SEMIANNUAL REPORT
FRANKLIN TEMPLETON
ETF TRUST
September 30, 2021
Franklin LibertyQ Emerging Markets ETF |
Franklin LibertyQ U.S. Equity ETF | |
Franklin LibertyQ Global Dividend ETF |
Franklin LibertyQ U.S. Mid Cap Equity ETF | |
Franklin LibertyQ Global Equity ETF |
Franklin LibertyQ U.S. Small Cap Equity ETF | |
Franklin LibertyQ International Equity Hedged ETF |
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Not FDIC Insured | | | May Lose Value | | | No Bank Guarantee |
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SEMIANNUAL REPORT
Global developed and emerging market equities, as measured by the MSCI All Country World Index-NR (net of tax withholding when dividends are paid), posted a +6.26% total return for the six months ended September 30, 2021.1 Global equities benefited from the continued progress of vaccination programs for COVID-19, solid economic growth and a rebound in global trade. However, the Chinese government’s imposition of additional restrictions on some businesses pressured Asian and global emerging market stocks. The combination of increased consumer demand and persistent supply chain disruptions contributed to higher inflation in many countries. Additionally, the spread of the highly contagious Delta variant, which caused COVID-19 cases to rise even in some intensively vaccinated areas, pressured global equities during the six-month period.
In the U.S., the economy continued to recover amid declining unemployment, solid wage growth and high business confidence. GDP growth was robust, as strong consumer spending, driven by a surge in consumer demand, supported the economy. A rebound in corporate earnings and the U.S. Senate’s passage of a bipartisan infrastructure bill further bolstered investor sentiment. The U.S. Federal Reserve (Fed) kept the federal funds target rate at a record-low range of 0.00%–0.25% and continued its program of open-ended U.S. Treasury and mortgage bond purchases to help keep markets functioning. In its September 2021 meeting statement, the Fed indicated that it plans to soon reduce its purchases of U.S. Treasury and mortgage-backed securities but declined to provide a timetable. The Fed also maintained that it views inflation as partially transitory and that further employment progress was needed before the Fed would consider raising the range for the federal funds target rate.
The eurozone economy showed signs of recovery, as quarter-over-quarter GDP increased in the second quarter of 2021 after contracting for the previous two quarters. Most of the eurozone’s largest economies posted improving growth
rates, as increased vaccination rates helped consumer activity return to pre-pandemic levels. The fastest rate of business activity growth in more than a decade also helped European developed market equities, as measured by the MSCI Europe Index-NR, to post a +5.75% total return for the six months under review.1 However, in September 2021, the annual inflation rate in the eurozone reached the highest level in 13 years, and the prospect of energy shortages as winter approaches tempered investor optimism.
Asian developed and emerging market equities, as measured by the MSCI All Country Asia Index-NR, posted a -2.48% total return for the six-month period.1 Although China continued to grow, its economy was pressured by higher commodity prices, increased fuel costs and production disruption caused by government-mandated suspensions of power use. Asian equity markets experienced heightened volatility due to inflation concerns and rising COVID-19 infection rates in some countries. Unexpected regulatory changes by the Chinese government, which negatively impacted education- and technology-related businesses, and concerns about a large property developer’s solvency pressured Asian stocks late in the six-month period.
Global emerging market stocks, as measured by the MSCI Emerging Markets Index-NR, posted a -3.45% total return for the six months under review.1 Higher COVID-19 cases in some countries, limited vaccine rollouts and concerns about rising interest rates and elevated inflation dampened investor enthusiasm in global emerging market equities. Investor concerns that problems in China’s highly indebted property development sector could affect other emerging markets further hurt returns.
The foregoing information reflects our analysis and opinions as of September 30, 2021. The information is not a complete analysis of every aspect of any market, country, industry, security or fund. Statements of fact are from sources considered reliable.
1. Morningstar.
See www.franklintempletondatasources.com for additional data provider information.
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Franklin LibertyQ Emerging Markets ETF
This semiannual report for Franklin LibertyQ Emerging Markets ETF covers the period ended September 30, 2021.
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 LibertyQ Emerging Markets (EM) 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 and in depositary receipts representing such securities. The Underlying Index includes stocks from emerging market countries that have favorable exposure to four investment-style factors: quality, value, momentum and low volatility, subject to a maximum 1% per company weighting. The Underlying Index seeks to achieve a lower level of risk and higher risk-adjusted performance than the MSCI EM Index over the long term by selecting equity securities from the MSCI EM Index that have exposure to these investment-style factors.
Performance Overview
During the six-month period, the Fund posted cumulative total returns of -0.30% based on market price and +0.78% based on net asset value (NAV). In comparison, the LibertyQ EM Index-NR posted a +1.30% cumulative total return for the same period, while the MSCI EM Index-NR posted a -3.45% cumulative total return.2 You can find more of the Fund’s performance data in the Performance Summary beginning on page 5.
Performance data represent past performance, which does not guarantee future results. Investment return and principal value will fluctuate, and you may have a gain or loss when you sell your shares. Current performance may differ from figures shown. For most recent month-end performance, go to franklintempleton.com or call (800) 342-5236.
Geographic Composition* | ||||
9/30/21 | ||||
% of Total Net Assets |
||||
Asia |
68.1% | |||
Europe |
13.6% | |||
Middle East & Africa |
12.1% | |||
Latin America & Caribbean |
6.2% |
*Figures are stated as a percentage of total and may not equal 100% or may be negative due to rounding, use of derivatives, unsettled trades or other factors.
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 LibertyQ EM Index. The investment manager seeks to achieve, over time, a correlation between the Fund’s performance, before fees and expenses, and that of the Underlying Index of 0.95 or better. A figure of 1.00 would indicate perfect correlation. The Fund’s portfolio is reconstituted semiannually following the semiannual reconstitution of the Underlying Index.
Top 10 Sectors/Industries | ||||
9/30/21 | ||||
% of Total Net Assets |
||||
Banks |
12.4% | |||
Oil, Gas & Consumable Fuels |
10.5% | |||
Metals & Mining |
8.8% | |||
IT Services |
5.6% | |||
Diversified Telecommunication Services |
5.2% | |||
Semiconductors & Semiconductor Equipment |
4.7% | |||
Wireless Telecommunication Services |
4.4% | |||
Chemicals |
4.0% | |||
Food Products |
3.9% | |||
Beverages |
3.4% |
1. The LibertyQ EM Index is a systematic, rules-based proprietary index that is owned and calculated by MSCI Inc. (MSCI). It is based on the MSCI EM Index using a methodology developed with Franklin Templeton to reflect Franklin Templeton’s desired investment strategy. The MSCI EM Index is a free float-adjusted market capitalization-weighted index that is designed to measure the equity market performance of emerging markets.
2. Source: FactSet.
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 Statement of Investments (SOI). The SOI begins on page 39.
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FRANKLIN LIBERTYQ EMERGING MARKETS ETF
Top 10 Holdings | ||||
9/30/21 | ||||
Company Sector/Industry, Country |
% of Total Net Assets |
|||
Gazprom
PJSC Oil, Gas & Consumable Fuels, Russia |
1.5% | |||
United
Microelectronics Corp. Semiconductors & Semiconductor Equipment, Taiwan |
1.5% | |||
HCL
Technologies Ltd. IT Services, India |
1.4% | |||
Infosys
Ltd. IT Services, India |
1.3% | |||
Tata
Consultancy Services Ltd. IT Services, India |
1.3% | |||
Al-Rajhi Bank Banks, Saudi Arabia |
1.3% | |||
LUKOIL
PJSC Oil, Gas & Consumable Fuels, Russia |
1.2% | |||
Perusahaan
Perseroan (Persero) PT TelekomunikasiIndonesia Tbk, B Diversified Telecommunication Services, Indonesia |
1.2% | |||
Asian Paints
Ltd. Chemicals, India |
1.2% | |||
Hindustan
Unilever Ltd. Household Products, India |
1.2% |
Top 10 Countries | ||||
9/30/21 | ||||
% of Total Net Assets |
||||
China |
25.7% | |||
India |
15.2% | |||
Taiwan |
13.1% | |||
Russia |
11.0% | |||
South Korea |
7.2% | |||
Saudi Arabia |
4.6% | |||
South Africa |
4.3% | |||
Brazil |
3.1% | |||
Mexico |
2.5% | |||
Indonesia |
2.2% |
Thank you for your participation in Franklin LibertyQ Emerging Markets ETF. We look forward to serving your future investment needs.
Dina Ting, CFA
Hailey Harris
Portfolio Management Team
The foregoing information reflects our analysis, opinions and portfolio holdings as of September 30, 2021, the end of the reporting period. These opinions may not be relied upon as investment advice or an offer for a particular security. The information is not a complete analysis of every aspect of any market, country, industry, security or the Fund. Statements of fact are from sources considered reliable, but the investment manager makes no representation or warranty as to their completeness or accuracy. Although historical performance is no guarantee of future results, these insights may help you understand our investment management philosophy.
CFA® is a trademark owned by CFA Institute.
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FRANKLIN LIBERTYQ EMERGING MARKETS ETF
Performance Summary as of September 30, 2021
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. The price used to calculate market return (Market Price) is determined by using the midpoint between the highest bid and the lowest offer on the primary stock exchange on which shares of a fund are listed for trading, as of the time that such fund’s NAV is calculated. Since shares of the Fund did not trade in the secondary market until after the Fund’s inception, for the period from inception to the first day of secondary trading (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 9/30/211
Cumulative Total Return2 | Average Annual Total Return2 | |||||||||||||||
Based on NAV3 |
Based on market price4 |
Based on NAV3 |
Based on market price4 |
|||||||||||||
6-Month |
+0.78% | -0.30% | +0.78% | -0.30% | ||||||||||||
1-Year |
+23.28% | +21.93% | +23.28% | +21.93% | ||||||||||||
5-Year |
+29.67% | +27.33% | +5.33% | +4.95% | ||||||||||||
Since Inception (6/1/16) |
+41.44% | +40.23% | +6.72% | +6.55% |
Performance data represent past performance, which does not guarantee future results. Investment return and principal value will fluctuate, and you may have a gain or loss when you sell your shares. Current performance may differ from figures shown. For most recent month-end performance, go to franklintempleton.com or call (800) 342-5236.
See page 6 for Performance Summary footnotes.
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FRANKLIN LIBERTYQ EMERGING MARKETS ETF
PERFORMANCE SUMMARY
Distributions (4/1/21–9/30/21)
Net
Investment Income |
$0.230242 |
Total Annual Operating Expenses5
0.45% |
All investments involve risks, including possible loss of principal. Stock prices fluctuate, sometimes rapidly and dramatically, due to factors affecting individual companies, particular industries or sectors, or general market conditions. Special risks are associated with foreign investing, including currency fluctuations, economic instability and political developments. Investments in developing markets involve heightened risks related to the same factors, in addition to those associated with these markets’ smaller size, lesser liquidity and lack of established legal, political, business and social frameworks to support securities markets. The Fund is designed for the aggressive portion of a well-diversified portfolio. There can be no assurance that the Fund’s multi-factor stock selection process will enhance performance. Exposure to such investment factors may detract from performance in some market environments, perhaps for extended periods. Performance of the Fund may vary significantly from the performance of an index, as a result of transaction costs, expenses and other factors. Events such as the spread of deadly diseases, disasters, and financial, political or social disruptions, may heighten risks and adversely affect performance. The Fund’s prospectus also includes a description of the main investment risks.
ETFs trade like stocks, fluctuate in market value and may trade at prices above or below their net asset value. Brokerage commissions and ETF expenses will reduce returns.
1. 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, including custody, transfer agency, and Trustee fees and expenses, among others, but 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. Figures are as stated in the Fund’s current prospectus and may differ from the expense ratios disclosed in the Your Fund’s Expenses and Financial Highlights sections in this report. In periods of market volatility, assets may decline significantly, causing total annual Fund operating expenses to become higher than the figures shown.
See www.franklintempletondatasources.com for additional provider information.
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FRANKLIN LIBERTYQ EMERGING MARKETS 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 x $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 4/1/21 |
Ending Account Value 9/30/21 |
Expenses Paid During Period 4/1/21–9/30/211,2 |
Ending Account Value 9/30/21 |
Expenses Paid During Period 4/1/21–9/30/211,2 |
Net Annualized Expense Ratio2 |
|||||||||||||||||
$1,000.00 | $ | 1,007.80 | $ | 2.26 | $ | 1,022.81 | $ | 2.28 | 0.45 | % |
1. Expenses are equal to the annualized expense ratio for the six-month period as indicated above—in the far right column—multiplied by the simple average account value over the period indicated, and then multiplied by 183/365 to reflect the one-half year period.
2. Reflects expenses after fee waivers and expense reimbursements.
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Franklin LibertyQ Global Dividend ETF
This semiannual report for Franklin LibertyQ Global Dividend ETF covers the period ended September 30, 2021.
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 LibertyQ Global Dividend 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 and in depositary receipts representing such securities. The Underlying Index includes stocks from developed and emerging market countries with high and persistent dividend income that have favorable exposure to a quality investment-style factor, subject to a maximum 2% per company weighting. The Underlying Index seeks to achieve a lower level of risk and higher risk-adjusted performance than the MSCI All Country World Index (ACWI) ex REITs Index over the long term by applying dividend persistence and yield screens and the quality factor selection process.
Performance Overview
For the six-month period, the Fund posted cumulative total returns of +4.98% based on market price and +4.82% based on net asset value (NAV). In comparison, the LibertyQ Global Dividend Index-NR posted a +4.83% cumulative total return for the same period, while the MSCI ACWI ex REITs Index-NR posted a +6.17% cumulative total return for the same period.2 You can find more of the Fund’s performance data in the Performance Summary beginning on page 10.
Performance data represent past performance, which does not guarantee future results. Investment return and principal value will fluctuate, and you may have a gain or loss when you sell your shares. Current performance may differ from figures shown. For most recent month-end performance, go to franklintempleton.com or call (800) 342-5236.
Geographic Composition* | ||||
9/30/21 | ||||
% of Total Net Assets |
||||
North America |
50.2% | |||
Europe |
21.6% | |||
Asia |
15.3% | |||
Middle East & Africa |
6.2% | |||
Australia & New Zealand |
6.2% | |||
Short-Term Investments & Other Net Assets |
0.5% |
*Figures are stated as a percentage of total and may not equal 100% or may be negative due to rounding, use of derivatives, unsettled trades or other factors.
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 LibertyQ Global Dividend Index. The investment manager seeks to achieve, over time, a correlation between the Fund’s performance, before fees and expenses, and that of the Underlying Index of 0.95 or better. A figure of 1.00 would indicate perfect correlation. The Fund’s portfolio is reconstituted semiannually following the semiannual reconstitution of the Underlying Index.
Top 10 Sectors/Industries | ||||
9/30/21 | ||||
% of Total Net Assets |
||||
Banks |
14.9% | |||
Pharmaceuticals |
10.1% | |||
Insurance |
9.2% | |||
Diversified Telecommunication Services |
5.0% | |||
Tobacco |
4.6% | |||
Semiconductors & Semiconductor Equipment |
4.5% | |||
IT Services |
4.5% | |||
Capital Markets |
4.2% | |||
Household Products |
4.1% | |||
Electrical Equipment |
4.1% |
1. The LibertyQ Global Dividend Index is a systematic, rules-based proprietary index that is owned and calculated by MSCI Inc. (MSCI). It is based on the MSCI ACWI ex REITs Index using a methodology developed with Franklin Templeton to reflect Franklin Templeton’s desired investment strategy. The MSCI ACWI ex REITs Index is a free float-adjusted market capitalization-weighted index that is designed to measure the equity market performance of developed and emerging markets, excluding REIT securities.
2. Source: FactSet.
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 Statement of Investments (SOI). The SOI begins on page 49.
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FRANKLIN LIBERTYQ GLOBAL DIVIDEND ETF
Top 10 Holdings | ||||
9/30/21 | ||||
Company Sector/Industry, Country |
% of Total Net Assets |
|||
Paychex
Inc. IT Services, United States |
2.3% | |||
Macquarie Group
Ltd. Capital Markets, Australia |
2.3% | |||
Target
Corp. Multiline Retail, United States |
2.2% | |||
Taiwan
Semiconductor Manufacturing Co. Ltd.
Semiconductors & Semiconductor Equipment, Taiwan |
2.2% | |||
Roche Holding
AG, Non-Voting Pharmaceuticals, Switzerland |
2.2% | |||
KDDI
Corp. Wireless Telecommunication Services, Japan |
2.1% | |||
Cisco Systems
Inc. Communications Equipment, United States |
2.1% | |||
The
Procter & Gamble Co. Household Products, United States |
2.1% | |||
Eaton Corp.
PLC Electrical Equipment, United States |
2.1% | |||
Gilead Sciences
Inc. Biotechnology, United States |
2.1% |
Top 10 Countries | ||||
9/30/21 | ||||
% of Total Net Assets |
||||
United States |
41.4% | |||
Japan |
9.3% | |||
Canada |
8.8% | |||
Switzerland |
7.8% | |||
United Kingdom |
6.0% | |||
Australia |
5.7% | |||
Saudi Arabia |
3.9% | |||
Taiwan |
3.0% | |||
Finland |
2.4% | |||
Germany |
2.3% |
Thank you for your participation in Franklin LibertyQ Global Dividend ETF. We look forward to serving your future investment needs.
Dina Ting, CFA
Hailey Harris
Portfolio Management Team
The foregoing information reflects our analysis, opinions and portfolio holdings as of September 30, 2021, 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 LIBERTYQ GLOBAL DIVIDEND ETF
Performance Summary as of September 30, 2021
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. The price used to calculate market return (Market Price) is determined by using the midpoint between the highest bid and the lowest offer on the primary stock exchange on which shares of a fund are listed for trading, as of the time that such fund’s NAV is calculated. Since shares of the Fund did not trade in the secondary market until after the Fund’s inception, for the period from inception to the first day of secondary trading (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 9/30/211
Cumulative Total Return2 | Average Annual Total Return2 | |||||||||||||||
Based on NAV3 |
Based on market price4 |
Based on NAV3 |
Based on market price4 |
|||||||||||||
6-Month |
+4.82% | +4.98% | +4.82% | +4.98% | ||||||||||||
1-Year |
+26.91% | +26.93% | +26.91% | +26.93% | ||||||||||||
5-Year |
+55.39% | +54.94% | +9.22% | +9.15% | ||||||||||||
Since Inception (6/1/16) |
+60.59% | +60.79% | +9.29% | +9.32% |
Performance data represent past performance, which does not guarantee future results. Investment return and principal value will fluctuate, and you may have a gain or loss when you sell your shares. Current performance may differ from figures shown. For most recent month-end performance, go to franklintempleton.com or call (800) 342-5236.
See page 11 for Performance Summary footnotes.
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FRANKLIN LIBERTYQ GLOBAL DIVIDEND ETF
PERFORMANCE SUMMARY
Distributions (4/1/21–9/30/21)
Net
Investment Income |
$0.631124 |
Total Annual Operating Expenses5
0.45% |
All investments involve risks, including possible loss of principal. Stock prices fluctuate, sometimes rapidly and dramatically, due to factors affecting individual companies, particular industries or sectors, or general market conditions. Special risks are associated with foreign investing, including currency fluctuations, economic instability and political developments; investments in emerging markets involve heightened risks related to the same factors. To the extent the Fund focuses on particular countries, regions, 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 countries, regions, industries, sectors or investments. Companies that have historically paid regular dividends to shareholders may decrease or eliminate dividend payments in the future. A decrease in dividend payments by an issuer may result in a decrease in the value of the issuer’s stock and less available income for the Fund. There can be no assurance that the Fund’s quality factor stock selection process and dividend screens of the Underlying Index will enhance performance. Exposure to investment factors and the use of dividend screens may detract from performance in some market environments, perhaps for extended periods. Performance of the Fund may vary significantly from the performance of an index, as a result of transaction costs, expenses and other factors. Events such as the spread of deadly diseases, disasters, and financial, political or social disruptions, may heighten risks and adversely affect performance. The Fund’s prospectus also includes a description of the main investment risks.
ETFs trade like stocks, fluctuate in market value and may trade at prices above or below their net asset value. Brokerage commissions and ETF expenses will reduce returns.
1. 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, including custody, transfer agency, and Trustee fees and expenses, among others, but 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. Figures are as stated in the Fund’s current prospectus and may differ from the expense ratios disclosed in the Your Fund’s Expenses and Financial Highlights sections in this report. In periods of market volatility, assets may decline significantly, causing total annual Fund operating expenses to become higher than the figures shown.
See www.franklintempletondatasources.com for additional provider information.
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FRANKLIN LIBERTYQ GLOBAL DIVIDEND 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 x $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 4/1/21 |
Ending Account Value 9/30/21 |
Expenses Paid During Period 4/1/21–9/30/211,2 |
Ending Account Value 9/30/21 |
Expenses Paid During Period 4/1/21–9/30/211,2 |
Net Annualized Expense Ratio2 |
|||||||||||||||||
$1,000.00 | $ | 1,048.20 | $ | 2.31 | $ | 1,022.81 | $ | 2.28 | 0.45 | % |
1. Expenses are equal to the annualized expense ratio for the six-month period as indicated above—in the far right column—multiplied by the simple average account value over the period indicated, and then multiplied by 183/365 to reflect the one-half year period.
2. Reflects expenses after fee waivers and expense reimbursements.
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Franklin LibertyQ Global Equity ETF
This semiannual report for Franklin LibertyQ Global Equity ETF covers the period ended September 30, 2021.
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 LibertyQ Global Equity 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 and in depositary receipts representing such securities. The Underlying Index includes stocks from developed and emerging market countries that have favorable exposure to four investment-style factors: quality, value, momentum and low volatility, subject to a maximum 1% per company weighting. The Underlying Index seeks to achieve a lower level of risk and higher risk-adjusted performance than the MSCI All Country World Index (ACWI) over the long term by selecting equity securities from the MSCI ACWI that have exposure to these investment-style factors.
Performance Overview
During the six-month period, the Fund posted cumulative total returns of +4.72% based on market price and +5.06% based on net asset value (NAV). In comparison, the LibertyQ Global Equity Index-NR posted a +5.12% cumulative total return for the same period, while the MSCI ACWI-NR posted a +6.26% cumulative total return.2 You can find more of the Fund’s performance data in the Performance Summary beginning on page 15.
Performance data represent past performance, which does not guarantee future results. Investment return and principal value will fluctuate, and you may have a gain or loss when you sell your shares. Current performance may differ from figures shown. For most recent month-end performance, go to franklintempleton.com or call (800) 342-5236.
Geographic Composition* | ||||
9/30/21 | ||||
% of Total Net Assets |
||||
North America |
58.6% | |||
Europe |
18.3% | |||
Asia |
16.6% | |||
Australia & New Zealand |
4.1% | |||
Middle East & Africa |
1.2% | |||
Latin America & Caribbean |
0.9% | |||
Short-Term Investments & Other Net Assets |
0.3% |
*Figures are stated as a percentage of total and may not equal 100% or may be negative due to rounding, use of any derivatives, unsettled trades or other factors.
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 LibertyQ Global Equity Index. The investment manager seeks to achieve, over time, a correlation between the Fund’s performance, before fees and expenses, and that of the Underlying Index of 0.95 or better. A figure of 1.00 would indicate perfect correlation. The Fund’s portfolio is reconstituted semiannually following the semiannual reconstitution of the Underlying Index.
Top 10 Sectors/Industries | ||||
9/30/21 | ||||
% of Total Net Assets |
||||
Pharmaceuticals |
9.7% | |||
Semiconductors & Semiconductor Equipment |
8.5% | |||
IT Services |
5.4% | |||
Software |
5.4% | |||
Biotechnology |
4.9% | |||
Metals & Mining |
4.7% | |||
Diversified Telecommunication Services |
3.8% | |||
Specialty Retail |
3.3% | |||
Banks |
3.1% | |||
Technology Hardware, Storage & Peripherals |
3.1% |
1. The LibertyQ Global Equity Index is a systematic, rules-based proprietary index that is owned and calculated by MSCI Inc. (MSCI). It is based on the MSCI ACWI using a methodology developed with Franklin Templeton to reflect Franklin Templeton’s desired investment strategy. The MSCI ACWI is a free float-adjusted market capitalization-weighted index that is designed to measure the equity market performance of developed and emerging markets.
2. Source: FactSet.
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 Statement of Investments (SOI). The SOI begins on page 54.
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FRANKLIN LIBERTYQ GLOBAL EQUITY ETF
Top 10 Holdings | ||||
9/30/21 | ||||
Company Sector/Industry, Country |
% of Total Net Assets |
|||
Novo Nordisk
AS, B Pharmaceuticals, Denmark |
1.2% | |||
Adobe
Inc. Software, United States |
1.2% | |||
Eli
Lilly & Co. Pharmaceuticals, United States |
1.2% | |||
Microsoft
Corp. Software, United States |
1.2% | |||
Alphabet Inc.,
A, C Interactive Media & Services, United States |
1.2% | |||
Apple
Inc. Technology Hardware, Storage & Peripherals, United States |
1.1% | |||
Accenture PLC,
A IT Services, United States |
1.1% | |||
Oracle
Corp. Software, United States |
1.1% | |||
Facebook Inc.,
A Interactive Media & Services, United States |
1.1% | |||
ASML Holding
NV Semiconductors & Semiconductor Equipment, Netherlands |
1.1% |
Top 10 Countries | ||||
9/30/21 | ||||
% of Total Net Assets |
||||
United States |
55.7% | |||
Japan |
6.4% | |||
United Kingdom |
5.0% | |||
Switzerland |
4.0% | |||
Australia |
3.9% | |||
China |
3.1% | |||
Canada |
2.9% | |||
Taiwan |
2.2% | |||
India |
2.1% | |||
Netherlands |
1.8% |
Thank you for your participation in Franklin LibertyQ Global Equity ETF. We look forward to serving your future investment needs.
Dina Ting, CFA
Hailey Harris
Portfolio Management Team
The foregoing information reflects our analysis, opinions and portfolio holdings as of September 30, 2021, 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 LIBERTYQ GLOBAL EQUITY ETF
Performance Summary as of September 30, 2021
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. The price used to calculate market return (Market Price) is determined by using the midpoint between the highest bid and the lowest offer on the primary stock exchange on which shares of a fund are listed for trading, as of the time that such fund’s NAV is calculated. Since shares of the Fund did not trade in the secondary market until after the Fund’s inception, for the period from inception to the first day of secondary trading (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 9/30/211
Cumulative Total Return2 | Average Annual Total Return2 | |||||||||||||||
Based on NAV3 |
Based on market price4 |
Based on NAV3 |
Based on market price4 |
|||||||||||||
6-Month |
+5.06% | +4.72% | +5.06% | +4.72% | ||||||||||||
1-Year |
+22.36% | +21.71% | +22.36% | +21.71% | ||||||||||||
5-Year |
+71.69% | +70.08% | +11.42% | +11.21% | ||||||||||||
Since Inception (6/1/16) |
+79.42% | +79.21% | +11.59% | +11.56% |
Performance data represent past performance, which does not guarantee future results. Investment return and principal value will fluctuate, and you may have a gain or loss when you sell your shares. Current performance may differ from figures shown. For most recent month-end performance, go to franklintempleton.com or call (800) 342-5236.
See page 16 for Performance Summary footnotes.
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Semiannual Report |
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FRANKLIN LIBERTYQ GLOBAL EQUITY ETF
PERFORMANCE SUMMARY
Distributions (4/1/21–9/30/21)
Net
Investment Income |
$0.371046 |
Total Annual Operating Expenses5
0.35% |
All investments involve risks, including possible loss of principal. Stock prices fluctuate, sometimes rapidly and dramatically, due to factors affecting individual companies, particular industries or sectors, or general market conditions. Special risks are associated with foreign investing, including currency fluctuations, economic instability and political developments; investments in emerging markets involve heightened risks related to the same factors. To the extent the Fund focuses on particular countries, regions, 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 countries, regions, industries, sectors or investments. There can be no assurance that the Fund’s multi-factor stock selection process will enhance performance. Exposure to such investment factors may detract from performance in some market environments, perhaps for extended periods. Performance of the Fund may vary significantly from the performance of an index, as a result of transaction costs, expenses and other factors. Events such as the spread of deadly diseases, disasters, and financial, political or social disruptions, may heighten risks and adversely affect performance. The Fund’s prospectus also includes a description of the main investment risks.
ETFs trade like stocks, fluctuate in market value and may trade at prices above or below their net asset value. Brokerage commissions and ETF expenses will reduce returns.
1. 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, including custody, transfer agency, and Trustee fees and expenses, among others, but 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. Figures are as stated in the Fund’s current prospectus and may differ from the expense ratios disclosed in the Your Fund’s Expenses and Financial Highlights sections in this report. In periods of market volatility, assets may decline significantly, causing total annual Fund operating expenses to become higher than the figures shown.
See www.franklintempletondatasources.com for additional provider information.
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FRANKLIN LIBERTYQ GLOBAL EQUITY 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 x $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 4/1/21 |
Ending Account Value 9/30/21 |
Expenses Paid During Period 4/1/21–9/30/211,2 |
Ending Account Value 9/30/21 |
Expenses Paid During Period 4/1/21–9/30/211,2 |
Net Annualized Expense Ratio2 |
|||||||||||||||||
$1,000.00 | $ | 1,050.60 | $ | 1.75 | $ | 1,023.36 | $ | 1.72 | 0.34 | % |
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. Reflects expenses after fee waivers and expense reimbursements.
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Franklin LibertyQ International Equity Hedged ETF
This semiannual report for Franklin LibertyQ International Equity Hedged ETF covers the period ended September 30, 2021.
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 LibertyQ International Equity Hedged 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 and in depositary receipts representing such securities. The Underlying Index includes stocks from developed market countries in Europe, Australasia and the Far East (EAFE) that have favorable exposure to four investment-style factors: quality, value, momentum and low volatility, subject to a maximum 2% per company weighting. The Underlying Index seeks to achieve a lower level of risk and higher risk-adjusted performance than the MSCI EAFE Index over the long term by selecting equity securities from the MSCI EAFE Index that have exposure to these investment-style factors. The Underlying Index incorporates a hedge against non-U.S. currency fluctuations by reflecting the impact of rolling monthly currency forward contracts on the currencies represented in the Underlying Index.
Performance Overview
During the six-month period, the Fund posted cumulative total returns of +3.96% based on market price and +5.70% based on net asset value (NAV). In comparison, LibertyQ International Equity Hedged Index-NR posted a +5.90% cumulative total return for the same period, while the MSCI EAFE 100% Hedged to USD Index-NR posted a +6.48% cumulative total return.2 You can find more of the Fund’s performance data in the Performance Summary beginning on page 20.
Performance data represent past performance, which does not guarantee future results. Investment return and principal value will fluctuate, and you may have a gain or loss when you sell your shares. Current performance may differ from figures shown. For most recent month-end performance, go to franklintempleton.com or call (800) 342-5236.
Geographic Composition | ||||
9/30/21 | ||||
% of Total Net Assets |
||||
Europe |
54.5% | |||
Asia |
31.1% | |||
Australia & New Zealand |
12.6% | |||
North America |
0.6% | |||
Middle East & Africa |
0.5% | |||
Short-Term Investments & Other Net Assets |
0.7% |
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 LibertyQ International Equity Hedged Index. The investment manager seeks to achieve, over time, a correlation between the Fund’s performance, before fees and expenses, and that of the Underlying Index of 0.95 or better. A figure of 1.00 would indicate perfect correlation. The Fund’s portfolio is reconstituted semiannually following the semiannual reconstitution of the Underlying Index.
Top 10 Sectors/Industries | ||||
9/30/21 | ||||
% of Total Net Assets |
||||
Pharmaceuticals |
12.9% | |||
Metals & Mining |
8.4% | |||
Semiconductors & Semiconductor Equipment |
5.1% | |||
Diversified Telecommunication Services |
4.9% | |||
Automobiles |
3.9% | |||
Tobacco |
3.5% | |||
Food & Staples Retailing |
3.5% | |||
Banks |
3.3% | |||
Health Care Equipment & Supplies |
3.2% | |||
Chemicals |
3.0% |
1. The LibertyQ International Equity Hedged Index is a systematic, rules-based proprietary index that is owned and calculated by MSCI Inc. (MSCI). It is based on the MSCI EAFE Index using a methodology developed with Franklin Templeton to reflect Franklin Templeton’s desired investment strategy. The MSCI EAFE Index is a free float-adjusted market capitalization-weighted index that is designed to measure the equity market performance of developed markets, excluding the U.S. and Canada.
