ANNUAL REPORT  

 

  
 

 

FRANKLIN TEMPLETON

ETF TRUST

 

March 31, 2023

 

       LOGO

 

LOGO     

 

Franklin FTSE Asia ex Japan ETF

 

Franklin FTSE Italy ETF

Franklin FTSE Australia ETF

 

Franklin FTSE Japan ETF

Franklin FTSE Brazil ETF

 

Franklin FTSE Japan Hedged ETF

Franklin FTSE Canada ETF

 

Franklin FTSE Latin America ETF

Franklin FTSE China ETF

 

Franklin FTSE Mexico ETF

Franklin FTSE Europe ETF

 

Franklin FTSE Saudi Arabia ETF

Franklin FTSE Europe Hedged ETF

 

Franklin FTSE South Africa ETF

Franklin FTSE France ETF

 

Franklin FTSE South Korea ETF

Franklin FTSE Germany ETF

 

Franklin FTSE Switzerland ETF

Franklin FTSE Hong Kong ETF

 

Franklin FTSE Taiwan ETF

Franklin FTSE India ETF

 

Franklin FTSE United Kingdom ETF


Contents        
Annual Report       
Economic and Market Overview      2  
Franklin FTSE Asia ex Japan ETF      3  
Franklin FTSE Australia ETF      9  
Franklin FTSE Brazil ETF      15  
Franklin FTSE Canada ETF      21  
Franklin FTSE China ETF      27  
Franklin FTSE Europe ETF      33  
Franklin FTSE Europe Hedged ETF      39  
Franklin FTSE France ETF      46  
Franklin FTSE Germany ETF      52  
Franklin FTSE Hong Kong ETF      58  
Franklin FTSE India ETF      64  
Franklin FTSE Italy ETF      70  
Franklin FTSE Japan ETF      76  
Franklin FTSE Japan Hedged ETF      82  
Franklin FTSE Latin America ETF      88  

 

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

    

 

Franklin FTSE Mexico ETF    94
Franklin FTSE Saudi Arabia ETF    100
Franklin FTSE South Africa ETF    106
Franklin FTSE South Korea ETF    112
Franklin FTSE Switzerland ETF    118
Franklin FTSE Taiwan ETF    124
Franklin FTSE United Kingdom ETF    130
Financial Highlights and Schedules of Investments    136
Financial Statements    304
Notes to Financial Statements    327
Report of Independent Registered Public Accounting Firm    356
Tax Information    357
Board Members and Officers    359
Shareholder Information    362

 

         
Not FDIC Insured   |   May Lose Value   |   No Bank Guarantee  

 

           
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Annual Report

             1


ANNUAL REPORT

Economic and Market Overview

 

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

In the U.S., gross domestic product (GDP) recovered from a slight contraction during the first half of the year, expanding in the second half of 2022 amid rising government spending and private investment. The labor market remained strong, as hiring continued at a brisk pace and unemployment reached its lowest level in over 50 years. In an effort to control inflation, the U.S. Federal Reserve (Fed) raised the federal funds target rate at each of its eight meetings during the period to end at a range of 4.75%–5.00%, a full 450 basis points higher than at the beginning of the period. Furthermore, the Fed indicated it would continue to reduce its U.S. Treasury and agency debt and mortgage-backed security holdings.

Economic growth in the eurozone was tepid during 2022, ending with zero growth in the fourth quarter. The ongoing war in Ukraine disrupted supply chains, weakened the economic outlook and contributed to record high inflation across the eurozone, as energy prices soared in the first half of the period. However, governments spent significant sums to subsidize consumers and find alternative supplies. Consequently, the price of natural gas in Europe declined notably in the period’s second half, providing a tailwind for European stocks. The European Central Bank increased interest rates in July 2022 for the first time in 11 years to curtail growing inflation and further raised rates in five subsequent meetings. In this environment, European developed market equities, as measured by the MSCI Europe Index-NR, posted a +1.38% total return for the 12 months under review.1

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

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

 

 

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

 

 

1. Source: Morningstar.

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

 

           
2             

Annual Report

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Franklin FTSE Asia ex Japan ETF

 

This annual report for Franklin FTSE Asia ex Japan ETF covers the fiscal year ended March 31, 2023.

Your Fund’s Goal and Main Investments

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

 

Top 10 Sectors/Industries       
3/31/23       
    

% of Total

Net Assets

 

 

 

Banks

     11.4%  

 

 

Semiconductors & Semiconductor Equipment

     10.0%  

 

 

Interactive Media & Services

     6.4%  

 

 

Technology Hardware, Storage & Peripherals

     5.8%  

 

 

Insurance

     4.4%  

 

 

Oil, Gas & Consumable Fuels

     3.8%  

 

 

Internet & Direct Marketing Retail

     3.5%  

 

 

Hotels, Restaurants & Leisure

     3.4%  

 

 

Real Estate Management & Development

     3.4%  

 

 

Electronic Equipment, Instruments & Components

     3.3%  

 

 

Performance Overview

During the 12-month period, the Fund posted cumulative total returns of -8.16% based on market price and -9.10% based on net asset value. In comparison, the FTSE Asia ex Japan Capped Index posted a -9.08% total return for the same period.2 You can find more of the Fund’s performance data in the Performance Summary beginning on page 5.

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

 

 

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

2. Source: FactSet.

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

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

The dollar value, number of shares or principal amount, and names of all portfolio holdings are listed in the Fund’s Schedule of Investments (SOI). The SOI begins on page 137.

 

           
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Annual Report

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FRANKLIN FTSE ASIA EX JAPAN ETF

 

Top 10 Holdings       
3/31/23       

Company

Sector/Industry, Country

  

% of Total

Net Assets

 

 

 

Taiwan Semiconductor Manufacturing Co. Ltd.

Semiconductors & Semiconductor Equipment, Taiwan

     6.7%  

 

 

Tencent Holdings Ltd.

Interactive Media & Services, China

     4.7%  

 

 

Samsung Electronics Co. Ltd.

Technology Hardware, Storage & Peripherals,
South Korea

     4.3%  

 

 

Alibaba Group Holding Ltd., Class A

Internet & Direct Marketing Retail, China

     3.0%  

 

 

AIA Group Ltd.

Insurance, Hong Kong

     2.0%  

 

 

Reliance Industries Ltd.

Oil, Gas & Consumable Fuels, India

     1.5%  

 

 

Meituan, Class B

Hotels, Restaurants & Leisure, China

     1.4%  

 

 

Infosys Ltd.

IT Services, India

     1.0%  

 

 

China Construction Bank Corp., Class H

Banks, China

     1.0%  

 

 

Housing Development Finance Corp. Ltd.

Financial Services, India

     0.9%  

 

 

 

Top 10 Countries       
3/31/23       
    

% of Total

Net Assets

 

 

 

China

     35.4%  

 

 

Taiwan

     16.4%  

 

 

India

     15.8%  

 

 

South Korea

     13.1%  

 

 

Hong Kong

     7.4%  

 

 

Singapore

     3.6%  

 

 

Thailand

     2.6%  

 

 

Indonesia

     2.3%  

 

 

Malaysia

     1.8%  

 

 

Philippines

     0.9%  

 

 

Manager’s Discussion

For the fiscal year ended March 31, 2023, the only sector that contributed to the Fund’s absolute performance was consumer staples. Individual holdings that lifted the Fund’s absolute return included Tencent Holdings, PDD Holdings and Trip.com Group.

CFA® is a trademark owned by CFA Institute.

For the same period, the sectors that detracted most from the Fund’s absolute performance were information technology, financials and consumer discretionary. Individual holdings that hindered the Fund’s absolute return included Taiwan Semiconductor Manufacturing Co., Alibaba Group Holding and JD.com.

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

Dina Ting, CFA

Hailey Harris

Joe Diederich

Basit Amin, CFA

Portfolio Management Team

 

 

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

 

           
4             

Annual Report

  franklintempleton.com


FRANKLIN FTSE ASIA EX JAPAN ETF

 

Performance Summary as of March 31, 2023

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

Net asset value or “NAV” is the value of one share of a fund as calculated in accordance with the standard formula for valuing mutual fund shares. The price used to calculate market return (Market Price) is determined by using the midpoint between the highest bid and the lowest offer on the primary stock exchange on which shares of a fund are listed for trading, as of the time that such fund’s NAV is calculated. Since shares of the Fund did not trade in the secondary market until after the Fund’s inception, for the period from inception to the first day of secondary trading (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 3/31/231

 

     Cumulative Total Return2      Average Annual Total Return2  
  

 

 

    

 

 

 
           Based on
NAV3
    

Based on

market price4

    

   Based on

NAV3

    

Based on

market price4

 

1-Year

     -9.10%        -8.16%        -9.10%        -8.16%  

 

 

3-Year

     +24.58%        +25.35%        +7.60%        +7.82%  

 

 

5-Year

     +1.72%        -0.62%        +0.34%        -0.12%  

 

 

Since Inception (2/6/18)

     +1.50%        +1.40%        +0.29%        +0.27%  

 

 

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

 

 

See page 7 for Performance Summary footnotes.

 

           
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Annual Report

             5


FRANKLIN FTSE ASIA EX JAPAN ETF

PERFORMANCE SUMMARY

 

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

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

 

LOGO

 

 

See page 7 for Performance Summary footnotes.

 

           
6             

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FRANKLIN FTSE ASIA EX JAPAN ETF

PERFORMANCE SUMMARY

 

Distributions (4/1/22–3/31/23)
Net Investment      
Income    

$0.587567

 

 

Total Annual Operating Expenses6
    

  0.19%

  

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 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.

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

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

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

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

4. Assumes reinvestment of distributions based on market price.

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

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

 

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

 

           
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Annual Report

             7


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 10/1/22

  

Ending

Account

Value 3/31/23

    

Expenses

Paid During

Period

10/1/22–3/31/231

    

Ending

Account

Value 3/31/23

    

Expenses

Paid During

Period

10/1/22–3/31/231

    

Net Annualized

Expense Ratio

 
$1,000.00      $1,157.00        $1.02        $1,023.98        $0.96        0.19 %   

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

 

           
8             

Annual Report

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Franklin FTSE Australia ETF

    

 

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

Your Fund’s Goal and Main Investments

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

 

Top 10 Sectors/Industries     
3/31/23     
      % of Total
Net Assets

Metals & Mining

   23.5%

Banks

   20.9%

Biotechnology

   7.1%

Oil, Gas & Consumable Fuels

   6.3%

Consumer Staples Distribution & Retail

   4.2%

Capital Markets

   4.1%

Diversified REITs

   3.4%

Insurance

   3.3%

Broadline Retail

   3.0%

Transportation Infrastructure

   3.0%

Performance Overview

During the 12-month period, the Fund posted cumulative total returns of -8.94% based on market price and -9.90% based on net asset value. In comparison, the FTSE Australia Capped Index posted a -9.86% total return for the same period.2 You can find more of the Fund’s performance data in the Performance Summary beginning on page 11.

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 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 174.

 

           
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FRANKLIN FTSE AUSTRALIA ETF

 

Top 10 Holdings     
3/31/23     
Company
Sector/Industry, Country
  

% of Total

Net Assets

BHP Group Ltd.

Metals & Mining, Australia

   12.2%

Commonwealth Bank of Australia

Banks, Australia

   8.5%

CSL Ltd.

Biotechnology, Australia

   7.1%

National Australia Bank Ltd.

Banks, Australia

   4.5%

Westpac Banking Corp.

Banks, Australia

   3.9%

ANZ Group Holdings Ltd.

Banks, Australia

   3.5%

Woodside Energy Group Ltd.

Oil, Gas & Consumable Fuels, Australia

   3.2%

Macquarie Group Ltd.

Capital Markets, Australia

   3.1%

Wesfarmers Ltd.

Broadline Retail, Australia

   2.9%

Woolworths Group Ltd.

Consumer Staples Distribution & Retail, Australia

   2.4%

Manager’s Discussion

For the fiscal year ended March 31, 2023, the sectors that contributed to the Fund’s absolute performance were energy and utilities. Individual holdings that lifted the Fund’s absolute return included Woodside Petroleum, Mineral Resources and Brambles.

For the same period, the sectors that detracted most from the Fund’s absolute performance were financials, materials and real estate. Individual holdings that hindered the Fund’s absolute return included Commonwealth Bank of Australia, National Australia Bank and Macquarie Group.

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

Dina Ting, CFA

Hailey Harris

Joe Diederich

Basit Amin, CFA

Portfolio Management Team

 

 

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

 

           
10             

Annual Report

  franklintempleton.com


FRANKLIN FTSE AUSTRALIA ETF

 

Performance Summary as of March 31, 2023

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

Net asset value or “NAV” is the value of one share of a fund as calculated in accordance with the standard formula for valuing mutual fund shares. The price used to calculate market return (Market Price) is determined by using the midpoint between the highest bid and the lowest offer on the primary stock exchange on which shares of a fund are listed for trading, as of the time that such fund’s NAV is calculated. Since shares of the Fund did not trade in the secondary market until after the Fund’s inception, for the period from inception to the first day of secondary trading (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 3/31/231

 

           Cumulative Total Return2      Average Annual Total Return2  
     

Based on

NAV3

    

Based on

market price4

    

Based on

NAV3

     Based on
market price4
 

1-Year

     -9.90%        -8.94%        -9.90%        -8.94%  

3-Year

     +76.27%        +73.00%        +20.80%        +20.05%  

5-Year

     +35.24%        +34.40%        +6.22%        +6.09%  

Since Inception (11/2/17)

     +32.48%        +32.99%        +5.34%        +5.41%  

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 13 for Performance Summary footnotes.

 

 

           
franklintempleton.com  

Annual Report

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FRANKLIN FTSE AUSTRALIA ETF

PERFORMANCE SUMMARY

 

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

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

11/2/17-3/31/23

 

     LOGO

 

 

See page 13 for Performance Summary footnotes.

 

 

           
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FRANKLIN FTSE AUSTRALIA ETF

PERFORMANCE SUMMARY

 

Distributions (4/1/22–3/31/23)

Net Investment

Income

$1.548986

Total Annual Operating Expenses6

 

 

  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.

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

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

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

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

4. Assumes reinvestment of distributions based on market price.

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

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

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

 

           
franklintempleton.com  

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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 10/1/22

   

Ending

Account

Value 3/31/23

   

Expenses

Paid During

Period
10/1/22–3/31/231

   

Ending

Account

Value 3/31/23

   

Expenses

Paid During

Period

10/1/22–3/31/231

    Net Annualized
Expense Ratio
 
  $1,000.00       $1,175.80       $0.49       $1,024.48       $0.45       0.09 %      

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

 

           
14             

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Franklin FTSE Brazil ETF

    

 

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

Your Fund’s Goal and Main Investments

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

 

Top 10 Sectors/Industries     

3/31/23

 

    
      % of Total
Net Assets

Metals & Mining

   20.5%

Banks

   16.6%

Oil, Gas & Consumable Fuels

   15.7%

Electric Utilities

   8.2%

Capital Markets

   4.7%

Ground Transportation

   3.9%

Beverages

   3.4%

Machinery

   3.3%

Consumer Staples Distribution & Retail

   2.9%

Food Products

   2.4%

Performance Overview

During the 12-month period, the Fund posted cumulative total returns of -19.39% based on market price and -19.57% based on net asset value. In comparison, the FTSE Brazil Capped Index posted a -19.21% total return for the same period.2 You can find more of the Fund’s performance data in the Performance Summary beginning on page 17.

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

 

Top 10 Holdings

3/31/23

 

Company

Sector/Industry, Country

  

% of Total

Net Assets

Vale SA

Metals & Mining, Brazil

   17.2%

Petroleo Brasileiro SA, 43.945%, pfd.

Oil, Gas & Consumable Fuels, Brazil

   12.6%

Itau Unibanco Holding SA, 4.349%, pfd.

Banks, Brazil

   7.1%

Banco Bradesco SA, 6.492%, pfd.

Banks, Brazil

   4.8%

B3 SA - Brasil Bolsa Balcao

Capital Markets, Brazil

   3.5%

Ambev SA

Beverages, Brazil

   3.5%

WEG SA

Machinery, Brazil

   3.3%

Centrais Eletricas Brasileiras SA

Electric Utilities, Brazil

   2.4%

Itausa SA, 4.745%, pfd.

Banks, Brazil

   2.4%

Localiza Rent a Car SA

Ground Transportation, Brazil

   2.3%

Investment Strategy

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

 

 

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

2. Source: FactSet.

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 178.

 

           
franklintempleton.com  

Annual Report

             15


FRANKLIN FTSE BRAZIL ETF

 

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

Manager’s Discussion

For the fiscal year ended March 31, 2023, the sectors that contributed to the Fund’s absolute performance were energy and industrials. Individual holdings that lifted the Fund’s absolute return included Petroleo Brasileiro (Petrobras), WEG and Banco do Brasil.

For the same period, the sectors that detracted most from the Fund’s absolute performance were materials, financials and consumer staples. Individual holdings that hindered the Fund’s absolute return included Vale, Hapvida Participacoes e Investimentos and Banco Bradesco.

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

Dina Ting, CFA

Hailey Harris

Joe Diederich

Basit Amin, CFA

Portfolio Management Team

 

 

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

 

           
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FRANKLIN FTSE BRAZIL ETF

 

Performance Summary as of March 31, 2023

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

Net asset value or “NAV” is the value of one share of a fund as calculated in accordance with the standard formula for valuing mutual fund shares. The price used to calculate market return (Market Price) is determined by using the midpoint between the highest bid and the lowest offer on the primary stock exchange on which shares of a fund are listed for trading, as of the time that such fund’s NAV is calculated. Since shares of the Fund did not trade in the secondary market until after the Fund’s inception, for the period from inception to the first day of secondary trading (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 3/31/231

 

           Cumulative Total Return2      Average Annual Total Return2  
     

Based on

NAV3

    

Based on

market price4

    

Based on

NAV3

    

Based on

market price4

 

1-Year

     -19.57%        -19.39%        -19.57%        -19.39%  

3-Year

     +45.30%        +45.43%        +13.26%        +13.30%  

5-Year

     -18.64%        -19.26%        -4.04%        -4.19%  

Since Inception (11/3/17)

     -6.56%        -6.33%        -1.25%        -1.20%  

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 19 for Performance Summary footnotes.

 

 

           
franklintempleton.com  

Annual Report

             17


FRANKLIN FTSE BRAZIL ETF

PERFORMANCE SUMMARY

 

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

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

11/3/17-3/31/23

 

     LOGO

 

See page 19 for Performance Summary footnotes.

 

 

           
18             

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FRANKLIN FTSE BRAZIL ETF

PERFORMANCE SUMMARY

 

Distributions (4/1/22–3/31/23)

 

Net Investment

Income

$2.065896

Total Annual Operating Expenses6

 

 

  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.

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

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

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

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

4. Assumes reinvestment of distributions based on market price.

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

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

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

 

           
franklintempleton.com  

Annual Report

             19


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 10/1/22

 

 

 

   

Ending

Account

Value 3/31/23

 

 

 

   

Expenses

Paid During

Period

10/1/22–3/31/231

 

 

 

 

   

Ending
Account
Value 3/31/23
 
 
 
   

Expenses

Paid During

Period

10/1/22–3/31/231

 

 

 

 

   
Net Annualized
Expense Ratio
 
 
  $1,000.00       $989.40       $0.94       $1,023.98       $0.96       0.19

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

 

           
20             

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Franklin FTSE Canada ETF

    

 

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

Your Fund’s Goal and Main Investments

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

 

Top 10 Sectors/Industries
3/31/23
     

% of Total

Net Assets

Banks

   27.1%

Oil, Gas & Consumable Fuels

   18.0%

Ground Transportation

   9.1%

Insurance

   7.8%

Metals & Mining

   7.8%

IT Services

   4.8%

Consumer Staples Distribution & Retail

   4.8%

Capital Markets

   3.5%

Chemicals

   2.5%

Software

   2.3%

Performance Overview

During the 12-month period, the Fund posted cumulative total returns of -13.44% based on market price and -12.82% based on net asset value. In comparison, the FTSE Canada Capped Index posted a -13.05% total return for the same period.2 You can find more of the Fund’s performance data in the Performance Summary beginning on page 23.

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 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 182.

 

           
franklintempleton.com  

Annual Report

             21


FRANKLIN FTSE CANADA ETF

 

Top 10 Holdings     
3/31/23     

Company

Sector/Industry, Country

  

% of Total

Net Assets

Royal Bank of Canada

Banks, Canada

   8.6%

Toronto-Dominion Bank

Banks, Canada

   7.0%

Enbridge, Inc.

Oil, Gas & Consumable Fuels, Canada

   4.9%

Canadian Pacific Railway Ltd.

Ground Transportation, Canada

   4.6%

Canadian National Railway Co.

Ground Transportation, Canada

   4.5%

Canadian Natural Resources Ltd.

Oil, Gas & Consumable Fuels, Canada

   3.8%

Bank of Nova Scotia

Banks, Canada

   3.8%

Bank of Montreal

Banks, Canada

   3.8%

Shopify, Inc., Class A

IT Services, Canada

   3.5%

Brookfield Corp.

Capital Markets, Canada

   2.8%

Manager’s Discussion

For the fiscal year ended March 31, 2023, the sectors that contributed to the Fund’s absolute performance were consumer staples and consumer discretionary. Individual holdings that lifted the Fund’s absolute return included Alimentation Couche-Tard, Constellation Software and Thomson Reuters.

For the same period, the sectors that detracted most from the Fund’s absolute performance were financials, energy and materials. Individual holdings that hindered the Fund’s absolute return included The Toronto-Dominion Bank, Bank of Nova Scotia and Brookfield Asset Management.

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

Dina Ting, CFA

Hailey Harris

Joe Diederich

Basit Amin, CFA

Portfolio Management Team

 

 

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

 

           
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FRANKLIN FTSE CANADA ETF

 

Performance Summary as of March 31, 2023

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

Net asset value or “NAV” is the value of one share of a fund as calculated in accordance with the standard formula for valuing mutual fund shares. The price used to calculate market return (Market Price) is determined by using the midpoint between the highest bid and the lowest offer on the primary stock exchange on which shares of a fund are listed for trading, as of the time that such fund’s NAV is calculated. Since shares of the Fund did not trade in the secondary market until after the Fund’s inception, for the period from inception to the first day of secondary trading (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 3/31/231

 

           Cumulative Total Return2      Average Annual Total Return2  
     

Based on

NAV3

    

Based on

market price4

    

Based on

NAV3

    

Based on

market price4

 

1-Year

     -12.82%        -13.44%        -12.82%        -13.44%  

3-Year

     +69.14%        +68.07%        +19.15%        +18.90%  

5-Year

     +46.24%        +45.89%        +7.90%        +7.85%  

Since Inception (11/2/17)

     +40.30%        +40.26%        +6.46%        +6.46%  

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

See page 25 for Performance Summary footnotes.

 

 

           
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FRANKLIN FTSE CANADA ETF

PERFORMANCE SUMMARY

 

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

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

 

11/2/17-3/31/23LP12

 

     LOGO

 

See page 25 for Performance Summary footnotes.

 

 

           
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FRANKLIN FTSE CANADA ETF

PERFORMANCE SUMMARY

 

Distributions (4/1/22–3/31/23)

 

Net Investment
Income

$0.654492

Total Annual Operating Expenses6

 

 

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.

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

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

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

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

4. Assumes reinvestment of distributions based on market price.

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

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

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

 

           
franklintempleton.com  

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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 10/1/22

   

Ending

Account

Value 3/31/23

   

Expenses

Paid During

Period

10/1/22–3/31/231

   

Ending

Account

Value 3/31/23

   

Expenses

Paid During

Period

10/1/22–3/31/231

   

Net Annualized

Expense Ratio

 
  $1,000.00       $1,115.50       $0.47       $1,024.48       $0.45       0.09 %      

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

 

           
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Franklin FTSE China ETF

    

 

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

Your Fund’s Goal and Main Investments

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

 

Top 10 Sectors/Industries     
3/31/23     
     

% of Total

Net Assets

Interactive Media & Services

   16.0%

Internet & Direct Marketing Retail

   9.9%

Banks

   9.8%

Hotels, Restaurants & Leisure

   7.0%

Automobiles

   3.9%

Insurance

   3.8%

Beverages

   3.5%

Real Estate Management & Development

   3.3%

Oil, Gas & Consumable Fuels

   2.8%

Broadline Retail

   2.6%

Performance Overview

During the 12-month period, the Fund posted cumulative total returns of -4.34% based on market price and -5.68% based on net asset value. In comparison, the FTSE China Capped Index posted a -5.70% total return for the same period.2 You can find more of the Fund’s performance data in the Performance Summary beginning on page 29.

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 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 185.

 

           
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FRANKLIN FTSE CHINA ETF

 

Top 10 Holdings     
3/31/23     
Company
Sector/Industry, Country
  

% of Total

Net Assets

Tencent Holdings Ltd.

Interactive Media & Services, China

   13.2%

Alibaba Group Holding Ltd., Class A

Internet & Direct Marketing Retail, China

   8.4%

Meituan, Class B

Hotels, Restaurants & Leisure, China

   3.9%

China Construction Bank Corp., Class H

Banks, China

   2.7%

JD.com, Inc., Class A

Broadline Retail, China

   2.3%

Baidu, Inc., Class A

Interactive Media & Services, China

   1.9%

Industrial & Commercial Bank of China Ltd., Class H

Banks, China

   1.9%

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

Insurance, China

   1.8%

PDD Holdings, Inc., ADR

Internet & Direct Marketing Retail, China

   1.5%

NetEase, Inc.

Entertainment, China

   1.4%

Manager’s Discussion

For the fiscal year ended March 31, 2023, the sectors that contributed to the Fund’s absolute performance were communication services and energy. Individual holdings that lifted the Fund’s absolute return included Tencent Holdings, PDD Holdings and Trip.com Group.

For the same period, the sectors that detracted most from the Fund’s absolute performance were consumer discretionary, financials and real estate. Individual holdings that hindered the Fund’s absolute return included Alibaba Group Holding, JD.com and NIO.

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

Dina Ting, CFA

Hailey Harris

Joe Diederich

Basit Amin, CFA

Portfolio Management Team

 

 

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

 

           
28             

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  franklintempleton.com


FRANKLIN FTSE CHINA ETF

 

Performance Summary as of March 31, 2023

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

Net asset value or “NAV” is the value of one share of a fund as calculated in accordance with the standard formula for valuing mutual fund shares. The price used to calculate market return (Market Price) is determined by using the midpoint between the highest bid and the lowest offer on the primary stock exchange on which shares of a fund are listed for trading, as of the time that such fund’s NAV is calculated. Since shares of the Fund did not trade in the secondary market until after the Fund’s inception, for the period from inception to the first day of secondary trading (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 3/31/231

 

           Cumulative Total Return2      Average Annual Total Return2  
     

Based on

NAV3

    

Based on

market price4

    

Based on

NAV3

    

Based on

market price4

 

1-Year

     -5.68%        -4.34%        -5.68%        -4.34%  

3-Year

     -6.71%        -6.75%        -2.29%        -2.30%  

5-Year

     -17.19%        -18.88%        -3.70%        -4.10%  

Since Inception (11/2/17)

     -13.74%        -13.94%        -2.70%        -2.74%  

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.

 

 

           
franklintempleton.com  

Annual Report

             29


FRANKLIN FTSE CHINA ETF

PERFORMANCE SUMMARY

 

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

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

11/2/17-3/31/23

 

     LOGO

 

 

See page 31 for Performance Summary footnotes.

 

 

           
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FRANKLIN FTSE CHINA ETF

PERFORMANCE SUMMARY

 

Distributions (4/1/22–3/31/23)

Net Investment

Income

$0.502096

Total Annual Operating Expenses6

 

 

  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.

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

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

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

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

4. Assumes reinvestment of distributions based on market price.

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

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

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

 

           
franklintempleton.com  

Annual Report

             31


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 10/1/22

   

Ending

Account
Value 3/31/23

   

Expenses

Paid During
Period

10/1/22–3/31/231

   

Ending

Account
Value 3/31/23

   

Expenses

Paid During
Period

10/1/22–3/31/231

   

Net Annualized

Expense Ratio

 
  $1,000.00       $795.80       $0.85       $1,023.98       $0.96       0.19 %      

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

 

           
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Franklin FTSE Europe ETF

 

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

Your Fund’s Goal and Main Investments

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

 

Top 10 Sectors/Industries     
3/31/23     
      % of Total
Net Assets

Pharmaceuticals

   11.1%

Banks

   7.6%

Oil, Gas & Consumable Fuels

   5.5%

Textiles, Apparel & Luxury Goods

   5.4%

Insurance

   5.2%

Food Products

   4.4%

Semiconductors & Semiconductor Equipment

   3.8%

Chemicals

   3.3%

Machinery

   3.0%

Beverages

   2.7%

Performance Overview

During the 12-month period, the Fund posted cumulative total returns of +2.18% based on market price and +1.31% based on net asset value. In comparison, the FTSE Developed Europe Capped Index posted a +0.68% total return for the same period.2 You can find more of the Fund’s performance data in the Performance Summary beginning on page 35.

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 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 209.

 

           
franklintempleton.com  

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             33


FRANKLIN FTSE EUROPE ETF

 

Top 10 Holdings     
3/31/23     
Company
Sector/Industry, Country
   % of Total
Net Assets

Nestle SA

Food Products, Switzerland

   3.2%

ASML Holding NV

Semiconductors & Semiconductor Equipment, Netherlands

   2.6%

Novo Nordisk AS, Class B

Pharmaceuticals, Denmark

   2.4%

LVMH Moet Hennessy Louis Vuitton SE

Textiles, Apparel & Luxury Goods, France

   2.2%

AstraZeneca PLC

Pharmaceuticals, United Kingdom

   2.0%

Roche Holding AG

Pharmaceuticals, Switzerland

   2.0%

Shell PLC

Oil, Gas & Consumable Fuels, Netherlands

   1.9%

Novartis AG

Pharmaceuticals, Switzerland

   1.8%

SAP SE

Software, Germany

   1.4%

HSBC Holdings PLC

Banks, United Kingdom

   1.3%

Manager’s Discussion

For the fiscal year ended March 31, 2023, the sectors that contributed most to the Fund’s absolute performance were consumer discretionary, industrials and energy. Individual holdings that lifted the Fund’s absolute return included Novo Nordisk, LVMH Moet Hennessy Louis Vuitton and Total Energies.

For the same period, the sectors that detracted most from the Fund’s absolute performance were real estate, materials and health care. Individual holdings that hindered the Fund’s absolute return included Roche Holding, Deutsche Annington Immobilien and Anglo American.

Top 10 Countries     
3/31/23     
     

% of Total

Net Assets

United Kingdom

   19.2%

France

   17.3%

Switzerland

   14.5%

Germany

   12.8%

Netherlands

   9.0%

Sweden

   4.8%

Denmark

   4.4%

Spain

   3.9%

Italy

   3.4%

Finland

   1.9%

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

Dina Ting, CFA

Hailey Harris

Joe Diederich

Basit Amin, CFA

Portfolio Management Team

 

 

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

 

           
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FRANKLIN FTSE EUROPE ETF

 

Performance Summary as of March 31, 2023

 

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

Net asset value or “NAV” is the value of one share of a fund as calculated in accordance with the standard formula for valuing mutual fund shares. The price used to calculate market return (Market Price) is determined by using the midpoint between the highest bid and the lowest offer on the primary stock exchange on which shares of a fund are listed for trading, as of the time that such fund’s NAV is calculated. Since shares of the Fund did not trade in the secondary market until after the Fund’s inception, for the period from inception to the first day of secondary trading (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 3/31/231

 

         Cumulative Total Return2      Average Annual Total Return2  
     

Based on

NAV3

    

Based on

market price4

    

Based on

NAV3

    

Based on

market price4

 

1-Year

     +1.31%        +2.18%        +1.31%        +2.18%  

3-Year

     +53.04%        +52.80%        +15.24%        +15.18%  

5-Year

     +24.64%        +24.00%        +4.50%        +4.40%  

Since Inception (11/2/17)

     +24.32%        +24.37%        +4.11%        +4.12%  

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 37 for Performance Summary footnotes.

 

 

           
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FRANKLIN FTSE EUROPE ETF

PERFORMANCE SUMMARY

 

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

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

11/2/17-3/31/23

 

     LOGO

 

See page 37 for Performance Summary footnotes.

 

 

 

           
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FRANKLIN FTSE EUROPE ETF

PERFORMANCE SUMMARY

 

Distributions (4/1/22–3/31/23)

Net Investment

Income

$0.836887

Total Annual Operating Expenses6

 

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.

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

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

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

 

           
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FRANKLIN 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 10/1/22
   

Ending

Account

Value 3/31/23

   

Expenses

Paid During

Period

10/1/22–3/31/231,2

   

Ending

Account

Value 3/31/23

   

Expenses

Paid During

Period

10/1/22–3/31/231,2

    Net Annualized
Expense Ratio2
 
  $1,000.00       $1,325.50       $1.68       $1,023.49       $1.46       0.29 %      

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

2. Included in the expense ratio are “Other fees” described in Note 1 under Income and Deferred Taxes which are not annualized. Without these expenses, the expense ratio would have been 0.09% and the actual and hypothetical expenses paid during the period would have been $0.52 and $0.45, respectively.

 

 

 

           
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Franklin FTSE Europe Hedged ETF

 

This annual report for Franklin FTSE Europe Hedged ETF covers the fiscal year ended March 31, 2023.

On May 11, 2023, the Board of Trustees of the Trust approved changes to the Fund’s (i) name and ticker symbol, (ii) underlying index, including the designation of the primary benchmark index, (iii) investment goal, strategies and policies, and (iv) other related changes. Effective on or about August 1, 2023, the Fund will be renamed the Franklin FTSE Eurozone ETF (Ticker: FLEU). The Fund’s investment goal will change to seek to provide investment results that closely correspond, before fees and expenses, to the performance of the FTSE Developed Eurozone Index (the “Underlying Index”). Under normal market conditions, the Fund will invest at least 80% of its assets in the component securities of the Underlying Index and in depositary receipts representing such securities. The Underlying Index will also serve as the Fund’s primary benchmark.

The Underlying Index is a free float-adjusted market capitalization weighted index maintained and calculated by FTSE Russell (Index Provider). The Underlying Index is designed to measure the performance of large- and mid-capitalization stocks from developed Eurozone countries. The Eurozone is a geographic and economic region that consists of all the European Union countries that have fully incorporated the euro as their national currency. The Underlying Index currently consists of securities from the following ten developed market countries: Austria, Belgium, Finland, France, Germany, Ireland, Italy, the Netherlands, Portugal and Spain. FTSE Russell conducts a semi-annual review of the Underlying Index.

The Fund may make a special distribution of capital gains in connection with the investment strategy change so that new investors in the Fund would not be subject to the undistributed capital gains attributable to the old currency hedged investment strategy.

The Fund will change its non-fundamental investment policy in accordance with Rule 35d-1 under the Investment Company Act of 1940 (the “Names Rule”) to invest, under

normal market conditions, at least 80% of its assets in equity securities or investments, such as depositary receipts, that are economically tied to the particular country or geographic region suggested by the Fund’s name. For purposes of this Names Rule policy, the Fund considers the securities or investments that are economically tied to the particular country or geographic region suggested by the Fund’s name to be those securities or investments that comprise the Underlying Index.

For more information, please see the Fund’s current prospectus and SAI, as supplemented.

Your Fund’s Goal and Main Investments

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

 

Top 10 Sectors/Industries     
3/31/23     
     

% of Total

Net Assets

Pharmaceuticals

   11.1%

Banks

   7.7%

Oil, Gas & Consumable Fuels

   5.5%

Textiles, Apparel & Luxury Goods

   5.3%

Insurance

   5.2%

Food Products

   4.4%

Semiconductors & Semiconductor Equipment

   3.8%

Chemicals

   3.3%

Machinery

   3.0%

Beverages

   2.6%

 

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

The dollar value, number of shares or principal amount, and names of all portfolio holdings are listed in the Fund’s Schedule of Investments (SOI). The SOI begins on page 222.

 

           
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FRANKLIN FTSE EUROPE HEDGED ETF

 

Performance Overview

During the 12-month period, the Fund posted cumulative total returns of +7.21% based on market price and +7.53% based on net asset value. In comparison, the FTSE Developed Europe Capped Hedged Index posted a -11.96% total return for the same period.2 You can find more of the Fund’s performance data in the Performance Summary beginning on page 42.

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

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

 

Top 10 Holdings     
3/31/23     
Company
Sector/Industry, Country
  

% of Total

Net Assets

Nestle SA

Food Products, Switzerland

   3.2%

ASML Holding NV

Semiconductors & Semiconductor Equipment, Netherlands

   2.6%

Novo Nordisk AS, Class B

Pharmaceuticals, Denmark

   2.4%

LVMH Moet Hennessy Louis Vuitton SE

Textiles, Apparel & Luxury Goods, France

   2.2%

AstraZeneca PLC

Pharmaceuticals, United Kingdom

   2.0%

Roche Holding AG

Pharmaceuticals, Switzerland

   2.0%

Shell PLC

Oil, Gas & Consumable Fuels, Netherlands

   1.9%

Novartis AG

Pharmaceuticals, Switzerland

   1.8%

SAP SE

Software, Germany

   1.4%

HSBC Holdings PLC

Banks, United Kingdom

   1.3%

 

2. Source: FactSet.

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.

 

           
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FRANKLIN FTSE EUROPE HEDGED ETF

 

Manager’s Discussion

For the fiscal year ended March 31, 2023, the sectors that contributed most to the Fund’s absolute performance were consumer discretionary, industrials and energy. Individual holdings that lifted the Fund’s absolute return included Novo Nordisk, LVMH Moet Hennessy Louis Vuitton and Total Energies.

For the same period, the sectors that detracted most from the Fund’s absolute performance were real estate, materials and health care. Individual holdings that hindered the Fund’s absolute return included Roche Holding, Deutsche Annington Immobilien and Anglo American.

 

Top 10 Countries     
3/31/23     
     

% of Total

Net Assets

United Kingdom    19.2%
France    17.3%
Switzerland    14.5%
Germany    12.8%
Netherlands    9.0%
Sweden    4.9%
Denmark    4.4%
Spain    3.9%
Italy    3.4%
Finland    1.9%

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

Dina Ting, CFA

Hailey Harris

Joe Diederich

Basit Amin, CFA

Portfolio Management Team

 

 

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

    

 

           
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FRANKLIN FTSE EUROPE HEDGED ETF

 

Performance Summary as of March 31, 2023

 

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

Net asset value or “NAV” is the value of one share of a fund as calculated in accordance with the standard formula for valuing mutual fund shares. The price used to calculate market return (Market Price) is determined by using the midpoint between the highest bid and the lowest offer on the primary stock exchange on which shares of a fund are listed for trading, as of the time that such fund’s NAV is calculated. Since shares of the Fund did not trade in the secondary market until after the Fund’s inception, for the period from inception to the first day of secondary trading (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 3/31/231

 

     Cumulative Total Return2      Average Annual Total Return2  
     

     Based on

NAV3

    

Based on

market price4

    

Based on

NAV3

    

Based on

market price4

 

1-Year

     +7.53%        +7.21%        +7.53%        +7.21%  

3-Year

     +60.11%        +61.33%        +16.99%        +17.28%  

5-Year

     +53.01%        +50.10%        +8.88%        +8.46%  

Since Inception (11/2/17)

     +45.96%        +45.65%        +7.24%        +7.20%  

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 44 for Performance Summary footnotes.

 

 

           
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FRANKLIN FTSE EUROPE HEDGED ETF

PERFORMANCE SUMMARY

 

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

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

 

11/2/17-3/31/23

 

     LOGO

 

 

See page 44 for Performance Summary footnotes.

 

 

           
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FRANKLIN FTSE EUROPE HEDGED ETF

PERFORMANCE SUMMARY

 

Distributions (4/1/22–3/31/23)      

Net Investment

Income

  

Short-Term

Capital Gain

  

Long-Term

Capital Gain

   Total

 

$0.639769

   $1.897174    $2.490279    $5.027222

 

 

Total Annual Operating Expenses6
    

0.09%                         

  

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.

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

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

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

 

           
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FRANKLIN 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 10/1/22

  

Ending

Account

Value 3/31/23

    

Expenses

Paid During

Period

10/1/22–3/31/231,2

    

Ending

Account

Value 3/31/23

    

Expenses

Paid During

Period

10/1/22–3/31/231,2

    

Net Annualized

Expense Ratio2

 

$1,000.00

     $1,219.60        $0.89        $1,024.13        $0.81        0.16 %   

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

2. Included in the expense ratio are “Other fees” described in Note 1 under Income and Deferred Taxes which are not annualized. Without these expenses, the expense ratio would have been 0.09% and the actual and hypothetical expenses paid during the period would have been $0.50 and $0.45, respectively.

 

           
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Franklin FTSE France ETF

 

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

Your Fund’s Goal and Main Investments

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

 

Top 10 Sectors/Industries
3/31/23     
     

% of Total

Net Assets

Textiles, Apparel & Luxury Goods

   20.8%

Aerospace & Defense

   7.8%

Oil, Gas & Consumable Fuels

   7.2%

Pharmaceuticals

   6.5%

Electrical Equipment

   6.1%

Personal Products

   5.9%

Banks

   5.2%

Chemicals

   4.9%

Construction & Engineering

   3.8%

Insurance

   3.2%

Performance Overview

During the 12-month period, the Fund posted cumulative total returns of +9.97% based on market price and +9.84% based on net asset value. In comparison, the FTSE France Capped Index posted a +8.54% total return for the same period.2 You can find more of the Fund’s performance data in the Performance Summary beginning on page 48.

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 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 236.

 

           
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FRANKLIN FTSE FRANCE ETF

 

Top 10 Holdings     
3/31/23     

Company

Sector/Industry, Country

  

% of Total

Net Assets

LVMH Moet Hennessy Louis Vuitton SE

Textiles, Apparel & Luxury Goods, France

   12.1%

Total Energies SE

Oil, Gas & Consumable Fuels, France

   7.2%

Sanofi

Pharmaceuticals, France

   6.3%

L’Oreal SA

Personal Products, France

   5.9%

Schneider Electric SE

Electrical Equipment, France

   4.7%

Air Liquide SA

Chemicals, France

   4.6%

Airbus SE

Aerospace & Defense, France

   4.0%

BNP Paribas SA

Banks, France

   3.5%

Hermes International

Textiles, Apparel & Luxury Goods, France

   3.4%

AXA SA

Insurance, France

   3.1%

Manager’s Discussion

For the fiscal year ended March 31, 2023, the sectors that contributed most to the Fund’s absolute performance were consumer discretionary, energy and industrials. Individual holdings that lifted the Fund’s absolute return included LVMH Moet Hennessy Louis Vuitton, TotalEnergies and Hermes International.

For the same period, the sectors that detracted from the Fund’s absolute performance were information technology and real estate. Individual holdings that hindered the Fund’s absolute return included Teleperformance, Dassault Systemes and Capgemini.

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

Dina Ting, CFA

Hailey Harris

Joe Diederich

Basit Amin, CFA

Portfolio Management Team

 

 

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

 

           
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FRANKLIN FTSE FRANCE ETF

 

Performance Summary as of March 31, 2023

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

Net asset value or “NAV” is the value of one share of a fund as calculated in accordance with the standard formula for valuing mutual fund shares. The price used to calculate market return (Market Price) is determined by using the midpoint between the highest bid and the lowest offer on the primary stock exchange on which shares of a fund are listed for trading, as of the time that such fund’s NAV is calculated. Since shares of the Fund did not trade in the secondary market until after the Fund’s inception, for the period from inception to the first day of secondary trading (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 3/31/231

 

     Cumulative Total Return2      Average Annual Total Return2
     

     Based on

NAV3

    

Based on

market price4

    

Based on

NAV3

    

Based on

market price4

1-Year

     +9.84%        +9.97%        +9.84%      +9.97%

3-Year

     +71.13%        +71.36%        +19.61%      +19.66%

5-Year

     +37.55%        +34.38%        +6.58%      +6.09%

Since Inception (11/2/17)

     +37.91%        +36.70%        +6.12%      +5.95%

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 50 for Performance Summary footnotes.

 

 

           
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FRANKLIN FTSE FRANCE ETF

PERFORMANCE SUMMARY

 

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

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

11/2/17-3/3/23

 

     LOGO

 

 

See page 50 for Performance Summary footnotes.

 

 

           
franklintempleton.com  

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FRANKLIN FTSE FRANCE ETF

PERFORMANCE SUMMARY

 

Distributions (4/1/22–3/31/23)

Net Investment  

Income

    

$0.794457

  

 

Total Annual Operating Expenses6
   

  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.

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

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

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

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

4. Assumes reinvestment of distributions based on market price.

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

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

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

 

           
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FRANKLIN 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 10/1/22

   

Ending

Account

Value 3/31/23

   

Expenses

Paid During

Period

10/1/22–3/31/231,2

   

Ending

Account

Value 3/31/23

   

Expenses

Paid During

Period

10/1/22–3/31/231,2

   

Net Annualized  

Expense Ratio2

 
  $1,000.00       $1,414.70       $2.71       $1,022.69       $2.27       0.45 %      

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

2. Included in the expense ratio are “Other fees” described in Note 1 under Income and Deferred Taxes which are not annualized. Without these expenses, the expense ratio would have been 0.09% and the actual and hypothetical expenses paid during the period would have been $0.54 and $0.45, respectively.

 

           
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Annual Report

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Franklin FTSE Germany ETF

 

 

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

Your Fund’s Goal and Main Investments

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

 

Top 10 Sectors/Industries     
3/31/23     
      % of Total
Net Assets

Insurance

   11.6%

Software

   10.7%

Automobiles

   10.3%

Industrial Conglomerates

   10.0%

Pharmaceuticals

   6.5%

Diversified Telecommunication Services

   6.4%

Chemicals

   6.2%

Capital Markets

   4.3%

Multi-Utilities

   4.1%

Semiconductors & Semiconductor Equipment

   4.0%

Performance Overview

During the 12-month period, the Fund posted cumulative total returns of +3.60% based on market price and +2.41% based on net asset value. In comparison, the FTSE Germany Capped Index posted a +2.02% total return for the same period.2 You can find more of the Fund’s performance data in the Performance Summary beginning on page 54.

 

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 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 239.

 

           
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FRANKLIN FTSE GERMANY ETF

 

Top 10 Holdings     
3/31/23     

Company

Sector/Industry, Country

   % of Total
Net Assets

SAP SE

Software, Germany

   10.4%

Siemens AG

Industrial Conglomerates, Germany

   9.0%

Allianz SE

Insurance, Germany

   6.9%

Deutsche Telekom AG

Diversified Telecommunication Services, Germany

   6.1%

Mercedes-Benz Group AG

Automobiles, Germany

   4.8%
Bayer AG
Pharmaceuticals, Germany
   4.7%

Infineon Technologies AG

Semiconductors & Semiconductor Equipment, Germany

   4.0%

Muenchener Rueckversicherungs-Gesellschaft AG in Muenchen

Insurance, Germany

   3.6%

BASF SE

Chemicals, Germany

   3.6%

Deutsche Post AG

Air Freight & Logistics, Germany

   3.4%

Manager’s Discussion

For the fiscal year ended March 31, 2023, the sectors that contributed most to the Fund’s absolute performance were industrials, information technology and financials. Individual holdings that lifted the Fund’s absolute return included Siemens, SAP and Deutsche Telekom.

For the same period, the sectors that detracted most from the Fund’s absolute performance were real estate, health care and consumer discretionary. Individual holdings that hindered the Fund’s absolute return included Deutsche Annington Immobilien, Adidas and Bayer.

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

Dina Ting, CFA

Hailey Harris

Joe Diederich

Basit Amin, CFA

Portfolio Management Team

 

 

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

 

           
franklintempleton.com  

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             53


FRANKLIN FTSE GERMANY ETF

 

Performance Summary as of March 31, 2023

 

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

Net asset value or “NAV” is the value of one share of a fund as calculated in accordance with the standard formula for valuing mutual fund shares. The price used to calculate market return (Market Price) is determined by using the midpoint between the highest bid and the lowest offer on the primary stock exchange on which shares of a fund are listed for trading, as of the time that such fund’s NAV is calculated. Since shares of the Fund did not trade in the secondary market until after the Fund’s inception, for the period from inception to the first day of secondary trading (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 3/31/231

 

           Cumulative Total Return2                Average Annual Total Return2  
      Based on
NAV3
     Based on
market price4
             Based on
NAV3
     Based on
market price4
 

1-Year

     +2.41%        +3.60%                 +2.41%        +3.60%  

3-Year

     +44.54%        +45.50%                 +13.06%        +13.32%  

5-Year

     +3.50%        +3.14%                 +0.69%        +0.62%  

Since Inception (11/2/17)

     -0.35%        -0.41%                 -0.06%        -0.08%  

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 GERMANY ETF

PERFORMANCE SUMMARY

 

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

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

11/2/17-3/31/23

 

     LOGO

See page 56 for Performance Summary footnotes.

 

           
franklintempleton.com  

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FRANKLIN FTSE GERMANY ETF

PERFORMANCE SUMMARY

 

Distributions (4/1/22–3/31/23)

 

Net Investment

Income

$0.673099

Total Annual Operating Expenses6

 

 

  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.

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

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

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

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

4. Assumes reinvestment of distributions based on market price.

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

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

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

 

           
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FRANKLIN 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 10/1/22

   

Ending

Account

Value 3/31/23

   

Expenses

Paid During
Period

10/1/22–3/31/231

   

Ending

Account

Value 3/31/23

   

Expenses

Paid During

Period

10/1/22–3/31/231

   

Net Annualized

Expense Ratio

 
  $1,000.00       $1,432.70       $0.55       $1,024.48       $0.45       0.09 %      

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

 

           
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Franklin FTSE Hong Kong ETF

 

This annual report for Franklin FTSE Hong Kong ETF covers the fiscal year ended March 31, 2023.

Your Fund’s Goal and Main Investments

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

 

Top 10 Sectors/Industries     
3/31/23     
     

% of Total

Net Assets

Real Estate Management & Development

   21.9%

Insurance

   19.7%

Capital Markets

   12.9%

Hotels, Restaurants & Leisure

   7.0%

Banks

   5.3%

Electric Utilities

   5.1%

Diversified REITs

   3.9%

Household Durables

   3.8%

Industrial Conglomerates

   2.5%

Gas Utilities

   2.2%

Performance Overview

During the 12-month period, the Fund posted cumulative total returns of -5.24% based on market price and -5.39% based on net asset value. In comparison, the FTSE Hong Kong Capped Index posted a -5.37% total return for the same period.2 You can find more of the Fund’s performance data in the Performance Summary beginning on page 60.

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 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 242.

 

           
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Top 10 Holdings     
3/31/23     

Company

Sector/Industry, Country

  

% of Total

Net Assets

AIA Group Ltd.

Insurance, Hong Kong

   19.7%

Hong Kong Exchanges & Clearing Ltd.

Capital Markets, Hong Kong

   12.8%

Sun Hung Kai Properties Ltd.

Real Estate Management & Development, Hong Kong

   4.5%

CK Hutchison Holdings Ltd., Class A

Real Estate Management & Development, United Kingdom

   3.7%

Link REIT

Diversified REITs, Hong Kong

   3.7%

Galaxy Entertainment Group Ltd.

Hotels, Restaurants & Leisure, Macau

   3.3%

Techtronic Industries Co. Ltd.

Household Durables, Hong Kong

   3.2%

CLP Holdings Ltd.

Electric Utilities, Hong Kong

   2.7%

CK Asset Holdings Ltd.

Real Estate Management & Development, Hong Kong

   2.7%

BOC Hong Kong Holdings Ltd.

Banks, China

   2.6%

Manager’s Discussion

For the fiscal year ended March 31, 2023, the sectors that contributed to the Fund’s absolute performance were consumer discretionary and information technology. Individual holdings that lifted the Fund’s absolute return included AIA Group, Sun Hung Kai Properties and Sands China.

For the same period, the sectors that detracted most from the Fund’s absolute performance were industrials, utilities and real estate. Individual holdings that hindered the Fund’s absolute return included Techtronic Industries, CLP Holdings and Link REIT.

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

Dina Ting, CFA

Hailey Harris

Joe Diederich

Basit Amin, CFA

Portfolio Management Team

 

 

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

 

           
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FRANKLIN FTSE HONG KONG ETF

 

Performance Summary as of March 31, 2023

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

Net asset value or “NAV” is the value of one share of a fund as calculated in accordance with the standard formula for valuing mutual fund shares. The price used to calculate market return (Market Price) is determined by using the midpoint between the highest bid and the lowest offer on the primary stock exchange on which shares of a fund are listed for trading, as of the time that such fund’s NAV is calculated. Since shares of the Fund did not trade in the secondary market until after the Fund’s inception, for the period from inception to the first day of secondary trading (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 3/31/231

 

           Cumulative Total Return2      Average Annual Total Return2  
     

Based on

NAV3

    

Based on

market price4

    

Based on

NAV3

    

Based on

market price4

 

1-Year

     -5.39%        -5.24%        -5.39%        -5.24%  

3-Year

     +14.30%        +14.84%        +4.56%        +4.72%  

5-Year

     -5.10%        -6.77%        -1.04%        -1.39%  

Since Inception (11/2/17)

     -1.58%        -1.43%        -0.29%        -0.27%  

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 62 for Performance Summary footnotes.

 

 

           
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FRANKLIN FTSE HONG KONG ETF

PERFORMANCE SUMMARY

 

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

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

11/2/17-3/31/23

 

     LOGO

 

See page 62 for Performance Summary footnotes.

 

 

           
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FRANKLIN FTSE HONG KONG ETF

PERFORMANCE SUMMARY

 

Distributions (4/1/22–3/31/23)

 

Net Investment

Income

$0.825229

Total Annual Operating Expenses6

 

 

0.09%

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.

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

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

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

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

4. Assumes reinvestment of distributions based on market price.

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

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

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

 

           
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FRANKLIN 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 10/1/22
   

Ending

Account

Value 3/31/23

   

Expenses

Paid During

Period

10/1/22–3/31/231

   

Ending

Account

Value 3/31/23

   

Expenses

Paid During

Period

10/1/22–3/31/231

   

Net Annualized

Expense Ratio

 
  $1,000.00       $1,159.20       $0.48       $1,024.48       $0.45       0.09 %      

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

 

           
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Franklin FTSE India ETF

 

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

Your Fund’s Goal and Main Investments

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

 

Top 10 Sectors/Industries     
3/31/23     
     

% of Total

Net Assets

IT Services

   14.5%

Oil, Gas & Consumable Fuels

   12.0%

Banks

   7.5%

Financial Services

   7.2%

Automobiles

   5.3%

Chemicals

   4.6%

Metals & Mining

   3.9%

Pharmaceuticals

   3.9%

Construction Materials

   3.0%

Consumer Finance

   3.0%

Performance Overview

During the 12-month period, the Fund posted cumulative total returns of -10.43% based on market price and -11.65% based on net asset value. In comparison, the FTSE India Capped Index posted a -12.28% total return for the same period.2 You can find more of the Fund’s performance data in the Performance Summary beginning on page 66.

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 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 246.

 

           
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Top 10 Holdings     
3/31/23     
Company
Sector/Industry, Country
  

% of Total

Net Assets

Reliance Industries Ltd.

Oil, Gas & Consumable Fuels, India

   9.4%

Infosys Ltd.

IT Services, India

   6.3%

Housing Development Finance Corp. Ltd.

Financial Services, India

   5.7%

Tata Consultancy Services Ltd.

IT Services, India

   4.0%

Hindustan Unilever Ltd.

Household Products, India

   2.8%

Axis Bank Ltd.

Banks, India

   2.4%

Bharti Airtel Ltd.

Wireless Telecommunication Services, India

   2.2%

Larsen & Toubro Ltd.

Construction & Engineering, India

   1.8%

ICICI Bank Ltd.

Banks, India

   1.7%

Bajaj Finance Ltd.

Consumer Finance, India

   1.6%

Manager’s Discussion

For the fiscal year ended March 31, 2023, the only sector that contributed to the Fund’s absolute performance was consumer staples. Individual holdings that lifted the Fund’s absolute return included ITC, Hindustan Unilever and Mahindra & Mahindra.

For the same period, the sectors that detracted most from the Fund’s absolute performance were information technology, energy and utilities. Individual holdings that hindered the Fund’s absolute return included Infosys, Reliance Industries and Tata Consultancy Services.

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

Dina Ting, CFA

Hailey Harris

Joe Diederich

Basit Amin, CFA

Portfolio Management Team

 

 

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

 

           
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FRANKLIN FTSE INDIA ETF

 

Performance Summary as of March 31, 2023

 

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

Net asset value or “NAV” is the value of one share of a fund as calculated in accordance with the standard formula for valuing mutual fund shares. The price used to calculate market return (Market Price) is determined by using the midpoint between the highest bid and the lowest offer on the primary stock exchange on which shares of a fund are listed for trading, as of the time that such fund’s NAV is calculated. Since shares of the Fund did not trade in the secondary market until after the Fund’s inception, for the period from inception to the first day of secondary trading (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 3/31/231

 

           Cumulative Total Return2      Average Annual Total Return2  
     

Based on

NAV3

    

Based on

market price4

    

Based on

NAV3

    

Based on

market price4

 

1-Year

     -11.65%        -10.43%        -11.65%        -10.43%  

3-Year

     +78.83%        +82.25%        +21.38%        +22.15%  

5-Year

     +27.94%        +26.71%        +5.05%        +4.85%  

Since Inception (2/6/18)

     +22.66%        +23.67%        +4.05%        +4.21%  

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 68 for Performance Summary footnotes.

 

 

           
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PERFORMANCE SUMMARY

 

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

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

2/6/18-3/31/23

 

     LOGO

 

 

 

See page 68 for Performance Summary footnotes.

 

           
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FRANKLIN FTSE INDIA ETF

PERFORMANCE SUMMARY

 

Distributions (4/1/22–3/31/23)

 

Net Investment

Income

$0.212110

Total Annual Operating Expenses6

 

 

  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.

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

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

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

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

4. Assumes reinvestment of distributions based on market price.

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

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

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

 

           
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FRANKLIN 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 10/1/22
   

Ending

Account

Value 3/31/23

   

Expenses

Paid During

Period

10/1/22–3/31/231

   

Ending

Account

Value 3/31/23

   

Expenses

Paid During

Period

10/1/22–3/31/231

    Net Annualized
Expense Ratio
 
  $1,000.00       $960.80       $0.93       $1,023.98       $0.96       0.19 %      

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

 

           
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Franklin FTSE Italy ETF

 

 

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

Your Fund’s Goal and Main Investments

The Fund seeks to provide investment results that closely

correspond, before fees and expenses, to the performance

of the FTSE Italy RIC Capped Index (the FTSE Italy Capped

Index or the Underlying Index).1 Under normal market

conditions, the Fund invests at least 80% of its assets in the

component securities of the FTSE Italy Capped Index and in

depositary receipts representing such securities.

 

Top 10 Sectors/Industries     
3/31/23     
     

% of Total

Net Assets

Banks

   23.0%

Automobiles

   15.0%

Electric Utilities

   13.2%

Oil, Gas & Consumable Fuels

   6.7%

Insurance

   6.4%

Machinery

   4.9%

Gas Utilities

   4.4%

Textiles, Apparel & Luxury Goods

   3.6%

Diversified Telecommunication Services

   3.3%

Electrical Equipment

   3.3%

Performance Overview

During the 12-month period, the Fund posted cumulative total returns of +8.58% based on market price and +7.51% based on net asset value. In comparison, the FTSE Italy Capped Index posted a +7.13% total return for the same period.2 You can find more of the Fund’s performance data in the Performance Summary beginning on page 72.

Performance data represent past performance, which does not guarantee future results. Investment return and principal value will fluctuate, and you may have a gain or loss when

you sell your shares. Current performance may differ from figures shown. For most recent month-end performance, go to franklintempleton.com or call (800) 342-5236.

Investment Strategy

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

 

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

2. Source: FactSet.

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 251.

 

           
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FRANKLIN FTSE ITALY ETF

 

Top 10 Holdings     
3/31/23     

Company

Sector/Industry, Country

  

% of Total

Net Assets

Enel SpA

Electric Utilities, Italy

   9.8%

Intesa Sanpaolo SpA

Banks, Italy

   8.6%

Stellantis NV

Automobiles, United States

   8.0%

UniCredit SpA

Banks, Italy

   7.5%

Ferrari NV

Automobiles, Italy

   7.1%

Eni SpA

Oil, Gas & Consumable Fuels, Italy

   6.7%

Assicurazioni Generali SpA

Insurance, Italy

   4.5%

Moncler SpA

Textiles, Apparel & Luxury Goods, Italy

   3.6%

CNH Industrial NV

Machinery, United Kingdom

   3.4%

Snam SpA

Gas Utilities, Italy

   3.4%

Manager’s Discussion

For the fiscal year ended March 31, 2023, the sectors that contributed most to the Fund’s absolute performance were financials, consumer discretionary and industrials. Individual holdings that lifted the Fund’s absolute return included UniCredit, Intesa Sanpaolo and Ferrari.

For the same period, the sectors that detracted most from the Fund’s absolute performance were utilities, information technology and health care. Individual holdings that hindered the Fund’s absolute return included Enel, Assicurazioni Generali and Nexi.

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

Dina Ting, CFA

Hailey Harris

Joe Diederich

Basit Amin, CFA

Portfolio Management Team

 

 

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

 

           
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FRANKLIN FTSE ITALY ETF

 

Performance Summary as of March 31, 2023

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

Net asset value or “NAV” is the value of one share of a fund as calculated in accordance with the standard formula for valuing mutual fund shares. The price used to calculate market return (Market Price) is determined by using the midpoint between the highest bid and the lowest offer on the primary stock exchange on which shares of a fund are listed for trading, as of the time that such fund’s NAV is calculated. Since shares of the Fund did not trade in the secondary market until after the Fund’s inception, for the period from inception to the first day of secondary trading (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 3/31/231

 

           Cumulative Total Return2      Average Annual Total Return2  
     

Based on

NAV3

    

Based on

market price4

    

Based on

NAV3

    

Based on

market price4

 

1-Year

     +7.51%        +8.58%        +7.51%        +8.58%  

3-Year

     +61.02%        +61.85%        +17.21%        +17.41%  

5-Year

     +15.13%        +17.38%        +2.86%        +3.26%  

Since Inception (11/2/17)

     +18.80%        +19.00%        +3.24%        +3.27%  

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 74 for Performance Summary footnotes.

 

           
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FRANKLIN FTSE ITALY ETF

PERFORMANCE SUMMARY

 

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

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

11/2/17-3/31/23

 

     LOGO

 

 

See page 74 for Performance Summary footnotes.

 

           
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FRANKLIN FTSE ITALY ETF

PERFORMANCE SUMMARY

 

Distributions (4/1/22–3/31/23)

 

Net Investment

Income

$1.071052

Total Annual Operating Expenses6

 

 

  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.

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

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

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

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

4. Assumes reinvestment of distributions based on market price.

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

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

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

 

           
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FRANKLIN 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 10/1/22

   

Ending

Account

Value 3/31/23

   

Expenses

Paid During

Period

10/1/22–3/31/231

   

Ending

Account

Value 3/31/23

   

Expenses

Paid During

Period

10/1/22–3/31/231

   

Net Annualized

Expense Ratio

 
  $1,000.00       $1,442.00       $0.55       $1,024.48       $0.45       0.09 %      

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

 

           
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Franklin FTSE Japan ETF

    

 

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

Your Fund’s Goal and Main Investments

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

 

Top 10 Sectors/Industries     
3/31/23     
      % of Total
Net Assets

Automobiles

   6.9%

Banks

   5.9%

Pharmaceuticals

   5.9%

Electronic Equipment, Instruments & Components

   5.5%

Machinery

   5.2%

Trading Companies & Distributors

   5.0%

Chemicals

   4.3%

Household Durables

   4.3%

Semiconductors & Semiconductor Equipment

   3.4%

Wireless Telecommunication Services

   3.1%

Performance Overview

During the 12-month period, the Fund posted cumulative total returns of -2.73% based on market price and -4.61% based on net asset value. In comparison, the FTSE Japan Capped Index posted a -4.66% total return for the same period.2 You can find more of the Fund’s performance data in the Performance Summary beginning on page 78.

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 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 253.

 

           
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FRANKLIN FTSE JAPAN ETF

 

Top 10 Holdings     
3/31/23     

Company

Sector/Industry, Country

   % of Total
Net Assets

Toyota Motor Corp.

Automobiles, Japan

   4.4%

Sony Group Corp.

Household Durables, Japan

   2.9%

Keyence Corp.

Electronic Equipment, Instruments & Components, Japan

   2.5%

Mitsubishi UFJ Financial Group, Inc.

Banks, Japan

   1.9%

Daiichi Sankyo Co. Ltd.

Pharmaceuticals, Japan

   1.8%

Shin-Etsu Chemical Co. Ltd.

Chemicals, Japan

   1.6%

Tokyo Electron Ltd.

Semiconductors & Semiconductor Equipment, Japan

   1.4%

Sumitomo Mitsui Financial Group, Inc.

Banks, Japan

   1.3%

KDDI Corp.

Wireless Telecommunication Services, Japan

   1.3%

Hitachi Ltd.

Industrial Conglomerates, Japan

   1.3%

Manager’s Discussion

For the fiscal year ended March 31, 2023, the sectors that contributed most to the Fund’s absolute performance were financials, consumer staples and health care. Individual holdings that lifted the Fund’s absolute return included Daiichi Sankyo, Sumitomo Mitsui Financial Group and Takeda Pharmaceutical.

For the same period, the sectors that detracted most from the Fund’s absolute performance were consumer discretionary, industrials and information technology. Individual holdings that hindered the Fund’s absolute return included Toyota Motor, Recruit Holdings and Tokyo Electron.

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

Dina Ting, CFA

Hailey Harris

Joe Diederich

Basit Amin, CFA

Portfolio Management Team

 

 

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

 

           
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FRANKLIN FTSE JAPAN ETF

 

Performance Summary as of March 31, 2023

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

Net asset value or “NAV” is the value of one share of a fund as calculated in accordance with the standard formula for valuing mutual fund shares. The price used to calculate market return (Market Price) is determined by using the midpoint between the highest bid and the lowest offer on the primary stock exchange on which shares of a fund are listed for trading, as of the time that such fund’s NAV is calculated. Since shares of the Fund did not trade in the secondary market until after the Fund’s inception, for the period from inception to the first day of secondary trading (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 3/31/231

 

           Cumulative Total Return2      Average Annual Total Return2  
      Based on
NAV3
     Based on
market price4
     Based on
NAV3
     Based on
market price4
 

1-Year

     -4.61%        -2.73%        -4.61%        -2.73%  

3-Year

     +24.12%        +26.22%        +7.47%        +8.07%  

5-Year

     +6.71%        +6.04%        +1.31%        +1.18%  

Since Inception (11/2/17)

     +9.20%        +10.08%        +1.64%        +1.79%  

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 80 for Performance Summary footnotes.

 

           
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PERFORMANCE SUMMARY

 

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

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

11/2/17-3/31/23

 

     LOGO

 

See page 80 for Performance Summary footnotes.

 

           
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FRANKLIN FTSE JAPAN ETF

PERFORMANCE SUMMARY

 

Distributions (4/1/22–3/31/23)

 

Net Investment

Income

$0.460631

Total Annual Operating Expenses6

 

 

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.

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

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

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

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

4. Assumes reinvestment of distributions based on market price.

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

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

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

 

           
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FRANKLIN 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 10/1/22

   

Ending

Account

Value 3/31/23

   

Expenses

Paid During

Period

10/1/22–3/31/231

   

Ending

Account

Value 3/31/23

   

Expenses

Paid During

Period

10/1/22–3/31/231

   

Net Annualized

Expense Ratio

 
  $1,000.00       $1,197.00       $0.49       $1,024.48       $0.45       0.09 %      

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

 

           
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Franklin FTSE Japan Hedged ETF

 

This annual report for Franklin FTSE Japan Hedged ETF covers the fiscal year ended March 31, 2023.

Your Fund’s Goal and Main Investments

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

 

Top 10 Sectors/Industries
3/31/23     
     

% of Total

Net Assets

Automobiles

   6.9%

Banks

   5.9%

Pharmaceuticals

   5.8%

Electronic Equipment, Instruments & Components

   5.4%

Machinery

   5.2%

Trading Companies & Distributors

   4.9%

Chemicals

   4.3%

Household Durables

   4.3%

Semiconductors & Semiconductor Equipment

   3.4%

Wireless Telecommunication Services

   3.0%

Performance Overview

During the 12-month period, the Fund posted cumulative total returns of +9.47% based on market price and +8.15% based on net asset value. In comparison, the FTSE Japan Capped Hedged Index posted a +8.38% total return for the same period.2 You can find more of the Fund’s performance data in the Performance Summary beginning on page 84.

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 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 264.

 

           
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FRANKLIN FTSE JAPAN HEDGED ETF

 

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

 

Top 10 Holdings     
3/31/23     

Company

Sector/Industry, Country

  

% of Total

Net Assets

Toyota Motor Corp.

Automobiles, Japan

   4.4%

Sony Group Corp.

Household Durables, Japan

   2.9%

Keyence Corp.

Electronic Equipment, Instruments & Components, Japan

   2.4%

Mitsubishi UFJ Financial Group, Inc.

Banks, Japan

   1.9%

Daiichi Sankyo Co. Ltd.

Pharmaceuticals, Japan

   1.7%

Shin-Etsu Chemical Co. Ltd.

Chemicals, Japan

   1.6%

Tokyo Electron Ltd.

Semiconductors & Semiconductor Equipment, Japan

   1.4%

Sumitomo Mitsui Financial Group, Inc.

Banks, Japan

   1.3%

Hitachi Ltd.

Industrial Conglomerates, Japan

   1.3%

Takeda Pharmaceutical Co. Ltd.

Pharmaceuticals, Japan

   1.3%

Manager’s Discussion

For the fiscal year ended March 31, 2023, the sectors that contributed most to the Fund’s absolute performance were financials, consumer staples and health care. Individual holdings that lifted the Fund’s absolute return included Daiichi Sankyo, Sumitomo Mitsui Financial Group and Takeda Pharmaceutical.

For the same period, the sectors that detracted most from the Fund’s absolute performance were consumer discretionary, industrials and information technology. Individual holdings that hindered the Fund’s absolute return included Toyota Motor, Recruit Holdings and Tokyo Electron.

Thank you for your participation in Franklin FTSE Japan 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 March 31, 2023, the end of the reporting period. These opinions may not be relied upon as investment advice or an offer for a particular security. The information is not a complete analysis of every aspect of any market, country, industry, security or the Fund. Statements of fact are from sources considered reliable, but the investment manager makes no representation or warranty as to their completeness or accuracy. Although historical performance is no guarantee of future results, these insights may help you understand our investment management philosophy.

 

           
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FRANKLIN FTSE JAPAN HEDGED ETF

 

Performance Summary as of March 31, 2023

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

Net asset value or “NAV” is the value of one share of a fund as calculated in accordance with the standard formula for valuing mutual fund shares. The price used to calculate market return (Market Price) is determined by using the midpoint between the highest bid and the lowest offer on the primary stock exchange on which shares of a fund are listed for trading, as of the time that such fund’s NAV is calculated. Since shares of the Fund did not trade in the secondary market until after the Fund’s inception, for the period from inception to the first day of secondary trading (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 3/31/231

 

     Cumulative Total Return2      Average Annual Total Return2
     

     Based on

NAV3

    

Based on

market price4

    

Based on

NAV3

    

Based on

market price4

1-Year

     +8.15%        +9.47%        +8.15%      +9.47%

3-Year

     +58.58%        +61.52%        +16.61%      +17.33%

5-Year

     +43.73%        +44.99%        +7.52%      +7.71%

Since Inception (11/2/17)

     +38.30%        +39.13%        +6.18%      +6.30%

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 JAPAN HEDGED ETF

PERFORMANCE SUMMARY

 

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

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

11/2/17-3/31/23

 

     LOGO

 

See page 86 for Performance Summary footnotes.

 

 

           
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FRANKLIN FTSE JAPAN HEDGED ETF

PERFORMANCE SUMMARY

 

Distributions (4/1/22–3/31/23)

 

     

Net Investment

Income

  

Short-Term

Capital Gain

    

Long-Term

Capital Gain

     Total

$0.924931

     $2.106927        $3.446187      $6.478045

 

Total Annual Operating Expenses6
   

 0.09%                

 

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.

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

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

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

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

4. Assumes reinvestment of distributions based on market price.

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

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

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

 

           
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FRANKLIN 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 10/1/22

  

Ending

Account

Value 3/31/23

    

Expenses

Paid During

Period

10/1/22–3/31/231

    

Ending

Account

Value 3/31/23

    

Expenses

Paid During

Period

10/1/22–3/31/231

    

Net Annualized    

Expense Ratio    

 

$1,000.00

     $1,120.70        $0.48        $1,024.48        $0.45        0.09%      

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

 

           
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Franklin FTSE Latin America ETF

 

 

This annual report for Franklin FTSE Latin America ETF covers the fiscal year ended March 31, 2023.

Your Fund’s Goal and Main Investments

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

 

Top 10 Sectors/Industries
3/31/23     
     

% of Total

Net Assets

Banks

   18.3%

Metals & Mining

   15.0%

Oil, Gas & Consumable Fuels

   10.2%

Beverages

   6.8%

Consumer Staples Distribution & Retail

   6.0%

Electric Utilities

   5.7%

Wireless Telecommunication Services

   5.2%

Food Products

   3.8%

Transportation Infrastructure

   3.4%

Capital Markets

   2.8%

Performance Overview

During the 12-month period, the Fund posted cumulative total returns of -11.38% based on market price and -11.05% based on net asset value. In comparison, the FTSE Latin America Capped Index posted a -10.75% total return for the same period.2 You can find more of the Fund’s performance data in the Performance Summary beginning on page 90.

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 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 276.

 

           
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FRANKLIN FTSE MEXICO ETF

 

Top 10 Holdings     
3/31/23     

Company

Sector/Industry, Country

  

% of Total

Net Assets

Vale SA

Metals & Mining, Brazil

   10.2%

Petroleo Brasileiro SA, 43.945%, pfd.

Oil, Gas & Consumable Fuels, Brazil

   7.5%

America Movil SAB de CV

Wireless Telecommunication Services, Mexico

   4.9%

Itau Unibanco Holding SA, 4.349%, pfd.

Banks, Brazil

   4.2%

Grupo Financiero Banorte SAB de CV, Class O

Banks, Mexico

   4.0%

Wal-Mart de Mexico SAB de CV, Class V

Consumer Staples Distribution & Retail, Mexico

   3.4%

Fomento Economico Mexicano SAB de CV

Beverages, Mexico

   2.9%

Banco Bradesco SA, 6.492%, pfd.

Banks, Brazil

   2.8%

Grupo Mexico SAB de CV,Class B

Metals & Mining, Mexico

   2.5%

B3 SA - Brasil Bolsa Balcao

Capital Markets, Brazil

   2.1%

 

Country Composition     
3/31/23     
     

% of Total

Net Assets

Brazil

   57.8%

Mexico

   32.4%

Chile

   6.9%

Colombia

   1.6%

United States

   1.0%

Manager’s Discussion

For the fiscal year ended March 31, 2023, the sectors that contributed most to the Fund’s absolute performance were energy, industrials and real estate. Individual holdings that lifted the Fund’s absolute return included Petroleo Brasileiro, Grupo Financiero Banorte and Grupo Bimbo.

For the same period, the sectors that detracted most from the Fund’s absolute performance were materials, financials and consumer discretionary. Individual holdings that hindered the Fund’s absolute return included Vale, Hapvida Participacoes e Investimentos and Banco Bradesco.

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

Dina Ting, CFA

Hailey Harris

Joe Diederich

Basit Amin, CFA

Portfolio Management Team

 

 

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

 

           
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FRANKLIN FTSE LATIN AMERICA ETF

 

Performance Summary as of March 31, 2023

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

Net asset value or “NAV” is the value of one share of a fund as calculated in accordance with the standard formula for valuing mutual fund shares. The price used to calculate market return (Market Price) is determined by using the midpoint between the highest bid and the lowest offer on the primary stock exchange on which shares of a fund are listed for trading, as of the time that such fund’s NAV is calculated. Since shares of the Fund did not trade in the secondary market until after the Fund’s inception, for the period from inception to the first day of secondary trading (10/11/18), 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 3/31/231

 

           Cumulative Total Return2      Average Annual Total Return2  
     

Based on

NAV3

    

Based on

market price4

    

Based on

NAV3

    

Based on

market price4

 

1-Year

     -11.05%        -11.38%        -11.05%        -11.38%  

3-Year

     +62.47%        +61.31%        +17.56%        +17.28%  

Since Inception (10/9/18)

     -1.94%        -2.08%        -0.44%        -0.47%  

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 92 for Performance Summary footnotes.

 

           
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FRANKLIN FTSE LATIN AMERICA ETF

PERFORMANCE SUMMARY

 

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

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

10/9/18-3/31/23

 

     LOGO

 

See page 92 for Performance Summary footnotes.

 

           
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FRANKLIN FTSE LATIN AMERICA ETF

PERFORMANCE SUMMARY

 

Distributions (4/1/22–3/31/23)

 

Net Investment

Income

$1.874424

Total Annual Operating Expenses6

 

 

  0.19%

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.

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

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

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

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

4. Assumes reinvestment of distributions based on market price.

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

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

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

 

           
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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 10/1/22

   

Ending

Account

Value 3/31/23

   

Expenses

Paid During

Period

10/1/22–3/31/231

    Ending
Account
Value 3/31/23
   

Expenses

Paid During

Period

10/1/22–3/31/231

   

Net Annualized

Expense Ratio

 
  $1,000.00       $1,096.90       $0.99       $1,023.98       $0.96       0.19

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

 

           
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Franklin FTSE Mexico ETF

    

 

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

Your Fund’s Goal and Main Investments

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

 

Top 10 Sectors/Industries     
3/31/23     
     

% of Total

Net Assets

Banks

   18.3%

Beverages

   14.0%

Wireless Telecommunication Services

   12.7%

Consumer Staples Distribution & Retail

   10.8%

Transportation Infrastructure

   10.1%

Metals & Mining

   8.1%

Food Products

   6.9%

Construction Materials

   4.8%

Diversified REITs

   4.0%

Industrial Conglomerates

   2.9%

Performance Overview

During the 12-month period, the Fund posted cumulative total returns of +11.15% based on market price and +11.15% based on net asset value. In comparison, the FTSE Mexico Capped Index posted a +11.23% total return for the same period.2 You can find more of the Fund’s performance data in the Performance Summary beginning on page 96.

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 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 281.

 

           
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Top 10 Holdings     
3/31/23     

Company

Sector/Industry, Country

  

% of Total

Net Assets

America Movil SAB de CV

Wireless Telecommunication Services, Mexico

   12.7%

Grupo Financiero Banorte SAB de CV, Class O

Banks, Mexico

   10.6%

Wal-Mart de Mexico SAB de CV, Class V

Consumer Staples Distribution & Retail, Mexico

   9.1%

Fomento Economico Mexicano SAB de CV

Beverages, Mexico

   7.9%

Grupo Mexico SAB de CV, Class B

Metals & Mining, Mexico

   6.9%

Grupo Bimbo SAB de CV

Food Products, Mexico

   4.8%

Cemex SAB de CV

Construction Materials, Mexico

   4.0%

Grupo Aeroportuario del Pacifico SAB de CV, Class B

Transportation Infrastructure, Mexico

   3.5%

Grupo Aeroportuario del Sureste SAB de CV, Class B

Transportation Infrastructure, Mexico

   3.3%

Grupo Financiero Inbursa SAB de CV, Class O

Banks, Mexico

   2.7%

Manager’s Discussion

For the fiscal year ended March 31, 2023, the sectors that contributed most to the Fund’s absolute performance were consumer staples, financials and industrials. Individual holdings that lifted the Fund’s absolute return included Grupo Financiero Banorte, Grupo Bimbo and Fomento Economico Mexicano.

For the same period, the sectors that detracted from the Fund’s absolute performance were communication services and materials. Individual holdings that hindered the Fund’s absolute return included Grupo Mexico, Grupo Televisa and Controladora Vuela Cia de Aviacion.

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

Dina Ting, CFA

Hailey Harris

Joe Diederich

Basit Amin, CFA

Portfolio Management Team

 

 

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

 

           
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FRANKLIN FTSE MEXICO ETF

 

Performance Summary as of March 31, 2023

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

Net asset value or “NAV” is the value of one share of a fund as calculated in accordance with the standard formula for valuing mutual fund shares. The price used to calculate market return (Market Price) is determined by using the midpoint between the highest bid and the lowest offer on the primary stock exchange on which shares of a fund are listed for trading, as of the time that such fund’s NAV is calculated. Since shares of the Fund did not trade in the secondary market until after the Fund’s inception, for the period from inception to the first day of secondary trading (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 3/31/231

 

           Cumulative Total Return2      Average Annual Total Return2
     

Based on

NAV3

    

Based on

market price4

    

Based on

NAV3

    

Based on

market price4

1-Year

     +11.15%        +11.15%        +11.15%      +11.15%

3-Year

     +123.85%        +126.03%        +30.81%      +31.24%

5-Year

     +35.79%        +33.63%        +6.31%      +5.97%

Since Inception (11/3/17)

     +36.65%        +36.90%        +5.95%      +5.98%

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 98 for Performance Summary footnotes.

 

 

           
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PERFORMANCE SUMMARY

 

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

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

11/3/17-3/31/23

 

LOGO

 

See page 98 for Performance Summary footnotes.

 

 

           
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FRANKLIN FTSE MEXICO ETF

PERFORMANCE SUMMARY

 

Distributions (4/1/22–3/31/23)

Net Investment  

Income

    

$1.033231

  

 

Total Annual Operating Expenses6
   

  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 risk 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 Mexican issuers involve risks that are specific to Mexico, including certain legal, regulatory, political, currency, security 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.

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

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

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

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

4. Assumes reinvestment of distributions based on market price.

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

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

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

 

           
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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 10/1/22

  

Ending

Account

Value 3/31/23

    

Expenses

Paid During

Period

10/1/22–3/31/231

    

Ending

Account

Value 3/31/23

    

Expenses

Paid During

Period

10/1/22–3/31/231

    

Net Annualized

Expense Ratio

 
$1,000.00      $1,362.30        $1.12        $1,023.98        $0.96        0.19 %   
                                          

 

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

 

           
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Franklin FTSE Saudi Arabia ETF

 

This annual report for Franklin FTSE Saudi Arabia ETF covers the fiscal year ended March 31, 2023.

Your Fund’s Goal and Main Investments

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

 

Top 10 Sectors/Industries     
3/31/23     
      % of Total
Net Assets

Banks

   39.2%

Chemicals

   15.7%

Oil, Gas & Consumable Fuels

   8.3%

Diversified Telecommunication Services

   6.4%

Metals & Mining

   4.8%

Health Care Providers & Services

   4.5%

Food Products

   2.6%

Wireless Telecommunication Services

   2.2%

Insurance

   1.9%

Independent Power Producers & Energy Traders

   1.9%

Performance Overview

During the 12-month period, the Fund posted cumulative total returns of -16.62% based on market price and -17.04% based on net asset value. In comparison, the FTSE Saudi Arabia Capped Index posted a -16.89% total return for the same period.2 You can find more of the Fund’s performance data in the Performance Summary beginning on page 102.

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 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.

 

           
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Top 10 Holdings     
3/31/23     

Company

Sector/Industry, Country

   % of Total
Net Assets

Al Rajhi Bank

Banks, Saudi Arabia

   12.0%

Saudi National Bank

Banks, Saudi Arabia

   8.6%

Saudi Arabian Oil Co.

Oil, Gas & Consumable Fuels, Saudi Arabia

   7.8%

Saudi Basic Industries Corp.

Chemicals, Saudi Arabia

   7.1%

Saudi Telecom Co.

Diversified Telecommunication Services, Saudi Arabia

   6.4%

Saudi Arabian Mining Co.

Metals & Mining, Saudi Arabia

   4.8%

Riyad Bank

Banks, Saudi Arabia

   4.5%

Saudi British

Bank Banks, Saudi Arabia

   3.6%

SABIC Agri-Nutrients Co.

Chemicals, Saudi Arabia

   3.1%

Alinma Bank

Banks, Saudi Arabia

   3.0%

Manager’s Discussion

For the fiscal year ended March 31, 2023, the sectors that contributed most to the Fund’s absolute performance were health care, information technology and real estate. Individual holdings that lifted the Fund’s absolute return included Dr. Sulaiman Al Habib Medical Services Group, Elm and Dar Al Arkan Real Estate Development.

For the same period, the sectors that detracted most from the Fund’s absolute performance were financials, materials and energy. Individual holdings that hindered the Fund’s absolute return included Al Rajhi Bank, Saudi National Bank and Saudi Basic Industries.

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

Dina Ting, CFA

Hailey Harris

Joe Diederich

Basit Amin, CFA

Portfolio Management Team

 

 

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

 

           
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FRANKLIN FTSE SAUDI ARABIA ETF

 

Performance Summary as of March 31, 2023

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

Net asset value or “NAV” is the value of one share of a fund as calculated in accordance with the standard formula for valuing mutual fund shares. The price used to calculate market return (Market Price) is determined by using the midpoint between the highest bid and the lowest offer on the primary stock exchange on which shares of a fund are listed for trading, as of the time that such fund’s NAV is calculated. Since shares of the Fund did not trade in the secondary market until after the Fund’s inception, for the period from inception to the first day of secondary trading (10/11/18), 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 3/31/231

 

     Cumulative Total Return2      Average Annual Total Return2  
      Based on
NAV3
     Based on
market price4
     Based on
NAV3
     Based on
market price4
 

1-Year

     -17.04%        -16.62%        -17.04%        -16.62%  

3-Year

     +77.70%        +75.62%        +21.12%        +20.65%  

Since Inception (10/9/18)

     +49.41%        +50.17%        +9.39%        +9.51%  

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 104 for Performance Summary footnotes.

 

           
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PERFORMANCE SUMMARY

 

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

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

10/9/18-3/31/23

 

     LOGO

 

See page 104 for Performance Summary footnotes.

 

           
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FRANKLIN FTSE SAUDI ARABIA ETF

PERFORMANCE SUMMARY

 

Distributions (4/1/22–3/31/23)

 

Net Investment

Income

$0.631727

Total Annual Operating Expenses6

 

 

0.39%

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.

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

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

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

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

4. Assumes reinvestment of distributions based on market price.

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

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

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

 

           
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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 10/1/22

   

Ending

Account

Value 3/31/23

   

Expenses

Paid During

Period

10/1/22–3/31/231

   

Ending

Account

Value 3/31/23

   

Expenses

Paid During

Period

10/1/22–3/31/231

   

Net Annualized

Expense Ratio

 
  $1,000.00       $933.10       $1.88       $1,022.99       $1.97       0.39 %   

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

 

           
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Franklin FTSE South Africa ETF

 

This annual report for Franklin FTSE South Africa ETF covers the fiscal year ended March 31, 2023.

Your Fund’s Goal and Main Investments

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

 

Top 10 Sectors/Industries     
3/31/23     
     

% of Total

Net Assets

Metals & Mining

   19.6%

Internet & Direct Marketing Retail

   15.0%

Banks

   14.6%

Financial Services

   8.7%

Consumer Staples Distribution & Retail

   7.7%

Wireless Telecommunication Services

   7.2%

Insurance

   6.8%

Chemicals

   3.2%

Specialty Retail

   2.4%

Industrial Conglomerates

   2.0%

Performance Overview

During the 12-month period, the Fund posted cumulative total returns of -21.29% based on market price and -20.97% based on net asset value. In comparison, the FTSE/JSE South Africa Capped Index posted a -20.98% total return for the same period.2 You can find more of the Fund’s performance data in the Performance Summary beginning on page 108.

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 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 286.

 

           
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FRANKLIN FTSE SOUTH AFRICA ETF

 

Top 10 Holdings       
3/31/23       

Company

Sector/Industry, Country

  

% of Total

Net Assets

 

Naspers Ltd., Class N

Internet & Direct Marketing Retail, South Africa

     15.0%  

FirstRand Ltd.

Financial Services, South Africa

     7.1%  

Standard Bank Group Ltd.

Banks, South Africa

     5.4%  

MTN Group Ltd.

Wireless Telecommunication Services, South Africa

     5.4%  

Gold Fields Ltd.

Metals & Mining, South Africa

     4.9%  

AngloGold Ashanti Ltd.

Metals & Mining, South Africa

     4.3%  

Absa Group Ltd.

Banks, South Africa

     3.6%  

Capitec Bank Holdings Ltd.

Banks, South Africa

     3.4%  

Sasol Ltd.

Chemicals, South Africa

     3.2%  

Impala Platinum Holdings Ltd.

Metals & Mining, South Africa

     3.2%  

Manager’s Discussion

For the fiscal year ended March 31, 2023, the only sector that contributed to the Fund’s absolute performance was consumer discretionary. Individual holdings that lifted the Fund’s absolute return included Naspers, AngloGold Ashanti and Gold Fields.

For the same period, the sectors that detracted most from the Fund’s absolute performance were financials, materials and communication services. Individual holdings that hindered the Fund’s absolute return included MTN Group, FirstRand and Sasol.

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

Dina Ting, CFA

Hailey Harris

Joe Diederich

Basit Amin, CFA

Portfolio Management Team

 

 

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

 

           
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FRANKLIN FTSE SOUTH AFRICA ETF

 

Performance Summary as of March 31, 2023

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

Net asset value or “NAV” is the value of one share of a fund as calculated in accordance with the standard formula for valuing mutual fund shares. The price used to calculate market return (Market Price) is determined by using the midpoint between the highest bid and the lowest offer on the primary stock exchange on which shares of a fund are listed for trading, as of the time that such fund’s NAV is calculated. Since shares of the Fund did not trade in the secondary market until after the Fund’s inception, for the period from inception to the first day of secondary trading (10/11/18), 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 3/31/231

 

           Cumulative Total Return2             Average Annual Total Return2  
     

Based on

NAV3

    

Based on

market price4

    

    

    

Based on

NAV3

    

Based on

market price4

 

1-Year

     -20.97%        -21.29%                 -20.97%        -21.29%  

3-Year

     +71.02%        +72.38%                 +19.59%        +19.90%  

Since Inception (10/10/18)

     +15.00%        +14.45%                 +3.17%        +3.06%  

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 110 for Performance Summary footnotes.

 

           
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PERFORMANCE SUMMARY

 

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

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

 

10/10/18-3/31/23

 

     LOGO

See page 110 for Performance Summary footnotes.

 

           
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FRANKLIN FTSE SOUTH AFRICA ETF

PERFORMANCE SUMMARY

 

Distributions (4/1/22–3/31/23)

 

Net Investment
Income

$1.079778

Total Annual Operating Expenses6

 

 

0.19%

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.

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

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

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

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

4. Assumes reinvestment of distributions based on market price.

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

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

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

 

           
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FRANKLIN 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 10/1/22
    Ending
Account
Value 3/31/23
   

Expenses

Paid During

Period

10/1/22–3/31/231

    Ending
Account
Value 3/31/23
   

Expenses

Paid During
Period

10/1/22–3/31/231

    Net Annualized
Expense Ratio
 
  $1,000.00       $1,166.10       $1.03       $1,023.98       $0.96       0.19

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

 

           
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Franklin FTSE South Korea ETF

 

This annual report for Franklin FTSE South Korea ETF covers the fiscal year ended March 31, 2023.

Your Fund’s Goal and Main Investments

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

 

Top 10 Sectors/Industries

3/31/23

    
      % of Total
Net Assets

Technology Hardware, Storage & Peripherals

   20.5%

Banks

   7.1%

Electronic Equipment, Instruments & Components

   7.1%

Chemicals

   6.0%

Automobiles

   5.7%

Semiconductors & Semiconductor Equipment

   5.7%

Interactive Media & Services

   5.2%

Electrical Equipment

   4.1%

Metals & Mining

   3.9%

Industrial Conglomerates

   2.9%

Performance Overview

During the 12-month period, the Fund posted cumulative total returns of -14.50% based on market price and -15.00% based on net asset value. In comparison, the FTSE South Korea Capped Index posted a -15.05% total return for the same period.2 You can find more of the Fund’s performance data in the Performance Summary beginning on page 114.

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 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 289.

 

           
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FRANKLIN FTSE SOUTH KOREA ETF

 

Top 10 Holdings     
3/31/23     

Company

Sector/Industry, Country

   % of Total
Net Assets

Samsung Electronics Co. Ltd.

Technology Hardware, Storage & Peripherals, South Korea

   20.4%

SK Hynix, Inc.

Semiconductors & Semiconductor Equipment, South Korea

   5.3%

Samsung SDI Co. Ltd.

Electronic Equipment, Instruments & Components, South Korea

   4.3%

LG Chem Ltd.

Chemicals, South Korea

   3.9%

Hyundai Motor Co.

Automobiles, South Korea

   3.4%

NAVER Corp.

Interactive Media & Services, South Korea

   3.2%

POSCO Holdings, Inc.

Metals & Mining, South Korea

   3.0%

Kia Corp.

Automobiles, South Korea

   2.3%

LG Energy Solution Ltd.

Electrical Equipment, South Korea

   2.2%

KB Financial Group, Inc.

Banks, South Korea

   2.0%

Manager’s Discussion

For the fiscal year ended March 31, 2023, the only sector that contributed to the Fund’s absolute performance was materials. Individual holdings that lifted the Fund’s absolute return included LG Chem, Samsung SDI and POSCO.

For the same period, the sectors that detracted most from the Fund’s absolute performance were communication services, information technology and financials. Individual holdings that hindered the Fund’s absolute return included NAVER, SK Hynix and Kakao.

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

Dina Ting, CFA

Hailey Harris

Joe Diederich

Basit Amin, CFA

Portfolio Management Team

 

 

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

 

           
franklintempleton.com  

Annual Report

             113


FRANKLIN FTSE SOUTH KOREA ETF

 

Performance Summary as of March 31, 2023

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

Net asset value or “NAV” is the value of one share of a fund as calculated in accordance with the standard formula for valuing mutual fund shares. The price used to calculate market return (Market Price) is determined by using the midpoint between the highest bid and the lowest offer on the primary stock exchange on which shares of a fund are listed for trading, as of the time that such fund’s NAV is calculated. Since shares of the Fund did not trade in the secondary market until after the Fund’s inception, for the period from inception to the first day of secondary trading (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 3/31/231

 

     Cumulative Total Return2      Average Annual Total Return2  
      Based on
NAV3
    

Based on

market price4

    

Based on

NAV3

    

Based on

market price4

 

1-Year

     -15.00%        -14.50%        -15.00%        -14.50%  

3-Year

     +35.60%        +35.09%        +10.69%        +10.55%  

5-Year

     -10.04%        -11.95%        -2.09%        -2.51%  

Since Inception (11/2/17)

     -8.39%        -8.65%        -1.61%        -1.66%  

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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PERFORMANCE SUMMARY

 

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

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

11/2/17-3/31/23

 

LOGO

 

See page 116 for Performance Summary footnotes.

 

           
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FRANKLIN FTSE SOUTH KOREA ETF

PERFORMANCE SUMMARY

 

Distributions (4/1/22–3/31/23)

 

Net Investment  

Income

$0.610881

Total Annual Operating Expenses6

 

 

0.09%

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.

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

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

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

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

4. Assumes reinvestment of distributions based on market price.

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

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

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

 

           
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FRANKLIN 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 10/1/22
   

Ending
Account
Value 3/31/23

   

Expenses

Paid During
Period

10/1/22–3/31/231

    Ending
Account
Value 3/31/23
   

Expenses

Paid During
Period

10/1/22–3/31/231

    Net Annualized
Expense Ratio
 
  $1,000.00       $1,282.30       $0.51       $1,024.48       $0.45       0.09

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

 

           
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Franklin FTSE Switzerland ETF

 

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

Your Fund’s Goal and Main Investments

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

 

Top 10 Sectors/Industries     
3/31/23     
      % of Total
Net Assets

Pharmaceuticals

   23.4%

Food Products

   21.9%

Insurance

   8.9%

Capital Markets

   6.7%

Textiles, Apparel & Luxury Goods

   6.2%

Chemicals

   5.5%

Health Care Equipment & Supplies

   4.8%

Life Sciences Tools & Services

   3.7%

Electrical Equipment

   3.4%

Construction Materials

   2.6%

Performance Overview

During the 12-month period, the Fund posted cumulative total returns of -5.59% based on market price and -6.23% based on net asset value. In comparison, the FTSE Switzerland Capped Index posted a -6.57% total return for the same period.2 You can find more of the Fund’s performance data in the Performance Summary beginning on page 120.

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 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 294.

 

           
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FRANKLIN FTSE SWITZERLAND ETF

 

Top 10 Holdings       
3/31/23       

Company

Sector/Industry, Country

   % of Total
Net Assets
 

Nestle SA

Food Products, Switzerland

     19.3%  

Roche Holding AG

Pharmaceuticals, Switzerland

     12.3%  

Novartis AG

Pharmaceuticals, Switzerland

     11.0%  

Cie Financiere Richemont SA, Class A

Textiles, Apparel & Luxury Goods, Switzerland

     5.2%  

Zurich Insurance Group AG

Insurance, Switzerland

     4.3%  

UBS Group AG

Capital Markets, Switzerland

     3.8%  

ABB Ltd.

Electrical Equipment, Switzerland

     3.4%  

Lonza Group AG

Life Sciences Tools & Services, Switzerland

     3.1%  

Sika AG

Chemicals, Switzerland

     2.8%  

Holcim AG, Class B

Construction Materials, United States

     2.6%  

Manager’s Discussion

For the fiscal year ended March 31, 2023, the sectors that contributed most to the Fund’s absolute performance were consumer discretionary, industrials and communication services. Individual holdings that lifted the Fund’s absolute return included Cie Financiere Richemont, Novartis and Holcim.

For the same period, the sectors that detracted most from the Fund’s absolute performance were health care, consumer staples and financials. Individual holdings that hindered the Fund’s absolute return included Roche Holding, Credit Suisse Group and Nestle.

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

Dina Ting, CFA

Hailey Harris

Joe Diederich

Basit Amin, CFA

Portfolio Management Team

 

 

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

 

           
franklintempleton.com  

Annual Report

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FRANKLIN FTSE SWITZERLAND ETF

 

Performance Summary as of March 31, 2023

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

Net asset value or “NAV” is the value of one share of a fund as calculated in accordance with the standard formula for valuing mutual fund shares. The price used to calculate market return (Market Price) is determined by using the midpoint between the highest bid and the lowest offer on the primary stock exchange on which shares of a fund are listed for trading, as of the time that such fund’s NAV is calculated. Since shares of the Fund did not trade in the secondary market until after the Fund’s inception, for the period from inception to the first day of secondary trading (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 3/31/231

 

     Cumulative Total Return2      Average Annual Total Return2  
      Based on
NAV3
     Based on
market price4
     Based on
NAV3
     Based on
market price4
 

1-Year

     -6.23%        -5.59%        -6.23%        -5.59%  

3-Year

     +36.60%        +37.36%        +10.96%        +11.16%  

5-Year

     +50.33%        +50.75%        +8.50%        +8.56%  

Since Inception (2/6/18)

     +47.46%        +47.62%        +7.84%        +7.86%  

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 122 for Performance Summary footnotes.

 

           
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FRANKLIN FTSE SWITZERLAND ETF

PERFORMANCE SUMMARY

 

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

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

2/6/18-3/31/23

 

     LOGO

 

See page 122 for Performance Summary footnotes.

 

           
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Annual Report

             121


FRANKLIN FTSE SWITZERLAND ETF

PERFORMANCE SUMMARY

 

Distributions (4/1/22–3/31/23)

 

Net Investment

Income

$0.588120

Total Annual Operating Expenses6

 

 

0.09%

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.

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

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

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

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

4. Assumes reinvestment of distributions based on market price.

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

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

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

 

           
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FRANKLIN 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     Hypothetical        
      (actual return after expenses)     (5% annual return before expenses)        
Beginning
Account
        Value 10/1/22
   

Ending

Account
        Value 3/31/23

   

Expenses

Paid During

Period

        10/1/22–3/31/231

   

Ending

Account
        Value 3/31/23

   

Expenses

Paid During

Period

        10/1/22–3/31/231

   

        Net Annualized

Expense Ratio

 
  $1,000.00       $1,186.70       $0.49       $1,024.48       $0.45       0.09

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

 

           
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Franklin FTSE Taiwan ETF

 

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

Your Fund’s Goal and Main Investments

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

 

Top 10 Sectors/Industries     
3/31/23     
      % of Total
Net Assets

Semiconductors & Semiconductor Equipment

   36.3%

Electronic Equipment, Instruments & Components

   13.6%

Banks

   12.0%

Technology Hardware, Storage & Peripherals

   7.6%

Chemicals

   4.6%

Insurance

   3.9%

Diversified Telecommunication Services

   1.9%

Metals & Mining

   1.6%

Electrical Equipment

   1.6%

Marine Transportation

   1.5%

Performance Overview

During the 12-month period, the Fund posted cumulative total returns of -11.29% based on market price and -12.55% based on net asset value. In comparison, the FTSE Taiwan Capped Index posted a -12.38% total return for the same period.2 You can find more of the Fund’s performance data in the Performance Summary beginning on page 126.

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 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 297.

 

           
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FRANKLIN FTSE TAIWAN ETF

 

Top 10 Holdings     
3/31/23     

Company

Sector/Industry, Country

   % of Total
Net Assets

Taiwan Semiconductor Manufacturing Co. Ltd.

Semiconductors & Semiconductor Equipment, Taiwan

   20.3%

Hon Hai Precision Industry Co. Ltd. Electronic

Equipment, Instruments & Components, Taiwan

   5.2%

MediaTek, Inc.

Semiconductors & Semiconductor Equipment, Taiwan

   5.0%

Delta Electronics, Inc., Class A

Electronic Equipment, Instruments & Components, Taiwan

   2.8%

United Microelectronics Corp.

Semiconductors & Semiconductor Equipment, Taiwan

   2.6%

Chunghwa Telecom Co. Ltd.

Diversified Telecommunication Services, Taiwan

   1.9%

Nan Ya Plastics Corp.

Chemicals, Taiwan

   1.9%

Fubon Financial Holding Co. Ltd.

Insurance, Taiwan

   1.8%

CTBC Financial Holding Co. Ltd., Class A

Banks, Taiwan

   1.7%

Cathay Financial Holding Co. Ltd., Class A

Insurance, Taiwan

   1.6%

Manager’s Discussion

For the fiscal year ended March 31, 2023, the sectors that contributed most to the Fund’s absolute performance were consumer staples, consumer discretionary and health care. Individual holdings that lifted the Fund’s absolute return included Delta Electronics, Walsin Lihwa and Largan Precision.

For the same period, the sectors that detracted most from the Fund’s absolute performance were information technology, financials and materials. Individual holdings that hindered the Fund’s absolute return included Taiwan Semiconductor Manufacturing, Evergreen Marine and Cathay Financial Holding.

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

Dina Ting, CFA

Hailey Harris

Joe Diederich

Basit Amin, CFA

Portfolio Management Team

 

 

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

 

           
franklintempleton.com  

Annual Report

             125


FRANKLIN FTSE TAIWAN ETF

 

Performance Summary as of March 31, 2023

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

Net asset value or “NAV” is the value of one share of a fund as calculated in accordance with the standard formula for valuing mutual fund shares. The price used to calculate market return (Market Price) is determined by using the midpoint between the highest bid and the lowest offer on the primary stock exchange on which shares of a fund are listed for trading, as of the time that such fund’s NAV is calculated. Since shares of the Fund did not trade in the secondary market until after the Fund’s inception, for the period from inception to the first day of secondary trading (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 3/31/231

 

     Cumulative Total Return2      Average Annual Total Return2  
      Based on
NAV3
     Based on
market price4
     Based on
NAV3
     Based on
market price4
 

1-Year

     -12.55%        -11.29%        -12.55%        -11.29%  

3-Year

     +72.42%        +72.96%        +19.91%        +20.04%  

5-Year

     +59.18%        +57.75%        +9.74%        +9.55%  

Since Inception (11/2/17)

     +62.79%        +63.05%        +9.43%        +9.46%  

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 128 for Performance Summary footnotes.

 

           
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FRANKLIN FTSE TAIWAN ETF

PERFORMANCE SUMMARY

 

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

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

11/2/17-3/31/23

 

     LOGO

 

See page 128 for Performance Summary footnotes.

 

           
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FRANKLIN FTSE TAIWAN ETF

PERFORMANCE SUMMARY

 

Distributions (4/1/22–3/31/23)

 

Net Investment

Income

$1.034683

Total Annual Operating Expenses6

 

 

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.

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

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

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

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

4. Assumes reinvestment of distributions based on market price.

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

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

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

 

           
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FRANKLIN 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 10/1/22

   

Ending

Account
        Value 3/31/23

   

Expenses

Paid During

Period

        10/1/22–3/31/231

   

Ending

Account
        Value 3/31/23

   

Expenses

Paid During

Period

        10/1/22–3/31/231

            Net Annualized  
Expense Ratio  
 
  $1,000.00       $1,236.10       $1.06       $1,023.98       $0.96       0.19

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

 

           
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Franklin FTSE United Kingdom ETF

 

This annual report for Franklin FTSE United Kingdom ETF covers the fiscal year ended March 31, 2023.

Your Fund’s Goal and Main Investments

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

 

Top 10 Sectors/Industries     
3/31/23     
      % of Total
Net Assets

Oil, Gas & Consumable Fuels

   12.5%

Pharmaceuticals

   11.4%

Banks

   9.7%

Metals & Mining

   8.0%

Personal Products

   6.0%

Beverages

   4.2%

Hotels, Restaurants & Leisure

   4.2%

Professional Services

   4.0%

Tobacco

   4.0%

Insurance

   3.7%

Performance Overview

For the 12-month period, the Fund posted cumulative total returns of -0.13% based on market price and -0.71% based on net asset value. In comparison, the FTSE UK Capped Index posted a -0.64% total return for the same period.2 You can find more of the Fund’s performance data in the Performance Summary beginning on page 132.

Performance data represent past performance, which does not guarantee future results. Investment return and principal value will fluctuate, and you may have a gain or loss when

you sell your shares. Current performance may differ from figures shown. For most recent month-end performance, go to franklintempleton.com or call (800) 342-5236.

Investment Strategy

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

 

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

2. Source: FactSet.

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 301.

 

           
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FRANKLIN FTSE UNITED KINGDOM ETF

 

Top 10 Holdings     
3/31/23     

Company

Sector/Industry, Country

  

% of Total

Net Assets

AstraZeneca PLC

Pharmaceuticals, United Kingdom

   8.3%

Shell PLC

Oil, Gas & Consumable Fuels, Netherlands

   8.0%

HSBC Holdings PLC

Banks, United Kingdom

   5.5%

Unilever PLC

Personal Products, United Kingdom

   5.2%

BP PLC

Oil, Gas & Consumable Fuels, United Kingdom

   4.5%

Diageo PLC

Beverages, United Kingdom

   4.0%

British American Tobacco PLC

Tobacco, United Kingdom

   3.2%

Rio Tinto PLC

Metals & Mining, Australia

   3.0%

Glencore PLC

Metals & Mining, Australia

   2.9%

GSK PLC

Pharmaceuticals, United Kingdom

   2.8%

Manager’s Discussion

For the fiscal year ended March 31, 2023, the sectors that contributed most to the Fund’s absolute performance were energy, industrials and consumer discretionary. Individual holdings that lifted the Fund’s absolute return included BP, Unilever and AstraZeneca.

For the same period, the sectors that detracted most from the Fund’s absolute performance were materials, communication services and financials. Individual holdings that hindered the Fund’s absolute return included Anglo American, GSK PLC and Vodafone Group.

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

Dina Ting, CFA

Hailey Harris

Joe Diederich

Basit Amin, CFA

Portfolio Management Team

 

 

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

 

           
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FRANKLIN FTSE UNITED KINGDOM ETF

 

Performance Summary as of March 31, 2023

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

Net asset value or “NAV” is the value of one share of a fund as calculated in accordance with the standard formula for valuing mutual fund shares. The price used to calculate market return (Market Price) is determined by using the midpoint between the highest bid and the lowest offer on the primary stock exchange on which shares of a fund are listed for trading, as of the time that such fund’s NAV is calculated. Since shares of the Fund did not trade in the secondary market until after the Fund’s inception, for the period from inception to the first day of secondary trading (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 3/31/231

 

     Cumulative Total Return2            Average Annual Total Return2  
     

Based on

NAV3

    

Based on

market price4

   

  

    

Based on

NAV3

    

Based on

market price4

 

1-Year

     -0.71%        -0.13%                -0.71%        -0.13%  

3-Year

     +49.12%        +51.09%                +14.25%        +14.75%  

5-Year

     +15.10%        +14.56%                +2.85%        +2.76%  

Since Inception (11/2/17)

     +17.18%        +17.19%                +2.97%        +2.98%  

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 134 for Performance Summary footnotes.

 

           
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FRANKLIN FTSE UNITED KINGDOM ETF

PERFORMANCE SUMMARY

 

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

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

11/2/17-3/31/23

 

     LOGO

See page 134 for Performance Summary footnotes.

