ANNUAL REPORT
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FRANKLIN TEMPLETON ETF TRUST
March 31, 2023
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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 |
Visit franklintempleton.com for fund updates and documents, or to find helpful financial planning tools. |
Not FDIC Insured | | | May Lose Value | | | No Bank Guarantee |
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Annual Report |
1 |
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.
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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 |
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Banks |
11.4% | |||
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Semiconductors & Semiconductor Equipment |
10.0% | |||
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Interactive Media & Services |
6.4% | |||
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Technology Hardware, Storage & Peripherals |
5.8% | |||
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Insurance |
4.4% | |||
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Oil, Gas & Consumable Fuels |
3.8% | |||
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Internet & Direct Marketing Retail |
3.5% | |||
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Hotels, Restaurants & Leisure |
3.4% | |||
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Real Estate Management & Development |
3.4% | |||
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Electronic Equipment, Instruments & Components |
3.3% | |||
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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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FRANKLIN FTSE ASIA EX JAPAN ETF
Top 10 Holdings | ||||
3/31/23 | ||||
Company Sector/Industry, Country |
% of Total Net Assets |
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Taiwan Semiconductor Manufacturing Co. Ltd. Semiconductors & Semiconductor Equipment, Taiwan |
6.7% | |||
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Tencent Holdings Ltd. Interactive Media & Services, China |
4.7% | |||
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Samsung Electronics Co. Ltd. Technology
Hardware, Storage & Peripherals, |
4.3% | |||
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Alibaba Group Holding Ltd., Class A Internet & Direct Marketing Retail, China |
3.0% | |||
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AIA Group Ltd. Insurance, Hong Kong |
2.0% | |||
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Reliance Industries Ltd. Oil, Gas & Consumable Fuels, India |
1.5% | |||
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Meituan, Class B Hotels, Restaurants & Leisure, China |
1.4% | |||
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Infosys Ltd. IT Services, India |
1.0% | |||
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China Construction Bank Corp., Class H Banks, China |
1.0% | |||
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Housing Development Finance Corp. Ltd. Financial Services, India |
0.9% | |||
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Top 10 Countries | ||||
3/31/23 | ||||
% of Total Net Assets |
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China |
35.4% | |||
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Taiwan |
16.4% | |||
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India |
15.8% | |||
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South Korea |
13.1% | |||
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Hong Kong |
7.4% | |||
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Singapore |
3.6% | |||
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Thailand |
2.6% | |||
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Indonesia |
2.3% | |||
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Malaysia |
1.8% | |||
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Philippines |
0.9% | |||
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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.
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Annual Report |
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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 | |||||||||||||||
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Based on NAV3 |
Based on market price4 |
Based on NAV3 |
Based on market price4 |
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1-Year |
-9.10% | -8.16% | -9.10% | -8.16% | ||||||||||||
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3-Year |
+24.58% | +25.35% | +7.60% | +7.82% | ||||||||||||
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5-Year |
+1.72% | -0.62% | +0.34% | -0.12% | ||||||||||||
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Since Inception (2/6/18) |
+1.50% | +1.40% | +0.29% | +0.27% | ||||||||||||
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Performance data represent past performance, which does not guarantee future results. Investment return and principal value will fluctuate, and you may have a gain or loss when you sell your shares. Current performance may differ from figures shown. For most recent month-end performance, go to franklintempleton.com or call (800) 342-5236.
See page 7 for Performance Summary footnotes.
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FRANKLIN 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.
See page 7 for Performance Summary footnotes.
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Annual Report |
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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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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) |
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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 |
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$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.
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Annual Report |
franklintempleton.com |
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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9 |
FRANKLIN FTSE AUSTRALIA ETF
Top 10 Holdings | ||
3/31/23 | ||
Company Sector/Industry, Country |
% of Total Net Assets | |
BHP Group Ltd. Metals & Mining, Australia |
12.2% | |
Commonwealth Bank of Australia Banks, Australia |
8.5% | |
CSL Ltd. Biotechnology, Australia |
7.1% | |
National Australia Bank Ltd. Banks, Australia |
4.5% | |
Westpac Banking Corp. Banks, Australia |
3.9% | |
ANZ Group Holdings Ltd. Banks, Australia |
3.5% | |
Woodside Energy Group Ltd. Oil, Gas & Consumable Fuels, Australia |
3.2% | |
Macquarie Group Ltd. Capital Markets, Australia |
3.1% | |
Wesfarmers Ltd. Broadline Retail, Australia |
2.9% | |
Woolworths Group Ltd. Consumer Staples Distribution & Retail, Australia |
2.4% |
Manager’s Discussion
For the fiscal year ended March 31, 2023, the sectors that contributed to the Fund’s absolute performance were energy and utilities. Individual holdings that lifted the Fund’s absolute return included Woodside Petroleum, Mineral Resources and Brambles.
For the same period, the sectors that detracted most from the Fund’s absolute performance were financials, materials and real estate. Individual holdings that hindered the Fund’s absolute return included Commonwealth Bank of Australia, National Australia Bank and Macquarie Group.
Thank you for your participation in Franklin FTSE Australia ETF. We look forward to serving your future investment needs.
Dina Ting, CFA
Hailey Harris
Joe Diederich
Basit Amin, CFA
Portfolio Management Team
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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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 |
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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.
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Annual Report |
11 |
FRANKLIN FTSE AUSTRALIA ETF
PERFORMANCE SUMMARY
Total Return Index Comparison for a Hypothetical $10,000 Investment1
Total return represents the change in value of an investment over the periods shown. It includes any applicable maximum sales charge, Fund expenses, account fees and reinvested distributions. The unmanaged index includes reinvestment of any income or distributions. It differs from the Fund in composition and does not pay management fees or expenses. One cannot invest directly in an index.
11/2/17-3/31/23
See page 13 for Performance Summary footnotes.
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Annual Report |
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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.
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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 |
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.
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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.
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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.
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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
See page 19 for Performance Summary footnotes.
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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.
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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.
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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.
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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
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.
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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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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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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.
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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.
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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
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.
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FRANKLIN FTSE CHINA ETF
Your Fund’s Expenses
As a Fund shareholder, you can incur two types of costs: (1) transaction costs, including brokerage commissions on purchases and sales of Fund shares; and (2) ongoing Fund costs, including management fees and other Fund expenses. All funds have ongoing costs, sometimes referred to as operating expenses. The table below shows ongoing costs of investing in the Fund and can help you understand these costs and compare them with those of other funds. The table assumes a $1,000 investment held for the six months indicated.
Actual Fund Expenses
The table below provides information about actual account values and actual expenses in the columns under the heading “Actual.” In these columns the Fund’s actual return, which includes the effect of Fund expenses, is used to calculate the “Ending Account Value.” You can estimate the expenses you paid during the period by following these steps (of course, your account value and expenses will differ from those in this illustration): Divide your account value by $1,000 (if your account had an $8,600 value, then $8,600 ÷ $1,000 = 8.6). Then multiply the result by the number in the row under the headings “Actual” and “Expenses Paid During Period” (if Actual Expenses Paid During Period were $7.50, then 8.6 × $7.50 = $64.50). In this illustration, the actual expenses paid this period are $64.50.
Hypothetical Example for Comparison with Other Funds
Under the heading “Hypothetical” in the table, information is provided about hypothetical account values and hypothetical expenses based on the Fund’s actual expense ratio and an assumed rate of return of 5% per year before expenses, which is not the Fund’s actual return. This information may not be used to estimate the actual ending account balance or expenses you paid for the period, but it can help you compare ongoing costs of investing in the Fund with those of other funds. To do so, compare this 5% hypothetical example with the 5% hypothetical examples that appear in the shareholder reports of other funds.
Please note that expenses shown in the table are meant to highlight ongoing costs and do not reflect any transactional costs. Therefore, information under the heading “Hypothetical” is useful in comparing ongoing costs only, and will not help you compare total costs of owning different funds. In addition, if transactional costs were included, your total costs would have been higher.
Actual (actual return after expenses) |
Hypothetical (5% annual return before expenses) |
|||||||||||||||||||||
Beginning Account Value 10/1/22 |
Ending Account |
Expenses Paid During 10/1/22–3/31/231 |
Ending Account |
Expenses Paid During 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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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.
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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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Annual Report |
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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
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
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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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
See page 50 for Performance Summary footnotes.
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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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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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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.
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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
See page 56 for Performance Summary footnotes.
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Annual Report |
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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 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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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
See page 62 for Performance Summary footnotes.
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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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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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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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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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FRANKLIN FTSE INDIA ETF
PERFORMANCE SUMMARY
Total Return Index Comparison for a Hypothetical $10,000 Investment1
Total return represents the change in value of an investment over the periods shown. It includes any applicable maximum sales charge, Fund expenses, account fees and reinvested distributions. The unmanaged index includes reinvestment of any income or distributions. It differs from the Fund in composition and does not pay management fees or expenses. One cannot invest directly in an index.
2/6/18-3/31/23
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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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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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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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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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
See page 74 for Performance Summary footnotes.
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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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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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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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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
See page 80 for Performance Summary footnotes.
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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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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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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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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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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
See page 86 for Performance Summary footnotes.
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PERFORMANCE SUMMARY
Distributions (4/1/22–3/31/23) |
|
|||||||||
Net Investment Income |
Short-Term Capital Gain |
Long-Term Capital Gain |
Total | |||||||
$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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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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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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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
See page 92 for Performance Summary footnotes.
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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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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
See page 98 for Performance Summary footnotes.
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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
See page 104 for Performance Summary footnotes.
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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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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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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
See page 110 for Performance Summary footnotes.
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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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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 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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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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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.
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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
See page 116 for Performance Summary footnotes.
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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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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 |
Expenses Paid During 10/1/22–3/31/231 |
Ending Account Value 3/31/23 |
Expenses Paid During 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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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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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.
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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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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
See page 122 for Performance Summary footnotes.
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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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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 |
Expenses Paid During Period 10/1/22–3/31/231 |
Ending Account |
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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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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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.
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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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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
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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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 |
Ending Account |
Expenses Paid During Period 10/1/22–3/31/231 |
Ending Account |
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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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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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
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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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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Annual Report |
135 |
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% | — |
136 |
Annual Report | The accompanying notes are an integral part of these financial statements. |
franklintempleton.com |
FRANKLIN TEMPLETON ETF TRUST
Schedule of Investments, March 31, 2023
Franklin FTSE Asia ex Japan ETF
Industry | Shares | Value | ||||||||
Common Stocks 99.5% |
||||||||||
Cambodia 0.0%† |
||||||||||
aNagaCorp Ltd. |
Hotels, Restaurants & Leisure | 8,075 | $ | 6,295 | ||||||
|
|
|||||||||
China 35.4% | ||||||||||
360 DigiTech, Inc., ADR |
Consumer Finance | 532 | 10,321 | |||||||
360 Security Technology, Inc., Class A |
Software | 2,500 | 6,353 | |||||||
b3SBio, Inc., Class A |
Biotechnology | 7,000 | 6,973 | |||||||
aAAC Technologies Holdings, Inc., Class H |
Electronic Equipment, Instruments & Components | 3,500 | 8,632 | |||||||
ADAMA Ltd., Class A |
Chemicals | 400 | 531 | |||||||
Addsino Co. Ltd., Class A |
Communications Equipment | 700 | 1,147 | |||||||
aAdvanced Micro-Fabrication Equipment, Inc. China, Class A |
Semiconductors & Semiconductor Equipment | 175 | 3,759 | |||||||
AECC Aero-Engine Control Co. Ltd., Class A |
Aerospace & Defense | 400 | 1,419 | |||||||
AECC Aviation Power Co. Ltd., Class A |
Aerospace & Defense | 900 | 5,655 | |||||||
aAgile Group Holdings Ltd. |
Real Estate Management & Development | 8,000 | 1,783 | |||||||
Agricultural Bank of China Ltd., Class A |
Banks | 33,300 | 15,081 | |||||||
Agricultural Bank of China Ltd., Class H |
Banks | 147,000 | 54,493 | |||||||
Aier Eye Hospital Group Co. Ltd., Class A |
Health Care Providers & Services | 2,504 | 11,329 | |||||||
aAir China Ltd., Class A |
Airlines | 2,100 | 3,272 | |||||||
aAir China Ltd., Class H |
Airlines | 8,000 | 7,154 | |||||||
Airtac International Group, Class A |
Machinery | 770 | 29,968 | |||||||
a,bAkeso, Inc. |
Biotechnology | 2,000 | 10,293 | |||||||
aAlibaba Group Holding Ltd., Class A |
Internet & Direct Marketing Retail | 70,600 | 902,966 | |||||||
bA-Living Smart City Services Co. Ltd., Class H |
Commercial Services & Supplies | 3,500 | 3,036 | |||||||
All Winner Technology Co. Ltd., Class A, A |
Semiconductors & Semiconductor Equipment | 400 | 1,590 | |||||||
aAlpha Group, Class A |
Leisure Products | 400 | 369 | |||||||
Aluminum Corp. of China Ltd., Class A |
Metals & Mining | 4,200 | 3,376 | |||||||
Aluminum Corp. of China Ltd., Class H |
Metals & Mining | 20,000 | 10,140 | |||||||
aAmlogic Shanghai Co. Ltd., Class A |
Semiconductors & Semiconductor Equipment | 175 | 2,144 | |||||||
aAn Hui Wenergy Co. Ltd., Class A |
Independent Power Producers & Energy Traders | 1,100 | 790 | |||||||
Angang Steel Co. Ltd., Class A |
Metals & Mining | 1,800 | 778 | |||||||
Angang Steel Co. Ltd., Class H |
Metals & Mining | 8,000 | 2,558 | |||||||
Angel Yeast Co. Ltd., Class A |
Food Products | 400 | 2,432 | |||||||
bAngelalign Technology, Inc. |
Health Care Equipment & Supplies | 200 | 2,973 | |||||||
Anhui Anke Biotechnology Group Co. Ltd., Class A |
Pharmaceuticals | 532 | 856 | |||||||
Anhui Conch Cement Co. Ltd., Class A |
Construction Materials | 1,400 | 5,759 | |||||||
Anhui Conch Cement Co. Ltd., Class H |
Construction Materials | 5,690 | 19,716 | |||||||
Anhui Expressway Co. Ltd., Class A |
Transportation Infrastructure | 400 | 520 | |||||||
Anhui Expressway Co. Ltd., Class H |
Transportation Infrastructure | 2,000 | 2,015 | |||||||
Anhui Gujing Distillery Co. Ltd., Class A |
Beverages | 100 | 4,310 | |||||||
Anhui Gujing Distillery Co. Ltd., Class B |
Beverages | 600 | 10,708 | |||||||
Anhui Zhongding Sealing Parts Co. Ltd., Class A |
Automobile Components | 400 | 740 | |||||||
Anjoy Foods Group Co. Ltd., Class A |
Food Products | 100 | 2,383 | |||||||
Anker Innovations Technology Co. Ltd., Class A, A |
Technology Hardware, Storage & Peripherals | 100 | 967 | |||||||
ANTA Sports Products Ltd., Class A |