2. Source: FactSet.
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 Statement of Investments (SOI). The SOI begins on page 71.
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FRANKLIN LIBERTYQ INTERNATIONAL EQUITY HEDGED ETF
Top 10 Holdings | ||||
9/30/21 | ||||
Company Sector/Industry, Country |
% of Total Net Assets |
|||
Novo Nordisk
AS, B Pharmaceuticals, Denmark |
2.4% | |||
ASML Holding
NV Semiconductors & Semiconductor Equipment, Netherlands |
2.4% | |||
Toyota Motor
Corp. Automobiles, Japan |
2.3% | |||
Roche Holding
AG, Non-Voting Pharmaceuticals, Switzerland |
2.2% | |||
Nestle
SA Food Products, Switzerland |
2.0% | |||
CSL
Ltd. Biotechnology, Australia |
2.0% | |||
GlaxoSmithKline
PLC Pharmaceuticals, United Kingdom |
2.0% | |||
Tokyo Electron
Ltd. Semiconductors & Semiconductor Equipment, Japan |
1.9% | |||
Novartis
AG Pharmaceuticals, Switzerland |
1.9% | |||
Sanofi Pharmaceuticals, France |
1.8% |
Top 10 Countries | ||||
9/30/21 | ||||
% of Total Net Assets |
||||
Japan |
28.4% | |||
United Kingdom |
17.1% | |||
Australia |
11.9% | |||
Switzerland |
9.8% | |||
Spain |
5.3% | |||
Netherlands |
4.9% | |||
Denmark |
4.6% | |||
France |
3.8% | |||
Sweden |
3.1% | |||
Hong Kong |
1.9% |
Thank you for your participation in Franklin LibertyQ International Equity Hedged ETF. We look forward to serving your future investment needs.
Dina Ting, CFA
Hailey Harris
Portfolio Management Team
The foregoing information reflects our analysis, opinions and portfolio holdings as of September 30, 2021, the end of the reporting period. These opinions may not be relied upon as investment advice or an offer for a particular security. The information is not a complete analysis of every aspect of any market, country, industry, security or the Fund. Statements of fact are from sources considered reliable, but the investment manager makes no representation or warranty as to their completeness or accuracy. Although historical performance is no guarantee of future results, these insights may help you understand our investment management philosophy.
franklintempleton.com |
Semiannual Report |
19 |
FRANKLIN LIBERTYQ INTERNATIONAL EQUITY HEDGED ETF
Performance Summary as of September 30, 2021
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. The price used to calculate market return (Market Price) is determined by using the midpoint between the highest bid and the lowest offer on the primary stock exchange on which shares of a fund are listed for trading, as of the time that such fund’s NAV is calculated. Since shares of the Fund did not trade in the secondary market until after the Fund’s inception, for the period from inception to the first day of secondary trading (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 9/30/211
Cumulative Total Return2 | Average Annual Total Return2 | |||||||||||||||
Based on NAV3 |
Based on market price4 |
Based on NAV3 |
Based on market price4 |
|||||||||||||
6-Month |
+5.70% | +3.96% | +5.70% | +3.96% | ||||||||||||
1-Year |
+22.04% | +20.37% | +22.04% | +20.37% | ||||||||||||
5-Year |
+48.81% | +46.80% | +8.27% | +7.98% | ||||||||||||
Since Inception (6/1/16) |
+50.91% | +49.80% | +8.02% | +7.87% |
Performance data represent past performance, which does not guarantee future results. Investment return and principal value will fluctuate, and you may have a gain or loss when you sell your shares. Current performance may differ from figures shown. For most recent month-end performance, go to franklintempleton.com or call (800) 342-5236.
See page 21 for Performance Summary footnotes.
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FRANKLIN LIBERTYQ INTERNATIONAL EQUITY HEDGED ETF
PERFORMANCE SUMMARY
Distributions (4/1/21–9/30/21)
Net
Investment Income |
$0.151427 |
Total Annual Operating Expenses5
0.40% |
All investments involve risks, including possible loss of principal. Stock prices fluctuate, sometimes rapidly and dramatically, due to factors affecting individual companies, particular industries or sectors, or general market conditions. Special risks are associated with foreign investing, including currency fluctuations, economic instability and political developments; investments in emerging markets involve heightened risks related to the same factors. To the extent the Fund focuses on particular countries, regions, 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 countries, regions, industries, sectors or investments. The Fund will attempt to hedge the currency exposure of non-U.S. dollar denominated securities held in its portfolio by investing in foreign currency forward contracts. Foreign currency forward contracts do not eliminate movements in the value of non-U.S. currencies and securities but rather allow the Fund to establish a fixed rate of exchange for a future point in time. Investments in derivatives involve costs and create economic leverage, which may result in significant volatility and cause the Fund to participate in losses (as well as gains) that significantly exceed the Fund’s initial investment. Currency management strategies could result in losses to the Fund if currencies do not perform as the investment manager expects. There can be no assurance that the Fund’s multi-factor stock selection process will enhance performance. Exposure to such investment factors may detract from performance in some market environments, perhaps for extended periods. Performance of the Fund may vary significantly from the performance of an index, as a result of transaction costs, expenses and other factors. Events such as the spread of deadly diseases, disasters, and financial, political or social disruptions, may heighten risks and adversely affect performance. The Fund’s prospectus also includes a description of the main investment risks.
ETFs trade like stocks, fluctuate in market value and may trade at prices above or below their net asset value. Brokerage commissions and ETF expenses will reduce returns.
1. 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, including custody, transfer agency, and Trustee fees and expenses, among others, but 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. Figures are as stated in the Fund’s current prospectus and may differ from the expense ratios disclosed in the Your Fund’s Expenses and Financial Highlights sections in this report. In periods of market volatility, assets may decline significantly, causing total annual Fund operating expenses to become higher than the figures shown.
See www.franklintempletondatasources.com for additional provider information.
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FRANKLIN LIBERTYQ INTERNATIONAL EQUITY HEDGED ETF
Your Fund’s Expenses
As a Fund shareholder, you can incur two types of costs: (1) transaction costs, including brokerage commissions on purchases and sales of Fund shares; and (2) ongoing Fund costs, including management fees and other Fund expenses. All funds have ongoing costs, sometimes referred to as operating expenses. The table below shows ongoing costs of investing in the Fund and can help you understand these costs and compare them with those of other funds. The table assumes a $1,000 investment held for the six months indicated.
Actual Fund Expenses
The table below provides information about actual account values and actual expenses in the columns under the heading “Actual.” In these columns the Fund’s actual return, which includes the effect of Fund expenses, is used to calculate the “Ending Account Value.” You can estimate the expenses you paid during the period by following these steps (of course, your account value and expenses will differ from those in this illustration): Divide your account value by $1,000 (if your account had an $8,600 value, then $8,600 ÷ $1,000 = 8.6). Then multiply the result by the number in the row under the headings “Actual” and “Expenses Paid During Period” (if Actual Expenses Paid During Period were $7.50, then 8.6 x $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 4/1/21 |
Ending Account Value 9/30/21 |
Expenses Paid During Period 4/1/21–9/30/211,2 |
Ending Account Value 9/30/21 |
Expenses Paid During Period 4/1/21–9/30/211,2 |
Net Annualized Expense Ratio2 |
|||||||||||||||||
$1,000.00 | $ | 1,057.00 | $ | 2.06 | $ | 1,023.06 | $ | 2.03 | 0.40 | % |
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. Reflects expenses after fee waivers and expense reimbursements.
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Franklin LibertyQ U.S. Equity ETF
This semiannual report for Franklin LibertyQ U.S. Equity ETF covers the period ended September 30, 2021.
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 LibertyQ U.S. Large Cap Equity 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 seeks to achieve a lower level of risk and higher risk-adjusted performance than the Russell 1000® Index over the long term by applying a multi-factor selection process, which is designed to select equity securities from the Russell 1000® Index that have favorable exposure to four investment style factors: quality, value, momentum and low volatility.
Performance Overview
For the six months under review, the Fund posted cumulative total returns of +6.24% based on market price and +6.35% based on net asset value (NAV). In comparison, the LibertyQ U.S. Large Cap Equity Index posted a +6.42% cumulative total return for the same period, while the Russell 1000® Index posted a +8.76% cumulative total return.2 You can find more of the Fund’s performance data in the Performance Summary beginning on page 25.
Performance data represent past performance, which does not guarantee future results. Investment return and principal value will fluctuate, and you may have a gain or loss when you sell your shares. Current performance may differ from figures shown. For most recent month-end performance, go to franklintempleton.com or call (800) 342-5236.
Top 10 Sectors/Industries | ||||
9/30/21 | ||||
% of Total Net Assets |
||||
Information Technology |
24.9% | |||
Health Care |
18.1% | |||
Industrials |
14.8% | |||
Consumer Staples |
13.4% | |||
Consumer Discretionary |
8.0% | |||
Communication Services |
6.3% | |||
Utilities |
4.5% | |||
Materials |
3.8% | |||
Financials |
3.8% | |||
Real Estate |
2.2% |
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 LibertyQ U.S. Large Cap Equity Index. The investment manager seeks to achieve, over time, a correlation between the Fund’s performance, before fees and expenses, and that of the Underlying Index of 0.95 or better. A figure of 1.00 would indicate perfect correlation. The Fund’s portfolio is reconstituted semiannually following the semiannual reconstitution of the Underlying Index.
1. Frank Russell Company is the source and owner of the trademarks, service marks and copyrights related to the Russell Indexes. Russell® is a trademark of Frank Russell Company. The LibertyQ U.S. Large Cap Equity Index is a systematic, rules-based proprietary index maintained and calculated by FTSE Russell (Russell) based on the Russell 1000® Index using a methodology developed with Franklin Templeton to reflect Franklin Templeton’s desired investment strategy. Russell 1000® Index is market capitalization weighted and measures performance of the largest companies in the Russell 3000® Index, which represents the majority of the U.S. market’s total capitalization.
2. Source: FactSet.
The indexes are unmanaged and include reinvestment of any income or distributions (after the deduction of certain withholding taxes). They do not reflect any fees, expenses or sales charges. One cannot invest directly in an index.
See www.franklintempletondatasources.com for additional data provider information.
The dollar value, number of shares or principal amount, and names of all portfolio holdings are listed in the Fund’s Statement of Investments (SOI). The SOI begins on page 79.
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FRANKLIN LIBERTYQ U.S. EQUITY ETF
Top 10 Holdings | ||||
9/30/21 | ||||
Company Sector/Industry |
% of Total Net Assets |
|||
NVIDIA Corp. Information Technology |
1.3% | |||
Intuit Inc. Information Technology |
1.2% | |||
Thermo Fisher Scientific Inc. Health Care |
1.2% | |||
Costco Wholesale Corp. Consumer Staples |
1.2% | |||
Eli Lilly & Co. Health Care |
1.2% | |||
Adobe Inc. Information Technology |
1.1% | |||
Accenture PLC, A Information Technology |
1.1% | |||
Apple Inc. Information Technology |
1.1% | |||
Microsoft Corp. Information Technology |
1.1% | |||
S&P Global Inc. Financials |
1.1% |
Thank you for your participation in Franklin LibertyQ U.S. Equity ETF. We look forward to serving your future investment needs.
Dina Ting, CFA
Hailey Harris
Portfolio Management Team
The foregoing information reflects our analysis, opinions and portfolio holdings as of September 30, 2021, 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 LIBERTYQ U.S. EQUITY ETF
Performance Summary as of September 30, 2021
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. The price used to calculate market return (Market Price) is determined by using the midpoint between the highest bid and the lowest offer on the primary stock exchange on which shares of a fund are listed for trading, as of the time that such fund’s NAV is calculated. Since shares of the Fund did not trade in the secondary market until after the Fund’s inception, for the period from inception to the first day of secondary trading (4/28/17), the NAV of the Fund is used as a proxy for the Market Price to calculate market returns. Market and NAV returns assume that dividends and capital gain distributions have been reinvested at Market Price and NAV.
Your dividend income will vary depending on dividends or interest paid by securities in the Fund’s portfolio, adjusted for operating expenses. Capital gain distributions are net profits realized from the sale of portfolio securities.
Performance as of 9/30/211
Cumulative Total Return2 | Average Annual Total Return2 | |||||||||||||||
Based on NAV3 |
Based on market price4 |
Based on NAV3 |
Based on market price4 |
|||||||||||||
6-Month |
+6.35% | +6.24% | +6.35% | +6.24% | ||||||||||||
1-Year |
+23.98% | +23.63% | +23.98% | +23.63% | ||||||||||||
3-Year |
+43.10% | +42.89% | +12.69% | +12.63% | ||||||||||||
Since Inception (4/26/17) |
+80.28% | +80.19% | +14.23% | +14.22% |
Performance data represent past performance, which does not guarantee future results. Investment return and principal value will fluctuate, and you may have a gain or loss when you sell your shares. Current performance may differ from figures shown. For most recent month-end performance, go to franklintempleton.com or call (800) 342-5236.
See page 26 for Performance Summary footnotes.
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FRANKLIN LIBERTYQ U.S. EQUITY ETF
PERFORMANCE SUMMARY
Distributions (4/1/21–9/30/21)
Net Investment Income |
$0.400638 |
Total Annual Operating Expenses5
0.15% |
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 concentrates in a specific industry or group of industries, the Fund will carry much greater risks of adverse developments and price movements in such industries than a fund that invests in a wider variety of industries; there is also the risk that the Fund will perform poorly during a slump in demand for securities of companies in such industries. Events such as the spread of deadly diseases, disasters, and financial, political or social disruptions, may heighten risks and adversely affect performance. There can be no assurance that the Fund’s multi-factor stock selection process will enhance performance. Exposure to such investment factors may detract from performance in some market environments, perhaps for extended periods. Performance of the Fund may vary significantly from the performance of an index, as a result of transactions costs, expenses and other factors. The Fund’s prospectus also includes a description of the main investment risks.
ETFs trade like stocks, fluctuate in market value and may trade at prices above or below their net asset value. Brokerage commissions and ETF expenses will reduce returns.
1. 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, including custody, transfer agency, and Trustee fees and expenses, among others, but 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. Figures are as stated in the Fund’s current prospectus and may differ from the expense ratios disclosed in the Your Fund’s Expenses and Financial Highlights sections in this report. In periods of market volatility, assets may decline significantly, causing total annual Fund operating expenses to become higher than the figures shown.
See www.franklintempletondatasources.com for additional data provider information.
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FRANKLIN LIBERTYQ U.S. EQUITY 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 x $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 4/1/21 |
Ending Account Value 9/30/21 |
Expenses Paid During Period 4/1/21–9/30/211,2 |
Ending Account Value 9/30/21 |
Expenses Paid During Period 4/1/21–9/30/211,2 |
Net Annualized Expense Ratio2 |
|||||||||||||||||
$1,000.00 | $ | 1,063.50 | $ | 0.78 | $ | 1,024.32 | $ | 0.76 | 0.15 | % |
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. Reflects expenses after fee waivers and expense reimbursements.
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Franklin LibertyQ U.S. Mid Cap Equity ETF
This semiannual report for Franklin LibertyQ U.S. Mid Cap Equity ETF covers the period ended September 30, 2021.
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 LibertyQ U.S. Mid Cap Equity 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 seeks to achieve a lower level of risk and higher risk-adjusted performance than the Russell Midcap® Index over the long term by applying a multi-factor selection process, which is designed to select equity securities from the Russell Midcap® Index that have favorable exposure to four investment style factors: quality, value, momentum and low volatility.
Performance Overview
For the six months under review, the Fund posted cumulative total returns of +7.69% based on market price and +7.70% based on net asset value (NAV). In comparison, the LibertyQ U.S. Mid Cap Equity Index posted a +7.85% cumulative total return for the same period, while the Russell Midcap® Index posted a +6.50% cumulative total return for the same period.2 You can find more of the Fund’s performance data in the Performance Summary beginning on page 30.
Performance data represent past performance, which does not guarantee future results. Investment return and principal value will fluctuate, and you may have a gain or loss when you sell your shares. Current performance may differ from figures shown. For most recent month-end performance, go to franklintempleton.com or call (800) 342-5236.
Top 10 Sectors/Industries | ||||
9/30/21 | ||||
% of Total Net Assets |
||||
Industrials |
20.6% | |||
Information Technology |
18.3% | |||
Consumer Discretionary |
14.8% | |||
Health Care |
11.2% | |||
Financials |
10.4% | |||
Consumer Staples |
7.1% | |||
Real Estate |
7.0% | |||
Utilities |
4.3% | |||
Communication Services |
3.0% | |||
Materials |
2.9% |
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 LibertyQ U.S. Mid Cap Equity Index. The investment manager seeks to achieve, over time, a correlation between the Fund’s performance, before fees and expenses, and that of the Underlying Index of 0.95 or better. A figure of 1.00 would indicate perfect correlation. The Fund’s portfolio is reconstituted semiannually following the semiannual reconstitution of the Underlying Index.
1. The LibertyQ U.S. Mid Cap Equity Index is a systematic, rules-based proprietary index that is maintained and calculated by FTSE Russell (Russell). It is based on the Russell Midcap® Index using a methodology developed with Franklin Templeton to reflect Franklin Templeton’s desired investment strategy. Russell Midcap® Index is market capitalization weighted and measures performance of the smallest companies in the Russell 1000® Index, which represents a modest amount of the Russell 1000® Index’s total market capitalization.
2. Source: FactSet.
The indexes are unmanaged and include reinvestment of any income or distributions (after the deduction of certain withholding taxes). They do not reflect any fees, expenses or sales charges. One cannot invest directly in an index.
See www.franklintempletondatasources.com for additional data provider information.
The dollar value, number of shares or principal amount, and names of all portfolio holdings are listed in the Fund’s Statement of Investments (SOI). The SOI begins on page 86.
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FRANKLIN LIBERTYQ U.S. MID CAP EQUITY ETF
Top 10 Holdings | ||||
9/30/21 | ||||
Company
Sector/Industry |
% of Total Net Assets |
|||
Fortinet Inc. Information Technology |
1.3% | |||
MSCI Inc. Financials |
1.3% | |||
ResMed Inc. Health Care |
1.2% | |||
AutoZone Inc. Consumer Discretionary |
1.2% | |||
Synopsys Inc. Information Technology |
1.2% | |||
O’Reilly Automotive Inc. Consumer Discretionary |
1.1% | |||
Carrier Global Corp. Industrials |
1.1% | |||
Xilinx Inc. Information Technology |
1.1% | |||
Tractor Supply Co. Consumer Discretionary |
1.1% | |||
IDEXX Laboratories Inc. Health Care |
1.1% |
Thank you for your participation in Franklin LibertyQ U.S. Mid Cap Equity ETF. We look forward to serving your future investment needs.
Dina Ting, CFA
Hailey Harris
Portfolio Management Team
The foregoing information reflects our analysis, opinions and portfolio holdings as of September 30, 2021, 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 LIBERTYQ U.S. MID CAP EQUITY ETF
Performance Summary as of September 30, 2021
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. The price used to calculate market return (Market Price) is determined by using the midpoint between the highest bid and the lowest offer on the primary stock exchange on which shares of a fund are listed for trading, as of the time that such fund’s NAV is calculated. Since shares of the Fund did not trade in the secondary market until after the Fund’s inception, for the period from inception to the first day of secondary trading (4/28/17), the NAV of the Fund is used as a proxy for the Market Price to calculate market returns. Market and NAV returns assume that dividends and capital gain distributions have been reinvested at Market Price and NAV.
Your dividend income will vary depending on dividends or interest paid by securities in the Fund’s portfolio, adjusted for operating expenses. Capital gain distributions are net profits realized from the sale of portfolio securities.
Performance as of 9/30/211
Cumulative Total Return2 | Average Annual Total Return2 | |||||||||||||||
Based on NAV3 |
Based on market price4 |
Based on NAV3 |
Based on market price4 |
|||||||||||||
6-Month |
+7.70% | +7.69% | +7.70% | +7.69% | ||||||||||||
1-Year |
+33.97% | +33.91% | +33.97% | +33.91% | ||||||||||||
3-Year |
+49.92% | +50.07% | +14.45% | +14.49% | ||||||||||||
Since Inception (4/26/17) |
+81.95% | +82.24% | +14.47% | +14.51% |
Performance data represent past performance, which does not guarantee future results. Investment return and principal value will fluctuate, and you may have a gain or loss when you sell your shares. Current performance may differ from figures shown. For most recent month-end performance, go to franklintempleton.com or call (800) 342-5236.
See page 31 for Performance Summary footnotes.
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FRANKLIN LIBERTYQ U.S. MID CAP EQUITY ETF
PERFORMANCE SUMMARY
Distributions (4/1/21–9/30/21)
Net Investment Income |
$0.219504 |
Total Annual Operating Expenses5
0.30% |
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. Historically, mid-size company securities have been more volatile in price than larger company securities, especially over the short term. Mid-size companies may be more susceptible to particular economic events or competitive factors than are larger, more broadly diversified companies. Events such as the spread of deadly diseases, disasters, and financial, political or social disruptions, may heighten risks and adversely affect performance. There can be no assurance that the Fund’s multi-factor stock selection process will enhance performance. Exposure to such investment factors may detract from performance in some market environments, perhaps for extended periods. Performance of the Fund may vary significantly from the performance of an index, as a result of transactions costs, expenses and other factors. The Fund’s prospectus also includes a description of the main investment risks.
ETFs trade like stocks, fluctuate in market value and may trade at prices above or below their net asset value. Brokerage commissions and ETF expenses will reduce returns.
1. 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, including custody, transfer agency, and Trustee fees and expenses, among others, but 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. Figures are as stated in the Fund’s current prospectus and may differ from the expense ratios disclosed in the Your Fund’s Expenses and Financial Highlights sections in this report. In periods of market volatility, assets may decline significantly, causing total annual Fund operating expenses to become higher than the figures shown.
See www.franklintempletondatasources.com for additional data provider information.
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FRANKLIN LIBERTYQ U.S. MID CAP EQUITY 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 x $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 4/1/21 |
Ending Account Value 9/30/21 |
Expenses Paid During Period 4/1/21–9/30/211,2 |
Ending Account Value 9/30/21 |
Expenses Paid During Period 4/1/21–9/30/211,2 |
Net Annualized Expense Ratio2 |
|||||||||||||||||
$1,000.00 | $ | 1,077.00 | $ | 1.56 | $ | 1,023.56 | $ | 1.52 | 0.30 | % |
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. Reflects expenses after fee waivers and expense reimbursements.
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Franklin LibertyQ U.S. Small Cap Equity ETF
This semiannual report for Franklin LibertyQ U.S. Small Cap Equity ETF covers the period ended September 30, 2021.
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 LibertyQ U.S. Small Cap Equity 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 seeks to achieve a lower level of risk and higher risk-adjusted performance than the Russell 2000® Index over the long term by applying a multi-factor selection process, which is designed to select equity securities from the Russell 2000® Index that have favorable exposure to four investment style factors: quality, value, momentum and low volatility.
Performance Overview
For the six months under review, the Fund posted cumulative total returns of +3.49% based on market price and +3.58% based on net asset value (NAV). In comparison, the LibertyQ U.S. Small Cap Equity Index posted a +3.73% cumulative total return for the same period, while the Russell 2000® Index posted a -0.25% cumulative total return.2 You can find more of the Fund’s performance data in the Performance Summary beginning on page 35.
Performance data represent past performance, which does not guarantee future results. Investment return and principal value will fluctuate, and you may have a gain or loss when you sell your shares. Current performance may differ from figures shown. For most recent month-end performance, go to franklintempleton.com or call (800) 342-5236.
Top 10 Sectors/Industries | ||||
9/30/21 | ||||
% of Total Net Assets |
||||
Consumer Discretionary |
23.1% | |||
Industrials |
18.8% | |||
Information Technology |
15.3% | |||
Health Care |
10.5% | |||
Financials |
8.8% | |||
Consumer Staples |
5.7% | |||
Real Estate |
5.6% | |||
Utilities |
4.8% | |||
Communication Services |
3.8% | |||
Materials |
2.8% |
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 LibertyQ U.S. Small Cap Equity Index. The investment manager seeks to achieve, over time, a correlation between the Fund’s performance, before fees and expenses, and that of the Underlying Index of 0.95 or better. A figure of 1.00 would indicate perfect correlation. The Fund’s portfolio is reconstituted semiannually following the semiannual reconstitution of the Underlying Index.
1. The LibertyQ U.S. Small Cap Equity Index is a systematic, rules-based proprietary index that is maintained and calculated by FTSE Russell (Russell). It is based on the Russell 2000® Index using a methodology developed with Franklin Templeton to reflect Franklin Templeton’s desired investment strategy. Russell 2000® Index is market capitalization weighted and measures performance of the approximately 2,000 smallest companies in the Russell 3000® Index, which represent a small amount of the total market capitalization of the Russell 3000® Index.
2. Source: FactSet.
The indexes are unmanaged and include reinvestment of any income or distributions (after the deduction of certain withholding taxes). They do not reflect any fees, expenses or sales charges. One cannot invest directly in an index.
See www.franklintempletondatasources.com for additional data provider information.
The dollar value, number of shares or principal amount, and names of all portfolio holdings are listed in the Fund’s Statement of Investments (SOI). The SOI begins on page 92.
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FRANKLIN LIBERTYQ U.S. SMALL CAP EQUITY ETF
Top 10 Holdings | ||||
9/30/21 | ||||
Company Sector/Industry |
% of Total Net Assets |
|||
Crocs
Inc. Consumer Discretionary |
1.4% | |||
SAIA
Inc. Industrials |
1.0% | |||
Lattice
Semiconductor Corp. Information Technology |
0.9% | |||
Texas Roadhouse
Inc., A Consumer Discretionary |
0.9% | |||
Exponent
Inc. Industrials |
0.9% | |||
Tetra Tech
Inc. Industrials |
0.9% | |||
J2 Global
Inc. Information Technology |
0.9% | |||
SPS Commerce
Inc. Information Technology |
0.9% | |||
AMN Healthcare
Services Inc. Health Care |
0.8% | |||
Macy’s
Inc. Consumer Discretionary |
0.8% |
Thank you for your participation in Franklin LibertyQ U.S. Small Cap Equity ETF. We look forward to serving your future investment needs.
Dina Ting, CFA
Hailey Harris
Portfolio Management Team
The foregoing information reflects our analysis, opinions and portfolio holdings as of September 30, 2021, 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 LIBERTYQ U.S. SMALL CAP EQUITY ETF
Performance Summary as of September 30, 2021
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. The price used to calculate market return (Market Price) is determined by using the midpoint between the highest bid and the lowest offer on the primary stock exchange on which shares of a fund are listed for trading, as of the time that such fund’s NAV is calculated. Since shares of the Fund did not trade in the secondary market until after the Fund’s inception, for the period from inception to the first day of secondary trading (4/28/17), the NAV of the Fund is used as a proxy for the Market Price to calculate market returns. Market and NAV returns assume that dividends and capital gain distributions have been reinvested at Market Price and NAV.
Your dividend income will vary depending on dividends or interest paid by securities in the Fund’s portfolio, adjusted for operating expenses. Capital gain distributions are net profits realized from the sale of portfolio securities.
Performance as of 9/30/211
Cumulative Total Return2 | Average Annual Total Return2 | |||||||||||||||
Based on NAV3 |
Based on market price4 |
Based on NAV3 |
Based on market price4 |
|||||||||||||
6-month |
+3.58% | +3.49% | +3.58% | +3.49% | ||||||||||||
1-Year |
+47.91% | +48.32% | +47.91% | +48.32% | ||||||||||||
3-Year |
+30.57% | +31.21% | +9.30% | +9.48% | ||||||||||||
Since Inception (4/26/17) |
+57.19% | +57.44% | +10.75% | +10.79% |
Performance data represent past performance, which does not guarantee future results. Investment return and principal value will fluctuate, and you may have a gain or loss when you sell your shares. Current performance may differ from figures shown. For most recent month-end performance, go to franklintempleton.com or call (800) 342-5236.
See page 36 for Performance Summary footnotes.
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Semiannual Report |
35 |
FRANKLIN LIBERTYQ U.S. SMALL CAP EQUITY ETF
PERFORMANCE SUMMARY
Distributions (4/1/21–9/30/21)
Net Investment Income |
$0.129121 |
Total Annual Operating Expenses5
0.35% |
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. Smaller, mid-sized and relatively new or unseasoned companies can be particularly sensitive to changing economic conditions, and their prospects for growth are less certain than those of larger, more established companies. Historically, these securities have experienced more price volatility than larger company stocks, especially over the short term. Smaller companies may be more susceptible to particular events or economic conditions, less certain growth prospects, lack of depth of management and funds for growth and development and limited or less developed product lines and markets. Events such as the spread of deadly diseases, disasters, and financial, political or social disruptions, may heighten risks and adversely affect performance. There can be no assurance that the Fund’s multi-factor stock selection process will enhance performance. Exposure to such investment factors may detract from performance in some market environments, perhaps for extended periods. Performance of the Fund may vary significantly from the performance of an index, as a result of transactions costs, expenses and other factors. The Fund’s prospectus also includes a description of the main investment risks.
ETFs trade like stocks, fluctuate in market value and may trade at prices above or below their net asset value. Brokerage commissions and ETF expenses will reduce returns.
1. 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, including custody, transfer agency, and Trustee fees and expenses, among others, but 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. Figures are as stated in the Fund’s current prospectus and may differ from the expense ratios disclosed in the Your Fund’s Expenses and Financial Highlights sections in this report. In periods of market volatility, assets may decline significantly, causing total annual Fund operating expenses to become higher than the figures shown.
See www.franklintempletondatasources.com for additional data provider information.
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Semiannual Report |
franklintempleton.com |
FRANKLIN LIBERTYQ U.S. SMALL CAP EQUITY 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 x $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 4/1/21 |
Ending Account Value 9/30/21 |
Expenses Paid During Period 4/1/21–9/30/211,2 |
Ending Account Value 9/30/21 |
Expenses Paid During Period 4/1/21–9/30/211,2 |
Net Annualized Expense Ratio2 |
|||||||||||||||||
$1,000.00 | $ | 1,035.80 | $ | 1.79 | $ | 1,023.31 | $ | 1.78 | 0.35 | % |
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. Reflects expenses after fee waivers and expense reimbursements.
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FRANKLIN TEMPLETON ETF TRUST
Franklin LibertyQ Emerging Markets ETF
Six Months Ended September 30, 2021 (unaudited) |
Year Ended March 31, | |||||||||||||||||||||||
2021 | 2020 | 2019 | 2018 | 2017a | ||||||||||||||||||||
Per share operating performance (for a share outstanding throughout the period) |
||||||||||||||||||||||||
Net asset value, beginning of period |
$ | 30.78 | $ | 22.20 | $ | 29.70 | $ | 33.41 | $ | 29.29 | $ | 25.66 | ||||||||||||
|
|
|||||||||||||||||||||||
Income from investment operationsb: | ||||||||||||||||||||||||
Net investment incomec |
0.85 | 0.84 | 1.24 | 1.14 | 0.83 | 0.47 | ||||||||||||||||||
Net realized and unrealized gains (losses) |
(0.60 | ) | 8.55 | (6.96 | ) | (3.76 | ) | 4.15 | 3.25 | |||||||||||||||
|
|
|||||||||||||||||||||||
Total from investment operations |
0.25 | 9.39 | (5.72 | ) | (2.62 | ) | 4.98 | 3.72 | ||||||||||||||||
|
|
|||||||||||||||||||||||
Less distributions from net investment income |
(0.23 | ) | (0.81 | ) | (1.78 | ) | (1.09 | ) | (0.86 | ) | (0.09 | ) | ||||||||||||
|
|
|||||||||||||||||||||||
Net asset value, end of period |
$ | 30.80 | $ | 30.78 | $ | 22.20 | $ | 29.70 | $ | 33.41 | $ | 29.29 | ||||||||||||
|
|
|||||||||||||||||||||||
Total returnd |
0.78% | 42.57% | (20.55)% | (7.70)% | 17.20% | 14.55% | ||||||||||||||||||
Ratios to average net assetse | ||||||||||||||||||||||||
Expenses before waiver and payments by affiliates |
0.45% | 0.45% | 0.49% | 0.55% | 0.69% | f | 0.75% | |||||||||||||||||
Expenses net of waiver and payments by affiliates |
0.45% | 0.45% | 0.49% | 0.55% | 0.54% | f | 0.55% | |||||||||||||||||
Net investment income |
5.42% | 3.15% | 4.26% | 3.75% | 2.61% | 2.09% | ||||||||||||||||||
Supplemental data | ||||||||||||||||||||||||
Net assets, end of period (000’s) |
$24,641 | $24,627 | $57,711 | $344,484 | $400,908 | $328,086 | ||||||||||||||||||
Portfolio turnover rateg |
13.70% | h | 40.22% | h | 44.11% | h | 52.42% | 32.87% | 31.66% |
aFor the period June 1, 2016 (commencement of operations) to March 31, 2017.
