.89  
  

 

 

 

 

1Actual amount less than $0.01 per share. Amount shown reflects effect of rounding.

 

           
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             287


FRANKLIN TEMPLETON ETF TRUST

FINANCIAL STATEMENTS

 

Statements of Assets and Liabilities (continued)

September 30, 2022 (unaudited)

 

 

      Franklin FTSE
Switzerland ETF
     Franklin FTSE
Taiwan ETF
     Franklin FTSE
United Kingdom ETF
 

Assets:

 

Investments in securities:

 

Cost – Unaffiliated issuers

   $ 56,620,228      $ 27,057,905      $ 508,915,285  

Cost – Non-controlled affiliates (Note 3c)

                   273,000  

Value – Unaffiliated issuers+

   $ 49,266,798      $ 27,726,628      $ 386,700,511  

Value – Non-controlled affiliates (Note 3c)

                   273,000  

Cash

     15,628        235        183,345  

Foreign currency, at value (cost $64,370, $91,017 and $2,453,368, respectively)

     63,836        90,647        2,457,240  

Receivables:

        

Dividends

     636,272        51,099        971,902  

Investment securities sold

            3,008,546        5,796,643  

Variation margin on futures contracts

     9,406               19,711  

Deposits with brokers for:

        

Futures contracts

     53,398        5,720        232,635  
  

 

 

 

Total assets

     50,045,338        30,882,875        396,634,987  
  

 

 

 

Liabilities:

        

Payables:

        

Capital shares redeemed

            3,088,871        5,852,699  

Management fees

     3,672        5,285        35,647  

Variation margin on futures contracts

            947         

Payable upon return of securities loaned

                   273,000  
  

 

 

 

Total liabilities

     3,672        3,095,103        6,161,346  
  

 

 

 

Net assets, at value

   $ 50,041,666      $ 27,787,772      $ 390,473,641  
  

 

 

 

Net assets consist of:

        

Paid-in capital

   $ 58,423,427      $ 27,933,402      $ 517,666,536  

Total distributable earnings (loss)

     (8,381,761      (145,630      (127,192,895
  

 

 

 

Net assets, at value

   $ 50,041,666      $ 27,787,772      $ 390,473,641  
  

 

 

 

Shares outstanding

     1,900,000        900,000        19,750,000  
  

 

 

 

Net asset value per share

   $ 26.34      $ 30.88      $ 19.77  
  

 

 

 

+Includes securities loaned

                 $ 258,853  

 

           
288             

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FRANKLIN TEMPLETON ETF TRUST

FINANCIAL STATEMENTS

 

Statements of Operations

for the period ended September 30, 2022 (unaudited)

 

 

     Franklin FTSE
Asia ex Japan ETF
    Franklin FTSE
Australia ETF
    Franklin FTSE
Brazil ETF
    Franklin FTSE
Canada ETF
 

Investment income:

       

Dividends: (net of foreign taxes)a

       

Unaffiliated issuers

  $ 667,810     $ 1,058,630     $ 25,194,990     $ 2,944,553  

Interest:

       

Unaffiliated issuers

    147                    

Interest from securities loaned (Note 1d):

       

Unaffiliated issuers (net of fees and rebates)

    22                    
 

 

 

 

Total investment income

    667,979       1,058,630       25,194,990       2,944,553  
 

 

 

 

Expenses:

       

Management fees (Note 3a)

    33,498       12,196       322,160       84,441  
 

 

 

 

Total expenses

    33,498       12,196       322,160       84,441  

Expenses waived/paid by affiliates (Note 3c)

    (83                  
 

 

 

 

Net expenses

    33,415       12,196       322,160       84,441  
 

 

 

 

Net investment income

    634,564       1,046,434       24,872,830       2,860,112  
 

 

 

 

Realized and unrealized gains (losses):

       

Net realized gain (loss) from:

       

Investments:

       

Unaffiliated issuers

    (626,751     (360,009     (67,283,022     (1,237,263

In-kind redemptions

                      4,103,296  

Foreign currency transactions

    (11,830     (24,660     (1,250,479     (34,643

Futures contracts

    (41,334     6,546       (1,608,425     19,482  
 

 

 

 

Net realized gain (loss)

    (679,915     (378,123     (70,141,926     2,850,872  
 

 

 

 

Net change in unrealized appreciation (depreciation) on:

       

Investments:

       

Unaffiliated issuers

    (8,273,349     (7,858,469     (49,813,914     (50,177,295

Translation of other assets and liabilities denominated in foreign currencies

    331       (12,575     (210,147     (17,449

Futures contracts

          (30,610     (301,747     (27,595

Change in deferred taxes on unrealized appreciation .

    32,817                    
 

 

 

 

Net change in unrealized appreciation (depreciation)

    (8,240,201     (7,901,654     (50,325,808     (50,222,339
 

 

 

 

Net realized and unrealized gain (loss)

    (8,920,116     (8,279,777     (120,467,734     (47,371,467
 

 

 

 

Net increase (decrease) in net assets resulting from operations

  $ (8,285,552   $ (7,233,343   $ (95,594,904   $ (44,511,355
 

 

 

 

 

 

aForeign taxes withheld on dividends

  $ 87,538     $ 6,194     $ 647,525     $ 519,619  
 

 

 

 

 

           
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             289


FRANKLIN TEMPLETON ETF TRUST

FINANCIAL STATEMENTS

 

Statements of Operations (continued)

for the period ended September 30, 2022 (unaudited)

 

 

     Franklin FTSE
China ETF
    Franklin FTSE
Europe ETF
    Franklin FTSE
Europe Hedged ETF
    Franklin FTSE
France ETF
 

Investment income:

       

Dividends: (net of foreign taxes)a

       

Unaffiliated issuers

  $ 2,286,484     $ 2,564,949     $ 415,515     $ 200,539  

Interest:

       

Unaffiliated issuers

    699                    

Interest from securities loaned (Note 1d):

       

Unaffiliated issuers (net of fees and rebates)

    262                    
 

 

 

 

Total investment income

    2,287,445       2,564,949       415,515       200,539  
 

 

 

 

Expenses:

       

Management fees (Note 3a)

    101,032       45,740       8,738       3,997  

Other

          300       27       1  
 

 

 

 

Total expenses

    101,032       46,040       8,765       3,998  

Expenses waived/paid by affiliates (Note 3c)

    (85           (19      
 

 

 

 

Net expenses

    100,947       46,040       8,746       3,998  
 

 

 

 

Net investment income

    2,186,498       2,518,909       406,769       196,541  
 

 

 

 

Realized and unrealized gains (losses):

       

Net realized gain (loss) from:

       

Investments:

       

Unaffiliated issuers

    (4,280,868     (1,491,768     (356,831     (157,529

In-kind redemptions

          6,498,626       308,341       (981

Foreign currency transactions

    (6,565     (46,836     (9,780     (2,082

Forward exchange contracts

                2,400,365        

Futures contracts

    (167,578     (16,286     (5,566     (552
 

 

 

 

Net realized gain (loss)

    (4,455,011     4,943,736       2,336,529       (161,144
 

 

 

 

Net change in unrealized appreciation (depreciation) on:

       

Investments:

       

Unaffiliated issuers

    (21,031,771     (32,791,800     (6,005,471     (2,196,188

Translation of other assets and liabilities denominated in foreign currencies

    75       (31,446     (3,021     (219

Futures contracts

    (10,265     (104,736     (2,661      

Forward exchange contracts

                231,381        
 

 

 

 

Net change in unrealized appreciation (depreciation)

    (21,041,961     (32,927,982     (5,779,772     (2,196,407
 

 

 

 

Net realized and unrealized gain (loss)

    (25,496,972     (27,984,246     (3,443,243     (2,357,551
 

 

 

 

Net increase (decrease) in net assets resulting from operations

  $ (23,310,474   $ (25,465,337   $ (3,036,474   $ (2,161,010
 

 

 

 

 

 

aForeign taxes withheld on dividends

  $ 189,463     $ 335,429     $ 54,791     $ 34,284  
 

 

 

 

 

           
290             

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FRANKLIN TEMPLETON ETF TRUST

FINANCIAL STATEMENTS

 

Statements of Operations (continued)

for the period ended September 30, 2022 (unaudited)

 

 

      Franklin FTSE
Germany ETF
     Franklin FTSE
Hong Kong ETF
     Franklin FTSE
India ETF
     Franklin FTSE
Italy ETF
 

Investment income:

           

Dividends: (net of foreign taxes)a

           

Unaffiliated issuers

   $ 360,215      $ 390,609      $ 390,234      $ 96,363  

Interest:

           

Unaffiliated issuers

                          31  
  

 

 

 

Total investment income

     360,215        390,609        390,234        96,394  
  

 

 

 

Expenses:

           

Management fees (Note 3a)

     5,835        6,559        50,462        1,427  

Other

     22                       
  

 

 

 

Total expenses

     5,857        6,559        50,462        1,427  
  

 

 

 

Net investment income

     354,358        384,050        339,772        94,967  
  

 

 

 

Realized and unrealized gains (losses):

           

Net realized gain (loss) from:

           

Investments:

           

Unaffiliated issuers

     (306,423      (662,705      (398,053      (18,725

In-kind redemptions

     293,599        210,305                

Foreign currency transactions

     (1,665      (171      (15,539      (1,334

Futures contracts

     (10,835      (7,727      8,288         
  

 

 

 

Net realized gain (loss)

     (25,324      (460,298      (405,304      (20,059
  

 

 

 

Net change in unrealized appreciation (depreciation) on:

           

Investments:

           

Unaffiliated issuers

     (4,771,967      (2,670,835      (4,538,293      (1,006,288

Translation of other assets and liabilities denominated in foreign currencies

     (252      35        (383      7  

Futures contracts

            (2,790      (1,364       

Change in deferred taxes on unrealized appreciation

                   282,670         
  

 

 

 

Net change in unrealized appreciation (depreciation)

     (4,772,219      (2,673,590      (4,257,370      (1,006,281
  

 

 

 

Net realized and unrealized gain (loss)

     (4,797,543      (3,133,888      (4,662,674      (1,026,340
  

 

 

 

Net increase (decrease) in net assets resulting from operations

   $ (4,443,185    $ (2,749,838    $ (4,322,902    $ (931,373
  

 

 

 

 

 

aForeign taxes withheld on dividends

   $ 54,657      $ 322      $ 120,042      $ 16,252  
  

 

 

 

 

           
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             291


FRANKLIN TEMPLETON ETF TRUST

FINANCIAL STATEMENTS

 

Statements of Operations (continued)

for the period ended September 30, 2022 (unaudited)

 

 

     Franklin FTSE
Japan ETF
    Franklin FTSE
Japan Hedged ETF
    Franklin FTSE
Latin America ETF
    Franklin FTSE
Mexico ETF
 

Investment income:

       

Dividends: (net of foreign taxes)a

       

Unaffiliated issuers

  $ 9,566,709     $ 275,980     $ 2,195,569     $ 279,025  
 

 

 

 

Total investment income

    9,566,709       275,980       2,195,569       279,025  
 

 

 

 

Expenses:

 

Management fees (Note 3a)

    345,667       10,852       31,269       9,699  

Other

    147       5              
 

 

 

 

Total expenses

    345,814       10,857       31,269       9,699  

Expenses waived/paid by affiliates (Note 3c)

    (770     (114            
 

 

 

 

Net expenses

    345,044       10,743       31,269       9,699  
 

 

 

 

Net investment income

    9,221,665       265,237       2,164,300       269,326  
 

 

 

 

Realized and unrealized gains (losses):

       

Net realized gain (loss) from:

       

Investments:

       

Unaffiliated issuers

    (6,964,317     (778,530     (224,883     (107,145

In-kind redemptions

    5,332,608                   462,021  

Foreign currency transactions

    (1,012,262     (33,885     (129,548     (1,237

Forward exchange contracts

          3,894,512              

Futures contracts

    (144,459     (13,148     (30,378      
 

 

 

 

Net realized gain (loss)

    (2,788,430     3,068,949       (384,809     353,639  
 

 

 

 

Net change in unrealized appreciation (depreciation) on:

       

Investments:

       

Unaffiliated issuers

    (188,140,700     (4,736,283     (496,933     (2,787,536

Translation of other assets and liabilities denominated in foreign currencies

    (50,259     (1,968     (5,246     396  

Futures contracts

    (194,653     (3,463     (10,285      

Forward exchange contracts

          532,139              
 

 

 

 

Net change in unrealized appreciation (depreciation)

    (188,385,612     (4,209,575     (512,464     (2,787,140
 

 

 

 

Net realized and unrealized gain (loss)

    (191,174,042     (1,140,626     (897,273     (2,433,501
 

 

 

 

Net increase (decrease) in net assets resulting from operations

  $ (181,952,377   $ (875,389   $ 1,267,027     $ (2,164,175
 

 

 

 

 

 

aForeign taxes withheld on dividends

  $ 1,060,774     $ 30,532     $ 72,637     $ 18,038  
 

 

 

 

 

           
292             

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FRANKLIN TEMPLETON ETF TRUST

FINANCIAL STATEMENTS

 

Statements of Operations (continued)

for the period ended September 30, 2022 (unaudited)

 

 

     Franklin FTSE
Russia ETF
    Franklin FTSE
Saudi Arabia ETF
    Franklin FTSE
South Africa ETF
    Franklin FTSE
South Korea ETF
 

Investment income:

       

Dividends: (net of foreign taxes)a

       

Unaffiliated issuers

  $ 2,048     $ 70,972     $ 103,052     $ 257,195  

Non-cash dividends

                24,173        

Interest:

       

Unaffiliated issuers

    81                   9  
 

 

 

 

Total investment income

    2,129       70,972       127,225       257,204  
 

 

 

 

Expenses:

       

Management fees (Note 3a)

          7,955       4,526       24,574  
 

 

 

 

Total expenses

          7,955       4,526       24,574  
 

 

 

 

Net investment income

    2,129       63,017       122,699       232,630  
 

 

 

 

Realized and unrealized gains (losses):

       

Net realized gain (loss) from:

       

Investments:

       

Unaffiliated issuers

          (9,485     (85,356     (1,427,796

In-kind redemptions

                124,789        

Foreign currency transactions

    (167     108       (2,336     (68,604

Forward exchange contracts

          (28            

Futures contracts

                      (36,280
 

 

 

 

Net realized gain (loss)

    (167     (9,405     37,097       (1,532,680
 

 

 

 

Net change in unrealized appreciation (depreciation) on:

       

Investments:

       

Unaffiliated issuers

          (576,837     (2,071,645     (20,362,231

Translation of other assets and liabilities denominated in foreign currencies

          6       84       16,421  

Futures contracts

                      (38,433
 

 

 

 

Net change in unrealized appreciation (depreciation)

          (576,831     (2,071,561     (20,384,243
 

 

 

 

Net realized and unrealized gain (loss)

    (167     (586,236     (2,034,464     (21,916,923
 

 

 

 

Net increase (decrease) in net assets resulting from operations

  $ 1,962     $ (523,219   $ (1,911,765   $ (21,684,293
 

 

