FRANKLIN TEMPLETON ETF TRUST

Semiannual Report

Franklin Templeton ETF Trust

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Distributor

Investor Services

Franklin Advisory Services, LLC

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USPX S 11/22

SEMIANNUAL REPORT

FRANKLIN U.S. EQUITY

INDEX ETF

Formerly, Franklin LibertyQ Global Equity ETF

A Series of Franklin Templeton ETF Trust

September 30, 2022

LOGO



Contents

Semiannual Report

Franklin U.S. Equity Index ETF			2
Performance Summary			5
Your Fund’s Expenses			7
Financial Highlights and Schedules of Investments			8
Financial Statements			22
Notes to Financial Statements			25
Shareholder Information			33

Visit franklintempleton.com for fund

updates and documents, or to find helpful

financial planning tools.


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



franklintempleton.com	Semiannual Report	1

SEMIANNUAL REPORT

Franklin U.S. Equity Index ETF

Formerly, Franklin LibertyQ Global Equity ETF

This semiannual report for Franklin U.S. Equity Index ETF covers the period ended September 30, 2022. Effective August 1, 2022, Franklin LibertyQ Global Equity ETF changed its name to Franklin U.S. Equity Index ETF. The Fund also changed its ticker symbol, underlying index, distribution frequency, investment goal and strategy and reduced its unified management fee.

Your Fund’s Goal and Main Investments

The Fund seeks to provide investment results that closely correspond, before fees and expenses, to the performance of the Morningstar^® US Target Market Exposure Index (the Underlying Index).¹ Under normal market conditions, the Fund invests at least 80% of its assets in the component securities of the Underlying Index. The Underlying Index includes large- and mid-capitalization stocks representing the top 85% of the U.S. equity market by float-adjusted market capitalization (“float-adjusted” means that only shares that are estimated to be publicly available to investors are included in the calculation of market capitalization).

Performance Overview

During the six-month period, the Fund posted cumulative total returns of -20.60% based on market price and -20.82% based on net asset value (NAV).

On August 1, 2022, the Fund changed its underlying index from the LibertyQ Global Equity Index-NR to the Underlying Index, which also became the Fund’s primary benchmark at that time. For the six-month period, the Underlying Index posted a cumulative total return of -20.76%.² The Blended Morningstar^® US Target Market Exposure Index, which measures the performance of the previous underlying index through July 31, 2022, followed by the performance of the Underlying Index thereafter, posted a -20.79% cumulative total return for the same period.²

The Fund’s former primary benchmark, the MSCI All Country World Index (ACWI)-NR posted a -21.41% cumulative total return for the six-month period.³ The Underlying Index

replaced the MSCI ACWI-NR as the Fund’s primary benchmark effective August 1, 2022 to more accurately reflect the Fund’s new investment strategy.

You can find more of the Fund’s performance data in the Performance Summary beginning on page 5.

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

Economic and Market Overview

U.S. equities, as measured by the Standard & Poor’s^® 500 Index, posted a -20.20% total return for the six months ended September 30, 2022.³ High inflation, rising interest rates and geopolitical instability contributed to a sharp decline in equity prices, particularly as the period progressed. Although consumer spending continued to rise, deteriorating financial conditions negatively impacted consumer sentiment, which improved slightly at the end of the period after falling in June 2022 to the lowest level in over 60 years.

Elevated inflation was a major concern for both consumers and investors, as inflation accelerated in June 2022 to the highest rate since 1981. Continued supply-chain disruptions, strong consumer demand, and volatile energy prices drove inflation higher. Russia’s invasion of Ukraine also disrupted financial markets and led to a rise in oil and commodity prices, although much of that increase abated by period-end. The unemployment rate declined marginally from 3.6% in March 2022 to 3.5% in September 2022 as notable employment gains occurred in the leisure and hospitality and health care sectors. Wage growth remained strong throughout the period, adding to some investors’ inflation concerns.

U.S. gross domestic product contracted in the second quarter of 2022, with the economy technically entering a recession, amid lower investments in inventories and fixed assets. An inventory drawdown, declining residential and business

1. The Morningstar^® US Target Market Exposure Index is a free float-adjusted market capitalization weighted index that is maintained and calculated by Morningstar, Inc.

2. Source: FactSet.

3. Source: Morningstar.

The indexes are unmanaged and include reinvestment of any income or distributions. They do not reflect any fees, expenses or sales charges. One cannot invest directly in an index. Net Returns (NR) include income net of tax withholding when dividends are paid.

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

The dollar value, number of shares or principal amount, and names of all portfolio holdings are listed in the Fund’s Schedule of Investments (SOI). The SOI begins on page 9.



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FRANKLIN U.S. EQUITY INDEX ETF

investment and lower levels of government spending contributed to the economic slowdown. Rising interest rates translated to higher borrowing costs for individuals and businesses, which dampened economic activity. Mortgage rates reached the highest level since 2007, and new home construction slowed toward period-end.

In an effort to control inflation, the U.S. Federal Reserve (Fed) continued to raise the federal funds target rate. The Fed raised the federal funds rate at each of its four meetings during the period to end at a range of 3.00%–3.25%. The Fed noted in its September 2022 meeting that inflation remained elevated amid robust job growth and low unemployment. Furthermore, the Fed said it would continue to reduce its bond holdings, and Fed Chair Jerome Powell indicated that reducing inflation was likely to require a period of below-trend growth.


Top 10 Sectors/Industries

9/30/22

	% of Total Net Assets
Software		9.1%
Technology Hardware, Storage & Peripherals		6.9%
Semiconductors & Semiconductor Equipment		4.7%
Interactive Media & Services		4.7%
IT Services		4.6%
Pharmaceuticals		4.5%
Oil, Gas & Consumable Fuels		4.2%
Banks		3.5%
Internet & Direct Marketing Retail		3.5%
Health Care Providers & Services		3.5%

Investment Strategy

The Fund, using a passive or indexing investment approach, seeks investment results that closely correspond, before fees and expenses, to the performance of the Underlying Index. The Fund may use either a replication strategy or representative sampling strategy. The Fund generally rebalances and reconstitutes its portfolio in accordance with the Underlying Index, which is rebalanced quarterly and reconstituted semiannually.

The Fund may invest in equity futures and equity total return swaps to provide additional opportunities to add value and better track the performance of the Fund’s Underlying Index.


Top 10 Holdings

9/30/22

Company *Sector/Industry, Country*	% of Total Net Assets
Apple Inc. Technology Hardware, Storage & Peripherals, United States		6.6%
Microsoft Corp. Software, United States		5.5%
Amazon.com Inc. Internet & Direct Marketing Retail, United States		3.2%
Tesla Inc. Automobiles, United States		2.2%
Alphabet Inc., A Interactive Media & Services, United States		1.8%
Alphabet Inc., C Interactive Media & Services, United States		1.6%
Berkshire Hathaway Inc., B Diversified Financial Services, United States		1.5%
UnitedHealth Group Inc. Health Care Providers & Services, United States		1.5%
Johnson & Johnson Pharmaceuticals, United States		1.4%
Exxon Mobil Corp. Oil, Gas & Consumable Fuels, United States		1.2%

As of July 20, 2022, the Franklin U.S. Equity Index ETF held Russian securities that were fair valued at zero. While Russian securities were removed from the Fund’s former underlying index and Russian securities are not included in the Fund’s new Underlying Index, as of July 20, 2022 the Fund has not been able to dispose of all such securities due to ongoing issues related to Russia’s invasion of Ukraine. The Fund will continue to monitor Russian related developments and will seek to dispose of such securities as soon as it is practicable.

Thank you for your participation in Franklin U.S. Equity Index ETF. We look forward to serving your future investment needs.

Dina Ting, CFA

Hailey Harris

Joe Diederich

Basit Amin, CFA

Portfolio Management Team



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FRANKLIN U.S. EQUITY INDEX ETF

The foregoing information reflects our analysis, opinions and portfolio holdings as of September 30, 2022, the end of the reporting period. These opinions may not be relied upon as investment advice or an offer for a particular security. The information is not a complete analysis of every aspect of any market, country, industry, security or the Fund. Statements of fact are from sources considered reliable, but the investment manager makes no representation or warranty as to their completeness or accuracy. Although historical performance is no guarantee of future results, these insights may help you understand our investment management philosophy.



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FRANKLIN U.S. EQUITY INDEX ETF

Performance Summary as of September 30, 2022

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

Net asset value or “NAV” is the value of one share of a fund as calculated in accordance with the standard formula for valuing mutual fund shares. Market Price returns typically are based upon the official closing price of the ETF’s shares. Since shares of the Fund did not trade in the secondary market until after the Fund’s inception, for the period from inception to the first day of secondary trading (6/3/16), the NAV of the Fund is used as a proxy for the Market Price to calculate market returns. Market and NAV returns assume that dividends and capital gain distributions have been reinvested at Market Price and NAV.

Your dividend income will vary depending on dividends or interest paid by securities in the Fund’s portfolio, adjusted for operating expenses. Capital gain distributions are net profits realized from the sale of portfolio securities.

Performance as of 9/30/22¹

Cumulative Total Return²

Average Annual Total Return²

Based on
NAV³

Based on
market price⁴

Based on
NAV³

Based on
market price⁴

6-Month

-20.82%

-20.60%

-20.82%

-20.60%

1-Year

-17.85%

-17.72%

-17.85%

-17.72%

5-Year

+23.34%

+22.96%

+4.28%

+4.22%

Since Inception (6/1/16)

+47.38%

+47.46%

+6.32%

+6.33%


Distribution Rate⁵	30-Day Standardized Yield⁶
0.19%		1.72%

See page 6 for Performance Summary footnotes.



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FRANKLIN U.S. EQUITY INDEX ETF

PERFORMANCE SUMMARY

Distributions (4/1/22–9/30/22)

Net Investment
Income

$0.551543

Total Annual Operating Expenses⁷

0.03%

All investments involve risks, including possible loss of principal. Stock prices fluctuate, sometimes rapidly and dramatically, due to factors affecting individual companies, particular industries or sectors, or general market conditions. To the extent the Fund focuses on particular industries, sectors or types of investment from time to time, it may be subject to greater risks of adverse developments in such areas of focus than a fund that invests in a wider variety of industries, sectors or investments. Neither the Fund nor the investment manager can offer assurances that the Underlying Index’s calculation methodology or sources of information will provide an accurate assessment of included issuers or that the included issuers will provide the Fund with the market exposure it seeks. Securities issued by mid capitalization companies may be more volatile in price than those of larger companies, involve substantial risks and should be considered speculative. Events such as the spread of deadly diseases, disasters, and financial, political or social disruptions, may heighten risks and adversely affect performance. The Fund’s prospectus also includes a description of the main investment risks.

Russia’s military invasion of Ukraine in February 2022, the resulting responses by the United States and other countries, and the potential for wider conflict could increase volatility and uncertainty in the financial markets and adversely affect regional and global economies. The United States and other countries have imposed broad-ranging economic sanctions on Russia and certain Russian individuals, banking entities and corporations as a response to its invasion of Ukraine. The United States and other countries have also imposed economic sanctions on Belarus and may impose sanctions on other countries that support Russia’s military invasion. These sanctions, as well as any other economic consequences related to the invasion, such as additional sanctions, boycotts or changes in consumer or purchaser preferences or cyberattacks on governments, companies or individuals, may further decrease the value and liquidity of certain Russian securities and securities of issuers in other countries that are subject to economic sanctions related to the invasion. To the extent that the Fund has exposure to Russian investments or investments in countries affected by the invasion, the Fund’s ability to price, buy, sell, receive or deliver such investments may be impaired. The Fund could determine at any time that certain of the most affected securities have zero value. In addition, any exposure that the Fund may have to counterparties in Russia or in countries affected by the invasion could negatively impact the Fund’s portfolio. The extent and duration of Russia’s military actions and the repercussions of such actions (including any retaliatory actions or countermeasures that may be taken by those subject to sanctions) are impossible to predict, but could result in significant market disruptions, including in the oil and natural gas markets, and may negatively affect global supply chains, inflation and global growth. These and any related events could significantly impact the Fund’s performance and the value of an investment in the Fund, even beyond any direct exposure the Fund may have to Russian issuers or issuers in other countries affected by the invasion.

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

1. Effective December 1, 2017, the Fund adopted a unified fee structure whereby Management has agreed to reimburse the Fund’s acquired fund fees and expenses (if any) and pay all of the ordinary operating expenses of the Fund, excluding: (i) payments under the Fund’s Rule 12b-1 plan (if any); (ii) brokerage expenses (including any costs incidental to transactions in portfolio securities or instruments); (iii) taxes; (iv) interest (including borrowing costs and dividend expenses on securities sold short and overdraft charges); (v) litigation expenses (including litigation to which the Trust or a Fund may be a party and indemnification of the Trustees and officers with respect thereto); and (vi) other non-routine or extraordinary expenses.

2. Total return calculations represent the cumulative and average annual changes in value of an investment over the periods indicated. Return for less than one year, if any,

has not been annualized.

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

4. Assumes reinvestment of distributions based on market price.

5. Distribution rate is based on an annualization of the September dividend and the NAV per share on 9/30/22.

6. The Fund’s 30-day standardized yield is calculated over a trailing 30-day period using the yield to maturity on bonds and/or the dividends accrued on stocks. It may not equal the Fund’s actual income distribution rate, which reflects the Fund’s past dividends paid to shareholders.

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

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



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FRANKLIN U.S. EQUITY INDEX ETF

Your Fund’s Expenses

As a Fund shareholder, you can incur two types of costs: (1) transaction costs, including brokerage commissions on purchases and sales of Fund shares; and (2) ongoing Fund costs, including management fees and other Fund expenses. All funds have ongoing costs, sometimes referred to as operating expenses. The table below shows ongoing costs of investing in the Fund and can help you understand these costs and compare them with those of other funds. The table assumes a $1,000 investment held for the six months indicated.