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: | 13.70% | 36.91% | 41.78% |
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Semiannual Report | The accompanying notes are an integral part of these financial statements. |
franklintempleton.com |
FRANKLIN TEMPLETON ETF TRUST
Statement of Investments, September 30, 2021 (unaudited)
Franklin LibertyQ Emerging Markets ETF
Industry | Shares | Value | ||||||||||||
Common Stocks 99.0% | ||||||||||||||
Brazil 2.7% | ||||||||||||||
Ambev SA |
Beverages | 76,800 | $ | 215,647 | ||||||||||
BB Seguridade Participacoes SA |
Insurance | 20,800 | 76,155 | |||||||||||
Engie Brasil Energia SA |
Independent Power and Renewable Electricity Producers | 4,400 | 30,249 | |||||||||||
Petrobras Distribuidora SA |
Specialty Retail | 8,000 | 34,488 | |||||||||||
Telefonica Brasil SA |
Diversified Telecommunication Services | 12,409 | 97,629 | |||||||||||
TIM SA |
Wireless Telecommunication Services | 17,600 | 37,953 | |||||||||||
Vale SA |
Metals & Mining | 11,860 | 165,943 | |||||||||||
|
|
|||||||||||||
658,064 | ||||||||||||||
|
|
|||||||||||||
Chile 0.6% | ||||||||||||||
Colbun SA |
Independent Power and Renewable Electricity Producers | 161,524 | 26,132 | |||||||||||
Compania Cervecerias Unidas SA |
Beverages | 2,872 | 25,530 | |||||||||||
Enel Americas SA |
Electric Utilities | 546,020 | 64,498 | |||||||||||
Enel Chile SA |
Electric Utilities | 632,104 | 29,885 | |||||||||||
|
|
|||||||||||||
146,045 | ||||||||||||||
|
|
|||||||||||||
China 25.7% | ||||||||||||||
a |
360 DigiTech Inc. |
Consumer Finance | 940 | 19,101 | ||||||||||
b |
A-Living Services Co. Ltd., 144A |
Commercial Services & Supplies | 8,000 | 28,466 | ||||||||||
Agile Group Holdings Ltd. |
Real Estate Management & Development | 12,000 | 11,222 | |||||||||||
Agricultural Bank of China Ltd., A |
Banks | 77,600 | 35,349 | |||||||||||
Agricultural Bank of China Ltd., H |
Banks | 548,000 | 188,658 | |||||||||||
Anhui Conch Cement Co. Ltd., A |
Construction Materials | 6,000 | 37,930 | |||||||||||
Anhui Conch Cement Co. Ltd., H |
Construction Materials | 34,230 | 184,679 | |||||||||||
Anhui Kouzi Distillery Co. Ltd., A |
Beverages | 800 | 6,257 | |||||||||||
Apeloa Pharmaceutical Co. Ltd., A |
Pharmaceuticals | 1,200 | 7,099 | |||||||||||
Autobio Diagnostics Co. Ltd., A |
Health Care Equipment & Supplies | 390 | 3,221 | |||||||||||
Bank of Beijing Co. Ltd., A |
Banks | 26,400 | 17,834 | |||||||||||
Bank of Chengdu Co. Ltd., A |
Banks | 3,200 | 5,880 | |||||||||||
Bank of China Ltd., A |
Banks | 14,000 | 6,616 | |||||||||||
Bank of China Ltd., H |
Banks | 616,000 | 218,399 | |||||||||||
Bank of Communications Co. Ltd., A |
Banks | 53,600 | 37,372 | |||||||||||
Bank of Communications Co. Ltd., H |
Banks | 224,400 | 133,176 | |||||||||||
Bank of Hangzhou Co. Ltd., A |
Banks | 6,000 | 13,880 | |||||||||||
Bank of Jiangsu Co. Ltd., A |
Banks | 8,800 | 7,936 | |||||||||||
Bank of Nanjing Co. Ltd., A |
Banks | 10,800 | 15,144 | |||||||||||
Baoshan Iron & Steel Co. Ltd., A |
Metals & Mining | 23,200 | 31,274 | |||||||||||
Beijing Enterprises Holdings Ltd. |
Gas Utilities | 5,000 | 20,007 | |||||||||||
a |
Brilliance China Automotive Holdings Ltd. |
Automobiles | 66,000 | 28,434 | ||||||||||
By-health Co. Ltd., A |
Personal Products | 1,600 | 7,001 | |||||||||||
C&S Paper Co. Ltd., A |
Household Products | 1,200 | 3,213 | |||||||||||
Chaozhou Three-Circle Group Co. Ltd., A |
Electronic Equipment, Instruments & Components | 1,600 | 9,197 | |||||||||||
China Cinda Asset Management Co. Ltd., H |
Capital Markets | 208,000 | 35,269 | |||||||||||
China CITIC Bank Corp. Ltd., H |
Banks | 236,000 | 106,713 | |||||||||||
China Communications Services Corp. Ltd., H |
Construction & Engineering | 24,000 | 13,318 | |||||||||||
China Conch Venture Holdings Ltd. |
Construction & Engineering | 37,000 | 171,344 | |||||||||||
China Construction Bank Corp., A |
Banks | 800 | 740 | |||||||||||
China Construction Bank Corp., H |
Banks | 316,000 | 226,507 | |||||||||||
China Everbright Bank Co. Ltd., A |
Banks | 47,600 | 25,002 | |||||||||||
China Everbright Bank Co. Ltd., H |
Banks | 80,000 | 28,261 | |||||||||||
b,c |
China Feihe Ltd., 144A, Reg S |
Food Products | 52,000 | 87,773 | ||||||||||
China Hongqiao Group Ltd. |
Metals & Mining | 40,000 | 51,486 | |||||||||||
China Lesso Group Holdings Ltd. |
Building Products | 20,000 | 32,063 | |||||||||||
China Medical System Holdings Ltd. |
Pharmaceuticals | 36,000 | 65,668 | |||||||||||
China Merchants Port Holdings Co. Ltd. |
Transportation Infrastructure | 24,000 | 41,189 | |||||||||||
China Minsheng Banking Corp. Ltd., A |
Banks | 46,400 | 28,110 |
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39 |
FRANKLIN TEMPLETON ETF TRUST
STATEMENT OF INVESTMENTS (UNAUDITED)
Franklin LibertyQ Emerging Markets ETF (continued)
Industry | Shares | Value | ||||||||||||
Common Stocks (continued) | ||||||||||||||
China (continued) | ||||||||||||||
China Minsheng Banking Corp. Ltd., H |
Banks | 146,000 | $ | 58,703 | ||||||||||
China National Building Material Co. Ltd., H |
Construction Materials | 72,000 | 97,484 | |||||||||||
China Overseas Property Holdings Ltd. |
Real Estate Management & Development | 25,000 | 20,746 | |||||||||||
China Pacific Insurance Group Co. Ltd., A |
Insurance | 6,400 | 26,913 | |||||||||||
China Pacific Insurance Group Co. Ltd., H |
Insurance | 45,600 | 135,605 | |||||||||||
China Petroleum & Chemical Corp., H |
Oil, Gas & Consumable Fuels | 264,000 | 130,904 | |||||||||||
China Railway Group Ltd., H |
Construction & Engineering | 60,000 | 29,905 | |||||||||||
China Resources Cement Holdings Ltd. |
Construction Materials | 66,000 | 63,671 | |||||||||||
China Resources Power Holdings Co. Ltd. |
Independent Power and Renewable Electricity Producers | 32,000 | 92,284 | |||||||||||
China Shenhua Energy Co. Ltd., A |
Oil, Gas & Consumable Fuels | 8,800 | 30,897 | |||||||||||
China Shenhua Energy Co. Ltd., H |
Oil, Gas & Consumable Fuels | 96,120 | 224,969 | |||||||||||
China South Publishing & Media Group Co. Ltd., A |
Media | 2,400 | 3,332 | |||||||||||
China Taiping Insurance Holdings Co. Ltd. |
Insurance | 29,600 | 45,020 | |||||||||||
China Yangtze Power Co. Ltd., A |
Independent Power and Renewable Electricity Producers | 25,200 | 85,900 | |||||||||||
a |
Chongqing Brewery Co. Ltd., A |
Beverages | 600 | 12,200 | ||||||||||
Chongqing Rural Commercial Bank Co. Ltd., A |
Banks | 5,600 | 3,349 | |||||||||||
Chongqing Rural Commercial Bank Co. Ltd., H |
Banks | 28,000 | 10,215 | |||||||||||
Country Garden Services Holdings Co. Ltd. |
Commercial Services & Supplies | 26,400 | 208,564 | |||||||||||
Daan Gene Co. Ltd. |
Biotechnology | 1,860 | 5,352 | |||||||||||
b |
Dali Foods Group Co. Ltd., 144A |
Food Products | 50,000 | 30,188 | ||||||||||
Dongfeng Motor Group Co. Ltd., H |
Automobiles | 64,000 | 57,138 | |||||||||||
Financial Street Holdings Co. Ltd., A |
Real Estate Management & Development | 2,000 | 1,859 | |||||||||||
Focus Media Information Technology Co. Ltd. |
Media | 16,400 | 18,601 | |||||||||||
Foshan Haitian Flavouring & Food Co. Ltd. |
Food Products | 4,800 | 81,810 | |||||||||||
Fujian Sunner Development Co. Ltd. |
Food Products | 2,000 | 6,694 | |||||||||||
G-bits Network Technology Xiamen Co. Ltd., A |
Entertainment | 100 | 6,063 | |||||||||||
Greendland Holdings Corp. Ltd., A |
Real Estate Management & Development | 5,040 | 3,670 | |||||||||||
Guangdong Xinbao Electrical Appliances Holdings Co. Ltd. |
Household Durables | 800 | 2,277 | |||||||||||
Guangzhou R&F Properties Co. Ltd., H |
Real Estate Management & Development | 28,800 | 22,124 | |||||||||||
Guangzhou Shiyuan Electronic Technology Co. Ltd., A |
Electronic Equipment, Instruments & Components | 800 | 9,712 | |||||||||||
Guangzhou Wondfo Biotech Co. Ltd., A |
Health Care Equipment & Supplies | 390 | 2,598 | |||||||||||
Haitian International Holdings Ltd. |
Machinery | 10,000 | 30,894 | |||||||||||
Hangzhou Robam Appliances Co. Ltd., A |
Household Durables | 1,200 | 6,284 | |||||||||||
Heilongjiang Agriculture Co. Ltd., A |
Food Products | 2,000 | 4,695 | |||||||||||
Henan Shuanghui Investment & Development Co. Ltd. |
Food Products | 3,900 | 16,406 | |||||||||||
Hengan International Group Co. Ltd. |
Personal Products | 10,000 | 53,567 | |||||||||||
Hithink RoyalFlush Information Network Co. Ltd., A |
Capital Markets | 600 | 11,146 | |||||||||||
Hopson Development Holdings Ltd. |
Real Estate Management & Development | 10,400 | 37,006 | |||||||||||
Huaxia Bank Co. Ltd., A |
Banks | 12,400 | 10,702 | |||||||||||
Huaxin Cement Co. Ltd., A |
Construction Materials | 2,000 | 6,337 | |||||||||||
Hunan Valin Steel Co. Ltd., A |
Metals & Mining | 8,400 | 8,629 | |||||||||||
Industrial and Commercial Bank of China Ltd. |
Banks | 18,800 | 13,574 | |||||||||||
Industrial and Commercial Bank of China Ltd., H |
Banks | 376,000 | 209,140 | |||||||||||
Inner Mongolia Junzheng Energy & Chemical Industry Group Co. Ltd., A |
Chemicals | 10,000 | 8,863 |
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FRANKLIN TEMPLETON ETF TRUST
STATEMENT OF INVESTMENTS (UNAUDITED)
Franklin LibertyQ Emerging Markets ETF (continued)
Industry | Shares | Value | ||||||||||||
Common Stocks (continued) | ||||||||||||||
China (continued) | ||||||||||||||
Inner Mongolia Yili Industrial Group Co. Ltd., A |
Food Products | 6,400 | $ | 37,385 | ||||||||||
Intco Medical Technology Co. Ltd. |
Health Care Equipment & Supplies | 600 | 5,451 | |||||||||||
Jafron Biomedical Co. Ltd., A |
Health Care Equipment & Supplies | 1,070 | 9,709 | |||||||||||
Jason Furniture Hangzhou Co. Ltd., A |
Household Durables | 400 | 3,719 | |||||||||||
Jiangsu Expressway Co. Ltd., H |
Transportation Infrastructure | 25,000 | 25,338 | |||||||||||
Jiangsu Hengli Hydraulic Co. Ltd., A |
Machinery | 1,200 | 15,726 | |||||||||||
Jiangsu Yanghe Brewery JST Co. Ltd., A |
Beverages | 1,500 | 38,599 | |||||||||||
Jiangsu Zhongtian Technology Co. Ltd., A |
Electrical Equipment | 3,200 | 4,512 | |||||||||||
Jiangxi Zhengbang Technology Co. Ltd., A |
Food Products | 3,600 | 5,260 | |||||||||||
Juewei Food Co. Ltd., A |
Food Products | 800 | 7,927 | |||||||||||
Kingboard Holdings Ltd. |
Electronic Equipment, Instruments & Components | 8,000 | 36,225 | |||||||||||
Kingfa Sci & Tech Co. Ltd., A |
Chemicals | 1,600 | 3,637 | |||||||||||
Kunlun Tech Co. Ltd. |
Entertainment | 1,200 | 3,152 | |||||||||||
Kweichow Moutai Co. Ltd., A |
Beverages | 790 | 224,001 | |||||||||||
Lee & Man Paper Manufacturing Ltd. |
Paper & Forest Products | 32,000 | 23,554 | |||||||||||
Luzhou Laojiao Co. Ltd., A |
Beverages | 1,700 | 58,365 | |||||||||||
Maxscend Microelectronics Co. Ltd., A |
Electronic Equipment, Instruments & Components | 200 | 10,908 | |||||||||||
Muyuan Foods Co. Ltd. |
Food Products | 6,720 | 54,039 | |||||||||||
NanJi E-Commerce Co. Ltd. |
Media | 2,800 | 2,863 | |||||||||||
NetEase Inc., ADR |
Entertainment | 2,424 | 207,010 | |||||||||||
New China Life Insurance Co. Ltd., H |
Insurance | 8,800 | 26,000 | |||||||||||
a |
New Hope Liuhe Co. Ltd. |
Food Products | 4,800 | 10,977 | ||||||||||
Nine Dragons Paper Holdings Ltd. |
Paper & Forest Products | 36,000 | 44,349 | |||||||||||
Ningxia Baofeng Energy Group Co. Ltd., A |
Chemicals | 3,600 | 8,969 | |||||||||||
a |
Offcn Education Technology Co. Ltd., A |
Diversified Consumer Services | 2,000 | 3,359 | ||||||||||
Ovctek China Inc., A |
Health Care Equipment & Supplies | 989 | 12,513 | |||||||||||
Perfect World Co. Ltd. |
Entertainment | 2,000 | 4,673 | |||||||||||
PetroChina Co. Ltd., H |
Oil, Gas & Consumable Fuels | 232,000 | 109,970 | |||||||||||
PICC Property and Casualty Co. Ltd., H |
Insurance | 108,000 | 104,745 | |||||||||||
b |
Postal Savings Bank of China Co. Ltd., 144A |
Banks | 164,000 | 113,341 | ||||||||||
RiseSun Real Estate Development Co. Ltd. |
Real Estate Management & Development | 5,200 | 3,883 | |||||||||||
Sany Heavy Industry Co. Ltd., A |
Machinery | 9,200 | 36,264 | |||||||||||
Seazen Group Ltd. |
Real Estate Management & Development | 36,000 | 28,811 | |||||||||||
Seazen Holdings Co. Ltd., A |
Real Estate Management & Development | 2,400 | 13,863 | |||||||||||
Shaanxi Coal Industry Co. Ltd. |
Oil, Gas & Consumable Fuels | 12,800 | 29,352 | |||||||||||
Shandong Buchang Pharmaceuticals Co. Ltd., A |
Pharmaceuticals | 1,600 | 4,571 | |||||||||||
Shandong Hualu Hengsheng Chemical Co. Ltd., A |
Chemicals | 2,600 | 13,266 | |||||||||||
Shandong Sun Paper Industry JSC Ltd., A |
Paper & Forest Products | 2,400 | 4,447 | |||||||||||
Shanghai Pharmaceuticals Holding Co. Ltd., H |
Health Care Providers & Services | 7,600 | 14,761 | |||||||||||
Shanghai Pudong Development Bank Co. Ltd., A |
Banks | 19,200 | 26,774 | |||||||||||
Shanxi Lu’an Environmental Energy Development Co. Ltd., A |
Oil, Gas & Consumable Fuels | 3,200 | 7,442 | |||||||||||
Shanxi Xinghuacun Fen Wine Factory Co. Ltd., A |
Beverages | 1,120 | 54,751 | |||||||||||
Shengyi Technology Co. Ltd., A |
Electronic Equipment, Instruments & Components | 2,000 | 6,712 | |||||||||||
Shenzhen Goodix Technology Co. Ltd., A |
Semiconductors & Semiconductor Equipment | 600 | 10,299 | |||||||||||
Shenzhen International Holdings Ltd. |
Transportation Infrastructure | 18,000 | 23,169 | |||||||||||
Shenzhen Investment Ltd. |
Real Estate Management & Development | 48,000 | 12,085 | |||||||||||
Shenzhen Mindray Bio-Medical Electronics Co. Ltd., A |
Health Care Equipment & Supplies | 1,273 | 76,021 | |||||||||||
a |
Shenzhen Salubris Pharmaceuticals Co. Ltd. |
Pharmaceuticals | 1,200 | 5,383 | ||||||||||
Sichuan Chuantou Energy Co Ltd., A |
Independent Power and Renewable Electricity Producers | 4,400 | 9,797 |
franklintempleton.com |
Semiannual Report |
41 |
FRANKLIN TEMPLETON ETF TRUST
STATEMENT OF INVESTMENTS (UNAUDITED)
Franklin LibertyQ Emerging Markets ETF (continued)
Industry | Shares | Value | ||||||||||||
Common Stocks (continued) | ||||||||||||||
China (continued) | ||||||||||||||
Sichuan Swellfun Co. Ltd., A |
Beverages | 600 | $ | 11,821 | ||||||||||
b |
Smoore International Holdings Ltd., 144A |
Tobacco | 13,000 | 60,619 | ||||||||||
Suofeiya Home Collection Co. Ltd. |
Household Durables | 400 | 1,031 | |||||||||||
Tangshan Jidong Cement Co. Ltd. |
Construction Materials | 1,600 | 3,191 | |||||||||||
The People’s Insurance Co. Group of China Ltd., H |
Insurance | 140,000 | 43,522 | |||||||||||
Toly Bread Co. Ltd., A |
Food Products | 1,120 | 5,045 | |||||||||||
Tonghua Dongbao Pharmaceutical Co. Ltd. |
Pharmaceuticals | 2,000 | 3,260 | |||||||||||
Tongkun Group Co. Ltd., A |
Chemicals | 2,000 | 6,799 | |||||||||||
a |
Topchoice Medical Investment Corp., A |
Health Care Providers & Services | 400 | 18,718 | ||||||||||
Uni-President China Holdings Ltd. |
Food Products | 12,000 | 11,422 | |||||||||||
a |
Vipshop Holdings Ltd., ADR |
Internet & Direct Marketing Retail | 6,472 | 72,098 | ||||||||||
Wanhua Chemical Group Co. Ltd., A |
Chemicals | 3,600 | 59,544 | |||||||||||
Want Want China Holdings Ltd. |
Food Products | 80,000 | 60,529 | |||||||||||
Weifu High-Technology Group Co. Ltd., A |
Auto Components | 1,200 | 3,845 | |||||||||||
Weihai Guangwei Composites Co. Ltd., A |
Chemicals | 800 | 8,121 | |||||||||||
Wens Foodstuffs Group Co. Ltd. |
Food Products | 10,400 | 23,317 | |||||||||||
Wuhu Sanqi Interactive Entertainment NetworkTechnology Group Co. Ltd. |
Entertainment | 3,200 | 10,407 | |||||||||||
Wuliangye Yibin Co. Ltd., A |
Beverages | 4,400 | 149,569 | |||||||||||
Xiamen C & D Inc., A |
Trading Companies & Distributors | 3,200 | 4,145 | |||||||||||
b,c |
Yadea Group Holdings Ltd., 144A, Reg S |
Automobiles | 18,000 | 29,412 | ||||||||||
Yanzhou Coal Mining Co. Ltd., A |
Oil, Gas & Consumable Fuels | 2,400 | 10,780 | |||||||||||
Yanzhou Coal Mining Co. Ltd., H |
Oil, Gas & Consumable Fuels | 34,000 | 64,378 | |||||||||||
Yealink Network Technology Corp. Ltd. |
Communications Equipment | 1,000 | 12,589 | |||||||||||
Yihai International Holding Ltd. |
Food Products | 8,400 | 46,777 | |||||||||||
Yuexiu Property Co. Ltd. |
Real Estate Management & Development | 28,800 | 27,081 | |||||||||||
Yunda Holding Co. Ltd., A |
Air Freight & Logistics | 3,050 | 9,097 | |||||||||||
Yutong Bus Co. Ltd., A |
Machinery | 2,000 | 3,511 | |||||||||||
Zhejiang Longsheng Group Co. Ltd., A |
Chemicals | 2,800 | 5,865 | |||||||||||
Zhejiang NHU Co. Ltd. |
Pharmaceuticals | 2,880 | 11,986 | |||||||||||
Zhejiang Semir Garment Co. Ltd. |
Textiles, Apparel & Luxury Goods | 2,800 | 3,315 | |||||||||||
Zhejiang Supor Co. Ltd. |
Household Durables | 800 | 5,790 | |||||||||||
Zhejiang Weixing New Building Materials Co. Ltd., A |
Building Products | 2,000 | 5,234 | |||||||||||
Zhejiang Wolwo Bio-Pharmaceutical Co. Ltd., A |
Pharmaceuticals | 400 | 3,632 | |||||||||||
Zhuzhou Kibing Group Co. Ltd., A |
Building Products | 1,600 | 4,296 | |||||||||||
|
|
|||||||||||||
6,335,451 | ||||||||||||||
|
|
|||||||||||||
Czech Republic 0.2% | ||||||||||||||
CEZ AS |
Electric Utilities | 1,608 | 52,393 | |||||||||||
|
|
|||||||||||||
Egypt 0.1% | ||||||||||||||
Eastern Co. SAE |
Tobacco | 33,544 | 26,118 | |||||||||||
a |
Fawry for Banking & Payment Technology Services SAE |
IT Services | 5,024 | 4,542 | ||||||||||
|
|
|||||||||||||
30,660 | ||||||||||||||
|
|
|||||||||||||
Greece 0.4% | ||||||||||||||
Hellenic Telecommunications Organization SA |
Diversified Telecommunication Services | 4,088 | 76,847 | |||||||||||
JUMBO SA |
Specialty Retail | 1,584 | 25,903 | |||||||||||
|
|
|||||||||||||
102,750 | ||||||||||||||
|
|
|||||||||||||
Hong Kong 0.5% | ||||||||||||||
Kingboard Laminates Holdings Ltd. |
Electronic Equipment, Instruments & Components | 22,000 | 36,400 | |||||||||||
The Wharf Holdings Ltd. |
Real Estate Management & Development | 24,000 | 79,695 | |||||||||||
|
|
|||||||||||||
116,095 | ||||||||||||||
|
|
|||||||||||||
Hungary 0.2% | ||||||||||||||
Richter Gedeon Nyrt |
Pharmaceuticals | 1,408 | 38,545 | |||||||||||
|
|
42 |
Semiannual Report |
franklintempleton.com |
FRANKLIN TEMPLETON ETF TRUST
STATEMENT OF INVESTMENTS (UNAUDITED)
Franklin LibertyQ Emerging Markets ETF (continued)
Industry | Shares | Value | ||||||||||||
Common Stocks (continued) | ||||||||||||||
India 15.2% | ||||||||||||||
Adani Total Gas Ltd |
Gas Utilities | 3,096 | $ | 59,359 | ||||||||||
Ambuja Cements Ltd. |
Construction Materials | 7,492 | 40,393 | |||||||||||
Asian Paints Ltd. |
Chemicals | 6,608 | 288,850 | |||||||||||
Bajaj Auto Ltd. |
Automobiles | 1,612 | 83,234 | |||||||||||
Bharti Infratel Ltd. |
Diversified Telecommunication Services | 10,044 | 41,771 | |||||||||||
Britannia Industries Ltd. |
Food Products | 2,260 | 120,233 | |||||||||||
Coal India Ltd. |
Oil, Gas & Consumable Fuels | 41,280 | 102,939 | |||||||||||
Colgate-Palmolive (India) Ltd. |
Personal Products | 2,876 | 64,686 | |||||||||||
Container Corp. of India Ltd. |
Road & Rail | 4,016 | 38,105 | |||||||||||
Dabur India Ltd. |
Personal Products | 11,336 | 94,236 | |||||||||||
GAIL India Ltd. |
Gas Utilities | 36,516 | 78,146 | |||||||||||
HCL Technologies Ltd. |
IT Services | 20,204 | 348,281 | |||||||||||
b,c |
HDFC Asset Management Co. Ltd., 144A, Reg S |
Capital Markets | 1,216 | 47,649 | ||||||||||
Hero Motocorp Ltd. |
Automobiles | 2,688 | 102,573 | |||||||||||
Hindustan Petroleum Corp. Ltd. |
Oil, Gas & Consumable Fuels | 16,052 | 64,876 | |||||||||||
Hindustan Unilever Ltd. |
Household Products | 7,844 | 285,513 | |||||||||||
Indian Oil Corp. Ltd. |
Oil, Gas & Consumable Fuels | 19,404 | 32,755 | |||||||||||
Indraprastha Gas Ltd. |
Gas Utilities | 4,764 | 34,215 | |||||||||||
Infosys Ltd. |
IT Services | 14,012 | 316,229 | |||||||||||
IPCA Laboratories Ltd. |
Pharmaceuticals | 1,000 | 32,486 | |||||||||||
ITC Ltd. |
Tobacco | 77,068 | 245,187 | |||||||||||
b |
Larsen & Toubro Infotech Ltd., 144A |
IT Services | 796 | 61,824 | ||||||||||
Marico Ltd. |
Personal Products | 11,808 | 87,096 | |||||||||||
Nestle India Ltd. |
Food Products | 768 | 201,195 | |||||||||||
Page Industries Ltd. |
Textiles, Apparel & Luxury Goods | 124 | 52,964 | |||||||||||
Petronet LNG Ltd. |
Oil, Gas & Consumable Fuels | 14,908 | 47,911 | |||||||||||
Pidilite Industries Ltd. |
Chemicals | 2,936 | 94,216 | |||||||||||
REC Ltd. |
Diversified Financial Services | 16,864 | 35,863 | |||||||||||
Tata Consultancy Services Ltd. |
IT Services | 6,068 | 308,646 | |||||||||||
Tech Mahindra Ltd. |
IT Services | 11,728 | 218,136 | |||||||||||
Wipro Ltd. |
IT Services | 13,680 | 116,864 | |||||||||||
|
|
|||||||||||||
3,746,431 | ||||||||||||||
|
|
|||||||||||||
Indonesia 2.2% | ||||||||||||||
Adaro Energy Tbk PT |
Oil, Gas & Consumable Fuels | 321,200 | 39,498 | |||||||||||
Gudang Garam Tbk PT |
Tobacco | 10,000 | 22,742 | |||||||||||
Indofood CBP Sukses Makmur Tbk PT |
Food Products | 44,400 | 25,903 | |||||||||||
Indofood Sukses Makmur Tbk PT |
Food Products | 68,000 | 30,170 | |||||||||||
Perusahaan Perseroan (Persero) PT TelekomunikasiIndonesia Tbk, B |
Diversified Telecommunication Services | 1,140,800 | 294,117 | |||||||||||
Unilever Indonesia Tbk PT |
Household Products | 203,600 | 56,190 | |||||||||||
United Tractors Tbk PT |
Oil, Gas & Consumable Fuels | 38,800 | 70,484 | |||||||||||
|
|
|||||||||||||
539,104 | ||||||||||||||
|
|
|||||||||||||
Kuwait 0.3% | ||||||||||||||
Mobile Telecommunications Co. KSCP |
Wireless Telecommunication Services | 34,108 | 67,741 | |||||||||||
|
|
|||||||||||||
Malaysia 2.0% | ||||||||||||||
a |
AMMB Holdings Bhd. |
Banks | 26,800 | 20,357 | ||||||||||
Digi.com Bhd. |
Wireless Telecommunication Services | 76,800 | 81,634 | |||||||||||
Hartalega Holdings Bhd. |
Health Care Equipment & Supplies | 43,200 | 63,461 | |||||||||||
Kossan Rubber Industries |
Health Care Equipment & Supplies | 30,400 | 16,774 | |||||||||||
MISC Bhd. |
Marine | 13,600 | 22,447 | |||||||||||
Nestle (Malaysia) Bhd. |
Food Products | 1,800 | 57,227 | |||||||||||
Petronas Gas Bhd. |
Gas Utilities | 17,600 | 70,711 | |||||||||||
Sime Darby Bhd. |
Industrial Conglomerates | 27,600 | 14,965 | |||||||||||
Supermax Corp. Bhd |
Health Care Equipment & Supplies | 34,062 | 19,445 | |||||||||||
Top Glove Corp. Bhd. |
Health Care Equipment & Supplies | 141,200 | 97,135 |
franklintempleton.com |
Semiannual Report |
43 |
FRANKLIN TEMPLETON ETF TRUST
STATEMENT OF INVESTMENTS (UNAUDITED)
Franklin LibertyQ Emerging Markets ETF (continued)
Industry | Shares | Value | ||||||||||||
Common Stocks (continued) | ||||||||||||||
Malaysia (continued) | ||||||||||||||
Westports Holdings Bhd. |
Transportation Infrastructure | 21,200 | $ | 22,788 | ||||||||||
|
|
|||||||||||||
486,944 | ||||||||||||||
|
|
|||||||||||||
Mexico 2.5% | ||||||||||||||
Fibra Uno Administracion SA de CV |
Equity Real Estate Investment Trusts (REITs | ) | 56,932 | 64,845 | ||||||||||
Grupo Mexico SAB de CV, B |
Metals & Mining | 50,136 | 201,061 | |||||||||||
Kimberly-Clark de Mexico SAB de CV, A |
Household Products | 37,352 | 61,797 | |||||||||||
Megacable Holdings SAB de CV |
Media | 7,032 | 21,598 | |||||||||||
Wal-Mart de Mexico SAB de CV, V |
Food & Staples Retailing | 80,852 | 275,994 | |||||||||||
|
|
|||||||||||||
625,295 | ||||||||||||||
|
|
|||||||||||||
Pakistan 0.0%† | ||||||||||||||
MCB Bank Ltd. |
Banks | 9,124 | 8,076 | |||||||||||
|
|
|||||||||||||
Philippines 0.6% | ||||||||||||||
Globe Telecom Inc. |
Wireless Telecommunication Services | 720 | 42,119 | |||||||||||
Manila Electric Co. |
Electric Utilities | 5,320 | 31,079 | |||||||||||
Metro Pacific Investments Corp. |
Diversified Financial Services | 224,000 | 16,028 | |||||||||||
PLDT Inc. |
Wireless Telecommunication Services | 1,520 | 50,061 | |||||||||||
|
|
|||||||||||||
139,287 | ||||||||||||||
|
|
|||||||||||||
Poland 0.6% | ||||||||||||||
Polski Koncern Naftowy Orlen SA |
Oil, Gas & Consumable Fuels | 4,856 | 100,293 | |||||||||||
Polskie Gornictwo Naftowe i Gazownictwo SA |
Oil, Gas & Consumable Fuels | 28,232 | 45,953 | |||||||||||
|
|
|||||||||||||
146,246 | ||||||||||||||
|
|
|||||||||||||
Qatar 1.4% | ||||||||||||||
Industries Qatar QSC |
Industrial Conglomerates | 36,564 | 155,154 | |||||||||||
Masraf Al Rayan QSC |
Banks | 69,184 | 85,107 | |||||||||||
Qatar Electricity & Water Co. QSC |
Multi-Utilities | 11,088 | 51,557 | |||||||||||
Qatar Fuel QSC |
Oil, Gas & Consumable Fuels | 9,264 | 45,646 | |||||||||||
|
|
|||||||||||||
337,464 | ||||||||||||||
|
|
|||||||||||||
Russia 10.6% | ||||||||||||||
Alrosa PJSC |
Metals & Mining | 70,872 | 129,524 | |||||||||||
Gazprom PJSC |
Oil, Gas & Consumable Fuels | 74,932 | 372,205 | |||||||||||
Inter RAO UES PJSC |
Electric Utilities | 1,069,176 | 68,262 | |||||||||||
LUKOIL PJSC |
Oil, Gas & Consumable Fuels | 3,168 | 301,718 | |||||||||||
MMC Norilsk Nickel PJSC |
Metals & Mining | 684 | 204,866 | |||||||||||
Mobile TeleSystems PJSC, ADR |
Wireless Telecommunication Services | 12,248 | 118,071 | |||||||||||
Moscow Exchange MICEX |
Capital Markets | 27,504 | 65,725 | |||||||||||
NLMK PJSC |
Metals & Mining | 41,836 | 124,706 | |||||||||||
c |
PhosAgro PJSC, GDR, Reg S |
Chemicals | 3,796 | 84,575 | ||||||||||
Polymetal International PLC |
Metals & Mining | 8,252 | 140,415 | |||||||||||
Polyus Gold OJSC |
Metals & Mining | 932 | 153,146 | |||||||||||
Rosneft PJSC |
Oil, Gas & Consumable Fuels | 25,020 | 211,751 | |||||||||||
Severstal PAO |
Metals & Mining | 7,756 | 161,950 | |||||||||||