 

           
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FRANKLIN FTSE UNITED KINGDOM ETF

PERFORMANCE SUMMARY

 

Distributions (4/1/22–3/31/23)

 

Net Investment
Income

$0.968227

Total Annual Operating Expenses6

 

 
 

0.09%

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 U.K. countries involve risks that are specific to the 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.

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

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

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

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

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

4. Assumes reinvestment of distributions based on market price.

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

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

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

 

           
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FRANKLIN 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

(actual return after expenses)

   

Hypothetical

(5% annual return before expenses)

       

Beginning

Account

        Value 10/1/22

   

Ending

Account

Value 3/31/23

   

Expenses

Paid During

Period

10/1/22–3/31/231

   

Ending

Account

Value 3/31/23

   

Expenses

Paid During

Period

10/1/22–3/31/231

   

Net Annualized

Expense Ratio

 
  $1,000.00       $1,250.70       $0.51       $1,024.48       $0.45       0.09

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

 

           
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FRANKLIN TEMPLETON ETF TRUST

 

Financial Highlights

 

Franklin FTSE Asia ex Japan ETF

 

    Year Ended March 31,
     2023    2022      2021      2020      2019  
Per share operating performance
(for a share outstanding throughout the year)
             

Net asset value, beginning of year

    $24.22        $28.60        $18.39        $21.86        $23.63  
 

 

 

 

Income from investment operationsa:              

Net investment incomeb

    0.57        0.55        0.44        0.49        0.51  

Net realized and unrealized gains (losses)

    (2.79      (4.31      10.21        (3.46      (1.82
 

 

 

 

Total from investment operations

    (2.22      (3.76      10.65        (2.97      (1.31
 

 

 

 

Less distributions from net investment income

    (0.59      (0.62      (0.44      (0.50      (0.46
 

 

 

 

Net asset value, end of year

    $21.41        $24.22        $28.60        $18.39        $21.86  
 

 

 

 

Total returnc

    (9.10)%        (13.34)%        58.16%        (13.88)%        (5.34)%  
Ratios to average net assetsd              

Expenses before waiver and payments by affiliates

    0.19%        0.19%        0.19%        0.19%        0.19%  

Expenses net of waiver and payments by affiliates

    0.19%        0.19%        0.19%        0.19%        —%  

Net investment income

    2.67%        2.01%        1.78%        2.32%        2.34%  
Supplemental data              

Net assets, end of year (000’s)

    $29,980        $38,751        $34,317        $14,712        $17,488  

Portfolio turnover ratee

    5.85%f        10.09%f        11.45%f        11.42%f        7.11%  

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

 

bBased on average daily shares outstanding.

 

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

 

dRatios are annualized for periods less than one year.

 

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

 

 

 

 

 

 

fPortfolio turnover rate excluding cash creations was as follows:     5.85%        9.63%        11.45%        11.42%         

 

           
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FRANKLIN TEMPLETON ETF TRUST

 

Schedule of Investments, March 31, 2023

 

Franklin FTSE Asia ex Japan ETF

 

      Industry       Shares                Value  

Common Stocks 99.5%

      

Cambodia 0.0%

         

aNagaCorp Ltd.

   Hotels, Restaurants & Leisure     8,075        $ 6,295  
         

 

 

 
China 35.4%                    

360 DigiTech, Inc., ADR

   Consumer Finance     532          10,321  

360 Security Technology, Inc., Class A

   Software     2,500          6,353  

b3SBio, Inc., Class A

   Biotechnology     7,000          6,973  

aAAC Technologies Holdings, Inc., Class H

   Electronic Equipment, Instruments & Components     3,500          8,632  

ADAMA Ltd., Class A

   Chemicals     400          531  

Addsino Co. Ltd., Class A

   Communications Equipment     700          1,147  

aAdvanced Micro-Fabrication Equipment, Inc. China, Class A

   Semiconductors & Semiconductor Equipment     175          3,759  

AECC Aero-Engine Control Co. Ltd., Class A

   Aerospace & Defense     400          1,419  

AECC Aviation Power Co. Ltd., Class A

   Aerospace & Defense     900          5,655  

aAgile Group Holdings Ltd.

   Real Estate Management & Development     8,000          1,783  

Agricultural Bank of China Ltd., Class A

   Banks     33,300          15,081  

Agricultural Bank of China Ltd., Class H

   Banks     147,000          54,493  

Aier Eye Hospital Group Co. Ltd., Class A

   Health Care Providers & Services     2,504          11,329  

aAir China Ltd., Class A

   Airlines     2,100          3,272  

aAir China Ltd., Class H

   Airlines     8,000          7,154  

Airtac International Group, Class A

   Machinery     770          29,968  

a,bAkeso, Inc.

   Biotechnology     2,000          10,293  

aAlibaba Group Holding Ltd., Class A

   Internet & Direct Marketing Retail     70,600          902,966  

bA-Living Smart City Services Co. Ltd., Class H

   Commercial Services & Supplies     3,500          3,036  

All Winner Technology Co. Ltd., Class A, A

   Semiconductors & Semiconductor Equipment     400          1,590  

aAlpha Group, Class A

   Leisure Products     400          369  

Aluminum Corp. of China Ltd., Class A

   Metals & Mining     4,200          3,376  

Aluminum Corp. of China Ltd., Class H

   Metals & Mining     20,000          10,140  

aAmlogic Shanghai Co. Ltd., Class A

   Semiconductors & Semiconductor Equipment     175          2,144  

aAn Hui Wenergy Co. Ltd., Class A

   Independent Power Producers & Energy Traders     1,100          790  

Angang Steel Co. Ltd., Class A

   Metals & Mining     1,800          778  

Angang Steel Co. Ltd., Class H

   Metals & Mining     8,000          2,558  

Angel Yeast Co. Ltd., Class A

   Food Products     400          2,432  

bAngelalign Technology, Inc.

   Health Care Equipment & Supplies     200          2,973  

Anhui Anke Biotechnology Group Co. Ltd., Class A

   Pharmaceuticals     532          856  

Anhui Conch Cement Co. Ltd., Class A

   Construction Materials     1,400          5,759  

Anhui Conch Cement Co. Ltd., Class H

   Construction Materials     5,690          19,716  

Anhui Expressway Co. Ltd., Class A

   Transportation Infrastructure     400          520  

Anhui Expressway Co. Ltd., Class H

   Transportation Infrastructure     2,000          2,015  

Anhui Gujing Distillery Co. Ltd., Class A

   Beverages     100          4,310  

Anhui Gujing Distillery Co. Ltd., Class B

   Beverages     600          10,708  

Anhui Zhongding Sealing Parts Co. Ltd., Class A

   Automobile Components     400          740  

Anjoy Foods Group Co. Ltd., Class A

   Food Products     100          2,383  

Anker Innovations Technology Co. Ltd., Class A, A

   Technology Hardware, Storage & Peripherals     100          967  

ANTA Sports Products Ltd., Class A

   Textiles, Apparel & Luxury Goods     5,600          81,325  

Apeloa Pharmaceutical Co. Ltd., Class A

   Pharmaceuticals     400          1,241  

Asymchem Laboratories Tianjin Co. Ltd., Class A

   Pharmaceuticals     40          777  

Autohome, Inc., ADR

   Software     301          10,074  

Avary Holding Shenzhen Co. Ltd., Class A

   Electronic Equipment, Instruments & Components     400          1,807  

AVIC Industry-Finance Holdings Co. Ltd., Class A

   Financial Services     3,200          1,910  

AviChina Industry & Technology Co. Ltd., Class H

   Aerospace & Defense     13,000          6,823  

AVICOPTER PLC, Class A

   Aerospace & Defense     200          1,232  

bBAIC Motor Corp. Ltd., Class H

   Automobiles     12,500          3,471  

aBaidu, Inc., Class A

   Interactive Media & Services     10,850          205,529  

Bank of Beijing Co. Ltd., Class A

   Banks     7,000          4,485  

Bank of Changsha Co. Ltd., Class A

   Banks     1,100          1,267  

 

           
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Annual Report

             137


FRANKLIN TEMPLETON ETF TRUST

SCHEDULE OF INVESTMENTS

 

Franklin FTSE Asia ex Japan ETF (continued)

 

      Industry          Shares                Value  

Common Stocks (continued)

            

China (continued)

            

Bank of Chengdu Co. Ltd., Class A

   Banks        400        $ 790  

Bank of China Ltd., Class A

   Banks        15,800          7,777  

Bank of China Ltd., Class H

   Banks        371,000          142,257  

Bank of Communications Co. Ltd., Class A

   Banks        14,000          10,417  

Bank of Communications Co. Ltd., Class H

   Banks        37,000          23,284  

Bank of Guiyang Co. Ltd., Class A

   Banks        1,100          883  

Bank of Hangzhou Co. Ltd., Class A

   Banks        2,100          3,550  

Bank of Jiangsu Co. Ltd., Class A

   Banks        2,080          2,126  

Bank of Nanjing Co. Ltd., Class A

   Banks        3,200          4,175  

Bank of Ningbo Co. Ltd., Class A

   Banks        2,480          9,862  

Bank of Qingdao Co. Ltd., Class A

   Banks        1,400          669  

Bank of Shanghai Co. Ltd., Class A

   Banks        5,380          4,693  

aBank of Zhengzhou Co. Ltd., Class A

   Banks        3,084          1,019  

Baoshan Iron & Steel Co. Ltd., Class A

   Metals & Mining        6,300          5,725  

BBMG Corp., Class A

   Construction Materials        2,100          749  

BBMG Corp., Class H

   Construction Materials        14,000          1,819  

aBeiGene Ltd.

   Biotechnology        3,000          49,453  

Beijing Capital Development Co. Ltd., Class A

   Real Estate Management & Development        700          465  

Beijing Capital Eco-Environment Protection Group Co. Ltd., Class A

   Water Utilities        2,800          1,211  

aBeijing Capital International Airport Co. Ltd., Class H

   Transportation Infrastructure        10,000          7,363  

aBeijing Dabeinong Technology Group Co. Ltd., Class A

   Food Products        1,100          1,251  

Beijing Easpring Material Technology Co. Ltd., Class A

   Chemicals        200          1,675  

aBeijing E-Hualu Information Technology Co. Ltd., Class A

   Software        400          2,203  

Beijing Enlight Media Co. Ltd., Class A

   Entertainment        1,100          1,424  

Beijing Enterprises Holdings Ltd., Class H

   Industrial Conglomerates        2,500          8,997  

Beijing Haixin Energy Technology Co. Ltd., Class A

   Chemicals        700          408  

aBeijing Jetsen Technology Co. Ltd., Class A, A

   Software        1,100          1,075  

Beijing Jingneng Clean Energy Co. Ltd., Class H

   Independent Power Producers & Energy Traders        10,000          2,382  

Beijing Kingsoft Office Software, Inc., Class A

   Software        124          8,541  

Beijing New Building Materials PLC, Class A

   Building Products        700          2,736  

aBeijing Orient National Communication Science & Technology Co. Ltd., Class A

   Software        400          878  

Beijing Originwater Technology Co. Ltd., Class A

   Commercial Services & Supplies        247          182  

Beijing Shiji Information Technology Co. Ltd., Class A

   Software        700          2,616  

Beijing Shougang Co. Ltd., Class A

   Metals & Mining        1,800          999  

Beijing Shunxin Agriculture Co. Ltd., Class A

   Beverages        400          2,068  

Beijing Sinnet Technology Co. Ltd., Class A

   IT Services        700          1,367  

Beijing SL Pharmaceutical Co. Ltd., Class A

   Biotechnology        400          502  

Beijing Tongrentang Co. Ltd., Class A

   Pharmaceuticals        500          4,015  

Beijing Ultrapower Software Co. Ltd., Class A

   IT Services        700          960  

Beijing United Information Technology Co. Ltd., Class A, A

   Trading Companies & Distributors        145          1,751  

Beijing Wantai Biological Pharmacy Enterprise Co. Ltd., Class A

   Biotechnology        145          2,452  

Beijing Yanjing Brewery Co. Ltd., Class A

   Beverages        700          1,428  

Beijing Yuanliu Hongyuan Electronic Technology Co. Ltd., Class A, A

   Electronic Equipment, Instruments & Components        100          1,121  

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

   Electronic Equipment, Instruments & Components        445          849  

BGI Genomics Co. Ltd., Class A, A

   Biotechnology        100          1,005  

 

           
138             

Annual Report

  franklintempleton.com


FRANKLIN TEMPLETON ETF TRUST

SCHEDULE OF INVESTMENTS

 

Franklin FTSE Asia ex Japan ETF (continued)

 

      Industry          Shares                Value  

Common Stocks (continued)

            

China (continued)

            

aBilibili, Inc., Class Z

   Entertainment        1,120        $ 27,051  

bBlue Moon Group Holdings Ltd.

   Household Products        3,500          2,234  

aBlue Sail Medical Co. Ltd., Class A

   Health Care Equipment & Supplies        400          458  

Bluefocus Intelligent Communications Group Co. Ltd., Class A

   Media        700          974  

Bluestar Adisseo Co., Class A

   Chemicals        400          514  

BOC Hong Kong Holdings Ltd.

   Banks        17,000          52,949  

BOC International China Co. Ltd., Class A

   Capital Markets        400          626  

BOE Technology Group Co. Ltd., Class A

   Electronic Equipment, Instruments & Components        13,000          8,405  

BOE Technology Group Co. Ltd., Class B

   Electronic Equipment, Instruments & Components        4,900          2,210  

Bright Dairy & Food Co. Ltd., Class A

   Food Products        400          623  

BTG Hotels Group Co. Ltd., Class A

   Hotels, Restaurants & Leisure        400          1,359  

bBudweiser Brewing Co. APAC Ltd., Class H

   Beverages        8,400          25,628  

BYD Co. Ltd., Class A

   Automobiles        600          22,369  

BYD Co. Ltd., Class H

   Automobiles        4,500          131,733  

BYD Electronic International Co. Ltd.

   Communications Equipment        3,500          10,879  

By-health Co. Ltd., Class A

   Personal Products        700          2,176  

C&D International Investment Group Ltd.

   Real Estate Management & Development        3,000          9,841  

C&S Paper Co. Ltd., Class A

   Household Products        400          705  

Caitong Securities Co. Ltd., Class A

   Capital Markets        1,820          1,990  

Camel Group Co. Ltd., Class A

   Electrical Equipment        460          660  

Canmax Technologies Co. Ltd., Class A, A

   Chemicals        200          1,491  

CanSino Biologics, Inc., Class A

   Pharmaceuticals        23          381  

bCanSino Biologics, Inc., Class H

   Pharmaceuticals        400          2,140  

CECEP Solar Energy Co. Ltd., Class A

   Semiconductors & Semiconductor Equipment        1,100          1,097  

CECEP Wind-Power Corp., Class A

   Independent Power Producers & Energy Traders        2,340          1,319  

Central China Securities Co. Ltd., Class A

   Capital Markets        1,100          596  

Central China Securities Co. Ltd., Class H

   Capital Markets        4,000          591  

CETC Cyberspace Security Technology Co. Ltd., Class A

   Electronic Equipment, Instruments & Components        400          2,269  

CGN Power Co. Ltd., Class A

   Independent Power Producers & Energy Traders        2,800          1,170  

bCGN Power Co. Ltd., Class H

   Independent Power Producers & Energy Traders        56,000          13,412  

Changchun High & New Technology Industry Group, Inc., Class A

   Pharmaceuticals        100          2,378  

Changjiang Securities Co. Ltd., Class A

   Capital Markets        2,100          1,703  

Changzhou Xingyu Automotive Lighting Systems Co. Ltd., Class A

   Automobile Components        100          1,746  

Chaozhou Three-Circle Group Co. Ltd., Class A

   Electronic Equipment, Instruments & Components        700          3,068  

Chengdu Xingrong Environment Co. Ltd., Class A

   Water Utilities        1,400          1,040  

Chengxin Lithium Group Co. Ltd., Class A, A

   Paper & Forest Products        400          2,011  

China Baoan Group Co. Ltd., Class A

   Industrial Conglomerates        1,100          1,821  

bChina Bohai Bank Co. Ltd., Class H

   Banks        14,000          2,390  

China Cinda Asset Management Co. Ltd., Class H

   Capital Markets        46,000          5,801  

China CITIC Bank Corp. Ltd., Class A

   Banks        3,900          3,084  

China CITIC Bank Corp. Ltd., Class H

   Banks        42,000          21,134  

China Coal Energy Co. Ltd., Class A

   Oil, Gas & Consumable Fuels        1,800          2,071  

China Coal Energy Co. Ltd., Class H

   Oil, Gas & Consumable Fuels        9,000          6,822  

China Communications Services Corp. Ltd., Class H

   Diversified Telecommunication Services        14,000          6,884  

China Conch Venture Holdings Ltd.

   Construction & Engineering        7,440          12,985  

China Construction Bank Corp., Class A

   Banks        3,500          3,027  

China Construction Bank Corp., Class H

   Banks        448,000          290,488  

China CSSC Holdings Ltd., Class A

   Machinery        1,600          5,452  

bChina East Education Holdings Ltd., Class A

   Diversified Consumer Services        2,000          1,182  

aChina Eastern Airlines Corp. Ltd., Class A

   Airlines        3,900          2,925  

aChina Eastern Airlines Corp. Ltd., Class H

   Airlines        8,000          3,159  

 

           
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Annual Report

             139


FRANKLIN TEMPLETON ETF TRUST

SCHEDULE OF INVESTMENTS

 

Franklin FTSE Asia ex Japan ETF (continued)

 

      Industry          Shares                Value  

Common Stocks (continued)

            

China (continued)

            

China Energy Engineering Corp. Ltd.

   Construction & Engineering        11,600        $ 4,071  

China Energy Engineering Corp. Ltd., Class H

   Construction & Engineering        14,000          1,748  

China Everbright Bank Co. Ltd., Class A

   Banks        15,100          6,618  

China Everbright Bank Co. Ltd., Class H

   Banks        15,000          4,548  

aChina Evergrande Group, Class A

   Real Estate Management & Development        24,000          2,347  

bChina Feihe Ltd.

   Food Products        20,000          15,006  

China Galaxy Securities Co. Ltd., Class A

   Capital Markets        700          1,024  

China Galaxy Securities Co. Ltd., Class H

   Capital Markets        18,500          9,309  

China Great Wall Securities Co. Ltd., Class A

   Capital Markets        700          845  

China Greatwall Technology Group Co. Ltd., Class A

   Technology Hardware, Storage & Peripherals        1,100          1,983  

China Green Electricity Investment of Tianjin Co. Ltd., Class A, A

   Real Estate Management & Development        700          1,169  

China Hongqiao Group Ltd.

   Metals & Mining        11,000          10,538  

a,bChina Huarong Asset Management Co. Ltd., Class H

   Capital Markets        70,000          3,968  

China International Capital Corp. Ltd., Class A

   Capital Markets        400          2,265  

bChina International Capital Corp. Ltd., Class H

   Capital Markets        7,700          15,439  

China International Marine Containers Group Co. Ltd., Class A

   Machinery        750          831  

China International Marine Containers Group Co. Ltd., Class H

   Machinery        3,700          2,545  

China Jinmao Holdings Group Ltd., Class A

   Real Estate Management & Development        32,000          6,237  

China Jushi Co. Ltd., Class A

   Construction Materials        1,571          3,342  

China Lesso Group Holdings Ltd.

   Building Products        5,000          4,471  

China Life Insurance Co. Ltd., Class H

   Insurance        36,000          59,160  

a,bChina Literature Ltd., Class A

   Media        1,400          7,223  

China Longyuan Power Group Corp. Ltd., Class H

   Independent Power Producers & Energy Traders        17,000          19,426  

China Medical System Holdings Ltd.

   Pharmaceuticals        6,000          9,478  

China Meheco Co. Ltd., Class A

   Trading Companies & Distributors        560          1,119  

China Meidong Auto Holdings Ltd.

   Specialty Retail        2,000          4,316  

China Merchants Bank Co. Ltd., Class A

   Banks        7,100          35,431  

China Merchants Bank Co. Ltd., Class H

   Banks        18,000          91,950  

China Merchants Energy Shipping Co. Ltd., Class A

   Oil, Gas & Consumable Fuels        3,500          3,573  

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

   Transportation Infrastructure        700          863  

China Merchants Port Holdings Co. Ltd.

   Transportation Infrastructure        7,000          10,736  

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

   Real Estate Management & Development        400          890  

China Merchants Securities Co. Ltd., Class A

   Capital Markets        2,720          5,462  

bChina Merchants Securities Co. Ltd., Class H

   Capital Markets        2,200          2,108  

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

   Real Estate Management & Development        2,500          4,958  

China Minsheng Banking Corp. Ltd., Class A

   Banks        12,300          6,179  

China Minsheng Banking Corp. Ltd., Class H

   Banks        31,500          10,794  

China National Accord Medicines Corp. Ltd., Class B

   Health Care Providers & Services        400          881  

China National Building Material Co. Ltd., Class H

   Construction Materials        22,750          18,664  

China National Chemical Engineering Co. Ltd., Class A

   Construction & Engineering        2,100          2,838  

China National Nuclear Power Co. Ltd., Class A

   Independent Power Producers & Energy Traders        5,800          5,397  

China National Software & Service Co. Ltd., Class A

   Software        200          2,005  

aChina Nonferrous Metal Industry’s Foreign Engineering & Construction Co. Ltd., Class A

   Metals & Mining        700          559  

 

           
140             

Annual Report

  franklintempleton.com


FRANKLIN TEMPLETON ETF TRUST

SCHEDULE OF INVESTMENTS

 

Franklin FTSE Asia ex Japan ETF (continued)

 

      Industry       Shares                Value  

Common Stocks (continued)

         

China (continued)

         

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

   Metals & Mining     1,400        $ 5,319  

China Oilfield Services Ltd., Class A

   Energy Equipment & Services     700          1,486  

China Oilfield Services Ltd., Class H

   Energy Equipment & Services     8,000          8,204  

China Overseas Land & Investment Ltd., Class A

   Real Estate Management & Development     18,500          44,683  

China Pacific Insurance Group Co. Ltd., Class A

   Insurance     2,500          9,436  

China Pacific Insurance Group Co. Ltd., Class H

   Insurance     12,600          33,466  

China Petroleum & Chemical Corp., Class A

   Oil, Gas & Consumable Fuels     11,600          9,493  

China Petroleum & Chemical Corp., Class H

   Oil, Gas & Consumable Fuels     118,000          69,748  

China Railway Group Ltd., Class A

   Construction & Engineering     7,000          7,013  

China Railway Group Ltd., Class H

   Construction & Engineering     21,000          12,814  

China Railway Signal & Communication Corp. Ltd., Class A

   Electronic Equipment, Instruments & Components     2,333          1,841  

bChina Railway Signal & Communication Corp. Ltd., Class H

   Electronic Equipment, Instruments & Components     7,000          2,577  

aChina Rare Earth Resources & Technology Co. Ltd., Class A, A

   Metals & Mining     400          1,967  

China Reinsurance Group Corp., Class H

   Insurance     35,000          2,452  

China Resources Boya Bio-pharmaceutical Group Co. Ltd., Class A, A

   Biotechnology     200          1,017  

China Resources Cement Holdings Ltd.

   Construction Materials     12,000          5,885  

China Resources Double Crane Pharmaceutical Co. Ltd., Class A

   Pharmaceuticals     400          1,004  

China Resources Microelectronics Ltd., Class A, A

   Semiconductors & Semiconductor Equipment     343          3,020  

bChina Resources Mixc Lifestyle Services Ltd.

   Real Estate Management & Development     2,600          13,662  

bChina Resources Pharmaceutical Group Ltd., Class A

   Pharmaceuticals     7,500          5,943  

China Resources Power Holdings Co. Ltd.

   Independent Power Producers & Energy Traders     8,800          18,744  

China Resources Sanjiu Medical & Pharmaceutical Co. Ltd., Class A

   Pharmaceuticals     400          3,346  

aChina Ruyi Holdings Ltd.

   Entertainment     16,000          4,178  

China Shenhua Energy Co. Ltd., Class A

   Oil, Gas & Consumable Fuels     2,500          10,255  

China Shenhua Energy Co. Ltd., Class H

   Oil, Gas & Consumable Fuels     16,563          52,116  

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

   Media     700          1,186  

aChina Southern Airlines Co. Ltd., Class A

   Airlines     3,900          4,469  

aChina Southern Airlines Co. Ltd., Class H

   Airlines     8,000          5,707  

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

   Commercial Services & Supplies     1,100          1,243  

China State Construction Engineering Corp. Ltd., Class A

   Construction & Engineering     14,700          12,415  

China Suntien Green Energy Corp. Ltd., Class H

   Oil, Gas & Consumable Fuels     9,000          3,932  

China Taiping Insurance Holdings Co. Ltd.

   Insurance     7,000          7,437  

China Three Gorges Renewables Group Co. Ltd., Class A, A

   Independent Power Producers & Energy Traders     8,800          7,022  

China Tourism Group Duty Free Corp. Ltd., Class A

   Hotels, Restaurants & Leisure     600          16,010  

a,bChina Tourism Group Duty Free Corp. Ltd., Class H

   Specialty Retail     300          7,418  

bChina Tower Corp. Ltd., Class H

   Diversified Telecommunication Services     232,000          28,077  

aChina TransInfo Technology Co. Ltd., Class A

   IT Services     400          783  

aChina Travel International Investment Hong Kong Ltd., Class A

   Hotels, Restaurants & Leisure     14,000          2,871  

China United Network Communications Ltd., Class A

   Wireless Telecommunication Services     8,800          6,945  

China Vanke Co. Ltd., Class A

   Real Estate Management & Development     3,500          7,767  

 

           
franklintempleton.com  

Annual Report

             141


FRANKLIN TEMPLETON ETF TRUST

SCHEDULE OF INVESTMENTS

 

Franklin FTSE Asia ex Japan ETF (continued)

 

      Industry       Shares                Value  

Common Stocks (continued)

         

China (continued)

         

China Vanke Co. Ltd., Class H

   Real Estate Management & Development     9,500        $ 14,982  

China World Trade Center Co. Ltd., Class A, A

   Real Estate Management & Development     400          993  

China Yangtze Power Co. Ltd., Class A

   Independent Power Producers & Energy Traders     7,000          21,661  

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

   Electronic Equipment, Instruments & Components     200          2,623  

aChina Zheshang Bank Co. Ltd., Class A

   Banks     2,500          1,041  

Chinalin Securities Co. Ltd., Class A, A

   Capital Markets     400          854  

Chinese Universe Publishing & Media Group Co. Ltd., Class A

   Media     400          722  

Chongqing Brewery Co. Ltd., Class A

   Beverages     200          3,640  

Chongqing Changan Automobile Co. Ltd., Class A

   Automobiles     2,820          4,895  

Chongqing Changan Automobile Co. Ltd., Class B

   Automobiles     8,338          3,664  

Chongqing Fuling Zhacai Group Co. Ltd., Class A

   Food Products     400          1,475  

Chongqing Rural Commercial Bank Co. Ltd., Class A

   Banks     1,800          962  

Chongqing Rural Commercial Bank Co. Ltd., Class H

   Banks     12,000          4,372  

Chongqing Water Group Co. Ltd., Class A

   Water Utilities     400          313  

Chongqing Zhifei Biological Products Co. Ltd., Class A

   Biotechnology     600          7,158  

Chow Tai Fook Jewellery Group Ltd., Class A

   Specialty Retail     8,800          17,466  

CIFI Holdings Group Co. Ltd., Class A

   Real Estate Management & Development     20,880          2,022  

CITIC Ltd., Class B

   Industrial Conglomerates     23,000          26,897  

Citic Pacific Special Steel Group Co. Ltd., Class A

   Metals & Mining     1,880          4,867  

CITIC Securities Co. Ltd., Class A

   Capital Markets     4,395          13,107  

CITIC Securities Co. Ltd., Class H

   Capital Markets     11,000          23,485  

CMOC Group Ltd., Class A

   Metals & Mining     3,500          3,053  

CMOC Group Ltd., Class H

   Metals & Mining     21,000          12,707  

CMST Development Co. Ltd., Class A

   Air Freight & Logistics     400          308  

CNGR Advanced Material Co. Ltd., Class A

   Chemicals     200          2,087  

CNOOC Energy Technology & Services Ltd., Class A

   Energy Equipment & Services     2,500          1,201  

Contemporary Amperex Technology Co. Ltd., Class A

   Electrical Equipment     800          47,302  

COSCO SHIPPING Development Co. Ltd., Class A

   Marine Transportation     2,800          1,007  

COSCO SHIPPING Development Co. Ltd., Class H

   Marine Transportation     18,000          2,385  

aCOSCO SHIPPING Energy Transportation Co. Ltd., Class A

   Marine Transportation     1,100          2,169  

aCOSCO SHIPPING Energy Transportation Co. Ltd., Class H

   Marine Transportation     6,000          6,191  

COSCO SHIPPING Holdings Co. Ltd., Class A

   Marine Transportation     4,600          7,388  

COSCO SHIPPING Holdings Co. Ltd., Class H

   Marine Transportation     15,950          17,941  

Country Garden Holdings Co. Ltd.

   Real Estate Management & Development     60,000          16,892  

Country Garden Services Holdings Co. Ltd.

   Commercial Services & Supplies     9,300          16,088  

CRRC Corp. Ltd., Class A

   Machinery     8,100          7,219  

CRRC Corp. Ltd., Class H

   Machinery     21,000          11,450  

CSC Financial Co. Ltd., Class A

   Capital Markets     1,800          6,718  

bCSC Financial Co. Ltd., Class H

   Capital Markets     4,500          4,385  

CSG Holding Co. Ltd., Class A

   Construction Materials     700          684  

CSG Holding Co. Ltd., Class B

   Construction Materials     5,401          2,043  

CSPC Pharmaceutical Group Ltd., Class A

   Pharmaceuticals     40,000          39,338  

Daan Gene Co. Ltd., Class A

   Biotechnology     612          1,436  

aDada Nexus Ltd., Class A, ADR

   Consumer Staples Distribution & Retail     343          2,905  

 

           
142             

Annual Report

  franklintempleton.com


FRANKLIN TEMPLETON ETF TRUST

SCHEDULE OF INVESTMENTS

 

Franklin FTSE Asia ex Japan ETF (continued)

 

      Industry       Shares                Value  

Common Stocks (continued)

         

China (continued)

         

bDali Foods Group Co. Ltd.

   Food Products     11,000        $ 4,596  

Daqin Railway Co. Ltd., Class A

   Ground Transportation     5,300          5,549  

aDaqo New Energy Corp., ADR

   Semiconductors & Semiconductor Equipment     280          13,115  

aDatang International Power Generation Co. Ltd., Class A

   Independent Power Producers & Energy Traders     2,800          1,235  

aDatang International Power Generation Co. Ltd., Class H

   Independent Power Producers & Energy Traders     14,000          2,532  

DHC Software Co. Ltd., Class A

   IT Services     1,100          1,329  

Dian Diagnostics Group Co. Ltd., Class A

   Health Care Providers & Services     400          1,669  

Digital China Information Service Co. Ltd., Class A

   IT Services     400          816  

Do-Fluoride New Materials Co. Ltd., Class A

   Chemicals     400          1,934  

Dong-E-E-Jiao Co. Ltd., Class A

   Pharmaceuticals     200          1,543  

Dongfang Electric Corp. Ltd., Class A

   Electrical Equipment     1,100          3,037  

Dongfang Electric Corp. Ltd., Class H

   Electrical Equipment     1,800          2,908  

Dongfeng Motor Group Co. Ltd., Class H

   Automobiles     14,000          6,563  

Dongguan Development Holdings Co. Ltd., Class A

   Transportation Infrastructure     400          567  

Dongxing Securities Co. Ltd., Class A

   Capital Markets     1,100          1,346  

a,bEast Buy Holding Ltd.

   Diversified Consumer Services     1,000          4,312  

East Group Co. Ltd., Class A

   Electrical Equipment     400          453  

East Money Information Co. Ltd., Class A

   Capital Markets     4,888          14,257  

Easyhome New Retail Group Co. Ltd., Class A, A

   Broadline Retail     1,100          742  

Ecovacs Robotics Co. Ltd., Class A

   Household Durables     200          2,406  

ENN Energy Holdings Ltd.

   Gas Utilities     3,600          49,346  

ENN Natural Gas Co. Ltd., Class A

   Chemicals     1,100          3,340  

bESR Group Ltd., Class H

   Real Estate Management & Development     9,800          17,578  

Eternal Asia Supply Chain Management Ltd., Class A

   Commercial Services & Supplies     900          773  

Eve Energy Co. Ltd., Class A

   Electrical Equipment     680          6,902  

Everbright Securities Co. Ltd., Class A

   Capital Markets     1,400          3,107  

bEverbright Securities Co. Ltd., Class H

   Capital Markets     1,400          951  

a,bEvergrande Property Services Group Ltd.

   Real Estate Management & Development     24,000          3,253  

aFangda Carbon New Material Co. Ltd., Class A

   Electrical Equipment     1,460          1,369  

FAW Jiefang Group Co. Ltd.

   Automobiles     1,100          1,329  

Fiberhome Telecommunication Technologies Co. Ltd., Class A

   Communications Equipment     400          1,142  

Financial Street Holdings Co. Ltd., Class A

   Real Estate Management & Development     1,100          804  

First Capital Securities Co. Ltd., Class A

   Capital Markets     1,400          1,217  

Flat Glass Group Co. Ltd., Class A

   Semiconductors & Semiconductor Equipment     400          1,998  

Flat Glass Group Co. Ltd., Class H

   Semiconductors & Semiconductor Equipment     2,000          5,733  

Focus Media Information Technology Co. Ltd., Class A

   Technology Hardware, Storage & Peripherals     5,500          5,502  

Foshan Haitian Flavouring & Food Co. Ltd., Class A

   Food Products     1,400          15,604  

Fosun International Ltd.

   Industrial Conglomerates     10,500          7,704  

Foxconn Industrial Internet Co. Ltd., Class A

   Electronic Equipment, Instruments & Components     4,600          11,535  

Fujian Funeng Co. Ltd., Class A

   Independent Power Producers & Energy Traders     400          714  

Fujian Sunner Development Co. Ltd., Class A

   Food Products     400          1,436  

aFull Truck Alliance Co. Ltd., ADR

   Ground Transportation     3,017          22,959  

Fuyao Glass Industry Group Co. Ltd., Class A

   Automobile Components     700          3,543  

bFuyao Glass Industry Group Co. Ltd., Class H

   Automobile Components     2,800          12,199  

Ganfeng Lithium Group Co. Ltd., Class A

   Metals & Mining     600          5,808  

bGanfeng Lithium Group Co. Ltd., Class H

   Metals & Mining     1,400          8,703  

aGCL System Integration Technology Co. Ltd., Class A

   Semiconductors & Semiconductor Equipment     1,400          636  

aGCL Technology Holdings Ltd.

   Semiconductors & Semiconductor Equipment     98,000          25,343  

 

           
franklintempleton.com  

Annual Report

             143


FRANKLIN TEMPLETON ETF TRUST

SCHEDULE OF INVESTMENTS

 

Franklin FTSE Asia ex Japan ETF (continued)

 

      Industry       Shares                Value  

Common Stocks (continued)

         

China (continued)

         

aGD Power Development Co. Ltd., Class A

   Independent Power Producers & Energy Traders     5,600        $ 3,099  

aGDS Holdings Ltd., Class A

   IT Services     4,600          11,134  

GEM Co. Ltd., Class A

   Metals & Mining     1,800          1,958  

Gemdale Corp., Class A

   Real Estate Management & Development     1,800          2,202  

aGenscript Biotech Corp.

   Life Sciences Tools & Services     4,770          10,208  

GF Securities Co. Ltd., Class A

   Capital Markets     2,200          5,052  

GF Securities Co. Ltd., Class H

   Capital Markets     5,600          7,933  

GigaDevice Semiconductor, Inc., Class A

   Semiconductors & Semiconductor Equipment     100          1,777  

aGinlong Technologies Co. Ltd., Class A

   Electrical Equipment     150          2,918  

Glarun Technology Co. Ltd., Class A

   Communications Equipment     400          951  

GoerTek, Inc., Class A

   Electronic Equipment, Instruments & Components     1,100          3,428  

Gotion High-tech Co. Ltd., Class A

   Electrical Equipment     700          3,039  

aGrandjoy Holdings Group Co. Ltd., Class A

   Real Estate Management & Development     700          380  

Great Wall Motor Co. Ltd., Class A

   Automobiles     1,100          4,474  

Great Wall Motor Co. Ltd., Class H

   Automobiles     12,000          14,813  

Greentown China Holdings Ltd.

   Real Estate Management & Development     4,500          5,836  

GRG Banking Equipment Co. Ltd., Class A

   Technology Hardware, Storage & Peripherals     700          1,250  

Guangdong Baolihua New Energy Stock Co. Ltd., Class A

   Independent Power Producers & Energy Traders     1,100          969  

aGuangdong Electric Power Development Co. Ltd., Class A, A

   Independent Power Producers & Energy Traders     1,100          1,020  

aGuangdong Electric Power Development Co. Ltd., Class B

   Independent Power Producers & Energy Traders     3,200          876  

Guangdong Golden Dragon Development, Inc., Class A

   Capital Markets     400          805  

Guangdong Haid Group Co. Ltd., Class A

   Food Products     600          5,096  

Guangdong HEC Technology Holding Co. Ltd., Class A

   Metals & Mining     700          912  

Guangdong Kinlong Hardware Products Co. Ltd., Class A

   Building Products     100          1,171  

Guangdong Xinbao Electrical Appliances Holdings Co. Ltd., Class A

   Household Durables     400          993  

Guanghui Energy Co. Ltd., Class A

   Oil, Gas & Consumable Fuels     2,100          2,829  

aGuangshen Railway Co. Ltd., Class A

   Ground Transportation     1,100          386  

aGuangshen Railway Co. Ltd., Class H

   Ground Transportation     8,000          1,478  

Guangxi Guiguan Electric Power Co. Ltd., Class A

   Independent Power Producers & Energy Traders     1,100          891  

Guangxi Liugong Machinery Co. Ltd., Class A

   Machinery     500          493  

Guangzhou Automobile Group Co. Ltd., Class A

   Automobiles     1,100          1,784  

Guangzhou Automobile Group Co. Ltd., Class H

   Automobiles     16,000          10,089  

Guangzhou Baiyunshan Pharmaceutical Holdings Co. Ltd., Class A

   Pharmaceuticals     400          1,927  

Guangzhou Baiyunshan Pharmaceutical Holdings Co. Ltd., Class H

   Pharmaceuticals     1,100          3,391  

Guangzhou Haige Communications Group, Inc. Co., Class A

   Communications Equipment     700          1,070  

Guangzhou Kingmed Diagnostics Group Co. Ltd., Class A

   Health Care Providers & Services     200          2,566  

Guangzhou Shiyuan Electronic Technology Co. Ltd., Class A

   Electronic Equipment, Instruments & Components     100          1,090  

Guangzhou Tinci Materials Technology Co. Ltd., Class A

   Chemicals     720          4,399  

Guangzhou Yuexiu Capital Holdings Group Co. Ltd., Class A, A

   Capital Markets     980          940  

Guangzhou Zhujiang Brewery Co. Ltd., Class A

   Beverages     400          552  

Guizhou Panjiang Refined Coal Co. Ltd., Class A

   Oil, Gas & Consumable Fuels     700          737  

 

           
144             

Annual Report

  franklintempleton.com


FRANKLIN TEMPLETON ETF TRUST

SCHEDULE OF INVESTMENTS

 

Franklin FTSE Asia ex Japan ETF (continued)

 

      Industry       Shares                Value  

Common Stocks (continued)

         

China (continued)

         

Guizhou Xinbang Pharmaceutical Co. Ltd., Class A

   Pharmaceuticals     400        $ 293  

Guolian Securities Co. Ltd., Class A

   Capital Markets     700          1,079  

Guosen Securities Co. Ltd., Class A

   Capital Markets     1,600          2,183  

aGuosheng Financial Holding, Inc., Class A

   Electrical Equipment     400          508  

Guotai Junan Securities Co. Ltd., Class A

   Capital Markets     2,500          5,228  

bGuotai Junan Securities Co. Ltd., Class H

   Capital Markets     3,600          4,375  

Guoyuan Securities Co. Ltd., Class A

   Capital Markets     1,920          1,890  

aH World Group Ltd., ADR

   Hotels, Restaurants & Leisure     1,015          49,715  

a,bHaidilao International Holding Ltd.

   Hotels, Restaurants & Leisure     7,200          19,491  

Haier Smart Home Co. Ltd., Class A

   Household Durables     2,100          6,935  

Haier Smart Home Co. Ltd., Class H

   Household Durables     11,200          35,241  

Haisco Pharmaceutical Group Co. Ltd., Class A

   Pharmaceuticals     400          1,451  

Haitian International Holdings Ltd.

   Machinery     3,000          7,758  

Haitong Securities Co. Ltd., Class A

   Capital Markets     3,200          4,105  

Haitong Securities Co. Ltd., Class H

   Capital Markets     16,800          10,487  

aHang Zhou Great Star Industrial Co. Ltd., Class A

   Household Durables     400          1,102  

Hangzhou Binjiang Real Estate Group Co. Ltd., Class A

   Real Estate Management & Development     700          933  

Hangzhou First Applied Material Co. Ltd., Class A

   Semiconductors & Semiconductor Equipment     324          2,772  

Hangzhou Robam Appliances Co. Ltd., Class A

   Household Durables     400          1,652  

Hangzhou Shunwang Technology Co. Ltd., Class A

   Entertainment     400          901  

Hangzhou Silan Microelectronics Co. Ltd., Class A

   Semiconductors & Semiconductor Equipment     600          3,234  

Hangzhou Tigermed Consulting Co. Ltd., Class A

   Life Sciences Tools & Services     300          4,181  

bHangzhou Tigermed Consulting Co. Ltd., Class H

   Life Sciences Tools & Services     400          3,755  

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

   Machinery     400          1,768  

bHansoh Pharmaceutical Group Co. Ltd.

   Pharmaceuticals     5,000          8,688  

Haohua Chemical Science & Technology Co. Ltd., Class A, A

   Chemicals     400          2,601  

Hefei Meiya Optoelectronic Technology, Inc., Class A

   Machinery     120          564  

Heilongjiang Agriculture Co. Ltd., Class A

   Food Products     700          1,368  

Henan Shuanghui Investment & Development Co. Ltd., Class A

   Food Products     1,200          4,533  

Hengan International Group Co. Ltd.

   Personal Products     3,500          16,185  

Hengdian Group DMEGC Magnetics Co. Ltd., Class A

   Electronic Equipment, Instruments & Components     700          2,096  

Hengli Petrochemical Co. Ltd., Class A

   Chemicals     1,260          2,972  

Hengtong Optic-electric Co. Ltd., Class A

   Communications Equipment     700          1,539  

Hengyi Petrochemical Co. Ltd., Class A

   Chemicals     1,100          1,301  

Hesteel Co. Ltd., Class A

   Metals & Mining     4,600          1,561  

Hithink RoyalFlush Information Network Co. Ltd., Class A

   Capital Markets     200          5,950  

aHolitech Technology Co. Ltd., Class A

   Electronic Equipment, Instruments & Components     700          314  

Hopson Development Holdings Ltd.

   Real Estate Management & Development     4,182          3,825  

Hoshine Silicon Industry Co. Ltd., Class A

   Chemicals     200          2,418  

a,bHua Hong Semiconductor Ltd.

   Semiconductors & Semiconductor Equipment     2,000          8,854  

Huadian Power International Corp. Ltd., Class A

   Independent Power Producers & Energy Traders     1,800          1,518  

Huadian Power International Corp. Ltd., Class H

   Independent Power Producers & Energy Traders     10,000          4,102  

Huadong Medicine Co. Ltd., Class A

   Health Care Providers & Services     700          4,724  

Huafon Chemical Co. Ltd., Class A

   Chemicals     1,400          1,521  

Huagong Tech Co. Ltd., Class A

   Electronic Equipment, Instruments & Components     400          1,480  

Huaibei Mining Holdings Co. Ltd., Class A

   Metals & Mining     700          1,382  

Hualan Biological Engineering, Inc., Class A

   Biotechnology     700          2,225  

 

           
franklintempleton.com  

Annual Report

             145


FRANKLIN TEMPLETON ETF TRUST

SCHEDULE OF INVESTMENTS

 

Franklin FTSE Asia ex Japan ETF (continued)

 

      Industry       Shares                Value  

Common Stocks (continued)

         

China (continued)

         

aHuaneng Power International, Inc., Class A

   Independent Power Producers & Energy Traders     2,800        $ 3,494  

aHuaneng Power International, Inc., Class H

   Independent Power Producers & Energy Traders     22,000          11,547  

Huapont Life Sciences Co. Ltd., Class A

   Chemicals     1,100          900  

Huatai Securities Co. Ltd., Class A

   Capital Markets     2,700          5,021  

bHuatai Securities Co. Ltd., Class H

   Capital Markets     8,200          9,370  

Huaxi Securities Co. Ltd., Class A

   Capital Markets     700          839  

Huaxia Bank Co. Ltd., Class A

   Banks     4,900          3,839  

Huaxin Cement Co. Ltd., Class A

   Construction Materials     400          906  

Huaxin Cement Co. Ltd., Class H, H

   Construction Materials     1,400          1,523  

Huayu Automotive Systems Co. Ltd., Class A

   Automobile Components     1,100          2,681  

Hubei Biocause Pharmaceutical Co. Ltd., Class A

   Insurance     700          342  

Hubei Energy Group Co. Ltd., Class A

   Independent Power Producers & Energy Traders     2,100          1,294  

Hubei Xingfa Chemicals Group Co. Ltd., Class A, A

   Chemicals     400          1,774  

Huizhou Desay Sv Automotive Co. Ltd., Class A

   Household Durables     200          3,231  

Humanwell Healthcare Group Co. Ltd., Class A

   Pharmaceuticals     700          2,730  

Hunan Gold Corp. Ltd., Class A

   Metals & Mining     400          882  

Hunan Valin Steel Co. Ltd., Class A

   Metals & Mining     2,500          2,028  

Hundsun Technologies, Inc., Class A

   Software     676          5,239  

aHUTCHMED China Ltd.

   Pharmaceuticals     2,500          6,576  

a,bHygeia Healthcare Holdings Co. Ltd.

   Health Care Providers & Services     1,400          9,952  

aHytera Communications Corp. Ltd., Class A

   Communications Equipment     400          393  

Iflytek Co. Ltd., Class A

   Software     800          7,418  

Imeik Technology Development Co. Ltd., Class A, A

   Biotechnology     100          8,136  

Industrial & Commercial Bank of China Ltd., Class A

   Banks     26,600          17,275  

Industrial & Commercial Bank of China Ltd., Class H

   Banks     378,000          201,280  

Industrial Bank Co. Ltd., Class A

   Banks     7,400          18,200  

Industrial Securities Co. Ltd., Class A

   Capital Markets     3,240          2,887  

Ingenic Semiconductor Co. Ltd., Class A

   Semiconductors & Semiconductor Equipment     200          2,592  

Inmyshow Digital Technology Group Co. Ltd., Class A

   Media     700          943  

Inner Mongolia BaoTou Steel Union Co. Ltd., Class A

   Metals & Mining     13,300          3,660  

Inner Mongolia Dian Tou Energy Corp. Ltd., Class A

   Oil, Gas & Consumable Fuels     400          783  

Inner Mongolia ERDOS Resources Co. Ltd., Class B

   Metals & Mining     2,100          3,984  

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

   Chemicals     2,800          1,843  

Inner Mongolia Yili Industrial Group Co. Ltd., Class A

   Food Products     2,200          9,329  

Inner Mongolia Yitai Coal Co. Ltd., Class B

   Oil, Gas & Consumable Fuels     4,900          7,198  

a,bInnovent Biologics, Inc., Class B

   Biotechnology     6,500          29,105  

Inspur Electronic Information Industry Co. Ltd., Class A

   Technology Hardware, Storage & Peripherals     400          2,044  

Intco Medical Technology Co. Ltd., Class A

   Health Care Equipment & Supplies     180          677  

aiQIYI, Inc., ADR

   Entertainment     2,086          15,186  

JA Solar Technology Co. Ltd., Class A

   Semiconductors & Semiconductor Equipment     740          6,179  

Jafron Biomedical Co. Ltd., Class A

   Health Care Equipment & Supplies     400          1,768  

JCET Group Co. Ltd., Class A

   Semiconductors & Semiconductor Equipment     700          3,308  

a,bJD Health International, Inc.

   Consumer Staples Distribution & Retail     4,900          36,454  

a,bJD Logistics, Inc.

   Air Freight & Logistics     8,100          14,549  

JD.com, Inc., Class A

   Broadline Retail     11,350          248,689  

aJiajiayue Group Co. Ltd., Class A

   Consumer Staples Distribution & Retail     400          783  

 

           
146             

Annual Report

  franklintempleton.com


FRANKLIN TEMPLETON ETF TRUST

SCHEDULE OF INVESTMENTS

 

Franklin FTSE Asia ex Japan ETF (continued)

 

      Industry       Shares                Value  

Common Stocks (continued)

         

China (continued)

         

Jiangling Motors Corp. Ltd., Class A, A

   Automobiles     400        $ 824  

Jiangsu Eastern Shenghong Co. Ltd., Class A

   Chemicals     1,400          2,777  

Jiangsu Expressway Co. Ltd., Class A

   Transportation Infrastructure     400          486  

Jiangsu Expressway Co. Ltd., Class H

   Transportation Infrastructure     6,000          5,595  

Jiangsu Hengli Hydraulic Co. Ltd., Class A

   Machinery     496          4,783  

Jiangsu Hengrui Pharmaceuticals Co. Ltd., Class A

   Pharmaceuticals     2,332          14,541  

Jiangsu King’s Luck Brewery JSC Ltd., Class A

   Beverages     500          4,722  

Jiangsu Linyang Energy Co. Ltd., Class A

   Electrical Equipment     700          806  

Jiangsu Yanghe Brewery Joint-Stock Co. Ltd., Class A

   Beverages     500          12,047  

Jiangsu Yangnong Chemical Co. Ltd., Class A

   Chemicals     100          1,414  

Jiangsu Yuyue Medical Equipment & Supply Co. Ltd., Class A

   Health Care Equipment & Supplies     400          1,855  

Jiangsu Zhangjiagang Rural Commercial Bank Co. Ltd., Class A

   Banks     480          313  

aJiangsu Zhongnan Construction Group Co. Ltd., Class A

   Real Estate Management & Development     1,800          532  

Jiangsu Zhongtian Technology Co. Ltd., Class A

   Electrical Equipment     1,100          2,737  

Jiangxi Copper Co. Ltd., Class A

   Metals & Mining     700          2,017  

Jiangxi Copper Co. Ltd., Class H

   Metals & Mining     6,000          10,166  

aJiangxi Special Electric Motor Co. Ltd., Class A, A

   Electrical Equipment     700          1,569  

aJiangxi Zhengbang Technology Co. Ltd., Class A

   Food Products     700          336  

Jilin Aodong Pharmaceutical Group Co. Ltd., Class A

   Pharmaceuticals     400          892  

aJinke Properties Group Co. Ltd., Class A

   Real Estate Management & Development     2,500          579  

Jinke Smart Services Group Co. Ltd., Class H

   Real Estate Management & Development     1,400          2,140  

bJinxin Fertility Group Ltd.

   Health Care Providers & Services     7,500          5,025  

JiuGui Liquor Co. Ltd., Class A

   Beverages     100          1,883  

bJiumaojiu International Holdings Ltd.

   Hotels, Restaurants & Leisure     3,000          7,139  

Jizhong Energy Resources Co. Ltd., Class A

   Oil, Gas & Consumable Fuels     1,100          1,096  

Joincare Pharmaceutical Group Industry Co. Ltd., Class A

   Pharmaceuticals     700          1,342  

Joinn Laboratories China Co. Ltd., Class A

   Life Sciences Tools & Services     140          1,067  

bJoinn Laboratories China Co. Ltd., Class H

   Life Sciences Tools & Services     420          1,635  

aJointo Energy Investment Co. Ltd. Hebei, Class A

   Independent Power Producers & Energy Traders     400          298  

Jointown Pharmaceutical Group Co. Ltd., Class A

   Health Care Providers & Services     700          1,523  

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

   Food Products     400          2,161  

Joyoung Co. Ltd., Class A

   Household Durables     400          1,044  

JOYY, Inc., ADR

   Interactive Media & Services     224          6,984  

Juewei Food Co. Ltd., Class A

   Food Products     100          638  

aJuneyao Airlines Co. Ltd., Class A, A

   Airlines     400          1,047  

aKaishan Group Co. Ltd., Class A

   Machinery     400          1,031  

aKanzhun Ltd., ADR

   Interactive Media & Services     672          12,788  

aKE Holdings, Inc., ADR

   Real Estate Management & Development     3,003          56,577  

Keda Industrial Group Co. Ltd.

   Machinery     700          1,471  

Kerry Logistics Network Ltd.

   Air Freight & Logistics     1,500          2,331  

Kingboard Holdings Ltd.

   Electronic Equipment, Instruments & Components     3,500          10,745  

aKingdee International Software Group Co. Ltd.

   Software     13,000          21,065  

aKingsoft Cloud Holdings Ltd., ADR

   IT Services     497          4,418  

Kingsoft Corp. Ltd.

   Software     4,400          21,664  

a,bKuaishou Technology, Class B

   Interactive Media & Services     9,100          70,076  

Kuang-Chi Technologies Co. Ltd., Class A

   Automobile Components     700          1,688  

Kunlun Tech Co. Ltd., Class A

   Entertainment     400          2,725  

Kweichow Moutai Co. Ltd., Class A

   Beverages     420          111,310  

aLakala Payment Co. Ltd., Class A

   IT Services     400          1,094  

 

           
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FRANKLIN TEMPLETON ETF TRUST

SCHEDULE OF INVESTMENTS

 

Franklin FTSE Asia ex Japan ETF (continued)

 

      Industry       Shares                Value  

Common Stocks (continued)

         

China (continued)

         

Lao Feng Xiang Co. Ltd., Class B

   Textiles, Apparel & Luxury Goods     1,100        $ 3,674  

Laobaixing Pharmacy Chain JSC, Class A

   Consumer Staples Distribution & Retail     130          709  

LB Group Co. Ltd., Class A

   Chemicals     900          2,653  

Lee & Man Paper Manufacturing Ltd.

   Paper & Forest Products     7,000          2,800  

bLegend Holdings Corp., Class H

   Technology Hardware, Storage & Peripherals     2,700          2,879  

Lenovo Group Ltd.

   Technology Hardware, Storage & Peripherals     36,000          38,981  

Lens Technology Co. Ltd., Class A

   Electronic Equipment, Instruments & Components     1,800          3,541  

aLeo Group Co. Ltd., Class A

   Media     2,100          731  

Lepu Medical Technology Beijing Co. Ltd., Class A

   Health Care Equipment & Supplies     700          2,363  

Levima Advanced Materials Corp., Class A, A

   Chemicals     400          1,661  

Leyard Optoelectronic Co. Ltd., Class A

   Electronic Equipment, Instruments & Components     700          694  

aLi Auto, Inc., Class A

   Automobiles     5,100          63,669  

Li Ning Co. Ltd.

   Textiles, Apparel & Luxury Goods     11,000          86,739  

LianChuang Electronic Technology Co. Ltd., Class A

   Electronic Equipment, Instruments & Components     400          745  

Lianhe Chemical Technology Co. Ltd., Class A

   Chemicals     400          821  

Liaoning Port Co. Ltd., Class A

   Transportation Infrastructure     6,700          1,561  

aLingyi iTech Guangdong Co., Class A

   Electrical Equipment     2,800          2,520  

Livzon Pharmaceutical Group, Inc., Class A

   Pharmaceuticals     200          1,089  

Livzon Pharmaceutical Group, Inc., Class H

   Pharmaceuticals     800          2,823  

bLongfor Group Holdings Ltd.

   Real Estate Management & Development     9,330          26,326  

LONGi Green Energy Technology Co. Ltd., Class A

   Semiconductors & Semiconductor Equipment     2,400          14,123  

Longshine Technology Group Co. Ltd., Class A, A

   Software     400          1,557  

Luenmei Quantum Co. Ltd., Class A

   Water Utilities     700          633  

Lufax Holding Ltd., ADR

   Consumer Finance     3,416          6,969  

Luxi Chemical Group Co. Ltd., Class A

   Chemicals     700          1,391  

Luxshare Precision Industry Co. Ltd., Class A

   Electronic Equipment, Instruments & Components     2,500          11,034  

a,bLuye Pharma Group Ltd.

   Pharmaceuticals     9,500          4,405  

Luzhou Laojiao Co. Ltd., Class A

   Beverages     500          18,551  

Maanshan Iron & Steel Co. Ltd., Class A

   Metals & Mining     1,800          755  

Maanshan Iron & Steel Co. Ltd., Class H

   Metals & Mining     4,000          922  

Mango Excellent Media Co. Ltd., Class A

   Entertainment     740          4,013  

Maxscend Microelectronics Co. Ltd., Class A

   Electronic Equipment, Instruments & Components     160          2,898  

aMeinian Onehealth Healthcare Holdings Co. Ltd., Class A

   Health Care Providers & Services     1,520          1,664  

a,bMeituan, Class B

   Hotels, Restaurants & Leisure     22,700          414,964  

Metallurgical Corp. of China Ltd., Class A

   Construction & Engineering     5,600          3,180  

Metallurgical Corp. of China Ltd., Class H

   Construction & Engineering     15,000          3,879  

aMicroport Scientific Corp.

   Health Care Equipment & Supplies     4,200          9,877  

Ming Yang Smart Energy Group Ltd., Class A

   Electrical Equipment     700          2,294  

Ming Yuan Cloud Group Holdings Ltd.

   Software     3,000          1,922  

MINISO Group Holding Ltd., ADR

   Broadline Retail     364          6,457  

Minth Group Ltd.

   Automobile Components     3,500          10,567  

aMMG Ltd.

   Metals & Mining     12,000          3,516  

Montage Technology Co. Ltd., Class A

   Semiconductors & Semiconductor Equipment     297          3,007  

aMontnets Cloud Technology Group Co. Ltd., Class A

   Software     400          839  

Muyuan Foods Co. Ltd., Class A

   Food Products     1,896          13,528  

NanJi E-Commerce Co. Ltd., Class A

   Media     700          517  

Nanjing Hanrui Cobalt Co. Ltd., Class A

   Metals & Mining     100          616  

Nanjing Iron & Steel Co. Ltd., Class A

   Metals & Mining     2,500          1,416  

Nanjing King-Friend Biochemical Pharmaceutical Co. Ltd., Class A

   Pharmaceuticals     520          1,234  

NARI Technology Co. Ltd., Class A

   Electrical Equipment     2,580          10,185  

NAURA Technology Group Co. Ltd., Class A

   Electronic Equipment, Instruments & Components     200          7,742  

 

           
148             

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FRANKLIN TEMPLETON ETF TRUST

SCHEDULE OF INVESTMENTS

 

Franklin FTSE Asia ex Japan ETF (continued)

 

      Industry       Shares                Value  

Common Stocks (continued)

         

China (continued)

         

NavInfo Co. Ltd., Class A

   Household Durables     700        $ 1,379  

NetEase, Inc.

   Entertainment     8,900          156,460  

New China Life Insurance Co. Ltd., Class A

   Insurance     700          3,109  

New China Life Insurance Co. Ltd., Class H

   Insurance     4,600          10,935  

aNew Hope Liuhe Co. Ltd., Class A

   Food Products     1,400          2,697  

aNew Oriental Education & Technology Group, Inc.

   Diversified Consumer Services     6,610          25,767  

Newland Digital Technology Co. Ltd., Class A

   Software     400          975  

Nexteer Automotive Group Ltd.

   Automobile Components     5,000          3,153  

Nine Dragons Paper Holdings Ltd.

   Paper & Forest Products     8,000          5,992  

Ninestar Corp., Class A

   Technology Hardware, Storage & Peripherals     700          4,569  

Ningbo Deye Technology Co. Ltd., Class A, A

   Machinery     40          1,503  

aNingbo Joyson Electronic Corp., Class A

   Automobile Components     500          1,109  

Ningbo Orient Wires & Cables Co. Ltd., Class A, A

   Electrical Equipment     300          2,154  

Ningbo Ronbay New Energy Technology Co. Ltd., Class A

   Electrical Equipment     175          1,743  

Ningbo Sanxing Medical Electric Co. Ltd., Class A

   Electrical Equipment     400          741  

Ningbo Shanshan Co. Ltd., Class A, A

   Chemicals     700          1,756  

Ningbo Tuopu Group Co. Ltd., Class A

   Automobile Components     400          3,735  

Ningbo Zhoushan Port Co. Ltd., Class A

   Transportation Infrastructure     3,200          1,687  

Ningxia Baofeng Energy Group Co. Ltd., Class A

   Chemicals     1,100          2,363  

aNIO, Inc., ADR

   Automobiles     5,803          60,990  

bNongfu Spring Co. Ltd., Class H

   Beverages     8,400          48,314  

North Huajin Chemical Industries Co. Ltd., Class A

   Chemicals     400          433  

North Industries Group Red Arrow Co. Ltd., Class A

   Machinery     400          1,330  

Northeast Securities Co. Ltd., Class A

   Capital Markets     700          691  

NSFOCUS Technologies Group Co. Ltd., Class A .

   Software     400          810  

aOceanwide Holdings Co. Ltd., Class A

   Financial Services     700          107  

aOffcn Education Technology Co. Ltd., Class A

   Diversified Consumer Services     700          499  

Offshore Oil Engineering Co. Ltd., Class A

   Energy Equipment & Services     1,800          1,607  

aOFILM Group Co. Ltd., Class A

   Electronic Equipment, Instruments & Components     1,400          1,080  

Oppein Home Group, Inc., Class A

   Household Durables     100          1,759  

ORG Technology Co. Ltd., Class A

   Containers & Packaging     700          527  

Orient Securities Co. Ltd., Class A

   Capital Markets     2,772          3,952  

bOrient Securities Co. Ltd., Class H

   Capital Markets     3,600          1,931  

Oriental Energy Co. Ltd., Class A

   Oil, Gas & Consumable Fuels     700          898  

aOurpalm Co. Ltd., Class A

   Entertainment     1,400          881  

Ovctek China, Inc., Class A

   Health Care Equipment & Supplies     400          1,929  

aPangang Group Vanadium Titanium & Resources Co. Ltd., Class A

   Metals & Mining     2,500          1,798  

aPDD Holdings, Inc., ADR

   Internet & Direct Marketing Retail     2,093          158,859  

People.cn Co. Ltd., Class A

   Media     400          1,100  

People’s Insurance Co. Group of China Ltd., Class A

   Insurance     3,500          2,650  

Perfect World Co. Ltd., Class A

   Entertainment     400          991  

PetroChina Co. Ltd., Class A

   Oil, Gas & Consumable Fuels     8,800          7,586  

PetroChina Co. Ltd., Class H

   Oil, Gas & Consumable Fuels     102,000          60,421  

Pharmaron Beijing Co. Ltd., Class A

   Life Sciences Tools & Services     150          1,070  

bPharmaron Beijing Co. Ltd., Class H

   Life Sciences Tools & Services     1,000          4,197  

PICC Property & Casualty Co. Ltd., Class H

   Insurance     32,000          32,652  

Ping An Bank Co. Ltd., Class A

   Banks     6,700          12,225  

a,bPing An Healthcare & Technology Co. Ltd.

   Health Care Technology     2,000          5,060  

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

   Insurance     3,500          23,241  

 

           
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             149


FRANKLIN TEMPLETON ETF TRUST

SCHEDULE OF INVESTMENTS

 

Franklin FTSE Asia ex Japan ETF (continued)

 

      Industry       Shares                Value  

Common Stocks (continued)

         

China (continued)

         

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

   Insurance     29,950        $ 194,962  

Pingdingshan Tianan Coal Mining Co. Ltd., Class A

   Oil, Gas & Consumable Fuels     800          1,208  

Poly Developments & Holdings Group Co. Ltd., Class A

   Real Estate Management & Development     4,200          8,642  

Poly Property Services Co. Ltd., Class H

   Real Estate Management & Development     800          4,902  

bPop Mart International Group Ltd.

   Specialty Retail     3,600          9,814  

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

   Banks     7,400          5,011  

bPostal Savings Bank of China Co. Ltd., Class H

   Banks     42,000          24,933  

Power Construction Corp. of China Ltd., Class A

   Construction & Engineering     3,900          4,049  

Qingdao Port International Co. Ltd., Class A

   Transportation Infrastructure     400          370  

Qingdao TGOOD Electric Co. Ltd., Class A

   Electrical Equipment     400          1,028  

aQinghai Salt Lake Industry Co. Ltd., Class A

   Chemicals     1,800          5,861  

Qinhuangdao Port Co. Ltd., Class A

   Transportation Infrastructure     700          288  

Raytron Technology Co. Ltd., Class A

   Electronic Equipment, Instruments & Components     111          790  

Red Star Macalline Group Corp. Ltd., Class A

   Real Estate Management & Development     420          343  

bRed Star Macalline Group Corp. Ltd., Class H

   Real Estate Management & Development     3,600          1,651  

a,bRemegen Co. Ltd., Class H

   Biotechnology     500          2,666  

aRiseSun Real Estate Development Co. Ltd., Class A

   Real Estate Management & Development     1,100          295  

aRLX Technology, Inc., ADR

   Tobacco     3,549          10,292  

Rongsheng Petrochemical Co. Ltd., Class A

   Chemicals     1,250          2,754  

SAIC Motor Corp. Ltd., Class A

   Automobiles     3,500          7,319  

Sailun Group Co. Ltd., Class A, A

   Automobile Components     1,100          1,728  

Sangfor Technologies, Inc., Class A

   Software     100          2,155  

Sansteel Minguang Co. Ltd. Fujian, Class A

   Metals & Mining     700          499  

Sany Heavy Industry Co. Ltd., Class A

   Machinery     2,800          6,968  

Satellite Chemical Co. Ltd., Class A

   Chemicals     1,113          2,593  

Sealand Securities Co. Ltd., Class A

   Capital Markets     1,280          634  

aSeazen Group Ltd.

   Real Estate Management & Development     12,000          3,103  

aSeazen Holdings Co. Ltd., Class A

   Real Estate Management & Development     800          1,904  

a,bSenseTime Group, Inc., Class B

   Software     70,000          23,720  

SF Holding Co. Ltd., Class A

   Air Freight & Logistics     1,400          11,290  

SG Micro Corp., Class A

   Semiconductors & Semiconductor Equipment     150          3,390  

Shaanxi Coal Industry Co. Ltd., Class A

   Oil, Gas & Consumable Fuels     3,500          10,367  

Shaanxi International Trust Co. Ltd., Class A

   Capital Markets     700          325  

Shan Xi Hua Yang Group New Energy Co. Ltd., Class A

   Oil, Gas & Consumable Fuels     700          1,409  

aShandong Chenming Paper Holdings Ltd., Class A

   Paper & Forest Products     700          541  

aShandong Chenming Paper Holdings Ltd., Class B

   Paper & Forest Products     3,500          1,021  

aShandong Chenming Paper Holdings Ltd., Class H

   Paper & Forest Products     3,000          940  

Shandong Denghai Seeds Co. Ltd., Class A

   Food Products     400          1,089  

Shandong Gold Mining Co. Ltd., Class A

   Metals & Mining     1,400          4,493  

bShandong Gold Mining Co. Ltd., Class H

   Metals & Mining     3,500          7,107  

Shandong Himile Mechanical Science & Technology Co. Ltd., Class A

   Machinery     400          1,823  

Shandong Hi-speed Co. Ltd., Class A

   Transportation Infrastructure     1,100          980  

Shandong Hualu Hengsheng Chemical Co. Ltd., Class A

   Chemicals     700          3,593  

Shandong Humon Smelting Co. Ltd., Class A

   Metals & Mining     400          682  

Shandong Linglong Tyre Co. Ltd., Class A

   Automobile Components     400          1,138  

Shandong Nanshan Aluminum Co. Ltd., Class A

   Metals & Mining     3,500          1,728  

 

           
150             

Annual Report

  franklintempleton.com


FRANKLIN TEMPLETON ETF TRUST

SCHEDULE OF INVESTMENTS

 

Franklin FTSE Asia ex Japan ETF (continued)

 

      Industry       Shares                Value  

Common Stocks (continued)

         

China (continued)

         

Shandong Pharmaceutical Glass Co. Ltd., Class A

   Health Care Equipment & Supplies     400        $ 1,529  

Shandong Sun Paper Industry JSC Ltd., Class A .

   Paper & Forest Products     700          1,243  

Shandong Weigao Group Medical Polymer Co. Ltd., Class H

   Health Care Equipment & Supplies     11,800          18,850  

Shanghai 2345 Network Holding Group Co. Ltd., Class A

   Software     1,100          533  

Shanghai AJ Group Co. Ltd., Class A

   Financial Services     400          313  

Shanghai Bailian Group Co. Ltd., Class B

   Consumer Staples Distribution & Retail     1,400          955  

Shanghai Bairun Investment Holding Group Co. Ltd., Class A

   Beverages     392          2,335  

Shanghai Baosight Software Co. Ltd., Class A

   Software     300          2,542  

Shanghai Baosight Software Co. Ltd., Class B

   Software     2,612          8,625  

Shanghai Construction Group Co. Ltd., Class A

   Construction & Engineering     2,500          994  

Shanghai Dazhong Public Utilities Group Co. Ltd., Class A

   Gas Utilities     700          308  

aShanghai Electric Group Co. Ltd., Class A

   Electrical Equipment     2,800          1,802  

aShanghai Electric Group Co. Ltd., Class H

   Electrical Equipment     14,000          3,496  

aShanghai Electric Power Co. Ltd., Class A

   Independent Power Producers & Energy Traders     1,100          1,591  

Shanghai Fosun Pharmaceutical Group Co. Ltd., Class A

   Pharmaceuticals     700          3,302  

Shanghai Fosun Pharmaceutical Group Co. Ltd., Class H

   Pharmaceuticals     2,000          5,682  

Shanghai Fudan Microelectronics Group Co. Ltd., Class H

   Semiconductors & Semiconductor Equipment     1,000          3,675  

Shanghai Huayi Group Co. Ltd., Class B

   Chemicals     700          406  

aShanghai International Airport Co. Ltd., Class A

   Transportation Infrastructure     800          6,492  

Shanghai International Port Group Co. Ltd., Class A

   Transportation Infrastructure     3,500          2,824  

Shanghai Jinjiang International Hotels Co. Ltd., Class A

   Hotels, Restaurants & Leisure     400          3,664  

Shanghai Jinjiang International Hotels Co. Ltd., Class B

   Hotels, Restaurants & Leisure     700          1,477  

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

   Real Estate Management & Development     400          694  

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

   Real Estate Management & Development     1,100          1,048  

a,bShanghai Junshi Biosciences Co. Ltd., Class H

   Biotechnology     1,000          3,490  

Shanghai Lingang Holdings Corp. Ltd., Class A

   Real Estate Management & Development     520          961  

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

   Real Estate Management & Development     700          1,018  

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

   Real Estate Management & Development     5,300          4,097  

Shanghai Mechanical & Electrical Industry Co. Ltd., Class B

   Machinery     1,400          1,498  

Shanghai Pharmaceuticals Holding Co. Ltd., Class A

   Health Care Providers & Services     1,000          2,966  

Shanghai Pharmaceuticals Holding Co. Ltd., Class H

   Health Care Providers & Services     4,400          8,206  

Shanghai Pudong Development Bank Co. Ltd., Class A

   Banks     10,500          10,993  

Shanghai Putailai New Energy Technology Co. Ltd., Class A

   Chemicals     540          3,925  

Shanghai RAAS Blood Products Co. Ltd., Class A

   Biotechnology     1,800          1,685  

Shanghai Shibei Hi-Tech Co. Ltd., Class B

   Real Estate Management & Development     3,200          829  

Shanghai Tunnel Engineering Co. Ltd., Class A

   Construction & Engineering     1,400          1,162  

 

           
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FRANKLIN TEMPLETON ETF TRUST

SCHEDULE OF INVESTMENTS

 

Franklin FTSE Asia ex Japan ETF (continued)

 

      Industry       Shares                Value  

Common Stocks (continued)

         

China (continued)

         

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

   Trading Companies & Distributors     400        $ 721  

Shanghai Waigaoqiao Free Trade Zone Group Co. Ltd., Class B

   Trading Companies & Distributors     700          653  

Shanghai Yuyuan Tourist Mart Group Co. Ltd., Class A

   Specialty Retail     1,400          1,657  

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

   Real Estate Management & Development     700          1,677  

Shanghai Zhenhua Heavy Industries Co. Ltd., Class B

   Machinery     3,900          979  

aShangri-La Asia Ltd.

   Hotels, Restaurants & Leisure     6,000          5,625  

Shanxi Coking Coal Energy Group Co. Ltd., Class A

   Oil, Gas & Consumable Fuels     1,480          2,368  

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

   Oil, Gas & Consumable Fuels     1,100          3,514  

Shanxi Meijin Energy Co. Ltd., Class A, A

   Metals & Mining     1,400          1,871  

Shanxi Securities Co. Ltd., Class A

   Capital Markets     820          694  

Shanxi Taigang Stainless Steel Co. Ltd., Class A

   Metals & Mining     2,100          1,327  

Shanxi Xinghuacun Fen Wine Factory Co. Ltd., Class A

   Beverages     400          15,866  

Shanying International Holding Co. Ltd., Class A

   Paper & Forest Products     1,100          396  

Shenghe Resources Holding Co. Ltd., Class A

   Metals & Mining     700          1,442  

Shengyi Technology Co. Ltd., Class A

   Electronic Equipment, Instruments & Components     700          1,882  

Shennan Circuits Co. Ltd., Class A, A

   Electronic Equipment, Instruments & Components     100          1,344  

Shenwan Hongyuan Group Co. Ltd., Class A

   Capital Markets     7,400          4,493  

bShenwan Hongyuan Group Co. Ltd., Class H

   Capital Markets     8,800          1,670  

Shenzhen Agricultural Products Group Co. Ltd., Class A

   Consumer Staples Distribution & Retail     400          335  

Shenzhen Airport Co. Ltd., Class A

   Transportation Infrastructure     700          743  

Shenzhen Aisidi Co. Ltd., Class A

   Electronic Equipment, Instruments & Components     400          535  

Shenzhen Capchem Technology Co. Ltd., Class A

   Chemicals     360          2,558  

Shenzhen Dynanonic Co. Ltd., Class A, A

   Chemicals     50          1,379  

Shenzhen Energy Group Co. Ltd., Class A

   Independent Power Producers & Energy Traders     1,880          1,673  

aShenzhen Everwin Precision Technology Co. Ltd., Class A

   Electronic Equipment, Instruments & Components     460          908  

Shenzhen Expressway Corp. Ltd., Class H

   Transportation Infrastructure     4,000          3,557  

Shenzhen Gas Corp. Ltd., Class A

   Gas Utilities     1,100          1,099  

bShenzhen Hepalink Pharmaceutical Group Co. Ltd., Class H

   Pharmaceuticals     500          348  

Shenzhen Huaqiang Industry Co. Ltd., Class A

   Electronic Equipment, Instruments & Components     400          811  

aShenzhen Infogem Technologies Co. Ltd., Class A, A

   Software     400          701  

Shenzhen Inovance Technology Co. Ltd., Class A

   Machinery     900          9,213  

Shenzhen International Holdings Ltd.

   Transportation Infrastructure     7,000          6,189  

Shenzhen Investment Ltd.

   Real Estate Management & Development     14,000          2,479  

Shenzhen Jinjia Group Co. Ltd., Class A

   Containers & Packaging     400          432  

Shenzhen Kaifa Technology Co. Ltd., Class A

   Technology Hardware, Storage & Peripherals     400          974  

Shenzhen Kangtai Biological Products Co. Ltd., Class A

   Biotechnology     480          2,212  

Shenzhen Kedali Industry Co. Ltd., Class A, A

   Automobile Components     100          1,883  

Shenzhen Kingdom Sci-Tech Co. Ltd., Class A

   Software     400          820  

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

   Health Care Equipment & Supplies     400          18,156  

aShenzhen MTC Co. Ltd., Class A

   Household Durables     2,100          1,508  

Shenzhen Overseas Chinese Town Co. Ltd., Class A    

   Hotels, Restaurants & Leisure     2,500          1,758  

 

           
152             

Annual Report

  franklintempleton.com


FRANKLIN TEMPLETON ETF TRUST

SCHEDULE OF INVESTMENTS

 

Franklin FTSE Asia ex Japan ETF (continued)

 

      Industry       Shares                Value  

Common Stocks (continued)

         

China (continued)

         

Shenzhen Salubris Pharmaceuticals Co. Ltd., Class A

   Pharmaceuticals     400        $ 2,060  

Shenzhen SC New Energy Technology Corp., Class A

   Semiconductors & Semiconductor Equipment     100          1,667  

Shenzhen Sunway Communication Co. Ltd., Class A

   Communications Equipment     400          1,219  

Shenzhen Transsion Holdings Co. Ltd., Class A

   Technology Hardware, Storage & Peripherals     216          3,183  

Shenzhen Yan Tian Port Holding Co. Ltd., Class A, A

   Transportation Infrastructure     700          514  

Shenzhen YUTO Packaging Technology Co. Ltd., Class A

   Containers & Packaging     400          1,621  

Shenzhen Zhongjin Lingnan Nonfemet Co. Ltd., Class A

   Metals & Mining     1,100          788  

Shenzhou International Group Holdings Ltd.

   Textiles, Apparel & Luxury Goods     3,600          37,789  

aShijiazhuang Changshan BeiMing Technology Co. Ltd., Class A

   Textiles, Apparel & Luxury Goods     400          530  

Shijiazhuang Yiling Pharmaceutical Co. Ltd., Class A

   Pharmaceuticals     720          3,052  

aShimao Group Holdings Ltd.

   Real Estate Management & Development     8,500          2,246  

a,bShimao Services Holdings Ltd., Class Z

   Real Estate Management & Development     4,000          1,004  

Shinghwa Advanced Material Group Co. Ltd., Class A, A

   Chemicals     100          1,194  

Shui On Land Ltd.

   Real Estate Management & Development     18,000          2,178  

aSiasun Robot & Automation Co. Ltd., Class A

   Machinery     400          695  

Sichuan Chuantou Energy Co. Ltd., Class A

   Independent Power Producers & Energy Traders     1,400          2,695  

Sichuan Hebang Biotechnology Co. Ltd., Class A

   Chemicals     3,500          1,524  

Sichuan Kelun Pharmaceutical Co. Ltd., Class A

   Pharmaceuticals     400          1,655  

aSichuan New Energy Power Co. Ltd.

   Trading Companies & Distributors     400          927  

Sichuan Road & Bridge Group Co. Ltd., Class A

   Construction & Engineering     1,800          3,617  

Sichuan Swellfun Co. Ltd., Class A

   Beverages     200          2,194  

Sichuan Yahua Industrial Group Co. Ltd., Class A, A

   Chemicals     400          1,233  

Sieyuan Electric Co. Ltd., Class A

   Electrical Equipment     400          2,663  

Silergy Corp.

   Semiconductors & Semiconductor Equipment     1,610          25,355  

Sinoma International Engineering Co., Class A

   Construction & Engineering     700          1,140  

Sinoma Science & Technology Co. Ltd., Class A

   Chemicals     700          2,460  

Sino-Ocean Group Holding Ltd.

   Real Estate Management & Development     14,000          1,587  

Sinopec Engineering Group Co. Ltd., Class H

   Construction & Engineering     7,500          3,726  

aSinopec Oilfield Service Corp., Class A

   Energy Equipment & Services     1,100          336  

aSinopec Oilfield Service Corp., Class H

   Energy Equipment & Services     14,000          1,070  

Sinopec Shanghai Petrochemical Co. Ltd., Class A

   Chemicals     1,400          687  

Sinopec Shanghai Petrochemical Co. Ltd., Class H

   Chemicals     18,000          3,141  

Sinopharm Group Co. Ltd., Class H

   Health Care Providers & Services     6,400          19,363  

Sinotrans Ltd., Class A

   Air Freight & Logistics     1,800          1,090  

Sinotrans Ltd., Class H

   Air Freight & Logistics     11,000          3,405  

Sinotruk Hong Kong Ltd.

   Machinery     3,500          5,440  

SITC International Holdings Co. Ltd.

   Marine Transportation     6,000          12,887  

aSkshu Paint Co. Ltd., Class A

   Chemicals     100          1,695  

Skyworth Digital Co. Ltd., Class A, A

   Communications Equipment     400          1,104  

bSmoore International Holdings Ltd.

   Tobacco     8,750          11,236  

Songcheng Performance Development Co. Ltd., Class A

   Hotels, Restaurants & Leisure     1,100          2,606  

SooChow Securities Co. Ltd., Class A

   Capital Markets     1,886          1,898  

Southwest Securities Co. Ltd., Class A

   Capital Markets     2,500          1,416  

StarPower Semiconductor Ltd., Class A, A

   Semiconductors & Semiconductor Equipment     100          3,998  

 

           
franklintempleton.com  

Annual Report

             153


FRANKLIN TEMPLETON ETF TRUST

SCHEDULE OF INVESTMENTS

 

Franklin FTSE Asia ex Japan ETF (continued)

 

      Industry       Shares                Value  

Common Stocks (continued)

         

China (continued)

         

aSTO Express Co. Ltd., Class A

   Air Freight & Logistics     400        $ 648  

Sun Art Retail Group Ltd.

   Consumer Staples Distribution & Retail     9,000          3,611  

aSunac China Holdings Ltd.

   Real Estate Management & Development     18,000          3,578  

bSunac Services Holdings Ltd.

   Real Estate Management & Development     4,000          1,707  

Sungrow Power Supply Co. Ltd., Class A

   Electrical Equipment     500          7,635  

Suning Universal Co. Ltd., Class A

   Real Estate Management & Development     1,800          805  

Sunny Optical Technology Group Co. Ltd.

   Electronic Equipment, Instruments & Components     3,100          37,496  

Sunwoda Electronic Co. Ltd., Class A

   Electrical Equipment     700          2,055  

Suofeiya Home Collection Co. Ltd., Class A

   Household Durables     400          1,136  

Suzhou Anjie Technology Co. Ltd., Class A, A

   Electrical Equipment     400          873  

Suzhou Dongshan Precision Manufacturing Co. Ltd., Class A

   Electronic Equipment, Instruments & Components     700          3,083  

aSuzhou Gold Mantis Construction Decoration Co. Ltd., Class A

   Construction & Engineering     700          534  

Suzhou Maxwell Technologies Co. Ltd., Class A

   Electrical Equipment     100          4,441  

Taiji Computer Corp. Ltd., Class A

   IT Services     200          1,228  

aTAL Education Group, ADR

   Diversified Consumer Services     2,191          14,044  

Tangshan Jidong Cement Co. Ltd., Class A

   Construction Materials     1,100          1,390  

TangShan Port Group Co. Ltd., Class A

   Transportation Infrastructure     1,400          632  

Tangshan Sanyou Chemical Industries Co. Ltd., Class A

   Chemicals     700          672  

TBEA Co. Ltd., Class A

   Electrical Equipment     1,400          4,426  

TCL Technology Group Corp., Class A

   Household Durables     4,600          2,967  

TCL Zhonghuan Renewable Energy Technology Co. Ltd., Class A

   Semiconductors & Semiconductor Equipment     1,100          7,762  

Tencent Holdings Ltd.

   Interactive Media & Services     28,800          1,415,428  

aTencent Music Entertainment Group, ADR

   Entertainment     2,933          24,285  

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

   Insurance     41,000          13,684  

Thunder Software Technology Co. Ltd., Class A

   Software     200          3,156  

Tian Di Science & Technology Co. Ltd., Class A

   Machinery     1,400          1,036  

Tianjin Chase Sun Pharmaceutical Co. Ltd., Class A

   Pharmaceuticals     1,100          956  

Tianma Microelectronics Co. Ltd., Class A

   Electronic Equipment, Instruments & Components     800          1,224  

aTianqi Lithium Corp., Class A

   Chemicals     500          5,499  

aTianqi Lithium Corp., Class H

   Chemicals     400          2,693  

Tianshan Aluminum Group Co. Ltd., Class A

   Machinery     700          774  

Tianshui Huatian Technology Co. Ltd., Class A

   Semiconductors & Semiconductor Equipment     1,100          1,618  

aTibet Summit Resources Co. Ltd., Class A, A

   Metals & Mining     400          1,333  

Tingyi Cayman Islands Holding Corp.

   Food Products     8,000          13,330  

Titan Wind Energy Suzhou Co. Ltd., Class A, A

   Electrical Equipment     700          1,505  

aTongcheng Travel Holdings Ltd.

   Hotels, Restaurants & Leisure     4,400          9,574  

aTongFu Microelectronics Co. Ltd., Class A

   Semiconductors & Semiconductor Equipment     400          1,293  

Tongkun Group Co. Ltd., Class A

   Chemicals     700          1,464  

Tongling Nonferrous Metals Group Co. Ltd., Class A

   Metals & Mining     3,900          1,829  

Tongwei Co. Ltd., Class A

   Food Products     1,600          9,066  

aTopchoice Medical Corp., Class A

   Health Care Providers & Services     100          1,883  

Topsec Technologies Group, Inc., Class A

   Electrical Equipment     400          714  

bTopsports International Holdings Ltd.

   Specialty Retail     9,000          8,232  

Towngas Smart Energy Co. Ltd.

   Gas Utilities     6,000          2,599  

TravelSky Technology Ltd., Class H

   IT Services     4,000          7,470  

Trina Solar Co. Ltd., Class A, A

   Semiconductors & Semiconductor Equipment     739          5,605  

aTrip.com Group Ltd.

   Hotels, Restaurants & Leisure     2,550          95,439  

Tsingtao Brewery Co. Ltd., Class A

   Beverages     300          5,268  

Tsingtao Brewery Co. Ltd., Class H

   Beverages     2,849          31,103  

aTuya, Inc., ADR    

   Software     588          1,111  

 

           
154             

Annual Report

  franklintempleton.com


FRANKLIN TEMPLETON ETF TRUST

SCHEDULE OF INVESTMENTS

 

Franklin FTSE Asia ex Japan ETF (continued)

 

      Industry       Shares                Value  

Common Stocks (continued)

         

China (continued)

         

Unigroup Guoxin Microelectronics Co. Ltd., Class A

   Electronic Equipment, Instruments & Components     319        $ 5,162  

Uni-President China Holdings Ltd.

   Food Products     6,000          6,054  

Unisplendour Corp. Ltd., Class A

   Electronic Equipment, Instruments & Components     560          2,388  

Universal Scientific Industrial Shanghai Co. Ltd., Class A

   Electronic Equipment, Instruments & Components     400          1,030  

Valiant Co. Ltd., Class A

   Chemicals     400          1,004  

aVipshop Holdings Ltd., ADR

   Broadline Retail     1,883          28,584  

Visual China Group Co. Ltd., Class A, A

   Interactive Media & Services     400          972  

Walvax Biotechnology Co. Ltd., Class A

   Biotechnology     700          3,516  

Wangsu Science & Technology Co. Ltd., Class A

   .IT Services     700          733  

Wanhua Chemical Group Co. Ltd., Class A

   Chemicals     1,100          15,358  

Want Want China Holdings Ltd.

   Food Products     21,000          13,510  

Wanxiang Qianchao Co. Ltd., Class A

   Automobile Components     1,400          1,070  

aWeibo Corp., ADR

   Interactive Media & Services     350          7,021  

Weichai Power Co. Ltd., Class A

   Machinery     2,500          4,591  

Weichai Power Co. Ltd., Class H

   Machinery     10,000          16,051  

Weifu High-Technology Group Co. Ltd., Class A

   Automobile Components     400          1,176  

Weifu High-Technology Group Co. Ltd., Class B

   Automobile Components     700          1,293  

Weihai Guangwei Composites Co. Ltd., Class A

   Chemicals     200          1,487  

Wens Foodstuffs Group Co. Ltd., Class A

   Food Products     700          2,087  

Western Mining Co. Ltd., Class A, A

   Metals & Mining     700          1,291  

Western Securities Co. Ltd., Class A

   Capital Markets     1,800          1,670  

Western Superconducting Technologies Co. Ltd., Class A

   Metals & Mining     119          1,413  

Will Semiconductor Co. Ltd. Shanghai, Class A

   Semiconductors & Semiconductor Equipment     200          2,653  

Wingtech Technology Co. Ltd., Class A

   Electronic Equipment, Instruments & Components     500          4,023  

Winning Health Technology Group Co. Ltd., Class A

   Health Care Technology     700          1,414  

Wolong Electric Group Co. Ltd., Class A

   Electrical Equipment     400          736  

Wuchan Zhongda Group Co. Ltd., Class A

   Distributors     1,800          1,271  

Wuhan Guide Infrared Co. Ltd., Class A

   Electronic Equipment, Instruments & Components     1,042          1,834  

Wuliangye Yibin Co. Ltd., Class A

   Beverages     1,300          37,293  

WUS Printed Circuit Kunshan Co. Ltd., Class A

   Electronic Equipment, Instruments & Components     700          2,191  

WuXi AppTec Co. Ltd., Class A

   Life Sciences Tools & Services     900          10,419  

bWuXi AppTec Co. Ltd., Class H

   Life Sciences Tools & Services     1,500          15,707  

a,bWuxi Biologics Cayman, Inc.

   Life Sciences Tools & Services     17,000          105,249  

Wuxi Shangji Automation Co. Ltd., Class A

   Machinery     140          2,082  

XCMG Construction Machinery Co. Ltd., Class A

   .Machinery     2,500          2,523  

Xiamen C & D, Inc., Class A

   Trading Companies & Distributors     1,100          1,933  

Xiamen Faratronic Co. Ltd., Class A, A

   Electronic Equipment, Instruments & Components     100          2,126  

Xiamen ITG Group Corp. Ltd., Class A

   Trading Companies & Distributors     700          879  

Xiamen Tungsten Co. Ltd., Class A

   Metals & Mining     500          1,484  

Xiangcai Co. Ltd., Class A

   Real Estate Management & Development     700          971  

a,bXiaomi Corp., Class B

   Technology Hardware, Storage & Peripherals     71,400          110,057  

Xinhua Winshare Publishing & Media Co. Ltd., Class H

   Distributors     2,000          1,572  

Xinjiang Goldwind Science & Technology Co. Ltd., Class A

   Electrical Equipment     1,100          1,768  

Xinjiang Goldwind Science & Technology Co. Ltd., Class H

   Electrical Equipment     3,600          3,077  

Xinjiang Tianshan Cement Co. Ltd., Class A, A

   Construction Materials     700          903  

Xinjiang Zhongtai Chemical Co. Ltd., Class A

   Chemicals     1,100          1,161  

Xinxing Ductile Iron Pipes Co. Ltd., Class A

   Metals & Mining     1,800          1,056  

Xinyangfeng Agricultural Technology Co. Ltd., Class A

   Chemicals     400          626  

Xinyi Solar Holdings Ltd.

   Semiconductors & Semiconductor Equipment     21,000          25,173  

 

           
franklintempleton.com  

Annual Report

             155


FRANKLIN TEMPLETON ETF TRUST

SCHEDULE OF INVESTMENTS

 

Franklin FTSE Asia ex Japan ETF (continued)

 

      Industry       Shares                Value  

Common Stocks (continued)

         

China (continued)

         

aXPeng, Inc., Class A

   Automobiles     4,900        $ 27,309  

Xtep International Holdings Ltd.

   Textiles, Apparel & Luxury Goods     5,500          6,992  

Xuji Electric Co. Ltd., Class A

   Electrical Equipment     400          1,363  

bYadea Group Holdings Ltd.

   Automobiles     4,700          12,124  

aYango Group Co. Ltd., Class A

   Real Estate Management & Development     2,100          502  

bYangtze Optical Fibre & Cable Joint Stock Ltd. Co., Class H

   Communications Equipment     1,000          2,059  

Yangzhou Yangjie Electronic Technology Co. Ltd., Class A

   Semiconductors & Semiconductor Equipment     200          1,602  

Yangzijiang Shipbuilding Holdings Ltd.

   Machinery     12,600          11,372  

Yankuang Energy Group Co. Ltd., Class A

   Oil, Gas & Consumable Fuels     500          2,590  

Yankuang Energy Group Co. Ltd., Class H

   Oil, Gas & Consumable Fuels     10,000          35,796  

Yantai Changyu Pioneer Wine Co. Ltd., Class B

   Beverages     1,100          1,647  

Yantai Eddie Precision Machinery Co. Ltd., Class A

   Machinery     440          1,159  

Yantai Jereh Oilfield Services Group Co. Ltd., Class A

   Energy Equipment & Services     400          1,650  

aYatsen Holding Ltd., ADR

   Personal Products     1,281          1,896  

Yealink Network Technology Corp. Ltd., Class A

   Communications Equipment     300          3,321  

aYifan Pharmaceutical Co. Ltd., Class A

   Pharmaceuticals     400          818  

Yifeng Pharmacy Chain Co. Ltd., Class A

   Consumer Staples Distribution & Retail     260          2,189  

Yihai International Holding Ltd.

   Food Products     2,300          6,754  

Yihai Kerry Arawana Holdings Co. Ltd., Class A

   Food Products     700          4,393  

Yintai Gold Co. Ltd., Class A

   Metals & Mining     700          1,342  

Yixintang Pharmaceutical Group Co. Ltd., Class A

   Consumer Staples Distribution & Retail     200          1,032  

YongXing Special Materials Technology Co. Ltd., Class A

   Metals & Mining     100          1,222  

Yonyou Network Technology Co. Ltd., Class A

   Software     1,280          4,688  

Youngor Group Co. Ltd., Class A

   Real Estate Management & Development     1,800          1,709  

YTO Express Group Co. Ltd., Class A

   Air Freight & Logistics     1,100          2,934  

aYuan Longping High-tech Agriculture Co. Ltd., Class A

   Food Products     400          966  

Yuexiu Property Co. Ltd.

   Real Estate Management & Development     7,000          10,558  

Yum China Holdings, Inc.

   Hotels, Restaurants & Leisure     2,000          125,759  

Yunda Holding Co. Ltd., Class A

   Air Freight & Logistics     400          689  

Yunnan Aluminium Co. Ltd., Class A

   Metals & Mining     1,100          2,180  

Yunnan Baiyao Group Co. Ltd., Class A

   Pharmaceuticals     600          4,779  

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

   Personal Products     100          1,867  

Yunnan Copper Co. Ltd., Class A

   Metals & Mining     700          1,314  

Yunnan Energy New Material Co. Ltd., Class A

   Containers & Packaging     300          4,972  

Yunnan Tin Co. Ltd., Class A

   Metals & Mining     600          1,298  

aZai Lab Ltd.

   Biotechnology     4,500          14,933  

Zhangzhou Pientzehuang Pharmaceutical Co. Ltd., Class A

   Pharmaceuticals     200          8,282  

aZhaojin Mining Industry Co. Ltd., Class H

   Metals & Mining     5,500          8,352  

Zhefu Holding Group Co. Ltd., Class A

   Electrical Equipment     2,100          1,245  

aZhejiang Century Huatong Group Co. Ltd., Class A

   Entertainment     2,800          2,455  

Zhejiang China Commodities City Group Co. Ltd., Class A

   Real Estate Management & Development     2,100          1,768  

Zhejiang Chint Electrics Co. Ltd., Class A

   Electrical Equipment     500          2,036  

Zhejiang Crystal-Optech Co. Ltd., Class A

   Electronic Equipment, Instruments & Components     580          1,176  

Zhejiang Dahua Technology Co. Ltd., Class A

   Electronic Equipment, Instruments & Components     1,100          3,622  

Zhejiang Dingli Machinery Co. Ltd., Class A

   Machinery     200          1,596  

Zhejiang Expressway Co. Ltd., Class H

   Transportation Infrastructure     7,000          5,564  

 

           
156             

Annual Report

  franklintempleton.com


FRANKLIN TEMPLETON ETF TRUST

SCHEDULE OF INVESTMENTS

 

Franklin FTSE Asia ex Japan ETF (continued)

 

      Industry       Shares                Value  

Common Stocks (continued)

         

China (continued)

         

Zhejiang Hailiang Co. Ltd., Class A

   Metals & Mining     400        $ 679  

Zhejiang Hisoar Pharmaceutical Co. Ltd., Class A

   Pharmaceuticals     400          411  

Zhejiang Huace Film & Television Co. Ltd., Class A

   Entertainment     400          462  

Zhejiang Huahai Pharmaceutical Co. Ltd., Class A

   Pharmaceuticals     400          1,175  

Zhejiang Huayou Cobalt Co. Ltd., Class A

   Metals & Mining     400          3,204  

Zhejiang Jingsheng Mechanical & Electrical Co. Ltd., Class A

   Semiconductors & Semiconductor Equipment     500          4,754  

Zhejiang Jiuzhou Pharmaceutical Co. Ltd., Class A

   Pharmaceuticals     400          1,938  

Zhejiang Juhua Co. Ltd., Class A

   Chemicals     1,100          2,832  

Zhejiang Medicine Co. Ltd., Class A

   Pharmaceuticals     400          719  

Zhejiang NHU Co. Ltd., Class A

   Pharmaceuticals     1,244          3,252  

Zhejiang Runtu Co. Ltd., Class A

   Chemicals     400          451  

Zhejiang Sanhua Intelligent Controls Co. Ltd., Class A

   Machinery     400          1,500  

Zhejiang Semir Garment Co. Ltd., Class A

   Textiles, Apparel & Luxury Goods     400          351  

Zhejiang Supcon Technology Co. Ltd., Class A

   Electronic Equipment, Instruments & Components     200          3,024  

Zhejiang Supor Co. Ltd., Class A

   Household Durables     200          1,577  

aZhejiang Wanliyang Co. Ltd., Class A

   Machinery     400          549  

Zhejiang Weiming Environment Protection Co. Ltd., Class A, A

   Commercial Services & Supplies     520          1,381  

Zhejiang Weixing New Building Materials Co. Ltd., Class A

   Building Products     700          2,478  

Zhejiang Wolwo Bio-Pharmaceutical Co. Ltd., Class A

   Pharmaceuticals     200          1,386  

Zhejiang Yongtai Technology Co. Ltd., Class A

   Chemicals     400          1,219  

Zhengzhou Coal Mining Machinery Group Co. Ltd., Class A

   Machinery     700          1,433  

Zheshang Securities Co. Ltd., Class A

   Capital Markets     400          587  

a,bZhongAn Online P&C Insurance Co. Ltd., Class H

   Insurance     3,900          12,296  

Zhongji Innolight Co. Ltd., Class A

   Machinery     400          3,431  

Zhongshan Public Utilities Group Co. Ltd., Class A

   Water Utilities     700          719  

Zhongsheng Group Holdings Ltd.

   Specialty Retail     3,000          14,790  

Zhongtai Securities Co. Ltd., Class A

   Capital Markets     1,100          1,073  

Zhuhai Huafa Properties Co. Ltd., Class A

   Real Estate Management & Development     700          1,099  

Zhuzhou CRRC Times Electric Co. Ltd., Class A, A

   Electrical Equipment     200          1,390  

Zhuzhou CRRC Times Electric Co. Ltd., Class H

   Electrical Equipment     2,700          11,746  

Zhuzhou Hongda Electronics Corp. Ltd., Class A, A

   Electronic Equipment, Instruments & Components     200          1,328  

Zhuzhou Kibing Group Co. Ltd., Class A

   Building Products     700          1,063  

Zijin Mining Group Co. Ltd., Class A

   Metals & Mining     7,400          13,351  

Zijin Mining Group Co. Ltd., Class H

   Metals & Mining     28,000          46,798  

Zoomlion Heavy Industry Science & Technology Co. Ltd., Class A

   Machinery     2,800          2,532  

Zoomlion Heavy Industry Science & Technology Co. Ltd., Class H

   Machinery     7,800          4,124  

ZTE Corp., Class A

   Communications Equipment     1,400          6,638  

ZTE Corp., Class H

   Communications Equipment     4,000          11,720  

ZTO Express Cayman, Inc.

   Air Freight & Logistics     2,100          59,924  
         

 

 

 
            10,619,511  
         

 

 

 

 

           
franklintempleton.com  

Annual Report

             157


FRANKLIN TEMPLETON ETF TRUST

SCHEDULE OF INVESTMENTS

 

Franklin FTSE Asia ex Japan ETF (continued)

 

      Industry       Shares                Value  

Common Stocks (continued)

         

Hong Kong 7.4%

         

AIA Group Ltd.

   Insurance     56,400        $ 593,820  

aAlibaba Health Information Technology Ltd., Class A

   Health Care Technology     24,000          17,366  

aAlibaba Pictures Group Ltd., Class A

   Media     70,000          4,548  

ASMPT Ltd., Class A

   Semiconductors & Semiconductor Equipment     1,400          13,857  

Bank of East Asia Ltd., Class A

   Banks     4,200          5,340  

Beijing Enterprises Water Group Ltd., Class A

   Water Utilities     22,000          5,493  

Bosideng International Holdings Ltd., Class A

   Household Durables     14,000          7,811  

Cafe de Coral Holdings Ltd., Class A

   Hotels, Restaurants & Leisure     2,000          2,650  

aCathay Pacific Airways Ltd., Class A

   Airlines     5,000          4,809  

Champion REIT, Class A

   Diversified REITs     11,000          4,722  

China Everbright Environment Group Ltd., Class B

   Commercial Services & Supplies     19,000          8,157  

China Everbright Ltd., Class A

   Capital Markets     4,000          2,869  

China Gas Holdings Ltd., Class A

   Gas Utilities     14,800          20,852  

China Mengniu Dairy Co. Ltd., Class B

   Food Products     15,000          61,529  

China Power International Development Ltd., Class H

   Independent Power Producers & Energy Traders     21,000          8,347  

China Resources Beer Holdings Co. Ltd., Class A

   Beverages     7,553          60,617  

China Resources Gas Group Ltd., Class A

   Gas Utilities     4,500          16,596  

China Resources Land Ltd., Class H

   Real Estate Management & Development     13,500          61,567  

China State Construction International Holdings Ltd., Class A

   Construction & Engineering     8,000          9,050  

China Traditional Chinese Medicine Holdings Co. Ltd.

   Pharmaceuticals     13,000          6,806  

CK Asset Holdings Ltd.

   Real Estate Management & Development     9,200          55,845  

CK Infrastructure Holdings Ltd., Class A

   Electric Utilities     2,900          15,775  

CLP Holdings Ltd.

   Electric Utilities     7,900          57,061  

COSCO SHIPPING Ports Ltd., Class B

   Transportation Infrastructure     6,000          4,005  

Dah Sing Banking Group Ltd., Class A

   Banks     2,400          1,837  

Dah Sing Financial Holdings Ltd., Class H

   Banks     800          2,053  

DFI Retail Group Holdings Ltd., Class A

   Consumer Staples Distribution & Retail     1,500          4,545  

Far East Horizon Ltd.

   Financial Services     7,000          6,296  

Geely Automobile Holdings Ltd.

   Automobiles     25,000          32,166  

Guangdong Investment Ltd.

   Water Utilities     14,000          14,321  

Guotai Junan International Holdings Ltd.

   Capital Markets     13,000          1,060  

aHaitong International Securities Group Ltd.

   Capital Markets     14,000          1,159  

Hang Lung Group Ltd.

   Real Estate Management & Development     4,000          7,062  

Hang Lung Properties Ltd.

   Real Estate Management & Development     9,000          16,831  

Hang Seng Bank Ltd.

   Banks     3,400          48,380  

Henderson Land Development Co. Ltd.

   Real Estate Management & Development     6,000          20,752  

Hong Kong & China Gas Co. Ltd.

   Gas Utilities     52,000          45,773  

Hong Kong Exchanges & Clearing Ltd.

   Capital Markets     6,100          270,577  

Hongkong Land Holdings Ltd.

   Real Estate Management & Development     4,900          21,511  

Huabao International Holdings Ltd.

   Chemicals     5,000          2,338  

Hutchison Port Holdings Trust

   Transportation Infrastructure     26,300          4,918  

Hutchison Telecommunications Hong Kong Holdings Ltd.

   Diversified Telecommunication Services     6,000          948  

Hysan Development Co. Ltd.

   Real Estate Management & Development     3,000          8,522  

Jardine Matheson Holdings Ltd.

   Industrial Conglomerates     930          45,170  

Johnson Electric Holdings Ltd.

   Electrical Equipment     2,000          2,267  

Kerry Properties Ltd.

   Real Estate Management & Development     3,000          7,662  

Kingboard Laminates Holdings Ltd.

   Electronic Equipment, Instruments & Components     5,500          5,745  

Kunlun Energy Co. Ltd.

   Oil, Gas & Consumable Fuels     18,000          14,079  

Link REIT

   Diversified REITs     12,600          81,058  

Man Wah Holdings Ltd.

   Household Durables     8,000          6,594  

aMelco International Development Ltd.

   Hotels, Restaurants & Leisure     4,000          4,662  

 

           
158             

Annual Report

  franklintempleton.com


FRANKLIN TEMPLETON ETF TRUST

SCHEDULE OF INVESTMENTS

 

Franklin FTSE Asia ex Japan ETF (continued)

 

      Industry       Shares                Value  

Common Stocks (continued)

         

Hong Kong (continued)

         

MTR Corp. Ltd.

   Ground Transportation     7,000        $ 33,752  

New World Development Co. Ltd.

   Real Estate Management & Development     7,000          18,771  

NWS Holdings Ltd.

   Industrial Conglomerates     7,000          6,269  

Orient Overseas International Ltd.

   Marine Transportation     700          13,394  

PCCW Ltd.

   Diversified Telecommunication Services     21,000          10,487  

Power Assets Holdings Ltd.

   Electric Utilities     7,000          37,542  

Shanghai Industrial Holdings Ltd.

   Industrial Conglomerates     3,000          4,013  

Shougang Fushan Resources Group Ltd.

   Metals & Mining     8,000          2,538  

Sino Biopharmaceutical Ltd.

   Pharmaceuticals     49,000          27,465  

Sino Land Co. Ltd.

   Real Estate Management & Development     17,500          23,675  

Sun Hung Kai Properties Ltd.

   Real Estate Management & Development     7,000          98,090  

aSuper Hi International Holding Ltd.

   Hotels, Restaurants & Leisure     520          1,306  

Swire Pacific Ltd., Class A

   Real Estate Management & Development     2,000          15,363  

Swire Pacific Ltd., Class B

   Real Estate Management & Development     5,000          6,185  

Swire Properties Ltd.

   Real Estate Management & Development     4,200          10,808  

Techtronic Industries Co. Ltd.

   Household Durables     6,500          70,258  

aUnited Energy Group Ltd.

   Oil, Gas & Consumable Fuels     36,000          4,265  

Vinda International Holdings Ltd.

   Household Products     1,000          2,418  

Vitasoy International Holdings Ltd.

   Food Products     3,500          6,777  

VTech Holdings Ltd.

   Communications Equipment     800          4,785  

bWH Group Ltd.

   Food Products     38,500          22,953  

Wharf Holdings Ltd.

   Real Estate Management & Development     5,000          11,440  

Wharf Real Estate Investment Co. Ltd.

   Real Estate Management & Development     7,000          40,217  

Xinyi Glass Holdings Ltd.

   Automobile Components     9,625          17,239  

Yue Yuen Industrial Holdings Ltd.

   Textiles, Apparel & Luxury Goods     3,500          4,931  
         

 

 

 
            2,222,719  
         

 

 

 

India 15.8%

         

3M India Ltd.

   Industrial Conglomerates     14          3,912  

Aarti Industries Ltd.

   Chemicals     931          5,870  

ABB India Ltd.

   Electrical Equipment     210          8,599  

ACC Ltd.

   Construction Materials     364          7,384  

Adani Enterprises Ltd.

   Trading Companies & Distributors     1,309          27,881  

aAdani Green Energy Ltd.

   Independent Power Producers & Energy Traders     1,953          20,940  

Adani Ports & Special Economic Zone Ltd.

   Transportation Infrastructure     3,941          30,302  

aAdani Power Ltd.

   Independent Power Producers & Energy Traders     4,809          11,212  

Adani Total Gas Ltd.

   Gas Utilities     1,330          14,043  

aAdani Transmission Ltd.

   Electric Utilities     1,239          14,971  

aAdani Wilmar Ltd.

   Food Products     770          3,803  

aAditya Birla Capital Ltd.

   Financial Services     2,401          4,486  

Alkem Laboratories Ltd.

   Pharmaceuticals     126          5,207  

Ambuja Cements Ltd.

   Construction Materials     3,416          15,194  

APL Apollo Tubes Ltd.

   Metals & Mining     819          12,012  

Apollo Hospitals Enterprise Ltd.

   Health Care Providers & Services     490          25,703  

Ashok Leyland Ltd.

   Machinery     7,070          11,975  

Asian Paints Ltd.

   Chemicals     2,163          72,685  

Astral Ltd.

   Building Products     584          9,501  

bAU Small Finance Bank Ltd.

   Banks     1,568          11,051  

Aurobindo Pharma Ltd.