Actual Fund Expenses

The table below provides information about actual account values and actual expenses in the columns under the heading “Actual.” In these columns the Fund’s actual return, which includes the effect of Fund expenses, is used to calculate the “Ending Account Value.” You can estimate the expenses you paid during the period by following these steps (of course, your account value and expenses will differ from those in this illustration): Divide your account value by $1,000 (if your account had an $8,600 value, then $8,600 ÷ $1,000 = 8.6). Then multiply the result by the number in the row under the headings “Actual” and “Expenses Paid During Period” (if Actual Expenses Paid During Period were $7.50, then 8.6 × $7.50 = $64.50). In this illustration, the actual expenses paid this period are $64.50.

Hypothetical Example for Comparison with Other Funds

Under the heading “Hypothetical” in the table, information is provided about hypothetical account values and hypothetical expenses based on the Fund’s actual expense ratio and an assumed rate of return of 5% per year before expenses, which is not the Fund’s actual return. This information may not be used to estimate the actual ending account balance or expenses you paid for the period, but it can help you compare ongoing costs of investing in the Fund with those of other funds. To do so, compare this 5% hypothetical example with the 5% hypothetical examples that appear in the shareholder reports of other funds.

Please note that expenses shown in the table are meant to highlight ongoing costs and do not reflect any transactional costs. Therefore, information under the heading “Hypothetical” is useful in comparing ongoing costs only, and will not help you compare total costs of owning different funds. In addition, if transactional costs were included, your total costs would have been higher.


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

Beginning Account Value 4/1/22		Ending Account Value 9/30/22		Expenses Paid During Period 4/1/22–9/30/22^1,2		Ending Account Value 9/30/22		Expenses Paid During Period 4/1/22–9/30/22^1,2		Net Annualized Expense Ratio²
	$1,000.00	$	791.80	$	0.27	$	1,024.77	$	0.30		0.06	%

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

2. Effective August 1, 2022, the unified management fee was reduced from 0.35% to 0.03%. Had the new unified management fee been in effect for the full period, the expenses paid would have been $0.13 based upon the Fund’s actual performance and $0.15 based upon a hypothetical 5% return.



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FRANKLIN TEMPLETON ETF TRUST

Financial Highlights

Franklin U.S. Equity Index ETF^a



	Six Months Ended September 30, 2022 (unaudited)			Year Ended March 31,
	Six Months Ended September 30, 2022 (unaudited)			2022			2021			2020			2019			2018

Per share operating performance (for a share outstanding throughout the period)

Net asset value, beginning of period	$	40.04		$	37.65		$	26.77		$	30.90		$	30.14		$	27.18


Income from investment operations^b:

Net investment income^c		0.32			1.05			0.81			0.90			0.89			0.74

Net realized and unrealized gains (losses)		(8.62	)		2.34			10.97			(4.00	)		0.67			3.01


Total from investment operations		(8.30	)		3.39			11.78			(3.10	)		1.56			3.75


Less distributions from net investment income		(0.55	)		(1.00	)		(0.90	)		(1.03	)		(0.80	)		(0.79	)


Net asset value, end of period	$	31.19		$	40.04		$	37.65		$	26.77		$	30.90		$	30.14


Total return^d		(20.82)%			9.00%			44.55%			(10.53)%			5.44%			13.91%

Ratios to average net assets^e

Expenses before waiver and payments by affiliates		0.06%			0.35%			0.35%			0.35%			0.35%			0.90%	^f

Expenses net of waiver and payments by affiliates		0.06%			0.35%			0.34%			0.34%			0.34%			0.35%	^f

Net investment income		1.90%			2.63%			2.45%			2.86%			2.99%			2.53%

Supplemental data

Net assets, end of period (000’s)		$567,590			$16,014			$15,059			$16,059			$24,721			$18,082

Portfolio turnover rate^g		9.49%	^h		24.13%	^h		31.70%	^h		27.85%	^h		34.99%			35.01%

^aEffective August 1, 2022, Formerly, Franklin LibertyQ Global Equity ETF was renamed Franklin U.S. Equity Index ETF.

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

^cBased on average daily shares outstanding.

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

^eRatios are annualized for periods less than one year.

^fEffective December 1, 2017, the Fund replaced the prior fee structure with a unified management fee. See Note 3(a).

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


^hPortfolio turnover rate excluding cash creations was as follows:			9.49%				24.13%				31.70%				27.85%



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FRANKLIN TEMPLETON ETF TRUST

Schedule of Investments, September 30, 2022 (unaudited)

Franklin U.S. Equity Index ETF



		Industry		Shares		Value
	Common Stocks 99.9%
	Brazil 0.1%
a	MercadoLibre Inc.		Internet & Direct Marketing Retail		831	$	687,885

	China 0.1%
	NXP Semiconductors NV		Semiconductors & Semiconductor Equipment		4,732		698,017
	Sunac China Holdings Ltd.		Real Estate Management & Development		1,000		136


							698,153

	Ireland 0.1%
	Seagate Technology Holdings PLC		Technology Hardware, Storage & Peripherals		3,458		184,069

	Peru 0.0%^†
	Southern Copper Corp.		Metals & Mining		1,456		65,287

	Russia 0.0%^†
b	Alrosa PJSC		Metals & Mining		3,584		—
a,b	Gazprom PJSC		Oil, Gas & Consumable Fuels		15,428		—
b	Inter RAO UES PJSC		Electric Utilities		53,546		—
b	LUKOIL PJSC		Oil, Gas & Consumable Fuels		516		—
b	MMC Norilsk Nickel PJSC		Metals & Mining		100		—
b	Novolipetsk Steel PJSC		Metals & Mining		2,272		—
b	PhosAgro PJSC		Chemicals		73		—
b	PhosAgro PJSC		Chemicals		2		—
b	Polymetal International PLC		Metals & Mining		470		—
b	Polyus PJSC		Metals & Mining		50		—
b	Rosneft Oil Co. PJSC		Oil, Gas & Consumable Fuels		1,154		—
b	Severstal PAO		Metals & Mining		392		—
b	Surgutneftegas PJSC		Oil, Gas & Consumable Fuels		8,286		—
b	Tatneft PAO		Oil, Gas & Consumable Fuels		1,974		—
a,b	TCS Group Holding PLC, GDR		Banks		118		—
a,b	United Co. RUSAL International PJSC		Metals & Mining		1,714		—


							—

	Switzerland 0.1%
	TE Connectivity Ltd.		Electronic Equipment, Instruments & Components		5,642		622,651

	United Kingdom 0.4%
	Linde PLC		Chemicals		8,918		2,404,204

	United States 99.1%
	3M Co.		Industrial Conglomerates		10,192		1,126,216
	Abbott Laboratories		Health Care Equipment & Supplies		31,486		3,046,585
	AbbVie Inc.		Biotechnology		31,850		4,274,588
a	ABIOMED Inc.		Health Care Equipment & Supplies		910		223,551
	Accenture PLC, A		IT Services		11,284		2,903,373
	Activision Blizzard Inc.		Entertainment		12,740		947,092
a	Adobe Inc.		Software		8,372		2,303,974
	Advance Auto Parts Inc.		Specialty Retail		1,092		170,723
a	Advanced Micro Devices Inc.		Semiconductors & Semiconductor Equipment		29,120		1,845,043
	AES Corp.		Independent Power Producers & Energy Traders		11,830		267,358
	Aflac Inc.		Insurance		10,556		593,247
	Agilent Technologies Inc.		Life Sciences Tools & Services		5,278		641,541
a	agilon health Inc.		Health Care Providers & Services		3,458		80,986
	Air Products and Chemicals Inc.		Chemicals		4,004		931,851
a	Airbnb Inc., A		Hotels, Restaurants & Leisure		7,098		745,574
a	Akamai Technologies Inc.		IT Services		2,730		219,274
	Albemarle Corp.		Chemicals		2,002		529,409
	Albertsons Cos Inc.		Food & Staples Retailing		2,912		72,392
	Alexandria Real Estate Equities Inc.		Equity Real Estate Investment Trusts (REITs)		2,730		382,719
a	Align Technology Inc.		Health Care Equipment & Supplies		1,276		264,272
a	Alleghany Corp.		Insurance		222		186,340
	Allegion PLC		Building Products		1,638		146,896



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FRANKLIN TEMPLETON ETF TRUST

SCHEDULE OF INVESTMENTS (UNAUDITED)

Franklin U.S. Equity Index ETF (continued)



		Industry		Shares		Value
	Common Stocks (continued)
	United States (continued)
	Alliant Energy Corp.		Electric Utilities		4,368	$	231,460
	Allstate Corp.		Insurance		4,914		611,940
	Ally Financial Inc.		Consumer Finance		5,642		157,017
a	Alnylam Pharmaceuticals Inc.		Biotechnology		2,184		437,149
a	Alphabet Inc., A		Interactive Media & Services		107,744		10,305,714
a	Alphabet Inc., C		Interactive Media & Services		96,096		9,239,630
	Altria Group Inc.		Tobacco		32,214		1,300,801
a	Amazon.com Inc.		Internet & Direct Marketing Retail		159,068		17,974,684
a,c	AMC Entertainment Holdings Inc., A		Entertainment		9,100		63,427
	Amcor PLC		Containers & Packaging		27,300		292,929
	Ameren Corp.		Multi-Utilities		4,550		366,503
	American Electric Power Co. Inc.		Electric Utilities		9,100		786,695
	American Express Co.		Consumer Finance		10,738		1,448,664
	American Financial Group Inc.		Insurance		1,274		156,613
	American International Group Inc.		Insurance		13,468		639,461
	American Tower Corp.		Equity Real Estate Investment Trusts (REITs)		8,372		1,797,468
	American Water Works Co. Inc.		Water Utilities		3,276		426,404
	Ameriprise Financial Inc.		Capital Markets		2,002		504,404
	AmerisourceBergen Corp.		Health Care Providers & Services		2,730		369,451
	AMETEK Inc.		Electrical Equipment		4,186		474,734
	Amgen Inc.		Biotechnology		9,646		2,174,208
	Amphenol Corp., A		Electronic Equipment, Instruments & Components		10,556		706,830
	Analog Devices Inc.		Semiconductors & Semiconductor Equipment		9,282		1,293,354
	Annaly Capital Management Inc.		Mortgage Real Estate Investment Trusts (REITs)		7,826		134,294
a	ANSYS Inc.		Software		1,638		363,145
	Aon PLC, A		Insurance		3,822		1,023,799
	Apollo Global Management Inc.		Diversified Financial Services		7,826		363,909
	Apple Inc.		Technology Hardware, Storage & Peripherals		270,998		37,451,924
	Applied Materials Inc.		Semiconductors & Semiconductor Equipment		15,470		1,267,457
a	AppLovin Corp., A		Software		2,184		42,566
a	Aptiv PLC		Auto Components		4,732		370,090
	Aramark		Hotels, Restaurants & Leisure		4,550		141,960
a	Arch Capital Group Ltd.		Insurance		6,552		298,378
	Archer-Daniels-Midland Co.		Food Products		10,010		805,304
a	Arista Networks Inc.		Communications Equipment		4,368		493,104
	Arthur J Gallagher & Co.		Insurance		3,822		654,403
	AT&T Inc.		Diversified Telecommunication Services		127,764		1,959,900
	Atmos Energy Corp.		Gas Utilities		2,548		259,514
a	Autodesk Inc.		Software		3,822		713,950
	Automatic Data Processing Inc.		IT Services		7,462		1,687,830
a	AutoZone Inc.		Specialty Retail		350		749,676
	AvalonBay Communities Inc.		Equity Real Estate Investment Trusts (REITs)		2,548		469,316
	Avangrid Inc.		Electric Utilities		1,092		45,536
a	Avantor Inc.		Life Sciences Tools & Services		12,012		235,435
	Avery Dennison Corp.		Containers & Packaging		1,456		236,891
	Baker Hughes Co.		Energy Equipment & Services		17,472		366,213
	Ball Corp.		Containers & Packaging		5,642		272,621
	Bank of America Corp.		Banks		125,216		3,781,523
	Bank of New York Mellon Corp.		Capital Markets		13,104		504,766
	Bath & Body Works Inc.		Specialty Retail		4,368		142,397
	Baxter International Inc.		Health Care Equipment & Supplies		9,100		490,126
	Becton Dickinson and Co.		Health Care Equipment & Supplies		5,096		1,135,542
	Bentley Systems Inc., B		Software		3,458		105,780
a	Berkshire Hathaway Inc., B		Diversified Financial Services		32,396		8,650,380
	Best Buy Co. Inc.		Specialty Retail		3,640		230,558
a	Bill.com Holdings Inc.		Software		1,638
a	Biogen Inc.		Biotechnology		2,548		680,316



10	Semiannual Report	franklintempleton.com

FRANKLIN TEMPLETON ETF TRUST

SCHEDULE OF INVESTMENTS (UNAUDITED)

Franklin U.S. Equity Index ETF (continued)