Surgutneftegas PJSC |
Oil, Gas & Consumable Fuels | 162,924 | 82,352 | |||||||||||
Tatneft PAO |
Oil, Gas & Consumable Fuels | 37,336 | 270,998 | |||||||||||
TCS Group Holding PLC, GDR |
Banks | 1,460 | 133,622 | |||||||||||
|
|
|||||||||||||
2,623,886 | ||||||||||||||
|
|
|||||||||||||
Saudi Arabia 4.6% | ||||||||||||||
Abdullah Al Othaim Markets Co. |
Food & Staples Retailing | 836 | 25,098 | |||||||||||
Advanced Petrochemical Co. |
Chemicals | 2,628 | 52,550 | |||||||||||
Al-Rajhi Bank |
Banks | 9,432 | 308,306 | |||||||||||
Bupa Arabia for Cooperative Insurance Co. |
Insurance | 1,052 | 41,848 | |||||||||||
Dr Sulaiman Al Habib Medical Services Group Co. |
Health Care Providers & Services | 544 | 25,237 |
44 |
Semiannual Report |
franklintempleton.com |
FRANKLIN TEMPLETON ETF TRUST
STATEMENT OF INVESTMENTS (UNAUDITED)
Franklin LibertyQ Emerging Markets ETF (continued)
Industry | Shares | Value | ||||||||||||
Common Stocks (continued) | ||||||||||||||
Saudi Arabia (continued) | ||||||||||||||
Jarir Marketing Co. |
Specialty Retail | 1,640 | $ | 91,648 | ||||||||||
Saudi Arabian Fertilizer Co. |
Chemicals | 4,464 | 205,901 | |||||||||||
Saudi Cement Co. |
Construction Materials | 1,652 | 27,660 | |||||||||||
Saudi Telecom Co. |
Diversified Telecommunication Services | 7,876 | 266,684 | |||||||||||
Yanbu National Petrochemical Co. |
Chemicals | 4,912 | 93,245 | |||||||||||
|
|
|||||||||||||
1,138,177 | ||||||||||||||
|
|
|||||||||||||
South Africa 4.3% | ||||||||||||||
African Rainbow Minerals Ltd. |
Metals & Mining | 2,376 | 29,944 | |||||||||||
Anglo American Platinum Ltd. |
Metals & Mining | 572 | 49,593 | |||||||||||
AngloGold Ashanti Ltd. |
Metals & Mining | 8,676 | 137,086 | |||||||||||
Clicks Group Ltd. |
Food & Staples Retailing | 5,020 | 92,659 | |||||||||||
Exxaro Resources Ltd. |
Oil, Gas & Consumable Fuels | 7,100 | 75,993 | |||||||||||
Gold Fields Ltd. |
Metals & Mining | 9,368 | 76,762 | |||||||||||
Impala Platinum Holdings Ltd. |
Metals & Mining | 13,656 | 155,821 | |||||||||||
Kumba Iron Ore Ltd. |
Metals & Mining | 2,272 | 74,895 | |||||||||||
Mr. Price Group Ltd. |
Specialty Retail | 6,124 | 81,906 | |||||||||||
Sibanye Stillwater Ltd. |
Metals & Mining | 31,568 | 97,610 | |||||||||||
Tiger Brands Ltd. |
Food Products | 3,316 | 41,275 | |||||||||||
Vodacom Group Ltd. |
Wireless Telecommunication Services | 15,676 | 150,081 | |||||||||||
|
|
|||||||||||||
1,063,625 | ||||||||||||||
|
|
|||||||||||||
South Korea 7.0% | ||||||||||||||
Coway Co. Ltd. |
Household Durables | 1,192 | 74,701 | |||||||||||
Hana Financial Group Inc. |
Banks | 6,236 | 244,384 | |||||||||||
Industrial Bank of Korea |
Banks | 6,236 | 55,302 | |||||||||||
KB Financial Group Inc. |
Banks | 4,992 | 233,157 | |||||||||||
Korea Zinc Co. Ltd. |
Metals & Mining | 156 | 66,274 | |||||||||||
KT&G Corp. |
Tobacco | 2,768 | 189,833 | |||||||||||
Kumho Petrochemical Co. Ltd. |
Chemicals | 372 | 59,382 | |||||||||||
NCSoft Corp. |
Entertainment | 312 | 158,899 | |||||||||||
a |
Pearl Abyss Corp. |
Entertainment | 572 | 38,842 | ||||||||||
S-1 Corp. |
Commercial Services & Supplies | 352 | 24,854 | |||||||||||
Samsung Electronics Co. Ltd. |
Technology Hardware, Storage & Peripherals | 3,104 | 194,262 | |||||||||||
Seegene Inc. |
Biotechnology | 724 | 37,117 | |||||||||||
Shinhan Financial Group Co. Ltd. |
Banks | 7,024 | 239,670 | |||||||||||
Woori Financial Group Inc. |
Banks | 10,504 | 103,354 | |||||||||||
|
|
|||||||||||||
1,720,031 | ||||||||||||||
|
|
|||||||||||||
Taiwan 13.1% | ||||||||||||||
Accton Technology Corp. |
Communications Equipment | 10,260 | 96,853 | |||||||||||
Acer Inc. |
Technology Hardware, Storage & Peripherals | 32,000 | 28,427 | |||||||||||
Advantech Co. Ltd. |
Technology Hardware, Storage & Peripherals | 7,435 | 97,406 | |||||||||||
Asia Cement Corp. |
Construction Materials | 44,000 | 72,016 | |||||||||||
Asustek Computer Inc. |
Technology Hardware, Storage & Peripherals | 13,000 | 151,882 | |||||||||||
Chunghwa Telecom Co. Ltd. |
Diversified Telecommunication Services | 63,880 | 253,360 | |||||||||||
Compal Electronics Inc. |
Technology Hardware, Storage & Peripherals | 44,000 | 37,271 | |||||||||||
Eclat Textile Co. Ltd. |
Textiles, Apparel & Luxury Goods | 3,480 | 75,819 | |||||||||||
Far EasTone Telecommunications Co. Ltd. |
Wireless Telecommunication Services | 30,000 | 66,223 | |||||||||||
Feng Tay Enterprise Co. Ltd. |
Textiles, Apparel & Luxury Goods | 8,576 | 66,181 | |||||||||||
Fubon Financial Holding Co. Ltd. |
Insurance | 70,500 | 194,087 | |||||||||||
Globalwafers Co. Ltd. |
Semiconductors & Semiconductor Equipment | 4,580 | 130,690 | |||||||||||
Largan Precision Co. Ltd. |
Electronic Equipment, Instruments & Components | 1,920 | 150,923 | |||||||||||
Lite-On Technology Corp. |
Technology Hardware, Storage & Peripherals | 48,000 | 107,679 | |||||||||||
Micro-Star International Co. Ltd. |
Technology Hardware, Storage & Peripherals | 13,000 | 60,426 | |||||||||||
Nien Made Enterprise Co. Ltd. |
Household Durables | 4,000 | 56,855 | |||||||||||
Novatek Microelectronics Corp. Ltd. |
Semiconductors & Semiconductor Equipment | 14,380 | 211,619 |
franklintempleton.com |
Semiannual Report |
45 |
FRANKLIN TEMPLETON ETF TRUST
STATEMENT OF INVESTMENTS (UNAUDITED)
Franklin LibertyQ Emerging Markets ETF (continued)
Industry | Shares | Value | ||||||||||||
Common Stocks (continued) | ||||||||||||||
Taiwan (continued) | ||||||||||||||
Pegatron Corp. |
Technology Hardware, Storage & Peripherals | 28,000 | $ | 67,336 | ||||||||||
Powertech Technology Inc. |
Semiconductors & Semiconductor Equipment | 13,600 | 51,011 | |||||||||||
Ruentex Development Co. Ltd. |
Real Estate Management & Development | 21,000 | 43,266 | |||||||||||
Synnex Technology International Corp. |
Electronic Equipment, Instruments & Components | 24,000 | 44,967 | |||||||||||
Taiwan Cement Corp. |
Construction Materials | 96,201 | 176,101 | |||||||||||
Taiwan Mobile Co. Ltd. |
Wireless Telecommunication Services | 33,400 | 118,564 | |||||||||||
Taiwan Semiconductor Manufacturing Co. Ltd. |
Semiconductors & Semiconductor Equipment | 13,100 | 272,716 | |||||||||||
United Microelectronics Corp. |
Semiconductors & Semiconductor Equipment | 162,000 | 372,140 | |||||||||||
Vanguard International Semiconductor Corp. |
Semiconductors & Semiconductor Equipment | 20,000 | 108,756 | |||||||||||
Wan Hai Lines Ltd. |
Marine | 6,600 | 48,208 | |||||||||||
Wiwynn Corp. |
Technology Hardware, Storage & Peripherals | 1,480 | 46,216 | |||||||||||
WPG Holdings Ltd. |
Electronic Equipment, Instruments & Components | 16,000 | 27,853 | |||||||||||
|
|
|||||||||||||
3,234,851 | ||||||||||||||
|
|
|||||||||||||
Thailand 1.6% | ||||||||||||||
Advanced Info Service PCL, NVDR |
Wireless Telecommunication Services | 28,800 | 166,833 | |||||||||||
Bumrungrad Hospital PCL |
Health Care Providers & Services | 400 | 1,673 | |||||||||||
Bumrungrad Hospital PCL, NVDR |
Health Care Providers & Services | 8,800 | 36,802 | |||||||||||
Carabao Group PCL, NVDR |
Beverages | 3,200 | 11,349 | |||||||||||
Intouch Holdings PCL, NVDR |
Wireless Telecommunication Services | 54,800 | 130,380 | |||||||||||
Krung Thai Bank PCL, NVDR |
Banks | 48,800 | 15,865 | |||||||||||
Osotspa PCL, NVDR |
Beverages | 18,000 | 18,088 | |||||||||||
Sri Trang Gloves Thailand PCL, NVDR |
Health Care Equipment & Supplies | 15,200 | 14,039 | |||||||||||
|
|
|||||||||||||
395,029 | ||||||||||||||
|
|
|||||||||||||
Turkey 1.2% | ||||||||||||||
Aselsan Elektronik Sanayi Ve Ticaret A/S |
Aerospace & Defense | 12,428 | 21,179 | |||||||||||
BIM Birlesik Magazalar A/S |
Food & Staples Retailing | 11,624 | 83,605 | |||||||||||
Eregli Demir ve Celik Fabrikalari TAS |
Metals & Mining | 38,500 | 72,153 | |||||||||||
Ford Otomotiv Sanayi AS |
Automobiles | 2,064 | 38,821 | |||||||||||
Turkcell Iletisim Hizmetleri A/S |
Wireless Telecommunication Services | 30,000 | 51,766 | |||||||||||
Turkiye Is Bankasi A/S, C |
Banks | 33,844 | 19,771 | |||||||||||
|
|
|||||||||||||
287,295 | ||||||||||||||
|
|
|||||||||||||
United Arab Emirates 1.4% | ||||||||||||||
Abu Dhabi National Oil Co. for Distribution PJSC |
Specialty Retail | 31,264 | 35,408 | |||||||||||
Dubai Islamic Bank PJSC |
Banks | 34,632 | 46,671 | |||||||||||
Emirates Telecommunications Group Co. PJSC |
Diversified Telecommunication Services | 39,804 | 260,292 | |||||||||||
|
|
|||||||||||||
342,371 | ||||||||||||||
|
|
|||||||||||||
Total
Common Stocks |
24,381,856 | |||||||||||||
|
|
|||||||||||||
Preferred Stocks 1.0% | ||||||||||||||
Brazil 0.4% | ||||||||||||||
d |
Bradespar SA, 10.306%, pfd. |
Metals & Mining | 3,614 | 34,671 | ||||||||||
d |
Companhia Energetica de Minas Gerais, 5.738%, pfd. |
Electric Utilities | 11,200 | 28,838 | ||||||||||
d |
Companhia Paranaense de Energia, 13.297%, pfd. |
Electric Utilities | 18,000 | 24,049 | ||||||||||
|
|
|||||||||||||
87,558 | ||||||||||||||
|
|
|||||||||||||
Russia 0.4% | ||||||||||||||
d |
Surgutneftegas PJSC, 16.675%, pfd. |
Oil, Gas & Consumable Fuels | 190,396 | 105,419 | ||||||||||
|
|
|||||||||||||
South Korea 0.2% | ||||||||||||||
d |
LG Household & Health Care Ltd., 1.721%, pfd. |
Personal Products | 40 | 21,689 |
46 |
Semiannual Report |
franklintempleton.com |
FRANKLIN TEMPLETON ETF TRUST
STATEMENT OF INVESTMENTS (UNAUDITED)
Franklin LibertyQ Emerging Markets ETF (continued)
Industry | Shares | Value | ||||||||||||
Preferred Stocks (continued) | ||||||||||||||
South Korea (continued) | ||||||||||||||
d |
Samsung Electronics Co. Ltd., 4.323%, pfd. |
Technology Hardware, Storage & Peripherals | 572 | $ | 33,625 | |||||||||
|
|
|||||||||||||
55,314 | ||||||||||||||
|
|
|||||||||||||
Total Preferred Stocks (Cost $243,582) |
248,291 | |||||||||||||
|
|
|||||||||||||
Total
Investments |
24,630,147 | |||||||||||||
Other Assets, less Liabilities 0.0%† |
10,650 | |||||||||||||
|
|
|||||||||||||
Net Assets 100.0% |
$ | 24,640,797 | ||||||||||||
|
|
†Rounds to less than 0.1% of net assets.
aNon-income producing.
bSecurity was purchased pursuant to Rule 144A under the Securities Act of 1933 and may be sold in transactions exempt from registration only to qualified institutional buyers or in a public offering registered under the Securities Act of 1933. At September 30, 2021, the aggregate value of these securities was $459,272, representing 1.9% of net assets.
cSecurity was purchased pursuant to Regulation S under the Securities Act of 1933, which exempts from registration securities offered and sold outside of the United States. Such a security cannot be sold in the United States without either an effective registration statement filed pursuant to the Securities Act of 1933, or pursuant to an exemption from registration. At September 30, 2021, the aggregate value of these securities was $249,408, representing 1.0% of net assets.
dVariable rate security. The rate shown represents the yield at period end.
At September 30, 2021, the Fund had the following futures contracts outstanding. See Note 1(c).
Futures Contracts | ||||||||||||||||||||
Description | Type | Number of Contracts |
Notional Amount* |
Expiration Date |
Value/Unrealized Appreciation (Depreciation) |
|||||||||||||||
Equity Contracts | ||||||||||||||||||||
MSCI Emerging Markets Index |
Long | 2 | $ | 124,560 | 12/17/21 | $ | (5,444 | ) |
*As of period end
See Note 8 regarding other derivative information.
See abbreviations on page 124.
franklintempleton.com |
The accompanying notes are an integral part of these financial statements. | Semiannual Report |
47 |
FRANKLIN TEMPLETON ETF TRUST
Financial Highlights
Franklin LibertyQ Global Dividend ETF
Six Months
Ended September 30, 2021 (unaudited) |
Year Ended March 31, | |||||||||||||||||||||||
2021 | 2020 | 2019 | 2018 | 2017a | ||||||||||||||||||||
Per share operating performance (for a share outstanding throughout the period) |
||||||||||||||||||||||||
Net asset value, beginning of period |
$ | 33.29 | $ | 23.32 | $ | 28.20 | $ | 28.22 | $ | 27.31 | $ | 25.43 | ||||||||||||
|
|
|||||||||||||||||||||||
Income from investment operationsb: | ||||||||||||||||||||||||
Net investment incomec |
0.51 | 0.92 | 1.04 | 0.95 | 0.86 | 0.67 | ||||||||||||||||||
Net realized and unrealized gains (losses) |
1.11 | 9.95 | (4.90 | ) | (0.02 | ) | 1.03 | 1.79 | ||||||||||||||||
|
|
|||||||||||||||||||||||
Total from investment operations |
1.62 | 10.87 | (3.86 | ) | 0.93 | 1.89 | 2.46 | |||||||||||||||||
|
|
|||||||||||||||||||||||
Less distributions from net investment income |
(0.63 | ) | (0.90 | ) | (1.02 | ) | (0.95 | ) | (0.98 | ) | (0.58 | ) | ||||||||||||
|
|
|||||||||||||||||||||||
Net asset value, end of period |
$ | 34.28 | $ | 33.29 | $ | 23.32 | $ | 28.20 | $ | 28.22 | $ | 27.31 | ||||||||||||
|
|
|||||||||||||||||||||||
Total returnd |
4.82% | 47.20% | (14.34)% | 3.51% | 6.91% | 9.79% | ||||||||||||||||||
Ratios to average net assetse | ||||||||||||||||||||||||
Expenses before waiver and payments by affiliates |
0.45% | 0.45% | 0.45% | 0.45% | 0.75%f | 0.98% | ||||||||||||||||||
Expenses net of waiver and payments by affiliates |
0.45% | 0.45% | 0.45% | 0.45% | 0.45%f | 0.45% | ||||||||||||||||||
Net investment income |
2.89% | 3.21% | 3.60% | 3.43% | 3.05% | 3.11% | ||||||||||||||||||
Supplemental data | ||||||||||||||||||||||||
Net assets, end of period (000’s) |
$27,428 | $26,632 | $18,653 | $16,920 | $16,933 | $27,306 | ||||||||||||||||||
Portfolio turnover rateg |
15.95% | h | 42.38% | h | 19.79% | h | 25.75% | 43.32% | 13.38% |
aFor the period June 1,2016 (commencement of operations) to March 31, 2017.
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: | 15.95% | 42.38% | 19.79% |
48 |
Semiannual Report | The accompanying notes are an integral part of these financial statements. |
franklintempleton.com |
FRANKLIN TEMPLETON ETF TRUST
Statement of Investments, September 30, 2021 (unaudited)
Franklin LibertyQ Global Dividend ETF
Industry | Shares | Value | ||||||||||||
Common Stocks 99.5% | ||||||||||||||
Australia 5.7% | ||||||||||||||
Australian Stock Exchange Ltd. |
Capital Markets | 3,924 | $ | 229,595 | ||||||||||
Commonwealth Bank of Australia |
Banks | 7,440 | 560,699 | |||||||||||
Macquarie Group Ltd. |
Capital Markets | 4,832 | 635,252 | |||||||||||
Sonic Healthcare Ltd. |
Health Care Providers & Services | 4,816 | 141,450 | |||||||||||
|
|
|||||||||||||
1,566,996 | ||||||||||||||
|
|
|||||||||||||
Belgium 0.2% | ||||||||||||||
Proximus SADP |
Diversified Telecommunication Services | 2,108 | 41,874 | |||||||||||
|
|
|||||||||||||
Canada 8.8% | ||||||||||||||
Canadian Imperial Bank of Commerce |
Banks | 4,160 | 463,007 | |||||||||||
IGM Financial Inc. |
Capital Markets | 1,776 | 63,436 | |||||||||||
Royal Bank of Canada |
Banks | 5,580 | 555,115 | |||||||||||
Sun Life Financial Inc. |
Insurance | 4,692 | 241,480 | |||||||||||
TELUS Corp. |
Diversified Telecommunication Services | 3,984 | 87,551 | |||||||||||
The Bank of Nova Scotia |
Banks | 7,980 | 491,077 | |||||||||||
The Toronto-Dominion Bank |
Banks | 7,724 | 511,234 | |||||||||||
|
|
|||||||||||||
2,412,900 | ||||||||||||||
|
|
|||||||||||||
China 1.1% | ||||||||||||||
China Medical System Holdings Ltd. |
Pharmaceuticals | 12,000 | 21,889 | |||||||||||
China Merchants Bank Co. Ltd., A |
Banks | 8,000 | 62,535 | |||||||||||
China Vanke Co. Ltd., A |
Real Estate Management & Development | 7,200 | 23,773 | |||||||||||
China Vanke Co. Ltd., H |
Real Estate Management & Development | 21,600 | 59,101 | |||||||||||
Logan Group Co. Ltd. |
Real Estate Management & Development | 11,000 | 11,502 | |||||||||||
a,b |
Longfor Group Holdings Ltd., 144A, Reg S |
Real Estate Management & Development | 28,000 | 129,126 | ||||||||||
|
|
|||||||||||||
307,926 | ||||||||||||||
|
|
|||||||||||||
Denmark 0.3% | ||||||||||||||
Tryg AS |
Insurance | 3,756 | 85,410 | |||||||||||
|
|
|||||||||||||
Finland 2.4% | ||||||||||||||
Elisa OYJ |
Diversified Telecommunication Services | 2,120 | 131,792 | |||||||||||
Kone OYJ, B |
Machinery | 5,488 | 386,580 | |||||||||||
UPM-Kymmene OYJ |
Paper & Forest Products | 4,008 | 142,650 | |||||||||||
|
|
|||||||||||||
661,022 | ||||||||||||||
|
|
|||||||||||||
Germany 2.3% | ||||||||||||||
Allianz SE |
Insurance | 2,136 | 482,330 | |||||||||||
Hannover Rueck SE |
Insurance | 784 | 137,519 | |||||||||||
|
|
|||||||||||||
619,849 | ||||||||||||||
|
|
|||||||||||||
Hong Kong 0.3% | ||||||||||||||
Sino Land Co. Ltd. |
Real Estate Management & Development | 30,000 | 40,387 | |||||||||||
Xinyi Glass Holdings Ltd. |
Building Products | 16,000 | 47,889 | |||||||||||
|
|
|||||||||||||
88,276 | ||||||||||||||
|
|
|||||||||||||
Indonesia 0.4% | ||||||||||||||
Bank Rakyat Indonesia Persero Tbk PT |
Banks | 449,665 | 120,958 | |||||||||||
|
|
|||||||||||||
Ireland 1.3% | ||||||||||||||
Seagate Technology Holdings PLC |
Technology Hardware, Storage & Peripherals | 4,188 | 345,594 | |||||||||||
|
|
|||||||||||||
Japan 9.3% | ||||||||||||||
Daito Trust Construction Co. Ltd. |
Real Estate Management & Development | 1,800 | 210,370 | |||||||||||
Japan Tobacco Inc. |
Tobacco | 10,800 | 211,983 | |||||||||||
KDDI Corp. |
Wireless Telecommunication Services | 17,600 | 582,224 | |||||||||||
Lawson Inc. |
Food & Staples Retailing | 500 | 24,558 | |||||||||||
Nippon Telegraph & Telephone Corp. |
Diversified Telecommunication Services | 13,800 | 381,564 |
franklintempleton.com |
Semiannual Report |
49 |
FRANKLIN TEMPLETON ETF TRUST
STATEMENT OF INVESTMENTS (UNAUDITED)
Franklin LibertyQ Global Dividend ETF (continued)
Industry | Shares | Value | ||||||||||||
Common Stocks (continued) | ||||||||||||||
Japan (continued) | ||||||||||||||
Nomura Real Estate Holdings Inc. |
Real Estate Management & Development | 1,200 | $ | 31,383 | ||||||||||
ORIX Corp. |
Diversified Financial Services | 20,000 | 378,221 | |||||||||||
Sekisui House Ltd. |
Household Durables | 6,400 | 134,883 | |||||||||||
Sompo Holdings Inc. |
Insurance | 2,400 | 104,991 | |||||||||||
T&D Holdings Inc. |
Insurance | 5,600 | 77,745 | |||||||||||
Tokio Marine Holdings Inc. |
Insurance | 7,400 | 399,331 | |||||||||||
|
|
|||||||||||||
2,537,253 | ||||||||||||||
|
|
|||||||||||||
Malaysia 0.1% | ||||||||||||||
Petronas Gas Bhd. |
Gas Utilities | 8,200 | 32,945 | |||||||||||
|
|
|||||||||||||
New Zealand 0.5% | ||||||||||||||
Spark New Zealand Ltd. |
Diversified Telecommunication Services | 37,172 | 122,574 | |||||||||||
|
|
|||||||||||||
Norway 0.3% | ||||||||||||||
Orkla ASA |
Food Products | 7,660 | 70,394 | |||||||||||
|
|
|||||||||||||
Philippines 0.1% | ||||||||||||||
Globe Telecom Inc. |
Wireless Telecommunication Services | 300 | 17,549 | |||||||||||
|
|
|||||||||||||
Qatar 1.7% | ||||||||||||||
Masraf Al Rayan QSC |
Banks | 54,320 | 66,822 | |||||||||||
Qatar International Islamic Bank QSC |
Banks | 7,832 | 20,913 | |||||||||||
Qatar Islamic Bank SAQ |
Banks | 17,012 | 85,270 | |||||||||||
Qatar National Bank SAQ |
Banks | 55,488 | 291,842 | |||||||||||
|
|
|||||||||||||
464,847 | ||||||||||||||
|
|
|||||||||||||
Russia 0.7% | ||||||||||||||
Polymetal International PLC |
Metals & Mining | 4,124 | 70,174 | |||||||||||
Tatneft PAO |
Oil, Gas & Consumable Fuels | 18,464 | 134,018 | |||||||||||
|
|
|||||||||||||
204,192 | ||||||||||||||
|
|
|||||||||||||
Saudi Arabia 3.9% | ||||||||||||||
Al-Rajhi Bank |
Banks | 14,428 | 471,611 | |||||||||||
Jarir Marketing Co. |
Specialty Retail | 1,128 | 63,036 | |||||||||||
National Commercial Bank |
Banks | 23,508 | 384,833 | |||||||||||
Saudi Telecom Co. |
Diversified Telecommunication Services | 4,388 | 148,579 | |||||||||||
|
|
|||||||||||||
1,068,059 | ||||||||||||||
|
|
|||||||||||||
Singapore 0.9% | ||||||||||||||
Singapore Telecommunications Ltd. |
Diversified Telecommunication Services | 112,400 | 203,671 | |||||||||||
Venture Corp. Ltd. |
Electronic Equipment, Instruments & Components | 4,100 | 54,270 | |||||||||||
|
|
|||||||||||||
257,941 | ||||||||||||||
|
|
|||||||||||||
South Africa 0.2% | ||||||||||||||
Mr. Price Group Ltd. |
Specialty Retail | 4,548 | 60,827 | |||||||||||
|
|
|||||||||||||
Spain 0.3% | ||||||||||||||
Red Electrica Corp. SA |
Electric Utilities | 4,388 | 88,030 | |||||||||||
|
|
|||||||||||||
Switzerland 7.8% | ||||||||||||||
EMS-Chemie Holding AG |
Chemicals | 72 | 68,230 | |||||||||||
Novartis AG |
Pharmaceuticals | 6,356 | 523,483 | |||||||||||
Roche Holding AG, Bearer |
Pharmaceuticals | 32 | 13,186 | |||||||||||
Roche Holding AG, Non-Voting |
Pharmaceuticals | 1,636 | 599,700 | |||||||||||
SGS SA |
Professional Services | 88 | 257,156 | |||||||||||
Swisscom AG |
Diversified Telecommunication Services | 236 | 135,956 | |||||||||||
Zurich Insurance Group AG |
Insurance | 1,336 | 549,381 | |||||||||||
|
|
|||||||||||||
2,147,092 | ||||||||||||||
|
|
50 |
Semiannual Report |
franklintempleton.com |
FRANKLIN TEMPLETON ETF TRUST
STATEMENT OF INVESTMENTS (UNAUDITED)
Franklin LibertyQ Global Dividend ETF (continued)
Industry | Shares | Value | ||||||||||||
Common Stocks (continued) | ||||||||||||||
Taiwan 3.0% | ||||||||||||||
Chailease Holding Co. Ltd. |
Diversified Financial Services | 17,850 | $ | 157,610 | ||||||||||
Taiwan Semiconductor Manufacturing Co. Ltd. |
Semiconductors & Semiconductor Equipment | 29,000 | 603,722 | |||||||||||
Vanguard International Semiconductor Corp. |
Semiconductors & Semiconductor Equipment | 13,000 | 70,692 | |||||||||||
|
|
|||||||||||||
832,024 | ||||||||||||||
|
|
|||||||||||||
Turkey 0.1% | ||||||||||||||
Ford Otomotiv Sanayi AS |
Automobiles | 1,296 | 24,376 | |||||||||||
|
|
|||||||||||||
United Arab Emirates 0.4% | ||||||||||||||
Emirates Telecommunications Group Co. PJSC |
Diversified Telecommunication Services | 17,856 | 116,767 | |||||||||||
|
|
|||||||||||||
United Kingdom 6.0% | ||||||||||||||
GlaxoSmithKline PLC |
Pharmaceuticals | 29,008 | 548,989 | |||||||||||
Legal & General Group PLC |
Insurance | 73,456 | 278,414 | |||||||||||
Schroders PLC |
Capital Markets | 1,700 | 82,404 | |||||||||||
Smiths Group PLC |
Industrial Conglomerates | 4,456 | 86,579 | |||||||||||
St. James’s Place Capital PLC |
Capital Markets | 6,944 | 141,100 | |||||||||||
Unilever PLC |
Personal Products | 9,308 | 502,645 | |||||||||||
|
|
|||||||||||||
1,640,131 | ||||||||||||||
|
|
|||||||||||||
United States 41.4% | ||||||||||||||
3M Co. |
Industrial Conglomerates | 2,752 | 482,756 | |||||||||||
Altria Group Inc. |
Tobacco | 11,224 | 510,916 | |||||||||||
Cisco Systems Inc. |
Communications Equipment | 10,672 | 580,877 | |||||||||||
Cummins Inc. |
Machinery | 2,120 | 476,067 | |||||||||||
Eaton Corp. PLC |
Electrical Equipment | 3,832 | 572,156 | |||||||||||
Emerson Electric Co. |
Electrical Equipment | 5,916 | 557,287 | |||||||||||
Fidelity National Financial Inc. |
Insurance | 3,980 | 180,453 | |||||||||||
Garmin Ltd. |
Household Durables | 2,816 | 437,775 | |||||||||||
Gilead Sciences Inc. |
Biotechnology | 8,180 | 571,373 | |||||||||||
International Business Machines Corp. |
IT Services | 3,896 | 541,271 | |||||||||||
Johnson & Johnson |
Pharmaceuticals | 3,316 | 535,534 | |||||||||||
Kimberly-Clark Corp. |
Household Products | 4,228 | 559,956 | |||||||||||
LyondellBasell Industries NV, A |
Chemicals | 3,308 | 310,456 | |||||||||||
Merck & Co. Inc. |
Pharmaceuticals | 7,076 | 531,478 | |||||||||||
Nucor Corp. |
Metals & Mining | 3,224 | 317,532 | |||||||||||
Packaging Corp. of America |
Containers & Packaging | 1,208 | 166,028 | |||||||||||
Paychex Inc. |
IT Services | 5,660 | 636,467 | |||||||||||
Philip Morris International Inc. |
Tobacco | 5,792 | 549,024 | |||||||||||
QUALCOMM Inc. |
Semiconductors & Semiconductor Equipment | 4,352 | 561,321 | |||||||||||
Target Corp. |
Multiline Retail | 2,688 | 614,934 | |||||||||||
The Coca-Cola Co. |
Beverages | 10,344 | 542,750 | |||||||||||
The Procter & Gamble Co. |
Household Products | 4,112 | 574,858 | |||||||||||
United Parcel Service Inc., B |
Air Freight & Logistics | 2,612 | 475,645 | |||||||||||
Western Union Co. |
IT Services | 2,732 | 55,241 | |||||||||||
|
|
|||||||||||||
11,342,155 | ||||||||||||||
|
|
|||||||||||||
Total
Common Stocks |
27,277,961 | |||||||||||||
|
|
|||||||||||||
Total
Investments |
27,277,961 | |||||||||||||
Other Assets, less Liabilities 0.5% |
150,010 | |||||||||||||
|
|
|||||||||||||
Net Assets 100.0% |
$ | 27,427,971 | ||||||||||||
|
|
aSecurity was purchased pursuant to Rule 144A under the Securities Act of 1933 and may be sold in transactions exempt from registration only to qualified institutional buyers or in a public offering registered under the Securities Act of 1933. At September 30, 2021, the value of this security was $129,126, representing 0.5% of net assets.
bSecurity was purchased pursuant to Regulation S under the Securities Act of 1933, which exempts from registration securities offered and sold outside of the United States. Such a security cannot be sold in the United States without either an effective registration statement filed pursuant to the Securities Act of 1933, or pursuant to an exemption from registration. At September 30, 2021, the value of this security was $129,126, representing 0.5% of net assets.
franklintempleton.com |
Semiannual Report |
51 |
FRANKLIN TEMPLETON ETF TRUST
STATEMENT OF INVESTMENTS (UNAUDITED)
Franklin LibertyQ Global Dividend ETF (continued)
At September 30, 2021, the Fund had the following futures contracts outstanding. See Note 1(c).