   Pharmaceuticals     1,316          8,296  

a,bAvenue Supermarts Ltd.

   Consumer Staples Distribution & Retail     707          29,259  

Axis Bank Ltd.

   Banks     11,102          115,974  

Bajaj Auto Ltd.

   Automobiles     343          16,214  

Bajaj Finance Ltd.

   Consumer Finance     1,134          77,503  

Bajaj Finserv Ltd.

   Financial Services     1,820          28,048  

Bajaj Holdings & Investment Ltd.

   Financial Services     126          9,077  

Balkrishna Industries Ltd.

   Automobile Components     392          9,308  

a,bBandhan Bank Ltd.

   Banks     3,997          9,520  

Bank of Baroda

   Banks     5,166          10,614  

 

           
franklintempleton.com  

Annual Report

             159


FRANKLIN TEMPLETON ETF TRUST

SCHEDULE OF INVESTMENTS

 

Franklin FTSE Asia ex Japan ETF (continued)

 

      Industry       Shares                Value  

Common Stocks (continued)

         

India (continued)

         

Bank of India

   Banks     2,401        $ 2,181  

Bata India Ltd.

   Textiles, Apparel & Luxury Goods     308          5,316  

Bayer CropScience Ltd.

   Chemicals     63          3,126  

Berger Paints India Ltd.

   Chemicals     1,204          8,522  

Bharat Electronics Ltd.

   Aerospace & Defense     16,345          19,401  

Bharat Forge Ltd.

   Automobile Components     1,239          11,615  

Bharat Heavy Electricals Ltd.

   Electrical Equipment     4,620          3,938  

Bharat Petroleum Corp. Ltd.

   Oil, Gas & Consumable Fuels     4,550          19,062  

Bharti Airtel Ltd.

   Wireless Telecommunication Services     735          3,280  

Bharti Airtel Ltd.

   Wireless Telecommunication Services     11,088          101,054  

Biocon Ltd.

   Biotechnology     2,205          5,536  

Bosch Ltd.

   Automobile Components     42          9,899  

Britannia Industries Ltd.

   Food Products     560          29,452  

Canara Bank

   Banks     1,862          6,445  

Castrol India Ltd.

   Chemicals     2,464          3,327  

aCG Power & Industrial Solutions Ltd.

   Electrical Equipment     3,458          12,625  

Cholamandalam Investment & Finance Co. Ltd.

   Consumer Finance     2,016          18,675  

Cipla Ltd.

   Pharmaceuticals     2,534          27,766  

Coal India Ltd.

   Oil, Gas & Consumable Fuels     9,387          24,403  

Coforge Ltd.

   IT Services     182          8,447  

Colgate-Palmolive India Ltd.

   Personal Products     651          11,940  

Container Corp. Of India Ltd.

   Ground Transportation     1,155          8,155  

Coromandel International Ltd.

   Chemicals     553          5,916  

Cummins India Ltd.

   Machinery     658          13,048  

Dabur India Ltd.

   Personal Products     2,870          19,029  

Dalmia Bharat Ltd.

   Construction Materials     329          7,879  

Deepak Nitrite Ltd.

   Chemicals     371          8,318  

Divi’s Laboratories Ltd.

   Life Sciences Tools & Services     595          20,441  

Dixon Technologies India Ltd.

   Household Durables     175          6,093  

DLF Ltd.

   Real Estate Management & Development     3,010          13,064  

bDr Lal PathLabs Ltd.

   Health Care Providers & Services     175          3,893  

Dr Reddy’s Laboratories Ltd.

   Pharmaceuticals     581          32,681  

Eicher Motors Ltd.

   Automobiles     693          24,866  

Emami Ltd.

   Personal Products     707          3,085  

Embassy Office Parks REIT

   Diversified REITs     2,674          10,157  

Exide Industries Ltd.

   Automobile Components     2,198          4,759  

Federal Bank Ltd.

   Banks     6,573          10,581  

aFSN E-Commerce Ventures Ltd.

   Specialty Retail     6,489          9,811  

GAIL India Ltd.

   Gas Utilities     13,328          17,053  

bGeneral Insurance Corp. of India

   Insurance     518          842  

GlaxoSmithKline Pharmaceuticals Ltd.

   Pharmaceuticals     203          3,272  

Glenmark Pharmaceuticals Ltd.

   Pharmaceuticals     707          3,998  

aGMR Airports Infrastructure Ltd.

   Construction & Engineering     11,893          5,868  

aGodrej Consumer Products Ltd.

   Personal Products     1,652          19,461  

aGodrej Industries Ltd.

   Chemicals     420          2,064  

aGodrej Properties Ltd.

   Real Estate Management & Development     441          5,533  

Grasim Industries Ltd.

   Construction Materials     1,911          37,965  

Gujarat Fluorochemicals Ltd.

   Chemicals     175          6,431  

Gujarat Gas Ltd.

   Gas Utilities     707          3,954  

Havells India Ltd.

   Electrical Equipment     1,204          17,412  

HCL Technologies Ltd.

   IT Services     5,201          68,681  

bHDFC Asset Management Co. Ltd.

   Capital Markets     280          5,819  

bHDFC Life Insurance Co. Ltd.

   Insurance     4,830          29,339  

Hero MotoCorp Ltd.

   Automobiles     595          16,995  

Hindalco Industries Ltd.

   Metals & Mining     6,958          34,319  

Hindustan Aeronautics Ltd.

   Aerospace & Defense     413          13,725  

Hindustan Petroleum Corp. Ltd.

   Oil, Gas & Consumable Fuels     3,458          9,964  

 

           
160             

Annual Report

  franklintempleton.com


FRANKLIN TEMPLETON ETF TRUST

SCHEDULE OF INVESTMENTS

 

Franklin FTSE Asia ex Japan ETF (continued)

 

      Industry       Shares                Value  

Common Stocks (continued)

         

India (continued)

         

Hindustan Unilever Ltd.

   Household Products     4,249        $ 132,375  

Hindustan Zinc Ltd.

   Metals & Mining     1,204          4,298  

Honeywell Automation India Ltd.

   Electronic Equipment, Instruments & Components     8          3,542  

Housing Development Finance Corp. Ltd.

   Financial Services     8,484          271,040  

ICICI Bank Ltd.

   Banks     7,567          80,773  

bICICI Lombard General Insurance Co. Ltd.

   Insurance     1,183          15,395  

bICICI Prudential Life Insurance Co. Ltd.

   Insurance     1,904          10,094  

aIDFC First Bank Ltd.

   Banks     15,687          10,508  

Indian Bank

   Banks     945          3,318  

Indian Hotels Co. Ltd.

   Hotels, Restaurants & Leisure     4,074          16,079  

Indian Oil Corp. Ltd.

   Oil, Gas & Consumable Fuels     20,321          19,262  

Indian Railway Catering & Tourism Corp. Ltd.

   Commercial Services & Supplies     1,484          10,343  

bIndian Railway Finance Corp. Ltd.

   Financial Services     4,620          1,495  

Indraprastha Gas Ltd.

   Gas Utilities     1,743          9,092  

Indus Towers Ltd.

   Diversified Telecommunication Services     4,361          7,588  

Info Edge India Ltd.

   Interactive Media & Services     371          16,809  

Infosys Ltd.

   IT Services     17,108          297,258  

a,bInterGlobe Aviation Ltd.

   Airlines     588          13,670  

Ipca Laboratories Ltd.

   Pharmaceuticals     693          6,833  

ITC Ltd.

   Tobacco     14,252          66,506  

Jindal Steel & Power Ltd.

   Metals & Mining     1,960          13,027  

JSW Energy Ltd.

   Independent Power Producers & Energy Traders     1,855          5,436  

JSW Steel Ltd.

   Metals & Mining     4,802          40,206  

Jubilant Foodworks Ltd.

   Hotels, Restaurants & Leisure     1,820          9,746  

Kansai Nerolac Paints Ltd.

   Chemicals     672          3,163  

Kotak Mahindra Bank Ltd.

   Banks     476          10,037  

L&T Finance Holdings Ltd.

   Financial Services     4,494          4,487  

bL&T Technology Services Ltd.

   Professional Services     133          5,468  

Larsen & Toubro Ltd.

   Construction & Engineering     3,339          87,929  

bLaurus Labs Ltd.

   Pharmaceuticals     1,806          6,438  

LIC Housing Finance Ltd.

   Financial Services     1,673          6,692  

Linde India Ltd.

   Chemicals     105          5,149  

bLTIMindtree Ltd.

   IT Services     441          25,541  

Lupin Ltd.

   Pharmaceuticals     1,225          9,665  

Macrotech Developers Ltd.

   Real Estate Management & Development     385          4,358  

Mahindra & Mahindra Financial Services Ltd.

   Consumer Finance     3,031          8,544  

Mahindra & Mahindra Ltd.

   Automobiles     4,445          62,671  

aMangalore Refinery & Petrochemicals Ltd.

   Oil, Gas & Consumable Fuels     784          501  

Marico Ltd.

   Personal Products     2,611          15,244  

Maruti Suzuki India Ltd.

   Automobiles     658          66,392  

aMax Financial Services Ltd.

   Insurance     1,225          9,465  

aMax Healthcare Institute Ltd.

   Health Care Providers & Services     3,605          19,349  

Mphasis Ltd.

   IT Services     385          8,413  

MRF Ltd.

   Automobile Components     12          12,272  

Muthoot Finance Ltd.

   Consumer Finance     539          6,427  

Nestle India Ltd.

   Food Products     168          40,281  

NHPC Ltd.

   Independent Power Producers & Energy Traders     11,564          5,657  

bNippon Life India Asset Management Ltd.

   Capital Markets     791          2,022  

NMDC Ltd.

   Metals & Mining     5,726          7,772  

NTPC Ltd.

   Independent Power Producers & Energy Traders     21,826          46,503  

Oberoi Realty Ltd.

   Real Estate Management & Development     420          4,306  

Oil & Natural Gas Corp. Ltd.

   Oil, Gas & Consumable Fuels     17,346          31,882  

Oil India Ltd.

   Oil, Gas & Consumable Fuels     1,708          5,230  

One 97 Communications Ltd.

   IT Services     462          3,580  

Oracle Financial Services Software Ltd.

   Software     119          4,726  

Page Industries Ltd.

   Textiles, Apparel & Luxury Goods     29          13,375  

Patanjali Foods Ltd.

   Food Products     336          3,963  

 

           
franklintempleton.com  

Annual Report

             161


FRANKLIN TEMPLETON ETF TRUST

SCHEDULE OF INVESTMENTS

 

Franklin FTSE Asia ex Japan ETF (continued)

 

      Industry       Shares                Value  

Common Stocks (continued)

         

India (continued)

         

aPB Fintech Ltd.

   Insurance     1,715        $ 13,333  

Persistent Systems Ltd.

   IT Services     245          13,742  

Petronet LNG Ltd.

   Oil, Gas & Consumable Fuels     3,801          10,584  

PI Industries Ltd.

   Chemicals     364          13,421  

Pidilite Industries Ltd.

   Chemicals     742          21,244  

Piramal Enterprises Ltd.

   Pharmaceuticals     630          5,200  

Polycab India Ltd.

   Electrical Equipment     231          8,095  

Power Finance Corp. Ltd.

   Financial Services     5,985          11,051  

Power Grid Corp. of India Ltd.

   Electric Utilities     14,889          40,890  

Punjab National Bank

   Banks     5,607          3,179  

Rajesh Exports Ltd.

   Textiles, Apparel & Luxury Goods     686          5,093  

a,bRBL Bank Ltd.

   Banks     2,380          4,086  

REC Ltd.

   Financial Services     6,363          8,939  

Relaxo Footwears Ltd.

   Textiles, Apparel & Luxury Goods     364          3,769  

Reliance Industries Ltd.

   Oil, Gas & Consumable Fuels     15,673          444,554  

Samvardhana Motherson International Ltd.

   Automobile Components     10,087          8,236  

SBI Cards & Payment Services Ltd.

   Consumer Finance     1,449          13,051  

bSBI Life Insurance Co. Ltd.

   Insurance     2,086          27,949  

Schaeffler India Ltd.

   Machinery     196          6,839  

Shree Cement Ltd.

   Construction Materials     67          21,349  

Shriram Finance Ltd.

   Consumer Finance     1,190          18,236  

Siemens Ltd.

   Industrial Conglomerates     392          15,870  

Solar Industries India Ltd.

   Chemicals     105          4,845  

bSona Blw Precision Forgings Ltd.

   Automobile Components     1,708          8,594  

SRF Ltd.

   Chemicals     686          20,132  

aStar Health & Allied Insurance Co. Ltd.

   Insurance     1,092          6,887  

State Bank of India

   Banks     8,561          54,559  

Steel Authority of India Ltd.

   Metals & Mining     7,049          7,093  

Sun Pharmaceutical Industries Ltd.

   Pharmaceuticals     5,236          62,635  

Sun TV Network Ltd.

   Media     497          2,515  

Supreme Industries Ltd.

   Chemicals     308          9,420  

Tata Communications Ltd.

   Diversified Telecommunication Services     448          6,790  

Tata Consultancy Services Ltd.

   IT Services     4,935          192,512  

Tata Consumer Products Ltd.

   Food Products     3,003          25,902  

Tata Elxsi Ltd.

   Software     168          12,182  

aTata Motors Ltd., Class A

   Automobiles     8,827          45,197  

aTata Motors Ltd., Class A

   Automobiles     1,792          4,552  

Tata Power Co. Ltd.

   Electric Utilities     8,141          18,846  

Tata Steel Ltd.

   Metals & Mining     39,151          49,783  

aTata Teleservices Maharashtra Ltd.

   Diversified Telecommunication Services     2,555          1,724  

Tech Mahindra Ltd.

   IT Services     2,870          38,479  

Titan Co. Ltd.

   Textiles, Apparel & Luxury Goods     2,002          61,264  

Torrent Pharmaceuticals Ltd.

   Pharmaceuticals     469          8,772  

Torrent Power Ltd.

   Electric Utilities     1,036          6,434  

Trent Ltd.

   Broadline Retail     910          15,225  

Tube Investments of India Ltd.

   Automobile Components     490          15,184  

TVS Motor Co. Ltd.

   Automobiles     1,134          14,864  

UltraTech Cement Ltd.

   Construction Materials     546          50,640  

Union Bank of India Ltd.

   Banks     5,621          4,552  

United Breweries Ltd.

   Beverages     266          4,611  

aUnited Spirits Ltd.

   Beverages     1,288          11,853  

UNO Minda Ltd.

   Automobile Components     847          4,957  

UPL Ltd.

   Chemicals     2,625          22,923  

Varun Beverages Ltd.

   Beverages     1,008          17,012  

Vedant Fashions Ltd.

   Textiles, Apparel & Luxury Goods     175          2,426  

Vedanta Ltd.

   Metals & Mining     6,048          20,197  

aVodafone Idea Ltd.

   Wireless Telecommunication Services     20,979          1,481  

 

           
162             

Annual Report

  franklintempleton.com


FRANKLIN TEMPLETON ETF TRUST

SCHEDULE OF INVESTMENTS

 

Franklin FTSE Asia ex Japan ETF (continued)

 

      Industry       Shares                Value  

Common Stocks (continued)

         

India (continued)

         

Voltas Ltd.

   Construction & Engineering     952        $ 9,479  

Whirlpool of India Ltd.

   Household Durables     154          2,464  

Wipro Ltd.

   IT Services     6,041          26,848  

aYes Bank Ltd.

   Banks     95,704          17,526  

Zee Entertainment Enterprises Ltd.

   Media     4,053          10,468  

aZomato Ltd.

   Hotels, Restaurants & Leisure     26,733          16,590  

Zydus Lifesciences Ltd.

   Pharmaceuticals     1,183          7,076  
         

 

 

 
            4,727,423  
         

 

 

 

Indonesia 2.3%

         

Adaro Energy Indonesia Tbk PT, Class B

   Oil, Gas & Consumable Fuels     60,900          11,778  

Astra Agro Lestari Tbk PT, Class H

   Food Products     2,100          1,134  

Astra International Tbk PT, Class H

   Automobiles     95,900          38,374  

Avia Avian Tbk PT

   Chemicals     58,500          2,321  

Bank Central Asia Tbk PT, Class A

   Banks     266,700          155,632  

Bank Danamon Indonesia Tbk PT, Class H

   Banks     4,200          804  

Bank Mandiri Persero Tbk PT, Class A

   Banks     105,700          72,784  

Bank Negara Indonesia Persero Tbk PT, Class H

   Banks     37,100          23,134  

Bank Rakyat Indonesia Persero Tbk PT, Class A

   Banks     330,400          104,224  

Bank Syariah Indonesia Tbk PT

   Banks     16,487          1,847  

Barito Pacific Tbk PT, Class A

   Chemicals     121,232          6,670  

Bukit Asam Tbk PT, Class A

   Oil, Gas & Consumable Fuels     20,300          5,402  

aBumi Serpong Damai Tbk PT, Class A

   Real Estate Management & Development     44,100          2,882  

Charoen Pokphand Indonesia Tbk PT, Class A

   Food Products     36,400          12,114  

Dayamitra Telekomunikasi PT

   Diversified Telecommunication Services     116,900          5,496  

Elang Mahkota Teknologi Tbk PT

   Media     148,400          7,819  

First Pacific Co. Ltd.

   Financial Services     14,000          4,494  

aGoTo Gojek Tokopedia Tbk PT

   Broadline Retail     3,416,000          24,832  

Gudang Garam Tbk PT

   Tobacco     2,100          3,641  

Hanjaya Mandala Sampoerna Tbk PT

   Tobacco     44,100          3,309  

Indah Kiat Pulp & Paper Tbk PT

   Paper & Forest Products     12,600          6,302  

Indocement Tunggal Prakarsa Tbk PT

   Construction Materials     9,100          6,388  

Indofood CBP Sukses Makmur Tbk PT

   Food Products     10,900          7,251  

Indofood Sukses Makmur Tbk PT

   Food Products     21,000          8,683  

Indosat Tbk PT

   Wireless Telecommunication Services     4,900          2,271  

aJasa Marga Persero Tbk PT

   Transportation Infrastructure     11,200          2,405  

Kalbe Farma Tbk PT

   Pharmaceuticals     92,400          12,941  

Mayora Indah Tbk PT

   Food Products     19,600          3,490  

aMedia Nusantara Citra Tbk PT

   Media     21,700          854  

aMerdeka Copper Gold Tbk PT

   Metals & Mining     88,900          24,842  

aMNC Digital Entertainment Tbk PT

   Entertainment     8,100          2,199  

Perusahaan Gas Negara Tbk PT

   Gas Utilities     50,100          4,611  

Sarana Menara Nusantara Tbk PT

   Diversified Telecommunication Services     90,300          5,571  

Semen Indonesia Persero Tbk PT

   Construction Materials     16,454          6,913  

aSmartfren Telecom Tbk PT

   Wireless Telecommunication Services     508,900          2,070  

Sumber Alfaria Trijaya Tbk PT

   Consumer Staples Distribution & Retail     94,500          18,151  

Surya Citra Media Tbk PT

   Media     140,000          1,755  

Telkom Indonesia Persero Tbk PT, Class B

   Diversified Telecommunication Services     223,300          60,462  

Tower Bersama Infrastructure Tbk PT

   Diversified Telecommunication Services     20,300          2,924  

Unilever Indonesia Tbk PT

   Household Products     27,700          8,036  

United Tractors Tbk PT

   Oil, Gas & Consumable Fuels     7,700          14,944  

aVale Indonesia Tbk PT

   Metals & Mining     10,500          4,657  

XL Axiata Tbk PT

   Wireless Telecommunication Services     18,900          2,496  
         

 

 

 
            698,907  
         

 

 

 

Italy 0.1%

         

PRADA SpA

   Textiles, Apparel & Luxury Goods     2,400          17,014  
         

 

 

 

 

 

           
franklintempleton.com  

Annual Report

             163


FRANKLIN TEMPLETON ETF TRUST

SCHEDULE OF INVESTMENTS

 

Franklin FTSE Asia ex Japan ETF (continued)

 

      Industry       Shares                Value  

Common Stocks (continued)

         

Luxembourg 0.0%

         

L’Occitane International SA

   Specialty Retail     2,250        $ 5,618  
         

 

 

 

Macau 0.4%

         

aGalaxy Entertainment Group Ltd.

   Hotels, Restaurants & Leisure     10,000          66,816  

aMGM China Holdings Ltd.

   Hotels, Restaurants & Leisure     4,400          5,437  

aSands China Ltd.

   Hotels, Restaurants & Leisure     11,200          38,951  

aSJM Holdings Ltd.

   Hotels, Restaurants & Leisure     11,500          5,743  

aWynn Macau Ltd.

   Hotels, Restaurants & Leisure     7,600          7,493  
         

 

 

 
            124,440  
         

 

 

 

Malaysia 1.8%

         

Alliance Bank Malaysia Bhd, Class A

   Banks     6,000          4,623  

AMMB Holdings Bhd

   Beverages     10,500          8,924  

Astro Malaysia Holdings Bhd, Class A

   Media     6,000          945  

Axiata Group Bhd, Class A

   Wireless Telecommunication Services     22,800          15,553  

British American Tobacco Malaysia Bhd, Class A

   Tobacco     700          1,723  

CELCOMDIGI BHD

   Wireless Telecommunication Services     18,200          17,901  

CIMB Group Holdings Bhd, Class A

   Banks     31,200          37,546  

Dialog Group Bhd, Class A

   Energy Equipment & Services     20,300          10,857  

FGV Holdings Bhd

   Food Products     3,200          1,073  

Fraser & Neave Holdings Bhd

   Beverages     600          3,535  

Gamuda Bhd

   Construction & Engineering     10,900          10,079  

Genting Bhd

   Hotels, Restaurants & Leisure     11,200          11,828  

Genting Malaysia Bhd

   Hotels, Restaurants & Leisure     14,000          8,408  

Hartalega Holdings Bhd

   Health Care Equipment & Supplies     7,900          3,402  

Hong Leong Bank Bhd

   Banks     3,200          14,664  

Hong Leong Financial Group Bhd

   Banks     1,100          4,482  

IHH Healthcare Bhd

   Health Care Providers & Services     14,000          18,244  

IJM Corp. Bhd

   Construction & Engineering     15,400          5,584  

IOI Corp. Bhd

   Food Products     13,300          11,484  

Kuala Lumpur Kepong Bhd

   Food Products     2,100          9,890  

Malayan Banking Bhd

   Banks     34,300          66,618  

aMalaysia Airports Holdings Bhd

   Transportation Infrastructure     4,550          7,002  

Maxis Bhd

   Wireless Telecommunication Services     10,200          9,547  

MISC Bhd

   Marine Transportation     8,800          14,399  

bMR DIY Group M Bhd

   Specialty Retail     11,100          3,899  

Nestle Malaysia Bhd

   Food Products     270          8,389  

Petronas Chemicals Group Bhd

   Chemicals     14,000          22,432  

Petronas Dagangan Bhd

   Oil, Gas & Consumable Fuels     1,400          6,771  

Petronas Gas Bhd

   Gas Utilities     2,900          10,831  

PPB Group Bhd

   Food Products     2,800          10,508  

Press Metal Aluminium Holdings Bhd

   Metals & Mining     17,500          19,314  

Public Bank Bhd

   Banks     68,600          62,187  

QL Resources Bhd

   Food Products     5,700          7,505  

RHB Bank Bhd

   Banks     8,100          10,243  

Sime Darby Bhd

   Industrial Conglomerates     17,700          8,624  

Sime Darby Plantation Bhd

   Food Products     17,900          17,322  

Telekom Malaysia Bhd

   Diversified Telecommunication Services     4,200          4,664  

Tenaga Nasional Bhd

   Electric Utilities     14,700          30,749  

aTop Glove Corp. Bhd

   Health Care Equipment & Supplies     26,300          5,603  

Westports Holdings Bhd

   Transportation Infrastructure     3,500          2,856  

YTL Corp. Bhd

   Multi-Utilities     20,713          2,887  
         

 

 

 
            533,095  
         

 

 

 

Pakistan 0.0%

         

Oil & Gas Development Co. Ltd.

   Oil, Gas & Consumable Fuels     3,500          1,028  

Pakistan Petroleum Ltd.

   Oil, Gas & Consumable Fuels     3,507          790  
         

 

 

 
            1,818  
         

 

 

 

 

           
164             

Annual Report

  franklintempleton.com


FRANKLIN TEMPLETON ETF TRUST

SCHEDULE OF INVESTMENTS

 

Franklin FTSE Asia ex Japan ETF (continued)

 

      Industry       Shares                Value  

Common Stocks (continued)

         

Philippines 0.9%

         

Aboitiz Power Corp., Class A

   Independent Power Producers & Energy Traders     8,100        $ 5,543  

ACEN Corp.

   Independent Power Producers & Energy Traders     32,940          3,708  

Alliance Global Group, Inc., Class A

   Industrial Conglomerates     19,300          4,388  

Ayala Corp., Class A

   Financial Services     1,400          16,739  

Ayala Land, Inc., Class A

   Real Estate Management & Development     35,700          17,402  

Bank of the Philippine Islands, Class A

   Banks     9,686          18,262  

BDO Unibank, Inc., Class A

   Banks     11,844          27,995  

aBloomberry Resorts Corp., Class H

   Hotels, Restaurants & Leisure     15,100          2,722  

aConverge Information & Communications Technology Solutions, Inc.

   Diversified Telecommunication Services     10,200          2,402  

DMCI Holdings, Inc., Class A

   Industrial Conglomerates     17,900          3,786  

aEmperador, Inc.

   Beverages     11,900          4,575  

Globe Telecom, Inc.

   Wireless Telecommunication Services     152          5,212  

GT Capital Holdings, Inc.

   Financial Services     530          5,030  

International Container Terminal Services, Inc.

   Transportation Infrastructure     4,970          19,509  

JG Summit Holdings, Inc.

   Industrial Conglomerates     15,060          13,269  

Jollibee Foods Corp.

   Hotels, Restaurants & Leisure     2,140          8,817  

LT Group, Inc.

   Industrial Conglomerates     15,800          2,877  

Manila Electric Co.

   Electric Utilities     1,330          7,608  

Megaworld Corp.

   Real Estate Management & Development     63,000          2,318  

Metro Pacific Investments Corp.

   Financial Services     35,000          2,369  

Metropolitan Bank & Trust Co.

   Banks     8,980          9,663  

bMonde Nissin Corp.

   Food Products     36,400          6,568  

PLDT, Inc.

   Wireless Telecommunication Services     385          10,056  

Puregold Price Club, Inc.

   Consumer Staples Distribution & Retail     5,360          3,086  

San Miguel Corp.

   Industrial Conglomerates     1,910          3,759  

Semirara Mining & Power Corp.

   Oil, Gas & Consumable Fuels     5,600          3,332  

SM Prime Holdings, Inc.

   Real Estate Management & Development     52,500          31,675  

Universal Robina Corp.

   Food Products     3,640          9,642  
         

 

 

 
            252,312  
         

 

 

 

Singapore 3.6%

         

bBOC Aviation Ltd., Class A

   Trading Companies & Distributors     700          5,408  

CapitaLand Ascendas REIT, Class A

   Diversified REITs     16,100          34,633  

CapitaLand Ascott Trust, Class A

   Diversified REITs     9,100          6,810  

CapitaLand Integrated Commercial Trust, Class A

   Diversified REITs     23,800          35,444  

Capitaland Investment Ltd.

   Real Estate Management & Development     12,600          34,875  

City Developments Ltd., Class H

   Real Estate Management & Development     2,100          11,641  

ComfortDelGro Corp. Ltd., Class H

   Ground Transportation     10,200          9,053  

DBS Group Holdings Ltd., Class A

   Banks     8,700          215,938  

Frasers Logistics & Commercial Trust

   Diversified REITs     14,000          13,794  

Genting Singapore Ltd.

   Hotels, Restaurants & Leisure     28,700          24,177  

Jardine Cycle & Carriage Ltd.

   Distributors     400          9,411  

Keppel Corp. Ltd.

   Industrial Conglomerates     6,300          26,677  

Keppel DC REIT

   Diversified REITs     6,300          9,761  

Keppel REIT

   Diversified REITs     8,400          5,591  

Mapletree Industrial Trust

   Diversified REITs     9,500          16,934  

Mapletree Logistics Trust

   Diversified REITs     16,100          20,707  

Mapletree Pan Asia Commercial Trust

   Diversified REITs     10,900          14,757  

NETLINK NBN TRUST

   Diversified Telecommunication Services     14,000          9,056  

Olam Group Ltd.

   Consumer Staples Distribution & Retail     4,000          4,723  

Oversea-Chinese Banking Corp. Ltd.

   Banks     16,800          156,306  

aSATS Ltd.

   Transportation Infrastructure     4,365          9,160  

Sembcorp Industries Ltd.

   Industrial Conglomerates     4,600          15,154  

aSembcorp Marine Ltd.

   Machinery     179,035          16,024  

aSIA Engineering Co. Ltd.

   Transportation Infrastructure     1,100          1,862  

Singapore Airlines Ltd.

   Airlines     6,300          27,151  

Singapore Exchange Ltd.

   Capital Markets     3,850          27,220  

 

           
franklintempleton.com  

Annual Report

             165


FRANKLIN TEMPLETON ETF TRUST

SCHEDULE OF INVESTMENTS

 

Franklin FTSE Asia ex Japan ETF (continued)

 

      Industry       Shares                Value  

Common Stocks (continued)

         

Singapore (continued)

         

Singapore Post Ltd.

   Air Freight & Logistics     7,700        $ 2,896  

Singapore Technologies Engineering Ltd.

   Aerospace & Defense     7,600          20,921  

Singapore Telecommunications Ltd.

   Diversified Telecommunication Services     36,400          67,349  

StarHub Ltd.

   Wireless Telecommunication Services     2,800          2,190  

Suntec Real Estate Investment Trust

   Diversified REITs     10,500          11,293  

United Overseas Bank Ltd.

   Banks     6,200          138,778  

UOL Group Ltd.

   Real Estate Management & Development     2,100          10,946  

Venture Corp. Ltd.

   Electronic Equipment, Instruments & Components     1,313          17,450  

Wilmar International Ltd.

   Food Products     10,500          33,248  

aYangzijiang Financial Holding Ltd.

   Capital Markets     12,600          3,554  

Yanlord Land Group Ltd.

   Real Estate Management & Development     2,800          1,916  
         

 

 

 
            1,072,808  
         

 

 

 

South Korea 12.4%

         

aAlteogen, Inc., Class A

   Biotechnology     168          5,117  

Amorepacific Corp., Class H

   Personal Products     140          14,711  

AMOREPACIFIC Group, Class A

   Personal Products     147          4,347  

BGF retail Co. Ltd.

   Consumer Staples Distribution & Retail     28          3,908  

BNK Financial Group, Inc., Class H

   Banks     1,477          7,386  

Celltrion Healthcare Co. Ltd., Class A

   Health Care Providers & Services     491          22,705  

aCelltrion Pharm, Inc., Class A

   Pharmaceuticals     100          6,368  

Celltrion, Inc., Class A

   Biotechnology     535          61,561  

Cheil Worldwide, Inc., Class A

   Media     357          5,106  

aCJ CheilJedang Corp., Class A

   Food Products     35          8,764  

CJ Corp., Class A

   Industrial Conglomerates     63          5,047  

aCJ ENM Co. Ltd., Class A

   Entertainment     49          3,233  

aCJ Logistics Corp., Class A

   Ground Transportation     42          2,578  

Coway Co. Ltd.

   Household Durables     280          11,292  

aDaewoo Engineering & Construction Co. Ltd., Class A

   Construction & Engineering     854          2,644  

aDaewoo Shipbuilding & Marine Engineering Co. Ltd., Class A

   Machinery     245          4,611  

DB Insurance Co. Ltd., Class A

   Insurance     217          12,485  

DGB Financial Group, Inc., Class A

   Banks     777          4,118  

DL E&C Co. Ltd., Class A

   Construction & Engineering     154          3,827  

DL Holdings Co. Ltd., Class A

   Construction & Engineering     63          2,579  

Dongsuh Cos., Inc., Class A

   Consumer Staples Distribution & Retail     154          2,322  

Doosan Bobcat, Inc., Class A

   Machinery     112          3,760  

aDoosan Enerbility Co. Ltd., Class H

   Electrical Equipment     1,939          25,320  

Ecopro BM Co. Ltd.

   Electrical Equipment     196          33,800  

aE-MART, Inc., Class A

   Consumer Staples Distribution & Retail     98          7,949  

F&F Co. Ltd.

   Textiles, Apparel & Luxury Goods     77          8,251  

Fila Holdings Corp.

   Textiles, Apparel & Luxury Goods     245          6,869  

Green Cross Corp.

   Biotechnology     28          2,626  

GS Engineering & Construction Corp.

   Construction & Engineering     308          4,886  

aGS Holdings Corp.

   Oil, Gas & Consumable Fuels     252          7,820  

GS Retail Co. Ltd.

   Consumer Staples Distribution & Retail     189          4,116  

Hana Financial Group, Inc.

   Banks     1,372          42,893  

aHanjin Kal Corp.

   Airlines     105          3,706  

Hankook Tire & Technology Co. Ltd.

   Automobile Components     364          9,730  

aHanmi Pharm Co. Ltd.

   Pharmaceuticals     28          5,506  

aHanmi Science Co. Ltd.

   Pharmaceuticals     84          2,513  

Hanon Systems

   Automobile Components     833          5,618  

Hanwha Aerospace Co. Ltd.

   Aerospace & Defense     168          12,802  

Hanwha Corp.

   Industrial Conglomerates     196          3,952  

Hanwha Corp.

   Industrial Conglomerates     91          978  

Hanwha Galleria Co. Ltd.

   Broadline Retail     568          929  

aHanwha Life Insurance Co. Ltd.

   Insurance     1,435          2,646  

 

           
166             

Annual Report

  franklintempleton.com


FRANKLIN TEMPLETON ETF TRUST

SCHEDULE OF INVESTMENTS

 

Franklin FTSE Asia ex Japan ETF (continued)

 

      Industry       Shares                Value  

Common Stocks (continued)

         

South Korea (continued)

         

aHanwha Solutions Corp.

   Chemicals     503        $ 20,748  

HD Hyundai Co. Ltd.

   Machinery     245          10,934  

aHite Jinro Co. Ltd.

   Beverages     154          2,650  

HL Mando Co. Ltd.

   Automobile Components     161          5,670  

aHLB, Inc.

   Leisure Products     476          12,706  

aHMM Co. Ltd.

   Marine Transportation     1,428          22,322  

Hotel Shilla Co. Ltd.

   Specialty Retail     154          9,641  

aHYBE Co. Ltd.

   Entertainment     91          13,204  

Hyundai Department Store Co. Ltd.

   Broadline Retail     70          2,941  

aHyundai Doosan Infracore Co. Ltd.

   Machinery     651          3,765  

Hyundai Engineering & Construction Co. Ltd.

   Construction & Engineering     357          9,996  

Hyundai Glovis Co. Ltd.

   Air Freight & Logistics     91          11,079  

aHyundai Heavy Industries Co. Ltd.

   Machinery     70          5,377  

Hyundai Marine & Fire Insurance Co. Ltd.

   Insurance     301          7,815  

aHyundai Mipo Dockyard Co. Ltd.

   Machinery     91          4,907  

Hyundai Mobis Co. Ltd.

   Automobile Components     301          49,941  

Hyundai Motor Co.

   Automobiles     672          95,237  

Hyundai Steel Co.

   Metals & Mining     371          9,889  

Hyundai Wia Corp.

   Automobile Components     84          3,613  

aIndustrial Bank of Korea

   Banks     1,274          9,884  

aKakao Corp.

   Interactive Media & Services     1,449          68,006  

aKakao Games Corp.

   Entertainment     140          4,484  

aKakaoBank Corp.

   Banks     770          14,284  

aKakaopay Corp.

   IT Services     105          4,484  

aKangwon Land, Inc.

   Hotels, Restaurants & Leisure     427          6,527  

KB Financial Group, Inc.

   Banks     1,869          68,409  

KCC Corp.

   Building Products     21          3,581  

aKEPCO Plant Service & Engineering Co. Ltd.

   Commercial Services & Supplies     112          3,252  

Kia Corp.

   Automobiles     1,232          76,654  

aKorea Aerospace Industries Ltd.

   Aerospace & Defense     350          12,743  

aKorea Electric Power Corp.

   Electric Utilities     1,253          17,334  

aKorea Gas Corp.

   Gas Utilities     133          2,769  

aKorea Investment Holdings Co. Ltd.

   Capital Markets     182          7,689  

aKorea Shipbuilding & Offshore Engineering Co. Ltd.

   Machinery     210          12,501  

Korea Zinc Co. Ltd.

   Metals & Mining     42          17,841  

aKorean Air Lines Co. Ltd.

   Airlines     875          15,593  

aKrafton, Inc.

   Entertainment     133          18,747  

aKT&G Corp.

   Tobacco     511          32,932  

aKumho Petrochemical Co. Ltd.

   Chemicals     84          9,272  

L&F Co. Ltd.

   Electronic Equipment, Instruments & Components     112          26,971  

LG Chem Ltd.

   Chemicals     226          123,603  

LG Corp.

   Industrial Conglomerates     434          27,603  

aLG Display Co. Ltd.

   Electronic Equipment, Instruments & Components     1,106          13,958  

LG Electronics, Inc.

   Household Durables     532          47,117  

aLG Energy Solution Ltd.

   Electrical Equipment     161          72,223  

LG H&H Co. Ltd.

   Personal Products     40          18,435  

LG Innotek Co. Ltd.

   Electronic Equipment, Instruments & Components     70          14,545  

LG Uplus Corp.

   Diversified Telecommunication Services     1,050          8,735  

Lotte Chemical Corp.

   Chemicals     84          12,311  

Lotte Chilsung Beverage Co. Ltd.

   Beverages     14          1,773  

Lotte Corp.

   Industrial Conglomerates     133          2,937  

aLotte Energy Materials Corp.

   Electronic Equipment, Instruments & Components     91          4,809  

LOTTE Fine Chemical Co. Ltd.

   Chemicals     84          3,768  

Lotte Shopping Co. Ltd.

   Broadline Retail     56          3,523  

LS Corp.

   Electrical Equipment     84          5,136  

Meritz Financial Group, Inc.

   Financial Services     637          18,887  

 

           
franklintempleton.com  

Annual Report

             167


FRANKLIN TEMPLETON ETF TRUST

SCHEDULE OF INVESTMENTS

 

Franklin FTSE Asia ex Japan ETF (continued)

 

      Industry       Shares                Value  

Common Stocks (continued)

         

South Korea (continued)

         

Mirae Asset Securities Co. Ltd.

   Capital Markets     1,309        $ 6,496  

Mirae Asset Securities Co. Ltd.

   Capital Markets     721          1,966  

NAVER Corp.

   Interactive Media & Services     693          107,529  

NCSoft Corp.

   Entertainment     73          20,832  

a,bNetmarble Corp.

   Software     84          4,278  

aNH Investment & Securities Co. Ltd.

   Capital Markets     644          4,353  

aNHN Corp.

   Software     77          1,556  

NongShim Co. Ltd.

   Food Products     18          5,240  

aOCI Co. Ltd.

   Chemicals     84          6,601  

Orion Corp.

   Food Products     84          8,814  

aOttogi Corp.

   Food Products     7          2,409  

Pan Ocean Co. Ltd.

   Marine Transportation     987          4,405  

aParadise Co. Ltd.

   Hotels, Restaurants & Leisure     238          3,070  

aPearl Abyss Corp.

   Entertainment     147          5,222  

POSCO Chemical Co. Ltd.

   Construction Materials     133          27,839  

POSCO Holdings, Inc.

   Metals & Mining     357          100,915  

Posco International Corp.

   Trading Companies & Distributors     259          4,437  

S-1 Corp.

   Commercial Services & Supplies     91          3,866  

a,bSamsung Biologics Co. Ltd.

   Life Sciences Tools & Services     87          52,660  

Samsung C&T Corp.

   Industrial Conglomerates     392          32,580  

Samsung Card Co. Ltd.

   Consumer Finance     154          3,596  

Samsung Electro-Mechanics Co. Ltd.

   Electronic Equipment, Instruments & Components     266          31,200  

Samsung Electronics Co. Ltd.

   Technology Hardware, Storage & Peripherals     22,680          1,114,967  

aSamsung Engineering Co. Ltd.

   Construction & Engineering     665          16,193  

Samsung Fire & Marine Insurance Co. Ltd.

   Insurance     154          24,368  

aSamsung Heavy Industries Co. Ltd.

   Machinery     2,989          11,870  

Samsung Life Insurance Co. Ltd.

   Insurance     322          15,533  

Samsung SDI Co. Ltd.

   Electronic Equipment, Instruments & Components     253          142,839  

Samsung SDS Co. Ltd.

   IT Services     175          15,593  

Samsung Securities Co. Ltd.

   Capital Markets     322          7,841  

SD Biosensor, Inc.

   Health Care Equipment & Supplies     168          2,723  

aSeegene, Inc.

   Biotechnology     147          2,800  

aShin Poong Pharmaceutical Co. Ltd.

   Pharmaceuticals     168          2,324  

Shinhan Financial Group Co. Ltd.

   Banks     2,401          65,196  

aShinsegae, Inc.

   Broadline Retail     35          5,794  

aSK Biopharmaceuticals Co. Ltd.

   Pharmaceuticals     126          6,127  

aSK Bioscience Co. Ltd.

   Biotechnology     98          5,428  

SK Chemicals Co. Ltd.

   Chemicals     35          2,003  

SK Hynix, Inc.

   Semiconductors & Semiconductor Equipment     2,604          177,220  

a,bSK IE Technology Co. Ltd.

   Chemicals     126          6,891  

aSK Innovation Co. Ltd.

   Oil, Gas & Consumable Fuels     252          34,707  

SK Networks Co. Ltd.

   Trading Companies & Distributors     728          2,519  

aSK Square Co. Ltd.

   Semiconductors & Semiconductor Equipment     420          12,824  

SK Telecom Co. Ltd.

   Wireless Telecommunication Services     112          4,155  

SK, Inc.

   Industrial Conglomerates     175          23,188  

SKC Co. Ltd.

   Chemicals     91          7,990  

S-Oil Corp.

   Oil, Gas & Consumable Fuels     203          12,490  

Solus Advanced Materials Co. Ltd.

   Electronic Equipment, Instruments & Components     70          2,527  

SSANGYONG C&E Co. Ltd.

   Construction Materials     574          2,720  

aWemade Co. Ltd.

   Entertainment     84          3,239  

Woori Financial Group, Inc.

   Banks     3,024          26,504  

Yuhan Corp.

   Pharmaceuticals     252          9,795  
         

 

 

 
            3,715,366  
         

 

 

 

Taiwan 16.4%

         

Accton Technology Corp.

   Communications Equipment     2,630          27,555  

Acer, Inc., Class H

   Technology Hardware, Storage & Peripherals     14,000          12,944  

Advanced Energy Solution Holding Co. Ltd.

   Electrical Equipment     110          2,594  

 

           
168             

Annual Report

  franklintempleton.com


FRANKLIN TEMPLETON ETF TRUST

SCHEDULE OF INVESTMENTS

 

Franklin FTSE Asia ex Japan ETF (continued)

 

      Industry       Shares                Value  

Common Stocks (continued)

         

Taiwan (continued)

         

Advantech Co. Ltd.

   Technology Hardware, Storage & Peripherals     1,750        $ 21,324  

ASE Technology Holding Co. Ltd., Class A

   Semiconductors & Semiconductor Equipment     16,700          61,705  

Asia Cement Corp.

   Construction Materials     11,000          15,643  

ASMedia Technology, Inc.

   Semiconductors & Semiconductor Equipment     180          6,769  

ASPEED Technology, Inc.

   Semiconductors & Semiconductor Equipment     156          13,501  

Asustek Computer, Inc.

   Technology Hardware, Storage & Peripherals     3,500          31,324  

AUO Corp., Class H

   Electronic Equipment, Instruments & Components     35,000          21,151  

Capital Securities Corp., Class A

   Capital Markets     7,000          2,759  

Catcher Technology Co. Ltd.

   Technology Hardware, Storage & Peripherals     3,000          18,721  

Cathay Financial Holding Co. Ltd., Class A

   Insurance     43,001          59,034  

Chailease Holding Co. Ltd., Class A

   Financial Services     6,650          48,814  

Chang Hwa Commercial Bank Ltd., Class A

   Banks     28,000          15,955  

Cheng Shin Rubber Industry Co. Ltd., Class A

   Automobile Components     8,800          10,564  

Chicony Electronics Co. Ltd.

   Technology Hardware, Storage & Peripherals     2,630          8,232  

China Airlines Ltd., Class A

   Airlines     14,000          8,966  

China Development Financial Holding Corp., Class A

   Banks     70,000          28,853  

China Motor Corp., Class A

   Automobiles     930          1,952  

China Steel Corp., Class A

   Metals & Mining     59,000          59,877  

Chunghwa Telecom Co. Ltd.

   Diversified Telecommunication Services     18,380          72,138  

Compal Electronics, Inc., Class H

   Technology Hardware, Storage & Peripherals     21,000          17,415  

CTBC Financial Holding Co. Ltd., Class A

   Banks     84,000          60,281  

Delta Electronics, Inc., Class A

   Electronic Equipment, Instruments & Components     10,500          103,802  

E Ink Holdings, Inc.

   Electronic Equipment, Instruments & Components     4,400          26,662  

E.Sun Financial Holding Co. Ltd., Class A

   Banks     65,000          54,011  

Eclat Textile Co. Ltd., Class A

   Textiles, Apparel & Luxury Goods     840          13,656  

eMemory Technology, Inc.

   Semiconductors & Semiconductor Equipment     350          21,381  

ENNOSTAR, Inc., Class H

   Semiconductors & Semiconductor Equipment     2,920          5,102  

Eternal Materials Co. Ltd., Class H

   Chemicals     5,000          5,148  

Eva Airways Corp., Class H

   Airlines     10,000          8,818  

Evergreen Marine Corp. Taiwan Ltd.

   Marine Transportation     4,830          25,143  

Far Eastern International Bank

   Banks     12,770          4,655  

Far Eastern New Century Corp.

   Industrial Conglomerates     19,250          19,789  

Far EasTone Telecommunications Co. Ltd.

   Wireless Telecommunication Services     7,000          17,289  

Feng TAY Enterprise Co. Ltd.

   Textiles, Apparel & Luxury Goods     2,310          14,643  

First Financial Holding Co. Ltd.

   Banks     49,000          42,567  

a,bFIT Hon Teng Ltd.

   Electronic Equipment, Instruments & Components     7,000          1,641  

Formosa Chemicals & Fibre Corp.

   Chemicals     16,700          37,900  

Formosa Petrochemical Corp.

   Oil, Gas & Consumable Fuels     6,130          17,113  

Formosa Plastics Corp.

   Chemicals     18,380          55,416  

Formosa Sumco Technology Corp.

   Semiconductors & Semiconductor Equipment     350          1,908  

Formosa Taffeta Co. Ltd.

   Textiles, Apparel & Luxury Goods     3,000          2,769  

Foxconn Technology Co. Ltd.

   Technology Hardware, Storage & Peripherals     5,250          9,639  

Fubon Financial Holding Co. Ltd.

   Insurance     35,000          64,948  

Genius Electronic Optical Co. Ltd.

   Electronic Equipment, Instruments & Components     460          5,824  

Giant Manufacturing Co. Ltd.

   Leisure Products     1,572          9,087  

Globalwafers Co. Ltd.

   Semiconductors & Semiconductor Equipment     1,050          17,864  

Hiwin Technologies Corp.

   Machinery     1,485          12,218  

Hon Hai Precision Industry Co. Ltd.

   Electronic Equipment, Instruments & Components     58,000          198,111  

Hotai Motor Co. Ltd.

   Specialty Retail     1,580          33,315  

aHTC Corp.

   Technology Hardware, Storage & Peripherals     3,500          7,196  

Hua Nan Financial Holdings Co. Ltd.

   Banks     49,000          35,968  

Innolux Corp.

   Electronic Equipment, Instruments & Components     35,000          16,668  

Inventec Corp.

   Technology Hardware, Storage & Peripherals     14,000          14,691  

Largan Precision Co. Ltd.

   Electronic Equipment, Instruments & Components     510          36,432  

Lite-On Technology Corp.

   Technology Hardware, Storage & Peripherals     10,500          25,278  

MediaTek, Inc.

   Semiconductors & Semiconductor Equipment     7,210          186,362  

 

           
franklintempleton.com  

Annual Report

             169


FRANKLIN TEMPLETON ETF TRUST

SCHEDULE OF INVESTMENTS

 

Franklin FTSE Asia ex Japan ETF (continued)

 

      Industry       Shares                Value  

Common Stocks (continued)

         

Taiwan (continued)

         

Mega Financial Holding Co. Ltd.

   Banks     54,000        $ 58,527  

Micro-Star International Co. Ltd.

   Technology Hardware, Storage & Peripherals     3,500          16,553  

momo.com, Inc.

   Broadline Retail     296          8,779  

Nan Ya Plastics Corp.

   Chemicals     28,000          71,270  

Nan Ya Printed Circuit Board Corp.

   Electronic Equipment, Instruments & Components     1,170          10,875  

Nanya Technology Corp.

   Semiconductors & Semiconductor Equipment     3,790          8,278  

Nien Made Enterprise Co. Ltd.

   Household Durables     770          8,270  

Novatek Microelectronics Corp.

   Semiconductors & Semiconductor Equipment     2,890          40,957  

aOneness Biotech Co. Ltd.

   Pharmaceuticals     1,400          12,277  

Pegatron Corp.

   Technology Hardware, Storage & Peripherals     10,000          22,892  

Pou Chen Corp.

   Textiles, Apparel & Luxury Goods     12,000          12,297  

Powerchip Semiconductor Manufacturing Corp.

   Semiconductors & Semiconductor Equipment     14,000          15,220  

Powertech Technology, Inc.

   Semiconductors & Semiconductor Equipment     3,500          10,461  

President Chain Store Corp.

   Consumer Staples Distribution & Retail     2,800          24,784  

Quanta Computer, Inc.

   Technology Hardware, Storage & Peripherals     13,130          38,423  

Realtek Semiconductor Corp.

   Semiconductors & Semiconductor Equipment     2,370          30,163  

Ruentex Development Co. Ltd.

   Real Estate Management & Development     11,900          13,816  

Shanghai Commercial & Savings Bank Ltd.

   Banks     18,146          27,981  

Shin Kong Financial Holding Co. Ltd.

   Insurance     67,041          18,540  

Sino-American Silicon Products, Inc.

   Semiconductors & Semiconductor Equipment     2,680          13,731  

SinoPac Financial Holdings Co. Ltd.

   Banks     51,580          28,121  

Synnex Technology International Corp.

   Electronic Equipment, Instruments & Components     7,000          14,093  

Taishin Financial Holding Co. Ltd.

   Banks     56,000          30,531  

Taiwan Business Bank

   Banks     28,000          12,369  

Taiwan Cement Corp.

   Construction Materials     30,097          35,981  

Taiwan Cooperative Financial Holding Co. Ltd.

   Banks     49,000          42,003  

Taiwan Fertilizer Co. Ltd.

   Chemicals     3,500          6,437  

Taiwan Glass Industry Corp.

   Building Products     8,000          5,399  

Taiwan High Speed Rail Corp.

   Transportation Infrastructure     8,000          7,948  

Taiwan Mobile Co. Ltd.

   Wireless Telecommunication Services     8,000          26,537  

Taiwan Secom Co. Ltd.

   Commercial Services & Supplies     1,170          4,054  

Taiwan Semiconductor Manufacturing Co. Ltd.

   Semiconductors & Semiconductor Equipment     115,500          2,021,890  

Teco Electric & Machinery Co. Ltd.

   Electrical Equipment     10,000          13,958  

Transcend Information, Inc.

   Technology Hardware, Storage & Peripherals     1,170          2,809  

U-Ming Marine Transport Corp.

   Marine Transportation     2,000          3,665  

Unimicron Technology Corp.

   Electronic Equipment, Instruments & Components     6,130          29,696  

Uni-President Enterprises Corp.

   Food Products     23,700          55,966  

United Microelectronics Corp.

   Semiconductors & Semiconductor Equipment     56,000          97,295  

Vanguard International Semiconductor Corp.

   Semiconductors & Semiconductor Equipment     4,380          13,939  

Voltronic Power Technology Corp.

   Electrical Equipment     290          16,478  

Walsin Lihwa Corp.

   Electrical Equipment     16,851          26,980  

Walsin Technology Corp.

   Electronic Equipment, Instruments & Components     2,450          7,781  

Wan Hai Lines Ltd.

   Marine Transportation     4,460          10,034  

Win Semiconductors Corp.

   Semiconductors & Semiconductor Equipment     1,750          10,489  

Winbond Electronics Corp.

   Semiconductors & Semiconductor Equipment     12,000          10,444  

Wistron Corp.

   Technology Hardware, Storage & Peripherals     14,000          19,243  

Wiwynn Corp.

   Technology Hardware, Storage & Peripherals     420          15,519  

Yageo Corp.

   Electronic Equipment, Instruments & Components     1,890          32,837  

Yang Ming Marine Transport Corp.

   Marine Transportation     8,750          18,479  

Yuanta Financial Holding Co. Ltd.

   Capital Markets     56,000          41,107  

Yulon Motor Co. Ltd.

   Automobiles     2,863          7,071  

Zhen Ding Technology Holding Ltd.

   Electronic Equipment, Instruments & Components     2,630          9,847  
         

 

 

 
            4,924,179  
         

 

 

 

Thailand 2.6%

         

Advanced Info Service PCL, NVDR

   Wireless Telecommunication Services     5,600          34,719  

aAirports of Thailand PCL, Class H, NVDR

   Transportation Infrastructure     20,700          42,980  

Asset World Corp. PCL, Class H, NVDR

   Hotels, Restaurants & Leisure     37,100          6,293  

 

           
170             

Annual Report

  franklintempleton.com


FRANKLIN TEMPLETON ETF TRUST

SCHEDULE OF INVESTMENTS

 

Franklin FTSE Asia ex Japan ETF (continued)

 

      Industry       Shares                Value  

Common Stocks (continued)

         

Thailand (continued)

         

B Grimm Power PCL, Class A, NVDR

   Independent Power Producers & Energy Traders     3,900        $ 4,619  

Bangkok Bank PCL, Class A, fgn.

   Banks     2,100          9,304  

Bangkok Bank PCL, Class A, NVDR

   Banks     1,100          4,874  

Bangkok Dusit Medical Services PCL, Class A, NVDR

   Health Care Providers & Services     44,100          38,045  

Bangkok Expressway & Metro PCL, Class H, NVDR

   Transportation Infrastructure     38,900          10,068  

Bangkok Life Assurance PCL, Class A, NVDR

   Insurance     2,500          2,047  

Banpu PCL, Class A, NVDR

   Oil, Gas & Consumable Fuels     28,000          8,843  

Berli Jucker PCL, Class A, NVDR

   Consumer Staples Distribution & Retail     4,900          5,481  

BTS Group Holdings PCL, Class A, NVDR

   Ground Transportation     42,000          8,721  

Bumrungrad Hospital PCL, NVDR

   Health Care Providers & Services     2,800          18,506  

Carabao Group PCL, Class A, NVDR

   Beverages     1,800          5,040  

Central Pattana PCL, Class A, NVDR

   Real Estate Management & Development     13,700          27,544  

Central Retail Corp. PCL, Class A, NVDR

   Broadline Retail     14,000          18,321  

Charoen Pokphand Foods PCL, Class A, NVDR

   Food Products     23,800          14,755  

CP ALL PCL, Class B, NVDR

   Consumer Staples Distribution & Retail     28,700          52,037  

Delta Electronics Thailand PCL, Class A, NVDR

   Electronic Equipment, Instruments & Components     1,400          46,755  

Digital Telecommunications Infrastructure Fund, Class A, fgn.

  

Financial Services

    25,900          9,619  

Electricity Generating PCL, Class A, NVDR

   Independent Power Producers & Energy Traders     1,400          6,366  

Energy Absolute PCL, Class A, NVDR

   Oil, Gas & Consumable Fuels     8,400          18,669  

Global Power Synergy PCL, NVDR

   Independent Power Producers & Energy Traders     3,500          6,960  

Gulf Energy Development PCL, NVDR

   Independent Power Producers & Energy Traders     20,000          30,852  

Home Product Center PCL, NVDR

   Specialty Retail     28,000          11,791  

Indorama Ventures PCL, NVDR

   Chemicals     8,800          8,878  

Intouch Holdings PCL, NVDR

   Wireless Telecommunication Services     4,200          9,089  

IRPC PCL, NVDR

   Oil, Gas & Consumable Fuels     48,700          3,731  

Kasikornbank PCL, fgn.

   Banks     5,300          20,537  

Kasikornbank PCL, NVDR

   Banks     1,800          6,975  

Krung Thai Bank PCL, NVDR

   Banks     30,800          14,862  

Krungthai Card PCL, NVDR

   Consumer Finance     6,600          10,471  

Land & Houses PCL, NVDR

   Real Estate Management & Development     34,700          9,995  

aMinor International PCL, NVDR

   Hotels, Restaurants & Leisure     17,900          16,882  

Muangthai Capital PCL, NVDR

   Consumer Finance     3,500          3,531  

Osotspa PCL, NVDR

   Beverages     6,700          6,025  

PTT Exploration & Production PCL, NVDR

   Oil, Gas & Consumable Fuels     6,300          27,728  

PTT Global Chemical PCL, NVDR

   Chemicals     9,800          13,112  

PTT Oil & Retail Business PCL, NVDR

   Specialty Retail     13,700          8,534  

PTT PCL, NVDR

   Oil, Gas & Consumable Fuels     69,000          63,562  

Ratch Group PCL, NVDR

   Independent Power Producers & Energy Traders     6,000          6,755  

SCB X PCL, NVDR

   Banks     8,400          25,179  

SCG Packaging PCL, NVDR

   Containers & Packaging     6,000          8,115  

Siam Cement PCL, NVDR

   Construction Materials     3,500          32,242  

Siam City Cement PCL, NVDR

   Construction Materials     400          1,632  

Siam Makro PCL, NVDR

   Consumer Staples Distribution & Retail     7,000          8,035  

Sri Trang Gloves Thailand PCL, NVDR

   Health Care Equipment & Supplies     4,900          1,462  

Srisawad Corp. PCL, NVDR

   Consumer Finance     3,200          4,936  

Thai Oil PCL, NVDR

   Oil, Gas & Consumable Fuels     5,375          8,252  

Thai Union Group PCL, NVDR

   Food Products     14,400          5,938  

TMBThanachart Bank PCL, NVDR

   Banks     210,000          8,721  

True Corp. PCL, NVDR

   Diversified Telecommunication Services     54,060          13,280  
         

 

 

 
            791,668  
         

 

 

 

United Kingdom 0.3%

         

CK Hutchison Holdings Ltd., Class A

   Real Estate Management & Development     13,000          80,650  
         

 

 

 

 

           
franklintempleton.com  

Annual Report

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FRANKLIN TEMPLETON ETF TRUST

SCHEDULE OF INVESTMENTS

 

Franklin FTSE Asia ex Japan ETF (continued)

 

      Industry       Shares                Value  

Common Stocks (continued)

         

United States 0.1%

         

bJS Global Lifestyle Co. Ltd.

   Household Durables     5,500        $ 5,647  

Parade Technologies Ltd.

   Semiconductors & Semiconductor Equipment     350          12,070  

a,bSamsonite International SA

   Textiles, Apparel & Luxury Goods     6,300          19,462  
         

 

 

 
            37,179  
         

 

 

 

Total Common Stocks
(Cost $31,931,680)

            29,831,002  
         

 

 

 

Preferred Stocks 0.7%

         

South Korea 0.7%

         

c Amorepacific Corp., 1.546%, pfd.

   Personal Products     49          1,668  

a,cCJ CheilJedang Corp., 1.780%,pfd.

   Food Products     7          836  

cHyundai Motor Co., 7.411%, pfd.

   Automobiles     168          12,363  

cHyundai Motor Co., 7.468%, pfd.

   Automobiles     112          8,121  

cLG Chem Ltd., 3.237%, pfd.

   Chemicals     28          6,678  

cLG Electronics, Inc., 1.54%, pfd.

   Household Durables     77          2,881  

cLG H&H Co. Ltd., 1.636%, pfd.

   Personal Products     11          2,091  

cSamsung Electronics Co. Ltd., 2.681%, pfd.

   Technology Hardware, Storage & Peripherals     3,962          164,037  

cSamsung Fire & Marine Insurance Co. Ltd., 8.666%, pfd.

   Insurance     14          1,713  

cSamsung SDI Co. Ltd., 0.325%, pfd.

   Electronic Equipment, Instruments & Components     7          1,788  
         

 

 

 

Total Preferred Stocks
(Cost $213,337)

            202,176  
         

 

 

 

Total Investments (Cost $32,145,017) 100.2%

            30,033,178  

Other Assets, less Liabilities (0.2)%

            (52,849
         

 

 

 

Net Assets 100.0%

          $ 29,980,329  
         

 

 

 

 

Rounds to less than 0.1% of net assets.

aNon-income producing.

bSecurity was purchased pursuant to Rule 144A under the Securities Act of 1933 and may be sold in transactions exempt from registration only to qualified institutional buyers or in a public offering registered under the Securities Act of 1933. At March 31, 2023, the value of was $1,662,626, representing 5.5% of net assets.

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

See Abbreviations on page 355.

 

           
172             

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FRANKLIN TEMPLETON ETF TRUST

 

Financial Highlights

 

Franklin FTSE Australia ETF

 

     Year Ended March 31,
      2023    2022      2021      2020      2019  
Per share operating performance
(for a share outstanding throughout the year)
              

Net asset value, beginning of year

     $31.55        $29.12        $17.38        $24.63        $24.67  
  

 

 

 

Income from investment operationsa:

              

Net investment incomeb

     1.60        1.48        0.81        1.07        1.29  

Net realized and unrealized gains (losses)

     (4.84      2.47        11.55        (7.18      (0.37
  

 

 

 

Total from investment operations

     (3.24      3.95        12.36        (6.11      0.92  
  

 

 

 

Less distributions from net investment income

     (1.55      (1.52      (0.62      (1.14      (0.96
  

 

 

 

Net asset value, end of year

     $26.76        $31.55        $29.12        $17.38        $24.63  
  

 

 

 

Total returnc

     (9.90)%        13.93%        71.72%        (26.23)%        4.00%  
Ratios to average net assetsd               

Total expenses

     0.09%        0.09%        0.09%        0.09%        0.09%  

Net investment income

     5.94%        4.93%        3.25%        4.28%        5.30%  
Supplemental data               

Net assets, end of year (000’s)

     $29,437        $29,968        $23,295        $7,820        $7,389  

Portfolio turnover ratee

     5.88%f        15.26%f        6.98%f        8.16%f        4.56%  

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

bBased on average daily shares outstanding.

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

dRatios are annualized for periods less than one year.

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

 

 

 

 

 

fPortfolio turnover rate excluding cash creations was as follows:      5.88%        15.26%        6.98%        8.16%         

 

           
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FRANKLIN TEMPLETON ETF TRUST

 

Schedule of Investments, March 31, 2023

 

Franklin FTSE Australia ETF

 

      Industry       Shares                Value  

Common Stocks 98.3%

         

Australia 95.6%

         

Adbri Ltd.

   Construction Materials     10,538        $ 11,187  

AGL Energy Ltd.

   Multi-Utilities     13,486          72,710  

aAllkem Ltd.

   Metals & Mining     13,266          105,553  

ALS Ltd.

   Professional Services     10,868          89,967  

Altium Ltd.

   Software     2,662          67,892  

Alumina Ltd.

   Metals & Mining     56,738          55,480  

aAMP Ltd.

   Financial Services     68,068          47,868  

Ampol Ltd.

   Oil, Gas & Consumable Fuels     5,390          110,067  

Ansell Ltd.

   Health Care Equipment & Supplies     2,882          51,209  

ANZ Group Holdings Ltd.

   Banks     67,628          1,038,588  

APA Group

   Gas Utilities     26,796          181,620  

Aristocrat Leisure Ltd.

   Hotels, Restaurants & Leisure     14,916          371,628  

ASX Ltd.

   Capital Markets     4,378          190,649  

Atlas Arteria Ltd.

   Transportation Infrastructure     32,934          138,742  

Aurizon Holdings Ltd.

   Ground Transportation     39,842          89,659  

Bank of Queensland Ltd.

   Banks     14,828          64,453  

Beach Energy Ltd.

   Oil, Gas & Consumable Fuels     40,260          38,154  

Bendigo & Adelaide Bank Ltd.

   Banks     12,716          73,838  

BHP Group Ltd.

   Metals & Mining     113,762          3,598,554  

BlueScope Steel Ltd.

   Metals & Mining     10,494          141,621  

Boral Ltd.

   Construction Materials     7,788          18,360  

Brambles Ltd.

   Commercial Services & Supplies     31,372          282,183  

carsales.com Ltd.

   Interactive Media & Services     8,109          120,188  

Challenger Ltd.

   Financial Services     15,180          63,441  

Charter Hall Group

   Diversified REITs     10,626          78,284  

Cleanaway Waste Management Ltd.

   Commercial Services & Supplies     50,248          80,096  

Cochlear Ltd.

   Health Care Equipment & Supplies     1,452          230,176  

Coles Group Ltd.

   Consumer Staples Distribution & Retail     28,754          347,029  

Commonwealth Bank of Australia

   Banks     38,192          2,514,937  

Computershare Ltd.

   IT Services     12,144          175,601  

CSL Ltd.

   Biotechnology     10,868          2,098,491  

CSR Ltd.

   Construction Materials     10,824          34,435  

Deterra Royalties Ltd.

   Metals & Mining     9,658          31,049  

Dexus

   Diversified REITs     24,332          122,386  

Domain Holdings Australia Ltd.

   Interactive Media & Services     5,720          13,447  

Domino’s Pizza Enterprises Ltd.

   Hotels, Restaurants & Leisure     1,430          47,763  

Downer EDI Ltd.

   Commercial Services & Supplies     15,400          35,378  

Endeavour Group Ltd.

   Consumer Staples Distribution & Retail     30,910          140,152  

Evolution Mining Ltd.

   Metals & Mining     38,874          81,232  

aFlight Centre Travel Group Ltd.

   Hotels, Restaurants & Leisure     3,432          42,478  

Fortescue Metals Group Ltd.

   Metals & Mining     35,948          541,473  

Goodman Group

   Diversified REITs     41,448          521,607  

GPT Group

   Diversified REITs     43,098          122,387  

Harvey Norman Holdings Ltd.

   Broadline Retail     13,552          32,494  

IDP Education Ltd.

   Diversified Consumer Services     4,092          74,846  

IGO Ltd.

   Metals & Mining     13,948          119,293  

Iluka Resources Ltd.

   Metals & Mining     9,482          67,443  

Incitec Pivot Ltd.

   Chemicals     43,758          91,731  

Insignia Financial Ltd.

   Capital Markets     14,674          26,928  

Insurance Australia Group Ltd.

   Insurance     55,902          175,595  

JB Hi-Fi Ltd.

   Specialty Retail     2,464          70,087  

Lendlease Corp. Ltd.

   Real Estate Management & Development     15,510          75,104  

aLottery Corp. Ltd.

   Hotels, Restaurants & Leisure     50,264          172,361  

aLynas Rare Earths Ltd.

   Metals & Mining     20,460          86,878  

Macquarie Group Ltd.

   Capital Markets     7,854          924,010  

Magellan Financial Group Ltd.

   Capital Markets     3,190          18,545  

Medibank Pvt Ltd.

   Insurance     61,974          139,464  

 

           
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Annual Report

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FRANKLIN TEMPLETON ETF TRUST

SCHEDULE OF INVESTMENTS

 

Franklin FTSE Australia ETF (continued)

 

      Industry       Shares                Value  

Common Stocks (continued)

         

Australia (continued)

         

Metcash Ltd.

   Consumer Staples Distribution & Retail     21,802        $ 56,217  

Mineral Resources Ltd.

   Metals & Mining     3,762          203,055  

Mirvac Group

   Diversified REITs     89,496          124,675  

National Australia Bank Ltd.

   Banks     71,060          1,319,263  

New Hope Corp. Ltd.

   Oil, Gas & Consumable Fuels     5,368          20,421  

Newcrest Mining Ltd.

   Metals & Mining     20,152          362,389  

aNEXTDC Ltd.

   IT Services     10,230          71,667  

Northern Star Resources Ltd.

   Metals & Mining     25,454          209,859  

Nufarm Ltd.

   Chemicals     8,734          33,401  

Orica Ltd.

   Chemicals     10,252          105,672  

Origin Energy Ltd.

   Oil, Gas & Consumable Fuels     38,918          216,082  

Orora Ltd.

   Containers & Packaging     19,206          43,992  

OZ Minerals Ltd.

   Metals & Mining     7,370          138,753  

Perpetual Ltd.

   Capital Markets     2,530          37,211  

aPilbara Minerals Ltd.

   Metals & Mining     63,118          166,557  

Platinum Asset Management Ltd.

   Capital Markets     12,012          13,837  

Pro Medicus Ltd.

   Health Care Technology     946          40,467  

aQantas Airways Ltd.

   Airlines     18,062          80,082  

QBE Insurance Group Ltd.

   Insurance     33,506          327,409  

Qube Holdings Ltd.

   Transportation Infrastructure     37,488          72,059  

Ramsay Health Care Ltd.

   Health Care Providers & Services     3,960          176,478  

REA Group Ltd.

   Media     1,144          105,758  

Reece Ltd.

   Trading Companies & Distributors     4,796          55,730  

Region RE Ltd.

   Diversified REITs     25,806          40,616  

Rio Tinto Ltd.

   Metals & Mining     8,404          676,218  

Santos Ltd.

   Oil, Gas & Consumable Fuels     68,112          314,764  

Scentre Group

   Real Estate Investment Trusts (REITs)     117,524          216,457  

SEEK Ltd.

   Professional Services     7,854          125,824  

Seven Group Holdings Ltd.

   Trading Companies & Distributors     3,234          50,034  

Sonic Healthcare Ltd.

   Health Care Providers & Services     10,340          241,275  

South32 Ltd.

   Metals & Mining     103,774          303,727  

aStar Entertainment Group Ltd.

   Hotels, Restaurants & Leisure     31,174          29,857  

Steadfast Group Ltd.

   Insurance     23,056          90,334  

Stockland

   Real Estate Investment Trusts (REITs)     54,054          144,087  

Suncorp Group Ltd.

   Insurance     28,622          232,144  

Tabcorp Holdings Ltd.

   Hotels, Restaurants & Leisure     51,018          33,998  

Telstra Group Ltd.

   Diversified Telecommunication Services     92,356          261,030  

TPG Telecom Ltd.

   Diversified Telecommunication Services     8,426          27,539  

Transurban Group

   Transportation Infrastructure     69,410          660,585  

Treasury Wine Estates Ltd.

   Beverages     16,324          142,894  

Vicinity Ltd.

   Real Estate Investment Trusts (REITs)     85,162          110,937  

Washington H Soul Pattinson & Co. Ltd.

   Oil, Gas & Consumable Fuels     6,006          121,480  

Wesfarmers Ltd.

   Broadline Retail     25,586          861,095  

Westpac Banking Corp.

   Banks     78,760          1,142,555  

Whitehaven Coal Ltd.

   Oil, Gas & Consumable Fuels     16,808          75,761  

WiseTech Global Ltd.

   Software     3,586          156,448  

Woodside Energy Group Ltd.

   Oil, Gas & Consumable Fuels     42,746          954,496  

Woolworths Group Ltd.

   Consumer Staples Distribution & Retail     27,456          696,930  

Worley Ltd.

   Energy Equipment & Services     8,448          81,532  

Yancoal Australia Ltd.

   Oil, Gas & Consumable Fuels     3,762          14,614  
         

 

 

 
            28,145,056  
         

 

 

 

Ireland 0.7%

         

James Hardie Industries PLC, CDI

   Construction Materials     9,988          212,925  
         

 

 

 

New Zealand 0.6%

         

aXero Ltd.

   Software     2,860          171,283  
         

 

 

 

 

           
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FRANKLIN TEMPLETON ETF TRUST

SCHEDULE OF INVESTMENTS

 

Franklin FTSE Australia ETF (continued)

 

      Industry       Shares                Value  

Common Stocks (continued)

         

United Kingdom 1.3%

         

Amcor PLC, CDI

   Containers & Packaging     33,638        $ 376,010  
         

 

 

 

United States 0.1%

         

Sims Ltd.

   Metals & Mining     3,630          37,708  
         

 

 

 

Total Investments (Cost $27,816,869) 98.3%

            28,942,982  

Other Assets, less Liabilities 1.7%

            493,954  
         

 

 

 

Net Assets 100.0%

          $ 29,436,936  
         

 

 

 

aNon-income producing.

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

 

Futures Contracts                                   
Description    Type      Number of
Contracts
     Notional
Amount*
     Expiration
Date
     Value/Unrealized
Appreciation
(Depreciation)
 
Index Contracts               

SPI 200 Index

     Long        4        $481,617        6/15/23        $865  

*As of year end.

 

See Note 7 regarding other derivative information.

See Abbreviations on page 355.

 

           
176             

Annual Report    |   The accompanying notes are an integral part of these financial statements.

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FRANKLIN TEMPLETON ETF TRUST

 

Financial Highlights

 

Franklin FTSE Brazil ETF

 

    Year Ended March 31,  
     2023      2022      2021      2020      2019  
Per share operating performance
(for a share outstanding throughout the year)
             

Net asset value, beginning of year

    $23.56        $20.70        $14.46        $25.72        $27.87  
Income from investment operationsa:              

Net investment incomeb

    2.06        1.84        0.46        1.07        0.80  

Net realized and unrealized gains (losses)

    (6.74      2.55        6.31        (11.33      (2.07

Total from investment operations

    (4.68      4.39        6.77        (10.26      (1.27

Less distributions from net investment income

    (2.07      (1.53      (0.53      (1.00      (0.88

Net asset value, end of year

    $16.81        $23.56        $20.70        $14.46        $25.72  

Total returnc

    (19.57)%        23.03%        46.83%        (41.69)%        (3.98)%  
Ratios to average net assetsd              

Total expenses

    0.19%        0.19%        0.19%        0.23%        0.19%  

Net investment income

    10.93%        8.87%        2.43%        4.26%        3.37%  
Supplemental data              

Net assets, end of year (000’s)

    $268,914        $527,820        $107,656        $102,700        $20,579  

Portfolio turnover ratee

    52.70%f        17.71%f        21.01%f        36.07%f        39.76%  

 

    

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

 

bBased on average daily shares outstanding.

 

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

 

dRatios are annualized for periods less than one year.

 

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

 

 

 

 

 

 

 

fPortfolio turnover rate excluding cash creations was as follows:     13.82%        14.95%        9.31%        17.47%         

 

           
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             177


FRANKLIN TEMPLETON ETF TRUST

 

Schedule of Investments, March 31, 2023

 

Franklin FTSE Brazil ETF

 

      Industry       Shares                Value  

Common Stocks 74.1%

         

Brazil 72.8%

         

Ambev SA

   Beverages     3,280,000        $ 9,270,233  

Atacadao SA

   Consumer Staples Distribution & Retail     400,000          977,467  

Auren Energia SA

   Independent Power Producers & Energy Traders     272,043          787,115  

B3 SA - Brasil Bolsa Balcao

   Capital Markets     4,560,000          9,308,417  

Banco Bradesco SA

   Banks     1,136,000          2,655,017  

Banco BTG Pactual S.A

   Capital Markets     864,000          3,348,474  

Banco do Brasil SA

   Banks     640,004          4,936,750  

Banco Santander Brasil SA

   Banks     272,000          1,437,720  

BB Seguridade Participacoes SA

   Insurance     512,000          3,282,899  

Bradespar SA

   Metals & Mining     25,130          121,679  

aBRF SA

   Food Products     608,000          744,673  

Caixa Seguridade Participacoes SA

   Insurance     336,000          583,167  

CCR SA

   Transportation Infrastructure     832,000          2,100,409  

Centrais Eletricas Brasileiras SA

   Electric Utilities     992,000          6,511,269  

Cia de Saneamento Basico do Estado de Sao Paulo SABESP

   Water Utilities     256,000          2,555,330  

Cia Energetica de Minas Gerais

   Electric Utilities     240,000          810,374  

Cia Paranaense de Energia

   Electric Utilities     240,000          295,370  

Cia Siderurgica Nacional SA

   Metals & Mining     464,000          1,412,980  

Cielo SA

   IT Services     864,000          826,468  

Cosan SA

   Oil, Gas & Consumable Fuels     896,000          2,666,661  

CPFL Energia SA

   Electric Utilities     144,000          898,891  

CSN Mineracao SA

   Metals & Mining     400,000          381,835  

Dexco SA

   Paper & Forest Products     240,260          278,631  

Diagnosticos da America SA

   Health Care Providers & Services     64,000          94,291  

EDP - Energias do Brasil SA

   Electric Utilities     192,000          845,970  

aEmbraer SA

   Aerospace & Defense     560,000          2,296,218  

Energisa SA

   Electric Utilities     224,080          1,775,758  

aEneva SA

   Independent Power Producers & Energy Traders     912,000          1,883,268  

Engie Brasil Energia SA

   Independent Power Producers & Energy Traders     128,000          1,014,104  

Equatorial Energia SA

   Electric Utilities     704,000          3,743,374  

a,bGPS Participacoes e Empreendimentos SA

   Commercial Services & Supplies     304,000          725,487  

GRUPO DE MODA SOMA SA

   Textiles, Apparel & Luxury Goods     336,000          537,441  

aGrupo Mateus SA

   Consumer Staples Distribution & Retail     288,000          324,907  

a,bHapvida Participacoes e Investimentos SA

   Health Care Providers & Services     3,024,000          1,562,621  

Hypera SA

   Pharmaceuticals     304,000          2,260,401  

Intelbras SA Industria de Telecomunicacao Eletronica Brasileira

   Communications Equipment     48,000          216,415  

Itau Unibanco Holding SA

   Banks     336,000          1,395,623  

Klabin SA

   Containers & Packaging     576,000          2,055,094  

Localiza Rent a Car SA

   Ground Transportation     592,033          6,235,306  

Lojas Renner SA

   Broadline Retail     725,410          2,370,700  

M Dias Branco SA

   Food Products     96,000          477,515  

aMagazine Luiza SA

   Broadline Retail     2,288,000          1,493,670  

Marfrig Global Foods SA

   Food Products     224,000          293,350  

Multiplan Empreendimentos Imobiliarios SA

   Real Estate Management & Development     208,000          1,010,822  

Natura & Co. Holding SA

   Personal Products     720,016          1,874,505  

Neoenergia SA

   Electric Utilities     176,000          520,684  

aPetro Rio SA

   Oil, Gas & Consumable Fuels     506,600          3,116,386  

Petroleo Brasileiro SA

   Oil, Gas & Consumable Fuels     2,784,000          14,545,271  

Petroreconcavo SA

   Oil, Gas & Consumable Fuels     144,000          577,392  

Porto Seguro SA

   Insurance     144,000          667,991  

Raia Drogasil SA

   Consumer Staples Distribution & Retail     800,043          3,858,005  

bRede D’Or Sao Luiz SA

   Health Care Providers & Services     576,002          2,412,955  

Rumo SA

   Ground Transportation     944,000          3,509,571  

Sao Martinho SA

   Food Products     128,000          682,128  

Sendas Distribuidora SA

   Consumer Staples Distribution & Retail     896,000          2,746,184  

 

           
178             

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FRANKLIN TEMPLETON ETF TRUST

SCHEDULE OF INVESTMENTS

 

Franklin FTSE Brazil ETF (continued)

 

      Industry       Shares                Value  

Common Stocks (continued)

         

Brazil (continued)

         

SLC Agricola SA

   Food Products     71,400        $ 642,005  

aSmartfit Escola de Ginastica e Danca SA

   Hotels, Restaurants & Leisure     80,000          210,483  

Suzano SA

   Paper & Forest Products     528,000          4,332,094  

Telefonica Brasil SA

   Diversified Telecommunication Services     330,000          2,516,207  

TIM SA

   Wireless Telecommunication Services     608,000          1,508,533  

TOTVS SA

   Software     336,000          1,866,133  

Transmissora Alianca de Energia Eletrica SA

   Electric Utilities     165,000          1,133,465  

Ultrapar Participacoes SA

   Oil, Gas & Consumable Fuels     624,000          1,718,069  

Usinas Siderurgicas de Minas Gerais SA

   Metals & Mining     128,000          201,205  

Vale SA

   Metals & Mining     2,921,613          46,265,235  

Vamos Locacao de Caminhoes Maquinas e Equipamentos SA

   Ground Transportation     240,000          631,922  

Vibra Energia SA

   Specialty Retail     848,000          2,410,074  

WEG SA

   Machinery     1,120,000          8,957,349  
         

 

 

 
            195,708,010  
         

 

 

 

United States 1.3%

         

JBS SA

   Food Products     1,008,000          3,548,701  
         

 

 

 

Total Common Stocks
(Cost $196,308,625)

            199,256,711  
         

 

 

 

Preferred Stocks 25.0%

         

Brazil 25.0%

         

a,cAlpargatas SA, pfd.

   Textiles, Apparel & Luxury Goods     176,000          282,905  

cBanco Bradesco SA, 6.492%, pfd.

   Banks     3,904,000          10,140,660  

cBradespar SA, 11.708%, pfd.

   Metals & Mining     192,084          1,016,063  

cBraskem SA, Class A, 8.76%, pfd.

   Chemicals     144,000          549,843  

cCentrais Eletricas Brasileiras SA, Class B, 4.449%,pfd.

   Electric Utilities     208,000          1,488,337  

cCia Energetica de Minas Gerais, 11.32%, pfd.

   Electric Utilities     944,000          2,129,946  

cCia Paranaense de Energia, 11.974%, pfd.

   Electric Utilities     992,000          1,357,819  

cCTEEP-Cia de Transmissao de Energia Eletrica Paulista, 4.167%, pfd.

   Electric Utilities     144,000          615,449  

cGerdau SA, 13.863%, pfd.

   Metals & Mining     806,400          4,022,258  

cItau Unibanco Holding SA, 4.349%, pfd.

   Banks     3,632,000          17,722,140  

cItausa SA, 4.745%, pfd.

   Banks     3,920,010          6,355,206  

cMetalurgica Gerdau SA, 10.025%, pfd.

   Metals & Mining     496,000          1,157,276  

cPetroleo Brasileiro SA, 43.945%, pfd.

   Oil, Gas & Consumable Fuels     4,208,000          19,462,078  

cUnipar Carbocloro SA, Class B, 19.565%, pfd.

   Chemicals     35,540          491,017  

cUsinas Siderurgicas de Minas Gerais SA, Class A, 8.628%, pfd.

   Metals & Mining     352,000          506,105  
         

 

 

 

Total Preferred Stocks
(Cost $71,725,707)

            67,297,102  
         

 

 

 

 

           
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FRANKLIN TEMPLETON ETF TRUST

SCHEDULE OF INVESTMENTS

 

Franklin FTSE Brazil ETF (continued)

 

      Industry       Shares                Value  

Right 0.0%

         

Brazil 0.0%

         

aLocaliza Rent a Car SA

   Ground Transportation     2,648        $ 6,857  
         

 

 

 

Total Rights (Cost $0)

            6,857  
         

 

 

 

Total Investments (Cost $268,034,332)
99.1%

            266,560,670  

Other Assets, less Liabilities 0.9%

            2,353,106  
         

 

 

 

Net Assets 100.0%

          $ 268,913,776  
         

 

 

 

Rounds to less than 0.1% of net assets.

aNon-income producing.

bSecurity was purchased pursuant to Rule 144A under the Securities Act of 1933 and may be sold in transactions exempt from registration only to qualified institutional buyers or in a public offering registered under the Securities Act of 1933. At March 31, 2023, the value of was $4,701,063, representing 1.7% of net assets. cVariable rate security. The rate shown represents the yield at period end.

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

 

Futures Contracts                                   
Description    Type      Number of
Contracts
     Notional
Amount*
     Expiration
Date
     Value/Unrealized
Appreciation
(Depreciation)
 
Equity Contracts               

Bovespa Index

     Long        115      $ 2,316,399        4/12/23        $(100,113)  

*As of year end.

 

See Note 7 regarding other derivative information.

See Abbreviations on page 355.

 

           
180             

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  franklintempleton.com


FRANKLIN TEMPLETON ETF TRUST

 

Financial Highlights

 

Franklin FTSE Canada ETF

 

    Year Ended March 31,  
     2023      2022      2021      2020      2019  
Per share operating performance
(for a share outstanding throughout the year)
             

Net asset value, beginning of year

    $36.07        $30.20        $19.50        $24.13        $23.77  
       
Income from investment operationsa:              

Net investment incomeb

    0.92        0.80        0.75        0.69        0.67  

Net realized and unrealized gains (losses)

    (5.58      5.77        10.63        (4.72      0.33  
       
Total from investment operations     (4.66      6.57        11.38        (4.03      1.00  
       
Less distributions from net investment income     (0.65      (0.70      (0.68      (0.60      (0.64
       
Net asset value, end of year     $30.76        $36.07        $30.20        $19.50        $24.13  
       

Total returnc

    (12.82)%        21.95%        59.10%        (17.25)%        4.48%  
Ratios to average net assetsd              

Total expenses

    0.09%        0.09%        0.09%        0.09%        0.09%  

Net investment income

    3.00%        2.37%        2.88%        2.73%        2.79%  
Supplemental data              

Net assets, end of year (000’s)

    $279,927        $43,289        $24,160        $4,876        $4,827  

Portfolio turnover ratee

    5.27%f        5.63%f        3.14%f        4.57%f        6.95%  

 

    

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

 

bBased on average daily shares outstanding.

 

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

 

dRatios are annualized for periods less than one year.

 

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

 

 

 

 

 

 

 

fPortfolio turnover rate excluding cash creations was as follows:     5.27%        5.63%        3.14%        4.57%         

 

           
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The accompanying notes are an integral part of these financial statements.    |   Annual Report

             181


FRANKLIN TEMPLETON ETF TRUST

 

Schedule of Investments, March 31, 2023

 

Franklin FTSE Canada ETF

 

      Industry       Shares                Value  

Common Stocks 99.7%

         

Canada 97.4%

         

Agnico Eagle Mines Ltd.

   Metals & Mining     81,718        $ 4,160,321  

Alimentation Couche-Tard, Inc.

   Consumer Staples Distribution & Retail     136,864          6,871,769  

Bank of Montreal

   Banks     118,664          10,555,121  

Bank of Nova Scotia

   Banks     213,850          10,756,101  

Barrick Gold Corp.

   Metals & Mining     314,678          5,833,872  

BCE, Inc.

   Diversified Telecommunication Services     54,418          2,434,304  

aBrookfield Asset Management Ltd., Class A

   Capital Markets     48,594          1,589,579  

Brookfield Corp.

   Capital Markets     239,512          7,792,303  

Canadian Imperial Bank of Commerce, Class A

   Banks     158,340          6,705,187  

Canadian National Railway Co.

   Ground Transportation     106,652          12,567,181  

Canadian Natural Resources Ltd.

   Oil, Gas & Consumable Fuels     194,922          10,771,948  

Canadian Pacific Railway Ltd.

   Ground Transportation     166,712          12,819,831  

Canadian Tire Corp. Ltd., Class A

   Broadline Retail     9,464          1,233,359  

Canadian Utilities Ltd., Class A

   Multi-Utilities     22,204          617,876  

Cenovus Energy, Inc.

   Oil, Gas & Consumable Fuels     249,158          4,341,187  

aCGI, Inc., Class A

   IT Services     37,856          3,643,362  

Constellation Software, Inc.

   Software     3,424          6,428,548  

Dollarama, Inc.

   Broadline Retail     48,776          2,911,026  

Enbridge, Inc.

   Oil, Gas & Consumable Fuels     363,272          13,831,903  

Fairfax Financial Holdings Ltd.

   Insurance     3,795          2,520,457  

Fortis, Inc.

   Electric Utilities     85,540          3,631,192  

Franco-Nevada Corp.

   Metals & Mining     34,216          4,983,929  

George Weston Ltd.

   Consumer Staples Distribution & Retail     12,376          1,637,819  

Great-West Lifeco, Inc.

   Insurance     48,594          1,286,169  

bHydro One Ltd.

   Electric Utilities     56,602          1,609,373  

IGM Financial, Inc.

   Capital Markets     14,560          434,535  

Imperial Oil Ltd.

   Oil, Gas & Consumable Fuels     31,850          1,617,505  

Intact Financial Corp.

   Insurance     31,668          4,525,972  

Loblaw Cos. Ltd.

   Consumer Staples Distribution & Retail     27,482          2,501,170  

Magna International, Inc.

   Automobile Components     47,684          2,550,593  

Manulife Financial Corp.

   Insurance     334,698          6,133,307  

Metro, Inc., Class A

   Consumer Staples Distribution & Retail     42,406          2,329,377  

National Bank of Canada

   Banks     60,242          4,303,095  

Nutrien Ltd.

   Chemicals     93,366          6,885,773  

Pembina Pipeline Corp.

   Oil, Gas & Consumable Fuels     98,462          3,185,182  

Power Corp. of Canada

   Insurance     96,460          2,461,838  

Restaurant Brands International, Inc.

   Hotels, Restaurants & Leisure     54,236          3,636,038  

Royal Bank of Canada

   Banks     251,706          24,038,867  

Saputo, Inc.

   Food Products     43,316          1,119,267  

Shaw Communications, Inc., Class B

   Media     76,986          2,300,450  

aShopify, Inc., Class A

   IT Services     204,022          9,768,815  

Sun Life Financial, Inc.

   Insurance     105,196          4,907,877  

Suncor Energy, Inc.

   Oil, Gas & Consumable Fuels     242,242          7,510,603  

TC Energy Corp.

   Oil, Gas & Consumable Fuels     181,090          7,034,323  

Teck Resources Ltd., Class B

   Metals & Mining     79,898          2,913,486  

TELUS Corp.

   Diversified Telecommunication Services     85,540          1,695,820  

Thomson Reuters Corp.

   Professional Services     29,120          3,783,545  

Toronto-Dominion Bank

   Banks     326,326          19,519,038  

Tourmaline Oil Corp.

   Oil, Gas & Consumable Fuels     51,324          2,135,861  

Wheaton Precious Metals Corp.

   Metals & Mining     80,990          3,895,252  
         

 

 

 
            272,721,306  
         

 

 

 

 

           
182             

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  franklintempleton.com


FRANKLIN TEMPLETON ETF TRUST

SCHEDULE OF INVESTMENTS

 

Franklin FTSE Canada ETF (continued)

 

      Industry       Shares                Value  

Common Stocks (continued)

         

United States 2.3%

         

Waste Connections, Inc.

   Commercial Services & Supplies     46,046        $ 6,399,861  
         

 

 

 

Total Investments (Cost $298,943,761) 99.7%

            279,121,167  

Other Assets, less Liabilities 0.3%

            805,881  
         

 

 

 

Net Assets 100.0%

          $ 279,927,048  
         

 

 

 

aNon-income producing.

bSecurity was purchased pursuant to Rule 144A under the Securities Act of 1933 and may be sold in transactions exempt from registration only to qualified institutional buyers or in a public offering registered under the Securities Act of 1933. At March 31, 2023, the value of was $1,609,373, representing 0.6% of net assets.

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

 

Futures Contracts

 

                                  
Description    Type      Number of
Contracts
     Notional
Amount*
     Expiration
Date
     Value/Unrealized
Appreciation
(Depreciation)
 
Index Contracts               

S&P/TSX 60 Index

     Long        5        $893,487        6/15/23        $13,181  

*As of year end.

See Note 7 regarding other derivative information.

See Abbreviations on page 355.

 

           
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The accompanying notes are an integral part of these financial statements.    |   Annual Report

             183


FRANKLIN TEMPLETON ETF TRUST

 

Financial Highlights

 

Franklin FTSE China ETF

 

 

    Year Ended March 31,  
     2023      2022      2021      2020      2019  
Per share operating performance
(for a share outstanding throughout the year)
             

Net asset value, beginning of year

    $21.43        $31.78        $22.19        $24.01        $25.99  
       
Income from investment operationsa:              

Net investment incomeb

    0.54        0.49        0.32        0.45        0.40  

Net realized and unrealized gains (losses)

    (1.77      (10.47      9.56        (1.78      (1.99
       

Total from investment operations

    (1.23      (9.98      9.88        (1.33      (1.59
       

Less distributions from net investment income

    (0.50      (0.37      (0.29      (0.49      (0.39
       

Net asset value, end of year

    $19.70        $21.43        $31.78        $22.19        $24.01  
       

Total returnc

    (5.68)%        (31.63)%        44.67%        (5.64)%        (5.94)%  
Ratios to average net assetsd              

Expenses before waiver and payments by affiliates

    0.19%        0.19%        0.19%        0.19%        0.19%  

Expenses net of waiver and payments by affiliates

    0.19%        0.19%        0.19%        0.19%        —%  

Net investment income

    2.82%        1.80%        1.06%        1.94%        1.70%  
Supplemental data              

Net assets, end of year (000’s)

    $114,234        $111,454        $120,782        $48,807        $43,220  

Portfolio turnover ratee

    9.69%f        12.78%f        15.97%f        32.47%f        7.21%  

 

    

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

 

bBased on average daily shares outstanding.

 

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

 

dRatios are annualized for periods less than one year.

 

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

 

 

 

 

 

 

 

fPortfolio turnover rate excluding cash creations was as follows:     9.69%        12.00%        15.31%        32.47%         

 

           
184             

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  franklintempleton.com


FRANKLIN TEMPLETON ETF TRUST

 

Schedule of Investments, March 31, 2023

 

Franklin FTSE China ETF

 

      Industry       Shares                Value  

Common Stocks 100.0%

 

China 96.3%

      

360 DigiTech, Inc., ADR

   Consumer Finance     5,742        $ 111,395  

360 Security Technology, Inc., Class A

   Software     26,100          66,321  

37 Interactive Entertainment Network Technology Group Co. Ltd., Class A

   Entertainment     5,800          24,028  

3peak, Inc., Class A

   Semiconductors & Semiconductor Equipment     321          11,382  

a3SBio, Inc., Class A

   Biotechnology     72,500          72,223  

Addsino Co. Ltd., Class A

   Communications Equipment     5,800          9,502  

bAdvanced Micro-Fabrication Equipment, Inc. China, Class A

   Semiconductors & Semiconductor Equipment     2,349          50,457  

AECC Aero-Engine Control Co. Ltd., Class A

   Aerospace & Defense     5,800          20,574  

AECC Aviation Power Co. Ltd., Class A

   Aerospace & Defense     8,700          54,666  

bAgile Group Holdings Ltd.

   Real Estate Management & Development     78,000          17,389  

Agricultural Bank of China Ltd., Class A

   Banks     339,300          153,659  

Agricultural Bank of China Ltd., Class H

   Banks     1,566,000          580,521  

Aier Eye Hospital Group Co. Ltd., Class A

   Health Care Providers & Services     26,141          118,271  

bAir China Ltd., Class A

   Airlines     31,900          49,704  

bAir China Ltd., Class H

   Airlines     82,000          73,330  

a,bAkeso, Inc.

   Biotechnology     25,000          128,663  

bAlibaba Group Holding Ltd., Class A

   Internet & Direct Marketing Retail     750,678          9,601,089  

aA-Living Smart City Services Co. Ltd., Class H

   Commercial Services & Supplies     43,500          37,737  

Aluminum Corp. of China Ltd., Class A

   Metals & Mining     49,300          39,628  

Aluminum Corp. of China Ltd., Class H

   Metals & Mining     174,000          88,220  

bAmlogic Shanghai Co. Ltd., Class A

   Semiconductors & Semiconductor Equipment     1,456          17,835  

Angang Steel Co. Ltd., Class A

   Metals & Mining     23,200          10,034  

Angang Steel Co. Ltd., Class H

   Metals & Mining     76,000          24,301  

Angel Yeast Co. Ltd., Class A

   Food Products     2,900          17,631  

aAngelalign Technology, Inc.

   Health Care Equipment & Supplies     2,400          35,679  

Anhui Anke Biotechnology Group Co. Ltd., Class A

   Pharmaceuticals     6,916          11,128  

Anhui Conch Cement Co. Ltd., Class A

   Construction Materials     14,500          59,649  

Anhui Conch Cement Co. Ltd., Class H

   Construction Materials     61,210          212,092  

Anhui Expressway Co. Ltd., Class H

   Transportation Infrastructure     18,000          18,138  

Anhui Gujing Distillery Co. Ltd., Class A

   Beverages     1,500          64,654  

Anhui Gujing Distillery Co. Ltd., Class B

   Beverages     6,300          112,438  

Anhui Zhongding Sealing Parts Co. Ltd., Class A

   Automobile Components     5,800          10,735  

Anjoy Foods Group Co. Ltd., Class A

   Food Products     1,100          26,210  

ANTA Sports Products Ltd., Class A

   Textiles, Apparel & Luxury Goods     59,050          857,547  

Apeloa Pharmaceutical Co. Ltd., Class A

   Pharmaceuticals     2,900          8,995  

Asymchem Laboratories Tianjin Co. Ltd., Class A

   Pharmaceuticals     700          13,591  

Autohome, Inc., ADR

   Software     3,074          102,887  

Avary Holding Shenzhen Co. Ltd., Class A

   Electronic Equipment, Instruments & Components     2,900          13,099  

b,cAVIC Electromechanical Systems Co. Ltd., Class A

   Aerospace & Defense     500           

AVIC Industry-Finance Holdings Co. Ltd., Class A

   Financial Services     31,900          19,045  

AviChina Industry & Technology Co. Ltd., Class H

   Aerospace & Defense     116,000          60,882  

AVICOPTER PLC, Class A

   Aerospace & Defense     2,900          17,867  

aBAIC Motor Corp. Ltd., Class H

   Automobiles     116,000          32,214  

bBaidu, Inc., Class A

   Interactive Media & Services     114,588          2,170,617  

Bank of Beijing Co. Ltd., Class A

   Banks     72,500          46,452  

Bank of Changsha Co. Ltd., Class A

   Banks     14,500          16,702  

Bank of Chengdu Co. Ltd., Class A

   Banks     5,800          11,453  

Bank of China Ltd., Class A

   Banks     165,300          81,359  

Bank of China Ltd., Class H

   Banks     3,857,000          1,478,936  

 

           
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Annual Report

             185


FRANKLIN TEMPLETON ETF TRUST

SCHEDULE OF INVESTMENTS

 

Franklin FTSE China ETF (continued)

 

      Industry       Shares                Value  

Common Stocks (continued)

         

China (continued)

         

Bank of Communications Co. Ltd., Class A

   Banks     136,300        $ 101,422  

Bank of Communications Co. Ltd., Class H

   Banks     377,000          237,247  

Bank of Guiyang Co. Ltd., Class A

   Banks     14,500          11,634  

Bank of Hangzhou Co. Ltd., Class A

   Banks     20,300          34,320  

Bank of Jiangsu Co. Ltd., Class A

   Banks     21,100          21,569  

Bank of Nanjing Co. Ltd., Class A

   Banks     37,700          49,188  

Bank of Ningbo Co. Ltd., Class A

   Banks     23,220          92,342  

Bank of Qingdao Co. Ltd., Class A

   Banks     17,400          8,311  

Bank of Shanghai Co. Ltd., Class A

   Banks     49,300          43,002  

Bank of Suzhou Co. Ltd., Class A, A

   Banks     6,320          6,405  

bBank of Zhengzhou Co. Ltd., Class A

   Banks     21,980          7,266  

Baoshan Iron & Steel Co. Ltd., Class A

   Metals & Mining     66,700          60,607  

BBMG Corp., Class A

   Construction Materials     37,700          13,450  

BBMG Corp., Class H

   Construction Materials     116,000          15,073  

bBeiGene Ltd.

   Biotechnology     31,900          525,845  

Beijing Capital Development Co. Ltd., Class A

   Real Estate Management & Development     8,700          5,777  

Beijing Capital Eco-Environment Protection Group Co. Ltd., Class A

   Water Utilities     29,000          12,542  

bBeijing Capital International Airport Co. Ltd., Class H

   Transportation Infrastructure     116,000          85,412  

bBeijing Dabeinong Technology Group Co. Ltd., Class A

   Food Products     14,500          16,490  

Beijing Easpring Material Technology Co. Ltd., Class A

   Chemicals     2,900          24,290  

bBeijing E-Hualu Information Technology Co. Ltd., Class A

   Software     2,900          15,975  

Beijing Enlight Media Co. Ltd., Class A

   Entertainment     11,600          15,017  

Beijing Enterprises Holdings Ltd., Class H

   Industrial Conglomerates     29,000          104,364  

Beijing Haixin Energy Technology Co. Ltd., Class A

   Chemicals     9,900          5,766  

bBeijing Jetsen Technology Co. Ltd., Class A, A

   Software     8,700          8,501  

Beijing Jingneng Clean Energy Co. Ltd., Class H

   Independent Power Producers & Energy Traders     58,000          13,817  

Beijing Kingsoft Office Software, Inc., Class A

   Software     1,682          115,851  

Beijing New Building Materials PLC, Class A

   Building Products     5,800          22,669  

bBeijing Orient National Communication Science & Technology Co. Ltd., Class A

   Software     5,800          12,728  

Beijing Originwater Technology Co. Ltd., Class A

   Commercial Services & Supplies     14,535          10,689  

Beijing Shiji Information Technology Co. Ltd., Class A

   Software     6,480          24,213  

Beijing Shougang Co. Ltd., Class A

   Metals & Mining     29,000          16,089  

Beijing Shunxin Agriculture Co. Ltd., Class A

   Beverages     2,900          14,991  

Beijing Sinnet Technology Co. Ltd., Class A

   IT Services     6,000          11,716  

Beijing Tongrentang Co. Ltd., Class A

   Pharmaceuticals     5,800          46,570  

Beijing Ultrapower Software Co. Ltd., Class A

   IT Services     8,700          11,934  

Beijing United Information Technology Co. Ltd., Class A, A

   Trading Companies & Distributors     1,740          21,017  

Beijing Wantai Biological Pharmacy Enterprise Co. Ltd., Class A

   Biotechnology     1,015          17,167  

Beijing Yanjing Brewery Co. Ltd., Class A

   Beverages     11,600          23,665  

Beijing Yuanliu Hongyuan Electronic Technology Co. Ltd., Class A, A

   Electronic Equipment, Instruments & Components     800          8,965  

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

   Electronic Equipment, Instruments & Components     3,260          6,219  

Bethel Automotive Safety Systems Co. Ltd., Class A

   Automobile Components     1,600          16,593  

bBilibili, Inc., Class Z

   Entertainment     12,180          294,184  

Bloomage Biotechnology Corp. Ltd., Class A, A

   Biotechnology     1,118          18,462  

 

           
186             

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  franklintempleton.com


FRANKLIN TEMPLETON ETF TRUST

SCHEDULE OF INVESTMENTS

 

Franklin FTSE China ETF (continued)

 

      Industry       Shares                Value  

Common Stocks (continued)

         

China (continued)

         

aBlue Moon Group Holdings Ltd.

   Household Products     43,500        $ 27,763  

Bluefocus Intelligent Communications Group Co. Ltd., Class A

   Media     11,600          16,148  

Bluestar Adisseo Co., Class A

   Chemicals     2,900          3,725  

BOC International China Co. Ltd., Class A

   Capital Markets     2,900          4,535  

BOE Technology Group Co. Ltd., Class A

   Electronic Equipment, Instruments & Components     139,200          89,999  

BOE Technology Group Co. Ltd., Class B

   Electronic Equipment, Instruments & Components     34,800          15,693  

Bright Dairy & Food Co. Ltd., Class A

   Food Products     5,800          9,029  

BTG Hotels Group Co. Ltd., Class A

   Hotels, Restaurants & Leisure     2,900          9,856  

BYD Co. Ltd., Class A

   Automobiles     6,800          253,511  

BYD Co. Ltd., Class H

   Automobiles     49,236          1,441,338  

BYD Electronic International Co. Ltd.

   Communications Equipment     39,500          122,778  

By-health Co. Ltd., Class A

   Personal Products     5,800          18,032  

C&D International Investment Group Ltd.

   Real Estate Management & Development     37,000          121,370  

C&S Paper Co. Ltd., Class A

   Household Products     5,800          10,219  

Caida Securities Co. Ltd., Class A

   Capital Markets     5,800          6,689  

Caitong Securities Co. Ltd., Class A

   Capital Markets     17,460          19,094  

Camel Group Co. Ltd., Class A

   Electrical Equipment     5,800          8,319  

Canmax Technologies Co. Ltd., Class A, A

   Chemicals     2,900          21,617  

CanSino Biologics, Inc., Class A

   Pharmaceuticals     240          3,973  

aCanSino Biologics, Inc., Class H

   Pharmaceuticals     4,900          26,217  

CECEP Solar Energy Co. Ltd., Class A

   Semiconductors & Semiconductor Equipment     14,500          14,463  

CECEP Wind-Power Corp., Class A

   Independent Power Producers & Energy Traders     26,380          14,866  

Central China Securities Co. Ltd., Class A

   Capital Markets     11,600          6,284  

Central China Securities Co. Ltd., Class H

   Capital Markets     58,000          8,571  

CETC Cyberspace Security Technology Co. Ltd., Class A

   Electronic Equipment, Instruments & Components     2,900          16,448  

CGN Power Co. Ltd., Class A

   Independent Power Producers & Energy Traders     31,900          13,332  

aCGN Power Co. Ltd., Class H

   Independent Power Producers & Energy Traders     551,000          131,960  

Changchun High & New Technology Industry Group, Inc., Class A

   Pharmaceuticals     1,500          35,669  

Changjiang Securities Co. Ltd., Class A

   Capital Markets     23,200          18,817  

Changzhou Xingyu Automotive Lighting Systems Co. Ltd., Class A

   Automobile Components     1,000          17,460  

Chaozhou Three-Circle Group Co. Ltd., Class A

   Electronic Equipment, Instruments & Components     5,800          25,422  

Chengdu Xingrong Environment Co. Ltd., Class A

   Water Utilities     11,600          8,615  

Chengxin Lithium Group Co. Ltd., Class A, A

   Paper & Forest Products     2,900          14,582  

China Baoan Group Co. Ltd., Class A

   Industrial Conglomerates     8,700          14,404  

aChina Bohai Bank Co. Ltd., Class H

   Banks     159,500          27,227  

China Cinda Asset Management Co. Ltd., Class H

   Capital Markets     464,000          58,518  

China CITIC Bank Corp. Ltd., Class A

   Banks     37,700          29,810  

China CITIC Bank Corp. Ltd., Class H

   Banks     464,000          233,479  

China Coal Energy Co. Ltd., Class A

   Oil, Gas & Consumable Fuels     17,400          20,017  

China Coal Energy Co. Ltd., Class H

   Oil, Gas & Consumable Fuels     116,000          87,924  

China Communications Services Corp. Ltd., Class H

   Diversified Telecommunication Services     126,000          61,957  

China Conch Venture Holdings Ltd.

   Construction & Engineering     77,280          134,872  

China Construction Bank Corp., Class A

   Banks     31,900          27,592  

China Construction Bank Corp., Class H

   Banks     4,756,000          3,083,846  

China CSSC Holdings Ltd., Class A

   Machinery     17,400          59,290  

aChina East Education Holdings Ltd., Class A

   Diversified Consumer Services     14,500          8,571  

bChina Eastern Airlines Corp. Ltd., Class A

   Airlines     49,300          36,972  

bChina Eastern Airlines Corp. Ltd., Class H

   Airlines     58,000          22,905  

China Energy Engineering Corp. Ltd.

   Construction & Engineering     124,700          43,762  

China Energy Engineering Corp. Ltd., Class H

   Construction & Engineering     232,000          28,963  

 

           
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Annual Report

             187


FRANKLIN TEMPLETON ETF TRUST

SCHEDULE OF INVESTMENTS

 

Franklin FTSE China ETF (continued)

 

      Industry       Shares                Value  

Common Stocks (continued)

         

China (continued)

         

China Everbright Bank Co. Ltd., Class A

   Banks     168,200        $ 73,724  

China Everbright Bank Co. Ltd., Class H

   Banks     145,000          43,962  

bChina Evergrande Group, Class A

   Real Estate Management & Development     182,000          17,798  

aChina Feihe Ltd.

   Food Products     203,000          152,316  

China Galaxy Securities Co. Ltd., Class A

   Capital Markets     8,700          12,732  

China Galaxy Securities Co. Ltd., Class H

   Capital Markets     188,500          94,851  

China Great Wall Securities Co. Ltd., Class A

   Capital Markets     8,700          10,502  

China Greatwall Technology Group Co. Ltd., Class A

   Technology Hardware, Storage & Peripherals     11,600          20,912  

China Green Electricity Investment of Tianjin Co. Ltd., Class A, A

   Real Estate Management & Development     5,800          9,687  

China Hongqiao Group Ltd.