 

 

 

 

aForeign taxes withheld on dividends

  $ (2,048   $ 3,457     $ 18,068     $ 51,760  
 

 

 

 

 

           
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FRANKLIN TEMPLETON ETF TRUST

FINANCIAL STATEMENTS

 

Statements of Operations (continued)

for the period ended September 30, 2022 (unaudited)

 

 

      Franklin FTSE
Switzerland ETF
     Franklin FTSE
Taiwan ETF
     Franklin FTSE
United Kingdom ETF
 

Investment income:

        

Dividends: (net of foreign taxes)a

        

Unaffiliated issuers

   $ 658,472      $ 1,399,710      $ 12,860,185  

Interest:

        

Unaffiliated issuers

            119        1,178  

Interest from securities loaned (Note 1d):

        

Unaffiliated issuers (net of fees and rebates)

                   5,724  

Non-Controlled affiliates (Note 3c)

                   1,503  
  

 

 

 

Total investment income

     658,472        1,399,829        12,868,590  
  

 

 

 

Expenses:

        

Management fees (Note 3a)

     22,314        35,642        240,297  

Other

     333                
  

 

 

 

Total expenses

     22,647        35,642        240,297  

Expenses waived/paid by affiliates (Note 3c)

                   (603
  

 

 

 

Net expenses

     22,647        35,642        239,694  
  

 

 

 

Net investment income

     635,825        1,364,187        12,628,896  
  

 

 

 

Realized and unrealized gains (losses):

        

Net realized gain (loss) from:

        

Investments:

        

Unaffiliated issuers

     (488,183      (1,393,031      (6,258,629

In-kind redemptions

                   2,975,345  

Foreign currency transactions

     4,279        (27,659      (727,190

Futures contracts

     (106,148      6,016        43,771  
  

 

 

 

Net realized gain (loss)

     (590,052      (1,414,674      (3,966,703
  

 

 

 

Net change in unrealized appreciation (depreciation) on:

        

Investments:

        

Unaffiliated issuers

     (11,098,614      (12,730,974      (131,147,185

Translation of other assets and liabilities denominated in foreign currencies

     (38,284      671        (29,905

Futures contracts

     (66,572      (4,144      (467,356
  

 

 

 

Net change in unrealized appreciation (depreciation)

     (11,203,470      (12,734,447      (131,644,446
  

 

 

 

Net realized and unrealized gain (loss)

     (11,793,522      (14,149,121      (135,611,149
  

 

 

 

Net increase (decrease) in net assets resulting from operations

   $ (11,157,697    $ (12,784,934    $ (122,982,253
  

 

 

 

 

 

aForeign taxes withheld on dividends

   $ 98,683      $ 347,840      $ 18,322  
  

 

 

 

 

           
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FRANKLIN TEMPLETON ETF TRUST

FINANCIAL STATEMENTS

 

Statements of Changes in Net Assets

 

 

     Franklin FTSE Asia ex Japan ETF      Franklin FTSE Australia ETF  
      Six Months Ended
September 30, 2022
(unaudited)
     Year Ended
March 31, 2022
     Six Months Ended
September 30, 2022
(unaudited)
     Year Ended
March 31, 2022
 

Increase (decrease) in net assets:

           

Operations:

           

Net investment income

   $ 634,564      $ 664,421      $ 1,046,434      $ 1,235,873  

Net realized gain (loss)

     (679,915      (979,634      (378,123      (464,945

Net change in unrealized appreciation (depreciation)

     (8,240,201      (3,275,420      (7,901,654      2,892,489  
  

 

 

 

Net increase (decrease) in net assets resulting from operations

     (8,285,552      (3,590,633      (7,233,343      3,663,417  
  

 

 

 

Distributions to shareholders (Note 1f)

     (179,723      (744,268      (890,273      (1,262,140
  

 

 

 

Capital share transactions: (Note 2)

            8,769,376        1,481,449        4,271,838  
  

 

 

 

Net increase (decrease) in net assets

     (8,465,275      4,434,475        (6,642,167      6,673,115  

Net assets:

           

Beginning of period

     38,751,051        34,316,576        29,968,184        23,295,069  
  

 

 

 

End of period

   $ 30,285,776      $ 38,751,051      $ 23,326,017      $ 29,968,184  
  

 

 

 

 

           
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FRANKLIN TEMPLETON ETF TRUST

FINANCIAL STATEMENTS

 

Statements of Changes in Net Assets (continued)

 

 

     Franklin FTSE Brazil ETF      Franklin FTSE Canada ETF  
      Six Months Ended
September 30, 2022
(unaudited)
     Year Ended
March 31, 2022
     Six Months Ended
September 30, 2022
(unaudited)
     Year Ended
March 31, 2022
 

Increase (decrease) in net assets:

           

Operations:

           

Net investment income

   $ 24,872,830      $ 20,729,461      $ 2,860,112      $ 725,501  

Net realized gain (loss)

     (70,141,926      (18,881,968      2,850,872        (201,770

Net change in unrealized appreciation (depreciation)

     (50,325,808      69,556,549        (50,222,339      5,384,898  
  

 

 

 

Net increase (decrease) in net assets resulting from operations

     (95,594,904      71,404,042        (44,511,355      5,908,629  
  

 

 

 

Distributions to shareholders (Note 1f)

     (19,382,271      (16,614,538      (353,032      (639,656
  

 

 

 

Capital share transactions: (Note 2)

     (132,641,830      365,373,593        260,436,831        13,859,588  
  

 

 

 

Net increase (decrease) in net assets

     (247,619,005      420,163,097        215,572,444        19,128,561  

Net assets:

           

Beginning of period

     527,819,503        107,656,406        43,288,811        24,160,250  
  

 

 

 

End of period

   $ 280,200,498      $ 527,819,503      $ 258,861,255      $ 43,288,811  
  

 

 

 

 

           
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FRANKLIN TEMPLETON ETF TRUST

FINANCIAL STATEMENTS

 

Statements of Changes in Net Assets (continued)

 

 

     Franklin FTSE China ETF      Franklin FTSE Europe ETF  
      Six Months Ended
September 30, 2022
(unaudited)
     Year Ended
March 31, 2022
     Six Months Ended
September 30, 2022
(unaudited)
     Year Ended
March 31, 2022
 

Increase (decrease) in net assets:

           

Operations:

           

Net investment income

   $ 2,186,498      $ 2,209,264      $ 2,518,909      $ 6,105,734  

Net realized gain (loss)

     (4,455,011      (4,775,014      4,943,736        26,177,110  

Net change in unrealized appreciation (depreciation)

     (21,041,961      (42,274,445      (32,927,982      (24,258,897
  

 

 

 

Net increase (decrease) in net assets resulting from operations

     (23,310,474      (44,840,195      (25,465,337      8,023,947  
  

 

 

 

Distributions to shareholders (Note 1f)

     (728,166      (1,744,579      (2,772,187      (7,497,235
  

 

 

 

Capital share transactions: (Note 2)

     4,069,254        37,256,442        (120,064,434      (44,796,057
  

 

 

 

Net increase (decrease) in net assets

     (19,969,386      (9,328,332      (148,301,958      (44,269,345

Net assets:

           

Beginning of period

     111,453,758        120,782,090        184,857,082        229,126,427  
  

 

 

 

End of period

   $ 91,484,372      $ 111,453,758      $ 36,555,124      $ 184,857,082  
  

 

 

 

 

           
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FRANKLIN TEMPLETON ETF TRUST

FINANCIAL STATEMENTS

 

Statements of Changes in Net Assets (continued)

 

 

     Franklin FTSE Europe Hedged ETF      Franklin FTSE France ETF  
      Six Months Ended
September 30, 2022
(unaudited)
     Year Ended
March 31, 2022
     Six Months Ended
September 30, 2022
(unaudited)
     Year Ended
March 31, 2022
 

Increase (decrease) in net assets:

           

Operations:

           

Net investment income

   $ 406,769      $ 515,076      $ 196,541      $ 268,585  

Net realized gain (loss)

     2,336,529        758,844        (161,144      (84,036

Net change in unrealized appreciation (depreciation)

     (5,779,772      (221,066      (2,196,407      (57,195
  

 

 

 

Net increase (decrease) in net assets resulting from operations

     (3,036,474      1,052,854        (2,161,010      127,354  
  

 

 

 

Distributions to shareholders (Note 1f)

     (284,556      (666,937      (159,161      (270,848
  

 

 

 

Capital share transactions: (Note 2)

     (4,169,746      5,879,630        (1,180,388      3,120,862  
  

 

 

 

Net increase (decrease) in net assets

     (7,490,776      6,265,547        (3,500,559      2,977,368  

Net assets:

           

Beginning of period

     21,694,673        15,429,126        10,087,881        7,110,513  
  

 

 

 

End of period

   $ 14,203,897      $ 21,694,673      $ 6,587,322      $ 10,087,881  
  

 

 

 

 

           
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FRANKLIN TEMPLETON ETF TRUST

FINANCIAL STATEMENTS

 

Statements of Changes in Net Assets (continued)

 

 

     Franklin FTSE Germany ETF      Franklin FTSE Hong Kong ETF  
      Six Months Ended
September 30, 2022
(unaudited)
     Year Ended
March 31, 2022
     Six Months Ended
September 30, 2022
(unaudited)
     Year Ended
March 31, 2022
 

Increase (decrease) in net assets:

           

Operations:

           

Net investment income

   $ 354,358      $ 423,991      $ 384,050      $ 489,122  

Net realized gain (loss)

     (25,324      (191,927      (460,298      (407,601

Net change in unrealized appreciation (depreciation)

     (4,772,219      (2,762,955      (2,673,590      (2,850,341
  

 

 

 

Net increase (decrease) in net assets resulting from operations

     (4,443,185      (2,530,891      (2,749,838      (2,768,820
  

 

 

 

Distributions to shareholders (Note 1f)

     (385,657      (404,523      (249,606      (478,429
  

 

 

 

Capital share transactions: (Note 2)

     1,220,980        10,617,319        (3,319,699      3,959,042  
  

 

 

 

Net increase (decrease) in net assets

     (3,607,862      7,681,905        (6,319,143      711,793  

Net assets:

           

Beginning of period

     16,774,709        9,092,804        17,573,390        16,861,597  
  

 

 

 

End of period

   $ 13,166,847      $ 16,774,709      $ 11,254,247      $ 17,573,390  
  

 

 

 

 

           
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FRANKLIN TEMPLETON ETF TRUST

FINANCIAL STATEMENTS

 

Statements of Changes in Net Assets (continued)

 

 

     Franklin FTSE India ETF      Franklin FTSE Italy ETF  
      Six Months Ended
September 30, 2022
(unaudited)
     Year Ended
March 31, 2022
     Six Months Ended
September 30, 2022
(unaudited)
     Year Ended
March 31, 2022
 

Increase (decrease) in net assets:

           

Operations:

           

Net investment income

   $ 339,772      $ 318,604      $ 94,967      $ 127,754  

Net realized gain (loss)

     (405,304      (535,539      (20,059      (26,481

Net change in unrealized appreciation (depreciation)

     (4,257,370      3,883,589        (1,006,281      (211,281
  

 

 

 

Net increase (decrease) in net assets resulting from operations

     (4,322,902      3,666,654        (931,373      (110,008
  

 

 

 

Distributions to shareholders (Note 1f)

            (1,055,912      (85,702      (166,253
  

 

 

 

Capital share transactions: (Note 2)

     7,507,913        23,985,026                
  

 

 

 

Net increase (decrease) in net assets

     3,185,011        26,595,768        (1,017,075      (276,261

Net assets:

           

Beginning of period

     50,139,916        23,544,148        3,698,112        3,974,373  
  

 

 

 

End of period

   $ 53,324,927      $ 50,139,916      $ 2,681,037      $ 3,698,112  
  

 

 

 

 

           
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FRANKLIN TEMPLETON ETF TRUST

FINANCIAL STATEMENTS

 

Statements of Changes in Net Assets (continued)

 

 

     Franklin FTSE Japan ETF      Franklin FTSE Japan Hedged ETF  
      Six Months Ended
September 30, 2022
(unaudited)
     Year Ended
March 31, 2022
     Six Months Ended
September 30, 2022
(unaudited)
     Year Ended
March 31, 2022
 

Increase (decrease) in net assets:

           

Operations:

           

Net investment income

   $ 9,221,665      $ 14,429,061      $ 265,237      $ 366,040  

Net realized gain (loss)

     (2,788,430      12,140,033        3,068,949        1,786,855  

Net change in unrealized appreciation (depreciation)

     (188,385,612      (89,344,816      (4,209,575      (2,137,629
  

 

 

 

Net increase (decrease) in net assets resulting from operations

     (181,952,377      (62,775,722      (875,389      15,266  
  

 

 

 

Distributions to shareholders (Note 1f)

     (7,811,752      (15,304,771      (739,945      (162,493
  

 

 

 

Capital share transactions: (Note 2)

     178,099,217        268,783,660               303,836  
  

 

 

 

Net increase (decrease) in net assets

     (11,664,912      190,703,167        (1,615,334      156,609  

Net assets:

           

Beginning of period

     789,637,287        598,934,120        24,719,795        24,563,186  
  

 

 

 

End of period

   $ 777,972,375      $ 789,637,287      $ 23,104,461      $ 24,719,795  
  

 

 

 

 

           
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FRANKLIN TEMPLETON ETF TRUST

FINANCIAL STATEMENTS

 

Statements of Changes in Net Assets (continued)

 

 

     Franklin FTSE Latin America ETF      Franklin FTSE Mexico ETF  
      Six Months Ended
September 30, 2022
(unaudited)
     Year Ended
March 31, 2022
     Six Months Ended
September 30, 2022
(unaudited)
     Year Ended
March 31, 2022
 

Increase (decrease) in net assets:

           

Operations:

           

Net investment income

   $ 2,164,300      $ 322,765      $ 269,326      $ 254,422  

Net realized gain (loss)

     (384,809      (234,913      353,639        (158,105

Net change in unrealized appreciation (depreciation)

     (512,464      1,079,782        (2,787,140      2,181,332  
  

 

 

 

Net increase (decrease) in net assets resulting from operations

     1,267,027        1,167,634        (2,164,175      2,277,649  
  

 

 

 

Distributions to shareholders (Note 1f)

     (239,701      (304,300      (135,990      (302,647
  

 

 

 

Capital share transactions: (Note 2)

     52,371,383        2,231,798        (126,002      4,861,121  
  

 

 

 

Net increase (decrease) in net assets

     53,398,709        3,095,132        (2,426,167      6,836,123  

Net assets:

           

Beginning of period

     7,574,832        4,479,700        12,372,025        5,535,902  
  

 

 

 

End of period

   $ 60,973,541      $ 7,574,832      $ 9,945,858      $ 12,372,025  
  

 

 

 

 

           
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FRANKLIN TEMPLETON ETF TRUST

FINANCIAL STATEMENTS

 

Statements of Changes in Net Assets (continued)

 

 