Futures Contracts | ||||||||||||||||||||
Description | Type | Number of Contracts |
Notional Amount* |
Expiration Date |
Value/Unrealized Appreciation (Depreciation) |
|||||||||||||||
Equity Contracts | ||||||||||||||||||||
MSCI All Country World Index |
Long | 3 | $ | 110,295 | 12/17/21 | $ | (3,101 | ) |
*As of period end
See Note 8 regarding other derivative information.
52 |
Semiannual Report | The accompanying notes are an integral part of these financial statements. |
franklintempleton.com |
FRANKLIN TEMPLETON ETF TRUST
Financial Highlights
Franklin LibertyQ Global Equity ETF
Six Months Ended September 30, 2021 (unaudited) |
Year Ended March 31, | |||||||||||||||||||||||
2021 | 2020 | 2019 | 2018 | 2017a | ||||||||||||||||||||
Per share operating
performance (for a share outstanding throughout the period) |
| |||||||||||||||||||||||
Net asset value, beginning of period |
$ | 37.65 | $ | 26.77 | $ | 30.90 | $ | 30.14 | $ | 27.18 | $ | 25.32 | ||||||||||||
|
|
|||||||||||||||||||||||
Income from investment operationsb: |
| |||||||||||||||||||||||
Net investment incomec |
0.58 | 0.81 | 0.90 | 0.89 | 0.74 | 0.56 | ||||||||||||||||||
Net realized and unrealized gains (losses) |
1.33 | 10.97 | (4.00 | ) | 0.67 | 3.01 | 1.92 | |||||||||||||||||
|
|
|||||||||||||||||||||||
Total from investment operations |
1.91 | 11.78 | (3.10 | ) | 1.56 | 3.75 | 2.48 | |||||||||||||||||
|
|
|||||||||||||||||||||||
Less distributions from net investment income |
(0.37 | ) | (0.90 | ) | (1.03 | ) | (0.80 | ) | (0.79 | ) | (0.62 | ) | ||||||||||||
|
|
|||||||||||||||||||||||
Net asset value, end of period |
$ | 39.19 | $ | 37.65 | $ | 26.77 | $ | 30.90 | $ | 30.14 | $ | 27.18 | ||||||||||||
|
|
|||||||||||||||||||||||
Total returnd |
5.06% | 44.55% | (10.53)% | 5.44% | 13.91% | 9.95% | ||||||||||||||||||
Ratios to average net assetse |
| |||||||||||||||||||||||
Expenses before waiver and payments by affiliates |
0.35% | 0.35% | 0.35% | 0.35% | 0.90%f | 1.04% | ||||||||||||||||||
Expenses net of waiver and payments by affiliates |
0.34% | 0.34% | 0.34% | 0.34% | 0.35%f | 0.35% | ||||||||||||||||||
Net investment income |
2.87% | 2.45% | 2.86% | 2.99% | 2.53% | 2.60% | ||||||||||||||||||
Supplemental data |
| |||||||||||||||||||||||
Net assets, end of period (000’s) |
$15,675 | $15,059 | $16,059 | $24,721 | $18,082 | $21,744 | ||||||||||||||||||
Portfolio turnover rateg |
11.59% | h | 31.70% | h | 27.85% | h | 34.99% | 35.01% | 13.84% |
aFor the period June 1, 2016 (commencement of operations) to March 31, 2017.
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: | 11.59% | 31.70% | 27.85% |
franklintempleton.com |
The accompanying notes are an integral part of these financial statements. | Semiannual Report |
53 |
FRANKLIN TEMPLETON ETF TRUST
Statement of Investments, September 30, 2021 (unaudited)
Franklin LibertyQ Global Equity ETF
Industry | Shares | Value | ||||||||||||
Common Stocks and Other Equity Interests 99.4% | ||||||||||||||
Australia 3.9% | ||||||||||||||
AGL Energy Ltd. |
Multi-Utilities | 773 | $ | 3,227 | ||||||||||
Aurizon Holdings Ltd. |
Road & Rail | 2,247 | 6,152 | |||||||||||
BHP Group Ltd. |
Metals & Mining | 3,724 | 101,172 | |||||||||||
Brambles Ltd. |
Commercial Services & Supplies | 1,685 | 13,109 | |||||||||||
Coles Group Ltd. |
Food & Staples Retailing | 1,405 | 17,243 | |||||||||||
CSL Ltd. |
Biotechnology | 504 | 106,817 | |||||||||||
Endeavour Group Ltd. |
Food & Staples Retailing | 1,282 | 6,464 | |||||||||||
Evolution Mining Ltd. |
Metals & Mining | 1,896 | 4,780 | |||||||||||
Fortescue Metals Group Ltd. |
Metals & Mining | 3,378 | 36,504 | |||||||||||
Magellan Financial Group Ltd. |
Capital Markets | 144 | 3,679 | |||||||||||
Medibank Private Ltd. |
Insurance | 3,386 | 8,781 | |||||||||||
Newcrest Mining Ltd. |
Metals & Mining | 758 | 12,396 | |||||||||||
REA Group Ltd. |
Interactive Media & Services | 64 | 7,344 | |||||||||||
Rio Tinto Ltd. |
Metals & Mining | 600 | 43,419 | |||||||||||
Rio Tinto PLC |
Metals & Mining | 1,720 | 113,952 | |||||||||||
Sonic Healthcare Ltd. |
Health Care Providers & Services | 476 | 13,980 | |||||||||||
Telstra Corp. Ltd. |
Diversified Telecommunication Services | 5,042 | 14,313 | |||||||||||
Washington H. Soul Pattinson & Co. Ltd. |
Oil, Gas & Consumable Fuels | 78 | 2,199 | |||||||||||
Wesfarmers Ltd. |
Multiline Retail | 1,446 | 58,232 | |||||||||||
Woolworths Group Ltd. |
Food & Staples Retailing | 1,298 | 36,895 | |||||||||||
|
|
|||||||||||||
610,658 | ||||||||||||||
|
|
|||||||||||||
Austria 0.0%† | ||||||||||||||
OMV AG |
Oil, Gas & Consumable Fuels | 106 | 6,410 | |||||||||||
|
|
|||||||||||||
Belgium 0.1% | ||||||||||||||
Colruyt SA |
Food & Staples Retailing | 67 | 3,416 | |||||||||||
Proximus SADP |
Diversified Telecommunication Services | 200 | 3,973 | |||||||||||
|
|
|||||||||||||
7,389 | ||||||||||||||
|
|
|||||||||||||
Brazil 0.6% | ||||||||||||||
Ambev SA |
Beverages | 4,500 | 12,636 | |||||||||||
BB Seguridade Participacoes SA |
Insurance | 1,000 | 3,661 | |||||||||||
CPFL Energia SA |
Electric Utilities | 100 | 494 | |||||||||||
Engie Brasil Energia SA |
Independent Power and Renewable Electricity Producers | 200 | 1,375 | |||||||||||
Petrobras Distribuidora SA |
Specialty Retail | 400 | 1,724 | |||||||||||
Telefonica Brasil SA |
Diversified Telecommunication Services | 600 | 4,721 | |||||||||||
TIM SA |
Wireless Telecommunication Services | 800 | 1,725 | |||||||||||
Vale SA |
Metals & Mining | 4,900 | 68,560 | |||||||||||
|
|
|||||||||||||
94,896 | ||||||||||||||
|
|
|||||||||||||
Canada 2.9% | ||||||||||||||
Algonquin Power & Utilities Corp. |
Multi-Utilities | 508 | 7,446 | |||||||||||
Alimentation Couche-Tard Inc., B |
Food & Staples Retailing | 625 | 23,908 | |||||||||||
B2Gold Corp. |
Metals & Mining | 1,282 | 4,382 | |||||||||||
BCE Inc. |
Diversified Telecommunication Services | 130 | 6,511 | |||||||||||
Canadian Apartment Properties REIT |
Equity Real Estate Investment Trusts (REITs | ) | 88 | 4,106 | ||||||||||
Canadian National Railway Co. |
Road & Rail | 722 | 83,652 | |||||||||||
CCL Industries Inc., B |
Containers & Packaging | 76 | 3,935 | |||||||||||
a |
CGI Inc., A |
IT Services | 217 | 18,429 | ||||||||||
Constellation Software Inc. |
Software | 23 | 37,673 | |||||||||||
Dollarama Inc. |
Multiline Retail | 252 | 10,929 | |||||||||||
Empire Co. Ltd., A |
Food & Staples Retailing | 168 | 5,119 | |||||||||||
Fairfax Financial Holdings Ltd. |
Insurance | 14 | 5,651 | |||||||||||
Franco-Nevada Corp. |
Metals & Mining | 192 | 24,939 | |||||||||||
b |
Hydro One Ltd., 144A |
Electric Utilities | 314 | 7,421 | ||||||||||
IGM Financial Inc. |
Capital Markets | 82 | 2,929 |
54 |
Semiannual Report |
franklintempleton.com |
FRANKLIN TEMPLETON ETF TRUST
STATEMENT OF INVESTMENTS (UNAUDITED)
Franklin LibertyQ Global Equity ETF (continued)
Industry | Shares | Value | ||||||||||||
Common Stocks and Other Equity Interests (continued) | ||||||||||||||
Canada (continued) | ||||||||||||||
Keyera Corp. |
Oil, Gas & Consumable Fuels | 204 | $ | 5,132 | ||||||||||
Kirkland Lake Gold Ltd. |
Metals & Mining | 332 | 13,827 | |||||||||||
Magna International Inc. |
Auto Components | 322 | 24,228 | |||||||||||
Metro Inc., A |
Food & Staples Retailing | 250 | 12,213 | |||||||||||
Power Corp. of Canada |
Insurance | 580 | 19,114 | |||||||||||
Quebecor Inc., B |
Media | 180 | 4,349 | |||||||||||
RioCan Real Estate Investment Trust |
Equity Real Estate Investment Trusts (REITs | ) | 194 | 3,314 | ||||||||||
Rogers Communications Inc., B |
Wireless Telecommunication Services | 352 | 16,435 | |||||||||||
Saputo Inc. |
Food Products | 240 | 6,102 | |||||||||||
Shaw Communications Inc. |
Media | 448 | 13,021 | |||||||||||
TC Energy Corp. |
Oil, Gas & Consumable Fuels | 478 | 23,001 | |||||||||||
TELUS Corp. |
Diversified Telecommunication Services | 416 | 9,142 | |||||||||||
The Bank of Nova Scotia |
Banks | 624 | 38,400 | |||||||||||
West Fraser Timber Co. Ltd. |
Paper & Forest Products | 54 | 4,547 | |||||||||||
Wheaton Precious Metals Corp. |
Metals & Mining | 426 | 16,033 | |||||||||||
|
|
|||||||||||||
455,888 | ||||||||||||||
|
|
|||||||||||||
Chile 0.1% | ||||||||||||||
Antofagasta PLC |
Metals & Mining | 210 | 3,856 | |||||||||||
Colbun SA |
Independent Power and Renewable Electricity Producers | 8,017 | 1,297 | |||||||||||
Compania Cervecerias Unidas SA |
Beverages | 138 | 1,227 | |||||||||||
Enel Americas SA |
Electric Utilities | 27,564 | 3,256 | |||||||||||
Enel Chile SA |
Electric Utilities | 32,890 | 1,555 | |||||||||||
|
|
|||||||||||||
11,191 | ||||||||||||||
|
|
|||||||||||||
China 3.1% | ||||||||||||||
a |
360 DigiTech Inc. |
Consumer Finance | 46 | 935 | ||||||||||
b |
A-Living Services Co. Ltd., 144A |
Commercial Services & Supplies | 500 | 1,779 | ||||||||||
Agricultural Bank of China Ltd., A |
Banks | 4,800 | 2,187 | |||||||||||
Agricultural Bank of China Ltd., H |
Banks | 34,000 | 11,705 | |||||||||||
Anhui Conch Cement Co. Ltd., A |
Construction Materials | 300 | 1,896 | |||||||||||
Anhui Conch Cement Co. Ltd., H |
Construction Materials | 1,670 | 9,010 | |||||||||||
Bank of Beijing Co. Ltd., A |
Banks | 1,400 | 946 | |||||||||||
Bank of Chengdu Co. Ltd., A |
Banks | 200 | 368 | |||||||||||
Bank of China Ltd., A |
Banks | 3,200 | 1,512 | |||||||||||
Bank of China Ltd., H |
Banks | 104,000 | 36,873 | |||||||||||
Bank of Communications Co. Ltd., A |
Banks | 2,800 | 1,952 | |||||||||||
Bank of Communications Co. Ltd., H |
Banks | 11,000 | 6,528 | |||||||||||
Bank of Hangzhou Co. Ltd., A |
Banks | 400 | 925 | |||||||||||
Bank of Jiangsu Co. Ltd., A |
Banks | 400 | 361 | |||||||||||
Bank of Nanjing Co. Ltd., A |
Banks | 600 | 841 | |||||||||||
Bank of Shanghai Co. Ltd., A |
Banks | 400 | 453 | |||||||||||
Baoshan Iron & Steel Co. Ltd., A |
Metals & Mining | 1,200 | 1,618 | |||||||||||
Beijing Enterprises Holdings Ltd. |
Gas Utilities | 500 | 2,001 | |||||||||||
a |
Brilliance China Automotive Holdings Ltd. |
Automobiles | 4,000 | 1,723 | ||||||||||
Chaozhou Three-Circle Group Co. Ltd., A |
Electronic Equipment, Instruments & Components | 200 | 1,150 | |||||||||||
China Cinda Asset Management Co. Ltd., H |
Capital Markets | 12,000 | 2,035 | |||||||||||
China CITIC Bank Corp. Ltd., H |
Banks | 12,000 | 5,426 | |||||||||||
China Conch Venture Holdings Ltd. |
Construction & Engineering | 2,000 | 9,262 | |||||||||||
China Construction Bank Corp., A |
Banks | 600 | 555 | |||||||||||
China Construction Bank Corp., H |
Banks | 107,000 | 76,697 | |||||||||||
China Everbright Bank Co. Ltd., A |
Banks | 2,400 | 1,261 | |||||||||||
China Everbright Bank Co. Ltd., H |
Banks | 4,000 | 1,413 | |||||||||||
b |
China Feihe Ltd., 144A |
Food Products | 2,000 | 3,376 | ||||||||||
China Hongqiao Group Ltd. |
Metals & Mining | 2,000 | 2,574 | |||||||||||
China Lesso Group Holdings Ltd. |
Building Products | 1,000 | 1,603 | |||||||||||
China Medical System Holdings Ltd. |
Pharmaceuticals | 2,000 | 3,648 |
franklintempleton.com |
Semiannual Report |
55 |
FRANKLIN TEMPLETON ETF TRUST
STATEMENT OF INVESTMENTS (UNAUDITED)
Franklin LibertyQ Global Equity ETF (continued)
Industry | Shares | Value | ||||||||||||
Common Stocks and Other Equity Interests (continued) | ||||||||||||||
China (continued) | ||||||||||||||
China Merchants Port Holdings Co. Ltd. |
Transportation Infrastructure | 2,000 | $ | 3,432 | ||||||||||
China Minsheng Banking Corp. Ltd., A |
Banks | 2,400 | 1,454 | |||||||||||
China Minsheng Banking Corp. Ltd., H |
Banks | 8,000 | 3,217 | |||||||||||
China National Building Material Co. Ltd., H |
Construction Materials | 4,000 | 5,416 | |||||||||||
China Overseas Property Holdings Ltd. |
Real Estate Management & Development | 1,000 | 830 | |||||||||||
China Pacific Insurance Group Co. Ltd., A |
Insurance | 400 | 1,682 | |||||||||||
China Pacific Insurance Group Co. Ltd., H |
Insurance | 2,400 | 7,137 | |||||||||||
China Petroleum & Chemical Corp., A |
Oil, Gas & Consumable Fuels | 1,800 | 1,244 | |||||||||||
China Petroleum & Chemical Corp., H |
Oil, Gas & Consumable Fuels | 14,000 | 6,942 | |||||||||||
China Railway Group Ltd., H |
Construction & Engineering | 4,000 | 1,994 | |||||||||||
China Resources Cement Holdings Ltd. |
Construction Materials | 4,000 | 3,859 | |||||||||||
China Resources Power Holdings Co. Ltd. |
Independent Power and Renewable Electricity Producers | 2,000 | 5,768 | |||||||||||
China Shenhua Energy Co. Ltd., A |
Oil, Gas & Consumable Fuels | 400 | 1,404 | |||||||||||
China Shenhua Energy Co. Ltd., H |
Oil, Gas & Consumable Fuels | 5,000 | 11,703 | |||||||||||
China Taiping Insurance Holdings Co. Ltd. |
Insurance | 1,600 | 2,434 | |||||||||||
China Yangtze Power Co. Ltd., A |
Independent Power and Renewable Electricity Producers | 1,400 | 4,772 | |||||||||||
Chongqing Rural Commercial Bank Co. Ltd., A |
Banks | 400 | 239 | |||||||||||
Chongqing Rural Commercial Bank Co. Ltd., H |
Banks | 2,000 | 730 | |||||||||||
Country Garden Services Holdings Co. Ltd. |
Commercial Services & Supplies | 1,500 | 11,850 | |||||||||||
b |
Dali Foods Group Co. Ltd., 144A |
Food Products | 3,000 | 1,811 | ||||||||||
Dongfeng Motor Group Co. Ltd., H |
Automobiles | 4,000 | 3,571 | |||||||||||
Focus Media Information Technology Co. Ltd. |
Media | 860 | 975 | |||||||||||
Foshan Haitian Flavouring & Food Co. Ltd. |
Food Products | 212 | 3,613 | |||||||||||
Greendland Holdings Corp. Ltd., A |
Real Estate Management & Development | 630 | 459 | |||||||||||
Guangzhou R&F Properties Co. Ltd., H |
Real Estate Management & Development | 1,600 | 1,229 | |||||||||||
Haitian International Holdings Ltd. |
Machinery | 1,000 | 3,089 | |||||||||||
Heilongjiang Agriculture Co. Ltd., A |
Food Products | 200 | 469 | |||||||||||
Hello Group Inc., ADR |
Interactive Media & Services | 80 | 846 | |||||||||||
Henan Shuanghui Investment & Development Co. Ltd. |
Food Products | 200 | 841 | |||||||||||
Hengan International Group Co. Ltd. |
Personal Products | 500 | 2,678 | |||||||||||
Hithink RoyalFlush Information Network Co. Ltd., A |
Capital Markets | 100 | 1,858 | |||||||||||
Hopson Development Holdings Ltd. |
Real Estate Management & Development | 600 | 2,135 | |||||||||||
Huaxia Bank Co. Ltd., A |
Banks | 600 | 518 | |||||||||||
Huaxin Cement Co. Ltd., A |
Construction Materials | 200 | 634 | |||||||||||
Hunan Valin Steel Co. Ltd., A |
Metals & Mining | 400 | 411 | |||||||||||
Industrial and Commercial Bank of China Ltd. |
Banks | 3,400 | 2,455 | |||||||||||
Industrial and Commercial Bank of China Ltd., H |
Banks | 66,000 | 36,711 | |||||||||||
Inner Mongolia Junzheng Energy & Chemical Industry Group Co. Ltd., A |
Chemicals | 600 | 532 | |||||||||||
Inner Mongolia Yili Industrial Group Co. Ltd., A |
Food Products | 400 | 2,337 | |||||||||||
Jafron Biomedical Co. Ltd., A |
Health Care Equipment & Supplies | 100 | 907 | |||||||||||
Jiangsu Expressway Co. Ltd., H |
Transportation Infrastructure | 2,000 | 2,027 | |||||||||||
Jiangsu Hengli Hydraulic Co. Ltd., A |
Machinery | 100 | 1,311 | |||||||||||
Jiangsu Yanghe Brewery JST Co. Ltd., A |
Beverages | 100 | 2,573 | |||||||||||
Jiangsu Zhongtian Technology Co. Ltd., A |
Electrical Equipment | 100 | 141 | |||||||||||
Jiangxi Zhengbang Technology Co. Ltd., A |
Food Products | 200 | 292 | |||||||||||
Kingboard Holdings Ltd. |
Electronic Equipment, Instruments & Components | 1,000 | 4,528 | |||||||||||
Kweichow Moutai Co. Ltd., A |
Beverages | 67 | 18,998 | |||||||||||
Lee & Man Paper Manufacturing Ltd. |
Paper & Forest Products | 2,000 | 1,472 |
56 |
Semiannual Report |
franklintempleton.com |
FRANKLIN TEMPLETON ETF TRUST
STATEMENT OF INVESTMENTS (UNAUDITED)
Franklin LibertyQ Global Equity ETF (continued)
Industry | Shares | Value | ||||||||||||
Common Stocks and Other Equity Interests (continued) | ||||||||||||||
China (continued) | ||||||||||||||
Luzhou Laojiao Co. Ltd., A |
Beverages | 100 | $ | 3,433 | ||||||||||
Muyuan Foods Co. Ltd. |
Food Products | 378 | 3,040 | |||||||||||
NetEase Inc., ADR |
Entertainment | 320 | 27,328 | |||||||||||
New China Life Insurance Co. Ltd., H |
Insurance | 400 | 1,182 | |||||||||||
a |
New Hope Liuhe Co. Ltd. |
Food Products | 400 | 915 | ||||||||||
Nine Dragons Paper Holdings Ltd. |
Paper & Forest Products | 2,000 | 2,464 | |||||||||||
Ningxia Baofeng Energy Group Co. Ltd., A |
Chemicals | 200 | 498 | |||||||||||
a |
Offcn Education Technology Co. Ltd., A |
Diversified Consumer Services | 200 | 336 | ||||||||||
PetroChina Co. Ltd., H |
Oil, Gas & Consumable Fuels | 12,000 | 5,688 | |||||||||||
PICC Property and Casualty Co. Ltd., H |
Insurance | 6,000 | 5,819 | |||||||||||
b |
Postal Savings Bank of China Co. Ltd., 144A |
Banks | 8,000 | 5,529 | ||||||||||
RiseSun Real Estate Development Co. Ltd. |
Real Estate Management & Development | 300 | 224 | |||||||||||
Seazen Group Ltd. |
Real Estate Management & Development | 2,000 | 1,601 | |||||||||||
Seazen Holdings Co. Ltd., A |
Real Estate Management & Development | 200 | 1,155 | |||||||||||
Shaanxi Coal Industry Co. Ltd. |
Oil, Gas & Consumable Fuels | 600 | 1,376 | |||||||||||
Shandong Hualu Hengsheng Chemical Co. Ltd., A |
Chemicals | 160 | 816 | |||||||||||
Shandong Sun Paper Industry JSC Ltd., A |
Paper & Forest Products | 200 | 371 | |||||||||||
Shanghai Pharmaceuticals Holding Co. Ltd., H |
Health Care Providers & Services | 600 | 1,165 | |||||||||||
Shanghai Pudong Development Bank Co. Ltd., A |
Banks | 1,600 | 2,231 | |||||||||||
Shanxi Lu’an Environmental Energy Development Co. Ltd., A |
Oil, Gas & Consumable Fuels | 200 | 465 | |||||||||||
Shanxi Xinghuacun Fen Wine Factory Co. Ltd., A |
Beverages | 140 | 6,844 | |||||||||||
Shenzhen International Holdings Ltd. |
Transportation Infrastructure | 1,000 | 1,287 | |||||||||||
Shenzhen Investment Ltd. |
Real Estate Management & Development | 2,000 | 504 | |||||||||||
Shenzhen Mindray Bio-Medical Electronics Co. Ltd., A |
Health Care Equipment & Supplies | 100 | 5,972 | |||||||||||
Sichuan Chuantou Energy Co Ltd., A |
Independent Power and Renewable Electricity Producers | 200 | 445 | |||||||||||
Sinotruk Hong Kong Ltd. |
Machinery | 500 | 745 | |||||||||||
b |
Smoore International Holdings Ltd., 144A |
Tobacco | 1,000 | 4,663 | ||||||||||
The People’s Insurance Co. Group of China Ltd., H |
Insurance | 8,000 | 2,487 | |||||||||||
Tongkun Group Co. Ltd., A |
Chemicals | 200 | 680 | |||||||||||
a |
Vipshop Holdings Ltd., ADR |
Internet & Direct Marketing Retail | 326 | 3,632 | ||||||||||
Want Want China Holdings Ltd. |
Food Products | 4,000 | 3,026 | |||||||||||
Wens Foodstuffs Group Co. Ltd. |
Food Products | 720 | 1,614 | |||||||||||
Wuhu Sanqi Interactive Entertainment NetworkTechnology Group Co. Ltd. |
Entertainment | 200 | 650 | |||||||||||
Wuliangye Yibin Co. Ltd., A |
Beverages | 200 | 6,799 | |||||||||||
b |
Yadea Group Holdings Ltd., 144A, |
Automobiles | 1,000 | 1,634 | ||||||||||
Yanzhou Coal Mining Co. Ltd., A |
Oil, Gas & Consumable Fuels | 200 | 898 | |||||||||||
Yanzhou Coal Mining Co. Ltd., H |
Oil, Gas & Consumable Fuels | 2,000 | 3,787 | |||||||||||
Yihai International Holding Ltd. |
Food Products | 600 | 3,341 | |||||||||||
Yuexiu Property Co. Ltd. |
Real Estate Management & Development | 1,600 | 1,504 | |||||||||||
Yunda Holding Co. Ltd., A |
Air Freight & Logistics | 200 | 597 | |||||||||||
Zhejiang Longsheng Group Co. Ltd., A |
Chemicals | 200 | 419 | |||||||||||
Zhejiang NHU Co. Ltd. |
Pharmaceuticals | 140 | 583 | |||||||||||
Zhejiang Weixing New Building Materials Co. Ltd., A |
Building Products | 200 | 523 | |||||||||||
|
|
|||||||||||||
486,411 | ||||||||||||||
|
|
|||||||||||||
Czech Republic 0.0%† | ||||||||||||||
CEZ AS |
Electric Utilities | 84 | 2,737 | |||||||||||
|
|
franklintempleton.com |
Semiannual Report |
57 |
FRANKLIN TEMPLETON ETF TRUST
STATEMENT OF INVESTMENTS (UNAUDITED)
Franklin LibertyQ Global Equity ETF (continued)
Industry | Shares | Value | ||||||||||||
Common Stocks and Other Equity Interests (continued) | ||||||||||||||
Denmark 1.7% | ||||||||||||||
AP Moeller-Maersk A/S, B |
Marine | 3 | $ | 8,129 | ||||||||||
Coloplast AS, B |
Health Care Equipment & Supplies | 176 | 27,609 | |||||||||||
a |
Genmab A/S |
Biotechnology | 34 | 14,885 | ||||||||||
Novo Nordisk AS, B |
Pharmaceuticals | 1,956 | 189,439 | |||||||||||
Novozymes AS |
Chemicals | 192 | 13,167 | |||||||||||
Pandora AS |
Textiles, Apparel & Luxury Goods | 147 | 17,871 | |||||||||||
|
|
|||||||||||||
271,100 | ||||||||||||||
|
|
|||||||||||||
Egypt 0.0%† | ||||||||||||||
Eastern Co. SAE |
Tobacco | 1,624 | 1,265 | |||||||||||
a |
Fawry for Banking & Payment Technology Services SAE |
IT Services | 280 | 253 | ||||||||||
|
|
|||||||||||||
1,518 | ||||||||||||||
|
|
|||||||||||||
Finland 0.3% | ||||||||||||||
Elisa OYJ |
Diversified Telecommunication Services | 160 | 9,947 | |||||||||||
Kone OYJ, B |
Machinery | 314 | 22,118 | |||||||||||
Orion OYJ |
Pharmaceuticals | 131 | 5,200 | |||||||||||
UPM-Kymmene OYJ |
Paper & Forest Products | 448 | 15,945 | |||||||||||
|
|
|||||||||||||
53,210 | ||||||||||||||
|
|
|||||||||||||
France 0.5% | ||||||||||||||
Biomerieux |
Health Care Equipment & Supplies | 34 | 3,884 | |||||||||||
Hermes International |
Textiles, Apparel & Luxury Goods | 34 | 47,147 | |||||||||||
Ipsen SA |
Pharmaceuticals | 32 | 3,062 | |||||||||||
Klepierre SA |
Equity Real Estate Investment Trusts (REITs | ) | 178 | 4,010 | ||||||||||
Orange SA |
Diversified Telecommunication Services | 1,108 | 12,009 | |||||||||||
Sartorius Stedim Biotech |
Life Sciences Tools & Services | 24 | 13,454 | |||||||||||
|
|
|||||||||||||
83,566 | ||||||||||||||
|
|
|||||||||||||
Germany 0.1% | ||||||||||||||
a |
HelloFresh SE |
Internet & Direct Marketing Retail | 132 | 12,232 | ||||||||||
a,b |
Zalando SE, 144A |
Internet & Direct Marketing Retail | 21 | 1,931 | ||||||||||
|
|
|||||||||||||
14,163 | ||||||||||||||
|
|
|||||||||||||
Greece 0.0%† | ||||||||||||||
Hellenic Telecommunications Organization SA |
Diversified Telecommunication Services | 236 | 4,436 | |||||||||||
JUMBO SA |
Specialty Retail | 112 | 1,832 | |||||||||||
|
|
|||||||||||||
6,268 | ||||||||||||||
|
|
|||||||||||||
Hong Kong 0.6% | ||||||||||||||
CK Asset Holdings Ltd. |
Real Estate Management & Development | 2,500 | 14,484 | |||||||||||
CK Infrastructure Holdings Ltd. |
Electric Utilities | 500 | 2,794 | |||||||||||
CLP Holdings Ltd. |
Electric Utilities | 1,000 | 9,634 | |||||||||||
Guangdong Investment Ltd. |
Water Utilities | 2,000 | 2,610 | |||||||||||
Henderson Land Development Co. Ltd. |
Real Estate Management & Development | 1,000 | 3,834 | |||||||||||
HKT Trust and HKT Ltd. |
Diversified Telecommunication Services | 4,000 | 5,477 | |||||||||||
Kingboard Laminates Holdings Ltd. |
Electronic Equipment, Instruments & Components | 1,000 | 1,655 | |||||||||||
Power Assets Holdings Ltd. |
Electric Utilities | 1,500 | 8,825 | |||||||||||
Sino Land Co. Ltd. |
Real Estate Management & Development | 4,000 | 5,385 | |||||||||||
Sun Hung Kai Properties Ltd. |
Real Estate Management & Development | 1,000 | 12,512 | |||||||||||