   Metals & Mining     116,000          111,124  

a,bChina Huarong Asset Management Co. Ltd., Class H

   Capital Markets     783,000          44,387  

China International Capital Corp. Ltd., Class A

   Capital Markets     2,900          16,419  

aChina International Capital Corp. Ltd., Class H

   Capital Markets     81,200          162,815  

China International Marine Containers Group Co. Ltd., Class A

   Machinery     9,150          10,140  

China International Marine Containers Group Co. Ltd., Class H

   Machinery     29,000          19,949  

China Jinmao Holdings Group Ltd., Class A

   Real Estate Management & Development     348,000          67,827  

China Jushi Co. Ltd., Class A

   Construction Materials     15,787          33,586  

China Lesso Group Holdings Ltd.

   Building Products     58,000          51,868  

China Life Insurance Co. Ltd., Class H

   Insurance     377,000          619,533  

a,bChina Literature Ltd., Class A

   Media     17,400          89,771  

China Longyuan Power Group Corp. Ltd., Class H

   Independent Power Producers & Energy Traders     174,000          198,827  

China Medical System Holdings Ltd.

   Pharmaceuticals     65,000          102,676  

China Meheco Co. Ltd., Class A

   Trading Companies & Distributors     5,840          11,668  

China Meidong Auto Holdings Ltd.

   Specialty Retail     22,000          47,475  

China Merchants Bank Co. Ltd., Class A

   Banks     75,400          376,270  

China Merchants Bank Co. Ltd., Class H

   Banks     196,000          1,001,229  

China Merchants Energy Shipping Co. Ltd., Class A

   Oil, Gas & Consumable Fuels     29,000          29,603  

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

   Transportation Infrastructure     5,800          7,154  

China Merchants Port Holdings Co. Ltd.

   Transportation Infrastructure     77,300          118,560  

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

   Real Estate Management & Development     2,900          6,453  

China Merchants Securities Co. Ltd., Class A

   Capital Markets     26,100          52,411  

aChina Merchants Securities Co. Ltd., Class H

   Capital Markets     23,200          22,225  

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

   Real Estate Management & Development     26,100          51,764  

China Minsheng Banking Corp. Ltd., Class A

   Banks     121,800          61,190  

China Minsheng Banking Corp. Ltd., Class H

   Banks     319,000          109,314  

China National Accord Medicines Corp. Ltd., Class B

   Health Care Providers & Services     2,900          6,384  

China National Building Material Co. Ltd., Class H

   Construction Materials     232,000          190,330  

China National Chemical Engineering Co. Ltd., Class A

   Construction & Engineering     23,200          31,351  

China National Nuclear Power Co. Ltd., Class A

   Independent Power Producers & Energy Traders     58,000          53,969  

China National Software & Service Co. Ltd., Class A

   Software     2,900          29,066  

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

   Metals & Mining     14,500          55,088  

China Oilfield Services Ltd., Class A

   Energy Equipment & Services     5,800          12,314  

 

           
188             

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  franklintempleton.com


FRANKLIN TEMPLETON ETF TRUST

SCHEDULE OF INVESTMENTS

 

Franklin FTSE China ETF (continued)

 

      Industry       Shares                Value  

Common Stocks (continued)

         

China (continued)

         

China Oilfield Services Ltd., Class H

   Energy Equipment & Services     92,000        $ 94,345  

China Overseas Land & Investment Ltd., Class A

   Real Estate Management & Development     188,500          455,284  

China Pacific Insurance Group Co. Ltd., Class A

   Insurance     23,200          87,566  

China Pacific Insurance Group Co. Ltd., Class H

   Insurance     133,400          354,319  

China Petroleum & Chemical Corp., Class A

   Oil, Gas & Consumable Fuels     121,800          99,678  

China Petroleum & Chemical Corp., Class H

   Oil, Gas & Consumable Fuels     1,276,000          754,226  

China Railway Group Ltd., Class A

   Construction & Engineering     72,500          72,634  

China Railway Group Ltd., Class H

   Construction & Engineering     203,000          123,870  

China Railway Signal & Communication Corp. Ltd., Class A

   Electronic Equipment, Instruments & Components     25,114          19,821  

aChina Railway Signal & Communication Corp. Ltd., Class H

   Electronic Equipment, Instruments & Components     87,000          32,029  

bChina Rare Earth Resources & Technology Co. Ltd., Class A, A

   Metals & Mining     2,900          14,261  

China Reinsurance Group Corp., Class H

   Insurance     348,000          24,382  

China Resources Boya Bio-pharmaceutical Group Co. Ltd., Class A, A

   Biotechnology     2,900          14,751  

China Resources Cement Holdings Ltd.

   Construction Materials     116,000          56,892  

China Resources Double Crane Pharmaceutical Co. Ltd., Class A

   Pharmaceuticals     2,900          7,280  

China Resources Microelectronics Ltd., Class A, A

   Semiconductors & Semiconductor Equipment     3,432          30,215  

aChina Resources Mixc Lifestyle Services Ltd.

   Real Estate Management & Development     29,000          152,389  

aChina Resources Pharmaceutical Group Ltd., Class A

   Pharmaceuticals     87,000          68,935  

China Resources Power Holdings Co. Ltd.

   Independent Power Producers & Energy Traders     96,100          204,688  

China Resources Sanjiu Medical & Pharmaceutical Co. Ltd., Class A

   Pharmaceuticals     2,900          24,261  

bChina Ruyi Holdings Ltd.

   Entertainment     232,000          60,586  

China Shenhua Energy Co. Ltd., Class A

   Oil, Gas & Consumable Fuels     26,100          107,063  

China Shenhua Energy Co. Ltd., Class H

   Oil, Gas & Consumable Fuels     172,350          542,302  

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

   Media     5,800          9,831  

bChina Southern Airlines Co. Ltd., Class A

   Airlines     43,500          49,851  

bChina Southern Airlines Co. Ltd., Class H

   Airlines     78,000          55,644  

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

   .Commercial Services & Supplies     11,600          13,108  

China State Construction Engineering Corp. Ltd., Class A

   Construction & Engineering     150,800          127,363  

China Suntien Green Energy Corp. Ltd., Class H

   Oil, Gas & Consumable Fuels     87,000          38,014  

China Taiping Insurance Holdings Co. Ltd.

   Insurance     75,400          80,107  

China Three Gorges Renewables Group Co. Ltd., Class A, A

   Independent Power Producers & Energy Traders     89,900          71,739  

ChinaTourism Group Duty Free Corp. Ltd.,Class A

   Hotels, Restaurants & Leisure     7,100          189,449  

a,bChinaTourism Group Duty Free Corp. Ltd.,Class H

   Specialty Retail     3,700          91,487  

aChina Tower Corp. Ltd., Class H

   Diversified Telecommunication Services     2,378,000          287,785  

bChina TransInfo Technology Co. Ltd., Class A

   IT Services     2,900          5,680  

China United Network Communications Ltd., Class A

   Wireless Telecommunication Services     98,600          77,820  

China Vanke Co. Ltd., Class A

   Real Estate Management & Development     34,800          77,229  

China Vanke Co. Ltd., Class H

   Real Estate Management & Development     113,100          178,368  

China World Trade Center Co. Ltd., Class A, A

   Real Estate Management & Development     2,900          7,196  

China Yangtze Power Co. Ltd., Class A

   Independent Power Producers & Energy Traders     81,200          251,263  

 

           
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Annual Report

             189


FRANKLIN TEMPLETON ETF TRUST

SCHEDULE OF INVESTMENTS

 

Franklin FTSE China ETF (continued)

 

      Industry       Shares                Value  

Common Stocks (continued)

         

China (continued)

         

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

   Electronic Equipment, Instruments & Components     1,800        $ 23,606  

bChina Zheshang Bank Co. Ltd., Class A

   Banks     29,000          12,078  

Chinalin Securities Co. Ltd., Class A, A

   Capital Markets     2,900          6,195  

Chinese Universe Publishing & Media Group Co. Ltd., Class A

   Media     5,800          10,473  

Chongqing Brewery Co. Ltd., Class A

   Beverages     1,700          30,944  

Chongqing Changan Automobile Co. Ltd., Class A

   Automobiles     30,144          52,323  

Chongqing Changan Automobile Co. Ltd., Class B

   Automobiles     81,772          35,938  

Chongqing Fuling Zhacai Group Co. Ltd., Class A

   Food Products     2,900          10,697  

Chongqing Rural Commercial Bank Co. Ltd., Class A

   Banks     17,400          9,299  

Chongqing Rural Commercial Bank Co. Ltd., Class H

   Banks     116,000          42,263  

Chongqing Water Group Co. Ltd., Class A

   Water Utilities     8,700          6,803  

Chongqing Zhifei Biological Products Co. Ltd., Class A

   Biotechnology     5,800          69,197  

cCIFI Holdings Group Co. Ltd., Class A

   Real Estate Management & Development     266,320          25,784  

CITIC Ltd., Class B

   Industrial Conglomerates     261,000          305,222  

Citic Pacific Special Steel Group Co. Ltd., Class A

   Metals & Mining     18,280          47,328  

CITIC Securities Co. Ltd., Class A

   Capital Markets     43,500          129,728  

CITIC Securities Co. Ltd., Class H

   Capital Markets     116,200          248,092  

CMOC Group Ltd., Class A

   Metals & Mining     31,900          27,825  

CMOC Group Ltd., Class H

   Metals & Mining     213,000          128,886  

CMST Development Co. Ltd., Class A

   Air Freight & Logistics     8,700          6,689  

CNGR Advanced Material Co. Ltd., Class A

   Chemicals     2,900          30,257  

CNOOC Energy Technology & Services Ltd., Class A

   Energy Equipment & Services     20,300          9,755  

CNPC Capital Co. Ltd., Class A

   Machinery     17,400          17,686  

Contemporary Amperex Technology Co. Ltd., Class A

   Electrical Equipment     8,900          526,240  

COSCO SHIPPING Development Co. Ltd., Class A

   Marine Transportation     40,600          14,603  

COSCO SHIPPING Development Co. Ltd., Class H

   Marine Transportation     174,000          23,052  

bCOSCO SHIPPING Energy Transportation Co. Ltd., Class A

   Marine Transportation     11,600          22,871  

bCOSCO SHIPPING Energy Transportation Co. Ltd., Class H

   Marine Transportation     66,000          68,102  

COSCO SHIPPING Holdings Co. Ltd., Class A

   Marine Transportation     45,480          73,048  

COSCO SHIPPING Holdings Co. Ltd., Class H

   Marine Transportation     159,500          179,413  

Country Garden Holdings Co. Ltd.

   Real Estate Management & Development     667,000          187,781  

Country Garden Services Holdings Co. Ltd.

   Commercial Services & Supplies     107,300          185,623  

CRRC Corp. Ltd., Class A

   Machinery     89,900          80,117  

CRRC Corp. Ltd., Class H

   Machinery     203,000          110,681  

CSC Financial Co. Ltd., Class A

   Capital Markets     17,400          64,940  

aCSC Financial Co. Ltd., Class H

   Capital Markets     43,500          42,392  

CSG Holding Co. Ltd., Class A

   Construction Materials     5,800          5,667  

CSG Holding Co. Ltd., Class B

   Construction Materials     60,900          23,041  

CSPC Pharmaceutical Group Ltd., Class A

   Pharmaceuticals     428,000          420,915  

Daan Gene Co. Ltd., Class A

   Biotechnology     4,140          9,712  

bDada Nexus Ltd., Class A, ADR

   Consumer Staples Distribution & Retail     3,770          31,932  

aDali Foods Group Co. Ltd.

   Food Products     101,500          42,410  

 

           
190             

Annual Report

  franklintempleton.com


FRANKLIN TEMPLETON ETF TRUST

SCHEDULE OF INVESTMENTS

 

Franklin FTSE China ETF (continued)

 

      Industry       Shares                Value  

Common Stocks (continued)

         

China (continued)

         

Daqin Railway Co. Ltd., Class A

   Ground Transportation     52,200        $ 54,653  

bDaqo New Energy Corp., ADR

   Semiconductors & Semiconductor Equipment     2,842          133,119  

DaShenLin Pharmaceutical Group Co. Ltd., Class A

   Consumer Staples Distribution & Retail     1,152          6,245  

bDatang International Power Generation Co. Ltd., Class A

   Independent Power Producers & Energy Traders     26,100          11,516  

bDatang International Power Generation Co. Ltd., Class H

   Independent Power Producers & Energy Traders     116,000          20,984  

DHC Software Co. Ltd., Class A

   IT Services     11,600          14,020  

Dian Diagnostics Group Co. Ltd., Class A

   Health Care Providers & Services     2,900          12,099  

Do-Fluoride New Materials Co. Ltd., Class A

   Chemicals     2,900          14,024  

Dong-E-E-Jiao Co. Ltd., Class A

   Pharmaceuticals     2,900          22,377  

Dongfang Electric Corp. Ltd., Class A

   Electrical Equipment     8,700          24,020  

Dongfang Electric Corp. Ltd., Class H

   Electrical Equipment     17,400          28,106  

Dongfeng Motor Group Co. Ltd., Class H

   Automobiles     153,900          72,147  

Dongxing Securities Co. Ltd., Class A

   Capital Markets     11,600          14,189  

a,bEast Buy Holding Ltd.

   Diversified Consumer Services     14,500          62,526  

East Group Co. Ltd., Class A

   Electrical Equipment     8,700          9,856  

East Money Information Co. Ltd., Class A

   Capital Markets     46,480          135,569  

Eastern Air Logistics Co. Ltd., Class A

   Air Freight & Logistics     5,800          12,846  

Ecovacs Robotics Co. Ltd., Class A

   Household Durables     2,200          26,462  

ENN Energy Holdings Ltd.

   Gas Utilities     38,200          523,611  

ENN Natural Gas Co. Ltd., Class A

   Chemicals     8,700          26,414  

Eternal Asia Supply Chain Management Ltd., Class A

   Commercial Services & Supplies     11,600          9,966  

Eve Energy Co. Ltd., Class A

   Electrical Equipment     6,800          69,017  

Everbright Securities Co. Ltd., Class A

   Capital Markets     14,500          32,179  

aEverbright Securities Co. Ltd., Class H

   Capital Markets     11,600          7,876  

a,bEvergrande Property Services Group Ltd.

   Real Estate Management & Development     221,000          29,956  

bFangda Carbon New Material Co. Ltd., Class A

   Electrical Equipment     14,500          13,598  

FAW Jiefang Group Co. Ltd.

   Automobiles     5,800          7,010  

Fiberhome Telecommunication Technologies Co. Ltd., Class A

   Communications Equipment     5,800          16,554  

Financial Street Holdings Co. Ltd., Class A

   Real Estate Management & Development     11,600          8,480  

First Capital Securities Co. Ltd., Class A

   Capital Markets     17,400          15,126  

Flat Glass Group Co. Ltd., Class A

   Semiconductors & Semiconductor Equipment     2,900          14,489  

Flat Glass Group Co. Ltd., Class H

   Semiconductors & Semiconductor Equipment     29,000          83,122  

Focus Media Information Technology Co. Ltd., Class A

   Technology Hardware, Storage & Peripherals     55,100          55,122  

Foshan Haitian Flavouring & Food Co. Ltd., Class A

   Food Products     15,061          167,863  

Fosun International Ltd.

   Industrial Conglomerates     116,000          85,116  

Foxconn Industrial Internet Co. Ltd., Class A

   Electronic Equipment, Instruments & Components     46,400          116,350  

Fujian Funeng Co. Ltd., Class A

   Independent Power Producers & Energy Traders     5,800          10,355  

Fujian Sunner Development Co. Ltd., Class A

   Food Products     5,800          20,827  

bFull Truck Alliance Co. Ltd., ADR

   Ground Transportation     32,190          244,966  

Fuyao Glass Industry Group Co. Ltd., Class A

   Automobile Components     5,800          29,358  

aFuyao Glass Industry Group Co. Ltd., Class H

   Automobile Components     34,800          151,614  

Ganfeng Lithium Group Co. Ltd., Class A

   Metals & Mining     6,060          58,656  

aGanfeng Lithium Group Co. Ltd., Class H

   Metals & Mining     16,860          104,812  

G-bits Network Technology Xiamen Co. Ltd., Class A

   Entertainment     200          13,885  

bGCL System Integration Technology Co. Ltd., Class A

   Semiconductors & Semiconductor Equipment     23,200          10,540  

bGCL Technology Holdings Ltd.

   Semiconductors & Semiconductor Equipment     1,044,000          269,979  

bGD Power Development Co. Ltd., Class A

   Independent Power Producers & Energy Traders     63,800          35,304  

bGDS Holdings Ltd., Class A

   IT Services     49,300          119,326  

 

           
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FRANKLIN TEMPLETON ETF TRUST

SCHEDULE OF INVESTMENTS

 

Franklin FTSE China ETF (continued)

 

      Industry       Shares                Value  

Common Stocks (continued)

         

China (continued)

         

GEM Co. Ltd., Class A

   Metals & Mining     20,300        $ 22,082  

Gemdale Corp., Class A

   Real Estate Management & Development     17,400          21,283  

bGenscript Biotech Corp.

   Life Sciences Tools & Services     49,307          105,524  

GF Securities Co. Ltd., Class A

   Capital Markets     20,300          46,617  

GF Securities Co. Ltd., Class H

   Capital Markets     52,200          73,945  

GigaDevice Semiconductor, Inc., Class A

   Semiconductors & Semiconductor Equipment     2,248          39,936  

bGinlong Technologies Co. Ltd., Class A

   Electrical Equipment     1,350          26,260  

Glarun Technology Co. Ltd., Class A

   Communications Equipment     5,800          13,784  

GoerTek, Inc., Class A

   Electronic Equipment, Instruments & Components     11,600          36,148  

GoodWe Technologies Co. Ltd., Class A, A

   Electrical Equipment     364          15,342  

Gotion High-tech Co. Ltd., Class A

   Electrical Equipment     5,800          25,177  

bGrandjoy Holdings Group Co. Ltd., Class A

   Real Estate Management & Development     17,400          9,451  

Great Wall Motor Co. Ltd., Class A

   Automobiles     8,700          35,384  

Great Wall Motor Co. Ltd., Class H

   Automobiles     130,500          161,090  

Gree Electric Appliances, Inc. of Zhuhai, Class A

   Household Durables     2,900          15,519  

Greentown China Holdings Ltd.

   Real Estate Management & Development     43,500          56,412  

GRG Banking Equipment Co. Ltd., Class A

   Technology Hardware, Storage & Peripherals     8,700          15,532  

Guangdong Baolihua New Energy Stock Co. Ltd., Class A

   Independent Power Producers & Energy Traders     8,700          7,665  

bGuangdong Electric Power Development Co. Ltd., Class A, A

   Independent Power Producers & Energy Traders     8,700          8,070  

bGuangdong Electric Power Development Co. Ltd., Class B

   Independent Power Producers & Energy Traders     46,400          12,708  

Guangdong Golden Dragon Development, Inc., Class A

   Capital Markets     2,900          5,836  

Guangdong Haid Group Co. Ltd., Class A

   Food Products     6,000          50,963  

Guangdong HEC Technology Holding Co. Ltd., Class A

   Metals & Mining     11,600          15,118  

Guangdong Kinlong Hardware Products Co. Ltd., Class A

   Building Products     700          8,196  

Guangdong Xinbao Electrical Appliances Holdings Co. Ltd., Class A

   Household Durables     2,900          7,196  

Guanghui Energy Co. Ltd., Class A

   Oil, Gas & Consumable Fuels     23,200          31,250  

bGuangshen Railway Co. Ltd., Class A

   Ground Transportation     14,500          5,089  

bGuangshen Railway Co. Ltd., Class H

   Ground Transportation     58,000          10,713  

Guangxi Guiguan Electric Power Co. Ltd., Class A

   Independent Power Producers & Energy Traders     14,500          11,740  

Guangxi Liugong Machinery Co. Ltd., Class A

   Machinery     5,800          5,718  

Guangzhou Automobile Group Co. Ltd., Class A

   Automobiles     11,600          18,817  

Guangzhou Automobile Group Co. Ltd., Class H

   Automobiles     162,000          102,154  

Guangzhou Baiyunshan Pharmaceutical Holdings Co. Ltd., Class A

   Pharmaceuticals     5,800          27,939  

Guangzhou Baiyunshan Pharmaceutical Holdings Co. Ltd., Class H

   Pharmaceuticals     10,500          32,370  

Guangzhou Haige Communications Group, Inc. Co., Class A

   Communications Equipment     8,700          13,302  

Guangzhou Kingmed Diagnostics Group Co. Ltd., Class A

   Health Care Providers & Services     2,900          37,204  

Guangzhou Shiyuan Electronic Technology Co. Ltd., Class A

   Electronic Equipment, Instruments & Components     700          7,630  

Guangzhou Tinci Materials Technology Co. Ltd., Class A

   Chemicals     7,460          45,581  

Guangzhou Wondfo Biotech Co. Ltd., Class A

   Health Care Equipment & Supplies     1,300          5,889  

Guangzhou Yuexiu Capital Holdings Group Co. Ltd., Class A, A

   Capital Markets     10,093          9,685  

Guangzhou Zhujiang Brewery Co. Ltd., Class A

   Beverages     5,800          7,998  

 

           
192             

Annual Report

  franklintempleton.com


FRANKLIN TEMPLETON ETF TRUST

SCHEDULE OF INVESTMENTS

 

Franklin FTSE China ETF (continued)

 

      Industry       Shares                Value  

Common Stocks (continued)

         

China (continued)

         

bGuizhou Bailing Group Pharmaceutical Co. Ltd., Class A, A

   Pharmaceuticals     5,800        $ 6,807  

Guizhou Panjiang Refined Coal Co. Ltd., Class A

   Oil, Gas & Consumable Fuels     5,800          6,106  

Guizhou Xinbang Pharmaceutical Co. Ltd., Class A

   Pharmaceuticals     8,700          6,372  

Guolian Securities Co. Ltd., Class A

   Capital Markets     8,700          13,416  

Guosen Securities Co. Ltd., Class A

   Capital Markets     20,300          27,698  

bGuosheng Financial Holding, Inc., Class A

   Electrical Equipment     8,700          11,047  

Guotai Junan Securities Co. Ltd., Class A

   Capital Markets     26,100          54,577  

aGuotai Junan Securities Co. Ltd., Class H

   Capital Markets     34,800          42,292  

Guoyuan Securities Co. Ltd., Class A

   Capital Markets     17,400          17,128  

bH World Group Ltd., ADR

   Hotels, Restaurants & Leisure     10,788          528,396  

a,bHaidilao International Holding Ltd.

   Hotels, Restaurants & Leisure     77,000          208,441  

Haier Smart Home Co. Ltd., Class A

   Household Durables     23,200          76,620  

Haier Smart Home Co. Ltd., Class H

   Household Durables     116,000          364,996  

Haitian International Holdings Ltd.

   Machinery     30,000          77,580  

Haitong Securities Co. Ltd., Class A

   Capital Markets     34,800          44,645  

Haitong Securities Co. Ltd., Class H

   Capital Markets     174,000          108,612  

bHang Zhou Great Star Industrial Co. Ltd., Class A

   Household Durables     2,900          7,990  

Hangzhou Binjiang Real Estate Group Co. Ltd., Class A

   Real Estate Management & Development     11,600          15,456  

Hangzhou Chang Chuan Technology Co. Ltd., Class A, A

   Semiconductors & Semiconductor Equipment     2,900          20,422  

Hangzhou First Applied Material Co. Ltd., Class A

   Semiconductors & Semiconductor Equipment     2,440          20,874  

Hangzhou Lion Electronics Co. Ltd., Class A, A

   Semiconductors & Semiconductor Equipment     2,900          23,006  

Hangzhou Oxygen Plant Group Co. Ltd., Class A

   Machinery     2,900          14,054  

Hangzhou Robam Appliances Co. Ltd., Class A

   Household Durables     2,900          11,976  

Hangzhou Silan Microelectronics Co. Ltd., Class A

   Semiconductors & Semiconductor Equipment     5,800          31,258  

Hangzhou Tigermed Consulting Co. Ltd., Class A

   Life Sciences Tools & Services     2,900          40,417  

aHangzhou Tigermed Consulting Co. Ltd., Class H

   Life Sciences Tools & Services     5,800          54,454  

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

   Machinery     2,900          12,817  

aHansoh Pharmaceutical Group Co. Ltd.

   Pharmaceuticals     58,000          100,780  

Haohua Chemical Science & Technology Co. Ltd., Class A, A

   Chemicals     2,800          18,205  

Harbin Boshi Automation Co. Ltd., Class A

   Machinery     2,900          6,904  

Hefei Meiya Optoelectronic Technology, Inc., Class A

   Machinery     3,680          17,309  

Heilongjiang Agriculture Co. Ltd., Class A

   Food Products     5,800          11,334  

Henan Shenhuo Coal & Power Co. Ltd., Class A, A

   Metals & Mining     8,700          22,449  

Henan Shuanghui Investment & Development Co. Ltd., Class A

   Food Products     11,600          43,817  

Hengan International Group Co. Ltd.

   Personal Products     35,700          165,085  

Hengdian Group DMEGC Magnetics Co. Ltd., Class A

   Electronic Equipment, Instruments & Components     5,800          17,365  

Hengli Petrochemical Co. Ltd., Class A

   Chemicals     11,600          27,364  

Hengtong Optic-electric Co. Ltd., Class A

   Communications Equipment     8,700          19,130  

Hengyi Petrochemical Co. Ltd., Class A

   Chemicals     14,500          17,145  

Hesteel Co. Ltd., Class A

   Metals & Mining     40,600          13,775  

 

           
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FRANKLIN TEMPLETON ETF TRUST

SCHEDULE OF INVESTMENTS

 

Franklin FTSE China ETF (continued)

 

      Industry       Shares                Value  

Common Stocks (continued)

         

China (continued)

         

Hithink RoyalFlush Information Network Co. Ltd., Class A

   Capital Markets     2,900        $ 86,274  

bHolitech Technology Co. Ltd., Class A

   Electronic Equipment, Instruments & Components     11,600          5,203  

Hongfa Technology Co. Ltd., Class A

   Electrical Equipment     1,040          4,936  

Hopson Development Holdings Ltd.

   Real Estate Management & Development     43,028          39,356  

Hoshine Silicon Industry Co. Ltd., Class A

   Chemicals     2,900          35,054  

a,bHua Hong Semiconductor Ltd.

   Semiconductors & Semiconductor Equipment     20,500          90,749  

Huadian Power International Corp. Ltd., Class A

   Independent Power Producers & Energy Traders     26,100          22,006  

Huadian Power International Corp. Ltd., Class H

   Independent Power Producers & Energy Traders     58,000          23,791  

Huadong Medicine Co. Ltd., Class A

   Health Care Providers & Services     5,800          39,138  

Huafon Chemical Co. Ltd., Class A

   Chemicals     14,500          15,751  

Huagong Tech Co. Ltd., Class A

   Electronic Equipment, Instruments & Components     2,900          10,730  

Huaibei Mining Holdings Co. Ltd., Class A

   Metals & Mining     8,700          17,179  

Hualan Biological Engineering, Inc., Class A

   Biotechnology     6,460          20,535  

Huaneng Lancang River Hydropower, Inc., Class A

   Independent Power Producers & Energy Traders     23,200          23,885  

bHuaneng Power International, Inc., Class A

   Independent Power Producers & Energy Traders     26,100          32,571  

bHuaneng Power International, Inc., Class H

   Independent Power Producers & Energy Traders     232,000          121,764  

Huapont Life Sciences Co. Ltd., Class A

   Chemicals     5,800          4,747  

Huatai Securities Co. Ltd., Class A

   Capital Markets     26,100          48,534  

aHuatai Securities Co. Ltd., Class H

   Capital Markets     81,200          92,786  

Huaxi Securities Co. Ltd., Class A

   Capital Markets     8,700          10,426  

Huaxia Bank Co. Ltd., Class A

   Banks     55,100          43,167  

Huaxin Cement Co. Ltd., Class A

   Construction Materials     5,800          13,133  

Huaxin Cement Co. Ltd., Class H, H

   Construction Materials     12,800          13,925  

Huayu Automotive Systems Co. Ltd., Class A

   Automobile Components     11,600          28,277  

Hubei Biocause Pharmaceutical Co. Ltd., Class A

   Insurance     14,500          7,094  

Hubei Energy Group Co. Ltd., Class A

   Independent Power Producers & Energy Traders     26,100          16,077  

Hubei Xingfa Chemicals Group Co. Ltd., Class A, A

   Chemicals     2,900          12,859  

Huizhou Desay Sv Automotive Co. Ltd., Class A

   Household Durables     1,700          27,466  

Humanwell Healthcare Group Co. Ltd., Class A

   Pharmaceuticals     5,800          22,618  

Hunan Gold Corp. Ltd., Class A

   Metals & Mining     2,900          6,398  

Hunan Valin Steel Co. Ltd., Class A

   Metals & Mining     26,100          21,169  

Hundsun Technologies, Inc., Class A

   Software     6,906          53,520  

a,bHygeia Healthcare Holdings Co. Ltd.

   Health Care Providers & Services     17,400          123,685  

Iflytek Co. Ltd., Class A

   Software     8,700          80,674  

Imeik Technology Development Co. Ltd., Class A, A

   Biotechnology     600          48,818  

Industrial & Commercial Bank of China Ltd., Class A

   Banks     278,400          180,808  

Industrial & Commercial Bank of China Ltd., Class H

   Banks     4,031,000          2,146,457  

Industrial Bank Co. Ltd., Class A

   Banks     75,400          185,445  

Industrial Securities Co. Ltd., Class A

   Capital Markets     33,790          30,113  

Ingenic Semiconductor Co. Ltd., Class A

   Semiconductors & Semiconductor Equipment     1,300          16,850  

Inmyshow Digital Technology Group Co. Ltd., Class A

   Media     5,800          7,812  

Inner Mongolia BaoTou Steel Union Co. Ltd., Class A

   Metals & Mining     139,200          38,310  

Inner Mongolia Dian Tou Energy Corp. Ltd., Class A

   Oil, Gas & Consumable Fuels     2,900          5,676  

Inner Mongolia ERDOS Resources Co. Ltd., Class A

   Metals & Mining     5,800          12,964  

Inner Mongolia ERDOS Resources Co. Ltd., Class B

   Metals & Mining     20,300          38,509  

 

           
194             

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  franklintempleton.com


FRANKLIN TEMPLETON ETF TRUST

SCHEDULE OF INVESTMENTS

 

Franklin FTSE China ETF (continued)

 

      Industry       Shares                Value  

Common Stocks (continued)

         

China (continued)

         

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

   Chemicals     29,000        $ 19,088  

Inner Mongolia Yili Industrial Group Co. Ltd., Class A

   Food Products     23,200          98,377  

Inner Mongolia Yitai Coal Co. Ltd., Class B

   Oil, Gas & Consumable Fuels     52,200          76,682  

Inner Mongolia Yuan Xing Energy Co. Ltd., Class A

   Chemicals     14,500          18,243  

a,bInnovent Biologics, Inc., Class B

   Biotechnology     69,000          308,964  

Inspur Electronic Information Industry Co. Ltd., Class A

   Technology Hardware, Storage & Peripherals     5,908          30,197  

Intco Medical Technology Co. Ltd., Class A

   Health Care Equipment & Supplies     1,890          7,106  

biQIYI, Inc., ADR

   Entertainment     22,243          161,929  

JA Solar Technology Co. Ltd., Class A

   Semiconductors & Semiconductor Equipment     8,780          73,310  

Jafron Biomedical Co. Ltd., Class A

   Health Care Equipment & Supplies     2,900          12,817  

Jason Furniture Hangzhou Co. Ltd., Class A

   Household Durables     3,680          21,746  

JCET Group Co. Ltd., Class A

   Semiconductors & Semiconductor Equipment     5,800          27,407  

a,bJD Health International, Inc.

   Consumer Staples Distribution & Retail     53,650          399,131  

a,bJD Logistics, Inc.

   Air Freight & Logistics     84,100          151,060  

JD.com, Inc., Class A

   Broadline Retail     120,860          2,648,160  

bJiajiayue Group Co. Ltd., Class A

   Consumer Staples Distribution & Retail     2,900          5,680  

Jiangsu Cnano Technology Co. Ltd., Class A

   Chemicals     810          7,988  

Jiangsu Eastern Shenghong Co. Ltd., Class A

   Chemicals     17,400          34,510  

Jiangsu Expressway Co. Ltd., Class A

   Transportation Infrastructure     5,800          7,052  

Jiangsu Expressway Co. Ltd., Class H

   Transportation Infrastructure     62,000          57,814  

Jiangsu Hengli Hydraulic Co. Ltd., Class A

   Machinery     4,180          40,307  

Jiangsu Hengrui Pharmaceuticals Co. Ltd., Class A

   Pharmaceuticals     23,200          144,660  

Jiangsu King’s Luck Brewery JSC Ltd., Class A

   Beverages     5,800          54,771  

Jiangsu Linyang Energy Co. Ltd., Class A

   Electrical Equipment     8,700          10,021  

Jiangsu Pacific Quartz Co. Ltd., Class A

   Semiconductors & Semiconductor Equipment     1,200          21,577  

Jiangsu Yanghe Brewery Joint-Stock Co. Ltd., Class A

   Beverages     5,800          139,745  

Jiangsu Yangnong Chemical Co. Ltd., Class A

   Chemicals     900          12,729  

Jiangsu Yuyue Medical Equipment & Supply Co. Ltd., Class A

   Health Care Equipment & Supplies     2,900          13,446  

bJiangsu Zhongnan Construction Group Co. Ltd., Class A

   Real Estate Management & Development     17,400          5,143  

Jiangsu Zhongtian Technology Co. Ltd., Class A

   Electrical Equipment     11,600          28,868  

Jiangxi Copper Co. Ltd., Class A

   Metals & Mining     8,700          25,071  

Jiangxi Copper Co. Ltd., Class H

   Metals & Mining     58,000          98,268  

bJiangxi Special Electric Motor Co. Ltd., Class A, A

   Electrical Equipment     5,800          12,998  

bJiangxi Zhengbang Technology Co. Ltd., Class A

   Food Products     11,600          5,574  

Jilin Aodong Pharmaceutical Group Co. Ltd., Class A

   Pharmaceuticals     5,800          12,931  

bJinke Properties Group Co. Ltd., Class A

   Real Estate Management & Development     23,200          5,372  

Jinke Smart Services Group Co. Ltd., Class H

   Real Estate Management & Development     11,600          17,733  

aJinxin Fertility Group Ltd.

   Health Care Providers & Services     79,000          52,935  

JiuGui Liquor Co. Ltd., Class A

   Beverages     900          16,949  

aJiumaojiu International Holdings Ltd.

   Hotels, Restaurants & Leisure     29,000          69,009  

Jizhong Energy Resources Co. Ltd., Class A

   Oil, Gas & Consumable Fuels     11,600          11,554  

Joincare Pharmaceutical Group Industry Co. Ltd., Class A

   Pharmaceuticals     8,700          16,685  

Joinn Laboratories China Co. Ltd., Class A

   Life Sciences Tools & Services     1,400          10,674  

aJoinn Laboratories China Co. Ltd., Class H

   Life Sciences Tools & Services     3,980          15,489  

 

           
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Annual Report

             195


FRANKLIN TEMPLETON ETF TRUST

SCHEDULE OF INVESTMENTS

 

Franklin FTSE China ETF (continued)

 

      Industry       Shares                Value  

Common Stocks (continued)

         

China (continued)

         

Jointown Pharmaceutical Group Co. Ltd., Class A

   Health Care Providers & Services     5,800        $ 12,618  

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

   Food Products     2,900          15,667  

Joyoung Co. Ltd., Class A

   Household Durables     2,900          7,567  

JOYY, Inc., ADR

   Interactive Media & Services     2,320          72,338  

bJuneyao Airlines Co. Ltd., Class A, A

   Airlines     8,700          22,778  

bKaishan Group Co. Ltd., Class A

   Machinery     2,900          7,475  

bKanzhun Ltd., ADR

   Interactive Media & Services     6,931          131,897  

b KE Holdings, Inc., ADR

   Real Estate Management & Development     32,683          615,748  

Keda Industrial Group Co. Ltd.

   Machinery     5,800          12,187  

Kingboard Holdings Ltd.

   Electronic Equipment, Instruments & Components     37,800          116,049  

bKingdee International Software Group Co. Ltd.

   Software     132,000          213,892  

bKingsoft Cloud Holdings Ltd., ADR

   IT Services     5,278          46,921  

Kingsoft Corp. Ltd.

   Software     42,400          208,761  

a,bKuaishou Technology, Class B

   Interactive Media & Services     101,500          781,620  

Kuang-Chi Technologies Co. Ltd., Class A

   Automobile Components     8,700          20,979  

Kunlun Tech Co. Ltd., Class A

   Entertainment     2,900          19,755  

Kweichow Moutai Co. Ltd., Class A

   Beverages     4,500          1,192,608  

bLakala Payment Co. Ltd., Class A

   IT Services     2,900          7,931  

Lao Feng Xiang Co. Ltd., Class B

   Textiles, Apparel & Luxury Goods     11,600          38,744  

LB Group Co. Ltd., Class A

   Chemicals     8,700          25,642  

Lee & Man Paper Manufacturing Ltd.

   Paper & Forest Products     87,000          34,800  

aLegend Holdings Corp., Class H

   Technology Hardware, Storage & Peripherals     26,100          27,829  

Lens Technology Co. Ltd., Class A

   Electronic Equipment, Instruments & Components     17,400          34,231  

bLeo Group Co. Ltd., Class A

   Media     31,900          11,102  

Lepu Medical Technology Beijing Co. Ltd., Class A

   Health Care Equipment & Supplies     5,800          19,577  

Levima Advanced Materials Corp., Class A, A

   Chemicals     2,900          12,044  

Leyard Optoelectronic Co. Ltd., Class A

   Electronic Equipment, Instruments & Components     8,700          8,627  

bLi Auto, Inc., Class A

   Automobiles     54,462          679,912  

Li Ning Co. Ltd.

   Textiles, Apparel & Luxury Goods     117,500          926,535  

LianChuang Electronic Technology Co. Ltd., Class A

   Electronic Equipment, Instruments & Components     3,560          6,630  

Lianhe Chemical Technology Co. Ltd., Class A

   Chemicals     2,900          5,950  

Liaoning Port Co. Ltd., Class A

   Transportation Infrastructure     66,700          15,540  

bLingyi iTech Guangdong Co., Class A

   Electrical Equipment     29,000          26,098  

Livzon Pharmaceutical Group, Inc., Class A

   Pharmaceuticals     2,900          15,785  

Livzon Pharmaceutical Group, Inc., Class H

   Pharmaceuticals     8,700          30,700  

aLongfor Group Holdings Ltd.

   Real Estate Management & Development     97,630          275,480  

LONGi Green Energy Technology Co. Ltd., Class A

   Semiconductors & Semiconductor Equipment     26,100          153,583  

Longshine Technology Group Co. Ltd., Class A, A

   Software     2,900          11,288  

Luenmei Quantum Co. Ltd., Class A

   Water Utilities     5,800          5,245  

Lufax Holding Ltd., ADR

   Consumer Finance     36,221          73,891  

Luxi Chemical Group Co. Ltd., Class A

   Chemicals     5,800          11,529  

Luxshare Precision Industry Co. Ltd., Class A

   Electronic Equipment, Instruments & Components     26,199          115,634  

a,bLuye Pharma Group Ltd.

   Pharmaceuticals     87,000          40,342  

Luzhou Laojiao Co. Ltd., Class A

   Beverages     5,800          215,191  

Maanshan Iron & Steel Co. Ltd., Class A

   Metals & Mining     23,200          9,730  

Maanshan Iron & Steel Co. Ltd., Class H

   Metals & Mining     58,000          13,373  

Mango Excellent Media Co. Ltd., Class A

   Entertainment     6,730          36,495  

Maxscend Microelectronics Co. Ltd., Class A

   Electronic Equipment, Instruments & Components     1,632          29,563  

Meihua Holdings Group Co. Ltd., Class A

   Food Products     11,600          16,520  

bMeinian Onehealth Healthcare Holdings Co. Ltd., Class A

   Health Care Providers & Services     14,500          15,878  

 

           
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FRANKLIN TEMPLETON ETF TRUST

SCHEDULE OF INVESTMENTS

 

Franklin FTSE China ETF (continued)

 

      Industry       Shares                Value  

Common Stocks (continued)

         

China (continued)

         

a,bMeituan, Class B

   Hotels, Restaurants & Leisure     240,029        $  4,387,819  

Metallurgical Corp. of China Ltd., Class A

   Construction & Engineering     52,200          29,645  

Metallurgical Corp. of China Ltd., Class H

   Construction & Engineering     145,000          37,497  

bMicroport Scientific Corp.

   Health Care Equipment & Supplies     46,400          109,115  

Ming Yang Smart Energy Group Ltd., Class A

   Electrical Equipment     8,700          28,517  

Ming Yuan Cloud Group Holdings Ltd.

   Software     29,000          18,582  

MINISO Group Holding Ltd., ADR

   Broadline Retail     4,321          76,655  

Minth Group Ltd.

   Automobile Components     36,500          110,198  

Montage Technology Co. Ltd., Class A

   Semiconductors & Semiconductor Equipment     4,025          40,746  

Muyuan Foods Co. Ltd., Class A

   Food Products     19,560          139,566  

NanJi E-Commerce Co. Ltd., Class A

   Media     11,600          8,564  

Nanjing Hanrui Cobalt Co. Ltd., Class A

   Metals & Mining     800          4,927  

Nanjing Iron & Steel Co. Ltd., Class A

   Metals & Mining     23,200          13,142  

Nanjing King-Friend Biochemical Pharmaceutical Co. Ltd., Class A

   Pharmaceuticals     3,745          8,889  

NARI Technology Co. Ltd., Class A

   Electrical Equipment     24,240          95,692  

NAURA Technology Group Co. Ltd., Class A

   Electronic Equipment, Instruments & Components     1,800          69,682  

NavInfo Co. Ltd., Class A

   Household Durables     8,700          17,141  

NetEase, Inc.

   Entertainment     92,800          1,631,399  

New China Life Insurance Co. Ltd., Class A

   Insurance     8,700          38,640  

New China Life Insurance Co. Ltd., Class H

   Insurance     49,300          117,190  

bNew Hope Liuhe Co. Ltd., Class A

   Food Products     17,400          33,521  

bNew Oriental Education & Technology Group, Inc.

   Diversified Consumer Services     67,880          264,604  

Newland Digital Technology Co. Ltd., Class A

   Software     2,900          7,069  

Nine Dragons Paper Holdings Ltd.

   Paper & Forest Products     81,000          60,673  

Ninestar Corp., Class A

   Technology Hardware, Storage & Peripherals     5,800          37,854  

Ningbo Deye Technology Co. Ltd., Class A, A

   Machinery     700          26,294  

bNingbo Joyson Electronic Corp., Class A

   Automobile Components     5,800          12,863  

Ningbo Orient Wires & Cables Co. Ltd., Class A, A

   Electrical Equipment     2,900          20,823  

Ningbo Ronbay New Energy Technology Co. Ltd., Class A

   Electrical Equipment     1,586          15,797  

Ningbo Sanxing Medical Electric Co. Ltd., Class A

   Electrical Equipment     5,800          10,752  

Ningbo Shanshan Co. Ltd., Class A, A

   Chemicals     8,700          21,828  

Ningbo Tuopu Group Co. Ltd., Class A

   Automobile Components     2,900          27,077  

Ningbo Zhoushan Port Co. Ltd., Class A

   Transportation Infrastructure     23,200          12,230  

Ningxia Baofeng Energy Group Co. Ltd., Class A

   Chemicals     8,700          18,686  

bNIO, Inc., ADR

   Automobiles     61,190          643,107  

aNongfu Spring Co. Ltd., Class H

   Beverages     87,000          500,392  

North Huajin Chemical Industries Co. Ltd., Class A

   Chemicals     5,800          6,284  

North Industries Group Red Arrow Co. Ltd., Class A

   Machinery     2,900          9,645  

Northeast Securities Co. Ltd., Class A

   Capital Markets     8,700          8,589  

NSFOCUS Technologies Group Co. Ltd., Class A

   Software     2,900          5,870  

bOffcn Education Technology Co. Ltd., Class A

   Diversified Consumer Services     8,700          6,208  

Offshore Oil Engineering Co. Ltd., Class A

   Energy Equipment & Services     14,500          12,943  

bOFILM Group Co. Ltd., Class A

   Electronic Equipment, Instruments & Components     11,600          8,953  

Oppein Home Group, Inc., Class A

   Household Durables     900          15,829  

ORG Technology Co. Ltd., Class A

   Containers & Packaging     8,700          6,550  

Orient Securities Co. Ltd., Class A

   Capital Markets     26,724          38,098  

aOrient Securities Co. Ltd., Class H

   Capital Markets     46,400          24,885  

Oriental Energy Co. Ltd., Class A

   Oil, Gas & Consumable Fuels     5,800          7,441  

 

           
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FRANKLIN TEMPLETON ETF TRUST

SCHEDULE OF INVESTMENTS

 

Franklin FTSE China ETF (continued)

 

      Industry       Shares                Value  

Common Stocks (continued)

         

China (continued)

         

bOurpalm Co. Ltd., Class A

   Entertainment     14,500        $ 9,121  

Ovctek China, Inc., Class A

   Health Care Equipment & Supplies     3,620          17,459  

bPangang Group Vanadium Titanium & Resources Co. Ltd., Class A

   Metals & Mining     31,900          22,947  

bPDD Holdings, Inc., ADR

   Internet & Direct Marketing Retail     22,330          1,694,847  

People.cn Co. Ltd., Class A

   Media     2,900          7,977  

People’s Insurance Co. Group of China Ltd., Class A

   Insurance     37,700          28,547  

Perfect World Co. Ltd., Class A

   Entertainment     5,800          14,375  

PetroChina Co. Ltd., Class A

   Oil, Gas & Consumable Fuels     89,900          77,499  

PetroChina Co. Ltd., Class H

   Oil, Gas & Consumable Fuels     1,044,000          618,424  

Pharmaron Beijing Co. Ltd., Class A

   Life Sciences Tools & Services     1,500          10,696  

aPharmaron Beijing Co. Ltd., Class H

   Life Sciences Tools & Services     10,000          41,975  

PICC Property & Casualty Co. Ltd., Class H

   Insurance     348,000          355,095  

Ping An Bank Co. Ltd., Class A

   Banks     69,600          126,991  

a,bPing An Healthcare & Technology Co. Ltd.

   Health Care Technology     20,300          51,358  

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

   Insurance     37,700          250,334  

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

   Insurance     319,000          2,076,561  

Pingdingshan Tianan Coal Mining Co. Ltd., Class A

   Oil, Gas & Consumable Fuels     8,700          13,137  

Poly Developments & Holdings Group Co. Ltd., Class A

   Real Estate Management & Development     43,500          89,505  

Poly Property Services Co. Ltd., Class H

   Real Estate Management & Development     6,800          41,666  

aPop Mart International Group Ltd.

   Specialty Retail     34,800          94,869  

Porton Pharma Solutions Ltd., Class A

   Pharmaceuticals     2,900          15,663  

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

   Banks     72,500          49,091  

aPostal Savings Bank of China Co. Ltd., Class H

   Banks     464,000          275,446  

Power Construction Corp. of China Ltd., Class A

   Construction & Engineering     60,900          63,230  

Pylon Technologies Co. Ltd., Class A

   Electrical Equipment     659          23,559  

Qingdao TGOOD Electric Co. Ltd., Class A

   Electrical Equipment     2,900          7,453  

bQinghai Salt Lake Industry Co. Ltd., Class A

   Chemicals     20,300          66,097  

Raytron Technology Co. Ltd., Class A

   Electronic Equipment, Instruments & Components     1,348          9,599  

aRed Star Macalline Group Corp. Ltd., Class H

   Real Estate Management & Development     36,000          16,510  

a,bRemegen Co. Ltd., Class H

   Biotechnology     7,500          39,984  

bRiseSun Real Estate Development Co. Ltd., Class A

   Real Estate Management & Development     14,500          3,885  

bRLX Technology, Inc., ADR

   Tobacco     37,091          107,564  

Rongsheng Petrochemical Co. Ltd., Class A

   Chemicals     11,600          25,557  

SAIC Motor Corp. Ltd., Class A

   Automobiles     34,800          72,769  

Sailun Group Co. Ltd., Class A, A

   Automobile Components     11,600          18,226  

Sangfor Technologies, Inc., Class A

   Software     600          12,927  

Sansteel Minguang Co. Ltd. Fujian, Class A

   Metals & Mining     8,700          6,208  

Sany Heavy Industry Co. Ltd., Class A

   Machinery     31,900          79,386  

Satellite Chemical Co. Ltd., Class A

   Chemicals     13,146          30,629  

SDIC Capital Co. Ltd., Class A

   Capital Markets     17,400          17,584  

Sealand Securities Co. Ltd., Class A

   Capital Markets     24,240          12,001  

bSeazen Group Ltd.

   Real Estate Management & Development     116,000          29,998  

bSeazen Holdings Co. Ltd., Class A

   Real Estate Management & Development     8,700          20,701  

a,bSenseTime Group, Inc., Class B

   Software     783,000          265,324  

SF Holding Co. Ltd., Class A

   Air Freight & Logistics     17,400          140,319  

SG Micro Corp., Class A

   Semiconductors & Semiconductor Equipment     1,275          28,815  

Shaanxi Coal Industry Co. Ltd., Class A

   Oil, Gas & Consumable Fuels     34,800          103,073  

Shaanxi International Trust Co. Ltd., Class A

   Capital Markets     14,500          6,736  

Shan Xi Hua Yang Group New Energy Co. Ltd., Class A

   Oil, Gas & Consumable Fuels     8,700          17,508  

 

           
198             

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FRANKLIN TEMPLETON ETF TRUST

SCHEDULE OF INVESTMENTS

 

Franklin FTSE China ETF (continued)

 

      Industry       Shares                Value  

Common Stocks (continued)

         

China (continued)

         

bShandong Chenming Paper Holdings Ltd., Class A

   Paper & Forest Products     5,800        $ 4,485  

bShandong Chenming Paper Holdings Ltd., Class B

   Paper & Forest Products     34,800          10,152  

bShandong Chenming Paper Holdings Ltd., Class H

   Paper & Forest Products     29,000          9,088  

Shandong Denghai Seeds Co. Ltd., Class A

   Food Products     2,900          7,897  

Shandong Gold Mining Co. Ltd., Class A

   Metals & Mining     12,284          39,424  

aShandong Gold Mining Co. Ltd., Class H

   Metals & Mining     36,750          74,624  

Shandong Himile Mechanical Science & Technology Co. Ltd., Class A

   Machinery     2,900          13,218  

Shandong Hi-speed Co. Ltd., Class A

   Transportation Infrastructure     11,600          10,338  

Shandong Hualu Hengsheng Chemical Co. Ltd., Class A

   Chemicals     8,780          45,068  

Shandong Humon Smelting Co. Ltd., Class A

   Metals & Mining     2,900          4,945  

Shandong Linglong Tyre Co. Ltd., Class A

   Automobile Components     2,900          8,252  

Shandong Nanshan Aluminum Co. Ltd., Class A

   Metals & Mining     43,500          21,473  

Shandong Pharmaceutical Glass Co. Ltd., Class A

   Health Care Equipment & Supplies     2,900          11,085  

Shandong Sun Paper Industry JSC Ltd., Class A

   Paper & Forest Products     8,700          15,443  

Shandong Weigao Group Medical Polymer Co. Ltd., Class H

   Health Care Equipment & Supplies     118,500          189,299  

bShanghai Aiko Solar Energy Co. Ltd., Class A

   Semiconductors & Semiconductor Equipment     2,900          13,982  

Shanghai AJ Group Co. Ltd., Class A

   Financial Services     5,800          4,535  

Shanghai Bairun Investment Holding Group Co. Ltd., Class A

   Beverages     3,940          23,471  

Shanghai Baosight Software Co. Ltd., Class A

   Software     3,280          27,798  

Shanghai Baosight Software Co. Ltd., Class B

   Software     26,190          86,479  

Shanghai Construction Group Co. Ltd., Class A

   Construction & Engineering     26,100          10,376  

bShanghai Electric Group Co. Ltd., Class A

   Electrical Equipment     34,800          22,398  

bShanghai Electric Group Co. Ltd., Class H

   Electrical Equipment     116,000          28,963  

bShanghai Electric Power Co. Ltd., Class A

   Independent Power Producers & Energy Traders     11,600          16,773  

Shanghai Fosun Pharmaceutical Group Co. Ltd., Class A

   Pharmaceuticals     8,700          41,034  

Shanghai Fosun Pharmaceutical Group Co. Ltd., Class H

   Pharmaceuticals     29,000          82,383  

Shanghai Friendess Electronic Technology Corp. Ltd., Class A, A

   Electronic Equipment, Instruments & Components     420          11,211  

Shanghai Fudan Microelectronics Group Co. Ltd., Class A

   Semiconductors & Semiconductor Equipment     999          9,523  

Shanghai Fudan Microelectronics Group Co. Ltd., Class H

   Semiconductors & Semiconductor Equipment     14,000          51,453  

Shanghai Huayi Group Co. Ltd., Class B

   Chemicals     8,700          5,046  

bShanghai International Airport Co. Ltd., Class A

   Transportation Infrastructure     8,700          70,603  

Shanghai International Port Group Co. Ltd., Class A

   Transportation Infrastructure     40,600          32,753  

Shanghai Jinjiang International Hotels Co. Ltd., Class A

   Hotels, Restaurants & Leisure     2,900          26,566  

Shanghai Jinjiang International Hotels Co. Ltd., Class B

   Hotels, Restaurants & Leisure     8,700          18,357  

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

   Real Estate Management & Development     2,900          5,034  

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

   Real Estate Management & Development     17,400          16,582  

bShanghai Junshi Biosciences Co. Ltd., Class A, A

   Biotechnology     2,813          19,678  

 

           
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FRANKLIN TEMPLETON ETF TRUST

SCHEDULE OF INVESTMENTS

 

Franklin FTSE China ETF (continued)

 

      Industry       Shares                Value  

Common Stocks (continued)

         

China (continued)

         

a,bShanghai Junshi Biosciences Co. Ltd., Class H

   Biotechnology     5,800        $ 20,245  

Shanghai Lingang Holdings Corp. Ltd., Class A

   Real Estate Management & Development     6,600          12,196  

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

   Real Estate Management & Development     5,800          8,437  

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

   Real Estate Management & Development     60,900          47,076  

Shanghai M&G Stationery, Inc., Class A

   Commercial Services & Supplies     2,900          20,734  

Shanghai Mechanical & Electrical Industry Co. Ltd., Class B

   Machinery     11,600          12,412  

Shanghai Pharmaceuticals Holding Co. Ltd., Class A

   Health Care Providers & Services     11,600          34,408  

Shanghai Pharmaceuticals Holding Co. Ltd., Class H

   Health Care Providers & Services     43,500          81,127  

Shanghai Pudong Development Bank Co. Ltd., Class A

   Banks     104,415          109,322  

Shanghai Putailai New Energy Technology Co. Ltd., Class A

   Chemicals     5,020          36,484  

Shanghai RAAS Blood Products Co. Ltd., Class A

   Biotechnology     26,100          24,438  

Shanghai Rural Commercial Bank Co. Ltd., Class A

   Banks     11,600          9,730  

Shanghai Tunnel Engineering Co. Ltd., Class A

   Construction & Engineering     14,500          12,035  

Shanghai Waigaoqiao Free Trade Zone Group Co. Ltd., Class B

   Trading Companies & Distributors     11,600          10,823  

Shanghai Yuyuan Tourist Mart Group Co. Ltd., Class A

   Specialty Retail     17,400          20,599  

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

   Real Estate Management & Development     5,800          13,893  

Shanghai Zhenhua Heavy Industries Co. Ltd., Class B

   Machinery     52,200          13,102  

Shanxi Coking Coal Energy Group Co. Ltd., Class A

   Oil, Gas & Consumable Fuels     17,400          27,846  

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

   Oil, Gas & Consumable Fuels     11,600          37,060  

Shanxi Meijin Energy Co. Ltd., Class A, A

   Metals & Mining     17,400          23,260  

Shanxi Securities Co. Ltd., Class A

   Capital Markets     14,700          12,437  

Shanxi Taigang Stainless Steel Co. Ltd., Class A

   Metals & Mining     23,200          14,662  

Shanxi Xinghuacun Fen Wine Factory Co. Ltd., Class A

   Beverages     4,420          175,325  

Shanying International Holding Co. Ltd., Class A

   Paper & Forest Products     17,400          6,258  

Shenghe Resources Holding Co. Ltd., Class A

   Metals & Mining     5,800          11,951  

Shengyi Technology Co. Ltd., Class A

   Electronic Equipment, Instruments & Components     8,700          23,386  

Shennan Circuits Co. Ltd., Class A, A

   Electronic Equipment, Instruments & Components     600          8,066  

Shenwan Hongyuan Group Co. Ltd., Class A

   Capital Markets     78,300          47,546  

aShenwan Hongyuan Group Co. Ltd., Class H

   Capital Markets     92,800          17,614  

Shenzhen Agricultural Products Group Co. Ltd., Class A

   Consumer Staples Distribution & Retail     5,800          4,856  

Shenzhen Airport Co. Ltd., Class A

   Transportation Infrastructure     5,800          6,157  

Shenzhen Capchem Technology Co. Ltd., Class A

   Chemicals     2,980          21,172  

Shenzhen Dynanonic Co. Ltd., Class A, A

   Chemicals     540          14,895  

Shenzhen Energy Group Co. Ltd., Class A

   Independent Power Producers & Energy Traders     17,400          15,481  

bShenzhen Everwin Precision Technology Co. Ltd., Class A

   Electronic Equipment, Instruments & Components     5,800          11,444  

Shenzhen Expressway Corp. Ltd., Class H

   Transportation Infrastructure     24,000          21,340  

Shenzhen Gas Corp. Ltd., Class A

   Gas Utilities     9,400          9,390  

 

           
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FRANKLIN TEMPLETON ETF TRUST

SCHEDULE OF INVESTMENTS

 

Franklin FTSE China ETF (continued)

 

      Industry       Shares                Value  

Common Stocks (continued)

         

China (continued)

         

Shenzhen Hepalink Pharmaceutical Group Co. Ltd., Class A, A

   Pharmaceuticals     2,900        $ 5,819  

Shenzhen Huaqiang Industry Co. Ltd., Class A

   Electronic Equipment, Instruments & Components     2,900          5,883  

bShenzhen Infogem Technologies Co. Ltd., Class A, A

   Software     2,900          5,080  

Shenzhen Inovance Technology Co. Ltd., Class A

   Machinery     9,650          98,786  

Shenzhen International Holdings Ltd.

   Transportation Infrastructure     72,500          64,096  

Shenzhen Investment Ltd.

   Real Estate Management & Development     116,000          20,540  

Shenzhen Jinjia Group Co. Ltd., Class A

   Containers & Packaging     5,800          6,258  

Shenzhen Kaifa Technology Co. Ltd., Class A

   Technology Hardware, Storage & Peripherals     5,800          14,121  

Shenzhen Kangtai Biological Products Co. Ltd., Class A

   Biotechnology     4,460          20,549  

Shenzhen Kedali Industry Co. Ltd., Class A, A

   Automobile Components     800          15,062  

Shenzhen Kingdom Sci-Tech Co. Ltd., Class A

   Software     2,900          5,942  

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

   Health Care Equipment & Supplies     4,400          199,718  

bShenzhen MTC Co. Ltd., Class A

   Household Durables     20,300          14,573  

bShenzhen Neptunus Bioengineering Co. Ltd., Class A

   Health Care Providers & Services     11,600          5,726  

Shenzhen Overseas Chinese Town Co. Ltd., Class A

   Hotels, Restaurants & Leisure     31,900          22,436  

Shenzhen Salubris Pharmaceuticals Co. Ltd., Class A

   Pharmaceuticals     2,900          14,932  

Shenzhen SC New Energy Technology Corp., Class A

   Semiconductors & Semiconductor Equipment     1,100          18,333  

Shenzhen Senior Technology Material Co. Ltd., Class A

   Chemicals     5,800          16,250  

Shenzhen Sunway Communication Co. Ltd., Class A

   Communications Equipment     2,900          8,834  

Shenzhen Transsion Holdings Co. Ltd., Class A

   Technology Hardware, Storage & Peripherals     2,912          42,913  

Shenzhen Yan Tian Port Holding Co. Ltd., Class A, A

   Transportation Infrastructure     8,700          6,385  

Shenzhen YUTO Packaging Technology Co. Ltd., Class A

   Containers & Packaging     2,900          11,752  

Shenzhen Zhongjin Lingnan Nonfemet Co. Ltd., Class A

   Metals & Mining     14,500          10,388  

Shenzhou International Group Holdings Ltd.

   Textiles, Apparel & Luxury Goods     37,700          395,732  

bShijiazhuang Changshan BeiMing Technology Co. Ltd., Class A

   Textiles, Apparel & Luxury Goods     5,800          7,686  

Shijiazhuang Yiling Pharmaceutical Co. Ltd., Class A

   Pharmaceuticals     6,480          27,468  

bShimao Group Holdings Ltd.

   Real Estate Management & Development     78,000          20,614  

a,bShimao Services Holdings Ltd., Class Z

   Real Estate Management & Development     29,000          7,278  

Shui On Land Ltd.

   Real Estate Management & Development     174,000          21,057  

bSiasun Robot & Automation Co. Ltd., Class A

   Machinery     5,800          10,076  

Sichuan Chuantou Energy Co. Ltd., Class A

   Independent Power Producers & Energy Traders     17,400          33,496  

Sichuan Hebang Biotechnology Co. Ltd., Class A

   Chemicals     34,800          15,152  

Sichuan Kelun Pharmaceutical Co. Ltd., Class A

   Pharmaceuticals     5,800          24,003  

bSichuan New Energy Power Co. Ltd.

   Trading Companies & Distributors     5,800          13,446  

Sichuan Road & Bridge Group Co. Ltd., Class A

   Construction & Engineering     17,400          34,966  

Sichuan Swellfun Co. Ltd., Class A

   Beverages     1,600          17,551  

Sichuan Yahua Industrial Group Co. Ltd., Class A, A

   Chemicals     2,900          8,940  

Sieyuan Electric Co. Ltd., Class A

   Electrical Equipment     2,900          19,307  

Sinoma International Engineering Co., Class A

   Construction & Engineering     8,700          14,164  

 

           
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FRANKLIN TEMPLETON ETF TRUST

SCHEDULE OF INVESTMENTS

 

Franklin FTSE China ETF (continued)

 

      Industry       Shares                Value  

Common Stocks (continued)

         

China (continued)

         

Sinoma Science & Technology Co. Ltd., Class A

   Chemicals     5,800        $ 20,380  

Sinomine Resource Group Co. Ltd., Class A

   Metals & Mining     1,600          16,379  

Sino-Ocean Group Holding Ltd.

   Real Estate Management & Development     159,500          18,084  

Sinopec Engineering Group Co. Ltd., Class H

   Construction & Engineering     72,500          36,019  

bSinopec Oilfield Service Corp., Class A

   Energy Equipment & Services     20,300          6,208  

bSinopec Oilfield Service Corp., Class H

   Energy Equipment & Services     116,000          8,866  

Sinopec Shanghai Petrochemical Co. Ltd., Class A

   Chemicals     23,200          11,385  

Sinopec Shanghai Petrochemical Co. Ltd., Class H

   Chemicals     174,000          30,367  

Sinopharm Group Co. Ltd., Class H

   Health Care Providers & Services     58,000          175,479  

Sinotrans Ltd., Class A

   Air Freight & Logistics     14,500          8,784  

Sinotrans Ltd., Class H

   Air Freight & Logistics     87,000          26,931  

Sinotruk Hong Kong Ltd.

   Machinery     29,000          45,070  

bSkshu Paint Co. Ltd., Class A

   Chemicals     980          16,612  

Skyworth Digital Co. Ltd., Class A, A

   Communications Equipment     2,900          8,007  

aSmoore International Holdings Ltd.

   Tobacco     93,690          120,306  

Songcheng Performance Development Co. Ltd., Class A

   Hotels, Restaurants & Leisure     9,360          22,176  

SooChow Securities Co. Ltd., Class A

   Capital Markets     20,504          20,631  

Southwest Securities Co. Ltd., Class A

   Capital Markets     26,100          14,784  

StarPower Semiconductor Ltd., Class A, A

   Semiconductors & Semiconductor Equipment     500          19,990  

bSTO Express Co. Ltd., Class A

   Air Freight & Logistics     5,800          9,392  

Sun Art Retail Group Ltd.

   Consumer Staples Distribution & Retail     101,500          40,730  

bSunac China Holdings Ltd.

   Real Estate Management & Development     160,000          31,802  

aSunac Services Holdings Ltd.

   Real Estate Management & Development     30,898          13,186  

Sungrow Power Supply Co. Ltd., Class A

   Electrical Equipment     5,800          88,563  

Suning Universal Co. Ltd., Class A

   Real Estate Management & Development     14,500          6,482  

Sunny Optical Technology Group Co. Ltd.

   Electronic Equipment, Instruments & Components     31,900          385,850  

Sunwoda Electronic Co. Ltd., Class A

   Electrical Equipment     5,800          17,027  

Suzhou Anjie Technology Co. Ltd., Class A, A

   Electrical Equipment     2,900          6,326  

Suzhou Dongshan Precision Manufacturing Co. Ltd., Class A

   Electronic Equipment, Instruments & Components     5,800          25,549  

bSuzhou Gold Mantis Construction Decoration Co. Ltd., Class A

   Construction & Engineering     8,700          6,638  

Suzhou Maxwell Technologies Co. Ltd., Class A

   Electrical Equipment     640          28,425  

Taiji Computer Corp. Ltd., Class A

   IT Services     2,900          17,812  

bTAL Education Group, ADR

   Diversified Consumer Services     22,272          142,764  

Tangshan Jidong Cement Co. Ltd., Class A

   Construction Materials     11,600          14,662  

TangShan Port Group Co. Ltd., Class A

   Transportation Infrastructure     20,300          9,164  

Tangshan Sanyou Chemical Industries Co. Ltd., Class A

   Chemicals     8,900          8,541  

TBEA Co. Ltd., Class A

   Electrical Equipment     14,500          45,840  

TCL Technology Group Corp., Class A

   Household Durables     63,800          41,156  

TCL Zhonghuan Renewable Energy Technology Co. Ltd., Class A

   Semiconductors & Semiconductor Equipment     11,600          81,857  

Tencent Holdings Ltd.

   Interactive Media & Services     306,264          15,051,899  

bTencent Music Entertainment Group, ADR

   Entertainment     31,668          262,211  

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

   Insurance     406,000          135,507  

Thunder Software Technology Co. Ltd., Class A

   Software     1,500          23,666  

Tian Di Science & Technology Co. Ltd., Class A

   Machinery     14,500          10,726  

Tianjin Chase Sun Pharmaceutical Co. Ltd., Class A

   Pharmaceuticals     11,600          10,084  

Tianma Microelectronics Co. Ltd., Class A

   Electronic Equipment, Instruments & Components     8,700          13,315  

bTianqi Lithium Corp., Class A

   Chemicals     5,800          63,783  

bTianqi Lithium Corp., Class H

   Chemicals     5,800          39,049  

 

           
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FRANKLIN TEMPLETON ETF TRUST

SCHEDULE OF INVESTMENTS

 

Franklin FTSE China ETF (continued)

 

      Industry       Shares                Value  

Common Stocks (continued)

         

China (continued)

         

Tianshan Aluminum Group Co. Ltd., Class A

   Machinery     8,700        $ 9,616  

Tianshui Huatian Technology Co. Ltd., Class A

   Semiconductors & Semiconductor Equipment     11,600          17,061  

bTibet Summit Resources Co. Ltd., Class A, A

   Metals & Mining     2,900          9,662  

Tingyi Cayman Islands Holding Corp.

   Food Products     96,000          159,960  

Titan Wind Energy Suzhou Co. Ltd., Class A, A

   Electrical Equipment     5,800          12,466  

bTongcheng Travel Holdings Ltd.

   Hotels, Restaurants & Leisure     61,600          134,030  

bTongFu Microelectronics Co. Ltd., Class A

   Semiconductors & Semiconductor Equipment     5,800          18,750  

Tongkun Group Co. Ltd., Class A

   Chemicals     8,700          18,192  

Tongling Nonferrous Metals Group Co. Ltd., Class A

   Metals & Mining     40,600          19,037  

Tongwei Co. Ltd., Class A

   Food Products     17,400          98,588  

bTopchoice Medical Corp., Class A

   Health Care Providers & Services     1,200          22,591  

Topsec Technologies Group, Inc., Class A

   Electrical Equipment     5,800          10,346  

aTopsports International Holdings Ltd.

   Specialty Retail     87,000          79,575  

Towngas Smart Energy Co. Ltd.

   Gas Utilities     58,000          25,121  

TravelSky Technology Ltd., Class H

   IT Services     58,000          108,317  

Trina Solar Co. Ltd., Class A, A

   Semiconductors & Semiconductor Equipment     8,033          60,932  

bTrip.com Group Ltd.

   Hotels, Restaurants & Leisure     27,579          1,032,199  

Tsingtao Brewery Co. Ltd., Class A

   Beverages     2,900          50,928  

Tsingtao Brewery Co. Ltd., Class H

   Beverages     31,676          345,815  

bTuya, Inc., ADR

   Software     12,209          23,075  

Unigroup Guoxin Microelectronics Co. Ltd., Class A

   Electronic Equipment, Instruments & Components     2,999          48,531  

Uni-President China Holdings Ltd.

   Food Products     58,000          58,518  

Unisplendour Corp. Ltd., Class A

   Electronic Equipment, Instruments & Components     5,800          24,738  

Universal Scientific Industrial Shanghai Co. Ltd., Class A

   Electronic Equipment, Instruments & Components     2,900          7,470  

Valiant Co. Ltd., Class A

   Chemicals     2,900          7,276  

bVipshop Holdings Ltd., ADR

   Broadline Retail     19,517          296,268  

Visual China Group Co. Ltd., Class A, A

   Interactive Media & Services     2,900          7,044  

Walvax Biotechnology Co. Ltd., Class A

   Biotechnology     5,800          29,130  

bWanda Film Holding Co. Ltd., Class A

   Entertainment     8,700          18,116  

Wangsu Science & Technology Co. Ltd., Class A

   IT Services     8,700          9,109  

Wanhua Chemical Group Co. Ltd., Class A

   Chemicals     11,600          161,957  

Wanxiang Qianchao Co. Ltd., Class A

   Automobile Components     14,500          11,085  

bWeibo Corp., ADR

   Interactive Media & Services     3,509          70,391  

Weichai Power Co. Ltd., Class A

   Machinery     26,100          47,926  

Weichai Power Co. Ltd., Class H

   Machinery     87,000          139,644  

Weifu High-Technology Group Co. Ltd., Class A

   Automobile Components     2,900          8,526  

Weifu High-Technology Group Co. Ltd., Class B

   Automobile Components     8,700          16,070  

Wens Foodstuffs Group Co. Ltd., Class A

   Food Products     5,800          17,289  

Western Mining Co. Ltd., Class A, A

   Metals & Mining     8,700          16,051  

Western Securities Co. Ltd., Class A

   Capital Markets     17,400          16,140  

Western Superconducting Technologies Co. Ltd., Class A

   Metals & Mining     1,488          17,666  

Will Semiconductor Co. Ltd. Shanghai, Class A

   Semiconductors & Semiconductor Equipment     2,900          38,471  

Wingtech Technology Co. Ltd., Class A

   Electronic Equipment, Instruments & Components     5,800          46,663  

Winning Health Technology Group Co. Ltd., Class A

   Health Care Technology     9,600          19,389  

Wolong Electric Group Co. Ltd., Class A

   Electrical Equipment     5,800          10,667  

Wuchan Zhongda Group Co. Ltd., Class A

   Distributors     23,200          16,385  

Wuhan Guide Infrared Co. Ltd., Class A

   Electronic Equipment, Instruments & Components     11,673          20,551  

Wuliangye Yibin Co. Ltd., Class A

   Beverages     14,200          407,351  

WUS Printed Circuit Kunshan Co. Ltd., Class A

   Electronic Equipment, Instruments & Components     8,740          27,350  

WuXi AppTec Co. Ltd., Class A

   Life Sciences Tools & Services     9,560          110,672  

aWuXi AppTec Co. Ltd., Class H

   Life Sciences Tools & Services     17,320          181,365  

a,bWuxi Biologics Cayman, Inc.

   Life Sciences Tools & Services     181,681          1,124,809  

 

           
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FRANKLIN TEMPLETON ETF TRUST

SCHEDULE OF INVESTMENTS

 

Franklin FTSE China ETF (continued)

 

      Industry       Shares                Value  

Common Stocks (continued)

         

China (continued)

         

Wuxi Shangji Automation Co. Ltd., Class A

   Machinery     1,260        $ 18,735  

XCMG Construction Machinery Co. Ltd., Class A

   Machinery     43,500          43,897  

Xiamen C & D, Inc., Class A

   Trading Companies & Distributors     11,600          20,388  

Xiamen Faratronic Co. Ltd., Class A, A

   Electronic Equipment, Instruments & Components     800          17,009  

Xiamen ITG Group Corp. Ltd., Class A

   Trading Companies & Distributors     8,700          10,920  

Xiamen Tungsten Co. Ltd., Class A

   Metals & Mining     5,800          17,213  

Xiangcai Co. Ltd., Class A

   Real Estate Management & Development     5,800          8,049  

a,bXiaomi Corp., Class B

   Technology Hardware, Storage & Peripherals     748,200          1,153,284  

Xinfengming Group Co. Ltd., Class A, A

   Chemicals     2,900          4,582  

Xinhua Winshare Publishing & Media Co. Ltd., Class H

   Distributors     29,000          22,794  

Xinjiang Daqo New Energy Co. Ltd., Class A

   Semiconductors & Semiconductor Equipment     2,900          20,536  

Xinjiang Goldwind Science & Technology Co. Ltd., Class A

   Electrical Equipment     11,600          18,648  

Xinjiang Goldwind Science & Technology Co. Ltd., Class H

   Electrical Equipment     29,000          24,789  

Xinjiang Tianshan Cement Co. Ltd., Class A, A

   Construction Materials     8,700          11,224  

Xinjiang Zhongtai Chemical Co. Ltd., Class A

   Chemicals     11,600          12,246  

Xinxing Ductile Iron Pipes Co. Ltd., Class A

   Metals & Mining     14,500          8,509  

Xinyangfeng Agricultural Technology Co. Ltd., Class A

   Chemicals     5,800          9,071  

Xinyi Solar Holdings Ltd.

   Semiconductors & Semiconductor Equipment     215,642          258,497  

bXPeng, Inc., Class A

   Automobiles     53,550          298,449  

Xtep International Holdings Ltd.

   Textiles, Apparel & Luxury Goods     58,000          73,738  

Xuji Electric Co. Ltd., Class A

   Electrical Equipment     2,900          9,882  

aYadea Group Holdings Ltd.

   Automobiles     58,000          149,619  

Yangling Metron New Material, Inc., Class A

   Semiconductors & Semiconductor Equipment     2,900          18,969  

bYango Group Co. Ltd., Class A

   Real Estate Management & Development     20,300          4,848  

aYangtze Optical Fibre & Cable Joint Stock Ltd. Co., Class H

   Communications Equipment     8,500          17,498  

Yangzhou Yangjie Electronic Technology Co. Ltd., Class A

   Semiconductors & Semiconductor Equipment     2,900          23,226  

Yangzijiang Shipbuilding Holdings Ltd.

   Machinery     130,500          117,784  

Yankuang Energy Group Co. Ltd., Class A

   Oil, Gas & Consumable Fuels     5,800          30,042  

Yankuang Energy Group Co. Ltd., Class H

   Oil, Gas & Consumable Fuels     96,000          343,645  

Yantai Changyu Pioneer Wine Co. Ltd., Class B

   Beverages     11,600          17,363  

Yantai Eddie Precision Machinery Co. Ltd., Class A

   Machinery     3,660          9,641  

Yantai Jereh Oilfield Services Group Co. Ltd., Class A

   Energy Equipment & Services     2,900          11,959  

bYatsen Holding Ltd., ADR

   Personal Products     12,064          17,855  

Yealink Network Technology Corp. Ltd., Class A

   Communications Equipment     2,900          32,098  

bYifan Pharmaceutical Co. Ltd., Class A

   Pharmaceuticals     5,800          11,858  

Yifeng Pharmacy Chain Co. Ltd., Class A

   Consumer Staples Distribution & Retail     2,990          25,175  

Yihai International Holding Ltd.

   Food Products     29,000          85,153  

Yihai Kerry Arawana Holdings Co. Ltd., Class A

   Food Products     5,800          36,401  

Yintai Gold Co. Ltd., Class A

   Metals & Mining     8,900          17,068  

Yixintang Pharmaceutical Group Co. Ltd., Class A

   Consumer Staples Distribution & Retail     2,900          14,966  

YongXing Special Materials Technology Co. Ltd., Class A

   Metals & Mining     1,100          13,439  

Yonyou Network Technology Co. Ltd., Class A

   Software     12,590          46,108  

Youngor Group Co. Ltd., Class A

   Real Estate Management & Development     20,300          19,273  

bYoungy Co. Ltd., Class A

   Metals & Mining     1,000          11,033  

YTO Express Group Co. Ltd., Class A

   Air Freight & Logistics     11,600          30,945  

 

           
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FRANKLIN TEMPLETON ETF TRUST

SCHEDULE OF INVESTMENTS

 

Franklin FTSE China ETF (continued)

 

      Industry       Shares                Value  

Common Stocks (continued)

         

China (continued)

         

bYuan Longping High-tech Agriculture Co. Ltd., Class A

   Food Products     5,800        $ 14,003  

Yuexiu Property Co. Ltd.

   Real Estate Management & Development     66,800          100,754  

Yum China Holdings, Inc.

   Hotels, Restaurants & Leisure     21,400          1,345,619  

Yunda Holding Co. Ltd., Class A

   Air Freight & Logistics     6,100          10,508  

Yunnan Aluminium Co. Ltd., Class A

   Metals & Mining     13,190          26,141  

Yunnan Baiyao Group Co. Ltd., Class A

   Pharmaceuticals     6,180          49,225  

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

   Personal Products     700          13,071  

Yunnan Copper Co. Ltd., Class A

   Metals & Mining     5,800          10,887  

Yunnan Energy New Material Co. Ltd., Class A

   Containers & Packaging     2,900          48,065  

Yunnan Tin Co. Ltd., Class A

   Metals & Mining     5,800          12,550  

bYunnan Yuntianhua Co. Ltd., Class A

   Chemicals     5,800          17,922  

bZai Lab Ltd.

   Biotechnology     47,270          156,865  

Zangge Mining Co. Ltd., Class A

   Chemicals     5,800          20,405  

Zhangzhou Pientzehuang Pharmaceutical Co. Ltd., Class A

   Pharmaceuticals     2,100          86,963  

bZhaojin Mining Industry Co. Ltd., Class H

   Metals & Mining     58,000          88,072  

Zhefu Holding Group Co. Ltd., Class A

   Electrical Equipment     23,200          13,750  

bZhejiang Century Huatong Group Co. Ltd., Class A

   Entertainment     26,100          22,880  

Zhejiang China Commodities City Group Co. Ltd., Class A

   Real Estate Management & Development     20,300          17,086  

Zhejiang Chint Electrics Co. Ltd., Class A

   Electrical Equipment     5,800          23,623  

Zhejiang Crystal-Optech Co. Ltd., Class A

   Electronic Equipment, Instruments & Components     5,800          11,757  

Zhejiang Dahua Technology Co. Ltd., Class A

   Electronic Equipment, Instruments & Components     11,600          38,192  

Zhejiang Dingli Machinery Co. Ltd., Class A

   Machinery     2,900          23,137  

Zhejiang Expressway Co. Ltd., Class H

   Transportation Infrastructure     73,933          58,770  

Zhejiang Hailiang Co. Ltd., Class A

   Metals & Mining     5,800          9,848  

Zhejiang HangKe Technology, Inc.Co., Class A

   Electrical Equipment     1,196          7,802  

Zhejiang Hisoar Pharmaceutical Co. Ltd., Class A

   Pharmaceuticals     5,800          5,963  

Zhejiang Huace Film & Television Co. Ltd., Class A

   Entertainment     8,700          10,046  

Zhejiang Huahai Pharmaceutical Co. Ltd., Class A

   Pharmaceuticals     6,000          17,623  

Zhejiang Huayou Cobalt Co. Ltd., Class A

   Metals & Mining     5,860          46,933  

Zhejiang Jingsheng Mechanical & Electrical Co. Ltd., Class A

   Semiconductors & Semiconductor Equipment     5,800          55,143  

Zhejiang Jiuzhou Pharmaceutical Co. Ltd., Class A

   Pharmaceuticals     2,900          14,054  

Zhejiang Juhua Co. Ltd., Class A

   Chemicals     8,700          22,398  

Zhejiang Medicine Co. Ltd., Class A

   Pharmaceuticals     2,900          5,211  

Zhejiang NHU Co. Ltd., Class A

   Pharmaceuticals     11,856          30,990  

Zhejiang Sanhua Intelligent Controls Co. Ltd., Class A

   Machinery     2,900          10,874  

Zhejiang Supcon Technology Co. Ltd., Class A

   Electronic Equipment, Instruments & Components     1,728          26,131  

Zhejiang Supor Co. Ltd., Class A

   Household Durables     1,400          11,039  

bZhejiang Wanfeng Auto Wheel Co. Ltd., Class A

   Automobile Components     11,600          10,507  

bZhejiang Wanliyang Co. Ltd., Class A

   Machinery     5,800          7,964  

Zhejiang Weiming Environment Protection Co. Ltd., Class A, A

   Commercial Services & Supplies     780          2,072  

Zhejiang Weixing New Building Materials Co. Ltd., Class A

   Building Products     5,800          20,532  

Zhejiang Wolwo Bio-Pharmaceutical Co. Ltd., Class A

   Pharmaceuticals     2,900          20,101  

Zhejiang Yongtai Technology Co. Ltd., Class A

   Chemicals     2,900          8,834  

 

           
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FRANKLIN TEMPLETON ETF TRUST

SCHEDULE OF INVESTMENTS

 

Franklin FTSE China ETF (continued)

 

      Industry       Shares                Value  

Common Stocks (continued)

         

China (continued)

         

Zhengzhou Coal Mining Machinery Group Co. Ltd., Class A

   Machinery     5,800        $ 11,875  

Zheshang Securities Co. Ltd., Class A

   Capital Markets     5,800          8,505  

a,bZhongAn Online P&C Insurance Co. Ltd., Class H

   Insurance     37,700          118,864  

Zhongji Innolight Co. Ltd., Class A

   Machinery     2,900          24,873  

Zhongshan Public Utilities Group Co. Ltd., Class A

   Water Utilities     5,800          5,954  

Zhongsheng Group Holdings Ltd.

   Specialty Retail     35,500          175,014  

Zhongtai Securities Co. Ltd., Class A

   Capital Markets     8,700          8,488  

Zhuhai Huafa Properties Co. Ltd., Class A

   Real Estate Management & Development     8,700          13,657  

Zhuzhou CRRC Times Electric Co. Ltd., Class A, A

   Electrical Equipment     2,002          13,917  

Zhuzhou CRRC Times Electric Co. Ltd., Class H .

   Electrical Equipment     26,100          113,544  

Zhuzhou Kibing Group Co. Ltd., Class A

   Building Products     8,700          13,213  

Zijin Mining Group Co. Ltd., Class A

   Metals & Mining     72,500          130,805  

Zijin Mining Group Co. Ltd., Class H

   Metals & Mining     294,000          491,376  

Zoomlion Heavy Industry Science & Technology Co. Ltd., Class A

   Machinery     26,100          23,602  

Zoomlion Heavy Industry Science & Technology Co. Ltd., Class H

   Machinery     81,200          42,928  

ZTE Corp., Class A

   Communications Equipment     14,500          68,749  

ZTE Corp., Class H

   Communications Equipment     40,600          118,956  

ZTO Express Cayman, Inc.

   Air Freight & Logistics     22,198          633,425  
         

 

 

 
            109,967,110  
         

 

 

 

Hong Kong 3.7%

         

bAlibaba Health Information Technology Ltd., Class A

   Health Care Technology     244,000          176,551  

bAlibaba Pictures Group Ltd., Class A

   Media     580,000          37,682  

Beijing Enterprises Water Group Ltd., Class A

   Water Utilities     232,000          57,926  

Bosideng International Holdings Ltd., Class A

   Household Durables     201,000          112,151  

China Everbright Environment Group Ltd., Class B

   Commercial Services & Supplies     174,000          74,698  

China Everbright Ltd., Class A

   Capital Markets     42,000          30,122  

China Gas Holdings Ltd., Class A

   Gas Utilities     150,800          212,466  

China Mengniu Dairy Co. Ltd., Class B

   Food Products     159,000          652,208  

China Power International Development Ltd., Class H

   Independent Power Producers & Energy Traders     261,000          103,736  

China Resources Beer Holdings Co. Ltd., Class A

   Beverages     79,504          638,062  

China Resources Gas Group Ltd., Class A

   Gas Utilities     46,800          172,595  

China Resources Land Ltd., Class H

   Real Estate Management & Development     142,500          649,877  

China State Construction International Holdings Ltd., Class A

   Construction & Engineering     82,000          92,760  

China Traditional Chinese Medicine Holdings Co. Ltd.

   Pharmaceuticals     116,000          60,734  

COSCO SHIPPING Ports Ltd., Class B

   Transportation Infrastructure     58,000          38,716  

Far East Horizon Ltd.

   Financial Services     58,000          52,163  

Geely Automobile Holdings Ltd.

   Automobiles     280,000          360,257  

Guangdong Investment Ltd.

   Water Utilities     148,700          152,111  

Kingboard Laminates Holdings Ltd.

   Electronic Equipment, Instruments & Components     55,100          57,557  

Kunlun Energy Co. Ltd.

   Oil, Gas & Consumable Fuels     174,000          136,098  

Shanghai Industrial Holdings Ltd.

   Industrial Conglomerates     29,000          38,790  

Shougang Fushan Resources Group Ltd.

   Metals & Mining     58,000          18,398  

Sino Biopharmaceutical Ltd.

   Pharmaceuticals     493,000          276,333  

 

           
206             

Annual Report

  franklintempleton.com


FRANKLIN TEMPLETON ETF TRUST

SCHEDULE OF INVESTMENTS

 

Franklin FTSE China ETF (continued)

 

      Industry       Shares                Value  

Common Stocks (continued)

         

Hong Kong (continued)

         

Vinda International Holdings Ltd.

   Household Products     13,000        $ 31,432  
         

 

 

 
            4,233,423  
         

 

 

 

Singapore 0.0%

         

bYangzijiang Financial Holding Ltd.

   Capital Markets     124,700          35,171  

Yanlord Land Group Ltd.

   Real Estate Management & Development     31,900          21,834  
         

 

 

 
            57,005  
         

 

 

 

Total Investments
(Cost $140,465,875) 100.0%

            114,257,538  

Other Assets, less Liabilities 0.0%

            (23,182
         

 

 

 

Net Assets 100.0%

          $ 114,234,356  
         

 

 

 

 

 

Rounds to less than 0.1% of net assets.

aSecurity was purchased pursuant to Rule 144A under the Securities Act of 1933 and may be sold in transactions exempt from registration only to qualified institutional buyers or in a public offering registered under the Securities Act of 1933. At March 31, 2023, the value of was $13,685,854, representing 12.0% of net assets.

bNon-income producing.

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

See Abbreviations on page 355.

 

           
franklintempleton.com  

The accompanying notes are an integral part of these financial statements.    |   Annual Report

             207


FRANKLIN TEMPLETON ETF TRUST

 

Financial Highlights

 

Franklin FTSE Europe ETF

 

    Year Ended March 31,  
     2023      2022      2021      2020      2019  
Per share operating performance
(for a share outstanding throughout the year)
             

Net asset value, beginning of year

    $27.18        $27.28        $19.03        $23.24        $24.98  
Income from investment operationsa:              

Net investment incomeb

    1.11        0.85        0.60        0.76        0.86  

Net realized and unrealized gains (losses)

    (0.89      0.11        8.14        (4.21      (1.79

Total from investment operations

    0.22        0.96        8.74        (3.45      (0.93

Less distributions from net investment income

    (0.84      (1.06      (0.49      (0.76      (0.81

Net asset value, end of year

    $26.56        $27.18        $27.28        $19.03        $23.24  

Total returnc

    1.31%        3.30%        46.23%        (15.44)%        (3.69)%  
Ratios to average net assetsd              

Expenses before waiver and payments by affiliates

    0.24%e        0.09%        0.09%        0.09%        0.09%  

Expenses net of waiver and payments by affiliates

    0.24%e        0.09%        0.09%        0.09%        —%  

Net investment income

    4.50%        2.96%        2.53%        3.23%        3.61%  
Supplemental data              

Net assets, end of year (000’s)

        $111,558        $184,857        $229,126        $91,356        $74,359  

Portfolio turnover ratef

    5.22%g        5.47%g        5.00%g        4.47%g        5.81%  

 

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

 

bBased on average daily shares outstanding.

 

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

 

dRatios are annualized for periods less than one year, except for non-recurring expenses, if any.

 

eExpense ratios are including non-recurring European Union tax reclaim contingent fees that were incurred by the Fund during the period. Without these fees, the gross and net expense ratios would have been 0.09% and 0.09%, respectively, for the year ended March 31, 2023.

 

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

 

 

 

 

 

 

 

gPortfolio turnover rate excluding cash creations was as follows:     5.22%        5.47%        4.92%        4.47%         

 

           
208             

Annual Report    |   The accompanying notes are an integral part of these financial statements.

  franklintempleton.com


FRANKLIN TEMPLETON ETF TRUST

 

Schedule of Investments, March 31, 2023

 

Franklin FTSE Europe ETF

 

      Industry       Shares                Value  

Common Stocks 98.2%

         

Australia 1.4%

         

Glencore PLC

   Metals & Mining     135,345        $ 777,496  

Rio Tinto PLC

   Metals & Mining     11,655          789,425  
         

 

 

 
            1,566,921  
         

 

 

 

Austria 0.3%

         

ANDRITZ AG

   Machinery     735          49,749  

Erste Group Bank AG

   Banks     3,486          115,515  

OMV AG

   Oil, Gas & Consumable Fuels     1,554          71,349  

aRaiffeisen Bank International AG

   Banks     1,365          20,999  

Telekom Austria AG

   Diversified Telecommunication Services     1,512          11,417  

Verbund AG

   Electric Utilities     693          60,233  

voestalpine AG

   Metals & Mining     1,260          42,820  
         

 

 

 
            372,082  
         

 

 

 

Belgium 1.4%

         

Ackermans & van Haaren NV

   Financial Services     231          38,147  

Ageas SA

   Insurance     1,974          85,486  

Anheuser-Busch InBev SA

   Beverages     9,282          618,478  

D’ieteren Group

   Distributors     252          48,980  

Elia Group SA

   Electric Utilities     399          52,713  

Groupe Bruxelles Lambert NV

   Financial Services     1,050          89,551  

KBC Group NV

   Banks     2,961          203,635  

Lotus Bakeries NV

   Food Products     4          28,030  

Proximus SADP

   Diversified Telecommunication Services     1,491          14,407  

Sofina SA

   Financial Services     168          37,673  

Solvay SA

   Chemicals     756          86,530  

UCB SA

   Pharmaceuticals     1,281          114,735  

Umicore SA

   Chemicals     2,184          74,055  

Warehouses De Pauw CVA

   Diversified REITs     1,680          49,866  
         

 

 

 
            1,542,286  
         

 

 

 

Bermuda 0.1%

         

Hiscox Ltd.

   Insurance     3,528          48,377  
         

 

 

 

Chile 0.1%

         

Antofagasta PLC

   Metals & Mining     3,759          73,482  
         

 

 

 

Denmark 4.4%

         

AP Moller - Maersk AS, Class A

   Marine Transportation     30          53,205  

AP Moller - Maersk AS, Class B

   Marine Transportation     51          92,568  

Carlsberg AS, Class B

   Beverages     987          153,019  

Chr Hansen Holding AS

   Chemicals     1,092          82,976  

Coloplast AS, Class B

   Health Care Equipment & Supplies     1,428          187,816  

aDanske Bank AS

   Banks     7,056          142,014  

aDemant AS

   Health Care Equipment & Supplies     1,008          35,312  

DSV AS

   Air Freight & Logistics     1,911          369,711  

aGenmab AS

   Biotechnology     693          261,673  

H Lundbeck AS

   Pharmaceuticals     2,604          12,070  

aH Lundbeck AS, Class A

   Pharmaceuticals     651          2,765  

Novo Nordisk AS, Class B

   Pharmaceuticals     16,758          2,653,789  

Novozymes AS, Class B

   Chemicals     2,142          109,622  

bOrsted AS

   Electric Utilities     2,037          173,321  

Pandora AS

   Textiles, Apparel & Luxury Goods     924          88,323  

ROCKWOOL AS, Class B

   Building Products     63          15,441  

Royal Unibrew AS

   Beverages     525          45,788  

Tryg AS

   Insurance     3,759          82,180  

Vestas Wind Systems AS

   Electrical Equipment     10,794          313,278  
         

 

 

 
            4,874,871  
         

 

 

 

 

           
franklintempleton.com  

Annual Report

             209


FRANKLIN TEMPLETON ETF TRUST

SCHEDULE OF INVESTMENTS

 

Franklin FTSE Europe ETF (continued)

 

      Industry       Shares                Value  

Common Stocks (continued)

         

Finland 1.9%

         

Elisa Oyj

   Diversified Telecommunication Services     1,617        $ 97,607  

Fortum OYJ

   Electric Utilities     4,725          72,459  

Huhtamaki OYJ

   Containers & Packaging     987          36,673  

Kesko OYJ, Class B

   Consumer Staples Distribution & Retail     2,856          61,453  

Kojamo Oyj

   Real Estate Management & Development     2,079          24,507  

Kone OYJ, Class B

   Machinery     3,507          182,889  

Metso Outotec OYJ

   Machinery     6,447          70,324  

Neste OYJ

   Oil, Gas & Consumable Fuels     4,410          217,666  

Nokia OYJ

   Communications Equipment     60,480          296,707  

Nordea Bank Abp

   Banks     37,149          397,269  

Orion OYJ, Class B

   Pharmaceuticals     1,155          51,687  

Sampo Oyj, Class A

   Insurance     4,998          236,100  

Stora Enso OYJ, Class R

   Paper & Forest Products     6,174          80,359  

UPM-Kymmene OYJ

   Paper & Forest Products     5,691          191,363  

Valmet Oyj

   Machinery     1,785          57,869  

Wartsila OYJ Abp

   Machinery     5,250          49,555  
         

 

 

 
            2,124,487  
         

 

 

 

France 17.3%

         

aAccor SA

   Hotels, Restaurants & Leisure     1,953          63,591  

aAeroports de Paris

   Transportation Infrastructure     336          48,058  

Air Liquide SA

   Chemicals     5,481          918,235  

Airbus SE

   Aerospace & Defense     5,985          801,616  

bALD SA

   Ground Transportation     1,449          17,002  

Alstom SA

   Machinery     3,234          88,121  

bAmundi SA

   Capital Markets     609          38,409  

Arkema SA

   Chemicals     693          68,364  

AXA SA

   Insurance     20,034          613,038  

BioMerieux

   Health Care Equipment & Supplies     462          48,688  

BNP Paribas SA

   Banks     11,823          709,178  

Bollore SE

   Entertainment     10,605          65,559  

Bouygues SA

   Construction & Engineering     2,247          75,899  

Bureau Veritas SA

   Professional Services     3,087          88,777  

Capgemini SE

   IT Services     1,722          319,451  

Carrefour SA

   Consumer Staples Distribution & Retail     6,384          129,216  

Cie de Saint-Gobain

   Building Products     4,914          279,327  

Cie Generale des Etablissements Michelin SCA

   Automobile Components     7,539          230,529  

Covivio SA

   Diversified REITs     525          30,573  

Credit Agricole SA

   Banks     13,020          147,086  

Danone SA

   Food Products     6,552          407,957  

Dassault Aviation SA

   Aerospace & Defense     252          49,993  

Dassault Systemes SE

   Software     7,161          294,670  

Edenred

   IT Services     2,667          158,033  

Eiffage SA

   Construction & Engineering     798          86,473  

Engie SA

   Multi-Utilities     17,766          281,305  

EssilorLuxottica SA

   Textiles, Apparel & Luxury Goods     3,192          575,679  

Eurazeo SE

   Financial Services     525          37,360  

Gecina SA

   Diversified REITs     546          56,680  

Getlink SE

   Transportation Infrastructure     3,717          61,342  

Hermes International

   Textiles, Apparel & Luxury Goods     336          680,448  

ICADE

   Diversified REITs     336          15,821  

Ipsen SA

   Pharmaceuticals     378          41,684  

aJCDecaux SE

   Media     798          16,742  

Kering SA

   Textiles, Apparel & Luxury Goods     777          506,503  

Klepierre SA

   Diversified REITs     1,974          44,716  

bLa Francaise des Jeux SAEM

   Hotels, Restaurants & Leisure     924          38,539  

Legrand SA

   Electrical Equipment     2,856          260,892  

L’Oreal SA

   Personal Products     2,646          1,182,239  

 

           
210             

Annual Report

  franklintempleton.com


FRANKLIN TEMPLETON ETF TRUST

SCHEDULE OF INVESTMENTS

 

Franklin FTSE Europe ETF (continued)

 

      Industry       Shares                Value  

Common Stocks (continued)

         

France (continued)

         

LVMH Moet Hennessy Louis Vuitton SE

   Textiles, Apparel & Luxury Goods     2,646        $ 2,427,436  

bNeoen SA

   Independent Power Producers & Energy Traders     690          21,702  

Orange SA

   Diversified Telecommunication Services     20,538          244,378  

Pernod Ricard SA

   Beverages     2,184          495,205  

Publicis Groupe SA

   Media     2,415          188,335  

Remy Cointreau SA

   Beverages     273          49,829  

aRenault SA

   Automobiles     2,079          84,928  

Rexel SA

   Trading Companies & Distributors     2,604          62,099  

Safran SA

   Aerospace & Defense     3,738          554,509  

Sanofi

   Pharmaceuticals     11,676          1,271,583  

Sartorius Stedim Biotech

   Life Sciences Tools & Services     252          77,207  

Schneider Electric SE

   Electrical Equipment     5,691          950,201  

SCOR SE

   Insurance     1,575          35,832  

SEB SA

   Household Durables     315          35,866  

Societe Generale SA

   Banks     7,875          177,832  

Sodexo SA

   Hotels, Restaurants & Leisure     924          90,409  

aSOITEC

   Semiconductors & Semiconductor Equipment     273          43,778  

Teleperformance

   Professional Services     630          151,746  

Thales SA

   Aerospace & Defense     1,071          158,655  

TotalEnergies SE

   Oil, Gas & Consumable Fuels     24,381          1,439,928  

aUbisoft Entertainment SA

   Entertainment     945          25,113  

aUnibail-Rodamco-Westfield

   Diversified REITs     1,092          58,591  

Valeo SA

   Automobile Components     2,562          52,636  

Veolia Environnement SA

   Multi-Utilities     6,825          210,587  

Vinci SA

   Construction & Engineering     5,334          612,660  

Vivendi SE

   Media     7,392          74,689  

Wendel SE

   Financial Services     294          31,095  

a,bWorldline SA

   IT Services     2,646          112,431  
         

 

 

 
            19,317,053  
         

 

 

 

Germany 12.2%

         

adidas AG

   Textiles, Apparel & Luxury Goods     1,806          319,395  

Allianz SE

   Insurance     4,305          995,301  

BASF SE

   Chemicals     9,807          515,267  

Bayer AG

   Pharmaceuticals     10,542          672,541  

Bayerische Motoren Werke AG

   Automobiles     3,402          373,085  

Bechtle AG

   IT Services     903          43,157  

Beiersdorf AG

   Personal Products     1,071          139,572  

Brenntag SE

   Trading Companies & Distributors     1,638          123,149  

Carl Zeiss Meditec AG

   Health Care Equipment & Supplies     399          55,487  

aCommerzbank AG

   Banks     11,046          116,433  

Continental AG

   Automobile Components     1,155          86,484  

bCovestro AG

   Chemicals     1,911          79,166  

aCTS Eventim AG & Co. KGaA

   Entertainment     651          40,633  

aDaimler Truck Holding AG

   Machinery     4,515          152,605  

a,bDelivery Hero SE

   Internet & Direct Marketing Retail     1,995          67,993  

Deutsche Bank AG

   Capital Markets     21,714          220,719  

Deutsche Boerse AG

   Capital Markets     1,974          384,858  

aDeutsche Lufthansa AG

   Airlines     6,300          70,226  

Deutsche Post AG

   Air Freight & Logistics     10,395          486,643  

Deutsche Telekom AG

   Diversified Telecommunication Services     36,288          881,151  

Deutsche Wohnen SE

   Real Estate Management & Development     567          11,144  

bDWS Group GmbH & Co. KGaA

   Capital Markets     378          11,630  

E.ON SE

   Multi-Utilities     23,688          295,962  

Evonik Industries AG

   Chemicals     2,058          43,287  

Fielmann AG

   Specialty Retail     252          10,508  

aFraport AG Frankfurt Airport Services Worldwide

   Transportation Infrastructure     378          19,018  

 

           
franklintempleton.com  

Annual Report

             211


FRANKLIN TEMPLETON ETF TRUST

SCHEDULE OF INVESTMENTS

 

Franklin FTSE Europe ETF (continued)

 

      Industry       Shares                Value  

Common Stocks (continued)

         

Germany (continued)

         

Fresenius Medical Care AG & Co. KGaA

   Health Care Providers & Services     2,163        $ 91,885  

Fresenius SE & Co. KGaA

   Health Care Providers & Services     4,326          116,795  

Fuchs Petrolub SE

   Chemicals     357          12,237  

GEA Group AG

   Machinery     1,743          79,440  

Hannover Rueck SE

   Insurance     651          127,558  

HeidelbergCement AG

   Construction Materials     1,575          115,093  

Hella GmbH & Co. KGaA

   Automobile Components     231          20,115  

aHelloFresh SE

   Internet & Direct Marketing Retail     1,722          40,991  

Henkel AG & Co. KGaA

   Household Products     1,071          77,960  

HOCHTIEF AG

   Construction & Engineering     210          17,536  

Infineon Technologies AG

   Semiconductors & Semiconductor Equipment     13,965          571,691  

KION Group AG

   Machinery     777          30,061  

Knorr-Bremse AG

   Machinery     693          46,138  

LANXESS AG

   Chemicals     945          38,840  

LEG Immobilien SE

   Real Estate Management & Development     798          43,765  

Mercedes-Benz Group AG

   Automobiles     9,009          692,782  

Merck KGaA

   Pharmaceuticals     1,386          258,323  

aMETRO AG

   Consumer Staples Distribution & Retail     1,407          12,107  

MTU Aero Engines AG

   Aerospace & Defense     567          142,054  

Muenchener Rueckversicherungs-Gesellschaft AG in Muenchen

   Insurance     1,512          529,775  

Nemetschek SE

   Software     567          38,982  

Puma SE

   Textiles, Apparel & Luxury Goods     1,050          64,864  

Rational AG

   Machinery     63          42,231  

Rheinmetall AG

   Industrial Conglomerates     462          137,331  

RWE AG

   Multi-Utilities     6,783          292,123  

SAP SE

   Software     11,886          1,498,746  

Sartorius AG

   Health Care Equipment & Supplies     21          7,244  

bScout24 SE

   Interactive Media & Services     840          49,920  

Siemens AG

   Industrial Conglomerates     8,001          1,297,470  

aSiemens Energy AG

   Electrical Equipment     5,040          110,828  

bSiemens Healthineers AG

   Health Care Equipment & Supplies     2,982          171,774  

Sixt SE

   Ground Transportation     147          19,580  

Symrise AG

   Chemicals     1,386          150,883  

aTalanx AG

   Insurance     546          25,330  

Telefonica Deutschland Holding AG

   Diversified Telecommunication Services     9,597          29,580  

athyssenkrupp AG

   Metals & Mining     5,250          37,737  

Traton SE

   Machinery     525          10,284  

United Internet AG

   Diversified Telecommunication Services     924          15,932  

Volkswagen AG

   Automobiles     315          54,073  

Vonovia SE

   Real Estate Management & Development     7,707          145,192  

Wacker Chemie AG

   Chemicals     168          27,269  

a,bZalando SE

   Internet & Direct Marketing Retail     2,373          99,362  
         

 

 

 
            13,607,295  
         

 

 

 

Ireland 1.5%

         

AIB Group PLC

   Banks     12,222          49,689  

Bank of Ireland Group PLC

   Banks     11,466          116,151  

CRH PLC

   Construction Materials     8,043          405,896  

DCC PLC

   Industrial Conglomerates     1,050          61,253  

Experian PLC

   Professional Services     9,912          326,001  

aFlutter Entertainment PLC

   Hotels, Restaurants & Leisure     1,890          341,887  

Glanbia PLC

   Food Products     2,037          29,567  

Kerry Group PLC, Class A

   Food Products     1,659          165,534  

Kingspan Group PLC

   Building Products     1,638          112,186  

Smurfit Kappa Group PLC

   Containers & Packaging     2,814          101,806  
         

 

 

 
            1,709,970  
         

 

 

 

 

           
212             

Annual Report

  franklintempleton.com


FRANKLIN TEMPLETON ETF TRUST

SCHEDULE OF INVESTMENTS

 

Franklin FTSE Europe ETF (continued)

 

      Industry       Shares                Value  

Common Stocks (continued)

         

Isle Of Man 0.1%

         

Entain PLC

   Hotels, Restaurants & Leisure     6,300        $ 97,877  
         

 

 

 

 

Italy 3.4%

         

A2A SpA

   Multi-Utilities     16,401          26,194  

Amplifon SpA

   Health Care Providers & Services     1,407          48,825  

Assicurazioni Generali SpA

   Insurance     14,511          289,769  

Banca Mediolanum SpA

   Financial Services     2,667          24,218  

Banco BPM SpA

   Banks     14,721          57,657  

Buzzi Unicem SpA

   Construction Materials     903          21,937  

Davide Campari-Milano NV

   Beverages     5,439          66,478  

De’ Longhi SpA

   Household Durables     756          17,298  

DiaSorin SpA

   Health Care Equipment & Supplies     231          24,359  

Enel SpA

   Electric Utilities     83,076          507,881  

Eni SpA

   Oil, Gas & Consumable Fuels     23,688          332,147  

Ferrari NV

   Automobiles     1,281          346,961  

FinecoBank Banca Fineco SpA

   Banks     6,594          101,300  

Hera SpA

   Multi-Utilities     8,757          24,756  

bInfrastrutture Wireless Italiane SpA

   Diversified Telecommunication Services     3,738          49,221  

Interpump Group SpA

   Machinery     840          47,137  

Intesa Sanpaolo SpA

   Banks     173,334          445,845  

Italgas SpA

   Gas Utilities     5,313          32,469  

Leonardo SpA

   Aerospace & Defense     4,263          50,113  

Mediobanca Banca di Credito Finanziario SpA

   Banks     6,888          69,357  

Moncler SpA

   Textiles, Apparel & Luxury Goods     2,184          150,768  

a,bNexi SpA

   IT Services     5,859          47,652  

bPirelli & C SpA

   Automobile Components     5,355          26,890  

bPoste Italiane SpA

   Insurance     4,851          49,605  

Prysmian SpA

   Electrical Equipment     2,814          118,316  

Recordati Industria Chimica e Farmaceutica SpA

   Pharmaceuticals     1,071          45,333  

Reply SpA

   IT Services     252          31,622  

Snam SpA

   Gas Utilities     23,814          126,492  

aTelecom Italia SpA

   Diversified Telecommunication Services     112,791          37,277  

aTelecom Italia SpA

   Diversified Telecommunication Services     64,575          20,809  

Tenaris SA

   Energy Equipment & Services     4,956          70,536  

Terna - Rete Elettrica Nazionale

   Electric Utilities     15,225          125,151  

UniCredit SpA

   Banks     20,160          381,328  

UnipolSai Assicurazioni SpA

   Insurance     4,221          10,676  
         

 

 

 
            3,826,377  
         

 

 

 

 

Luxembourg 0.2%

         

ArcelorMittal SA

   Metals & Mining     5,124          155,152  

Eurofins Scientific SE

   Life Sciences Tools & Services     1,281          85,787  

RTL Group SA

   Media     399          19,698  

aSUSE SA

   Software     378          6,862  
         

 

 

 
            267,499  
         

 

 

 

 

Mexico 0.0%

         

Fresnillo PLC

   Metals & Mining     1,995          18,402  
         

 

 

 

 

Netherlands 9.0%

         

Aalberts NV

   Machinery     1,008          47,540  

bABN AMRO Bank NV

   Banks     4,242          67,379  

a,bAdyen NV

   IT Services     315          499,385  

Aegon NV

   Insurance     18,186          78,065  

Akzo Nobel NV

   Chemicals     1,869          146,161  

aArgenx SE

   Biotechnology     588          217,650  

ASM International NV

   Semiconductors & Semiconductor Equipment     483          195,156  

ASML Holding NV

   Semiconductors & Semiconductor Equipment     4,326          2,938,429  

 

           
franklintempleton.com  

Annual Report

             213


FRANKLIN TEMPLETON ETF TRUST

SCHEDULE OF INVESTMENTS

 

Franklin FTSE Europe ETF (continued)

 

      Industry       Shares                Value  

Common Stocks (continued)

         

Netherlands (continued)

         

ASR Nederland NV

   Insurance     1,533        $ 61,191  

BE Semiconductor Industries NV

   Semiconductors & Semiconductor Equipment     840          73,101  

bCTP NV

   Real Estate Management & Development     1,155          14,958  

bEuronext NV

   Capital Markets     861          66,023  

aEXOR NV

   Financial Services     1,092          89,977  

Heineken Holding NV

   Beverages     1,281          117,672  

Heineken NV

   Beverages     2,688          289,293  

IMCD NV

   Trading Companies & Distributors     609          99,512  

ING Groep NV

   Banks     38,829          461,090  

JDE Peet’s NV

   Food Products     861          25,088  

Koninklijke Ahold Delhaize NV

   Consumer Staples Distribution & Retail     10,269          351,326  

Koninklijke DSM NV

   Chemicals     1,869          220,723  

Koninklijke KPN NV

   Diversified Telecommunication Services     34,083          120,568  

Koninklijke Philips NV

   Health Care Equipment & Supplies     9,492          173,623  

Koninklijke Vopak NV

   Oil, Gas & Consumable Fuels     693          24,462  

NN Group NV

   Insurance     3,024          109,930  

OCI NV

   Chemicals     1,008          34,234  

Prosus NV

   Internet & Direct Marketing Retail     7,938          620,428  

aQIAGEN NV

   Life Sciences Tools & Services     2,331          106,138  

Randstad NV

   Professional Services     1,176          69,761  

Shell PLC

   Oil, Gas & Consumable Fuels     74,655          2,130,911  

bSignify NV

   Electrical Equipment     1,323          44,041  

Universal Music Group NV

   Entertainment     7,980          202,051  

Wolters Kluwer NV

   Professional Services     2,688          339,786  
         

 

 

 
            10,035,652  
         

 

 

 

Nigeria 0.0%

         

bAirtel Africa PLC

   Wireless Telecommunication Services     11,991          15,790  
         

 

 

 

Norway 1.1%

         

aAdevinta ASA, Class B

   Interactive Media & Services     3,045          21,588  

Aker ASA, Class A

   Financial Services     252          16,169  

Aker BP ASA

   Oil, Gas & Consumable Fuels     3,255          79,657  

a,bAutoStore Holdings Ltd.

