FRANKLIN TEMPLETON ETF TRUST

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.

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

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

Your Fund’s Goal and Main Investments

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


Top 10 Sectors/Industries

3/31/23

	% of Total Net Assets


Banks		11.4%


Semiconductors & Semiconductor Equipment		10.0%


Interactive Media & Services		6.4%


Technology Hardware, Storage & Peripherals		5.8%


Insurance		4.4%


Oil, Gas & Consumable Fuels		3.8%


Internet & Direct Marketing Retail		3.5%


Hotels, Restaurants & Leisure		3.4%


Real Estate Management & Development		3.4%


Electronic Equipment, Instruments & Components		3.3%

Performance Overview

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

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

Investment Strategy

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

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

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.


Top 10 Holdings

3/31/23

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


Taiwan Semiconductor Manufacturing Co. Ltd. Semiconductors & Semiconductor Equipment, Taiwan		6.7%


Tencent Holdings Ltd. Interactive Media & Services, China		4.7%


Samsung Electronics Co. Ltd. Technology Hardware, Storage & Peripherals, South Korea		4.3%


Alibaba Group Holding Ltd., Class A Internet & Direct Marketing Retail, China		3.0%


AIA Group Ltd. Insurance, Hong Kong		2.0%


Reliance Industries Ltd. Oil, Gas & Consumable Fuels, India		1.5%


Meituan, Class B Hotels, Restaurants & Leisure, China		1.4%


Infosys Ltd. IT Services, India		1.0%


China Construction Bank Corp., Class H Banks, China		1.0%


Housing Development Finance Corp. Ltd. Financial Services, India		0.9%


Top 10 Countries

3/31/23

	% of Total Net Assets


China		35.4%


Taiwan		16.4%


India		15.8%


South Korea		13.1%


Hong Kong		7.4%


Singapore		3.6%


Thailand		2.6%


Indonesia		2.3%


Malaysia		1.8%


Philippines		0.9%

Manager’s Discussion

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

CFA^® is a trademark owned by CFA Institute.

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

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

Dina Ting, CFA

Hailey Harris

Joe Diederich

Basit Amin, CFA

Portfolio Management Team

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

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.

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.

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.

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.

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.

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.

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.

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.

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

Your Fund’s Goal and Main Investments

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


Top 10 Sectors/Industries

3/31/23

		% of Total Net Assets

Metals & Mining		23.5%

Banks		20.9%

Biotechnology		7.1%

Oil, Gas & Consumable Fuels		6.3%

Consumer Staples Distribution & Retail		4.2%

Capital Markets		4.1%

Diversified REITs		3.4%

Insurance		3.3%

Broadline Retail		3.0%

Transportation Infrastructure		3.0%

Performance Overview

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

Investment Strategy

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

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

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.


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

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.

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.

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

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

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

Your Fund’s Goal and Main Investments

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


Top 10 Sectors/Industries

3/31/23

		% of Total Net Assets

Metals & Mining		20.5%

Banks		16.6%

Oil, Gas & Consumable Fuels		15.7%

Electric Utilities		8.2%

Capital Markets		4.7%

Ground Transportation		3.9%

Beverages		3.4%

Machinery		3.3%

Consumer Staples Distribution & Retail		2.9%

Food Products		2.4%

Performance Overview

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


Top 10 Holdings

3/31/23

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

Vale SA Metals & Mining, Brazil		17.2%

Petroleo Brasileiro SA, 43.945%, pfd. Oil, Gas & Consumable Fuels, Brazil		12.6%

Itau Unibanco Holding SA, 4.349%, pfd. Banks, Brazil		7.1%

Banco Bradesco SA, 6.492%, pfd. Banks, Brazil		4.8%

B3 SA - Brasil Bolsa Balcao Capital Markets, Brazil		3.5%

Ambev SA Beverages, Brazil		3.5%

WEG SA Machinery, Brazil		3.3%

Centrais Eletricas Brasileiras SA Electric Utilities, Brazil		2.4%

Itausa SA, 4.745%, pfd. Banks, Brazil		2.4%

Localiza Rent a Car SA Ground Transportation, Brazil		2.3%

Investment Strategy

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

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

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.

(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

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.

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.

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

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

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.