The Wharf Holdings Ltd. |
Real Estate Management & Development | 1,000 | 3,321 | |||||||||||
b |
WH Group Ltd., 144A |
Food Products | 7,000 | 4,991 | ||||||||||
Wharf Real Estate Investment Co. Ltd. |
Real Estate Management & Development | 1,000 | 5,177 | |||||||||||
Xinyi Glass Holdings Ltd. |
Building Products | 2,000 | 5,986 | |||||||||||
|
|
|||||||||||||
86,685 | ||||||||||||||
|
|
58 |
Semiannual Report |
franklintempleton.com |
FRANKLIN TEMPLETON ETF TRUST
STATEMENT OF INVESTMENTS (UNAUDITED)
Franklin LibertyQ Global Equity ETF (continued)
Industry | Shares | Value | ||||||||||||
Common Stocks and Other Equity Interests (continued) | ||||||||||||||
Hungary 0.0%† | ||||||||||||||
Richter Gedeon Nyrt |
Pharmaceuticals | 72 | $ | 1,971 | ||||||||||
|
|
|||||||||||||
India 2.1% | ||||||||||||||
Adani Total Gas Ltd |
Gas Utilities | 154 | 2,953 | |||||||||||
Ambuja Cements Ltd. |
Construction Materials | 388 | 2,092 | |||||||||||
Asian Paints Ltd. |
Chemicals | 326 | 14,250 | |||||||||||
Bajaj Auto Ltd. |
Automobiles | 80 | 4,131 | |||||||||||
Bharti Infratel Ltd. |
Diversified Telecommunication Services | 534 | 2,221 | |||||||||||
Britannia Industries Ltd. |
Food Products | 114 | 6,065 | |||||||||||
Coal India Ltd. |
Oil, Gas & Consumable Fuels | 2,024 | 5,047 | |||||||||||
Colgate-Palmolive (India) Ltd. |
Personal Products | 138 | 3,104 | |||||||||||
Container Corp. of India Ltd. |
Road & Rail | 202 | 1,917 | |||||||||||
Dabur India Ltd. |
Personal Products | 560 | 4,655 | |||||||||||
GAIL India Ltd. |
Gas Utilities | 1,904 | 4,075 | |||||||||||
HCL Technologies Ltd. |
IT Services | 1,146 | 19,755 | |||||||||||
b |
HDFC Asset Management Co. Ltd., 144A |
Capital Markets | 60 | 2,351 | ||||||||||
Hero Motocorp Ltd. |
Automobiles | 134 | 5,113 | |||||||||||
Hindustan Petroleum Corp. Ltd. |
Oil, Gas & Consumable Fuels | 810 | 3,274 | |||||||||||
Hindustan Unilever Ltd. |
Household Products | 950 | 34,579 | |||||||||||
Indian Oil Corp. Ltd. |
Oil, Gas & Consumable Fuels | 1,030 | 1,739 | |||||||||||
Indraprastha Gas Ltd. |
Gas Utilities | 232 | 1,666 | |||||||||||
Infosys Ltd., ADR |
IT Services | 3,902 | 86,819 | |||||||||||
IPCA Laboratories Ltd. |
Pharmaceuticals | 50 | 1,624 | |||||||||||
ITC Ltd. |
Tobacco | 3,838 | 12,210 | |||||||||||
b |
Larsen & Toubro Infotech Ltd.,, 144A |
IT Services | 40 | 3,107 | ||||||||||
Marico Ltd. |
Personal Products | 578 | 4,263 | |||||||||||
Nestle India Ltd. |
Food Products | 38 | 9,955 | |||||||||||
Page Industries Ltd. |
Textiles, Apparel & Luxury Goods | 6 | 2,563 | |||||||||||
Petronet LNG Ltd. |
Oil, Gas & Consumable Fuels | 758 | 2,436 | |||||||||||
Pidilite Industries Ltd. |
Chemicals | 146 | 4,685 | |||||||||||
REC Ltd. |
Diversified Financial Services | 860 | 1,829 | |||||||||||
Tata Consultancy Services Ltd. |
IT Services | 1,172 | 59,613 | |||||||||||
Tech Mahindra Ltd. |
IT Services | 584 | 10,862 | |||||||||||
Wipro Ltd. |
IT Services | 706 | 6,031 | |||||||||||
|
|
|||||||||||||
324,984 | ||||||||||||||
|
|
|||||||||||||
Indonesia 0.2% | ||||||||||||||
Adaro Energy Tbk PT |
Oil, Gas & Consumable Fuels | 18,000 | 2,213 | |||||||||||
Gudang Garam Tbk PT |
Tobacco | 600 | 1,365 | |||||||||||
Indofood CBP Sukses Makmur Tbk PT |
Food Products | 2,000 | 1,167 | |||||||||||
Indofood Sukses Makmur Tbk PT |
Food Products | 4,200 | 1,863 | |||||||||||
Kalbe Farma Tbk PT |
Pharmaceuticals | 20,600 | 2,058 | |||||||||||
Perusahaan Perseroan (Persero) PT TelekomunikasiIndonesia Tbk, B |
Diversified Telecommunication Services | 57,500 | 14,825 | |||||||||||
Unilever Indonesia Tbk PT |
Household Products | 10,300 | 2,843 | |||||||||||
United Tractors Tbk PT |
Oil, Gas & Consumable Fuels | 2,000 | 3,633 | |||||||||||
|
|
|||||||||||||
29,967 | ||||||||||||||
|
|
|||||||||||||
Ireland 0.2% | ||||||||||||||
Seagate Technology Holdings PLC |
Technology Hardware, Storage & Peripherals | 324 | 26,737 | |||||||||||
|
|
|||||||||||||
Israel 0.1% | ||||||||||||||
a |
Check Point Software Technologies Ltd. |
Software | 134 | 15,147 | ||||||||||
ICL Group Ltd. |
Chemicals | 664 | 4,878 | |||||||||||
|
|
|||||||||||||
20,025 | ||||||||||||||
|
|
|||||||||||||
Italy 0.4% | ||||||||||||||
DiaSorin SpA |
Health Care Equipment & Supplies | 30 | 6,305 | |||||||||||
Ferrari NV |
Automobiles | 120 | 25,166 |
franklintempleton.com |
Semiannual Report |
59 |
FRANKLIN TEMPLETON ETF TRUST
STATEMENT OF INVESTMENTS (UNAUDITED)
Franklin LibertyQ Global Equity ETF (continued)
Industry | Shares | Value | ||||||||||||
Common Stocks and Other Equity Interests (continued) | ||||||||||||||
Italy (continued) | ||||||||||||||
Moncler SpA |
Textiles, Apparel & Luxury Goods | 208 | $ | 12,781 | ||||||||||
Recordati Industria Chimica e Farmaceutica SpA |
Pharmaceuticals | 116 | 6,760 | |||||||||||
Snam SpA |
Gas Utilities | 1,951 | 10,844 | |||||||||||
Telecom Italia SpA |
Diversified Telecommunication Services | 5,378 | 2,115 | |||||||||||
Telecom Italia Spa Savings Share |
Diversified Telecommunication Services | 5,820 | 2,360 | |||||||||||
|
|
|||||||||||||
66,331 | ||||||||||||||
|
|
|||||||||||||
Japan 6.4% | ||||||||||||||
ABC-Mart Inc. |
Specialty Retail | 50 | 2,837 | |||||||||||
Advantest Corp. |
Semiconductors & Semiconductor Equipment | 200 | 17,979 | |||||||||||
Astellas Pharma Inc. |
Pharmaceuticals | 1,900 | 31,376 | |||||||||||
Azbil Corp. |
Electronic Equipment, Instruments & Components | 100 | 4,311 | |||||||||||
Bridgestone Corp. |
Auto Components | 600 | 28,533 | |||||||||||
Brother Industries Ltd. |
Technology Hardware, Storage & Peripherals | 200 | 4,422 | |||||||||||
Capcom Co. Ltd. |
Entertainment | 200 | 5,566 | |||||||||||
Chugai Pharmaceutical Co. Ltd. |
Pharmaceuticals | 720 | 26,477 | |||||||||||
Daito Trust Construction Co. Ltd. |
Real Estate Management & Development | 100 | 11,687 | |||||||||||
Hitachi Ltd. |
Industrial Conglomerates | 800 | 47,609 | |||||||||||
Hoya Corp. |
Health Care Equipment & Supplies | 430 | 67,347 | |||||||||||
Iida Group Holdings Co. Ltd. |
Household Durables | 200 | 5,164 | |||||||||||
ITOCHU Corp. |
Trading Companies & Distributors | 1,500 | 44,056 | |||||||||||
Japan Post Bank Co. Ltd. |
Banks | 400 | 3,442 | |||||||||||
Japan Post Holdings Co. Ltd. |
Insurance | 800 | 6,773 | |||||||||||
Japan Tobacco Inc. |
Tobacco | 1,500 | 29,442 | |||||||||||
Kajima Corp. |
Construction & Engineering | 400 | 5,170 | |||||||||||
Kakaku.com Inc. |
Interactive Media & Services | 200 | 6,498 | |||||||||||
KAO Corp. |
Personal Products | 507 | 30,241 | |||||||||||
KDDI Corp. |
Wireless Telecommunication Services | 2,100 | 69,470 | |||||||||||
Koei Tecmo Holdings Co. Ltd. |
Entertainment | 100 | 4,768 | |||||||||||
Lasertec Corp. |
Semiconductors & Semiconductor Equipment | 60 | 13,761 | |||||||||||
Meiji Holdings Co. Ltd. |
Food Products | 100 | 6,462 | |||||||||||
Mitsubishi Gas Chemical Co. Inc. |
Chemicals | 200 | 3,970 | |||||||||||
Mizuho Financial Group Inc. |
Banks | 1,200 | 17,041 | |||||||||||
Monotaro Co. Ltd. |
Trading Companies & Distributors | 200 | 4,524 | |||||||||||
Murata Manufacturing Co. Ltd. |
Electronic Equipment, Instruments & Components | 400 | 35,707 | |||||||||||
Nexon Co. Ltd. |
Entertainment | 500 | 8,098 | |||||||||||
Nihon M&A Center Inc. |
Professional Services | 200 | 5,906 | |||||||||||
Nintendo Co. Ltd. |
Entertainment | 124 | 60,358 | |||||||||||
Nippon Telegraph & Telephone Corp. |
Diversified Telecommunication Services | 1,700 | 47,004 | |||||||||||
Nitori Holdings Co. Ltd. |
Specialty Retail | 70 | 13,871 | |||||||||||
Nitto Denko Corp. |
Chemicals | 100 | 7,152 | |||||||||||
Nomura Research Institute Ltd. |
IT Services | 300 | 11,132 | |||||||||||
Obayashi Corp. |
Construction & Engineering | 700 | 5,828 | |||||||||||
OBIC Co. Ltd. |
IT Services | 60 | 11,492 | |||||||||||
Ono Pharmaceutical Co. Ltd. |
Pharmaceuticals | 300 | 6,864 | |||||||||||
Oracle Corp. Japan |
Software | 50 | 4,401 | |||||||||||
Pigeon Corp. |
Household Products | 100 | 2,330 | |||||||||||
Sekisui House Ltd. |
Household Durables | 700 | 14,753 | |||||||||||
Seven & i Holdings Co. Ltd. |
Food & Staples Retailing | 400 | 18,230 | |||||||||||
SG Holdings Co. Ltd. |
Air Freight & Logistics | 200 | 5,700 | |||||||||||
SHIMANO Inc. |
Leisure Products | 60 | 17,692 | |||||||||||
Shimizu Corp. |
Construction & Engineering | 400 | 3,022 | |||||||||||
Shionogi & Co. Ltd. |
Pharmaceuticals | 300 | 20,580 | |||||||||||
Shoei Co. Ltd. |
Real Estate Management & Development | 300 | 3,356 | |||||||||||
Softbank Corp. |
Wireless Telecommunication Services | 3,300 | 44,794 | |||||||||||
Sumitomo Mitsui Financial Group Inc. |
Banks | 1,000 | 35,348 | |||||||||||
Taisei Corp. |
Construction & Engineering | 200 | 6,453 | |||||||||||
Tokyo Electron Ltd. |
Semiconductors & Semiconductor Equipment | 180 | 80,131 |
60 |
Semiannual Report |
franklintempleton.com |
FRANKLIN TEMPLETON ETF TRUST
STATEMENT OF INVESTMENTS (UNAUDITED)
Franklin LibertyQ Global Equity ETF (continued)
Industry | Shares | Value | ||||||||||||
Common Stocks and Other Equity Interests (continued) | ||||||||||||||
Japan (continued) | ||||||||||||||
Tosoh Corp. |
Chemicals | 300 | $ | 5,469 | ||||||||||
Toyo Suisan Kaisha Ltd. |
Food Products | 100 | 4,441 | |||||||||||
Tsuruha Holdings Inc. |
Food & Staples Retailing | 20 | 2,466 | |||||||||||
USS Co. Ltd. |
Specialty Retail | 200 | 3,429 | |||||||||||
Welcia Holdings Co. Ltd. |
Food & Staples Retailing | 100 | 3,594 | |||||||||||
Zozo Inc. |
Internet & Direct Marketing Retail | 200 | 7,520 | |||||||||||
|
|
|||||||||||||
996,047 | ||||||||||||||
|
|
|||||||||||||
Kuwait 0.0%† | ||||||||||||||
Mobile Telecommunications Co. KSCP |
Wireless Telecommunication Services | 1,720 | 3,416 | |||||||||||
|
|
|||||||||||||
Malaysia 0.2% | ||||||||||||||
a |
AMMB Holdings Bhd. |
Banks | 1,400 | 1,064 | ||||||||||
Digi.com Bhd. |
Wireless Telecommunication Services | 3,800 | 4,039 | |||||||||||
Fraser & Neave Holdings Bhd. |
Beverages | 100 | 638 | |||||||||||
Hartalega Holdings Bhd. |
Health Care Equipment & Supplies | 2,200 | 3,232 | |||||||||||
Kossan Rubber Industries |
Health Care Equipment & Supplies | 1,800 | 993 | |||||||||||
MISC Bhd. |
Marine | 600 | 990 | |||||||||||
Nestle (Malaysia) Bhd. |
Food Products | 140 | 4,451 | |||||||||||
Petronas Gas Bhd. |
Gas Utilities | 900 | 3,616 | |||||||||||
RHB Bank Bhd |
Banks | 1,000 | 1,304 | |||||||||||
Sime Darby Bhd. |
Industrial Conglomerates | 1,400 | 759 | |||||||||||
Supermax Corp. Bhd |
Health Care Equipment & Supplies | 1,822 | 1,040 | |||||||||||
Top Glove Corp. Bhd. |
Health Care Equipment & Supplies | 7,800 | 5,366 | |||||||||||
Westports Holdings Bhd. |
Transportation Infrastructure | 1,000 | 1,075 | |||||||||||
|
|
|||||||||||||
28,567 | ||||||||||||||
|
|
|||||||||||||
Mexico 0.3% | ||||||||||||||
Arca Continental SAB de CV |
Beverages | 222 | 1,360 | |||||||||||
Fibra Uno Administracion SA de CV |
Equity Real Estate Investment Trusts (REITs | ) | 3,118 | 3,552 | ||||||||||
Grupo Mexico SAB de CV, B |
Metals & Mining | 2,806 | 11,253 | |||||||||||
Kimberly-Clark de Mexico SAB de CV, A |
Household Products | 1,869 | 3,092 | |||||||||||
Megacable Holdings SAB de CV |
Media | 388 | 1,192 | |||||||||||
Wal-Mart de Mexico SAB de CV, V |
Food & Staples Retailing | 5,639 | 19,249 | |||||||||||
|
|
|||||||||||||
39,698 | ||||||||||||||
|
|
|||||||||||||
Netherlands 1.8% | ||||||||||||||
a,b |
Adyen NV, 144A |
IT Services | 14 | 39,184 | ||||||||||
ASML Holding NV |
Semiconductors & Semiconductor Equipment | 226 | 169,176 | |||||||||||
Koninklijke Ahold Delhaize NV |
Food & Staples Retailing | 1,184 | 39,430 | |||||||||||
Koninklijke KPN NV |
Diversified Telecommunication Services | 2,508 | 7,892 | |||||||||||
NN Group NV |
Insurance | 286 | 15,005 | |||||||||||
Randstad NV |
Professional Services | 64 | 4,309 | |||||||||||
|
|
|||||||||||||
274,996 | ||||||||||||||
|
|
|||||||||||||
New Zealand 0.2% | ||||||||||||||
a |
a2 Milk Co. Ltd. |
Food Products | 706 | 3,132 | ||||||||||
Fisher & Paykel Healthcare Corp. Ltd. |
Health Care Equipment & Supplies | 764 | 16,865 | |||||||||||
Spark New Zealand Ltd. |
Diversified Telecommunication Services | 2,431 | 8,016 | |||||||||||
|
|
|||||||||||||
28,013 | ||||||||||||||
|
|
|||||||||||||
Norway 0.2% | ||||||||||||||
Orkla ASA |
Food Products | 762 | 7,002 | |||||||||||
Telenor ASA |
Diversified Telecommunication Services | 774 | 13,061 | |||||||||||
Yara International ASA |
Chemicals | 146 | 7,264 | |||||||||||
|
|
|||||||||||||
27,327 | ||||||||||||||
|
|
franklintempleton.com |
Semiannual Report |
61 |
FRANKLIN TEMPLETON ETF TRUST
STATEMENT OF INVESTMENTS (UNAUDITED)
Franklin LibertyQ Global Equity ETF (continued)
Industry | Shares | Value | ||||||||||||
Common Stocks and Other Equity Interests (continued) | ||||||||||||||
Pakistan 0.0%† | ||||||||||||||
MCB Bank Ltd. |
Banks | 460 | $ | 407 | ||||||||||
|
|
|||||||||||||
Philippines 0.0%† | ||||||||||||||
Globe Telecom Inc. |
Wireless Telecommunication Services | 35 | 2,048 | |||||||||||
Manila Electric Co. |
Electric Utilities | 240 | 1,402 | |||||||||||
Metro Pacific Investments Corp. |
Diversified Financial Services | 12,000 | 859 | |||||||||||
PLDT Inc. |
Wireless Telecommunication Services | 70 | 2,305 | |||||||||||
|
|
|||||||||||||
6,614 | ||||||||||||||
|
|
|||||||||||||
Poland 0.1% | ||||||||||||||
Polski Koncern Naftowy Orlen SA |
Oil, Gas & Consumable Fuels | 248 | 5,122 | |||||||||||
Polskie Gornictwo Naftowe i Gazownictwo SA |
Oil, Gas & Consumable Fuels | 1,420 | 2,311 | |||||||||||
|
|
|||||||||||||
7,433 | ||||||||||||||
|
|
|||||||||||||
Portugal 0.0%† | ||||||||||||||
Jeronimo Martins SGPS SA |
Food & Staples Retailing | 230 | 4,587 | |||||||||||
|
|
|||||||||||||
Qatar 0.1% | ||||||||||||||
Industries Qatar QSC |
Industrial Conglomerates | 1,850 | 7,850 | |||||||||||
Masraf Al Rayan QSC |
Banks | 3,596 | 4,424 | |||||||||||
Qatar Electricity & Water Co. QSC |
Multi-Utilities | 556 | 2,585 | |||||||||||
Qatar Fuel QSC |
Oil, Gas & Consumable Fuels | 450 | 2,217 | |||||||||||
|
|
|||||||||||||
17,076 | ||||||||||||||
|
|
|||||||||||||
Russia 1.6% | ||||||||||||||
Alrosa PJSC |
Metals & Mining | 3,584 | 6,550 | |||||||||||
Evraz PLC |
Metals & Mining | 800 | 6,412 | |||||||||||
Gazprom PJSC |
Oil, Gas & Consumable Fuels | 14,524 | 72,144 | |||||||||||
Inter RAO UES PJSC |
Electric Utilities | 53,546 | 3,419 | |||||||||||
LUKOIL PJSC |
Oil, Gas & Consumable Fuels | 538 | 51,239 | |||||||||||
MMC Norilsk Nickel PJSC |
Metals & Mining | 102 | 30,550 | |||||||||||
Mobile TeleSystems PJSC, ADR |
Wireless Telecommunication Services | 618 | 5,957 | |||||||||||
Moscow Exchange MICEX |
Capital Markets | 1,394 | 3,331 | |||||||||||
NLMK PJSC |
Metals & Mining | 2,076 | 6,188 | |||||||||||
PhosAgro PJSC, GDR |
Chemicals | 190 | 4,233 | |||||||||||
Polymetal International PLC |
Metals & Mining | 404 | 6,874 | |||||||||||
Polyus Gold OJSC |
Metals & Mining | 46 | 7,559 | |||||||||||
Rosneft PJSC |
Oil, Gas & Consumable Fuels | 1,260 | 10,664 | |||||||||||
Severstal PAO |
Metals & Mining | 383 | 7,997 | |||||||||||
Surgutneftegas PJSC |
Oil, Gas & Consumable Fuels | 8,286 | 4,188 | |||||||||||
Tatneft PAO |
Oil, Gas & Consumable Fuels | 2,042 | 14,822 | |||||||||||
TCS Group Holding PLC, GDR |
Banks | 76 | 6,956 | |||||||||||
|
|
|||||||||||||
249,083 | ||||||||||||||
|
|
|||||||||||||
Saudi Arabia 0.5% | ||||||||||||||
Abdullah Al Othaim Markets Co. |
Food & Staples Retailing | 40 | 1,201 | |||||||||||
Advanced Petrochemical Co. |
Chemicals | 129 | 2,579 | |||||||||||
Al-Rajhi Bank |
Banks | 1,088 | 35,564 | |||||||||||
Bupa Arabia for Cooperative Insurance Co. |
Insurance | 52 | 2,069 | |||||||||||
Dr Sulaiman Al Habib Medical Services Group Co. |
Health Care Providers & Services | 28 | 1,299 | |||||||||||
Jarir Marketing Co. |
Specialty Retail | 81 | 4,526 | |||||||||||
Saudi Arabian Fertilizer Co. |
Chemicals | 226 | 10,424 | |||||||||||
Saudi Cement Co. |
Construction Materials | 86 | 1,440 | |||||||||||
Saudi Telecom Co. |
Diversified Telecommunication Services | 630 | 21,332 | |||||||||||
Yanbu National Petrochemical Co. |
Chemicals | 247 | 4,689 | |||||||||||
|
|
|||||||||||||
85,123 | ||||||||||||||
|
|
|||||||||||||
Singapore 0.2% | ||||||||||||||
Singapore Exchange Ltd. |
Capital Markets | 1,300 | 9,557 | |||||||||||
Singapore Technologies Engineering Ltd. |
Aerospace & Defense | 800 | 2,245 |
62 |
Semiannual Report |
franklintempleton.com |
FRANKLIN TEMPLETON ETF TRUST
STATEMENT OF INVESTMENTS (UNAUDITED)
Franklin LibertyQ Global Equity ETF (continued)
Industry | Shares | Value | ||||||||||||
Common Stocks and Other Equity Interests (continued) | ||||||||||||||
Singapore (continued) | ||||||||||||||
Singapore Telecommunications Ltd. |
Diversified Telecommunication Services | 9,400 | $ | 17,033 | ||||||||||
Venture Corp. Ltd. |
Electronic Equipment, Instruments & Components | 300 | 3,971 | |||||||||||
|
|
|||||||||||||
32,806 | ||||||||||||||
|
|
|||||||||||||
South Africa 0.3% | ||||||||||||||
African Rainbow Minerals Ltd. |
Metals & Mining | 120 | 1,512 | |||||||||||
Anglo American Platinum Ltd. |
Metals & Mining | 28 | 2,428 | |||||||||||
AngloGold Ashanti Ltd. |
Metals & Mining | 436 | 6,889 | |||||||||||
Exxaro Resources Ltd. |
Oil, Gas & Consumable Fuels | 340 | 3,639 | |||||||||||
Gold Fields Ltd. |
Metals & Mining | 478 | 3,917 | |||||||||||
Impala Platinum Holdings Ltd. |
Metals & Mining | 696 | 7,942 | |||||||||||
Kumba Iron Ore Ltd. |
Metals & Mining | 114 | 3,758 | |||||||||||
Mr. Price Group Ltd. |
Specialty Retail | 305 | 4,079 | |||||||||||
Sibanye Stillwater Ltd. |
Metals & Mining | 1,564 | 4,836 | |||||||||||
Tiger Brands Ltd. |
Food Products | 167 | 2,079 | |||||||||||
Vodacom Group Ltd. |
Wireless Telecommunication Services | 792 | 7,582 | |||||||||||
|
|
|||||||||||||
48,661 | ||||||||||||||
|
|
|||||||||||||
South Korea 1.3% | ||||||||||||||
Coway Co. Ltd. |
Household Durables | 62 | 3,885 | |||||||||||
Hana Financial Group Inc. |
Banks | 338 | 13,246 | |||||||||||
Industrial Bank of Korea |
Banks | 310 | 2,749 | |||||||||||
KB Financial Group Inc. |
Banks | 411 | 19,196 | |||||||||||
Korea Zinc Co. Ltd. |
Metals & Mining | 8 | 3,399 | |||||||||||
KT&G Corp. |
Tobacco | 140 | 9,601 | |||||||||||
Kumho Petrochemical Co. Ltd. |
Chemicals | 20 | 3,193 | |||||||||||
NCSoft Corp. |
Entertainment | 16 | 8,149 | |||||||||||
S-1 Corp. |
Commercial Services & Supplies | 20 | 1,412 | |||||||||||
Samsung Electronics Co. Ltd. |
Technology Hardware, Storage & Peripherals | 1,924 | 120,413 | |||||||||||
Seegene Inc. |
Biotechnology | 38 | 1,948 | |||||||||||
Shinhan Financial Group Co. Ltd. |
Banks | 452 | 15,423 | |||||||||||
Woori Financial Group Inc. |
Banks | 528 | 5,195 | |||||||||||
|
|
|||||||||||||
207,809 | ||||||||||||||
|
|
|||||||||||||
Spain 1.5% | ||||||||||||||
Banco Bilbao Vizcaya Argentaria SA |
Banks | 3,354 | 22,223 | |||||||||||
Banco Santander SA |
Banks | 14,436 | 52,475 | |||||||||||
CaixaBank SA |
Banks | 2,798 | 8,703 | |||||||||||
Enagas SA |
Gas Utilities | 251 | 5,587 | |||||||||||
Endesa SA |
Electric Utilities | 364 | 7,349 | |||||||||||
Iberdrola SA |
Electric Utilities | 5,550 | 55,857 | |||||||||||
Industria de Diseno Textil SA |
Specialty Retail | 1,116 | 41,155 | |||||||||||
Red Electrica Corp. SA |
Electric Utilities | 468 | 9,389 | |||||||||||
Telefonica SA |
Diversified Telecommunication Services | 5,134 | 24,080 | |||||||||||
|
|
|||||||||||||
226,818 | ||||||||||||||
|
|
|||||||||||||
Sweden 0.5% | ||||||||||||||
Boliden AB |
Metals & Mining | 312 | 10,068 | |||||||||||
Epiroc AB, A |
Machinery | 512 | 10,651 | |||||||||||
Epiroc AB, B |
Machinery | 350 | 6,235 | |||||||||||
b,c |
Evolution Gaming Group AB, 144A, Reg S |
Hotels, Restaurants & Leisure | 154 | 23,493 | ||||||||||
Husqvarna AB, B |
Household Durables | 216 | 2,594 | |||||||||||
ICA Gruppen AB |
Food & Staples Retailing | 88 | 4,044 | |||||||||||
Industrivarden AB, A |
Diversified Financial Services | 54 | 1,736 | |||||||||||
Industrivarden AB, C |
Diversified Financial Services | 82 | 2,549 | |||||||||||
a |
Kinnevik AB, B |
Diversified Financial Services | 174 | 6,149 | ||||||||||
Swedish Match AB |
Tobacco | 1,360 | 11,917 | |||||||||||
|
|
|||||||||||||
79,436 | ||||||||||||||
|
|
franklintempleton.com |
Semiannual Report |
63 |
FRANKLIN TEMPLETON ETF TRUST
STATEMENT OF INVESTMENTS (UNAUDITED)
Franklin LibertyQ Global Equity ETF (continued)
Industry | Shares | Value | ||||||||||||
Common Stocks and Other Equity Interests (continued) | ||||||||||||||
Switzerland 4.0% | ||||||||||||||
EMS-Chemie Holding AG |
Chemicals | 10 | $ | 9,476 | ||||||||||
Geberit AG |
Building Products | 42 | 31,021 | |||||||||||
Kuehne + Nagel International AG |
Marine | 48 | 16,435 | |||||||||||
Logitech International SA |
Technology Hardware, Storage & Peripherals | 194 | 17,315 | |||||||||||
Nestle SA |
Food Products | 1,296 | 156,573 | |||||||||||
Novartis AG |
Pharmaceuticals | 1,770 | 145,778 | |||||||||||
Partners Group Holding AG |
Capital Markets | 29 | 45,590 | |||||||||||
Roche Holding AG, Bearer |
Pharmaceuticals | 10 | 4,121 | |||||||||||
Roche Holding AG, Non Voting |
Pharmaceuticals | 456 | 167,154 | |||||||||||
SGS SA |
Professional Services | 5 | 14,611 | |||||||||||
Swisscom AG |
Diversified Telecommunication Services | 28 | 16,130 | |||||||||||
|
|
|||||||||||||
624,204 | ||||||||||||||
|
|
|||||||||||||
Taiwan 2.2% | ||||||||||||||
Accton Technology Corp. |
Communications Equipment | 400 | 3,776 | |||||||||||
Acer Inc. |
Technology Hardware, Storage & Peripherals | 2,000 | 1,777 | |||||||||||
Advantech Co. Ltd. |
Technology Hardware, Storage & Peripherals | 373 | 4,887 | |||||||||||
Asia Cement Corp. |
Construction Materials | 2,000 | 3,273 | |||||||||||
Asustek Computer Inc. |
Technology Hardware, Storage & Peripherals | 660 | 7,711 | |||||||||||
China Development Financial Holding Corp. |
Insurance | 12,000 | 6,116 | |||||||||||
Chunghwa Telecom Co. Ltd. |
Diversified Telecommunication Services | 4,000 | 15,865 | |||||||||||
Compal Electronics Inc. |
Technology Hardware, Storage & Peripherals | 2,000 | 1,694 | |||||||||||
Far EasTone Telecommunications Co. Ltd. |
Wireless Telecommunication Services | 2,000 | 4,415 | |||||||||||
Feng Tay Enterprise Co. Ltd. |
Textiles, Apparel & Luxury Goods | 400 | 3,087 | |||||||||||
Fubon Financial Holding Co. Ltd. |
Insurance | 4,400 | 12,113 | |||||||||||
Globalwafers Co. Ltd. |
Semiconductors & Semiconductor Equipment | 200 | 5,707 | |||||||||||
Largan Precision Co. Ltd. |
Electronic Equipment, Instruments & Components | 120 | 9,433 | |||||||||||
Lite-On Technology Corp. |
Technology Hardware, Storage & Peripherals | 3,000 | 6,730 | |||||||||||
Micro-Star International Co. Ltd. |
Technology Hardware, Storage & Peripherals | 1,000 | 4,648 | |||||||||||
Novatek Microelectronics Corp. Ltd. |
Semiconductors & Semiconductor Equipment | 670 | 9,860 | |||||||||||
Pegatron Corp. |
Technology Hardware, Storage & Peripherals | 2,000 | 4,810 | |||||||||||