   Machinery     7,539          16,175  

DNB Bank ASA

   Banks     11,025          197,223  

Equinor ASA

   Oil, Gas & Consumable Fuels     9,912          282,697  

Gjensidige Forsikring ASA

   Insurance     1,869          30,570  

Kongsberg Gruppen ASA

   Aerospace & Defense     777          31,367  

Leroy Seafood Group ASA

   Food Products     2,772          14,372  

Mowi ASA

   Food Products     4,683          86,478  

aNordic Semiconductor ASA

   Semiconductors & Semiconductor Equipment     1,638          24,946  

Norsk Hydro ASA

   Metals & Mining     14,427          107,172  

Orkla ASA

   Food Products     8,064          57,178  

Salmar ASA

   Food Products     735          31,988  

Schibsted ASA, Class A

   Media     819          13,826  

Schibsted ASA, Class B

   Media     1,050          16,803  

Telenor ASA

   Diversified Telecommunication Services     6,720          78,729  

TOMRA Systems ASA

   Commercial Services & Supplies     2,688          45,172  

Var Energi ASA

   Oil, Gas & Consumable Fuels     4,263          10,388  

Yara International ASA

   Chemicals     1,722          74,631  
         

 

 

 
            1,237,129  
         

 

 

 

Poland 0.4%

         

a,bAllegro.eu SA

   Internet & Direct Marketing Retail     4,137          28,142  

Bank Polska Kasa Opieki SA

   Banks     1,659          32,910  

a,bDino Polska SA

   Consumer Staples Distribution & Retail     504          45,755  

aInPost SA

   Air Freight & Logistics     2,121          19,384  

KGHM Polska Miedz SA

   Metals & Mining     1,449          41,119  

 

           
214             

Annual Report

  franklintempleton.com


FRANKLIN TEMPLETON ETF TRUST

SCHEDULE OF INVESTMENTS

 

Franklin FTSE Europe ETF (continued)

 

      Industry       Shares                Value  

Common Stocks (continued)

         

Poland (continued)

         

LPP SA

   Textiles, Apparel & Luxury Goods     12        $ 26,685  

Polski Koncern Naftowy ORLEN SA

   Oil, Gas & Consumable Fuels     6,237          84,317  

Powszechna Kasa Oszczednosci Bank Polski SA

   Banks     9,051          59,919  

Powszechny Zaklad Ubezpieczen SA

   Insurance     6,132          49,932  

Santander Bank Polska SA

   Banks     315          21,336  
         

 

 

 
            409,499  
         

 

 

 

Portugal 0.3%

         

EDP - Energias de Portugal SA

   Electric Utilities     30,051          163,767  

Galp Energia SGPS SA, Class B

   Oil, Gas & Consumable Fuels     5,460          62,049  

Jeronimo Martins SGPS SA

   Consumer Staples Distribution & Retail     2,961          69,551  
         

 

 

 
            295,367  
         

 

 

 

Russia 0.0%

         

a,cEvraz PLC

   Metals & Mining     10,404           
         

 

 

 

Spain 3.9%

         

Acciona SA

   Electric Utilities     252          50,568  

ACS Actividades de Construccion y Servicios SA

   Construction & Engineering     2,226          70,981  

a,bAena SME SA

   Transportation Infrastructure     756          122,300  

aAmadeus IT Group SA

   IT Services     4,830          323,564  

Banco Bilbao Vizcaya Argentaria SA

   Banks     64,533          460,705  

Banco Santander SA

   Banks     175,455          653,075  

Bankinter SA

   Banks     7,266          41,255  

CaixaBank SA

   Banks     41,013          159,698  

bCellnex Telecom SA

   Diversified Telecommunication Services     6,006          233,342  

Corp. ACCIONA Energias Renovables SA

   Independent Power Producers & Energy Traders     609          23,661  

EDP Renovaveis SA

   Independent Power Producers & Energy Traders     2,625          60,147  

Enagas SA

   Gas Utilities     2,625          50,479  

Endesa SA

   Electric Utilities     3,360          73,009  

Ferrovial SA

   Construction & Engineering     5,061          148,955  

aGrifols SA

   Biotechnology     3,507          34,703  

Iberdrola SA

   Electric Utilities     63,924          797,636  

Industria de Diseno Textil SA

   Specialty Retail     11,277          378,584  

Inmobiliaria Colonial Socimi SA

   Diversified REITs     3,507          22,194  

Mapfre SA

   Insurance     10,185          20,560  

Merlin Properties Socimi SA

   Diversified REITs     3,528          30,894  

Naturgy Energy Group SA

   Gas Utilities     1,554          46,851  

Red Electrica Corp. SA

   Electric Utilities     4,578          80,575  

Repsol SA

   Oil, Gas & Consumable Fuels     13,713          211,335  

Telefonica SA

   Diversified Telecommunication Services     53,613          231,419  
         

 

 

 
            4,326,490  
         

 

 

 

Sweden 4.8%

         

Alfa Laval AB

   Machinery     3,339          119,044  

Assa Abloy AB, Class B

   Building Products     10,437          249,915  

Atlas Copco AB, Class A

   Machinery     27,069          343,376  

Atlas Copco AB, Class B

   Machinery     16,233          186,570  

Axfood AB

   Consumer Staples Distribution & Retail     1,134          27,690  

Beijer Ref AB

   Trading Companies & Distributors     3,445          60,365  

Boliden AB

   Metals & Mining     2,898          113,969  

Castellum AB

   Real Estate Management & Development     2,835          32,917  

Electrolux AB, Class B

   Household Durables     2,415          29,326  

Epiroc AB, Class A

   Machinery     6,720          133,369  

Epiroc AB, Class B

   Machinery     4,011          68,252  

EQT AB

   Capital Markets     3,633          73,784  

Essity AB, Class B

   Household Products     6,531          186,680  

 

           
franklintempleton.com  

Annual Report

             215


FRANKLIN TEMPLETON ETF TRUST

SCHEDULE OF INVESTMENTS

 

Franklin FTSE Europe ETF (continued)

 

      Industry       Shares                Value  

Common Stocks (continued)

         

Sweden (continued)

         

bEvolution AB

   Hotels, Restaurants & Leisure     1,722        $ 230,529  

aFastighets AB Balder, Class B, B

   Real Estate Management & Development     6,762          27,721  

Getinge AB, Class B

   Health Care Equipment & Supplies     2,373          57,829  

H & M Hennes & Mauritz AB, Class B

   Specialty Retail     7,140          101,782  

Hexagon AB, Class B

   Electronic Equipment, Instruments & Components     20,118          230,581  

Holmen AB, Class B

   Paper & Forest Products     1,008          38,805  

Husqvarna AB, Class B

   Household Durables     4,494          38,935  

Industrivarden AB, Class A

   Financial Services     1,323          35,686  

Industrivarden AB, Class C

   Financial Services     1,617          43,538  

Indutrade AB

   Machinery     3,066          65,078  

Investment AB Latour, Class B

   Industrial Conglomerates     1,491          30,281  

Investor AB, Class A

   Financial Services     5,628          114,627  

Investor AB, Class B

   Financial Services     19,509          387,657  

aKinnevik AB, Class B

   Financial Services     2,541          37,859  

L E Lundbergforetagen AB, Class B

   Financial Services     798          36,069  

Lifco AB, Class B

   Industrial Conglomerates     2,415          51,935  

Nibe Industrier AB, Class B

   Building Products     15,708          178,446  

Saab AB, Class B

   Aerospace & Defense     966          58,782  

Sagax AB, Class B

   Real Estate Management & Development     1,806          41,590  

Sagax AB, Class D

   Real Estate Management & Development     1,260          3,184  

Sandvik AB

   Machinery     11,571          245,267  

Securitas AB, Class B

   Commercial Services & Supplies     5,124          45,599  

Skandinaviska Enskilda Banken AB, Class A

   Banks     17,556          193,598  

Skandinaviska Enskilda Banken AB, Class C

   Banks     231          2,958  

Skanska AB, Class B

   Construction & Engineering     3,801          58,117  

SKF AB, Class B

   Machinery     4,053          79,735  

SSAB AB, Class A

   Metals & Mining     2,562          18,886  

SSAB AB, Class B

   Metals & Mining     7,056          50,299  

Svenska Cellulosa AB SCA, Class B

   Paper & Forest Products     6,279          82,624  

Svenska Handelsbanken AB, Class A

   Banks     15,834          137,183  

Svenska Handelsbanken AB, Class B

   Banks     399          4,279  

Sweco AB, Class B

   Construction & Engineering     2,100          26,631  

Swedbank AB, Class A

   Banks     10,773          176,770  

aSwedish Orphan Biovitrum AB

   Biotechnology     1,890          44,017  

Tele2 AB, Class B

   Wireless Telecommunication Services     6,006          59,802  

Telefonaktiebolaget LM Ericsson, Class A

   Communications Equipment     399          2,551  

Telefonaktiebolaget LM Ericsson, Class B

   Communications Equipment     32,340          188,996  

Telia Co. AB

   Diversified Telecommunication Services     27,258          69,318  

Trelleborg AB, Class B

   Machinery     2,436          69,277  

Volvo AB, Class A

   Machinery     2,184          46,968  

Volvo AB, Class B

   Machinery     16,170          333,472  

aVolvo Car AB, Class B

   Automobiles     5,733          24,987  
         

 

 

 
            5,397,505  
         

 

 

 

Switzerland 14.5%

         

ABB Ltd.

   Electrical Equipment     16,248          557,933  

Adecco Group AG

   Professional Services     1,701          61,724  

Alcon, Inc.

   Health Care Equipment & Supplies     4,935          349,510  

Bachem Holding AG, Class B

   Life Sciences Tools & Services     336          33,617  

Baloise Holding AG

   Insurance     483          75,288  

Banque Cantonale Vaudoise

   Banks     294          27,773  

Barry Callebaut AG

   Food Products     42          89,145  

Belimo Holding AG

   Building Products     105          50,687  

BKW AG

   Electric Utilities     189          29,750  

Chocoladefabriken Lindt & Spruengli AG

   Food Products     22          260,084  

Cie Financiere Richemont SA, Class A

   Textiles, Apparel & Luxury Goods     5,481          875,352  

Clariant AG

   Chemicals     2,415          39,944  

Coca-Cola HBC AG

   Beverages     2,079          56,887  

 

           
216             

Annual Report

  franklintempleton.com


FRANKLIN TEMPLETON ETF TRUST

SCHEDULE OF INVESTMENTS

 

Franklin FTSE Europe ETF (continued)

 

      Industry       Shares                Value  

Common Stocks (continued)

         

Switzerland (continued)

         

Credit Suisse Group AG

   Capital Markets     38,766        $ 34,907  

DKSH Holding AG

   Professional Services     378          30,474  

Emmi AG

   Food Products     21          21,102  

EMS-Chemie Holding AG

   Chemicals     84          69,330  

aFlughafen Zurich AG

   Transportation Infrastructure     210          38,504  

Geberit AG

   Building Products     357          198,987  

Georg Fischer AG

   Machinery     882          68,451  

Givaudan SA

   Chemicals     84          273,364  

Helvetia Holding AG

   Insurance     378          52,714  

Julius Baer Group Ltd

   Capital Markets     2,268          154,717  

Kuehne & Nagel International AG

   Marine Transportation     525          156,256  

Logitech International SA

   Technology Hardware, Storage & Peripherals     1,512          87,885  

Lonza Group AG

   Life Sciences Tools & Services     798          478,162  

Nestle SA

   Food Products     28,917          3,528,092  

Novartis AG

   Pharmaceuticals     21,336          1,956,218  

Partners Group Holding AG

   Capital Markets     231          216,650  

PSP Swiss Property AG

   Real Estate Management & Development     483          54,986  

Roche Holding AG

   Pharmaceuticals     7,434          2,123,477  

Roche Holding AG

   Pharmaceuticals     315          94,822  

Schindler Holding AG, PC

   Machinery     441          97,560  

Schindler Holding AG

   Machinery     210          44,365  

SGS SA

   Professional Services     63          138,682  

SIG Group AG

   Containers & Packaging     3,486          89,750  

Sika AG

   Chemicals     1,554          434,620  

Sonova Holding AG

   Health Care Equipment & Supplies     546          160,534  

STMicroelectronics NV

   Semiconductors & Semiconductor Equipment     6,783          360,769  

Straumann Holding AG

   Health Care Equipment & Supplies     1,134          169,253  

Swatch Group AG

   Textiles, Apparel & Luxury Goods     315          108,063  

Swatch Group AG

   Textiles, Apparel & Luxury Goods     483          30,559  

Swiss Life Holding AG

   Insurance     336          207,143  

Swiss Prime Site AG

   Real Estate Management & Development     798          66,431  

Swiss Re AG

   Insurance     3,087          317,097  

Swisscom AG

   Diversified Telecommunication Services     273          174,280  

Tecan Group AG

   Life Sciences Tools & Services     126          55,059  

Temenos AG

   Software     651          45,094  

UBS Group AG

   Capital Markets     30,660          647,399  

bVAT Group AG

   Machinery     273          98,077  

Zurich Insurance Group AG

   Insurance     1,596          764,675  
         

 

 

 
            16,156,202  
         

 

 

 

United Kingdom 19.2%

         

3i Group PLC

   Capital Markets     10,185          212,196  

abrdn PLC

   Capital Markets     21,126          53,157  

Admiral Group PLC

   Insurance     3,108          78,318  

Allfunds Group PLC

   Capital Markets     3,633          23,998  

Anglo American PLC

   Metals & Mining     12,936          428,339  

Ashtead Group PLC

   Trading Companies & Distributors     4,683          287,083  

Associated British Foods PLC

   Food Products     3,696          88,656  

AstraZeneca PLC

   Pharmaceuticals     15,834          2,198,995  

bAuto Trader Group PLC

   Interactive Media & Services     9,807          74,720  

Aviva PLC

   Insurance     29,904          149,452  

B&M European Value Retail SA

   Broadline Retail     9,891          58,960  

BAE Systems PLC

   Aerospace & Defense     32,760          398,013  

Barclays PLC

   Banks     169,092          304,830  

Barratt Developments PLC

   Household Durables     10,773          62,139  

Beazley PLC

   Insurance     7,077          52,283  

Berkeley Group Holdings PLC

   Household Durables     1,134          58,848  

BP PLC

   Oil, Gas & Consumable Fuels     189,714          1,198,193  

 

           
franklintempleton.com  

Annual Report

             217


FRANKLIN TEMPLETON ETF TRUST

SCHEDULE OF INVESTMENTS

 

Franklin FTSE Europe ETF (continued)

 

      Industry       Shares                Value  

Common Stocks (continued)

         

United Kingdom (continued)

         

British American Tobacco PLC

   Tobacco     24,024        $ 843,756  

British Land Co. PLC

   Diversified REITs     9,744          46,722  

BT Group PLC

   Diversified Telecommunication Services     74,592          134,470  

Bunzl PLC

   Trading Companies & Distributors     3,633          137,321  

Burberry Group PLC

   Textiles, Apparel & Luxury Goods     4,032          128,922  

Centrica PLC

   Multi-Utilities     62,727          82,251  

CNH Industrial NV

   Machinery     10,647          162,869  

Compass Group PLC

   Hotels, Restaurants & Leisure     18,732          470,867  

bConvaTec Group PLC

   Health Care Equipment & Supplies     17,787          50,275  

Croda International PLC

   Chemicals     1,470          118,106  

Dechra Pharmaceuticals PLC

   Pharmaceuticals     1,176          38,533  

Derwent London PLC

   Diversified REITs     1,155          33,675  

Diageo PLC

   Beverages     23,814          1,064,136  

Direct Line Insurance Group PLC

   Insurance     14,427          24,528  

DS Smith PLC

   Containers & Packaging     13,545          52,672  

Endeavour Mining PLC

   Metals & Mining     1,932          47,729  

Ferguson PLC

   Trading Companies & Distributors     2,226          293,124  

GSK PLC

   Pharmaceuticals     42,840          756,934  

aHaleon PLC

   Personal Products     53,151          211,614  

Halma PLC

   Electronic Equipment, Instruments & Components     4,095          112,860  

Hargreaves Lansdown PLC

   Capital Markets     4,011          39,645  

Hikma Pharmaceuticals PLC

   Pharmaceuticals     1,785          36,968  

Howden Joinery Group PLC

   Trading Companies & Distributors     5,796          50,022  

HSBC Holdings PLC

   Banks     215,838          1,467,000  

IMI PLC

   Machinery     2,709          51,382  

Imperial Brands PLC

   Tobacco     9,954          229,414  

Informa PLC

   Media     15,057          128,943  

InterContinental Hotels Group PLC

   Hotels, Restaurants & Leisure     1,890          124,136  

Intermediate Capital Group PLC

   Capital Markets     2,940          44,240  

aInternational Consolidated Airlines Group SA

   Airlines     12,012          22,424  

Intertek Group PLC

   Professional Services     1,743          87,348  

ITV PLC

   Media     39,837          40,784  

J Sainsbury PLC

   Consumer Staples Distribution & Retail     18,522          63,827  

JD Sports Fashion PLC

   Specialty Retail     26,019          57,184  

Johnson Matthey PLC

   Chemicals     1,974          48,412  

a,bJust Eat Takeaway.com NV

   Internet & Direct Marketing Retail     2,142          40,795  

Kingfisher PLC

   Specialty Retail     20,937          67,618  

Land Securities Group PLC

   Diversified REITs     8,148          62,583  

Legal & General Group PLC

   Insurance     63,567          187,769  

Lloyds Banking Group PLC

   Banks     717,969          423,227  

London Stock Exchange Group PLC

   Capital Markets     4,179          406,549  

M&G PLC

   Financial Services     23,646          57,889  

Melrose Industries PLC

   Industrial Conglomerates     43,638          89,837  

Mondi PLC

   Paper & Forest Products     5,187          82,221  

National Grid PLC

   Multi-Utilities     39,060          529,563  

NatWest Group PLC

   Banks     58,044          189,182  

Next PLC

   Broadline Retail     1,323          107,506  

a,cNMC Health PLC

   Health Care Providers & Services     1,159           

aOcado Group PLC

   Consumer Staples Distribution & Retail     6,573          43,480  

Pearson PLC

   Media     7,686          80,246  

a,bPepco Group NV

   Broadline Retail     1,554          14,970  

Persimmon PLC

   Household Durables     3,360          52,180  

Phoenix Group Holdings PLC

   Insurance     7,791          52,636  

Prudential PLC

   Insurance     29,400          400,595  

Reckitt Benckiser Group PLC

   Household Products     7,665          583,618  

RELX PLC

   Professional Services     20,538          664,820  

Renishaw PLC

   Electronic Equipment, Instruments & Components     357          18,071  

 

           
218             

Annual Report

  franklintempleton.com


FRANKLIN TEMPLETON ETF TRUST

SCHEDULE OF INVESTMENTS

 

Franklin FTSE Europe ETF (continued)

 

      Industry       Shares                Value  

Common Stocks (continued)

         

United Kingdom (continued)

         

Rentokil Initial PLC

   Commercial Services & Supplies     27,111        $ 198,313  

Rightmove PLC

   Interactive Media & Services     8,694          60,521  

aRolls-Royce Holdings PLC

   Aerospace & Defense     90,027          165,880  

RS GROUP PLC

   Trading Companies & Distributors     5,145          58,144  

Sage Group PLC

   Software     10,878          104,238  

Schroders PLC

   Capital Markets     9,324          53,032  

Segro PLC

   Diversified REITs     12,852          121,978  

Severn Trent PLC

   Water Utilities     2,646          94,191  

Smith & Nephew PLC

   Health Care Equipment & Supplies     9,387          130,226  

Smiths Group PLC

   Industrial Conglomerates     3,801          80,671  

Spirax-Sarco Engineering PLC

   Machinery     798          116,972  

SSE PLC

   Electric Utilities     11,634          259,359  

St. James’s Place PLC

   Capital Markets     5,754          86,157  

Standard Chartered PLC

   Banks     25,410          192,971  

Tate & Lyle PLC

   Food Products     4,284          41,560  

Taylor Wimpey PLC

   Household Durables     38,409          56,490  

Tesco PLC

   Consumer Staples Distribution & Retail     77,553          254,781  

Unilever PLC

   Personal Products     26,922          1,394,755  

UNITE Group PLC

   Diversified REITs     3,381          40,111  

United Utilities Group PLC

   Water Utilities     7,245          94,956  

Vodafone Group PLC

   Wireless Telecommunication Services     252,945          279,289  

Weir Group PLC

   Machinery     2,772          63,716  

Whitbread PLC

   Hotels, Restaurants & Leisure     2,142          79,110  

aWise PLC, Class A

   IT Services     7,644          51,397  

WPP PLC

   Media     11,256          133,413  
         

 

 

 
            21,398,859  
         

 

 

 

United States 0.7%

         

Holcim AG, Class B

   Construction Materials     5,838          376,398  

Stellantis NV

   Automobiles     22,260          404,749  
         

 

 

 
            781,147  
         

 

 

 

Total Common Stocks
(Cost $113,038,895)

            109,500,619  
         

 

 

 

Preferred Stocks 0.6%

         

Germany 0.6%

         

dBayerische Motoren Werke AG, 6.172%, pfd.

   Automobiles     609          62,393  

dFuchs Petrolub SE, 2.744%, pfd.

   Chemicals     735          29,977  

dHenkel AG & Co. KGaA, 2.567%, pfd.

   Household Products     1,785          139,747  

dSartorius AG, 0.372%, pfd.

   Health Care Equipment & Supplies     273          114,785  

dSixt SE, 4.98%, pfd.

   Ground Transportation     168          13,634  

dVolkswagen AG, 21.188%, pfd.

   Automobiles     2,163          295,253  
         

 

 

 
            655,789  
         

 

 

 

 

           
franklintempleton.com  

Annual Report

             219


FRANKLIN TEMPLETON ETF TRUST

SCHEDULE OF INVESTMENTS

 

Franklin FTSE Europe ETF (continued)

 

      Industry       Shares                Value  

Preferred Stocks (continued)

         

Spain 0.0%

         

aGrifols SA, Class B, pfd.,B

   Biotechnology     2,730        $ 19,487  
         

 

 

 

Total Preferred Stocks
(Cost $751,406)

            675,276  
         

 

 

 

Total Investments
(Cost $113,790,301) 98.8%

            110,175,895  

Other Assets, less Liabilities 1.2%

            1,382,253  
         

 

 

 

Net Assets 100.0%

          $ 111,558,148  
         

 

 

 

Rounds to less than 0.1% of net assets.

aNon-income producing.

bSecurity was purchased pursuant to Rule 144A under the Securities Act of 1933 and may be sold in transactions exempt from registration only to qualified institutional buyers or in a public offering registered under the Securities Act of 1933. At March 31, 2023, the value of was $2,717,273, representing 2.4% of net assets.

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

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

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

 

Futures Contracts                                   
Description    Type     

Number of

Contracts

    

Notional 

Amount*

    

Expiration

Date

    

Value/Unrealized

Appreciation

(Depreciation)

 

Index Contracts

              

EURO STOXX 50 Index

     Long        18      $ 833,285        6/16/23      $ 29,100  

FTSE 100 Index

     Long        4        377,810        6/16/23        1,714  
              

 

 

 

Total Futures Contracts

               $ 30,814  
              

 

 

 

* As of year end.

See Note 7 regarding other derivative information.

See Abbreviations on page 355.

 

           
220             

Annual Report    |   The accompanying notes are an integral part of these financial statements.

  franklintempleton.com


FRANKLIN TEMPLETON ETF TRUST

 

Financial Highlights

 

Franklin FTSE Europe Hedged ETF

 

    Year Ended March 31,  
     2023      2022      2021      2020      2019  
Per share operating performance
(for a share outstanding throughout the year)
             

Net asset value, beginning of year

    $27.12        $25.72        $19.15        $22.81        $23.88  
Income from investment operationsa:              

Net investment incomeb

    0.86        0.76        0.59        0.73        0.79  

Net realized and unrealized gains (losses)

    0.65        1.51        6.45        (2.92      0.62  

Total from investment operations

    1.51        2.27        7.04        (2.19      1.41  

Less distributions from:

             

Net investment income

    (0.64      (0.87      (0.47      (1.47      (0.38

Net realized gains

    (4.39                           (2.10

Total distributions

    (5.03      (0.87      (0.47      (1.47      (2.48

Net asset value, end of year

        $23.60        $27.12        $25.72        $19.15        $22.81  

Total returnc

    7.53%        8.75%        36.92%        (10.67)%        6.98%  
Ratios to average net assetsd              

Expenses before waiver and payments by affiliates

    0.15%e        0.09%        0.09%        0.09%        0.09%  

Expenses net of waiver and payments by affiliates

    0.15%e        0.09%        0.09%        0.09%        0.09%  

Net investment income

    3.44%        2.77%        2.58%        3.10%        3.28%  
Supplemental data              

Net assets, end of year (000’s)

    $14,163        $21,695        $15,429        $3,831        $4,563  

Portfolio turnover ratef

    22.30%g        11.67%g        12.87%g        14.81%g        26.81%  

 

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

 

bBased on average daily shares outstanding.

 

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

 

dRatios are annualized for periods less than one year, except for non-recurring expenses, if any.

 

eExpense ratios are including non-recurring European Union tax reclaim contingent fees that were incurred by the Fund during the period. Without these fees, the gross and net expense ratios would have been 0.09% and 0.09%, respectively, for the year ended March 31, 2023.

 

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

 

 

 

 

 

 

 

gPortfolio turnover rate excluding cash creations was as follows:     22.37%        11.67%        12.87%        14.81%         

 

           
franklintempleton.com  

The accompanying notes are an integral part of these financial statements.    |   Annual Report

             221


FRANKLIN TEMPLETON ETF TRUST

 

Schedule of Investments, March 31, 2023

 

Franklin FTSE Europe Hedged ETF

 

      Industry       Shares                Value  

Common Stocks 98.4%

         

Australia 1.4%

         

Glencore PLC

   Metals & Mining     17,226        $ 98,956  

Rio Tinto PLC

   Metals & Mining     1,485          100,583  
         

 

 

 
            199,539  
         

 

 

 

Austria 0.4%

         

ANDRITZ AG

   Machinery     99          6,701  

Erste Group Bank AG

   Banks     453          15,011  

OMV AG

   Oil, Gas & Consumable Fuels     195          8,953  

aRaiffeisen Bank International AG

   Banks     177          2,723  

Telekom Austria AG

   Diversified Telecommunication Services     207          1,563  

Verbund AG

   Electric Utilities     93          8,083  

voestalpine AG

   Metals & Mining     162          5,506  
         

 

 

 
            48,540  
         

 

 

 

Belgium 1.4%

         

Ackermans & van Haaren NV

   Financial Services     30          4,954  

Ageas SA

   Insurance     249          10,783  

Anheuser-Busch InBev SA

   Beverages     1,176          78,359  

D’ieteren Group

   Distributors     27          5,248  

Elia Group SA

   Electric Utilities     51          6,738  

Groupe Bruxelles Lambert NV

   Financial Services     138          11,770  

KBC Group NV

   Banks     372          25,583  

Lotus Bakeries NV

   Food Products     1          7,008  

Proximus SADP

   Diversified Telecommunication Services     165          1,594  

Sofina SA

   Financial Services     21          4,709  

Solvay SA

   Chemicals     93          10,645  

UCB SA

   Pharmaceuticals     165          14,779  

Umicore SA

   Chemicals     279          9,460  

Warehouses De Pauw CVA

   Diversified REITs     213          6,322  
         

 

 

 
            197,952  
         

 

 

 

Bermuda 0.1%

         

Hiscox Ltd.

   Insurance     474          6,500  
         

 

 

 

Chile 0.1%

         

Antofagasta PLC

   Metals & Mining     462          9,031  
         

 

 

 

Denmark 4.4%

         

AP Moller - Maersk AS, Class A

   Marine Transportation     4          7,094  

AP Moller - Maersk AS, Class B

   Marine Transportation     6          10,890  

Carlsberg AS, Class B

   Beverages     126          19,534  

Chr Hansen Holding AS

   Chemicals     141          10,714  

Coloplast AS, Class B

   Health Care Equipment & Supplies     183          24,069  

aDanske Bank AS

   Banks     888          17,873  

aDemant AS

   Health Care Equipment & Supplies     126          4,414  

DSV AS

   Air Freight & Logistics     240          46,431  

aGenmab AS

   Biotechnology     90          33,984  

H Lundbeck AS

   Pharmaceuticals     399          1,849  

aH Lundbeck AS, Class A

   Pharmaceuticals     102          433  

Novo Nordisk AS, Class B

   Pharmaceuticals     2,133          337,781  

Novozymes AS, Class B

   Chemicals     270          13,818  

bOrsted AS

   Electric Utilities     261          22,208  

Pandora AS

   Textiles, Apparel & Luxury Goods     120          11,470  

ROCKWOOL AS, Class B

   Building Products     9          2,206  

Royal Unibrew AS

   Beverages     60          5,233  

Tryg AS

   Insurance     486          10,625  

Vestas Wind Systems AS

   Electrical Equipment     1,368          39,704  
         

 

 

 
            620,330  
         

 

 

 

 

           
222             

Annual Report

  franklintempleton.com


FRANKLIN TEMPLETON ETF TRUST

SCHEDULE OF INVESTMENTS

 

Franklin FTSE Europe Hedged ETF (continued)

 

      Industry       Shares                Value  

Common Stocks (continued)

         

Finland 1.9%

         

Elisa Oyj

   Diversified Telecommunication Services     210        $ 12,676  

Fortum OYJ

   Electric Utilities     576          8,833  

Huhtamaki OYJ

   Containers & Packaging     132          4,905  

Kesko OYJ, Class B

   Consumer Staples Distribution & Retail     345          7,423  

Kojamo Oyj

   Real Estate Management & Development     279          3,289  

Kone OYJ, Class B

   Machinery     441          22,998  

Metso Outotec OYJ

   Machinery     825          8,999  

Neste OYJ

   Oil, Gas & Consumable Fuels     567          27,986  

Nokia OYJ

   Communications Equipment     7,665          37,604  

Nordea Bank Abp

   Banks     4,716          50,433  

Orion OYJ, Class B

   Pharmaceuticals     135          6,041  

Sampo Oyj, Class A

   Insurance     633          29,902  

Stora Enso OYJ, Class R

   Paper & Forest Products     783          10,191  

UPM-Kymmene OYJ

   Paper & Forest Products     738          24,816  

Valmet Oyj

   Machinery     225          7,294  

Wartsila OYJ Abp

   Machinery     705          6,655  
         

 

 

 
            270,045  
         

 

 

 

France 17.3%

         

aAccor SA

   Hotels, Restaurants & Leisure     255          8,303  

aAeroports de Paris

   Transportation Infrastructure     45          6,436  

Air Liquide SA

   Chemicals     699          117,104  

Airbus SE

   Aerospace & Defense     762          102,060  

bALD SA

   Ground Transportation     189          2,218  

Alstom SA

   Machinery     414          11,281  

bAmundi SA

   Capital Markets     84          5,298  

Arkema SA

   Chemicals     87          8,583  

AXA SA

   Insurance     2,550          78,030  

BioMerieux

   Health Care Equipment & Supplies     60          6,323  

BNP Paribas SA

   Banks     1,503          90,154  

Bollore SE

   Entertainment     1,320          8,160  

Bouygues SA

   Construction & Engineering     285          9,627  

Bureau Veritas SA

   Professional Services     381          10,957  

Capgemini SE

   IT Services     216          40,070  

Carrefour SA

   Consumer Staples Distribution & Retail     819          16,577  

Cie de Saint-Gobain

   Building Products     624          35,470  

Cie Generale des Etablissements Michelin SCA

   Automobile Components     951          29,080  

Covivio SA

   Diversified REITs     69          4,018  

Credit Agricole SA

   Banks     1,638          18,504  

Danone SA

   Food Products     831          51,742  

Dassault Aviation SA

   Aerospace & Defense     33          6,547  

Dassault Systemes SE

   Software     912          37,528  

Edenred

   IT Services     339          20,087  

Eiffage SA

   Construction & Engineering     96          10,403  

Engie SA

   Multi-Utilities     2,265          35,864  

EssilorLuxottica SA

   Textiles, Apparel & Luxury Goods     405          73,042  

Eurazeo SE

   Financial Services     69          4,910  

Gecina SA

   Diversified REITs     66          6,851  

Getlink SE

   Transportation Infrastructure     492          8,120  

Hermes International

   Textiles, Apparel & Luxury Goods     42          85,056  

ICADE

   Diversified REITs     42          1,978  

Ipsen SA

   Pharmaceuticals     48          5,293  

aJCDecaux SE

   Media     93          1,951  

Kering SA

   Textiles, Apparel & Luxury Goods     96          62,580  

Klepierre SA

   Diversified REITs     255          5,776  

bLa Francaise des Jeux SAEM

   Hotels, Restaurants & Leisure     120          5,005  

Legrand SA

   Electrical Equipment     366          33,434  

L’Oreal SA

   Personal Products     336          150,126  

 

           
franklintempleton.com  

Annual Report

             223


FRANKLIN TEMPLETON ETF TRUST

SCHEDULE OF INVESTMENTS

 

Franklin FTSE Europe Hedged ETF (continued)

 

      Industry       Shares                Value  

Common Stocks (continued)

         

France (continued)

         

LVMH Moet Hennessy Louis Vuitton SE

   Textiles, Apparel & Luxury Goods     336        $ 308,246  

bNeoen SA

   Independent Power Producers & Energy Traders     76          2,390  

Orange SA

   Diversified Telecommunication Services     2,607          31,020  

Pernod Ricard SA

   Beverages     279          63,261  

Publicis Groupe SA

   Media     306          23,864  

Remy Cointreau SA

   Beverages     33          6,023  

aRenault SA

   Automobiles     273          11,152  

Rexel SA

   Trading Companies & Distributors     342          8,156  

Safran SA

   Aerospace & Defense     474          70,315  

Sanofi

   Pharmaceuticals     1,485          161,725  

Sartorius Stedim Biotech

   Life Sciences Tools & Services     33          10,110  

Schneider Electric SE

   Electrical Equipment     726          121,217  

SCOR SE

   Insurance     213          4,846  

SEB SA

   Household Durables     42          4,782  

Societe Generale SA

   Banks     1,020          23,033  

Sodexo SA

   Hotels, Restaurants & Leisure     120          11,741  

aSOITEC

   Semiconductors & Semiconductor Equipment     33          5,292  

Teleperformance

   Professional Services     81          19,510  

Thales SA

   Aerospace & Defense     135          19,999  

TotalEnergies SE

   Oil, Gas & Consumable Fuels     3,102          183,202  

aUbisoft Entertainment SA

   Entertainment     132          3,508  

aUnibail-Rodamco-Westfield

   Diversified REITs     135          7,243  

Valeo SA

   Automobile Components     324          6,657  

Veolia Environnement SA

   Multi-Utilities     864          26,659  

Vinci SA

   Construction & Engineering     678          77,875  

Vivendi SE

   Media     975          9,851  

Wendel SE

   Financial Services     39          4,125  

a,bWorldline SA

   IT Services     333          14,150  
         

 

 

 
            2,454,498  
         

 

 

 

Germany 12.2%

         

adidas AG

   Textiles, Apparel & Luxury Goods     228          40,322  

Allianz SE

   Insurance     549          126,927  

BASF SE

   Chemicals     1,248          65,571  

Bayer AG

   Pharmaceuticals     1,341          85,551  

Bayerische Motoren Werke AG

   Automobiles     432          47,376  

Bechtle AG

   IT Services     117          5,592  

Beiersdorf AG

   Personal Products     135          17,593  

Brenntag SE

   Trading Companies & Distributors     210          15,788  

Carl Zeiss Meditec AG

   Health Care Equipment & Supplies     51          7,092  

aCommerzbank AG

   Banks     1,440          15,179  

Continental AG

   Automobile Components     153          11,456  

bCovestro AG

   Chemicals     240          9,942  

aCTS Eventim AG & Co. KGaA

   Entertainment     84          5,243  

a Daimler Truck Holding AG

   Machinery     570          19,266  

a,bDelivery Hero SE

   Internet & Direct Marketing Retail     255          8,691  

Deutsche Bank AG

   Capital Markets     2,805          28,512  

Deutsche Boerse AG

   Capital Markets     249          48,546  

aDeutsche Lufthansa AG

   Airlines     852          9,497  

Deutsche Post AG

   Air Freight & Logistics     1,320          61,796  

Deutsche Telekom AG

   Diversified Telecommunication Services     4,617          112,111  

Deutsche Wohnen SE

   Real Estate Management & Development     57          1,120  

bDWS Group GmbH & Co. KGaA

   Capital Markets     42          1,292  

E.ON SE

   Multi-Utilities     3,021          37,745  

Evonik Industries AG

   Chemicals     270          5,679  

Fielmann AG

   Specialty Retail     39          1,626  

aFraport AG Frankfurt Airport Services Worldwide

   Transportation Infrastructure     48          2,415  

Fresenius Medical Care AG & Co. KGaA

   Health Care Providers & Services     270          11,470  

 

           
224             

Annual Report

  franklintempleton.com


FRANKLIN TEMPLETON ETF TRUST

SCHEDULE OF INVESTMENTS

 

Franklin FTSE Europe Hedged ETF (continued)

 

      Industry       Shares                Value  

Common Stocks (continued)

         

Germany (continued)

         

Fresenius SE & Co. KGaA

   Health Care Providers & Services     558        $ 15,065  

Fuchs Petrolub SE

   Chemicals     33          1,131  

GEA Group AG

   Machinery     231          10,528  

Hannover Rueck SE

   Insurance     78          15,283  

HeidelbergCement AG

   Construction Materials     198          14,469  

Hella GmbH & Co. KGaA

   Automobile Components     30          2,612  

aHelloFresh SE

   Internet & Direct Marketing Retail     231          5,499  

Henkel AG & Co. KGaA

   Household Products     141          10,264  

HOCHTIEF AG

   Construction & Engineering     33          2,756  

Infineon Technologies AG

   Semiconductors & Semiconductor Equipment     1,776          72,705  

KION Group AG

   Machinery     96          3,714  

Knorr-Bremse AG

   Machinery     93          6,192  

LANXESS AG

   Chemicals     114          4,686  

LEG Immobilien SE

   Real Estate Management & Development     105          5,759  

Mercedes-Benz Group AG

   Automobiles     1,173          90,202  

Merck KGaA

   Pharmaceuticals     174          32,430  

aMETRO AG

   Consumer Staples Distribution & Retail     162          1,394  

MTU Aero Engines AG

   Aerospace & Defense     72          18,039  

Muenchener Rueckversicherungs-Gesellschaft AG in Muenchen

   Insurance     192          67,273  

Nemetschek SE

   Software     78          5,363  

Puma SE

   Textiles, Apparel & Luxury Goods     132          8,154  

Rational AG

   Machinery     7          4,692  

Rheinmetall AG

   Industrial Conglomerates     60          17,835  

RWE AG

   Multi-Utilities     855          36,822  

SAP SE

   Software     1,512          190,653  

Sartorius AG

   Health Care Equipment & Supplies     4          1,380  

bScout24 SE

   Interactive Media & Services     105          6,240  

Siemens AG

   Industrial Conglomerates     1,017          164,920  

aSiemens Energy AG

   Electrical Equipment     612          13,458  

bSiemens Healthineers AG

   Health Care Equipment & Supplies     375          21,601  

Sixt SE

   Ground Transportation     18          2,398  

Symrise AG

   Chemicals     180          19,595  

aTalanx AG

   Insurance     75          3,479  

Telefonica Deutschland Holding AG

   Diversified Telecommunication Services     1,158          3,569  

athyssenkrupp AG

   Metals & Mining     714          5,132  

Traton SE

   Machinery     81          1,587  

United Internet AG

   Diversified Telecommunication Services     120          2,069  

Volkswagen AG

   Automobiles     39          6,695  

Vonovia SE

   Real Estate Management & Development     951          17,916  

Wacker Chemie AG

   Chemicals     21          3,409  

a,bZalando SE

   Internet & Direct Marketing Retail     303          12,687  
         

 

 

 
            1,733,053  
         

 

 

 

Ireland 1.5%

         

AIB Group PLC

   Banks     1,509          6,135  

Bank of Ireland Group PLC

   Banks     1,473          14,922  

CRH PLC

   Construction Materials     1,020          51,475  

DCC PLC

   Industrial Conglomerates     132          7,700  

Experian PLC

   Professional Services     1,254          41,244  

aFlutter Entertainment PLC

   Hotels, Restaurants & Leisure     240          43,414  

Glanbia PLC

   Food Products     249          3,614  

Kerry Group PLC, Class A

   Food Products     207          20,654  

Kingspan Group PLC

   Building Products     207          14,177  

Smurfit Kappa Group PLC

   Containers & Packaging     357          12,916  
         

 

 

 
            216,251  
         

 

 

 

 

           
franklintempleton.com  

Annual Report

             225


FRANKLIN TEMPLETON ETF TRUST

SCHEDULE OF INVESTMENTS

 

Franklin FTSE Europe Hedged ETF (continued)

 

      Industry       Shares                Value  

Common Stocks (continued)

         

Isle Of Man 0.1%

         

Entain PLC

   Hotels, Restaurants & Leisure     789        $ 12,258  
         

 

 

 

Italy 3.4%

         

A2A SpA

   Multi-Utilities     2,160          3,450  

Amplifon SpA

   Health Care Providers & Services     183          6,350  

Assicurazioni Generali SpA

   Insurance     1,848          36,903  

Banca Mediolanum SpA

   Financial Services     333          3,024  

Banco BPM SpA

   Banks     1,746          6,838  

Buzzi Unicem SpA

   Construction Materials     114          2,769  

Davide Campari-Milano NV

   Beverages     660          8,067  

De’ Longhi SpA

   Household Durables     96          2,197  

DiaSorin SpA

   Health Care Equipment & Supplies     30          3,164  

Enel SpA

   Electric Utilities     10,602          64,815  

Eni SpA

   Oil, Gas & Consumable Fuels     3,015          42,275  

Ferrari NV

   Automobiles     165          44,691  

FinecoBank Banca Fineco SpA

   Banks     825          12,674  

Hera SpA

   Multi-Utilities     1,107          3,129  

bInfrastrutture Wireless Italiane SpA

   Diversified Telecommunication Services     441          5,807  

Interpump Group SpA

   Machinery     105          5,892  

Intesa Sanpaolo SpA

   Banks     22,116          56,886  

Italgas SpA

   Gas Utilities     696          4,253  

Leonardo SpA

   Aerospace & Defense     570          6,701  

Mediobanca Banca di Credito Finanziario SpA

   Banks     867          8,730  

Moncler SpA

   Textiles, Apparel & Luxury Goods     276          19,053  

a,bNexi SpA

   IT Services     804          6,539  

bPirelli & C SpA

   Automobile Components     687          3,450  

bPoste Italiane SpA

   Insurance     618          6,319  

Prysmian SpA

   Electrical Equipment     360          15,136  

Recordati Industria Chimica e Farmaceutica SpA

   Pharmaceuticals     138          5,841  

Reply SpA

   IT Services     33          4,141  

Snam SpA

   Gas Utilities     3,021          16,046  

aTelecom Italia SpA

   Diversified Telecommunication Services     13,335          4,407  

aTelecom Italia SpA

   Diversified Telecommunication Services     7,782          2,508  

Tenaris SA

   Energy Equipment & Services     639          9,095  

Terna - Rete Elettrica Nazionale

   Electric Utilities     1,953          16,054  

UniCredit SpA

   Banks     2,559          48,404  

UnipolSai Assicurazioni SpA

   Insurance     480          1,214  
         

 

 

 
            486,822  
         

 

 

 

Luxembourg 0.2%

         

ArcelorMittal SA

   Metals & Mining     645          19,530  

Eurofins Scientific SE

   Life Sciences Tools & Services     168          11,251  

RTL Group SA

   Media     48          2,369  

aSUSE SA

   Software     63          1,144  
         

 

 

 
            34,294  
         

 

 

 

Mexico 0.0%

         

Fresnillo PLC

   Metals & Mining     237          2,186  
         

 

 

 

Netherlands 9.0%

         

Aalberts NV

   Machinery     138          6,508  

bABN AMRO Bank NV

   Banks     534          8,482  

a,bAdyen NV

   IT Services     41          64,999  

Aegon NV

   Insurance     2,268          9,736  

Akzo Nobel NV

   Chemicals     237          18,534  

aArgenx SE

   Biotechnology     75          27,762  

ASM International NV

   Semiconductors & Semiconductor Equipment     63          25,455  

ASML Holding NV

   Semiconductors & Semiconductor Equipment     549          372,907  

ASR Nederland NV

   Insurance     189          7,544  

 

           
226             

Annual Report

  franklintempleton.com


FRANKLIN TEMPLETON ETF TRUST

SCHEDULE OF INVESTMENTS

 

Franklin FTSE Europe Hedged ETF (continued)

 

      Industry       Shares                Value  

Common Stocks (continued)

         

Netherlands (continued)

         

BE Semiconductor Industries NV

   Semiconductors & Semiconductor Equipment     105        $ 9,138  

bCTP NV

   Real Estate Management & Development     165          2,137  

bEuronext NV

   Capital Markets     108          8,282  

aEXOR NV

   Financial Services     141          11,618  

Heineken Holding NV

   Beverages     165          15,157  

Heineken NV

   Beverages     339          36,484  

IMCD NV

   Trading Companies & Distributors     78          12,745  

ING Groep NV

   Banks     4,941          58,674  

JDE Peet’s NV

   Food Products     111          3,234  

Koninklijke Ahold Delhaize NV

   Consumer Staples Distribution & Retail     1,299          44,442  

Koninklijke DSM NV

   Chemicals     231          27,280  

Koninklijke KPN NV

   Diversified Telecommunication Services     4,446          15,728  

Koninklijke Philips NV

   Health Care Equipment & Supplies     1,200          21,950  

Koninklijke Vopak NV

   Oil, Gas & Consumable Fuels     90          3,177  

NN Group NV

   Insurance     393          14,287  

OCI NV

   Chemicals     135          4,585  

Prosus NV

   Internet & Direct Marketing Retail     1,008          78,784  

aQIAGEN NV

   Life Sciences Tools & Services     297          13,523  

Randstad NV

   Professional Services     150          8,898  

Shell PLC

   Oil, Gas & Consumable Fuels     9,501          271,191  

bSignify NV

   Electrical Equipment     168          5,593  

Universal Music Group NV

   Entertainment     1,017          25,750  

Wolters Kluwer NV

   Professional Services     342          43,232  
         

 

 

 
            1,277,816  
         

 

 

 

Nigeria 0.0%

         

bAirtel Africa PLC

   Wireless Telecommunication Services     1,425          1,876  
         

 

 

 

Norway 1.1%

         

aAdevinta ASA, Class B

   Interactive Media & Services     369          2,616  

Aker ASA, Class A

   Financial Services     33          2,117  

Aker BP ASA

   Oil, Gas & Consumable Fuels     420          10,278  

a,bAutoStore Holdings Ltd.

   Machinery     1,041          2,234  

DNB Bank ASA

   Banks     1,392          24,901  

Equinor ASA

   Oil, Gas & Consumable Fuels     1,260          35,936  

Gjensidige Forsikring ASA

   Insurance     243          3,975  

Kongsberg Gruppen ASA

   Aerospace & Defense     105          4,239  

Leroy Seafood Group ASA

   Food Products     309          1,602  

Mowi ASA

   Food Products     603          11,135  

aNordic Semiconductor ASA

   Semiconductors & Semiconductor Equipment     225          3,427  

Norsk Hydro ASA

   Metals & Mining     1,866          13,862  

Orkla ASA

   Food Products     1,032          7,317  

Salmar ASA

   Food Products     93          4,048  

Schibsted ASA, Class A

   Media     99          1,671  

Schibsted ASA, Class B

   Media     108          1,728  

Telenor ASA

   Diversified Telecommunication Services     849          9,947  

TOMRA Systems ASA

   Commercial Services & Supplies     312          5,243  

Var Energi ASA

   Oil, Gas & Consumable Fuels     495          1,206  

Yara International ASA

   Chemicals     216          9,361  
         

 

 

 
            156,843  
         

 

 

 

Poland 0.4%

         

a,bAllegro.eu SA

   Internet & Direct Marketing Retail     534          3,632  

Bank Polska Kasa Opieki SA

   Banks     204          4,047  

a,bDino Polska SA

   Consumer Staples Distribution & Retail     63          5,719  

aInPost SA

   Air Freight & Logistics     255          2,331  

KGHM Polska Miedz SA

   Metals & Mining     180          5,108  

LPP SA

   Textiles, Apparel & Luxury Goods     2          4,448  

 

           
franklintempleton.com  

Annual Report

             227


FRANKLIN TEMPLETON ETF TRUST

SCHEDULE OF INVESTMENTS

 

Franklin FTSE Europe Hedged ETF (continued)

 

      Industry       Shares                Value  

Common Stocks (continued)

         

Poland (continued)

         

Polski Koncern Naftowy ORLEN SA

   Oil, Gas & Consumable Fuels     792        $ 10,707  

Powszechna Kasa Oszczednosci Bank Polski SA

   Banks     1,152          7,626  

Powszechny Zaklad Ubezpieczen SA

   Insurance     807          6,571  

Santander Bank Polska SA

   Banks     39          2,642  
         

 

 

 
            52,831  
         

 

 

 

Portugal 0.3%

         

EDP - Energias de Portugal SA

   Electric Utilities     3,819          20,812  

Galp Energia SGPS SA, Class B

   Oil, Gas & Consumable Fuels     696          7,909  

Jeronimo Martins SGPS SA

   Consumer Staples Distribution & Retail     351          8,245  
         

 

 

 
            36,966  
         

 

 

 

Russia 0.0%

         

aEvraz PLC

   Metals & Mining     1,168           
         

 

 

 

Spain 3.9%

         

Acciona SA

   Electric Utilities     33          6,622  

ACS Actividades de Construccion y Servicios SA

   Construction & Engineering     286          9,120  

a,bAena SME SA

   Transportation Infrastructure     93          15,045  

aAmadeus IT Group SA

   IT Services     612          40,998  

Banco Bilbao Vizcaya Argentaria SA

   Banks     8,217          58,662  

Banco Santander SA

   Banks     22,329          83,112  

Bankinter SA

   Banks     879          4,991  

CaixaBank SA

   Banks     5,301          20,641  

bCellnex Telecom SA

   Diversified Telecommunication Services     765          29,721  

Corp. ACCIONA Energias Renovables SA

   Independent Power Producers & Energy Traders     75          2,914  

EDP Renovaveis SA

   Independent Power Producers & Energy Traders     318          7,286  

Enagas SA

   Gas Utilities     351          6,750  

Endesa SA

   Electric Utilities     432          9,387  

Ferrovial SA

   Construction & Engineering     651          19,160  

aGrifols SA

   Biotechnology     441          4,364  

Iberdrola SA

   Electric Utilities     8,136          101,520  

Industria de Diseno Textil SA

   Specialty Retail     1,434          48,141  

Inmobiliaria Colonial Socimi SA

   Diversified REITs     477          3,019  

Mapfre SA

   Insurance     1,338          2,701  

Merlin Properties Socimi SA

   Diversified REITs     495          4,335  

Naturgy Energy Group SA

   Gas Utilities     195          5,879  

Red Electrica Corp. SA

   Electric Utilities     579          10,191  

Repsol SA

   Oil, Gas & Consumable Fuels     1,743          26,862  

Telefonica SA

   Diversified Telecommunication Services     6,804          29,369  
         

 

 

 
            550,790  
         

 

 

 

Sweden 4.9%

         

Alfa Laval AB

   Machinery     420          14,974  

Assa Abloy AB, Class B

   Building Products     1,323          31,679  

Atlas Copco AB, Class A

   Machinery     3,447          43,726  

Atlas Copco AB, Class B

   Machinery     2,055          23,619  

Axfood AB

   Consumer Staples Distribution & Retail     153          3,736  

Beijer Ref AB

   Trading Companies & Distributors     432          7,570  

Boliden AB

   Metals & Mining     381          14,984  

Castellum AB

   Real Estate Management & Development     342          3,971  

Electrolux AB, Class B

   Household Durables     282          3,424  

Epiroc AB, Class A

   Machinery     846          16,790  

Epiroc AB, Class B

   Machinery     513          8,729  

EQT AB

   Capital Markets     462          9,383  

Essity AB, Class B

   Household Products     828          23,667  

bEvolution AB

   Hotels, Restaurants & Leisure     216          28,917  

aFastighets AB Balder, Class B, B

   Real Estate Management & Development     858          3,517  

Getinge AB, Class B

   Health Care Equipment & Supplies     297          7,238  

 

           
228             

Annual Report

  franklintempleton.com


FRANKLIN TEMPLETON ETF TRUST

SCHEDULE OF INVESTMENTS

 

Franklin FTSE Europe Hedged ETF (continued)

 

      Industry       Shares                Value  

Common Stocks (continued)

         

Sweden (continued)

         

H & M Hennes & Mauritz AB, Class B

   Specialty Retail     900        $ 12,830  

Hexagon AB, Class B

   Electronic Equipment, Instruments & Components     2,556          29,296  

Holmen AB, Class B

   Paper & Forest Products     129          4,966  

Husqvarna AB, Class B

   Household Durables     582          5,042  

Industrivarden AB, Class A

   Financial Services     186          5,017  

Industrivarden AB, Class C

   Financial Services     201          5,412  

Indutrade AB

   Machinery     381          8,087  

Investment AB Latour, Class B

   Industrial Conglomerates     207          4,204  

Investor AB, Class A

   Financial Services     717          14,603  

Investor AB, Class B

   Financial Services     2,481          49,299  

aKinnevik AB, Class B

   Financial Services     348          5,185  

L E Lundbergforetagen AB, Class B

   Financial Services     105          4,746  

Lifco AB, Class B

   Industrial Conglomerates     303          6,516  

Nibe Industrier AB, Class B

   Building Products     1,968          22,357  

Saab AB, Class B

   Aerospace & Defense     120          7,302  

Sagax AB, Class B

   Real Estate Management & Development     231          5,320  

Sagax AB, Class D

   Real Estate Management & Development     165          417  

Sandvik AB

   Machinery     1,467          31,096  

Securitas AB, Class B

   Commercial Services & Supplies     648          5,767  

Skandinaviska Enskilda Banken AB, Class A

   Banks     2,217          24,448  

Skandinaviska Enskilda Banken AB, Class C

   Banks     30          384  

Skanska AB, Class B

   Construction & Engineering     489          7,477  

SKF AB, Class B

   Machinery     513          10,092  

SSAB AB, Class A

   Metals & Mining     333          2,455  

SSAB AB, Class B

   Metals & Mining     918          6,544  

Svenska Cellulosa AB SCA, Class B

   Paper & Forest Products     795          10,461  

Svenska Handelsbanken AB, Class A

   Banks     2,004          17,362  

Svenska Handelsbanken AB, Class B

   Banks     60          643  

Sweco AB, Class B

   Construction & Engineering     282          3,576  

Swedbank AB, Class A

   Banks     1,392          22,841  

aSwedish Orphan Biovitrum AB

   Biotechnology     249          5,799  

Tele2 AB, Class B

   Wireless Telecommunication Services     777          7,737  

Telefonaktiebolaget LM Ericsson, Class A

   Communications Equipment     72          460  

Telefonaktiebolaget LM Ericsson, Class B

   Communications Equipment     4,089          23,896  

Telia Co. AB

   Diversified Telecommunication Services     3,387          8,613  

Trelleborg AB, Class B

   Machinery     312          8,873  

Volvo AB, Class A

   Machinery     273          5,871  

Volvo AB, Class B

   Machinery     2,061          42,504  

aVolvo Car AB, Class B

   Automobiles     732          3,190  
         

 

 

 
            686,612  
         

 

 

 

Switzerland 14.5%

         

ABB Ltd.

   Electrical Equipment     2,076          71,287  

Adecco Group AG

   Professional Services     213          7,729  

Alcon, Inc.

   Health Care Equipment & Supplies     627          44,406  

Bachem Holding AG, Class B

   Life Sciences Tools & Services     39          3,902  

Baloise Holding AG

   Insurance     60          9,353  

Banque Cantonale Vaudoise

   Banks     39          3,684  

Barry Callebaut AG

   Food Products     5          10,612  

Belimo Holding AG

   Building Products     12          5,793  

BKW AG

   Electric Utilities     24          3,778  

Chocoladefabriken Lindt & Spruengli AG

   Food Products     3          35,466  

Cie Financiere Richemont SA, Class A

   Textiles, Apparel & Luxury Goods     696          111,156  

Clariant AG

   Chemicals     321          5,309  

Coca-Cola HBC AG

   Beverages     261          7,142  

Credit Suisse Group AG

   Capital Markets     4,275          3,849  

DKSH Holding AG

   Professional Services     48          3,870  

Emmi AG

   Food Products     3          3,015  

 

           
franklintempleton.com  

Annual Report

             229


FRANKLIN TEMPLETON ETF TRUST

SCHEDULE OF INVESTMENTS

 

Franklin FTSE Europe Hedged ETF (continued)

 

      Industry       Shares                Value  

Common Stocks (continued)

         

Switzerland (continued)

         

EMS-Chemie Holding AG

   Chemicals     9        $ 7,428  

aFlughafen Zurich AG

   Transportation Infrastructure     27          4,951  

Geberit AG

   Building Products     45          25,082  

Georg Fischer AG

   Machinery     110          8,537  

Givaudan SA

   Chemicals     11          35,798  

Helvetia Holding AG

   Insurance     48          6,694  

Julius Baer Group Ltd.

   Capital Markets     282          19,237  

Kuehne & Nagel International AG

   Marine Transportation     69          20,537  

Logitech International SA

   Technology Hardware, Storage & Peripherals     195          11,334  

Lonza Group AG

   Life Sciences Tools & Services     102          61,119  

Nestle SA

   Food Products     3,675          448,378  

Novartis AG

   Pharmaceuticals     2,715          248,928  

Partners Group Holding AG

   Capital Markets     30          28,136  

PSP Swiss Property AG

   Real Estate Management & Development     63          7,172  

Roche Holding AG

   Pharmaceuticals     948          270,790  

Roche Holding AG

   Pharmaceuticals     39          11,740  

Schindler Holding AG, PC

   Machinery     57          12,610  

Schindler Holding AG

   Machinery     27          5,704  

SGS SA

   Professional Services     8          17,610  

SIG Group AG

   Containers & Packaging     447          11,508  

Sika AG

   Chemicals     198          55,376  

Sonova Holding AG

   Health Care Equipment & Supplies     69          20,287  

STMicroelectronics NV

   Semiconductors & Semiconductor Equipment     864          45,954  

Straumann Holding AG

   Health Care Equipment & Supplies     144          21,492  

Swatch Group AG

   Textiles, Apparel & Luxury Goods     39          13,379  

Swatch Group AG

   Textiles, Apparel & Luxury Goods     63          3,986  

Swiss Life Holding AG

   Insurance     42          25,893  

Swiss Prime Site AG

   Real Estate Management & Development     102          8,491  

Swiss Re AG

   Insurance     393          40,369  

Swisscom AG

   Diversified Telecommunication Services     35          22,344  

Tecan Group AG

   Life Sciences Tools & Services     17          7,429  

Temenos AG

   Software     75          5,195  

UBS Group AG

   Capital Markets     3,903          82,414  

bVAT Group AG

   Machinery     36          12,933  

Zurich Insurance Group AG

   Insurance     201          96,303  
         

 

 

 
            2,055,489  
         

 

 

 

United Kingdom 19.2%

         

3i Group PLC

   Capital Markets     1,293          26,939  

abrdn PLC

   Capital Markets     2,751          6,922  

Admiral Group PLC

   Insurance     387          9,752  

Allfunds Group PLC

   Capital Markets     405          2,675  

Anglo American PLC

   Metals & Mining     1,647          54,536  

Ashtead Group PLC

   Trading Companies & Distributors     597          36,598  

Associated British Foods PLC

   Food Products     471          11,298  

AstraZeneca PLC

   Pharmaceuticals     2,016          279,978  

bAuto Trader Group PLC

   Interactive Media & Services     1,236          9,417  

Aviva PLC

   Insurance     3,780          18,891  

B&M European Value Retail SA

   Broadline Retail     1,320          7,868  

BAE Systems PLC

   Aerospace & Defense     4,173          50,699  

Barclays PLC

   Banks     21,567          38,880  

Barratt Developments PLC

   Household Durables     1,317          7,596  

Beazley PLC

   Insurance     921          6,804  

Berkeley Group Holdings PLC

   Household Durables     144          7,473  

BP PLC

   Oil, Gas & Consumable Fuels     24,147          152,507  

British American Tobacco PLC

   Tobacco     3,057          107,366  

British Land Co. PLC

   Diversified REITs     1,248          5,984  

BT Group PLC

   Diversified Telecommunication Services     9,483          17,095  

 

           
230             

Annual Report

  franklintempleton.com


FRANKLIN TEMPLETON ETF TRUST

SCHEDULE OF INVESTMENTS

 

Franklin FTSE Europe Hedged ETF (continued)

 

      Industry       Shares                Value  

Common Stocks (continued)

         

United Kingdom (continued)

         

Bunzl PLC

   Trading Companies & Distributors     459        $ 17,349  

Burberry Group PLC

   Textiles, Apparel & Luxury Goods     525          16,787  

Centrica PLC

   Multi-Utilities     8,067          10,578  

CNH Industrial NV

   Machinery     1,338          20,468  

Compass Group PLC

   Hotels, Restaurants & Leisure     2,394          60,178  

bConvaTec Group PLC

   Health Care Equipment & Supplies     2,178          6,156  

Croda International PLC

   Chemicals     189          15,185  

Dechra Pharmaceuticals PLC

   Pharmaceuticals     141          4,620  

Derwent London PLC

   Diversified REITs     153          4,461  

Diageo PLC

   Beverages     3,030          135,396  

Direct Line Insurance Group PLC

   Insurance     1,884          3,203  

DS Smith PLC

   Containers & Packaging     1,728          6,720  

Endeavour Mining PLC

   Metals & Mining     243          6,003  

Ferguson PLC

   Trading Companies & Distributors     282          37,134  

GSK PLC

   Pharmaceuticals     5,454          96,366  

aHaleon PLC

   Personal Products     6,813          27,125  

Halma PLC

   Electronic Equipment, Instruments & Components     510          14,056  

Hargreaves Lansdown PLC

   Capital Markets     501          4,952  

Hikma Pharmaceuticals PLC

   Pharmaceuticals     228          4,722  

Howden Joinery Group PLC

   Trading Companies & Distributors     765          6,602  

HSBC Holdings PLC

   Banks     27,471          186,714  

IMI PLC

   Machinery     372          7,056  

Imperial Brands PLC

   Tobacco     1,263          29,109  

Informa PLC

   Media     1,944          16,648  

InterContinental Hotels Group PLC

   Hotels, Restaurants & Leisure     237          15,566  

Intermediate Capital Group PLC

   Capital Markets     378          5,688  

a International Consolidated Airlines Group SA

   Airlines     1,392          2,599  

Intertek Group PLC

   Professional Services     219          10,975  

ITV PLC

   Media     5,340          5,467  

J Sainsbury PLC

   Consumer Staples Distribution & Retail     2,421          8,343  

JD Sports Fashion PLC

   Specialty Retail     3,489          7,668  

Johnson Matthey PLC

   Chemicals     243          5,960  

a,bJust Eat Takeaway.com NV

   Internet & Direct Marketing Retail     288          5,485  

Kingfisher PLC

   Specialty Retail     2,769          8,943  

Land Securities Group PLC

   Diversified REITs     1,008          7,742  

Legal & General Group PLC

   Insurance     8,208          24,245  

Lloyds Banking Group PLC

   Banks     91,629          54,013  

London Stock Exchange Group PLC

   Capital Markets     534          51,950  

M&G PLC

   Financial Services     2,922          7,154  

Melrose Industries PLC

   Industrial Conglomerates     5,463          11,247  

Mondi PLC

   Paper & Forest Products     663          10,509  

National Grid PLC

   Multi-Utilities     4,974          67,436  

NatWest Group PLC

   Banks     7,332          23,897  

Next PLC

   Broadline Retail     168          13,652  

aNMC Health PLC

   Health Care Providers & Services     60           

aOcado Group PLC

   Consumer Staples Distribution & Retail     762          5,041  

Pearson PLC

   Media     981          10,242  

aPepco Group NV

   Broadline Retail     225          2,167  

Persimmon PLC

   Household Durables     426          6,616  

Phoenix Group Holdings PLC

   Insurance     987          6,668  

Prudential PLC

   Insurance     3,750          51,096  

Reckitt Benckiser Group PLC

   Household Products     975          74,237  

RELX PLC

   Professional Services     2,622          84,875  

Renishaw PLC

   Electronic Equipment, Instruments & Components     45          2,278  

Rentokil Initial PLC

   Commercial Services & Supplies     3,411          24,951  

Rightmove PLC

   Interactive Media & Services     1,080          7,518  

aRolls-Royce Holdings PLC

   Aerospace & Defense     11,364          20,939  

 

           
franklintempleton.com  

Annual Report

             231


FRANKLIN TEMPLETON ETF TRUST

SCHEDULE OF INVESTMENTS

 

Franklin FTSE Europe Hedged ETF (continued)

 

      Industry       Shares                Value  

Common Stocks (continued)

         

United Kingdom (continued)

         

RS GROUP PLC

   Trading Companies & Distributors     621        $ 7,018  

Sage Group PLC

   Software     1,392          13,339  

Schroders PLC

   Capital Markets     1,209          6,876  

Segro PLC

   Diversified REITs     1,662          15,774  

Severn Trent PLC

   Water Utilities     348          12,388  

Smith & Nephew PLC

   Health Care Equipment & Supplies     1,206          16,731  

Smiths Group PLC

   Industrial Conglomerates     474          10,060  

Spirax-Sarco Engineering PLC

   Machinery     99          14,512  

SSE PLC

   Electric Utilities     1,476          32,905  

St. James’s Place PLC

   Capital Markets     735          11,005  

Standard Chartered PLC

   Banks     3,282          24,924  

Tate & Lyle PLC

   Food Products     567          5,501  

Taylor Wimpey PLC

   Household Durables     4,701          6,914  

Tesco PLC

   Consumer Staples Distribution & Retail     9,768          32,090  

Unilever PLC

   Personal Products     3,426          177,492  

UNITE Group PLC

   Diversified REITs     429          5,090  

United Utilities Group PLC

   Water Utilities     933          12,228  

Vodafone Group PLC

   Wireless Telecommunication Services     32,193          35,546  

Weir Group PLC

   Machinery     351          8,068  

Whitbread PLC

   Hotels, Restaurants & Leisure     267          9,861  

aWise PLC, Class A

   IT Services     1,023          6,878  

WPP PLC

   Media     1,413          16,748  
         

 

 

 
            2,723,981  
         

 

 

 

United States 0.7%

         

Holcim AG, Class B

   Construction Materials     744          47,968  

Stellantis NV

   Automobiles     2,832          51,494  
         

 

 

 
            99,462  
         

 

 

 

Total Common Stocks
(Cost $13,989,837)

            13,933,965  
         

 

 

 

Preferred Stocks 0.6%

         

Germany 0.6%

         

cBayerische Motoren Werke AG, 6.172%, pfd.

   Automobiles     75          7,684  

cFuchs Petrolub SE, 2.744%, pfd.

   Chemicals     96          3,916  

cHenkel AG & Co. KGaA, 2.567%, pfd.

   Household Products     231          18,085  

cSartorius AG, 0.372%, pfd.

   Health Care Equipment & Supplies     33          13,875  

cSixt SE, 4.98%, pfd.

   Ground Transportation     21          1,704  

cVolkswagen AG, 21.188%, pfd.

   Automobiles     273          37,265  
         

 

 

 
            82,529  
         

 

 

 

Spain 0.0%

         

aGrifols SA, Class B, pfd.,B

   Biotechnology     351          2,505  
         

 

 

 

Total Preferred Stocks
(Cost $105,452)

            85,034  
         

 

 

 

Total Investments before Short-Term
Investments (Cost $14,095,289)

            14,018,999  
         

 

 

 

 

           
232             

Annual Report

  franklintempleton.com


FRANKLIN TEMPLETON ETF TRUST

SCHEDULE OF INVESTMENTS

 

Franklin FTSE Europe Hedged ETF (continued)

 

      Industry       Shares                Value  

Short-Term Investments 0.0%

         

Money Market Funds 0.0%

         

United States 0.0%

         

c,dInstitutional Fiduciary Trust - Money Market Portfolio, 4.47%

   Money Market Funds     4,136        $ 4,136  
         

 

 

 

Total Short-Term Investments
(Cost $4,136)

            4,136  
         

 

 

 

Total Investments (Cost $14,099,425) 99.0%

            14,023,135  

Other Assets, less Liabilities 1.0%

            139,757  
         

 

 

 

Net Assets 100.0%

          $ 14,162,892  
         

 

 

 

Rounds to less than 0.1% of net assets.

aNon-income producing.

bSecurity was purchased pursuant to Rule 144A under the Securities Act of 1933 and may be sold in transactions exempt from registration only to qualified institutional buyers or in a public offering registered under the Securities Act of 1933. At March 31, 2023, the value of was $344,465, representing 2.4% of net assets.

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

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

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

 

Forward Exchange Contracts  
Currency    Counterparty      Type      Quantity     

Contract

Amount

    

Settlement

Date

    

Unrealized

Appreciation

    

Unrealized

Depreciation

 

 

 
OTC Forward Exchange Contracts                     

Danish Krone

     BOFA           4,271,400      $ 609,997        4/04/23        $    —        $  (12,969

Danish Krone

     BOFA           4,271,400        622,957        4/04/23        9         

Euro

     UBSW           2,223,642        2,362,780        4/04/23               (53,096

Euro

     BOFA           2,223,642        2,362,784        4/04/23               (53,091

Euro

     HSBK           2,223,642        2,362,784        4/04/23               (53,091

Euro

     BOFA           2,223,642        2,415,911        4/04/23               (36

Euro

     HSBK           2,223,642        2,415,911        4/04/23               (36

Euro

     UBSW           2,223,642        2,415,900        4/04/23               (25

Great British Pound

     UBSW           2,882,000        3,491,114        4/04/23               (72,335

Great British Pound

     UBSW           2,882,000        3,563,483        4/04/23               (34

Norwegian Krone

     BOFA           1,743,300        166,458        4/04/23               (2

Norwegian Krone

     BOFA           1,743,300        168,776        4/04/23        2,321         

Polish Zloty

     BOFA           234,100        52,634        4/04/23               (1,706

Polish Zloty

     BOFA           234,100        54,341        4/04/23               (1

Swedish Krona

     BOFA           7,218,100        693,309        4/04/23               (2,777

Swedish Krona

     BOFA           7,218,100        696,097        4/04/23               (10

Swiss Franc

     UBSW           1,925,000        2,061,284        4/04/23               (45,881

Swiss Franc

     UBSW           1,925,000        2,107,185        4/04/23               (21

Danish Krone

     BOFA           4,306,300        629,171        5/02/23               (38

Euro

     BOFA           2,195,672        2,389,343        5/03/23               (25

Euro

     HSBK           2,195,672        2,389,365        5/03/23               (3

Euro

     UBSW           2,195,672        2,389,365        5/03/23               (3

Great British Pound

     UBSW           2,746,700        3,398,220        5/03/23        24         

Norwegian Krone

     BOFA           1,667,400        159,417        5/03/23               (6

Swedish Krona

     BOFA           7,130,000        688,729        5/03/23               (2

Swiss Franc

     UBSW           1,882,900        2,067,449        5/03/23               (62

 

           
franklintempleton.com  

Annual Report

             233


FRANKLIN TEMPLETON ETF TRUST

SCHEDULE OF INVESTMENTS

 

Franklin FTSE Europe Hedged ETF (continued)

 

Forward Exchange Contracts (continued)  
Currency    Counterparty      Type      Quantity     

Contract

Amount

    

Settlement

Date

    

Unrealized

Appreciation

    

Unrealized

Depreciation

 

 

 
OTC Forward Exchange Contracts (continued)

 

                 

Polish Zloty

     BOFA           227,000        $    52,591        5/04/23        $      —        $           (3
                 

 

 

 

Total Forward Exchange Contracts

                    $2,354        $(295,253
                 

 

 

 

Net unrealized appreciation (depreciation)

 

                 $(292,899
                 

 

 

 

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

 

Futures Contracts  
Description      Type       

Number of

Contracts

 

 

    

Notional

Amount

 

   

Expiration

Date

 

 

    

Value/Unrealized

Appreciation

(Depreciation)

 

 

 

 

 
Index Contracts              

EURO STOXX 50 Index

     Long        3        $138,881       6/16/23        $2,816  

*As of year end.

 

 

See Note 7 regarding other derivative information.

See Abbreviations on page 355.

 

           
234             

Annual Report    |   The accompanying notes are an integral part of these financial statements.

  franklintempleton.com


FRANKLIN TEMPLETON ETF TRUST

 

Financial Highlights

 

Franklin FTSE France ETF

 

    Year Ended March 31,  
     2023     2022     2021     2020     2019  
Per share operating performance
(for a share outstanding throughout the year)
         

Net asset value, beginning of year

    $28.82       $28.44       $19.34       $23.86       $25.33  
Income from investment operationsa:          

Net investment incomeb

    1.01       0.85       0.40       0.52       0.70  

Net realized and unrealized gains (losses)

    1.63       0.41       9.10       (4.47     (1.48

Total from investment operations

    2.64       1.26       9.50       (3.95     (0.78

Less distributions from net investment income

    (0.79     (0.88     (0.40     (0.57     (0.69

Net asset value, end of year

    $30.67       $28.82       $28.44       $19.34       $23.86  

Total returnc

    9.84%       4.23%       49.47%       (17.08)%       (3.07)%  
Ratios to average net assetsd          

Total expenses

    0.38%e       0.09%       0.09%       0.09%       0.09%  

Net investment income

    3.87%       2.77%       1.68%       2.14%       2.90%  
Supplemental data          

Net assets, end of year (000’s)

        $6,134       $10,088       $7,111       $8,702       $2,386  

Portfolio turnover ratef

    4.87%g       5.94%g       4.56%g       2.60%g       5.80%  

 

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

bBased on average daily shares outstanding.

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

dRatios are annualized for periods less than one year, except for non-recurring expenses, if any.

eExpense ratios are including non-recurring European Union tax reclaim contingent fees that were incurred by the Fund during the period. Without these fees, the gross and net expense ratios would have been 0.09% and 0.09%, respectively, for the year ended March 31, 2023.

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

 

 

 

 

 

 

gPortfolio turnover rate excluding cash creations was as follows:     4.87     5.94     4.56     2.60      

 

           
franklintempleton.com  

The accompanying notes are an integral part of these financial statements.    |   Annual Report

             235


FRANKLIN TEMPLETON ETF TRUST

 

Schedule of Investments, March 31, 2023

 

Franklin FTSE France ETF

 

      Industry       Shares                Value  

Common Stocks 98.6%

         

France 96.0%

         

aAccor SA

   Hotels, Restaurants & Leisure     604        $ 19,667  

aAeroports de Paris

   Transportation Infrastructure     108          15,447  

Air Liquide SA

   Chemicals     1,676          280,781  

Airbus SE

   Aerospace & Defense     1,828          244,838  

bALD SA

   Ground Transportation     440          5,163  

Alstom SA

   Machinery     992          27,030  

bAmundi SA

   Capital Markets     184          11,605  

Arkema SA

   Chemicals     212          20,914  

AXA SA

   Insurance     6,132          187,638  

BioMerieux

   Health Care Equipment & Supplies     140          14,754  

BNP Paribas SA

   Banks     3,620          217,138  

Bollore SE

   Entertainment     3,260          20,153  

Bouygues SA

   Construction & Engineering     684          23,104  

Bureau Veritas SA

   Professional Services     936          26,918  

Capgemini SE

   IT Services     524          97,208  

Carrefour SA

   Consumer Staples Distribution & Retail     1,940          39,267  

Cie de L’Odet SE

   Air Freight & Logistics     1          1,554  

Cie de Saint-Gobain

   Building Products     1,508          85,719  

Cie Generale des Etablissements Michelin SCA

   Automobile Components     2,288          69,963  

Covivio SA

   Diversified REITs     164          9,550  

Credit Agricole SA

   Banks     3,968          44,826  

Danone SA

   Food Products     2,000          124,529  

Dassault Aviation SA

   Aerospace & Defense     76          15,077  

Dassault Systemes SE

   Software     2,188          90,035  

Edenred

   IT Services     820          48,589  

Eiffage SA

   Construction & Engineering     240          26,007  

Engie SA

   Multi-Utilities     5,448          86,263  

EssilorLuxottica SA

   Textiles, Apparel & Luxury Goods     976          176,022  

Eurazeo SE

   Financial Services     160          11,386  

Gecina SA

   Diversified REITs     168          17,440  

Getlink SE

   Transportation Infrastructure     1,144          18,880  

Hermes International

   Textiles, Apparel & Luxury Goods     102          206,565  

ICADE

   Diversified REITs     104          4,897  

Ipsen SA

   Pharmaceuticals     112          12,351  

aJCDecaux SE

   Media     236          4,951  

Kering SA

   Textiles, Apparel & Luxury Goods     236          153,841  

Klepierre SA

   Diversified REITs     628          14,226  

bLa Francaise des Jeux SAEM

   Hotels, Restaurants & Leisure     288          12,012  

Legrand SA

   Electrical Equipment     876          80,022  

L’Oreal SA

   Personal Products     808          361,017  

LVMH Moet Hennessy Louis Vuitton SE

   Textiles, Apparel & Luxury Goods     809          742,175  

bNeoen SA

   Independent Power Producers & Energy Traders     200          6,291  

Orange SA

   Diversified Telecommunication Services     6,292          74,867  

Pernod Ricard SA

   Beverages     672          152,371  

Publicis Groupe SA

   Media     740          57,709  

Remy Cointreau SA

   Beverages     80          14,602  

aRenault SA

   Automobiles     628          25,654  

Rexel SA

   Trading Companies & Distributors     792          18,887  

Safran SA

   Aerospace & Defense     1,144          169,705  

Sanofi

   Pharmaceuticals     3,572          389,011  

Sartorius Stedim Biotech

   Life Sciences Tools & Services     79          24,204  

Schneider Electric SE

   Electrical Equipment     1,744          291,188  

SCOR SE

   Insurance     488          11,102  

SEB SA

   Household Durables     100          11,386  

Societe Generale SA

   Banks     2,412          54,468  

Sodexo SA

   Hotels, Restaurants & Leisure     284          27,788  

aSOITEC

   Semiconductors & Semiconductor Equipment     84          13,470  

 

           
236             

Annual Report

  franklintempleton.com


FRANKLIN TEMPLETON ETF TRUST

SCHEDULE OF INVESTMENTS

 

Franklin FTSE France ETF (continued)

 

      Industry       Shares                Value  

Common Stocks (continued)

         

France (continued)

         

Teleperformance

   Professional Services     191        $ 46,005  

Thales SA

   Aerospace & Defense     328          48,589  

TotalEnergies SE

   Oil, Gas & Consumable Fuels     7,460          440,583  

aUbisoft Entertainment SA

   Entertainment     312          8,291  

Valeo SA

   Automobile Components     784          16,107  

Veolia Environnement SA

   Multi-Utilities     2,088          64,426  

Vinci SA

   Construction & Engineering     1,628          186,991  

Vivendi SE

   Media     2,280          23,037  

Wendel SE

   Financial Services     88          9,307  

a,bWorldline SA

   IT Services     800          33,993  
         

 

 

 
            5,889,554  
         

 

 

 

Luxembourg 0.5%

         

Eurofins Scientific SE

   Life Sciences Tools & Services     404          27,055  
         

 

 

 

Netherlands 0.3%

         

bEuronext NV

   Capital Markets     268          20,551  
         

 

 

 

Switzerland 1.8%

         

STMicroelectronics NV

   Semiconductors & Semiconductor Equipment     2,076          110,417  
         

 

 

 

Total Investments
(Cost $5,871,994) 98.6%

            6,047,577  

Other Assets, less Liabilities 1.4%

            86,204  
         

 

 

 

Net Assets 100.0%

          $ 6,133,781  
         

 

 

 

aNon-income producing.

bSecurity was purchased pursuant to Rule 144A under the Securities Act of 1933 and may be sold in transactions exempt from registration only to qualified institutional buyers or in a public offering registered under the Securities Act of 1933. At March 31, 2023, the value of was $89,615, representing 1.5% of net assets.

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

 

Futures Contracts  
Description     Type      

Number of

Contracts

 

 

   

Notional

Amount

 

   

Expiration

Date

 

 

   

Value/Unrealized

Appreciation

(Depreciation)

 

 

 

 

 
Index Contracts                              

CAC40 10 Euro

      1       $79,680       4/21/23       $2,470  

*As of year end.

See Note 7 regarding other derivative information.

See Abbreviations on page 355.

 

           
franklintempleton.com  

The accompanying notes are an integral part of these financial statements.    |   Annual Report

             237


FRANKLIN TEMPLETON ETF TRUST

 

Financial Highlights

 

Franklin FTSE Germany ETF

 

    Year Ended March 31,  
     2023      2022      2021      2020      2019  
Per share operating performance
(for a share outstanding throughout the year)
             

Net asset value, beginning of year

    $22.37        $25.98        $16.73        $20.70        $24.60  
Income from investment operationsa:              

Net investment incomeb

    0.60        0.70        0.61        0.52        0.53  

Net realized and unrealized gains (losses)

    (0.20      (3.63      9.29        (3.92      (3.83

Total from investment operations

    0.40        (2.93      9.90        (3.40      (3.30

Less distributions from net investment income

    (0.67      (0.68      (0.65      (0.57      (0.60

Net asset value, end of year

    $22.10        $22.37        $25.98        $16.73        $20.70  

Total returnc

    2.41%        (11.68)%        59.79%        (17.00)%        (13.72)%  
Ratios to average net assetsd              

Total expenses

    0.09%        0.09%        0.09%        0.09%        0.09%  

Net investment income

    3.11%        2.73%        2.66%        2.46%        2.44%  
Supplemental data              

Net assets, end of year (000’s)

    $17,683        $16,775        $9,093        $4,182        $4,140  

Portfolio turnover ratee

    4.21%f        6.70%f        5.79%f        5.74%f        10.75%  

 

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

bBased on average daily shares outstanding.

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

dRatios are annualized for periods less than one year.

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

 

 

 

 

 

fPortfolio turnover rate excluding cash creations was as follows:     4.21%        6.70%        5.79%        5.74%         

 

           
238             

Annual Report    |   The accompanying notes are an integral part of these financial statements.

  franklintempleton.com


FRANKLIN TEMPLETON ETF TRUST

 

Schedule of Investments, March 31, 2023

 

Franklin FTSE Germany ETF

 

      Industry       Shares                Value  

Common Stocks 95.4%

         

Germany 94.5%

         

adidas AG

   Textiles, Apparel & Luxury Goods     2,208        $ 390,490  

Allianz SE

   Insurance     5,296          1,224,417  

BASF SE

   Chemicals     12,064          633,851  

Bayer AG

   Pharmaceuticals     12,960          826,801  

Bayerische Motoren Werke AG

   Automobiles     4,176          457,966  

Bechtle AG

   IT Services     1,088          51,999  

Beiersdorf AG

   Personal Products     1,312          170,979  

Brenntag SE

   Trading Companies & Distributors     2,048          153,973  

Carl Zeiss Meditec AG

   Health Care Equipment & Supplies     480          66,752  

aCommerzbank AG

   Banks     13,728          144,703  

Continental AG

   Automobile Components     1,424          106,626  

bCovestro AG

   Chemicals     2,336          96,772  

aCTS Eventim AG & Co. KGaA

   Entertainment     768          47,936  

aDaimler Truck Holding AG

   Machinery     5,536          187,114  

a,bDelivery Hero SE

   Internet & Direct Marketing Retail     2,464          83,978  

Deutsche Bank AG

   Capital Markets     26,704          271,442  

Deutsche Boerse AG

   Capital Markets     2,416          471,032  

aDeutsche Lufthansa AG

   Airlines     7,872          87,749  

Deutsche Post AG

   Air Freight & Logistics     12,752          596,987  

Deutsche Telekom AG

   Diversified Telecommunication Services     44,592          1,082,790  

Deutsche Wohnen SE

   Real Estate Management & Development     672          13,207  

bDWS Group GmbH & Co. KGaA

   Capital Markets     448          13,784  

E.ON SE

   Multi-Utilities     29,184          364,630  

Evonik Industries AG

   Chemicals     2,512          52,837  

Fielmann AG

   Specialty Retail     320          13,343  

aFraport AG Frankfurt Airport Services Worldwide

   Transportation Infrastructure     464          23,345  

Fresenius Medical Care AG & Co. KGaA

   Health Care Providers & Services     2,672          113,507  

Fresenius SE & Co. KGaA

   Health Care Providers & Services     5,376          145,143  

Fuchs Petrolub SE

   Chemicals     448          15,356  

GEA Group AG

   Machinery     2,160          98,445  

Hannover Rueck SE

   Insurance     800          156,753  

HeidelbergCement AG

   Construction Materials     1,904          139,134  

Hella GmbH & Co. KGaA

   Automobile Components     304          26,472  

aHelloFresh SE

   Internet & Direct Marketing Retail     2,160          51,417  

Henkel AG & Co. KGaA

   Household Products     1,328          96,668  

HOCHTIEF AG

   Construction & Engineering     272          22,713  

Infineon Technologies AG

   Semiconductors & Semiconductor Equipment     17,168          702,814  

KION Group AG

   Machinery     944          36,522  

Knorr-Bremse AG

   Machinery     864          57,523  

LANXESS AG

   Chemicals     1,136          46,690  

LEG Immobilien SE

   Real Estate Management & Development     976          53,528  

Mercedes-Benz Group AG

   Automobiles     11,072          851,425  

Merck KGaA

   Pharmaceuticals     1,712          319,083  

aMETRO AG

   Consumer Staples Distribution & Retail     1,728          14,869  

MTU Aero Engines AG

   Aerospace & Defense     704          176,377  

Muenchener Rueckversicherungs-Gesellschaft AG in Muenchen

   Insurance     1,840          644,699  

Nemetschek SE

   Software     704          48,400  

Puma SE

   Textiles, Apparel & Luxury Goods     1,312          81,050  

Rational AG

   Machinery     64          42,902  

Rheinmetall AG

   Industrial Conglomerates     576          171,218  

RWE AG

   Multi-Utilities     8,320          358,316  

SAP SE

   Software     14,608          1,841,972  

Sartorius AG

   Health Care Equipment & Supplies     32          11,038  

bScout24 SE

   Interactive Media & Services     1,024          60,855  

Siemens AG

   Industrial Conglomerates     9,824          1,593,094  

 

           
franklintempleton.com  

Annual Report

             239


FRANKLIN TEMPLETON ETF TRUST

SCHEDULE OF INVESTMENTS

 

Franklin FTSE Germany ETF (continued)

 

      Industry       Shares                Value  

Common Stocks (continued)

         

Germany (continued)

         

aSiemens Energy AG

   Electrical Equipment     6,208        $ 136,512  

bSiemens Healthineers AG

   Health Care Equipment & Supplies     3,648          210,138  

Sixt SE

   Ground Transportation     176          23,443  

Symrise AG

   Chemicals     1,712          186,372  

Talanx AG

   Insurance     720          33,402  

Telefonica Deutschland Holding AG

   Diversified Telecommunication Services     11,728          36,149  

thyssenkrupp AG

   Metals & Mining     6,416          46,118  

Traton SE

   Machinery     656          12,850  

United Internet AG

   Diversified Telecommunication Services     1,136          19,587  

Volkswagen AG

   Automobiles     384          65,917  

Vonovia SE

   Real Estate Management & Development     9,312          175,429  

Wacker Chemie AG

   Chemicals     192          31,165  

a,bZalando SE

   Internet & Direct Marketing Retail     2,912          121,931  
         

 

 

 
            16,712,499  
         

 

 

 

Luxembourg 0.2%

         

RTL Group SA

   Media     496          24,487  

aSUSE SA

   Software     512          9,295  
         

 

 

 
            33,782  
         

 

 

 

Netherlands 0.7%

         

aQIAGEN NV

   Life Sciences Tools & Services     2,896          131,864  
         

 

 

 

Total Common Stocks (Cost $18,187,050)

   .          16,878,145  
         

 

 

 

Preferred Stocks 4.6%

         

Germany 4.6%

         

cBayerische Motoren Werke AG, 6.172%, pfd.

   Automobiles     768          78,683  

cFuchs Petrolub SE, 2.744%, pfd.

   Chemicals     912          37,196  

cHenkel AG & Co. KGaA, 2.567%, pfd.

   Household Products     2,224          174,116  

cSartorius AG, 0.372%, pfd.

   Health Care Equipment & Supplies     320          134,546  

cSixt SE, 4.98%, pfd.

   Ground Transportation     224          18,180  

cVolkswagen AG, 21.188%, pfd.

   Automobiles     2,656          362,548  
         

 

 

 

Total Preferred Stocks (Cost $1,027,645)

            805,269  
         

 

 

 

Total Investments (Cost $19,214,695) 100.0%

            17,683,414  

Other Assets, less Liabilities 0.0%

            (201
         

 

 

 

Net Assets 100.0%

          $ 17,683,213  
         

 

 

 

Rounds to less than 0.1% of net assets.

aNon-income producing.

bSecurity was purchased pursuant to Rule 144A under the Securities Act of 1933 and may be sold in transactions exempt from registration only to qualified institutional buyers or in a public offering registered under the Securities Act of 1933. At March 31, 2023, the value of was $587,458, representing 3.3% of net assets.

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

 

           
240             

Annual Report    |   The accompanying notes are an integral part of these financial statements.

  franklintempleton.com


FRANKLIN TEMPLETON ETF TRUST

 

Financial Highlights

 

Franklin FTSE Hong Kong ETF

 

    Year Ended March 31,  
     2023      2022      2021      2020      2019  
Per share operating performance
(for a share outstanding throughout the year)
             

Net asset value, beginning of year

    $23.43        $28.10        $20.58        $26.82        $26.17  
Income from investment operationsa:              

Net investment incomeb

    0.77        0.74        0.72        0.77        0.66  

Net realized and unrealized gains (losses)

    (2.03      (4.72      7.61        (6.25      0.59  

Total from investment operations

    (1.26      (3.98      8.33        (5.48      1.25  

Less distributions from net investment income

    (0.83      (0.69      (0.81      (0.76      (0.60

Net asset value, end of year

    $21.34        $23.43        $28.10        $20.58        $26.82  

Total returnc

    (5.39)%        (14.41)%        41.14%        (20.90)%        4.97%  
Ratios to average net assetsd              

Total expenses

    0.09%        0.09%        0.09%        0.09%        0.09%  

Net investment income

    3.60%        2.79%        2.99%        3.10%        2.67%  
Supplemental data              

Net assets, end of year (000’s)

        $17,069        $17,573        $16,862        $15,433        $20,118  

Portfolio turnover ratee

    9.00%f        9.91%f        14.84%f        5.99%f        5.33%  

 

 

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

 

bBased on average daily shares outstanding.

 

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

 

dRatios are annualized for periods less than one year.

 

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

 

 

 

 

 

 

fPortfolio turnover rate excluding cash creations was as follows:     8.84%        9.74%        14.84%        5.99%         

 

           
franklintempleton.com  

The accompanying notes are an integral part of these financial statements.    |   Annual Report

             241


FRANKLIN TEMPLETON ETF TRUST

 

Schedule of Investments, March 31, 2023

 

Franklin FTSE Hong Kong ETF

 

      Industry       Shares                Value  

Common Stocks 99.8%

         

Cambodia 0.3%

         

aNagaCorp Ltd.

   Hotels, Restaurants & Leisure     58,378        $ 45,513  
         

 

 

 

China 9.8%

         

aAAC Technologies Holdings, Inc., Class H

   Electronic Equipment, Instruments & Components     26,500          65,356  

BOC Hong Kong Holdings Ltd.

   Banks     140,000          436,054  

bBudweiser Brewing Co. APAC Ltd., Class H

   Beverages     65,600          200,144  

aChina Travel International Investment Hong Kong Ltd., Class A

   Hotels, Restaurants & Leisure     96,000          19,689  

Chow Tai Fook Jewellery Group Ltd., Class A

   Specialty Retail     67,200          133,374  

bESR Group Ltd., Class H

   Real Estate Management & Development     76,800          137,752  

aHUTCHMED China Ltd.

   Pharmaceuticals     20,000          52,612  

Kerry Logistics Network Ltd.

   Air Freight & Logistics     10,500          16,318  

Lenovo Group Ltd.

   Technology Hardware, Storage & Peripherals     288,000          311,849  

aMMG Ltd.

   Metals & Mining     96,000          28,127  

Nexteer Automotive Group Ltd.

   Automobile Components     32,000          20,178  

aShangri-La Asia Ltd.

   Hotels, Restaurants & Leisure     42,000          39,379  

SITC International Holdings Co. Ltd.

   Marine Transportation     46,000          98,798  

Want Want China Holdings Ltd.

   Food Products     168,000          108,077  
         

 

 

 
            1,667,707  
         

 

 

 

Hong Kong 77.1%

         

AIA Group Ltd.

   Insurance     318,800          3,356,559  

ASMPT Ltd., Class A

   Semiconductors & Semiconductor Equipment     12,000          118,778  

Bank of East Asia Ltd., Class A

   Banks     36,800          46,786  

Cafe de Coral Holdings Ltd., Class A

   Hotels, Restaurants & Leisure     12,000          15,898  

aCathay Pacific Airways Ltd., Class A

   Airlines     40,000          38,472  

Champion REIT, Class A

   Diversified REITs     80,000          34,344  

CK Asset Holdings Ltd.

   Real Estate Management & Development     75,500          458,293  

CK Infrastructure Holdings Ltd., Class A

   Electric Utilities     22,700          123,477  

CLP Holdings Ltd.

   Electric Utilities     63,500          458,659  

Dah Sing Banking Group Ltd., Class A

   Banks     16,000          12,250  

Dah Sing Financial Holdings Ltd., Class H

   Banks     6,400          16,428  

DFI Retail Group Holdings Ltd., Class A

   Consumer Staples Distribution & Retail     12,000          36,360  

Guotai Junan International Holdings Ltd.

   Capital Markets     96,000          7,827  

aHaitong International Securities Group Ltd.

   Capital Markets     120,000          9,936  

Hang Lung Group Ltd.

   Real Estate Management & Development     33,000          58,265  

Hang Lung Properties Ltd.

   Real Estate Management & Development     72,000          134,645  

Hang Seng Bank Ltd.

   Banks     28,000          398,423  

Henderson Land Development Co. Ltd.

   Real Estate Management & Development     50,000          172,931  

Hong Kong & China Gas Co. Ltd.

   Gas Utilities     424,000          373,230  

Hong Kong Exchanges & Clearing Ltd.

   Capital Markets     49,250          2,184,581  

Hongkong Land Holdings Ltd.

   Real Estate Management & Development     43,200          189,648  

Huabao International Holdings Ltd.

   Chemicals     37,000          17,298  

Hutchison Telecommunications Hong Kong Holdings Ltd.

   Diversified Telecommunication Services     48,000          7,582  

Hysan Development Co. Ltd.

   Real Estate Management & Development     24,000          68,179  

Jardine Matheson Holdings Ltd.

   Industrial Conglomerates     7,610          369,618  

Johnson Electric Holdings Ltd.

   Electrical Equipment     13,500          15,306  

Kerry Properties Ltd.

   Real Estate Management & Development     24,000          61,300  

Link REIT

   Diversified REITs     98,020          630,579  

Man Wah Holdings Ltd.

   Household Durables     57,600          47,474  

aMelco International Development Ltd.

   Hotels, Restaurants & Leisure     32,000          37,300  

MTR Corp. Ltd.

   Ground Transportation     56,000          270,014  

New World Development Co. Ltd.

   Real Estate Management & Development     54,000          144,803  

NWS Holdings Ltd.

   Industrial Conglomerates     56,000          50,151  

Orient Overseas International Ltd.

   Marine Transportation     5,050          96,626  

PCCW Ltd.

   Diversified Telecommunication Services     160,000          79,899  

Power Assets Holdings Ltd.

   Electric Utilities     53,000          284,244  

 

           
242             

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FRANKLIN TEMPLETON ETF TRUST

SCHEDULE OF INVESTMENTS

 

Franklin FTSE Hong Kong ETF (continued)

 

      Industry       Shares                Value  

Common Stocks (continued)

         

Hong Kong (continued)

         

Sino Land Co. Ltd.

   Real Estate Management & Development     146,900        $ 198,737  

Sun Hung Kai Properties Ltd.

   Real Estate Management & Development     54,966          770,229  

aSuper Hi International Holding Ltd.

   Hotels, Restaurants & Leisure     6,000          15,073  

Swire Pacific Ltd., Class A

   Real Estate Management & Development     16,500          126,746  

Swire Pacific Ltd., Class B

   Real Estate Management & Development     35,000          43,293  

Swire Properties Ltd.

   Real Estate Management & Development     41,000          105,504  

Techtronic Industries Co. Ltd.

   Household Durables     51,000          551,258  

aUnited Energy Group Ltd.

   Oil, Gas & Consumable Fuels     288,000          34,120  

Vitasoy International Holdings Ltd.

   Food Products     32,000          61,962  

VTech Holdings Ltd.

   Communications Equipment     6,400          38,278  

bWH Group Ltd.

   Food Products     300,000          178,855  

Wharf Holdings Ltd.

   Real Estate Management & Development     37,523          85,849  

Wharf Real Estate Investment Co. Ltd.

   Real Estate Management & Development     60,571          347,996  

Xinyi Glass Holdings Ltd.

   Automobile Components     80,152          143,560  

Yue Yuen Industrial Holdings Ltd.

   Textiles, Apparel & Luxury Goods     28,000          39,450  
         

 

 

 
            13,167,073  
         

 

 

 

Indonesia 0.2%

         

First Pacific Co. Ltd.

   Financial Services     96,000          30,818  
         

 

 

 

Italy 0.8%

         

PRADA SpA

   Textiles, Apparel & Luxury Goods     20,000          141,784  
         

 

 

 

Luxembourg 0.3%

         

L’Occitane International SA

   Specialty Retail     18,000          44,943  
         

 

 

 

Macau 6.0%

         

aGalaxy Entertainment Group Ltd.

   Hotels, Restaurants & Leisure     83,300          556,575  

aMGM China Holdings Ltd.

   Hotels, Restaurants & Leisure     28,800          35,588  

a Sands China Ltd.

   Hotels, Restaurants & Leisure     92,800          322,733  

aSJM Holdings Ltd.

   Hotels, Restaurants & Leisure     96,000          47,939  

aWynn Macau Ltd.

   Hotels, Restaurants & Leisure     57,600          56,793  
         

 

 

 
            1,019,628  
         

 

 

 

Singapore 0.3%

         

bBOC Aviation Ltd., Class A

   Trading Companies & Distributors     8,000          61,809  
         

 

 

 

Taiwan 0.1%

         

a,bFIT Hon Teng Ltd.

   Electronic Equipment, Instruments & Components     48,000          11,251  
         

 

 

 

United Kingdom 3.7%

         

CK Hutchison Holdings Ltd., Class A

   Real Estate Management & Development     103,000          638,998  
         

 

 

 

United States 1.2%

         

bJS Global Lifestyle Co. Ltd.

   Household Durables     48,000          49,285  

a,bSamsonite International SA

   Textiles, Apparel & Luxury Goods     50,400          155,695  
         

 

 

 
            204,980  
         

 

 

 

Total Investments (Cost $18,872,342) 99.8%

            17,034,504  

Other Assets, less Liabilities 0.2%

         34,369  
         

 

 

 

Net Assets 100.0%

       $ 17,068,873  
         

 

 

 

aNon-income producing.

bSecurity was purchased pursuant to Rule 144A under the Securities Act of 1933 and may be sold in transactions exempt from registration only to qualified institutional buyers or in a public offering registered under the Securities Act of 1933. At March 31, 2023, the value of was $794,791, representing 4.7% of net assets.

 

           
franklintempleton.com  

Annual Report

             243


FRANKLIN TEMPLETON ETF TRUST

SCHEDULE OF INVESTMENTS

 

Franklin FTSE Hong Kong ETF (continued)

 

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

Futures Contracts

 

Description      Type       

Number of

Contracts

 

 

    

Notional

Amount

 

   

Expiration

Date

 

 

    

Value/Unrealized

Appreciation

(Depreciation)

 

 

 

Equity Contracts                                  

MINI HSI IDX

        1        $26,091       4/27/23        $1,064  

*As of year end.

 

 

 

 

 

See Note 7 regarding other derivative information.

See Abbreviations on page 355.

 

           
244             

Annual Report    |   The accompanying notes are an integral part of these financial statements.

  franklintempleton.com


FRANKLIN TEMPLETON ETF TRUST

 

Financial Highlights

 

Franklin FTSE India ETF

 

   

Year Ended March 31,

 
     2023      2022      2021      2020      2019  
Per share operating performance
(for a share outstanding throughout the year)
             

Net asset value, beginning of year

    $31.34        $27.70        $15.98        $23.36        $22.74  
Income from investment operationsa:              

Net investment incomeb

    0.28        0.27        0.20        0.26        0.29  

Net realized and unrealized gains (losses)

    (3.92      4.09        11.70        (7.43      0.53  

Total from investment operations

    (3.64      4.36        11.90        (7.17      0.82  

Less distributions from net investment income

    (0.21      (0.72      (0.18      (0.21      (0.20

Net asset value, end of year

    $27.49        $31.34        $27.70        $15.98        $23.36  

Total returnc

    (11.65)%        15.75%        74.87%        (30.98)%        3.66%  
Ratios to average net assetsd              

Total expenses

    0.19%        0.19%        0.19%        0.19%        0.19%  

Net investment income

    0.98%        0.86%        0.89%        1.20%        1.33%  
Supplemental data              

Net assets, end of year (000’s)

        $98,977        $50,140        $23,544        $8,790        $7,007  

Portfolio turnover ratee

    6.73%f        10.73%f        23.48%f        36.55%f        8.03%  

 

 

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

 

bBased on average daily shares outstanding.

 

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

 

dRatios are annualized for periods less than one year.

 

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

 

 

 

 

 

 

fPortfolio turnover rate excluding cash creations was as follows:     6.23%        8.16%        16.91%        6.83%         

 

           
franklintempleton.com  

The accompanying notes are an integral part of these financial statements.    |   Annual Report

             245


FRANKLIN TEMPLETON ETF TRUST

 

Schedule of Investments, March 31, 2023

 

Franklin FTSE India ETF

 

      Industry       Shares                Value  

Common Stocks 100.1%

         

India 100.1%

         

3M India Ltd.

   Industrial Conglomerates     288        $ 80,474  

Aarti Industries Ltd.

   Chemicals     19,656          123,929  

ABB India Ltd.

   Electrical Equipment     5,400          221,115  

ACC Ltd.

   Construction Materials     8,568          173,815  

Adani Enterprises Ltd.

   Trading Companies & Distributors     27,504          585,823  

aAdani Green Energy Ltd.

   Independent Power Producers & Energy Traders     40,032          429,218  

Adani Ports & Special Economic Zone Ltd.

   Transportation Infrastructure     81,576          627,237  

aAdani Power Ltd.

   Independent Power Producers & Energy Traders     97,272          226,780  

Adani Total Gas Ltd.

   Gas Utilities     27,936          294,971  

aAdani Transmission Ltd.

   Electric Utilities     25,488          307,984  

aAdani Wilmar Ltd.

   Food Products     15,912          78,580  

aAditya Birla Capital Ltd.

   Financial Services     45,288          84,616  

Alkem Laboratories Ltd.

   Pharmaceuticals     2,520          104,136  

Ambuja Cements Ltd.

   Construction Materials     69,192          307,768  

APL Apollo Tubes Ltd.

   Metals & Mining     17,208          252,385  

Apollo Hospitals Enterprise Ltd.

   Health Care Providers & Services     10,008          524,972  

Ashok Leyland Ltd.

   Machinery     144,432          244,638  

Asian Paints Ltd.

   Chemicals     45,432          1,526,691  

Astral Ltd.

   Building Products     12,000          195,224  

bAU Small Finance Bank Ltd.

   Banks     32,544          229,361  

Aurobindo Pharma Ltd.

   Pharmaceuticals     27,000          170,215  

a,bAvenue Supermarts Ltd.

   Consumer Staples Distribution & Retail     14,976          619,769  

Axis Bank Ltd.

   Banks     229,104          2,393,281  

Bajaj Auto Ltd.

   Automobiles     6,840          323,325  

Bajaj Finance Ltd.

   Consumer Finance     23,760          1,623,873  

Bajaj Finserv Ltd.

   Financial Services     38,520          593,625  

Bajaj Holdings & Investment Ltd.

   Financial Services     2,664          191,904  

Balkrishna Industries Ltd.

   Automobile Components     8,136          193,192  

a,bBandhan Bank Ltd.

   Banks     78,768          187,617  

Bank of Baroda

   Banks     105,408          216,569  

Bank of India

   Banks     76,752          69,717  

Bata India Ltd.

   Textiles, Apparel & Luxury Goods     6,048          104,380  

Bayer CropScience Ltd.

   Chemicals     1,296          64,304  

Berger Paints India Ltd.

   Chemicals     24,264          171,744  

Bharat Electronics Ltd.

   Aerospace & Defense     329,760          391,423  

Bharat Forge Ltd.

   Automobile Components     25,416          238,272  

Bharat Heavy Electricals Ltd.

   Electrical Equipment     128,016          109,117  

Bharat Petroleum Corp. Ltd.

   Oil, Gas & Consumable Fuels     100,656          421,694  

Bharti Airtel Ltd.

   Wireless Telecommunication Services     14,760          65,859  

Bharti Airtel Ltd.

   Wireless Telecommunication Services     232,848          2,122,145  

Biocon Ltd.

   Biotechnology     46,224          116,063  

Bosch Ltd.

   Automobile Components     864          203,639  

Britannia Industries Ltd.

   Food Products     11,952          628,581  

Canara Bank

   Banks     36,720          127,095  

Castrol India Ltd.

   Chemicals     48,888          66,001  

aCG Power & Industrial Solutions Ltd.

   Electrical Equipment     70,200          256,302  

Cholamandalam Investment & Finance Co. Ltd.

   Consumer Finance     40,536          375,506  

Cipla Ltd.

   Pharmaceuticals     51,552          564,872  

Coal India Ltd.