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

Your Fund’s Goal and Main Investments

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


Top 10 Sectors/Industries

3/31/23

		% of Total Net Assets

Banks		27.1%

Oil, Gas & Consumable Fuels		18.0%

Ground Transportation		9.1%

Insurance		7.8%

Metals & Mining		7.8%

IT Services		4.8%

Consumer Staples Distribution & Retail		4.8%

Capital Markets		3.5%

Chemicals		2.5%

Software		2.3%

Performance Overview

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

Investment Strategy

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

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

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.


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

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.

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.

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

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

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

Your Fund’s Goal and Main Investments

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


Top 10 Sectors/Industries

3/31/23

		% of Total Net Assets

Interactive Media & Services		16.0%

Internet & Direct Marketing Retail		9.9%

Banks		9.8%

Hotels, Restaurants & Leisure		7.0%

Automobiles		3.9%

Insurance		3.8%

Beverages		3.5%

Real Estate Management & Development		3.3%

Oil, Gas & Consumable Fuels		2.8%

Broadline Retail		2.6%

Performance Overview

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

Investment Strategy

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

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

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.


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

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.

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.

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

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

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

Your Fund’s Goal and Main Investments

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


Top 10 Sectors/Industries

3/31/23

		% of Total Net Assets

Pharmaceuticals		11.1%

Banks		7.6%

Oil, Gas & Consumable Fuels		5.5%

Textiles, Apparel & Luxury Goods		5.4%

Insurance		5.2%

Food Products		4.4%

Semiconductors & Semiconductor Equipment		3.8%

Chemicals		3.3%

Machinery		3.0%

Beverages		2.7%

Performance Overview

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

Investment Strategy

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

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

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.


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

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.

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.

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

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

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.

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.

Performance Overview

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

Investment Strategy

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

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


Top 10 Holdings

3/31/23

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

Nestle SA Food Products, Switzerland		3.2%

ASML Holding NV Semiconductors & Semiconductor Equipment, Netherlands		2.6%

Novo Nordisk AS, Class B Pharmaceuticals, Denmark		2.4%

LVMH Moet Hennessy Louis Vuitton SE Textiles, Apparel & Luxury Goods, France		2.2%

AstraZeneca PLC Pharmaceuticals, United Kingdom		2.0%

Roche Holding AG Pharmaceuticals, Switzerland		2.0%

Shell PLC Oil, Gas & Consumable Fuels, Netherlands		1.9%

Novartis AG Pharmaceuticals, Switzerland		1.8%

SAP SE Software, Germany		1.4%

HSBC Holdings PLC Banks, United Kingdom		1.3%

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

Manager’s Discussion


Top 10 Countries

3/31/23

		% of Total Net Assets

United Kingdom		19.2%

France		17.3%

Switzerland		14.5%

Germany		12.8%

Netherlands		9.0%

Sweden		4.9%

Denmark		4.4%

Spain		3.9%

Italy		3.4%

Finland		1.9%

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

Dina Ting, CFA

Hailey Harris

Joe Diederich

Basit Amin, CFA

Portfolio Management Team

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.

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.

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.

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

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

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

Your Fund’s Goal and Main Investments

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


Top 10 Sectors/Industries

3/31/23

		% of Total Net Assets

Textiles, Apparel & Luxury Goods		20.8%

Aerospace & Defense		7.8%

Oil, Gas & Consumable Fuels		7.2%

Pharmaceuticals		6.5%

Electrical Equipment		6.1%

Personal Products		5.9%

Banks		5.2%

Chemicals		4.9%

Construction & Engineering		3.8%

Insurance		3.2%

Performance Overview

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

Investment Strategy

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

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

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.


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

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.

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.

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

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

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

Your Fund’s Goal and Main Investments

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


Top 10 Sectors/Industries

3/31/23

		% of Total Net Assets

Insurance		11.6%

Software		10.7%

Automobiles		10.3%

Industrial Conglomerates		10.0%

Pharmaceuticals		6.5%

Diversified Telecommunication Services		6.4%

Chemicals		6.2%

Capital Markets		4.3%

Multi-Utilities		4.1%

Semiconductors & Semiconductor Equipment		4.0%

Performance Overview

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

Investment Strategy

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

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

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.


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

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.

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.

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

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

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

Your Fund’s Goal and Main Investments

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


Top 10 Sectors/Industries

3/31/23

		% of Total Net Assets

Real Estate Management & Development		21.9%

Insurance		19.7%

Capital Markets		12.9%

Hotels, Restaurants & Leisure		7.0%

Banks		5.3%

Electric Utilities		5.1%

Diversified REITs		3.9%

Household Durables		3.8%

Industrial Conglomerates		2.5%

Gas Utilities		2.2%

Performance Overview

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

Investment Strategy

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

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

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.