		Industry		Shares		Value
	Common Stocks (continued)
	United States (continued)
a	BioMarin Pharmaceutical Inc.		Biotechnology		3,276	$	277,707
a	Bio-Rad Laboratories Inc., A		Life Sciences Tools & Services		364		151,839
	Bio-Techne Corp.		Life Sciences Tools & Services		728		206,752
	BlackRock Inc.		Capital Markets		2,705		1,488,507
	Blackstone Inc.		Capital Markets		12,740		1,066,338
a	Block Inc.		IT Services		9,464		520,425
a	Boeing Co.		Aerospace & Defense		10,010		1,212,011
a	Booking Holdings Inc.		Hotels, Restaurants & Leisure		712		1,169,966
	BorgWarner Inc.		Auto Components		4,368		137,155
	Boston Properties Inc.		Equity Real Estate Investment Trusts (REITs)		2,548		191,024
a	Boston Scientific Corp.		Health Care Equipment & Supplies		25,844		1,000,938
	Bristol-Myers Squibb Co.		Pharmaceuticals		38,220		2,717,060
	Broadcom Inc.		Semiconductors & Semiconductor Equipment		7,280		3,232,393
	Broadridge Financial Solutions Inc.		IT Services		2,184		315,195
	Brown & Brown Inc.		Insurance		4,004		242,162
	Brown-Forman Corp., A		Beverages		910		61,480
	Brown-Forman Corp., B		Beverages		3,094		205,968
	Bunge Ltd.		Food Products		2,730		225,416
a	Burlington Stores Inc.		Specialty Retail		1,274		142,548
	C.H. Robinson Worldwide Inc.		Air Freight & Logistics		2,184		210,341
a	Cadence Design Systems Inc.		Software		4,914		803,095
a	Caesars Entertainment Inc.		Hotels, Restaurants & Leisure		3,822		123,298
	Camden Property Trust		Equity Real Estate Investment Trusts (REITs)		2,002		239,139
	Campbell Soup Co.		Food Products		3,640		171,517
	Capital One Financial Corp.		Consumer Finance		6,916		637,448
	Cardinal Health Inc.		Health Care Providers & Services		4,732		315,530
	Carlyle Group Inc.		Capital Markets		3,822		98,760
a	CarMax Inc.		Specialty Retail		2,912		192,250
a	Carnival Corp.		Hotels, Restaurants & Leisure		16,744		117,710
	Carrier Global Corp.		Building Products		15,106		537,169
a	Catalent Inc.		Pharmaceuticals		3,094		223,882
	Caterpillar Inc.		Machinery		9,464		1,552,853
a	CBRE Group Inc., A		Real Estate Management & Development		5,824		393,178
	CDW Corp.		Electronic Equipment, Instruments & Components		2,366		369,285
	Celanese Corp.		Chemicals		2,002		180,861
a	Centene Corp.		Health Care Providers & Services		10,374		807,201
	CenterPoint Energy Inc.		Multi-Utilities		11,102		312,854
a	Ceridian HCM Holding Inc.		Software		2,912		162,723
	CF Industries Holdings Inc.		Chemicals		3,640		350,350
a	Charles River Laboratories International Inc.		Life Sciences Tools & Services		910		179,088
	Charles Schwab Corp.		Capital Markets		27,300		1,962,051
a	Charter Communications Inc., A		Media		2,003		607,610
	Cheniere Energy Inc.		Oil, Gas & Consumable Fuels		4,550		754,890
	Chevron Corp.		Oil, Gas & Consumable Fuels		32,214		4,628,185
a	Chipotle Mexican Grill Inc.		Hotels, Restaurants & Leisure		498		748,374
	Chubb Ltd.		Insurance		7,462		1,357,189
	Church & Dwight Co. Inc.		Household Products		4,550		325,052
	Cigna Corp.		Health Care Providers & Services		5,460		1,514,986
	Cincinnati Financial Corp.		Insurance		2,730		244,526
	Cintas Corp.		Commercial Services & Supplies		1,459		566,369
	Cisco Systems Inc.		Communications Equipment		74,256		2,970,240
	Citigroup Inc.		Banks		34,398		1,433,365
	Citizens Financial Group Inc.		Banks		8,554		293,915
	Citrix Systems Inc.		Software		1,476		153,356
a	Clarivate PLC		Professional Services		7,462		70,068
	Clorox Co.		Household Products		2,184		280,404
a	Cloudflare Inc., A		Software		4,914		271,793



franklintempleton.com	Semiannual Report	11

FRANKLIN TEMPLETON ETF TRUST

SCHEDULE OF INVESTMENTS (UNAUDITED)

Franklin U.S. Equity Index ETF (continued)



		Industry		Shares		Value
	Common Stocks (continued)
	United States (continued)
	CME Group Inc.		Capital Markets		6,370	$	1,128,318
	CMS Energy Corp.		Multi-Utilities		5,096		296,791
	Coca-Cola Co.		Beverages		69,706		3,904,930
	Cognex Corp.		Electronic Equipment, Instruments & Components		3,276		135,790
	Cognizant Technology Solutions Corp., A		IT Services		9,464		543,612
a,c	Coinbase Global Inc., A		Capital Markets		2,730		176,058
	Colgate-Palmolive Co.		Household Products		14,924		1,048,411
	Comcast Corp., A		Media		78,624		2,306,042
	Comerica Inc.		Banks		2,184		155,282
	Conagra Brands Inc.		Food Products		8,372		273,178
	ConocoPhillips		Oil, Gas & Consumable Fuels		22,568		2,309,609
	Consolidated Edison Inc.		Multi-Utilities		6,370		546,291
	Constellation Brands Inc., A		Beverages		2,912		668,828
	Constellation Energy Corp.		Electric Utilities		5,824		484,499
	Continental Resources Inc.		Oil, Gas & Consumable Fuels		1,092		72,957
a	Copart Inc.		Commercial Services & Supplies		3,822		406,661
	Corning Inc.		Electronic Equipment, Instruments & Components		13,650		396,123
	Corteva Inc.		Chemicals		12,922		738,492
a	CoStar Group Inc.		Professional Services		7,098		494,376
	Costco Wholesale Corp.		Food & Staples Retailing		8,008		3,781,938
	Coterra Energy Inc., A		Oil, Gas & Consumable Fuels		14,560		380,307
a	Crowdstrike Holdings Inc., A		Software		3,822		629,904
	Crown Castle Inc.		Equity Real Estate Investment Trusts (REITs)		7,826		1,131,248
	Crown Holdings Inc.		Containers & Packaging		2,184		176,970
	CSX Corp.		Road & Rail		38,584		1,027,878
	Cummins Inc.		Machinery		2,548		518,543
	CVS Health Corp.		Health Care Providers & Services		23,660		2,256,454
	D.R. Horton Inc.		Household Durables		5,824		392,246
	Danaher Corp.		Life Sciences Tools & Services		11,830		3,055,571
	Darden Restaurants Inc.		Hotels, Restaurants & Leisure		2,184		275,883
a	Datadog Inc., A		Software		4,550		403,949
a	DaVita Inc.		Health Care Providers & Services		1,092		90,385
	Deere & Co.		Machinery		4,914		1,640,735
	Dell Technologies Inc., C		Technology Hardware, Storage & Peripherals		4,732		161,692
a	Delta Air Lines Inc.		Airlines		11,284		316,629
	DENTSPLY SIRONA Inc.		Health Care Equipment & Supplies		3,640		103,194
	Devon Energy Corp.		Oil, Gas & Consumable Fuels		11,648		700,394
a	Dexcom Inc.		Health Care Equipment & Supplies		6,916		557,015
	Diamondback Energy Inc.		Oil, Gas & Consumable Fuels		3,276		394,627
	Digital Realty Trust Inc.		Equity Real Estate Investment Trusts (REITs)		5,096		505,421
	Discover Financial Services		Consumer Finance		4,914		446,781
a	DISH Network Corp., A		Media		4,186		57,892
a	DocuSign Inc.		Software		3,458		184,899
	Dollar General Corp.		Multiline Retail		4,004		960,399
a	Dollar Tree Inc.		Multiline Retail		3,822		520,174
	Dominion Energy Inc.		Multi-Utilities		14,924		1,031,398
	Dominos Pizza Inc.		Hotels, Restaurants & Leisure		728		225,826
a	DoorDash Inc., A		Internet & Direct Marketing Retail		4,732		233,997
	Dover Corp.		Machinery		2,548		297,046
	Dow Inc.		Chemicals		12,922		567,663
	DTE Energy Co.		Multi-Utilities		3,458		397,843
	Duke Energy Corp.		Electric Utilities		14,014		1,303,582
	Duke Realty Corp.		Equity Real Estate Investment Trusts (REITs)		6,734		324,579
	Dun & Bradstreet Holdings Inc.		Professional Services		4,368		54,120
	DuPont de Nemours Inc.		Chemicals		9,100		458,640
a	DXC Technology Co.		IT Services		4,550		111,384
a	Dynatrace Inc.		Software		3,640		126,708



12	Semiannual Report	franklintempleton.com

FRANKLIN TEMPLETON ETF TRUST

SCHEDULE OF INVESTMENTS (UNAUDITED)

Franklin U.S. Equity Index ETF (continued)



		Industry		Shares		Value
	Common Stocks (continued)
	United States (continued)
	East West Bancorp Inc.		Banks		2,366	$	158,853
	Eastman Chemical Co.		Chemicals		2,366		168,104
	Eaton Corp. PLC		Electrical Equipment		7,098		946,589
	eBay Inc.		Internet & Direct Marketing Retail		10,010		368,468
	Ecolab Inc.		Chemicals		4,368		630,827
	Edison International		Electric Utilities		6,734		381,010
a	Edwards Lifesciences Corp.		Health Care Equipment & Supplies		11,102		917,358
a	Elanco Animal Health Inc.		Pharmaceuticals		8,372		103,897
	Electronic Arts Inc.		Entertainment		4,732		547,540
	Elevance Health Inc.		Health Care Providers & Services		4,368		1,984,120
	Eli Lilly & Co.		Pharmaceuticals		14,196		4,590,277
	Emerson Electric Co.		Electrical Equipment		10,556		772,910
a	Enphase Energy Inc.		Semiconductors & Semiconductor Equipment		2,366		656,494
	Entegris Inc.		Semiconductors & Semiconductor Equipment		2,730		226,645
	Entergy Corp.		Electric Utilities		3,640		366,293
	EOG Resources Inc.		Oil, Gas & Consumable Fuels		10,556		1,179,422
a	EPAM Systems Inc.		IT Services		1,092		395,511
	Equifax Inc.		Professional Services		2,184		374,403
	Equinix Inc.		Equity Real Estate Investment Trusts (REITs)		1,638		931,760
	Equitable Holdings Inc.		Diversified Financial Services		6,370		167,850
	Equity LifeStyle Properties Inc.		Equity Real Estate Investment Trusts (REITs)		3,094		194,427
	Equity Residential		Equity Real Estate Investment Trusts (REITs)		6,006		403,723
	Essex Property Trust Inc.		Equity Real Estate Investment Trusts (REITs)		1,093		264,757
	Estee Lauder Cos Inc., A		Personal Products		4,186		903,757
a	Etsy Inc.		Internet & Direct Marketing Retail		2,184		218,684
	Everest Re Group Ltd.		Insurance		728		191,056
	Evergy Inc.		Electric Utilities		4,004		237,838
	Eversource Energy		Electric Utilities		6,188		482,416
a	Exact Sciences Corp.		Biotechnology		2,912		94,611
	Exelon Corp.		Electric Utilities		18,018		674,954
a	Expedia Group Inc.		Internet & Direct Marketing Retail		2,730		255,774
	Expeditors International of Washington Inc.		Air Freight & Logistics		2,912		257,159
	Extra Space Storage Inc.		Equity Real Estate Investment Trusts (REITs)		2,366		408,632
	Exxon Mobil Corp.		Oil, Gas & Consumable Fuels		74,802		6,530,963
a	F5 Networks Inc.		Communications Equipment		1,092		158,045
	FactSet Research Systems Inc.		Capital Markets		728		291,280
	Fastenal Co.		Trading Companies & Distributors		10,374		477,619
	Federal Realty Investment Trust		Equity Real Estate Investment Trusts (REITs)		1,274		114,813
	FedEx Corp.		Air Freight & Logistics		4,368		648,517
	Fidelity National Financial Inc.		Insurance		4,914		177,887
	Fidelity National Information Services Inc.		IT Services		10,920		825,224
	Fifth Third Bancorp		Banks		12,376		395,537
	First Republic Bank		Banks		3,276		427,682
	FirstEnergy Corp.		Electric Utilities		10,192		377,104
a	Fiserv Inc.		IT Services		11,466		1,072,874
a	FleetCor Technologies Inc.		IT Services		1,456		256,504
a	Flex Ltd.		Electronic Equipment, Instruments & Components		8,736		145,542
	FMC Corp.		Chemicals		2,184		230,849
	Ford Motor Co.		Automobiles		70,070		784,784
a	Fortinet Inc.		Software		11,830		581,208
	Fortive Corp.		Machinery		6,370		371,371
	Fortune Brands Home & Security Inc.		Building Products		2,366		127,031
	Fox Corp., A		Media		5,460		167,513
	Fox Corp., B		Media		2,730		77,805
	Franklin Resources Inc.		Capital Markets		4,914		105,749
	Freeport-McMoRan Inc.		Metals & Mining		25,844		706,317
	Garmin Ltd.		Household Durables		2,730		219,246



franklintempleton.com	Semiannual Report	13

FRANKLIN TEMPLETON ETF TRUST

SCHEDULE OF INVESTMENTS (UNAUDITED)

Franklin U.S. Equity Index ETF (continued)