     Franklin FTSE Russia ETF      Franklin FTSE Saudi Arabia ETF  
      Six Months Ended
September 30, 2022
(unaudited)
     Year Ended
March 31, 2022
     Six Months Ended
September 30, 2022
(unaudited)
     Year Ended
March 31, 2022
 

Increase (decrease) in net assets:

           

Operations:

           

Net investment income

   $ 2,129      $ 1,109,115      $ 63,017      $ 62,016  

Net realized gain (loss)

     (167      (184,908      (9,405      42,036  

Net change in unrealized appreciation (depreciation)

            (23,581,497      (576,831      1,061,595  
  

 

 

 

Net increase (decrease) in net assets resulting from operations

     1,962        (22,657,290      (523,219      1,165,647  
  

 

 

 

Distributions to shareholders (Note 1f)

            (1,062,975      (33,263      (68,376
  

 

 

 

Capital share transactions: (Note 2)

            12,929,102        1,884,180         
  

 

 

 

Net increase (decrease) in net assets

     1,962        (10,791,163      1,327,698        1,097,271  

Net assets:

           

Beginning of period

     2,702        10,793,865        4,130,310        3,033,039  
  

 

 

 

End of period

   $ 4,664      $ 2,702      $ 5,458,008      $ 4,130,310  
  

 

 

 

 

           
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FRANKLIN TEMPLETON ETF TRUST

FINANCIAL STATEMENTS

 

Statements of Changes in Net Assets (continued)

 

 

     Franklin FTSE South Africa ETF      Franklin FTSE South Korea ETF  
      Six Months Ended
September 30, 2022
(unaudited)
     Year Ended
March 31, 2022
     Six Months Ended
September 30, 2022
(unaudited)
     Year Ended
March 31, 2022
 

Increase (decrease) in net assets:

           

Operations:

           

Net investment income

   $ 122,699      $ 141,667      $ 232,630      $ 1,268,057  

Net realized gain (loss)

     37,097        (81,742      (1,532,680      (5,450,316

Net change in unrealized appreciation (depreciation)

     (2,071,561      824,250        (20,384,243      (8,014,155
  

 

 

 

Net increase (decrease) in net assets resulting from operations

     (1,911,765      884,175        (21,684,293      (12,196,414
  

 

 

 

Distributions to shareholders (Note 1f)

     (119,737      (111,346      (184,893      (1,354,645
  

 

 

 

Capital share transactions: (Note 2)

     (975,988      2,562,673        4,420,390        11,946,711  
  

 

 

 

Net increase (decrease) in net assets

     (3,007,490      3,335,502        (17,448,796      (1,604,348

Net assets:

           

Beginning of period

     5,957,745        2,622,243        61,361,442        62,965,790  
  

 

 

 

End of period

   $ 2,950,255      $ 5,957,745      $ 43,912,646      $ 61,361,442  
  

 

 

 

 

           
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FRANKLIN TEMPLETON ETF TRUST

FINANCIAL STATEMENTS

 

Statements of Changes in Net Assets (continued)

 

 

     Franklin FTSE Switzerland ETF      Franklin FTSE Taiwan ETF  
      Six Months Ended
September 30, 2022
(unaudited)
     Year Ended
March 31, 2022
     Six Months Ended
September 30, 2022
(unaudited)
     Year Ended
March 31, 2022
 

Increase (decrease) in net assets:

           

Operations:

           

Net investment income

   $ 635,825      $ 999,855      $ 1,364,187      $ 990,911  

Net realized gain (loss)

     (590,052      3,329,359        (1,414,674      (550,668

Net change in unrealized appreciation (depreciation)

     (11,203,470      2,599,949        (12,734,447      2,783,522  
  

 

 

 

Net increase (decrease) in net assets resulting from operations

     (11,157,697      6,929,163        (12,784,934      3,223,765  
  

 

 

 

Distributions to shareholders (Note 1f)

     (923,204      (1,077,037      (4,973      (1,073,757
  

 

 

 

Capital share transactions: (Note 2)

     14,529,343        (6,828,650      (3,088,871      8,619,703  
  

 

 

 

Net increase (decrease) in net assets

     2,448,442        (976,524      (15,878,778      10,769,711  

Net assets:

           

Beginning of period

     47,593,224        48,569,748        43,666,550        32,896,839  
  

 

 

 

End of period

   $ 50,041,666      $ 47,593,224      $ 27,787,772      $ 43,666,550  
  

 

 

 

 

           
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FINANCIAL STATEMENTS

 

Statements of Changes in Net Assets (continued)

 

 

     Franklin FTSE United Kingdom ETF  
      Six Months Ended
September 30, 2022
(unaudited)
     Year Ended
March 31, 2022
 

Increase (decrease) in net assets:

     

Operations:

     

Net investment income

   $ 12,628,896      $ 15,398,911  

Net realized gain (loss)

     (3,966,703      (202,105

Net change in unrealized appreciation (depreciation)

     (131,644,446      8,007,752  
  

 

 

 

Net increase (decrease) in net assets resulting from operations

     (122,982,253      23,204,558  
  

 

 

 

Distributions to shareholders (Note 1f)

     (11,193,755      (11,671,197
  

 

 

 

Capital share transactions: (Note 2)

     (88,922,851      396,366,561  
  

 

 

 

Net increase (decrease) in net assets

     (223,098,859      407,899,922  

Net assets:

     

Beginning of period

     613,572,500        205,672,578  
  

 

 

 

End of period

   $ 390,473,641      $ 613,572,500  
  

 

 

 

 

           
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FRANKLIN TEMPLETON ETF TRUST

 

Notes to Financial Statements (unaudited)

 

1. Organization and Significant Accounting Policies

Franklin Templeton ETF Trust (Trust) is registered under the Investment Company Act of 1940 (1940 Act) as an open-end management investment company, consisting of forty-five separate funds, twenty-three of which are included in this report (Funds) and applies the specialized accounting and reporting guidance in U.S. Generally Accepted Accounting Principles (U.S. GAAP). Each of the Funds are an exchange traded fund (ETF) and seek to provide the investment results that closely correspond, before fees and expenses, to the performance of each Fund’s corresponding underlying index.

The following summarizes the Funds’ significant accounting policies.

a. Financial Instrument Valuation

The Fund’s investments in financial instruments are carried at fair value daily. Fair value is the price that would be received to sell an asset or paid to transfer a liability in an orderly transaction between market participants on the measurement date. The Fund calculates the net asset value (NAV) per share each business day as of 4 p.m. Eastern time or the regularly scheduled close of the New York Stock Exchange (NYSE), whichever is earlier. Under compliance policies and procedures approved by the Trust’s Board of Trustees (the Board), the Board has designated the Fund’s investment manager as the valuation designee and has responsibility for oversight of valuation. The investment manager is assisted by the Fund’s administrator in performing this responsibility, including leading the cross-functional Valuation Committee (VC).

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

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

representative market. Certain equity securities are valued based upon fundamental characteristics or relationships to similar securities.

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

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

Trading in securities on foreign securities stock exchanges and OTC markets may be completed before 4 p.m. Eastern time. In addition, trading in certain foreign markets may not take place on every Funds’ business day. Occasionally, events occur between the time at which trading in a foreign security is completed and 4 p.m. Eastern time that might call into question the reliability of the value of a portfolio security held by the Fund. As a result, differences may arise between the value of the Funds’ portfolio securities as determined at the foreign market close and the latest indications of value at 4 p.m. Eastern time. In order to minimize the potential for these differences, an independent pricing service may be used to adjust the Fund’s portfolio securities to the latest indications of fair value at 4 p.m. Eastern time. At September 30, 2022, certain securities may have been fair valued using these procedures, in which case the securities were categorized as Level 2 inputs within the fair value hierarchy (referred to as “market level fair value”).

When the last day of the reporting period is a non-business day, certain foreign markets may be open on those days that the Funds’ NAV is not calculated, which could result in

 

           
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NOTES TO FINANCIAL STATEMENTS (UNAUDITED)

 

1. Organization and Significant Accounting Policies (continued)

a. Financial Instrument Valuation (continued)

 

differences between the value of the Funds’ portfolio securities on the last business day and the last calendar day of the reporting period. Any significant security valuation changes due to an open foreign market are adjusted and reflected by the Funds for financial reporting purposes.

b. Foreign Currency Translation

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

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

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

c. Derivative Financial Instruments

Certain or all Funds invested in derivative financial instruments in order to manage risk or gain exposure to various other investments or markets. Derivatives are financial contracts based on an underlying or notional amount,

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

Derivative counterparty credit risk is managed through a formal evaluation of the creditworthiness of all potential counterparties. Certain or all Funds attempt to reduce their exposure to counterparty credit risk on OTC derivatives, whenever possible, by entering into International Swaps and Derivatives Association (ISDA) master agreements with certain counterparties. These agreements contain various provisions, including but not limited to collateral requirements, events of default, or early termination. Termination events applicable to the counterparty include certain deteriorations in the credit quality of the counterparty.

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

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

 

           
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FRANKLIN TEMPLETON ETF TRUST

NOTES TO FINANCIAL STATEMENTS (UNAUDITED)

 

delivered by the Fund or the counterparty the next business day, or within a few business days. Collateral pledged and/or received by the Fund, if any, is held in segregated accounts with the Fund’s custodian/counterparty broker and can be in the form of cash and/or securities. Unrestricted cash may be invested according to the Funds’ investment objectives. To the extent that the amounts due to the Fund from its counterparties are not subject to collateralization or are not fully collateralized, the Fund bears the risk of loss from counterparty non-performance.

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

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

See Note 8 regarding other derivative information.

d. Securities Lending

Certain or all Funds participate in an agency based securities lending program to earn additional income. The Fund receives cash collateral against the loaned securities in an amount equal to at least 102% of the fair value of the loaned securities. Collateral is maintained over the life of the loan in an amount not less than 100% of the fair value of loaned securities, as determined at the close of Fund business each day; any additional collateral required due to changes in security values is delivered to the Fund on the next business day. The collateral is deposited into a joint cash account with other funds and is used to invest in a money market fund managed by Franklin Advisers, Inc., an affiliate of the Funds. These securities received as collateral are held in segregated accounts with the Funds’ custodian.

The Fund cannot repledge or resell these securities received as collateral. As such, the non-cash collateral is excluded from the Statements of Assets and Liabilities. The Fund may receive income from the investment of cash collateral, in addition to lending fees and rebates paid by the borrower.

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

e. Income and Deferred Taxes

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

The Funds may be subject to foreign taxation related to income received, capital gains on the sale of securities and certain foreign currency transactions in the foreign jurisdictions in which the Funds invest. Foreign taxes, if any, are recorded based on the tax regulations and rates that exist in the foreign markets in which the Funds invest. When a capital gain tax is determined to apply, certain or all Funds record an estimated deferred tax liability in an amount that would be payable if the securities were disposed of on the valuation date.

Each Fund may recognize an income tax liability related to its uncertain tax positions under U.S. GAAP when the uncertain tax position has a less than 50% probability that it will be sustained upon examination by the tax authorities based on its technical merits. As of September 30, 2022, each Fund has determined that no tax liability is required in its financial statements related to uncertain tax positions for any open tax years (or expected to be taken in future tax years). Open tax years are those that remain subject to examination and are based on the statute of limitations in each jurisdiction in which the Fund invests.

f. Security Transactions, Investment Income, Expenses and Distributions

Security transactions are accounted for on trade date. Realized gains and losses on security transactions are determined on a specific identification basis. Interest Income and estimated expenses are accrued daily. Dividend income

 

           
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NOTES TO FINANCIAL STATEMENTS (UNAUDITED)

 

1. Organization and Significant Accounting Policies (continued)

f. Security Transactions, Investment Income, Expenses and Distributions (continued)

 

is recorded on the ex-dividend date except for certain dividends from securities where the dividend rate is not available. In such cases, the dividend is recorded as soon as the information is received by the Funds. Distributions to shareholders are recorded on the ex-dividend date. Distributable earnings are determined according to income tax regulations (tax basis) and may differ from earnings recorded in accordance with U.S. GAAP. These differences may be permanent or temporary. Permanent differences are reclassified among capital accounts to reflect their tax character. These reclassifications have no impact on net assets or the results of operations. Temporary differences are not reclassified, as they may reverse in subsequent periods.

Common expenses incurred by the Trust are allocated among the Funds based on the ratio of net assets of each Fund to the combined net assets of the Trust. Certain Fund specific expenses are allocated directly to the Fund that incurred the expense. These expenses are paid by the Fund or by the investment manager, as applicable, according to the terms of the unified management fee agreement.

g. Accounting Estimates

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

h. Guarantees and Indemnifications

Under the Trust’s organizational documents, its officers and trustees are indemnified by the Trust against certain liabilities arising out of the performance of their duties to the Trust. Additionally, in the normal course of business, the Trust, on behalf of the Funds, enters into contracts with service providers that contain general indemnification clauses. The

Trust’s maximum exposure under these arrangements is unknown as this would involve future claims that may be made against the Trust that have not yet occurred. Currently, the Trust expects the risk of loss to be remote.

2. Shares of Beneficial Interest

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

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

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

Effective 4 AM Eastern Time on March 4, 2022, the NYSE Arca, Inc. announced a trading halt of the Franklin FTSE Russia ETF. Effective March 1, 2022, the Franklin FTSE Russia ETF suspended new creations of its shares until further notice. Please refer to the prospectus for further detail.