   Oil, Gas & Consumable Fuels     209,808          545,438  

Coforge Ltd.

   IT Services     4,248          197,150  

Colgate-Palmolive India Ltd.

   Personal Products     13,392          245,629  

Container Corp. Of India Ltd.

   Ground Transportation     27,648          195,209  

Coromandel International Ltd.

   Chemicals     10,800          115,547  

Cummins India Ltd.

   Machinery     13,608          269,834  

Dabur India Ltd.

   Personal Products     58,176          385,728  

Dalmia Bharat Ltd.

   Construction Materials     8,208          196,580  

Deepak Nitrite Ltd.

   Chemicals     7,560          169,501  

 

           
246             

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FRANKLIN TEMPLETON ETF TRUST

SCHEDULE OF INVESTMENTS

 

Franklin FTSE India ETF (continued)

 

      Industry       Shares                Value  

Common Stocks (continued)

         

India (continued)

         

Divi’s Laboratories Ltd.

   Life Sciences Tools & Services     12,816        $ 440,289  

Dixon Technologies India Ltd.

   Household Durables     3,528          122,832  

DLF Ltd.

   Real Estate Management & Development     62,208          270,004  

bDr Lal PathLabs Ltd.

   Health Care Providers & Services     3,456          76,877  

Dr Reddy’s Laboratories Ltd.

   Pharmaceuticals     12,168          684,448  

Eicher Motors Ltd.

   Automobiles     13,968          501,196  

Emami Ltd.

   Personal Products     20,952          91,410  

Embassy Office Parks REIT

   Diversified REITs     61,344          233,015  

Exide Industries Ltd.

   Automobile Components     45,936          99,465  

Federal Bank Ltd.

   Banks     157,032          252,795  

aFSN E-Commerce Ventures Ltd.

   Specialty Retail     136,440          206,281  

GAIL India Ltd.

   Gas Utilities     265,194          339,308  

bGeneral Insurance Corp. of India

   Insurance     10,944          17,798  

GlaxoSmithKline Pharmaceuticals Ltd.

   Pharmaceuticals     4,392          70,797  

Glenmark Pharmaceuticals Ltd.

   Pharmaceuticals     15,552          87,939  

aGMR Airports Infrastructure Ltd.

   Construction & Engineering     247,032          121,889  

aGodrej Consumer Products Ltd.

   Personal Products     36,720          432,580  

aGodrej Industries Ltd.

   Chemicals     8,280          40,688  

a Godrej Properties Ltd.

   Real Estate Management & Development     8,928          112,009  

Grasim Industries Ltd.

   Construction Materials     38,664          768,128  

Gujarat Fluorochemicals Ltd.

   Chemicals     4,032          148,176  

Gujarat Gas Ltd.

   Gas Utilities     20,232          113,146  

Havells India Ltd.

   Electrical Equipment     24,120          348,817  

HCL Technologies Ltd.

   IT Services     109,368          1,444,244  

bHDFC Asset Management Co. Ltd.

   Capital Markets     7,920          164,587  

bHDFC Life Insurance Co. Ltd.

   Insurance     99,360          603,541  

Hero MotoCorp Ltd.

   Automobiles     13,176          376,341  

Hindalco Industries Ltd.

   Metals & Mining     142,056          700,665  

Hindustan Aeronautics Ltd.

   Aerospace & Defense     9,504          315,838  

Hindustan Petroleum Corp. Ltd.

   Oil, Gas & Consumable Fuels     61,200          176,341  

Hindustan Unilever Ltd.

   Household Products     89,352          2,783,712  

Hindustan Zinc Ltd.

   Metals & Mining     23,256          83,012  

Honeywell Automation India Ltd.

   Electronic Equipment, Instruments & Components     224          99,173  

Housing Development Finance Corp. Ltd.

   Financial Services     176,544          5,640,085  

ICICI Bank Ltd.

   Banks     157,608          1,682,373  

bICICI Lombard General Insurance Co. Ltd.

   Insurance     24,264          315,765  

bICICI Prudential Life Insurance Co. Ltd.

   Insurance     38,376          203,455  

aIDBI Bank Ltd.

   Banks     57,384          31,421  

aIDFC First Bank Ltd.

   Banks     327,024          219,057  

Indian Bank

   Banks     19,944          70,025  

Indian Hotels Co. Ltd.

   Hotels, Restaurants & Leisure     83,376          329,060  

Indian Oil Corp. Ltd.

   Oil, Gas & Consumable Fuels     413,208          391,676  

Indian Railway Catering & Tourism Corp. Ltd.

   Commercial Services & Supplies     30,240          210,768  

bIndian Railway Finance Corp. Ltd.

   Financial Services     180,360          58,377  

Indraprastha Gas Ltd.

   Gas Utilities     35,280          184,036  

Indus Towers Ltd.

   Diversified Telecommunication Services     89,352          155,475  

Info Edge India Ltd.

   Interactive Media & Services     7,632          345,793  

Infosys Ltd.

   IT Services     357,768          6,216,346  

a,bInterGlobe Aviation Ltd.

   Airlines     12,456          289,588  

Ipca Laboratories Ltd.

   Pharmaceuticals     13,896          137,020  

ITC Ltd.

   Tobacco     298,152          1,391,310  

Jindal Steel & Power Ltd.

   Metals & Mining     39,096          259,839  

JSW Energy Ltd.

   Independent Power Producers & Energy Traders     38,664          113,312  

JSW Steel Ltd.

   Metals & Mining     100,944          845,187  

Jubilant Foodworks Ltd.

   Hotels, Restaurants & Leisure     36,288          194,328  

Kansai Nerolac Paints Ltd.

   Chemicals     13,392          63,031  

Kotak Mahindra Bank Ltd.

   Banks     10,008          211,023  

 

           
franklintempleton.com  

Annual Report

             247


FRANKLIN TEMPLETON ETF TRUST

SCHEDULE OF INVESTMENTS

 

Franklin FTSE India ETF (continued)

 

      Industry       Shares                Value  

Common Stocks (continued)

         

India (continued)

         

L&T Finance Holdings Ltd.

   Financial Services     89,136        $ 88,992  

bL&T Technology Services Ltd.

   Professional Services     2,592          106,558  

Larsen & Toubro Ltd.

   Construction & Engineering     69,408          1,827,795  

bLaurus Labs Ltd.

   Pharmaceuticals     39,024          139,106  

LIC Housing Finance Ltd.

   Financial Services     30,384          121,543  

Linde India Ltd.

   Chemicals     2,160          105,916  

bLTIMindtree Ltd.

   IT Services     9,257          536,125  

Lupin Ltd.

   Pharmaceuticals     23,904          188,597  

Macrotech Developers Ltd.

   Real Estate Management & Development     11,304          127,960  

Mahindra & Mahindra Financial Services Ltd.

   Consumer Finance     59,256          167,026  

Mahindra & Mahindra Ltd.

   Automobiles     92,736          1,307,495  

aMangalore Refinery & Petrochemicals Ltd.

   Oil, Gas & Consumable Fuels     22,464          14,364  

Marico Ltd.

   Personal Products     52,272          305,176  

Maruti Suzuki India Ltd.

   Automobiles     13,320          1,343,978  

aMax Financial Services Ltd.

   Insurance     24,624          190,262  

aMax Healthcare Institute Ltd.

   Health Care Providers & Services     74,520          399,973  

Mphasis Ltd.

   IT Services     8,208          179,351  

MRF Ltd.

   Automobile Components     273          279,194  

Muthoot Finance Ltd.

   Consumer Finance     10,728          127,921  

Nestle India Ltd.

   Food Products     3,600          863,155  

NHPC Ltd.

   Independent Power Producers & Energy Traders     228,528          111,786  

bNippon Life India Asset Management Ltd.

   Capital Markets     16,488          42,142  

NMDC Ltd.

   Metals & Mining     115,848          157,246  

NTPC Ltd.

   Independent Power Producers & Energy Traders     476,928          1,016,154  

Oberoi Realty Ltd.

   Real Estate Management & Development     12,024          123,280  

Oil & Natural Gas Corp. Ltd.

   Oil, Gas & Consumable Fuels     371,592          682,980  

Oil India Ltd.

   Oil, Gas & Consumable Fuels     33,408          102,298  

One 97 Communications Ltd.

   IT Services     14,904          115,485  

Oracle Financial Services Software Ltd.

   Software     2,232          88,640  

Page Industries Ltd.

   Textiles, Apparel & Luxury Goods     586          270,268  

Patanjali Foods Ltd.

   Food Products     6,984          82,364  

aPB Fintech Ltd.

   Insurance     35,928          279,310  

Persistent Systems Ltd.

   IT Services     4,896          274,610  

Petronet LNG Ltd.

   Oil, Gas & Consumable Fuels     75,024          208,916  

PI Industries Ltd.

   Chemicals     8,136          299,987  

Pidilite Industries Ltd.

   Chemicals     15,336          439,091  

Piramal Enterprises Ltd.

   Pharmaceuticals     12,466          102,897  

Polycab India Ltd.

   Electrical Equipment     4,752          166,532  

Power Finance Corp. Ltd.

   Financial Services     116,856          215,775  

Power Grid Corp. of India Ltd.

   Electric Utilities     316,656          869,641  

Punjab National Bank

   Banks     113,616          64,424  

Rajesh Exports Ltd.

   Textiles, Apparel & Luxury Goods     13,608          101,022  

a,bRBL Bank Ltd.

   Banks     44,424          76,272  

REC Ltd.

   Financial Services     126,588          177,831  

Relaxo Footwears Ltd.

   Textiles, Apparel & Luxury Goods     7,128          73,806  

Reliance Industries Ltd.

   Oil, Gas & Consumable Fuels     329,256          9,339,120  

Samvardhana Motherson International Ltd.

   Automobile Components     218,448          178,357  

SBI Cards & Payment Services Ltd.

   Consumer Finance     29,016          261,341  

bSBI Life Insurance Co. Ltd.

   Insurance     42,336          567,227  

Schaeffler India Ltd.

   Machinery     4,032          140,686  

Shree Cement Ltd.

   Construction Materials     1,368          435,905  

Shriram Finance Ltd.

   Consumer Finance     24,984          382,866  

Siemens Ltd.

   Industrial Conglomerates     8,928          361,449  

Solar Industries India Ltd.

   Chemicals     2,160          99,678  

bSona Blw Precision Forgings Ltd.

   Automobile Components     35,136          176,786  

SRF Ltd.

   Chemicals     14,256          418,378  

aStar Health & Allied Insurance Co. Ltd.

   Insurance     22,896          144,398  

 

           
248             

Annual Report

  franklintempleton.com


FRANKLIN TEMPLETON ETF TRUST

SCHEDULE OF INVESTMENTS

 

Franklin FTSE India ETF (continued)

 

      Industry       Shares                Value  

Common Stocks (continued)

         

India (continued)

         

State Bank of India

   Banks     179,928        $ 1,146,683  

Steel Authority of India Ltd.

   Metals & Mining     146,592          147,515  

Sun Pharmaceutical Industries Ltd.

   Pharmaceuticals     109,584          1,310,888  

Sun TV Network Ltd.

   Media     10,008          50,641  

Supreme Industries Ltd.

   Chemicals     6,480          198,191  

Tata Communications Ltd.

   Diversified Telecommunication Services     11,304          171,315  

Tata Consultancy Services Ltd.

   IT Services     102,744          4,007,994  

Tata Consumer Products Ltd.

   Food Products     60,984          526,006  

Tata Elxsi Ltd.

   Software     3,456          250,597  

aTata Motors Ltd., Class A

   Automobiles     185,904          951,886  

aTata Motors Ltd., Class A

   Automobiles     37,800          96,015  

Tata Power Co. Ltd.

   Electric Utilities     166,896          386,359  

Tata Steel Ltd.

   Metals & Mining     820,944          1,043,880  

aTata Teleservices Maharashtra Ltd.

   Diversified Telecommunication Services     53,280          35,949  

Tech Mahindra Ltd.

   IT Services     60,984          817,634  

Titan Co. Ltd.

   Textiles, Apparel & Luxury Goods     41,976          1,284,525  

Torrent Pharmaceuticals Ltd.

   Pharmaceuticals     9,648          180,457  

Torrent Power Ltd.

   Electric Utilities     21,960          136,384  

Trent Ltd.

   Broadline Retail     18,288          305,966  

Tube Investments of India Ltd.

   Automobile Components     9,864          305,657  

TVS Motor Co. Ltd.

   Automobiles     23,832          312,376  

UltraTech Cement Ltd.

   Construction Materials     11,520          1,068,441  

Union Bank of India Ltd.

   Banks     111,816          90,547  

United Breweries Ltd.

   Beverages     7,056          122,300  

aUnited Spirits Ltd.

   Beverages     28,944          266,363  

UNO Minda Ltd.

   Automobile Components     16,560          96,923  

UPL Ltd.

   Chemicals     53,136          464,005  

Varun Beverages Ltd.

   Beverages     20,394          344,191  

Vedant Fashions Ltd.

   Textiles, Apparel & Luxury Goods     3,744          51,896  

Vedanta Ltd.

   Metals & Mining     123,552          412,604  

aVodafone Idea Ltd.

   Wireless Telecommunication Services     780,408          55,077  

Voltas Ltd.

   Construction & Engineering     23,112          230,115  

Whirlpool of India Ltd.

   Household Durables     2,952          47,237  

Wipro Ltd.

   IT Services     127,152          565,111  

aYes Bank Ltd.

   Banks     2,011,557          368,374  

Zee Entertainment Enterprises Ltd.

   Media     83,304          215,146  

aZomato Ltd.

   Hotels, Restaurants & Leisure     561,960          348,736  

Zydus Lifesciences Ltd.

   Pharmaceuticals     25,560          152,879  
         

 

 

 

Total Investments (Cost $98,043,841) 100.1%

            99,072,406  

Other Assets, less Liabilities (0.1)%

            (94,964
         

 

 

 

Net Assets 100.0%

          $ 98,977,442  
         

 

 

 

aNon-income producing.

bSecurity was purchased pursuant to Rule 144A under the Securities Act of 1933 and may be sold in transactions exempt from registration only to qualified institutional buyers or in a public offering registered under the Securities Act of 1933. At March 31, 2023, the value of was $4,410,951, representing 4.5% of net assets.

 

           
franklintempleton.com  

The accompanying notes are an integral part of these financial statements.    |   Annual Report

             249


FRANKLIN TEMPLETON ETF TRUST

 

Financial Highlights

 

Franklin FTSE Italy ETF

 

    Year Ended March 31,  
     2023      2022      2021      2020      2019  
Per share operating performance
(for a share outstanding throughout the year)
             

Net asset value, beginning of year

    $24.65        $26.50        $17.61        $23.13        $26.27  
Income from investment operationsa:              

Net investment incomeb

    0.87        0.85        0.67        0.90        0.46  

Net realized and unrealized gains (losses)

    0.74        (1.59      8.80        (5.52      (2.99

Total from investment operations

    1.61        (0.74      9.47        (4.62      (2.53

Less distributions from net investment income

    (1.07      (1.11      (0.58      (0.90      (0.61

Net asset value, end of year

          $25.19        $24.65        $26.50        $17.61        $23.13  

Total returnc

    7.51%        (3.15)%        54.64%        (20.84)%        (9.67)%  
Ratios to average net assetsd              

Total expenses

    0.09%        0.09%        0.09%        0.09%        0.09%  

Net investment income

    3.96%        3.15%        3.04%        3.85%        2.05%  
Supplemental data              

Net assets, end of year (000’s)

    $5,039        $3,698        $3,974        $2,641        $10,410  

Portfolio turnover ratee

    18.04%f        12.75%f        17.45%f        9.89%f        16.67%  

 

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

bBased on average daily shares outstanding.

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

dRatios are annualized for periods less than one year.

 

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

 

 

 

 

 

fPortfolio turnover rate excluding cash creations was as follows:     18.04%        12.75%        17.45%        9.89%         

 

           
250             

Annual Report    |   The accompanying notes are an integral part of these financial statements.

  franklintempleton.com


FRANKLIN TEMPLETON ETF TRUST

 

Schedule of Investments, March 31, 2023

 

Franklin FTSE Italy ETF

 

      Industry       Shares                Value  

Common Stocks 100.0%

         

Italy 88.6%

         

A2A SpA

   Multi-Utilities     25,408        $ 40,579  

Amplifon SpA

   Health Care Providers & Services     2,148          74,538  

Assicurazioni Generali SpA

   Insurance     11,428          228,205  

Banca Mediolanum SpA

   Financial Services     4,008          36,395  

Banco BPM SpA

   Banks     22,892          89,660  

Buzzi Unicem SpA

   Construction Materials     1,432          34,788  

Davide Campari-Milano NV

   Beverages     8,292          101,349  

De’ Longhi SpA

   Household Durables     1,152          26,359  

DiaSorin SpA

   Health Care Equipment & Supplies     368          38,806  

Enel SpA

   Electric Utilities     80,852          494,285  

Eni SpA

   Oil, Gas & Consumable Fuels     24,188          339,157  

Ferrari NV

   Automobiles     1,314          355,899  

FinecoBank Banca Fineco SpA

   Banks     9,740          149,630  

Hera SpA

   Multi-Utilities     13,096          37,022  

aInfrastrutture Wireless Italiane SpA

   Diversified Telecommunication Services     5,864          77,216  

Interpump Group SpA

   Machinery     1,328          74,521  

Intesa Sanpaolo SpA

   Banks     169,256          435,355  

Italgas SpA

   Gas Utilities     8,168          49,917  

Leonardo SpA

   Aerospace & Defense     6,664          78,338  

Mediobanca Banca di Credito Finanziario SpA

   Banks     10,588          106,613  

Moncler SpA

   Textiles, Apparel & Luxury Goods     2,616          180,590  

a,bNexi SpA

   IT Services     9,252          75,248  

aPirelli & C SpA

   Automobile Components     8,152          40,936  

aPoste Italiane SpA

   Insurance     7,604          77,756  

Prysmian SpA

   Electrical Equipment     3,896          163,810  

Recordati Industria Chimica e Farmaceutica SpA

   Pharmaceuticals     1,616          68,402  

Reply SpA

   IT Services     376          47,182  

Snam SpA

   Gas Utilities     32,420          172,204  

bTelecom Italia SpA

   Diversified Telecommunication Services     178,828          59,102  

bTelecom Italia SpA

   Diversified Telecommunication Services     100,524          32,393  

Tenaris SA

   Energy Equipment & Services     7,788          110,843  

Terna - Rete Elettrica Nazionale

   Electric Utilities     20,720          170,320  

UniCredit SpA

   Banks     19,980          377,924  

UnipolSai Assicurazioni SpA

   Insurance     7,092          17,937  
         

 

 

 
            4,463,279  
         

 

 

 

United Kingdom 3.4%

         

CNH Industrial NV

   Machinery     11,264          172,308  
         

 

 

 

United States 8.0%

         

Stellantis NV

   Automobiles     22,100          401,840  
         

 

 

 

Total Investments (Cost $4,459,161) 100.0%

            5,037,427  

Other Assets, less Liabilities 0.0%

            1,387  
         

 

 

 

Net Assets 100.0%

          $ 5,038,814  
         

 

 

 

Rounds to less than 0.1% of net assets.

aSecurity was purchased pursuant to Rule 144A under the Securities Act of 1933 and may be sold in transactions exempt from registration only to qualified institutional buyers or in a public offering registered under the Securities Act of 1933. At March 31, 2023, the value of was $271,156, representing 5.4% of net assets.

bNon-income producing.

 

           
franklintempleton.com  

The accompanying notes are an integral part of these financial statements.    |   Annual Report

             251


FRANKLIN TEMPLETON ETF TRUST

 

Financial Highlights

 

Franklin FTSE Japan ETF

 

    Year Ended March 31,  
     2023      2022      2021      2020      2019
Per share operating performance
(for a share outstanding throughout the year)
             

Net asset value, beginning of year

    $27.42        $30.25        $21.93        $24.18        $26.69  
Income from investment operationsa:              

Net investment incomeb

    0.63        0.63        0.53        0.56        0.59  

Net realized and unrealized gains (losses)

    (1.93      (2.76      8.24        (2.22      (2.76

Total from investment operations

    (1.30      (2.13      8.77        (1.66      (2.17

Less distributions from net investment income

    (0.46      (0.70      (0.45      (0.59      (0.34

Net asset value, end of year

    $25.66        $27.42        $30.25        $21.93        $24.18  

Total returnc

    (4.61)%        (7.21)%        40.23%        (7.15)%        (8.10)%  
Ratios to average net assetsd              

Expenses before waiver and payments by affiliates

    0.09%        0.09%        0.09%        0.09%        0.09%  

Expenses net of waiver and payments by affiliates

    0.09%        0.09%        0.09%        0.09%        0.09%  

Net investment income

    2.60%        2.14%        1.98%        2.30%        2.39%  
Supplemental data              

Net assets, end of year (000’s)

        $1,000,803        $789,637        $598,934        $315,851        $290,205  

Portfolio turnover ratee

    3.01%f        2.95%f        5.76%f        4.59%f        4.35%  

 

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

 

bBased on average daily shares outstanding.

 

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

 

dRatios are annualized for periods less than one year.

 

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

 

 

 

 

 

 

fPortfolio turnover rate excluding cash creations was as follows:     3.00%        2.80%        5.76%        4.51%         

 

           
252             

Annual Report    |   The accompanying notes are an integral part of these financial statements.

  franklintempleton.com


FRANKLIN TEMPLETON ETF TRUST

 

Schedule of Investments, March 31, 2023

 

Franklin FTSE Japan ETF

 

      Industry       Shares                Value  

Common Stocks 98.8%

         

Japan 98.8%

         

ABC-Mart, Inc.

   Specialty Retail     6,500        $ 357,502  

Acom Co. Ltd.

   Consumer Finance     97,500          233,695  

Activia Properties, Inc.

   Diversified REITs     195          553,836  

Advance Residence Investment Corp.

   Diversified REITs     325          772,879  

Advantest Corp.

   Semiconductors & Semiconductor Equipment     48,400          4,422,150  

Aeon Co. Ltd.

   Consumer Staples Distribution & Retail     182,000          3,508,994  

AEON Financial Service Co. Ltd.

   Consumer Finance     32,500          301,337  

Aeon Mall Co. Ltd.

   Real Estate Management & Development     32,500          424,168  

AEON REIT Investment Corp.

   Diversified REITs     455          495,375  

AGC, Inc.

   Building Products     45,500          1,683,729  

Aica Kogyo Co. Ltd.

   Building Products     13,000          296,454  

Ain Holdings, Inc.

   Consumer Staples Distribution & Retail     6,500          271,057  

Air Water, Inc.

   Chemicals     45,500          567,511  

Aisin Corp.

   Automobile Components     45,500          1,246,130  

Ajinomoto Co., Inc.

   Food Products     123,500          4,274,108  

Alfresa Holdings Corp.

   Health Care Providers & Services     45,500          579,818  

Alps Alpine Co. Ltd.

   Electronic Equipment, Instruments & Components     52,000          495,815  

Amada Co. Ltd.

   Machinery     78,000          725,554  

Amano Corp.

   Electronic Equipment, Instruments & Components     19,500          365,561  

Amvis Holdings, Inc.

   Health Care Providers & Services     6,500          149,936  

aANA Holdings, Inc.

   Airlines     39,000          842,768  

Anritsu Corp.

   Electronic Equipment, Instruments & Components     32,500          298,163  

Aozora Bank Ltd.

   Banks     32,500          585,825  

Ariake Japan Co. Ltd.

   Food Products     6,500          238,335  

AS One Corp.

   Health Care Providers & Services     6,500          273,988  

Asahi Group Holdings Ltd.

   Beverages     123,500          4,569,194  

Asahi Intecc Co. Ltd.

   Health Care Equipment & Supplies     52,000          908,017  

Asahi Kasei Corp.

   Chemicals     318,500          2,216,745  

Asics Corp.

   Textiles, Apparel & Luxury Goods     45,500          1,282,027  

ASKUL Corp.

   Internet & Direct Marketing Retail     6,500          84,150  

Astellas Pharma, Inc.

   Pharmaceuticals     474,500          6,713,378  

Azbil Corp.

   Electronic Equipment, Instruments & Components     32,500          881,546  

AZ-COM MARUWA Holdings, Inc.

   Air Freight & Logistics     13,000          194,380  

Bandai Namco Holdings, Inc.

   Leisure Products     147,540          3,157,771  

Bank of Kyoto Ltd.

   Banks     19,500          915,734  

BayCurrent Consulting, Inc.

   Professional Services     32,500          1,330,866  

Benefit One, Inc.

   Professional Services     13,000          183,244  

Benesse Holdings, Inc.

   Diversified Consumer Services     19,500          284,244  

Bic Camera, Inc.

   Specialty Retail     39,000          326,148  

BIPROGY, Inc.

   IT Services     19,500          476,182  

Bridgestone Corp.

   Automobile Components     143,000          5,766,632  

Brother Industries Ltd.

   Technology Hardware, Storage & Peripherals     58,500          875,588  

Calbee, Inc.

   Food Products     19,500          406,000  

Canon Marketing Japan, Inc.

   Electronic Equipment, Instruments & Components     13,000          307,687  

Canon, Inc.

   Technology Hardware, Storage & Peripherals     253,500          5,629,418  

Capcom Co. Ltd.

   Entertainment     45,500          1,618,773  

Casio Computer Co. Ltd.

   Household Durables     52,000          507,146  

Central Japan Railway Co.

   Ground Transportation     46,600          5,535,698  

Chiba Bank Ltd.

   Banks     156,000          1,002,179  

Chubu Electric Power Co., Inc.

   Electric Utilities     182,000          1,913,126  

Chugai Pharmaceutical Co. Ltd.

   Pharmaceuticals     169,000          4,152,303  

Chugin Financial Group, Inc.

   Banks     45,500          303,926  

aChugoku Electric Power Co., Inc.

   Electric Utilities     78,000          394,425  

Coca-Cola Bottlers Japan Holdings, Inc.

   Beverages     39,000          423,435  

COMSYS Holdings Corp.

   Construction & Engineering     26,000          477,256  

Concordia Financial Group Ltd.

   Banks     286,000          1,048,674  

Cosmo Energy Holdings Co. Ltd.

   Oil, Gas & Consumable Fuels     19,500          627,827  

 

           
franklintempleton.com  

Annual Report

             253


FRANKLIN TEMPLETON ETF TRUST

SCHEDULE OF INVESTMENTS

 

Franklin FTSE Japan ETF (continued)

 

      Industry       Shares                Value  

Common Stocks (continued)

         

Japan (continued)

         

Cosmos Pharmaceutical Corp.

   Consumer Staples Distribution & Retail     4,340        $ 388,705  

Credit Saison Co. Ltd.

   Consumer Finance     39,000          492,298  

CyberAgent, Inc.

   Media     110,500          925,746  

Dai Nippon Printing Co. Ltd.

   Commercial Services & Supplies     65,000          1,809,490  

Daicel Corp.

   Chemicals     65,000          488,391  

Daido Steel Co. Ltd.

   Metals & Mining     8,700          339,920  

Daifuku Co. Ltd.

   Machinery     78,000          1,431,768  

Dai-ichi Life Holdings, Inc.

   Insurance     247,000          4,519,085  

Daiichi Sankyo Co. Ltd.

   Pharmaceuticals     487,500          17,662,672  

Daiichikosho Co. Ltd.

   Entertainment     26,000          426,659  

Daikin Industries Ltd.

   Building Products     68,770          12,222,965  

Daio Paper Corp.

   Paper & Forest Products     19,500          151,499  

Daito Trust Construction Co. Ltd.

   Real Estate Management & Development     16,715          1,656,555  

Daiwa House Industry Co. Ltd.

   Real Estate Management & Development     169,000          3,954,211  

Daiwa House REIT Investment Corp.

   Diversified REITs     520          1,060,786  

Daiwa Office Investment Corp.

   Diversified REITs     65          295,965  

Daiwa Securities Group, Inc.

   Capital Markets     377,000          1,759,088  

Daiwa Securities Living Investments Corp.

   Diversified REITs     520          425,487  

aDeNA Co. Ltd.

   Entertainment     19,500          264,903  

Denka Co. Ltd.

   Chemicals     19,500          400,725  

Denso Corp.

   Automobile Components     117,000          6,543,174  

Dentsu Group, Inc.

   Media     52,000          1,816,816  

Descente Ltd.

   Textiles, Apparel & Luxury Goods     13,000          404,388  

DIC Corp.

   Chemicals     19,500          348,711  

Disco Corp.

   Semiconductors & Semiconductor Equipment     21,372          2,456,921  

DMG Mori Co. Ltd.

   Machinery     26,000          435,254  

Dowa Holdings Co. Ltd.

   Metals & Mining     13,000          414,644  

East Japan Railway Co.

   Ground Transportation     92,720          5,110,085  

Ebara Corp.

   Machinery     26,000          1,197,536  

Eisai Co. Ltd.

   Pharmaceuticals     67,420          3,801,335  

Electric Power Development Co. Ltd.

   Independent Power Producers & Energy Traders     39,000          624,457  

ENEOS Holdings, Inc.

   Oil, Gas & Consumable Fuels     734,500          2,567,356  

EXEO Group, Inc.

   Construction & Engineering     26,000          468,270  

Ezaki Glico Co. Ltd.

   Food Products     13,000          325,757  

Fancl Corp.

   Personal Products     19,500          356,477  

FANUC Corp.

   Machinery     248,000          8,869,787  

Fast Retailing Co. Ltd.

   Specialty Retail     40,128          8,707,616  

Food & Life Cos. Ltd.

   Hotels, Restaurants & Leisure     26,000          672,026  

FP Corp.

   Containers & Packaging     13,000          320,385  

Frontier Real Estate Investment Corp.

   Diversified REITs     130          463,972  

Fuji Electric Co. Ltd.

   Electrical Equipment     32,500          1,269,817  

Fuji Kyuko Co. Ltd.

   Hotels, Restaurants & Leisure     6,500          214,404  

Fuji Media Holdings, Inc.

   Media     13,000          116,726  

Fuji Oil Holdings, Inc.

   Food Products     13,000          187,835  

FUJIFILM Holdings Corp.

   Technology Hardware, Storage & Peripherals     91,000          4,579,743  

Fujikura Ltd.

   Electrical Equipment     71,500          503,922  

Fujitsu General Ltd.

   Household Durables     13,000          364,828  

Fujitsu Ltd.

   IT Services     48,160          6,453,780  

Fukuoka Financial Group, Inc.

   Banks     39,000          746,946  

Furukawa Electric Co. Ltd.

   Electrical Equipment     13,000          240,386  

Fuyo General Lease Co. Ltd.

   Financial Services     6,500          439,552  

GLP J-Reit

   Diversified REITs     1,170          1,257,998  

GMO internet group, Inc.

   IT Services     13,000          250,740  

GMO Payment Gateway, Inc.

   IT Services     9,720          831,119  

Goldwin, Inc.

   Textiles, Apparel & Luxury Goods     8,580          812,292  

GS Yuasa Corp.

   Electrical Equipment     19,500          349,004  

aGungHo Online Entertainment, Inc.

   Entertainment     6,500          118,288  

 

           
254             

Annual Report

  franklintempleton.com


FRANKLIN TEMPLETON ETF TRUST

SCHEDULE OF INVESTMENTS

 

Franklin FTSE Japan ETF (continued)

 

      Industry       Shares                Value  

Common Stocks (continued)

         

Japan (continued)

         

H.U. Group Holdings, Inc.

   Health Care Providers & Services     13,000        $ 260,410  

Hachijuni Bank Ltd.

   Banks     117,000          505,485  

Hakuhodo DY Holdings, Inc.

   Media     58,500          657,131  

Hamamatsu Photonics KK

   Electronic Equipment, Instruments & Components     32,500          1,736,231  

Hankyu Hanshin Holdings, Inc.

   Ground Transportation     58,500          1,725,242  

Harmonic Drive Systems, Inc.

   Machinery     13,000          429,296  

Haseko Corp.

   Household Durables     65,000          751,634  

Heiwa Corp.

   Leisure Products     13,000          256,796  

Hikari Tsushin, Inc.

   Specialty Retail     5,550          774,390  

aHino Motors Ltd.

   Machinery     71,500          297,088  

Hirogin Holdings, Inc.

   Banks     78,000          366,880  

Hirose Electric Co. Ltd.

   Electronic Equipment, Instruments & Components     8,060          1,045,880  

Hisamitsu Pharmaceutical Co., Inc.

   Pharmaceuticals     19,500          553,836  

Hitachi Construction Machinery Co. Ltd.

   Machinery     26,000          600,721  

Hitachi Ltd.

   Industrial Conglomerates     234,000          12,750,530  

Honda Motor Co. Ltd.

   Automobiles     429,000          11,314,073  

Horiba Ltd.

   Electronic Equipment, Instruments & Components     9,200          546,788  

Hoshizaki Corp.

   Machinery     32,500          1,192,896  

House Foods Group, Inc.

   Food Products     19,500          411,714  

Hoya Corp.

   Health Care Equipment & Supplies     89,450          9,785,799  

Hulic Co. Ltd.

   Real Estate Management & Development     110,500          902,498  

Ibiden Co. Ltd.

   Electronic Equipment, Instruments & Components     26,000          1,027,575  

Idemitsu Kosan Co. Ltd.

   Oil, Gas & Consumable Fuels     58,500          1,274,701  

IHI Corp.

   Machinery     32,500          810,730  

Iida Group Holdings Co. Ltd.

   Household Durables     39,000          632,662  

Industrial & Infrastructure Fund Investment Corp.

   Diversified REITs     455          492,982  

Information Services International-Dentsu Ltd.

   IT Services     6,500          253,963  

INFRONEER Holdings, Inc.

   Construction & Engineering     58,500          449,222  

Inpex Corp.

   Oil, Gas & Consumable Fuels     247,000          2,592,674  

Internet Initiative Japan, Inc.

   Diversified Telecommunication Services     26,000          536,840  

Invincible Investment Corp.

   Hotel & Resort REITs     1,235          516,865  

Isetan Mitsukoshi Holdings Ltd.

   Broadline Retail     91,000          1,013,314  

Isuzu Motors Ltd.

   Automobiles     136,500          1,619,457  

Ito En Ltd.

   Beverages     13,000          422,458  

ITOCHU Corp.

   Trading Companies & Distributors     344,500          11,133,027  

Itochu Techno-Solutions Corp.

   IT Services     26,000          635,885  

Itoham Yonekyu Holdings, Inc.

   Food Products     32,500          170,937  

Iwatani Corp.

   Oil, Gas & Consumable Fuels     13,000          565,557  

Iyogin Holdings, Inc.

   Banks     71,500          403,997  

Izumi Co. Ltd.

   Broadline Retail     13,000          307,198  

J Front Retailing Co. Ltd.

   Broadline Retail     65,000          645,653  

aJapan Airlines Co. Ltd.

   Airlines     39,000          756,616  

aJapan Airport Terminal Co. Ltd.

   Transportation Infrastructure     13,000          644,677  

Japan Aviation Electronics Industry Ltd.

   Electronic Equipment, Instruments & Components     13,000          224,465  

Japan Exchange Group, Inc.

   Capital Markets     136,500          2,070,218  

Japan Hotel REIT Investment Corp.

   Diversified REITs     1,170          660,207  

Japan Logistics Fund, Inc.

   Diversified REITs     260          575,325  

Japan Metropolitan Fund Invest

   Diversified REITs     1,755          1,275,141  

bJapan Post Bank Co. Ltd.

   Banks     390,000          3,173,567  

Japan Post Holdings Co. Ltd.

   Insurance     546,000          4,416,327  

Japan Post Insurance Co. Ltd.

   Insurance     52,000          807,604  

Japan Prime Realty Investment Corp.

   Diversified REITs     260          681,794  

Japan Real Estate Investment Corp.

   Diversified REITs     325          1,289,353  

Japan Steel Works Ltd.

   Machinery     19,500          363,217  

Japan Tobacco, Inc.

   Tobacco     305,500          6,422,639  

JCR Pharmaceuticals Co. Ltd.

   Pharmaceuticals     13,000          138,019  

 

           
franklintempleton.com  

Annual Report

             255


FRANKLIN TEMPLETON ETF TRUST

SCHEDULE OF INVESTMENTS

 

Franklin FTSE Japan ETF (continued)

 

      Industry       Shares                Value  

Common Stocks (continued)

         

Japan (continued)

         

Jeol Ltd.

   Health Care Equipment & Supplies     13,000        $ 414,644  

JFE Holdings, Inc.

   Metals & Mining     130,000          1,640,018  

JGC Holdings Corp.

   Construction & Engineering     52,000          641,160  

JMDC, Inc.

   Health Care Technology     6,500          222,218  

JSR Corp.

   Chemicals     45,500          1,064,937  

JTEKT Corp.

   Automobile Components     58,500          448,783  

Justsystems Corp.

   Software     6,500          171,670  

Kadokawa Corp.

   Media     26,000          550,515  

Kagome Co. Ltd.

   Food Products     19,500          452,739  

Kajima Corp.

   Construction & Engineering     110,500          1,326,764  

Kakaku.com, Inc.

   Interactive Media & Services     32,500          440,773  

Kaken Pharmaceutical Co. Ltd.

   Pharmaceuticals     6,500          180,461  

Kamigumi Co. Ltd.

   Transportation Infrastructure     26,000          543,091  

Kandenko Co. Ltd.

   Construction & Engineering     26,000          182,658  

Kaneka Corp.

   Chemicals     13,000          336,990  

Kansai Electric Power Co., Inc.

   Electric Utilities     188,500          1,828,488  

Kansai Paint Co. Ltd.

   Chemicals     45,500          611,271  

Kao Corp.

   Personal Products     117,000          4,542,332  

Katitas Co. Ltd.

   Real Estate Management & Development     13,000          251,912  

Kawasaki Heavy Industries Ltd.

   Machinery     39,000          848,043  

Kawasaki Kisen Kaisha Ltd.

   Marine Transportation     58,500          1,329,645  

KDDI Corp.

   Wireless Telecommunication Services     416,000          12,793,508  

Keihan Holdings Co. Ltd.

   Industrial Conglomerates     26,000          674,957  

Keikyu Corp.

   Ground Transportation     65,000          614,885  

Keio Corp.

   Ground Transportation     29,120          1,016,323  

Keisei Electric Railway Co. Ltd.

   Ground Transportation     32,500          995,097  

Kenedix Office Investment Corp.

   Diversified REITs     195          449,076  

Kewpie Corp.

   Food Products     26,000          435,254  

Keyence Corp.

   Electronic Equipment, Instruments & Components     50,617          24,511,726  

Kikkoman Corp.

   Food Products     45,500          2,304,230  

Kinden Corp.

   Construction & Engineering     32,500          389,492  

Kintetsu Group Holdings Co. Ltd.

   Ground Transportation     45,500          1,458,092  

Kirin Holdings Co. Ltd.

   Beverages     195,000          3,071,005  

Kobayashi Pharmaceutical Co. Ltd.

   Personal Products     15,080          916,652  

Kobe Bussan Co. Ltd.

   Consumer Staples Distribution & Retail     39,000          1,079,833  

Kobe Steel Ltd.

   Metals & Mining     84,500          668,559  

Koei Tecmo Holdings Co. Ltd.

   Entertainment     39,000          699,767  

Koito Manufacturing Co. Ltd.

   Automobile Components     59,540          1,118,416  

Kokuyo Co. Ltd.

   Commercial Services & Supplies     19,500          275,160  

Komatsu Ltd.

   Machinery     240,500          5,921,696  

Konami Group Corp.

   Entertainment     26,000          1,185,814  

Konica Minolta, Inc.

   Technology Hardware, Storage & Peripherals     117,000          500,210  

Kose Corp.

   Personal Products     7,280          857,693  

Kotobuki Spirits Co. Ltd.

   Food Products     6,500          457,623  

K’s Holdings Corp.

   Specialty Retail     39,000          340,799  

Kubota Corp.

   Machinery     279,500          4,198,065  

Kuraray Co. Ltd.

   Chemicals     84,500          772,684  

Kurita Water Industries Ltd.

   Machinery     26,000          1,179,953  

Kusuri No. Aoki Holdings Co. Ltd.

   Consumer Staples Distribution & Retail     3,420          172,426  

Kyocera Corp.

   Electronic Equipment, Instruments & Components     78,700          4,073,075  

Kyowa Kirin Co. Ltd.

   Pharmaceuticals     65,000          1,409,497  

Kyudenko Corp.

   Construction & Engineering     13,000          328,687  

aKyushu Electric Power Co., Inc.

   Electric Utilities     117,000          665,482  

Kyushu Financial Group, Inc.

   Banks     97,500          349,444  

Kyushu Railway Co.

   Ground Transportation     39,000          864,160  

LaSalle Logiport REIT

   Diversified REITs     455          525,460  

Lasertec Corp.

   Semiconductors & Semiconductor Equipment     19,500          3,410,925  

 

           
256             

Annual Report

  franklintempleton.com


FRANKLIN TEMPLETON ETF TRUST

SCHEDULE OF INVESTMENTS

 

Franklin FTSE Japan ETF (continued)

 

      Industry       Shares                Value  

Common Stocks (continued)

         

Japan (continued)

         

Lawson, Inc.

   Consumer Staples Distribution & Retail     13,000        $ 547,975  

Lintec Corp.

   Chemicals     13,000          211,473  

Lion Corp.

   Household Products     65,000          698,888  

Lixil Corp.

   Building Products     65,000          1,063,228  

M3, Inc.

   Health Care Technology     107,972          2,678,004  

Mabuchi Motor Co. Ltd.

   Electrical Equipment     13,000          376,550  

Makita Corp.

   Machinery     65,000          1,601,924  

Mani, Inc.

   Health Care Equipment & Supplies     13,000          176,407  

Marubeni Corp.

   Trading Companies & Distributors     396,500          5,349,130  

Marui Group Co. Ltd.

   Broadline Retail     45,500          691,611  

Maruichi Steel Tube Ltd.

   Metals & Mining     13,000          284,244  

Matsui Securities Co. Ltd.

   Capital Markets     26,000          152,964  

MatsukiyoCocokara & Co.

   Consumer Staples Distribution & Retail     32,500          1,711,812  

Mazda Motor Corp.

   Automobiles     149,500          1,376,043  

McDonald’s Holdings Co. Japan Ltd.

   Hotels, Restaurants & Leisure     19,500          808,776  

Mebuki Financial Group, Inc.

   Banks     260,000          632,955  

Medipal Holdings Corp.

   Health Care Providers & Services     39,000          528,635  

MEIJI Holdings Co. Ltd.

   Food Products     65,000          1,540,875  

Menicon Co. Ltd.

   Health Care Equipment & Supplies     13,000          274,183  

aMercari, Inc.

   Broadline Retail     32,500          563,848  

MINEBEA MITSUMI, Inc.

   Machinery     104,000          1,962,161  

MISUMI Group, Inc.

   Machinery     71,500          1,772,860  

Mitsubishi Chemical Group Corp.

   Chemicals     331,500          1,957,018  

Mitsubishi Corp.

   Trading Companies & Distributors     305,500          10,905,632  

Mitsubishi Electric Corp.

   Electrical Equipment     500,500          5,936,128  

Mitsubishi Estate Co. Ltd.

   Real Estate Management & Development     286,000          3,387,775  

Mitsubishi Gas Chemical Co., Inc.

   Chemicals     45,500          671,099  

Mitsubishi HC Capital, Inc.

   Financial Services     169,000          868,555  

Mitsubishi Heavy Industries Ltd.

   Machinery     71,500          2,619,536  

Mitsubishi Logistics Corp.

   Transportation Infrastructure     13,000          303,779  

Mitsubishi Materials Corp.

   Metals & Mining     32,500          526,730  

aMitsubishi Motors Corp.

   Automobiles     162,500          637,351  

Mitsubishi UFJ Financial Group, Inc.

   Banks     3,009,500          19,173,154  

Mitsui & Co. Ltd.

   Trading Companies & Distributors     390,000          12,061,312  

Mitsui Chemicals, Inc.

   Chemicals     45,500          1,165,790  

Mitsui Fudosan Co. Ltd.

   Real Estate Management & Development     234,000          4,367,391  

Mitsui Fudosan Logistics Park, Inc.

   Diversified REITs     130          454,204  

Mitsui High-Tec, Inc.

   Semiconductors & Semiconductor Equipment     6,500          408,295  

Mitsui Mining & Smelting Co. Ltd.

   Metals & Mining     13,000          314,036  

bMitsui OSK Lines Ltd.

   Marine Transportation     84,500          2,101,548  

Miura Co. Ltd.

   Machinery     26,000          660,305  

Mizuho Financial Group, Inc.

   Banks     656,500          9,263,709  

aMoney Forward, Inc.

   Software     13,000          445,901  

MonotaRO Co. Ltd.

   Trading Companies & Distributors     60,580          754,234  

Mori Hills REIT Investment Corp.

   Diversified REITs     390          432,519  

Morinaga & Co. Ltd.

   Food Products     13,000          366,782  

Morinaga Milk Industry Co. Ltd.

   Food Products     6,500          232,963  

MS&AD Insurance Group Holdings, Inc.

   Insurance     118,660          3,660,816  

Murata Manufacturing Co. Ltd.

   Electronic Equipment, Instruments & Components     143,000          8,638,666  

Nabtesco Corp.

   Machinery     32,500          791,194  

Nagase & Co. Ltd.

   Trading Companies & Distributors     26,000          397,551  

Nagoya Railroad Co. Ltd.

   Ground Transportation     52,000          798,617  

Nankai Electric Railway Co. Ltd.

   Ground Transportation     26,000          571,418  

NEC Corp.

   IT Services     65,000          2,490,796  

NEC Networks & System Integration Corp.

   IT Services     13,000          157,750  

NET One Systems Co. Ltd.

   IT Services     19,500          463,728  

Nexon Co. Ltd.

   Entertainment     104,000          2,465,399  

 

           
franklintempleton.com  

Annual Report

             257


FRANKLIN TEMPLETON ETF TRUST

SCHEDULE OF INVESTMENTS

 

Franklin FTSE Japan ETF (continued)

 

      Industry       Shares                Value  

Common Stocks (continued)

         

Japan (continued)

         

NGK Insulators Ltd.

   Machinery     65,000        $ 855,662  

NGK Spark Plug Co. Ltd.

   Automobile Components     52,000          1,068,991  

NH Foods Ltd.

   Food Products     26,000          749,192  

NHK Spring Co. Ltd.

   Automobile Components     39,000          277,504  

Nichirei Corp.

   Food Products     26,000          524,337  

Nidec Corp.

   Electrical Equipment     117,650          6,050,900  

Nifco, Inc.

   Automobile Components     19,500          549,440  

Nihon Kohden Corp.

   Health Care Equipment & Supplies     19,500          525,997  

Nihon M&A Center Holdings, Inc.

   Professional Services     67,060          495,808  

Nikon Corp.

   Household Durables     78,000          794,124  

Nintendo Co. Ltd.

   Entertainment     273,000          10,524,931  

Nippon Accommodations Fund, Inc.

   Diversified REITs     130          583,139  

Nippon Building Fund, Inc.

   Diversified REITs     390          1,614,622  

Nippon Electric Glass Co. Ltd.

   Electronic Equipment, Instruments & Components     19,500          373,473  

Nippon Express Co. Ltd.

   Ground Transportation     19,500          1,167,744  

Nippon Kayaku Co. Ltd.

   Chemicals     45,500          409,223  

Nippon Paint Holdings Co. Ltd.

   Chemicals     260,000          2,418,514  

Nippon Prologis REIT, Inc.

   Diversified REITs     650          1,368,961  

Nippon Sanso Holdings Corp.

   Chemicals     39,000          698,009  

Nippon Shinyaku Co. Ltd.

   Pharmaceuticals     13,000          569,464  

Nippon Shokubai Co. Ltd.

   Chemicals     6,500          257,871  

Nippon Steel Corp.

   Metals & Mining     214,500          5,028,477  

Nippon Steel Trading Corp.

   Trading Companies & Distributors     6,500          453,716  

Nippon Telegraph & Telephone Corp.

   Diversified Telecommunication Services     299,000          8,901,029  

bNippon Yusen KK

   Marine Transportation     124,170          2,881,968  

Nipro Corp.

   Health Care Equipment & Supplies     32,500          248,835  

Nishi-Nippon Railroad Co. Ltd.

   Ground Transportation     19,500          350,470  

Nissan Chemical Corp.

   Chemicals     34,260          1,541,945  

Nissan Motor Co. Ltd.

   Automobiles     494,000          1,859,970  

Nisshin Seifun Group, Inc.

   Food Products     65,000          757,495  

Nissin Foods Holdings Co. Ltd.

   Food Products     19,500          1,777,256  

Nitori Holdings Co. Ltd.

   Specialty Retail     19,500          2,334,022  

Nitto Denko Corp.

   Chemicals     39,000          2,505,447  

Noevir Holdings Co. Ltd.

   Personal Products     6,500          263,731  

NOF Corp.

   Chemicals     19,500          904,012  

NOK Corp.

   Automobile Components     26,000          285,807  

Nomura Holdings, Inc.

   Capital Markets     780,000          2,987,197  

Nomura Real Estate Holdings, Inc.

   Real Estate Management & Development     26,000          572,395  

Nomura Real Estate Master Fund, Inc.

   Diversified REITs     1,170          1,305,470  

Nomura Research Institute Ltd.

   IT Services     110,500          2,544,763  

NS Solutions Corp.

   IT Services     6,500          172,891  

NSK Ltd.

   Machinery     117,000          664,603  

NTT Data Corp.

   IT Services     162,500          2,114,734  

Obayashi Corp.

   Construction & Engineering     175,500          1,335,799  

OBIC Business Consultants Co. Ltd.

   Software     6,500          243,707  

Obic Co. Ltd.

   IT Services     17,500          2,748,140  

Odakyu Electric Railway Co. Ltd.

   Ground Transportation     78,000          1,008,040  

Oji Holdings Corp.

   Paper & Forest Products     227,500          895,710  

OKUMA Corp.

   Machinery     6,500          288,639  

Olympus Corp.

   Health Care Equipment & Supplies     318,500          5,548,443  

Omron Corp.

   Electronic Equipment, Instruments & Components     47,300          2,739,057  

Ono Pharmaceutical Co. Ltd.

   Pharmaceuticals     110,500          2,294,853  

Open House Group Co. Ltd.

   Household Durables     19,500          725,261  

Oracle Corp. Japan

   Software     8,320          595,759  

Orient Corp.

   Consumer Finance     14,200          117,684  

Oriental Land Co. Ltd.

   Hotels, Restaurants & Leisure     238,600          8,117,671  

ORIX Corp.

   Financial Services     305,500          4,996,023  

 

           
258             

Annual Report

  franklintempleton.com


FRANKLIN TEMPLETON ETF TRUST

SCHEDULE OF INVESTMENTS

 

Franklin FTSE Japan ETF (continued)

 

      Industry       Shares                Value  

Common Stocks (continued)

         

Japan (continued)

         

Orix JREIT, Inc.

   Diversified REITs     650        $ 820,497  

Osaka Gas Co. Ltd.

   Gas Utilities     104,000          1,704,290  

OSG Corp.

   Machinery     19,500          291,277  

Otsuka Corp.

   IT Services     26,000          915,245  

Otsuka Holdings Co. Ltd.

   Pharmaceuticals     110,500          3,489,605  

PALTAC Corp.

   Distributors     6,500          245,172  

Pan Pacific International Holdings Corp.

   Broadline Retail     104,000          1,999,669  

Panasonic Holdings Corp.

   Household Durables     552,500          4,906,868  

aPark24 Co. Ltd.

   Commercial Services & Supplies     32,500          472,519  

Penta-Ocean Construction Co. Ltd.

   Construction & Engineering     71,500          339,530  

aPeptiDream, Inc.

   Biotechnology     21,200          299,307  

Persol Holdings Co. Ltd.

   Professional Services     45,500          907,333  

Pigeon Corp.

   Household Products     26,000          400,286  

Pola Orbis Holdings, Inc.

   Personal Products     19,500          252,303  

Rakus Co. Ltd.

   Software     26,000          370,787  

aRakuten Group, Inc.

   Internet & Direct Marketing Retail     208,000          959,591  

Recruit Holdings Co. Ltd.

   Professional Services     351,000          9,626,193  

Relo Group, Inc.

   Real Estate Management & Development     26,000          411,225  

aRenesas Electronics Corp.

   Semiconductors & Semiconductor Equipment     312,000          4,485,777  

Rengo Co. Ltd.

   Containers & Packaging     52,000          335,623  

aRENOVA, Inc.

   Independent Power Producers & Energy Traders     13,000          194,380  

Resona Holdings, Inc.

   Banks     552,500          2,654,773  

Resonac Holdings Corp.

   Chemicals     45,500          743,918  

Resorttrust, Inc.

   Hotels, Restaurants & Leisure     19,500          309,005  

Ricoh Co. Ltd.

   Technology Hardware, Storage & Peripherals     149,500          1,113,190  

Rinnai Corp.

   Household Durables     25,500          619,825  

Rohm Co. Ltd.

   Semiconductors & Semiconductor Equipment     21,060          1,735,879  

Rohto Pharmaceutical Co. Ltd.

   Personal Products     52,000          1,082,275  

Ryohin Keikaku Co. Ltd.

   Broadline Retail     58,500          661,086  

Sankyo Co. Ltd.

   Leisure Products     13,000          540,161  

Sankyu, Inc.

   Ground Transportation     13,000          479,112  

Sanrio Co. Ltd.

   Specialty Retail     13,000          579,232  

Santen Pharmaceutical Co. Ltd.

   Pharmaceuticals     84,500          717,447  

Sanwa Holdings Corp.

   Building Products     52,000          553,250  

Sapporo Holdings Ltd.

   Beverages     13,000          332,594  

Sawai Group Holdings Co. Ltd.

   Pharmaceuticals     6,500          178,263  

SBI Holdings, Inc.

   Capital Markets     65,000          1,281,539  

aSBI Shinsei Bank Ltd.

   Banks     13,000          227,786  

SCREEN Holdings Co. Ltd.

   Semiconductors & Semiconductor Equipment     10,200          892,854  

SCSK Corp.

   IT Services     32,500          472,519  

Secom Co. Ltd.

   Commercial Services & Supplies     52,000          3,189,781  

Sega Sammy Holdings, Inc.

   Leisure Products     39,000          736,396  

Seibu Holdings, Inc.

   Industrial Conglomerates     52,000          530,979  

Seiko Epson Corp.

   Technology Hardware, Storage & Peripherals     65,000          918,664  

Seino Holdings Co. Ltd.

   Ground Transportation     32,500          356,526  

Sekisui Chemical Co. Ltd.

   Household Durables     84,500          1,191,089  

Sekisui House Ltd.

   Household Durables     143,000          2,898,895  

Sekisui House Reit, Inc.

   Diversified REITs     1,040          561,845  

Seven & i Holdings Co. Ltd.

   Consumer Staples Distribution & Retail     201,500          9,046,228  

Seven Bank Ltd.

   Banks     169,000          336,502  

SG Holdings Co. Ltd.

   Air Freight & Logistics     110,500          1,627,320  

aSharp Corp.

   Household Durables     52,000          364,535  

aSHIFT, Inc.

   IT Services     2,600          458,306  

aShikoku Electric Power Co., Inc.

   Electric Utilities     39,000          220,655  

Shimadzu Corp.

   Electronic Equipment, Instruments & Components     71,500          2,224,134  

Shimamura Co. Ltd.

   Specialty Retail     6,500          659,328  

Shimano, Inc.

   Leisure Products     19,483          3,343,540  

 

           
franklintempleton.com  

Annual Report

             259


FRANKLIN TEMPLETON ETF TRUST

SCHEDULE OF INVESTMENTS

 

Franklin FTSE Japan ETF (continued)

 

      Industry       Shares                Value  

Common Stocks (continued)

         

Japan (continued)

         

Shimizu Corp.

   Construction & Engineering     136,500        $ 769,216  

Shin-Etsu Chemical Co. Ltd.

   Chemicals     502,400          16,137,651  

Shinko Electric Industries Co. Ltd.

   Semiconductors & Semiconductor Equipment     19,500          597,791  

Shionogi & Co. Ltd.

   Pharmaceuticals     71,500          3,211,026  

Ship Healthcare Holdings, Inc.

   Health Care Providers & Services     19,500          357,063  

Shiseido Co. Ltd.

   Personal Products     99,400          4,616,360  

Shizuoka Financial Group, Inc.

   Banks     130,000          928,920  

SHO-BOND Holdings Co. Ltd.

   Construction & Engineering     13,000          535,277  

aShochiku Co. Ltd.

   Entertainment     1,820          156,305  

aSkylark Holdings Co. Ltd.

   Hotels, Restaurants & Leisure     58,500          760,425  

SMC Corp.

   Machinery     14,456          7,584,811  

SMS Co. Ltd.

   Professional Services     13,000          312,082  

SoftBank Corp.

   Wireless Telecommunication Services     708,500          8,139,578  

SoftBank Group Corp.

   Wireless Telecommunication Services     251,100          9,776,844  

Sohgo Security Services Co. Ltd.

   Commercial Services & Supplies     19,500          522,335  

Sojitz Corp.

   Trading Companies & Distributors     60,720          1,260,571  

Sompo Holdings, Inc.

   Insurance     78,000          3,078,037  

Sony Group Corp.

   Household Durables     321,000          28,906,642  

Sotetsu Holdings, Inc.

   Ground Transportation     19,500          332,301  

Square Enix Holdings Co. Ltd.

   Entertainment     19,500          931,851  

Stanley Electric Co. Ltd.

   Automobile Components     39,000          858,885  

Subaru Corp.

   Automobiles     156,000          2,478,488  

Sugi Holdings Co. Ltd.

   Consumer Staples Distribution & Retail     8,620          368,531  

SUMCO Corp.

   Semiconductors & Semiconductor Equipment     91,000          1,354,504  

Sumitomo Bakelite Co. Ltd.

   Chemicals     6,500          252,010  

Sumitomo Chemical Co. Ltd.

   Chemicals     390,000          1,304,005  

Sumitomo Corp.

   Trading Companies & Distributors     292,500          5,144,958  

Sumitomo Electric Industries Ltd.

   Automobile Components     195,000          2,486,400  

Sumitomo Forestry Co. Ltd.

   Household Durables     32,500          639,793  

Sumitomo Heavy Industries Ltd.

   Machinery     32,500          791,194  

Sumitomo Metal Mining Co. Ltd.

   Metals & Mining     58,500          2,219,299  

Sumitomo Mitsui Financial Group, Inc.

   Banks     331,500          13,196,236  

Sumitomo Mitsui Trust Holdings, Inc.

   Banks     91,000          3,104,899  

Sumitomo Pharma Co. Ltd.

   Pharmaceuticals     45,500          276,918  

Sumitomo Realty & Development Co. Ltd.

   Real Estate Management & Development     104,000          2,330,213  

Sumitomo Rubber Industries Ltd.

   Automobile Components     45,500          408,881  

Sundrug Co. Ltd.

   Consumer Staples Distribution & Retail     16,640          454,477  

Suntory Beverage & Food Ltd.

   Beverages     32,500          1,205,106  

Suzuken Co. Ltd.

   Health Care Providers & Services     19,500          490,101  

Suzuki Motor Corp.

   Automobiles     117,000          4,223,217  

Sysmex Corp.

   Health Care Equipment & Supplies     48,240          3,132,755  

T&D Holdings, Inc.

   Insurance     130,000          1,602,900  

Taiheiyo Cement Corp.

   Construction Materials     32,500          607,315  

Taisei Corp.

   Construction & Engineering     45,500          1,399,974  

Taisho Pharmaceutical Holdings Co. Ltd.

   Pharmaceuticals     13,000          539,184  

Taiyo Yuden Co. Ltd.

   Electronic Equipment, Instruments & Components     32,500          1,084,229  

Takara Bio, Inc.

   Biotechnology     13,000          169,276  

Takara Holdings, Inc.

   Beverages     45,500          349,395  

Takashimaya Co. Ltd.

   Broadline Retail     39,000          566,436  

Takeda Pharmaceutical Co. Ltd.

   Pharmaceuticals     390,000          12,747,013  

TBS Holdings, Inc.

   Media     13,000          186,077  

TDK Corp.

   Electronic Equipment, Instruments & Components     93,200          3,308,814  

TechnoPro Holdings, Inc.

   Professional Services     27,160          743,844  

Teijin Ltd.

   Chemicals     45,500          477,256  

Terumo Corp.

   Health Care Equipment & Supplies     169,000          4,538,327  

THK Co. Ltd.

   Machinery     32,500          746,018  

TIS, Inc.

   IT Services     58,500          1,534,037  

 

           
260             

Annual Report

  franklintempleton.com


FRANKLIN TEMPLETON ETF TRUST

SCHEDULE OF INVESTMENTS

 

Franklin FTSE Japan ETF (continued)

 

      Industry       Shares                Value  
Common Stocks (continued)                    

Japan (continued)

         

Tobu Railway Co. Ltd.

   Ground Transportation     52,000        $ 1,238,560  

Toda Corp.

   Construction & Engineering     58,500          303,731  

Toei Animation Co. Ltd.

   Entertainment     1,500          148,321  

Toho Co. Ltd.

   Entertainment     26,000          990,458  

Toho Gas Co. Ltd.

   Gas Utilities     22,900          423,794  

aTohoku Electric Power Co., Inc.

   Electric Utilities     123,500          611,515  

Tokai Carbon Co. Ltd.

   Chemicals     52,000          492,298  

Tokio Marine Holdings, Inc.

   Insurance     481,000          9,205,102  

Tokyo Century Corp.

   Financial Services     15,410          510,039  

aTokyo Electric Power Co. Holdings, Inc.

   Electric Utilities     403,000          1,432,256  

Tokyo Electron Ltd.

   Semiconductors & Semiconductor Equipment     115,125          13,874,859  

Tokyo Gas Co. Ltd.

   Gas Utilities     110,500          2,072,342  

Tokyo Ohka Kogyo Co. Ltd.

   Chemicals     9,100          525,802  

Tokyo Tatemono Co. Ltd.

   Real Estate Management & Development     52,000          631,002  

Tokyu Corp.

   Ground Transportation     156,000          2,065,309  

Tokyu Fudosan Holdings Corp.

   Real Estate Management & Development     156,000          744,308  

TOPPAN, Inc.

   Commercial Services & Supplies     71,500          1,431,719  

Toray Industries, Inc.

   Chemicals     396,500          2,253,457  

Toshiba Corp.

   Industrial Conglomerates     110,500          3,690,529  

Toshiba TEC Corp.

   Technology Hardware, Storage & Peripherals     6,500          190,961  

Tosoh Corp.

   Chemicals     71,500          965,403  

TOTO Ltd.

   Building Products     39,000          1,295,214  

Toyo Seikan Group Holdings Ltd.

   Containers & Packaging     32,500          445,901  

Toyo Suisan Kaisha Ltd.

   Food Products     26,000          1,084,229  

Toyo Tire Corp.

   Automobile Components     26,000          301,826  

Toyoda Gosei Co. Ltd.

   Automobile Components     19,500          334,060  

Toyota Boshoku Corp.

   Automobile Components     13,000          208,738  

Toyota Industries Corp.

   Automobile Components     39,000          2,153,806  

Toyota Motor Corp.

   Automobiles     3,107,000          43,888,797  

Toyota Tsusho Corp.

   Trading Companies & Distributors     58,500          2,470,283  

aTrend Micro, Inc.

   Software     32,500          1,579,946  

TS Tech Co. Ltd.

   Automobile Components     26,000          328,004  

Tsumura & Co.

   Pharmaceuticals     19,500          385,341  

Tsuruha Holdings, Inc.

   Consumer Staples Distribution & Retail     8,750          581,843  

UBE Corp.

   Chemicals     26,000          401,458  

Ulvac, Inc.

   Semiconductors & Semiconductor Equipment     13,000          561,650  

Unicharm Corp.

   Household Products     97,500          3,986,006  

United Urban Investment Corp.

   Diversified REITs     780          838,080  

Ushio, Inc.

   Electrical Equipment     26,000          325,269  

USS Co. Ltd.

   Specialty Retail     52,000          896,686  

Welcia Holdings Co. Ltd.

   Consumer Staples Distribution & Retail     26,000          553,640  

West Japan Railway Co.

   Ground Transportation     58,500          2,398,636  

Workman Co. Ltd.

   Specialty Retail     13,000          546,998  

Yakult Honsha Co. Ltd.

   Food Products     32,500          2,351,604  

aYamada Holdings Co. Ltd.

   Specialty Retail     156,000          534,495  

Yamaguchi Financial Group, Inc.

   Banks     52,000          317,259  

Yamaha Corp.

   Leisure Products     39,000          1,491,547  

Yamaha Motor Co. Ltd.

   Automobiles     78,000          2,027,801  

Yamato Holdings Co. Ltd.

   Air Freight & Logistics     84,500          1,440,608  

Yamato Kogyo Co. Ltd.

   Metals & Mining     6,500          260,801  

Yamazaki Baking Co. Ltd.

   Food Products     32,500          391,690  

Yaoko Co. Ltd.

   Consumer Staples Distribution & Retail     6,500          336,990  

Yaskawa Electric Corp.

   Machinery     65,000          2,818,018  

Yokogawa Electric Corp.

   Electronic Equipment, Instruments & Components     65,000          1,050,041  

Yokohama Rubber Co. Ltd.

   Automobile Components     32,500          683,015  

Z Holdings Corp.

   Interactive Media & Services     682,500          1,911,759  

Zenkoku Hosho Co. Ltd.

   Financial Services     13,000          487,903  

 

           
franklintempleton.com  

Annual Report

             261


FRANKLIN TEMPLETON ETF TRUST

SCHEDULE OF INVESTMENTS

 

Franklin FTSE Japan ETF (continued)

 

      Industry       Shares                Value  
Common Stocks (continued)                    

Japan (continued)

         

Zensho Holdings Co. Ltd.

   Hotels, Restaurants & Leisure     26,000        $ 766,774  

Zeon Corp.

   Chemicals     39,000          409,956  

ZOZO, Inc.

   Internet & Direct Marketing Retail     26,000          589,000  
         

 

 

 

Total Investments before Short-Term Investments
(Cost $1,089,076,854)

            988,568,241  
         

 

 

 

Short-Term Investments 0.4%

         

Investments from Cash Collateral Received for Loaned Securities 0.4%

         

United States 0.4%

         

c,dInstitutional Fiduciary Trust Portfolio, 4.47%

   Money Market Funds     4,355,834          4,355,834  
         

 

 

 

Money Market Funds 0.0%

         

United States 0.0%

         

c,dInstitutional Fiduciary Trust - Money Market Portfolio, 4.47%

   Money Market Funds     61,459          61,459  
         

 

 

 

Total Short-Term Investments
(Cost $4,417,293)

            4,417,293  
         

 

 

 

Total Investments
(Cost $1,093,494,147) 99.2%

            992,985,534  

Other Assets, less Liabilities 0.8%

   .          7,817,688  
         

 

 

 

Net Assets 100.0%

          $ 1,000,803,222  
         

 

 

 

Rounds to less than 0.1% of net assets.

aNon-income producing.

bA portion or all of the security is on loan at March 31, 2023 Note 1(c).

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

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

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

Futures Contracts

 

                                Value/Unrealized  
Description      Type       

Number of

Contracts

 

 

    

Notional

Amount

 

   

Expiration

Date

 

 

    

Appreciation

(Depreciation)

 

 

 

 

Index Contracts

             

Nikkei 225 Mini

        52        $10,955,594       6/08/23        $162,284  

*As of year end.

See Note 7 regarding other derivative information.

See Abbreviations on page 355.

 

           
262             

Annual Report    |   The accompanying notes are an integral part of these financial statements.

  franklintempleton.com


FRANKLIN TEMPLETON ETF TRUST

 

Financial Highlights

 

Franklin FTSE Japan Hedged ETF

 

    Year Ended March 31,
     2023   2022   2021    2020   2019  
Per share operating performance           

(for a share outstanding throughout the year)

          

Net asset value, beginning of year

    $30.90       $30.70       $21.35        $23.12       $25.11  
Income from investment operationsa:           

Net investment incomeb

    0.58       0.68       0.88        0.38       0.38  

Net realized and unrealized gains (losses)

    1.56       (0.08     8.47        (2.15     (1.11

Total from investment operations

    2.14       0.60       9.35        (1.77     (0.73

Less distributions from:

          

Net investment income

    (0.92     (0.40                  (0.01

Net realized gains

    (5.55                        (1.25

Total distributions

    (6.47     (0.40                  (1.26

Net asset value, end of year

    $26.57       $30.90       $30.70        $21.35       $23.12  

Total returnc

    8.15%       1.93%       43.84%        (7.66)%       (2.59)%  
Ratios to average net assetsd           

Expenses before waiver and payments by affiliates

    0.09%       0.09%       0.09%        0.09%       0.09%  

Expenses net of waiver and payments by affiliates

    0.09%       0.09%       0.09%        0.09%       0.09%  

Net investment income

    1.99%       2.22%       3.29%        1.59%       1.51%  
Supplemental data           

Net assets, end of year (000’s)

        $13,284       $24,720       $24,563        $4,269       $13,870  

Portfolio turnover ratee

    31.96%f       5.46%f       6.31%f        10.06%f       19.78%  

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

bBased on average daily shares outstanding.

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

dRatios are annualized for periods less than one year.

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

 

 

 

 

 

fPortfolio turnover rate excluding cash creations was as follows:     31.39%       5.03%       6.31%        10.06%        

 

           
franklintempleton.com  

The accompanying notes are an integral part of these financial statements.    |   Annual Report

             263


FRANKLIN TEMPLETON ETF TRUST

 

Schedule of Investments, March 31, 2023

 

Franklin FTSE Japan Hedged ETF

 

      Industry       Shares                Value  

Common Stocks 98.1%

         

Japan 98.1%

         

ABC-Mart, Inc.

   Specialty Retail     70        $ 3,850  

Acom Co. Ltd.

   Consumer Finance     1,500          3,595  

Activia Properties, Inc.

   Diversified REITs     2          5,680  

Advance Residence Investment Corp.

   Diversified REITs     5          11,890  

Advantest Corp.

   Semiconductors & Semiconductor Equipment     625          57,104  

Aeon Co. Ltd.

   Consumer Staples Distribution & Retail     2,500          48,200  

AEON Financial Service Co. Ltd.

   Consumer Finance     415          3,848  

Aeon Mall Co. Ltd.

   Real Estate Management & Development     400          5,221  

AEON REIT Investment Corp.

   Diversified REITs     6          6,532  

AGC, Inc.

   Building Products     635          23,498  

Aica Kogyo Co. Ltd.

   Building Products     185          4,219  

Ain Holdings, Inc.

   Consumer Staples Distribution & Retail     100          4,170  

Air Water, Inc.

   Chemicals     615          7,671  

Aisin Corp.

   Automobile Components     585          16,022  

Ajinomoto Co., Inc.

   Food Products     1,589          54,992  

Alfresa Holdings Corp.

   Health Care Providers & Services     534          6,805  

Alps Alpine Co. Ltd.

   Electronic Equipment, Instruments & Components     720          6,865  

Amada Co. Ltd.

   Machinery     1,115          10,372  

Amano Corp.

   Electronic Equipment, Instruments & Components     198          3,712  

Amvis Holdings, Inc.

   Health Care Providers & Services     100          2,307  

aANA Holdings, Inc.

   Airlines     540          11,669  

Anritsu Corp.

   Electronic Equipment, Instruments & Components     500          4,587  

Aozora Bank Ltd.

   Banks     400          7,210  

Ariake Japan Co. Ltd.

   Food Products     60          2,200  

AS One Corp.

   Health Care Providers & Services     95          4,004  

Asahi Group Holdings Ltd.

   Beverages     1,720          63,636  

Asahi Intecc Co. Ltd.

   Health Care Equipment & Supplies     650          11,350  

Asahi Kasei Corp.

   Chemicals     4,000          27,840  

Asics Corp.

   Textiles, Apparel & Luxury Goods     550          15,497  

ASKUL Corp.

   Internet & Direct Marketing Retail     120          1,554  

Astellas Pharma, Inc.

   Pharmaceuticals     6,259          88,554  

Azbil Corp.

   Electronic Equipment, Instruments & Components     445          12,070  

AZ-COM MARUWA Holdings, Inc.

   Air Freight & Logistics     125          1,869  

Bandai Namco Holdings, Inc.

   Leisure Products     1,944          41,607  

Bank of Kyoto Ltd.

   Banks     243          11,411  

BayCurrent Consulting, Inc.

   Professional Services     500          20,475  

Benefit One, Inc.

   Professional Services     179          2,523  

Benesse Holdings, Inc.

   Diversified Consumer Services     265          3,863  

Bic Camera, Inc.

   Specialty Retail     500          4,181  

BIPROGY, Inc.

   IT Services     210          5,128  

Bridgestone Corp.

   Automobile Components     1,900          76,620  

Brother Industries Ltd.

   Technology Hardware, Storage & Peripherals     750          11,225  

Calbee, Inc.

   Food Products     215          4,476  

Canon Marketing Japan, Inc.

   Electronic Equipment, Instruments & Components     135          3,195  

Canon, Inc.

   Technology Hardware, Storage & Peripherals     3,265          72,505  

Capcom Co. Ltd.

   Entertainment     580          20,635  

Casio Computer Co. Ltd.

   Household Durables     700          6,827  

Central Japan Railway Co.

   Ground Transportation     630          74,839  

Chiba Bank Ltd.

   Banks     2,000          12,848  

Chubu Electric Power Co., Inc.

   Electric Utilities     2,500          26,279  

Chugai Pharmaceutical Co. Ltd.

   Pharmaceuticals     2,268          55,724  

Chugin Financial Group, Inc.

   Banks     525          3,507  

aChugoku Electric Power Co., Inc.

   Electric Utilities     1,000          5,057  

Coca-Cola Bottlers Japan Holdings, Inc.

   Beverages     500          5,429  

COMSYS Holdings Corp.

   Construction & Engineering     360          6,608  

Concordia Financial Group Ltd.

   Banks     4,000          14,667  

Cosmo Energy Holdings Co. Ltd.

   Oil, Gas & Consumable Fuels     225          7,244  

 

           
264             

Annual Report

  franklintempleton.com


FRANKLIN TEMPLETON ETF TRUST

SCHEDULE OF INVESTMENTS

 

Franklin FTSE Japan Hedged ETF (continued)

 

      Industry       Shares                Value  
Common Stocks (continued)                    

Japan (continued)

         

Cosmos Pharmaceutical Corp.

   Consumer Staples Distribution & Retail     61        $ 5,463  

Credit Saison Co. Ltd.

   Consumer Finance     525          6,627  

CyberAgent, Inc.

   Media     1,500          12,567  

Dai Nippon Printing Co. Ltd.

   Commercial Services & Supplies     870          24,219  

Daicel Corp.

   Chemicals     1,000          7,514  

Daido Steel Co. Ltd.

   Metals & Mining     120          4,689  

Daifuku Co. Ltd.

   Machinery     1,023          18,778  

Dai-ichi Life Holdings, Inc.

   Insurance     3,300          60,376  

Daiichi Sankyo Co. Ltd.

   Pharmaceuticals     6,400          231,879  

Daiichikosho Co. Ltd.

   Entertainment     230          3,774  

Daikin Industries Ltd.

   Building Products     920          163,518  

Daio Paper Corp.

   Paper & Forest Products     315          2,447  

Daito Trust Construction Co. Ltd.

   Real Estate Management & Development     200          19,821  

Daiwa House Industry Co. Ltd.

   Real Estate Management & Development     2,243          52,481  

Daiwa House REIT Investment Corp.

   Diversified REITs     7          14,280  

Daiwa Office Investment Corp.

   Diversified REITs     1          4,553  

Daiwa Securities Group, Inc.

   Capital Markets     5,000          23,330  

Daiwa Securities Living Investments Corp.

   Diversified REITs     7          5,728  

aDeNA Co. Ltd.

   Entertainment     300          4,075  

Denka Co. Ltd.

   Chemicals     265          5,446  

Denso Corp.

   Automobile Components     1,500          83,887  

Dentsu Group, Inc.

   Media     690          24,108  

Descente Ltd.

   Textiles, Apparel & Luxury Goods     140          4,355  

DIC Corp.

   Chemicals     275          4,918  

Disco Corp.

   Semiconductors & Semiconductor Equipment     300          34,488  

DMG Mori Co. Ltd.

   Machinery     360          6,027  

Dowa Holdings Co. Ltd.

   Metals & Mining     135          4,306  

East Japan Railway Co.

   Ground Transportation     1,215          66,962  

Ebara Corp.

   Machinery     275          12,666  

Eisai Co. Ltd.

   Pharmaceuticals     893          50,350  

Electric Power Development Co. Ltd.

   Independent Power Producers & Energy Traders     550          8,806  

ENEOS Holdings, Inc.

   Oil, Gas & Consumable Fuels     10,000          34,954  

EXEO Group, Inc.

   Construction & Engineering     350          6,304  

Ezaki Glico Co. Ltd.

   Food Products     185          4,636  

Fancl Corp.

   Personal Products     220          4,022  

FANUC Corp.

   Machinery     3,325          118,920  

Fast Retailing Co. Ltd.

   Specialty Retail     540          117,178  

Food & Life Cos. Ltd.

   Hotels, Restaurants & Leisure     315          8,142  

FP Corp.

   Containers & Packaging     135          3,327  

Frontier Real Estate Investment Corp.

   Diversified REITs     2          7,138  

Fuji Electric Co. Ltd.

   Electrical Equipment     400          15,629  

Fuji Kyuko Co. Ltd.

   Hotels, Restaurants & Leisure     75          2,474  

Fuji Media Holdings, Inc.

   Media     170          1,526  

Fuji Oil Holdings, Inc.

   Food Products     170          2,456  

FUJIFILM Holdings Corp.

   Technology Hardware, Storage & Peripherals     1,200          60,392  

Fujikura Ltd.

   Electrical Equipment     1,000          7,048  

Fujitsu General Ltd.

   Household Durables     185          5,192  

Fujitsu Ltd.

   IT Services     630          84,424  

Fukuoka Financial Group, Inc.

   Banks     540          10,342  

Furukawa Electric Co. Ltd.

   Electrical Equipment     210          3,883  

Fuyo General Lease Co. Ltd.

   Financial Services     75          5,072  

GLP J-Reit

   Diversified REITs     15          16,128  

GMO internet group, Inc.

   IT Services     200          3,858  

GMO Payment Gateway, Inc.

   IT Services     139          11,885  

Goldwin, Inc.

   Textiles, Apparel & Luxury Goods     125          11,834  

GS Yuasa Corp.

   Electrical Equipment     265          4,743  

aGungHo Online Entertainment, Inc.

   Entertainment     125          2,275  

 

           
franklintempleton.com  

Annual Report

             265


FRANKLIN TEMPLETON ETF TRUST

SCHEDULE OF INVESTMENTS

 

Franklin FTSE Japan Hedged ETF (continued)

 

      Industry       Shares                Value  

Common Stocks (continued)

         

Japan (continued)

         

H.U. Group Holdings, Inc.

   Health Care Providers & Services     185        $ 3,706  

Hachijuni Bank Ltd.

   Banks     1,500          6,481  

Hakuhodo DY Holdings, Inc.

   Media     800          8,986  

Hamamatsu Photonics KK

   Electronic Equipment, Instruments & Components     400          21,369  

Hankyu Hanshin Holdings, Inc.

   Ground Transportation     740          21,824  

Harmonic Drive Systems, Inc.

   Machinery     100          3,302  

Haseko Corp.

   Household Durables     875          10,118  

Heiwa Corp.

   Leisure Products     185          3,654  

Hikari Tsushin, Inc.

   Specialty Retail     70          9,767  

aHino Motors Ltd.

   Machinery     1,000          4,155  

Hirogin Holdings, Inc.

   Banks     1,000          4,704  

Hirose Electric Co. Ltd.

   Electronic Equipment, Instruments & Components     102          13,236  

Hisamitsu Pharmaceutical Co., Inc.

   Pharmaceuticals     215          6,106  

Hitachi Construction Machinery Co. Ltd.

   Machinery     360          8,318  

Hitachi Ltd.

   Industrial Conglomerates     3,115          169,735  

Honda Motor Co. Ltd.

   Automobiles     5,700          150,327  

Horiba Ltd.

   Electronic Equipment, Instruments & Components     140          8,321  

Hoshizaki Corp.

   Machinery     380          13,948  

House Foods Group, Inc.

   Food Products     215          4,539  

Hoya Corp.

   Health Care Equipment & Supplies     1,200          131,280  

Hulic Co. Ltd.

   Real Estate Management & Development     1,500          12,251  

Ibiden Co. Ltd.

   Electronic Equipment, Instruments & Components     360          14,228  

Idemitsu Kosan Co. Ltd.

   Oil, Gas & Consumable Fuels     805          17,541  

IHI Corp.

   Machinery     445          11,101  

Iida Group Holdings Co. Ltd.

   Household Durables     500          8,111  

Industrial & Infrastructure Fund Investment Corp.

   Diversified REITs     7          7,584  

Information Services International-Dentsu Ltd.

   IT Services     75          2,930  

INFRONEER Holdings, Inc.

   Construction & Engineering     795          6,105  

Inpex Corp.

   Oil, Gas & Consumable Fuels     3,200          33,589  

Internet Initiative Japan, Inc.

   Diversified Telecommunication Services     350          7,227  

Invincible Investment Corp.

   Hotel & Resort REITs     15          6,278  

Isetan Mitsukoshi Holdings Ltd.

   Broadline Retail     1,200          13,362  

Isuzu Motors Ltd.

   Automobiles     1,800          21,355  

Ito En Ltd.

   Beverages     185          6,012  

ITOCHU Corp.

   Trading Companies & Distributors     4,579          147,977  

Itochu Techno-Solutions Corp.

   IT Services     340          8,315  

Itoham Yonekyu Holdings, Inc.

   Food Products     500          2,630  

Iwatani Corp.

   Oil, Gas & Consumable Fuels     150          6,526  

Iyogin Holdings, Inc.

   Banks     1,000          5,650  

Izumi Co. Ltd.

   Broadline Retail     145          3,426  

J Front Retailing Co. Ltd.

   Broadline Retail     865          8,592  

aJapan Airlines Co. Ltd.

   Airlines     500          9,700  

aJapan Airport Terminal Co. Ltd.

   Transportation Infrastructure     190          9,422  

Japan Aviation Electronics Industry Ltd.

   Electronic Equipment, Instruments & Components     170          2,935  

Japan Exchange Group, Inc.

   Capital Markets     1,800          27,300  

Japan Hotel REIT Investment Corp.

   Diversified REITs     15          8,464  

Japan Logistics Fund, Inc.

   Diversified REITs     3          6,638  

Japan Metropolitan Fund Invest

   Diversified REITs     24          17,438  

Japan Post Bank Co. Ltd.

   Banks     5,000          40,687  

Japan Post Holdings Co. Ltd.

   Insurance     7,000          56,620  

Japan Post Insurance Co. Ltd.

   Insurance     635          9,862  

Japan Prime Realty Investment Corp.

   Diversified REITs     3          7,867  

Japan Real Estate Investment Corp.

   Diversified REITs     4          15,869  

Japan Steel Works Ltd.

   Machinery     200          3,725  

Japan Tobacco, Inc.

   Tobacco     4,000          84,093  

JCR Pharmaceuticals Co. Ltd.

   Pharmaceuticals     200          2,123  

Jeol Ltd.

   Health Care Equipment & Supplies     140          4,465  

 

           
266             

Annual Report

  franklintempleton.com


FRANKLIN TEMPLETON ETF TRUST

SCHEDULE OF INVESTMENTS

 

Franklin FTSE Japan Hedged ETF (continued)

 

      Industry       Shares                Value  

Common Stocks (continued)

         

Japan (continued)

         

JFE Holdings, Inc.

   Metals & Mining     1,709        $ 21,560  

JGC Holdings Corp.

   Construction & Engineering     750          9,248  

JMDC, Inc.

   Health Care Technology     115          3,932  

JSR Corp.

   Chemicals     575          13,458  

JTEKT Corp.

   Automobile Components     800          6,137  

Justsystems Corp.

   Software     125          3,301  

Kadokawa Corp.

   Media     325          6,881  

Kagome Co. Ltd.

   Food Products     265          6,153  

Kajima Corp.

   Construction & Engineering     1,500          18,010  

Kakaku.com, Inc.

   Interactive Media & Services     400          5,425  

Kaken Pharmaceutical Co. Ltd.

   Pharmaceuticals     115          3,193  

Kamigumi Co. Ltd.

   Transportation Infrastructure     300          6,266  

Kandenko Co. Ltd.

   Construction & Engineering     300          2,108  

Kaneka Corp.

   Chemicals     195          5,055  

Kansai Electric Power Co., Inc.

   Electric Utilities     2,500          24,251  

Kansai Paint Co. Ltd.

   Chemicals     605          8,128  

Kao Corp.

   Personal Products     1,613          62,622  

Katitas Co. Ltd.

   Real Estate Management & Development     140          2,713  

Kawasaki Heavy Industries Ltd.

   Machinery     500          10,872  

Kawasaki Kisen Kaisha Ltd.

   Marine Transportation     715          16,251  

KDDI Corp.

   Wireless Telecommunication Services     5,430          166,992  

Keihan Holdings Co. Ltd.

   Industrial Conglomerates     335          8,697  

Keikyu Corp.

   Ground Transportation     800          7,568  

Keio Corp.

   Ground Transportation     400          13,960  

Keisei Electric Railway Co. Ltd.

   Ground Transportation     500          15,309  

Kenedix Office Investment Corp.

   Diversified REITs     3          6,909  

Kewpie Corp.

   Food Products     360          6,027  

Keyence Corp.

   Electronic Equipment, Instruments & Components     668          323,485  

Kikkoman Corp.

   Food Products     600          30,385  

Kinden Corp.

   Construction & Engineering     400          4,794  

Kintetsu Group Holdings Co. Ltd.

   Ground Transportation     610          19,548  

Kirin Holdings Co. Ltd.

   Beverages     2,609          41,088  

Kobayashi Pharmaceutical Co. Ltd.

   Personal Products     215          13,069  

Kobe Bussan Co. Ltd.

   Consumer Staples Distribution & Retail     500          13,844  

Kobe Steel Ltd.

   Metals & Mining     1,036          8,197  

Koei Tecmo Holdings Co. Ltd.

   Entertainment     500          8,971  

Koito Manufacturing Co. Ltd.

   Automobile Components     841          15,798  

Kokuyo Co. Ltd.

   Commercial Services & Supplies     259          3,655  

Komatsu Ltd.

   Machinery     3,175          78,176  

Konami Group Corp.

   Entertainment     325          14,823  

Konica Minolta, Inc.

   Technology Hardware, Storage & Peripherals     1,500          6,413  

Kose Corp.

   Personal Products     102          12,017  

Kotobuki Spirits Co. Ltd.

   Food Products     65          4,576  

K’s Holdings Corp.

   Specialty Retail     540          4,719  

Kubota Corp.

   Machinery     3,750          56,325  

Kuraray Co. Ltd.

   Chemicals     1,092          9,985  

Kurita Water Industries Ltd.

   Machinery     375          17,019  

Kusuri No. Aoki Holdings Co. Ltd.

   Consumer Staples Distribution & Retail     50          2,521  

Kyocera Corp.

   Electronic Equipment, Instruments & Components     1,020          52,790  

Kyowa Kirin Co. Ltd.

   Pharmaceuticals     865          18,757  

Kyudenko Corp.

   Construction & Engineering     125          3,160  

aKyushu Electric Power Co., Inc.

   Electric Utilities     1,550          8,816  

Kyushu Financial Group, Inc.

   Banks     1,000          3,584  

Kyushu Railway Co.

   Ground Transportation     540          11,965  

LaSalle Logiport REIT

   Diversified REITs     6          6,929  

Lasertec Corp.

   Semiconductors & Semiconductor Equipment     255          44,604  

Lawson, Inc.

   Consumer Staples Distribution & Retail     170          7,166  

 

           
franklintempleton.com  

Annual Report

             267


FRANKLIN TEMPLETON ETF TRUST

SCHEDULE OF INVESTMENTS

 

Franklin FTSE Japan Hedged ETF (continued)

 

      Industry       Shares                Value  

Common Stocks (continued)

         

Japan (continued)

         

Lintec Corp.

   Chemicals     170        $ 2,765  

Lion Corp.

   Household Products     1,000          10,752  

Lixil Corp.

   Building Products     900          14,722  

M3, Inc.

   Health Care Technology     1,400          34,724  

Mabuchi Motor Co. Ltd.

   Electrical Equipment     185          5,359  

Makita Corp.

   Machinery     830          20,455  

Mani, Inc.

   Health Care Equipment & Supplies     200          2,714  

Marubeni Corp.

   Trading Companies & Distributors     5,200          70,153  

Marui Group Co. Ltd.

   Broadline Retail     660          10,032  

Maruichi Steel Tube Ltd.

   Metals & Mining     210          4,592  

Matsui Securities Co. Ltd.

   Capital Markets     300          1,765  

MatsukiyoCocokara & Co.

   Consumer Staples Distribution & Retail     415          21,859  

Mazda Motor Corp.

   Automobiles     2,000          18,409  

McDonald’s Holdings Co. Japan Ltd.

   Hotels, Restaurants & Leisure     300          12,443  

Mebuki Financial Group, Inc.

   Banks     3,500          8,521  

Medipal Holdings Corp.

   Health Care Providers & Services     500          6,777  

MEIJI Holdings Co. Ltd.

   Food Products     900          21,335  

Menicon Co. Ltd.

   Health Care Equipment & Supplies     165          3,480  

aMercari, Inc.

   Broadline Retail     400          6,940  

MINEBEA MITSUMI, Inc.

   Machinery     1,400          26,414  

MISUMI Group, Inc.

   Machinery     1,000          24,795  

Mitsubishi Chemical Group Corp.

   Chemicals     4,500          26,566  

Mitsubishi Corp.

   Trading Companies & Distributors     3,986          142,291  

Mitsubishi Electric Corp.

   Electrical Equipment     6,700          79,465  

Mitsubishi Estate Co. Ltd.

   Real Estate Management & Development     3,800          45,012  

Mitsubishi Gas Chemical Co., Inc.

   Chemicals     569          8,392  

Mitsubishi HC Capital, Inc.

   Financial Services     2,000          10,279  

Mitsubishi Heavy Industries Ltd.

   Machinery     1,000          36,637  

Mitsubishi Logistics Corp.

   Transportation Infrastructure     215          5,024  

Mitsubishi Materials Corp.

   Metals & Mining     400          6,483  

aMitsubishi Motors Corp.

   Automobiles     2,500          9,805  

Mitsubishi UFJ Financial Group, Inc.

   Banks     39,700          252,924  

Mitsui & Co. Ltd.

   Trading Companies & Distributors     5,073          156,890  

Mitsui Chemicals, Inc.

   Chemicals     575          14,733  

Mitsui Fudosan Co. Ltd.

   Real Estate Management & Development     3,148          58,754  

Mitsui Fudosan Logistics Park, Inc.

   Diversified REITs     2          6,988  

Mitsui High-Tec, Inc.

   Semiconductors & Semiconductor Equipment     90          5,653  

Mitsui Mining & Smelting Co. Ltd.

   Metals & Mining     185          4,469  

Mitsui OSK Lines Ltd.

   Marine Transportation     1,145          28,477  

Miura Co. Ltd.

   Machinery     325          8,254  

Mizuho Financial Group, Inc.

   Banks     8,700          122,764  

aMoney Forward, Inc.

   Software     140          4,802  

MonotaRO Co. Ltd.

   Trading Companies & Distributors     815          10,147  

Mori Hills REIT Investment Corp.

   Diversified REITs     6          6,654  

Morinaga & Co. Ltd.

   Food Products     90          2,539  

Morinaga Milk Industry Co. Ltd.

   Food Products     95          3,405  

MS&AD Insurance Group Holdings, Inc.

   Insurance     1,500          46,277  

Murata Manufacturing Co. Ltd.

   Electronic Equipment, Instruments & Components     1,900          114,779  

Nabtesco Corp.

   Machinery     385          9,373  

Nagase & Co. Ltd.

   Trading Companies & Distributors     340          5,199  

Nagoya Railroad Co. Ltd.

   Ground Transportation     675          10,367  

Nankai Electric Railway Co. Ltd.

   Ground Transportation     360          7,912  

NEC Corp.

   IT Services     900          34,488  

NEC Networks & System Integration Corp.

   IT Services     225          2,730  

NET One Systems Co. Ltd.

   IT Services     275          6,540  

Nexon Co. Ltd.

   Entertainment     1,335          31,647  

NGK Insulators Ltd.

   Machinery     890          11,716  

 

           
268             

Annual Report

  franklintempleton.com


FRANKLIN TEMPLETON ETF TRUST

SCHEDULE OF INVESTMENTS

 

Franklin FTSE Japan Europe ETF (continued)

 

      Industry       Shares                Value  

Common Stocks (continued)

         

Japan (continued)

         

NGK Spark Plug Co. Ltd.

   Automobile Components     675        $ 13,876  

NH Foods Ltd.

   Food Products     310          8,933  

NHK Spring Co. Ltd.

   Automobile Components     540          3,842  

Nichirei Corp.

   Food Products     360          7,260  

Nidec Corp.

   Electrical Equipment     1,615          83,062  

Nifco, Inc.

   Automobile Components     275          7,749  

Nihon Kohden Corp.

   Health Care Equipment & Supplies     265          7,148  

Nihon M&A Center Holdings, Inc.

   Professional Services     1,000          7,393  

Nikon Corp.

   Household Durables     1,125          11,454  

Nintendo Co. Ltd.

   Entertainment     3,547          136,747  

Nippon Accommodations Fund, Inc.

   Diversified REITs     2          8,971  

Nippon Building Fund, Inc.

   Diversified REITs     5          20,700  

Nippon Electric Glass Co. Ltd.

   Electronic Equipment, Instruments & Components     265          5,075  

Nippon Express Co. Ltd.

   Ground Transportation     215          12,875  

Nippon Kayaku Co. Ltd.

   Chemicals     500          4,497  

Nippon Paint Holdings Co. Ltd.

   Chemicals     3,500          32,557  

Nippon Prologis REIT, Inc.

   Diversified REITs     8          16,849  

Nippon Sanso Holdings Corp.

   Chemicals     500          8,949  

Nippon Shinyaku Co. Ltd.

   Pharmaceuticals     160          7,009  

Nippon Shokubai Co. Ltd.

   Chemicals     110          4,364  

Nippon Steel Corp.

   Metals & Mining     2,800          65,640  

Nippon Steel Trading Corp.

   Trading Companies & Distributors     50          3,490  

Nippon Telegraph & Telephone Corp.

   Diversified Telecommunication Services     4,000          119,077  

Nippon Yusen KK

   Marine Transportation     1,625          37,716  

Nipro Corp.

   Health Care Equipment & Supplies     500          3,828  

Nishi-Nippon Railroad Co. Ltd.

   Ground Transportation     265          4,763  

Nissan Chemical Corp.

   Chemicals     400          18,003  

Nissan Motor Co. Ltd.

   Automobiles     7,000          26,356  

Nisshin Seifun Group, Inc.

   Food Products     859          10,011  

Nissin Foods Holdings Co. Ltd.

   Food Products     235          21,418  

Nitori Holdings Co. Ltd.

   Specialty Retail     254          30,402  

Nitto Denko Corp.

   Chemicals     500          32,121  

Noevir Holdings Co. Ltd.

   Personal Products     60          2,434  

NOF Corp.

   Chemicals     215          9,967  

NOK Corp.

   Automobile Components     395          4,342  

Nomura Holdings, Inc.

   Capital Markets     10,500          40,212  

Nomura Real Estate Holdings, Inc.

   Real Estate Management & Development     350          7,705  

Nomura Real Estate Master Fund, Inc.

   Diversified REITs     16          17,853  

Nomura Research Institute Ltd.

   IT Services     1,500          34,544  

NS Solutions Corp.

   IT Services     100          2,660  

NSK Ltd.

   Machinery     1,500          8,521  

NTT Data Corp.

   IT Services     2,115          27,524  

Obayashi Corp.

   Construction & Engineering     2,300          17,506  

OBIC Business Consultants Co. Ltd.

   Software     65          2,437  

Obic Co. Ltd.

   IT Services     224          35,176  

Odakyu Electric Railway Co. Ltd.

   Ground Transportation     1,025          13,247  

Oji Holdings Corp.

   Paper & Forest Products     3,000          11,812  

OKUMA Corp.

   Machinery     100          4,441  

Olympus Corp.

   Health Care Equipment & Supplies     4,200          73,166  

Omron Corp.

   Electronic Equipment, Instruments & Components     625          36,193  

Ono Pharmaceutical Co. Ltd.

   Pharmaceuticals     1,400          29,075  

Open House Group Co. Ltd.

   Household Durables     215          7,996  

Oracle Corp. Japan

   Software     115          8,235  

Orient Corp.

   Consumer Finance     225          1,865  

Oriental Land Co. Ltd.

   Hotels, Restaurants & Leisure     3,250          110,572  

ORIX Corp.

   Financial Services     4,000          65,414  

Orix JREIT, Inc.

   Diversified REITs     9          11,361  

 

           
franklintempleton.com  

Annual Report

             269


FRANKLIN TEMPLETON ETF TRUST

SCHEDULE OF INVESTMENTS

 

Franklin FTSE Japan Hedged ETF (continued)

 

      Industry       Shares                Value  

Common Stocks (continued)

         

Japan (continued)

         

Osaka Gas Co. Ltd.

   Gas Utilities     1,350        $ 22,123  

OSG Corp.

   Machinery     275          4,108  

Otsuka Corp.

   IT Services     360          12,673  

Otsuka Holdings Co. Ltd.

   Pharmaceuticals     1,400          44,212  

PALTAC Corp.

   Distributors     115          4,338  

Pan Pacific International Holdings Corp.

   Broadline Retail     1,370          26,342  

Panasonic Holdings Corp.

   Household Durables     7,200          63,945  

aPark24 Co. Ltd.

   Commercial Services & Supplies     445          6,470  

Penta-Ocean Construction Co. Ltd.

   Construction & Engineering     1,000          4,749  

aPeptiDream, Inc.

   Biotechnology     315          4,447  

Persol Holdings Co. Ltd.

   Professional Services     600          11,965  

Pigeon Corp.

   Household Products     360          5,542  

Pola Orbis Holdings, Inc.

   Personal Products     275          3,558  

Rakus Co. Ltd.

   Software     325          4,635  

aRakuten Group, Inc.

   Internet & Direct Marketing Retail     2,500          11,534  

Recruit Holdings Co. Ltd.

   Professional Services     4,660          127,801  

Relo Group, Inc.

   Real Estate Management & Development     360          5,694  

aRenesas Electronics Corp.

   Semiconductors & Semiconductor Equipment     4,115          59,163  

Rengo Co. Ltd.

   Containers & Packaging     740          4,776  

aRENOVA, Inc.

   Independent Power Producers & Energy Traders     140          2,093  

Resona Holdings, Inc.

   Banks     7,000          33,635  

Resonac Holdings Corp.

   Chemicals     595          9,728  

Resorttrust, Inc.

   Hotels, Restaurants & Leisure     200          3,169  

Ricoh Co. Ltd.

   Technology Hardware, Storage & Peripherals     2,000          14,892  

Rinnai Corp.

   Household Durables     285          6,927  

Rohm Co. Ltd.

   Semiconductors & Semiconductor Equipment     300          24,728  

Rohto Pharmaceutical Co. Ltd.

   Personal Products     670          13,945  

Ryohin Keikaku Co. Ltd.

   Broadline Retail     815          9,210  

Sankyo Co. Ltd.

   Leisure Products     120          4,986  

Sankyu, Inc.

   Ground Transportation     135          4,975  

Sanrio Co. Ltd.

   Specialty Retail     200          8,911  

Santen Pharmaceutical Co. Ltd.

   Pharmaceuticals     1,000          8,491  

Sanwa Holdings Corp.

   Building Products     715          7,607  

Sapporo Holdings Ltd.

   Beverages     200          5,117  

Sawai Group Holdings Co. Ltd.

   Pharmaceuticals     130          3,565  

SBI Holdings, Inc.

   Capital Markets     820          16,167  

aSBI Shinsei Bank Ltd.

   Banks     200          3,504  

SCREEN Holdings Co. Ltd.

   Semiconductors & Semiconductor Equipment     135          11,817  

SCSK Corp.

   IT Services     445          6,470  

Secom Co. Ltd.

   Commercial Services & Supplies     660          40,486  

Sega Sammy Holdings, Inc.

   Leisure Products     520          9,819  

Seibu Holdings, Inc.

   Industrial Conglomerates     673          6,872  

Seiko Epson Corp.

   Technology Hardware, Storage & Peripherals     900          12,720  

Seino Holdings Co. Ltd.

   Ground Transportation     500          5,485  

Sekisui Chemical Co. Ltd.

   Household Durables     1,140          16,069  

Sekisui House Ltd.

   Household Durables     1,900          38,517  

Sekisui House Reit, Inc.

   Diversified REITs     15          8,104  

Seven & i Holdings Co. Ltd.

   Consumer Staples Distribution & Retail     2,650          118,970  

Seven Bank Ltd.

   Banks     2,500          4,978  

SG Holdings Co. Ltd.

   Air Freight & Logistics     1,400          20,618  

aSharp Corp.

   Household Durables     725          5,082  

aSHIFT, Inc.

   IT Services     40          7,051  

aShikoku Electric Power Co., Inc.

   Electric Utilities     500          2,829  

Shimadzu Corp.

   Electronic Equipment, Instruments & Components     900          27,996  

Shimamura Co. Ltd.

   Specialty Retail     75          7,608  

Shimano, Inc.

   Leisure Products     266          45,649  

Shimizu Corp.

   Construction & Engineering     2,000          11,271  

 

           
270             

Annual Report

  franklintempleton.com


FRANKLIN TEMPLETON ETF TRUST

SCHEDULE OF INVESTMENTS

 

Franklin FTSE Japan Hedged ETF (continued)

 

      Industry       Shares                Value  

Common Stocks (continued)

         

Japan (continued)

         

Shin-Etsu Chemical Co. Ltd.

   Chemicals     6,650        $ 213,605  

Shinko Electric Industries Co. Ltd.

   Semiconductors & Semiconductor Equipment     215          6,591  

Shionogi & Co. Ltd.

   Pharmaceuticals     900          40,419  

Ship Healthcare Holdings, Inc.

   Health Care Providers & Services     265          4,852  

Shiseido Co. Ltd.

   Personal Products     1,305          60,607  

Shizuoka Financial Group, Inc.

   Banks     1,665          11,897  

SHO-BOND Holdings Co. Ltd.

   Construction & Engineering     165          6,794  

aShochiku Co. Ltd.

   Entertainment     35          3,006  

aSkylark Holdings Co. Ltd.

   Hotels, Restaurants & Leisure     740          9,619  

SMC Corp.

   Machinery     195          102,313  

SMS Co. Ltd.

   Professional Services     190          4,561  

SoftBank Corp.

   Wireless Telecommunication Services     9,500          109,140  

SoftBank Group Corp.

   Wireless Telecommunication Services     3,265          127,126  

Sohgo Security Services Co. Ltd.

   Commercial Services & Supplies     230          6,161  

Sojitz Corp.

   Trading Companies & Distributors     800          16,608  

Sompo Holdings, Inc.

   Insurance     1,050          41,435  

Sony Group Corp.

   Household Durables     4,220          380,019  

Sotetsu Holdings, Inc.

   Ground Transportation     265          4,516  

Square Enix Holdings Co. Ltd.

   Entertainment     245          11,708  

Stanley Electric Co. Ltd.

   Automobile Components     500          11,011  

Subaru Corp.

   Automobiles     2,123          33,730  

Sugi Holdings Co. Ltd.

   Consumer Staples Distribution & Retail     130          5,558  

SUMCO Corp.

   Semiconductors & Semiconductor Equipment     1,140          16,969  

Sumitomo Bakelite Co. Ltd.

   Chemicals     100          3,877  

Sumitomo Chemical Co. Ltd.

   Chemicals     5,500          18,390  

Sumitomo Corp.

   Trading Companies & Distributors     3,800          66,840  

Sumitomo Electric Industries Ltd.

   Automobile Components     2,609          33,267  

Sumitomo Forestry Co. Ltd.

   Household Durables     500          9,843  

Sumitomo Heavy Industries Ltd.

   Machinery     360          8,764  

Sumitomo Metal Mining Co. Ltd.

   Metals & Mining     815          30,918  

Sumitomo Mitsui Financial Group, Inc.

   Banks     4,400          175,154  

Sumitomo Mitsui Trust Holdings, Inc.

   Banks     1,210          41,285  

Sumitomo Pharma Co. Ltd.

   Pharmaceuticals     515          3,134  

Sumitomo Realty & Development Co. Ltd.

   Real Estate Management & Development     1,350          30,248  

Sumitomo Rubber Industries Ltd.

   Automobile Components     650          5,841  

Sundrug Co. Ltd.

   Consumer Staples Distribution & Retail     225          6,145  

Suntory Beverage & Food Ltd.

   Beverages     440          16,315  

Suzuken Co. Ltd.

   Health Care Providers & Services     265          6,660  

Suzuki Motor Corp.

   Automobiles     1,520          54,866  

Sysmex Corp.

   Health Care Equipment & Supplies     643          41,757  

T&D Holdings, Inc.

   Insurance     1,700          20,961  

Taiheiyo Cement Corp.

   Construction Materials     400          7,475  

Taisei Corp.

   Construction & Engineering     590          18,154  

Taisho Pharmaceutical Holdings Co. Ltd.

   Pharmaceuticals     150          6,221  

Taiyo Yuden Co. Ltd.

   Electronic Equipment, Instruments & Components     426          14,212  

Takara Bio, Inc.

   Biotechnology     170          2,214  

Takara Holdings, Inc.

   Beverages     600          4,607  

Takashimaya Co. Ltd.

   Broadline Retail     500          7,262  

Takeda Pharmaceutical Co. Ltd.

   Pharmaceuticals     5,179          169,274  

TBS Holdings, Inc.

   Media     110          1,575  

TDK Corp.

   Electronic Equipment, Instruments & Components     1,200          42,603  

TechnoPro Holdings, Inc.

   Professional Services     355          9,723  

Teijin Ltd.

   Chemicals     650          6,818  

Terumo Corp.

   Health Care Equipment & Supplies     2,215          59,482  

THK Co. Ltd.

   Machinery     390          8,952  

TIS, Inc.

   IT Services     750          19,667  

Tobu Railway Co. Ltd.

   Ground Transportation     670          15,958  

 

           
franklintempleton.com  

Annual Report

             271


FRANKLIN TEMPLETON ETF TRUST

SCHEDULE OF INVESTMENTS

 

Franklin FTSE Japan Hedged ETF (continued)

 

      Industry       Shares                Value  

Common Stocks (continued)

         

Japan (continued)

         

Toda Corp.

   Construction & Engineering     500        $ 2,596  

Toho Co. Ltd.

   Entertainment     375          14,285  

Toho Gas Co. Ltd.

   Gas Utilities     316          5,848  

aTohoku Electric Power Co., Inc.

   Electric Utilities     1,500          7,427  

Tokai Carbon Co. Ltd.

   Chemicals     603          5,709  

Tokio Marine Holdings, Inc.

   Insurance     6,400          122,480  

Tokyo Century Corp.

   Financial Services     220          7,282  

aTokyo Electric Power Co. Holdings, Inc.

   Electric Utilities     5,500          19,547  

Tokyo Electron Ltd.

   Semiconductors & Semiconductor Equipment     1,520          183,190  

Tokyo Gas Co. Ltd.

   Gas Utilities     1,400          26,256  

Tokyo Ohka Kogyo Co. Ltd.

   Chemicals     135          7,800  

Tokyo Tatemono Co. Ltd.

   Real Estate Management & Development     670          8,130  

Tokyu Corp.

   Ground Transportation     2,000          26,478  

Tokyu Fudosan Holdings Corp.

   Real Estate Management & Development     2,000          9,542  

TOPPAN, Inc.

   Commercial Services & Supplies     900          18,022  

Toray Industries, Inc.

   Chemicals     5,500          31,259  

Toshiba Corp.

   Industrial Conglomerates     1,400          46,758  

Toshiba TEC Corp.

   Technology Hardware, Storage & Peripherals     90          2,644  

Tosoh Corp.

   Chemicals     1,000          13,502  

TOTO Ltd.

   Building Products     500          16,605  

Toyo Seikan Group Holdings Ltd.

   Containers & Packaging     500          6,860  

Toyo Suisan Kaisha Ltd.

   Food Products     271          11,301  

Toyo Tire Corp.

   Automobile Components     350          4,063  

Toyoda Gosei Co. Ltd.

   Automobile Components     265          4,540  

Toyota Boshoku Corp.

   Automobile Components     200          3,211  

Toyota Industries Corp.

   Automobile Components     540          29,822  

Toyota Motor Corp.

   Automobiles     41,000          579,157  

Toyota Tsusho Corp.

   Trading Companies & Distributors     750          31,670  

aTrend Micro, Inc.

   Software     405          19,689  

TS Tech Co. Ltd.

   Automobile Components     350          4,415  

Tsumura & Co.