		Industry		Shares		Value
	Common Stocks (continued)
	United States (continued)
a	Gartner Inc.		IT Services		1,456	$	402,861
a	Generac Holdings Inc.		Electrical Equipment		1,092		194,529
	General Dynamics Corp.		Aerospace & Defense		4,004		849,529
	General Electric Co.		Industrial Conglomerates		19,656		1,216,903
	General Mills Inc.		Food Products		10,738		822,638
	General Motors Co.		Automobiles		26,390		846,855
	Genuine Parts Co.		Distributors		2,548		380,467
	Gilead Sciences Inc.		Biotechnology		22,568		1,392,220
	Global Payments Inc.		IT Services		4,914		530,958
	Globe Life Inc.		Insurance		1,638		163,309
a	GoDaddy Inc., A		IT Services		2,730		193,502
	Goldman Sachs Group Inc.		Capital Markets		6,188		1,813,393
	Halliburton Co.		Energy Equipment & Services		16,380		403,276
	Hartford Financial Services Group Inc.		Insurance		5,824		360,739
	Hasbro Inc.		Leisure Products		2,366		159,516
	HCA Healthcare Inc.		Health Care Providers & Services		3,822		702,445
	Healthpeak Properties Inc.		Equity Real Estate Investment Trusts (REITs)		9,464		216,915
	HEICO Corp.		Aerospace & Defense		728		104,817
	HEICO Corp., A		Aerospace & Defense		1,274		146,026
a	Henry Schein Inc.		Health Care Providers & Services		2,366		155,612
	Hess Corp.		Oil, Gas & Consumable Fuels		4,914		535,577
	Hewlett Packard Enterprise Co.		Technology Hardware, Storage & Peripherals		23,114		276,906
	Hilton Worldwide Holdings Inc.		Hotels, Restaurants & Leisure		4,914		592,727
a	Hologic Inc.		Health Care Equipment & Supplies		4,368		281,823
	Honeywell International Inc.		Industrial Conglomerates		12,194		2,036,032
a	Horizon Therapeutics PLC		Biotechnology		4,004		247,808
	Hormel Foods Corp.		Food Products		5,460		248,102
	Host Hotels & Resorts Inc.		Equity Real Estate Investment Trusts (REITs)		12,740		202,311
	Howmet Aerospace Inc.		Aerospace & Defense		6,552		202,653
	HP Inc.		Technology Hardware, Storage & Peripherals		16,380		408,190
	Hubbell Inc., B		Electrical Equipment		910		202,930
a	HubSpot Inc.		Software		910		245,809
	Humana Inc.		Health Care Providers & Services		2,186		1,060,625
	Huntington Bancshares Inc.		Banks		25,662		338,225
	Huntington Ingalls Industries Inc.		Aerospace & Defense		728		161,252
a	IAC Inc.		Interactive Media & Services		1,456		80,633
	IDEX Corp.		Machinery		1,274		254,609
a	IDEXX Laboratories Inc.		Health Care Equipment & Supplies		1,456		474,365
	Illinois Tool Works Inc.		Machinery		5,096		920,592
a	Illumina Inc.		Life Sciences Tools & Services		2,912		555,580
a	Incyte Corp.		Biotechnology		3,276		218,313
	Ingersoll Rand Inc.		Machinery		7,280		314,933
a	Insulet Corp.		Health Care Equipment & Supplies		1,274		292,256
	Intel Corp.		Semiconductors & Semiconductor Equipment		73,528		1,894,817
	Intercontinental Exchange Inc.		Capital Markets		10,192		920,847
	International Business Machines Corp.		IT Services		16,198		1,924,484
	International Flavors & Fragrances Inc.		Chemicals		4,550		413,277
	International Paper Co.		Containers & Packaging		6,552		207,698
	Interpublic Group of Cos Inc.		Media		6,916		177,050
	Intuit Inc.		Software		5,096		1,973,783
a	Intuitive Surgical Inc.		Health Care Equipment & Supplies		6,370		1,193,993
	Invesco Ltd.		Capital Markets		8,190		112,203
	Invitation Homes Inc.		Equity Real Estate Investment Trusts (REITs)		10,920		368,768
a	IQVIA Holdings Inc.		Life Sciences Tools & Services		3,276		593,415
	Iron Mountain Inc.		Equity Real Estate Investment Trusts (REITs)		5,096		224,071
	Jack Henry & Associates Inc.		IT Services		1,274		232,212
	Jacobs Solutions Inc.		Professional Services		2,366		256,687



14	Semiannual Report	franklintempleton.com

FRANKLIN TEMPLETON ETF TRUST

SCHEDULE OF INVESTMENTS (UNAUDITED)

Franklin U.S. Equity Index ETF (continued)



		Industry		Shares		Value
	Common Stocks (continued)
	United States (continued)
a	Jazz Pharmaceuticals PLC		Pharmaceuticals		1,092	$	145,553
	JB Hunt Transport Services Inc.		Road & Rail		1,456		227,748
	Jefferies Financial Group Inc.		Capital Markets		3,276		96,642
	Johnson & Johnson		Pharmaceuticals		47,138		7,700,464
	Johnson Controls International PLC		Building Products		12,376		609,147
	JPMorgan Chase & Co.		Banks		52,598		5,496,491
	Juniper Networks Inc.		Communications Equipment		6,188		161,631
	Kellogg Co.		Food Products		4,550		316,953
	Keurig Dr Pepper Inc.		Beverages		15,288		547,616
	KeyCorp		Banks		16,562		265,323
a	Keysight Technologies Inc.		Electronic Equipment, Instruments & Components		3,276		515,511
	Kimberly-Clark Corp.		Household Products		6,006		675,915
	Kimco Realty Corp.		Equity Real Estate Investment Trusts (REITs)		11,102		204,388
	Kinder Morgan Inc.		Oil, Gas & Consumable Fuels		35,854		596,611
	KKR & Co. Inc.		Capital Markets		10,556		453,908
	KLA Corp.		Semiconductors & Semiconductor Equipment		2,548		771,101
	Kraft Heinz Co.		Food Products		14,196		473,437
	L3Harris Technologies Inc.		Aerospace & Defense		3,458		718,676
	Laboratory Corp. of America Holdings		Health Care Providers & Services		1,638		335,479
	Lam Research Corp.		Semiconductors & Semiconductor Equipment		2,548		932,568
	Lamb Weston Holdings Inc.		Food Products		2,730		211,247
a	Las Vegas Sands Corp.		Hotels, Restaurants & Leisure		6,006		225,345
	Lear Corp.		Auto Components		1,092		130,701
	Leidos Holdings Inc.		Professional Services		2,548		222,874
	Lennar Corp., A		Household Durables		4,550		339,203
	Lennar Corp., B		Household Durables		182		10,831
	Lennox International Inc.		Building Products		546		121,578
a	Liberty Broadband Corp.		Media		2,366		174,611
a	Liberty Broadband Corp., A		Media		364		27,154
a	Liberty Media Corp.-Liberty SiriusXM, C		Media		1,274		48,501
a	Liberty Media Corp.-Liberty SiriusXM, C		Media		2,730		102,948
	Lincoln National Corp.		Insurance		2,730		119,874
a	Live Nation Entertainment Inc.		Entertainment		2,730		207,589
	LKQ Corp.		Distributors		4,550		214,533
	Lockheed Martin Corp.		Aerospace & Defense		4,186		1,617,010
	Loews Corp.		Insurance		3,822		190,488
	Lowe’s Cos Inc.		Specialty Retail		11,466		2,153,429
a,c	Lucid Group Inc.		Automobiles		10,010		139,840
a	Lululemon Athletica Inc.		Textiles, Apparel & Luxury Goods		2,003		559,959
	Lumen Technologies Inc.		Diversified Telecommunication Services		16,562		120,571
a	Lyft Inc., A		Road & Rail		5,096		67,114
	LyondellBasell Industries NV, A		Chemicals		4,550		342,524
	M&T Bank Corp.		Banks		3,094		545,534
	Marathon Oil Corp.		Oil, Gas & Consumable Fuels		12,740		287,669
	Marathon Petroleum Corp.		Oil, Gas & Consumable Fuels		8,918		885,825
a	Markel Corp.		Insurance		246		266,718
	MarketAxess Holdings Inc.		Capital Markets		728		161,973
	Marriott International Inc., A		Hotels, Restaurants & Leisure		4,914		688,648
	Marsh & McLennan Cos Inc.		Insurance		8,918		1,331,368
	Martin Marietta Materials Inc.		Construction Materials		1,092		351,722
	Marvell Technology Inc.		Semiconductors & Semiconductor Equipment		15,106		648,198
	Masco Corp.		Building Products		4,368		203,942
	Mastercard Inc., A		IT Services		15,288		4,346,990
a	Match Group Inc.		Interactive Media & Services		4,914		234,644
	McCormick & Co. Inc.		Food Products		4,550		324,279
	McDonald’s Corp.		Hotels, Restaurants & Leisure		13,286		3,065,612
	McKesson Corp.		Health Care Providers & Services		2,548		865,989



franklintempleton.com	Semiannual Report	15

FRANKLIN TEMPLETON ETF TRUST

SCHEDULE OF INVESTMENTS (UNAUDITED)

Franklin U.S. Equity Index ETF (continued)



		Industry		Shares		Value
	Common Stocks (continued)
	United States (continued)
	Medtronic PLC		Health Care Equipment & Supplies		23,842	$	1,925,241
	Merck & Co. Inc.		Pharmaceuticals		45,500		3,918,460
a	Meta Platforms Inc., A		Interactive Media & Services		40,950		5,556,096
	MetLife Inc.		Insurance		12,194		741,151
a	Mettler-Toledo International Inc.		Life Sciences Tools & Services		413		447,742
	MGM Resorts International		Hotels, Restaurants & Leisure		6,188		183,907
	Microchip Technology Inc.		Semiconductors & Semiconductor Equipment		9,828		599,803
	Micron Technology Inc.		Semiconductors & Semiconductor Equipment		19,838		993,884
	Microsoft Corp.		Software		133,770		31,155,033
	Mid-America Apartment Communities Inc.		Equity Real Estate Investment Trusts (REITs)		2,002		310,450
a	Moderna Inc.		Biotechnology		6,188		731,731
a	Mohawk Industries Inc.		Household Durables		910		82,983
a	Molina Healthcare Inc.		Health Care Providers & Services		1,092		360,185
	Molson Coors Beverage Co., B		Beverages		3,640		174,684
	Mondelez International Inc., A		Food Products		24,570		1,347,173
a	MongoDB Inc.		IT Services		1,274		252,965
	Monolithic Power Systems Inc.		Semiconductors & Semiconductor Equipment		728		264,555
a	Monster Beverage Corp.		Beverages		6,734		585,589
	Moody’s Corp.		Capital Markets		2,912		707,936
	Morgan Stanley		Capital Markets		24,024		1,898,136
	Mosaic Co.		Chemicals		6,370		307,862
	Motorola Solutions Inc.		Communications Equipment		3,094		692,963
	MSCI Inc.		Capital Markets		1,456		614,126
	Nasdaq Inc.		Capital Markets		6,006		340,420
	NetApp Inc.		Technology Hardware, Storage & Peripherals		3,822		236,391
a	Netflix Inc.		Entertainment		8,008		1,885,404
a	Neurocrine Biosciences Inc.		Biotechnology		1,820		193,302
	Newell Brands Inc.		Household Durables		6,370		88,479
	Newmont Corp.		Metals & Mining		14,014		589,008
	News Corp., A		Media		6,734		101,751
	News Corp., B		Media		2,002		30,871
	NextEra Energy Inc.		Electric Utilities		35,308		2,768,500
	Nielsen Holdings PLC		Professional Services		6,916		191,712
	NIKE Inc., B		Textiles, Apparel & Luxury Goods		22,568		1,875,852
	NiSource Inc.		Multi-Utilities		7,280		183,383
	Norfolk Southern Corp.		Road & Rail		4,186		877,595
	Northern Trust Corp.		Capital Markets		3,640		311,438
	Northrop Grumman Corp.		Aerospace & Defense		2,548		1,198,375
	NortonLifeLock Inc.		Software		10,192		205,267
a	Novocure Ltd.		Health Care Equipment & Supplies		1,456		110,627
	NRG Energy Inc.		Electric Utilities		4,368		167,163
	Nucor Corp.		Metals & Mining		4,732		506,277
	NVIDIA Corp.		Semiconductors & Semiconductor Equipment		44,954		5,456,966
a	NVR Inc.		Household Durables		55		219,289
	Occidental Petroleum Corp.		Oil, Gas & Consumable Fuels		13,286		816,425
a	Okta Inc.		IT Services		2,730		155,255
a	Olaplex Holdings Inc.		Personal Products		1,092		10,429
	Old Dominion Freight Line Inc.		Road & Rail		1,638		407,485
	Omnicom Group Inc.		Media		3,640		229,648
a	ON Semiconductor Corp.		Semiconductors & Semiconductor Equipment		7,644		476,451
	ONEOK Inc.		Oil, Gas & Consumable Fuels		7,826		401,004
	Oracle Corp.		Software		27,118		1,656,096
a	O’Reilly Automotive Inc.		Specialty Retail		1,156		813,073
	Otis Worldwide Corp.		Machinery		7,462		476,076
	Owens Corning		Building Products		1,820		143,070
	PACCAR Inc.		Machinery		6,188		517,874
	Packaging Corp. of America		Containers & Packaging		1,638		183,931



16	Semiannual Report	franklintempleton.com

FRANKLIN TEMPLETON ETF TRUST

SCHEDULE OF INVESTMENTS (UNAUDITED)

Franklin U.S. Equity Index ETF (continued)



		Industry		Shares		Value
	Common Stocks (continued)
	United States (continued)
a	Palantir Technologies Inc., A		Software		32,214	$	261,900
a	Palo Alto Networks Inc.		Software		5,460		894,293
	Parker-Hannifin Corp.		Machinery		2,366		573,305
	Paychex Inc.		IT Services		5,642		633,089
a	Paycom Software Inc.		Software		910		300,291
a	Paylocity Holding Corp.		Software		728		175,870
a	PayPal Holdings Inc.		IT Services		20,930		1,801,445
	Pentair PLC		Machinery		3,094		125,709
	PepsiCo Inc.		Beverages		24,752		4,041,012
	PerkinElmer Inc.		Life Sciences Tools & Services		2,184		262,801
	Pfizer Inc.		Pharmaceuticals		100,646		4,404,269
a	PG&E Corp.		Electric Utilities		28,938		361,725
	Philip Morris International Inc.		Tobacco		27,846		2,311,496
	Phillips 66		Oil, Gas & Consumable Fuels		8,554		690,479
	Pinnacle West Capital Corp.		Electric Utilities		2,002		129,149
a	Pinterest Inc., A		Interactive Media & Services		10,192		237,474
	Pioneer Natural Resources Co.		Oil, Gas & Consumable Fuels		4,368		945,803
a	Playtika Holding Corp.		Entertainment		1,820		17,090
a	Plug Power Inc.		Electrical Equipment		9,282		195,015
	PNC Financial Services Group Inc.		Banks		7,462		1,114,972
	Pool Corp.		Distributors		728		231,657
	PPG Industries Inc.		Chemicals		4,186		463,348
	PPL Corp.		Electric Utilities		13,104		332,186
	Principal Financial Group Inc.		Insurance		4,186		302,020
	Prologis Inc.		Equity Real Estate Investment Trusts (REITs)		13,286		1,349,858
	Prudential Financial Inc.		Insurance		6,552		562,031
a	PTC Inc.		Software		1,820		190,372
	Public Service Enterprise Group Inc.		Multi-Utilities		8,918		501,459
	Public Storage		Equity Real Estate Investment Trusts (REITs)		2,912		852,663
	PulteGroup Inc.		Household Durables		4,368		163,800
a	Qorvo Inc.		Semiconductors & Semiconductor Equipment		1,820		144,526
	QUALCOMM Inc.		Semiconductors & Semiconductor Equipment		20,202		2,282,422
	Quanta Services Inc.		Construction & Engineering		2,548		324,590
	Quest Diagnostics Inc.		Health Care Providers & Services		2,002		245,625
	Raymond James Financial Inc.		Capital Markets		3,458		341,720
	Raytheon Technologies Corp.		Aerospace & Defense		26,390		2,160,285
	Realty Income Corp.		Equity Real Estate Investment Trusts (REITs)		11,102		646,136
	Regency Centers Corp.		Equity Real Estate Investment Trusts (REITs)		2,730		147,011
a	Regeneron Pharmaceuticals Inc.		Biotechnology		1,923		1,324,697
	Regions Financial Corp.		Banks		16,562		332,399
	Reinsurance Group of America Inc.		Insurance		1,274		160,282
	Republic Services Inc.		Commercial Services & Supplies		3,640		495,186
	ResMed Inc.		Health Care Equipment & Supplies		2,730		595,959
a	RingCentral Inc., A		Software		1,274		50,909
a	Rivian Automotive Inc., A		Automobiles		9,828		323,439
	Rockwell Automation Inc.		Electrical Equipment		2,184		469,800
a	Roku Inc.		Entertainment		2,184		123,178
	Rollins Inc.		Commercial Services & Supplies		4,004		138,859
	Roper Technologies Inc.		Industrial Conglomerates		1,820		654,545
	Ross Stores Inc.		Specialty Retail		6,188		521,463
a	Royal Caribbean Cruises Ltd.		Hotels, Restaurants & Leisure		3,822		144,854
	Royalty Pharma PLC		Pharmaceuticals		6,370		255,947
	S&P Global Inc.		Capital Markets		6,006		1,833,932
a	Salesforce Inc.		Software		17,836		2,565,530
	SBA Communications Corp.		Equity Real Estate Investment Trusts (REITs)		2,002		569,869
	Schlumberger NV		Energy Equipment & Services		25,298		908,198
a	Seagen Inc.		Biotechnology		2,366		323,740



franklintempleton.com	Semiannual Report	17

FRANKLIN TEMPLETON ETF TRUST

SCHEDULE OF INVESTMENTS (UNAUDITED)