 

           
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NOTES TO FINANCIAL STATEMENTS (UNAUDITED)

 

At September 30, 2022, there were an unlimited number of shares authorized (without par value). Transactions in the Funds’ shares were as follows:

 

     Franklin FTSE Asia ex Japan ETF  
    

Six Months Ended

September 30, 2022

           

Year Ended

March 31, 2022

 
      Shares      Amount             Shares      Amount  

Shares sold

          $          400,000      $ 8,769,376  
  

 

 

 

Net increase (decrease)

          $          400,000      $ 8,769,376  
  

 

 

 
     Franklin FTSE Australia ETF  
    

Six Months Ended

September 30, 2022

           

Year Ended

March 31, 2022

 
      Shares      Amount             Shares      Amount  

Shares sold

     50,000      $ 1,481,449          150,000      $ 4,271,838  
  

 

 

 

Net increase (decrease)

     50,000      $ 1,481,449          150,000      $ 4,271,838  
  

 

 

 
     Franklin FTSE Brazil ETF  
    

Six Months Ended

September 30, 2022

           

Year Ended

March 31, 2022

 
      Shares      Amount             Shares      Amount  

Shares sold

     2,500,000      $ 48,522,946          17,500,000      $ 372,085,342  

Shares redeemed

     (9,400,000      (181,164,776        (300,000      (6,711,749
  

 

 

 

Net increase (decrease)

     (6,900,000    $ (132,641,830        17,200,000      $ 365,373,593  
  

 

 

 
     Franklin FTSE Canada ETF  
    

Six Months Ended

September 30, 2022

           

Year Ended

March 31, 2022

 
      Shares      Amount             Shares      Amount  

Shares sold

     8,900,000      $ 287,702,352          400,000      $ 13,859,588  

Shares redeemed

     (900,000      (27,265,521                
  

 

 

 

Net increase (decrease)

     8,000,000      $ 260,436,831          400,000      $ 13,859,588  
  

 

 

 
     Franklin FTSE China ETF  
     Six Months Ended
September 30, 2022
           

Year Ended

March 31, 2022

 
      Shares      Amount             Shares      Amount  

Shares sold

     200,000      $ 4,069,254          1,600,000      $ 43,703,237  

Shares redeemed

                     (200,000      (6,446,795
  

 

 

 

Net increase (decrease)

     200,000      $ 4,069,254          1,400,000      $ 37,256,442  
  

 

 

 

 

           
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NOTES TO FINANCIAL STATEMENTS (UNAUDITED)

 

2. Shares of Beneficial Interest (continued)

 

     Franklin FTSE Europe ETF  
    

Six Months Ended

September 30, 2022

           

Year Ended

March 31, 2022

 
      Shares      Amount             Shares      Amount  

Shares sold

     400,000      $ 8,816,510          1,400,000      $ 38,599,643  

Shares redeemed

     (5,400,000      (128,880,944        (3,000,000      (83,395,700
  

 

 

 

Net increase (decrease)

     (5,000,000    $ (120,064,434        (1,600,000    $ (44,796,057
  

 

 

 
     Franklin FTSE Europe Hedged ETF  
    

Six Months Ended

September 30, 2022

           

Year Ended

March 31, 2022

 
      Shares      Amount             Shares      Amount  

Shares sold

     400,000      $ 10,645,856          200,000      $ 5,879,630  

Shares redeemed

     (600,000      (14,815,602                
  

 

 

 

Net increase (decrease)

     (200,000    $ (4,169,746        200,000      $ 5,879,630  
  

 

 

 
     Franklin FTSE France ETF  
    

Six Months Ended

September 30, 2022

           

Year Ended

March 31, 2022

 
      Shares      Amount             Shares      Amount  

Shares sold

          $          100,000      $ 3,120,862  

Shares redeemed

     (50,000      (1,180,388                
  

 

 

 

Net increase (decrease)

     (50,000    $ (1,180,388        100,000      $ 3,120,862  
  

 

 

 
     Franklin FTSE Germany ETF  
    

Six Months Ended

September 30, 2022

           

Year Ended

March 31, 2022

 
      Shares      Amount             Shares      Amount  

Shares sold

     200,000      $ 3,405,239          400,000      $ 10,617,319  

Shares redeemed

     (100,000      (2,184,259                
  

 

 

 

Net increase (decrease)

     100,000      $ 1,220,980          400,000      $ 10,617,319  
  

 

 

 
     Franklin FTSE Hong Kong ETF  
     Six Months Ended
September 30, 2022
           

Year Ended

March 31, 2022

 
      Shares      Amount             Shares      Amount  

Shares sold

          $          150,000      $ 3,959,042  

Shares redeemed

     (150,000      (3,319,699                
  

 

 

 

Net increase (decrease)

     (150,000    $ (3,319,699        150,000      $ 3,959,042  
  

 

 

 
     Franklin FTSE India ETF  
    

Six Months Ended

September 30, 2022

           

Year Ended

March 31, 2022

 
      Shares      Amount             Shares      Amount  

Shares sold

     250,000      $ 7,507,913          750,000      $ 23,985,026  
  

 

 

 

Net increase (decrease)

     250,000      $ 7,507,913          750,000      $ 23,985,026  
  

 

 

 

 

           
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     Franklin FTSE Japan ETF  
    

Six Months Ended

September 30, 2022

           

Year Ended

March 31, 2022

 
      Shares      Amount             Shares      Amount  

Shares sold

     9,000,000      $ 221,942,625          11,400,000      $ 340,542,812  

Shares redeemed

     (1,800,000      (43,843,408        (2,400,000      (71,759,152
  

 

 

 

Net increase (decrease)

     7,200,000      $ 178,099,217          9,000,000      $ 268,783,660  
  

 

 

 
     Franklin FTSE Japan Hedged ETF  
    

Six Months Ended

September 30, 2022

           

Year Ended

March 31, 2022

 
      Shares      Amount             Shares      Amount  

Shares sold

          $          400,000      $ 12,446,606  

Shares redeemed

                     (400,000      (12,142,770
  

 

 

 

Net increase (decrease)

          $               $ 303,836  
  

 

 

 
     Franklin FTSE Latin America ETF  
     Six Months Ended
September 30, 2022
           

Year Ended

March 31, 2022

 
      Shares      Amount             Shares      Amount  

Shares sold

     2,800,000      $ 52,371,383          100,000      $ 2,231,798  
  

 

 

 

Net increase (decrease)

     2,800,000      $ 52,371,383          100,000      $ 2,231,798  
  

 

 

 
     Franklin FTSE Mexico ETF  
    

Six Months Ended

September 30, 2022

           

Year Ended

March 31, 2022

 
      Shares      Amount             Shares      Amount  

Shares sold

     50,000      $ 1,141,877          200,000      $ 4,861,121  

Shares redeemed

     (50,000      (1,267,879                
  

 

 

 

Net increase (decrease)

          $ (126,002        200,000      $ 4,861,121  
  

 

 

 
     Franklin FTSE Russia ETF1,2  
    

Six Months Ended

September 30, 2022

           

Year Ended

March 31, 2022

 
      Shares      Amount             Shares      Amount  

Shares sold

          $          400,000      $ 12,929,102  
  

 

 

 

Net increase (decrease)

          $          400,000      $ 12,929,102  
  

 

 

 
     Franklin FTSE Saudi Arabia ETF  
    

Six Months Ended

September 30, 2022

           

Year Ended

March 31, 2022

 
      Shares      Amount             Shares      Amount  

Shares sold

     50,000      $ 1,884,180               $  
  

 

 

 

Net increase (decrease)

     50,000      $ 1,884,180               $  
  

 

 

 

 

           
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2. Shares of Beneficial Interest (continued)

 

     Franklin FTSE South Africa ETF  
    

Six Months Ended

September 30, 2022

           

Year Ended

March 31, 2022

 
      Shares      Amount             Shares      Amount  

Shares sold

          $          100,000      $ 2,562,673  

Shares redeemed

     (50,000      (975,988                
  

 

 

 

Net increase (decrease)

     (50,000    $ (975,988        100,000      $ 2,562,673  
  

 

 

 
     Franklin FTSE South Korea ETF  
    

Six Months Ended

September 30, 2022

           

Year Ended

March 31, 2022

 
      Shares      Amount             Shares      Amount  

Shares sold

     200,000      $ 4,420,390          800,000      $ 23,052,455  

Shares redeemed

                     (400,000      (11,105,744
  

 

 

 

Net increase (decrease)

     200,000      $ 4,420,390          400,000      $ 11,946,711  
  

 

 

 
     Franklin FTSE Switzerland ETF  
     Six Months Ended
September 30, 2022
           

Year Ended

March 31, 2022

 
      Shares      Amount             Shares      Amount  

Shares sold

     500,000      $ 14,529,343          300,000      $ 10,413,668  

Shares redeemed

                     (500,000      (17,242,318
  

 

 

 

Net increase (decrease)

     500,000      $ 14,529,343          (200,000    $ (6,828,650
  

 

 

 
     Franklin FTSE Taiwan ETF  
    

Six Months Ended

September 30, 2022

           

Year Ended

March 31, 2022

 
      Shares      Amount             Shares      Amount  

Shares sold

          $          300,000      $ 13,007,178  

Shares redeemed

     (100,000      (3,088,871        (100,000      (4,387,475
  

 

 

 

Net increase (decrease)

     (100,000    $ (3,088,871        200,000      $ 8,619,703  
  

 

 

 
     Franklin FTSE United Kingdom ETF  
     Six Months Ended
September 30, 2022
           

Year Ended

March 31, 2022

 
      Shares      Amount             Shares      Amount  

Shares sold

     2,150,000      $ 50,219,908          16,400,000      $ 419,981,074  

Shares redeemed

     (6,500,000      (139,142,759        (950,000      (23,614,513
  

 

 

 

Net increase (decrease)

     (4,350,000    $ (88,922,851        15,450,000      $ 396,366,561  
  

 

 

 

1Effective March 1, 2022: The Fund has suspended new creations of its shares until further notice. Please refer to the prospectus for further detail.

2Effective 4 AM Eastern Time on March 4, 2022: The NYSE Arca, Inc. announced a trading halt of the Fund.

 

           
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FRANKLIN TEMPLETON ETF TRUST

NOTES TO FINANCIAL STATEMENTS (UNAUDITED)

 

Franklin Resources, Inc. is the holding company for various subsidiaries that together are referred to as Franklin Templeton. Certain officers and trustees of the Funds are also officers and/or directors of the following subsidiaries:

 

Subsidiary    Affiliation

Franklin Advisers, Inc (Advisers)

  

Investment manager

Franklin Advisory Services, LLC (FASL)

  

Investment manager

Franklin Templeton Services, LLC (FT Services)

  

Administrative manager

Franklin Templeton Distributors, LLC (Distributors)

  

Principal underwriter

a. Management fees

The Funds pay a unified management fee to Advisers whereby Advisers has agreed to reimburse the Funds’ acquired fund fees and expenses (if any) and pay all of the ordinary operating expenses of the Funds, including custody, transfer agency, and Trustee fees and expenses, among others, but excluding payments under the Funds’ Rule 12b-1 plan (if any), brokerage expenses (including any costs incidental to transactions in portfolio securities or instruments), taxes, interest (including borrowing costs and dividend expenses on securities sold short and overdraft charges), litigation expenses (including litigation to which the Trust or a Fund may be a party and indemnification of the Trustees and officers with respect thereto), and other non-routine or extraordinary expenses. The fees are based on the average daily net assets of each of the Funds as follows:

 

      Annualized Fee Rate

Franklin FTSE Asia ex Japan ETF

  

0.19%

Franklin FTSE Australia ETF

  

0.09%

Franklin FTSE Brazil ETF

  

0.19%

Franklin FTSE Canada ETF

  

0.09%

Franklin FTSE China ETF

  

0.19%

Franklin FTSE Europe ETF

  

0.09%

Franklin FTSE Europe Hedged ETF

  

0.09%

Franklin FTSE France ETF

  

0.09%

Franklin FTSE Germany ETF

  

0.09%

Franklin FTSE Hong Kong ETF

  

0.09%

Franklin FTSE India ETF

  

0.19%

Franklin FTSE Italy ETF

  

0.09%

Franklin FTSE Japan ETF

  

0.09%

Franklin FTSE Japan Hedged ETF

  

0.09%

Franklin FTSE Latin America ETF

  

0.19%

Franklin FTSE Mexico ETF

  

0.19%

Franklin FTSE Russia ETF

  

0.19%

Franklin FTSE Saudi Arabia ETF

  

0.39%

Franklin FTSE South Africa ETF

  

0.19%

Franklin FTSE South Korea ETF

  

0.09%

Franklin FTSE Switzerland ETF

  

0.09%

Franklin FTSE Taiwan ETF

  

0.19%

Franklin FTSE United Kingdom ETF

  

0.09%

 

           
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FRANKLIN TEMPLETON ETF TRUST

NOTES TO FINANCIAL STATEMENTS (UNAUDITED)

 

3. Transactions with Affiliates (continued)

 

b. Administrative Fees

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

c. Investments in Affiliated Management Investment Companies

Certain or all Funds invest in one or more affiliated management investment companies. As defined in the 1940 Act, an investment is deemed to be a “Controlled Affiliate” of a fund when a fund owns, either directly or indirectly, 25% or more of the affiliated fund’s outstanding shares or has the power to exercise control over management or policies of such fund. The Funds do not invest for purposes of exercising a controlling influence over the management or policies. Management fees paid by the Funds are waived on assets invested in the affiliated management investment companies, as noted in the Statements of Operations, in an amount not to exceed the management and administrative fees paid directly or indirectly by each affiliate. During the period ended September 30, 2022, investments in affiliated management investment companies were as follows:

 

     Value at
Beginning
of Period
    Purchases     Sales     Realized
Gain (Loss)
    Net Change in
Unrealized
Appreciation
(Depreciation)
    Value at
End of
Period
    Number
of Shares
Held at
End of
Period
    Investment
Income
 
Franklin FTSE Japan ETF Non-Controlled Affiliates                  
Dividend
Income
 
 
               

 

 

 

Institutional Fiduciary Trust Money Market Portfolio 2.45%

  $ 251,746     $ 8,827,573     $ (8,686,959   $  —     $  —     $ 392,360       392,360     $  —  
           

 

 

 
Franklin FTSE Japan Hedged ETF Non-Controlled Affiliates                  
Dividend
Income
 
 
               

 

 

 

Institutional Fiduciary Trust Money Market Portfolio 2.45%

  $ 695,758     $ 3,280,700     $ (3,703,573   $  —     $  —     $ 272,885       272,885     $  —  
           

 

 

 
Franklin FTSE United Kingdom ETF Non-Controlled Affiliates                  


Income
from
Securities
loaned
 
 
 
 
               

 

 

 

Institutional Fiduciary Trust Money Market Portfolio 2.45%

  $ 620,830     $ 8,948,366     $ (9,296,196   $  —     $  —     $ 273,000       273,000     $ 1,503  
           

 

 

 

d. Other Affiliated Transactions

At September 30, 2022, the shares of the Funds were owned by the following entities:

 

Funds    Shares     Percentage of
Outstanding Sharesa
 
Franklin FTSE Canada ETF     

Franklin Resources Inc

     1,927,000       20.9%  
  

 

 

 
Franklin FTSE Italy ETF     

Franklin Resources Inc

     14,000       9.3%  
  

 

 

 
Franklin FTSE Latin America ETF     

Franklin Resources Inc

     1,100,000       35.5%  
  

 

 

 
Franklin FTSE Saudi Arabia ETF     

Franklin Resources Inc

     40,000       26.7%  
  

 

 

 

 

           
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FRANKLIN TEMPLETON ETF TRUST

NOTES TO FINANCIAL STATEMENTS (UNAUDITED)

 

Funds    Shares     Percentage of
Outstanding Sharesa
 
Franklin FTSE South Africa ETF     

Franklin Resources Inc

     16,000       10.7%  
  

 

 

 
Franklin FTSE United Kingdom ETF     

Franklin Managed Income Fund

     1,250,000       6.3%  
  

 

 

 

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

4. Income Taxes

For tax purposes, capital losses may be carried over to offset future capital gains. At March 31, 2022, the capital loss carryforwards were as follows:

 

     

Franklin
FTSE

Asia ex Japan
ETF

    Franklin
FTSE
Australia
ETF
    Franklin
FTSE
Brazil
ETF
    Franklin
FTSE
Canada
ETF
 
Capital loss carryforwards not subject to expiration:         

Long term

   $ 1,019,119     $ 471,552     $ 11,677,841     $ 259,413  

Short term

     488,309       115,476       33,487,474       110,204  
  

 

 

 

Total capital loss carryforwards

   $ 1,507,428     $ 587,028     $ 45,165,315     $ 369,617  
  

 