   Pharmaceuticals     215          4,249  

Tsuruha Holdings, Inc.

   Consumer Staples Distribution & Retail     110          7,315  

UBE Corp.

   Chemicals     350          5,404  

Ulvac, Inc.

   Semiconductors & Semiconductor Equipment     135          5,833  

Unicharm Corp.

   Household Products     1,300          53,147  

United Urban Investment Corp.

   Diversified REITs     10          10,745  

Ushio, Inc.

   Electrical Equipment     390          4,879  

USS Co. Ltd.

   Specialty Retail     690          11,898  

Welcia Holdings Co. Ltd.

   Consumer Staples Distribution & Retail     355          7,559  

West Japan Railway Co.

   Ground Transportation     765          31,367  

Workman Co. Ltd.

   Specialty Retail     150          6,312  

Yakult Honsha Co. Ltd.

   Food Products     400          28,943  

aYamada Holdings Co. Ltd.

   Specialty Retail     2,000          6,853  

Yamaguchi Financial Group, Inc.

   Banks     740          4,515  

Yamaha Corp.

   Leisure Products     500          19,122  

Yamaha Motor Co. Ltd.

   Automobiles     1,025          26,647  

Yamato Holdings Co. Ltd.

   Air Freight & Logistics     1,100          18,753  

Yamato Kogyo Co. Ltd.

   Metals & Mining     100          4,012  

Yamazaki Baking Co. Ltd.

   Food Products     435          5,243  

Yaoko Co. Ltd.

   Consumer Staples Distribution & Retail     85          4,407  

Yaskawa Electric Corp.

   Machinery     930          40,319  

Yokogawa Electric Corp.

   Electronic Equipment, Instruments & Components     815          13,166  

Yokohama Rubber Co. Ltd.

   Automobile Components     465          9,772  

Z Holdings Corp.

   Interactive Media & Services     9,000          25,210  

Zenkoku Hosho Co. Ltd.

   Financial Services     175          6,568  

Zensho Holdings Co. Ltd.

   Hotels, Restaurants & Leisure     340          10,027  

Zeon Corp.

   Chemicals     500          5,256  

 

           
272             

Annual Report

  franklintempleton.com


FRANKLIN TEMPLETON ETF TRUST

SCHEDULE OF INVESTMENTS

 

Franklin FTSE Japan Hedged ETF (continued)

 

      Industry       Shares                Value  

Common Stocks (continued)

         

Japan (continued)

         

ZOZO, Inc.

   Internet & Direct Marketing Retail     360        $ 8,155  
         

 

 

 

Total Investments before Short-Term Investments (Cost $13,750,298)

            13,036,206  
         

 

 

 

Short-Term Investments 0.0%

         

Money Market Funds 0.0%

         

United States 0.0%

         

b,c Institutional Fiduciary Trust - Money Market Portfolio, 4.47%

   Money Market Funds     721          721  
         

 

 

 

Total Short-Term Investments
(Cost $721)

            721  
         

 

 

 

Total Investments (Cost $13,751,019) 98.1%

            13,036,927  

Other Assets, less Liabilities 1.9%

            247,567  
         

 

 

 

Net Assets 100.0%

          $ 13,284,494  
         

 

 

 

Rounds to less than 0.1% of net assets.

aNon-income producing.

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

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

 

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

Forward Exchange Contracts

 

Currency    Counterpartya      Type      Quantity     

Contract

Amount

    

Settlement

Date

    

Unrealized

Appreciation

    

Unrealized

Depreciation

 

 

 
OTC Forward Exchange Contracts                                                 

Japanese Yen

     UBSW        Buy        890,914,000      $ 6,694,137        4/04/23        $—        $         (65

Japanese Yen

     HSBK        Buy        445,457,000        3,347,086        4/04/23               (50

Japanese Yen

     BOFA        Buy        445,457,000        3,347,086        4/04/23               (50

Japanese Yen

     UBSW        Sell        890,914,000        6,570,681        4/04/23               (123,391

Japanese Yen

     BOFA        Sell        445,457,000        3,285,323        4/04/23               (61,712

Japanese Yen

     HSBK        Sell        445,457,000        3,285,336        4/04/23               (61,700

Japanese Yen

     UBSW        Sell        885,309,000        6,678,684        5/02/23               (133

Japanese Yen

     BOFA        Sell        442,654,000        3,339,323        5/02/23               (82

Japanese Yen

     HSBK        Sell        442,654,000        3,339,336        5/02/23               (69
                 

 

 

 

Total Forward Exchange Contracts

 

                 $  -        $(247,252
                 

 

 

 

Net unrealized appreciation (depreciation)

 

                 $(247,252
                 

 

 

 

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

 

           
franklintempleton.com  

Annual Report

             273


FRANKLIN TEMPLETON ETF TRUST

SCHEDULE OF INVESTMENTS

 

Franklin FTSE Japan Hedged ETF (continued)

 

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

Futures Contracts

 

Description      Type      

Number of

Contracts

 

 

   

Notional

Amount

 

   

Expiration

Date

 

 

   

Value/Unrealized

Appreciation

(Depreciation)

 

 

 

 

 
Index Contracts                               

Nikkei 225 Mini

       8       $168,548       6/08/23       $2,278  

*As of year end.

 

 

 

See Note 7 regarding other derivative information.

See Abbreviations on page 355.

 

           
274             

Annual Report    |   The accompanying notes are an integral part of these financial statements.

  franklintempleton.com


FRANKLIN TEMPLETON ETF TRUST

 

Financial Highlights

 

Franklin FTSE Latin America ETF

 

    Year Ended March 31,  
     2023      2022      2021      2020      2019a  
Per share operating performance
(for a share outstanding throughout the year)
             

Net asset value, beginning of year

    $25.25        $22.40        $15.20        $26.41        $26.17  
Income from investment operationsb:              

Net investment incomec

    1.66        1.54        0.57        0.77        0.38  

Net realized and unrealized gains (losses)

    (4.62      2.83        7.13        (11.08      (0.02

Total from investment operations

    (2.96      4.37        7.70        (10.31      0.36  

Less distributions from net investment income

    (1.87      (1.52      (0.50      (0.90      (0.12

Net asset value, end of year

    $20.42        $25.25        $22.40        $15.20        $26.41  

Total returnd

          (11.05)%        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

    8.09%        6.75%        2.86%        2.97%        3.08%  
Supplemental data              

Net assets, end of year (000’s)

    $67,372        $7,575        $4,480        $1,520        $2,641  

Portfolio turnover ratef

    10.49%g        18.50%g        10.21%g        12.74%g        4.08%  

 

 

aFor the period October 9, 2018 (commencement of operations) to March 31, 2019.

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

cBased on average daily shares outstanding.

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

eRatios are annualized for periods less than one year.

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

 

 

 

 

 

 

gPortfolio turnover rate excluding cash creations was as follows:     10.49%        18.50%        10.21%        12.74%         

 

           
franklintempleton.com  

The accompanying notes are an integral part of these financial statements.    |   Annual Report

             275


FRANKLIN TEMPLETON ETF TRUST

 

Schedule of Investments, March 31, 2023

 

Franklin FTSE Latin America ETF

 

      Industry       Shares                Value  

Common Stocks 82.3%

         

Brazil 43.0%

         

Ambev SA

   Beverages     485,100        $ 1,371,034  

Atacadao SA

   Consumer Staples Distribution & Retail     59,400          145,154  

Auren Energia SA

   Independent Power Producers & Energy Traders     39,600          114,577  

B3 SA - Brasil Bolsa Balcao

   Capital Markets     676,500          1,380,953  

Banco Bradesco SA

   Banks     168,300          393,345  

Banco BTG Pactual S.A

   Capital Markets     128,700          498,783  

Banco do Brasil SA

   Banks     95,700          738,194  

Banco Santander Brasil SA

   Banks     42,900          226,758  

BB Seguridade Participacoes SA

   Insurance     75,900          486,664  

Bradespar SA

   Metals & Mining     3,300          15,978  

aBRF SA

   Food Products     89,100          109,129  

Caixa Seguridade Participacoes SA

   Insurance     49,500          85,913  

CCR SA

   Transportation Infrastructure     125,400          316,576  

Centrais Eletricas Brasileiras SA

   Electric Utilities     146,800          963,563  

Cia de Saneamento Basico do Estado de Sao Paulo SABESP

   Water Utilities     37,900          378,309  

Cia Energetica de Minas Gerais

   Electric Utilities     36,300          122,569  

Cia Paranaense de Energia

   Electric Utilities     36,300          44,675  

Cia Siderurgica Nacional SA

   Metals & Mining     69,300          211,033  

Cielo SA

   IT Services     128,700          123,109  

Cosan SA

   Oil, Gas & Consumable Fuels     132,000          392,856  

CPFL Energia SA

   Electric Utilities     19,800          123,597  

CSN Mineracao SA

   Metals & Mining     59,400          56,703  

Dexco SA

   Paper & Forest Products     36,300          42,097  

Diagnosticos da America SA

   Health Care Providers & Services     9,900          14,586  

EDP - Energias do Brasil SA

   Electric Utilities     29,700          130,861  

aEmbraer SA

   Aerospace & Defense     82,500          338,282  

Energisa SA

   Electric Utilities     33,000          261,514  

aEneva SA

   Independent Power Producers & Energy Traders     135,300          279,393  

Engie Brasil Energia SA

   Independent Power Producers & Energy Traders     19,800          156,869  

Equatorial Energia SA

   Electric Utilities     105,600          561,506  

a,bGPS Participacoes e Empreendimentos SA

   Commercial Services & Supplies     46,200          110,255  

GRUPO DE MODA SOMA SA

   Textiles, Apparel & Luxury Goods     49,500          79,177  

aGrupo Mateus SA

   Consumer Staples Distribution & Retail     42,900          48,398  

a,bHapvida Participacoes e Investimentos SA

   Health Care Providers & Services     445,500          230,208  

Hypera SA

   Pharmaceuticals     44,400          330,138  

Intelbras SA Industria de Telecomunicacao Eletronica Brasileira

   Communications Equipment     6,600          29,757  

Itau Unibanco Holding SA

   Banks     49,500          205,605  

Klabin SA

   Containers & Packaging     85,800          306,123  

Localiza Rent a Car SA

   Ground Transportation     87,081          917,139  

Lojas Renner SA

   Broadline Retail     105,600          345,110  

M Dias Branco SA

   Food Products     13,200          65,658  

aMagazine Luiza SA

   Broadline Retail     339,900          221,896  

Marfrig Global Foods SA

   Food Products     36,300          47,538  

Multiplan Empreendimentos Imobiliarios SA

   Real Estate Management & Development     29,700          144,334  

Natura & Co. Holding SA

   Personal Products     105,600          274,921  

Neoenergia SA

   Electric Utilities     26,400          78,103  

aPetro Rio SA

   Oil, Gas & Consumable Fuels     74,700          459,522  

Petroleo Brasileiro SA

   Oil, Gas & Consumable Fuels     412,500          2,155,145  

Petroreconcavo SA

   Oil, Gas & Consumable Fuels     23,100          92,623  

Porto Seguro SA

   Insurance     19,800          91,849  

Raia Drogasil SA

   Consumer Staples Distribution & Retail     118,800          572,883  

bRede D’Or Sao Luiz SA

   Health Care Providers & Services     85,800          359,428  

Rumo SA

   Ground Transportation     138,600          515,282  

Sao Martinho SA

   Food Products     16,500          87,931  

Sendas Distribuidora SA

   Consumer Staples Distribution & Retail     132,000          404,572  

 

           
276             

Annual Report

  franklintempleton.com


FRANKLIN TEMPLETON ETF TRUST

SCHEDULE OF INVESTMENTS

 

Franklin FTSE Latin America ETF (continued)

 

      Industry       Shares                Value  

Common Stocks (continued)

         

Brazil (continued)

         

SLC Agricola SA

   Food Products     10,800        $ 97,110  

aSmartfit Escola de Ginastica e Danca SA

   Hotels, Restaurants & Leisure     13,200          34,730  

Suzano SA

   Paper & Forest Products     78,400          643,250  

Telefonica Brasil SA

   Diversified Telecommunication Services     49,500          377,431  

TIM SA

   Wireless Telecommunication Services     89,100          221,070  

TOTVS SA

   Software     49,500          274,921  

Transmissora Alianca de Energia Eletrica SA

   Electric Utilities     23,100          158,685  

Ultrapar Participacoes SA

   Oil, Gas & Consumable Fuels     92,400          254,406  

Usinas Siderurgicas de Minas Gerais SA

   Metals & Mining     19,800          31,124  

Vale SA

   Metals & Mining     432,400          6,847,275  

Vamos Locacao de Caminhoes Maquinas e Equipamentos SA

   Ground Transportation     36,300          95,578  

Vibra Energia SA

   Specialty Retail     125,400          356,395  

WEG SA

   Machinery     165,000          1,319,609  
         

 

 

 
            28,969,759  
         

 

 

 

Chile 4.9%

         

Banco de Chile

   Banks     4,861,560          474,712  

Banco de Credito e Inversiones SA

   Banks     5,973          176,037  

Banco Santander Chile

   Banks     6,898,980          307,597  

CAP SA

   Metals & Mining     8,217          68,689  

Cencosud SA

   Consumer Staples Distribution & Retail     147,411          286,391  

Cencosud Shopping SA

   Real Estate Management & Development     53,922          87,300  

Cia Cervecerias Unidas SA

   Beverages     14,718          113,930  

Cia Sud Americana de Vapores SA

   Marine Transportation     1,944,921          194,440  

Colbun SA

   Independent Power Producers & Energy Traders     806,619          107,126  

Empresas CMPC SA

   Paper & Forest Products     133,320          224,007  

Empresas Copec SA

   Oil, Gas & Consumable Fuels     54,285          385,195  

Enel Americas SA

   Electric Utilities     2,117,313          280,394  

Enel Chile SA

   Electric Utilities     2,768,898          151,857  

Falabella SA

   Broadline Retail     88,341          204,257  

Itau CorpBanca Chile SA

   Banks     36,141,501          89,553  

Plaza SA

   Real Estate Management & Development     33,231          43,886  

Quinenco SA

   Industrial Conglomerates     29,634          115,258  
         

 

 

 
            3,310,629  
         

 

 

 

Colombia 1.0%

         

Bancolombia SA

   Banks     30,624          229,977  

Ecopetrol SA

   Oil, Gas & Consumable Fuels     527,010          277,117  

Interconexion Electrica SA ESP

   Electric Utilities     49,104          159,665  
         

 

 

 
            666,759  
         

 

 

 

Mexico 32.4%

         

Alfa SAB de CV, Class A, A

   Industrial Conglomerates     403,887          255,449  

Alpek SAB de CV

   Chemicals     41,646          46,176  

America Movil SAB de CV

   Wireless Telecommunication Services     3,139,092          3,291,040  

Arca Continental SAB de CV

   Beverages     49,137          445,324  

bBanco del Bajio SA

   Banks     78,969          286,906  

Becle SAB de CV

   Beverages     60,060          155,173  

aCemex SAB de CV

   Construction Materials     1,685,838          923,402  

Coca-Cola Femsa SAB de CV

   Beverages     58,476          468,721  

Concentradora Fibra Danhos SA de CV

   Diversified REITs     26,664          35,427  

El Puerto de Liverpool SAB de CV, Class C1

   Broadline Retail     22,011          138,020  

Fibra Uno Administracion SA de CV

   Diversified REITs     319,869          445,896  

Fomento Economico Mexicano SAB de CV

   Beverages     202,884          1,930,409  

Gruma SAB de CV, Class B

   Food Products     21,714          319,697  

Grupo Aeroportuario del Centro Norte SAB de CV

   Transportation Infrastructure     30,657          341,733  

 

           
franklintempleton.com  

Annual Report

             277


FRANKLIN TEMPLETON ETF TRUST

SCHEDULE OF INVESTMENTS

 

Franklin FTSE Latin America ETF (continued)

 

      Industry       Shares                Value  

Common Stocks (continued)

         

Mexico (continued)

         

Grupo Aeroportuario del Pacifico SAB de CV, Class B

   Transportation Infrastructure     38,214        $ 742,037  

Grupo Aeroportuario del Sureste SAB de CV, Class B

   Transportation Infrastructure     22,242          679,012  

Grupo Bimbo SAB de CV

   Food Products     246,345          1,237,182  

Grupo Carso SAB de CV, A1

   Industrial Conglomerates     50,160          248,800  

Grupo Comercial Chedraui SA de CV

   Consumer Staples Distribution & Retail     51,315          294,146  

Grupo Elektra SAB de CV

   Banks     6,699          379,950  

Grupo Financiero Banorte SAB de CV, Class O

   Banks     321,123          2,701,517  

aGrupo Financiero Inbursa SAB de CV, Class O

   Banks     221,958          476,344  

Grupo Mexico SAB de CV, Class B

   Metals & Mining     351,450          1,660,901  

Grupo Televisa SAB

   Media     267,564          282,590  

Industrias Bachoco SAB de CV

   Food Products     8,283          44,631  

aIndustrias Penoles SAB de CV

   Metals & Mining     13,794          203,060  

Kimberly-Clark de Mexico SAB de CV, Class A

   Household Products     92,697          194,881  

Megacable Holdings SAB de CV

   Media     33,297          84,662  

Operadora De Sites Mexicanos SAB de CV, A-1

   Diversified Telecommunication Services     139,524          137,700  

Orbia Advance Corp. SAB de CV

   Chemicals     108,009          234,370  

Prologis Property Mexico SA de CV

   Diversified REITs     59,994          216,671  

Promotora y Operadora de Infraestructura SAB de CV

   Transportation Infrastructure     24,354          242,717  

Qualitas Controladora SAB de CV

   Insurance     18,777          119,894  

Regional SAB de CV

   Banks     26,367          201,053  

aSitios Latinoamerica SAB de CV

   Construction & Engineering     197,340          81,533  

Wal-Mart de Mexico SAB de CV, Class V

   Consumer Staples Distribution & Retail     573,507          2,287,866  
         

 

 

 
            21,834,890  
         

 

 

 

United States 1.0%

         

GCC SAB de CV

   Construction Materials     18,117          143,333  

JBS SA

   Food Products     151,800          534,417  
         

 

 

 
            677,750  
         

 

 

 

Total Common Stocks
(Cost $49,662,643)

            55,459,787  
         

 

 

 

Preferred Stocks 17.4%

         

Brazil 14.8%

         

aAlpargatas SA, pfd.

   Textiles, Apparel & Luxury Goods     26,400          42,436  

cBanco Bradesco SA, 6.492%, pfd.

   Banks     577,500          1,500,059  

cBradespar SA, 11.708%, pfd.

   Metals & Mining     26,400          139,647  

cBraskem SA, Class A, 8.76%, pfd.

   Chemicals     19,800          75,603  

cCentrais Eletricas Brasileiras SA, Class B, 4.449%,pfd.

   Electric Utilities     29,700          212,517  

cCia Energetica de Minas Gerais, 11.32%, pfd.

   Electric Utilities     141,900          320,169  

cCia Paranaense de Energia, 11.974%, pfd.

   Electric Utilities     148,500          203,262  

cCTEEP-Cia de Transmissao de Energia Eletrica Paulista, 4.167%, pfd.

   Electric Utilities     19,800          84,624  

cGerdau SA, 13.863%, pfd.

   Metals & Mining     121,275          604,910  

c Itau Unibanco Holding SA, 4.349%, pfd.

   Banks     537,900          2,624,653  

cItausa SA, 4.745%, pfd.

   Banks     580,800          941,606  

cMetalurgica Gerdau SA, 10.025%, pfd.

   Metals & Mining     72,600          169,392  

cPetroleo Brasileiro SA, 43.945%, pfd.

   Oil, Gas & Consumable Fuels     623,700          2,884,624  

cUnipar Carbocloro SA, Class B, 19.565%, pfd

   Chemicals     5,340          73,777  

cUsinas Siderurgicas de Minas Gerais SA, Class A, 8.628%, pfd.

   Metals & Mining     52,800          75,916  
         

 

 

 
            9,953,195  
         

 

 

 

 

           
278             

Annual Report

  franklintempleton.com


FRANKLIN TEMPLETON ETF TRUST

SCHEDULE OF INVESTMENTS

 

Franklin FTSE Latin America ETF (continued)

 

      Industry       Shares                Value  

Preferred Stocks (continued)

         

Chile 2.0%

         

cEmbotelladora Andina SA, Class B, 13.254%, pfd.

   Beverages     41,811        $ 108,413  

cSociedad Quimica y Minera de Chile SA, Class B, 0.012%, pfd.

   Chemicals     15,147          1,222,320  
         

 

 

 
            1,330,733  
         

 

 

 

Colombia 0.6%

         

cBancolombia SA, 11.049%, pfd.

   Banks     50,028          313,312  

cGrupo Aval Acciones y Valores SA, 0.75%, pfd.

   Banks     482,361          57,861  

cGrupo de Inversiones Suramericana SA, 6.944%,pfd.

   Financial Services     8,910          21,590  
         

 

 

 
            392,763  
         

 

 

 

Total Preferred Stocks
(Cost $12,040,295)

            11,676,691  
         

 

 

 

Right 0.0%

         

Brazil 0.0%

         

Localiza Rent a Car SA

   Ground Transportation     389          1,007  
         

 

 

 

Total Rights (Cost $0)

            1,007  
         

 

 

 

Total Investments

(Cost $61,702,938) 99.7%

            67,137,485  

Other Assets, less Liabilities 0.3%

            234,747  
         

 

 

 

Net Assets 100.0%

          $ 67,372,232  
         

 

 

 

Rounds to less than 0.1% of net assets.

aNon-income producing.

bSecurity was purchased pursuant to Rule 144A under the Securities Act of 1933 and may be sold in transactions exempt from registration only to qualified institutional buyers or in a public offering registered under the Securities Act of 1933. At March 31, 2023, the value of was $986,797, representing 1.5% of net assets.

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

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

Futures Contracts

 

Description      Type       

Number of

Contracts

 

 

    

Notional

Amount

 

    

Expiration

Date

 

 

    

Value/Unrealized

Appreciation

(Depreciation)

 

 

 

 

 
Equity Contracts               

Bovespa Index

     Long        10        $201,426        4/12/23        $(14,879

*As of year end.

See Note 7 regarding other derivative information.

See Abbreviations on page 355.

 

           
franklintempleton.com  

The accompanying notes are an integral part of these financial statements.    |   Annual Report

             279


FRANKLIN TEMPLETON ETF TRUST

 

Financial Highlights

 

Franklin FTSE Mexico ETF

 

            Year Ended March 31,  
     2023      2022      2021      2020      2019  

Per share operating performance

(for a share outstanding throughout the year)

             

Net asset value, beginning of year

    $27.49        $22.14        $14.35        $22.11        $24.98  

Income from investment operationsa:

             

Net investment incomeb

    0.91        0.66        0.33        0.64        0.51  

Net realized and unrealized gains (losses)

    1.91        5.48        7.78        (7.73      (2.86

Total from investment operations

    2.82        6.14        8.11        (7.09      (2.35

Less distributions from net investment income

    (1.03      (0.79      (0.32      (0.67      (0.52

Net asset value, end of year

        $29.28        $27.49        $22.14        $14.35        $22.11  

Total returnc

    11.15%        28.33%        56.94%        (33.13)%        (9.28)%  
Ratios to average net assetsd              

Total expenses

    0.19%        0.19%        0.19%        0.19%        0.19%  

Net investment income

    3.55%        2.73%        1.80%        2.93%        2.21%  
Supplemental data              

Net assets, end of year (000’s)

    $24,890        $12,372        $5,536        $2,871        $4,422  

Portfolio turnover ratee

    11.16%f        22.39%f        18.32%f        19.32%f        10.31%  

 

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

 

bBased on average daily shares outstanding.

 

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

 

dRatios are annualized for periods less than one year.

 

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

 

 

 

 

 

 

fPortfolio turnover rate excluding cash creations was as follows:     11.16%        22.39%        18.32%        19.32%         

 

 

           
280             

Annual Report    |   The accompanying notes are an integral part of these financial statements.

  franklintempleton.com


FRANKLIN TEMPLETON ETF TRUST

 

Schedule of Investments, March 31, 2023

 

Franklin FTSE Mexico ETF

 

      Industry       Shares                Value  

Common Stocks 100.0%

         

Mexico 99.2%

         

Alfa SAB de CV, Class A, A

   Industrial Conglomerates     573,461        $ 362,701  

Alpek SAB de CV

   Chemicals     59,109          65,538  

America Movil SAB de CV

   Wireless Telecommunication Services     3,016,718          3,162,742  

Arca Continental SAB de CV

   Beverages     69,751          632,147  

aBanco del Bajio SA

   Banks     111,996          406,897  

Becle SAB de CV

   Beverages     85,187          220,092  

bCemex SAB de CV

   Construction Materials     1,804,890          988,611  

Coca-Cola Femsa SAB de CV

   Beverages     83,045          665,657  

Concentradora Fibra Danhos SA de CV

   Diversified REITs     37,961          50,437  

El Puerto de Liverpool SAB de CV, Class C1

   Broadline Retail     31,229          195,821  

Fibra Uno Administracion SA de CV

   Diversified REITs     454,308          633,304  

Fomento Economico Mexicano SAB de CV

   Beverages     206,618          1,965,938  

Gruma SAB de CV, Class B

   Food Products     30,787          453,280  

Grupo Aeroportuario del Centro Norte SAB de CV

   Transportation Infrastructure     43,503          484,927  

Grupo Aeroportuario del Pacifico SAB de CV, Class B

   Transportation Infrastructure     44,472          863,554  

Grupo Aeroportuario del Sureste SAB de CV, Class B

   Transportation Infrastructure     26,588          811,688  

Grupo Bimbo SAB de CV

   Food Products     237,048          1,190,491  

Grupo Carso SAB de CV, A1

   Industrial Conglomerates     71,230          353,310  

Grupo Comercial Chedraui SA de CV

   Consumer Staples Distribution & Retail     72,879          417,754  

Grupo Elektra SAB de CV

   Banks     9,521          540,007  

Grupo Financiero Banorte SAB de CV, Class O

   Banks     314,143          2,642,796  

bGrupo Financiero Inbursa SAB de CV, Class O

   Banks     314,806          675,605  

Grupo Mexico SAB de CV, Class B

   Metals & Mining     365,381          1,726,737  

Grupo Televisa SAB

   Media     379,457          400,767  

Industrias Bachoco SAB de CV

   Food Products     11,730          63,204  

bIndustrias Penoles SAB de CV

   Metals & Mining     19,601          288,544  

Kimberly-Clark de Mexico SAB de CV, Class A

   Household Products     131,461          276,377  

Megacable Holdings SAB de CV

   Media     47,481          120,727  

Operadora De Sites Mexicanos SAB de CV, A-1

   Diversified Telecommunication Services     198,033          195,445  

Orbia Advance Corp. SAB de CV

   Chemicals     153,425          332,919  

Prologis Property Mexico SA de CV

   Diversified REITs     85,085          307,288  

Promotora y Operadora de Infraestructura SAB de CV

   Transportation Infrastructure     34,561          344,442  

Qualitas Controladora SAB de CV

   Insurance     26,639          170,094  

Regional SAB de CV

   Banks     37,383          285,052  

bSitios Latinoamerica SAB de CV

   Construction & Engineering     279,803          115,603  

Wal-Mart de Mexico SAB de CV, Class V

   Consumer Staples Distribution & Retail     569,058          2,270,118  
         

 

 

 
            24,680,614  
         

 

 

 

United States 0.8%

         

GCC SAB de CV

   Construction Materials     25,840          204,433  
         

 

 

 

Total Investments (Cost $21,033,038) 100.0%

            24,885,047  

Other Assets, less Liabilities 0.0%

            4,801  
         

 

 

 

Net Assets 100.0%

          $ 24,889,848  
         

 

 

 

Rounds to less than 0.1% of net assets.

aSecurity was purchased pursuant to Rule 144A under the Securities Act of 1933 and may be sold in transactions exempt from registration only to qualified institutional buyers or in a public offering registered under the Securities Act of 1933. At March 31, 2023, the value of was $406,897, representing 1.6% of net assets.

bNon-income producing.

 

           
franklintempleton.com  

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             281


FRANKLIN TEMPLETON ETF TRUST

 

Financial Highlights

 

Franklin FTSE Saudi Arabia ETF

 

    Year Ended March 31,  
     2023      2022      2021      2020      2019a  
Per share operating performance
(for a share outstanding throughout the year)
             

Net asset value, beginning of year

    $41.30        $30.33        $20.15        $27.89        $24.71  
Income from investment operationsb:              

Net investment incomec

    1.38        0.62        0.52        0.89        0.11  

Net realized and unrealized gains (losses)

    (8.40      11.03        10.23        (7.80      3.07  

Total from investment operations

    (7.02      11.65        10.75        (6.91      3.18  

Less distributions from net investment income

    (0.63      (0.68      (0.57      (0.83       

Net asset value, end of year

    $33.65        $41.30        $30.33        $20.15        $27.89  

Total returnd

    (17.04)%        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

    3.97%        1.77%        2.11%        3.46%        0.93%  
Supplemental data              

Net assets, end of year (000’s)

        $21,874        $4,130        $3,033        $2,015        $2,789  

Portfolio turnover ratef

    5.44%g        15.51%g        16.74%g        32.37%g        12.41%  

 

aFor the period October 9, 2018 (commencement of operations) to March 31, 2019.

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

cBased on average daily shares outstanding.

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

eRatios are annualized for periods less than one year.

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

 

 

 

 

 

 

gPortfolio turnover rate excluding cash creations was as follows:     5.44%        15.51%        16.74%        32.37%         

 

           
282             

Annual Report    |   The accompanying notes are an integral part of these financial statements.

  franklintempleton.com


FRANKLIN TEMPLETON ETF TRUST

 

Schedule of Investments, March 31, 2023

 

Franklin FTSE Saudi Arabia ETF

 

      Industry       Shares                Value  

Common Stocks 99.3%

         

Saudi Arabia 99.3%

         

Abdullah Al Othaim Markets Co.

   Consumer Staples Distribution & Retail     3,718        $ 126,783  

ACWA Power Co.

   Independent Power Producers & Energy Traders     11,245          421,197  

Advanced Petrochemical Co.

   Chemicals     10,764          137,070  

aAl Rajhi Bank

   Banks     134,589          2,635,344  

Alinma Bank

   Banks     82,745          649,183  

Almarai Co. JSC

   Food Products     21,281          319,751  

Arab National Bank

   Banks     56,238          386,536  

Arabian Centres Co. Ltd.

   Real Estate Management & Development     13,533          73,475  

Arabian Internet & Communications Services Co.

   IT Services     2,132          141,312  

aBank AlBilad

   Banks     41,379          438,736  

Bank Al-Jazira

   Banks     33,943          164,393  

Banque Saudi Fransi

   Banks     49,647          478,787  

BinDawood Holding Co.

   Consumer Staples Distribution & Retail     2,470          43,363  

Bupa Arabia for Cooperative Insurance Co.

   Insurance     6,045          279,889  

aCo. for Cooperative Insurance

   Insurance     5,161          144,640  

Dallah Healthcare Co.

   Health Care Providers & Services     3,458          141,869  

aDar Al Arkan Real Estate Development Co.

   Real Estate Management & Development     44,720          190,855  

Dr Sulaiman Al Habib Medical Services Group Co.

   Health Care Providers & Services     7,748          601,478  

Elm Co.

   IT Services     2,158          253,991  

aEmaar Economic City

   Real Estate Management & Development     30,862          66,267  

Etihad Etisalat Co.

   Wireless Telecommunication Services     31,863          350,147  

Jarir Marketing Co.

   Specialty Retail     4,966          215,643  

aMobile Telecommunications Co. Saudi Arabia

   Wireless Telecommunication Services     37,206          128,854  

Mouwasat Medical Services Co.

   Health Care Providers & Services     4,004          250,670  

Nahdi Medical Co.

   Consumer Staples Distribution & Retail     3,289          161,747  

aNational Industrialization Co.

   Chemicals     27,599          89,847  

Qassim Cement Co.

   Construction Materials     3,718          66,660  

aRabigh Refining & Petrochemical Co.

   Oil, Gas & Consumable Fuels     35,178          94,465  

Riyad Bank

   Banks     123,747          979,110  

SABIC Agri-Nutrients Co.

   Chemicals     19,695          668,445  

Sahara International Petrochemical Co.

   Chemicals     30,342          305,950  

aSaudi Airlines Catering Co.

   Commercial Services & Supplies     3,380          77,258  

aSaudi Arabian Mining Co.

   Metals & Mining     61,568          1,049,725  

bSaudi Arabian Oil Co.

   Oil, Gas & Consumable Fuels     199,160          1,713,741  

Saudi Basic Industries Corp.

   Chemicals     64,805          1,558,966  

Saudi British Bank

   Banks     84,448          793,029  

Saudi Cement Co.

   Construction Materials     6,331          94,450  

Saudi Electricity Co.

   Electric Utilities     66,027          410,899  

Saudi Industrial Investment Group

   Chemicals     31,252          207,975  

Saudi Investment Bank

   Banks     41,392          182,607  

aSaudi Kayan Petrochemical Co.

   Chemicals     62,088          200,140  

Saudi National Bank

   Banks     153,335          1,872,928  

aSaudi Research & Media Group

   Media     2,717          142,737  

Saudi Tadawul Group Holding Co.

   Capital Markets     4,043          155,529  

Saudi Telecom Co.

   Diversified Telecommunication Services     131,911          1,407,421  

Saudia Dairy & Foodstuff Co.

   Food Products     1,300          82,218  

Savola Group

   Food Products     22,113          164,653  

aSeera Group Holding

   Hotels, Restaurants & Leisure     12,376          73,391  

Southern Province Cement Co.

   Construction Materials     5,798          77,153  

United Electronics Co.

   Specialty Retail     3,302          68,350  

aYamama Cement Co.

   Construction Materials     8,385          68,801  

Yanbu Cement Co.

   Construction Materials     6,500          60,607  

 

           
franklintempleton.com  

Annual Report

             283


FRANKLIN TEMPLETON ETF TRUST

SCHEDULE OF INVESTMENTS

 

Franklin FTSE Saudi Arabia ETF (continued)

 

      Industry           Shares                    Value  

Common Stocks (continued)

         

Saudi Arabia (continued)

         

Yanbu National Petrochemical Co.

   Chemicals     23,283        $ 261,443  
         

 

 

 

Total Investments (Cost $20,984,820) 99.3%

         21,730,478  

Other Assets, less Liabilities 0.7%

            143,154  
         

 

 

 

Net Assets 100.0%

          $ 21,873,632  
         

 

 

 

 

aNon-income producing.

bSecurity was purchased pursuant to Rule 144A under the Securities Act of 1933 and may be sold in transactions exempt from registration only to qualified institutional buyers or in a public offering registered under the Securities Act of 1933. At March 31, 2023, the value of was $1,713,741, representing 7.8% of net assets.

 

           
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  franklintempleton.com


FRANKLIN TEMPLETON ETF TRUST

 

Financial Highlights

 

Franklin FTSE South Africa ETF

 

    Year Ended March 31,  
     2023      2022      2021      2020      2019a  
Per share operating performance
(for a share outstanding throughout the year)
             

Net asset value, beginning of year

    $29.79        $26.22        $14.81        $26.62        $24.42  
Income from investment operationsb:              

Net investment incomec

    0.94        0.94        1.03        2.65        0.22  

Net realized and unrealized gains (losses)

    (7.21      3.35        11.33        (11.76      2.04  

Total from investment operations

    (6.27      4.29        12.36        (9.11      2.26  

Less distributions from net investment income

    (1.08      (0.72      (0.95      (2.70      (0.06

Net asset value, end of year

    $22.44        $29.79        $26.22        $14.81        $26.62  

Total returnd

        (20.97)%        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

    4.03%        3.56%        4.94%        10.42%        1.75%  
Supplemental data              

Net assets, end of year (000’s)

    $2,244        $5,958        $2,622        $1,481        $2,662  

Portfolio turnover ratef

    7.91%g        13.19%g        11.08%g        21.44%g        7.12%  

 

 

aFor the period October 10, 2018 (commencement of operations) to March 31, 2019.

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

cBased on average daily shares outstanding.

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

eRatios are annualized for periods less than one year.

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

 

 

 

 

 

 

gPortfolio turnover rate excluding cash creations was as follows:     7.91%        13.19%        11.08%        21.44%         

 

           
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             285


FRANKLIN TEMPLETON ETF TRUST

 

Schedule of Investments, March 31, 2023

 

Franklin FTSE South Africa ETF

 

      Industry       Shares                Value  

Common Stocks 99.9%

         

Luxembourg 1.2%

         

Reinet Investments SCA

   Capital Markets     1,278        $ 26,296  
         

 

 

 

Romania 1.1%

         

NEPI Rockcastle NV

   Real Estate Management & Development     4,370          25,445  
         

 

 

 

South Africa 97.6%

         

Absa Group Ltd.

   Banks     7,824          80,160  

African Rainbow Minerals Ltd.

   Metals & Mining     994          12,922  

Anglo American Platinum Ltd.

   Metals & Mining     528          28,390  

AngloGold Ashanti Ltd.

   Metals & Mining     3,942          95,848  

Aspen Pharmacare Holdings Ltd.

   Pharmaceuticals     3,492          36,053  

AVI Ltd.

   Food Products     3,084          12,202  

Bid Corp. Ltd.

   Consumer Staples Distribution & Retail     3,134          70,390  

Bidvest Group Ltd.

   Industrial Conglomerates     3,198          45,678  

Capitec Bank Holdings Ltd.

   Banks     800          76,097  

Clicks Group Ltd.

   Consumer Staples Distribution & Retail     2,298          33,303  

aDis-Chem Pharmacies Ltd.

   Consumer Staples Distribution & Retail     3,484          5,094  

bDiscovery Ltd.

   Insurance     4,950          38,905  

Exxaro Resources Ltd.

   Oil, Gas & Consumable Fuels     2,274          23,909  

FirstRand Ltd.

   Financial Services     46,756          159,117  

Foschini Group Ltd.

   Specialty Retail     3,032          15,542  

Gold Fields Ltd.

   Metals & Mining     8,274          110,522  

Growthpoint Properties Ltd.

   Diversified REITs     31,978          23,539  

Harmony Gold Mining Co. Ltd.

   Metals & Mining     5,048          20,821  

Impala Platinum Holdings Ltd.

   Metals & Mining     7,658          70,712  

Investec Ltd.

   Capital Markets     2,632          14,556  

Kumba Iron Ore Ltd.

   Metals & Mining     508          12,875  

Life Healthcare Group Holdings Ltd.

   Health Care Providers & Services     13,076          14,216  

Momentum Metropolitan Holdings

   Insurance     11,740          11,666  

Mr Price Group Ltd.

   Specialty Retail     2,420          19,668  

MTN Group Ltd.

   Wireless Telecommunication Services     16,962          121,863  

MultiChoice Group

   Media     2,752          19,134  

Naspers Ltd., Class N

   Internet & Direct Marketing Retail     1,812          336,302  

Nedbank Group Ltd.

   Banks     3,952          48,302  

Netcare Ltd.

   Health Care Providers & Services     13,500          11,269  

bNortham Platinum Holdings Ltd.

   Metals & Mining     3,486          28,442  

Old Mutual Ltd.

   Insurance     42,392          28,194  

OUTsurance Group Ltd.

   Insurance     7,934          15,620  

aPepkor Holdings Ltd.

   Specialty Retail     19,460          18,909  

Pick n Pay Stores Ltd.

   Consumer Staples Distribution & Retail     3,250          7,743  

Redefine Properties Ltd.

   Diversified REITs     61,912          12,702  

Remgro Ltd.

   Financial Services     4,790          36,292  

Royal Bafokeng Platinum Ltd.

   Metals & Mining     702          5,672  

Sanlam Ltd.

   Insurance     16,536          52,537  

Santam Ltd.

   Insurance     382          6,136  

Sappi Ltd.

   Paper & Forest Products     5,370          13,865  

Sasol Ltd.

   Chemicals     5,254          71,070  

Shoprite Holdings Ltd.

   Consumer Staples Distribution & Retail     4,572          57,273  

Sibanye Stillwater Ltd.

   Metals & Mining     26,388          54,479  

Standard Bank Group Ltd.

   Banks     12,516          121,904  

Tiger Brands Ltd.

   Food Products     1,486          16,794  

Transaction Capital Ltd.

   Consumer Finance     5,506          3,957  

Vodacom Group Ltd.

   Wireless Telecommunication Services     5,620          38,657  

 

           
286             

Annual Report

  franklintempleton.com


FRANKLIN TEMPLETON ETF TRUST

SCHEDULE OF INVESTMENTS

 

Franklin FTSE South Africa ETF (continued)

 

      Industry       Shares                Value  

Common Stocks (continued)

         

South Africa (continued)

         

Woolworths Holdings Ltd.

   Broadline Retail     8,658        $ 31,197  
         

 

 

 
            2,190,498  
         

 

 

 

Total Investments (Cost $2,702,285) 99.9%

            2,242,239  

Other Assets, less Liabilities 0.1%

            1,388  
         

 

 

 

Net Assets 100.0%

          $ 2,243,627  
         

 

 

 

 

 

aSecurity was purchased pursuant to Rule 144A under the Securities Act of 1933 and may be sold in transactions exempt from registration only to qualified institutional buyers or in a public offering registered under the Securities Act of 1933. At March 31, 2023, the value of was $24,003, representing 1.1% of net assets.

bNon-income producing.

 

           
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The accompanying notes are an integral part of these financial statements.    |   Annual Report

             287


FRANKLIN TEMPLETON ETF TRUST

 

Financial Highlights

 

Franklin FTSE South Korea ETF

 

    Year Ended March 31,  
     2023      2022      2021      2020      2019  
Per share operating performance
(for a share outstanding throughout the year)
             

Net asset value, beginning of year

    $25.57        $31.48        $16.52        $21.19        $25.98  
Income from investment operationsa:              

Net investment incomeb

    0.49        0.55        0.54        0.36        0.40  

Net realized and unrealized gains (losses)

    (4.37      (5.87      14.72        (4.58      (4.81

Total from investment operations

    (3.88      (5.32      15.26        (4.22      (4.41

Less distributions from net investment income

    (0.61      (0.59      (0.30      (0.45      (0.38

Net asset value, end of year

    $21.08        $25.57        $31.48        $16.52        $21.19  

Total returnc

        (15.00)%        (17.15)%        92.55%        (20.24)%        (16.92)%  
Ratios to average net assetsd              

Expenses before waiver and payments by affiliates

    0.09%        0.09%        0.09%        0.09%        0.09%  

Expenses net of waiver and payments by affiliates

    0.09%        0.09%        0.09%        0.09%        0.09%  

Net investment income

    2.36%        1.86%        2.07%        1.78%        1.74%  
Supplemental data              

Net assets, end of year (000’s)

    $293,049        $61,361        $62,966        $11,562        $16,948  

Portfolio turnover ratee

    5.97%f        27.38%f        8.65%f        21.72%f        5.21%  

 

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

bBased on average daily shares outstanding.

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

dRatios are annualized for periods less than one year.

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

 

 

 

 

 

fPortfolio turnover rate excluding cash creations was as follows:     5.97%        10.53%        8.65%        8.02%         

 

           
288             

Annual Report    |   The accompanying notes are an integral part of these financial statements.

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FRANKLIN TEMPLETON ETF TRUST

 

Schedule of Investments, March 31, 2023

 

Franklin FTSE South Korea ETF

 

      Industry       Shares                Value  

Common Stocks 95.4%

         

South Korea 95.4%

         

aAlteogen, Inc., Class A

   Biotechnology     14,178        $ 431,814  

Amorepacific Corp., Class H

   Personal Products     12,232          1,285,354  

AMOREPACIFIC Group, Class A

   Personal Products     11,954          353,519  

BGF retail Co. Ltd.

   Consumer Staples Distribution & Retail     2,641          368,606  

BNK Financial Group, Inc., Class H

   Banks     122,042          610,280  

Celltrion Healthcare Co. Ltd., Class A

   Health Care Providers & Services     41,561          1,921,859  

aCelltrion Pharm, Inc., Class A

   Pharmaceuticals     8,479          539,931  

Celltrion, Inc., Class A

   Biotechnology     46,287          5,326,107  

Cheil Worldwide, Inc., Class A

   Media     29,051          415,508  

aCJ CheilJedang Corp., Class A

   Food Products     3,336          835,377  

CJ Corp., Class A

   Industrial Conglomerates     5,421          434,313  

aCJ ENM Co. Ltd., Class A

   Entertainment     4,309          284,321  

a CJ Logistics Corp., Class A

   Ground Transportation     3,475          213,275  

Coway Co. Ltd.

   Household Durables     23,630          952,932  

aDaewoo Engineering & Construction Co. Ltd., Class A

   Construction & Engineering     74,365          230,204  

aDaewoo Shipbuilding & Marine Engineering Co. Ltd., Class A

   Machinery     20,016          376,689  

DB Insurance Co. Ltd., Class A

   Insurance     18,765          1,079,616  

DGB Financial Group, Inc., Class A

   Banks     64,218          340,365  

DL E&C Co. Ltd., Class A

   Construction & Engineering     12,649          314,318  

DL Holdings Co. Ltd., Class A

   Construction & Engineering     5,004          204,872  

Dongsuh Cos., Inc., Class A

   Consumer Staples Distribution & Retail     12,927          194,920  

Doosan Bobcat, Inc., Class A

   Machinery     10,147          340,611  

aDoosan Enerbility Co. Ltd., Class H

   Electrical Equipment     175,557          2,292,483  

Ecopro BM Co. Ltd.

   Electrical Equipment     16,541          2,852,444  

aE-MART, Inc., Class A

   Consumer Staples Distribution & Retail     8,062          653,952  

F&F Co. Ltd.

   Textiles, Apparel & Luxury Goods     6,672          714,940  

Fila Holdings Corp.

   Textiles, Apparel & Luxury Goods     21,545          604,058  

Green Cross Corp.

   Biotechnology     2,224          208,588  

GS Engineering & Construction Corp.

   Construction & Engineering     26,271          416,712  

aGS Holdings Corp.

   Oil, Gas & Consumable Fuels     21,406          664,287  

GS Retail Co. Ltd.

   Consumer Staples Distribution & Retail     16,263          354,155  

Hana Financial Group, Inc.

   Banks     120,791          3,776,313  

aHanjin Kal Corp.

   Airlines     8,896          313,993  

Hankook Tire & Technology Co. Ltd.

   Automobile Components     30,997          828,587  

aHanmi Pharm Co. Ltd.

   Pharmaceuticals     3,197          628,668  

aHanmi Science Co. Ltd.

   Pharmaceuticals     10,286          307,746  

Hanon Systems

   Automobile Components     67,554          455,601  

Hanwha Aerospace Co. Ltd.

   Aerospace & Defense     14,456          1,101,536  

Hanwha Corp.

   Industrial Conglomerates     17,653          355,948  

Hanwha Corp.

   Industrial Conglomerates     9,730          104,561  

Hanwha Galleria Co. Ltd.

   Broadline Retail     48,672          79,634  

aHanwha Life Insurance Co. Ltd.

   Insurance     115,648          213,201  

a Hanwha Solutions Corp.

   Chemicals     43,156          1,780,141  

HD Hyundai Co. Ltd.

   Machinery     21,128          942,917  

aHite Jinro Co. Ltd.

   Beverages     12,649          217,642  

HL Mando Co. Ltd.

   Automobile Components     13,761          484,650  

aHLB, Inc.

   Leisure Products     42,256          1,127,930  

aHMM Co. Ltd.

   Marine Transportation     122,459          1,914,230  

Hotel Shilla Co. Ltd.

   Specialty Retail     12,927          809,272  

aHYBE Co. Ltd.

   Entertainment     7,645          1,109,299  

Hyundai Department Store Co. Ltd.

   Broadline Retail     6,116          256,977  

aHyundai Doosan Infracore Co. Ltd.

   Machinery     56,851          328,831  

Hyundai Engineering & Construction Co. Ltd.

   Construction & Engineering     30,580          856,198  

Hyundai Glovis Co. Ltd.

   Air Freight & Logistics     7,784          947,701  

aHyundai Heavy Industries Co. Ltd.

   Machinery     7,923          608,595  

 

           
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Annual Report

             289


FRANKLIN TEMPLETON ETF TRUST

SCHEDULE OF INVESTMENTS

 

Franklin FTSE South Korea ETF (continued)

 

      Industry       Shares                Value  

Common Stocks (continued)

         

South Korea (continued)

         

Hyundai Marine & Fire Insurance Co. Ltd.

   Insurance     25,020        $ 649,596  

aHyundai Mipo Dockyard Co. Ltd.

   Machinery     8,479          457,215  

Hyundai Mobis Co. Ltd.

   Automobile Components     26,271          4,358,825  

Hyundai Motor Co.

   Automobiles     58,380          8,273,695  

Hyundai Steel Co.

   Metals & Mining     31,553          841,026  

Hyundai Wia Corp.

   Automobile Components     6,533          281,022  

aIndustrial Bank of Korea

   Banks     106,613          827,124  

aKakao Corp.

   Interactive Media & Services     126,907          5,956,153  

aKakao Games Corp.

   Entertainment     12,510          400,712  

a KakaoBank Corp.

   Banks     71,168          1,320,204  

aKakaopay Corp.

   IT Services     8,757          373,998  

aKangwon Land, Inc.

   Hotels, Restaurants & Leisure     44,758          684,168  

KB Financial Group, Inc.

   Banks     162,908          5,962,719  

KCC Corp.

   Building Products     1,807          308,141  

aKEPCO Plant Service & Engineering Co. Ltd.

   Commercial Services & Supplies     8,757          254,265  

Kia Corp.

   Automobiles     108,003          6,719,855  

aKorea Aerospace Industries Ltd.

   Aerospace & Defense     29,468          1,072,922  

aKorea Electric Power Corp.

   Electric Utilities     107,169          1,482,593  

aKorea Gas Corp.

   Gas Utilities     10,703          222,799  

aKorea Investment Holdings Co. Ltd.

   Capital Markets     15,985          675,327  

a Korea Shipbuilding & Offshore Engineering Co. Ltd.

   Machinery     18,070          1,075,719  

Korea Zinc Co. Ltd.

   Metals & Mining     4,031          1,712,289  

aKorean Air Lines Co. Ltd.

   Airlines     77,423          1,379,739  

aKrafton, Inc.

   Entertainment     12,232          1,724,140  

aKT&G Corp.

   Tobacco     45,036          2,902,424  

aKumho Petrochemical Co. Ltd.

   Chemicals     7,089          782,494  

L&F Co. Ltd.

   Electronic Equipment, Instruments & Components     9,730          2,343,093  

LG Chem Ltd.

   Chemicals     19,460          10,642,947  

LG Corp.

   Industrial Conglomerates     36,696          2,333,932  

aLG Display Co. Ltd.

   Electronic Equipment, Instruments & Components     93,825          1,184,119  

LG Electronics, Inc.

   Household Durables     45,175          4,000,981  

aLG Energy Solution Ltd.

   Electrical Equipment     14,595          6,547,206  

LG H&H Co. Ltd.

   Personal Products     3,753          1,729,692  

LG Innotek Co. Ltd.

   Electronic Equipment, Instruments & Components     5,977          1,241,908  

LG Uplus Corp.

   Diversified Telecommunication Services     88,821          738,896  

Lotte Chemical Corp.

   Chemicals     7,645          1,120,456  

Lotte Chilsung Beverage Co. Ltd.

   Beverages     1,251          158,459  

Lotte Corp.

   Industrial Conglomerates     10,981          242,504  

aLotte Energy Materials Corp.

   Electronic Equipment, Instruments & Components     9,035          477,481  

LOTTE Fine Chemical Co. Ltd.

   Chemicals     7,367          330,478  

Lotte Shopping Co. Ltd.

   Broadline Retail     4,726          297,315  

LS Corp.

   Electrical Equipment     7,228          441,947  

Meritz Financial Group, Inc.

   Financial Services     54,905          1,627,939  

Mirae Asset Securities Co. Ltd.

   Capital Markets     110,088          546,275  

Mirae Asset Securities Co. Ltd.

   Capital Markets     56,712          154,647  

NAVER Corp.

   Interactive Media & Services     60,465          9,381,979  

NCSoft Corp.

   Entertainment     6,672          1,903,943  

a,bNetmarble Corp.

   Software     7,089          361,025  

aNH Investment & Securities Co. Ltd.

   Capital Markets     56,851          384,291  

aNHN Corp.

   Software     6,672          134,788  

NongShim Co. Ltd.

   Food Products     1,390          404,663  

aOCI Co. Ltd.

   Chemicals     7,645          600,748  

Orion Corp.

   Food Products     9,035          948,021  

aOttogi Corp.

   Food Products     556          191,334  

Pan Ocean Co. Ltd.

   Marine Transportation     78,535          350,492  

aParadise Co. Ltd.

   Hotels, Restaurants & Leisure     19,182          247,391  

 

           
290             

Annual Report

  franklintempleton.com


FRANKLIN TEMPLETON ETF TRUST

SCHEDULE OF INVESTMENTS

 

Franklin FTSE South Korea ETF (continued)

 

      Industry       Shares                Value  

Common Stocks (continued)

         

South Korea (continued)

         

aPearl Abyss Corp.

   Entertainment     12,927        $ 459,249  

POSCO Chemical Co. Ltd.

   Construction Materials     11,398          2,385,801  

POSCO Holdings, Inc.

   Metals & Mining     31,414          8,879,942  

Posco International Corp.

   Trading Companies & Distributors     19,043          326,196  

S-1 Corp.

   Commercial Services & Supplies     7,923          336,553  

a,bSamsung Biologics Co. Ltd.

   Life Sciences Tools & Services     7,724          4,675,279  

Samsung C&T Corp.

   Industrial Conglomerates     35,167          2,922,817  

Samsung Card Co. Ltd.

   Consumer Finance     12,510          292,126  

Samsung Electro-Mechanics Co. Ltd.

   Electronic Equipment, Instruments & Components     23,352          2,739,064  

Samsung Electronics Co. Ltd.

   Technology Hardware, Storage & Peripherals     1,063,767          52,295,647  

aSamsung Engineering Co. Ltd.

   Construction & Engineering     66,164          1,611,091  

Samsung Fire & Marine Insurance Co. Ltd.

   Insurance     13,761          2,177,490  

aSamsung Heavy Industries Co. Ltd.

   Machinery     258,679          1,027,285  

Samsung Life Insurance Co. Ltd.

   Insurance     31,136          1,501,971  

Samsung SDI Co. Ltd.

   Electronic Equipment, Instruments & Components     22,101          12,477,809  

Samsung SDS Co. Ltd.

   IT Services     15,290          1,362,400  

Samsung Securities Co. Ltd.

   Capital Markets     26,410          643,083  

SD Biosensor, Inc.

   Health Care Equipment & Supplies     13,900          225,287  

aSeegene, Inc.

   Biotechnology     11,537          219,778  

a Shin Poong Pharmaceutical Co. Ltd.

   Pharmaceuticals     14,178          196,141  

Shinhan Financial Group Co. Ltd.

   Banks     208,917          5,672,862  

aShinsegae, Inc.

   Broadline Retail     2,919          483,193  

aSK Biopharmaceuticals Co. Ltd.

   Pharmaceuticals     10,286          500,137  

aSK Bioscience Co. Ltd.

   Biotechnology     8,340          461,892  

SK Chemicals Co. Ltd.

   Chemicals     4,170          238,633  

SK Hynix, Inc.

   Semiconductors & Semiconductor Equipment     226,848          15,438,593  

a,bSK IE Technology Co. Ltd.

   Chemicals     10,703          585,362  

aSK Innovation Co. Ltd.

   Oil, Gas & Consumable Fuels     21,958          3,024,211  

SK Networks Co. Ltd.

   Trading Companies & Distributors     56,156          194,326  

aSK Square Co. Ltd.

   Semiconductors & Semiconductor Equipment     41,422          1,264,757  

SK Telecom Co. Ltd.

   Wireless Telecommunication Services     5,282          195,968  

SK, Inc.

   Industrial Conglomerates     15,151          2,007,564  

SKC Co. Ltd.

   Chemicals     8,062          707,829  

S-Oil Corp.

   Oil, Gas & Consumable Fuels     17,236          1,060,494  

Solus Advanced Materials Co. Ltd.

   Electronic Equipment, Instruments & Components     5,560          200,730  

SSANGYONG C&E Co. Ltd.

   Construction Materials     46,426          220,032  

aWemade Co. Ltd.

   Entertainment     7,089          273,355  

Woori Financial Group, Inc.

   Banks     265,351          2,325,656  

Yuhan Corp.

   Pharmaceuticals     22,240          864,419  
         

 

 

 

Total Common Stocks
(Cost $281,073,100)

            279,609,717  
         

 

 

 

Preferred Stocks 3.8%

         
    South Korea 3.8%                    

c Amorepacific Corp., 1.546%, pfd.

   Personal Products     4,448          151,359  

a,cCJ CheilJedang Corp., 1.780%,pfd.

   Food Products     556          66,412  

cHyundai Motor Co., 7.411%, pfd.

   Automobiles     14,595          1,074,011  

c Hyundai Motor Co., 7.468%, pfd.

   Automobiles     9,313          675,306  

cLG Chem Ltd., 3.237%, pfd.

   Chemicals     3,197          762,506  

cLG Electronics, Inc., 1.54%, pfd.

   Household Durables     7,228          270,387  

cLG H&H Co. Ltd., 1.636%, pfd.

   Personal Products     834          158,555  

cSamsung Electronics Co. Ltd., 2.681%, pfd.

   Technology Hardware, Storage & Peripherals     185,148          7,665,612  

cSamsung Fire & Marine Insurance Co. Ltd., 8.666%, pfd.

   Insurance     1,112          136,069  

 

           
franklintempleton.com  

Annual Report

             291


FRANKLIN TEMPLETON ETF TRUST

SCHEDULE OF INVESTMENTS

 

Franklin FTSE South Korea ETF (continued)

 

      Industry       Shares                Value  

Preferred Stocks (continued)

         

South Korea (continued)

         

cSamsung SDI Co. Ltd., 0.325%, pfd.

   Electronic Equipment, Instruments & Components     556        $ 142,006  
         

 

 

 

Total Preferred Stocks
(Cost $11,355,796)

            11,102,223  
         

 

 

 

Total Investments
(Cost $292,428,896) 99.2%

            290,711,940  

Other Assets, less Liabilities 0.8%

            2,336,853  
         

 

 

 

Net Assets 100.0%

          $ 293,048,793  
         

 

 

 

aNon-income producing.

bSecurity was purchased pursuant to Rule 144A under the Securities Act of 1933 and may be sold in transactions exempt from registration only to qualified institutional buyers or in a public offering registered under the Securities Act of 1933. At March 31, 2023, the value of was $5,621,666, representing 1.9% of net assets.

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

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

Futures Contracts

 

Description    Type     

Number of

Contracts

    

Notional

Amount*

    

Expiration

Date

    

Value/Unrealized

Appreciation

(Depreciation)

 
Index Contracts               

Kospi 200 Mini

     Long        35        $2,175,654        6/08/23        $25,029  

*As of year end.

 

 

See Note 7 regarding other derivative information.

See Abbreviations on page 355.

 

           
292             

Annual Report    |   The accompanying notes are an integral part of these financial statements.

  franklintempleton.com


FRANKLIN TEMPLETON ETF TRUST

 

Financial Highlights

 

Franklin FTSE Switzerland ETF

 

    Year Ended March 31,  
     2023      2022      2021      2020      2019

Per share operating performance

(for a share outstanding throughout the year)

             

Net asset value, beginning of year

    $34.00        $30.36        $24.44        $23.86        $23.11  
Income from investment operationsa:              

Net investment incomeb

    0.66        0.70        0.88        1.06        0.53  

Net realized and unrealized gains (losses)

    (2.86      3.62        5.74        (0.16      0.83  

Total from investment operations

    (2.20      4.32        6.62        0.90        1.36  

Less distributions from net investment income

    (0.59      (0.68      (0.70      (0.32      (0.61

Net asset value, end of year

    $31.21        $34.00        $30.36        $24.44        $23.86  

Total returnc

    (6.23)%        14.22%        27.54%        3.70%        6.13%  
Ratios to average net assetsd              

Total expenses

    0.09%        0.09%        0.09%        0.09%        0.09%  

Net investment income

    2.24%        2.07%        3.13%        4.12%        2.35%  
Supplemental data              

Net assets, end of year (000’s)

        $49,941        $47,593        $48,570        $34,213        $2,386  

Portfolio turnover ratee

    7.89%f        13.99%f        12.59%f        16.25%f        14.06%  

 

 

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

 

bBased on average daily shares outstanding.

 

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

 

dRatios are annualized for periods less than one year.

 

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

 

 

 

 

 

 

fPortfolio turnover rate excluding cash creations was as follows:     7.89%        13.99%        12.59%        16.25%         

 

           
franklintempleton.com  

The accompanying notes are an integral part of these financial statements.    |   Annual Report

             293


FRANKLIN TEMPLETON ETF TRUST

 

Schedule of Investments, March 31, 2023

 

Franklin FTSE Switzerland ETF

 

      Industry       Shares                Value  

Common Stocks 98.2%

         

Switzerland 95.6%

         

ABB Ltd.

   Electrical Equipment     49,776        $ 1,709,237  

Adecco Group AG

   Professional Services     6,016          218,303  

Alcon, Inc.

   Health Care Equipment & Supplies     17,456          1,236,279  

Bachem Holding AG, Class B

   Life Sciences Tools & Services     1,168          116,857  

Baloise Holding AG

   Insurance     1,712          266,859  

Banque Cantonale Vaudoise

   Banks     1,056          99,757  

Barry Callebaut AG

   Food Products     135          286,536  

Belimo Holding AG

   Building Products     352          169,922  

BKW AG

   Electric Utilities     688          108,297  

Chocoladefabriken Lindt & Spruengli AG

   Food Products     78          922,117  

Cie Financiere Richemont SA, Class A

   Textiles, Apparel & Luxury Goods     16,304          2,603,857  

Clariant AG

   Chemicals     8,576          141,846  

Credit Suisse Group AG

   Capital Markets     136,864          123,238  

DKSH Holding AG

   Professional Services     1,360          109,643  

Emmi AG

   Food Products     80          80,390  

EMS-Chemie Holding AG

   Chemicals     269          222,020  

aFlughafen Zurich AG

   Transportation Infrastructure     720          132,012  

Geberit AG

   Building Products     1,292          720,143  

Georg Fischer AG

   Machinery     3,106          241,055  

Givaudan SA

   Chemicals     301          979,556  

Helvetia Holding AG

   Insurance     1,328          185,197  

Julius Baer Group Ltd.

   Capital Markets     8,016          546,831  

Kuehne & Nagel International AG

   Marine Transportation     1,872          557,164  

Logitech International SA

   Technology Hardware, Storage & Peripherals     5,392          313,409  

Lonza Group AG

   Life Sciences Tools & Services     2,542          1,523,169  

Nestle SA

   Food Products     79,088          9,649,333  

Novartis AG

   Pharmaceuticals     60,000          5,501,177  

Partners Group Holding AG

   Capital Markets     841          788,757  

PSP Swiss Property AG

   Real Estate Management & Development     1,712          194,897  

Roche Holding AG

   Pharmaceuticals     20,672          5,904,831  

Roche Holding AG

   Pharmaceuticals     864          260,084  

Schindler Holding AG, PC

   Machinery     1,552          343,341  

Schindler Holding AG

   Machinery     720          152,110  

SGS SA

   Professional Services     223          490,890  

SIG Group AG

   Containers & Packaging     12,496          321,718  

Sika AG

   Chemicals     5,072          1,418,528  

Sonova Holding AG

   Health Care Equipment & Supplies     1,920          564,514  

Straumann Holding AG

   Health Care Equipment & Supplies     4,042          603,280  

Swatch Group AG

   Textiles, Apparel & Luxury Goods     1,088          373,246  

Swatch Group AG

   Textiles, Apparel & Luxury Goods     1,648          104,268  

Swiss Life Holding AG

   Insurance     1,152          710,203  

Swiss Prime Site AG

   Real Estate Management & Development     2,880          239,750  

Swiss Re AG

   Insurance     10,944          1,124,169  

Swisscom AG

   Diversified Telecommunication Services     960          612,853  

Tecan Group AG

   Life Sciences Tools & Services     480          209,749  

Temenos AG

   Software     2,288          158,486  

UBS Group AG

   Capital Markets     90,096          1,902,416  

bVAT Group AG

   Machinery     976          350,636  

Zurich Insurance Group AG

   Insurance     4,512          2,161,789  
         

 

 

 
            47,754,719  
         

 

 

 

 

           
294             

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FRANKLIN TEMPLETON ETF TRUST

SCHEDULE OF INVESTMENTS

 

Franklin FTSE Switzerland ETF (continued)

 

      Industry       Shares                Value  

Common Stocks (continued)

         

United States 2.6%

         

Holcim AG, Class B

   Construction Materials     20,112        $ 1,296,696  
         

 

 

 

Total Investments (Cost $48,952,282) 98.2%

            49,051,415  

Other Assets, less Liabilities 1.8%

            889,334  
         

 

 

 

Net Assets 100.0%

          $ 49,940,749  
         

 

 

 

aNon-income producing.

bSecurity was purchased pursuant to Rule 144A under the Securities Act of 1933 and may be sold in transactions exempt from registration only to qualified institutional buyers or in a public offering registered under the Securities Act of 1933. At March 31, 2023, the value of was $350,636, representing 0.7% of net assets.

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

Futures Contracts

 

Description      Type       
Number of
Contracts
 
 
    
Notional
Amount
 
   
Expiration
Date
 
 
    

Value/Unrealized
Appreciation
(Depreciation)
 
 
 
Equity Contracts              

Swiss Mid Cap Future Index

        7        $842,559       6/16/23        $38,313  

*As of year end.

See Note 7 regarding other derivative information.

See Abbreviations on page 355.

 

           
franklintempleton.com  

The accompanying notes are an integral part of these financial statements.    |   Annual Report

             295


FRANKLIN TEMPLETON ETF TRUST

 

Financial Highlights

 

Franklin FTSE Taiwan ETF

 

    Year Ended March 31,  
     2023      2022      2021      2020      2019

Per share operating performance

(for a share outstanding throughout the year)

             

Net asset value, beginning of year

    $43.67        $41.12        $23.18        $24.72        $26.34  
Income from investment operationsa:              

Net investment incomeb

    1.25        0.98        0.74        0.89        0.47  

Net realized and unrealized gains (losses)

    (6.84      2.64        17.99        (1.56      (1.85

Total from investment operations

    (5.59      3.62        18.73        (0.67      (1.38

Less distributions from net investment income

    (1.03      (1.07      (0.79      (0.87      (0.24

Net asset value, end of year

    $37.05        $43.67        $41.12        $23.18        $24.72  

Total returnc

    (12.55)%        8.72%        81.35%        (3.29)%        (5.15)%  
Ratios to average net assetsd              

Total expenses

    0.19%        0.19%        0.19%        0.19%        0.19%  

Net investment income

    3.52%        2.20%        2.24%        3.39%        1.96%  
Supplemental data              

Net assets, end of year (000’s)

        $137,094        $43,667        $32,897        $13,906        $14,834  

Portfolio turnover ratee

    11.88%f        17.76%f        10.63%f        12.57%f        8.71%  

 

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

 

bBased on average daily shares outstanding.

 

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

 

dRatios are annualized for periods less than one year.

 

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

 

 

 

 

 

 

fPortfolio turnover rate excluding cash creations was as follows:     5.40%        7.86%        10.63%        12.57%         

 

           
296             

Annual Report    |   The accompanying notes are an integral part of these financial statements.

  franklintempleton.com


FRANKLIN TEMPLETON ETF TRUST

 

Schedule of Investments, March 31, 2023

 

Franklin FTSE Taiwan ETF

 

      Industry       Shares                Value  

Common Stocks 99.8%

         

China 1.4%

         

Airtac International Group, Class A

   Machinery     27,750        $ 1,080,015  

Silergy Corp.

   Semiconductors & Semiconductor Equipment     57,290          902,227  
         

 

 

 
            1,982,242  
         

 

 

 

Taiwan 98.1%

         

Accton Technology Corp.

   Communications Equipment     93,710          981,804  

Acer, Inc., Class H

   Technology Hardware, Storage & Peripherals     489,000          452,101  

Advanced Energy Solution Holding Co. Ltd.

   Electrical Equipment     4,440          104,702  

Advantech Co. Ltd.

   Technology Hardware, Storage & Peripherals     74,000          901,683  

ASE Technology Holding Co. Ltd., Class A

   Semiconductors & Semiconductor Equipment     599,700            2,215,822  

Asia Cement Corp.

   Construction Materials     434,060          617,285  

ASMedia Technology, Inc.

   Semiconductors & Semiconductor Equipment     7,040          264,744  

ASPEED Technology, Inc.

   Semiconductors & Semiconductor Equipment     5,380          465,598  

Asustek Computer, Inc.

   Technology Hardware, Storage & Peripherals     124,460          1,113,896  

AUO Corp., Class H

   Electronic Equipment, Instruments & Components     1,258,000          760,233  

Capital Securities Corp., Class A

   Capital Markets     339,000          133,607  

Catcher Technology Co. Ltd.

   Technology Hardware, Storage & Peripherals     121,460          757,941  

Cathay Financial Holding Co. Ltd., Class A

   Insurance     1,628,000          2,235,008  

Chailease Holding Co. Ltd., Class A

   Financial Services     243,162          1,784,932  

Chang Hwa Commercial Bank Ltd., Class A

   Banks     1,184,033          674,701  

Cheng Shin Rubber Industry Co. Ltd., Class A

   Automobile Components     322,700          387,378  

Chicony Electronics Co. Ltd.

   Technology Hardware, Storage & Peripherals     108,840          340,667  

China Airlines Ltd., Class A

   Airlines     518,000          331,751  

China Development Financial Holding Corp., Class A

   Banks     2,778,000          1,145,050  

China Motor Corp., Class A

   Automobiles     47,020          98,681  

China Steel Corp., Class A

   Metals & Mining     2,183,000          2,215,443  

Chunghwa Telecom Co. Ltd.

   Diversified Telecommunication Services     671,680          2,636,202  

Compal Electronics, Inc., Class H

   Technology Hardware, Storage & Peripherals     740,000          613,679  

CTBC Financial Holding Co. Ltd., Class A

   Banks     3,219,000          2,310,047  

Delta Electronics, Inc., Class A

   Electronic Equipment, Instruments & Components     382,090          3,777,292  

E Ink Holdings, Inc.

   Electronic Equipment, Instruments & Components     155,700          943,481  

E.Sun Financial Holding Co. Ltd., Class A

   Banks     2,405,000          1,998,407  

Eclat Textile Co. Ltd., Class A

   Textiles, Apparel & Luxury Goods     35,260          573,239  

eMemory Technology, Inc.

   Semiconductors & Semiconductor Equipment     12,247          748,154  

ENNOSTAR, Inc., Class H

   Semiconductors & Semiconductor Equipment     124,340          217,256  

Eternal Materials Co. Ltd., Class H

   Chemicals     168,985          173,994  

Eva Airways Corp., Class H

   Airlines     447,000          394,185  

Evergreen Marine Corp. Taiwan Ltd.

   Marine Transportation     177,600          924,529  

Far Eastern International Bank

   Banks     413,091          150,597  

Far Eastern New Century Corp.

   Industrial Conglomerates     677,508          696,478  

Far EasTone Telecommunications Co. Ltd.

   Wireless Telecommunication Services     283,000          698,961  

Feng TAY Enterprise Co. Ltd.

   Textiles, Apparel & Luxury Goods     78,100          495,059  

First Financial Holding Co. Ltd.

   Banks     1,850,000          1,607,111  

Formosa Chemicals & Fibre Corp.

   Chemicals     603,400          1,369,404  

Formosa Petrochemical Corp.

   Oil, Gas & Consumable Fuels     243,880          680,838  

Formosa Plastics Corp.

   Chemicals     657,900          1,983,586  

Formosa Sumco Technology Corp.

   Semiconductors & Semiconductor Equipment     10,020          54,629  

Formosa Taffeta Co. Ltd.

   Textiles, Apparel & Luxury Goods     185,000          170,737  

Foxconn Technology Co. Ltd.

   Technology Hardware, Storage & Peripherals     198,720          364,839  

Fubon Financial Holding Co. Ltd.

   Insurance     1,302,749          2,417,450  

Genius Electronic Optical Co. Ltd.

   Electronic Equipment, Instruments & Components     15,170          192,069  

Giant Manufacturing Co. Ltd.

   Leisure Products     53,035          306,566  

Globalwafers Co. Ltd.

   Semiconductors & Semiconductor Equipment     37,370          635,772  

Hiwin Technologies Corp.

   Machinery     50,189          412,919  

Hon Hai Precision Industry Co. Ltd.

   Electronic Equipment, Instruments & Components     2,106,600          7,195,546  

Hotai Motor Co. Ltd.

   Specialty Retail     55,550          1,171,298  

 

           
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FRANKLIN TEMPLETON ETF TRUST

SCHEDULE OF INVESTMENTS

 

Fanklin FTSE Taiwan ETF (continued)

 

      Industry       Shares                Value  

Common Stocks (continued)

         

Taiwan (continued)

         

aHTC Corp.

   Technology Hardware, Storage & Peripherals     129,500        $ 266,252  

Hua Nan Financial Holdings Co. Ltd.

   Banks     1,787,029          1,311,769  

Innolux Corp.

   Electronic Equipment, Instruments & Components     1,451,155          691,083  

Inventec Corp.

   Technology Hardware, Storage & Peripherals     518,000          543,562  

Largan Precision Co. Ltd.

   Electronic Equipment, Instruments & Components     18,130          1,295,106  

Lite-On Technology Corp.

   Technology Hardware, Storage & Peripherals     374,200          900,858  

MediaTek, Inc.

   Semiconductors & Semiconductor Equipment     262,700          6,790,209  

Mega Financial Holding Co. Ltd.

   Banks     1,962,150          2,126,643  

Micro-Star International Co. Ltd.

   Technology Hardware, Storage & Peripherals     119,700          566,115  

momo.com, Inc.

   Broadline Retail     9,998          296,517  

Nan Ya Plastics Corp.

   Chemicals     999,000          2,542,820  

Nan Ya Printed Circuit Board Corp.

   Electronic Equipment, Instruments & Components     37,000          343,903  

Nanya Technology Corp.

   Semiconductors & Semiconductor Equipment     143,670          313,788  

Nien Made Enterprise Co. Ltd.

   Household Durables     24,420          262,266  

Novatek Microelectronics Corp.

   Semiconductors & Semiconductor Equipment     101,010          1,431,507  

aOneness Biotech Co. Ltd.

   Pharmaceuticals     53,400          468,275  

Pegatron Corp.

   Technology Hardware, Storage & Peripherals     356,000          814,950  

Pou Chen Corp.

   Textiles, Apparel & Luxury Goods     481,000          492,888  

Powerchip Semiconductor Manufacturing Corp.

   Semiconductors & Semiconductor Equipment     518,000          563,127  

Powertech Technology, Inc.

   Semiconductors & Semiconductor Equipment     119,100          355,960  

President Chain Store Corp.

   Consumer Staples Distribution & Retail     99,580          881,413  

Quanta Computer, Inc.

   Technology Hardware, Storage & Peripherals     471,380          1,379,422  

Realtek Semiconductor Corp.

   Semiconductors & Semiconductor Equipment     83,596          1,063,912  

Ruentex Development Co. Ltd.

   Real Estate Management & Development     414,900          481,705  

Shanghai Commercial & Savings Bank Ltd.

   Banks     666,000          1,026,971  

Shin Kong Financial Holding Co. Ltd.

   Insurance     2,368,000          654,850  

Sino-American Silicon Products, Inc.

   Semiconductors & Semiconductor Equipment     92,880          475,878  

SinoPac Financial Holdings Co. Ltd.

   Banks     1,997,969          1,089,294  

Synnex Technology International Corp.

   Electronic Equipment, Instruments & Components     237,500          478,159  

Taishin Financial Holding Co. Ltd.

   Banks     2,001,872          1,091,422  

Taiwan Business Bank

   Banks     931,631          411,542  

Taiwan Cement Corp.

   Construction Materials     1,111,418          1,328,701  

Taiwan Cooperative Financial Holding Co. Ltd.

   Banks     1,776,000          1,522,411  

Taiwan Fertilizer Co. Ltd.

   Chemicals     133,200          244,986  

Taiwan Glass Industry Corp.

   Building Products     296,000          199,780  

Taiwan High Speed Rail Corp.

   Transportation Infrastructure     370,000          367,600  

Taiwan Mobile Co. Ltd.

   Wireless Telecommunication Services     304,140          1,008,889  

Taiwan Secom Co. Ltd.

   Commercial Services & Supplies     50,360          174,496  

Taiwan Semiconductor Manufacturing Co. Ltd.

   Semiconductors & Semiconductor Equipment     1,591,400          27,858,320  

Teco Electric & Machinery Co. Ltd.

   Electrical Equipment     346,000          482,962  

Transcend Information, Inc.

   Technology Hardware, Storage & Peripherals     50,360          120,907  

U-Ming Marine Transport Corp.

   Marine Transportation     74,000          135,617  

Unimicron Technology Corp.

   Electronic Equipment, Instruments & Components     222,000          1,075,458  

Uni-President Enterprises Corp.

   Food Products     851,000          2,009,587  

United Microelectronics Corp.

   Semiconductors & Semiconductor Equipment     2,072,000          3,599,928  

Vanguard International Semiconductor Corp.

   Semiconductors & Semiconductor Equipment     158,400          504,112  

Voltronic Power Technology Corp.

   Electrical Equipment     11,470          651,715  

Walsin Lihwa Corp.

   Electrical Equipment     606,289          970,739  

Walsin Technology Corp.

   Electronic Equipment, Instruments & Components     87,360          277,452  

Wan Hai Lines Ltd.

   Marine Transportation     160,130          360,256  

Win Semiconductors Corp.

   Semiconductors & Semiconductor Equipment     72,150          432,462  

Winbond Electronics Corp.

   Semiconductors & Semiconductor Equipment     522,000          454,323  

Wistron Corp.

   Technology Hardware, Storage & Peripherals     518,000          711,990  

Wiwynn Corp.

   Technology Hardware, Storage & Peripherals     15,580          575,663  

Yageo Corp.

   Electronic Equipment, Instruments & Components     68,729          1,194,109  

Yang Ming Marine Transport Corp.

   Marine Transportation     308,326          651,133  

Yuanta Financial Holding Co. Ltd.

   Capital Markets     2,110,406          1,549,144  

 

           
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FRANKLIN TEMPLETON ETF TRUST

SCHEDULE OF INVESTMENTS

 

Franklin FTSE Taiwan ETF (continued)

 

      Industry       Shares                Value  

Common Stocks (continued)

         

Taiwan (continued)

         

Yulon Motor Co. Ltd.

   Automobiles     95,979        $ 237,051  

Yulon Nissan Motor Co. Ltd.

   Automobiles     4,070          26,267  

Zhen Ding Technology Holding Ltd.

   Electronic Equipment, Instruments & Components     112,160          419,944  
         

 

 

 
            134,455,519  
         

 

 

 

United States 0.3%

         

Parade Technologies Ltd.

   Semiconductors & Semiconductor Equipment     12,580          433,828  
         

 

 

 

Total Investments
(Cost $125,458,129) 99.8%

            136,871,589  

Other Assets, less Liabilities 0.2%

            222,238  
         

 

 

 

Net Assets 100.0%

          $ 137,093,827  
         

 

 

 

 

 

 

 

aNon-income producing.

 

           
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The accompanying notes are an integral part of these financial statements.    |   Annual Report

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FRANKLIN TEMPLETON ETF TRUST

 

Financial Highlights

 

Franklin FTSE United Kingdom ETF

 

    Year Ended March 31,  
     2023      2022      2021      2020      2019  

Per share operating performance

(for a share outstanding throughout the year)

             

Net asset value, beginning of year

  $ 25.46      $ 23.78      $ 17.92      $ 24.23      $ 25.23  
 

 

 

 
Income from investment operationsa:              

Net investment incomeb

    0.94        0.95        0.84        1.08        1.05  

Net realized and unrealized gains (losses)

    (1.22      1.47        5.62        (6.30      (1.21
 

 

 

 

Total from investment operations

    (0.28      2.42        6.46        (5.22      (0.16
 

 

 

 

Less distributions from net investment income

    (0.97      (0.74      (0.60      (1.09      (0.84
 

 

 

 

Net asset value, end of year

  $ 24.21      $ 25.46      $ 23.78      $ 17.92      $ 24.23  
 

 

 

 

Total returnc

    (0.71)%        10.27%        36.19%        (22.42)%        (0.51)%  
Ratios to average net assetsd              

Expenses before waiver and payments by affiliates

    0.09%        0.09%        0.09%        0.09%        0.09%  

Expenses net of waiver and payments by affiliates

    0.09%        0.09%        0.09%        0.09%        0.09%  

Net investment income

    4.10%        3.77%        3.98%        4.84%        4.46%  
Supplemental data

 

Net assets, end of year (000’s)

  $ 568,961      $ 613,573      $ 205,673      $ 89,624      $ 29,076  

Portfolio turnover ratee

    5.61% f       5.76% f       7.26% f       4.41% f       10.10%  
             

 

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

bBased on average daily shares outstanding.

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

dRatios are annualized for periods less than one year.

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

 

f Portfolio turnover rate excluding cash creations was as follows:              5.60%                 5.76%                 7.26%                  4.41%                  —  

 

           
300             

Annual Report    |   The accompanying notes are an integral part of these financial statements.

  franklintempleton.com


FRANKLIN TEMPLETON ETF TRUST

 

Schedule of Investments, March 31, 2023

 

Franklin FTSE United Kingdom ETF

 

           Industry      Shares        Value  
    Common Stocks 99.1%  
  Australia 5.9%

 

  Glencore PLC    Metals & Mining        2,891,440        $ 16,610,013  
  Rio Tinto PLC    Metals & Mining        249,100          16,872,224  
              

 

 

 
                 33,482,237  
              

 

 

 
  Bermuda 0.2%

 

  Hiscox Ltd.    Insurance        77,080          1,056,939  
              

 

 

 
  Chile 0.3%

 

  Antofagasta PLC    Metals & Mining        79,430          1,552,719  
              

 

 

 
  Ireland 4.6%

 

  CRH PLC    Construction Materials        171,080          8,633,673  
  DCC PLC    Industrial Conglomerates        22,560          1,316,054  
  Experian PLC    Professional Services        210,560          6,925,228  

a

  Flutter Entertainment PLC    Hotels, Restaurants & Leisure        40,420          7,311,681  
  Smurfit Kappa Group PLC    Containers & Packaging        59,690          2,159,496  
              

 

 

 
                 26,346,132  
              

 

 

 
  Isle Of Man 0.4%

 

  Entain PLC    Hotels, Restaurants & Leisure        133,950          2,081,047  
              

 

 

 
  Mexico 0.1%

 

  Fresnillo PLC    Metals & Mining        42,300          390,172  
              

 

 

 
  Netherlands 8.0%

 

  Shell PLC    Oil, Gas & Consumable Fuels        1,594,710          45,518,524  
              

 

 

 
  Nigeria 0.0%†

 

b

  Airtel Africa PLC    Wireless Telecommunication Services        249,570          328,639  
              

 

 

 
  Russia 0.0%†

 

a

  Evraz PLC    Metals & Mining        128,818           
              

 

 

 
  Switzerland 0.2%

 

  Coca-Cola HBC AG    Beverages        45,120          1,234,602  
              

 

 

 
  United Kingdom 79.4%

 

  3i Group PLC    Capital Markets        218,080          4,543,519  
  abrdn PLC    Capital Markets        452,610          1,138,846  
  Admiral Group PLC    Insurance        65,330          1,646,241  
  Anglo American PLC    Metals & Mining        276,360          9,150,869  
  Ashtead Group PLC    Trading Companies & Distributors        100,110          6,137,063  
  Associated British Foods PLC    Food Products        79,430          1,905,298  
  AstraZeneca PLC    Pharmaceuticals        338,400          46,996,339  

b

  Auto Trader Group PLC    Interactive Media & Services        206,330          1,572,029  
  Aviva PLC    Insurance        638,730          3,192,201  
  B&M European Value Retail SA    Broadline Retail        212,910          1,269,141  
  BAE Systems PLC    Aerospace & Defense        699,830          8,502,485  
  Barclays PLC    Banks        3,619,940          6,525,826  
  Barratt Developments PLC    Household Durables        227,480          1,312,114  
  Beazley PLC    Insurance        151,810          1,121,540  
  Berkeley Group Holdings PLC    Household Durables        24,440          1,268,285  
  BP PLC    Oil, Gas & Consumable Fuels        4,053,280          25,599,653  
  British American Tobacco PLC    Tobacco        513,240          18,025,689  
  British Land Co. PLC    Diversified REITs        211,970          1,016,386  
  BT Group PLC    Diversified Telecommunication Services        1,589,540          2,865,534  
  Bunzl PLC    Trading Companies & Distributors        77,080          2,913,491  
  Burberry Group PLC    Textiles, Apparel & Luxury Goods        86,010          2,750,135  
  Centrica PLC    Multi-Utilities        1,331,980          1,746,566  
  Compass Group PLC    Hotels, Restaurants & Leisure        401,850          10,101,315  

b

  ConvaTec Group PLC    Health Care Equipment & Supplies        373,180          1,054,803  

 

           
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Annual Report

             301


FRANKLIN TEMPLETON ETF TRUST

SCHEDULE OF INVESTMENTS

 

Franklin FTSE United Kingdom ETF (continued)

 

           Industry      Shares        Value  
    Common Stocks (continued)  
  United Kingdom (continued)

 

  Croda International PLC    Chemicals        31,960        $ 2,567,811  
  Dechra Pharmaceuticals PLC    Pharmaceuticals        25,380          831,599  
  Derwent London PLC    Diversified REITs        25,380          739,966  
  Diageo PLC    Beverages        508,540          22,724,265  
  Direct Line Insurance Group PLC    Insurance        304,090          516,989  
  DS Smith PLC    Containers & Packaging        293,280          1,140,459  
  Endeavour Mining PLC    Metals & Mining        41,360          1,021,769  
  Ferguson PLC    Trading Companies & Distributors        47,470          6,250,941  
  GSK PLC    Pharmaceuticals        915,090          16,168,607  

a

  Haleon PLC    Personal Products        1,143,040          4,550,864  
  Halma PLC    Electronic Equipment, Instruments & Components        86,950          2,396,383  
  Hargreaves Lansdown PLC    Capital Markets        86,480          854,784  
  Hikma Pharmaceuticals PLC    Pharmaceuticals        37,130          768,982  
  Howden Joinery Group PLC    Trading Companies & Distributors        122,200          1,054,637  
  HSBC Holdings PLC    Banks        4,611,170          31,341,043  
  IMI PLC    Machinery        58,750          1,114,320  
  Imperial Brands PLC    Tobacco        211,970          4,885,364  
  Informa PLC    Media        322,890          2,765,118  
  InterContinental Hotels Group PLC    Hotels, Restaurants & Leisure        40,420          2,654,795  
  Intermediate Capital Group PLC    Capital Markets        63,450          954,770  

a

  International Consolidated Airlines Group SA    Airlines        252,390          471,160  
  Intertek Group PLC    Professional Services        37,130          1,860,708  
  ITV PLC    Media        857,750          878,148  
  J Sainsbury PLC    Consumer Staples Distribution & Retail        392,920          1,353,997  
  JD Sports Fashion PLC    Specialty Retail        567,290          1,246,784  
  Johnson Matthey PLC    Chemicals        41,360          1,014,353  
  Kingfisher PLC    Specialty Retail        445,090          1,437,466  
  Land Securities Group PLC    Diversified REITs        169,200          1,299,596  
  Legal & General Group PLC    Insurance        1,357,830          4,010,866  
  Lloyds Banking Group PLC    Banks        15,373,230          9,062,174  
  London Stock Exchange Group PLC    Capital Markets        89,300          8,687,451  
  M&G PLC    Financial Services        495,850          1,213,926  
  Melrose Industries PLC    Industrial Conglomerates        916,500          1,886,789  
  Mondi PLC    Paper & Forest Products        110,920          1,758,225  
  National Grid PLC    Multi-Utilities        834,720          11,316,862  
  NatWest Group PLC    Banks        1,239,390          4,039,522  
  Next PLC    Broadline Retail        28,200          2,291,518  

a

  NMC Health PLC    Health Care Providers & Services        3,705           

a

  Ocado Group PLC    Consumer Staples Distribution & Retail        138,650          917,171  
  Pearson PLC    Media        164,970          1,722,383  
  Persimmon PLC    Household Durables        72,380          1,124,048  
  Phoenix Group Holdings PLC    Insurance        167,790          1,133,583  
  Prudential PLC    Insurance        629,800          8,581,453  
  Reckitt Benckiser Group PLC    Household Products        164,030          12,489,342  
  RELX PLC    Professional Services        439,920          14,240,326  
  Renishaw PLC    Electronic Equipment, Instruments & Components        7,990          404,456  
  Rentokil Initial PLC    Commercial Services & Supplies        573,400          4,194,328  
  Rightmove PLC    Interactive Media & Services        188,940          1,315,252  

a

  Rolls-Royce Holdings PLC    Aerospace & Defense        1,917,600          3,533,289  
  RS GROUP PLC    Trading Companies & Distributors        107,630          1,216,343  
  Sage Group PLC    Software        233,120          2,233,870  
  Schroders PLC    Capital Markets        198,340          1,128,093  
  Segro PLC    Diversified REITs        274,950          2,609,548  
  Severn Trent PLC    Water Utilities        57,340          2,041,155  
  Smith & Nephew PLC    Health Care Equipment & Supplies        200,220          2,777,646  
  Smiths Group PLC    Industrial Conglomerates        81,310          1,725,696  
  Spirax-Sarco Engineering PLC    Machinery        16,920          2,480,153  

 

           
302             

Annual Report

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FRANKLIN TEMPLETON ETF TRUST

SCHEDULE OF INVESTMENTS

 

Franklin FTSE United Kingdom ETF (continued)

 

           Industry      Shares        Value  
    Common Stocks (continued)  
  United Kingdom (continued)

 

 

SSE PLC

   Electric Utilities        248,160        $ 5,532,279  
 

St. James’s Place PLC

   Capital Markets        122,670          1,836,788  
 

Standard Chartered PLC

   Banks        543,320          4,126,122  
 

Tate & Lyle PLC

   Food Products        91,650          889,114  
 

Taylor Wimpey PLC

   Household Durables        806,520          1,186,195  
 

Tesco PLC

   Consumer Staples Distribution & Retail        1,658,160          5,447,466  
 

Unilever PLC

   Personal Products        575,280          29,803,679  
 

UNITE Group PLC

   Diversified REITs        73,320          869,849  
 

United Utilities Group PLC

   Water Utilities        156,040          2,045,118  
 

Vodafone Group PLC

   Wireless Telecommunication Services        5,403,590          5,966,373  
 

Weir Group PLC

   Machinery        59,220          1,361,208  
 

Whitbread PLC

   Hotels, Restaurants & Leisure        46,060          1,701,123  

a

 

Wise PLC, Class A

   IT Services        161,210          1,083,946  
 

WPP PLC

   Media        238,760          2,829,929  
              

 

 

 
                 452,035,703  
              

 

 

 
 

Total Investments before Short- Term Investments
(Cost $590,608,335)

               564,026,714  
              

 

 

 
    Short-Term Investments 0.0%  
    Money Market Funds 0.0%  
    United States 0.0%  

c,d

 

Institutional Fiduciary Trust - Money Market
Portfolio, 4.47%

   Money Market Funds        10          10  
              

 

 

 
 

Total Short-Term Investments
(Cost $10)

               10  
              

 

 

 
 

Total Investments
(Cost $590,608,345) 99.1%

               564,026,724  
 

Other Assets, less Liabilities 0.9%

               4,934,191  
              

 

 

 
 

Net Assets 100.0%

             $ 568,960,915  
              

 

 

 

Rounds to less than 0.1% of net assets.

aNon-income producing.

bSecurity was purchased pursuant to Rule 144A under the Securities Act of 1933 and may be sold in transactions exempt from registration only to qualified institutional buyers or in a public offering registered under the Securities Act of 1933. At March 31, 2023, the value of was $2,955,471, representing 0.5% of net assets.

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

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

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

 

Futures Contracts                                   
Description    Type     

Number of

Contracts

    

Notional

Amount*

    

Expiration

Date

    

Value/Unrealized

Appreciation

(Depreciation)

 
Index Contracts               

FTSE 100 Index

     Long        53      $ 5,005,978        6/16/23        $27,481  

*As of year end.

See Note 7 regarding other derivative information.

See Abbreviations on page 355.

 

           
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The accompanying notes are an integral part of these financial statements.    |   Annual Report

             303


FRANKLIN TEMPLETON ETF TRUST

FINANCIAL STATEMENTS

 

Statements of Assets and Liabilities

March 31, 2023

 

 

    

Franklin FTSE

Asia ex Japan ETF

    

Franklin FTSE

Australia ETF

    

Franklin FTSE

Brazil ETF

    

Franklin FTSE

Canada ETF

 

 

 

Assets:

           

Investments in securities:

           

Cost – Unaffiliated issuers

     $32,145,017        $27,816,869        $ 268,034,332        $298,943,761  

Value – Unaffiliated issuers

     $30,033,178        $28,942,982        $ 266,560,670        $279,121,167  

Cash

            60        22,230        67,820  

Foreign currency, at value (cost $47,250, $191,523, $793,582 and $612,335, respectively)

     47,486        191,862        821,952        614,983  

Receivables:

           

Dividends

     86,933        256,240        1,170,621        625,313  

Variation margin on futures contracts

            8,037               6,231  

Deposits with brokers for:

           

Futures contracts

     49        40,024        427,274        50,360  
  

 

 

 

Total assets

     30,167,646        29,439,205        269,002,747        280,485,874  
  

 

 

 

Liabilities:

           

Payables:

           

Investment securities purchased

     6,233                      537,862  

Management fees

     4,716        2,269        47,523        20,964  

Variation margin on futures contracts

                   41,448         

Funds advanced by custodian

     81,349                       

Deferred tax

     95,019                       
  

 

 

 

Total liabilities

     187,317        2,269        88,971        558,826  
  

 

 

 

Net assets, at value

     $29,980,329        $29,436,936        $ 268,913,776        $279,927,048  
  

 

 

 

Net assets consist of:

           

Paid-in capital

     $36,318,823        $29,526,662        $ 422,644,770        $301,211,266  

Total distributable earnings (loss)

     (6,338,494      (89,726      (153,730,994      (21,284,218
  

 

 

 

Net assets, at value

     $29,980,329        $29,436,936        $ 268,913,776        $279,927,048  
  

 

 

 

Shares outstanding

     1,400,000        1,100,000        16,000,000        9,100,000  
  

 

 

 

Net asset value per share

     $         21.41        $         26.76        $            16.81        $          30.76  
  

 

 

 

 

           
304             

Annual Report    |   The accompanying notes are an integral part of these financial statements.

  franklintempleton.com


FRANKLIN TEMPLETON ETF TRUST

FINANCIAL STATEMENTS

 

Statements of Assets and Liabilities (continued)

March 31, 2023

 

 

    

Franklin FTSE

China ETF

    

Franklin FTSE

Europe ETF

    

Franklin FTSE

Europe Hedged ETF

    

Franklin FTSE

France ETF

 

 

 

Assets:

           

Investments in securities:

           

Cost – Unaffiliated issuers

     $140,465,875        $113,790,301        $14,095,289        $5,871,994  

Cost – Non-controlled affiliates (Note 3c)

                   4,136         

Value – Unaffiliated issuers

     $114,257,538        $110,175,895        $14,018,999        $6,047,577  

Value – Non-controlled affiliates (Note 3c)

                   4,136         

Cash

            37,235                

Foreign currency, at value (cost $3,687, $202,826, $27,374 and $43,026, respectively)

     3,687        203,722        27,481        43,711  

Receivables:

           

Dividends and interest

     5,406        685,581        67,832        4,940  

European Union tax reclaims receivable (Note 1e)

            497,518        38,729        84,224  

Investment securities sold

                   301,126         

Variation margin on futures contracts

            598               636  

Deposits with brokers for:

           

Futures contracts

     4        90,197        11,471        5,975  

Unrealized appreciation on OTC forward exchange contracts

                   2,354         
  

 

 

 

Total assets

     114,266,635        111,690,746        14,472,128        6,187,063  
  

 

 

 

Liabilities:

           

Payables:

           

Investment securities purchased

                   21        31,582  

European Union tax reclaim contingent fees payable (Note 1e)

            124,379        9,682        21,056  

Management fees

     17,826        8,219        1,057        450  

Variation margin on futures contracts

                   3,223         

Funds advanced by custodian

     14,453                      194  

Unrealized depreciation on OTC forward exchange contracts

                   295,253         

Total liabilities

     32,279        132,598        309,236        53,282  
  

 

 

 

Net assets, at value

     $114,234,356        $111,558,148        $14,162,892        $6,133,781  
  

 

 

 

Net assets consist of:

           

Paid-in capital

     $161,465,654        $118,847,959        $17,715,519        $6,219,484  

Total distributable earnings (loss)

     (47,231,298      (7,289,811      (3,552,627      (85,703
  

 

 

 

Net assets, at value

     $114,234,356        $111,558,148        $14,162,892        $6,133,781  
  

 

 

 

Shares outstanding

     5,800,000        4,200,000        600,000        200,000  
  

 

 

 

Net asset value per share

     $          19.70        $          26.56        $         23.60        $       30.67  
  

 

 

 

 

           
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             305


FRANKLIN TEMPLETON ETF TRUST

FINANCIAL STATEMENTS

 

Statements of Assets and Liabilities (continued)

March 31, 2023

 

 

     Franklin FTSE
Germany ETF
     Franklin FTSE
Hong Kong ETF
     Franklin FTSE
India ETF
     Franklin FTSE
Italy ETF
 

 

 

Assets:

           

Investments in securities:

 

Cost – Unaffiliated issuers

         $ 19,214,695             $ 18,872,342          $ 98,043,841           $ 4,459,161  

Value – Unaffiliated issuers

         $ 17,683,414             $ 17,034,504          $ 99,072,406           $ 5,037,427  

Cash

            893               251  

Foreign currency, at value (cost $760, $4,657, $299,561 and $1,492, respectively)

     766        4,657        300,634        1,502  

Receivables:

           

Dividends

     468        27,141        11,662         

Variation margin on futures contracts

            247                

Deposits with brokers for:

 

Futures contracts

            2,648        13         
  

 

 

 

Total assets

     17,684,648        17,070,090        99,384,715        5,039,180  
  

 

 

 

Liabilities:

           

Due to Custodian

     5                       

Payables:

           

Management fees

     1,277        1,217        15,815        366  

Funds advanced by custodian

     153               279,516         

Deferred tax

                   111,942         
  

 

 

 

Total liabilities

     1,435        1,217        407,273        366  
  

 

 

 

Net assets, at value

         $ 17,683,213             $ 17,068,873          $ 98,977,442           $ 5,038,814  
  

 

 

 

Net assets consist of:

 

Paid-in capital

         $ 20,187,918             $ 20,392,708          $ 101,969,733           $ 4,977,355  

Total distributable earnings (loss)

     (2,504,705      (3,323,835      (2,992,291      61,459  
  

 

 

 

Net assets, at value

         $ 17,683,213             $ 17,068,873          $ 98,977,442           $ 5,038,814  
  

 

 

 

Shares outstanding

     800,000        800,000        3,600,000        200,000  
  

 

 

 

Net asset value per share

         $ 22.10             $ 21.34          $ 27.49           $ 25.19  
  

 

 

 

 

           
306             

Annual Report    |   The accompanying notes are an integral part of these financial statements.

  franklintempleton.com


FRANKLIN TEMPLETON ETF TRUST

FINANCIAL STATEMENTS

 

Statements of Assets and Liabilities (continued)

March 31, 2023

 

 

   

Franklin FTSE

Japan ETF

    Franklin FTSE
Japan Hedged ETF
    Franklin FTSE
Latin America ETF
    Franklin FTSE
Mexico ETF
 

 

 

Assets:

       

Investments in securities:

       

Cost – Unaffiliated issuers

        $ 1,089,076,853       $13,750,298       $61,702,938           $ 21,033,038  

Cost – Non-controlled affiliates (Note 3c)

    4,417,293       721              

Value – Unaffiliated issuers+

        $ 988,568,241       $13,036,206       $67,137,485           $ 24,885,047  

Value – Non-controlled affiliates (Note 3c)

    4,417,293       721              

Cash

    32                    

Foreign currency, at value (cost $928,337, $59,181, $50,224 and $5,990, respectively)

    920,343       58,717       51,729       6,103  

Receivables:

 

Dividends

    10,450,363       141,239       181,240       15,014  

Investment securities sold

    196,649       285,879              

Variation margin on futures contracts

    201,220       2,700              

Deposits with brokers for:

       

Futures contracts

    480,577       7,393       37,522       35  
 

 

 

 

Total assets

    1,005,234,718       13,532,855       67,407,976       24,906,199  
 

 

 

 

Liabilities:

 

Payables:

 

Investment securities purchased

    1,519       121              

Management fees

    74,143       988       10,606       3,882  

Variation margin on futures contracts

                3,962        

Funds advanced by custodian

                21,176       12,469  

Payable upon return of securities loaned

    4,355,834                    

Unrealized depreciation on OTC forward exchange contracts

          247,252              
 

 

 

 

Total liabilities

    4,431,496       248,361       35,744       16,351  
 

 

 

 

Net assets, at value

        $ 1,000,803,222       $13,284,494       $67,372,232           $ 24,889,848  
 

 

 

 

Net assets consist of:

       

Paid-in capital

        $ 1,111,304,190       $20,188,740       $63,559,300           $ 22,021,779  

Total distributable earnings (loss)

    (110,500,968     (6,904,246     3,812,932       2,868,069  
 

 

 

 

Net assets, at value

        $ 1,000,803,222       $13,284,494       $67,372,232           $ 24,889,848  
 

 

 

 

Shares outstanding

    39,000,000       500,000       3,300,000       850,000  
 

 

 

 

Net asset value per share

        $ 25.66       $         26.57       $         20.42           $ 29.28  
 

 

 

 

+Includes securities loaned

    4,146,755                    

 

           
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             307


FRANKLIN TEMPLETON ETF TRUST

FINANCIAL STATEMENTS

 

Statements of Assets and Liabilities (continued)

March 31, 2023

 

 

     Franklin FTSE
Saudi Arabia ETF
     Franklin FTSE
South Africa ETF
     Franklin FTSE
South Korea ETF
 

 

 

Assets:

        

Investments in securities:

 

Cost – Unaffiliated issuers

     $20,984,820        $2,702,285        $292,428,896  

Value – Unaffiliated issuers

     $21,730,478        $2,242,239        $290,711,940  

Foreign currency, at value (cost $56,228, $5,118 and $75,909, respectively)

     56,252        5,154        75,945  

Receivables:

        

Dividends

     149,721        8,936        2,161,241  

Investment securities sold

                   449,585  

Variation margin on futures contracts

                   55,556  

Deposits with brokers for:

 

Futures contracts

                   172,070  
  

 

 

 

Total assets

     21,936,451        2,256,329        293,626,337  
  

 

 

 

Liabilities:

        

Payables:

        

Investment securities purchased

                   507,088  

Management fees

     7,002        428        21,733  

Funds advanced by custodian

     55,817        12,274        48,723  
  

 

 

 

Total liabilities

     62,819        12,702        577,544  
  

 

 

 

Net assets, at value

     $21,873,632        $2,243,627        $293,048,793  
  

 

 

 

Net assets consist of:

 

Paid-in capital

     $21,045,215        $3,099,543        $307,935,864  

Total distributable earnings (loss)

     828,417        (855,916      (14,887,071
  

 

 

 

Net assets, at value

     $21,873,632        $2,243,627        $293,048,793  
  

 

 

 

Shares outstanding

     650,000        100,000        13,900,000  
  

 

 

 

Net asset value per share

     $         33.65        $       22.44        $           21.08  
  

 

 

 

 

           
308             

Annual Report    |   The accompanying notes are an integral part of these financial statements.

  franklintempleton.com


FRANKLIN TEMPLETON ETF TRUST

FINANCIAL STATEMENTS

 

Statements of Assets and Liabilities (continued)

March 31, 2023

 

 

     Franklin FTSE
Switzerland ETF
     Franklin FTSE
Taiwan ETF
     Franklin FTSE
United Kingdom ETF
 

 

 

Assets:

 

Investments in securities:

 

Cost – Unaffiliated issuers

     $48,952,282        $125,458,129        $590,608,325  

Cost – Non-controlled affiliates (Note 3c)

                   10  

Value – Unaffiliated issuers

     $49,051,415        $136,871,589        $564,026,704  

Value – Non-controlled affiliates (Note 3c)

                   10  

Cash

            954        66,638  

Foreign currency, at value (cost $17,394, $78,095 and $911,204, respectively)

     17,446        78,102        910,804  

Receivables:

 

Dividends

     854,880        159,771        3,737,339  

Variation margin on futures contracts

     5,205               9,870  

Deposits with brokers for:

 

Futures contracts

     48,710        13        283,163  
  

 

 

 

Total assets

     49,977,656        137,110,429        569,034,528  
  

 

 

 

Liabilities:

 

Payables:

 

Investment securities purchased

                   31,950  

Management fees

     3,656        16,602        41,663  

Funds advanced by custodian

     33,251                
  

 

 

 

Total liabilities

     36,907        16,602        73,613  
  

 

 

 

Net assets, at value

     $49,940,749        $137,093,827        $568,960,915  
  

 

 

 

Net assets consist of:

 

Paid-in capital

     $50,648,740        $128,392,163        $608,290,313  

Total distributable earnings (loss)

     (707,991      8,701,664        (39,329,398
  

 

 

 

Net assets, at value

     $49,940,749        $137,093,827        $568,960,915  
  

 

 

 

Shares outstanding

     1,600,000        3,700,000        23,500,000  
  

 

 

 

Net asset value per share

     $         31.21        $           37.05        $           24.21  
  

 

 

 

 

           
franklintempleton.com  

The accompanying notes are an integral part of these financial statements.    |   Annual Report

             309


FRANKLIN TEMPLETON ETF TRUST

FINANCIAL STATEMENTS

 

Statements of Operations

for the year ended March 31, 2023

 

 

     Franklin FTSE
Asia ex Japan ETF
     Franklin FTSE
Australia ETF
     Franklin FTSE
Brazil ETF
     Franklin FTSE
Canada ETF
 

 

 

Investment income:

           

Dividends: (net of foreign taxes)a

           

Unaffiliated issuers

     $    853,108        $  1,714,905        $   36,247,124        $    6,964,614  

Non-cash dividends

     76,504                       

Interest:

           

Unaffiliated issuers

     230                       

Interest from securities loaned (Note 1d):

           

Unaffiliated issuers (net of fees and rebates)

     12                       

Non-Controlled affiliates (Note 3c)

     10                       
  

 

 

 

Total investment income

     929,864        1,714,905        36,247,124        6,964,614  
  

 

 

 

Expenses:

           

Management fees (Note 3a)

     61,706        25,597        619,096        202,904  
  

 

 

 

Total expenses

     61,706        25,597        619,096        202,904  

Expenses waived/paid by affiliates (Note 3c)

     (143                     
  

 

 

 

Net expenses

     61,563        25,597        619,096        202,904  
  

 

 

 

Net investment income

     868,301        1,689,308        35,628,028        6,761,710  
  

 

 

 

Realized and unrealized gains (losses):

           

Net realized gain (loss) from:

           

Investments:

           

Unaffiliated issuers

     (2,269,307      (591,067      (91,682,458      (2,938,738

In-kind redemptions

     169,438        382,610               6,382,227  

Foreign currency transactions

     (17,679      (33,976      (1,122,565      (71,721

Futures contracts

     (41,334      4,705        (2,139,014      (32,397
  

 

 

 

Net realized gain (loss)

     (2,158,882      (237,728      (94,944,037      3,339,371  
  

 

 

 

Net change in unrealized appreciation (depreciation) on:

           

Investments:

           

Unaffiliated issuers

     (2,721,461      (4,246,961      (44,926,968      (27,305,464

Translation of other assets and liabilities denominated in foreign currencies

     404        (515      (9,444      5,184  

Futures contracts

            865        (313,611      13,181  

Change in deferred taxes on unrealized appreciation

     82,986                       
  

 

 

 

Net change in unrealized appreciation (depreciation)

     (2,638,071      (4,246,611      (45,250,023      (27,287,099
  

 

 

 

Net realized and unrealized gain (loss)

     (4,796,953      (4,484,339      (140,194,060      (23,947,728
  

 

 

 

Net increase (decrease) in net assets resulting from operations

     $(3,928,652      $(2,795,031      $(104,566,032      $(17,186,018
  

 

 

 
        

aForeign taxes withheld on dividends

     $116,622        $11,838        $1,369,781        $1,231,578  
  

 

 

 

 

           
310             

Annual Report    |   The accompanying notes are an integral part of these financial statements.