Textiles, Apparel & Luxury Goods | 5,600 | 81,325 | |||||||
Apeloa Pharmaceutical Co. Ltd., Class A |
Pharmaceuticals | 400 | 1,241 | |||||||
Asymchem Laboratories Tianjin Co. Ltd., Class A |
Pharmaceuticals | 40 | 777 | |||||||
Autohome, Inc., ADR |
Software | 301 | 10,074 | |||||||
Avary Holding Shenzhen Co. Ltd., Class A |
Electronic Equipment, Instruments & Components | 400 | 1,807 | |||||||
AVIC Industry-Finance Holdings Co. Ltd., Class A |
Financial Services | 3,200 | 1,910 | |||||||
AviChina Industry & Technology Co. Ltd., Class H |
Aerospace & Defense | 13,000 | 6,823 | |||||||
AVICOPTER PLC, Class A |
Aerospace & Defense | 200 | 1,232 | |||||||
bBAIC Motor Corp. Ltd., Class H |
Automobiles | 12,500 | 3,471 | |||||||
aBaidu, Inc., Class A |
Interactive Media & Services | 10,850 | 205,529 | |||||||
Bank of Beijing Co. Ltd., Class A |
Banks | 7,000 | 4,485 | |||||||
Bank of Changsha Co. Ltd., Class A |
Banks | 1,100 | 1,267 |
franklintempleton.com |
Annual Report |
137 |
FRANKLIN TEMPLETON ETF TRUST
SCHEDULE OF INVESTMENTS
Franklin FTSE Asia ex Japan ETF (continued)
Industry | Shares | Value | ||||||||
Common Stocks (continued) |
||||||||||
China (continued) |
||||||||||
Bank of Chengdu Co. Ltd., Class A |
Banks | 400 | $ | 790 | ||||||
Bank of China Ltd., Class A |
Banks | 15,800 | 7,777 | |||||||
Bank of China Ltd., Class H |
Banks | 371,000 | 142,257 | |||||||
Bank of Communications Co. Ltd., Class A |
Banks | 14,000 | 10,417 | |||||||
Bank of Communications Co. Ltd., Class H |
Banks | 37,000 | 23,284 | |||||||
Bank of Guiyang Co. Ltd., Class A |
Banks | 1,100 | 883 | |||||||
Bank of Hangzhou Co. Ltd., Class A |
Banks | 2,100 | 3,550 | |||||||
Bank of Jiangsu Co. Ltd., Class A |
Banks | 2,080 | 2,126 | |||||||
Bank of Nanjing Co. Ltd., Class A |
Banks | 3,200 | 4,175 | |||||||
Bank of Ningbo Co. Ltd., Class A |
Banks | 2,480 | 9,862 | |||||||
Bank of Qingdao Co. Ltd., Class A |
Banks | 1,400 | 669 | |||||||
Bank of Shanghai Co. Ltd., Class A |
Banks | 5,380 | 4,693 | |||||||
aBank of Zhengzhou Co. Ltd., Class A |
Banks | 3,084 | 1,019 | |||||||
Baoshan Iron & Steel Co. Ltd., Class A |
Metals & Mining | 6,300 | 5,725 | |||||||
BBMG Corp., Class A |
Construction Materials | 2,100 | 749 | |||||||
BBMG Corp., Class H |
Construction Materials | 14,000 | 1,819 | |||||||
aBeiGene Ltd. |
Biotechnology | 3,000 | 49,453 | |||||||
Beijing Capital Development Co. Ltd., Class A |
Real Estate Management & Development | 700 | 465 | |||||||
Beijing Capital Eco-Environment Protection Group Co. Ltd., Class A |
Water Utilities | 2,800 | 1,211 | |||||||
aBeijing Capital International Airport Co. Ltd., Class H |
Transportation Infrastructure | 10,000 | 7,363 | |||||||
aBeijing Dabeinong Technology Group Co. Ltd., Class A |
Food Products | 1,100 | 1,251 | |||||||
Beijing Easpring Material Technology Co. Ltd., Class A |
Chemicals | 200 | 1,675 | |||||||
aBeijing E-Hualu Information Technology Co. Ltd., Class A |
Software | 400 | 2,203 | |||||||
Beijing Enlight Media Co. Ltd., Class A |
Entertainment | 1,100 | 1,424 | |||||||
Beijing Enterprises Holdings Ltd., Class H |
Industrial Conglomerates | 2,500 | 8,997 | |||||||
Beijing Haixin Energy Technology Co. Ltd., Class A |
Chemicals | 700 | 408 | |||||||
aBeijing Jetsen Technology Co. Ltd., Class A, A |
Software | 1,100 | 1,075 | |||||||
Beijing Jingneng Clean Energy Co. Ltd., Class H |
Independent Power Producers & Energy Traders | 10,000 | 2,382 | |||||||
Beijing Kingsoft Office Software, Inc., Class A |
Software | 124 | 8,541 | |||||||
Beijing New Building Materials PLC, Class A |
Building Products | 700 | 2,736 | |||||||
aBeijing Orient National Communication Science & Technology Co. Ltd., Class A |
Software | 400 | 878 | |||||||
Beijing Originwater Technology Co. Ltd., Class A |
Commercial Services & Supplies | 247 | 182 | |||||||
Beijing Shiji Information Technology Co. Ltd., Class A |
Software | 700 | 2,616 | |||||||
Beijing Shougang Co. Ltd., Class A |
Metals & Mining | 1,800 | 999 | |||||||
Beijing Shunxin Agriculture Co. Ltd., Class A |
Beverages | 400 | 2,068 | |||||||
Beijing Sinnet Technology Co. Ltd., Class A |
IT Services | 700 | 1,367 | |||||||
Beijing SL Pharmaceutical Co. Ltd., Class A |
Biotechnology | 400 | 502 | |||||||
Beijing Tongrentang Co. Ltd., Class A |
Pharmaceuticals | 500 | 4,015 | |||||||
Beijing Ultrapower Software Co. Ltd., Class A |
IT Services | 700 | 960 | |||||||
Beijing United Information Technology Co. Ltd., Class A, A |
Trading Companies & Distributors | 145 | 1,751 | |||||||
Beijing Wantai Biological Pharmacy Enterprise Co. Ltd., Class A |
Biotechnology | 145 | 2,452 | |||||||
Beijing Yanjing Brewery Co. Ltd., Class A |
Beverages | 700 | 1,428 | |||||||
Beijing Yuanliu Hongyuan Electronic Technology Co. Ltd., Class A, A |
Electronic Equipment, Instruments & Components | 100 | 1,121 | |||||||
Beijing Zhong Ke San Huan High-Tech Co. Ltd., Class A |
Electronic Equipment, Instruments & Components | 445 | 849 | |||||||
BGI Genomics Co. Ltd., Class A, A |
Biotechnology | 100 | 1,005 |
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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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 |
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SCHEDULE OF INVESTMENTS
Franklin FTSE Asia ex Japan ETF (continued)
Industry | Shares | Value | ||||||||
Common Stocks (continued) |
||||||||||
China (continued) |
||||||||||
China Northern Rare Earth Group High-Tech Co. Ltd., Class A |
Metals & Mining | 1,400 | $ | 5,319 | ||||||
China Oilfield Services Ltd., Class A |
Energy Equipment & Services | 700 | 1,486 | |||||||
China Oilfield Services Ltd., Class H |
Energy Equipment & Services | 8,000 | 8,204 | |||||||
China Overseas Land & Investment Ltd., Class A |
Real Estate Management & Development | 18,500 | 44,683 | |||||||
China Pacific Insurance Group Co. Ltd., Class A |
Insurance | 2,500 | 9,436 | |||||||
China Pacific Insurance Group Co. Ltd., Class H |
Insurance | 12,600 | 33,466 | |||||||
China Petroleum & Chemical Corp., Class A |
Oil, Gas & Consumable Fuels | 11,600 | 9,493 | |||||||
China Petroleum & Chemical Corp., Class H |
Oil, Gas & Consumable Fuels | 118,000 | 69,748 | |||||||
China Railway Group Ltd., Class A |
Construction & Engineering | 7,000 | 7,013 | |||||||
China Railway Group Ltd., Class H |
Construction & Engineering | 21,000 | 12,814 | |||||||
China Railway Signal & Communication Corp. Ltd., Class A |
Electronic Equipment, Instruments & Components | 2,333 | 1,841 | |||||||
bChina Railway Signal & Communication Corp. Ltd., Class H |
Electronic Equipment, Instruments & Components | 7,000 | 2,577 | |||||||
aChina Rare Earth Resources & Technology Co. Ltd., Class A, A |
Metals & Mining | 400 | 1,967 | |||||||
China Reinsurance Group Corp., Class H |
Insurance | 35,000 | 2,452 | |||||||
China Resources Boya Bio-pharmaceutical Group Co. Ltd., Class A, A |
Biotechnology | 200 | 1,017 | |||||||
China Resources Cement Holdings Ltd. |
Construction Materials | 12,000 | 5,885 | |||||||
China Resources Double Crane Pharmaceutical Co. Ltd., Class A |
Pharmaceuticals | 400 | 1,004 | |||||||
China Resources Microelectronics Ltd., Class A, A |
Semiconductors & Semiconductor Equipment | 343 | 3,020 | |||||||
bChina Resources Mixc Lifestyle Services Ltd. |
Real Estate Management & Development | 2,600 | 13,662 | |||||||
bChina Resources Pharmaceutical Group Ltd., Class A |
Pharmaceuticals | 7,500 | 5,943 | |||||||
China Resources Power Holdings Co. Ltd. |
Independent Power Producers & Energy Traders | 8,800 | 18,744 | |||||||
China Resources Sanjiu Medical & Pharmaceutical Co. Ltd., Class A |
Pharmaceuticals | 400 | 3,346 | |||||||
aChina Ruyi Holdings Ltd. |
Entertainment | 16,000 | 4,178 | |||||||
China Shenhua Energy Co. Ltd., Class A |
Oil, Gas & Consumable Fuels | 2,500 | 10,255 | |||||||
China Shenhua Energy Co. Ltd., Class H |
Oil, Gas & Consumable Fuels | 16,563 | 52,116 | |||||||
China South Publishing & Media Group Co. Ltd., Class A |
Media | 700 | 1,186 | |||||||
aChina Southern Airlines Co. Ltd., Class A |
Airlines | 3,900 | 4,469 | |||||||
aChina Southern Airlines Co. Ltd., Class H |
Airlines | 8,000 | 5,707 | |||||||
China Southern Power Grid Energy Efficiency&Clean Energy Co. Ltd., Class A, A |
Commercial Services & Supplies | 1,100 | 1,243 | |||||||
China State Construction Engineering Corp. Ltd., Class A |
Construction & Engineering | 14,700 | 12,415 | |||||||
China Suntien Green Energy Corp. Ltd., Class H |
Oil, Gas & Consumable Fuels | 9,000 | 3,932 | |||||||
China Taiping Insurance Holdings Co. Ltd. |
Insurance | 7,000 | 7,437 | |||||||
China Three Gorges Renewables Group Co. Ltd., Class A, A |
Independent Power Producers & Energy Traders | 8,800 | 7,022 | |||||||
China Tourism Group Duty Free Corp. Ltd., Class A |
Hotels, Restaurants & Leisure | 600 | 16,010 | |||||||
a,bChina Tourism Group Duty Free Corp. Ltd., Class H |
Specialty Retail | 300 | 7,418 | |||||||
bChina Tower Corp. Ltd., Class H |
Diversified Telecommunication Services | 232,000 | 28,077 | |||||||
aChina TransInfo Technology Co. Ltd., Class A |
IT Services | 400 | 783 | |||||||
aChina Travel International Investment Hong Kong Ltd., Class A |
Hotels, Restaurants & Leisure | 14,000 | 2,871 | |||||||
China United Network Communications Ltd., Class A |
Wireless Telecommunication Services | 8,800 | 6,945 | |||||||
China Vanke Co. Ltd., Class A |
Real Estate Management & Development | 3,500 | 7,767 |
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Industry | Shares | Value | ||||||||
Common Stocks (continued) |
||||||||||
China (continued) |
||||||||||
China Vanke Co. Ltd., Class H |
Real Estate Management & Development | 9,500 | $ | 14,982 | ||||||
China World Trade Center Co. Ltd., Class A, A |
Real Estate Management & Development | 400 | 993 | |||||||
China Yangtze Power Co. Ltd., Class A |
Independent Power Producers & Energy Traders | 7,000 | 21,661 | |||||||
China Zhenhua Group Science & Technology Co. Ltd., Class A, A |
Electronic Equipment, Instruments & Components | 200 | 2,623 | |||||||
aChina Zheshang Bank Co. Ltd., Class A |
Banks | 2,500 | 1,041 | |||||||
Chinalin Securities Co. Ltd., Class A, A |
Capital Markets | 400 | 854 | |||||||
Chinese Universe Publishing & Media Group Co. Ltd., Class A |
Media | 400 | 722 | |||||||
Chongqing Brewery Co. Ltd., Class A |
Beverages | 200 | 3,640 | |||||||
Chongqing Changan Automobile Co. Ltd., Class A |
Automobiles | 2,820 | 4,895 | |||||||
Chongqing Changan Automobile Co. Ltd., Class B |
Automobiles | 8,338 | 3,664 | |||||||
Chongqing Fuling Zhacai Group Co. Ltd., Class A |
Food Products | 400 | 1,475 | |||||||
Chongqing Rural Commercial Bank Co. Ltd., Class A |
Banks | 1,800 | 962 | |||||||
Chongqing Rural Commercial Bank Co. Ltd., Class H |
Banks | 12,000 | 4,372 | |||||||
Chongqing Water Group Co. Ltd., Class A |
Water Utilities | 400 | 313 | |||||||
Chongqing Zhifei Biological Products Co. Ltd., Class A |
Biotechnology | 600 | 7,158 | |||||||
Chow Tai Fook Jewellery Group Ltd., Class A |
Specialty Retail | 8,800 | 17,466 | |||||||
CIFI Holdings Group Co. Ltd., Class A |
Real Estate Management & Development | 20,880 | 2,022 | |||||||
CITIC Ltd., Class B |
Industrial Conglomerates | 23,000 | 26,897 | |||||||
Citic Pacific Special Steel Group Co. Ltd., Class A |
Metals & Mining | 1,880 | 4,867 | |||||||
CITIC Securities Co. Ltd., Class A |
Capital Markets | 4,395 | 13,107 | |||||||
CITIC Securities Co. Ltd., Class H |
Capital Markets | 11,000 | 23,485 | |||||||
CMOC Group Ltd., Class A |
Metals & Mining | 3,500 | 3,053 | |||||||
CMOC Group Ltd., Class H |
Metals & Mining | 21,000 | 12,707 | |||||||
CMST Development Co. Ltd., Class A |
Air Freight & Logistics | 400 | 308 | |||||||
CNGR Advanced Material Co. Ltd., Class A |
Chemicals | 200 | 2,087 | |||||||
CNOOC Energy Technology & Services Ltd., Class A |
Energy Equipment & Services | 2,500 | 1,201 | |||||||
Contemporary Amperex Technology Co. Ltd., Class A |
Electrical Equipment | 800 | 47,302 | |||||||
COSCO SHIPPING Development Co. Ltd., Class A |
Marine Transportation | 2,800 | 1,007 | |||||||
COSCO SHIPPING Development Co. Ltd., Class H |
Marine Transportation | 18,000 | 2,385 | |||||||
aCOSCO SHIPPING Energy Transportation Co. Ltd., Class A |
Marine Transportation | 1,100 | 2,169 | |||||||
aCOSCO SHIPPING Energy Transportation Co. Ltd., Class H |
Marine Transportation | 6,000 | 6,191 | |||||||
COSCO SHIPPING Holdings Co. Ltd., Class A |
Marine Transportation | 4,600 | 7,388 | |||||||
COSCO SHIPPING Holdings Co. Ltd., Class H |
Marine Transportation | 15,950 | 17,941 | |||||||
Country Garden Holdings Co. Ltd. |
Real Estate Management & Development | 60,000 | 16,892 | |||||||
Country Garden Services Holdings Co. Ltd. |
Commercial Services & Supplies | 9,300 | 16,088 | |||||||
CRRC Corp. Ltd., Class A |
Machinery | 8,100 | 7,219 | |||||||
CRRC Corp. Ltd., Class H |
Machinery | 21,000 | 11,450 | |||||||
CSC Financial Co. Ltd., Class A |
Capital Markets | 1,800 | 6,718 | |||||||
bCSC Financial Co. Ltd., Class H |
Capital Markets | 4,500 | 4,385 | |||||||
CSG Holding Co. Ltd., Class A |
Construction Materials | 700 | 684 | |||||||
CSG Holding Co. Ltd., Class B |
Construction Materials | 5,401 | 2,043 | |||||||
CSPC Pharmaceutical Group Ltd., Class A |
Pharmaceuticals | 40,000 | 39,338 | |||||||
Daan Gene Co. Ltd., Class A |
Biotechnology | 612 | 1,436 | |||||||
aDada Nexus Ltd., Class A, ADR |
Consumer Staples Distribution & Retail | 343 | 2,905 |
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SCHEDULE OF INVESTMENTS
Franklin FTSE Asia ex Japan ETF (continued)
Industry | Shares | Value | ||||||||
Common Stocks (continued) |
||||||||||
China (continued) |
||||||||||
bDali Foods Group Co. Ltd. |
Food Products | 11,000 | $ | 4,596 | ||||||
Daqin Railway Co. Ltd., Class A |
Ground Transportation | 5,300 | 5,549 | |||||||
aDaqo New Energy Corp., ADR |
Semiconductors & Semiconductor Equipment | 280 | 13,115 | |||||||
aDatang International Power Generation Co. Ltd., Class A |
Independent Power Producers & Energy Traders | 2,800 | 1,235 | |||||||
aDatang International Power Generation Co. Ltd., Class H |
Independent Power Producers & Energy Traders | 14,000 | 2,532 | |||||||
DHC Software Co. Ltd., Class A |
IT Services | 1,100 | 1,329 | |||||||
Dian Diagnostics Group Co. Ltd., Class A |
Health Care Providers & Services | 400 | 1,669 | |||||||
Digital China Information Service Co. Ltd., Class A |
IT Services | 400 | 816 | |||||||
Do-Fluoride New Materials Co. Ltd., Class A |
Chemicals | 400 | 1,934 | |||||||
Dong-E-E-Jiao Co. Ltd., Class A |
Pharmaceuticals | 200 | 1,543 | |||||||
Dongfang Electric Corp. Ltd., Class A |
Electrical Equipment | 1,100 | 3,037 | |||||||
Dongfang Electric Corp. Ltd., Class H |
Electrical Equipment | 1,800 | 2,908 | |||||||
Dongfeng Motor Group Co. Ltd., Class H |
Automobiles | 14,000 | 6,563 | |||||||
Dongguan Development Holdings Co. Ltd., Class A |
Transportation Infrastructure | 400 | 567 | |||||||
Dongxing Securities Co. Ltd., Class A |
Capital Markets | 1,100 | 1,346 | |||||||
a,bEast Buy Holding Ltd. |
Diversified Consumer Services | 1,000 | 4,312 | |||||||
East Group Co. Ltd., Class A |
Electrical Equipment | 400 | 453 | |||||||
East Money Information Co. Ltd., Class A |
Capital Markets | 4,888 | 14,257 | |||||||
Easyhome New Retail Group Co. Ltd., Class A, A |
Broadline Retail | 1,100 | 742 | |||||||
Ecovacs Robotics Co. Ltd., Class A |
Household Durables | 200 | 2,406 | |||||||
ENN Energy Holdings Ltd. |
Gas Utilities | 3,600 | 49,346 | |||||||
ENN Natural Gas Co. Ltd., Class A |
Chemicals | 1,100 | 3,340 | |||||||
bESR Group Ltd., Class H |
Real Estate Management & Development | 9,800 | 17,578 | |||||||
Eternal Asia Supply Chain Management Ltd., Class A |
Commercial Services & Supplies | 900 | 773 | |||||||
Eve Energy Co. Ltd., Class A |
Electrical Equipment | 680 | 6,902 | |||||||
Everbright Securities Co. Ltd., Class A |
Capital Markets | 1,400 | 3,107 | |||||||
bEverbright Securities Co. Ltd., Class H |
Capital Markets | 1,400 | 951 | |||||||
a,bEvergrande Property Services Group Ltd. |
Real Estate Management & Development | 24,000 | 3,253 | |||||||
aFangda Carbon New Material Co. Ltd., Class A |
Electrical Equipment | 1,460 | 1,369 | |||||||
FAW Jiefang Group Co. Ltd. |
Automobiles | 1,100 | 1,329 | |||||||
Fiberhome Telecommunication Technologies Co. Ltd., Class A |
Communications Equipment | 400 | 1,142 | |||||||
Financial Street Holdings Co. Ltd., Class A |
Real Estate Management & Development | 1,100 | 804 | |||||||
First Capital Securities Co. Ltd., Class A |
Capital Markets | 1,400 | 1,217 | |||||||
Flat Glass Group Co. Ltd., Class A |
Semiconductors & Semiconductor Equipment | 400 | 1,998 | |||||||
Flat Glass Group Co. Ltd., Class H |
Semiconductors & Semiconductor Equipment | 2,000 | 5,733 | |||||||
Focus Media Information Technology Co. Ltd., Class A |
Technology Hardware, Storage & Peripherals | 5,500 | 5,502 | |||||||
Foshan Haitian Flavouring & Food Co. Ltd., Class A |
Food Products | 1,400 | 15,604 | |||||||
Fosun International Ltd. |
Industrial Conglomerates | 10,500 | 7,704 | |||||||
Foxconn Industrial Internet Co. Ltd., Class A |
Electronic Equipment, Instruments & Components | 4,600 | 11,535 | |||||||
Fujian Funeng Co. Ltd., Class A |
Independent Power Producers & Energy Traders | 400 | 714 | |||||||
Fujian Sunner Development Co. Ltd., Class A |
Food Products | 400 | 1,436 | |||||||
aFull Truck Alliance Co. Ltd., ADR |
Ground Transportation | 3,017 | 22,959 | |||||||
Fuyao Glass Industry Group Co. Ltd., Class A |
Automobile Components | 700 | 3,543 | |||||||
bFuyao Glass Industry Group Co. Ltd., Class H |
Automobile Components | 2,800 | 12,199 | |||||||
Ganfeng Lithium Group Co. Ltd., Class A |
Metals & Mining | 600 | 5,808 | |||||||
bGanfeng Lithium Group Co. Ltd., Class H |
Metals & Mining | 1,400 | 8,703 | |||||||
aGCL System Integration Technology Co. Ltd., Class A |
Semiconductors & Semiconductor Equipment | 1,400 | 636 | |||||||
aGCL Technology Holdings Ltd. |
Semiconductors & Semiconductor Equipment | 98,000 | 25,343 |
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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 |
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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) |
||||||||||
Guizhou Xinbang Pharmaceutical Co. Ltd., Class A |
Pharmaceuticals | 400 | $ | 293 | ||||||
Guolian Securities Co. Ltd., Class A |
Capital Markets | 700 | 1,079 | |||||||
Guosen Securities Co. Ltd., Class A |
Capital Markets | 1,600 | 2,183 | |||||||
aGuosheng Financial Holding, Inc., Class A |
Electrical Equipment | 400 | 508 | |||||||
Guotai Junan Securities Co. Ltd., Class A |
Capital Markets | 2,500 | 5,228 | |||||||
bGuotai Junan Securities Co. Ltd., Class H |
Capital Markets | 3,600 | 4,375 | |||||||
Guoyuan Securities Co. Ltd., Class A |
Capital Markets | 1,920 | 1,890 | |||||||
aH World Group Ltd., ADR |
Hotels, Restaurants & Leisure | 1,015 | 49,715 | |||||||
a,bHaidilao International Holding Ltd. |
Hotels, Restaurants & Leisure | 7,200 | 19,491 | |||||||
Haier Smart Home Co. Ltd., Class A |
Household Durables | 2,100 | 6,935 | |||||||
Haier Smart Home Co. Ltd., Class H |
Household Durables | 11,200 | 35,241 | |||||||
Haisco Pharmaceutical Group Co. Ltd., Class A |
Pharmaceuticals | 400 | 1,451 | |||||||
Haitian International Holdings Ltd. |
Machinery | 3,000 | 7,758 | |||||||
Haitong Securities Co. Ltd., Class A |
Capital Markets | 3,200 | 4,105 | |||||||
Haitong Securities Co. Ltd., Class H |
Capital Markets | 16,800 | 10,487 | |||||||
aHang Zhou Great Star Industrial Co. Ltd., Class A |
Household Durables | 400 | 1,102 | |||||||
Hangzhou Binjiang Real Estate Group Co. Ltd., Class A |
Real Estate Management & Development | 700 | 933 | |||||||
Hangzhou First Applied Material Co. Ltd., Class A |
Semiconductors & Semiconductor Equipment | 324 | 2,772 | |||||||
Hangzhou Robam Appliances Co. Ltd., Class A |
Household Durables | 400 | 1,652 | |||||||
Hangzhou Shunwang Technology Co. Ltd., Class A |
Entertainment | 400 | 901 | |||||||
Hangzhou Silan Microelectronics Co. Ltd., Class A |
Semiconductors & Semiconductor Equipment | 600 | 3,234 | |||||||
Hangzhou Tigermed Consulting Co. Ltd., Class A |
Life Sciences Tools & Services | 300 | 4,181 | |||||||
bHangzhou Tigermed Consulting Co. Ltd., Class H |
Life Sciences Tools & Services | 400 | 3,755 | |||||||
Han’s Laser Technology Industry Group Co. Ltd., Class A |
Machinery | 400 | 1,768 | |||||||
bHansoh Pharmaceutical Group Co. Ltd. |
Pharmaceuticals | 5,000 | 8,688 | |||||||
Haohua Chemical Science & Technology Co. Ltd., Class A, A |
Chemicals | 400 | 2,601 | |||||||
Hefei Meiya Optoelectronic Technology, Inc., Class A |
Machinery | 120 | 564 | |||||||
Heilongjiang Agriculture Co. Ltd., Class A |
Food Products | 700 | 1,368 | |||||||
Henan Shuanghui Investment & Development Co. Ltd., Class A |
Food Products | 1,200 | 4,533 | |||||||
Hengan International Group Co. Ltd. |
Personal Products | 3,500 | 16,185 | |||||||
Hengdian Group DMEGC Magnetics Co. Ltd., Class A |
Electronic Equipment, Instruments & Components | 700 | 2,096 | |||||||
Hengli Petrochemical Co. Ltd., Class A |
Chemicals | 1,260 | 2,972 | |||||||
Hengtong Optic-electric Co. Ltd., Class A |
Communications Equipment | 700 | 1,539 | |||||||
Hengyi Petrochemical Co. Ltd., Class A |
Chemicals | 1,100 | 1,301 | |||||||
Hesteel Co. Ltd., Class A |
Metals & Mining | 4,600 | 1,561 | |||||||
Hithink RoyalFlush Information Network Co. Ltd., Class A |
Capital Markets | 200 | 5,950 | |||||||
aHolitech Technology Co. Ltd., Class A |
Electronic Equipment, Instruments & Components | 700 | 314 | |||||||
Hopson Development Holdings Ltd. |
Real Estate Management & Development | 4,182 | 3,825 | |||||||
Hoshine Silicon Industry Co. Ltd., Class A |
Chemicals | 200 | 2,418 | |||||||
a,bHua Hong Semiconductor Ltd. |
Semiconductors & Semiconductor Equipment | 2,000 | 8,854 | |||||||
Huadian Power International Corp. Ltd., Class A |
Independent Power Producers & Energy Traders | 1,800 | 1,518 | |||||||
Huadian Power International Corp. Ltd., Class H |
Independent Power Producers & Energy Traders | 10,000 | 4,102 | |||||||
Huadong Medicine Co. Ltd., Class A |
Health Care Providers & Services | 700 | 4,724 | |||||||
Huafon Chemical Co. Ltd., Class A |
Chemicals | 1,400 | 1,521 | |||||||
Huagong Tech Co. Ltd., Class A |
Electronic Equipment, Instruments & Components | 400 | 1,480 | |||||||
Huaibei Mining Holdings Co. Ltd., Class A |
Metals & Mining | 700 | 1,382 | |||||||
Hualan Biological Engineering, Inc., Class A |
Biotechnology | 700 | 2,225 |
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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 |
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Franklin FTSE Asia ex Japan ETF (continued)
Industry | Shares | Value | ||||||||
Common Stocks (continued) |
||||||||||
China (continued) |
||||||||||
Jiangling Motors Corp. Ltd., Class A, A |
Automobiles | 400 | $ | 824 | ||||||
Jiangsu Eastern Shenghong Co. Ltd., Class A |
Chemicals | 1,400 | 2,777 | |||||||
Jiangsu Expressway Co. Ltd., Class A |
Transportation Infrastructure | 400 | 486 | |||||||
Jiangsu Expressway Co. Ltd., Class H |
Transportation Infrastructure | 6,000 | 5,595 | |||||||
Jiangsu Hengli Hydraulic Co. Ltd., Class A |
Machinery | 496 | 4,783 | |||||||
Jiangsu Hengrui Pharmaceuticals Co. Ltd., Class A |
Pharmaceuticals | 2,332 | 14,541 | |||||||
Jiangsu King’s Luck Brewery JSC Ltd., Class A |
Beverages | 500 | 4,722 | |||||||
Jiangsu Linyang Energy Co. Ltd., Class A |
Electrical Equipment | 700 | 806 | |||||||
Jiangsu Yanghe Brewery Joint-Stock Co. Ltd., Class A |
Beverages | 500 | 12,047 | |||||||
Jiangsu Yangnong Chemical Co. Ltd., Class A |
Chemicals | 100 | 1,414 | |||||||
Jiangsu Yuyue Medical Equipment & Supply Co. Ltd., Class A |
Health Care Equipment & Supplies | 400 | 1,855 | |||||||
Jiangsu Zhangjiagang Rural Commercial Bank Co. Ltd., Class A |
Banks | 480 | 313 | |||||||
aJiangsu Zhongnan Construction Group Co. Ltd., Class A |
Real Estate Management & Development | 1,800 | 532 | |||||||
Jiangsu Zhongtian Technology Co. Ltd., Class A |
Electrical Equipment | 1,100 | 2,737 | |||||||
Jiangxi Copper Co. Ltd., Class A |
Metals & Mining | 700 | 2,017 | |||||||
Jiangxi Copper Co. Ltd., Class H |
Metals & Mining | 6,000 | 10,166 | |||||||
aJiangxi Special Electric Motor Co. Ltd., Class A, A |
Electrical Equipment | 700 | 1,569 | |||||||
aJiangxi Zhengbang Technology Co. Ltd., Class A |
Food Products | 700 | 336 | |||||||
Jilin Aodong Pharmaceutical Group Co. Ltd., Class A |
Pharmaceuticals | 400 | 892 | |||||||
aJinke Properties Group Co. Ltd., Class A |
Real Estate Management & Development | 2,500 | 579 | |||||||
Jinke Smart Services Group Co. Ltd., Class H |
Real Estate Management & Development | 1,400 | 2,140 | |||||||
bJinxin Fertility Group Ltd. |
Health Care Providers & Services | 7,500 | 5,025 | |||||||
JiuGui Liquor Co. Ltd., Class A |
Beverages | 100 | 1,883 | |||||||
bJiumaojiu International Holdings Ltd. |
Hotels, Restaurants & Leisure | 3,000 | 7,139 | |||||||
Jizhong Energy Resources Co. Ltd., Class A |
Oil, Gas & Consumable Fuels | 1,100 | 1,096 | |||||||
Joincare Pharmaceutical Group Industry Co. Ltd., Class A |
Pharmaceuticals | 700 | 1,342 | |||||||
Joinn Laboratories China Co. Ltd., Class A |
Life Sciences Tools & Services | 140 | 1,067 | |||||||
bJoinn Laboratories China Co. Ltd., Class H |