Franklin U.S. Equity Index ETF (continued)



		Industry		Shares		Value
	Common Stocks (continued)
	United States (continued)
	Sealed Air Corp.		Containers & Packaging		2,730	$	121,512
	SEI Investments Co.		Capital Markets		1,820		89,271
	Sempra Energy		Multi-Utilities		5,642		845,961
	Sensata Technologies Holding PLC		Electrical Equipment		2,912		108,559
a	ServiceNow Inc.		Software		3,640		1,374,500
	Sherwin-Williams Co.		Chemicals		4,186		857,083
	Signature Bank		Banks		1,092		164,892
	Simon Property Group Inc.		Real Estate Investment Trusts (REITs)		5,824		522,704
c	Sirius XM Holdings Inc.		Media		16,016		91,451
	Skyworks Solutions Inc.		Semiconductors & Semiconductor Equipment		2,912		248,306
a	Snap Inc., A		Interactive Media & Services		19,474		191,235
	Snap-on Inc.		Machinery		910		183,229
a	Snowflake Inc., A		IT Services		5,096		866,116
a	SolarEdge Technologies Inc.		Semiconductors & Semiconductor Equipment		910		210,629
	Southern Co.		Electric Utilities		19,292		1,311,856
a	Southwest Airlines Co.		Airlines		10,374		319,934
a	Splunk Inc.		Software		2,912		218,982
	SS&C Technologies Holdings Inc.		IT Services		3,822		182,501
	Stanley Black & Decker Inc.		Machinery		2,730		205,323
	Starbucks Corp.		Hotels, Restaurants & Leisure		20,748		1,748,226
	State Street Corp.		Capital Markets		6,552		398,427
	Steel Dynamics Inc.		Metals & Mining		3,276		232,432
	STERIS PLC		Health Care Equipment & Supplies		1,820		302,630
	Stryker Corp.		Health Care Equipment & Supplies		6,006		1,216,455
	Sun Communities Inc.		Equity Real Estate Investment Trusts (REITs)		2,184		295,561
a	SVB Financial Group		Banks		1,092		366,672
	Synchrony Financial		Consumer Finance		8,918		251,398
a	Synopsys Inc.		Software		2,730		834,042
	Sysco Corp.		Food & Staples Retailing		9,100		643,461
	T Rowe Price Group Inc.		Capital Markets		4,004		420,460
a	Take-Two Interactive Software Inc.		Entertainment		2,730		297,570
	Tapestry Inc.		Textiles, Apparel & Luxury Goods		4,550		129,357
	Targa Resources Corp.		Oil, Gas & Consumable Fuels		4,004		241,601
	Target Corp.		Multiline Retail		8,372		1,242,321
a	Teledyne Technologies Inc.		Electronic Equipment, Instruments & Components		910		307,098
	Teleflex Inc.		Health Care Equipment & Supplies		910		183,329
	Teradyne Inc.		Semiconductors & Semiconductor Equipment		2,730		205,160
a	Tesla Inc.		Automobiles		47,792		12,676,828
	Texas Instruments Inc.		Semiconductors & Semiconductor Equipment		16,380		2,535,296
	Texas Pacific Land Corp.		Oil, Gas & Consumable Fuels		109		193,718
	Textron Inc.		Aerospace & Defense		3,822		222,670
	The Cooper Cos Inc.		Health Care Equipment & Supplies		910		240,149
	The Hershey Co.		Food Products		2,548		561,758
	The Home Depot Inc.		Specialty Retail		18,382		5,072,329
	The J.M. Smucker Co.		Food Products		2,002		275,095
	The Kroger Co.		Food & Staples Retailing		11,830		517,563
	The Procter & Gamble Co.		Household Products		42,952		5,422,690
	The Progressive Corp.		Insurance		10,556		1,226,713
	The TJX Cos Inc.		Specialty Retail		20,930		1,300,172
	The Travelers Companies Inc.		Insurance		4,186		641,295
	Thermo Fisher Scientific Inc.		Life Sciences Tools & Services		7,027		3,564,024
a	T-Mobile US Inc.		Wireless Telecommunication Services		10,738		1,440,717
	Tractor Supply Co.		Specialty Retail		2,002		372,132
a	Trade Desk Inc., A		Software		7,826		467,604
	Trane Technologies PLC		Building Products		4,186		606,175
	TransDigm Group Inc.		Aerospace & Defense		910		477,586
	TransUnion		Professional Services		3,458		205,716



18	Semiannual Report	franklintempleton.com

FRANKLIN TEMPLETON ETF TRUST

SCHEDULE OF INVESTMENTS (UNAUDITED)

Franklin U.S. Equity Index ETF (continued)



		Industry		Shares		Value
	Common Stocks (continued)
	United States (continued)
a	Trimble Inc.		Electronic Equipment, Instruments & Components		4,368	$	237,051
	Truist Financial Corp.		Banks		23,660		1,030,156
a	Twilio Inc., A		IT Services		3,276		226,503
a	Twitter Inc.		Interactive Media & Services		12,012		526,606
a	Tyler Technologies Inc.		Software		728		252,980
	Tyson Foods Inc., A		Food Products		5,096		335,979
a	Uber Technologies Inc.		Road & Rail		35,490		940,485
	UDR Inc.		Equity Real Estate Investment Trusts (REITs)		5,460		227,737
	UGI Corp.		Gas Utilities		3,640		117,681
a	UiPath Inc., A		Software		5,460		68,851
a	Ulta Beauty Inc.		Specialty Retail		910		365,083
	Union Pacific Corp.		Road & Rail		11,284		2,198,349
a	United Airlines Holdings Inc.		Airlines		5,642		183,534
	United Parcel Service Inc., B		Air Freight & Logistics		13,104		2,116,820
a	United Rentals Inc.		Trading Companies & Distributors		1,274		344,133
	UnitedHealth Group Inc.		Health Care Providers & Services		16,744		8,456,390
a	Unity Software Inc.		Software		3,094		98,575
	Universal Health Services Inc., B		Health Care Providers & Services		1,092		96,293
	US BanCorp		Banks		24,024		968,648
	Vail Resorts Inc.		Hotels, Restaurants & Leisure		728		156,986
	Valero Energy Corp.		Oil, Gas & Consumable Fuels		7,280		777,868
a	Veeva Systems Inc., A		Health Care Technology		2,548		420,114
	Ventas Inc.		Equity Real Estate Investment Trusts (REITs)		6,916		277,816
a	VeriSign Inc.		IT Services		1,638		284,521
	Verisk Analytics Inc.		Professional Services		2,912		496,583
	Verizon Communications Inc.		Diversified Telecommunication Services		75,530		2,867,874
a	Vertex Pharmaceuticals Inc.		Biotechnology		4,550		1,317,407
	VF Corp.		Textiles, Apparel & Luxury Goods		5,642		168,752
	ViacomCBS Inc., B		Media		9,100		173,264
	Viatris Inc.		Pharmaceuticals		21,840		186,077
	VICI Properties Inc.		Equity Real Estate Investment Trusts (REITs)		17,290		516,107
	Visa Inc., A		IT Services		29,302		5,205,500
	Vistra Corp.		Independent Power Producers & Energy Traders		7,462		156,702
	VMware Inc., A		Software		3,640		387,514
	Vornado Realty Trust		Equity Real Estate Investment Trusts (REITs)		2,730		63,227
	Voya Financial Inc.		Diversified Financial Services		1,820		110,110
	Vulcan Materials Co.		Construction Materials		2,366		373,142
	W R Berkley Corp.		Insurance		3,640		235,071
	W.W. Grainger Inc.		Trading Companies & Distributors		728		356,130
	Walgreens Boots Alliance Inc.		Food & Staples Retailing		12,740		400,036
	Walmart Inc.		Food & Staples Retailing		25,480		3,304,756
a	Walt Disney Co.		Media		32,760		3,090,251
a	Warner Bros Discovery Inc.		Entertainment		39,494		454,181
	Waste Management Inc.		Commercial Services & Supplies		6,734		1,078,854
a	Waters Corp.		Life Sciences Tools & Services		1,092		294,327
	Watsco Inc.		Trading Companies & Distributors		546		140,573
	WEC Energy Group Inc.		Multi-Utilities		5,642		504,564
	Wells Fargo & Co.		Banks		68,068		2,737,695
	Welltower Inc.		Equity Real Estate Investment Trusts (REITs)		8,372		538,487
	West Pharmaceutical Services Inc.		Life Sciences Tools & Services		1,274		313,506
a	Western Digital Corp.		Technology Hardware, Storage & Peripherals		5,460		177,723
	Westinghouse Air Brake Technologies Corp.		Machinery		3,276		266,503
	Westlake Corp.		Chemicals		546		47,436
	Westrock Co.		Containers & Packaging		4,914		151,793
	Weyerhaeuser Co.		Equity Real Estate Investment Trusts (REITs)		13,104		374,250
	Whirlpool Corp.		Household Durables		1,092		147,213
	Williams Companies Inc.		Oil, Gas & Consumable Fuels		21,840		625,279



franklintempleton.com	Semiannual Report	19

FRANKLIN TEMPLETON ETF TRUST

SCHEDULE OF INVESTMENTS (UNAUDITED)

Franklin U.S. Equity Index ETF (continued)



		Industry		Shares		Value
	Common Stocks (continued)
	United States (continued)
	Willis Towers Watson PLC		Insurance		2,002	$	402,282
a	Workday Inc., A		Software		3,640		554,081
	WP Carey Inc.		Equity Real Estate Investment Trusts (REITs)		3,822		266,776
a	Wynn Resorts Ltd.		Hotels, Restaurants & Leisure		1,820		114,715
	Xcel Energy Inc.		Electric Utilities		9,646		617,344
	Xylem Inc.		Machinery		3,276		286,191
	Yum! Brands Inc.		Hotels, Restaurants & Leisure		5,096		541,909
a	Zebra Technologies Corp., A		Electronic Equipment, Instruments & Components		910		238,429
a	Zillow Group Inc., A		Real Estate Management & Development		1,274		36,475
a	Zillow Group Inc., C		Real Estate Management & Development		2,730		78,105
	Zimmer Biomet Holdings Inc.		Health Care Equipment & Supplies		3,640		380,562
	Zions Bancorp NA		Banks		2,730		138,848
	Zoetis Inc.		Pharmaceuticals		8,372		1,241,484
a	Zoom Video Communications Inc., A		Software		4,004		294,654
a	ZoomInfo Technologies Inc., A		Interactive Media & Services		4,914		204,717
a	Zscaler Inc.		Software		1,456		239,323


							562,101,405

	Total Common Stocks (Cost $624,323,734)						566,763,654

	Preferred Stocks 0.0%^†
	Brazil 0.0%^†
b,d	Companhia Energetica de Minas Gerais, 12.825%, pfd.		Electric Utilities		1		2

	Russia 0.0%^†
b,d	Surgutneftegas PJSC, pfd.		Oil, Gas & Consumable Fuels		10,688		—

	Total Preferred Stocks (Cost $6,130)						2

	Total Investments before Short Term Investments (Cost $624,329,864)						566,763,656

	Short-Term Investments 0.0%^†
	Investments from Cash Collateral Received for Loaned Securities 0.0%^†
	United States 0.0%^†
e,f	Institutional Fiduciary Trust Portfolio, 2.45%		Money Market Funds		235,865		235,865

	Total Short-Term Investments (Cost $235,865)						235,865

	Total Investments (Cost $624,565,729) 99.9%						566,999,521
	Other Assets, less Liabilities 0.1%						590,152

	Net Assets 100.0%					$	567,589,673

^†Rounds to less than 0.1% of net assets.

^aNon-income producing.

^bFair valued using significant unobservable inputs. See Note 9 regarding fair value measurements.

^cA portion or all of the security is on loan at September 30, 2022. See Note 1(d).

^dVariable rate security. The rate shown represents the yield at period end.

^eThe rate shown is the annualized seven-day effective yield at period end.

^fSee Note 3(c) regarding investments in affiliated management investment companies.



20	Semiannual Report	franklintempleton.com

FRANKLIN TEMPLETON ETF TRUST

SCHEDULE OF INVESTMENTS (UNAUDITED)

Franklin U.S. Equity Index ETF (continued)

At September 30, 2022, the Fund had the following futures contracts outstanding. See Note 1(b).