 

 
      Franklin
FTSE
China
ETF
    Franklin
FTSE
Europe
ETF
   

Franklin
FTSE
Europe Hedged

ETF

   

Franklin

FTSE

France
ETF

 
Capital loss carryforwards not subject to expiration:         

Long term

   $ 6,279,868     $ 2,559,181     $ 198,810     $ 117,194  

Short term

     2,500,332       207,121       237,115       33,108  
  

 

 

 

Total capital loss carryforwards

   $ 8,780,200     $ 2,766,302     $ 435,925     $ 150,302  
  

 

 

 
      Franklin
FTSE
Germany
ETF
    Franklin
FTSE
Hong Kong
ETF
    Franklin
FTSE
India
ETF
    Franklin
FTSE
Italy
ETF
 
Capital loss carryforwards not subject to expiration:         

Long term

   $ 334,959     $ 608,317     $ 911,568     $ 305,156  

Short term

     98,332       56,351       116,340        
  

 

 

 

Total capital loss carryforwards

   $ 433,291     $ 664,668     $ 1,027,908     $ 305,156  
  

 

 

 
      Franklin
FTSE
Japan
ETF
    Franklin
FTSE
Japan Hedged
ETF
    Franklin
FTSE
Latin America
ETF
    Franklin
FTSE
Mexico
ETF
 
Capital loss carryforwards not subject to expiration:         

Long term

   $ 7,872,857     $     $ 247,090     $ 642,825  

Short term

     1,327,693             34,299       49,392  
  

 

 

 

Total capital loss carryforwards

   $ 9,200,550     $     $ 281,389     $ 692,217  
  

 

 

 

 

           
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FRANKLIN TEMPLETON ETF TRUST

NOTES TO FINANCIAL STATEMENTS (UNAUDITED)

 

4. Income Taxes (continued)

 

      Franklin
FTSE
Russia
ETF
    Franklin
FTSE
Saudi Arabia
ETF
    Franklin
FTSE
South Africa
ETF
    Franklin
FTSE
South Korea
ETF
 
Capital loss carryforwards not subject to expiration:         

Long term

   $ 312,362     $ 3,202     $ 217,461     $     2,942,488  

Short term

     235,236             48,981       2,571,495  
  

 

 

 

Total capital loss carryforwards

   $ 547,598     $ 3,202     $ 266,442     $ 5,513,983  
  

 

 

 
      Franklin
FTSE
Switzerland
ETF
    Franklin
FTSE
Taiwan
ETF
    Franklin
FTSE
United Kingdom
ETF
       
Capital loss carryforwards not subject to expiration:         

Long term

   $ 205,146     $       204,085     $     4,322,961    

Short term

     211,939       361,975       2,707,270    
  

 

 

   

Total capital loss carryforwards

   $       417,085     $ 566,060     $ 7,030,231    
  

 

 

   

At September 30, 2022, the cost of investments and net unrealized appreciation (depreciation) for income tax purposes were as follows:

 

     

Franklin

FTSE

Asia ex Japan
ETF

   

Franklin

FTSE

Australia

ETF

   

Franklin

FTSE

Brazil

ETF

    Franklin
FTSE
Canada
ETF
 

Cost of investments

   $ 37,997,819     $ 25,399,172     $ 283,908,891     $ 300,579,922  
  

 

 

 

Unrealized appreciation

   $ 1,815,114     $ 615,041     $ 10,727,138     $ 708,848  

Unrealized depreciation

     (9,478,841     (3,100,436     (17,087,746     (43,403,273
  

 

 

 

Net unrealized appreciation (depreciation) .

   $ (7,663,727   $ (2,485,395   $ (6,360,608   $ (42,694,425
  

 

 

 
      Franklin
FTSE
China
ETF
    Franklin
FTSE
Europe
ETF
    Franklin
FTSE
Europe Hedged
ETF
    Franklin
FTSE
France
ETF
 

Cost of investments

   $ 138,328,688     $ 51,710,748     $ 19,730,791     $ 8,467,663  
  

 

 

 

Unrealized appreciation

   $ 3,252,991     $ 26,229     $ 5,375     $ 81,608  

Unrealized depreciation

     (50,212,064     (15,623,230     (5,594,566     (1,968,440
  

 

 

 

Net unrealized appreciation (depreciation) .

   $ (46,959,073   $ (15,597,001   $ (5,589,191   $ (1,886,832
  

 

 

 
      Franklin
FTSE
Germany
ETF
    Franklin
FTSE
Hong Kong
ETF
    Franklin
FTSE
India
ETF
    Franklin
FTSE
Italy
ETF
 

Cost of investments

   $ 19,708,863     $ 15,063,230     $ 49,608,914     $ 3,322,879  
  

 

 

 

Unrealized appreciation

   $ 26,407     $ 112,446     $ 6,899,676     $ 117,286  

Unrealized depreciation

     (6,577,820     (3,995,323     (2,510,489     (761,259
  

 

 

 

Net unrealized appreciation (depreciation) .

   $ (6,551,413   $ (3,882,877   $ 4,389,187     $ (643,973
  

 

 

 

 

           
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FRANKLIN TEMPLETON ETF TRUST

NOTES TO FINANCIAL STATEMENTS (UNAUDITED)

 

      Franklin
FTSE
Japan
ETF
    Franklin
FTSE
Japan Hedged
ETF
    Franklin
FTSE
Latin America
ETF
    Franklin
FTSE
Mexico
ETF
 

Cost of investments

   $ 1,002,851,379     $ 30,016,633     $ 60,334,216     $ 10,126,558  
  

 

 

 

Unrealized appreciation

   $ 2,385,843     $ 60,865     $ 3,324,984     $ 772,270  

Unrealized depreciation

     (235,206,895     (7,062,600     (2,957,240     (962,707
  

 

 

 

Net unrealized appreciation (depreciation) .

   $ (232,821,052   $ (7,001,735   $ 367,744     $ (190,437
  

 

 

 
      Franklin
FTSE
Russia
ETF
    Franklin
FTSE
Saudi Arabia
ETF
    Franklin
FTSE
South Africa
ETF
    Franklin
FTSE
South Korea
ETF
 

Cost of investments

   $ 22,476,787     $ 4,370,666     $ 3,808,391     $ 63,495,882  
  

 

 

 

Unrealized appreciation

   $     $ 1,187,725     $ 13,197     $ 368,793  

Unrealized depreciation

     (22,476,787     (110,176     (870,957     (20,029,440
  

 

 

 

Net unrealized appreciation (depreciation) .

   $ (22,476,787   $ 1,077,549     $ (857,760   $ (19,660,647
  

 

 

 
      Franklin
FTSE
Switzerland
ETF
    Franklin
FTSE
Taiwan
ETF
    Franklin
FTSE
United Kingdom
ETF
       

Cost of investments

   $ 56,620,228     $ 27,057,905     $ 509,188,285    
  

 

 

   

Unrealized appreciation

   $ 52,949     $ 2,901,366     $ 2,612,528    

Unrealized depreciation

     (7,406,379     (2,232,643     (124,827,302  
  

 

 

   

Net unrealized appreciation (depreciation) .

   $ (7,353,430   $ 668,723     $ (122,214,774  
  

 

 

   

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

5. Investment Transactions

Purchases and sales of investments (excluding short term securities and in-kind transactions, if any) for the period ended September 30, 2022, were as follows:

 

      Franklin
FTSE
Asia ex Japan
ETF
    Franklin
FTSE
Australia
ETF
    Franklin
FTSE
Brazil
ETF
    Franklin
FTSE
Canada
ETF
 

Purchases

   $ 1,435,551     $ 2,322,210     $ 78,762,940     $ 294,805,019  

Sales

   $ 1,059,870     $ 1,113,774     $ 208,129,414     $ 32,857,855  
      Franklin
FTSE
China
ETF
    Franklin
FTSE
Europe
ETF
    Franklin
FTSE
Europe Hedged
ETF
    Franklin
FTSE
France
ETF
 

Purchases

   $ 10,736,162     $ 2,617,430     $ 3,068,275     $ 254,515  

Sales

   $ 5,773,130     $ 3,094,746     $ 655,263     $ 1,395,850  

 

           
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FRANKLIN TEMPLETON ETF TRUST

NOTES TO FINANCIAL STATEMENTS (UNAUDITED)

 

5. Investment Transactions (continued)

 

      Franklin
FTSE
Germany
ETF
    Franklin
FTSE
Hong Kong
ETF
    Franklin
FTSE
India
ETF
    Franklin
FTSE
Italy
ETF
 

Purchases

   $ 385,775     $ 789,221     $ 9,158,427     $ 180,397  

Sales

   $ 424,281     $ 737,053     $ 1,294,528     $ 174,458  
      Franklin
FTSE
Japan
ETF
    Franklin
FTSE
Japan Hedged
ETF
    Franklin
FTSE
Latin America
ETF
    Franklin
FTSE
Mexico
ETF
 

Purchases

   $ 14,584,584     $ 8,585,551     $
 
 
40,917,790
 
 
  $ 974,177  

Sales

   $ 12,836,214     $ 5,277,252     $ 1,326,100     $ 848,782  
      Franklin
FTSE
Russia
ETF
    Franklin
FTSE
Saudi Arabia
ETF
    Franklin
FTSE
South Africa
ETF
    Franklin
FTSE
South Korea
ETF
 

Purchases

   $     $ 2,003,791     $ 209,763     $ 7,472,472  

Sales

   $     $ 103,782     $ 1,177,780     $ 2,376,066  
      Franklin
FTSE
Switzerland
ETF
    Franklin
FTSE
Taiwan
ETF
    Franklin
FTSE
United Kingdom
ETF
       

Purchases

   $ 2,231,602     $ 1,761,633     $ 18,912,719    

Sales

   $ 2,446,419     $     3,586,444     $ 15,142,121    

In-kind transactions associated with creation and redemptions for the period ended September 30, 2022, were as follows:

 

      Franklin
FTSE
Asia ex Japan
ETF
    Franklin
FTSE
Australia
ETF
    Franklin
FTSE
Brazil
ETF
    Franklin
FTSE
Canada
ETF
 

Cost of Securities Received

   $        —     $        —     $        —     $        —  

Value of Securities Delivereda

   $     $     $     $  
      Franklin
FTSE
China
ETF
    Franklin
FTSE
Europe
ETF
    Franklin
FTSE
Europe Hedged
ETF
    Franklin
FTSE
France
ETF
 

Cost of Securities Received

   $ 286,510     $ 8,627,968     $ 10,576,827     $             —  

Value of Securities Delivereda

   $     $ 127,792,935     $ 14,396,526     $  
      Franklin
FTSE
Germany
ETF
    Franklin
FTSE
Hong Kong
ETF
    Franklin
FTSE
India
ETF
    Franklin
FTSE
Italy
ETF
 

Cost of Securities Received

   $ 3,400,552     $     $     $  

Value of Securities Delivereda

   $ 2,181,384     $ 3,255,694     $     $  

 

           
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FRANKLIN TEMPLETON ETF TRUST

NOTES TO FINANCIAL STATEMENTS (UNAUDITED)

 

      Franklin
FTSE
Japan
ETF
    Franklin
FTSE
Japan Hedged
ETF
    Franklin
FTSE
Latin America
ETF
    Franklin
FTSE
Mexico
ETF
 

Cost of Securities Received

   $ 219,741,404     $     $     $ 1,140,462  

Value of Securities Delivereda

   $ 42,752,134     $     $     $ 1,266,860  
      Franklin
FTSE
Russia
ETF
    Franklin
FTSE
Saudi Arabia
ETF
    Franklin
FTSE
South Africa
ETF
    Franklin
FTSE
South Korea
ETF
 

Cost of Securities Received

   $     $     $     $  

Value of Securities Delivereda

   $     $     $     $  
     

Franklin
FTSE
Switzerland

ETF

    Franklin
FTSE
Taiwan
ETF
    Franklin
FTSE
United Kingdom
ETF
       

Cost of Securities Received

   $ 14,253,301     $     $ 49,831,235    

Value of Securities Delivereda

   $     $     $ 137,847,279    

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

At September 30, 2022, in connection with securities lending transactions, certain or all Funds loaned investments and received cash collateral as follows:

 

      Franklin
FTSE
United Kingdom
ETF
 
Securities lending transactionsa:       

Equity Investmentsb

   $ 273,000  
  

 

 

 

aThe agreements can be terminated at any time.

bThe gross amount of recognized liability for such transactions is included in payable upon return of securities loaned in the Statements of Assets and Liabilities.

6. Concentration of Risk

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

Russia’s military invasion of Ukraine in February 2022, the resulting responses by the United States and other countries, and the potential for wider conflict could increase volatility and uncertainty in the financial markets and adversely affect regional and global economies. The United States and other countries have imposed broad-ranging economic sanctions on Russia and certain Russian individuals, banking entities and corporations as a response to its invasion of Ukraine. The United States and other countries have also imposed economic sanctions on Belarus and may impose sanctions on other countries that support Russia’s military invasion. These sanctions, as well as any other economic consequences related to the invasion, such as additional sanctions, boycotts or changes in consumer or purchaser preferences or cyberattacks on governments, companies or individuals, may further decrease the value and liquidity of certain Russian securities and securities of issuers in other countries that are subject to economic sanctions related to the invasion. To the extent that the Funds have exposure to Russian investments or investments in countries affected by the invasion, the Fund’s ability to price, buy, sell, receive or deliver such investments was impaired. The Funds could determine at any time that certain of the most affected securities have little or no

 

           
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6. Concentration of Risk (continued)

 

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

At September 30, 2022, the Franklin FTSE Russia ETF had 100% of its net assets invested in securities with significant economic risk or exposure to Russia. The Valuation Committee determined that based on their analysis of the market and access to market participants, the Russian financial instruments held by the Franklin FTSE Russia ETF had no value at September 30, 2022.