Life Sciences Tools & Services | 420 | 1,635 | |||||||
aJointo Energy Investment Co. Ltd. Hebei, Class A |
Independent Power Producers & Energy Traders | 400 | 298 | |||||||
Jointown Pharmaceutical Group Co. Ltd., Class A |
Health Care Providers & Services | 700 | 1,523 | |||||||
Jonjee Hi-Tech Industrial & Commercial Holding Co. Ltd., Class A |
Food Products | 400 | 2,161 | |||||||
Joyoung Co. Ltd., Class A |
Household Durables | 400 | 1,044 | |||||||
JOYY, Inc., ADR |
Interactive Media & Services | 224 | 6,984 | |||||||
Juewei Food Co. Ltd., Class A |
Food Products | 100 | 638 | |||||||
aJuneyao Airlines Co. Ltd., Class A, A |
Airlines | 400 | 1,047 | |||||||
aKaishan Group Co. Ltd., Class A |
Machinery | 400 | 1,031 | |||||||
aKanzhun Ltd., ADR |
Interactive Media & Services | 672 | 12,788 | |||||||
aKE Holdings, Inc., ADR |
Real Estate Management & Development | 3,003 | 56,577 | |||||||
Keda Industrial Group Co. Ltd. |
Machinery | 700 | 1,471 | |||||||
Kerry Logistics Network Ltd. |
Air Freight & Logistics | 1,500 | 2,331 | |||||||
Kingboard Holdings Ltd. |
Electronic Equipment, Instruments & Components | 3,500 | 10,745 | |||||||
aKingdee International Software Group Co. Ltd. |
Software | 13,000 | 21,065 | |||||||
aKingsoft Cloud Holdings Ltd., ADR |
IT Services | 497 | 4,418 | |||||||
Kingsoft Corp. Ltd. |
Software | 4,400 | 21,664 | |||||||
a,bKuaishou Technology, Class B |
Interactive Media & Services | 9,100 | 70,076 | |||||||
Kuang-Chi Technologies Co. Ltd., Class A |
Automobile Components | 700 | 1,688 | |||||||
Kunlun Tech Co. Ltd., Class A |
Entertainment | 400 | 2,725 | |||||||
Kweichow Moutai Co. Ltd., Class A |
Beverages | 420 | 111,310 | |||||||
aLakala Payment Co. Ltd., Class A |
IT Services | 400 | 1,094 |
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Franklin FTSE Asia ex Japan ETF (continued)
Industry | Shares | Value | ||||||||
Common Stocks (continued) |
||||||||||
China (continued) |
||||||||||
Lao Feng Xiang Co. Ltd., Class B |
Textiles, Apparel & Luxury Goods | 1,100 | $ | 3,674 | ||||||
Laobaixing Pharmacy Chain JSC, Class A |
Consumer Staples Distribution & Retail | 130 | 709 | |||||||
LB Group Co. Ltd., Class A |
Chemicals | 900 | 2,653 | |||||||
Lee & Man Paper Manufacturing Ltd. |
Paper & Forest Products | 7,000 | 2,800 | |||||||
bLegend Holdings Corp., Class H |
Technology Hardware, Storage & Peripherals | 2,700 | 2,879 | |||||||
Lenovo Group Ltd. |
Technology Hardware, Storage & Peripherals | 36,000 | 38,981 | |||||||
Lens Technology Co. Ltd., Class A |
Electronic Equipment, Instruments & Components | 1,800 | 3,541 | |||||||
aLeo Group Co. Ltd., Class A |
Media | 2,100 | 731 | |||||||
Lepu Medical Technology Beijing Co. Ltd., Class A |
Health Care Equipment & Supplies | 700 | 2,363 | |||||||
Levima Advanced Materials Corp., Class A, A |
Chemicals | 400 | 1,661 | |||||||
Leyard Optoelectronic Co. Ltd., Class A |
Electronic Equipment, Instruments & Components | 700 | 694 | |||||||
aLi Auto, Inc., Class A |
Automobiles | 5,100 | 63,669 | |||||||
Li Ning Co. Ltd. |
Textiles, Apparel & Luxury Goods | 11,000 | 86,739 | |||||||
LianChuang Electronic Technology Co. Ltd., Class A |
Electronic Equipment, Instruments & Components | 400 | 745 | |||||||
Lianhe Chemical Technology Co. Ltd., Class A |
Chemicals | 400 | 821 | |||||||
Liaoning Port Co. Ltd., Class A |
Transportation Infrastructure | 6,700 | 1,561 | |||||||
aLingyi iTech Guangdong Co., Class A |
Electrical Equipment | 2,800 | 2,520 | |||||||
Livzon Pharmaceutical Group, Inc., Class A |
Pharmaceuticals | 200 | 1,089 | |||||||
Livzon Pharmaceutical Group, Inc., Class H |
Pharmaceuticals | 800 | 2,823 | |||||||
bLongfor Group Holdings Ltd. |
Real Estate Management & Development | 9,330 | 26,326 | |||||||
LONGi Green Energy Technology Co. Ltd., Class A |
Semiconductors & Semiconductor Equipment | 2,400 | 14,123 | |||||||
Longshine Technology Group Co. Ltd., Class A, A |
Software | 400 | 1,557 | |||||||
Luenmei Quantum Co. Ltd., Class A |
Water Utilities | 700 | 633 | |||||||
Lufax Holding Ltd., ADR |
Consumer Finance | 3,416 | 6,969 | |||||||
Luxi Chemical Group Co. Ltd., Class A |
Chemicals | 700 | 1,391 | |||||||
Luxshare Precision Industry Co. Ltd., Class A |
Electronic Equipment, Instruments & Components | 2,500 | 11,034 | |||||||
a,bLuye Pharma Group Ltd. |
Pharmaceuticals | 9,500 | 4,405 | |||||||
Luzhou Laojiao Co. Ltd., Class A |
Beverages | 500 | 18,551 | |||||||
Maanshan Iron & Steel Co. Ltd., Class A |
Metals & Mining | 1,800 | 755 | |||||||
Maanshan Iron & Steel Co. Ltd., Class H |
Metals & Mining | 4,000 | 922 | |||||||
Mango Excellent Media Co. Ltd., Class A |
Entertainment | 740 | 4,013 | |||||||
Maxscend Microelectronics Co. Ltd., Class A |
Electronic Equipment, Instruments & Components | 160 | 2,898 | |||||||
aMeinian Onehealth Healthcare Holdings Co. Ltd., Class A |
Health Care Providers & Services | 1,520 | 1,664 | |||||||
a,bMeituan, Class B |
Hotels, Restaurants & Leisure | 22,700 | 414,964 | |||||||
Metallurgical Corp. of China Ltd., Class A |
Construction & Engineering | 5,600 | 3,180 | |||||||
Metallurgical Corp. of China Ltd., Class H |
Construction & Engineering | 15,000 | 3,879 | |||||||
aMicroport Scientific Corp. |
Health Care Equipment & Supplies | 4,200 | 9,877 | |||||||
Ming Yang Smart Energy Group Ltd., Class A |
Electrical Equipment | 700 | 2,294 | |||||||
Ming Yuan Cloud Group Holdings Ltd. |
Software | 3,000 | 1,922 | |||||||
MINISO Group Holding Ltd., ADR |
Broadline Retail | 364 | 6,457 | |||||||
Minth Group Ltd. |
Automobile Components | 3,500 | 10,567 | |||||||
aMMG Ltd. |
Metals & Mining | 12,000 | 3,516 | |||||||
Montage Technology Co. Ltd., Class A |
Semiconductors & Semiconductor Equipment | 297 | 3,007 | |||||||
aMontnets Cloud Technology Group Co. Ltd., Class A |
Software | 400 | 839 | |||||||
Muyuan Foods Co. Ltd., Class A |
Food Products | 1,896 | 13,528 | |||||||
NanJi E-Commerce Co. Ltd., Class A |
Media | 700 | 517 | |||||||
Nanjing Hanrui Cobalt Co. Ltd., Class A |
Metals & Mining | 100 | 616 | |||||||
Nanjing Iron & Steel Co. Ltd., Class A |
Metals & Mining | 2,500 | 1,416 | |||||||
Nanjing King-Friend Biochemical Pharmaceutical Co. Ltd., Class A |
Pharmaceuticals | 520 | 1,234 | |||||||
NARI Technology Co. Ltd., Class A |
Electrical Equipment | 2,580 | 10,185 | |||||||
NAURA Technology Group Co. Ltd., Class A |
Electronic Equipment, Instruments & Components | 200 | 7,742 |
148 |
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) |
||||||||||
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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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) |
||||||||||
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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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 |
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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 |
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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) |
||||||||||
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 |
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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) |
||||||||||
Unigroup Guoxin Microelectronics Co. Ltd., Class A |
Electronic Equipment, Instruments & Components | 319 | $ | 5,162 | ||||||
Uni-President China Holdings Ltd. |
Food Products | 6,000 | 6,054 | |||||||
Unisplendour Corp. Ltd., Class A |
Electronic Equipment, Instruments & Components | 560 | 2,388 | |||||||
Universal Scientific Industrial Shanghai Co. Ltd., Class A |
Electronic Equipment, Instruments & Components | 400 | 1,030 | |||||||
Valiant Co. Ltd., Class A |
Chemicals | 400 | 1,004 | |||||||
aVipshop Holdings Ltd., ADR |
Broadline Retail | 1,883 | 28,584 | |||||||
Visual China Group Co. Ltd., Class A, A |
Interactive Media & Services | 400 | 972 | |||||||
Walvax Biotechnology Co. Ltd., Class A |
Biotechnology | 700 | 3,516 | |||||||
Wangsu Science & Technology Co. Ltd., Class A |
.IT Services | 700 | 733 | |||||||
Wanhua Chemical Group Co. Ltd., Class A |
Chemicals | 1,100 | 15,358 | |||||||
Want Want China Holdings Ltd. |
Food Products | 21,000 | 13,510 | |||||||
Wanxiang Qianchao Co. Ltd., Class A |
Automobile Components | 1,400 | 1,070 | |||||||
aWeibo Corp., ADR |
Interactive Media & Services | 350 | 7,021 | |||||||
Weichai Power Co. Ltd., Class A |
Machinery | 2,500 | 4,591 | |||||||
Weichai Power Co. Ltd., Class H |
Machinery | 10,000 | 16,051 | |||||||
Weifu High-Technology Group Co. Ltd., Class A |
Automobile Components | 400 | 1,176 | |||||||
Weifu High-Technology Group Co. Ltd., Class B |
Automobile Components | 700 | 1,293 | |||||||
Weihai Guangwei Composites Co. Ltd., Class A |
Chemicals | 200 | 1,487 | |||||||
Wens Foodstuffs Group Co. Ltd., Class A |
Food Products | 700 | 2,087 | |||||||
Western Mining Co. Ltd., Class A, A |
Metals & Mining | 700 | 1,291 | |||||||
Western Securities Co. Ltd., Class A |
Capital Markets | 1,800 | 1,670 | |||||||
Western Superconducting Technologies Co. Ltd., Class A |
Metals & Mining | 119 | 1,413 | |||||||
Will Semiconductor Co. Ltd. Shanghai, Class A |
Semiconductors & Semiconductor Equipment | 200 | 2,653 | |||||||
Wingtech Technology Co. Ltd., Class A |
Electronic Equipment, Instruments & Components | 500 | 4,023 | |||||||
Winning Health Technology Group Co. Ltd., Class A |
Health Care Technology | 700 | 1,414 | |||||||
Wolong Electric Group Co. Ltd., Class A |
Electrical Equipment | 400 | 736 | |||||||
Wuchan Zhongda Group Co. Ltd., Class A |
Distributors | 1,800 | 1,271 | |||||||
Wuhan Guide Infrared Co. Ltd., Class A |
Electronic Equipment, Instruments & Components | 1,042 | 1,834 | |||||||
Wuliangye Yibin Co. Ltd., Class A |
Beverages | 1,300 | 37,293 | |||||||
WUS Printed Circuit Kunshan Co. Ltd., Class A |
Electronic Equipment, Instruments & Components | 700 | 2,191 | |||||||
WuXi AppTec Co. Ltd., Class A |
Life Sciences Tools & Services | 900 | 10,419 | |||||||
bWuXi AppTec Co. Ltd., Class H |
Life Sciences Tools & Services | 1,500 | 15,707 | |||||||
a,bWuxi Biologics Cayman, Inc. |
Life Sciences Tools & Services | 17,000 | 105,249 | |||||||
Wuxi Shangji Automation Co. Ltd., Class A |
Machinery | 140 | 2,082 | |||||||
XCMG Construction Machinery Co. Ltd., Class A |
.Machinery | 2,500 | 2,523 | |||||||
Xiamen C & D, Inc., Class A |
Trading Companies & Distributors | 1,100 | 1,933 | |||||||
Xiamen Faratronic Co. Ltd., Class A, A |
Electronic Equipment, Instruments & Components | 100 | 2,126 | |||||||
Xiamen ITG Group Corp. Ltd., Class A |
Trading Companies & Distributors | 700 | 879 | |||||||
Xiamen Tungsten Co. Ltd., Class A |
Metals & Mining | 500 | 1,484 | |||||||
Xiangcai Co. Ltd., Class A |
Real Estate Management & Development | 700 | 971 | |||||||
a,bXiaomi Corp., Class B |
Technology Hardware, Storage & Peripherals | 71,400 | 110,057 | |||||||
Xinhua Winshare Publishing & Media Co. Ltd., Class H |
Distributors | 2,000 | 1,572 | |||||||
Xinjiang Goldwind Science & Technology Co. Ltd., Class A |
Electrical Equipment | 1,100 | 1,768 | |||||||
Xinjiang Goldwind Science & Technology Co. Ltd., Class H |
Electrical Equipment | 3,600 | 3,077 | |||||||
Xinjiang Tianshan Cement Co. Ltd., Class A, A |
Construction Materials | 700 | 903 | |||||||
Xinjiang Zhongtai Chemical Co. Ltd., Class A |
Chemicals | 1,100 | 1,161 | |||||||
Xinxing Ductile Iron Pipes Co. Ltd., Class A |
Metals & Mining | 1,800 | 1,056 | |||||||
Xinyangfeng Agricultural Technology Co. Ltd., Class A |
Chemicals | 400 | 626 | |||||||
Xinyi Solar Holdings Ltd. |
Semiconductors & Semiconductor Equipment | 21,000 | 25,173 |
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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 |
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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) |
||||||||||
Zhejiang Hailiang Co. Ltd., Class A |
Metals & Mining | 400 | $ | 679 | ||||||
Zhejiang Hisoar Pharmaceutical Co. Ltd., Class A |
Pharmaceuticals | 400 | 411 | |||||||
Zhejiang Huace Film & Television Co. Ltd., Class A |
Entertainment | 400 | 462 | |||||||
Zhejiang Huahai Pharmaceutical Co. Ltd., Class A |
Pharmaceuticals | 400 | 1,175 | |||||||
Zhejiang Huayou Cobalt Co. Ltd., Class A |
Metals & Mining | 400 | 3,204 | |||||||
Zhejiang Jingsheng Mechanical & Electrical Co. Ltd., Class A |
Semiconductors & Semiconductor Equipment | 500 | 4,754 | |||||||
Zhejiang Jiuzhou Pharmaceutical Co. Ltd., Class A |
Pharmaceuticals | 400 | 1,938 | |||||||
Zhejiang Juhua Co. Ltd., Class A |
Chemicals | 1,100 | 2,832 | |||||||
Zhejiang Medicine Co. Ltd., Class A |
Pharmaceuticals | 400 | 719 | |||||||
Zhejiang NHU Co. Ltd., Class A |
Pharmaceuticals | 1,244 | 3,252 | |||||||
Zhejiang Runtu Co. Ltd., Class A |
Chemicals | 400 | 451 | |||||||
Zhejiang Sanhua Intelligent Controls Co. Ltd., Class A |
Machinery | 400 | 1,500 | |||||||
Zhejiang Semir Garment Co. Ltd., Class A |
Textiles, Apparel & Luxury Goods | 400 | 351 | |||||||
Zhejiang Supcon Technology Co. Ltd., Class A |
Electronic Equipment, Instruments & Components | 200 | 3,024 | |||||||
Zhejiang Supor Co. Ltd., Class A |
Household Durables | 200 | 1,577 | |||||||
aZhejiang Wanliyang Co. Ltd., Class A |
Machinery | 400 | 549 | |||||||
Zhejiang Weiming Environment Protection Co. Ltd., Class A, A |
Commercial Services & Supplies | 520 | 1,381 | |||||||
Zhejiang Weixing New Building Materials Co. Ltd., Class A |
Building Products | 700 | 2,478 | |||||||
Zhejiang Wolwo Bio-Pharmaceutical Co. Ltd., Class A |
Pharmaceuticals | 200 | 1,386 | |||||||
Zhejiang Yongtai Technology Co. Ltd., Class A |
Chemicals | 400 | 1,219 | |||||||
Zhengzhou Coal Mining Machinery Group Co. Ltd., Class A |
Machinery | 700 | 1,433 | |||||||
Zheshang Securities Co. Ltd., Class A |
Capital Markets | 400 | 587 | |||||||
a,bZhongAn Online P&C Insurance Co. Ltd., Class H |
Insurance | 3,900 | 12,296 | |||||||
Zhongji Innolight Co. Ltd., Class A |
Machinery | 400 | 3,431 | |||||||
Zhongshan Public Utilities Group Co. Ltd., Class A |
Water Utilities | 700 | 719 | |||||||
Zhongsheng Group Holdings Ltd. |
Specialty Retail | 3,000 | 14,790 | |||||||
Zhongtai Securities Co. Ltd., Class A |
Capital Markets | 1,100 | 1,073 | |||||||
Zhuhai Huafa Properties Co. Ltd., Class A |
Real Estate Management & Development | 700 | 1,099 | |||||||
Zhuzhou CRRC Times Electric Co. Ltd., Class A, A |
Electrical Equipment | 200 | 1,390 | |||||||
Zhuzhou CRRC Times Electric Co. Ltd., Class H |
Electrical Equipment | 2,700 | 11,746 | |||||||
Zhuzhou Hongda Electronics Corp. Ltd., Class A, A |
Electronic Equipment, Instruments & Components | 200 | 1,328 | |||||||
Zhuzhou Kibing Group Co. Ltd., Class A |
Building Products | 700 | 1,063 | |||||||
Zijin Mining Group Co. Ltd., Class A |
Metals & Mining | 7,400 | 13,351 | |||||||
Zijin Mining Group Co. Ltd., Class H |
Metals & Mining | 28,000 | 46,798 | |||||||
Zoomlion Heavy Industry Science & Technology Co. Ltd., Class A |
Machinery | 2,800 | 2,532 | |||||||
Zoomlion Heavy Industry Science & Technology Co. Ltd., Class H |
Machinery | 7,800 | 4,124 | |||||||
ZTE Corp., Class A |
Communications Equipment | 1,400 | 6,638 | |||||||
ZTE Corp., Class H |
Communications Equipment | 4,000 | 11,720 | |||||||
ZTO Express Cayman, Inc. |
Air Freight & Logistics | 2,100 | 59,924 | |||||||
|
|
|||||||||
10,619,511 | ||||||||||
|
|
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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 |
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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 |
171 |
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 |
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 |
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 |
Annual Report | The accompanying notes are an integral part of these financial statements. |
franklintempleton.com |
FRANKLIN TEMPLETON ETF TRUST
Financial Highlights
Franklin FTSE Australia ETF
Year Ended March 31, | ||||||||||||||||||||
2023 | 2022 | 2021 | 2020 | 2019 | ||||||||||||||||
Per share operating performance (for a share outstanding throughout the year) |
||||||||||||||||||||
Net asset value, beginning of year |
$31.55 | $29.12 | $17.38 | $24.63 | $24.67 | |||||||||||||||
|
|
| ||||||||||||||||||
Income from investment 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% | — |
franklintempleton.com |
The accompanying notes are an integral part of these financial statements. | Annual Report |
173 |
FRANKLIN TEMPLETON ETF TRUST
Schedule of Investments, March 31, 2023
Franklin FTSE Australia ETF
Industry | Shares | Value | ||||||||
Common Stocks 98.3% |
||||||||||
Australia 95.6% |
||||||||||
Adbri Ltd. |
Construction Materials | 10,538 | $ | 11,187 | ||||||
AGL Energy Ltd. |
Multi-Utilities | 13,486 | 72,710 | |||||||
aAllkem Ltd. |
Metals & Mining | 13,266 | 105,553 | |||||||
ALS Ltd. |
Professional Services | 10,868 | 89,967 | |||||||
Altium Ltd. |
Software | 2,662 | 67,892 | |||||||
Alumina Ltd. |
Metals & Mining | 56,738 | 55,480 | |||||||
aAMP Ltd. |
Financial Services | 68,068 | 47,868 | |||||||
Ampol Ltd. |
Oil, Gas & Consumable Fuels | 5,390 | 110,067 | |||||||
Ansell Ltd. |
Health Care Equipment & Supplies | 2,882 | 51,209 | |||||||
ANZ Group Holdings Ltd. |
Banks | 67,628 | 1,038,588 | |||||||
APA Group |
Gas Utilities | 26,796 | 181,620 | |||||||
Aristocrat Leisure Ltd. |
Hotels, Restaurants & Leisure | 14,916 | 371,628 | |||||||
ASX Ltd. |
Capital Markets | 4,378 | 190,649 | |||||||
Atlas Arteria Ltd. |
Transportation Infrastructure | 32,934 | 138,742 | |||||||
Aurizon Holdings Ltd. |
Ground Transportation | 39,842 | 89,659 | |||||||
Bank of Queensland Ltd. |
Banks | 14,828 | 64,453 | |||||||
Beach Energy Ltd. |
Oil, Gas & Consumable Fuels | 40,260 | 38,154 | |||||||
Bendigo & Adelaide Bank Ltd. |
Banks | 12,716 | 73,838 | |||||||
BHP Group Ltd. |
Metals & Mining | 113,762 | 3,598,554 | |||||||
BlueScope Steel Ltd. |
Metals & Mining | 10,494 | 141,621 | |||||||
Boral Ltd. |
Construction Materials | 7,788 | 18,360 | |||||||
Brambles Ltd. |
Commercial Services & Supplies | 31,372 | 282,183 | |||||||
carsales.com Ltd. |
Interactive Media & Services | 8,109 | 120,188 | |||||||
Challenger Ltd. |
Financial Services | 15,180 | 63,441 | |||||||
Charter Hall Group |
Diversified REITs | 10,626 | 78,284 | |||||||
Cleanaway Waste Management Ltd. |
Commercial Services & Supplies | 50,248 | 80,096 | |||||||
Cochlear Ltd. |
Health Care Equipment & Supplies | 1,452 | 230,176 | |||||||
Coles Group Ltd. |
Consumer Staples Distribution & Retail | 28,754 | 347,029 | |||||||
Commonwealth Bank of Australia |
Banks | 38,192 | 2,514,937 | |||||||
Computershare Ltd. |
IT Services | 12,144 | 175,601 | |||||||
CSL Ltd. |
Biotechnology | 10,868 | 2,098,491 | |||||||
CSR Ltd. |
Construction Materials | 10,824 | 34,435 | |||||||
Deterra Royalties Ltd. |
Metals & Mining | 9,658 | 31,049 | |||||||
Dexus |
Diversified REITs | 24,332 | 122,386 | |||||||
Domain Holdings Australia Ltd. |
Interactive Media & Services | 5,720 | 13,447 | |||||||
Domino’s Pizza Enterprises Ltd. |
Hotels, Restaurants & Leisure | 1,430 | 47,763 | |||||||
Downer EDI Ltd. |
Commercial Services & Supplies | 15,400 | 35,378 | |||||||
Endeavour Group Ltd. |
Consumer Staples Distribution & Retail | 30,910 | 140,152 | |||||||
Evolution Mining Ltd. |
Metals & Mining | 38,874 | 81,232 | |||||||
aFlight Centre Travel Group Ltd. |
Hotels, Restaurants & Leisure | 3,432 | 42,478 | |||||||
Fortescue Metals Group Ltd. |
Metals & Mining | 35,948 | 541,473 | |||||||
Goodman Group |
Diversified REITs | 41,448 | 521,607 | |||||||
GPT Group |
Diversified REITs | 43,098 | 122,387 | |||||||
Harvey Norman Holdings Ltd. |
Broadline Retail | 13,552 | 32,494 | |||||||
IDP Education Ltd. |
Diversified Consumer Services | 4,092 | 74,846 | |||||||
IGO Ltd. |
Metals & Mining | 13,948 | 119,293 | |||||||
Iluka Resources Ltd. |
Metals & Mining | 9,482 | 67,443 | |||||||
Incitec Pivot Ltd. |
Chemicals | 43,758 | 91,731 | |||||||
Insignia Financial Ltd. |
Capital Markets | 14,674 | 26,928 | |||||||
Insurance Australia Group Ltd. |
Insurance | 55,902 | 175,595 | |||||||
JB Hi-Fi Ltd. |
Specialty Retail | 2,464 | 70,087 | |||||||
Lendlease Corp. Ltd. |
Real Estate Management & Development | 15,510 | 75,104 | |||||||
aLottery Corp. Ltd. |
Hotels, Restaurants & Leisure | 50,264 | 172,361 | |||||||
aLynas Rare Earths Ltd. |
Metals & Mining | 20,460 | 86,878 | |||||||
Macquarie Group Ltd. |
Capital Markets | 7,854 | 924,010 | |||||||
Magellan Financial Group Ltd. |
Capital Markets | 3,190 | 18,545 | |||||||
Medibank Pvt Ltd. |
Insurance | 61,974 | 139,464 |
174 |
Annual Report |
franklintempleton.com |
FRANKLIN TEMPLETON ETF TRUST
SCHEDULE OF INVESTMENTS
Franklin FTSE Australia ETF (continued)
Industry | Shares | Value | ||||||||
Common Stocks (continued) |
||||||||||
Australia (continued) |
||||||||||
Metcash Ltd. |
Consumer Staples Distribution & Retail | 21,802 | $ | 56,217 | ||||||
Mineral Resources Ltd. |
Metals & Mining | 3,762 | 203,055 | |||||||
Mirvac Group |
Diversified REITs | 89,496 | 124,675 | |||||||
National Australia Bank Ltd. |
Banks | 71,060 | 1,319,263 | |||||||
New Hope Corp. Ltd. |
Oil, Gas & Consumable Fuels | 5,368 | 20,421 | |||||||
Newcrest Mining Ltd. |
Metals & Mining | 20,152 | 362,389 | |||||||
aNEXTDC Ltd. |
IT Services | 10,230 | 71,667 | |||||||
Northern Star Resources Ltd. |
Metals & Mining | 25,454 | 209,859 | |||||||
Nufarm Ltd. |
Chemicals | 8,734 | 33,401 | |||||||
Orica Ltd. |
Chemicals | 10,252 | 105,672 | |||||||
Origin Energy Ltd. |
Oil, Gas & Consumable Fuels | 38,918 | 216,082 | |||||||
Orora Ltd. |
Containers & Packaging | 19,206 | 43,992 | |||||||
OZ Minerals Ltd. |
Metals & Mining | 7,370 | 138,753 | |||||||
Perpetual Ltd. |
Capital Markets | 2,530 | 37,211 | |||||||
aPilbara Minerals Ltd. |
Metals & Mining | 63,118 | 166,557 | |||||||
Platinum Asset Management Ltd. |
Capital Markets | 12,012 | 13,837 | |||||||
Pro Medicus Ltd. |
Health Care Technology | 946 | 40,467 | |||||||
aQantas Airways Ltd. |
Airlines | 18,062 | 80,082 | |||||||
QBE Insurance Group Ltd. |
Insurance | 33,506 | 327,409 | |||||||
Qube Holdings Ltd. |
Transportation Infrastructure | 37,488 | 72,059 | |||||||
Ramsay Health Care Ltd. |
Health Care Providers & Services | 3,960 | 176,478 | |||||||
REA Group Ltd. |
Media | 1,144 | 105,758 | |||||||
Reece Ltd. |
Trading Companies & Distributors | 4,796 | 55,730 | |||||||
Region RE Ltd. |
Diversified REITs | 25,806 | 40,616 | |||||||
Rio Tinto Ltd. |
Metals & Mining | 8,404 | 676,218 | |||||||
Santos Ltd. |
Oil, Gas & Consumable Fuels | 68,112 | 314,764 | |||||||
Scentre Group |
Real Estate Investment Trusts (REITs) | 117,524 | 216,457 | |||||||
SEEK Ltd. |
Professional Services | 7,854 | 125,824 | |||||||
Seven Group Holdings Ltd. |
Trading Companies & Distributors | 3,234 | 50,034 | |||||||
Sonic Healthcare Ltd. |
Health Care Providers & Services | 10,340 | 241,275 | |||||||
South32 Ltd. |
Metals & Mining | 103,774 | 303,727 | |||||||
aStar Entertainment Group Ltd. |
Hotels, Restaurants & Leisure | 31,174 | 29,857 | |||||||
Steadfast Group Ltd. |
Insurance | 23,056 | 90,334 | |||||||
Stockland |
Real Estate Investment Trusts (REITs) | 54,054 | 144,087 | |||||||
Suncorp Group Ltd. |
Insurance | 28,622 | 232,144 | |||||||
Tabcorp Holdings Ltd. |
Hotels, Restaurants & Leisure | 51,018 | 33,998 | |||||||
Telstra Group Ltd. |
Diversified Telecommunication Services | 92,356 | 261,030 | |||||||
TPG Telecom Ltd. |
Diversified Telecommunication Services | 8,426 | 27,539 | |||||||
Transurban Group |
Transportation Infrastructure | 69,410 | 660,585 | |||||||
Treasury Wine Estates Ltd. |
Beverages | 16,324 | 142,894 | |||||||
Vicinity Ltd. |
Real Estate Investment Trusts (REITs) | 85,162 | 110,937 | |||||||
Washington H Soul Pattinson & Co. Ltd. |
Oil, Gas & Consumable Fuels | 6,006 | 121,480 | |||||||
Wesfarmers Ltd. |
Broadline Retail | 25,586 | 861,095 | |||||||
Westpac Banking Corp. |
Banks | 78,760 | 1,142,555 | |||||||
Whitehaven Coal Ltd. |
Oil, Gas & Consumable Fuels | 16,808 | 75,761 | |||||||
WiseTech Global Ltd. |
Software | 3,586 | 156,448 | |||||||
Woodside Energy Group Ltd. |
Oil, Gas & Consumable Fuels | 42,746 | 954,496 | |||||||
Woolworths Group Ltd. |
Consumer Staples Distribution & Retail | 27,456 | 696,930 | |||||||
Worley Ltd. |
Energy Equipment & Services | 8,448 | 81,532 | |||||||
Yancoal Australia Ltd. |
Oil, Gas & Consumable Fuels | 3,762 | 14,614 | |||||||
|
|
|||||||||
28,145,056 | ||||||||||
|
|
|||||||||
Ireland 0.7% |
||||||||||
James Hardie Industries PLC, CDI |
Construction Materials | 9,988 | 212,925 | |||||||
|
|
|||||||||
New Zealand 0.6% |
||||||||||
aXero Ltd. |
Software | 2,860 | 171,283 | |||||||
|
|
franklintempleton.com |
Annual Report |
175 |
FRANKLIN TEMPLETON ETF TRUST
SCHEDULE OF INVESTMENTS
Franklin FTSE Australia ETF (continued)
Industry | Shares | Value | ||||||||
Common Stocks (continued) |
||||||||||
United Kingdom 1.3% |
||||||||||
Amcor PLC, CDI |
Containers & Packaging | 33,638 | $ | 376,010 | ||||||
|
|
|||||||||
United States 0.1% |
||||||||||
Sims Ltd. |
Metals & Mining | 3,630 | 37,708 | |||||||
|
|
|||||||||
Total Investments (Cost $27,816,869) 98.3% |
28,942,982 | |||||||||
Other Assets, less Liabilities 1.7% |
493,954 | |||||||||
|
|
|||||||||
Net Assets 100.0% |
$ | 29,436,936 | ||||||||
|
|
aNon-income producing.
At March 31, 2023, the Fund had the following futures contracts outstanding. See Note 1(c).