Futures Contracts

Description

Type

Number of
Contracts

Notional
Amount*

Expiration
Date

Value/Unrealized
Appreciation
(Depreciation)

Index Contracts

S&P 500 E-Mini

Long

720,300

12/16/22

(69,808

)

*As of period end.

See Note 8 regarding other derivative information

See Abbreviations on page 32.



franklintempleton.com	The accompanying notes are an integral part of these financial statements. \| Semiannual Report	21

FRANKLIN TEMPLETON ETF TRUST

FINANCIAL STATEMENTS

Statements of Assets and Liabilities

September 30, 2022 (unaudited)

Franklin U.S. Equity Index ETF



Assets:
Investments in securities:
Cost – Unaffiliated issuers	$	624,329,864
Cost – Non-controlled affiliates (Note 3c)		235,865
Value – Unaffiliated issuers⁺	$	566,763,656
Value – Non-controlled affiliates (Note 3c)		235,865
Cash		589,895
Foreign currency, at value (cost $862)		842
Receivables:
Capital shares sold		183,998,633
Dividends		309,364
Deposits with brokers for:
Futures contracts		40,000

Total assets		751,938,255

Liabilities:
Payables:
Investment securities purchased		184,091,988
Management fees		10,217
Variation margin on futures contracts		10,512
Payable upon return of securities loaned		235,865

Total liabilities		184,348,582

Net assets, at value	$	567,589,673

Net assets consist of:
Paid-in capital	$	623,666,182
Total distributable earnings (loss)		(56,076,509	)

Net assets, at value	$	567,589,673

Shares outstanding		18,200,000

Net asset value per share	$	31.19

⁺Includes securities loaned	$	230,950



22	Semiannual Report \| The accompanying notes are an integral part of these financial statements.	franklintempleton.com

FRANKLIN TEMPLETON ETF TRUST

FINANCIAL STATEMENTS

Statements of Operations

for the period ended September 30, 2022 (unaudited)

Franklin U.S. Equity Index ETF



Investment income:
Dividends: (net of foreign taxes)^a
Unaffiliated issuers	$	946,669
Interest:
Unaffiliated issuers		739
Interest from securities loaned (Note 1c):
Unaffiliated issuers (net of fees and rebates)		1,278

Total investment income		948,686

Expenses:
Management fees (Note 3a)		30,320
Other		55

Total expenses		30,375
Expenses waived/paid by affiliates (Note 3c)		(6	)

Net expenses		30,369

Net investment income		918,317

Realized and unrealized gains (losses):
Net realized gain (loss) from:
Investments:
Unaffiliated issuers		(463,612	)
In-kind redemptions		1,657,890
Foreign currency transactions		(5,275	)
Futures contracts		(194,605	)

Net realized gain (loss)		994,398

Net change in unrealized appreciation (depreciation) on:
Investments:
Unaffiliated issuers		(60,555,354	)
Translation of other assets and liabilities denominated in foreign currencies		(801	)
Futures contracts		(70,222	)
Change in deferred taxes on unrealized appreciation		3,475

Net change in unrealized appreciation (depreciation)		(60,622,902	)

Net realized and unrealized gain (loss)		(59,628,504	)

Net increase (decrease) in net assets resulting from operations	$	(58,710,187	)


^aForeign taxes withheld on dividends	$	13,332



franklintempleton.com	The accompanying notes are an integral part of these financial statements. \| Semiannual Report	23

FRANKLIN TEMPLETON ETF TRUST

FINANCIAL STATEMENTS

Statements of Changes in Net Assets

Franklin U.S. Equity Index ETF



	Six Months Ended September 30, 2022 (unaudited)			Year Ended March 31, 2022
Increase (decrease) in net assets:
Operations:
Net investment income	$	918,317		$	421,555
Net realized gain (loss)		994,398			732,588
Net change in unrealized appreciation (depreciation)		(60,622,902	)		201,548

Net increase (decrease) in net assets resulting from operations		(58,710,187	)		1,355,691

Distributions to shareholders (Note 1e)		(393,381	)		(401,042	)

Capital share transactions: (Note 2)		610,679,206			—

Net increase (decrease) in net assets		551,575,638			954,649
Net assets:
Beginning of period		16,014,035			15,059,386

End of period	$	567,589,673		$	16,014,035



24	Semiannual Report \| The accompanying notes are an integral part of these financial statements.	franklintempleton.com

FRANKLIN TEMPLETON ETF TRUST

Notes to Financial Statements (unaudited)

1. Organization and Significant Accounting Policies

Franklin Templeton ETF Trust (Trust) is registered under the Investment Company Act of 1940 (1940 Act) as an open-end management investment company, consisting of forty-five separate funds, seven of which are included in this report (Funds) and applies the specialized accounting and reporting guidance in U.S. Generally Accepted Accounting Principles (U.S. GAAP). The Fund is an exchange traded fund (ETF) and seek to provide the investment results that closely correspond, before fees and expenses, to the performance of Fund corresponding underlying index.

Effective August 1, 2022 the Franklin LibertyQ Global Equity ETF changed its name to Franklin U.S. Equity Index ETF.

The following summarizes the Fund’s significant accounting policies.

a. Financial Instrument Valuation

The Fund’s investments in financial instruments are carried at fair value daily. Fair value is the price that would be received to sell an asset or paid to transfer a liability in an orderly transaction between market participants on the measurement date. The Fund calculates the net asset value (NAV) per share each business day as of 4 p.m. Eastern time or the regularly scheduled close of the New York Stock Exchange (NYSE), whichever is earlier. Under compliance policies and procedures approved by the Fund’s Board of Trustees (the Board), the Board has designated the Fund’s investment manager as the valuation designee and has responsibility for oversight of valuation. The investment manager is assisted by the Fund’s administrator in performing this responsibility, including leading the cross-functional Valuation Committee (VC).

The Fund may utilize independent pricing services, quotations from securities and financial instrument dealers, and other market sources to determine fair value.

Equity securities, exchange trade funds and derivative financial instruments listed on an exchange or on the NASDAQ National Market System are valued at the last quoted sale price or the official closing price of the day, respectively. Foreign equity securities are valued as of the close of trading on the foreign stock exchange on which the security is primarily traded or as of 4 p.m. Eastern time. The value is then converted into its U.S. dollar equivalent at the foreign exchange rate in effect at 4 p.m. London time on the day that the value

of the security is determined. Over-the-counter (OTC) securities are valued within the range of the most recent quoted bid and ask prices. Securities that trade in multiple markets or on multiple exchanges are valued according to the broadest and most representative market. Certain equity securities are valued based upon fundamental characteristics or relationships to similar securities.

Investments in open-end mutual funds are valued at the closing NAV.

Certain derivative financial instruments are centrally cleared or trade in the OTC market. The Funds’ pricing services use various techniques including industry standard option pricing models and proprietary discounted cash flow models to determine the fair value of those instruments. The Funds’ net benefit or obligation under the derivative contract, as measured by the fair value of the contract, is included in net assets.

The Fund have procedures to determine the fair value of financial instruments for which market prices are not reliable or readily available. Under these procedures, the Fund primarily employ a market-based approach which may use related or comparable assets or liabilities, recent transactions, market multiples, book values, and other relevant information for the investment to determine the fair value of the investment. An income-based valuation approach may also be used in which the anticipated future cash flows of the investment are discounted to calculate fair value. Discounts may also be applied due to the nature or duration of any restrictions on the disposition of the investments. Due to the inherent uncertainty of valuations of such investments, the fair values may differ significantly from the values that would have been used had an active market existed.

Trading in securities on foreign securities stock exchanges and OTC markets may be completed before 4 p.m. Eastern time. In addition, trading in certain foreign markets may not take place on Fund business day. Occasionally, events occur between the time at which trading in a foreign security is completed and 4 p.m. Eastern time that might call into question the reliability of the value of a portfolio security held by the Fund. As a result, differences may arise between the value of the Fund’s portfolio securities as determined at the foreign market close and the latest indications of value at 4 p.m. Eastern time. In order to minimize the potential for these differences, an independent pricing service may be used to adjust the Fund’s portfolio securities to the latest indications of fair value at 4 p.m. Eastern time on September 30, 2022.



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FRANKLIN TEMPLETON ETF TRUST

NOTES TO FINANCIAL STATEMENTS (UNAUDITED)

Franklin U.S. Equity Index ETF (continued)

1. Organization and Significant Accounting Policies (continued)

a. Financial Instrument Valuation (continued)

At September 30, 2022, certain securities may have been fair valued using these procedures, in which case the securities were categorized as Level 2 inputs within the fair value hierarchy (referred to as “market level fair value”).

When the last day of the reporting period is a non-business day, certain foreign markets may be open on those days that the Fund’s NAV is not calculated, which could result in differences between the value of the Fund’s portfolio securities on the last business day and the last calendar day of the reporting period. Any significant security valuation changes due to an open foreign market are adjusted and reflected by the Fund for financial reporting purposes.

b. Derivative Financial Instruments

Certain or all Fund invested in derivative financial instruments in order to manage risk or gain exposure to various other investments or markets. Derivatives are financial contracts based on an underlying or notional amount, require no initial investment or an initial net investment that is smaller than would normally be required to have a similar response to changes in market factors, and require or permit net settlement. Derivatives contain various risks including the potential inability of the counterparty to fulfill their obligations under the terms of the contract, the potential for an illiquid secondary market, and/or the potential for market movements which expose the Fund to gains or losses in excess of the amounts shown in the Statements of Assets and Liabilities. Realized gain and loss and unrealized appreciation and depreciation on these contracts for the period are included in the Statements of Operations.

Derivative counterparty credit risk is managed through a formal evaluation of the creditworthiness of all potential counterparties. Fund attempt to reduce their exposure to counterparty credit risk on OTC derivatives, whenever possible, by entering into International Swaps and Derivatives Association (ISDA) master agreements with certain counterparties. These agreements contain various provisions, including but not limited to collateral requirements, events of default, or early termination. Termination events applicable to the counterparty include certain deteriorations in the credit quality of the counterparty.

Termination events applicable to the Fund include failure of the Fund to maintain certain net asset levels and/or limit the decline in net assets over various periods of time. In the event of default or early termination, the ISDA master agreement gives the non-defaulting party the right to net and close-out all transactions traded, whether or not arising under the ISDA agreement, to one net amount payable by one counterparty to the other. However, absent an event of default or early termination, OTC derivative assets and liabilities are presented gross and not offset in the Statements of Assets and Liabilities. Early termination by the counterparty may result in an immediate payment by the Fund of any net liability owed to that counterparty under the ISDA agreement.

Collateral requirements differ by type of derivative. Collateral terms are contract specific for OTC derivatives. For OTC derivatives traded under an ISDA master agreement, posting of collateral is required by either the Fund or the applicable counterparty if the total net exposure of all OTC derivatives with the applicable counterparty exceeds the minimum transfer amount, which typically ranges from $100,000 to $250,000, and can vary depending on the counterparty and the type of agreement. Generally, collateral is determined at the close of Fund business each day and any additional collateral required due to changes in derivative values may be delivered by the Fund or the counterparty the next business day, or within a few business days. Collateral pledged and/or received by the Fund, if any, is held in segregated accounts with the Fund’s custodian/counterparty broker and can be in the form of cash and/or securities. Unrestricted cash may be invested according to the Fund’s investment objectives. To the extent that the amounts due to the Fund from its counterparties are not subject to collateralization or are not fully collateralized, the Fund bears the risk of loss from counterparty non-performance.

The Fund entered into exchange traded futures contracts primarily to manage and/or gain exposure to equity price risk. A futures contract is an agreement between the Fund and a counterparty to buy or sell an asset at a specified price on a future date. Required initial margins are pledged by the Fund, and the daily change in fair value is accounted for as a variation margin payable or receivable in the Statements of Assets and Liabilities.

The Fund entered into OTC forward exchange contracts primarily to manage and/or gain exposure to certain foreign currencies. A forward exchange contract is an agreement



26	Semiannual Report	franklintempleton.com

FRANKLIN TEMPLETON ETF TRUST

NOTES TO FINANCIAL STATEMENTS (UNAUDITED)

Franklin U.S. Equity Index ETF (continued)

between the Fund and a counterparty to buy or sell a foreign currency at a specific exchange rate on a future date.

See Note 8 regarding other derivative information.

c. Securities Lending

The Fund participate in an agency based securities lending program to earn additional income. The Fund receives cash collateral against the loaned securities in an amount equal to at least 102% of the fair value of the loaned securities. Collateral is maintained over the life of the loan in an amount not less than 100% of the fair value of loaned securities, as determined at the close of Fund business each day; any additional collateral required due to changes in security values is delivered to the Fund on the next business day. The collateral is deposited into a joint cash account with other funds and is used to invest in a money market fund managed by Franklin Advisers, Inc., an affiliate of the Fund. These securities received as collateral are held in segregated accounts with the Fund’s custodian. The Fund cannot repledge or resell these securities received as collateral. As such, the non-cash collateral is excluded from the Statements of Assets and Liabilities. The Fund may receive income from the investment of cash collateral, in addition to lending fees and rebates paid by the borrower. Income from securities loaned, net of fees paid to the securities lending agent and/or third-party vendor, is reported separately in the Statements of Operations. The Fund bears the market risk with respect to the collateral investment, securities loaned, and the risk that the agent may default on its obligations to the Fund. If the borrower defaults on its obligation to return the securities loaned, the Fund has the right to repurchase the securities in the open market using the collateral received. The securities lending agent has agreed to indemnify the Fund in the event of default by a third party borrower.

d. Income and Deferred Taxes

It is Fund’s policy to qualify as a regulated investment company under the Internal Revenue Code. The Fund intends to distribute to shareholders substantially all of its taxable income and net realized gains to relieve it from federal income and excise taxes. As a result, no provision for U.S. federal income taxes is required.

The Fund may be subject to foreign taxation related to income received, capital gains on the sale of securities and certain foreign currency transactions in the foreign

jurisdictions in which the Fund invest. Foreign taxes, if any, are recorded based on the tax regulations and rates that exist in the foreign markets in which the Fund invest. When a capital gain tax is determined to apply, Fund record an estimated deferred tax liability in an amount that would be payable if the securities were disposed of on the valuation date.