7. Novel Coronavirus Pandemic

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

8. Other Derivative Information

At September 30, 2022, the Funds’ investments in derivative contracts are reflected in the Statements of Assets and Liabilities as follows:

 

   

Asset Derivatives

   

Liability Derivatives

 
     Statements of Assets and
Liabilities Location
  Fair Value     Statements of Assets and
Liabilities Location
  Fair Value  
Franklin FTSE Australia ETF                    

Index contracts

 

Variation margin on futures contracts

  $    

Variation margin on futures contracts

  $ 30,610 a 
   

 

 

     

 

 

 
Franklin FTSE Brazil ETF                    

Equity contracts

 

Variation margin on futures contracts

  $    

Variation margin on futures contracts

  $ 88,239 a 
   

 

 

     

 

 

 
Franklin FTSE Canada ETF                    

Index contracts

 

Variation margin on futures contracts

  $    

Variation margin on futures contracts

  $ 27,595 a 
   

 

 

     

 

 

 
Franklin FTSE China ETF                    

Equity contracts

 

Variation margin on futures contracts

  $    

Variation margin on futures contracts

  $ 10,265 a 
   

 

 

     

 

 

 
Franklin FTSE Europe ETF                    

Index contracts

 

Variation margin on futures contracts

  $    

Variation margin on futures contracts

  $ 33,003 a 
   

 

 

     

 

 

 
Franklin FTSE Europe Hedged ETF      

Foreign exchange contracts

 

Unrealized appreciation on OTC forward exchange contracts

  $ 463,463    

Unrealized depreciation on OTC forward exchange contracts

  $ 9,551  

Index contracts

 

Variation margin on futures contracts

       

Variation margin on futures contracts

    2,661 a  
   

 

 

     

 

 

 

Totals

    $ 463,463       $ 12,212  
   

 

 

     

 

 

 
Franklin FTSE Hong Kong ETF                    

Equity contracts

 

Variation margin on futures contracts

  $    

Variation margin on futures contracts

  $ 2,203 a  
   

 

 

     

 

 

 

 

           
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Asset Derivatives

   

Liability Derivatives

 
     Statements of Assets and
Liabilities Location
  Fair Value     Statements of Assets and
Liabilities Location
  Fair Value  
Franklin FTSE Japan ETF                    

Index contracts

 

Variation margin on futures contracts

  $    

Variation margin on futures contracts

  $ 46,911 a  
   

 

 

     

 

 

 
Franklin FTSE Japan Hedged ETF      

Foreign exchange contracts

 

Unrealized appreciation on OTC forward exchange contracts

  $ 1,093,663    

Unrealized depreciation on OTC forward exchange contracts

  $ 11,176  

Index contracts

 

Variation margin on futures contracts

       

Variation margin on futures contracts

    2,018 a  
   

 

 

     

 

 

 

Totals

    $ 1,093,663       $ 13,194  
   

 

 

     

 

 

 
Franklin FTSE Latin America ETF                    

Equity contracts

 

Variation margin on futures contracts

  $    

Variation margin on futures contracts

  $ 9,274 a  
   

 

 

     

 

 

 
Franklin FTSE South Korea ETF                    

Index contracts

 

Variation margin on futures contracts

  $    

Variation margin on futures contracts

  $ 491 a  
   

 

 

     

 

 

 
Franklin FTSE Switzerland ETF                    

Equity contracts

 

Variation margin on futures contracts

  $    

Variation margin on futures contracts

  $ 32,156 a  
   

 

 

     

 

 

 
Franklin FTSE Taiwan ETF                    

Equity contracts

 

Variation margin on futures contracts

  $    

Variation margin on futures contracts

  $ 4,144 a  
   

 

 

     

 

 

 
Franklin FTSE United Kingdom ETF                    

Index contracts

 

Variation margin on futures contracts

  $    

Variation margin on futures contracts

  $ 236,095 a 
   

 

 

     

 

 

 

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

For the period ended September 30, 2022, the effect of derivative contracts in the Funds’ Statements of Operations was as follows:

 

Derivative Contracts
Not Accounted for as
Hedging Instruments
  Statements of
Operations Locations
  Net Realized
Gain (Loss)
for the Period
    Statements of
Operations Locations
  Net Change in
Unrealized
Appreciation
(Depreciation)
for the Period
 
Franklin FTSE Asia ex Japan ETF                    
 

Net realized gain (loss) from:

   

Net change in unrealized appreciation (depreciation) on:

 

Equity contracts

 

Futures contracts

  $ (41,334  

Futures contracts

  $  
   

 

 

     

 

 

 
Franklin FTSE Australia ETF                    
 

Net realized gain (loss) from:

   

Net change in unrealized appreciation (depreciation) on:

 

Equity contracts

 

Futures contracts

  $ 6,546    

Futures contracts

  $ (30,610
   

 

 

     

 

 

 
Franklin FTSE Brazil ETF                    
 

Net realized gain (loss) from:

   

Net change in unrealized appreciation (depreciation) on:

 

Equity contracts

 

Futures contracts

  $ (1,608,425  

Futures contracts

  $ (301,741
   

 

 

     

 

 

 
Franklin FTSE Canada ETF                    
 

Net realized gain (loss) from:

   

Net change in unrealized appreciation (depreciation) on:

 

Equity contracts

 

Futures contracts

  $ 19,482    

Futures contracts

  $ (27,595
   

 

 

     

 

 

 

 

           
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8. Other Derivative Information (continued)

 

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

Net realized gain (loss) from:

   

Net change in unrealized appreciation (depreciation) on:

 

Equity contracts

 

Futures contracts

  $ (167,458  

Futures contracts

  $ (10,265
   

 

 

     

 

 

 
Franklin FTSE Europe ETF                    
 

Net realized gain (loss) from:

   

Net change in unrealized appreciation (depreciation) on:

 

Equity contracts

 

Futures contracts

  $ (16,286  

Futures contracts

  $ (104,736
   

 

 

     

 

 

 
Franklin FTSE Europe Hedged ETF                    
 

Net realized gain (loss) from:

   

Net change in unrealized appreciation (depreciation) on:

 

Foreign exchange contracts

 

Forward exchange contracts

  $ 2,400,365    

Forward exchange contracts

  $ 231,381  

Equity contracts

 

Futures contracts

    (5,566  

Futures contracts

    (2,661
   

 

 

     

 

 

 

Totals

    $ 2,394,799       $ 228,720  
   

 

 

     

 

 

 
Franklin FTSE France ETF                    
 

Net realized gain (loss) from:

   

Net change in unrealized appreciation (depreciation) on:

 

Equity contracts

 

Futures contracts

  $ (552  

Futures contracts

  $  
   

 

 

     

 

 

 
Franklin FTSE Germany ETF                    
 

Net realized gain (loss) from:

   

Net change in unrealized appreciation (depreciation) on:

 

Equity contracts

 

Futures contracts

  $ (10,835  

Futures contracts

  $  
   

 

 

     

 

 

 
Franklin FTSE Hong Kong ETF                    
 

Net realized gain (loss) from:

   

Net change in unrealized appreciation (depreciation) on:

 

Equity contracts

 

Futures contracts

  $ (7,727  

Futures contracts

  $ (2,790
   

 

 

     

 

 

 
Franklin FTSE India ETF                    
 

Net realized gain (loss) from:

   

Net change in unrealized appreciation (depreciation) on:

 

Equity contracts

 

Futures contracts

  $ 8,288    

Futures contracts

  $ (1,364
   

 

 

     

 

 

 
Franklin FTSE Japan ETF                    
 

Net realized gain (loss) from:

   

Net change in unrealized appreciation (depreciation) on:

 

Equity contracts

 

Futures contracts

  $ (144,459  

Futures contracts

  $ (194,653
   

 

 

     

 

 

 
Franklin FTSE Japan Hedged ETF                    
 

Net realized gain (loss) from:

   

Net change in unrealized appreciation (depreciation) on:

 

Foreign exchange contracts

 

Forward exchange contracts

  $ 3,894,512    

Forward exchange contracts

  $ 532,139  

Equity contracts

 

Futures contracts

    (13,148  

Futures contracts

    (3,463
   

 

 

     

 

 

 

Totals

    $ 3,881,364       $ 528,676  
   

 

 

     

 

 

 

 

           
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NOTES TO FINANCIAL STATEMENTS (UNAUDITED)

 

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

Net realized gain (loss) from:

   

Net change in unrealized appreciation (depreciation) on:

 

Equity contracts

 

Futures contracts

  $ (30,378  

Futures contracts

  $ (10,285
   

 

 

     

 

 

 
Franklin FTSE Saudi Arabia ETF                    
 

Net realized gain (loss) from:

   

Net change in unrealized appreciation (depreciation) on:

 

Foreign exchange contracts

 

Forward exchange contracts

  $ (28  

Forward exchange contracts

  $  
   

 

 

     

 

 

 
Franklin FTSE South Korea ETF                    
 

Net realized gain (loss) from:

   

Net change in unrealized appreciation (depreciation) on:

 

Equity contracts

 

Futures contracts

  $ (36,280  

Futures contracts

  $ (38,433
   

 

 

     

 

 

 
Franklin FTSE Switzerland ETF                    
 

Net realized gain (loss) from:

   

Net change in unrealized appreciation (depreciation) on:

 

Equity contracts

 

Futures contracts

  $ (106,148  

Futures contracts

  $ (66,572
   

 

 

     

 

 

 
Franklin FTSE Taiwan ETF                    
 

Net realized gain (loss) from:

   

Net change in unrealized appreciation (depreciation) on:

 

Equity contracts

 

Futures contracts

  $ 6,016    

Futures contracts

  $ (4,144
   

 

 

     

 

 

 
Franklin FTSE United Kingdom ETF                    
 

Net realized gain (loss) from:

   

Net change in unrealized appreciation (depreciation) on:

 

Equity contracts

 

Futures contracts

  $ 43,771    

Futures contracts

  $ (467,356
   

 

 

     

 

 

 

For the period ended September 30, 2022, the average month end notional amount of futures contracts and average month end contract value for forward exchange contracts were as follows:

 

      Franklin
FTSE
Asia ex Japan
ETF
    Franklin
FTSE
Brazil
ETF
    Franklin
FTSE
China
ETF
    Franklin
FTSE
Europe
ETF
 

Futures contracts

   $ 151,872     $ 6,898,920     $ 699,896     $ 909,212  

Forward exchange contracts

   $     $     $     $  
      Franklin
FTSE
Europe Hedged
ETF
    Franklin
FTSE
Germany
ETF
    Franklin
FTSE
Hong Kong
ETF
    Franklin
FTSE
India
ETF
 

Futures contracts

   $ 116,834     $ 161,371     $ 86,021     $ 89,581  

Forward exchange contracts

   $ 60,466,472     $     $     $  

 

           
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8. Other Derivative Information (continued)

 

      Franklin
FTSE
Japan
ETF
    Franklin
FTSE
Japan Hedged
ETF
    Franklin
FTSE
Latin America
ETF
       

Futures contracts

   $ 5,795,892     $ 233,243     $ 345,696    

Forward exchange contracts

   $     $ 67,381,207     $    
      Franklin
FTSE
South Korea
ETF
    Franklin
FTSE
Switzerland
ETF
    Franklin
FTSE
Taiwan
ETF
       

Futures contracts

   $ 269,787     $ 680,063     $ 397,645    

Forward exchange contracts

   $     $     $    
      Franklin
FTSE
United Kingdom
ETF
                   

Futures contracts

   $ 3,758,711        

At September 30, 2022, the Funds’ OTC derivative assets and liabilities are as follows:

 

     Gross and Net Amounts of
Assets and Liabilities
Presented in the
Statements of
Assets and Liabilities
 
      Assetsa     Liabilitiesa  
Franklin FTSE Europe Hedged ETF             

Foreign exchange contracts

   $ 463,463     $ 9,551  
  

 

 

 
Franklin FTSE Japan Hedged ETF     

Foreign exchange contracts

   $ 1,093,663     $ 11,176  
  

 

 

 

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

At September 30, 2022, the Funds’ OTC derivative assets, which may be offset against the Funds’ OTC derivative liabilities and collateral received from the counterparty, are as follows:

 

           Amounts Not Offset in the
Statements of Assets and Liabilities
       
      Gross and Net Amounts
of Assets Presented
in the Statements of
Assets and Liabilities
    Financial
Instruments
Available for Offset
    Financial
Instruments
Collateral
Receiveda
    Cash
Collateral
Receiveda
    Net Amount (Not
less than zero)
 
Franklin FTSE Europe
Hedged ETF
                              
Counterparty                               

BOFA

   $ 140,166     $ (2,514   $  —     $  —     $ 137,652  

DBAB

     162,709       (4,592      —        —       158,117  

HSBK

     66,895       (980      —        —       65,915  

MSCO

     26,829       (497      —        —       26,332  

UBSW

     66,864       (968      —        —       65,896  
  

 

 

 

Total

   $ 463,463     $ (9,551   $  —     $  —     $ 453,912  
  

 

 

 

 

           
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NOTES TO FINANCIAL STATEMENTS (UNAUDITED)

 

           Amounts Not Offset in the
Statements of Assets and Liabilities
       
      Gross and Net Amounts
of Assets Presented
in the Statements of
Assets and Liabilities
    Financial
Instruments
Available for Offset
    Financial
Instruments
Collateral
Receiveda
    Cash
Collateral
Receiveda
    Net Amount (Not
less than zero)
 
Franklin FTSE Japan
Hedged ETF
                              
Counterparty                               

DBAB

   $ 320,003     $ (3,298   $  —     $  —     $ 316,705  

HSBK

     321,096       (3,238      —        —       317,858  

MSCO

     131,395       (1,384      —        —       130,011  

UBSW

     321,169       (3,256      —        —       317,913  
  

 

 

 

Total

   $ 1,093,663     $ (11,176   $  —     $  —     $ 1,082,487  
  

 

 

 

aIn some instances, the collateral amounts disclosed in the table above were adjusted due to the requirement to limit collateral amounts to avoid the effect of overcollateralization. Actual collateral received and/or pledged may be more than the amounts disclosed herein.

At September 30, 2022, the Funds’ OTC derivative liabilities, which may be offset against the Funds’ OTC derivative assets and collateral pledged to the counterparty, are as follows:

 

           Amounts Not Offset in the
Statements of Assets and Liabilities
       
      Gross and Net Amounts
of Liabilities Presented
in the Statements of
Assets and Liabilities
    Financial
Instruments
Available for Offset
    Financial
Instruments
Collateral
Pledgeda
    Cash
Collateral
Pledgeda
    Net Amount (Not
less than zero)
 
Franklin FTSE Europe
Hedged ETF
                              
Counterparty                               

BOFA

   $ 2,514     $ (2,514   $  —     $  —     $  —  

DBAB

     4,592       (4,592      —        —        —  

HSBK

     980       (980      —        —        —  

MSCO

     497       (497      —        —        —  

UBSW

     968       (968      —        —        —  
  

 

 

 

Total

   $ 9,551     $ (9,551   $  —     $  —     $  —  
  

 

 

 
Franklin FTSE Japan
Hedged ETF
                              
Counterparty                               

DBAB

   $ 3,298     $ (3,298   $  —     $  —     $  —  

HSBK

     3,238       (3,238      —        —        —  

MSCO

     1,384       (1,384      —        —        —  

UBSW

     3,256       (3,256      —        —        —  
  

 

 

 

Total

   $ 11,176     $ (11,176   $  —     $  —     $  —  
  

 

 

 

aIn some instances, the collateral amounts disclosed in the table above were adjusted due to the requirement to limit collateral amounts to avoid the effect of overcollateralization. Actual collateral received and/or pledged may be more than the amounts disclosed herein.

See Note 1(c) regarding derivative financial instruments.