Futures Contracts | ||||||||||||||||||||
Description | Type | Number of Contracts |
Notional Amount* |
Expiration Date |
Value/Unrealized Appreciation (Depreciation) |
|||||||||||||||
Index Contracts | ||||||||||||||||||||
SPI 200 Index |
Long | 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. |
franklintempleton.com |
FRANKLIN TEMPLETON ETF TRUST
Financial Highlights
Franklin FTSE Brazil ETF
Year Ended March 31, | ||||||||||||||||||||
2023 | 2022 | 2021 | 2020 | 2019 | ||||||||||||||||
Per share operating performance (for a share outstanding throughout the year) |
||||||||||||||||||||
Net asset value, beginning of year |
$23.56 | $20.70 | $14.46 | $25.72 | $27.87 | |||||||||||||||
Income from investment 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% | — |
franklintempleton.com |
The accompanying notes are an integral part of these financial statements. | Annual Report |
177 |
FRANKLIN TEMPLETON ETF TRUST
Schedule of Investments, March 31, 2023
Franklin FTSE Brazil ETF
Industry | Shares | Value | ||||||||
Common Stocks 74.1% |
||||||||||
Brazil 72.8% |
||||||||||
Ambev SA |
Beverages | 3,280,000 | $ | 9,270,233 | ||||||
Atacadao SA |
Consumer Staples Distribution & Retail | 400,000 | 977,467 | |||||||
Auren Energia SA |
Independent Power Producers & Energy Traders | 272,043 | 787,115 | |||||||
B3 SA - Brasil Bolsa Balcao |
Capital Markets | 4,560,000 | 9,308,417 | |||||||
Banco Bradesco SA |
Banks | 1,136,000 | 2,655,017 | |||||||
Banco BTG Pactual S.A |
Capital Markets | 864,000 | 3,348,474 | |||||||
Banco do Brasil SA |
Banks | 640,004 | 4,936,750 | |||||||
Banco Santander Brasil SA |
Banks | 272,000 | 1,437,720 | |||||||
BB Seguridade Participacoes SA |
Insurance | 512,000 | 3,282,899 | |||||||
Bradespar SA |
Metals & Mining | 25,130 | 121,679 | |||||||
aBRF SA |
Food Products | 608,000 | 744,673 | |||||||
Caixa Seguridade Participacoes SA |
Insurance | 336,000 | 583,167 | |||||||
CCR SA |
Transportation Infrastructure | 832,000 | 2,100,409 | |||||||
Centrais Eletricas Brasileiras SA |
Electric Utilities | 992,000 | 6,511,269 | |||||||
Cia de Saneamento Basico do Estado de Sao Paulo SABESP |
Water Utilities | 256,000 | 2,555,330 | |||||||
Cia Energetica de Minas Gerais |
Electric Utilities | 240,000 | 810,374 | |||||||
Cia Paranaense de Energia |
Electric Utilities | 240,000 | 295,370 | |||||||
Cia Siderurgica Nacional SA |
Metals & Mining | 464,000 | 1,412,980 | |||||||
Cielo SA |
IT Services | 864,000 | 826,468 | |||||||
Cosan SA |
Oil, Gas & Consumable Fuels | 896,000 | 2,666,661 | |||||||
CPFL Energia SA |
Electric Utilities | 144,000 | 898,891 | |||||||
CSN Mineracao SA |
Metals & Mining | 400,000 | 381,835 | |||||||
Dexco SA |
Paper & Forest Products | 240,260 | 278,631 | |||||||
Diagnosticos da America SA |
Health Care Providers & Services | 64,000 | 94,291 | |||||||
EDP - Energias do Brasil SA |
Electric Utilities | 192,000 | 845,970 | |||||||
aEmbraer SA |
Aerospace & Defense | 560,000 | 2,296,218 | |||||||
Energisa SA |
Electric Utilities | 224,080 | 1,775,758 | |||||||
aEneva SA |
Independent Power Producers & Energy Traders | 912,000 | 1,883,268 | |||||||
Engie Brasil Energia SA |
Independent Power Producers & Energy Traders | 128,000 | 1,014,104 | |||||||
Equatorial Energia SA |
Electric Utilities | 704,000 | 3,743,374 | |||||||
a,bGPS Participacoes e Empreendimentos SA |
Commercial Services & Supplies | 304,000 | 725,487 | |||||||
GRUPO DE MODA SOMA SA |
Textiles, Apparel & Luxury Goods | 336,000 | 537,441 | |||||||
aGrupo Mateus SA |
Consumer Staples Distribution & Retail | 288,000 | 324,907 | |||||||
a,bHapvida Participacoes e Investimentos SA |
Health Care Providers & Services | 3,024,000 | 1,562,621 | |||||||
Hypera SA |
Pharmaceuticals | 304,000 | 2,260,401 | |||||||
Intelbras SA Industria de Telecomunicacao Eletronica Brasileira |
Communications Equipment | 48,000 | 216,415 | |||||||
Itau Unibanco Holding SA |
Banks | 336,000 | 1,395,623 | |||||||
Klabin SA |
Containers & Packaging | 576,000 | 2,055,094 | |||||||
Localiza Rent a Car SA |
Ground Transportation | 592,033 | 6,235,306 | |||||||
Lojas Renner SA |
Broadline Retail | 725,410 | 2,370,700 | |||||||
M Dias Branco SA |
Food Products | 96,000 | 477,515 | |||||||
aMagazine Luiza SA |
Broadline Retail | 2,288,000 | 1,493,670 | |||||||
Marfrig Global Foods SA |
Food Products | 224,000 | 293,350 | |||||||
Multiplan Empreendimentos Imobiliarios SA |
Real Estate Management & Development | 208,000 | 1,010,822 | |||||||
Natura & Co. Holding SA |
Personal Products | 720,016 | 1,874,505 | |||||||
Neoenergia SA |
Electric Utilities | 176,000 | 520,684 | |||||||
aPetro Rio SA |
Oil, Gas & Consumable Fuels | 506,600 | 3,116,386 | |||||||
Petroleo Brasileiro SA |
Oil, Gas & Consumable Fuels | 2,784,000 | 14,545,271 | |||||||
Petroreconcavo SA |
Oil, Gas & Consumable Fuels | 144,000 | 577,392 | |||||||
Porto Seguro SA |
Insurance | 144,000 | 667,991 | |||||||
Raia Drogasil SA |
Consumer Staples Distribution & Retail | 800,043 | 3,858,005 | |||||||
bRede D’Or Sao Luiz SA |
Health Care Providers & Services | 576,002 | 2,412,955 | |||||||
Rumo SA |
Ground Transportation | 944,000 | 3,509,571 | |||||||
Sao Martinho SA |
Food Products | 128,000 | 682,128 | |||||||
Sendas Distribuidora SA |
Consumer Staples Distribution & Retail | 896,000 | 2,746,184 |
178 |
Annual Report |
franklintempleton.com |
FRANKLIN TEMPLETON ETF TRUST
SCHEDULE OF INVESTMENTS
Franklin FTSE Brazil ETF (continued)
Industry | Shares | Value | ||||||||
Common Stocks (continued) |
||||||||||
Brazil (continued) |
||||||||||
SLC Agricola SA |
Food Products | 71,400 | $ | 642,005 | ||||||
aSmartfit Escola de Ginastica e Danca SA |
Hotels, Restaurants & Leisure | 80,000 | 210,483 | |||||||
Suzano SA |
Paper & Forest Products | 528,000 | 4,332,094 | |||||||
Telefonica Brasil SA |
Diversified Telecommunication Services | 330,000 | 2,516,207 | |||||||
TIM SA |
Wireless Telecommunication Services | 608,000 | 1,508,533 | |||||||
TOTVS SA |
Software | 336,000 | 1,866,133 | |||||||
Transmissora Alianca de Energia Eletrica SA |
Electric Utilities | 165,000 | 1,133,465 | |||||||
Ultrapar Participacoes SA |
Oil, Gas & Consumable Fuels | 624,000 | 1,718,069 | |||||||
Usinas Siderurgicas de Minas Gerais SA |
Metals & Mining | 128,000 | 201,205 | |||||||
Vale SA |
Metals & Mining | 2,921,613 | 46,265,235 | |||||||
Vamos Locacao de Caminhoes Maquinas e Equipamentos SA |
Ground Transportation | 240,000 | 631,922 | |||||||
Vibra Energia SA |
Specialty Retail | 848,000 | 2,410,074 | |||||||
WEG SA |
Machinery | 1,120,000 | 8,957,349 | |||||||
|
|
|||||||||
195,708,010 | ||||||||||
|
|
|||||||||
United States 1.3% |
||||||||||
JBS SA |
Food Products | 1,008,000 | 3,548,701 | |||||||
|
|
|||||||||
Total
Common Stocks |
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 |
67,297,102 | |||||||||
|
|
franklintempleton.com |
Annual Report |
179 |
FRANKLIN TEMPLETON ETF TRUST
SCHEDULE OF INVESTMENTS
Franklin FTSE Brazil ETF (continued)
Industry | Shares | Value | ||||||||
Right 0.0%† |
||||||||||
Brazil 0.0%† |
||||||||||
aLocaliza Rent a Car SA |
Ground Transportation | 2,648 | $ | 6,857 | ||||||
|
|
|||||||||
Total Rights (Cost $0) |
6,857 | |||||||||
|
|
|||||||||
Total
Investments (Cost $268,034,332) |
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 |
Annual Report | The accompanying notes are an integral part of these financial statements. |
franklintempleton.com |
FRANKLIN TEMPLETON ETF TRUST
Financial Highlights
Franklin FTSE Canada ETF
Year Ended March 31, | ||||||||||||||||||||
2023 | 2022 | 2021 | 2020 | 2019 | ||||||||||||||||
Per share operating performance (for a share outstanding throughout the year) |
||||||||||||||||||||
Net asset value, beginning of year |
$36.07 | $30.20 | $19.50 | $24.13 | $23.77 | |||||||||||||||
Income from investment 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% | — |
franklintempleton.com |
The accompanying notes are an integral part of these financial statements. | Annual Report |
181 |
FRANKLIN TEMPLETON ETF TRUST
Schedule of Investments, March 31, 2023
Franklin FTSE Canada ETF
Industry | Shares | Value | ||||||||
Common Stocks 99.7% |
||||||||||
Canada 97.4% |
||||||||||
Agnico Eagle Mines Ltd. |
Metals & Mining | 81,718 | $ | 4,160,321 | ||||||
Alimentation Couche-Tard, Inc. |
Consumer Staples Distribution & Retail | 136,864 | 6,871,769 | |||||||
Bank of Montreal |
Banks | 118,664 | 10,555,121 | |||||||
Bank of Nova Scotia |
Banks | 213,850 | 10,756,101 | |||||||
Barrick Gold Corp. |
Metals & Mining | 314,678 | 5,833,872 | |||||||
BCE, Inc. |
Diversified Telecommunication Services | 54,418 | 2,434,304 | |||||||
aBrookfield Asset Management Ltd., Class A |
Capital Markets | 48,594 | 1,589,579 | |||||||
Brookfield Corp. |
Capital Markets | 239,512 | 7,792,303 | |||||||
Canadian Imperial Bank of Commerce, Class A |
Banks | 158,340 | 6,705,187 | |||||||
Canadian National Railway Co. |
Ground Transportation | 106,652 | 12,567,181 | |||||||
Canadian Natural Resources Ltd. |
Oil, Gas & Consumable Fuels | 194,922 | 10,771,948 | |||||||
Canadian Pacific Railway Ltd. |
Ground Transportation | 166,712 | 12,819,831 | |||||||
Canadian Tire Corp. Ltd., Class A |
Broadline Retail | 9,464 | 1,233,359 | |||||||
Canadian Utilities Ltd., Class A |
Multi-Utilities | 22,204 | 617,876 | |||||||
Cenovus Energy, Inc. |
Oil, Gas & Consumable Fuels | 249,158 | 4,341,187 | |||||||
aCGI, Inc., Class A |
IT Services | 37,856 | 3,643,362 | |||||||
Constellation Software, Inc. |
Software | 3,424 | 6,428,548 | |||||||
Dollarama, Inc. |
Broadline Retail | 48,776 | 2,911,026 | |||||||
Enbridge, Inc. |
Oil, Gas & Consumable Fuels | 363,272 | 13,831,903 | |||||||
Fairfax Financial Holdings Ltd. |
Insurance | 3,795 | 2,520,457 | |||||||
Fortis, Inc. |
Electric Utilities | 85,540 | 3,631,192 | |||||||
Franco-Nevada Corp. |
Metals & Mining | 34,216 | 4,983,929 | |||||||
George Weston Ltd. |
Consumer Staples Distribution & Retail | 12,376 | 1,637,819 | |||||||
Great-West Lifeco, Inc. |
Insurance | 48,594 | 1,286,169 | |||||||
bHydro One Ltd. |
Electric Utilities | 56,602 | 1,609,373 | |||||||
IGM Financial, Inc. |
Capital Markets | 14,560 | 434,535 | |||||||
Imperial Oil Ltd. |
Oil, Gas & Consumable Fuels | 31,850 | 1,617,505 | |||||||
Intact Financial Corp. |
Insurance | 31,668 | 4,525,972 | |||||||
Loblaw Cos. Ltd. |
Consumer Staples Distribution & Retail | 27,482 | 2,501,170 | |||||||
Magna International, Inc. |
Automobile Components | 47,684 | 2,550,593 | |||||||
Manulife Financial Corp. |
Insurance | 334,698 | 6,133,307 | |||||||
Metro, Inc., Class A |
Consumer Staples Distribution & Retail | 42,406 | 2,329,377 | |||||||
National Bank of Canada |
Banks | 60,242 | 4,303,095 | |||||||
Nutrien Ltd. |
Chemicals | 93,366 | 6,885,773 | |||||||
Pembina Pipeline Corp. |
Oil, Gas & Consumable Fuels | 98,462 | 3,185,182 | |||||||
Power Corp. of Canada |
Insurance | 96,460 | 2,461,838 | |||||||
Restaurant Brands International, Inc. |
Hotels, Restaurants & Leisure | 54,236 | 3,636,038 | |||||||
Royal Bank of Canada |
Banks | 251,706 | 24,038,867 | |||||||
Saputo, Inc. |
Food Products | 43,316 | 1,119,267 | |||||||
Shaw Communications, Inc., Class B |
Media | 76,986 | 2,300,450 | |||||||
aShopify, Inc., Class A |
IT Services | 204,022 | 9,768,815 | |||||||
Sun Life Financial, Inc. |
Insurance | 105,196 | 4,907,877 | |||||||
Suncor Energy, Inc. |
Oil, Gas & Consumable Fuels | 242,242 | 7,510,603 | |||||||
TC Energy Corp. |
Oil, Gas & Consumable Fuels | 181,090 | 7,034,323 | |||||||
Teck Resources Ltd., Class B |
Metals & Mining | 79,898 | 2,913,486 | |||||||
TELUS Corp. |
Diversified Telecommunication Services | 85,540 | 1,695,820 | |||||||
Thomson Reuters Corp. |
Professional Services | 29,120 | 3,783,545 | |||||||
Toronto-Dominion Bank |
Banks | 326,326 | 19,519,038 | |||||||
Tourmaline Oil Corp. |
Oil, Gas & Consumable Fuels | 51,324 | 2,135,861 | |||||||
Wheaton Precious Metals Corp. |
Metals & Mining | 80,990 | 3,895,252 | |||||||
|
|
|||||||||
272,721,306 | ||||||||||
|
|
182 |
Annual Report |
franklintempleton.com |
FRANKLIN TEMPLETON ETF TRUST
SCHEDULE OF INVESTMENTS
Franklin FTSE Canada ETF (continued)
Industry | Shares | Value | ||||||||
Common Stocks (continued) |
||||||||||
United States 2.3% |
||||||||||
Waste Connections, Inc. |
Commercial Services & Supplies | 46,046 | $ | 6,399,861 | ||||||
|
|
|||||||||
Total Investments (Cost $298,943,761) 99.7% |
279,121,167 | |||||||||
Other Assets, less Liabilities 0.3% |
805,881 | |||||||||
|
|
|||||||||
Net Assets 100.0% |
$ | 279,927,048 | ||||||||
|
|
aNon-income producing.
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.
franklintempleton.com |
The accompanying notes are an integral part of these financial statements. | Annual Report |
183 |
FRANKLIN TEMPLETON ETF TRUST
Financial Highlights
Franklin FTSE China ETF
Year Ended March 31, | ||||||||||||||||||||
2023 | 2022 | 2021 | 2020 | 2019 | ||||||||||||||||
Per share operating performance (for a share outstanding throughout the year) |
||||||||||||||||||||
Net asset value, beginning of year |
$21.43 | $31.78 | $22.19 | $24.01 | $25.99 | |||||||||||||||
Income from investment 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 |
Annual Report | The accompanying notes are an integral part of these financial statements. |
franklintempleton.com |
FRANKLIN TEMPLETON ETF TRUST
Schedule of Investments, March 31, 2023
Franklin FTSE China ETF
Industry | Shares | Value | ||||||||
Common Stocks 100.0% |
| |||||||||
China 96.3% |
||||||||||
360 DigiTech, Inc., ADR |
Consumer Finance | 5,742 | $ | 111,395 | ||||||
360 Security Technology, Inc., Class A |
Software | 26,100 | 66,321 | |||||||
37 Interactive Entertainment Network Technology Group Co. Ltd., Class A |
Entertainment | 5,800 | 24,028 | |||||||
3peak, Inc., Class A |
Semiconductors & Semiconductor Equipment | 321 | 11,382 | |||||||
a3SBio, Inc., Class A |
Biotechnology | 72,500 | 72,223 | |||||||
Addsino Co. Ltd., Class A |
Communications Equipment | 5,800 | 9,502 | |||||||
bAdvanced Micro-Fabrication Equipment, Inc. China, Class A |
Semiconductors & Semiconductor Equipment | 2,349 | 50,457 | |||||||
AECC Aero-Engine Control Co. Ltd., Class A |
Aerospace & Defense | 5,800 | 20,574 | |||||||
AECC Aviation Power Co. Ltd., Class A |
Aerospace & Defense | 8,700 | 54,666 | |||||||
bAgile Group Holdings Ltd. |
Real Estate Management & Development | 78,000 | 17,389 | |||||||
Agricultural Bank of China Ltd., Class A |
Banks | 339,300 | 153,659 | |||||||
Agricultural Bank of China Ltd., Class H |
Banks | 1,566,000 | 580,521 | |||||||
Aier Eye Hospital Group Co. Ltd., Class A |
Health Care Providers & Services | 26,141 | 118,271 | |||||||
bAir China Ltd., Class A |
Airlines | 31,900 | 49,704 | |||||||
bAir China Ltd., Class H |
Airlines | 82,000 | 73,330 | |||||||
a,bAkeso, Inc. |
Biotechnology | 25,000 | 128,663 | |||||||
bAlibaba Group Holding Ltd., Class A |
Internet & Direct Marketing Retail | 750,678 | 9,601,089 | |||||||
aA-Living Smart City Services Co. Ltd., Class H |
Commercial Services & Supplies | 43,500 | 37,737 | |||||||
Aluminum Corp. of China Ltd., Class A |
Metals & Mining | 49,300 | 39,628 | |||||||
Aluminum Corp. of China Ltd., Class H |
Metals & Mining | 174,000 | 88,220 | |||||||
bAmlogic Shanghai Co. Ltd., Class A |
Semiconductors & Semiconductor Equipment | 1,456 | 17,835 | |||||||
Angang Steel Co. Ltd., Class A |
Metals & Mining | 23,200 | 10,034 | |||||||
Angang Steel Co. Ltd., Class H |
Metals & Mining | 76,000 | 24,301 | |||||||
Angel Yeast Co. Ltd., Class A |
Food Products | 2,900 | 17,631 | |||||||
aAngelalign Technology, Inc. |
Health Care Equipment & Supplies | 2,400 | 35,679 | |||||||
Anhui Anke Biotechnology Group Co. Ltd., Class A |
Pharmaceuticals | 6,916 | 11,128 | |||||||
Anhui Conch Cement Co. Ltd., Class A |
Construction Materials | 14,500 | 59,649 | |||||||
Anhui Conch Cement Co. Ltd., Class H |
Construction Materials | 61,210 | 212,092 | |||||||
Anhui Expressway Co. Ltd., Class H |
Transportation Infrastructure | 18,000 | 18,138 | |||||||
Anhui Gujing Distillery Co. Ltd., Class A |
Beverages | 1,500 | 64,654 | |||||||
Anhui Gujing Distillery Co. Ltd., Class B |
Beverages | 6,300 | 112,438 | |||||||
Anhui Zhongding Sealing Parts Co. Ltd., Class A |
Automobile Components | 5,800 | 10,735 | |||||||
Anjoy Foods Group Co. Ltd., Class A |
Food Products | 1,100 | 26,210 | |||||||
ANTA Sports Products Ltd., Class A |
Textiles, Apparel & Luxury Goods | 59,050 | 857,547 | |||||||
Apeloa Pharmaceutical Co. Ltd., Class A |
Pharmaceuticals | 2,900 | 8,995 | |||||||
Asymchem Laboratories Tianjin Co. Ltd., Class A |
Pharmaceuticals | 700 | 13,591 | |||||||
Autohome, Inc., ADR |
Software | 3,074 | 102,887 | |||||||
Avary Holding Shenzhen Co. Ltd., Class A |
Electronic Equipment, Instruments & Components | 2,900 | 13,099 | |||||||
b,cAVIC Electromechanical Systems Co. Ltd., Class A |
Aerospace & Defense | 500 | — | |||||||
AVIC Industry-Finance Holdings Co. Ltd., Class A |
Financial Services | 31,900 | 19,045 | |||||||
AviChina Industry & Technology Co. Ltd., Class H |
Aerospace & Defense | 116,000 | 60,882 | |||||||
AVICOPTER PLC, Class A |
Aerospace & Defense | 2,900 | 17,867 | |||||||
aBAIC Motor Corp. Ltd., Class H |
Automobiles | 116,000 | 32,214 | |||||||
bBaidu, Inc., Class A |
Interactive Media & Services | 114,588 | 2,170,617 | |||||||
Bank of Beijing Co. Ltd., Class A |
Banks | 72,500 | 46,452 | |||||||
Bank of Changsha Co. Ltd., Class A |
Banks | 14,500 | 16,702 | |||||||
Bank of Chengdu Co. Ltd., Class A |
Banks | 5,800 | 11,453 | |||||||
Bank of China Ltd., Class A |
Banks | 165,300 | 81,359 | |||||||
Bank of China Ltd., Class H |
Banks | 3,857,000 | 1,478,936 |
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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 |
Annual Report |
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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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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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Industry | Shares | Value | ||||||||
Common Stocks (continued) |
||||||||||
China (continued) |
||||||||||
China Zhenhua Group Science & Technology Co. Ltd., Class A, A |
Electronic Equipment, Instruments & Components | 1,800 | $ | 23,606 | ||||||
bChina Zheshang Bank Co. Ltd., Class A |
Banks | 29,000 | 12,078 | |||||||
Chinalin Securities Co. Ltd., Class A, A |
Capital Markets | 2,900 | 6,195 | |||||||
Chinese Universe Publishing & Media Group Co. Ltd., Class A |
Media | 5,800 | 10,473 | |||||||
Chongqing Brewery Co. Ltd., Class A |
Beverages | 1,700 | 30,944 | |||||||
Chongqing Changan Automobile Co. Ltd., Class A |
Automobiles | 30,144 | 52,323 | |||||||
Chongqing Changan Automobile Co. Ltd., Class B |
Automobiles | 81,772 | 35,938 | |||||||
Chongqing Fuling Zhacai Group Co. Ltd., Class A |
Food Products | 2,900 | 10,697 | |||||||
Chongqing Rural Commercial Bank Co. Ltd., Class A |
Banks | 17,400 | 9,299 | |||||||
Chongqing Rural Commercial Bank Co. Ltd., Class H |
Banks | 116,000 | 42,263 | |||||||
Chongqing Water Group Co. Ltd., Class A |
Water Utilities | 8,700 | 6,803 | |||||||
Chongqing Zhifei Biological Products Co. Ltd., Class A |
Biotechnology | 5,800 | 69,197 | |||||||
cCIFI Holdings Group Co. Ltd., Class A |
Real Estate Management & Development | 266,320 | 25,784 | |||||||
CITIC Ltd., Class B |
Industrial Conglomerates | 261,000 | 305,222 | |||||||
Citic Pacific Special Steel Group Co. Ltd., Class A |
Metals & Mining | 18,280 | 47,328 | |||||||
CITIC Securities Co. Ltd., Class A |
Capital Markets | 43,500 | 129,728 | |||||||
CITIC Securities Co. Ltd., Class H |
Capital Markets | 116,200 | 248,092 | |||||||
CMOC Group Ltd., Class A |
Metals & Mining | 31,900 | 27,825 | |||||||
CMOC Group Ltd., Class H |
Metals & Mining | 213,000 | 128,886 | |||||||
CMST Development Co. Ltd., Class A |
Air Freight & Logistics | 8,700 | 6,689 | |||||||
CNGR Advanced Material Co. Ltd., Class A |
Chemicals | 2,900 | 30,257 | |||||||
CNOOC Energy Technology & Services Ltd., Class A |
Energy Equipment & Services | 20,300 | 9,755 | |||||||
CNPC Capital Co. Ltd., Class A |
Machinery | 17,400 | 17,686 | |||||||
Contemporary Amperex Technology Co. Ltd., Class A |
Electrical Equipment | 8,900 | 526,240 | |||||||
COSCO SHIPPING Development Co. Ltd., Class A |
Marine Transportation | 40,600 | 14,603 | |||||||
COSCO SHIPPING Development Co. Ltd., Class H |
Marine Transportation | 174,000 | 23,052 | |||||||
bCOSCO SHIPPING Energy Transportation Co. Ltd., Class A |
Marine Transportation | 11,600 | 22,871 | |||||||
bCOSCO SHIPPING Energy Transportation Co. Ltd., Class H |
Marine Transportation | 66,000 | 68,102 | |||||||
COSCO SHIPPING Holdings Co. Ltd., Class A |
Marine Transportation | 45,480 | 73,048 | |||||||
COSCO SHIPPING Holdings Co. Ltd., Class H |
Marine Transportation | 159,500 | 179,413 | |||||||
Country Garden Holdings Co. Ltd. |
Real Estate Management & Development | 667,000 | 187,781 | |||||||
Country Garden Services Holdings Co. Ltd. |
Commercial Services & Supplies | 107,300 | 185,623 | |||||||
CRRC Corp. Ltd., Class A |
Machinery | 89,900 | 80,117 | |||||||
CRRC Corp. Ltd., Class H |
Machinery | 203,000 | 110,681 | |||||||
CSC Financial Co. Ltd., Class A |
Capital Markets | 17,400 | 64,940 | |||||||
aCSC Financial Co. Ltd., Class H |
Capital Markets | 43,500 | 42,392 | |||||||
CSG Holding Co. Ltd., Class A |
Construction Materials | 5,800 | 5,667 | |||||||
CSG Holding Co. Ltd., Class B |
Construction Materials | 60,900 | 23,041 | |||||||
CSPC Pharmaceutical Group Ltd., Class A |
Pharmaceuticals | 428,000 | 420,915 | |||||||
Daan Gene Co. Ltd., Class A |
Biotechnology | 4,140 | 9,712 | |||||||
bDada Nexus Ltd., Class A, ADR |
Consumer Staples Distribution & Retail | 3,770 | 31,932 | |||||||
aDali Foods Group Co. Ltd. |
Food Products | 101,500 | 42,410 |
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Franklin FTSE China ETF (continued)
Industry | Shares | Value | ||||||||
Common Stocks (continued) |
||||||||||
China (continued) |
||||||||||
Daqin Railway Co. Ltd., Class A |
Ground Transportation | 52,200 | $ | 54,653 | ||||||
bDaqo New Energy Corp., ADR |
Semiconductors & Semiconductor Equipment | 2,842 | 133,119 | |||||||
DaShenLin Pharmaceutical Group Co. Ltd., Class A |
Consumer Staples Distribution & Retail | 1,152 | 6,245 | |||||||
bDatang International Power Generation Co. Ltd., Class A |
Independent Power Producers & Energy Traders | 26,100 | 11,516 | |||||||
bDatang International Power Generation Co. Ltd., Class H |
Independent Power Producers & Energy Traders | 116,000 | 20,984 | |||||||
DHC Software Co. Ltd., Class A |
IT Services | 11,600 | 14,020 | |||||||
Dian Diagnostics Group Co. Ltd., Class A |
Health Care Providers & Services | 2,900 | 12,099 | |||||||
Do-Fluoride New Materials Co. Ltd., Class A |
Chemicals | 2,900 | 14,024 | |||||||
Dong-E-E-Jiao Co. Ltd., Class A |
Pharmaceuticals | 2,900 | 22,377 | |||||||
Dongfang Electric Corp. Ltd., Class A |
Electrical Equipment | 8,700 | 24,020 | |||||||
Dongfang Electric Corp. Ltd., Class H |
Electrical Equipment | 17,400 | 28,106 | |||||||
Dongfeng Motor Group Co. Ltd., Class H |
Automobiles | 153,900 | 72,147 | |||||||
Dongxing Securities Co. Ltd., Class A |
Capital Markets | 11,600 | 14,189 | |||||||
a,bEast Buy Holding Ltd. |
Diversified Consumer Services | 14,500 | 62,526 | |||||||
East Group Co. Ltd., Class A |
Electrical Equipment | 8,700 | 9,856 | |||||||
East Money Information Co. Ltd., Class A |
Capital Markets | 46,480 | 135,569 | |||||||
Eastern Air Logistics Co. Ltd., Class A |
Air Freight & Logistics | 5,800 | 12,846 | |||||||
Ecovacs Robotics Co. Ltd., Class A |
Household Durables | 2,200 | 26,462 | |||||||
ENN Energy Holdings Ltd. |
Gas Utilities | 38,200 | 523,611 | |||||||
ENN Natural Gas Co. Ltd., Class A |
Chemicals | 8,700 | 26,414 | |||||||
Eternal Asia Supply Chain Management Ltd., Class A |
Commercial Services & Supplies | 11,600 | 9,966 | |||||||
Eve Energy Co. Ltd., Class A |
Electrical Equipment | 6,800 | 69,017 | |||||||
Everbright Securities Co. Ltd., Class A |
Capital Markets | 14,500 | 32,179 | |||||||
aEverbright Securities Co. Ltd., Class H |
Capital Markets | 11,600 | 7,876 | |||||||
a,bEvergrande Property Services Group Ltd. |
Real Estate Management & Development | 221,000 | 29,956 | |||||||
bFangda Carbon New Material Co. Ltd., Class A |
Electrical Equipment | 14,500 | 13,598 | |||||||
FAW Jiefang Group Co. Ltd. |
Automobiles | 5,800 | 7,010 | |||||||
Fiberhome Telecommunication Technologies Co. Ltd., Class A |
Communications Equipment | 5,800 | 16,554 | |||||||
Financial Street Holdings Co. Ltd., Class A |
Real Estate Management & Development | 11,600 | 8,480 | |||||||
First Capital Securities Co. Ltd., Class A |
Capital Markets | 17,400 | 15,126 | |||||||
Flat Glass Group Co. Ltd., Class A |
Semiconductors & Semiconductor Equipment | 2,900 | 14,489 | |||||||
Flat Glass Group Co. Ltd., Class H |
Semiconductors & Semiconductor Equipment | 29,000 | 83,122 | |||||||
Focus Media Information Technology Co. Ltd., Class A |
Technology Hardware, Storage & Peripherals | 55,100 | 55,122 | |||||||
Foshan Haitian Flavouring & Food Co. Ltd., Class A |
Food Products | 15,061 | 167,863 | |||||||
Fosun International Ltd. |
Industrial Conglomerates | 116,000 | 85,116 | |||||||
Foxconn Industrial Internet Co. Ltd., Class A |
Electronic Equipment, Instruments & Components | 46,400 | 116,350 | |||||||
Fujian Funeng Co. Ltd., Class A |
Independent Power Producers & Energy Traders | 5,800 | 10,355 | |||||||
Fujian Sunner Development Co. Ltd., Class A |
Food Products | 5,800 | 20,827 | |||||||
bFull Truck Alliance Co. Ltd., ADR |
Ground Transportation | 32,190 | 244,966 | |||||||
Fuyao Glass Industry Group Co. Ltd., Class A |
Automobile Components | 5,800 | 29,358 | |||||||
aFuyao Glass Industry Group Co. Ltd., Class H |
Automobile Components | 34,800 | 151,614 | |||||||
Ganfeng Lithium Group Co. Ltd., Class A |
Metals & Mining | 6,060 | 58,656 | |||||||
aGanfeng Lithium Group Co. Ltd., Class H |
Metals & Mining | 16,860 | 104,812 | |||||||
G-bits Network Technology Xiamen Co. Ltd., Class A |
Entertainment | 200 | 13,885 | |||||||
bGCL System Integration Technology Co. Ltd., Class A |
Semiconductors & Semiconductor Equipment | 23,200 | 10,540 | |||||||
bGCL Technology Holdings Ltd. |
Semiconductors & Semiconductor Equipment | 1,044,000 | 269,979 | |||||||
bGD Power Development Co. Ltd., Class A |
Independent Power Producers & Energy Traders | 63,800 | 35,304 | |||||||
bGDS Holdings Ltd., Class A |
IT Services | 49,300 | 119,326 |
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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 |
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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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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 |
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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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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 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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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 |