Powertech Technology Inc. |
Semiconductors & Semiconductor Equipment | 700 | 2,625 | |||||||||||
Quanta Computer Inc. |
Technology Hardware, Storage & Peripherals | 1,000 | 2,782 | |||||||||||
Ruentex Development Co. Ltd. |
Real Estate Management & Development | 1,400 | 2,884 | |||||||||||
Synnex Technology International Corp. |
Electronic Equipment, Instruments & Components | 1,000 | 1,873 | |||||||||||
Taiwan Cement Corp. |
Construction Materials | 5,000 | 9,153 | |||||||||||
Taiwan Mobile Co. Ltd. |
Wireless Telecommunication Services | 2,000 | 7,100 | |||||||||||
Taiwan Semiconductor Manufacturing Co. Ltd. |
Semiconductors & Semiconductor Equipment | 8,000 | 166,544 | |||||||||||
United Microelectronics Corp. |
Semiconductors & Semiconductor Equipment | 10,000 | 22,971 | |||||||||||
Vanguard International Semiconductor Corp. |
Semiconductors & Semiconductor Equipment | 1,000 | 5,438 | |||||||||||
Wan Hai Lines Ltd. |
Marine | 440 | 3,214 | |||||||||||
WPG Holdings Ltd. |
Electronic Equipment, Instruments & Components | 2,000 | 3,482 | |||||||||||
Zhen Ding Technology Holding Ltd. |
Electronic Equipment, Instruments & Components | 1,000 | 3,550 | |||||||||||
|
|
|||||||||||||
337,518 | ||||||||||||||
|
|
|||||||||||||
Thailand 0.2% | ||||||||||||||
Advanced Info Service PCL, NVDR |
Wireless Telecommunication Services | 1,400 | 8,110 | |||||||||||
Bumrungrad Hospital PCL, NVDR |
Health Care Providers & Services | 500 | 2,091 | |||||||||||
Carabao Group PCL, NVDR |
Beverages | 200 | 709 | |||||||||||
Intouch Holdings PCL, NVDR |
Wireless Telecommunication Services | 2,600 | 6,186 | |||||||||||
Krung Thai Bank PCL, NVDR |
Banks | 2,600 | 845 | |||||||||||
Osotspa PCL, NVDR |
Beverages | 1,000 | 1,005 | |||||||||||
Sri Trang Gloves Thailand PCL, NVDR |
Health Care Equipment & Supplies | 800 | 739 | |||||||||||
Thai Union Group PCL, NVDR |
Food Products | 1,400 | 898 | |||||||||||
The Siam Cement PCL, NVDR |
Construction Materials | 800 | 9,505 | |||||||||||
|
|
|||||||||||||
30,088 | ||||||||||||||
|
|
64 |
Semiannual Report |
franklintempleton.com |
FRANKLIN TEMPLETON ETF TRUST
STATEMENT OF INVESTMENTS (UNAUDITED)
Franklin LibertyQ Global Equity ETF (continued)
Industry | Shares | Value | ||||||||||||
Common Stocks and Other Equity Interests (continued) | ||||||||||||||
Turkey 0.1% | ||||||||||||||
Aselsan Elektronik Sanayi Ve Ticaret A/S |
Aerospace & Defense | 666 | $ | 1,135 | ||||||||||
BIM Birlesik Magazalar A/S |
Food & Staples Retailing | 594 | 4,272 | |||||||||||
Eregli Demir ve Celik Fabrikalari TAS |
Metals & Mining | 1,938 | 3,632 | |||||||||||
Ford Otomotiv Sanayi AS |
Automobiles | 103 | 1,937 | |||||||||||
Turkcell Iletisim Hizmetleri A/S |
Wireless Telecommunication Services | 1,532 | 2,644 | |||||||||||
Turkiye Is Bankasi A/S, C |
Banks | 1,710 | 999 | |||||||||||
|
|
|||||||||||||
14,619 | ||||||||||||||
|
|
|||||||||||||
United Arab Emirates 0.1% | ||||||||||||||
Abu Dhabi National Oil Co. for Distribution PJSC |
Specialty Retail | 1,612 | 1,826 | |||||||||||
Dubai Islamic Bank PJSC |
Banks | 1,890 | 2,547 | |||||||||||
Emirates Telecommunications Group Co. PJSC |
Diversified Telecommunication Services | 2,014 | 13,170 | |||||||||||
|
|
|||||||||||||
17,543 | ||||||||||||||
|
|
|||||||||||||
United Kingdom 5.0% | ||||||||||||||
Admiral Group PLC |
Insurance | 296 | 12,404 | |||||||||||
Anglo American PLC |
Metals & Mining | 1,388 | 49,080 | |||||||||||
b |
Auto Trader Group PLC, 144A |
Interactive Media & Services | 1,060 | 8,415 | ||||||||||
BAE Systems PLC |
Aerospace & Defense | 2,548 | 19,418 | |||||||||||
Berkeley Group Holdings PLC |
Household Durables | 120 | 7,058 | |||||||||||
BHP Group PLC |
Metals & Mining | 2,614 | 66,551 | |||||||||||
British American Tobacco PLC |
Tobacco | 2,574 | 90,376 | |||||||||||
British Land Co. PLC |
Equity Real Estate Investment Trusts (REITs | ) | 1,018 | 6,797 | ||||||||||
a |
BT Group PLC |
Diversified Telecommunication Services | 10,048 | 21,650 | ||||||||||
CK Hutchison Holdings Ltd. |
Industrial Conglomerates | 2,000 | 13,347 | |||||||||||
Croda International PLC |
Chemicals | 118 | 13,594 | |||||||||||
Direct Line Insurance Group PLC |
Insurance | 1,432 | 5,592 | |||||||||||
Ferguson PLC |
Trading Companies & Distributors | 204 | 28,428 | |||||||||||
GlaxoSmithKline PLC |
Pharmaceuticals | 6,064 | 114,764 | |||||||||||
Hargreaves Lansdown PLC |
Capital Markets | 487 | 9,400 | |||||||||||
Hikma Pharmaceuticals PLC |
Pharmaceuticals | 156 | 5,153 | |||||||||||
Imperial Brands PLC |
Tobacco | 1,466 | 30,807 | |||||||||||
Intertek Group PLC |
Professional Services | 172 | 11,543 | |||||||||||
Kingfisher PLC |
Specialty Retail | 2,078 | 9,428 | |||||||||||
Land Securities Group PLC |
Equity Real Estate Investment Trusts (REITs | ) | 736 | 6,917 | ||||||||||
M&G PLC |
Diversified Financial Services | 2,672 | 7,335 | |||||||||||
Mondi PLC |
Paper & Forest Products | 530 | 13,074 | |||||||||||
Persimmon PLC |
Household Durables | 410 | 14,749 | |||||||||||
RELX PLC |
Professional Services | 2,156 | 62,414 | |||||||||||
Spirax-Sarco Engineering PLC |
Machinery | 54 | 10,900 | |||||||||||
Unilever PLC |
Personal Products | 2,590 | 139,864 | |||||||||||
William Morrison Supermarkets PLC |
Food & Staples Retailing | 2,032 | 8,069 | |||||||||||
|
|
|||||||||||||
787,127 | ||||||||||||||
|
|
|||||||||||||
United States 55.7% | ||||||||||||||
3M Co. |
Industrial Conglomerates | 552 | 96,832 | |||||||||||
A O Smith Corp. |
Building Products | 126 | 7,695 | |||||||||||
AbbVie Inc. |
Biotechnology | 1,346 | 145,193 | |||||||||||
a |
ABIOMED Inc. |
Health Care Equipment & Supplies | 42 | 13,672 | ||||||||||
Accenture PLC, A |
IT Services | 550 | 175,956 | |||||||||||
a |
Adobe Inc. |
Software | 326 | 187,685 | ||||||||||
Air Products and Chemicals Inc. |
Chemicals | 212 | 54,295 | |||||||||||
a |
Alphabet Inc., A |
Interactive Media & Services | 34 | 90,900 | ||||||||||
a |
Alphabet Inc., C |
Interactive Media & Services | 34 | 90,621 | ||||||||||
Altria Group Inc. |
Tobacco | 2,904 | 132,190 | |||||||||||
American Tower Corp. |
Equity Real Estate Investment Trusts (REITs | ) | 462 | 122,619 | ||||||||||
Amgen Inc. |
Biotechnology | 624 | 132,694 | |||||||||||
Apple Inc. |
Technology Hardware, Storage & Peripherals | 1,248 | 176,592 |
franklintempleton.com |
Semiannual Report |
65 |
FRANKLIN TEMPLETON ETF TRUST
STATEMENT OF INVESTMENTS (UNAUDITED)
Franklin LibertyQ Global Equity ETF (continued)
Industry | Shares | Value | ||||||||||||
Common Stocks and Other Equity Interests (continued) | ||||||||||||||
United States (continued) | ||||||||||||||
Applied Materials Inc. |
Semiconductors & Semiconductor Equipment | 1,042 | $ | 134,137 | ||||||||||
a |
Arista Networks Inc. |
Communications Equipment | 50 | 17,182 | ||||||||||
AT&T Inc. |
Diversified Telecommunication Services | 5,024 | 135,698 | |||||||||||
Best Buy Co. Inc. |
Specialty Retail | 268 | 28,330 | |||||||||||
a |
Bio-Rad Laboratories Inc., A |
Life Sciences Tools & Services | 16 | 11,935 | ||||||||||
a |
Biogen Inc. |
Biotechnology | 214 | 60,560 | ||||||||||
BorgWarner Inc. |
Auto Components | 214 | 9,247 | |||||||||||
Bristol-Myers Squibb Co. |
Pharmaceuticals | 2,198 | 130,056 | |||||||||||
Broadridge Financial Solutions Inc. |
IT Services | 110 | 18,330 | |||||||||||
C.H. Robinson Worldwide Inc. |
Air Freight & Logistics | 144 | 12,528 | |||||||||||
a |
Cadence Design Systems Inc. |
Software | 302 | 45,735 | ||||||||||
Campbell Soup Co. |
Food Products | 190 | 7,944 | |||||||||||
Celanese Corp. |
Chemicals | 114 | 17,173 | |||||||||||
Cerner Corp. |
Health Care Technology | 260 | 18,335 | |||||||||||
Church & Dwight Co. Inc. |
Household Products | 236 | 19,487 | |||||||||||
Cisco Systems Inc. |
Communications Equipment | 2,978 | 162,093 | |||||||||||
Citrix Systems Inc. |
Software | 134 | 14,388 | |||||||||||
Clorox Co. |
Household Products | 170 | 28,154 | |||||||||||
Cognizant Technology Solutions Corp., A |
IT Services | 564 | 41,854 | |||||||||||
Colgate-Palmolive Co. |
Household Products | 888 | 67,115 | |||||||||||
Conagra Brands Inc. |
Food Products | 370 | 12,532 | |||||||||||
a |
Copart Inc. |
Commercial Services & Supplies | 228 | 31,628 | ||||||||||
Cummins Inc. |
Machinery | 164 | 36,828 | |||||||||||
D.R. Horton Inc. |
Household Durables | 354 | 29,725 | |||||||||||
a |
Dell Technologies Inc., C |
Technology Hardware, Storage & Peripherals | 140 | 14,566 | ||||||||||
Dollar General Corp. |
Multiline Retail | 246 | 52,186 | |||||||||||
Dominos Pizza Inc. |
Hotels, Restaurants & Leisure | 32 | 15,263 | |||||||||||
eBay Inc. |
Internet & Direct Marketing Retail | 666 | 46,400 | |||||||||||
Electronic Arts Inc. |
Entertainment | 282 | 40,114 | |||||||||||
Eli Lilly & Co. |
Pharmaceuticals | 806 | 186,226 | |||||||||||
Expeditors International of Washington Inc. |
Air Freight & Logistics | 186 | 22,158 | |||||||||||
Extra Space Storage Inc. |
Equity Real Estate Investment Trusts (REITs | ) | 132 | 22,175 | ||||||||||
a |
F5 Networks Inc. |
Communications Equipment | 62 | 12,324 | ||||||||||
a |
Facebook Inc., A |
Interactive Media & Services | 500 | 169,695 | ||||||||||
FactSet Research Systems Inc. |
Capital Markets | 40 | 15,791 | |||||||||||
Fastenal Co. |
Trading Companies & Distributors | 716 | 36,953 | |||||||||||
a |
Fortinet Inc. |
Software | 110 | 32,124 | ||||||||||
Fox Corp., A |
Media | 346 | 13,878 | |||||||||||
Fox Corp., B |
Media | 162 | 6,013 | |||||||||||
Garmin Ltd. |
Household Durables | 170 | 26,428 | |||||||||||
General Mills Inc. |
Food Products | 684 | 40,917 | |||||||||||
Gilead Sciences Inc. |
Biotechnology | 1,454 | 101,562 | |||||||||||
HCA Healthcare Inc. |
Health Care Providers & Services | 150 | 36,408 | |||||||||||
Hewlett Packard Enterprise Co. |
Technology Hardware, Storage & Peripherals | 980 | 13,965 | |||||||||||
Hormel Foods Corp. |
Food Products | 329 | 13,489 | |||||||||||
HP Inc. |
Technology Hardware, Storage & Peripherals | 1,234 | 33,762 | |||||||||||
Huntington Ingalls Industries Inc. |
Aerospace & Defense | 22 | 4,247 | |||||||||||
a |
IDEXX Laboratories Inc. |
Health Care Equipment & Supplies | 89 | 55,349 | ||||||||||
Illinois Tool Works Inc. |
Machinery | 326 | 67,361 | |||||||||||
Intel Corp. |
Semiconductors & Semiconductor Equipment | 2,848 | 151,741 | |||||||||||
International Business Machines Corp. |
IT Services | 980 | 136,151 | |||||||||||
Intuit Inc. |
Software | 284 | 153,221 | |||||||||||
Invesco Ltd. |
Capital Markets | 398 | 9,596 | |||||||||||
Iron Mountain Inc. |
Equity Real Estate Investment Trusts (REITs | ) | 180 | 7,821 | ||||||||||
Jack Henry & Associates Inc. |
IT Services | 80 | 13,125 | |||||||||||
a |
Jazz Pharmaceuticals PLC |
Pharmaceuticals | 58 | 7,552 | ||||||||||
JB Hunt Transport Services Inc. |
Road & Rail | 88 | 14,715 |
66 |
Semiannual Report |
franklintempleton.com |
FRANKLIN TEMPLETON ETF TRUST
STATEMENT OF INVESTMENTS (UNAUDITED)
Franklin LibertyQ Global Equity ETF (continued)
Industry | Shares | Value | ||||||||||||
Common Stocks and Other Equity Interests (continued) | ||||||||||||||
United States (continued) | ||||||||||||||
Johnson & Johnson |
Pharmaceuticals | 926 | $ | 149,549 | ||||||||||
Kellogg Co. |
Food Products | 256 | 16,364 | |||||||||||
Kimberly-Clark Corp. |
Household Products | 430 | 56,949 | |||||||||||
KLA Corp. |
Semiconductors & Semiconductor Equipment | 168 | 56,198 | |||||||||||
Kraft Heinz Co. |
Food Products | 336 | 12,372 | |||||||||||
Lam Research Corp. |
Semiconductors & Semiconductor Equipment | 146 | 83,096 | |||||||||||
Lennar Corp., A |
Household Durables | 146 | 13,677 | |||||||||||
Lockheed Martin Corp. |
Aerospace & Defense | 306 | 105,601 | |||||||||||
Lowe’s Cos. Inc. |
Specialty Retail | 812 | 164,722 | |||||||||||
Lumen Technologies Inc. |
Diversified Telecommunication Services | 744 | 9,218 | |||||||||||
LyondellBasell Industries NV, A |
Chemicals | 300 | 28,155 | |||||||||||
MarketAxess Holdings Inc. |
Capital Markets | 40 | 16,828 | |||||||||||
Masco Corp. |
Building Products | 136 | 7,555 | |||||||||||
Mastercard Inc., A |
IT Services | 434 | 150,893 | |||||||||||
Merck & Co. Inc. |
Pharmaceuticals | 1,974 | 148,267 | |||||||||||
a |
Mettler-Toledo International Inc. |
Life Sciences Tools & Services | 27 | 37,189 | ||||||||||
Microsoft Corp. |
Software | 644 | 181,556 | |||||||||||
a |
Moderna Inc. |
Biotechnology | 206 | 79,281 | ||||||||||
Monolithic Power Systems |
Semiconductors & Semiconductor Equipment | 32 | 15,510 | |||||||||||
a |
Monster Beverage Corp. |
Beverages | 438 | 38,908 | ||||||||||
Moody’s Corp. |
Capital Markets | 188 | 66,761 | |||||||||||
NetApp Inc. |
Technology Hardware, Storage & Peripherals | 270 | 24,235 | |||||||||||
NRG Energy Inc. |
Electric Utilities | 182 | 7,431 | |||||||||||
Nucor Corp. |
Metals & Mining | 330 | 32,502 | |||||||||||
a |
NVR Inc. |
Household Durables | 4 | 19,176 | ||||||||||
a |
O’Reilly Automotive Inc. |
Specialty Retail | 84 | 51,329 | ||||||||||
Old Dominion Freight Line Inc. |
Road & Rail | 110 | 31,458 | |||||||||||
Omnicom Group Inc. |
Media | 226 | 16,376 | |||||||||||
Oracle Corp. |
Software | 1,994 | 173,737 | |||||||||||
PACCAR Inc. |
Machinery | 332 | 26,201 | |||||||||||
Packaging Corp. of America |
Containers & Packaging | 98 | 13,469 | |||||||||||
Paychex Inc. |
IT Services | 339 | 38,121 | |||||||||||
PepsiCo Inc. |
Beverages | 1,078 | 162,142 | |||||||||||
Pfizer Inc. |
Pharmaceuticals | 3,930 | 169,029 | |||||||||||
Philip Morris International Inc. |
Tobacco | 1,616 | 153,181 | |||||||||||
Pool Corp. |
Distributors | 33 | 14,336 | |||||||||||
PPL Corp. |
Electric Utilities | 692 | 19,293 | |||||||||||
Public Storage |
Equity Real Estate Investment Trusts (REITs | ) | 226 | 67,145 | ||||||||||
PulteGroup Inc. |
Household Durables | 284 | 13,041 | |||||||||||
QUALCOMM Inc. |
Semiconductors & Semiconductor Equipment | 1,074 | 138,525 | |||||||||||
Quest Diagnostics Inc. |
Health Care Providers & Services | 72 | 10,462 | |||||||||||
a |
Regeneron Pharmaceuticals Inc. |
Biotechnology | 117 | 70,806 | ||||||||||
Robert Half International Inc. |
Professional Services | 140 | 14,046 | |||||||||||
Rockwell Automation Inc. |
Electrical Equipment | 116 | 34,109 | |||||||||||
Rollins Inc. |
Commercial Services & Supplies | 232 | 8,197 | |||||||||||
S&P Global Inc. |
Capital Markets | 314 | 133,415 | |||||||||||
Sealed Air Corp. |
Containers & Packaging | 82 | 4,493 | |||||||||||
SEI Investments Co. |
Capital Markets | 102 | 6,049 | |||||||||||
Simon Property Group Inc. |
Equity Real Estate Investment Trusts (REITs | ) | 368 | 47,829 | ||||||||||
Skyworks Solutions Inc. |
Semiconductors & Semiconductor Equipment | 208 | 34,274 | |||||||||||
Snap-on Inc. |
Machinery | 60 | 12,537 | |||||||||||
Steel Dynamics Inc. |
Metals & Mining | 226 | 13,216 | |||||||||||
Stellantis NV |
Automobiles | 1,296 | 24,816 | |||||||||||
T. Rowe Price Group Inc. |
Capital Markets | 232 | 45,634 | |||||||||||
a |
Take-Two Interactive Software Inc. |
Entertainment | 98 | 15,099 | ||||||||||
Target Corp. |
Multiline Retail | 584 | 133,602 | |||||||||||
TE Connectivity Ltd. |
Electronic Equipment, Instruments & Components | 310 | 42,538 |
franklintempleton.com |
Semiannual Report |
67 |
FRANKLIN TEMPLETON ETF TRUST
STATEMENT OF INVESTMENTS (UNAUDITED)
Franklin LibertyQ Global Equity ETF (continued)
Industry | Shares | Value | ||||||||||||
Common Stocks and Other Equity Interests (continued) | ||||||||||||||
United States (continued) | ||||||||||||||
Teradyne Inc. |
Semiconductors & Semiconductor Equipment | 152 | $ | 16,594 | ||||||||||
Texas Instruments Inc. |
Semiconductors & Semiconductor Equipment | 872 | 167,607 | |||||||||||
The Hershey Co. |
Food Products | 174 | 29,450 | |||||||||||
The Home Depot Inc. |
Specialty Retail | 492 | 161,504 | |||||||||||
The J.M. Smucker Co. |
Food Products | 106 | 12,723 | |||||||||||
The Kroger Co. |
Food & Staples Retailing | 836 | 33,799 | |||||||||||
The ooper Cos Inc. |
Health Care Equipment & Supplies | 25 | 10,333 | |||||||||||
The Procter & Gamble Co. |
Household Products | 1,144 | 159,931 | |||||||||||
The Progressive Corp. |
Insurance | 558 | 50,438 | |||||||||||
Tractor Supply Co. |
Specialty Retail | 126 | 25,529 | |||||||||||
Tyson Foods Inc. |
Food Products | 314 | 24,787 | |||||||||||
United Parcel Service Inc., B |
Air Freight & Logistics | 730 | 132,933 | |||||||||||
a |
Veeva Systems Inc. |
Health Care Technology | 114 | 32,851 | ||||||||||
Verizon Communications Inc. |
Diversified Telecommunication Services | 2,720 | 146,907 | |||||||||||
a |
Vertex Pharmaceuticals Inc. |
Biotechnology | 260 | 47,161 | ||||||||||
ViacomCBS Inc., B |
Media | 550 | 21,731 | |||||||||||
W.W. Grainger Inc. |
Trading Companies & Distributors | 48 | 18,867 | |||||||||||
Walgreens Boots Alliance Inc. |
Food & Staples Retailing | 718 | 33,782 | |||||||||||
Walmart Inc. |
Food & Staples Retailing | 1,136 | 158,336 | |||||||||||
a |
Waters Corp. |
Life Sciences Tools & Services | 38 | 13,577 | ||||||||||
West Pharmaceutical Services Inc. |
Health Care Equipment & Supplies | 66 | 28,020 | |||||||||||
Western Union Co. |
IT Services | 442 | 8,937 | |||||||||||
Whirlpool Corp. |
Household Durables | 54 | 11,008 | |||||||||||
Xilinx Inc. |
Semiconductors & Semiconductor Equipment | 250 | 37,748 | |||||||||||
|
|
|||||||||||||
8,736,265 | ||||||||||||||
|
|
|||||||||||||
Total Common Stocks and Other Equity Interests (Cost $12,565,068) |
15,573,386 | |||||||||||||
|
|
|||||||||||||
Preferred Stocks 0.3% | ||||||||||||||
Brazil 0.0%† | ||||||||||||||
d |
Bradespar SA, 10.306%, pfd. |
Metals & Mining | 226 | 2,167 | ||||||||||
d |
Companhia Energetica de Minas Gerais, 5.738%, pfd. |
Electric Utilities | 600 | 1,545 | ||||||||||
d |
Companhia Paranaense de Energia, 13.297%, pfd. |
Electric Utilities | 1,100 | 1,469 | ||||||||||
|
|
|||||||||||||
5,181 | ||||||||||||||
|
|
|||||||||||||
Germany 0.1% | ||||||||||||||
d |
Fuchs Petrolub SE, 2.449%, pfd. |
Chemicals | 64 | 2,998 | ||||||||||
d |
Porsche Automobil Holding SE, 2.572%, pfd. |
Automobiles | 178 | 17,729 | ||||||||||
|
|
|||||||||||||
20,727 | ||||||||||||||
|
|
|||||||||||||
Russia 0.0%† | ||||||||||||||
d |
Surgutneftegas PJSC, 16.675%, pfd. |
Oil, Gas & Consumable Fuels | 9,619 | 5,326 | ||||||||||
|
|
|||||||||||||
South Korea 0.2% | ||||||||||||||
d |
LG Household & Health Care Ltd., 1.721%, pfd. |
Personal Products | 2 | 1,085 | ||||||||||
d |
Samsung Electronics Co. Ltd., 4.323%, pfd. |
Technology Hardware, Storage & Peripherals | 350 | 20,574 | ||||||||||
|
|
|||||||||||||
21,659 | ||||||||||||||
|
|
|||||||||||||
Total Preferred Stocks (Cost $34,799) |
52,893 | |||||||||||||
|
|
|||||||||||||
Total Investments (Cost $12,599,867) 99.7% |
15,626,279 | |||||||||||||
Other Assets, less Liabilities 0.3% |
48,673 | |||||||||||||
|
|
|||||||||||||
Net Assets 100.0% |
$ | 15,674,952 | ||||||||||||
|
|
68 |
Semiannual Report |
franklintempleton.com |
FRANKLIN TEMPLETON ETF TRUST
STATEMENT OF INVESTMENTS (UNAUDITED)
Franklin LibertyQ Global Equity ETF (continued)
†Rounds to less than 0.1% of net assets.
aNon-income producing.
bSecurity was purchased pursuant to Rule 144A under the Securities Act of 1933 and may be sold in transactions exempt from registration only to qualified institutional buyers or in a public offering registered under the Securities Act of 1933. At September 30, 2021, the aggregate value of these securities was $109,684, representing 0.7% of net assets.
cSecurity was purchased pursuant to Regulation S under the Securities Act of 1933, which exempts from registration securities offered and sold outside of the United States. Such a security cannot be sold in the United States without either an effective registration statement filed pursuant to the Securities Act of 1933, or pursuant to an exemption from registration. At September 30, 2021, the aggregate value of these securities was $23,493, representing 0.1% of net assets.
dVariable rate security. The rate shown represents the yield at period end.
At September 30, 2021, the Fund had the following futures contracts outstanding. See Note 1(c).
Futures Contracts | ||||||||||||||||||||
Description | Type | Number of Contracts |
Notional Amount* |
Expiration Date |
Value/Unrealized Appreciation (Depreciation) |
|||||||||||||||
Index Contracts | ||||||||||||||||||||
MSCI All Country World Index |
Long | 1 | $ | 36,765 | 12/17/21 | $ | (1,034 | ) |
*As of period end.
See Note 8 regarding other derivative information.
See Abbreviations on page 124.
franklintempleton.com |
The accompanying notes are an integral part of these financial statements. | Semiannual Report |
69 |
FRANKLIN TEMPLETON ETF TRUST
Financial Highlights
Franklin LibertyQ International Equity Hedged ETF
Six Months Ended September 30, 2021 (unaudited) |
Year Ended March 31, | |||||||||||||||||||||||
2021 | 2020 | 2019 | 2018 | 2017a | ||||||||||||||||||||
Per share operating
performance (for a share outstanding throughout the period) |
| |||||||||||||||||||||||
Net asset value, beginning of period |
$ | 26.52 | $ | 22.55 | $ | 24.70 | $ | 24.25 | $ | 24.70 | $ | 25.45 | ||||||||||||
|
|
|||||||||||||||||||||||
Income from investment operationsb: |
| |||||||||||||||||||||||
Net investment incomec |
0.55 | 0.73 | 0.89 | 0.93 | 0.77 | 0.52 | ||||||||||||||||||
Net realized and unrealized gains (losses) |
0.96 | 5.27 | (2.61 | ) | 0.79 | 0.10 | 1.45 | |||||||||||||||||
|
|
|||||||||||||||||||||||
Total from investment operations |
1.51 | 6.00 | (1.72 | ) | 1.72 | 0.87 | 1.97 | |||||||||||||||||
|
|
|||||||||||||||||||||||
Less distributions from: |
| |||||||||||||||||||||||
Net investment income and net foreign currency gains |
(0.15 | ) | (0.91 | ) | (0.19 | ) | (0.30 | ) | (1.32 | ) | (2.72 | ) | ||||||||||||
Net realized gains |
— | (1.12 | ) | (0.24 | ) | (0.97 | ) | — | — | |||||||||||||||
|
|
|||||||||||||||||||||||
Total Distributions |
(0.15 | ) | (2.03 | ) | (0.43 | ) | (1.27 | ) | (1.32 | ) | (2.72 | ) | ||||||||||||
|
|
|||||||||||||||||||||||
Net asset value, end of period |
$27.88 | $26.52 | $22.55 | $24.70 | $24.25 | $24.70 | ||||||||||||||||||
|
|
|||||||||||||||||||||||
Total returnd |
5.70% | 27.54% | (7.12)% | 7.53% | 3.47% | 8.30% | ||||||||||||||||||
Ratios to average net assetse |
| |||||||||||||||||||||||
Expenses before waiver and payments by affiliates |
0.40% | 0.40% | 0.40% | 0.40% | 1.42% | f | 1.25% | |||||||||||||||||
Expenses net of waiver and payments by affiliates |
0.40% | 0.40% | 0.40% | 0.40% | 0.40% | f | 0.40% | |||||||||||||||||
Net investment income |
3.93% | 2.97% | 3.44% | 3.75% | 3.07% | 2.47% | ||||||||||||||||||
Supplemental data |
| |||||||||||||||||||||||
Net assets, end of period (000’s) |
$16,726 | $13,260 | $9,021 | $7,410 | $9,702 | $9,880 | ||||||||||||||||||
Portfolio turnover rateg |
15.63% | h | 42.33% | h | 26.82% | h | 39.24% | 32.55% | 19.09% |
aFor the period June 1, 2016 (commencement of operations) to March 31, 2017.