 

           
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9. Fair Value Measurements

 

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

 

   

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

 

   

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

 

   

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

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

A summary of inputs used as of September 30, 2022, in valuing the Funds’ assets and liabilities carried at fair value, is as follows:

 

      Level 1     Level 2     Level 3     Total  
Franklin FTSE Asia ex Japan ETF         
Assets:         

Investments in Securities:a

        

Equity Investmentsb

   $ 30,334,092     $     $  — c    $ 30,334,092  
  

 

 

 
Franklin FTSE Australia ETF         
Assets:         

Investments in Securities:a

        

Equity Investmentsb

   $ 22,913,777     $     $     $ 22,913,777  
  

 

 

 
Liabilities:         

Other Financial Instruments:

        

Futures Contracts

   $ 30,610     $     $     $ 30,610  
  

 

 

 
Franklin FTSE Brazil ETF         
Assets:         

Investments in Securities:a

        

Equity Investmentsb

   $ 277,548,283     $     $     $ 277,548,283  
  

 

 

 
Liabilities:         

Other Financial Instruments:

        

Futures Contracts

   $ 88,239     $     $     $ 88,239  
  

 

 

 
Franklin FTSE Canada ETF         
Assets:         

Investments in Securities:a

        

Equity Investmentsb

   $ 257,885,497     $     $     $ 257,885,497  
  

 

 

 
Liabilities:         

Other Financial Instruments:

        

Futures Contracts

   $ 27,595     $     $     $ 27,595  
  

 

 

 
Franklin FTSE China ETF         
Assets:         

Investments in Securities:a

        

Equity Investmentsb

   $ 91,369,615     $     $     $ 91,369,615  
  

 

 

 
Liabilities:         

Other Financial Instruments:

        

Futures Contracts

   $ 10,265     $     $     $ 10,265  
  

 

 

 

 

           
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      Level 1     Level 2     Level 3     Total  
Franklin FTSE Europe ETF         
Assets:         

Investments in Securities:a

        

Equity Investmentsb

   $ 36,113,747     $     $  — c    $ 36,113,747  
  

 

 

 
Liabilities:         

Other Financial Instruments:

        

Futures Contracts

   $ 33,003     $     $     $ 33,003  
  

 

 

 
Franklin FTSE Europe Hedged ETF         
Assets:         

Investments in Securities:a

        

Equity Investmentsb

   $ 14,141,600     $     $ c    $ 14,141,600  
  

 

 

 

Other Financial Instruments:

        

Forward Exchange Contracts

   $     $ 463,463     $     $ 463,463  
  

 

 

 
Liabilities:         

Other Financial Instruments:

        

Forward Exchange Contracts

   $     $ 9,551     $     $ 9,551  

Futures Contracts

     2,661                   2,661  
  

 

 

 

Total Other Financial Instruments

   $ 2,661     $ 9,551     $     $ 12,212  
  

 

 

 
Franklin FTSE France ETF         
Assets:         

Investments in Securities:a

        

Equity Investmentsb

   $ 6,580,831     $     $     $ 6,580,831  
  

 

 

 
Franklin FTSE Germany ETF         
Assets:         

Investments in Securities:a

        

Equity Investmentsb

   $ 13,157,450     $     $     $ 13,157,450  
  

 

 

 
Franklin FTSE Hong Kong ETF         
Assets:         

Investments in Securities:a

        

Equity Investmentsb

   $ 11,180,353     $     $     $ 11,180,353  
  

 

 

 
Liabilities:         

Other Financial Instruments:

        

Futures Contracts

   $ 2,203     $     $     $ 2,203  
  

 

 

 
Franklin FTSE India ETF         
Assets:         

Investments in Securities:a

        

Equity Investmentsb

   $ 53,998,101     $     $     $ 53,998,101  
  

 

 

 
Franklin FTSE Italy ETF         
Assets:         

Investments in Securities:a

        

Equity Investmentsb

   $ 2,678,906     $     $     $ 2,678,906  
  

 

 

 

 

           
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9. Fair Value Measurements (continued)

 

      Level 1     Level 2     Level 3     Total  
Franklin FTSE Japan ETF         
Assets:         

Investments in Securities:a

        

Equity Investmentsb

   $ 769,637,967     $     $     $ 769,637,967  

Short-Term Investments

     392,360                   392,360  
  

 

 

 

Total Investments in Securities

   $ 770,030,327     $     $     $ 770,030,327  
  

 

 

 
Liabilities:         

Other Financial Instruments:

        

Futures Contracts

   $ 46,911     $     $     $ 46,911  
  

 

 

 
Franklin FTSE Japan Hedged ETF         
Assets:         

Investments in Securities:a

        

Equity Investmentsb

   $ 22,742,013     $     $     $ 22,742,013  

Short-Term Investments

     272,885                   272,885  
  

 

 

 

Total Investments in Securities

   $ 23,014,898     $     $     $ 23,014,898  
  

 

 

 

Other Financial Instruments:

        

Forward Exchange Contracts

   $     $ 1,093,663     $     $ 1,093,663  
  

 

 

 
Liabilities:         

Other Financial Instruments:

        

Forward Exchange Contracts

   $     $ 11,176     $     $ 11,176  

Futures Contracts

     2,018                   2,018  
  

 

 

 

Total Other Financial Instruments

   $ 2,018     $ 11,176     $     $ 13,194  
  

 

 

 
Franklin FTSE Latin America ETF         
Assets:         

Investments in Securities:a

        

Equity Investmentsb

   $ 60,701,960     $     $     $ 60,701,960  
  

 

 

 
Liabilities:         

Other Financial Instruments:

        

Futures Contracts

   $ 9,274     $     $     $ 9,274  
  

 

 

 
Franklin FTSE Mexico ETF         
Assets:         

Investments in Securities:a

        

Equity Investmentsb

   $ 9,936,121     $     $     $ 9,936,121  
  

 

 

 
Franklin FTSE Russia ETF         
Assets:         

Investments in Securities:a

        

Equity Investmentsb

   $     $     $ c    $  
  

 

 

 
Franklin FTSE Saudi Arabia ETF         
Assets:         

Investments in Securities:a

        

Equity Investmentsb

   $ 5,448,215     $     $  —     $ 5,448,215  
  

 

 

 

 

           
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      Level 1     Level 2     Level 3     Total  
Franklin FTSE South Africa ETF         
Assets:         

Investments in Securities:a

        

Equity Investmentsb

   $ 2,950,631     $     $     $ 2,950,631  
  

 

 

 
Franklin FTSE South Korea ETF         
Assets:         

Investments in Securities:a

        

Equity Investmentsb

   $ 43,835,235     $     $ c    $ 43,835,235  
  

 

 

 
Liabilities:         

Other Financial Instruments:

        

Futures Contracts

   $ 491     $     $     $ 491  
  

 

 

 
Franklin FTSE Switzerland ETF         
Assets:         

Investments in Securities:a

        

Equity Investmentsb

   $ 49,266,798     $     $     $ 49,266,798  
  

 

 

 
Liabilities:         

Other Financial Instruments:

        

Futures Contracts

   $ 32,156     $     $     $ 32,156  
  

 

 

 
Franklin FTSE Taiwan ETF         
Assets:         

Investments in Securities:a

        

Equity Investmentsb

   $ 27,726,628     $  —     $     $ 27,726,628  
  

 

 

 
Liabilities:         

Other Financial Instruments:

        

Futures Contracts

   $ 4,144     $     $     $ 4,144  
  

 

 

 
Franklin FTSE United Kingdom ETF         
Assets:         

Investments in Securities:a

        

Equity Investmentsb

   $ 386,700,511     $     $  — c    $ 386,700,511  

Short-Term Investments

     273,000                   273,000  
  

 

 

 

Total Investments in Securities

   $ 386,973,511     $     $     $ 386,973,511  
  

 

 

 
Liabilities:         

Other Financial Instruments:

        

Futures Contracts

   $ 236,095     $     $     $ 236,095  
  

 

 

 

aFor detailed categories, see the accompanying Schedule of Investments.

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

cIncludes securities determined to have no value at September 30, 2022.

10. Subsequent Events

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

 

           
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10. Subsequent Events (continued)

 

Abbreviations

 

Selected Portfolio   Counterparty
ADR   American Depositary Receipt   BOFA   Bank of America Corp.
IDR   International Depository Receipt   DBAB   Deutsche Bank AG
NVDR   Non-Voting Depositary Receipt   HSBK   HSBC Bank PLC
REIT   Real Estate Investment Trust   MSCO   Morgan Stanley
SF   Single Family   UBSW   UBS AG

 

           
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Shareholder Information

 

Board Approval of Investment Management Agreements

FRANKLIN TEMPLETON ETF TRUST

Franklin FTSE Asia ex Japan ETF

Franklin FTSE Japan ETF

Franklin FTSE Australia ETF

Franklin FTSE Japan Hedged ETF

Franklin FTSE Brazil ETF

Franklin FTSE Latin America ETF

Franklin FTSE Canada ETF

Franklin FTSE Mexico ETF

Franklin FTSE China ETF

Franklin FTSE Russia ETF

Franklin FTSE Europe ETF

Franklin FTSE Saudi Arabia ETF

Franklin FTSE Europe Hedged ETF

Franklin FTSE South Africa ETF

Franklin FTSE France ETF

Franklin FTSE South Korea ETF

Franklin FTSE Germany ETF

Franklin FTSE Switzerland ETF

Franklin FTSE Hong Kong ETF

Franklin FTSE Taiwan ETF

Franklin FTSE India ETF

Franklin FTSE United Kingdom ETF

Franklin FTSE Italy ETF

(each a Fund)

At a meeting held on May 25, 2022 (Meeting), the Board of Trustees (Board) of Franklin Templeton ETF Trust (Trust), including a majority of the trustees who are not “interested persons” as defined in the Investment Company Act of 1940 (Independent Trustees), reviewed and approved the continuance of the investment management agreement between Franklin Advisory Services, LLC (Manager) and the Trust, on behalf of each Fund (each a Management Agreement) for an additional one-year period. The Independent Trustees received advice from and met separately with Independent Trustee counsel in considering whether to approve the continuation of each Management Agreement. Although the Management Agreements for the Funds were considered at the same Board meeting, the Board considered the information provided to it about the Funds together and with respect to each Fund separately as the Board deemed appropriate.

In considering the continuation of each Management Agreement, the Board reviewed and considered information provided by the Manager at the Meeting and throughout the year at meetings of the Board and its committees. The Board

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

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

Nature, Extent and Quality of Services

The Board reviewed and considered information regarding the nature, extent and quality of investment management services provided by the Manager and its affiliates to the Funds and their shareholders. This information included, among other things, the qualifications, background and experience of the senior management and investment personnel of the Manager; the structure of investment personnel compensation; oversight of third-party service providers; investment performance reports and related financial information for each Fund; reports on expenses; legal and compliance matters; risk controls; pricing and other services provided by the Manager and its affiliates; and management fees charged by the Manager and its affiliates to US funds and other accounts, including management’s explanation of differences among accounts where relevant.

 

           
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The Board acknowledged the ongoing integration of the Legg Mason family of funds into the Franklin Templeton (FT) family of funds and developing strategies to address areas of heightened concern in the registered fund industry, including various regulatory initiatives and recent geopolitical concerns.

The Board also reviewed and considered the benefits provided to Fund shareholders of investing in a fund that is part of the FT family of funds. The Board noted the financial position of Franklin Resources, Inc. (FRI), the Manager’s parent, and its commitment to the registered fund business as evidenced by its continued introduction of new funds, reassessment of the fund offerings in response to the market environment and project initiatives and capital investments relating to the services provided to the Funds by the FT organization. The Board specifically noted FT’s commitment to being a global leader in stewardship and sustainability and the recent addition of a senior executive focused on environmental, social and governance and climate control initiatives.

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

Fund Performance

The Board noted that, in light of the Funds’ use of a “passive” or indexing investment approach, management evaluates each Fund based on their tracking error against a specified benchmark. The Board also noted that management did not provide peer fund performance analyses typically prepared by Broadridge Financial Solutions, Inc. (Broadridge), an independent provider of investment company data, as the Funds’ are pure-index exchange-traded funds as opposed to active or smart beta funds. The Board referenced earlier discussions with management on matters related to, among other things, the importance of performance to asset growth and growth of market share, and the performance of the Funds in periods of volatility. In addition, the Board acknowledged information provided regarding management’s strategy behind the overall product line-up, the sources of asset growth, the nature of management’s research, potential use of innovative data and technology, and investments in marketing and distribution. The Board noted management’s high level of client engagement and the strength of its compliance program. The Board then noted that for the one-year period ended February 28, 2022, each Fund’s tracking error was within the tolerance anticipated for such Fund, except that the tracking error for the Franklin FTSE Asia ex Japan ETF was 8.8 basis points outside the tolerance anticipated for this Fund, for the Franklin FTSE India ETF was 182.9 basis

points outside the tolerance for this Fund and for the Franklin FTSE Saudi Arabia ETF was 7 basis points outside the tolerance for this Fund. The Board discussed the tracking error of the Funds with management and management explained that, for the Franklin FTSE Asia ex Japan ETF and the Franklin FTSE India ETF, each Fund’s tracking error was outside the tolerance anticipated due, in part, to fees and capital gain tax accrual from holding Indian equities. Management further explained that, for the Franklin FTSE Saudi Arabia ETF, the Fund’s tracking error was outside the tolerance anticipated due, in part, to the compounding effect of fees in a period of strong absolute returns.

Comparative Fees and Expenses

The Board reviewed and considered information regarding each Fund’s actual total expense ratio, noting that each Fund pays a Unified Fee (as defined below). The Board considered the actual total expense ratio and, separately, the contractual management fee rate, without the effect of fee waivers, if any (Management Rate) of each Fund in comparison to the median expense ratio and median Management Rate, respectively, of other exchange-traded funds deemed comparable to and with a similar expense structure to the Fund selected by Broadridge (Expense Group). Broadridge fee and expense data is based upon information taken from each fund’s most recent annual or semi-annual report, which reflects historical asset levels that may be quite different from those currently existing, particularly in a period of market volatility. While recognizing such inherent limitation and the fact that expense ratios and Management Rates generally increase as assets decline and decrease as assets grow, the Board believed the independent analysis conducted by Broadridge to be an appropriate measure of comparative fees and expenses. The Broadridge Management Rate includes administrative charges. The Board received a description of the methodology used by Broadridge to select the exchange-traded funds included in an Expense Group. The Expense Group for each Fund was as follows:

 

    The Expense Group for the Franklin FTSE Asia Ex Japan ETF was comprised of pure index exchange-traded funds, which included the Fund and two other Pacific ex-Japan funds.

 

    The Expense Group for the Franklin FTSE Australia ETF was comprised of pure index exchange-traded funds, which included the Fund and one other Pacific region fund.

 

    The Expense Group for the Franklin FTSE Brazil ETF was comprised of pure index exchange-traded funds, which included the Fund and two other Latin American funds.

 

           
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    The Expense Group for the Franklin FTSE Canada ETF was comprised of pure index exchange-traded funds, which included the Fund and two other international large-cap core funds.

 

    The Expense Group for the Franklin FTSE China ETF was comprised of pure index exchange-traded funds, which included the Fund and six other China region funds.

 

    The Expense Group for the Franklin FTSE Europe ETF was comprised of pure index exchange-traded funds, which included the Fund and four other European region funds.

 

    The Expense Group for the Franklin FTSE Europe Hedged ETF was comprised of pure index exchange- traded funds, which included the Fund and two other European region funds.