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SCHEDULE OF INVESTMENTS
Franklin FTSE China ETF (continued)
Industry | Shares | Value | ||||||||
Common Stocks (continued) |
||||||||||
China (continued) |
||||||||||
bShandong Chenming Paper Holdings Ltd., Class A |
Paper & Forest Products | 5,800 | $ | 4,485 | ||||||
bShandong Chenming Paper Holdings Ltd., Class B |
Paper & Forest Products | 34,800 | 10,152 | |||||||
bShandong Chenming Paper Holdings Ltd., Class H |
Paper & Forest Products | 29,000 | 9,088 | |||||||
Shandong Denghai Seeds Co. Ltd., Class A |
Food Products | 2,900 | 7,897 | |||||||
Shandong Gold Mining Co. Ltd., Class A |
Metals & Mining | 12,284 | 39,424 | |||||||
aShandong Gold Mining Co. Ltd., Class H |
Metals & Mining | 36,750 | 74,624 | |||||||
Shandong Himile Mechanical Science & Technology Co. Ltd., Class A |
Machinery | 2,900 | 13,218 | |||||||
Shandong Hi-speed Co. Ltd., Class A |
Transportation Infrastructure | 11,600 | 10,338 | |||||||
Shandong Hualu Hengsheng Chemical Co. Ltd., Class A |
Chemicals | 8,780 | 45,068 | |||||||
Shandong Humon Smelting Co. Ltd., Class A |
Metals & Mining | 2,900 | 4,945 | |||||||
Shandong Linglong Tyre Co. Ltd., Class A |
Automobile Components | 2,900 | 8,252 | |||||||
Shandong Nanshan Aluminum Co. Ltd., Class A |
Metals & Mining | 43,500 | 21,473 | |||||||
Shandong Pharmaceutical Glass Co. Ltd., Class A |
Health Care Equipment & Supplies | 2,900 | 11,085 | |||||||
Shandong Sun Paper Industry JSC Ltd., Class A |
Paper & Forest Products | 8,700 | 15,443 | |||||||
Shandong Weigao Group Medical Polymer Co. Ltd., Class H |
Health Care Equipment & Supplies | 118,500 | 189,299 | |||||||
bShanghai Aiko Solar Energy Co. Ltd., Class A |
Semiconductors & Semiconductor Equipment | 2,900 | 13,982 | |||||||
Shanghai AJ Group Co. Ltd., Class A |
Financial Services | 5,800 | 4,535 | |||||||
Shanghai Bairun Investment Holding Group Co. Ltd., Class A |
Beverages | 3,940 | 23,471 | |||||||
Shanghai Baosight Software Co. Ltd., Class A |
Software | 3,280 | 27,798 | |||||||
Shanghai Baosight Software Co. Ltd., Class B |
Software | 26,190 | 86,479 | |||||||
Shanghai Construction Group Co. Ltd., Class A |
Construction & Engineering | 26,100 | 10,376 | |||||||
bShanghai Electric Group Co. Ltd., Class A |
Electrical Equipment | 34,800 | 22,398 | |||||||
bShanghai Electric Group Co. Ltd., Class H |
Electrical Equipment | 116,000 | 28,963 | |||||||
bShanghai Electric Power Co. Ltd., Class A |
Independent Power Producers & Energy Traders | 11,600 | 16,773 | |||||||
Shanghai Fosun Pharmaceutical Group Co. Ltd., Class A |
Pharmaceuticals | 8,700 | 41,034 | |||||||
Shanghai Fosun Pharmaceutical Group Co. Ltd., Class H |
Pharmaceuticals | 29,000 | 82,383 | |||||||
Shanghai Friendess Electronic Technology Corp. Ltd., Class A, A |
Electronic Equipment, Instruments & Components | 420 | 11,211 | |||||||
Shanghai Fudan Microelectronics Group Co. Ltd., Class A |
Semiconductors & Semiconductor Equipment | 999 | 9,523 | |||||||
Shanghai Fudan Microelectronics Group Co. Ltd., Class H |
Semiconductors & Semiconductor Equipment | 14,000 | 51,453 | |||||||
Shanghai Huayi Group Co. Ltd., Class B |
Chemicals | 8,700 | 5,046 | |||||||
bShanghai International Airport Co. Ltd., Class A |
Transportation Infrastructure | 8,700 | 70,603 | |||||||
Shanghai International Port Group Co. Ltd., Class A |
Transportation Infrastructure | 40,600 | 32,753 | |||||||
Shanghai Jinjiang International Hotels Co. Ltd., Class A |
Hotels, Restaurants & Leisure | 2,900 | 26,566 | |||||||
Shanghai Jinjiang International Hotels Co. Ltd., Class B |
Hotels, Restaurants & Leisure | 8,700 | 18,357 | |||||||
Shanghai Jinqiao Export Processing Zone Development Co. Ltd., Class A, A |
Real Estate Management & Development | 2,900 | 5,034 | |||||||
Shanghai Jinqiao Export Processing Zone Development Co. Ltd., Class B |
Real Estate Management & Development | 17,400 | 16,582 | |||||||
bShanghai Junshi Biosciences Co. Ltd., Class A, A |
Biotechnology | 2,813 | 19,678 |
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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 |
200 |
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SCHEDULE OF INVESTMENTS
Franklin FTSE China ETF (continued)
Industry | Shares | Value | ||||||||
Common Stocks (continued) |
||||||||||
China (continued) |
||||||||||
Shenzhen Hepalink Pharmaceutical Group Co. Ltd., Class A, A |
Pharmaceuticals | 2,900 | $ | 5,819 | ||||||
Shenzhen Huaqiang Industry Co. Ltd., Class A |
Electronic Equipment, Instruments & Components | 2,900 | 5,883 | |||||||
bShenzhen Infogem Technologies Co. Ltd., Class A, A |
Software | 2,900 | 5,080 | |||||||
Shenzhen Inovance Technology Co. Ltd., Class A |
Machinery | 9,650 | 98,786 | |||||||
Shenzhen International Holdings Ltd. |
Transportation Infrastructure | 72,500 | 64,096 | |||||||
Shenzhen Investment Ltd. |
Real Estate Management & Development | 116,000 | 20,540 | |||||||
Shenzhen Jinjia Group Co. Ltd., Class A |
Containers & Packaging | 5,800 | 6,258 | |||||||
Shenzhen Kaifa Technology Co. Ltd., Class A |
Technology Hardware, Storage & Peripherals | 5,800 | 14,121 | |||||||
Shenzhen Kangtai Biological Products Co. Ltd., Class A |
Biotechnology | 4,460 | 20,549 | |||||||
Shenzhen Kedali Industry Co. Ltd., Class A, A |
Automobile Components | 800 | 15,062 | |||||||
Shenzhen Kingdom Sci-Tech Co. Ltd., Class A |
Software | 2,900 | 5,942 | |||||||
Shenzhen Mindray Bio-Medical Electronics Co. Ltd., Class A |
Health Care Equipment & Supplies | 4,400 | 199,718 | |||||||
bShenzhen MTC Co. Ltd., Class A |
Household Durables | 20,300 | 14,573 | |||||||
bShenzhen Neptunus Bioengineering Co. Ltd., Class A |
Health Care Providers & Services | 11,600 | 5,726 | |||||||
Shenzhen Overseas Chinese Town Co. Ltd., Class A |
Hotels, Restaurants & Leisure | 31,900 | 22,436 | |||||||
Shenzhen Salubris Pharmaceuticals Co. Ltd., Class A |
Pharmaceuticals | 2,900 | 14,932 | |||||||
Shenzhen SC New Energy Technology Corp., Class A |
Semiconductors & Semiconductor Equipment | 1,100 | 18,333 | |||||||
Shenzhen Senior Technology Material Co. Ltd., Class A |
Chemicals | 5,800 | 16,250 | |||||||
Shenzhen Sunway Communication Co. Ltd., Class A |
Communications Equipment | 2,900 | 8,834 | |||||||
Shenzhen Transsion Holdings Co. Ltd., Class A |
Technology Hardware, Storage & Peripherals | 2,912 | 42,913 | |||||||
Shenzhen Yan Tian Port Holding Co. Ltd., Class A, A |
Transportation Infrastructure | 8,700 | 6,385 | |||||||
Shenzhen YUTO Packaging Technology Co. Ltd., Class A |
Containers & Packaging | 2,900 | 11,752 | |||||||
Shenzhen Zhongjin Lingnan Nonfemet Co. Ltd., Class A |
Metals & Mining | 14,500 | 10,388 | |||||||
Shenzhou International Group Holdings Ltd. |
Textiles, Apparel & Luxury Goods | 37,700 | 395,732 | |||||||
bShijiazhuang Changshan BeiMing Technology Co. Ltd., Class A |
Textiles, Apparel & Luxury Goods | 5,800 | 7,686 | |||||||
Shijiazhuang Yiling Pharmaceutical Co. Ltd., Class A |
Pharmaceuticals | 6,480 | 27,468 | |||||||
bShimao Group Holdings Ltd. |
Real Estate Management & Development | 78,000 | 20,614 | |||||||
a,bShimao Services Holdings Ltd., Class Z |
Real Estate Management & Development | 29,000 | 7,278 | |||||||
Shui On Land Ltd. |
Real Estate Management & Development | 174,000 | 21,057 | |||||||
bSiasun Robot & Automation Co. Ltd., Class A |
Machinery | 5,800 | 10,076 | |||||||
Sichuan Chuantou Energy Co. Ltd., Class A |
Independent Power Producers & Energy Traders | 17,400 | 33,496 | |||||||
Sichuan Hebang Biotechnology Co. Ltd., Class A |
Chemicals | 34,800 | 15,152 | |||||||
Sichuan Kelun Pharmaceutical Co. Ltd., Class A |
Pharmaceuticals | 5,800 | 24,003 | |||||||
bSichuan New Energy Power Co. Ltd. |
Trading Companies & Distributors | 5,800 | 13,446 | |||||||
Sichuan Road & Bridge Group Co. Ltd., Class A |
Construction & Engineering | 17,400 | 34,966 | |||||||
Sichuan Swellfun Co. Ltd., Class A |
Beverages | 1,600 | 17,551 | |||||||
Sichuan Yahua Industrial Group Co. Ltd., Class A, A |
Chemicals | 2,900 | 8,940 | |||||||
Sieyuan Electric Co. Ltd., Class A |
Electrical Equipment | 2,900 | 19,307 | |||||||
Sinoma International Engineering Co., Class A |
Construction & Engineering | 8,700 | 14,164 |
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Franklin FTSE China ETF (continued)
Industry | Shares | Value | ||||||||
Common Stocks (continued) |
||||||||||
China (continued) |
||||||||||
Sinoma Science & Technology Co. Ltd., Class A |
Chemicals | 5,800 | $ | 20,380 | ||||||
Sinomine Resource Group Co. Ltd., Class A |
Metals & Mining | 1,600 | 16,379 | |||||||
Sino-Ocean Group Holding Ltd. |
Real Estate Management & Development | 159,500 | 18,084 | |||||||
Sinopec Engineering Group Co. Ltd., Class H |
Construction & Engineering | 72,500 | 36,019 | |||||||
bSinopec Oilfield Service Corp., Class A |
Energy Equipment & Services | 20,300 | 6,208 | |||||||
bSinopec Oilfield Service Corp., Class H |
Energy Equipment & Services | 116,000 | 8,866 | |||||||
Sinopec Shanghai Petrochemical Co. Ltd., Class A |
Chemicals | 23,200 | 11,385 | |||||||
Sinopec Shanghai Petrochemical Co. Ltd., Class H |
Chemicals | 174,000 | 30,367 | |||||||
Sinopharm Group Co. Ltd., Class H |
Health Care Providers & Services | 58,000 | 175,479 | |||||||
Sinotrans Ltd., Class A |
Air Freight & Logistics | 14,500 | 8,784 | |||||||
Sinotrans Ltd., Class H |
Air Freight & Logistics | 87,000 | 26,931 | |||||||
Sinotruk Hong Kong Ltd. |
Machinery | 29,000 | 45,070 | |||||||
bSkshu Paint Co. Ltd., Class A |
Chemicals | 980 | 16,612 | |||||||
Skyworth Digital Co. Ltd., Class A, A |
Communications Equipment | 2,900 | 8,007 | |||||||
aSmoore International Holdings Ltd. |
Tobacco | 93,690 | 120,306 | |||||||
Songcheng Performance Development Co. Ltd., Class A |
Hotels, Restaurants & Leisure | 9,360 | 22,176 | |||||||
SooChow Securities Co. Ltd., Class A |
Capital Markets | 20,504 | 20,631 | |||||||
Southwest Securities Co. Ltd., Class A |
Capital Markets | 26,100 | 14,784 | |||||||
StarPower Semiconductor Ltd., Class A, A |
Semiconductors & Semiconductor Equipment | 500 | 19,990 | |||||||
bSTO Express Co. Ltd., Class A |
Air Freight & Logistics | 5,800 | 9,392 | |||||||
Sun Art Retail Group Ltd. |
Consumer Staples Distribution & Retail | 101,500 | 40,730 | |||||||
bSunac China Holdings Ltd. |
Real Estate Management & Development | 160,000 | 31,802 | |||||||
aSunac Services Holdings Ltd. |
Real Estate Management & Development | 30,898 | 13,186 | |||||||
Sungrow Power Supply Co. Ltd., Class A |
Electrical Equipment | 5,800 | 88,563 | |||||||
Suning Universal Co. Ltd., Class A |
Real Estate Management & Development | 14,500 | 6,482 | |||||||
Sunny Optical Technology Group Co. Ltd. |
Electronic Equipment, Instruments & Components | 31,900 | 385,850 | |||||||
Sunwoda Electronic Co. Ltd., Class A |
Electrical Equipment | 5,800 | 17,027 | |||||||
Suzhou Anjie Technology Co. Ltd., Class A, A |
Electrical Equipment | 2,900 | 6,326 | |||||||
Suzhou Dongshan Precision Manufacturing Co. Ltd., Class A |
Electronic Equipment, Instruments & Components | 5,800 | 25,549 | |||||||
bSuzhou Gold Mantis Construction Decoration Co. Ltd., Class A |
Construction & Engineering | 8,700 | 6,638 | |||||||
Suzhou Maxwell Technologies Co. Ltd., Class A |
Electrical Equipment | 640 | 28,425 | |||||||
Taiji Computer Corp. Ltd., Class A |
IT Services | 2,900 | 17,812 | |||||||
bTAL Education Group, ADR |
Diversified Consumer Services | 22,272 | 142,764 | |||||||
Tangshan Jidong Cement Co. Ltd., Class A |
Construction Materials | 11,600 | 14,662 | |||||||
TangShan Port Group Co. Ltd., Class A |
Transportation Infrastructure | 20,300 | 9,164 | |||||||
Tangshan Sanyou Chemical Industries Co. Ltd., Class A |
Chemicals | 8,900 | 8,541 | |||||||
TBEA Co. Ltd., Class A |
Electrical Equipment | 14,500 | 45,840 | |||||||
TCL Technology Group Corp., Class A |
Household Durables | 63,800 | 41,156 | |||||||
TCL Zhonghuan Renewable Energy Technology Co. Ltd., Class A |
Semiconductors & Semiconductor Equipment | 11,600 | 81,857 | |||||||
Tencent Holdings Ltd. |
Interactive Media & Services | 306,264 | 15,051,899 | |||||||
bTencent Music Entertainment Group, ADR |
Entertainment | 31,668 | 262,211 | |||||||
The People’s Insurance Co. Group of China Ltd., Class H |
Insurance | 406,000 | 135,507 | |||||||
Thunder Software Technology Co. Ltd., Class A |
Software | 1,500 | 23,666 | |||||||
Tian Di Science & Technology Co. Ltd., Class A |
Machinery | 14,500 | 10,726 | |||||||
Tianjin Chase Sun Pharmaceutical Co. Ltd., Class A |
Pharmaceuticals | 11,600 | 10,084 | |||||||
Tianma Microelectronics Co. Ltd., Class A |
Electronic Equipment, Instruments & Components | 8,700 | 13,315 | |||||||
bTianqi Lithium Corp., Class A |
Chemicals | 5,800 | 63,783 | |||||||
bTianqi Lithium Corp., Class H |
Chemicals | 5,800 | 39,049 |
202 |
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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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Annual Report |
203 |
FRANKLIN TEMPLETON ETF TRUST
SCHEDULE OF INVESTMENTS
Franklin FTSE China ETF (continued)
Industry | Shares | Value | ||||||||
Common Stocks (continued) |
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China (continued) |
||||||||||
Wuxi Shangji Automation Co. Ltd., Class A |
Machinery | 1,260 | $ | 18,735 | ||||||
XCMG Construction Machinery Co. Ltd., Class A |
Machinery | 43,500 | 43,897 | |||||||
Xiamen C & D, Inc., Class A |
Trading Companies & Distributors | 11,600 | 20,388 | |||||||
Xiamen Faratronic Co. Ltd., Class A, A |
Electronic Equipment, Instruments & Components | 800 | 17,009 | |||||||
Xiamen ITG Group Corp. Ltd., Class A |
Trading Companies & Distributors | 8,700 | 10,920 | |||||||
Xiamen Tungsten Co. Ltd., Class A |
Metals & Mining | 5,800 | 17,213 | |||||||
Xiangcai Co. Ltd., Class A |
Real Estate Management & Development | 5,800 | 8,049 | |||||||
a,bXiaomi Corp., Class B |
Technology Hardware, Storage & Peripherals | 748,200 | 1,153,284 | |||||||
Xinfengming Group Co. Ltd., Class A, A |
Chemicals | 2,900 | 4,582 | |||||||
Xinhua Winshare Publishing & Media Co. Ltd., Class H |
Distributors | 29,000 | 22,794 | |||||||
Xinjiang Daqo New Energy Co. Ltd., Class A |
Semiconductors & Semiconductor Equipment | 2,900 | 20,536 | |||||||
Xinjiang Goldwind Science & Technology Co. Ltd., Class A |
Electrical Equipment | 11,600 | 18,648 | |||||||
Xinjiang Goldwind Science & Technology Co. Ltd., Class H |
Electrical Equipment | 29,000 | 24,789 | |||||||
Xinjiang Tianshan Cement Co. Ltd., Class A, A |
Construction Materials | 8,700 | 11,224 | |||||||
Xinjiang Zhongtai Chemical Co. Ltd., Class A |
Chemicals | 11,600 | 12,246 | |||||||
Xinxing Ductile Iron Pipes Co. Ltd., Class A |
Metals & Mining | 14,500 | 8,509 | |||||||
Xinyangfeng Agricultural Technology Co. Ltd., Class A |
Chemicals | 5,800 | 9,071 | |||||||
Xinyi Solar Holdings Ltd. |
Semiconductors & Semiconductor Equipment | 215,642 | 258,497 | |||||||
bXPeng, Inc., Class A |
Automobiles | 53,550 | 298,449 | |||||||
Xtep International Holdings Ltd. |
Textiles, Apparel & Luxury Goods | 58,000 | 73,738 | |||||||
Xuji Electric Co. Ltd., Class A |
Electrical Equipment | 2,900 | 9,882 | |||||||
aYadea Group Holdings Ltd. |
Automobiles | 58,000 | 149,619 | |||||||
Yangling Metron New Material, Inc., Class A |
Semiconductors & Semiconductor Equipment | 2,900 | 18,969 | |||||||
bYango Group Co. Ltd., Class A |
Real Estate Management & Development | 20,300 | 4,848 | |||||||
aYangtze Optical Fibre & Cable Joint Stock Ltd. Co., Class H |
Communications Equipment | 8,500 | 17,498 | |||||||
Yangzhou Yangjie Electronic Technology Co. Ltd., Class A |
Semiconductors & Semiconductor Equipment | 2,900 | 23,226 | |||||||
Yangzijiang Shipbuilding Holdings Ltd. |
Machinery | 130,500 | 117,784 | |||||||
Yankuang Energy Group Co. Ltd., Class A |
Oil, Gas & Consumable Fuels | 5,800 | 30,042 | |||||||
Yankuang Energy Group Co. Ltd., Class H |
Oil, Gas & Consumable Fuels | 96,000 | 343,645 | |||||||
Yantai Changyu Pioneer Wine Co. Ltd., Class B |
Beverages | 11,600 | 17,363 | |||||||
Yantai Eddie Precision Machinery Co. Ltd., Class A |
Machinery | 3,660 | 9,641 | |||||||
Yantai Jereh Oilfield Services Group Co. Ltd., Class A |
Energy Equipment & Services | 2,900 | 11,959 | |||||||
bYatsen Holding Ltd., ADR |
Personal Products | 12,064 | 17,855 | |||||||
Yealink Network Technology Corp. Ltd., Class A |
Communications Equipment | 2,900 | 32,098 | |||||||
bYifan Pharmaceutical Co. Ltd., Class A |
Pharmaceuticals | 5,800 | 11,858 | |||||||
Yifeng Pharmacy Chain Co. Ltd., Class A |
Consumer Staples Distribution & Retail | 2,990 | 25,175 | |||||||
Yihai International Holding Ltd. |
Food Products | 29,000 | 85,153 | |||||||
Yihai Kerry Arawana Holdings Co. Ltd., Class A |
Food Products | 5,800 | 36,401 | |||||||
Yintai Gold Co. Ltd., Class A |
Metals & Mining | 8,900 | 17,068 | |||||||
Yixintang Pharmaceutical Group Co. Ltd., Class A |
Consumer Staples Distribution & Retail | 2,900 | 14,966 | |||||||
YongXing Special Materials Technology Co. Ltd., Class A |
Metals & Mining | 1,100 | 13,439 | |||||||
Yonyou Network Technology Co. Ltd., Class A |
Software | 12,590 | 46,108 | |||||||
Youngor Group Co. Ltd., Class A |
Real Estate Management & Development | 20,300 | 19,273 | |||||||
bYoungy Co. Ltd., Class A |
Metals & Mining | 1,000 | 11,033 | |||||||
YTO Express Group Co. Ltd., Class A |
Air Freight & Logistics | 11,600 | 30,945 |
204 |
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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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Annual Report |
205 |
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 |
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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 |
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 |
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 |
675,276 | |||||||||
|
|
|||||||||
Total
Investments |
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 |
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 |
85,034 | |||||||||
|
|
|||||||||
Total
Investments before Short-Term |
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 |
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 |
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 |
Annual Report |
franklintempleton.com |
FRANKLIN TEMPLETON ETF TRUST
SCHEDULE OF INVESTMENTS
Franklin FTSE Hong Kong ETF (continued)
Industry | Shares | Value | ||||||||
Common Stocks (continued) |
||||||||||
Hong Kong (continued) |
||||||||||
Sino Land Co. Ltd. |
Real Estate Management & Development | 146,900 | $ | 198,737 | ||||||
Sun Hung Kai Properties Ltd. |
Real Estate Management & Development | 54,966 | 770,229 | |||||||
aSuper Hi International Holding Ltd. |
Hotels, Restaurants & Leisure | 6,000 | 15,073 | |||||||
Swire Pacific Ltd., Class A |
Real Estate Management & Development | 16,500 | 126,746 | |||||||
Swire Pacific Ltd., Class B |
Real Estate Management & Development | 35,000 | 43,293 | |||||||
Swire Properties Ltd. |
Real Estate Management & Development | 41,000 | 105,504 | |||||||
Techtronic Industries Co. Ltd. |
Household Durables | 51,000 | 551,258 | |||||||
aUnited Energy Group Ltd. |
Oil, Gas & Consumable Fuels | 288,000 | 34,120 | |||||||
Vitasoy International Holdings Ltd. |
Food Products | 32,000 | 61,962 | |||||||
VTech Holdings Ltd. |
Communications Equipment | 6,400 | 38,278 | |||||||
bWH Group Ltd. |
Food Products | 300,000 | 178,855 | |||||||
Wharf Holdings Ltd. |
Real Estate Management & Development | 37,523 | 85,849 | |||||||
Wharf Real Estate Investment Co. Ltd. |
Real Estate Management & Development | 60,571 | 347,996 | |||||||
Xinyi Glass Holdings Ltd. |
Automobile Components | 80,152 | 143,560 | |||||||
Yue Yuen Industrial Holdings Ltd. |
Textiles, Apparel & Luxury Goods | 28,000 | 39,450 | |||||||
|
|
|||||||||
13,167,073 | ||||||||||
|
|
|||||||||
Indonesia 0.2% |
||||||||||
First Pacific Co. Ltd. |
Financial Services | 96,000 | 30,818 | |||||||
|
|
|||||||||
Italy 0.8% |
||||||||||
PRADA SpA |
Textiles, Apparel & Luxury Goods | 20,000 | 141,784 | |||||||
|
|
|||||||||
Luxembourg 0.3% |
||||||||||
L’Occitane International SA |
Specialty Retail | 18,000 | 44,943 | |||||||
|
|
|||||||||
Macau 6.0% |
||||||||||
aGalaxy Entertainment Group Ltd. |
Hotels, Restaurants & Leisure | 83,300 | 556,575 | |||||||
aMGM China Holdings Ltd. |
Hotels, Restaurants & Leisure | 28,800 | 35,588 | |||||||
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 |
Annual Report |
franklintempleton.com |
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 |
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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 |
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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 |
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 |
4,417,293 | |||||||||
|
|
|||||||||
Total
Investments |
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 |
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 |
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 |
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 |
The accompanying notes are an integral part of these financial statements. | Annual Report |
281 |
FRANKLIN TEMPLETON ETF TRUST
Financial Highlights
Franklin FTSE Saudi Arabia ETF
Year Ended March 31, | ||||||||||||||||||||
2023 | 2022 | 2021 | 2020 | 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.
284 |
Annual Report | The accompanying notes are an integral part of these financial statements. |
franklintempleton.com |
FRANKLIN TEMPLETON ETF TRUST
Financial Highlights
Franklin FTSE South Africa ETF
Year Ended March 31, | ||||||||||||||||||||
2023 | 2022 | 2021 | 2020 | 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% | — |
franklintempleton.com |
The accompanying notes are an integral part of these financial statements. | Annual Report |
285 |
FRANKLIN TEMPLETON ETF TRUST
Schedule of Investments, March 31, 2023
Franklin FTSE South Africa ETF
Industry | Shares | Value | ||||||||
Common Stocks 99.9% |
||||||||||
Luxembourg 1.2% |
||||||||||
Reinet Investments SCA |
Capital Markets | 1,278 | $ | 26,296 | ||||||
|
|
|||||||||
Romania 1.1% |
||||||||||
NEPI Rockcastle NV |
Real Estate Management & Development | 4,370 | 25,445 | |||||||
|
|
|||||||||
South Africa 97.6% |
||||||||||
Absa Group Ltd. |
Banks | 7,824 | 80,160 | |||||||
African Rainbow Minerals Ltd. |
Metals & Mining | 994 | 12,922 | |||||||
Anglo American Platinum Ltd. |
Metals & Mining | 528 | 28,390 | |||||||
AngloGold Ashanti Ltd. |
Metals & Mining | 3,942 | 95,848 | |||||||
Aspen Pharmacare Holdings Ltd. |
Pharmaceuticals | 3,492 | 36,053 | |||||||
AVI Ltd. |
Food Products | 3,084 | 12,202 | |||||||
Bid Corp. Ltd. |
Consumer Staples Distribution & Retail | 3,134 | 70,390 | |||||||
Bidvest Group Ltd. |
Industrial Conglomerates | 3,198 | 45,678 | |||||||
Capitec Bank Holdings Ltd. |
Banks | 800 | 76,097 | |||||||
Clicks Group Ltd. |
Consumer Staples Distribution & Retail | 2,298 | 33,303 | |||||||
aDis-Chem Pharmacies Ltd. |
Consumer Staples Distribution & Retail | 3,484 | 5,094 | |||||||
bDiscovery Ltd. |
Insurance | 4,950 | 38,905 | |||||||
Exxaro Resources Ltd. |
Oil, Gas & Consumable Fuels | 2,274 | 23,909 | |||||||
FirstRand Ltd. |
Financial Services | 46,756 | 159,117 | |||||||
Foschini Group Ltd. |
Specialty Retail | 3,032 | 15,542 | |||||||
Gold Fields Ltd. |
Metals & Mining | 8,274 | 110,522 | |||||||
Growthpoint Properties Ltd. |
Diversified REITs | 31,978 | 23,539 | |||||||
Harmony Gold Mining Co. Ltd. |
Metals & Mining | 5,048 | 20,821 | |||||||
Impala Platinum Holdings Ltd. |
Metals & Mining | 7,658 | 70,712 | |||||||
Investec Ltd. |
Capital Markets | 2,632 | 14,556 | |||||||
Kumba Iron Ore Ltd. |
Metals & Mining | 508 | 12,875 | |||||||
Life Healthcare Group Holdings Ltd. |
Health Care Providers & Services | 13,076 | 14,216 | |||||||
Momentum Metropolitan Holdings |
Insurance | 11,740 | 11,666 | |||||||
Mr Price Group Ltd. |
Specialty Retail | 2,420 | 19,668 | |||||||
MTN Group Ltd. |
Wireless Telecommunication Services | 16,962 | 121,863 | |||||||
MultiChoice Group |
Media | 2,752 | 19,134 | |||||||
Naspers Ltd., Class N |
Internet & Direct Marketing Retail | 1,812 | 336,302 | |||||||
Nedbank Group Ltd. |
Banks | 3,952 | 48,302 | |||||||
Netcare Ltd. |
Health Care Providers & Services | 13,500 | 11,269 | |||||||
bNortham Platinum Holdings Ltd. |
Metals & Mining | 3,486 | 28,442 | |||||||
Old Mutual Ltd. |
Insurance | 42,392 | 28,194 | |||||||
OUTsurance Group Ltd. |
Insurance | 7,934 | 15,620 | |||||||
aPepkor Holdings Ltd. |
Specialty Retail | 19,460 | 18,909 | |||||||
Pick n Pay Stores Ltd. |
Consumer Staples Distribution & Retail | 3,250 | 7,743 | |||||||
Redefine Properties Ltd. |
Diversified REITs | 61,912 | 12,702 | |||||||
Remgro Ltd. |
Financial Services | 4,790 | 36,292 | |||||||
Royal Bafokeng Platinum Ltd. |
Metals & Mining | 702 | 5,672 | |||||||
Sanlam Ltd. |
Insurance | 16,536 | 52,537 | |||||||
Santam Ltd. |
Insurance | 382 | 6,136 | |||||||
Sappi Ltd. |
Paper & Forest Products | 5,370 | 13,865 | |||||||
Sasol Ltd. |
Chemicals | 5,254 | 71,070 | |||||||
Shoprite Holdings Ltd. |
Consumer Staples Distribution & Retail | 4,572 | 57,273 | |||||||
Sibanye Stillwater Ltd. |
Metals & Mining | 26,388 | 54,479 | |||||||
Standard Bank Group Ltd. |
Banks | 12,516 | 121,904 | |||||||
Tiger Brands Ltd. |
Food Products | 1,486 | 16,794 | |||||||
Transaction Capital Ltd. |
Consumer Finance | 5,506 | 3,957 | |||||||
Vodacom Group Ltd. |
Wireless Telecommunication Services | 5,620 | 38,657 |
286 |
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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.
franklintempleton.com |
The accompanying notes are an integral part of these financial statements. | Annual Report |
287 |
FRANKLIN TEMPLETON ETF TRUST
Financial Highlights
Franklin FTSE South Korea ETF
Year Ended March 31, | ||||||||||||||||||||
2023 | 2022 | 2021 | 2020 | 2019 | ||||||||||||||||
Per share operating performance (for a share outstanding throughout the year) |
||||||||||||||||||||
Net asset value, beginning of year |
$25.57 | $31.48 | $16.52 | $21.19 | $25.98 | |||||||||||||||
Income from investment 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 |
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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 |
franklintempleton.com |
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 |
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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 |
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 |
11,102,223 | |||||||||
|
|
|||||||||
Total
Investments |
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 |
Annual Report |
franklintempleton.com |
FRANKLIN TEMPLETON ETF TRUST
SCHEDULE OF INVESTMENTS
Franklin FTSE Switzerland ETF (continued)
Industry | Shares | Value | ||||||||
Common Stocks (continued) |
||||||||||
United States 2.6% |
||||||||||
Holcim AG, Class B |
Construction Materials | 20,112 | $ | 1,296,696 | ||||||
|
|
|||||||||
Total Investments (Cost $48,952,282) 98.2% |
49,051,415 | |||||||||
Other Assets, less Liabilities 1.8% |
889,334 | |||||||||
|
|
|||||||||
Net Assets 100.0% |
$ | 49,940,749 | ||||||||
|
|
aNon-income producing.