The Fund may recognize an income tax liability related to its uncertain tax positions under U.S. GAAP when the uncertain tax position has a less than 50% probability that it will be sustained upon examination by the tax authorities based on its technical merits. As of September 30, 2022, Fund has determined that no tax liability is required in its financial statements related to uncertain tax positions for any open tax years (or expected to be taken in future tax years). Open tax years are those that remain subject to examination and are based on the statute of limitations in each jurisdiction in which the Fund invests.

e. Security Transactions, Investment Income, Expenses and Distributions

Security transactions are accounted for on trade date. Realized gains and losses on security transactions are determined on a specific identification basis. Interest Income and estimated expenses are accrued daily. Dividend income is recorded on the ex-dividend date except for certain dividends from securities where the dividend rate is not available. In such cases, the dividend is recorded as soon as the information is received by the Fund. Distributions to shareholders are recorded on the ex-dividend date.

Distributable earnings are determined according to income tax regulations (tax basis) and may differ from earnings recorded in accordance with U.S. GAAP. These differences may be permanent or temporary. Permanent differences are reclassified among capital accounts to reflect their tax character. These reclassifications have no impact on net assets or the results of operations. Temporary differences are not reclassified, as they may reverse in subsequent periods.

Common expenses incurred by the Trust are allocated the Fund based on the ratio of net assets of Fund to the combined net assets of the Trust. Certain Fund specific expenses are allocated directly to the Fund that incurred the expense. These expenses are paid by the Fund or by the investment manager, as applicable, according to the terms of the unified management fee agreement.



franklintempleton.com	Semiannual Report	27

FRANKLIN TEMPLETON ETF TRUST

NOTES TO FINANCIAL STATEMENTS (UNAUDITED)

Franklin U.S. Equity Index ETF (continued)

1. Organization and Significant Accounting Policies (continued)

f. Accounting Estimates

The preparation of financial statements in accordance with U.S. GAAP requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities at the date of the financial statements and the amounts of income and expenses during the reporting period. Actual results could differ from those estimates.

g. Guarantees and Indemnifications

Under the Trust’s organizational documents, its officers and trustees are indemnified by the Trust against certain liabilities arising out of the performance of their duties to the Trust. Additionally, in the normal course of business, the Trust, on behalf of the Fund, enters into contracts with service providers that contain general indemnification clauses. The Trust’s maximum exposure under these arrangements is unknown as this would involve future claims that may be made against the Trust that have not yet occurred. Currently, the Trust expects the risk of loss to be remote.

2. Shares of Beneficial Interest

Shares of the Fund is issued and redeemed at their respective NAV only in aggregations of a specified number of shares or multiples thereof (Creation Units). Only certain large institutional investors (Authorized Participants) may engage in creation or redemption transactions directly with the Fund. Once created, shares of the Fund generally trade in the secondary market in amounts less than one Creation Unit. The market price of the Fund’s shares will be based on the price in the secondary market which may be at, above or below the most recent NAV. Creation Units may be issued and redeemed in exchange for a designated portfolio of securities and/or cash (which may include cash in lieu of certain securities).

Authorized participants pay a standard transaction fee to the shareholder servicing agent when purchasing or redeeming Creation Units of the Funds regardless of the number of Creation Units that are being created or redeemed on the same day by the Authorized Participant. The standard transaction fee is imposed to offset transfer and other transaction costs associated with the issuance and redemption of Creation Units and is not charged to or paid by the Fund.

In addition, for cash Creation Unit transactions, a variable fee for creation transactions and redemption transactions may be charged to the Authorized Participant to cover certain brokerage, tax, foreign exchange, execution, market impact and other costs and expenses related to the execution of trades. Variable fees, if any, are included in capital share transactions in the Statements of Changes in Net Assets.

At September 30, 2022, there were an unlimited number of shares authorized (without par value). Transactions in the Fund’s shares were as follows:



	Six Months Ended September 30, 2022						Year Ended March 31, 2022

	Shares			Amount			Shares		Amount
Shares sold		18,000,000		$	617,785,946			—	$	—
Shares redeemed		(200,000	)		(7,106,740	)		—		—

Net increase (decrease)		17,800,000		$	610,679,206			—	$	—



28	Semiannual Report	franklintempleton.com

FRANKLIN TEMPLETON ETF TRUST

NOTES TO FINANCIAL STATEMENTS (UNAUDITED)

Franklin U.S. Equity Index ETF (continued)

3. Transactions with Affiliates

Franklin Resources, Inc. is the holding company for various subsidiaries that together are referred to as Franklin Templeton. Certain officers and trustees of the Fund are also officers and/or directors of the following subsidiaries:



Subsidiary		Affiliation
Franklin Advisers, Inc. (Advisers)		Investment manager
Franklin Advisory Services, LLC (FASL)		Investment manager
Franklin Templeton Services, LLC (FT Services)		Administrative manager
Franklin Templeton Distributors, LLC (Distributors)		Principal underwriter

a. Management fees

The Fund pay a unified management fee to Advisers whereby Advisers has agreed to reimburse the Fund’s acquired fund fees and expenses (if any) and pay all of the ordinary operating expenses of the Fund, including custody, transfer agency, and Trustee fees and expenses, among others, but excluding payments under the Fund’s Rule 12b-1 plan (if any), brokerage expenses (including any costs incidental to transactions in portfolio securities or instruments), taxes, interest (including borrowing costs and dividend expenses on securities sold short and overdraft charges), litigation expenses (including litigation to which the Trust or a Fund may be a party and indemnification of the Trustees and officers with respect thereto), and other non-routine or extraordinary expenses. For the period April 1, 2022 through July 31, 2022 the annualized fee rate was 0.35% and for the period August 1, 2022 through September 30, 2022 the annualized fee rate was 0.03%. For the period ended September 30, 2022, the Fund’s annualized effective investment management fee rate based on average daily net assets was 0.06%.

b. Administrative Fees

Under an agreement with Advisers, FT Services provides administrative services to the Fund. The fee is paid by Advisers based on the Fund’s average daily net assets, and is not an additional expense of the Fund.

c. Investments in Affiliated Management Investment Companies

The Fund invest in one or more affiliated management investment companies. As defined in the 1940 Act, an investment is deemed to be a “Controlled Affiliate” of a fund when a fund owns, either directly or indirectly, 25% or more of the affiliated fund’s outstanding shares or has the power to exercise control over management or policies of such fund. The Fund do not invest for purposes of exercising a controlling influence over the management or policies. Management fees paid by the Fund are waived on assets invested in the affiliated management investment companies, as noted in the Statements of Operations, in an amount not to exceed the management and administrative fees paid directly or indirectly by each affiliate. During the period ended September 30, 2022, investments in affiliated management investment companies were as follows:



	Value at Beginning of Period		Purchases		Sales			Realized Gain (Loss)		Net Change in Unrealized Appreciation (Depreciation)		Value at End of Period		Number of Shares Held at End of Period		Investment Income
Non-Controlled Affiliates																Income from Securities loaned

Institutional Fiduciary Trust Money Market Portfolio 2.45%	$	—	$	377,854	$	(141,989	)	$	—	$	—	$	235,865		235,865	$	—



franklintempleton.com	Semiannual Report	29

FRANKLIN TEMPLETON ETF TRUST

NOTES TO FINANCIAL STATEMENTS (UNAUDITED)

Franklin U.S. Equity Index ETF (continued)

4. Income Taxes

For tax purposes, capital losses may be carried over to offset future capital gains, if any. At March 31, 2022, the capital loss carryforwards were as follows:


Capital loss carryforwards not subject to expiration:
Short term	$	44,445

Total capital loss carryforwards	$	44,445

At September 30, 2022, the cost of investments and net unrealized appreciation (depreciation) for income tax purposes were as follows:


Cost of investments	$	624,565,729

Unrealized appreciation	$	532,954
Unrealized depreciation		(58,099,163	)

Net unrealized appreciation (depreciation) .	$	(57,566,209	)

Differences between income and/or capital gains as determined on a book basis and a tax basis are primarily due to differing treatments of passive foreign investment company shares and wash sales.

5. Investment Transactions

Purchases and sales of investments (excluding short term securities and in-kind transactions, if any) for the period ended September 30, 2022, $17,858,516 and $14,384,253, respectively.

In-kind transactions associated with creation and redemptions for the period ended September 30, 2022, $611,027,254 and $7,052,309, respectively.

At September 30, 2022, in connection with securities lending transactions, Fund loaned investments and received cash collateral for Equity Investments are $235,865.

6. Concentration of Risk

Investing in foreign securities may include certain risks and considerations not typically associated with investing in U.S. securities, such as fluctuating currency values and changing local, regional and global economic, political and social conditions, which may result in greater market volatility. Political and financial uncertainty in many foreign regions may increase market volatility and the economic risk of investing in foreign securities. In addition, certain foreign securities may not be as liquid as U.S. securities.



30	Semiannual Report	franklintempleton.com

FRANKLIN TEMPLETON ETF TRUST

NOTES TO FINANCIAL STATEMENTS (UNAUDITED)

Franklin U.S. Equity Index ETF (continued)

investments was impaired. The Fund could determine at any time that certain of the most affected securities have little or no 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.

7. Novel Coronavirus Pandemic

The global outbreak of the novel coronavirus disease, known as COVID-19, has caused adverse effects on many companies, sectors, nations, regions and the markets in general, and may continue for an unpredictable duration. The effects of this pandemic may materially impact the value and performance of the Fund, their ability to buy and sell fund investments at appropriate valuations and their ability to achieve their investment objectives.

8. Other Derivative Information

At September 30, 2022, the Fund’s investments in derivative contracts are reflected in the Statements of Assets and Liabilities as follows:

Asset Derivatives

Liability Derivatives

Statements of Assets and
Liabilities Location

Fair Value

Statements of Assets and
Liabilities Location

Fair Value

Index contracts

Variation margin on futures contracts

—

Variation margin on futures contracts

69,808

^aThis amount reflects the cumulative appreciation (depreciation) of future contracts as reported in the Schedule of Investments. Only the variation margin receivable/payable at year end is separately reported within the Statements of Assets and Liabilities. Prior variation margin movements were recorded to cash upon receipt or payment.

For the period ended September 30, 2022, the effect of derivative contracts in the Fund’s Statements of Operations was as follows:

Derivative Contracts
Not Accounted for as
Hedging Instruments

Statements of
Operations Locations

Net Realized
Gain (Loss)
for the Period

Statements of
Operations Locations

Net Change in
Unrealized
Appreciation
(Depreciation)
for the Period

Net realized gain (loss) from:

Net change in unrealized appreciation (depreciation) on:

Equity contracts

Futures contracts

(194,605

)

Futures contracts

(70,222

)

For the period ended September 30, 2022, the average month end notional amount of futures contracts and average month end contract value for forward exchange contracts represented $515,730.

See Note 1(b) regarding derivative financial instruments.



franklintempleton.com	Semiannual Report	31

FRANKLIN TEMPLETON ETF TRUST

NOTES TO FINANCIAL STATEMENTS (UNAUDITED)

Franklin U.S. Equity Index ETF (continued)

9. Fair Value Measurements

The Fund follow a fair value hierarchy that distinguishes between market data obtained from independent sources (observable inputs) and the Fund’s own market assumptions (unobservable inputs). These inputs are used in determining the value of the Fund’s financial instruments and are summarized in the following fair value hierarchy:

•

Level 1 – quoted prices in active markets for identical financial instruments

•

Level 2 – other significant observable inputs (including quoted prices for similar financial instruments, interest rates, prepayment speed, credit risk, etc.)

•

Level 3 – significant unobservable inputs (including the Fund’s own assumptions in determining the fair value of financial instruments)

The input levels are not necessarily an indication of the risk or liquidity associated with financial instruments at that level.

A summary of inputs used as of September 30, 2022, in valuing the Fund’s assets and liabilities carried at fair value, is as follows:



	Level 1		Level 2		Level 3			Total

Franklin U.S. Equity Index ETF

Assets:
Investments in Securities:^a
Equity Investments^b	$	566,763,656	$	—	$	—	^c	$	566,763,656
Short-Term Investments		235,865		—		—			235,865

Total Investments in Securities	$	566,999,521	$	—	$	—		$	566,999,521


Liabilities:
Other Financial Instruments:
Futures Contracts	$	69,808	$	—	$	—		$	69,808

^aFor detailed categories, see the accompanying Schedule of Investments.

^bIncludes common and preferred stocks, warrants, as well as other equity investments.

^cIncludes securities determined to have no value at September 30, 2022.

10. Subsequent Events

The Fund have evaluated subsequent events through the issuance of these Financial Statements and determined that no events have occurred that require disclosure.

Abbreviations


Selected Portfolio
GDR		Global Depositary Receipt
SBA		Small Business Administration



32	Semiannual Report	franklintempleton.com

FRANKLIN TEMPLETON ETF TRUST

Shareholder Information

Board Approval of Investment Management Agreements

FRANKLIN TEMPLETON ETF TRUST

Franklin U.S. Equity Index ETF (formerly Franklin LibertyQ Global Equity ETF)

At a meeting held on May 25, 2022 (Meeting), the Board of Trustees (Board) of Franklin Templeton ETF Trust (Trust), including a majority of the trustees who are not “interested persons” as defined in the Investment Company Act of 1940 (Independent Trustees), reviewed and approved the continuance of the investment management agreement between Franklin Advisory Services, LLC (Manager) and the Trust, on behalf the Fund (each a Management Agreement) for an additional one-year period. The Independent Trustees received advice from and met separately with Independent Trustee counsel in considering whether to approve the continuation of each Management Agreement. Although the Management Agreements for the Funds were considered at the same Board meeting, the Board considered the information provided to it about the Funds together and with respect to Fund separately as the Board deemed appropriate.