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

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.

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.

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

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

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

Your Fund’s Goal and Main Investments

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


Top 10 Sectors/Industries

3/31/23

		% of Total Net Assets

IT Services		14.5%

Oil, Gas & Consumable Fuels		12.0%

Banks		7.5%

Financial Services		7.2%

Automobiles		5.3%

Chemicals		4.6%

Metals & Mining		3.9%

Pharmaceuticals		3.9%

Construction Materials		3.0%

Consumer Finance		3.0%

Performance Overview

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

Investment Strategy

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

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

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.


Top 10 Holdings

3/31/23

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

Reliance Industries Ltd. Oil, Gas & Consumable Fuels, India		9.4%

Infosys Ltd. IT Services, India		6.3%

Housing Development Finance Corp. Ltd. Financial Services, India		5.7%

Tata Consultancy Services Ltd. IT Services, India		4.0%

Hindustan Unilever Ltd. Household Products, India		2.8%

Axis Bank Ltd. Banks, India		2.4%

Bharti Airtel Ltd. Wireless Telecommunication Services, India		2.2%

Larsen & Toubro Ltd. Construction & Engineering, India		1.8%

ICICI Bank Ltd. Banks, India		1.7%

Bajaj Finance Ltd. Consumer Finance, India		1.6%

Manager’s Discussion

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

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

Dina Ting, CFA

Hailey Harris

Joe Diederich

Basit Amin, CFA

Portfolio Management Team

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.

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

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

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.

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.


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

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.

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.

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

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



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


Franklin FTSE Mexico ETF		94

Franklin FTSE Saudi Arabia ETF		100

Franklin FTSE South Africa ETF		106

Franklin FTSE South Korea ETF		112

Franklin FTSE Switzerland ETF		118

Franklin FTSE Taiwan ETF		124

Franklin FTSE United Kingdom ETF		130

Financial Highlights and Schedules of Investments		136

Financial Statements		304

Notes to Financial Statements		327

Report of Independent Registered Public Accounting Firm		356

Tax Information		357

Board Members and Officers		359

Shareholder Information		362


Distributions (4/1/22–3/31/23)

Net Investment
Income

$0.587567


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

Beginning Account Value 10/1/22	Ending Account Value 3/31/23		Expenses Paid During Period 10/1/22–3/31/23¹		Ending Account Value 3/31/23		Expenses Paid During Period 10/1/22–3/31/23¹		Net Annualized Expense Ratio

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


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

Beginning Account Value 10/1/22		Ending Account Value 3/31/23		Expenses Paid During Period 10/1/22–3/31/23¹		Ending Account Value 3/31/23		Expenses Paid During Period 10/1/22–3/31/23¹		Net Annualized Expense Ratio

	$1,000.00		$1,175.80		$0.49		$1,024.48		$0.45		0.09	%


		ANNUAL REPORT
		FRANKLIN TEMPLETON ETF TRUST March 31, 2023



Contents

Annual Report

Economic and Market Overview			2

Franklin FTSE Asia ex Japan ETF			3

Franklin FTSE Australia ETF			9

Franklin FTSE Brazil ETF			15

Franklin FTSE Canada ETF			21

Franklin FTSE China ETF			27

Franklin FTSE Europe ETF			33

Franklin FTSE Europe Hedged ETF			39

Franklin FTSE France ETF			46

Franklin FTSE Germany ETF			52

Franklin FTSE Hong Kong ETF			58

Franklin FTSE India ETF			64

Franklin FTSE Italy ETF			70

Franklin FTSE Japan ETF			76

Franklin FTSE Japan Hedged ETF			82

Franklin FTSE Latin America ETF			88


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



Not FDIC Insured	\|	May Lose Value	\|	No Bank Guarantee



	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%


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

Beginning Account Value 10/1/22		Ending Account Value 3/31/23		Expenses Paid During Period 10/1/22–3/31/23^1,2		Ending Account Value 3/31/23		Expenses Paid During Period 10/1/22–3/31/23^1,2		Net Annualized Expense Ratio²

	$1,000.00		$1,325.50		$1.68		$1,023.49		$1.46		0.29	%


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


Distributions (4/1/22–3/31/23)

Net Investment Income

$0.794457


Total Annual Operating Expenses⁶


0.19%