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 |
franklintempleton.com |
Annual Report |
297 |
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 |
298 |
Annual Report |
franklintempleton.com |
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 |
136,871,589 | |||||||||
Other Assets, less Liabilities 0.2% |
222,238 | |||||||||
|
|
|||||||||
Net Assets 100.0% |
$ | 137,093,827 | ||||||||
|
|
aNon-income producing.
franklintempleton.com |
The accompanying notes are an integral part of these financial statements. | Annual Report |
299 |
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 |
franklintempleton.com |
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 |
franklintempleton.com |
FRANKLIN TEMPLETON ETF TRUST
SCHEDULE OF INVESTMENTS
Franklin FTSE United Kingdom ETF (continued)
Industry | Shares | Value | ||||||||||
Common Stocks (continued) | ||||||||||||
United Kingdom (continued) |
| |||||||||||
SSE PLC |
Electric Utilities | 248,160 | $ | 5,532,279 | ||||||||
St. James’s Place PLC |
Capital Markets | 122,670 | 1,836,788 | |||||||||
Standard Chartered PLC |
Banks | 543,320 | 4,126,122 | |||||||||
Tate & Lyle PLC |
Food Products | 91,650 | 889,114 | |||||||||
Taylor Wimpey PLC |
Household Durables | 806,520 | 1,186,195 | |||||||||
Tesco PLC |
Consumer Staples Distribution & Retail | 1,658,160 | 5,447,466 | |||||||||
Unilever PLC |
Personal Products | 575,280 | 29,803,679 | |||||||||
UNITE Group PLC |
Diversified REITs | 73,320 | 869,849 | |||||||||
United Utilities Group PLC |
Water Utilities | 156,040 | 2,045,118 | |||||||||
Vodafone Group PLC |
Wireless Telecommunication Services | 5,403,590 | 5,966,373 | |||||||||
Weir Group PLC |
Machinery | 59,220 | 1,361,208 | |||||||||
Whitbread PLC |
Hotels, Restaurants & Leisure | 46,060 | 1,701,123 | |||||||||
a |
Wise PLC, Class A |
IT Services | 161,210 | 1,083,946 | ||||||||
WPP PLC |
Media | 238,760 | 2,829,929 | |||||||||
|
|
|||||||||||
452,035,703 | ||||||||||||
|
|
|||||||||||
Total
Investments before Short- Term Investments |
564,026,714 | |||||||||||
|
|
|||||||||||
Short-Term Investments 0.0% | ||||||||||||
Money Market Funds 0.0% | ||||||||||||
United States 0.0% | ||||||||||||
c,d |
Institutional
Fiduciary Trust - Money Market |
Money Market Funds | 10 | 10 | ||||||||
|
|
|||||||||||
Total
Short-Term Investments |
10 | |||||||||||
|
|
|||||||||||
Total
Investments |
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.
franklintempleton.com |
The accompanying notes are an integral part of these financial statements. | Annual Report |
303 |
FRANKLIN TEMPLETON ETF TRUST
Statements of Assets and Liabilities
March 31, 2023
Franklin FTSE Asia ex Japan ETF |
Franklin FTSE Australia ETF |
Franklin FTSE Brazil ETF |
Franklin FTSE Canada ETF |
|||||||||||||
|
||||||||||||||||
Assets: |
||||||||||||||||
Investments in securities: |
||||||||||||||||
Cost – Unaffiliated issuers |
$32,145,017 | $27,816,869 | $ 268,034,332 | $298,943,761 | ||||||||||||
Value – Unaffiliated issuers |
$30,033,178 | $28,942,982 | $ 266,560,670 | $279,121,167 | ||||||||||||
Cash |
— | 60 | 22,230 | 67,820 | ||||||||||||
Foreign currency, at value (cost $47,250, $191,523, $793,582 and $612,335, respectively) |
47,486 | 191,862 | 821,952 | 614,983 | ||||||||||||
Receivables: |
||||||||||||||||
Dividends |
86,933 | 256,240 | 1,170,621 | 625,313 | ||||||||||||
Variation margin on futures contracts |
— | 8,037 | — | 6,231 | ||||||||||||
Deposits with brokers for: |
||||||||||||||||
Futures contracts |
49 | 40,024 | 427,274 | 50,360 | ||||||||||||
|
|
|||||||||||||||
Total assets |
30,167,646 | 29,439,205 | 269,002,747 | 280,485,874 | ||||||||||||
|
|
|||||||||||||||
Liabilities: |
||||||||||||||||
Payables: |
||||||||||||||||
Investment securities purchased |
6,233 | — | — | 537,862 | ||||||||||||
Management fees |
4,716 | 2,269 | 47,523 | 20,964 | ||||||||||||
Variation margin on futures contracts |
— | — | 41,448 | — | ||||||||||||
Funds advanced by custodian |
81,349 | — | — | — | ||||||||||||
Deferred tax |
95,019 | — | — | — | ||||||||||||
|
|
|||||||||||||||
Total liabilities |
187,317 | 2,269 | 88,971 | 558,826 | ||||||||||||
|
|
|||||||||||||||
Net assets, at value |
$29,980,329 | $29,436,936 | $ 268,913,776 | $279,927,048 | ||||||||||||
|
|
|||||||||||||||
Net assets consist of: |
||||||||||||||||
Paid-in capital |
$36,318,823 | $29,526,662 | $ 422,644,770 | $301,211,266 | ||||||||||||
Total distributable earnings (loss) |
(6,338,494 | ) | (89,726 | ) | (153,730,994 | ) | (21,284,218 | ) | ||||||||
|
|
|||||||||||||||
Net assets, at value |
$29,980,329 | $29,436,936 | $ 268,913,776 | $279,927,048 | ||||||||||||
|
|
|||||||||||||||
Shares outstanding |
1,400,000 | 1,100,000 | 16,000,000 | 9,100,000 | ||||||||||||
|
|
|||||||||||||||
Net asset value per share |
$ 21.41 | $ 26.76 | $ 16.81 | $ 30.76 | ||||||||||||
|
|
304 |
Annual Report | The accompanying notes are an integral part of these financial statements. |
franklintempleton.com |
FRANKLIN TEMPLETON ETF TRUST
FINANCIAL STATEMENTS
Statements of Assets and Liabilities (continued)
March 31, 2023
Franklin FTSE China ETF |
Franklin FTSE Europe ETF |
Franklin FTSE Europe Hedged ETF |
Franklin FTSE France ETF |
|||||||||||||
|
||||||||||||||||
Assets: |
||||||||||||||||
Investments in securities: |
||||||||||||||||
Cost – Unaffiliated issuers |
$140,465,875 | $113,790,301 | $14,095,289 | $5,871,994 | ||||||||||||
Cost – Non-controlled affiliates (Note 3c) |
— | — | 4,136 | — | ||||||||||||
Value – Unaffiliated issuers |
$114,257,538 | $110,175,895 | $14,018,999 | $6,047,577 | ||||||||||||
Value – Non-controlled affiliates (Note 3c) |
— | — | 4,136 | — | ||||||||||||
Cash |
— | 37,235 | — | — | ||||||||||||
Foreign currency, at value (cost $3,687, $202,826, $27,374 and $43,026, respectively) |
3,687 | 203,722 | 27,481 | 43,711 | ||||||||||||
Receivables: |
||||||||||||||||
Dividends and interest |
5,406 | 685,581 | 67,832 | 4,940 | ||||||||||||
European Union tax reclaims receivable (Note 1e) |
— | 497,518 | 38,729 | 84,224 | ||||||||||||
Investment securities sold |
— | — | 301,126 | — | ||||||||||||
Variation margin on futures contracts |
— | 598 | — | 636 | ||||||||||||
Deposits with brokers for: |
||||||||||||||||
Futures contracts |
4 | 90,197 | 11,471 | 5,975 | ||||||||||||
Unrealized appreciation on OTC forward exchange contracts |
— | — | 2,354 | — | ||||||||||||
|
|
|||||||||||||||
Total assets |
114,266,635 | 111,690,746 | 14,472,128 | 6,187,063 | ||||||||||||
|
|
|||||||||||||||
Liabilities: |
||||||||||||||||
Payables: |
||||||||||||||||
Investment securities purchased |
— | — | 21 | 31,582 | ||||||||||||
European Union tax reclaim contingent fees payable (Note 1e) |
— | 124,379 | 9,682 | 21,056 | ||||||||||||
Management fees |
17,826 | 8,219 | 1,057 | 450 | ||||||||||||
Variation margin on futures contracts |
— | — | 3,223 | — | ||||||||||||
Funds advanced by custodian |
14,453 | — | — | 194 | ||||||||||||
Unrealized depreciation on OTC forward exchange contracts |
— | — | 295,253 | — | ||||||||||||
Total liabilities |
32,279 | 132,598 | 309,236 | 53,282 | ||||||||||||
|
|
|||||||||||||||
Net assets, at value |
$114,234,356 | $111,558,148 | $14,162,892 | $6,133,781 | ||||||||||||
|
|
|||||||||||||||
Net assets consist of: |
||||||||||||||||
Paid-in capital |
$161,465,654 | $118,847,959 | $17,715,519 | $6,219,484 | ||||||||||||
Total distributable earnings (loss) |
(47,231,298 | ) | (7,289,811 | ) | (3,552,627 | ) | (85,703 | ) | ||||||||
|
|
|||||||||||||||
Net assets, at value |
$114,234,356 | $111,558,148 | $14,162,892 | $6,133,781 | ||||||||||||
|
|
|||||||||||||||
Shares outstanding |
5,800,000 | 4,200,000 | 600,000 | 200,000 | ||||||||||||
|
|
|||||||||||||||
Net asset value per share |
$ 19.70 | $ 26.56 | $ 23.60 | $ 30.67 | ||||||||||||
|
|
franklintempleton.com |
The accompanying notes are an integral part of these financial statements. | Annual Report |
305 |
FRANKLIN TEMPLETON ETF TRUST
FINANCIAL STATEMENTS
Statements of Assets and Liabilities (continued)
March 31, 2023
Franklin FTSE Germany ETF |
Franklin FTSE Hong Kong ETF |
Franklin FTSE India ETF |
Franklin FTSE Italy ETF |
|||||||||||||
|
||||||||||||||||
Assets: |
||||||||||||||||
Investments in securities: |
| |||||||||||||||
Cost – Unaffiliated issuers |
$ | 19,214,695 | $ | 18,872,342 | $ | 98,043,841 | $ | 4,459,161 | ||||||||
Value – Unaffiliated issuers |
$ | 17,683,414 | $ | 17,034,504 | $ | 99,072,406 | $ | 5,037,427 | ||||||||
Cash |
— | 893 | — | 251 | ||||||||||||
Foreign currency, at value (cost $760, $4,657, $299,561 and $1,492, respectively) |
766 | 4,657 | 300,634 | 1,502 | ||||||||||||
Receivables: |
||||||||||||||||
Dividends |
468 | 27,141 | 11,662 | — | ||||||||||||
Variation margin on futures contracts |
— | 247 | — | — | ||||||||||||
Deposits with brokers for: |
| |||||||||||||||
Futures contracts |
— | 2,648 | 13 | — | ||||||||||||
|
|
|||||||||||||||
Total assets |
17,684,648 | 17,070,090 | 99,384,715 | 5,039,180 | ||||||||||||
|
|
|||||||||||||||
Liabilities: |
||||||||||||||||
Due to Custodian |
5 | — | — | — | ||||||||||||
Payables: |
||||||||||||||||
Management fees |
1,277 | 1,217 | 15,815 | 366 | ||||||||||||
Funds advanced by custodian |
153 | — | 279,516 | — | ||||||||||||
Deferred tax |
— | — | 111,942 | — | ||||||||||||
|
|
|||||||||||||||
Total liabilities |
1,435 | 1,217 | 407,273 | 366 | ||||||||||||
|
|
|||||||||||||||
Net assets, at value |
$ | 17,683,213 | $ | 17,068,873 | $ | 98,977,442 | $ | 5,038,814 | ||||||||
|
|
|||||||||||||||
Net assets consist of: |
| |||||||||||||||
Paid-in capital |
$ | 20,187,918 | $ | 20,392,708 | $ | 101,969,733 | $ | 4,977,355 | ||||||||
Total distributable earnings (loss) |
(2,504,705 | ) | (3,323,835 | ) | (2,992,291 | ) | 61,459 | |||||||||
|
|
|||||||||||||||
Net assets, at value |
$ | 17,683,213 | $ | 17,068,873 | $ | 98,977,442 | $ | 5,038,814 | ||||||||
|
|
|||||||||||||||
Shares outstanding |
800,000 | 800,000 | 3,600,000 | 200,000 | ||||||||||||
|
|
|||||||||||||||
Net asset value per share |
$ | 22.10 | $ | 21.34 | $ | 27.49 | $ | 25.19 | ||||||||
|
|
306 |
Annual Report | The accompanying notes are an integral part of these financial statements. |
franklintempleton.com |
FRANKLIN TEMPLETON ETF TRUST
FINANCIAL STATEMENTS
Statements of Assets and Liabilities (continued)
March 31, 2023
Franklin FTSE Japan ETF |
Franklin FTSE Japan Hedged ETF |
Franklin FTSE Latin America ETF |
Franklin FTSE Mexico ETF |
|||||||||||||
|
||||||||||||||||
Assets: |
||||||||||||||||
Investments in securities: |
||||||||||||||||
Cost – Unaffiliated issuers |
$ | 1,089,076,853 | $13,750,298 | $61,702,938 | $ | 21,033,038 | ||||||||||
Cost – Non-controlled affiliates (Note 3c) |
4,417,293 | 721 | — | — | ||||||||||||
Value – Unaffiliated issuers+ |
$ | 988,568,241 | $13,036,206 | $67,137,485 | $ | 24,885,047 | ||||||||||
Value – Non-controlled affiliates (Note 3c) |
4,417,293 | 721 | — | — | ||||||||||||
Cash |
32 | — | — | — | ||||||||||||
Foreign currency, at value (cost $928,337, $59,181, $50,224 and $5,990, respectively) |
920,343 | 58,717 | 51,729 | 6,103 | ||||||||||||
Receivables: |
| |||||||||||||||
Dividends |
10,450,363 | 141,239 | 181,240 | 15,014 | ||||||||||||
Investment securities sold |
196,649 | 285,879 | — | — | ||||||||||||
Variation margin on futures contracts |
201,220 | 2,700 | — | — | ||||||||||||
Deposits with brokers for: |
||||||||||||||||
Futures contracts |
480,577 | 7,393 | 37,522 | 35 | ||||||||||||
|
|
|||||||||||||||
Total assets |
1,005,234,718 | 13,532,855 | 67,407,976 | 24,906,199 | ||||||||||||
|
|
|||||||||||||||
Liabilities: |
| |||||||||||||||
Payables: |
| |||||||||||||||
Investment securities purchased |
1,519 | 121 | — | — | ||||||||||||
Management fees |
74,143 | 988 | 10,606 | 3,882 | ||||||||||||
Variation margin on futures contracts |
— | — | 3,962 | — | ||||||||||||
Funds advanced by custodian |
— | — | 21,176 | 12,469 | ||||||||||||
Payable upon return of securities loaned |
4,355,834 | — | — | — | ||||||||||||
Unrealized depreciation on OTC forward exchange contracts |
— | 247,252 | — | — | ||||||||||||
|
|
|||||||||||||||
Total liabilities |
4,431,496 | 248,361 | 35,744 | 16,351 | ||||||||||||
|
|
|||||||||||||||
Net assets, at value |
$ | 1,000,803,222 | $13,284,494 | $67,372,232 | $ | 24,889,848 | ||||||||||
|
|
|||||||||||||||
Net assets consist of: |
||||||||||||||||
Paid-in capital |
$ | 1,111,304,190 | $20,188,740 | $63,559,300 | $ | 22,021,779 | ||||||||||
Total distributable earnings (loss) |
(110,500,968 | ) | (6,904,246 | ) | 3,812,932 | 2,868,069 | ||||||||||
|
|
|||||||||||||||
Net assets, at value |
$ | 1,000,803,222 | $13,284,494 | $67,372,232 | $ | 24,889,848 | ||||||||||
|
|
|||||||||||||||
Shares outstanding |
39,000,000 | 500,000 | 3,300,000 | 850,000 | ||||||||||||
|
|
|||||||||||||||
Net asset value per share |
$ | 25.66 | $ 26.57 | $ 20.42 | $ | 29.28 | ||||||||||
|
|
|||||||||||||||
+Includes securities loaned |
4,146,755 | — | — | — |
franklintempleton.com |
The accompanying notes are an integral part of these financial statements. | Annual Report |
307 |
FRANKLIN TEMPLETON ETF TRUST
FINANCIAL STATEMENTS
Statements of Assets and Liabilities (continued)
March 31, 2023
Franklin FTSE Saudi Arabia ETF |
Franklin FTSE South Africa ETF |
Franklin FTSE South Korea ETF |
||||||||||
|
||||||||||||
Assets: |
||||||||||||
Investments in securities: |
| |||||||||||
Cost – Unaffiliated issuers |
$20,984,820 | $2,702,285 | $292,428,896 | |||||||||
Value – Unaffiliated issuers |
$21,730,478 | $2,242,239 | $290,711,940 | |||||||||
Foreign currency, at value (cost $56,228, $5,118 and $75,909, respectively) |
56,252 | 5,154 | 75,945 | |||||||||
Receivables: |
||||||||||||
Dividends |
149,721 | 8,936 | 2,161,241 | |||||||||
Investment securities sold |
— | — | 449,585 | |||||||||
Variation margin on futures contracts |
— | — | 55,556 | |||||||||
Deposits with brokers for: |
| |||||||||||
Futures contracts |
— | — | 172,070 | |||||||||
|
|
|||||||||||
Total assets |
21,936,451 | 2,256,329 | 293,626,337 | |||||||||
|
|
|||||||||||
Liabilities: |
||||||||||||
Payables: |
||||||||||||
Investment securities purchased |
— | — | 507,088 | |||||||||
Management fees |
7,002 | 428 | 21,733 | |||||||||
Funds advanced by custodian |
55,817 | 12,274 | 48,723 | |||||||||
|
|
|||||||||||
Total liabilities |
62,819 | 12,702 | 577,544 | |||||||||
|
|
|||||||||||
Net assets, at value |
$21,873,632 | $2,243,627 | $293,048,793 | |||||||||
|
|
|||||||||||
Net assets consist of: |
| |||||||||||
Paid-in capital |
$21,045,215 | $3,099,543 | $307,935,864 | |||||||||
Total distributable earnings (loss) |
828,417 | (855,916 | ) | (14,887,071 | ) | |||||||
|
|
|||||||||||
Net assets, at value |
$21,873,632 | $2,243,627 | $293,048,793 | |||||||||
|
|
|||||||||||
Shares outstanding |
650,000 | 100,000 | 13,900,000 | |||||||||
|
|
|||||||||||
Net asset value per share |
$ 33.65 | $ 22.44 | $ 21.08 | |||||||||
|
|
308 |
Annual Report | The accompanying notes are an integral part of these financial statements. |
franklintempleton.com |
FRANKLIN TEMPLETON ETF TRUST
FINANCIAL STATEMENTS
Statements of Assets and Liabilities (continued)
March 31, 2023
Franklin FTSE Switzerland ETF |
Franklin FTSE Taiwan ETF |
Franklin FTSE United Kingdom ETF |
||||||||||
|
||||||||||||
Assets: |
| |||||||||||
Investments in securities: |
| |||||||||||
Cost – Unaffiliated issuers |
$48,952,282 | $125,458,129 | $590,608,325 | |||||||||
Cost – Non-controlled affiliates (Note 3c) |
— | — | 10 | |||||||||
Value – Unaffiliated issuers |
$49,051,415 | $136,871,589 | $564,026,704 | |||||||||
Value – Non-controlled affiliates (Note 3c) |
— | — | 10 | |||||||||
Cash |
— | 954 | 66,638 | |||||||||
Foreign currency, at value (cost $17,394, $78,095 and $911,204, respectively) |
17,446 | 78,102 | 910,804 | |||||||||
Receivables: |
| |||||||||||
Dividends |
854,880 | 159,771 | 3,737,339 | |||||||||
Variation margin on futures contracts |
5,205 | — | 9,870 | |||||||||
Deposits with brokers for: |
| |||||||||||
Futures contracts |
48,710 | 13 | 283,163 | |||||||||
|
|
|||||||||||
Total assets |
49,977,656 | 137,110,429 | 569,034,528 | |||||||||
|
|
|||||||||||
Liabilities: |
| |||||||||||
Payables: |
| |||||||||||
Investment securities purchased |
— | — | 31,950 | |||||||||
Management fees |
3,656 | 16,602 | 41,663 | |||||||||
Funds advanced by custodian |
33,251 | — | — | |||||||||
|
|
|||||||||||
Total liabilities |
36,907 | 16,602 | 73,613 | |||||||||
|
|
|||||||||||
Net assets, at value |
$49,940,749 | $137,093,827 | $568,960,915 | |||||||||
|
|
|||||||||||
Net assets consist of: |
| |||||||||||
Paid-in capital |
$50,648,740 | $128,392,163 | $608,290,313 | |||||||||
Total distributable earnings (loss) |
(707,991 | ) | 8,701,664 | (39,329,398 | ) | |||||||
|
|
|||||||||||
Net assets, at value |
$49,940,749 | $137,093,827 | $568,960,915 | |||||||||
|
|
|||||||||||
Shares outstanding |
1,600,000 | 3,700,000 | 23,500,000 | |||||||||
|
|
|||||||||||
Net asset value per share |
$ 31.21 | $ 37.05 | $ 24.21 | |||||||||
|
|
franklintempleton.com |
The accompanying notes are an integral part of these financial statements. | Annual Report |
309 |
FRANKLIN TEMPLETON ETF TRUST
FINANCIAL STATEMENTS
Statements of Operations
for the year ended March 31, 2023
Franklin FTSE Asia ex Japan ETF |
Franklin FTSE Australia ETF |
Franklin FTSE Brazil ETF |
Franklin FTSE Canada ETF |
|||||||||||||
|
||||||||||||||||
Investment income: |
||||||||||||||||
Dividends: (net of foreign taxes)a |
||||||||||||||||
Unaffiliated issuers |
$ 853,108 | $ 1,714,905 | $ 36,247,124 | $ 6,964,614 | ||||||||||||
Non-cash dividends |
76,504 | — | — | — | ||||||||||||
Interest: |
||||||||||||||||
Unaffiliated issuers |
230 | — | — | — | ||||||||||||
Interest from securities loaned (Note 1d): |
||||||||||||||||
Unaffiliated issuers (net of fees and rebates) |
12 | — | — | — | ||||||||||||
Non-Controlled affiliates (Note 3c) |
10 | — | — | — | ||||||||||||
|
|
|||||||||||||||
Total investment income |
929,864 | 1,714,905 | 36,247,124 | 6,964,614 | ||||||||||||
|
|
|||||||||||||||
Expenses: |
||||||||||||||||
Management fees (Note 3a) |
61,706 | 25,597 | 619,096 | 202,904 | ||||||||||||
|
|
|||||||||||||||
Total expenses |
61,706 | 25,597 | 619,096 | 202,904 | ||||||||||||
Expenses waived/paid by affiliates (Note 3c) |
(143 | ) | — | — | — | |||||||||||
|
|
|||||||||||||||
Net expenses |
61,563 | 25,597 | 619,096 | 202,904 | ||||||||||||
|
|
|||||||||||||||
Net investment income |
868,301 | 1,689,308 | 35,628,028 | 6,761,710 | ||||||||||||
|
|
|||||||||||||||
Realized and unrealized gains (losses): |
||||||||||||||||
Net realized gain (loss) from: |
||||||||||||||||
Investments: |
||||||||||||||||
Unaffiliated issuers |
(2,269,307 | ) | (591,067 | ) | (91,682,458 | ) | (2,938,738 | ) | ||||||||
In-kind redemptions |
169,438 | 382,610 | — | 6,382,227 | ||||||||||||
Foreign currency transactions |
(17,679 | ) | (33,976 | ) | (1,122,565 | ) | (71,721 | ) | ||||||||
Futures contracts |
(41,334 | ) | 4,705 | (2,139,014 | ) | (32,397 | ) | |||||||||
|
|
|||||||||||||||
Net realized gain (loss) |
(2,158,882 | ) | (237,728 | ) | (94,944,037 | ) | 3,339,371 | |||||||||
|
|
|||||||||||||||
Net change in unrealized appreciation (depreciation) on: |
||||||||||||||||
Investments: |
||||||||||||||||
Unaffiliated issuers |
(2,721,461 | ) | (4,246,961 | ) | (44,926,968 | ) | (27,305,464 | ) | ||||||||
Translation of other assets and liabilities denominated in foreign currencies |
404 | (515 | ) | (9,444 | ) | 5,184 | ||||||||||
Futures contracts |
— | 865 | (313,611 | ) | 13,181 | |||||||||||
Change in deferred taxes on unrealized appreciation |
82,986 | — | — | — | ||||||||||||
|
|
|||||||||||||||
Net change in unrealized appreciation (depreciation) |
(2,638,071 | ) | (4,246,611 | ) | (45,250,023 | ) | (27,287,099 | ) | ||||||||
|
|
|||||||||||||||
Net realized and unrealized gain (loss) |
(4,796,953 | ) | (4,484,339 | ) | (140,194,060 | ) | (23,947,728 | ) | ||||||||
|
|
|||||||||||||||
Net increase (decrease) in net assets resulting from operations |
$(3,928,652 | ) | $(2,795,031 | ) | $(104,566,032 | ) | $(17,186,018 | ) | ||||||||
|
|
|||||||||||||||
aForeign taxes withheld on dividends |
$116,622 | $11,838 | $1,369,781 | $1,231,578 | ||||||||||||
|
|
310 |
Annual Report | The accompanying notes are an integral part of these financial statements. |
franklintempleton.com |
FRANKLIN TEMPLETON ETF TRUST
FINANCIAL STATEMENTS
Statements of Operations (continued)
for the year ended March 31, 2023
Franklin FTSE China ETF |
Franklin FTSE Europe ETF |
Franklin FTSE Europe Hedged ETF |
Franklin FTSE France ETF |
|||||||||||||
|
||||||||||||||||
Investment income: |
||||||||||||||||
Dividends: (net of foreign taxes)a |
||||||||||||||||
Unaffiliated issuers |
$ 3,169,280 | $ 3,413,567 | $ 567,428 | $ 227,982 | ||||||||||||
European Union tax reclaims (Note 1e) |
— | 497,518 | 38,729 | 84,224 | ||||||||||||
Interest: |
||||||||||||||||
Unaffiliated issuers |
2,413 | — | — | — | ||||||||||||
Interest from securities loaned (Note 1d): |
||||||||||||||||
Non-Controlled affiliates (Note 3c) |
1,001 | — | — | — | ||||||||||||
|
|
|||||||||||||||
Total investment income |
3,172,694 | 3,911,085 | 606,157 | 312,206 | ||||||||||||
|
|
|||||||||||||||
Expenses: |
||||||||||||||||
Management fees (Note 3a) |
200,306 | 74,288 | 15,218 | 6,610 | ||||||||||||
Contingent fees for European Union tax reclaims (Note 1e) |
— | 124,379 | 9,682 | 21,056 | ||||||||||||
Other |
— | 305 | 25 | 1 | ||||||||||||
|
|
|||||||||||||||
Total expenses |
200,306 | 198,972 | 24,925 | 27,667 | ||||||||||||
Expenses waived/paid by affiliates (Note 3c) |
(114 | ) | — | (85 | ) | — | ||||||||||
|
|
|||||||||||||||
Net expenses |
200,192 | 198,972 | 24,840 | 27,667 | ||||||||||||
|
|
|||||||||||||||
Net investment income |
2,972,502 | 3,712,113 | 581,317 | 284,539 | ||||||||||||
|
|
|||||||||||||||
Realized and unrealized gains (losses): |
||||||||||||||||
Net realized gain (loss) from: |
||||||||||||||||
Investments: |
||||||||||||||||
Unaffiliated issuers |
(8,197,395 | ) | (2,028,827 | ) | (1,927,497 | ) | (200,236 | ) | ||||||||
In-kind redemptions |
— | 6,498,626 | 308,341 | (75,711 | ) | |||||||||||
Foreign currency transactions |
(10,174 | ) | (26,976 | ) | (6,270 | ) | (997 | ) | ||||||||
Forward exchange contracts |
— | — | 1,844,814 | — | ||||||||||||
Futures contracts |
(282,944 | ) | 35,645 | 800 | (3,299 | ) | ||||||||||
|
|
|||||||||||||||
Net realized gain (loss) |
(8,490,513 | ) | 4,478,468 | 220,188 | (280,243 | ) | ||||||||||
|
|
|||||||||||||||
Net change in unrealized appreciation (depreciation) on: |
||||||||||||||||
Investments: |
||||||||||||||||
Unaffiliated issuers |
(281,035 | ) | (20,809,475 | ) | (492,570 | ) | (133,773 | ) | ||||||||
Translation of other assets and liabilities denominated in foreign currencies |
117 | 6,754 | 256 | 1,510 | ||||||||||||
Futures contracts |
— | (40,919 | ) | 2,816 | 2,470 | |||||||||||
Forward exchange contracts |
— | — | (515,430 | ) | — | |||||||||||
|
|
|||||||||||||||
Net change in unrealized appreciation (depreciation) |
(280,918 | ) | (20,843,640 | ) | (1,004,928 | ) | (129,793 | ) | ||||||||