In considering the continuation of each Management Agreement, the Board reviewed and considered information provided by the Manager at the Meeting and throughout the year at meetings of the Board and its committees. The Board also reviewed and considered information provided in response to a detailed set of requests for information submitted to the Manager by Independent Trustee counsel on behalf of the Independent Trustees in connection with the annual contract renewal process. In addition, prior to the Meeting, the Independent Trustees held a virtual contract renewal meeting at which the Independent Trustees conferred amongst themselves and Independent Trustee counsel about contract renewal matters and, subsequently, requested additional information from management that the Independent Trustees reviewed and considered at the Meeting. The Board reviewed and considered all of the factors it deemed relevant in approving the continuance of each Management Agreement, including, but not limited to: (i) the nature, extent and quality of the services provided by the Manager; (ii) the investment performance of Fund, as well as Fund’s tracking error against a specified benchmark index as of a recent period; (iii) the costs of the services provided and profits realized by the Manager and its affiliates from the relationship with the Fund; (iv) the extent to which economies of

scale are realized as each Fund grows; and (v) whether fee levels reflect these economies of scale for the benefit of Fund investors.

In approving the continuance of each Management Agreement, the Board, including a majority of the Independent Trustees, determined that the terms of each Management Agreement are fair and reasonable and that the continuance of such Management Agreement is in the best interests of the applicable Fund and its shareholders. While attention was given to all information furnished, the following discusses some primary factors relevant to the Board’s determination.

Nature, Extent and Quality of Services

The Board reviewed and considered information regarding the nature, extent and quality of investment management services provided by the Manager and its affiliates to the Fund and their shareholders. This information included, among other things, the qualifications, background and experience of the senior management and investment personnel of the Manager; the structure of investment personnel compensation; oversight of third-party service providers; investment performance reports and related financial information for the Fund; reports on expenses; legal and compliance matters; risk controls; pricing and other services provided by the Manager and its affiliates; and management fees charged by the Manager and its affiliates to US funds and other accounts, including management’s explanation of differences among accounts where relevant. The Board acknowledged the ongoing integration of the Legg Mason family of funds into the Franklin Templeton (FT) family of funds, and developing strategies to address areas of heightened concern in the registered fund industry, including various regulatory initiatives and recent geopolitical concerns.

The Board also reviewed and considered the benefits provided to Fund shareholders of investing in a fund that is part of the FT family of funds. The Board noted the financial position of Franklin Resources, Inc. (FRI), the Manager’s parent, and its commitment to the registered fund business as evidenced by its continued introduction of new funds, reassessment of the fund offerings in response to the market environment and project initiatives and capital investments relating to the services provided to the Fund’s by the FT organization. The Board specifically noted FT’s commitment to being a global leader in stewardship and sustainability and the recent addition of a senior executive focused on environmental, social and governance and climate control initiatives.



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Following consideration of such information, the Board was satisfied with the nature, extent and quality of services provided by the Manager and its affiliates to the Fund’s and their shareholders.

Fund Performance

The Board reviewed and considered the performance results of the Fund for various time periods ended February 28, 2022. The Board considered the performance returns for the Fund in comparison to the performance returns of registered fund deemed comparable to the Fund included in a universe (Performance Universe) selected by Broadridge Financial Solutions, Inc. (Broadridge), an independent provider of investment company data. The Board received a description of the methodology used by Broadridge to select the registered fund included in a Performance Universe. The Board also reviewed and considered Fund performance reports provided and discussions that occurred with portfolio managers at Board meetings throughout the year. The Board noted its ongoing discussions with management about the performance of the Fund to date, particularly as compared to peers, the importance of performance to asset growth and growth of market share, and the performance of the Fund in periods of volatility. In addition, the Board acknowledged information provided regarding management’s strategy behind the overall product line up, the sources of asset growth, the nature of management’s research, potential use of innovative data and technology, and investments in marketing and distribution. Finally, the Board noted management’s high level of client engagement and the strength of its compliance program. A summary of Fund’s performance results is below.

Franklin U.S. Equity Index ETF (The information and data included below for the Fund is with respect to the Fund’s name, investment goal and strategies prior to the August 1, 2022 Fund Repositioning – The Performance Universe for the Fund included the Fund and all retail and institutional global multi-cap core funds and exchange-traded funds. The Fund commenced operations on June 1, 2016, and thus has been in operation for less than 10 years. The Board noted that the Fund’s annualized total return for the one- and five-year periods was above the median of its Performance Universe, but for the three-year period was below the median of its Performance Universe. The Board further noted that, in light of the Fund’s use of a “passive” or indexing investment approach, management evaluates the Fund based on its tracking error against a specified benchmark. The Board noted that for the one-year period ended February 28, 2022, the Fund’s tracking error was within the

tolerance anticipated for the Fund. The Board further considered and approved implementing the Fund Repositioning for the Fund, noting management’s representation that the Fund would be repositioned as a low-cost, market capitalization-weighted, index-based ETF investing in large- and mid-capitalization US stocks. The Board concluded that the Fund’s performance was satisfactory.

Comparative Fees and Expenses

The Board reviewed and considered information regarding the Fund’s actual total expense ratio, noting that Fund pays a Unified Fee (as defined below). The Board considered the actual total expense ratio and, separately, the contractual management fee rate, without the effect of fee waivers, if any (Management Rate) of the Fund in comparison to the median expense ratio and median Management Rate, respectively, of other exchange-traded funds deemed comparable to and with a similar expense structure to the Fund selected by Broadridge (Expense Group). Broadridge fee and expense data is based upon information taken from fund’s most recent annual or semi-annual report, which reflects historical asset levels that may be quite different from those currently existing, particularly in a period of market volatility. While recognizing such inherent limitation and the fact that expense ratios and Management Rates generally increase as assets decline and decrease as assets grow, the Board believed the independent analysis conducted by Broadridge to be an appropriate measure of comparative fees and expenses. The Broadridge Management Rate includes administrative charges. The Board received a description of the methodology used by Broadridge to select the exchange-traded funds included in an Expense Group.

Franklin U.S. Equity Index ETF – The Expense Group for the Fund was comprised of strategic beta exchange-traded funds, which included the Fund, one other global multi-cap core fund, and two global multi-cap value funds. The Board noted that the Management Rate for the Fund was equal the median of its Expense Group, and that the actual total expense ratio for the Fund was below the median of its Expense Group. The Board also noted the small size of the Fund’s Expense Group. The Board further noted that the Fund has a Unified Fee and the terms of the Unified Fee Arrangement. The Board further considered and approved management’s proposed reduction in the Fund’s Management Rate from 0.35% to 0.03% in connection with the Fund Repositioning. The Board concluded that the Management Rate charged to the Fund is reasonable.



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Profitability

The Board reviewed and considered information regarding the profits realized by the Manager and its affiliates in connection with the operation of the Fund. In this respect, the Board considered the Fund profitability analysis that addresses the overall profitability of FT’s US fund business, as well as its profits in providing investment management and other services to each of the individual funds during the 12-month period ended September 30, 2021, being the most recent fiscal year-end for FRI. The Board noted that although management continually makes refinements to its methodologies used in calculating profitability in response to organizational and product-related changes, the overall methodology has remained consistent with that used in the Fund’s profitability report presentations from prior years. The Board also noted that PricewaterhouseCoopers LLP, auditor to FRI and certain FT funds, has been engaged to periodically review and assess the allocation methodologies to be used solely by the Funds’ Board with respect to the profitability analysis.

The Board noted management’s belief that costs incurred in establishing the infrastructure necessary for the type of fund operations conducted by the Manager and its affiliates may not be fully reflected in the expenses allocated to each Fund in determining its profitability, as well as the fact that the level of profits, to a certain extent, reflected operational cost savings and efficiencies initiated by management. As part of this evaluation, the Board considered management’s outsourcing of certain operations, which effort has required considerable up-front expenditures but, over the long run, is expected to result in greater efficiencies. The Board also noted management’s expenditures in improving shareholder services provided to the Fund, as well as the need to implement systems and meet additional regulatory and compliance requirements resulting from recent US Securities and Exchange Commission and other regulatory requirements.

The Board also considered the extent to which the Manager and its affiliates might derive ancillary benefits from fund operations, including potential benefits resulting from personnel and systems enhancements necessitated by fund growth, as well as increased leverage with service providers and counterparties. Based upon its consideration of all these factors, the Board concluded that the level of profits realized by the Manager and its affiliates from providing services to the Fund was not excessive in view of the nature, extent and quality of services provided to the Fund.

Economies of Scale

The Board reviewed and considered the extent to which the Manager may realize economies of scale, if any, as the Fund grows larger and whether the Fund’s management fee structure reflects any economies of scale for the benefit of shareholders. The Board considered that Fund would likely experience benefits from the Unified Fee at the Fund’s projected asset levels because of the Manager’s contractual requirement to bear most of the Fund’s ordinary operating expenses. The Board noted that, under the Unified Fee, it is not anticipated that the Fund will generate significant, if any, profit for the Manager and/or its affiliates for some time. The Board also considered management’s view that any analyses of potential economies of scale in managing a particular fund are inherently limited in light of the joint and common costs and investments the Manager incurs across the FT family of funds as a whole. The Board also noted that, as of December 31, 2021, each Fund (except for the Franklin U.S. Large Cap Multifactor Index ETF) had net assets below $58 million. The Board also noted management’s representation that, while the Franklin U.S. Large Cap Multifactor Index ETF had net assets of approximately $1 billion as of December 31, 2021, none of the Funds experienced a profit for the fiscal year ended September 30, 2021. The Board recognized that there would not likely be any economies of scale for a Fund until the Fund’s assets grow.

Conclusion

Based on its review, consideration and evaluation of all factors it believed relevant, including the above-described factors and conclusions, the Board unanimously approved the continuation of each Management Agreement for an additional one-year period.

Liquidity Risk Management Program – Non-In-Kind ETFs

The Fund has adopted and implemented a written Liquidity Risk Management Program (the “LRMP”) as required by Rule 22e-4 under the Investment Company Act of 1940 (the “Liquidity Rule”). The LRMP for the Franklin Templeton and Legg Mason Funds is designed to assess and manage Fund’s liquidity risk, which is defined as the risk that the Fund could not meet requests to redeem shares issued by the Fund without significant dilution of remaining investors’ interests in the Fund. In accordance with the Liquidity Rule, the LRMP includes policies and procedures that provide for: (1) assessment, management, and review (no less frequently than annually) of Fund’s liquidity risk; (2) classification of Fund’s portfolio holdings into one of four liquidity categories



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(Highly Liquid, Moderately Liquid, Less Liquid, and Illiquid); (3) for Fund’s that do not primarily hold assets that are Highly Liquid, establishing and maintaining a minimum percentage of the Fund’s net assets in Highly Liquid investments (called a “Highly Liquid Investment Minimum” or “HLIM”); and (4) prohibiting the Fund’s acquisition of Illiquid investments that would result in the Fund holding more than 15% of its net assets in Illiquid assets. The LRMP also requires reporting to the Securities and Exchange Commission (“SEC”) (on a non-public basis) and to the Board if the Fund’s holdings of Illiquid assets exceed 15% of the Fund’s net assets. Funds with HLIMs must have procedures for addressing HLIM shortfalls, including reporting to the Board and, with respect to HLIM shortfalls lasting more than seven consecutive calendar days, reporting to the SEC (on a non-public basis).

The Director of Liquidity Risk within the Investment Risk Management Group (the “IRMG”) is the appointed Administrator of the LRMP. The IRMG maintains the Investment Liquidity Committee (the “ILC”) to provide oversight and administration of policies and procedures governing liquidity risk management for Franklin Templeton and Legg Mason products and portfolios. The ILC includes representatives from Franklin Templeton’s Risk, Trading, Global Compliance, Legal, Investment Compliance, Investment Operations, Valuation Committee, Product Management and Global Product Strategy.

In assessing and managing Fund’s liquidity risk, the ILC considers, as relevant, a variety of factors, including the Fund’s investment strategy and the liquidity of its portfolio investments during both normal and reasonably foreseeable stressed conditions; its short and long-term cash flow projections; and its cash holdings and access to other funding sources including the Fund’s interfund lending facility and line of credit. Classification of the Fund’s portfolio holdings in the four liquidity categories is based on the number of days it is reasonably expected to take to convert the investment to cash (for Highly Liquid and Moderately Liquid holdings) or sell or dispose of the investment (for Less Liquid and Illiquid investments), in current market conditions without significantly changing the investment’s market value.

Fund primarily holds liquid assets that are defined under the Liquidity Rule as “Highly Liquid Investments,” and therefore is not required to establish an HLIM. Highly Liquid Investments are defined as cash and any investment reasonably expected to be convertible to cash in current market conditions in three business days or less without the conversion to cash significantly changing the market value of the investment.

At meetings of the Funds’ Board of Trustees held in May 2022, the Program Administrator provided a written report to the Board addressing the adequacy and effectiveness of the program for the year ended December 31, 2021. The Program Administrator report concluded that (i.) the LRMP, as adopted and implemented, remains reasonably designed to assess and manage each Fund’s liquidity risk; (ii.) the LRMP, including the Highly Liquid Investment Minimum (“HLIM”) where applicable, was implemented and operated effectively to achieve the goal of assessing and managing each Fund’s liquidity risk; and (iii.) each Fund was able to meet requests for redemption without significant dilution of remaining investors’ interests in the Fund.

Proxy Voting Policies and Procedures

The Trust’s investment manager has established Proxy Voting Policies and Procedures (Policies) that the Trust uses to determine how to vote proxies relating to portfolio securities. Shareholders may view the Trust’s complete Policies online at franklintempleton.com. Alternatively, shareholders may request copies of the Policies free of charge by calling the Proxy Group collect at (954) 527-7678 or by sending a written request to: Franklin Templeton Companies, LLC, 300 S.E. 2nd Street, Fort Lauderdale, FL 33301, Attention: Proxy Group. Copies of the Trust’s proxy voting records are also made available online at franklintempleton.com and posted on the U.S. Securities and Exchange Commission’s website at sec.gov and reflect the most recent 12-month period ended June 30.

Quarterly Schedule of Investments

The Trust files a complete schedule of investments with the U.S. Securities and Exchange Commission for the first and third quarters for each fiscal year as an exhibit to its report on Form N-PORT. Shareholders may view the filed Form N-PORT by visiting the Commission’s website at sec.gov. The filed form may also be viewed and copied at the Commission’s Public Reference Room in Washington, DC. Information regarding the operations of the Public Reference Room may be obtained by calling (800) SEC-0330.

Premium/Discount Information

Information about the differences between the daily market price on the secondary market for the shares of each Fund and each Fund’s net asset value may be found on each Fund’s website at franklintempleton.com.



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