 

    The Expense Group for the Franklin FTSE France ETF was comprised of pure index exchange-traded funds, which included the Fund and two other European region funds.

 

    The Expense Group for the Franklin FTSE Germany ETF was comprised of pure index exchange-traded funds, which included the Fund and two other European region funds.

 

    The Expense Group for the Franklin FTSE Hong Kong ETF was comprised of pure index exchange-traded funds, which included the Fund and one other China region fund.

 

    The Expense Group for the Franklin FTSE India ETF was comprised of pure index exchange-traded funds, which included the Fund and three other India region funds.

 

    The Expense Group for the Franklin FTSE Italy ETF was comprised of pure index exchange-traded funds, which included the Fund and one other European region fund.

 

    The Expense Group for the Franklin FTSE Japan ETF was comprised of pure index exchange-traded funds, which included the Fund and two other Japanese funds.

 

    The Expense Group for the Franklin FTSE Japan Hedged ETF was comprised of pure index exchange- traded funds, which included the Fund and two other Japanese funds.

 

    The Expense Group for the Franklin FTSE Latin America ETF was comprised of pure index exchange-traded funds, which included the Fund and one other Latin American fund.

 

    The Expense Group for the Franklin FTSE Mexico ETF was comprised of pure index exchange-traded funds, which included the Fund and one other Latin American fund.
    The Expense Group for the Franklin FTSE Russia ETF was comprised of pure index exchange-traded funds, which included the Fund and two other emerging markets funds.

 

    The Expense Group for the Franklin FTSE Saudi Arabia ETF was comprised of pure index exchange-traded funds, which included the Fund and one other emerging markets fund.

 

    The Expense Group for the Franklin FTSE South Africa ETF was comprised of pure index exchange-traded funds, which included the Fund and one other emerging markets fund.

 

    The Expense Group for the Franklin FTSE South Korea ETF was comprised of pure index exchange-traded funds, which included the Fund and two other Pacific ex-Japan funds.

 

    The Expense Group for the Franklin FTSE Swit- zerland ETF was comprised of pure index exchange- traded funds, which included the Fund and one other European region fund.

 

    The Expense Group for the Franklin FTSE Taiwan ETF was comprised of pure index exchange-traded funds, which included the Fund and one other China region fund.

 

    The Expense Group for the Franklin FTSE United Kingdom ETF was comprised of pure index exchange- traded funds, which included the Fund and one other European region fund.

The Board noted that the Management Rates and actual total expense ratios for the Funds were below the medians of their respective Expense Groups, except that the actual total expense ratio for each of the Franklin FTSE Asia Ex Japan ETF, Franklin FTSE Europe ETF, Franklin FTSE Europe Hedged ETF and Franklin FTSE Japan Hedged ETF was equal to the median of its Expense Group. The Board also noted the small size of each Fund’s Expense Group, except for the Franklin FTSE China ETF which had six peers in its Expense Group. The Board further noted each Fund’s unified management fee (Unified Fee). The Board also noted that pursuant to the Unified Fee arrangement the Manager reimburses the Fund for all of its acquired fund fees and expenses (if any) and pays all of the ordinary operating expenses of the Fund, except for (i) the Fund’s Unified Fee, (ii) payments under the Fund’s Rule 12b-1 plan (if any), (iii) brokerage expenses, (iv) taxes, (v) interest (including borrowing costs and dividend expenses on securities sold short and overdraft charges), (vi) litigation expenses (including litigation to which the Trust or the Fund may be a party and indemnification of the Trustees and officers with respect thereto), and

 

           
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(vii) other non-routine or extraordinary expenses. The Board concluded that the Management Rate charged to each Fund is reasonable.

Profitability

The Board reviewed and considered information regarding the profits realized by the Manager and its affiliates in connection with the operation of each Fund. In this respect, the Board considered the Fund profitability analysis that addresses the overall profitability of FT’s US fund business, as well as its profits in providing investment management and other services to each of the individual funds during the 12-month period ended September 30, 2021, being the most recent fiscal year-end for FRI. The Board noted that although management continually makes refinements to its methodologies used in calculating profitability in response to organizational and product-related changes, the overall methodology has remained consistent with that used in the Funds’ profitability report presentations from prior years. The Board also noted that PricewaterhouseCoopers LLP, auditor to FRI and certain FT funds, has been engaged to periodically review and assess the allocation methodologies to be used solely by the Funds’ Board with respect to the profitability analysis.

The Board noted management’s belief that costs incurred in establishing the infrastructure necessary for the type of fund operations conducted by the Manager and its affiliates may not be fully reflected in the expenses allocated to each Fund in determining its profitability, as well as the fact that the level of profits, to a certain extent, reflected operational cost savings and efficiencies initiated by management. As part of this evaluation, the Board considered management’s outsourcing of certain operations, which effort has required considerable up-front expenditures but, over the long run, is expected to result in greater efficiencies. The Board also noted management’s expenditures in improving shareholder services provided to the Funds, as well as the need to implement systems and meet additional regulatory and compliance requirements resulting from recent US Securities and Exchange Commission and other regulatory requirements.

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

Economies of Scale

The Board reviewed and considered the extent to which the Manager may realize economies of scale, if any, as each Fund grows larger and whether each Fund’s management fee structure reflects any economies of scale for the benefit of shareholders. The Board considered that each Fund would likely experience benefits from the Unified Fee at the Fund’s projected asset levels because of the Manager’s contractual requirement to bear most of the Fund’s ordinary operating expenses. The Board noted that, under the Unified Fee, it is not anticipated that any of the Funds will generate significant, if any, profit for the Manager and/or its affiliates for some time. The Board considered management’s view that any analyses of potential economies of scale in managing a particular fund are inherently limited in light of the joint and common costs and investments the Manager incurs across the FT family of funds as a whole. The Board also noted that, as of December 31, 2021, each Fund (except for the Franklin FTSE Japan ETF and Franklin FTSE United Kingdom ETF) had net assets below $250 million (and in most cases much less). The Board also noted management’s representation that, while the Franklin FTSE Japan ETF and Franklin FTSE United Kingdom ETF had net assets of approximately $809 million and $611 million, respectively, as of December 31, 2021, none of the Funds experienced a profit for the fiscal year ended September 30, 2021. The Board recognized that there would not likely be any economies of scale for a Fund until the Fund’s assets grow.

Conclusion

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

Liquidity Risk Management Program –In-Kind ETFs

Franklin FTSE Australia ETF

Franklin FTSE Canada ETF

Franklin FTSE Europe ETF

Franklin FTSE Europe Hedged ETF

Franklin FTSE France ETF

Franklin FTSE Germany ETF

Franklin FTSE Hong Kong ETF

Franklin FTSE Italy ETF

Franklin FTSE Japan ETF

Franklin FTSE Japan Hedged ETF

Franklin FTSE Mexico ETF

 

           
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Franklin FTSE Russia ETF

Franklin FTSE South Africa ETF

Franklin FTSE Switzerland ETF

Franklin FTSE United Kingdom ETF

Each of the Funds has adopted and implemented a written Liquidity Risk Management Program (the “LRMP”) as required by Rule 22e-4 under the Investment Company Act of 1940 (the “Liquidity Rule”). The LRMP is designed to assess and manage each Fund’s liquidity risk, which is defined as the risk that the Fund could not meet requests to redeem shares issued by the Fund without significant dilution of remaining investors’ interests in the Fund. Each of the Funds is an exchange-traded fund (“ETF”) that is considered an “In-Kind ETF” under the Liquidity Rule, which means that the Fund satisfies requests for redemption through in-kind transfers of portfolio securities, positions, and other assets, except for a de minimis amount of cash, and publishes its portfolio holdings daily. In accordance with the Liquidity Rule, the LRMP includes policies and procedures that provide for: (1) assessment, management, and review (no less frequently than annually) of each Fund’s liquidity risk; (2) prohibiting the Fund’s acquisition of Illiquid investments that would result in the Fund holding more than 15% of its net assets in Illiquid assets. The LRMP also requires reporting to the SEC (on a non-public basis) and to the Board if the Fund’s holdings of Illiquid assets exceed 15% of the Fund’s net assets. As an In-Kind ETF, the Fund is not required to include in the LRMP policies and procedures relating to classification of portfolio holdings into four liquidity categories or establishing a highly liquid investment minimum (“HLIM”).

The Funds’ Board of Trustees approved the appointment of the Director of Liquidity Risk within the Investment Risk Management Group (the “IRMG”) as the Administrator of the LRMP. The IRMG maintains the Investment Liquidity Committee (the “ILC”) to provide oversight and administration of policies and procedures governing liquidity risk management for FT products and portfolios. The ILC includes representatives from Franklin Templeton’s Risk, Trading, Global Compliance, Investment Compliance, Investment Operations, Valuation Committee, Product Management and Global Product Strategy.

In assessing and managing each Fund’s liquidity risk, the ILC considers, as relevant, a variety of factors, including the Fund’s investment strategy and the liquidity of its portfolio investments during both normal and reasonably foreseeable stressed conditions; its short and long-term cash flow projections; and its cash holdings and access to other funding

sources including the Funds’ interfund lending facility and line of credit. Because the Funds are ETFs, the ILC also considers, as relevant, (1) the relationship between the Fund’s portfolio liquidity and the way in which, and the prices and spread at which, Fund shares trade, including the efficiency of the arbitrage function and the level of active participation by market participants, including authorized participants and (2) the effect of the composition of baskets on the overall liquidity of the Fund’s portfolio.

At meetings of the Funds’ Board of Trustees held in May 2021, the Program Administrator provided a written report to the Board addressing the adequacy and effectiveness of the program for the year ended December 31, 2020. The Program Administrator report concluded that (i.) the LRMP, as adopted and implemented, remains reasonably designed to assess and manage each Fund’s liquidity risk; (ii.) the LRMP, including the Highly Liquid Investment Minimum (“HLIM”) where applicable, was implemented and operated effectively to achieve the goal of assessing and managing each Fund’s liquidity risk; and (iii.) each Fund was able to meet requests for redemption without significant dilution of remaining investors’ interests in the Fund.

Liquidity Risk Management Program –Non-In-Kind ETFs

Franklin FTSE Asia ex Japan ETF

Franklin FTSE Brazil ETF

Franklin FTSE China ETF

Franklin FTSE India ETF

Franklin FTSE Latin America ETF

Franklin FTSE Saudi Arabia ETF

Franklin FTSE South Korea ETF

Franklin FTSE Taiwan ETF

Each of the Funds has adopted and implemented a written Liquidity Risk Management Program (the “LRMP”) as required by Rule 22e-4 under the Investment Company Act of 1940 (the “Liquidity Rule”). The LRMP is designed to assess and manage each Fund’s liquidity risk, which is defined as the risk that the Fund could not meet requests to redeem shares issued by the Fund without significant dilution of remaining investors’ interests in the Fund. In accordance with the Liquidity Rule, the LRMP includes policies and procedures that provide for: (1) assessment, management, and review (no less frequently than annually) of each Fund’s liquidity risk; (2) classification of each Fund’s portfolio holdings into one of four liquidity categories (Highly Liquid, Moderately Liquid, Less Liquid, and Illiquid); (3) for Funds

 

           
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that do not primarily hold assets that are Highly Liquid, establishing and maintaining a minimum percentage of the Fund’s net assets in Highly Liquid investments (called a “Highly Liquid Investment Minimum” or “HLIM”); and (4) prohibiting the Fund’s acquisition of Illiquid investments that would result in the Fund holding more than 15% of its net assets in Illiquid assets. The LRMP also requires reporting to the Securities and Exchange Commission (“SEC”) (on a non-public basis) and to the Board if the Fund’s holdings of Illiquid assets exceed 15% of the Fund’s net assets. Funds with HLIMs must have procedures for addressing HLIM shortfalls, including reporting to the Board and, with respect to HLIM shortfalls lasting more than seven consecutive calendar days, reporting to the SEC (on a non-public basis).

The Funds’ Board of Trustees approved the appointment of the Director of Liquidity Risk within the Investment Risk Management Group (the “IRMG”) as the Administrator of the LRMP. The IRMG maintains the Investment Liquidity Committee (the “ILC”) to provide oversight and administration of policies and procedures governing liquidity risk management for FT products and portfolios. The ILC includes representatives from Franklin Templeton’s Risk, Trading, Global Compliance, Investment Compliance, Investment Operations, Valuation Committee, Product Management and Global Product Strategy.

In assessing and managing each Fund’s liquidity risk, the ILC considers, as relevant, a variety of factors, including (i) the Fund’s investment strategy and the liquidity of its portfolio investments during both normal and reasonably foreseeable stressed conditions; (ii) its short and long-term cash flow projections; (iii) its cash holdings and access to other funding sources including the Funds’ interfund lending facility and line of credit; (iv) the relationship between the Fund’s portfolio liquidity and the way in which, and the prices and spread at which, Fund shares trade, including the efficiency of the arbitrage function and the level of active participation by market participants, including authorized participants and (v) the effect of the composition of baskets on the overall liquidity of the Fund’s portfolio. Classification of the Fund’s portfolio holdings in the four liquidity categories is based on the number of days it is reasonably expected to take to convert the investment to cash (for Highly Liquid and Moderately Liquid holdings) or sell or dispose of the investment (for Less Liquid and Illiquid investments), in current market conditions without significantly changing the investment’s market value.

The Fund primarily holds liquid assets that are defined under the Liquidity Rule as “Highly Liquid Investments,” and therefore is not required to establish an HLIM. Highly Liquid

Investments are defined as cash and any investment reasonably expected to be convertible to cash in current market conditions in three business days or less without the conversion to cash significantly changing the market value of the investment.

At meetings of the Funds’ Board of Trustees held in May 2021, the Program Administrator provided a written report to the Board addressing the adequacy and effectiveness of the program for the year ended December 31, 2020. The Program Administrator report concluded that (i.) the LRMP, as adopted and implemented, remains reasonably designed to assess and manage each Fund’s liquidity risk; (ii.) the LRMP, including the Highly Liquid Investment Minimum (“HLIM”) where applicable, was implemented and operated effectively to achieve the goal of assessing and managing each Fund’s liquidity risk; and (iii.) each Fund was able to meet requests for redemption without significant dilution of remaining investors’ interests in the Fund.

Proxy Voting Policies and Procedures

The Trust’s investment manager has established Proxy Voting Policies and Procedures (Policies) that the Trust uses to determine how to vote proxies relating to portfolio securities. Shareholders may view the Trust’s complete Policies online at franklintempleton.com. Alternatively, shareholders may request copies of the Policies free of charge by calling the Proxy Group collect at (954) 527-7678 or by sending a written request to: Franklin Templeton Companies, LLC, 300 S.E. 2nd Street, Fort Lauderdale, FL 33301, Attention: Proxy Group. Copies of the Trust’s proxy voting records are also made available online at franklintempleton.com and posted on the U.S. Securities and Exchange Commission’s website at sec.gov and reflect the most recent 12-month period ended June 30.

Quarterly Schedule of Investments

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

 

           
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Premium/Discount Information

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

    

 

           
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