|
|
|||||||||||||||
Net realized and unrealized gain (loss) |
(8,771,431 | ) | (16,365,172 | ) | (784,740 | ) | (410,036 | ) | ||||||||
|
|
|||||||||||||||
Net increase (decrease) in net assets resulting from operations |
$(5,798,929 | ) | $(12,653,059 | ) | $ (203,423 | ) | $(125,497 | ) | ||||||||
|
|
|||||||||||||||
aForeign taxes withheld on dividends |
$199,805 | $428,263 | $72,213 | $39,278 | ||||||||||||
|
|
franklintempleton.com |
The accompanying notes are an integral part of these financial statements. | Annual Report |
311 |
FRANKLIN TEMPLETON ETF TRUST
FINANCIAL STATEMENTS
Statements of Operations (continued)
for the year ended March 31, 2023
Franklin FTSE Germany ETF |
Franklin FTSE Hong Kong ETF |
Franklin FTSE India ETF |
Franklin FTSE Italy ETF |
|||||||||||||
|
||||||||||||||||
Investment income: |
||||||||||||||||
Dividends: (net of foreign taxes)a |
||||||||||||||||
Unaffiliated issuers |
$ 456,585 | $ 530,227 | $ 715,520 | $136,695 | ||||||||||||
Interest: |
||||||||||||||||
Unaffiliated issuers |
— | — | — | 37 | ||||||||||||
|
|
|||||||||||||||
Total investment income |
456,585 | 530,227 | 715,520 | 136,732 | ||||||||||||
|
|
|||||||||||||||
Expenses: |
||||||||||||||||
Management fees (Note 3a) |
12,821 | 12,935 | 116,142 | 3,036 | ||||||||||||
Other |
22 | — | — | — | ||||||||||||
|
|
|||||||||||||||
Total expenses |
12,843 | 12,935 | 116,142 | 3,036 | ||||||||||||
|
|
|||||||||||||||
Net investment income |
443,742 | 517,292 | 599,378 | 133,696 | ||||||||||||
|
|
|||||||||||||||
Realized and unrealized gains (losses): |
||||||||||||||||
Net realized gain (loss) from: |
||||||||||||||||
Investments: |
||||||||||||||||
Unaffiliated issuers |
(539,191 | ) | (797,621 | ) | (1,460,849 | ) | (96,290 | ) | ||||||||
In-kind redemptions |
821,012 | 210,305 | — | — | ||||||||||||
Foreign currency transactions |
(43 | ) | (107 | ) | (153,763 | ) | (745 | ) | ||||||||
Futures contracts |
(10,835 | ) | (2,161 | ) | 4,985 | — | ||||||||||
|
|
|||||||||||||||
Net realized gain (loss) |
270,943 | (589,584 | ) | (1,609,627 | ) | (97,035 | ) | |||||||||
|
|
|||||||||||||||
Net change in unrealized appreciation (depreciation) on: |
||||||||||||||||
Investments: |
||||||||||||||||
Unaffiliated issuers |
248,165 | (625,796 | ) | (7,898,915 | ) | 215,951 | ||||||||||
Translation of other assets and liabilities denominated in foreign currencies |
(118 | ) | 35 | 1,138 | 34 | |||||||||||
Futures contracts |
— | 477 | (1,364 | ) | — | |||||||||||
Change in deferred taxes on unrealized appreciation |
— | — | 850,370 | — | ||||||||||||
|
|
|||||||||||||||
Net change in unrealized appreciation (depreciation) |
248,047 | (625,284 | ) | (7,048,771 | ) | 215,985 | ||||||||||
|
|
|||||||||||||||
Net realized and unrealized gain (loss) |
518,990 | (1,214,868 | ) | (8,658,398 | ) | 118,950 | ||||||||||
|
|
|||||||||||||||
Net increase (decrease) in net assets resulting from operations |
$ 962,732 | $ (697,576 | ) | $(8,059,020 | ) | $252,646 | ||||||||||
|
|
|||||||||||||||
aForeign taxes withheld on dividends |
$71,663 | $443 | $219,492 | $23,212 | ||||||||||||
|
|
312 |
Annual Report | The accompanying notes are an integral part of these financial statements. |
franklintempleton.com |
FRANKLIN TEMPLETON ETF TRUST
FINANCIAL STATEMENTS
Statements of Operations (continued)
for the year ended March 31, 2023
Franklin FTSE Japan ETF |
Franklin FTSE Japan Hedged ETF |
Franklin FTSE Latin America ETF |
Franklin FTSE Mexico ETF |
|||||||||||||
|
||||||||||||||||
Investment income: |
||||||||||||||||
Dividends: (net of foreign taxes)a |
||||||||||||||||
Unaffiliated issuers |
$21,871,300 | $ 476,413 | $ 4,057,749 | $ 421,658 | ||||||||||||
Non-cash dividends |
— | — | — | 64,977 | ||||||||||||
Interest from securities loaned (Note 1d): |
||||||||||||||||
Non-Controlled affiliates (Note 3c) |
10,989 | — | — | — | ||||||||||||
|
|
|||||||||||||||
Total investment income |
21,882,289 | 476,413 | 4,057,749 | 486,635 | ||||||||||||
|
|
|||||||||||||||
Expenses: |
||||||||||||||||
Management fees (Note 3a) |
731,006 | 20,638 | 93,144 | 24,713 | ||||||||||||
Other |
323 | 10 | — | — | ||||||||||||
|
|
|||||||||||||||
Total expenses |
731,329 | 20,648 | 93,144 | 24,713 | ||||||||||||
Expenses waived/paid by affiliates (Note 3c) |
(1,696 | ) | (523 | ) | — | — | ||||||||||
|
|
|||||||||||||||
Net expenses |
729,633 | 20,125 | 93,144 | 24,713 | ||||||||||||
|
|
|||||||||||||||
Net investment income |
21,152,656 | 456,288 | 3,964,605 | 461,922 | ||||||||||||
|
|
|||||||||||||||
Realized and unrealized gains (losses): |
||||||||||||||||
Net realized gain (loss) from: |
||||||||||||||||
Investments: |
||||||||||||||||
Unaffiliated issuers |
(10,941,946 | ) | (3,889,020 | ) | (1,454,275 | ) | (225,846 | ) | ||||||||
In-kind redemptions |
6,334,028 | 1,515,186 | — | 462,021 | ||||||||||||
Foreign currency transactions |
(477,798 | ) | (20,515 | ) | (117,101 | ) | (327 | ) | ||||||||
Forward exchange contracts |
— | 2,715,905 | — | — | ||||||||||||
Futures contracts |
354,956 | 4,773 | (99,250 | ) | (1,730 | ) | ||||||||||
|
|
|||||||||||||||
Net realized gain (loss) |
(4,730,760 | ) | 326,329 | (1,670,626 | ) | 234,118 | ||||||||||
|
|
|||||||||||||||
Net change in unrealized appreciation (depreciation) on: |
||||||||||||||||
Investments: |
||||||||||||||||
Unaffiliated issuers |
(55,828,260 | ) | 1,551,360 | 4,569,870 | 1,254,910 | |||||||||||
Translation of other assets and liabilities denominated in foreign currencies |
(54,841 | ) | (1,653 | ) | 6,467 | 107 | ||||||||||
Futures contracts |
14,541 | 832 | (15,889 | ) | — | |||||||||||
Forward exchange contracts |
— | (797,600 | ) | — | — | |||||||||||
|
|
|||||||||||||||
Net change in unrealized appreciation (depreciation) |
(55,868,560 | ) | 752,939 | 4,560,448 | 1,255,017 | |||||||||||
|
|
|||||||||||||||
Net realized and unrealized gain (loss) |
(60,599,320 | ) | 1,079,268 | 2,889,822 | 1,489,135 | |||||||||||
|
|
|||||||||||||||
Net increase (decrease) in net assets resulting from operations |
$(39,446,664 | ) | $ 1,535,556 | $ 6,854,427 | $1,951,057 | |||||||||||
|
|
|||||||||||||||
aForeign taxes withheld on dividends |
$2,426,823 | $52,376 | $242,662 | $33,514 | ||||||||||||
|
|
franklintempleton.com |
The accompanying notes are an integral part of these financial statements. | Annual Report |
313 |
FRANKLIN TEMPLETON ETF TRUST
FINANCIAL STATEMENTS
Statements of Operations (continued)
for the year ended March 31, 2023
Franklin FTSE Saudi Arabia ETF |
Franklin FTSE South Africa ETF |
Franklin FTSE South Korea ETF |
Franklin FTSE Switzerland ETF |
|||||||||||||
|
||||||||||||||||
Investment income: |
||||||||||||||||
Dividends: (net of foreign taxes)a |
||||||||||||||||
Unaffiliated issuers |
$ 282,081 | $ 144,621 | $ 2,548,524 | $ 1,175,893 | ||||||||||||
Non-cash dividends |
— | 24,173 | — | — | ||||||||||||
Interest: |
||||||||||||||||
Unaffiliated issuers |
— | — | 8,463 | — | ||||||||||||
|
|
|||||||||||||||
Total investment income |
282,081 | 168,794 | 2,556,987 | 1,175,893 | ||||||||||||
|
|
|||||||||||||||
Expenses: |
||||||||||||||||
Management fees (Note 3a) |
25,252 | 7,608 | 93,962 | 45,437 | ||||||||||||
Other |
— | — | — | 1,349 | ||||||||||||
|
|
|||||||||||||||
Total expenses |
25,252 | 7,608 | 93,962 | 46,786 | ||||||||||||
Expenses waived/paid by affiliates (Note 3c) |
— | — | (6 | ) | — | |||||||||||
|
|
|||||||||||||||
Net expenses |
25,252 | 7,608 | 93,956 | 46,786 | ||||||||||||
|
|
|||||||||||||||
Net investment income |
256,829 | 161,186 | 2,463,031 | 1,129,107 | ||||||||||||
|
|
|||||||||||||||
Realized and unrealized gains (losses): |
||||||||||||||||
Net realized gain (loss) from: |
||||||||||||||||
Investments: |
||||||||||||||||
Unaffiliated issuers |
(84,402 | ) | (135,018 | ) | (3,827,692 | ) | (799,546 | ) | ||||||||
In-kind redemptions |
— | 182,042 | — | 926,985 | ||||||||||||
Foreign currency transactions |
(5,043 | ) | (2,257 | ) | (156,508 | ) | 4,604 | |||||||||
Forward exchange contracts |
1 | — | — | — | ||||||||||||
Futures contracts |
— | — | 116,088 | (97,288 | ) | |||||||||||
|
|
|||||||||||||||
Net realized gain (loss) |
(89,444 | ) | 44,767 | (3,868,112 | ) | 34,755 | ||||||||||
|
|
|||||||||||||||
Net change in unrealized appreciation (depreciation) on: |
||||||||||||||||
Investments: |
||||||||||||||||
Unaffiliated issuers |
(908,728 | ) | (1,673,931 | ) | (2,418,540 | ) | (3,646,051 | ) | ||||||||
Translation of other assets and liabilities denominated in foreign currencies |
103 | 309 | (29,194 | ) | (180 | ) | ||||||||||
Futures contracts |
— | — | (12,915 | ) | 3,897 | |||||||||||
|
|
|||||||||||||||
Net change in unrealized appreciation (depreciation) |
(908,625 | ) | (1,673,622 | ) | (2,460,649 | ) | (3,642,334 | ) | ||||||||
|
|
|||||||||||||||
Net realized and unrealized gain (loss) |
(998,069 | ) | (1,628,855 | ) | (6,328,761 | ) | (3,607,579 | ) | ||||||||
|
|
|||||||||||||||
Net increase (decrease) in net assets resulting from operations |
$(741,240 | ) | $(1,467,669 | ) | $(3,865,730 | ) | $(2,478,472 | ) | ||||||||
|
|
|||||||||||||||
aForeign taxes withheld on dividends |
$13,410 | $25,219 | $504,329 | $188,331 | ||||||||||||
|
|
314 |
Annual Report | The accompanying notes are an integral part of these financial statements. |
franklintempleton.com |
FRANKLIN TEMPLETON ETF TRUST
FINANCIAL STATEMENTS
Statements of Operations (continued)
for the year ended March 31, 2023
Franklin FTSE Taiwan ETF |
Franklin FTSE United Kingdom ETF |
|||||||
|
||||||||
Investment income: |
| |||||||
Dividends: (net of foreign taxes)a |
| |||||||
Unaffiliated issuers |
$ 1,659,413 | $ 21,250,677 | ||||||
Interest: |
| |||||||
Unaffiliated issuers |
— | 4,351 | ||||||
Interest from securities loaned (Note 1d): |
| |||||||
Unaffiliated issuers (net of fees and rebates) |
— | 19,311 | ||||||
Non-Controlled affiliates (Note 3c) |
— | 7,535 | ||||||
|
|
|||||||
Total investment income |
1,659,413 | 21,281,874 | ||||||
|
|
|||||||
Expenses: |
| |||||||
Management fees (Note 3a) |
84,970 | 457,578 | ||||||
|
|
|||||||
Total expenses |
84,970 | 457,578 | ||||||
Expenses waived/paid by affiliates (Note 3c) |
— | (1,339 | ) | |||||
|
|
|||||||
Net expenses |
84,970 | 456,239 | ||||||
|
|
|||||||
Net investment income |
1,574,443 | 20,825,635 | ||||||
|
|
|||||||
Realized and unrealized gains (losses): |
| |||||||
Net realized gain (loss) from: |
| |||||||
Investments: |
||||||||
Unaffiliated issuers |
(1,909,374 | ) | (11,493,177 | ) | ||||
In-kind redemptions |
— | 3,462,099 | ||||||
Foreign currency transactions |
(76,972 | ) | (570,016 | ) | ||||
Futures contracts |
589 | (107,586 | ) | |||||
|
|
|||||||
Net realized gain (loss) |
(1,985,757 | ) | (8,708,680 | ) | ||||
|
|
|||||||
Net change in unrealized appreciation (depreciation) on: |
| |||||||
Investments: |
| |||||||
Unaffiliated issuers |
(1,986,237 | ) | (35,514,032 | ) | ||||
Translation of other assets and liabilities denominated in foreign currencies |
4,476 | 47,175 | ||||||
Futures contracts |
— | (203,775 | ) | |||||
|
|
|||||||
Net change in unrealized appreciation (depreciation) |
(1,981,761 | ) | (35,670,632 | ) | ||||
|
|
|||||||
Net realized and unrealized gain (loss) |
(3,967,518 | ) | (44,379,312 | ) | ||||
|
|
|||||||
Net increase (decrease) in net assets resulting from operations |
$(2,393,075 | ) | $(23,553,677 | ) | ||||
|
|
|||||||
aForeign taxes withheld on dividends |
$404,157 | $35,421 | ||||||
|
|
franklintempleton.com |
The accompanying notes are an integral part of these financial statements. | Annual Report |
315 |
FRANKLIN TEMPLETON ETF TRUST
FINANCIAL STATEMENTS
Statements of Changes in Net Assets
Franklin FTSE Asia ex Japan ETF | Franklin FTSE Australia ETF | |||||||||||||||
|
|
|||||||||||||||
Year
Ended March 31, 2023 |
Year Ended March 31, 2022 |
Year
Ended March 31, 2023 |
Year
Ended March 31, 2022 |
|||||||||||||
|
||||||||||||||||
Increase (decrease) in net assets: |
||||||||||||||||
Operations: |
||||||||||||||||
Net investment income |
$ 868,301 | $ 664,421 | $ 1,689,308 | $ 1,235,873 | ||||||||||||
Net realized gain (loss) |
(2,158,882 | ) | (979,634 | ) | (237,728 | ) | (464,945 | ) | ||||||||
Net change in unrealized appreciation (depreciation) |
(2,638,071 | ) | (3,275,420 | ) | (4,246,611 | ) | 2,892,489 | |||||||||
|
|
|||||||||||||||
Net increase (decrease) in net assets resulting from operations |
(3,928,652 | ) | (3,590,633 | ) | (2,795,031 | ) | 3,663,417 | |||||||||
|
|
|||||||||||||||
Distributions to shareholders (Note 1f) |
(845,059 | ) | (744,268 | ) | (1,647,793 | ) | (1,262,140 | ) | ||||||||
|
|
|||||||||||||||
Capital share transactions: (Note 2) |
(3,997,011 | ) | 8,769,376 | 3,911,576 | 4,271,838 | |||||||||||
|
|
|||||||||||||||
Net increase (decrease) in net assets |
(8,770,722 | ) | 4,434,475 | (531,248 | ) | 6,673,115 | ||||||||||
Net assets: |
||||||||||||||||
Beginning of year |
38,751,051 | 34,316,576 | 29,968,184 | 23,295,069 | ||||||||||||
|
|
|||||||||||||||
End of year |
$29,980,329 | $38,751,051 | $29,436,936 | $29,968,184 | ||||||||||||
|
|
316 |
Annual Report | The accompanying notes are an integral part of these financial statements. |
franklintempleton.com |
FRANKLIN TEMPLETON ETF TRUST
FINANCIAL STATEMENTS
Statements of Changes in Net Assets (continued)
Franklin FTSE Brazil ETF | Franklin FTSE Canada ETF | |||||||||||||||
|
|
|||||||||||||||
Year
Ended March 31, 2023 |
Year Ended March 31, 2022 |
Year
Ended March 31, 2023 |
Year
Ended March 31, 2022 |
|||||||||||||
|
||||||||||||||||
Increase (decrease) in net assets: |
||||||||||||||||
Operations: |
||||||||||||||||
Net investment income |
$ 35,628,028 | $ 20,729,461 | $ 6,761,710 | $ 725,501 | ||||||||||||
Net realized gain (loss) |
(94,944,037 | ) | (18,881,968 | ) | 3,339,371 | (201,770 | ) | |||||||||
Net change in unrealized appreciation (depreciation) |
(45,250,023 | ) | 69,556,549 | (27,287,099 | ) | 5,384,898 | ||||||||||
|
|
|||||||||||||||
Net increase (decrease) in net assets resulting from operations |
(104,566,032 | ) | 71,404,042 | (17,186,018 | ) | 5,908,629 | ||||||||||
|
|
|||||||||||||||
Distributions to shareholders (Note 1f) |
(37,484,866 | ) | (16,614,538 | ) | (5,031,676 | ) | (639,656 | ) | ||||||||
|
|
|||||||||||||||
Capital share transactions: (Note 2) |
(116,854,829 | ) | 365,373,593 | 258,855,931 | 13,859,588 | |||||||||||
|
|
|||||||||||||||
Net increase (decrease) in net assets |
(258,905,727 | ) | 420,163,097 | 236,638,237 | 19,128,561 | |||||||||||
Net assets: |
||||||||||||||||
Beginning of year |
527,819,503 | 107,656,406 | 43,288,811 | 24,160,250 | ||||||||||||
|
|
|||||||||||||||
End of year |
$268,913,776 | $527,819,503 | $279,927,048 | $43,288,811 | ||||||||||||
|
|
franklintempleton.com |
The accompanying notes are an integral part of these financial statements. | Annual Report |
317 |
FRANKLIN TEMPLETON ETF TRUST
FINANCIAL STATEMENTS
Statements of Changes in Net Assets (continued)
Franklin FTSE China ETF | Franklin FTSE Europe ETF | |||||||||||||||
|
|
|||||||||||||||
Year
Ended March 31, 2023 |
Year Ended March 31, 2022 |
Year
Ended March 31, 2023 |
Year
Ended March 31, 2022 |
|||||||||||||
|
||||||||||||||||
Increase (decrease) in net assets: |
||||||||||||||||
Operations: |
||||||||||||||||
Net investment income |
$ 2,972,502 | $ 2,209,264 | $ 3,712,113 | $ 6,105,734 | ||||||||||||
Net realized gain (loss) |
(8,490,513 | ) | (4,775,014 | ) | 4,478,468 | 26,177,110 | ||||||||||
Net change in unrealized appreciation (depreciation) |
(280,918 | ) | (42,274,445 | ) | (20,843,640 | ) | (24,258,897 | ) | ||||||||
|
|
|||||||||||||||
Net increase (decrease) in net assets resulting from operations |
(5,798,929 | ) | (44,840,195 | ) | (12,653,059 | ) | 8,023,947 | |||||||||
|
|
|||||||||||||||
Distributions to shareholders (Note 1f) |
(2,755,725 | ) | (1,744,579 | ) | (3,354,521 | ) | (7,497,235 | ) | ||||||||
|
|
|||||||||||||||
Capital share transactions: (Note 2) |
11,335,252 | 37,256,442 | (57,291,354 | ) | (44,796,057 | ) | ||||||||||
|
|
|||||||||||||||
Net increase (decrease) in net assets |
2,780,598 | (9,328,332 | ) | (73,298,934 | ) | (44,269,345 | ) | |||||||||
Net assets: |
||||||||||||||||
Beginning of year |
111,453,758 | 120,782,090 | 184,857,082 | 229,126,427 | ||||||||||||
|
|
|||||||||||||||
End of year |
$114,234,356 | $111,453,758 | $111,558,148 | $184,857,082 | ||||||||||||
|
|
318 |
Annual Report | The accompanying notes are an integral part of these financial statements. |
franklintempleton.com |
FRANKLIN TEMPLETON ETF TRUST
FINANCIAL STATEMENTS
Statements of Changes in Net Assets (continued)
Franklin FTSE Europe Hedged ETF | Franklin FTSE France ETF | |||||||||||||||
|
|
|||||||||||||||
Year
Ended March 31, 2023 |
Year Ended March 31, 2022 |
Year
Ended March 31, 2023 |
Year
Ended March 31, 2022 |
|||||||||||||
|
||||||||||||||||
Increase (decrease) in net assets: |
||||||||||||||||
Operations: |
||||||||||||||||
Net investment income |
$ 581,317 | $ 515,076 | $ 284,539 | $ 268,585 | ||||||||||||
Net realized gain (loss) |
220,188 | 758,844 | (280,243 | ) | (84,036 | ) | ||||||||||
Net change in unrealized appreciation (depreciation) |
(1,004,928 | ) | (221,066 | ) | (129,793 | ) | (57,195 | ) | ||||||||
|
|
|||||||||||||||
Net increase (decrease) in net assets resulting from operations |
(203,423 | ) | 1,052,854 | (125,497 | ) | 127,354 | ||||||||||
|
|
|||||||||||||||
Distributions to shareholders (Note 1f) |
(3,158,611 | ) | (666,937 | ) | (227,103 | ) | (270,848 | ) | ||||||||
|
|
|||||||||||||||
Capital share transactions: (Note 2) |
(4,169,747 | ) | 5,879,630 | (3,601,500 | ) | 3,120,862 | ||||||||||
|
|
|||||||||||||||
Net increase (decrease) in net assets |
(7,531,781 | ) | 6,265,547 | (3,954,100 | ) | 2,977,368 | ||||||||||
Net assets: |
||||||||||||||||
Beginning of year |
21,694,673 | 15,429,126 | 10,087,881 | 7,110,513 | ||||||||||||
|
|
|||||||||||||||
End of year |
$14,162,892 | $21,694,673 | $6,133,781 | $10,087,881 | ||||||||||||
|
|
franklintempleton.com |
The accompanying notes are an integral part of these financial statements. | Annual Report |
319 |
FRANKLIN TEMPLETON ETF TRUST
FINANCIAL STATEMENTS
Statements of Changes in Net Assets (continued)
Franklin FTSE Germany ETF | Franklin FTSE Hong Kong ETF | |||||||||||||||
|
|
|||||||||||||||
Year
Ended March 31, 2023 |
Year Ended March 31, 2022 |
Year
Ended March 31, 2023 |
Year
Ended March 31, 2022 |
|||||||||||||
|
||||||||||||||||
Increase (decrease) in net assets: |
||||||||||||||||
Operations: |
||||||||||||||||
Net investment income |
$ 443,742 | $ 423,991 | $ 517,292 | $ 489,122 | ||||||||||||
Net realized gain (loss) |
270,943 | (191,927 | ) | (589,584 | ) | (407,601 | ) | |||||||||
Net change in unrealized appreciation (depreciation) |
248,047 | (2,762,955 | ) | (625,284 | ) | (2,850,341 | ) | |||||||||
|
|
|||||||||||||||
Net increase (decrease) in net assets resulting from operations |
962,732 | (2,530,891 | ) | (697,576 | ) | (2,768,820 | ) | |||||||||
|
|
|||||||||||||||
Distributions to shareholders (Note 1f) |
(449,481 | ) | (404,523 | ) | (536,059 | ) | (478,429 | ) | ||||||||
|
|
|||||||||||||||
Capital share transactions: (Note 2) |
395,253 | 10,617,319 | 729,118 | 3,959,042 | ||||||||||||
|
|
|||||||||||||||
Net increase (decrease) in net assets |
908,504 | 7,681,905 | (504,517 | ) | 711,793 | |||||||||||
Net assets: |
||||||||||||||||
Beginning of year |
16,774,709 | 9,092,804 | 17,573,390 | 16,861,597 | ||||||||||||
|
|
|||||||||||||||
End of year |
$17,683,213 | $16,774,709 | $17,068,873 | $17,573,390 | ||||||||||||
|
|
320 |
Annual Report | The accompanying notes are an integral part of these financial statements. |
franklintempleton.com |
FRANKLIN TEMPLETON ETF TRUST
FINANCIAL STATEMENTS
Statements of Changes in Net Assets (continued)
Franklin FTSE India ETF | Franklin FTSE Italy ETF | |||||||||||||||
|
|
|||||||||||||||
Year Ended March 31, 2023 |
Year Ended March 31, 2022 |
Year Ended March 31, 2023 |
Year Ended March 31, 2022 |
|||||||||||||
|
||||||||||||||||
Increase (decrease) in net assets: |
||||||||||||||||
Operations: |
||||||||||||||||
Net investment income |
$ 599,378 | $ 318,604 | $ 133,696 | $ 127,754 | ||||||||||||
Net realized gain (loss) |
(1,609,627 | ) | (535,539 | ) | (97,035 | ) | (26,481 | ) | ||||||||
Net change in unrealized appreciation (depreciation) |
(7,048,771 | ) | 3,883,589 | 215,985 | (211,281 | ) | ||||||||||
|
|
|||||||||||||||
Net increase (decrease) in net assets resulting from operations |
(8,059,020 | ) | 3,666,654 | 252,646 | (110,008 | ) | ||||||||||
|
|
|||||||||||||||
Distributions to shareholders (Note 1f) |
(445,431 | ) | (1,055,912 | ) | (160,658 | ) | (166,253 | ) | ||||||||
|
|
|||||||||||||||
Capital share transactions: (Note 2) |
57,341,977 | 23,985,026 | 1,248,714 | — | ||||||||||||
|
|
|||||||||||||||
Net increase (decrease) in net assets |
48,837,526 | 26,595,768 | 1,340,702 | (276,261 | ) | |||||||||||
Net assets: |
||||||||||||||||
Beginning of year |
50,139,916 | 23,544,148 | 3,698,112 | 3,974,373 | ||||||||||||
|
|
|||||||||||||||
End of year |
$98,977,442 | $50,139,916 | $5,038,814 | $3,698,112 | ||||||||||||
|
|
franklintempleton.com |
The accompanying notes are an integral part of these financial statements. | Annual Report |
321 |
FRANKLIN TEMPLETON ETF TRUST
FINANCIAL STATEMENTS
Statements of Changes in Net Assets (continued)
Franklin FTSE Japan ETF | Franklin FTSE Japan Hedged ETF | |||||||||||||||
|
|
|||||||||||||||
Year
Ended March 31, 2023 |
Year
Ended March 31, 2022 |
Year
Ended March 31, 2023 |
Year
Ended March 31, 2022 |
|||||||||||||
|
||||||||||||||||
Increase (decrease) in net assets: |
||||||||||||||||
Operations: |
||||||||||||||||
Net investment income |
$ | 21,152,656 | $ | 14,429,061 | $ | 456,288 | $ | 366,040 | ||||||||
Net realized gain (loss) |
(4,730,760 | ) | 12,140,033 | 326,329 | 1,786,855 | |||||||||||
Net change in unrealized appreciation (depreciation) |
(55,868,560 | ) | (89,344,816 | ) | 752,939 | (2,137,629 | ) | |||||||||
|
|
|||||||||||||||
Net increase (decrease) in net assets resulting from operations |
(39,446,664 | ) | (62,775,722 | ) | 1,535,556 | 15,266 | ||||||||||
|
|
|||||||||||||||
Distributions to shareholders (Note 1f) |
(15,080,965 | ) | (15,304,771 | ) | (6,293,059 | ) | (162,493 | ) | ||||||||
|
|
|||||||||||||||
Capital share transactions: (Note 2) |
265,693,564 | 268,783,660 | (6,677,798 | ) | 303,836 | |||||||||||
|
|
|||||||||||||||
Net increase (decrease) in net assets |
211,165,935 | 190,703,167 | (11,435,301 | ) | 156,609 | |||||||||||
Net assets: |
||||||||||||||||
Beginning of year |
789,637,287 | 598,934,120 | 24,719,795 | 24,563,186 | ||||||||||||
|
|
|||||||||||||||
End of year |
$ | 1,000,803,222 | $ | 789,637,287 | $ | 13,284,494 | $ | 24,719,795 | ||||||||
|
|
322 |
Annual Report | The accompanying notes are an integral part of these financial statements. |
franklintempleton.com |
FRANKLIN TEMPLETON ETF TRUST
FINANCIAL STATEMENTS
Statements of Changes in Net Assets (continued)
Franklin FTSE Latin America ETF | Franklin FTSE Mexico ETF | |||||||||||||||
|
|
|||||||||||||||
Year Ended March 31, 2023 |
Year Ended March 31, 2022 |