  franklintempleton.com


FRANKLIN TEMPLETON ETF TRUST

FINANCIAL STATEMENTS

 

Statements of Operations (continued)

for the year ended March 31, 2023

 

 

     Franklin FTSE
China ETF
     Franklin FTSE
Europe ETF
     Franklin FTSE
Europe Hedged ETF
    

Franklin FTSE

France ETF

 

 

 

Investment income:

           

Dividends: (net of foreign taxes)a

           

Unaffiliated issuers

     $  3,169,280        $   3,413,567        $   567,428        $  227,982  

European Union tax reclaims (Note 1e)

            497,518        38,729        84,224  

Interest:

           

Unaffiliated issuers

     2,413                       

Interest from securities loaned (Note 1d):

           

Non-Controlled affiliates (Note 3c)

     1,001                       
  

 

 

 

Total investment income

     3,172,694        3,911,085        606,157        312,206  
  

 

 

 

Expenses:

           

Management fees (Note 3a)

     200,306        74,288        15,218        6,610  

Contingent fees for European Union tax reclaims (Note 1e)

            124,379        9,682        21,056  

Other

            305        25        1  
  

 

 

 

Total expenses

     200,306        198,972        24,925        27,667  

Expenses waived/paid by affiliates (Note 3c)

     (114             (85       
  

 

 

 

Net expenses

     200,192        198,972        24,840        27,667  
  

 

 

 

Net investment income

     2,972,502        3,712,113        581,317        284,539  
  

 

 

 

Realized and unrealized gains (losses):

           

Net realized gain (loss) from:

           

Investments:

           

Unaffiliated issuers

     (8,197,395      (2,028,827      (1,927,497      (200,236

In-kind redemptions

            6,498,626        308,341        (75,711

Foreign currency transactions

     (10,174      (26,976      (6,270      (997

Forward exchange contracts

                   1,844,814         

Futures contracts

     (282,944      35,645        800        (3,299
  

 

 

 

Net realized gain (loss)

     (8,490,513      4,478,468        220,188        (280,243
  

 

 

 

Net change in unrealized appreciation (depreciation) on:

           

Investments:

           

Unaffiliated issuers

     (281,035      (20,809,475      (492,570      (133,773

Translation of other assets and liabilities denominated in foreign currencies

     117        6,754        256        1,510  

Futures contracts

            (40,919      2,816        2,470  

Forward exchange contracts

                   (515,430       
  

 

 

 

Net change in unrealized appreciation (depreciation)

     (280,918      (20,843,640      (1,004,928      (129,793
  

 

 

 

Net realized and unrealized gain (loss)

     (8,771,431      (16,365,172      (784,740      (410,036
  

 

 

 

Net increase (decrease) in net assets resulting from operations

     $(5,798,929      $(12,653,059      $  (203,423      $(125,497
  

 

 

 
           

aForeign taxes withheld on dividends

     $199,805        $428,263        $72,213        $39,278  
  

 

 

 

 

           
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The accompanying notes are an integral part of these financial statements.    |   Annual Report

             311


FRANKLIN TEMPLETON ETF TRUST

FINANCIAL STATEMENTS

 

Statements of Operations (continued)

for the year ended March 31, 2023

 

 

     Franklin FTSE
Germany ETF
     Franklin FTSE
Hong Kong ETF
     Franklin FTSE
India ETF
     Franklin FTSE
Italy ETF
 

 

 

Investment income:

           

Dividends: (net of foreign taxes)a

           

Unaffiliated issuers

     $  456,585        $    530,227        $    715,520        $136,695  

Interest:

           

Unaffiliated issuers

                          37  
  

 

 

 

Total investment income

     456,585        530,227        715,520        136,732  
  

 

 

 

Expenses:

           

Management fees (Note 3a)

     12,821        12,935        116,142        3,036  

Other

     22                       
  

 

 

 

Total expenses

     12,843        12,935        116,142        3,036  
  

 

 

 

Net investment income

     443,742        517,292        599,378        133,696  
  

 

 

 

Realized and unrealized gains (losses):

           

Net realized gain (loss) from:

           

Investments:

           

Unaffiliated issuers

     (539,191      (797,621      (1,460,849      (96,290

In-kind redemptions

     821,012        210,305                

Foreign currency transactions

     (43      (107      (153,763      (745

Futures contracts

     (10,835      (2,161      4,985         
  

 

 

 

Net realized gain (loss)

     270,943        (589,584      (1,609,627      (97,035
  

 

 

 

Net change in unrealized appreciation (depreciation) on:

           

Investments:

           

Unaffiliated issuers

     248,165        (625,796      (7,898,915      215,951  

Translation of other assets and liabilities denominated in foreign currencies

     (118      35        1,138        34  

Futures contracts

            477        (1,364       

Change in deferred taxes on unrealized appreciation

                   850,370         
  

 

 

 

Net change in unrealized appreciation (depreciation)

     248,047        (625,284      (7,048,771      215,985  
  

 

 

 

Net realized and unrealized gain (loss)

     518,990        (1,214,868      (8,658,398      118,950  
  

 

 

 

Net increase (decrease) in net assets resulting from operations

     $  962,732        $  (697,576      $(8,059,020      $252,646  
  

 

 

 
           

aForeign taxes withheld on dividends

     $71,663        $443        $219,492        $23,212  
  

 

 

 

 

           
312             

Annual Report    |   The accompanying notes are an integral part of these financial statements.

  franklintempleton.com


FRANKLIN TEMPLETON ETF TRUST

FINANCIAL STATEMENTS

 

Statements of Operations (continued)

for the year ended March 31, 2023

 

 

     Franklin FTSE
Japan ETF
     Franklin FTSE
Japan Hedged ETF
     Franklin FTSE
Latin America ETF
     Franklin FTSE
Mexico ETF
 

 

 

Investment income:

           

Dividends: (net of foreign taxes)a

           

Unaffiliated issuers

     $21,871,300        $    476,413        $ 4,057,749        $  421,658  

Non-cash dividends

                          64,977  

Interest from securities loaned (Note 1d):

           

Non-Controlled affiliates (Note 3c)

     10,989                       
  

 

 

 

Total investment income

     21,882,289        476,413        4,057,749        486,635  
  

 

 

 

Expenses:

           

Management fees (Note 3a)

     731,006        20,638        93,144        24,713  

Other

     323        10                
  

 

 

 

Total expenses

     731,329        20,648        93,144        24,713  

Expenses waived/paid by affiliates (Note 3c)

     (1,696      (523              
  

 

 

 

Net expenses

     729,633        20,125        93,144        24,713  
  

 

 

 

Net investment income

     21,152,656        456,288        3,964,605        461,922  
  

 

 

 

Realized and unrealized gains (losses):

           

Net realized gain (loss) from:

           

Investments:

           

Unaffiliated issuers

     (10,941,946      (3,889,020      (1,454,275      (225,846

In-kind redemptions

     6,334,028        1,515,186               462,021  

Foreign currency transactions

     (477,798      (20,515      (117,101      (327

Forward exchange contracts

            2,715,905                

Futures contracts

     354,956        4,773        (99,250      (1,730
  

 

 

 

Net realized gain (loss)

     (4,730,760      326,329        (1,670,626      234,118  
  

 

 

 

Net change in unrealized appreciation (depreciation) on:

           

Investments:

           

Unaffiliated issuers

     (55,828,260      1,551,360        4,569,870        1,254,910  

Translation of other assets and liabilities denominated in foreign currencies

     (54,841      (1,653      6,467        107  

Futures contracts

     14,541        832        (15,889       

Forward exchange contracts

            (797,600              
  

 

 

 

Net change in unrealized appreciation (depreciation)

     (55,868,560      752,939        4,560,448        1,255,017  
  

 

 

 

Net realized and unrealized gain (loss)

     (60,599,320      1,079,268        2,889,822        1,489,135  
  

 

 

 

Net increase (decrease) in net assets resulting from operations

     $(39,446,664      $  1,535,556        $ 6,854,427        $1,951,057  
  

 

 

 
           

aForeign taxes withheld on dividends

     $2,426,823        $52,376        $242,662        $33,514  
  

 

 

 

 

           
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             313


FRANKLIN TEMPLETON ETF TRUST

FINANCIAL STATEMENTS

 

Statements of Operations (continued)

for the year ended March 31, 2023

 

 

     Franklin FTSE
Saudi Arabia ETF
     Franklin FTSE
South Africa ETF
     Franklin FTSE
South Korea ETF
     Franklin FTSE
Switzerland ETF
 

 

 

Investment income:

           

Dividends: (net of foreign taxes)a

           

Unaffiliated issuers

     $ 282,081        $   144,621        $ 2,548,524        $ 1,175,893  

Non-cash dividends

            24,173                

Interest:

           

Unaffiliated issuers

                   8,463         
  

 

 

 

Total investment income

     282,081        168,794        2,556,987        1,175,893  
  

 

 

 

Expenses:

           

Management fees (Note 3a)

     25,252        7,608        93,962        45,437  

Other

                          1,349  
  

 

 

 

Total expenses

     25,252        7,608        93,962        46,786  

Expenses waived/paid by affiliates (Note 3c)

                   (6       
  

 

 

 

Net expenses

     25,252        7,608        93,956        46,786  
  

 

 

 

Net investment income

     256,829        161,186        2,463,031        1,129,107  
  

 

 

 

Realized and unrealized gains (losses):

           

Net realized gain (loss) from:

           

Investments:

           

Unaffiliated issuers

     (84,402      (135,018      (3,827,692      (799,546

In-kind redemptions

            182,042               926,985  

Foreign currency transactions

     (5,043      (2,257      (156,508      4,604  

Forward exchange contracts

     1                       

Futures contracts

                   116,088        (97,288
  

 

 

 

Net realized gain (loss)

     (89,444      44,767        (3,868,112      34,755  
  

 

 

 

Net change in unrealized appreciation (depreciation) on:

           

Investments:

           

Unaffiliated issuers

     (908,728      (1,673,931      (2,418,540      (3,646,051

Translation of other assets and liabilities denominated in foreign currencies

     103        309        (29,194      (180

Futures contracts

                   (12,915      3,897  
  

 

 

 

Net change in unrealized appreciation (depreciation)

     (908,625      (1,673,622      (2,460,649      (3,642,334
  

 

 

 

Net realized and unrealized gain (loss)

     (998,069      (1,628,855      (6,328,761      (3,607,579
  

 

 

 

Net increase (decrease) in net assets resulting from operations

     $(741,240      $(1,467,669      $(3,865,730      $(2,478,472
  

 

 

 
                             

aForeign taxes withheld on dividends

     $13,410        $25,219        $504,329        $188,331  
  

 

 

 

 

           
314             

Annual Report    |   The accompanying notes are an integral part of these financial statements.

  franklintempleton.com


FRANKLIN TEMPLETON ETF TRUST

FINANCIAL STATEMENTS

 

Statements of Operations (continued)

for the year ended March 31, 2023

 

 

     Franklin FTSE
Taiwan ETF
     Franklin FTSE
United Kingdom ETF
 

 

 

Investment income:

 

Dividends: (net of foreign taxes)a

 

Unaffiliated issuers

     $ 1,659,413        $ 21,250,677  

Interest:

 

Unaffiliated issuers

            4,351  

Interest from securities loaned (Note 1d):

 

Unaffiliated issuers (net of fees and rebates)

            19,311  

Non-Controlled affiliates (Note 3c)

            7,535  
  

 

 

 

Total investment income

     1,659,413        21,281,874  
  

 

 

 

Expenses:

 

Management fees (Note 3a)

     84,970        457,578  
  

 

 

 

Total expenses

     84,970        457,578  

Expenses waived/paid by affiliates (Note 3c)

            (1,339
  

 

 

 

Net expenses

     84,970        456,239  
  

 

 

 

Net investment income

     1,574,443        20,825,635  
  

 

 

 

Realized and unrealized gains (losses):

 

Net realized gain (loss) from:

 

Investments:

     

Unaffiliated issuers

     (1,909,374      (11,493,177

In-kind redemptions

            3,462,099  

Foreign currency transactions

     (76,972      (570,016

Futures contracts

     589        (107,586
  

 

 

 

Net realized gain (loss)

     (1,985,757      (8,708,680
  

 

 

 

Net change in unrealized appreciation (depreciation) on:

 

Investments:

 

Unaffiliated issuers

     (1,986,237      (35,514,032

Translation of other assets and liabilities denominated in foreign currencies

     4,476        47,175  

Futures contracts

            (203,775
  

 

 

 

Net change in unrealized appreciation (depreciation)

     (1,981,761      (35,670,632
  

 

 

 

Net realized and unrealized gain (loss)

     (3,967,518      (44,379,312
  

 

 

 

Net increase (decrease) in net assets resulting from operations

     $(2,393,075      $(23,553,677
  

 

 

 
               

aForeign taxes withheld on dividends

     $404,157        $35,421  
  

 

 

 

 

           
franklintempleton.com  

The accompanying notes are an integral part of these financial statements.    |   Annual Report

             315


FRANKLIN TEMPLETON ETF TRUST

FINANCIAL STATEMENTS

 

Statements of Changes in Net Assets

 

 

     Franklin FTSE Asia ex Japan ETF      Franklin FTSE Australia ETF  
  

 

 

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

 

 

Increase (decrease) in net assets:

           

Operations:

           

Net investment income

     $     868,301        $     664,421        $   1,689,308        $   1,235,873  

Net realized gain (loss)

     (2,158,882      (979,634      (237,728      (464,945

Net change in unrealized appreciation (depreciation)

     (2,638,071      (3,275,420      (4,246,611      2,892,489  
  

 

 

 

Net increase (decrease) in net assets resulting from operations

     (3,928,652      (3,590,633      (2,795,031      3,663,417  
  

 

 

 

Distributions to shareholders (Note 1f)

     (845,059      (744,268      (1,647,793      (1,262,140
  

 

 

 

Capital share transactions: (Note 2)

     (3,997,011      8,769,376        3,911,576        4,271,838  
  

 

 

 

Net increase (decrease) in net assets

     (8,770,722      4,434,475        (531,248      6,673,115  

Net assets:

           

Beginning of year

     38,751,051        34,316,576        29,968,184        23,295,069  
  

 

 

 

End of year

     $29,980,329        $38,751,051        $29,436,936        $29,968,184  
  

 

 

 

 

           
316             

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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  
  

 

 

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

 

 

Increase (decrease) in net assets:

           

Operations:

           

Net investment income

     $  35,628,028        $  20,729,461        $   6,761,710        $    725,501  

Net realized gain (loss)

     (94,944,037      (18,881,968      3,339,371        (201,770

Net change in unrealized appreciation (depreciation)

     (45,250,023      69,556,549        (27,287,099      5,384,898  
  

 

 

 

Net increase (decrease) in net assets resulting from operations

     (104,566,032      71,404,042        (17,186,018      5,908,629  
  

 

 

 

Distributions to shareholders (Note 1f)

     (37,484,866      (16,614,538      (5,031,676      (639,656
  

 

 

 

Capital share transactions: (Note 2)

     (116,854,829      365,373,593        258,855,931        13,859,588  
  

 

 

 

Net increase (decrease) in net assets

     (258,905,727      420,163,097        236,638,237        19,128,561  

Net assets:

           

Beginning of year

     527,819,503        107,656,406        43,288,811        24,160,250  
  

 

 

 

End of year

     $268,913,776        $527,819,503        $279,927,048        $43,288,811  
  

 

 

 

 

           
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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  
  

 

 

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

 

 

Increase (decrease) in net assets:

           

Operations:

           

Net investment income

     $   2,972,502        $  2,209,264        $   3,712,113        $   6,105,734  

Net realized gain (loss)

     (8,490,513      (4,775,014      4,478,468        26,177,110  

Net change in unrealized appreciation (depreciation)

     (280,918      (42,274,445      (20,843,640      (24,258,897
  

 

 

 

Net increase (decrease) in net assets resulting from operations

     (5,798,929      (44,840,195      (12,653,059      8,023,947  
  

 

 

 

Distributions to shareholders (Note 1f)

     (2,755,725      (1,744,579      (3,354,521      (7,497,235
  

 

 

 

Capital share transactions: (Note 2)

     11,335,252        37,256,442        (57,291,354      (44,796,057
  

 

 

 

Net increase (decrease) in net assets

     2,780,598        (9,328,332      (73,298,934      (44,269,345

Net assets:

           

Beginning of year

     111,453,758        120,782,090        184,857,082        229,126,427  
  

 

 

 

End of year

     $114,234,356        $111,453,758        $111,558,148        $184,857,082  
  

 

 

 

 

           
318             

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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  
  

 

 

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

 

 

Increase (decrease) in net assets:

           

Operations:

           

Net investment income

     $     581,317        $     515,076        $    284,539        $     268,585  

Net realized gain (loss)

     220,188        758,844        (280,243      (84,036

Net change in unrealized appreciation (depreciation)

     (1,004,928      (221,066      (129,793      (57,195
  

 

 

 

Net increase (decrease) in net assets resulting from operations

     (203,423      1,052,854        (125,497      127,354  
  

 

 

 

Distributions to shareholders (Note 1f)

     (3,158,611      (666,937      (227,103      (270,848
  

 

 

 

Capital share transactions: (Note 2)

     (4,169,747      5,879,630        (3,601,500      3,120,862  
  

 

 

 

Net increase (decrease) in net assets

     (7,531,781      6,265,547        (3,954,100      2,977,368  

Net assets:

           

Beginning of year

     21,694,673        15,429,126        10,087,881        7,110,513  
  

 

 

 

End of year

     $14,162,892        $21,694,673        $6,133,781        $10,087,881  
  

 

 

 

 

           
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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  
  

 

 

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

 

 

Increase (decrease) in net assets:

           

Operations:

           

Net investment income

     $     443,742        $     423,991        $     517,292        $     489,122  

Net realized gain (loss)

     270,943        (191,927      (589,584      (407,601

Net change in unrealized appreciation (depreciation)

     248,047        (2,762,955      (625,284      (2,850,341
  

 

 

 

Net increase (decrease) in net assets resulting from operations

     962,732        (2,530,891      (697,576      (2,768,820
  

 

 

 

Distributions to shareholders (Note 1f)

     (449,481      (404,523      (536,059      (478,429
  

 

 

 

Capital share transactions: (Note 2)

     395,253        10,617,319        729,118        3,959,042  
  

 

 

 

Net increase (decrease) in net assets

     908,504        7,681,905        (504,517      711,793  

Net assets:

           

Beginning of year

     16,774,709        9,092,804        17,573,390        16,861,597  
  

 

 

 

End of year

     $17,683,213        $16,774,709        $17,068,873        $17,573,390  
  

 

 

 

 

           
320             

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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  
  

 

 

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

 

 

Increase (decrease) in net assets:

           

Operations:

           

Net investment income

     $    599,378        $    318,604        $     133,696        $     127,754  

Net realized gain (loss)

     (1,609,627      (535,539      (97,035      (26,481

Net change in unrealized appreciation (depreciation)

     (7,048,771      3,883,589        215,985        (211,281
  

 

 

 

Net increase (decrease) in net assets resulting from operations

     (8,059,020      3,666,654        252,646        (110,008
  

 

 

 

Distributions to shareholders (Note 1f)

     (445,431      (1,055,912      (160,658      (166,253
  

 

 

 

Capital share transactions: (Note 2)

     57,341,977        23,985,026        1,248,714         
  

 

 

 

Net increase (decrease) in net assets

     48,837,526        26,595,768        1,340,702        (276,261

Net assets:

           

Beginning of year

     50,139,916        23,544,148        3,698,112        3,974,373  
  

 

 

 

End of year

     $98,977,442        $50,139,916        $5,038,814        $3,698,112  
  

 

 

 

 

           
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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  
  

 

 

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

 

 

Increase (decrease) in net assets:

           

Operations:

           

Net investment income

       $ 21,152,656          $ 14,429,061            $ 456,288          $ 366,040  

Net realized gain (loss)

     (4,730,760      12,140,033        326,329        1,786,855  

Net change in unrealized appreciation (depreciation)

     (55,868,560      (89,344,816      752,939        (2,137,629
  

 

 

 

Net increase (decrease) in net assets resulting from operations

     (39,446,664      (62,775,722      1,535,556        15,266  
  

 

 

 

Distributions to shareholders (Note 1f)

     (15,080,965      (15,304,771      (6,293,059      (162,493
  

 

 

 

Capital share transactions: (Note 2)

     265,693,564        268,783,660        (6,677,798      303,836  
  

 

 

 

Net increase (decrease) in net assets

     211,165,935        190,703,167        (11,435,301      156,609  

Net assets:

           

Beginning of year

     789,637,287        598,934,120        24,719,795        24,563,186  
  

 

 

 

End of year

       $ 1,000,803,222          $ 789,637,287            $ 13,284,494          $ 24,719,795  
  

 

 

 

 

           
322             

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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  
  

 

 

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

Year Ended

March 31, 2023

     Year Ended
March 31, 2022
 

 

 

Increase (decrease) in net assets:

           

Operations:

           

Net investment income

         $ 3,964,605            $ 322,765            $ 461,922            $ 254,422  

Net realized gain (loss)

     (1,670,626      (234,913      234,118        (158,105

Net change in unrealized appreciation (depreciation)

     4,560,448        1,079,782        1,255,017        2,181,332  
  

 

 

 

Net increase (decrease) in net assets resulting from operations

     6,854,427        1,167,634        1,951,057        2,277,649  
  

 

 

 

Distributions to shareholders (Note 1f)

     (3,573,506      (304,300      (447,955      (302,647
  

 

 

 

Capital share transactions: (Note 2)

     56,516,479        2,231,798        11,014,721        4,861,121  
  

 

 

 

Net increase (decrease) in net assets

     59,797,400        3,095,132        12,517,823        6,836,123  

Net assets:

           

Beginning of year

     7,574,832        4,479,700        12,372,025        5,535,902  
  

 

 

 

End of year

         $ 67,372,232            $ 7,574,832            $ 24,889,848            $ 12,372,025  
  

 

 

 

 

           
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FRANKLIN TEMPLETON ETF TRUST

FINANCIAL STATEMENTS

 

Statements of Changes in Net Assets (continued)

 

     Franklin FTSE Saudi Arabia ETF      Franklin FTSE South Africa ETF  
  

 

 

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

 

 

Increase (decrease) in net assets:

           

Operations:

           

Net investment income

         $ 256,829            $ 62,016            $ 161,186            $ 141,667  

Net realized gain (loss)

     (89,444      42,036        44,767        (81,742

Net change in unrealized appreciation (depreciation)

     (908,625      1,061,595        (1,673,622      824,250  
  

 

 

 

Net increase (decrease) in net assets resulting from operations

     (741,240      1,165,647        (1,467,669      884,175  
  

 

 

 

Distributions to shareholders (Note 1f)

     (78,128      (68,376      (191,901      (111,346
  

 

 

 

Capital share transactions: (Note 2)

     18,562,690               (2,054,548      2,562,673  
  

 

 

 

Net increase (decrease) in net assets

     17,743,322        1,097,271        (3,714,118      3,335,502  

Net assets:

           

Beginning of year

     4,130,310        3,033,039        5,957,745        2,622,243  
  

 

 

 

End of year

         $ 21,873,632            $ 4,130,310            $ 2,243,627            $ 5,957,745  
  

 

 

 

 

           
324             

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FRANKLIN TEMPLETON ETF TRUST

FINANCIAL STATEMENTS

 

Statements of Changes in Net Assets (continued)

 

     Franklin FTSE South Korea ETF      Franklin FTSE Switzerland ETF  
  

 

 

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

 

 

Increase (decrease) in net assets:

           

Operations:

           

Net investment income

         $ 2,463,031            $ 1,268,057            $ 1,129,107            $ 999,855  

Net realized gain (loss)

     (3,868,112      (5,450,316      34,755        3,329,359  

Net change in unrealized appreciation (depreciation)

     (2,460,649      (8,014,155      (3,642,334      2,599,949  
  

 

 

 

Net increase (decrease) in net assets resulting from operations

     (3,865,730      (12,196,414      (2,478,472      6,929,163  
  

 

 

 

Distributions to shareholders (Note 1f)

     (2,183,845      (1,354,645      (1,004,310      (1,077,037
  

 

 

 

Capital share transactions: (Note 2)

     237,736,926        11,946,711        5,830,307        (6,828,650
  

 

 

 

Net increase (decrease) in net assets

     231,687,351        (1,604,348      2,347,525        (976,524

Net assets:

           

Beginning of year

     61,361,442        62,965,790        47,593,224        48,569,748  
  

 

 

 

End of year

         $ 293,048,793            $ 61,361,442            $ 49,940,749            $ 47,593,224  
  

 

 

 

 

           
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FRANKLIN TEMPLETON ETF TRUST

FINANCIAL STATEMENTS

 

Statements of Changes in Net Assets (continued)

 

     Franklin FTSE Taiwan ETF      Franklin FTSE United Kingdom ETF  
  

 

 

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

 

 

Increase (decrease) in net assets:

           

Operations:

           

Net investment income

         $ 1,574,443            $ 990,911            $ 20,825,635            $ 15,398,911  

Net realized gain (loss)

     (1,985,757      (550,668      (8,708,680      (202,105

Net change in unrealized appreciation (depreciation)

     (1,981,761      2,783,522        (35,670,632      8,007,752  
  

 

 

 

Net increase (decrease) in net assets resulting from operations

     (2,393,075      3,223,765        (23,553,677      23,204,558  
  

 

 

 

Distributions to shareholders (Note 1f)

     (1,549,538      (1,073,757      (20,583,824      (11,671,197
  

 

 

 

Capital share transactions: (Note 2)

     97,369,890        8,619,703        (474,084      396,366,561  
  

 

 

 

Net increase (decrease) in net assets

     93,427,277        10,769,711        (44,611,585      407,899,922  

Net assets:

           

Beginning of year

     43,666,550        32,896,839        613,572,500        205,672,578  
  

 

 

 

End of year

         $ 137,093,827            $ 43,666,550            $ 568,960,915            $ 613,572,500  
  

 

 

 

 

           
326             

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FRANKLIN TEMPLETON ETF TRUST

 

Notes to Financial Statements

 

1. Organization and Significant Accounting Policies

Franklin Templeton ETF Trust (Trust) is registered under the Investment Company Act of 1940 (1940 Act) as an open-end management investment company consisting of forty-eight separate funds, twenty-two of which are included in this report (Funds). The Funds follow the accounting and reporting guidance in Financial Accounting Standards Board ("FASB") Accounting Standard Codification Topic 946, Financial Services - Investment Companies ("ASC 946") and applies the specialized accounting and reporting guidance in U.S. Generally Accepted Accounting Principles (U.S. GAAP), including, but not limited to, ASC 946. Each of the Funds are an exchange traded fund (ETF) and seek to provide the investment results that closely correspond, before fees and expenses, to the performance of each Fund’s corresponding underlying index.

The following summarizes the Funds’ significant accounting policies.

a. Financial Instrument Valuation

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

Equity securities and derivative financial instruments listed on an exchange or on the NASDAQ National Market System are valued at the last quoted sale price or the official closing price of the day, respectively. Foreign equity securities are valued as of the close of trading on the foreign stock exchange on which the security is primarily traded or as of 4 p.m. Eastern time. The value is then converted into its U.S. dollar equivalent at the foreign exchange rate in effect at 4 p.m. London time on the day that the value of the security is determined. Over-the-counter (OTC) securities are valued

within the range of the most recent quoted bid and ask prices. Securities that trade in multiple markets or on multiple exchanges are valued according to the broadest and most representative market. Certain equity securities are valued based upon fundamental characteristics or relationships to similar securities.

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

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

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

 

           
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FRANKLIN TEMPLETON ETF TRUST

NOTES TO FINANCIAL STATEMENTS

 

1. Organization and Significant Accounting Policies (continued)

a. Financial Instrument Valuation (continued)

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

b. Foreign Currency Translation

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

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

 

           
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FRANKLIN TEMPLETON ETF TRUST

NOTES TO FINANCIAL STATEMENTS

 

1. Organization and Significant Accounting Policies (continued)

c. Derivative Financial Instruments (continued)

with the applicable counterparty exceeds the minimum transfer amount, which typically ranges from $100,000 to $250,000, and can vary depending on the counterparty and the type of agreement. Generally, collateral is determined at the close of Fund business each day and any additional collateral required due to changes in derivative values may be delivered by the Fund or the counterparty the next business day, or within a few business days. Collateral pledged and/or received by the Fund, if any, is held in segregated accounts with the Fund’s custodian/counterparty broker and can be in the form of cash and/or securities. Unrestricted cash may be invested according to the Funds’ investment objectives. To the extent that the amounts due to the Fund from its counterparties are not subject to collateralization or are not fully collateralized, the Fund bears the risk of loss from counterparty non-performance.

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

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

See Note 7 regarding other derivative information.

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

The Funds may be subject to foreign taxation related to income received, capital gains on the sale of securities and certain foreign currency transactions in the foreign jurisdictions in which the Funds invests. Foreign taxes, if any, are recorded based on the tax regulations and rates that exist in the foreign markets in which the Funds invest. When a capital gain tax is determined to apply, Funds records an estimated deferred tax liability in an amount that would be payable if the securities were disposed of on the valuation date.

Each Fund may recognize an income tax liability related to its uncertain tax positions under U.S. GAAP when the uncertain tax position has a less than 50% probability that it will be sustained upon examination by the tax authorities based on its technical merits. As of March 31, 2023, Fund has determined that no tax liability is required in its financial statements related to uncertain tax positions for any open tax years (or expected to be taken in future tax years). Open tax years are those that remain subject to examination and are based on the statute of limitations in each jurisdiction in which the Fund invests.

 

           
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FRANKLIN TEMPLETON ETF TRUST

NOTES TO FINANCIAL STATEMENTS

 

1. Organization and Significant Accounting Policies (continued)

e. Income and Deferred Taxes (continued)

As a result of several court cases, in certain countries across the European Union the Fund filed additional tax reclaims for previously withheld taxes on dividends earned in those countries (EU reclaims). Income recognized, if any, for EU reclaims is reflected as European Union tax reclaims in the Statement of Operations and any related receivable is reflected as European Union tax reclaims receivable in the Statement of Assets and Liabilities. Any fees associated with these filings are reflected as European Union tax reclaim contingent fees in the Statement of Operations. When uncertainty exists as to the ultimate resolution of these proceedings, the likelihood of receipt of these EU reclaims, and the potential timing of payment, no amounts are reflected in the financial statements. For U.S. income tax purposes, EU reclaims received by the Fund, if any, reduce the amount of foreign taxes Fund shareholders can use as tax deductions or credits on their income tax returns.

f. Security Transactions, Investment Income, Expenses and Distributions

Security transactions are accounted for on trade date. Realized gains and losses on security transactions are determined on a specific identification basis. Interest Income and estimated expenses are accrued daily. Dividend income is recorded on the ex-dividend date except for certain dividends from securities where the dividend rate is not available. In such cases, the dividend is recorded as soon as the information is received by the Funds. Distributions to shareholders are recorded on the ex-dividend date. Distributable earnings are determined according to income tax regulations (tax basis) and may differ from earnings recorded in accordance with U.S. GAAP. These differences

may be permanent or temporary. Permanent differences are reclassified among capital accounts to reflect their tax character. These reclassifications have no impact on net assets or the results of operations. Temporary differences are not reclassified, as they may reverse in subsequent periods.

Common expenses incurred by the Trust are allocated among the Funds based on the ratio of net assets of each Funds to the combined net assets of the Trust. Certain Fund specific expenses are allocated directly to the Fund that incurred the expense. These expenses are paid by the Fund or by the investment manager, as applicable, according to the terms of the unified management fee agreement.

g. Accounting Estimates

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

h. Guarantees and Indemnifications

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

 

2. Shares of Beneficial Interest

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

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

 

           
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FRANKLIN TEMPLETON ETF TRUST

NOTES TO FINANCIAL STATEMENTS

 

2. Shares of Beneficial Interest (continued)

 

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

At March 31, 2023, there were an unlimited number of shares authorized (without par value). Transactions in the Funds’ shares were as follows:

 

     Franklin FTSE Asia ex Japan ETF  
  

 

 

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

 

 

 
     Shares      Amount           Shares         Amount      

 

 

Shares sold

          $ 13,819         400,000     $ 8,769,376  

Shares redeemed

     (200,000      (4,010,830              
  

 

 

 

Net increase (decrease)

     (200,000    $ (3,997,011       400,000     $ 8,769,376  
  

 

 

 
     Franklin FTSE Australia ETF  
  

 

 

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

 

 

 
     Shares      Amount           Shares     Amount  

 

 

Shares sold

     200,000      $ 5,212,830         150,000     $ 4,271,838  

Shares redeemed

     (50,000      (1,301,254              
  

 

 

 

Net increase (decrease)

     150,000      $ 3,911,576         150,000     $ 4,271,838  
  

 

 

 
     Franklin FTSE Brazil ETF  
  

 

 

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

 

 

 
     Shares      Amount           Shares     Amount  

 

 

Shares sold

     7,000,000      $ 130,953,951         17,500,000     $ 372,085,342  

Shares redeemed

     (13,400,000      (247,808,780       (300,000     (6,711,749
  

 

 

 

Net increase (decrease)

     (6,400,000    $ (116,854,829       17,200,000     $ 365,373,593  
  

 

 

 
     Franklin FTSE Canada ETF  
  

 

 

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

 

 

 
     Shares      Amount           Shares     Amount  

 

 

Shares sold

     11,250,000      $ 360,676,656         400,000     $ 13,859,588  

Shares redeemed

     (3,350,000      (101,820,725              
  

 

 

 

Net increase (decrease)

     7,900,000      $ 258,855,931         400,000     $ 13,859,588  
  

 

 

 

 

           
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NOTES TO FINANCIAL STATEMENTS

 

2. Shares of Beneficial Interest (continued)

 

     Franklin FTSE China ETF  
  

 

 

 
    

Year Ended

March 31, 2023

          

Year Ended

March 31, 2022

 
  

 

 

 
     Shares      Amount            Shares          Amount      

 

 

Shares sold

     600,000      $ 11,335,252          1,600,000      $ 43,703,237  

Shares redeemed

                     (200,000      (6,446,795
  

 

 

 

Net increase (decrease)

     600,000      $ 11,335,252          1,400,000      $ 37,256,442  
  

 

 

 
     Franklin FTSE Europe ETF  
  

 

 

 
    

Year Ended

March 31, 2023

          

Year Ended

March 31, 2022

 
  

 

 

 
     Shares      Amount            Shares      Amount  

 

 

Shares sold

     2,800,000      $ 71,589,590          1,400,000      $ 38,599,643  

Shares redeemed

     (5,400,000      (128,880,944        (3,000,000      (83,395,700
  

 

 

 

Net increase (decrease)

     (2,600,000    $ (57,291,354        (1,600,000    $ (44,796,057
  

 

 

 
     Franklin FTSE Europe Hedged ETF  
  

 

 

 
    

Year Ended

March 31, 2023

          

Year Ended

March 31, 2022

 
  

 

 

 
     Shares      Amount            Shares      Amount  

 

 

Shares sold

     400,000      $ 10,645,855          200,000      $ 5,879,630  

Shares redeemed

     (600,000      (14,815,602                
  

 

 

 

Net increase (decrease)

     (200,000    $ (4,169,747        200,000      $ 5,879,630  
  

 

 

 
     Franklin FTSE France ETF  
  

 

 

 
    

Year Ended

March 31, 2023

          

Year Ended

March 31, 2022

 
  

 

 

 
     Shares      Amount            Shares      Amount  

 

 

Shares sold

          $          100,000      $ 3,120,862  

Shares redeemed

     (150,000      (3,601,500                
  

 

 

 

Net increase (decrease)

     (150,000    $ (3,601,500        100,000      $ 3,120,862  
  

 

 

 
     Franklin FTSE Germany ETF  
  

 

 

 
    

Year Ended

March 31, 2023

          

Year Ended

March 31, 2022

 
  

 

 

 
     Shares      Amount            Shares      Amount  

 

 

Shares sold

     300,000      $ 5,539,373          400,000      $ 10,617,319  

Shares redeemed

     (250,000      (5,144,120                
  

 

 

 

Net increase (decrease)

     50,000      $ 395,253          400,000      $ 10,617,319  
  

 

 

 

 

           
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NOTES TO FINANCIAL STATEMENTS

 

2. Shares of Beneficial Interest (continued)

 

     Franklin FTSE Hong Kong ETF  
  

 

 

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

 

 

 
     Shares      Amount            Shares          Amount      

 

 

Shares sold

     200,000      $ 4,048,817          150,000      $ 3,959,042  

Shares redeemed

     (150,000      (3,319,699                
  

 

 

 

Net increase (decrease)

     50,000      $ 729,118          150,000      $ 3,959,042  
  

 

 

 
     Franklin FTSE India ETF
 
  

 

 

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

 

 

 
     Shares      Amount            Shares      Amount  

 

 

Shares sold

     2,000,000      $ 57,341,977          750,000      $ 23,985,026  
  

 

 

 

Net increase (decrease)

     2,000,000      $ 57,341,977          750,000      $ 23,985,026  
  

 

 

 
     Franklin FTSE Italy ETF  
  

 

 

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

 

 

 
     Shares      Amount            Shares      Amount  

 

 

Shares sold

     50,000      $ 1,248,714               $  
  

 

 

 

Net increase (decrease)

     50,000      $ 1,248,714               $  
  

 

 

 
     Franklin FTSE Japan ETF  
  

 

 

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

 

 

 
     Shares      Amount            Shares      Amount  

 

 

Shares sold

     17,400,000      $ 429,036,842          11,400,000      $ 340,542,812  

Shares redeemed

     (7,200,000      (163,343,278        (2,400,000      (71,759,152
  

 

 

 

Net increase (decrease)

     10,200,000      $ 265,693,564          9,000,000      $ 268,783,660  
  

 

 

 
     Franklin FTSE Japan Hedged ETF  
  

 

 

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

 

 

 
     Shares      Amount            Shares      Amount  

 

 

Shares sold

     200,000      $ 6,015,210          400,000      $ 12,446,606  

Shares redeemed

     (500,000      (12,693,008        (400,000      (12,142,770
  

 

 

 

Net increase (decrease)

     (300,000    $ (6,677,798             $ 303,836  
  

 

 

 

 

           
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FRANKLIN TEMPLETON ETF TRUST

NOTES TO FINANCIAL STATEMENTS

 

2. Shares of Beneficial Interest (continued)

 

     Franklin FTSE Latin America ETF  
  

 

 

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

 

 

 
     Shares      Amount            Shares          Amount      

 

 

Shares sold

     3,000,000      $ 56,516,479          100,000      $ 2,231,798  
  

 

 

 

Net increase (decrease)

     3,000,000      $ 56,516,479          100,000      $ 2,231,798  
  

 

 

 
     Franklin FTSE Mexico ETF  
  

 

 

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

 

 

 
     Shares      Amount            Shares      Amount  

 

 

Shares sold

     450,000      $ 12,282,600          200,000      $ 4,861,121  

Shares redeemed

     (50,000      (1,267,879                
  

 

 

 

Net increase (decrease)

     400,000      $ 11,014,721          200,000      $ 4,861,121  
  

 

 

 
     Franklin FTSE Saudi Arabia ETF  
  

 

 

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

 

 

 
     Shares      Amount            Shares      Amount  

 

 

Shares sold

     550,000      $ 18,562,690               $  
  

 

 

 

Net increase (decrease)

     550,000      $ 18,562,690               $  
  

 

 

 
     Franklin FTSE South Africa ETF  
  

 

 

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

 

 

 
     Shares      Amount            Shares      Amount  

 

 

Shares sold

          $          100,000      $ 2,562,673  

Shares redeemed

     (100,000      (2,054,548                
  

 

 

 

Net increase (decrease)

     (100,000    $ (2,054,548        100,000      $ 2,562,673  
  

 

 

 
     Franklin FTSE South Korea ETF  
  

 

 

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

 

 

 
     Shares      Amount            Shares      Amount  

 

 

Shares sold

     11,500,000      $ 237,736,926          800,000      $ 23,052,455  

Shares redeemed

                     (400,000      (11,105,744
  

 

 

 

Net increase (decrease)

     11,500,000      $ 237,736,926          400,000      $ 11,946,711  
  

 

 

 

 

           
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NOTES TO FINANCIAL STATEMENTS

 

2. Shares of Beneficial Interest (continued)

 

     Franklin FTSE Switzerland ETF  
  

 

 

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

 

 

 
     Shares      Amount            Shares      Amount  

 

 

Shares sold

     500,000      $ 14,529,344          300,000      $ 10,413,668  

Shares redeemed

     (300,000      (8,699,037        (500,000      (17,242,318
  

 

 

 

Net increase (decrease)

     200,000      $ 5,830,307          (200,000    $ (6,828,650
  

 

 

 
     Franklin FTSE Taiwan ETF  
  

 

 

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

 

 

 
     Shares      Amount            Shares          Amount      

 

 

Shares sold

     2,800,000      $ 100,458,761          300,000      $ 13,007,178  

Shares redeemed

     (100,000      (3,088,871        (100,000      (4,387,475
  

 

 

 

Net increase (decrease)

     2,700,000      $ 97,369,890          200,000      $ 8,619,703  
  

 

 

 
     Franklin FTSE United Kingdom ETF  
  

 

 

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

 

 

 
     Shares      Amount            Shares      Amount  

 

 

Shares sold

     7,150,000      $ 165,942,304          16,400,000      $ 419,981,074  

Shares redeemed

     (7,750,000      (166,416,388        (950,000      (23,614,513
  

 

 

 

Net increase (decrease)

     (600,000    $ (474,084        15,450,000      $ 396,366,561  
  

 

 

 

3. Transactions with Affiliates

Franklin Resources, Inc. is the holding company for various subsidiaries that together are referred to as Franklin Templeton. Certain officers and trustees of the Funds are also officers and/or directors of the following subsidiaries:

 

Subsidiary    Affiliation

Franklin Advisers, Inc (Advisers)

  

Investment manager

Franklin Advisory Services, LLC (FASL)

  

Investment manager

Franklin Templeton Services, LLC (FT Services)

  

Administrative manager

Franklin Distributors, LLC (Distributors)

  

Principal underwriter

 

           
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FRANKLIN TEMPLETON ETF TRUST

NOTES TO FINANCIAL STATEMENTS

 

3. Transactions with Affiliates (continued)

 

a. Management fees

The Funds pay a unified management fee to Advisers whereby Advisers has agreed to reimburse the Funds’ acquired fund fees and expenses (if any) and pay all of the ordinary operating expenses of the Funds, including custody, transfer agency, and Trustee fees and expenses, among others, but excluding payments under the Funds’ Rule 12b-1 plan (if any), brokerage expenses (including any costs incidental to transactions in portfolio securities or instruments), taxes, interest (including borrowing costs and dividend expenses on securities sold short and overdraft charges), litigation expenses (including litigation to which the Trust or a Fund may be a party and indemnification of the Trustees and officers with respect thereto), and other non-routine or extraordinary expenses. Effective March 1, 2022, Franklin Advisory Services, LLC (the fund’s investment manager) has implemented a voluntary waiver of its management fee for the Fund. This voluntary waiver may be eliminated by the investment manager at any time. The fees are based on the average daily net assets of each of the Funds as follows:

 

      Annualized Fee Rate

Franklin FTSE Asia ex Japan ETF

  

0.19%

Franklin FTSE Australia ETF

  

0.09%

Franklin FTSE Brazil ETF

  

0.19%

Franklin FTSE Canada ETF

  

0.09%

Franklin FTSE China ETF

  

0.19%

Franklin FTSE Europe ETF

  

0.09%

Franklin FTSE Europe Hedged ETF

  

0.09%

Franklin FTSE France ETF

  

0.09%

Franklin FTSE Germany ETF

  

0.09%

Franklin FTSE Hong Kong ETF

  

0.09%

Franklin FTSE India ETF

  

0.19%

Franklin FTSE Italy ETF

  

0.09%

Franklin FTSE Japan ETF

  

0.09%

Franklin FTSE Japan Hedged ETF

  

0.09%

Franklin FTSE Latin America ETF

  

0.19%

Franklin FTSE Mexico ETF

  

0.19%

Franklin FTSE Saudi Arabia ETF

  

0.39%

Franklin FTSE South Africa ETF

  

0.19%

Franklin FTSE South Korea ETF

  

0.09%

Franklin FTSE Switzerland ETF

  

0.09%

Franklin FTSE Taiwan ETF

  

0.19%

Franklin FTSE United Kingdom ETF

  

0.09%

b. Administrative Fees

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

 

           
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FRANKLIN TEMPLETON ETF TRUST

NOTES TO FINANCIAL STATEMENTS

 

3. Transactions with Affiliates (continued)

 

c. Investments in Affiliated Management Investment Companies

Certain or all Funds invest in one or more affiliated management investment companies. As defined in the 1940 Act, an investment is deemed to be a “Controlled Affiliate” of a fund when a fund owns, either directly or indirectly, 25% or more of the affiliated fund’s outstanding shares or has the power to exercise control over management or policies of such fund. The Funds do not invest for purposes of exercising a controlling influence over the management or policies. Management fees paid by the Funds are waived on assets invested in the affiliated management investment companies, as noted in the Statements of Operations, in an amount not to exceed the management and administrative fees paid directly or indirectly by each affiliate. During the year ended March 31, 2023, investments in affiliated management investment companies were as follows:

 

    

Value at

Beginning

of Year

    Purchases     Sales    

Realized

Gain (Loss)

   

Net Change in

Unrealized

Appreciation

(Depreciation)

   

Value at

End of

Year

   

Number

of Shares

Held at

End of

Year

   

Investment

Income

 

Franklin FTSE Asia ex

Japan ETF

Non-Controlled Affiliates

                   

Income

from

Securities

loaned


 

                 

 

 

 

Institutional Fiduciary Trust
Money Market Portfolio 4.47%

      $ 6,825     $ 48,550     $ (55,375     $ —       $ —       $               $         10  
           

 

 

 

Franklin FTSE China ETF

Non-Controlled Affiliates

               

Income

from

Securities

loaned

 

 

                 

 

 

 

Institutional Fiduciary Trust
Money Market Portfolio 4.47%

      $ 78,125     $ 1,058,393     $ (1,136,518     $ —       $ —       $               $    1,001  
           

 

 

 

Franklin FTSE Europe

Hedged ETF

Non-Controlled Affiliates

               

Income

from

Securities

loaned

 

                 

 

 

 

Institutional Fiduciary Trust
Money Market Portfolio 4.47%

      $     $ 4,136     $       $ —       $ —       $ 4,136       4,136         $          —  
           

 

 

 

Franklin FTSE Japan ETF

Non-Controlled Affiliates

               

Income

from

Securities

loaned

 

                 

 

 

 

Institutional Fiduciary Trust
Money Market Portfolio 4.47%

      $ 251,746     $ 4,165,547     $       $ —       $ —       $ 4,417,293       4,417,293         $10,989  
           

 

 

 

Franklin FTSE Japan

Hedged ETF

Non-Controlled Affiliates

               

Income from

Securities

loaned

 

                 

 

 

 

Institutional Fiduciary Trust
Money Market Portfolio 4.47%

      $ 695,758     $ 9,497,074     $ (10,192,111     $ —       $ —       $ 721       721         $          —  
           

 

 

 

 

           
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FRANKLIN TEMPLETON ETF TRUST

NOTES TO FINANCIAL STATEMENTS

 

3. Transactions with Affiliates (continued)

c. Investments in Affiliated Management Investment Companies (continued)

 

    

Value at

Beginning

of Year

    Purchases     Sales    

Realized

Gain (Loss)

   

Net Change in

Unrealized

Appreciation

(Depreciation)

   

Value at

End of

Year

   

Number

of Shares

Held at

End of

Year

   

Investment

Income

 

Franklin FTSE United

Kingdom ETF

Non-Controlled Affiliates

                 


Income
from
Securities
loaned
 
 
 
 
               

 

 

 

Institutional Fiduciary Trust Money Market Portfolio 4.47%

    $620,830       $9,249,442       $ (9,870,262     $—       $—     $ 10       10       $  7,535  
           

 

 

 

d. Other Affiliated Transactions

At March 31, 2023, the shares of the Funds were owned by the following entities:

 

Funds    Shares     Percentage of
Outstanding Sharesa
 

 

 
Franklin FTSE Latin America ETF     

Franklin Resources Inc.

     985,000       29.8%  
  

 

 

 
Franklin FTSE South Africa ETF     

Franklin Resources Inc.

     16,000       16.0%  
  

 

 

 
Franklin FTSE Taiwan ETF     

Franklin Resources Inc.

     1,260,000       34.1%  
  

 

 

 
Franklin FTSE United Kingdom ETF     

Franklin Resources Inc.

     2,930,000       12.5%  
  

 

 

 

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

4. Income Taxes

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

 

    

Franklin
FTSE

Asia ex Japan
ETF

   

Franklin

FTSE

Australia

ETF

   

Franklin

FTSE

Brazil

ETF

   

Franklin

FTSE

Canada

ETF

 

 

 
Capital loss carryforwards not subject to expiration:         

Long term

               $   2,978,321     $ 861,861     $ 58,599,726     $ 917,859  

Short term

     773,828       287,758       66,857,630       2,247,375  
  

 

 

 

Total capital loss carryforwards

               $   3,752,149     $   1,149,619     $ 125,457,356     $ 3,165,234  
  

 

 

 

 

           
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FRANKLIN TEMPLETON ETF TRUST

NOTES TO FINANCIAL STATEMENTS

 

4. Income Taxes (continued)

 

    

Franklin

FTSE

China

ETF

   

Franklin

FTSE

Europe

ETF

   

Franklin

FTSE

Europe Hedged

ETF

   

Franklin

FTSE

France

ETF

 

 

 
Capital loss carryforwards not subject to expiration:         

Long term

               $ 13,143,127     $ 3,778,280             $ 185,736             $ 253,790  

Short term

     3,376,115       908,263       211,682       52,788  
  

 

 

 

Total capital loss carryforwards

               $ 16,519,242     $ 4,686,543             $ 397,418             $ 306,578  
  

 

 

 
    

Franklin

FTSE

Germany

ETF

   

Franklin

FTSE

Hong Kong

ETF

   

Franklin

FTSE

India

ETF

   

Franklin

FTSE

Italy

ETF

 

 

 
Capital loss carryforwards not subject to expiration:         

Long term

               $ 744,560             $ 809,586             $ 1,024,623             $ 358,163  

Short term

     207,142       553,844       321,248       22,058  
  

 

 

 

Total capital loss carryforwards

               $ 951,702             $ 1,363,430             $ 1,345,871             $ 380,221  
  

 

 

 
    

Franklin

FTSE

Japan

ETF

   

Franklin

FTSE

Japan Hedged

ETF

   

Franklin

FTSE

Latin America

ETF

   

Franklin

FTSE

Mexico

ETF

 

 

 
Capital loss carryforwards not subject to expiration:         

Long term

               $ 14,225,837             $             $ 890,110             $ 826,878  

Short term

     3,657,331             668,844       80,987  
  

 

 

 

Total capital loss carryforwards

               $ 17,883,168             $             $ 1,558,954             $ 907,865  
  

 

 

 
    

Franklin

FTSE

Saudi Arabia

ETF

   

Franklin

FTSE

South Africa

ETF

   

Franklin

FTSE

South Korea

ETF

   

Franklin

FTSE

Switzerland

ETF

 

 

 
Capital loss carryforwards not subject to expiration:         

Long term

               $ 12,585             $ 329,148             $ 4,244,652             $ 510,380  

Short term

     51,837       75,911       2,671,797       794,022  
  

 

 

 

Total capital loss carryforwards

               $ 64,422             $ 405,059             $ 6,916,449             $ 1,304,402  
  

 

 

 
    

Franklin

FTSE

Taiwan

ETF

   

Franklin

FTSE

United Kingdom

ETF

             

 

     
Capital loss carryforwards not subject to expiration:         

Long term

               $ 1,217,333             $ 11,733,951      

Short term

     636,412       5,822,629      
  

 

 

     

Total capital loss carryforwards

               $ 1,853,745             $ 17,556,580      
  

 

 

     

 

           
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FRANKLIN TEMPLETON ETF TRUST

NOTES TO FINANCIAL STATEMENTS

 

4. Income Taxes (continued)

 

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

 

     Franklin FTSE
Europe Hedged ETF
    Franklin FTSE
India ETF
    Franklin FTSE Japan
Hedged ETF
 

 

 
Post October capital losses    $ 2,717,313     $     $ 7,324,097  
Late year ordinary losses    $     $ 242,051     $  

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

 

     

Franklin

FTSE
Europe Hedged
ETF

 

Capital loss carryforwards utilized

   $ 38,507  

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

 

    

Franklin FTSE Asia ex

Japan ETF

 
  

 

 

 
     2023     2022  

 

 

Distributions paid from Ordinary income

     $845,059       $744,268  
  

 

 

 
     Franklin FTSE Australia ETF  
  

 

 

 
     2023     2022  

 

 

Distributions paid from Ordinary income

     $1,647,793       $1,262,140  
  

 

 

 
     Franklin FTSE Brazil ETF  
  

 

 

 
     2023     2022  

 

 

Distributions paid from Ordinary income

     $37,484,866       $16,614,538  
  

 

 

 
     Franklin FTSE Canada ETF  
  

 

 

 
     2023     2022  

 

 

Distributions paid from Ordinary income

     $5,031,676       $639,656  
  

 

 

 
     Franklin FTSE China ETF  
  

 

 

 
     2023     2022  

 

 

Distributions paid from Ordinary income

     $2,755,725       $1,744,579  
  

 

 

 
     Franklin FTSE Europe ETF  
  

 

 

 
     2023     2022  

 

 

Distributions paid from Ordinary income

     $3,354,521       $7,497,235  
  

 

 

 

 

           
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FRANKLIN TEMPLETON ETF TRUST

NOTES TO FINANCIAL STATEMENTS

 

4. Income Taxes (continued)

 

     Franklin FTSE Europe
Hedged ETF
 
     2023      2022  

 

 
Distributions paid from:      

Ordinary income

     $1,664,444        $666,937  

Long-term Capital Gain

     1,494,167        —   
  

 

 

 
     $3,158,611        $666,937   
  

 

 

 
     Franklin FTSE France ETF  
     2023      2022  

 

 

Distributions paid from Ordinary income

     $227,103        $270,848   
  

 

 

 
     Franklin FTSE Germany ETF  
     2023      2022  

 

 

Distributions paid from Ordinary income

     $449,481        $404,523   
  

 

 

 
     Franklin FTSE Hong
Kong ETF
 
     2023      2022  

 

 

Distributions paid from Ordinary income

     $536,059        $478,429   
  

 

 

 
     Franklin FTSE India ETF  
     2023      2022  

 

 

Distributions paid from Ordinary income

     $445,431        $1,055,912   
  

 

 

 
     Franklin FTSE Italy ETF  
     2023      2022  

 

 

Distributions paid from Ordinary income

     $160,658        $166,253   
  

 

 

 
     Franklin FTSE Japan ETF  
     2023      2022  

 

 

Distributions paid from Ordinary income

     $15,080,965        $15,304,771   
  

 

 

 
     Franklin FTSE Japan
Hedged ETF
 
     2023      2022  

 

 
Distributions paid from:      

Ordinary income

     $2,846,872        $162,493   

Long-term Capital Gain

     3,446,187        —   
  

 

 

 
     $6,293,059        $162,493   
  

 

 

 
     Franklin FTSE Latin
America ETF
 
     2023      2022  

 

 

Distributions paid from Ordinary income

     $3,573,506        $304,300   
  

 

 

 

 

           
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FRANKLIN TEMPLETON ETF TRUST

NOTES TO FINANCIAL STATEMENTS

 

4. Income Taxes (continued)

 

     Franklin FTSE Mexico ETF  
  

 

 

 
     2023      2022  

 

 
Distributions paid from Ordinary income      $447,955        $302,647   
  

 

 

 
    

Franklin FTSE

Saudi Arabia ETF

 
  

 

 

 
     2023      2022  

 

 
Distributions paid from Ordinary income      $78,128        $68,376   
  

 

 

 
    

Franklin FTSE South

Africa ETF

 
  

 

 

 
     2023      2022  

 

 
Distributions paid from Ordinary income      $191,901        $111,346   
  

 

 

 
    

Franklin FTSE

South Korea ETF

 
  

 

 

 
     2023      2022  

 

 
Distributions paid from Ordinary income      $2,183,845        $1,354,645   
  

 

 

 
    

Franklin FTSE

Switzerland ETF

 
  

 

 

 
     2023      2022  

 

 
Distributions paid from Ordinary income      $1,004,310        $1,077,037   
  

 

 

 
     Franklin FTSE Taiwan ETF  
  

 

 

 
     2023      2022  

 

 
Distributions paid from Ordinary income      $1,549,538        $1,073,757   
  

 

 

 
    

Franklin FTSE

United Kingdom ETF

 
  

 

 

 
     2023      2022  

 

 
Distributions paid from Ordinary income      $20,583,824        $11,671,197   
  

 

 

 

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

 

    

Franklin

FTSE

Asia ex Japan

ETF

   

Franklin

FTSE

Australia

ETF

   

Franklin

FTSE

Brazil

ETF

   

Franklin 

FTSE 

Canada 

ETF 

 

 

 

Cost of investments

           $      32,682,770     $   28,252,930     $ 297,219,785     $ 299,117,396   
  

 

 

 

Unrealized appreciation

           $ 3,337,011     $ 2,327,728     $ 22,307,974     $ 7,025,985   

Unrealized depreciation

     (5,986,603     (1,637,676     (52,967,089     (27,022,214)  
  

 

 

 

Net unrealized appreciation (depreciation)

           $ (2,649,592   $ 690,052     $ (30,659,115   $ (19,996,229)  
  

 

 

 

Distributable earnings – undistributed ordinary income

           $ 159,005     $ 368,009     $ 2,304,975     $ 1,871,648   
  

 

 

 

 

           
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FRANKLIN TEMPLETON ETF TRUST

NOTES TO FINANCIAL STATEMENTS

 

4. Income Taxes (continued)

 

    

Franklin

FTSE

China

ETF

   

Franklin

FTSE

Europe

ETF

   

Franklin

FTSE

Europe Hedged

ETF

   

Franklin 

FTSE 

France 

ETF 

 

 

 

Cost of investments

           $ 145,822,604     $ 113,965,929     $ 14,491,062     $ 5,905,750   
  

 

 

 

Unrealized appreciation

           $ 6,781,773     $ 4,404,303     $ 1,054,124     $ 707,632  

Unrealized depreciation

     (38,346,839     (8,194,337     (1,522,051     (565,805)  
  

 

 

 

Net unrealized appreciation (depreciation)

           $ (31,565,066   $ (3,790,034   $ (467,927   $ 141,827   
  

 

 

 

Distributable earnings – undistributed ordinary income

           $ 853,016     $ 805,273     $     $ 15,078   
  

 

 

 
    

Franklin

FTSE

Germany

ETF

   

Franklin

FTSE

Hong Kong

ETF

   

Franklin

FTSE

India

ETF

   

Franklin 

FTSE 

Italy 

ETF 

 

 

 

Cost of investments

           $ 19,347,639     $ 19,099,547     $ 100,367,195     $ 4,635,561   
  

 

 

 

Unrealized appreciation

           $ 910,338     $ 799,851     $ 4,780,687     $ 707,896   

Unrealized depreciation

     (2,574,563     (2,864,894     (6,075,476     (306,030)  
  

 

 

 

Net unrealized appreciation (depreciation)

           $ (1,664,225   $ (2,065,043   $ (1,294,789   $ 401,866   
  

 

 

 

Distributable earnings – undistributed ordinary income

           $ 111,219     $ 104,641     $     $ 39,803   
  

 

 

 
    

Franklin

FTSE

Japan

ETF

   

Franklin

FTSE

Japan Hedged

ETF

   

Franklin

FTSE

Latin America

ETF

   

Franklin 

FTSE 

Mexico 

ETF 

 

 

 

Cost of investments

           $ 1,102,887,621     $ 14,143,991     $ 62,315,928     $   21,219,139   
  

 

 

 

Unrealized appreciation

           $ 34,397,639     $ 553,403     $ 8,758,934     $ 4,213,826   

Unrealized depreciation

     (144,299,726     (1,660,467     (3,937,377     (547,918)  
  

 

 

 

Net unrealized appreciation (depreciation)

           $ (109,902,087   $ (1,107,064   $ 4,821,557     $ 3,665,908   
  

 

 

 

Distributable earnings – undistributed ordinary income

           $ 17,312,929     $ 1,527,675     $ 542,988     $ 109,912   
  

 

 

 
    

Franklin

FTSE

Saudi Arabia

ETF

   

Franklin

FTSE

South Africa

ETF

   

Franklin

FTSE

South Korea

ETF

   

Franklin 

FTSE 

Switzerland 

ETF 

 

 

 

Cost of investments

           $ 21,016,214     $ 2,717,890     $ 301,280,999     $ 48,973,220   
  

 

 

 

Unrealized appreciation

           $ 1,160,042     $ 103,181     $ 14,712,621     $ 3,820,850   

Unrealized depreciation

     (445,778     (578,832     (25,281,680     (3,742,655)  
  

 

 

 

Net unrealized appreciation (depreciation)

           $ 714,264     $ (475,651   $ (10,569,059   $ 78,195   
  

 

 

 

Distributable earnings – undistributed ordinary income

           $ 178,472     $ 24,552     $ 2,643,619     $ 504,795   
  

 

 

 

 

           
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NOTES TO FINANCIAL STATEMENTS

 

4. Income Taxes (continued)

 

    

Franklin

FTSE

Taiwan

ETF

   

Franklin 

FTSE 

United Kingdom 

ETF 

 

 

 

Cost of investments

           $     127,023,589     $ 592,580,014   
  

 

 

 

Unrealized appreciation

           $ 12,266,200     $ 27,830,054   

Unrealized depreciation

     (2,418,200     (56,383,344)  
  

 

 

 

Net unrealized appreciation (depreciation)

           $ 9,848,000     $ (28,553,290)  
  

 

 

 

Distributable earnings – undistributed ordinary income

           $ 706,564     $ 6,735,922   
  

 

 

 

Differences between income and/or capital gains as determined on a book basis and a tax basis are primarily due to differing treatment of foreign currency transactions, financial futures transactions, passive foreign investment company shares, EU reclaims and gains/losses realized on in-kind shareholder redemptions and wash sales.

5. Investment Transactions

Purchases and sales of investments (excluding short term securities and in-kind transactions, if any) for the year ended March 31, 2023, were as follows:

 

      

Franklin

FTSE

Asia ex Japan

ETF

      

Franklin

FTSE

Australia

ETF

      

Franklin

FTSE

Brazil

ETF

      

Franklin

FTSE

Canada

ETF

 

 

 

Purchases

          $   1,908,691        $ 1,671,688        $   173,242,572        $ 12,912,510  

Sales

               $   4,294,561        $ 2,108,563        $   293,865,300        $ 11,416,876  
      

Franklin

FTSE

China

ETF

      

Franklin

FTSE

Europe

ETF

      

Franklin

FTSE

Europe Hedged

ETF

      

Franklin

FTSE

France

ETF

 

 

 

Purchases

          $   20,746,623        $ 4,542,129        $   3,685,035        $   354,887  

Sales

          $   10,197,058        $ 4,476,786        $   5,327,831        $   388,721  
      

Franklin

FTSE

Germany

ETF

      

Franklin

FTSE

Hong Kong

ETF

      

Franklin

FTSE

India

ETF

      

Franklin

FTSE

Italy

ETF

 

 

 

Purchases

          $   606,127        $ 5,151,427        $     61,517,360        $   615,475  

Sales

          $   607,720        $ 1,300,220        $       4,264,684        $   643,828  
      

Franklin

FTSE

Japan

ETF

      

Franklin

FTSE

Japan Hedged

ETF

      

Franklin

FTSE

Latin America

ETF

      

Franklin

FTSE

Mexico

ETF

 

 

 

Purchases

          $   30,902,470        $ 7,112,900        $   46,099,803        $   1,511,502  

Sales

          $   24,462,987        $ 10,887,531        $       5,129,698        $   1,497,626  
      

Franklin

FTSE

Saudi Arabia

ETF

      

Franklin

FTSE

South Africa

ETF

      

Franklin

FTSE

South Korea

ETF

      

Franklin

FTSE

Switzerland

ETF

 

 

 

Purchases

          $   18,976,370        $ 315,163        $     243,049,567        $   3,974,138  

 

           
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FRANKLIN TEMPLETON ETF TRUST

NOTES TO FINANCIAL STATEMENTS

 

5. Investment Transactions (continued)

 

    

Franklin

FTSE

Saudi Arabia

ETF

   

Franklin

FTSE

South Africa

ETF

   

Franklin

FTSE

South Korea

ETF

   

Franklin

FTSE

Switzerland

ETF

 

 

 

Sales

   $ 387,290     $ 342,295     $ 6,620,131     $ 3,928,753  
    

Franklin

FTSE Taiwan

ETF

   

Franklin

FTSE

United Kingdom

ETF

             

 

     

Purchases

   $ 102,686,342     $ 32,754,756      

Sales

   $ 5,594,586     $ 28,776,359      
In-kind transactions associated with creation and redemptions for the year ended March 31, 2023, were as follows:

 

    

Franklin

FTSE

Asia ex Japan

ETF

   

Franklin

FTSE

Australia

ETF

   

Franklin

FTSE

Brazil

ETF

   

Franklin

FTSE

Canada

ETF

 

 

 

Cost of Securities Received

   $     $     $     $  

Value of Securities Delivereda

   $ 1,657,109     $     $     $  
    

Franklin

FTSE

China

ETF

   

Franklin

FTSE

Europe

ETF

   

Franklin

FTSE

Europe Hedged

ETF

   

Franklin

FTSE

France

ETF

 

 

 

Cost of Securities Received

   $ 747,193     $ 70,731,122     $ 10,576,827     $  

Value of Securities 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

   $ 5,533,324     $ 144,988     $     $ 1,248,141  

Value of Securities Delivereda

   $ 5,139,872     $ 3,255,694     $     $  
    

Franklin

FTSE

Japan

ETF

   

Franklin

FTSE

Japan Hedged

ETF

   

Franklin

FTSE

Latin America

ETF

   

Franklin

FTSE

Mexico

ETF

 

 

 

Cost of Securities Received

   $ 422,602,145     $ 5,821,497     $ 15,533,410     $ 12,277,160  

Value of Securities Delivereda

   $ 160,515,326     $ 12,708,732     $     $ 1,266,860  
    

Franklin

FTSE

Saudi Arabia

ETF

   

Franklin

FTSE

South Africa

ETF

   

Franklin

FTSE

South Korea

ETF

   

Franklin

FTSE

Switzerland

ETF

 

 

 

Cost of Securities Received

   $     $     $     $ 14,253,301  

Value of Securities Delivereda

   $     $ 2,054,263     $     $ 4,543,769  
    

Franklin

FTSE

Taiwan

ETF

   

Franklin

FTSE

United Kingdom
ETF

             

 

     

Cost of Securities Received

   $     $ 164,931,197      

 

           
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FRANKLIN TEMPLETON ETF TRUST

NOTES TO FINANCIAL STATEMENTS

 

5. Investment Transactions (continued)

 

    

Franklin

FTSE

Taiwan

ETF

   

Franklin

FTSE

United Kingdom

ETF

 

 

 

Value of Securities Delivereda

   $     $ 164,898,997  

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

At March 31, 2023, in connection with securities lending transactions, certain or all Funds loaned investments and received cash collateral as follows:

 

    

Franklin

FTSE

Japan

ETF

 

 

 
Securities lending transactionsa:   

Equity Investmentsb

               $ 4,355,834  
  

 

 

 

aThe agreements can be terminated at any time.

bThe gross amount of recognized liability for such transactions is included in payable upon return of securities loaned in the Statements of Assets and Liabilities.

6. Concentration of Risk

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

7. Other Derivative Information

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

 

           
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FRANKLIN TEMPLETON ETF TRUST

NOTES TO FINANCIAL STATEMENTS

 

7. Other Derivative Information (continued)

 

   

Asset Derivatives

   

Liability Derivatives

 
    

Statements of Assets and

Liabilities Location

  Fair Value    

Statements of Assets and

Liabilities Location

  Fair Value  
Franklin FTSE Australia ETF        

Equity contracts

 

Variation margin on futures contracts

  $ 865    

Variation margin on futures contracts

  $  
   

 

 

     

 

 

 
Franklin FTSE Brazil ETF        

Equity contracts

 

Variation margin on futures contracts

  $    

Variation margin on futures contracts

  $ 100,113  
   

 

 

     

 

 

 
Franklin FTSE Canada ETF        

Equity contracts

 

Variation margin on futures contracts

  $ 13,181    

Variation margin on futures contracts

  $  
   

 

 

     

 

 

 
Franklin FTSE Europe ETF        

Equity contracts

 

Variation margin on futures contracts

  $ 30,814    

Variation margin on futures contracts

  $  
   

 

 

     

 

 

 
Franklin FTSE Europe Hedged ETF        

Foreign exchange contracts

 

Unrealized appreciation on OTC forward exchange contracts

  $ 2,354    

Unrealized depreciation on OTC forward exchange contracts

  $ 295,253  

Equity contracts

 

Variation margin on futures contracts

    2,816    

Variation margin on futures contracts

     
   

 

 

     

 

 

 

Totals

    $ 5,170       $ 295,253  
   

 

 

     

 

 

 
Franklin FTSE France ETF        

Equity contracts

 

Variation margin on futures contracts

  $ 2,470    

Variation margin on futures contracts

  $  
   

 

 

     

 

 

 
Franklin FTSE Hong Kong ETF        

Equity contracts

 

Variation margin on futures contracts

  $ 1,064    

Variation margin on futures contracts

  $  
   

 

 

     

 

 

 
Franklin FTSE Japan ETF        

Equity contracts

 

Variation margin on futures contracts

  $ 162,284    

Variation margin on futures contracts

  $  
   

 

 

     

 

 

 
Franklin FTSE Japan Hedged ETF        

Foreign exchange contracts

 

Unrealized appreciation on OTC forward exchange contracts

  $    

Unrealized depreciation on OTC forward exchange contracts

  $ 247,252  

Equity contracts

 

Variation margin on futures contracts

    2,278    

Variation margin on futures contracts

     
   

 

 

     

 

 

 

Totals

    $ 2,278       $ 247,252  
   

 

 

     

 

 

 
Franklin FTSE Latin America ETF        

Equity contracts

 

Variation margin on futures contracts

  $    

Variation margin on futures contracts

  $ 14,879  
   

 

 

     

 

 

 
Franklin FTSE South Korea ETF        

Equity contracts

 

Variation margin on futures contracts

  $ 25,029    

Variation margin on futures contracts

  $  
   

 

 

     

 

 

 
Franklin FTSE Switzerland ETF        

Equity contracts

 

Variation margin on futures contracts

  $ 38,313    

Variation margin on futures contracts

  $  
   

 

 

     

 

 

 
Franklin FTSE United Kingdom ETF        

Equity contracts

 

Variation margin on futures contracts

  $ 27,481    

Variation margin on futures contracts

  $  
   

 

 

     

 

 

 

 

           
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FRANKLIN TEMPLETON ETF TRUST

NOTES TO FINANCIAL STATEMENTS

 

7. Other Derivative Information (continued)

 

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

 

Derivative Contracts

Not Accounted for as

Hedging Instruments

 

Statements of

Operations Locations

 

Net Realized

Gain (Loss)

for the Period

   

Statements of

Operations Locations

 

Net Change in

Unrealized

Appreciation

(Depreciation)

for the Period

 

 

 
Franklin FTSE Asia ex Japan ETF        
 

Net realized gain (loss) from:

   

Net change in unrealized
appreciation (depreciation) on:

 

Equity contracts

 

Futures contracts

  $ (41,334  

Futures contracts

  $  
   

 

 

     

 

 

 
Franklin FTSE Australia ETF        
 

Net realized gain (loss) from:

   

Net change in unrealized
appreciation (depreciation) on:

 

Equity contracts

 

Futures contracts

  $ 4,705    

Futures contracts

  $ 865  
   

 

 

     

 

 

 
Franklin FTSE Brazil ETF        
 

Net realized gain (loss) from:

   

Net change in unrealized
appreciation (depreciation) on:

 

Equity contracts

 

Futures contracts

  $ (2,139,014  

Futures contracts

  $ (313,611
   

 

 

     

 

 

 
Franklin FTSE Canada ETF        
 

Net realized gain (loss) from:

   

Net change in unrealized
appreciation (depreciation) on:

 

Equity contracts

 

Futures contracts

  $ (32,397  

Futures contracts

  $ 13,181  
   

 

 

     

 

 

 
Franklin FTSE China ETF        
 

Net realized gain (loss) from:

   

Net change in unrealized
appreciation (depreciation) on:

 

Equity contracts

 

Futures contracts

  $ (282,944  

Futures contracts

  $  
   

 

 

     

 

 

 
Franklin FTSE Europe ETF        
 

Net realized gain (loss) from:

   

Net change in unrealized
appreciation (depreciation) on:

 

Equity contracts

 

Futures contracts

  $ 35,645    

Futures contracts

  $ (40,919
   

 

 

     

 

 

 
Franklin FTSE Europe Hedged ETF        
 

Net realized gain (loss) from:

   

Net change in unrealized
appreciation (depreciation) on:

 

Foreign exchange contracts

 

Forward exchange contracts

  $ 1,844,814    

Forward exchange contracts

  $ (515,430

Equity contracts

 

Futures contracts

    800    

Futures contracts

    2,816  
   

 

 

     

 

 

 

Totals

    $ 1,845,614       $ (512,614
   

 

 

     

 

 

 
Franklin FTSE France ETF        
 

Net realized gain (loss) from:

   

Net change in unrealized
appreciation (depreciation) on:

 

Equity contracts

 

Futures contracts

  $ (3,299  

Futures contracts

  $ 2,470  
   

 

 

     

 

 

 
Franklin FTSE Germany ETF        
 

Net realized gain (loss) from:

   

Net change in unrealized
appreciation (depreciation) on:

 

Equity contracts

 

Futures contracts

  $ (10,835  

Futures contracts

  $  
   

 

 

     

 

 

 
Franklin FTSE Hong Kong ETF        
 

Net realized gain (loss) from:

   

Net change in unrealized
appreciation (depreciation) on:

 

Equity contracts

 

Futures contracts

  $ (2,161  

Futures contracts

  $ 477  
   

 

 

     

 

 

 

 

           
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FRANKLIN TEMPLETON ETF TRUST

NOTES TO FINANCIAL STATEMENTS

 

7. Other Derivative Information (continued)

 

Derivative Contracts

Not Accounted for as

Hedging Instruments

 

Statements of

Operations Locations

 

Net Realized

Gain (Loss)

for the Period

   

Statements of

Operations Locations

 

Net Change in

Unrealized

Appreciation

(Depreciation)

for the Period

 

 

 
Franklin FTSE India ETF        
 

Net realized gain (loss) from:

   

Net change in unrealized appreciation (depreciation) on:

 

Equity contracts

 

Futures contracts

  $ 4,985    

Futures contracts

  $ (1,364
   

 

 

     

 

 

 
Franklin FTSE Japan ETF        
 

Net realized gain (loss) from:

   

Net change in unrealized appreciation (depreciation) on:

 

Equity contracts

 

Futures contracts

  $ 354,956    

Futures contracts

  $ 14,541  
   

 

 

     

 

 

 
Franklin FTSE Japan Hedged ETF        
 

Net realized gain (loss) from:

   

Net change in unrealized appreciation (depreciation) on:

 

Foreign exchange contracts

 

Forward exchange contracts

  $ 2,715,905    

Forward exchange contracts

  $ (797,600

Equity contracts

 

Futures contracts

    4,773    

Futures contracts

    832  
   

 

 

     

 

 

 

Totals

    $ 2,720,678       $ (796,768
   

 

 

     

 

 

 
Franklin FTSE Latin America ETF        
 

Net realized gain (loss) from:

   

Net change in unrealized appreciation (depreciation) on:

 

Equity contracts

 

Futures contracts

  $ (99,250  

Futures contracts

  $ (15,889
   

 

 

     

 

 

 
Franklin FTSE Mexico ETF        
 

Net realized gain (loss) from:

   

Net change in unrealized appreciation (depreciation) on:

 

Equity contracts

 

Futures contracts

  $ (1,730  

Futures contracts

  $  
   

 

 

     

 

 

 
Franklin FTSE Saudi Arabia ETF        
 

Net realized gain (loss) from:

   

Net change in unrealized appreciation (depreciation) on:

 

Foreign exchange contracts

 

Forward exchange contracts

  $ 1    

Forward exchange contracts

  $  
   

 

 

     

 

 

 
Franklin FTSE South Korea ETF        
 

Net realized gain (loss) from:

   

Net change in unrealized appreciation (depreciation) on:

 

Equity contracts

 

Futures contracts

  $ 116,088    

Futures contracts

  $ (12,915
   

 

 

     

 

 

 
Franklin FTSE Switzerland ETF        
 

Net realized gain (loss) from:

   

Net change in unrealized appreciation (depreciation) on:

 

Equity contracts

 

Futures contracts

  $ (97,288  

Futures contracts

  $ 3,897  
   

 

 

     

 

 

 
Franklin FTSE Taiwan ETF        
 

Net realized gain (loss) from:

   

Net change in unrealized appreciation (depreciation) on:

 

Equity contracts

 

Futures contracts

  $ 589    

Futures contracts

  $  
   

 

 

     

 

 

 
Franklin FTSE United Kingdom ETF        
 

Net realized gain (loss) from:

   

Net change in unrealized appreciation (depreciation) on:

 

Equity contracts

 

Futures contracts

  $ (107,586  

Futures contracts

  $ (203,775
   

 

 

     

 

 

 

 

           
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FRANKLIN TEMPLETON ETF TRUST

NOTES TO FINANCIAL STATEMENTS

 

7. Other Derivative Information (continued)

 

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

 

     

Franklin

FTSE

Asia ex Japan

ETF

   

Franklin

FTSE

Australia

ETF

   

Franklin

FTSE

Brazil

ETF

   

Franklin

FTSE

Canada

ETF

Futures contracts

     $35,047       $152,132       $5,819,540     $519,804

Forward exchange contracts

     $       —       $                $                 $         
     

Franklin

FTSE

China

ETF

   

Franklin

FTSE

Europe

ETF

   

Franklin

FTSE

        Europe Hedged

ETF

   

Franklin

FTSE

France

ETF

Futures contracts

     $304,969       $788,608       $       89,942     $7,706

Forward exchange contracts

     $                $                $52,732,966     $     
     

Franklin

FTSE

Germany

ETF

   

Franklin

FTSE

Hong Kong

ETF

   

Franklin

FTSE

India

ETF

   

Franklin

FTSE

Japan

ETF

Futures contracts

     $37,240       $55,744       $66,394     $5,604,615

Forward exchange contracts

     $              $              $            $            
     Franklin     Franklin     Franklin     Franklin
     FTSE     FTSE     FTSE     FTSE
     Japan Hedged             Latin America     Saudi Arabia         South Korea
      ETF     ETF     ETF     ETF

Futures contracts

     $     194,640       $415,110       $       $750,795

Forward exchange contracts

     $68,391,103       $                $430     $         
     Franklin     Franklin     Franklin      
     FTSE     FTSE     FTSE      
     Switzerland     Taiwan     United Kingdom      
      ETF     ETF     ETF      

Futures contracts

     $697,945       $122,352       $3,050,206    

Forward exchange contracts

     $                $                $                

At March 31, 2023, the Funds’ OTC derivative assets and liabilities are as follows:

 

     Gross and Net Amounts of      
     Assets and Liabilities      
     Presented in the      
     Statements of      
     Assets and Liabilities      
      Assets              Liabilities      
Franklin FTSE Europe Hedged ETF         

Foreign exchange contracts

     $2,354                 $295,253      
Franklin FTSE Japan Hedged ETF         

Foreign exchange contracts

     $—                 $247,252      

 

           
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FRANKLIN TEMPLETON ETF TRUST

NOTES TO FINANCIAL STATEMENTS

 

7. Other Derivative Information (continued)

 

At March 31, 2023, the Funds’ OTC derivative assets, which may be offset against the Funds’ OTC derivative liabilities and collateral received from the counterparty, are as follows:

 

            Amounts Not Offset in the         
            Statements of Assets and Liabilities         
     Gross and Net Amounts             Financial                
     of Assets Presented in      Financial            Instruments      Cash         
     the Statements of      Instruments      Collateral      Collateral            Net Amount (Not  
       Assets and Liabilities            Available for Offset        Receiveda              Receiveda        less than zero)  
Franklin FTSE Europe               
Hedged ETF               
Counterparty               

BOFA

     $2,330        $(2,330)        $—        $—        $—  

UBSW

     24        (24)                       

 

Total

     $2,354        $(2,354)        $—        $—        $—  

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 March 31, 2023, the Funds’ OTC derivative liabilities, which may be offset against the Funds’ OTC derivative assets and collateral pledged to the counterparty, are as follows:

 

            Amounts Not Offset in the        
            Statements of Assets and Liabilities        
     

 

 

   
     Gross and Net Amounts             Financial              
     of Liabilities Presented in      Financial            Instruments     Cash        
     the Statements of      Instruments      Collateral     Collateral           Net Amount (Not  
       Assets and Liabilities            Available for Offset        Pledged a            Pledged a      less than zero)  
Franklin FTSE Europe             
Hedged ETF             
Counterparty             

BOFA

     $  70,666        $(2,330)        $—       $—       $  68,336  

HSBK

     53,130                           53,130  

UBSW

     171,457        (24)                    171,433  

Total

     $295,253        $(2,354)        $—       $—       $292,899  
Franklin FTSE Japan             
Hedged ETF             
Counterparty             

BOFA

     $  61,844        $        —        $—       $—       $  61,844  

HSBK

     61,819                           61,819  

UBSW

     123,589                           123,589  

Total

     $247,252        $        —        $—       $—       $247,252  

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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FRANKLIN TEMPLETON ETF TRUST

NOTES TO FINANCIAL STATEMENTS

 

 

8. Fair Value Measurements

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

 

   

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

   

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

   

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

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

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

 

      Level 1              Level 2              Level 3              Total  
Franklin FTSE Asia ex Japan ETF                     
Assets:                     

  Investments in Securities:a

                    

  Equity Investmentsb

   $ 30,019,732               $ 2,022               $ 11,424c               $ 30,033,178  
Franklin FTSE Australia ETF                     
Assets:                     

  Investments in Securities:a

                    

  Equity Investmentsb

   $ 28,942,982               $               $               $ 28,942,982  

  Other Financial Instruments:

                    

  Futures Contracts

   $ 865               $               $               $ 865  
Franklin FTSE Brazil ETF                     
Assets:                     

  Investments in Securities:a

                    

  Equity Investmentsb

   $ 266,560,670               $               $               $ 266,560,670  
Liabilities:                     

Other Financial Instruments:

                    

Futures Contracts

   $ 100,113               $               $               $ 100,113  
Franklin FTSE Canada ETF                     
Assets:                     

  Investments in Securities:a

                    

  Equity Investmentsb

   $ 279,121,167               $               $               $ 279,121,167  

  Other Financial Instruments:

                    

  Futures Contracts

   $ 13,181               $               $               $ 13,181  
Franklin FTSE China ETF                     
Assets:                     

  Investments in Securities:a

                    

  Equity Investmentsb

   $ 114,131,584               $   25,784               $ 100,170c               $ 114,257,538  
Franklin FTSE Europe ETF                     
Assets:                     

  Investments in Securities:a

                    

  Equity Investmentsb

   $ 110,175,895               $               $ c               $ 110,175,895  

  Other Financial Instruments:

                    

  Futures Contracts

   $ 30,814               $               $               $ 30,814  

 

           
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FRANKLIN TEMPLETON ETF TRUST

NOTES TO FINANCIAL STATEMENTS

 

8. Fair Value Measurements (continued)

 

      Level 1              Level 2                  Level 3              Total  
Franklin FTSE Europe Hedged ETF                     
Assets:                     

  Investments in Securities:a

                    

  Equity Investmentsb

   $ 14,018,999         $         $  —c         $ 14,018,999  

  Short-Term Investments

     4,136                                                 4,136  

  Total Investments in Securities

   $ 14,023,135               $               $               $ 14,023,135  

Other Financial Instruments:

                    

Forward Exchange Contracts

   $         $ 2,354         $         $ 2,354  

Futures Contracts

     2,816                                                 2,816  

Total Other Financial Instruments

   $ 2,816               $ 2,354               $               $ 5,170  
Liabilities:                     

  Other Financial Instruments:

                    

  Forward Exchange Contracts

   $               $ 295,253               $               $ 295,253  
Franklin FTSE France ETF                     
Assets:                     

  Investments in Securities:a

                    

  Equity Investmentsb

   $ 6,047,577               $               $               $ 6,047,577  

  Other Financial Instruments:

                    

  Futures Contracts

   $ 2,470               $               $               $ 2,470  
Franklin FTSE Germany ETF                     
Assets:                     

  Investments in Securities:a

                    

  Equity Investmentsb

   $ 17,683,414               $               $               $ 17,683,414  
Franklin FTSE Hong Kong ETF                     
Assets:                     

  Investments in Securities:a

                    

  Equity Investmentsb

   $ 17,034,504               $               $               $ 17,034,504  

  Other Financial Instruments:

                    

  Futures Contracts

   $ 1,064               $               $               $ 1,064  
Franklin FTSE India ETF                     
Assets:                     

  Investments in Securities:a

                    

  Equity Investmentsb

   $ 99,072,406               $               $               $ 99,072,406  
Franklin FTSE Italy ETF                     
Assets:                     

  Investments in Securities:a

                    

  Equity Investmentsb

   $ 5,037,427               $               $               $ 5,037,427  
Franklin FTSE Japan ETF                     
Assets:                     

  Investments in Securities:a

                    

  Equity Investmentsb

   $ 988,568,241         $         $         $ 988,568,241  

  Short-Term Investments

     4,417,293                                                 4,417,293  

  Total Investments in Securities

   $ 992,985,534               $               $               $ 992,985,534  

  Other Financial Instruments:

                    

  Futures Contracts

   $ 162,284               $               $               $ 162,284  

 

           
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FRANKLIN TEMPLETON ETF TRUST

NOTES TO FINANCIAL STATEMENTS

 

8. Fair Value Measurements (continued)

 

      Level 1              Level 2                  Level 3              Total  
Franklin FTSE Japan Hedged ETF                     
Assets:                     

Investments in Securities:a

                    

Equity Investmentsb

   $ 13,036,206         $         $         $ 13,036,206  

Short-Term Investments

     721                                                 721  

Total Investments in Securities

   $ 13,036,927               $               $               $ 13,036,927  

Other Financial Instruments:

                    

Futures Contracts

   $ 2,278               $               $               $ 2,278  
Liabilities:                     

Other Financial Instruments:

                    

Forward Exchange Contracts

   $               $ 247,252               $               $ 247,252  
Franklin FTSE Latin America ETF                     
Assets:                     

Investments in Securities:a

                    

Equity Investmentsb

   $ 67,137,485               $               $               $ 67,137,485  
Liabilities:                     

Other Financial Instruments:

                    

Futures Contracts

   $ 14,879               $               $               $ 14,879  
Franklin FTSE Mexico ETF                     
Assets:                     

Investments in Securities:a

                    

Equity Investmentsb

   $ 24,885,047               $               $               $ 24,885,047  
Franklin FTSE Saudi Arabia ETF                     
Assets:                     

Investments in Securities:a

                    

Equity Investmentsb

   $ 21,730,478               $               $               $ 21,730,478  
Franklin FTSE South Africa ETF                     
Assets:                     

Investments in Securities:a

                    

Equity Investmentsb

   $ 2,242,239               $               $               $ 2,242,239  
Franklin FTSE South Korea ETF                     
Assets:                     

Investments in Securities:a

                    

Equity Investmentsb

   $ 290,711,940               $               $               $ 290,711,940  

Other Financial Instruments:

                    

Futures Contracts

   $ 25,029               $               $               $ 25,029  
Franklin FTSE Switzerland ETF                     
Assets:                     

Investments in Securities:a

                    

Equity Investmentsb

   $ 49,051,415               $               $               $ 49,051,415  

Other Financial Instruments:

                    

Futures Contracts

   $ 38,313               $               $               $ 38,313  
Franklin FTSE Taiwan ETF                     
Assets:                     

Investments in Securities:a

                    

Equity Investmentsb

   $ 136,871,589               $               $               $ 136,871,589  

 

           
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FRANKLIN TEMPLETON ETF TRUST

NOTES TO FINANCIAL STATEMENTS

 

8. Fair Value Measurements (continued)

 

      Level 1      Level 2      Level 3      Total  
Franklin FTSE United Kingdom ETF            
Assets:            

Investments in Securities:a

           

Equity Investmentsb

   $ 564,026,714      $     —      $     —c      $ 564,026,714  

Short-Term Investments

     10            —            —          10  
  

 

 

 

Total Investments in Securities

   $ 564,026,724      $     —      $     —        $ 564,026,724  
  

 

 

 

Other Financial Instruments:

           

Futures Contracts

   $ 27,481      $     —      $     —        $ 27,481  
  

 

 

 

aFor detailed categories, see the accompanying Schedules of Investments.

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

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

9. New Accounting Pronouncements

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

10. Subsequent Events

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

Abbreviations

 

Selected Portfolio        Counterparty
ADR    American Depositary Receipt     BOFA    Bank of America Corp.
CDI    Clearing House Electronic Subregister System Depositary Interest     HSBK    HSBC Bank PLC
    UBSW      UBS AG
NVDR      Non-Voting Depositary Receipt       
REIT    Real Estate Investment Trust       
SF    Single Family       
SPA    Standby Purchase Agreement       
SRF    State Revolving Fund       

 

           
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FRANKLIN TEMPLETON ETF TRUST

 

Report of Independent Registered Public Accounting Firm

To the Board of Trustees of Franklin Templeton ETF Trust and Shareholders of Franklin FTSE Asia ex Japan ETF, Franklin FTSE Australia ETF, Franklin FTSE Brazil ETF, Franklin FTSE Canada ETF, Franklin FTSE China ETF, Franklin FTSE Europe ETF, Franklin FTSE Europe Hedged ETF, Franklin FTSE France ETF, Franklin FTSE Germany ETF, Franklin FTSE Hong Kong ETF, Franklin FTSE India ETF, Franklin FTSE Italy ETF, Franklin FTSE Japan ETF, Franklin FTSE Japan Hedged ETF, Franklin FTSE Latin America ETF, Franklin FTSE Mexico ETF, Franklin FTSE Saudi Arabia ETF, Franklin FTSE South Africa ETF, Franklin FTSE South Korea ETF, Franklin FTSE Switzerland ETF, Franklin FTSE Taiwan ETF and Franklin FTSE United Kingdom ETF

Opinions on the Financial Statements

We have audited the accompanying statements of assets and liabilities, including the schedules of investments, of Franklin FTSE Asia ex Japan ETF, Franklin FTSE Australia ETF, Franklin FTSE Brazil ETF, Franklin FTSE Canada ETF, Franklin FTSE China ETF, Franklin FTSE Europe ETF, Franklin FTSE Europe Hedged ETF, Franklin FTSE France ETF, Franklin FTSE Germany ETF, Franklin FTSE Hong Kong ETF, Franklin FTSE India ETF, Franklin FTSE Italy ETF, Franklin FTSE Japan ETF, Franklin FTSE Japan Hedged ETF, Franklin FTSE Latin America ETF, Franklin FTSE Mexico ETF, Franklin FTSE Saudi Arabia ETF, Franklin FTSE South Africa ETF, Franklin FTSE South Korea ETF, Franklin FTSE Switzerland ETF, Franklin FTSE Taiwan ETF and Franklin FTSE United Kingdom ETF (twenty-two of the funds constituting Franklin Templeton ETF Trust, hereafter collectively referred to as the "Funds") as of March 31, 2023, the related statements of operations for the year ended March 31, 2023, the statements of changes in net assets for each of the two years in the period ended March 31, 2023, including the related notes, and the financial highlights for each of the periods indicated therein (collectively referred to as the “financial statements”). In our opinion, the financial statements present fairly, in all material respects, the financial position of each of the Funds as of March 31, 2023, the results of each of their operations for the year then ended, the changes in each of their net assets for each of the two years in the period ended March 31, 2023 and each of the financial highlights for each of the periods indicated therein in conformity with accounting principles generally accepted in the United States of America.

Basis for Opinions

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

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

Our audits included performing procedures to assess the risks of material misstatement of the financial statements, whether due to error or fraud, and performing procedures that respond to those risks. Such procedures included examining, on a test basis, evidence regarding the amounts and disclosures in the financial statements. Our audits also included evaluating the accounting principles used and significant estimates made by management, as well as evaluating the overall presentation of the financial statements. Our procedures included confirmation of securities owned as of March 31, 2023 by correspondence with the custodian, transfer agent and brokers; when replies were not received from brokers, we performed other auditing procedures. We believe that our audits provide a reasonable basis for our opinions.

PricewaterhouseCoopers LLP

San Francisco, California

May 23, 2023

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

 

           
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FRANKLIN TEMPLETON ETF TRUST

 

Tax information (unaudited)

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

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

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

 

      Pursuant to:     

Franklin FTSE

Asia ex Janpan

ETF

    

Franklin FTSE

Australia

ETF

    

Franklin FTSE

Brazil

ETF

    

Franklin FTSE

Canada

ETF

 
Long-Term Capital Gain Dividends      §852(b)(3)(C)        $         —        $            —        $—        $            —  
Qualified Dividend Income (QDI)      §854(b)(1)(B)        $432,488        $1,659,460        $—        $6,243,337  
Short-Term Capital Gain Dividends      §871(k)(2)(C)        $         —        $            —        $—        $            —  
      Pursuant to:     

Franklin FTSE

China

ETF

    

Franklin FTSE

Europe

ETF

    

Franklin FTSE
Europe Hedged

ETF

    

Franklin FTSE

France

ETF

 
Long-Term Capital Gain Dividends      §852(b)(3)(C)        $            —        $            —        $1,854,370        $          —  
Qualified Dividend Income (QDI)      §854(b)(1)(B)        $1,864,327        $3,315,327        $   590,158        $228,229  
Short-Term Capital Gain Dividends      §871(k)(2)(C)        $            —        $            —        $1,223,776        $          —  
      Pursuant to:     

Franklin FTSE

Germany

ETF

    

Franklin FTSE

Hong Kong

ETF

    

Franklin FTSE

India

ETF

    

Franklin FTSE

Italy

ETF

 
Long-Term Capital Gain Dividends      §852(b)(3)(C)        $         —        $—        $          —        $          —  
Qualified Dividend Income (QDI)      §854(b)(1)(B)        $396,209        $—        $797,312        $155,960  
Short-Term Capital Gain Dividends      §871(k)(2)(C)        $         —        $—        $          —        $          —  
      Pursuant to:     

Franklin FTSE
Japan

ETF

    

Franklin FTSE

Japan Hedged

ETF

     Franklin FTSE
Latin America
ETF
    

Franklin FTSE

Mexico

ETF

 
Long-Term Capital Gain Dividends      §852(b)(3)(C)        $              —        $3,446,187        $          —        $          —  
Qualified Dividend Income (QDI)      §854(b)(1)(B)        $17,494,206        $   446,213        $519,676        $454,652  
Short-Term Capital Gain Dividends      §871(k)(2)(C)        $              —        $2,106,927        $          —        $          —  
      Pursuant to:     

Franklin FTSE

Saudi Arabia

ETF

    

Franklin FTSE

South Africa

ETF

    

Franklin FTSE

South Korea

ETF

    

Franklin FTSE

Switzerland

ETF

 
Long-Term Capital Gain Dividends      §852(b)(3)(C)        $—        $         —        $            —        $            —  
Qualified Dividend Income (QDI)      §854(b)(1)(B)        $—        $158,331        $2,388,233        $1,191,933  
Short-Term Capital Gain Dividends      §871(k)(2)(C)        $—        $         —        $            —        $            —  
                      Pursuant to:     

Franklin FTSE

Taiwan

ETF

    

Franklin FTSE

United Kingdom

ETF

 
Long-Term Capital Gain Dividends            §852(b)(3)(C)        $—        $               —  
Qualified Dividend Income (QDI)            §854(b)(1)(B)        $—        $20,402,341  
Short-Term Capital Gain Dividends            §871(k)(2)(C)        $—        $               —  

 

           
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FRANKLIN TEMPLETON ETF TRUST

 

Tax information (unaudited) (continued)

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

 

     

Franklin FTSE

Asia ex Janpan

ETF

    

Franklin FTSE
Australia

ETF

    

Franklin FTSE

Brazil

ETF

    

Franklin FTSE

Canada

ETF

 
Foreign Taxes Paid      $154,749        $     11,667        $  1,353,900        $1,211,661  
Foreign Source Income      $984,149        $1,700,733        $36,993,572        $7,991,293  
     

Franklin FTSE

China

ETF

    

Franklin FTSE

Europe

ETF

    

Franklin FTSE

Europe Hedged

ETF

    

Franklin FTSE

France

ETF

 
Foreign Taxes Paid      $   199,000        $   292,678        $  49,382        $     1,126  
Foreign Source Income      $3,163,497        $3,772,704        $631,757        $261,445  
     

Franklin FTSE

Germany

ETF

    

Franklin FTSE

Hong Kong

ETF

    

Franklin FTSE
India

ETF

    

Franklin FTSE

Italy

ETF

 
Foreign Taxes Paid      $  71,213        $       443        $351,881        $  23,213  
Foreign Source Income      $515,557        $518,118        $820,696        $157,311  
     

Franklin FTSE

Japan

ETF

    

Franklin FTSE

Japan Hedged

ETF

    

Franklin FTSE

Latin America

ETF

    

Franklin FTSE

Mexico

ETF

 
Foreign Taxes Paid      $  2,413,241        $  52,222        $   241,585        $  33,514  
Foreign Source Income      $23,596,110        $521,762        $4,206,885        $496,442  
     

Franklin FTSE

Saudi Arabia

ETF

    

Franklin FTSE

South Africa

ETF

    

Franklin FTSE

South Korea

ETF

    

Franklin FTSE

Switzerland

ETF

 
Foreign Taxes Paid      $  13,295        $  25,133        $   501,177        $   187,623  
Foreign Source Income      $270,256        $186,396        $2,990,894        $1,314,229  
                     

Franklin FTSE

Taiwan

ETF

    

Franklin FTSE

United Kingdom

ETF

 
Foreign Taxes Paid            $   388,893        $       14,061  
Foreign Source Income            $1,985,202        $20,830,214  

 

           
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Board Members and Officers

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

Independent Board Members

 

Name,Year of Birth

and Address

  Position  

Length of

Time Served

   

Number of Portfolios in

Fund Complex Overseen

by Board Member*

   

Other Directorships Held During

at Least the Past 5 Years

Rohit Bhagat (1964)

One Franklin Parkway

San Mateo, CA 94403-1906

 

Lead

Independent Trustee

    Since 2016       59     AssetMark Financial Holdings, Inc. (investment solutions) (2018-present) and PhonePe (2020-present) (payment and financial services); formerly, Axis Bank (financial) (2013- 2021), FlipKart Limited (2019-2020) (eCommerce company); CapFloat Financial Services Pvt., Ltd. (non-banking finance company) (2018) and Zentific Investment Management (hedge fund) (2015-2018).
Principal Occupation During at Least the Past 5 Years:
Managing Member, Mukt Capital, LLC (private investment firm) (2014-present); Advisor, Optimal Asset Management (investment technology and advisory services company) (2015-present); Chief Executive Officer and Director, FinTech Evolution Acquisition (eCommerce company) (February 2021-present); and formerly, Chairman, Asia Pacific, BlackRock (2009-2012); Global Chief Operating Officer, Barclays Global Investors (investment management) (2005-2009); and Senior Partner, The Boston Consulting Group (management consulting) (1992-2005).

Deborah D. McWhinney (1955)

One Franklin Parkway

San Mateo, CA 94403-1906

  Trustee     Since 2020       59     IHS Markit (information services) (2015-present), Borg Warner (automotive) (2018-present), LegalShield (consumer services) (2020-present); and formerly, Fluor Corporation (construction and engineering) (2014-2020) and Focus Financial Partner, LLC (financial services) (2018-2020).
Principal Occupation During at Least the Past 5 Years:
Director of various companies; and formerly, Board Member, Lloyds Banking Group (2015-2018) (financial institution)) and Fresenius Medical Group (2016-2018) (healthcare); Chief Executive Officer (2013-2014) and Chief Operating Officer (2011-2013), Citi Group Global Enterprise Payments (financial services); and President, Citi’s Personal Banking and Wealth Management (2009-2011).
Anantha K. Pradeep (1963)   Trustee   Since 2016     59     None

One Franklin Parkway

San Mateo, CA 94403-1906

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

 

           
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Interested Board Members and Officers

 

Name, Year of Birth

and Address

  Position   

Length of Time

Served

   Number of Portfolios in
Fund Complex Overseen
by Board Member*
   Other Directorships Held During
at Least the Past 5 Years

**Jennifer M. Johnson (1964)

One Franklin Parkway

San Mateo, CA 94403-1906

  Trustee and Chairperson of the Board    Since 2016    70    None
Principal Occupation During at Least the Past 5 Years:
Chief Executive Officer, President and Director, Franklin Resources, Inc.; officer and/or director or trustee, of some of the other subsidiaries of Franklin Resources, Inc. and of certain funds in the Franklin Templeton/Legg Mason fund complex; and formerly, Chief Operating Officer and Executive Vice President, Franklin Resources, Inc. (1994-2015); Executive Vice President of Operations and Technology, Franklin Resources, Inc. (2005-2010); and Senior Vice President, Franklin Resources, Inc. (2003-2005).
Alison E. Baur (1964)
One Franklin Parkway
San Mateo, CA 94403-1906
  Vice President    Since 2016    Not Applicable    Not Applicable
Principal Occupation During at Least the Past 5 Years:
Deputy General Counsel, Franklin Templeton; and officer of some of the other subsidiaries of Franklin Resources, Inc. and of certain funds in the Franklin Templeton/Legg Mason fund complex.
Steven J. Gray (1955)
One Franklin Parkway
San Mateo, CA 94403-1906
  Vice President    Since 2016    Not Applicable    Not Applicable
Principal Occupation During at Least the Past 5 Years:
Senior Associate General Counsel, Franklin Templeton; Assistant Secretary, Franklin Distributors, LLC; and officer of certain funds in the Franklin Templeton/Legg Mason fund complex.
Matthew T. Hinkle (1971)
One Franklin Parkway
San Mateo, CA 94403-1906
  Chief Executive Officer –Finance and Administration    Since 2017    Not Applicable    Not Applicable
Principal Occupation During at Least the Past 5 Years:
Senior Vice President, Franklin Templeton Services, LLC; officer of certain funds in the Franklin Templeton/Legg Mason fund complex; and formerly, Vice President, Global Tax (2012-April 2017) and Treasurer/Assistant Treasurer, Franklin Templeton (2009-2017).
Fred Jensen (1963)
620 Eighth Avenue, 47th Floor
New York, NY 10018
  Chief Compliance Officer    Since 2021    Not Applicable    Not Applicable
Principal Occupation During at Least the Past 5 Years:
Director - Global Compliance of Franklin Templeton; Managing Director of Legg Mason & Co.; Director of Compliance, Legg Mason Office of the Chief Compliance Officer; Chief Compliance Officer, Franklin Advisory Services, LLC; Compliance Officer, Franklin Advisers, Inc.; officer of certain funds in the Franklin Templeton/Legg Mason fund complex; formerly, Chief Compliance Officer of Legg Mason Global Asset Allocation; Chief Compliance Officer, Legg Mason Private Portfolio; Chief Compliance Officer to The Reserves Funds (investment adviser, funds and broker-dealer) and Ambac Financial Group (investment adviser, funds and broker-dealer).
Susan Kerr (1949)
620 Eighth Avenue
New York, NY 10018
  Vice President - AML Compliance    Since 2021    Not Applicable    Not Applicable
Principal Occupation During at Least the Past 5 Years:      
Senior Compliance Analyst, Franklin Templeton; Chief Anti-Money Laundering Compliance Officer, Legg Mason & Co., or its affiliates; Anti Money Laundering Compliance Officer; Senior Compliance Officer, LMIS; and officer of certain funds in the Franklin Templeton/Legg Mason fund complex.
Todd Mathias (1983)
One Franklin Parkway,
San Mateo, Ca 94403-1906
  Vice President    Since March 2022    Not Applicable    Not Applicable
Principal Occupation During at Least the Past 5 Years:      
Head of US ETF Product Strategy, Franklin Templeton; and officer of certain funds in the Franklin Templeton/Legg Mason fund complex.

 

           
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Interested Board Members and Officers (continued)

 

Name, Year of Birth

and Address

  Position   

Length of Time

Served

   Number of Portfolios in
Fund Complex Overseen
by Board Member*
   Other Directorships Held During
at Least the Past 5 Years
Patrick O’Connor (1967)
One Franklin Parkway
San Mateo, CA 94403-1906
  President and Chief Executive Officer – Investment Management    Since 2016    Not Applicable    Not Applicable
Principal Occupation During at Least the Past 5 Years:      
President and Chief Investment Officer, Franklin Advisory Services, LLC; Senior Vice President, Franklin Advisers, Inc.; and officer of certain funds in the Franklin Templeton/Legg Mason fund complex.
Vivek Pai (1970)
300 S.E. 2nd Street
Fort Lauderdale,
FL 33301-1923
  Treasurer, Chief Financial Officer and Chief Accounting Officer    Since 2019    Not Applicable    Not Applicable
Principal Occupation During at Least the Past 5 Years:      
Treasurer, U.S. Fund Administration & Reporting and officer of certain funds in the Franklin Templeton/Legg Mason fund complex.
Navid J. Tofigh (1972)
One Franklin Parkway,
San Mateo, Ca 94403-1906
  Vice President and Secretary    Since 2015    Not Applicable    Not Applicable
Principal Occupation During at Least the Past 5 Years:      
Senior Associate General Counsel, Franklin Templeton; and officer of certain funds in the Franklin Templeton/Legg Mason fund complex.
Lori A. Weber (1964)
300 S.E. 2nd Street
Fort Lauderdale, FL 33301-1923
  Vice President and Secretary    Vice President since 2011 and Secretary since 2013    Not Applicable    Not Applicable
Principal Occupation During at Least the Past 5 Years:      
Senior Associate General Counsel, Franklin Templeton; Assistant Secretary, Franklin Resources, Inc.; Vice President and Secretary, Templeton Investment Counsel, LLC; and officer of certain funds in the Franklin Templeton/Legg Mason fund complex.

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

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

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

The Sarbanes-Oxley Act of 2002 and Rules adopted by the Securities and Exchange Commission require the Fund to disclose whether the Fund’s Audit Committee includes at least one member who is an audit committee financial expert within the meaning of such Act and Rules. The Fund’s Board has determined that there is at least one such financial expert on the Audit Committee and has designated Rohit Bhagat and Deboarah D. McWhinney as its audit committee financial experts. The Board believes that Mr. Bhagat and Ms. McWhinney qualify as such an expert in view of their extensive business background and experience, including extensive experience in the asset management and financial services industries. Mr. Bhagat has been a Member and Chairman of the Fund’s Audit Committee since 2017. Ms. McWhinney has been a member of the Fund Audit Committee since 2020. As a result of such background and experience, the Board believes that Mr. Bhagat and Ms. McWhinney have acquired an understanding of generally accepted accounting principles and financial statements, the general application of such principles in connection with the accounting estimates, accruals and reserves, and analyzing and evaluating financial statements that presents a breadth and level of complexity of accounting issues generally comparable to those of the Fund, as well as an understanding of internal controls and procedures for financial reporting and an understanding of audit committee functions. Mr. Bhagat and Ms. McWhinney are independent Board members as that term is defined under the relevant Securities and Exchange Commission Rules and Releases.

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

 

           
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Shareholder Information

 

Proxy Voting Policies and Procedures

The Trust’s investment manager has established Proxy Voting Policies and Procedures (Policies) that the Trust uses to determine how to vote proxies relating to portfolio securities. Shareholders may view the Trust’s complete Policies online at franklintempleton.com. Alternatively, shareholders may request copies of the Policies free of charge by calling the Proxy Group collect at (954) 527-7678 or by sending a written request to: Franklin Templeton Companies, LLC, 300 S.E. 2nd Street, Fort Lauderdale, FL 33301, Attention: Proxy Group. Copies of the Trust’s proxy voting records are also made available online at franklintempleton.com and posted on the U.S. Securities and Exchange Commission’s website at sec.gov and reflect the most recent 12-month period ended June 30.

Quarterly Schedule of Investments

The Trust files a complete schedule of investments with the U.S. Securities and Exchange Commission for the first and third quarters for each fiscal year as an exhibit to its report on Form N-PORT. Shareholders may view the filed Form N-PORT by visiting the Commission’s website at sec.gov. The filed form may also be viewed and copied at the Commission’s Public Reference Room in Washington, DC. Information regarding the operations of the Public Reference Room may be obtained by calling (800) SEC-0330.

Premium/Discount Information

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

    

 

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

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

 

 

 

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Annual Report

Franklin Templeton ETF Trust

 
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