Year Ended March 31, 2023 |
Year Ended March 31, 2022 |
|||||||||||||
|
||||||||||||||||
Increase (decrease) in net assets: |
||||||||||||||||
Operations: |
||||||||||||||||
Net investment income |
$ | 3,964,605 | $ | 322,765 | $ | 461,922 | $ | 254,422 | ||||||||
Net realized gain (loss) |
(1,670,626 | ) | (234,913 | ) | 234,118 | (158,105 | ) | |||||||||
Net change in unrealized appreciation (depreciation) |
4,560,448 | 1,079,782 | 1,255,017 | 2,181,332 | ||||||||||||
|
|
|||||||||||||||
Net increase (decrease) in net assets resulting from operations |
6,854,427 | 1,167,634 | 1,951,057 | 2,277,649 | ||||||||||||
|
|
|||||||||||||||
Distributions to shareholders (Note 1f) |
(3,573,506 | ) | (304,300 | ) | (447,955 | ) | (302,647 | ) | ||||||||
|
|
|||||||||||||||
Capital share transactions: (Note 2) |
56,516,479 | 2,231,798 | 11,014,721 | 4,861,121 | ||||||||||||
|
|
|||||||||||||||
Net increase (decrease) in net assets |
59,797,400 | 3,095,132 | 12,517,823 | 6,836,123 | ||||||||||||
Net assets: |
||||||||||||||||
Beginning of year |
7,574,832 | 4,479,700 | 12,372,025 | 5,535,902 | ||||||||||||
|
|
|||||||||||||||
End of year |
$ | 67,372,232 | $ | 7,574,832 | $ | 24,889,848 | $ | 12,372,025 | ||||||||
|
|
franklintempleton.com |
The accompanying notes are an integral part of these financial statements. | Annual Report |
323 |
FRANKLIN TEMPLETON ETF TRUST
FINANCIAL STATEMENTS
Statements of Changes in Net Assets (continued)
Franklin FTSE Saudi Arabia ETF | Franklin FTSE South Africa ETF | |||||||||||||||
|
|
|||||||||||||||
Year
Ended March 31, 2023 |
Year
Ended March 31, 2022 |
Year Ended March 31, 2023 |
Year
Ended March 31, 2022 |
|||||||||||||
|
||||||||||||||||
Increase (decrease) in net assets: |
||||||||||||||||
Operations: |
||||||||||||||||
Net investment income |
$ | 256,829 | $ | 62,016 | $ | 161,186 | $ | 141,667 | ||||||||
Net realized gain (loss) |
(89,444 | ) | 42,036 | 44,767 | (81,742 | ) | ||||||||||
Net change in unrealized appreciation (depreciation) |
(908,625 | ) | 1,061,595 | (1,673,622 | ) | 824,250 | ||||||||||
|
|
|||||||||||||||
Net increase (decrease) in net assets resulting from operations |
(741,240 | ) | 1,165,647 | (1,467,669 | ) | 884,175 | ||||||||||
|
|
|||||||||||||||
Distributions to shareholders (Note 1f) |
(78,128 | ) | (68,376 | ) | (191,901 | ) | (111,346 | ) | ||||||||
|
|
|||||||||||||||
Capital share transactions: (Note 2) |
18,562,690 | — | (2,054,548 | ) | 2,562,673 | |||||||||||
|
|
|||||||||||||||
Net increase (decrease) in net assets |
17,743,322 | 1,097,271 | (3,714,118 | ) | 3,335,502 | |||||||||||
Net assets: |
||||||||||||||||
Beginning of year |
4,130,310 | 3,033,039 | 5,957,745 | 2,622,243 | ||||||||||||
|
|
|||||||||||||||
End of year |
$ | 21,873,632 | $ | 4,130,310 | $ | 2,243,627 | $ | 5,957,745 | ||||||||
|
|
324 |
Annual Report | The accompanying notes are an integral part of these financial statements. |
franklintempleton.com |
FRANKLIN TEMPLETON ETF TRUST
FINANCIAL STATEMENTS
Statements of Changes in Net Assets (continued)
Franklin FTSE South Korea ETF | Franklin FTSE Switzerland ETF | |||||||||||||||
|
|
|||||||||||||||
Year
Ended March 31, 2023 |
Year
Ended March 31, 2022 |
Year
Ended March 31, 2023 |
Year
Ended March 31, 2022 |
|||||||||||||
|
||||||||||||||||
Increase (decrease) in net assets: |
||||||||||||||||
Operations: |
||||||||||||||||
Net investment income |
$ | 2,463,031 | $ | 1,268,057 | $ | 1,129,107 | $ | 999,855 | ||||||||
Net realized gain (loss) |
(3,868,112 | ) | (5,450,316 | ) | 34,755 | 3,329,359 | ||||||||||
Net change in unrealized appreciation (depreciation) |
(2,460,649 | ) | (8,014,155 | ) | (3,642,334 | ) | 2,599,949 | |||||||||
|
|
|||||||||||||||
Net increase (decrease) in net assets resulting from operations |
(3,865,730 | ) | (12,196,414 | ) | (2,478,472 | ) | 6,929,163 | |||||||||
|
|
|||||||||||||||
Distributions to shareholders (Note 1f) |
(2,183,845 | ) | (1,354,645 | ) | (1,004,310 | ) | (1,077,037 | ) | ||||||||
|
|
|||||||||||||||
Capital share transactions: (Note 2) |
237,736,926 | 11,946,711 | 5,830,307 | (6,828,650 | ) | |||||||||||
|
|
|||||||||||||||
Net increase (decrease) in net assets |
231,687,351 | (1,604,348 | ) | 2,347,525 | (976,524 | ) | ||||||||||
Net assets: |
||||||||||||||||
Beginning of year |
61,361,442 | 62,965,790 | 47,593,224 | 48,569,748 | ||||||||||||
|
|
|||||||||||||||
End of year |
$ | 293,048,793 | $ | 61,361,442 | $ | 49,940,749 | $ | 47,593,224 | ||||||||
|
|
franklintempleton.com |
The accompanying notes are an integral part of these financial statements. | Annual Report |
325 |
FRANKLIN TEMPLETON ETF TRUST
FINANCIAL STATEMENTS
Statements of Changes in Net Assets (continued)
Franklin FTSE Taiwan ETF | Franklin FTSE United Kingdom ETF | |||||||||||||||
|
|
|||||||||||||||
Year
Ended March 31, 2023 |
Year
Ended March 31, 2022 |
Year
Ended March 31, 2023 |
Year
Ended March 31, 2022 |
|||||||||||||
|
||||||||||||||||
Increase (decrease) in net assets: |
||||||||||||||||
Operations: |
||||||||||||||||
Net investment income |
$ | 1,574,443 | $ | 990,911 | $ | 20,825,635 | $ | 15,398,911 | ||||||||
Net realized gain (loss) |
(1,985,757 | ) | (550,668 | ) | (8,708,680 | ) | (202,105 | ) | ||||||||
Net change in unrealized appreciation (depreciation) |
(1,981,761 | ) | 2,783,522 | (35,670,632 | ) | 8,007,752 | ||||||||||
|
|
|||||||||||||||
Net increase (decrease) in net assets resulting from operations |
(2,393,075 | ) | 3,223,765 | (23,553,677 | ) | 23,204,558 | ||||||||||
|
|
|||||||||||||||
Distributions to shareholders (Note 1f) |
(1,549,538 | ) | (1,073,757 | ) | (20,583,824 | ) | (11,671,197 | ) | ||||||||
|
|
|||||||||||||||
Capital share transactions: (Note 2) |
97,369,890 | 8,619,703 | (474,084 | ) | 396,366,561 | |||||||||||
|
|
|||||||||||||||
Net increase (decrease) in net assets |
93,427,277 | 10,769,711 | (44,611,585 | ) | 407,899,922 | |||||||||||
Net assets: |
||||||||||||||||
Beginning of year |
43,666,550 | 32,896,839 | 613,572,500 | 205,672,578 | ||||||||||||
|
|
|||||||||||||||
End of year |
$ | 137,093,827 | $ | 43,666,550 | $ | 568,960,915 | $ | 613,572,500 | ||||||||
|
|
326 |
Annual Report | The accompanying notes are an integral part of these financial statements. |
franklintempleton.com |
FRANKLIN TEMPLETON ETF TRUST
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”).
franklintempleton.com |
Annual Report |
327 |
FRANKLIN TEMPLETON ETF TRUST
NOTES TO FINANCIAL STATEMENTS
1. Organization and Significant Accounting Policies (continued)
a. Financial Instrument Valuation (continued)
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
328 | Annual Report | franklintempleton.com |
FRANKLIN TEMPLETON ETF TRUST
NOTES TO FINANCIAL STATEMENTS
1. Organization and Significant Accounting Policies (continued)
c. Derivative Financial Instruments (continued)
with the applicable counterparty exceeds the minimum transfer amount, which typically ranges from $100,000 to $250,000, and can vary depending on the counterparty and the type of agreement. Generally, collateral is determined at the close of Fund business each day and any additional collateral required due to changes in derivative values may be delivered by the Fund or the counterparty the next business day, or within a few business days. Collateral pledged and/or received by the Fund, if any, is held in segregated accounts with the Fund’s custodian/counterparty broker and can be in the form of cash and/or securities. Unrestricted cash may be invested according to the Funds’ investment objectives. To the extent that the amounts due to the Fund from its counterparties are not subject to collateralization or are not fully collateralized, the Fund bears the risk of loss from counterparty non-performance.
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.
franklintempleton.com |
Annual Report |
329 |
FRANKLIN TEMPLETON ETF TRUST
NOTES TO FINANCIAL STATEMENTS
1. Organization and Significant Accounting Policies (continued)
e. Income and Deferred Taxes (continued)
As a result of several court cases, in certain countries across the European Union the Fund filed additional tax reclaims for previously withheld taxes on dividends earned in those countries (EU reclaims). Income recognized, if any, for EU reclaims is reflected as European Union tax reclaims in the Statement of Operations and any related receivable is reflected as European Union tax reclaims receivable in the Statement of Assets and Liabilities. Any fees associated with these filings are reflected as European Union tax reclaim contingent fees in the Statement of Operations. When uncertainty exists as to the ultimate resolution of these proceedings, the likelihood of receipt of these EU reclaims, and the potential timing of payment, no amounts are reflected in the financial statements. For U.S. income tax purposes, EU reclaims received by the Fund, if any, reduce the amount of foreign taxes Fund shareholders can use as tax deductions or credits on their income tax returns.
f. Security Transactions, Investment Income, Expenses and Distributions
Security transactions are accounted for on trade date. Realized gains and losses on security transactions are determined on a specific identification basis. Interest Income and estimated expenses are accrued daily. Dividend income is recorded on the ex-dividend date except for certain dividends from securities where the dividend rate is not available. In such cases, the dividend is recorded as soon as the information is received by the Funds. Distributions to shareholders are recorded on the ex-dividend date. Distributable earnings are determined according to income tax regulations (tax basis) and may differ from earnings recorded in accordance with U.S. GAAP. These differences
may be permanent or temporary. Permanent differences are reclassified among capital accounts to reflect their tax character. These reclassifications have no impact on net assets or the results of operations. Temporary differences are not reclassified, as they may reverse in subsequent periods.
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.
330 | Annual Report | franklintempleton.com |
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 | ||||||||||||||
|
|
franklintempleton.com |
Annual Report |
331 |
FRANKLIN TEMPLETON ETF TRUST
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 | ||||||||||||||
|
|
332 | Annual Report | franklintempleton.com |
FRANKLIN TEMPLETON ETF TRUST
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 | ||||||||||||
|
|
franklintempleton.com |
Annual Report |
333 |
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 | ||||||||||||||
|
|
334 | Annual Report | franklintempleton.com |
FRANKLIN TEMPLETON ETF TRUST
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 |
franklintempleton.com |
Annual Report |
335 |
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.
336 | Annual Report | franklintempleton.com |
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 |
$ | 6,825 | $ | 48,550 | $ | (55,375 | ) | $ — | $ — | $ | — | — | $ 10 | |||||||||||||||||||||
|
|
|||||||||||||||||||||||||||||||||
Franklin FTSE China ETF Non-Controlled Affiliates |
Income from Securities loaned |
| ||||||||||||||||||||||||||||||||
|
|
|||||||||||||||||||||||||||||||||
Institutional
Fiduciary Trust |
$ | 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 |
$ | — | $ | 4,136 | $ | — | $ — | $ — | $ | 4,136 | 4,136 | $ — | ||||||||||||||||||||||
|
|
|||||||||||||||||||||||||||||||||
Franklin FTSE Japan ETF Non-Controlled Affiliates |
Income from Securities loaned |
| ||||||||||||||||||||||||||||||||
|
|
|||||||||||||||||||||||||||||||||
Institutional
Fiduciary Trust |
$ | 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 |
$ | 695,758 | $ | 9,497,074 | $ | (10,192,111 | ) | $ — | $ — | $ | 721 | 721 | $ — | |||||||||||||||||||||
|
|
franklintempleton.com |
Annual Report |
337 |
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 Asia ex Japan |
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 | ||||||||
|
|
338 | Annual Report | franklintempleton.com |
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 | ||||||||||||
|
|
franklintempleton.com |
Annual Report |
339 |
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 |
||||
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 | ||||||
|
|
340 | Annual Report | franklintempleton.com |
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 | ||||||
|
|
franklintempleton.com |
Annual Report |
341 |
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 | ||||||||
|
|
342 | Annual Report | franklintempleton.com |
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 | ||||||||
|
|
franklintempleton.com |
Annual Report |
343 |
FRANKLIN TEMPLETON ETF TRUST
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 |
344 | Annual Report | franklintempleton.com |
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 |
|||||||||||||||
|
||||||||||||||||
Cost of Securities Received |
$ | — | $ | 164,931,197 |
franklintempleton.com |
Annual Report |
345 |
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:
346 | Annual Report | franklintempleton.com |
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 |
$ | — | ||||||
|
|
|
|
franklintempleton.com |
Annual Report |
347 |
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 |
|||||||||||
Equity contracts |
Futures contracts |
$ | (41,334 | ) |
Futures contracts |
$ | — | |||||
|
|
|
|
|||||||||
Franklin FTSE Australia ETF | ||||||||||||
Net realized gain (loss) from: |
Net
change in unrealized |
|||||||||||
Equity contracts |
Futures contracts |
$ | 4,705 |
Futures contracts |
$ | 865 | ||||||
|
|
|
|
|||||||||
Franklin FTSE Brazil ETF | ||||||||||||
Net realized gain (loss) from: |
Net
change in unrealized |
|||||||||||
Equity contracts |
Futures contracts |
$ | (2,139,014 | ) |
Futures contracts |
$ | (313,611 | ) | ||||
|
|
|
|
|||||||||
Franklin FTSE Canada ETF | ||||||||||||
Net realized gain (loss) from: |
Net
change in unrealized |
|||||||||||
Equity contracts |
Futures contracts |
$ | (32,397 | ) |
Futures contracts |
$ | 13,181 | |||||
|
|
|
|
|||||||||
Franklin FTSE China ETF | ||||||||||||
Net realized gain (loss) from: |
Net
change in unrealized |
|||||||||||
Equity contracts |
Futures contracts |
$ | (282,944 | ) |
Futures contracts |
$ | — | |||||
|
|
|
|
|||||||||
Franklin FTSE Europe ETF | ||||||||||||
Net realized gain (loss) from: |
Net
change in unrealized |
|||||||||||
Equity contracts |
Futures contracts |
$ | 35,645 |
Futures contracts |
$ | (40,919 | ) | |||||
|
|
|
|
|||||||||
Franklin FTSE Europe Hedged ETF | ||||||||||||
Net realized gain (loss) from: |
Net
change in unrealized |
|||||||||||
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 |
|||||||||||
Equity contracts |
Futures contracts |
$ | (3,299 | ) |
Futures contracts |
$ | 2,470 | |||||
|
|
|
|
|||||||||
Franklin FTSE Germany ETF | ||||||||||||
Net realized gain (loss) from: |
Net
change in unrealized |
|||||||||||
Equity contracts |
Futures contracts |
$ | (10,835 | ) |
Futures contracts |
$ | — | |||||
|
|
|
|
|||||||||
Franklin FTSE Hong Kong ETF | ||||||||||||
Net realized gain (loss) from: |
Net
change in unrealized |
|||||||||||
Equity contracts |
Futures contracts |
$ | (2,161 | ) |
Futures contracts |
$ | 477 | |||||
|
|
|
|
348 | Annual Report | franklintempleton.com |
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 | ) | ||||
|
|
|
|
franklintempleton.com |
Annual Report |
349 |
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 |
350 | Annual Report | franklintempleton.com |
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.
franklintempleton.com |
Annual Report |
351 |
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 |
352 | Annual Report | franklintempleton.com |
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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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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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
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 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 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 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 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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FRANKLIN TEMPLETON ETF TRUST
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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FRANKLIN TEMPLETON ETF TRUST
Interested Board Members and Officers
Name, Year of Birth and Address |
Position |
Length of Time Served |
Number of
Portfolios in Fund Complex Overseen by Board Member* |
Other
Directorships Held During at Least the Past 5 Years | ||||
**Jennifer M. Johnson (1964) One Franklin Parkway San Mateo, CA 94403-1906 |
Trustee and Chairperson of the Board | Since 2016 | 70 | None | ||||
Principal Occupation During at Least the Past 5 Years: | ||||||||
Chief Executive Officer, President and Director, Franklin Resources, Inc.; officer and/or director or trustee, of some of the other subsidiaries of Franklin Resources, Inc. and of certain funds in the Franklin Templeton/Legg Mason fund complex; and formerly, Chief Operating Officer and Executive Vice President, Franklin Resources, Inc. (1994-2015); Executive Vice President of Operations and Technology, Franklin Resources, Inc. (2005-2010); and Senior Vice President, Franklin Resources, Inc. (2003-2005). | ||||||||
Alison E. Baur (1964) One Franklin Parkway San Mateo, CA 94403-1906 |
Vice President | Since 2016 | Not Applicable | Not Applicable | ||||
Principal Occupation During at Least the Past 5 Years: | ||||||||
Deputy General Counsel, Franklin Templeton; and officer of some of the other subsidiaries of Franklin Resources, Inc. and of certain funds in the Franklin Templeton/Legg Mason fund complex. | ||||||||
Steven J. Gray (1955) One Franklin Parkway San Mateo, CA 94403-1906 |
Vice President | Since 2016 | Not Applicable | Not Applicable | ||||
Principal Occupation During at Least the Past 5 Years: | ||||||||
Senior Associate General Counsel, Franklin Templeton; Assistant Secretary, Franklin Distributors, LLC; and officer of certain funds in the Franklin Templeton/Legg Mason fund complex. | ||||||||
Matthew T. Hinkle (1971) One Franklin Parkway San Mateo, CA 94403-1906 |
Chief Executive Officer –Finance and Administration | Since 2017 | Not Applicable | Not Applicable | ||||
Principal Occupation During at Least the Past 5 Years: | ||||||||
Senior Vice President, Franklin Templeton Services, LLC; officer of certain funds in the Franklin Templeton/Legg Mason fund complex; and formerly, Vice President, Global Tax (2012-April 2017) and Treasurer/Assistant Treasurer, Franklin Templeton (2009-2017). | ||||||||
Fred Jensen (1963) 620 Eighth Avenue, 47th Floor New York, NY 10018 |
Chief Compliance Officer | Since 2021 | Not Applicable | Not Applicable | ||||
Principal Occupation During at Least the Past 5 Years: | ||||||||
Director - Global Compliance of Franklin Templeton; Managing Director of Legg Mason & Co.; Director of Compliance, Legg Mason Office of the Chief Compliance Officer; Chief Compliance Officer, Franklin Advisory Services, LLC; Compliance Officer, Franklin Advisers, Inc.; officer of certain funds in the Franklin Templeton/Legg Mason fund complex; formerly, Chief Compliance Officer of Legg Mason Global Asset Allocation; Chief Compliance Officer, Legg Mason Private Portfolio; Chief Compliance Officer to The Reserves Funds (investment adviser, funds and broker-dealer) and Ambac Financial Group (investment adviser, funds and broker-dealer). | ||||||||
Susan Kerr (1949) 620 Eighth Avenue New York, NY 10018 |
Vice President - AML Compliance | Since 2021 | Not Applicable | Not Applicable | ||||
Principal Occupation During at Least the Past 5 Years: | ||||||||
Senior Compliance Analyst, Franklin Templeton; Chief Anti-Money Laundering Compliance Officer, Legg Mason & Co., or its affiliates; Anti Money Laundering Compliance Officer; Senior Compliance Officer, LMIS; and officer of certain funds in the Franklin Templeton/Legg Mason fund complex. | ||||||||
Todd Mathias (1983) One Franklin Parkway, San Mateo, Ca 94403-1906 |
Vice President | Since March 2022 | Not Applicable | Not Applicable | ||||
Principal Occupation During at Least the Past 5 Years: | ||||||||
Head of US ETF Product Strategy, Franklin Templeton; and officer of certain funds in the Franklin Templeton/Legg Mason fund complex. |
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Interested Board Members and Officers (continued)
Name, Year of Birth and Address |
Position |
Length of Time Served |
Number of
Portfolios in Fund Complex Overseen by Board Member* |
Other
Directorships Held During at Least the Past 5 Years | ||||
Patrick O’Connor (1967) One Franklin Parkway San Mateo, CA 94403-1906 |
President and Chief Executive Officer – Investment Management | Since 2016 | Not Applicable | Not Applicable | ||||
Principal Occupation During at Least the Past 5 Years: | ||||||||
President and Chief Investment Officer, Franklin Advisory Services, LLC; Senior Vice President, Franklin Advisers, Inc.; and officer of certain funds in the Franklin Templeton/Legg Mason fund complex. | ||||||||
Vivek Pai (1970) 300 S.E. 2nd Street Fort Lauderdale, FL 33301-1923 |
Treasurer, Chief Financial Officer and Chief Accounting Officer | Since 2019 | Not Applicable | Not Applicable | ||||
Principal Occupation During at Least the Past 5 Years: | ||||||||
Treasurer, U.S. Fund Administration & Reporting and officer of certain funds in the Franklin Templeton/Legg Mason fund complex. | ||||||||
Navid J. Tofigh (1972) One Franklin Parkway, San Mateo, Ca 94403-1906 |
Vice President and Secretary | Since 2015 | Not Applicable | Not Applicable | ||||
Principal Occupation During at Least the Past 5 Years: | ||||||||
Senior Associate General Counsel, Franklin Templeton; and officer of certain funds in the Franklin Templeton/Legg Mason fund complex. | ||||||||
Lori A. Weber (1964) 300 S.E. 2nd Street Fort Lauderdale, FL 33301-1923 |
Vice President and Secretary | Vice President since 2011 and Secretary since 2013 | Not Applicable | Not Applicable | ||||
Principal Occupation During at Least the Past 5 Years: | ||||||||
Senior Associate General Counsel, Franklin Templeton; Assistant Secretary, Franklin Resources, Inc.; Vice President and Secretary, Templeton Investment Counsel, LLC; and officer of certain funds in the Franklin Templeton/Legg Mason fund complex. |
*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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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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Investment Manager | Distributor | Investor Services | ||||
Franklin Advisory | Franklin Distributors, LLC | Transfer Agent | ||||
Services, LLC | (800) DIAL BEN®/342-5236 | State Street Bank and | ||||
franklintempleton.com | Trust Company | |||||
1 HeritageDrive | ||||||
Mail Stop OHD0100 | ||||||
North Quincy, MA 02171 | ||||||
© 2023 Franklin Templeton Investments. All rights reserved. | ETF5 A 05/23 |