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: | 15.63% | 41.62% | 26.82% |
70 |
Semiannual Report | The accompanying notes are an integral part of these financial statements. |
franklintempleton.com |
FRANKLIN TEMPLETON ETF TRUST
Statement of Investments, September 30, 2021 (unaudited)
Franklin LibertyQ International Equity Hedged ETF
Industry | Shares | Value | ||||||||||||
Common Stocks and Other Equity Interests 98.8% | ||||||||||||||
Australia 11.9% | ||||||||||||||
AGL Energy Ltd. |
Multi-Utilities | 3,042 | $ | 12,701 | ||||||||||
Aurizon Holdings Ltd. |
Road & Rail | 8,718 | 23,867 | |||||||||||
BHP Group Ltd. |
Metals & Mining | 8,832 | 239,944 | |||||||||||
Brambles Ltd. |
Commercial Services & Supplies | 6,804 | 52,933 | |||||||||||
Coles Group Ltd. |
Food & Staples Retailing | 5,796 | 71,133 | |||||||||||
CSL Ltd. |
Biotechnology | 1,584 | 335,709 | |||||||||||
Endeavour Group Ltd. |
Food & Staples Retailing | 5,178 | 26,108 | |||||||||||
Evolution Mining Ltd. |
Metals & Mining | 7,440 | 18,756 | |||||||||||
Fortescue Metals Group Ltd. |
Metals & Mining | 13,518 | 146,081 | |||||||||||
Magellan Financial Group Ltd. |
Capital Markets | 588 | 15,023 | |||||||||||
Medibank Private Ltd. |
Insurance | 13,560 | 35,164 | |||||||||||
Newcrest Mining Ltd. |
Metals & Mining | 2,958 | 48,375 | |||||||||||
REA Group Ltd. |
Interactive Media & Services | 258 | 29,604 | |||||||||||
Rio Tinto Ltd. |
Metals & Mining | 2,388 | 172,808 | |||||||||||
Rio Tinto PLC |
Metals & Mining | 3,840 | 254,405 | |||||||||||
Sonic Healthcare Ltd. |
Health Care Providers & Services | 1,878 | 55,158 | |||||||||||
Telstra Corp. Ltd. |
Diversified Telecommunication Services | 19,812 | 56,243 | |||||||||||
Washington H. Soul Pattinson & Co. Ltd. |
Oil, Gas & Consumable Fuels | 300 | 8,456 | |||||||||||
Wesfarmers Ltd. |
Multiline Retail | 5,886 | 237,035 | |||||||||||
Woolworths Group Ltd. |
Food & Staples Retailing | 5,178 | 147,182 | |||||||||||
|
|
|||||||||||||
1,986,685 | ||||||||||||||
|
|
|||||||||||||
Austria 0.1% | ||||||||||||||
OMV AG |
Oil, Gas & Consumable Fuels | 414 | 25,036 | |||||||||||
|
|
|||||||||||||
Belgium 0.2% | ||||||||||||||
Colruyt SA |
Food & Staples Retailing | 270 | 13,768 | |||||||||||
Proximus SADP |
Diversified Telecommunication Services | 768 | 15,256 | |||||||||||
|
|
|||||||||||||
29,024 | ||||||||||||||
|
|
|||||||||||||
Chile 0.1% | ||||||||||||||
Antofagasta PLC |
Metals & Mining | 798 | 14,655 | |||||||||||
|
|
|||||||||||||
Denmark 4.6% | ||||||||||||||
AP Moeller-Maersk A/S, B |
Marine | 12 | 32,515 | |||||||||||
Coloplast AS, B |
Health Care Equipment & Supplies | 690 | 108,241 | |||||||||||
a |
Genmab A/S |
Biotechnology | 192 | 84,059 | ||||||||||
Novo Nordisk AS, B |
Pharmaceuticals | 4,218 | 408,514 | |||||||||||
Novozymes AS |
Chemicals | 882 | 60,485 | |||||||||||
Pandora AS |
Textiles, Apparel & Luxury Goods | 576 | 70,024 | |||||||||||
|
|
|||||||||||||
763,838 | ||||||||||||||
|
|
|||||||||||||
Finland 1.4% | ||||||||||||||
Elisa OYJ |
Diversified Telecommunication Services | 654 | 40,657 | |||||||||||
Kone OYJ, B |
Machinery | 1,452 | 102,280 | |||||||||||
Orion OYJ |
Pharmaceuticals | 540 | 21,435 | |||||||||||
UPM-Kymmene OYJ |
Paper & Forest Products | 2,016 | 71,752 | |||||||||||
|
|
|||||||||||||
236,124 | ||||||||||||||
|
|
|||||||||||||
France 3.8% | ||||||||||||||
Biomerieux |
Health Care Equipment & Supplies | 132 | 15,078 | |||||||||||
Hermes International |
Textiles, Apparel & Luxury Goods | 137 | 189,976 | |||||||||||
Ipsen SA |
Pharmaceuticals | 120 | 11,482 | |||||||||||
a |
Klepierre SA |
Equity Real Estate Investment Trusts (REITs | ) | 684 | 15,410 | |||||||||
b |
La Francaise des Jeux SAEM, 144A |
Hotels, Restaurants & Leisure | 180 | 9,281 | ||||||||||
Orange SA |
Diversified Telecommunication Services | 4,194 | 45,457 | |||||||||||
Sanofi |
Pharmaceuticals | 3,198 | 307,921 | |||||||||||
Sartorius Stedim Biotech |
Life Sciences Tools & Services | 90 | 50,453 | |||||||||||
|
|
|||||||||||||
645,058 | ||||||||||||||
|
|
franklintempleton.com |
Semiannual Report |
71 |
FRANKLIN TEMPLETON ETF TRUST
STATEMENT OF INVESTMENTS (UNAUDITED)
Franklin LibertyQ International Equity Hedged ETF (continued)
Industry | Shares | Value | ||||||||||||
Common Stocks and Other Equity Interests (continued) | ||||||||||||||
Germany 1.2% | ||||||||||||||
Deutsche Post AG |
Air Freight & Logistics | 1,878 | $ | 118,576 | ||||||||||
a |
HelloFresh SE |
Internet & Direct Marketing Retail | 522 | 48,374 | ||||||||||
Knorr-Bremse AG |
Machinery | 222 | 23,835 | |||||||||||
LANXESS AG |
Chemicals | 162 | 10,998 | |||||||||||
a,b |
Zalando SE, 144A |
Internet & Direct Marketing Retail | 18 | 1,655 | ||||||||||
|
|
|||||||||||||
203,438 | ||||||||||||||
|
|
|||||||||||||
Hong Kong 1.9% | ||||||||||||||
CK Asset Holdings Ltd. |
Real Estate Management & Development | 9,700 | 56,196 | |||||||||||
CK Infrastructure Holdings Ltd. |
Electric Utilities | 2,900 | 16,205 | |||||||||||
CLP Holdings Ltd. |
Electric Utilities | 3,500 | 33,720 | |||||||||||
Henderson Land Development Co. Ltd. |
Real Estate Management & Development | 3,000 | 11,503 | |||||||||||
HKT Trust and HKT Ltd. |
Diversified Telecommunication Services | 15,600 | 21,362 | |||||||||||
Power Assets Holdings Ltd. |
Electric Utilities | 6,000 | 35,300 | |||||||||||
Sino Land Co. Ltd. |
Real Estate Management & Development | 13,400 | 18,040 | |||||||||||
Sun Hung Kai Properties Ltd. |
Real Estate Management & Development | 4,400 | 55,052 | |||||||||||
Swire Pacific Ltd., A |
Real Estate Management & Development | 1,000 | 5,948 | |||||||||||
b |
WH Group Ltd., 144A |
Food Products | 27,000 | 19,249 | ||||||||||
Wharf Real Estate Investment Co. Ltd. |
Real Estate Management & Development | 4,600 | 23,814 | |||||||||||
Xinyi Glass Holdings Ltd. |
Building Products | 6,800 | 20,353 | |||||||||||
|
|
|||||||||||||
316,742 | ||||||||||||||
|
|
|||||||||||||
Israel 0.5% | ||||||||||||||
a |
Check Point Software Technologies Ltd. |
Software | 540 | 61,041 | ||||||||||
ICL Group Ltd. |
Chemicals | 2,550 | 18,733 | |||||||||||
|
|
|||||||||||||
79,774 | ||||||||||||||
|
|
|||||||||||||
Italy 1.6% | ||||||||||||||
DiaSorin SpA |
Health Care Equipment & Supplies | 114 | 23,960 | |||||||||||
Ferrari NV |
Automobiles | 486 | 101,920 | |||||||||||
Moncler SpA |
Textiles, Apparel & Luxury Goods | 816 | 50,141 | |||||||||||
Recordati Industria Chimica e Farmaceutica SpA |
Pharmaceuticals | 462 | 26,922 | |||||||||||
Snam SpA |
Gas Utilities | 7,698 | 42,788 | |||||||||||
Telecom Italia SpA |
Diversified Telecommunication Services | 20,238 | 7,960 | |||||||||||
Telecom Italia Spa Savings Share |
Diversified Telecommunication Services | 22,152 | 8,983 | |||||||||||
|
|
|||||||||||||
262,674 | ||||||||||||||
|
|
|||||||||||||
Japan 28.4% | ||||||||||||||
ABC-Mart Inc. |
Specialty Retail | 126 | 7,148 | |||||||||||
Advantest Corp. |
Semiconductors & Semiconductor Equipment | 780 | 70,118 | |||||||||||
Astellas Pharma Inc. |
Pharmaceuticals | 7,580 | 125,173 | |||||||||||
Azbil Corp. |
Electronic Equipment, Instruments & Components | 340 | 14,657 | |||||||||||
Bridgestone Corp. |
Auto Components | 2,380 | 113,182 | |||||||||||
Brother Industries Ltd. |
Technology Hardware, Storage & Peripherals | 660 | 14,593 | |||||||||||
Capcom Co. Ltd. |
Entertainment | 608 | 16,920 | |||||||||||
Chugai Pharmaceutical Co. Ltd. |
Pharmaceuticals | 2,960 | 108,850 | |||||||||||
Cosmos Pharmaceutical Corp. |
Food & Staples Retailing | 62 | 10,575 | |||||||||||
Daito Trust Construction Co. Ltd. |
Real Estate Management & Development | 390 | 45,580 | |||||||||||
Hitachi Ltd. |
Industrial Conglomerates | 3,220 | 191,627 | |||||||||||
Hoya Corp. |
Health Care Equipment & Supplies | 1,710 | 267,822 | |||||||||||
Iida Group Holdings Co. Ltd. |
Household Durables | 600 | 15,493 | |||||||||||
ITOCHU Corp. |
Trading Companies & Distributors | 5,880 | 172,698 | |||||||||||
Japan Post Bank Co. Ltd. |
Banks | 1,560 | 13,422 | |||||||||||
Japan Post Holdings Co. Ltd. |
Insurance | 3,000 | 25,398 | |||||||||||
Japan Tobacco Inc. |
Tobacco | 5,920 | 116,198 | |||||||||||
Kajima Corp. |
Construction & Engineering | 1,980 | 25,590 | |||||||||||
Kakaku.com Inc. |
Interactive Media & Services | 750 | 24,367 | |||||||||||
KAO Corp. |
Personal Products | 1,920 | 114,520 |
72 |
Semiannual Report |
franklintempleton.com |
FRANKLIN TEMPLETON ETF TRUST
STATEMENT OF INVESTMENTS (UNAUDITED)
Franklin LibertyQ International Equity Hedged ETF (continued)
Industry | Shares | Value | ||||||||||||
Common Stocks and Other Equity Interests (continued) | ||||||||||||||
Japan (continued) | ||||||||||||||
KDDI Corp. |
Wireless Telecommunication Services | 8,380 | $ | 277,218 | ||||||||||
Koei Tecmo Holdings Co. Ltd. |
Entertainment | 216 | 10,299 | |||||||||||
Lasertec Corp. |
Semiconductors & Semiconductor Equipment | 246 | 56,421 | |||||||||||
Meiji Holdings Co. Ltd. |
Food Products | 360 | 23,263 | |||||||||||
Mitsubishi Gas Chemical Co. Inc. |
Chemicals | 600 | 11,911 | |||||||||||
Mizuho Financial Group Inc. |
Banks | 4,700 | 66,746 | |||||||||||
Monotaro Co. Ltd. |
Trading Companies & Distributors | 940 | 21,264 | |||||||||||
Murata Manufacturing Co. Ltd. |
Electronic Equipment, Instruments & Components | 1,680 | 149,969 | |||||||||||
Nexon Co. Ltd. |
Entertainment | 2,120 | 34,334 | |||||||||||
Nihon M&A Center Inc. |
Professional Services | 1,160 | 34,257 | |||||||||||
Nintendo Co. Ltd. |
Entertainment | 486 | 236,564 | |||||||||||
Nippon Telegraph & Telephone Corp. |
Diversified Telecommunication Services | 6,720 | 185,805 | |||||||||||
Nitori Holdings Co. Ltd. |
Specialty Retail | 278 | 55,089 | |||||||||||
Nitto Denko Corp. |
Chemicals | 500 | 35,761 | |||||||||||
Nomura Research Institute Ltd. |
IT Services | 1,220 | 45,268 | |||||||||||
Obayashi Corp. |
Construction & Engineering | 2,800 | 23,314 | |||||||||||
OBIC Co. Ltd. |
IT Services | 240 | 45,967 | |||||||||||
Ono Pharmaceutical Co. Ltd. |
Pharmaceuticals | 1,220 | 27,915 | |||||||||||
Oracle Corp. Japan |
Software | 165 | 14,522 | |||||||||||
ORIX Corp. |
Diversified Financial Services | 4,840 | 91,530 | |||||||||||
Otsuka Corp. |
IT Services | 400 | 20,578 | |||||||||||
Pigeon Corp. |
Household Products | 480 | 11,185 | |||||||||||
Resona Holdings Inc. |
Banks | 4,200 | 16,894 | |||||||||||
SCSK Corp. |
IT Services | 420 | 8,906 | |||||||||||
Sekisui House Ltd. |
Household Durables | 2,800 | 59,011 | |||||||||||
Seven & i Holdings Co. Ltd. |
Food & Staples Retailing | 1,400 | 63,805 | |||||||||||
SG Holdings Co. Ltd. |
Air Freight & Logistics | 1,100 | 31,351 | |||||||||||
SHIMANO Inc. |
Leisure Products | 215 | 63,397 | |||||||||||
Shimizu Corp. |
Construction & Engineering | 1,600 | 12,089 | |||||||||||
Shin-Etsu Chemical Co. Ltd. |
Chemicals | 1,280 | 216,823 | |||||||||||
Shionogi & Co. Ltd. |
Pharmaceuticals | 1,200 | 82,320 | |||||||||||
Shoei Co. Ltd. |
Real Estate Management & Development | 1,204 | 13,467 | |||||||||||
Softbank Corp. |
Wireless Telecommunication Services | 13,760 | 186,776 | |||||||||||
Sumitomo Mitsui Financial Group Inc. |
Banks | 3,900 | 137,859 | |||||||||||
Sysmex Corp. |
Health Care Equipment & Supplies | 450 | 56,182 | |||||||||||
Taisei Corp. |
Construction & Engineering | 880 | 28,393 | |||||||||||
Tokyo Electron Ltd. |
Semiconductors & Semiconductor Equipment | 714 | 317,852 | |||||||||||
Tosoh Corp. |
Chemicals | 1,200 | 21,876 | |||||||||||
Toyo Suisan Kaisha Ltd. |
Food Products | 280 | 12,435 | |||||||||||
Toyota Motor Corp. |
Automobiles | 21,600 | 387,184 | |||||||||||
Tsuruha Holdings Inc. |
Food & Staples Retailing | 130 | 16,032 | |||||||||||
USS Co. Ltd. |
Specialty Retail | 900 | 15,431 | |||||||||||
Welcia Holdings Co. Ltd. |
Food & Staples Retailing | 300 | 10,782 | |||||||||||
Zozo Inc. |
Internet & Direct Marketing Retail | 600 | 22,559 | |||||||||||
|
|
|||||||||||||
4,754,535 | ||||||||||||||
|
|
|||||||||||||
Netherlands 4.9% | ||||||||||||||
a,b |
Adyen NV, 144A |
IT Services | 54 | 151,139 | ||||||||||
ASML Holding NV |
Semiconductors & Semiconductor Equipment | 540 | 404,226 | |||||||||||
Koninklijke Ahold Delhaize NV |
Food & Staples Retailing | 4,650 | 154,856 | |||||||||||
Koninklijke KPN NV |
Diversified Telecommunication Services | 11,880 | 37,381 | |||||||||||
NN Group NV |
Insurance | 1,146 | 60,126 | |||||||||||
Randstad NV |
Professional Services | 246 | 16,564 | |||||||||||
|
|
|||||||||||||
824,292 | ||||||||||||||
|
|
|||||||||||||
New Zealand 0.7% | ||||||||||||||
a |
a2 Milk Co. Ltd. |
Food Products | 2,964 | 13,147 | ||||||||||
Fisher & Paykel Healthcare Corp. Ltd. |
Health Care Equipment & Supplies | 3,072 | 67,815 |
franklintempleton.com |
Semiannual Report |
73 |
FRANKLIN TEMPLETON ETF TRUST
STATEMENT OF INVESTMENTS (UNAUDITED)
Franklin LibertyQ International Equity Hedged ETF (continued)
Industry | Shares | Value | ||||||||||||
Common Stocks and Other Equity Interests (continued) | ||||||||||||||
New Zealand (continued) | ||||||||||||||
Spark New Zealand Ltd. |
Diversified Telecommunication Services | 9,966 | $ | 32,863 | ||||||||||
|
|
|||||||||||||
113,825 | ||||||||||||||
|
|
|||||||||||||
Norway 0.6% | ||||||||||||||
Orkla ASA |
Food Products | 3,168 | 29,113 | |||||||||||
Telenor ASA |
Diversified Telecommunication Services | 3,084 | 52,040 | |||||||||||
Yara International ASA |
Chemicals | 570 | 28,359 | |||||||||||
|
|
|||||||||||||
109,512 | ||||||||||||||
|
|
|||||||||||||
Portugal 0.1% | ||||||||||||||
Jeronimo Martins SGPS SA |
Food & Staples Retailing | 954 | 19,028 | |||||||||||
|
|
|||||||||||||
Russia 0.1% | ||||||||||||||
Evraz PLC |
Metals & Mining | 3,120 | 25,006 | |||||||||||
|
|
|||||||||||||
Singapore 0.8% | ||||||||||||||
Singapore Exchange Ltd. |
Capital Markets | 4,920 | 36,168 | |||||||||||
Singapore Technologies Engineering Ltd. |
Aerospace & Defense | 4,800 | 13,471 | |||||||||||
Singapore Telecommunications Ltd. |
Diversified Telecommunication Services | 36,600 | 66,320 | |||||||||||
Venture Corp. Ltd. |
Electronic Equipment, Instruments & Components | 1,200 | 15,884 | |||||||||||
|
|
|||||||||||||
131,843 | ||||||||||||||
|
|
|||||||||||||
Spain 5.3% | ||||||||||||||
Banco Bilbao Vizcaya Argentaria SA |
Banks | 12,768 | 84,597 | |||||||||||
Banco Santander SA |
Banks | 55,122 | 200,371 | |||||||||||
CaixaBank SA |
Banks | 10,590 | 32,941 | |||||||||||
Enagas SA |
Gas Utilities | 972 | 21,634 | |||||||||||
Endesa SA |
Electric Utilities | 1,422 | 28,709 | |||||||||||
Iberdrola SA |
Electric Utilities | 21,762 | 219,020 | |||||||||||
Industria de Diseno Textil SA |
Specialty Retail | 4,422 | 163,074 | |||||||||||
Red Electrica Corp. SA |
Electric Utilities | 1,896 | 38,036 | |||||||||||
Telefonica SA |
Diversified Telecommunication Services | 19,908 | 93,374 | |||||||||||
|
|
|||||||||||||
881,756 | ||||||||||||||
|
|
|||||||||||||
Sweden 3.1% | ||||||||||||||
Atlas Copco AB |
Machinery | 1,590 | 81,512 | |||||||||||
Atlas Copco AB, A |
Machinery | 2,292 | 139,429 | |||||||||||
Boliden AB |
Metals & Mining | 1,218 | 39,303 | |||||||||||
Epiroc AB, A |
Machinery | 2,364 | 49,179 | |||||||||||
Epiroc AB, B |
Machinery | 1,380 | 24,584 | |||||||||||
b,c |
Evolution Gaming Group AB, 144A, Reg S |
Hotels, Restaurants & Leisure | 594 | 90,615 | ||||||||||
Husqvarna AB, B |
Household Durables | 816 | 9,798 | |||||||||||
ICA Gruppen AB |
Food & Staples Retailing | 384 | 17,649 | |||||||||||
a |
Kinnevik AB, B |
Diversified Financial Services | 660 | 23,323 | ||||||||||
Swedish Match AB |
Tobacco | 5,208 | 45,636 | |||||||||||
|
|
|||||||||||||
521,028 | ||||||||||||||
|
|
|||||||||||||
Switzerland 9.8% | ||||||||||||||
EMS-Chemie Holding AG |
Chemicals | 38 | 36,010 | |||||||||||
Geberit AG |
Building Products | 177 | 130,732 | |||||||||||
Kuehne + Nagel International AG |
Marine | 186 | 63,685 | |||||||||||
Logitech International SA |
Technology Hardware, Storage & Peripherals | 774 | 69,082 | |||||||||||
Nestle SA |
Food Products | 2,796 | 337,792 | |||||||||||
Novartis AG |
Pharmaceuticals | 3,822 | 314,782 | |||||||||||
Partners Group Holding AG |
Capital Markets | 114 | 179,215 | |||||||||||
Roche Holding AG, Bearer |
Pharmaceuticals | 18 | 7,417 | |||||||||||
Roche Holding AG, Non-Voting |
Pharmaceuticals | 984 | 360,700 | |||||||||||
SGS SA |
Professional Services | 23 | 67,211 | |||||||||||
Swisscom AG |
Diversified Telecommunication Services | 114 | 65,674 | |||||||||||
|
|
|||||||||||||
1,632,300 | ||||||||||||||
|
|
74 |
Semiannual Report |
franklintempleton.com |
FRANKLIN TEMPLETON ETF TRUST
STATEMENT OF INVESTMENTS (UNAUDITED)
Franklin LibertyQ International Equity Hedged ETF (continued)
Industry | Shares | Value | ||||||||||||
Common Stocks and Other Equity Interests (continued) | ||||||||||||||
United Kingdom 17.1% | ||||||||||||||
Admiral Group PLC |
Insurance | 1,176 | $ | 49,282 | ||||||||||
Anglo American PLC |
Metals & Mining | 5,424 | 191,795 | |||||||||||
b |
Auto Trader Group PLC, 144A |
Interactive Media & Services | 4,242 | 33,678 | ||||||||||
BAE Systems PLC |
Aerospace & Defense | 13,602 | 103,659 | |||||||||||
Berkeley Group Holdings PLC |
Household Durables | 471 | 27,702 | |||||||||||
BHP Group PLC |
Metals & Mining | 10,260 | 261,215 | |||||||||||
British American Tobacco PLC |
Tobacco | 8,550 | 300,200 | |||||||||||
British Land Co. PLC |
Equity Real Estate Investment Trusts (REITs | ) | 3,894 | 26,000 | ||||||||||
a |
BT Group PLC |
Diversified Telecommunication Services | 39,606 | 85,338 | ||||||||||
Bunzl PLC |
Trading Companies & Distributors | 942 | 31,182 | |||||||||||
CK Hutchison Holdings Ltd. |
Industrial Conglomerates | 5,000 | 33,367 | |||||||||||
Croda International PLC |
Chemicals | 462 | 53,224 | |||||||||||
Direct Line Insurance Group PLC |
Insurance | 5,670 | 22,140 | |||||||||||
Ferguson PLC |
Trading Companies & Distributors | 810 | 112,875 | |||||||||||
GlaxoSmithKline PLC |
Pharmaceuticals | 17,460 | 330,438 | |||||||||||
Halma PLC |
Electronic Equipment, Instruments & Components | 1,194 | 45,754 | |||||||||||
Hargreaves Lansdown PLC |
Capital Markets | 1,932 | 37,291 | |||||||||||
Hikma Pharmaceuticals PLC |
Pharmaceuticals | 618 | 20,415 | |||||||||||
Imperial Brands PLC |
Tobacco | 5,862 | 123,184 | |||||||||||
Intertek Group PLC |
Professional Services | 696 | 46,707 | |||||||||||
Kingfisher PLC |
Specialty Retail | 8,142 | 36,942 | |||||||||||
Land Securities Group PLC |
Equity Real Estate Investment Trusts (REITs | ) | 2,904 | 27,292 | ||||||||||
M&G PLC |
Diversified Financial Services | 10,416 | 28,595 | |||||||||||
Mondi PLC |
Paper & Forest Products | 2,058 | 50,767 | |||||||||||
Next PLC |
Multiline Retail | 570 | 63,114 | |||||||||||
Pearson PLC |
Media | 2,874 | 27,583 | |||||||||||
Persimmon PLC |
Household Durables | 1,620 | 58,278 | |||||||||||
RELX PLC |
Professional Services | 8,448 | 244,562 | |||||||||||
Spirax-Sarco Engineering PLC |
Machinery | 246 | 49,655 | |||||||||||
Unilever PLC |
Personal Products | 5,586 | 301,652 | |||||||||||
William Morrison Supermarkets PLC |
Food & Staples Retailing | 7,830 | 31,092 | |||||||||||
|
|
|||||||||||||
2,854,978 | ||||||||||||||
|
|
|||||||||||||
United States 0.6% | ||||||||||||||
Stellantis NV |
Automobiles | 4,968 | 95,128 | |||||||||||
|
|
|||||||||||||
Total Common Stocks and Other Equity Interests (Cost $14,531,185) |
16,526,279 | |||||||||||||
|
|
|||||||||||||
Preferred Stocks 0.5% | ||||||||||||||
Germany 0.5% | ||||||||||||||
d |
Fuchs Petrolub SE, 2.449%, pfd. |
Chemicals | 294 | 13,772 | ||||||||||
d |
Porsche Automobil Holding SE, 2.572%, pfd. |
Automobiles | 690 | 68,724 | ||||||||||
|
|
|||||||||||||
Total Preferred Stocks (Cost $66,867) |
82,496 | |||||||||||||
|
|
|||||||||||||
Total
Investments |
16,608,775 | |||||||||||||
Other Assets, less Liabilities 0.7% |
117,068 | |||||||||||||
|
|
|||||||||||||
Net Assets 100.0% |
$ | 16,725,843 | ||||||||||||
|
|
franklintempleton.com |
Semiannual Report |
75 |
FRANKLIN TEMPLETON ETF TRUST
STATEMENT OF INVESTMENTS (UNAUDITED)
Franklin LibertyQ International Equity Hedged ETF (continued)
aNon-income producing.
bSecurity was purchased pursuant to Rule 144A under the Securities Act of 1933 and may be sold in transactions exempt from registration only to qualified institutional buyers or in a public offering registered under the Securities Act of 1933. At September 30, 2021, the aggregate value of these securities was $305,617, representing 1.8% of net assets
cSecurity was purchased pursuant to Regulation S under the Securities Act of 1933, which exempts from registration securities offered and sold outside of the United States. Such a security cannot be sold in the United States without either an effective registration statement filed pursuant to the Securities Act of 1933, or pursuant to an exemption from registration. At September 30, 2021, the aggregate value of these securities was $90,615, representing 0.5% of net assets.
dVariable rate security. The rate shown represents the yield at period end.
At September 30, 2021 the Fund had the following forward exchange contracts outstanding. See Note 1(c).
Forward Exchange Contracts | ||||||||||||||||||||||||||||
Currency | Counterpartya | Type | Quantity | Contract Amount |
Settlement Date |
Unrealized Appreciation |
Unrealized Depreciation |
|||||||||||||||||||||
OTC Forward Exchange Contracts | ||||||||||||||||||||||||||||
Danish Krone |
BOFA | Buy | 5,064,200 | $ | 789,311 | 10/04/21 | $ | — | $ | (16 | ) | |||||||||||||||||
Danish Krone |
BOFA | Sell | 5,064,200 | 804,244 | 10/04/21 | 14,948 | — | |||||||||||||||||||||
Euro |
BOFA | Buy | 2,959,900 | 3,430,444 | 10/04/21 | — | (68 | ) | ||||||||||||||||||||
Euro |
BOFA | Sell | 2,959,900 | 3,496,133 | 10/04/21 | 65,757 | — | |||||||||||||||||||||
Great British Pound |
BOFA | Buy | 804,810 | 1,085,187 | 10/04/21 | — | (21 | ) | ||||||||||||||||||||
Great British Pound |
HSBK | Buy | 804,810 | 1,085,182 | 10/04/21 | — | (16 | ) | ||||||||||||||||||||
Great British Pound |
UBSW | Buy | 804,810 | 1,085,176 | 10/04/21 | — | (10 | ) | ||||||||||||||||||||
Great British Pound |
BOFA | Sell | 804,810 | 1,107,723 | 10/04/21 | 22,557 | — | |||||||||||||||||||||
Great British Pound |
HSBK | Sell | 804,810 | 1,107,729 | 10/04/21 | 22,563 | — | |||||||||||||||||||||
Great British Pound |
UBSW | Sell | 804,810 | 1,107,715 | 10/04/21 | 22,549 | — | |||||||||||||||||||||
Israeli Shekel |
BOFA | Buy | 57,300 | 17,761 | 10/04/21 | — | — | |||||||||||||||||||||
Israeli Shekel |
BOFA | Sell | 57,300 | 17,888 | 10/04/21 | 127 | — | |||||||||||||||||||||
Japanese Yen |
BOFA | Buy | 500,781,300 | 4,488,205 | 10/04/21 | 89 | — | |||||||||||||||||||||
Japanese Yen |
BOFA | Sell | 500,781,300 | 4,559,471 | 10/04/21 | 71,178 | — | |||||||||||||||||||||
New Zealand Dollar |
BOFA | Buy | 163,700 | 112,931 | 10/04/21 | — | (2 | ) | ||||||||||||||||||||
New Zealand Dollar |
BOFA | Sell | 163,700 | 115,213 | 10/04/21 | 2,285 | — | |||||||||||||||||||||
Norwegian Krone |
BOFA | Buy | 968,300 | 110,924 | 10/04/21 | 2 | — | |||||||||||||||||||||
Norwegian Krone |
BOFA | Sell | 968,300 | 111,230 | 10/04/21 | 304 | — | |||||||||||||||||||||
Singapore Dollar |
BOFA | Buy | 175,200 | 129,049 | 10/04/21 | 3 | — | |||||||||||||||||||||
Singapore Dollar |
BOFA | Sell | 175,200 | 130,243 | 10/04/21 | 1,191 | — | |||||||||||||||||||||
Swedish Krona |
BOFA | Buy | 4,886,800 | 558,595 | 10/04/21 | — | (11 | ) | ||||||||||||||||||||
Swedish Krona |
BOFA | Sell | 4,886,800 | 565,805 | 10/04/21 | 7,221 | — | |||||||||||||||||||||
Swiss Franc |
MSCO | Buy | 1,607,900 | 1,723,686 | 10/04/21 | — | (43 | ) | ||||||||||||||||||||
Swiss Franc |
MSCO | Sell | 1,607,900 | 1,756,590 | 10/04/21 | 32,948 | — | |||||||||||||||||||||
Australian Dollar |
DBAB | Buy | 2,626,500 | 1,897,252 | 10/05/21 | 1 | — | |||||||||||||||||||||
Australian Dollar |
DBAB | Sell | 2,626,500 | 1,919,446 | 10/05/21 | 22,193 | — | |||||||||||||||||||||
Hong Kong Dollar |
MSCO | Buy | 2,956,700 | 379,831 | 10/05/21 | — | (19 | ) | ||||||||||||||||||||
Hong Kong Dollar |
MSCO | Sell | 2,956,700 | 380,217 | 10/05/21 | 405 | — | |||||||||||||||||||||
Australian Dollar |
DBAB | Sell | 2,361,100 | 1,705,732 | 11/02/21 | — | (14 | ) | ||||||||||||||||||||
Danish Krone |
BOFA | Sell | 4,932,300 | 769,127 | 11/02/21 | — | (3 | ) | ||||||||||||||||||||
Euro |
BOFA | Sell | 2,900,100 | 3,362,936 | 11/02/21 | 31 | — | |||||||||||||||||||||
Great British Pound |
BOFA | Sell | 776,596 | 1,047,175 | 11/02/21 | 11 | — | |||||||||||||||||||||
Great British Pound |
HSBK | Sell | 776,596 | 1,047,177 | 11/02/21 | 12 | — | |||||||||||||||||||||
Great British Pound |
UBSW | Sell | 776,596 | 1,047,165 | 11/02/21 | 1 | — | |||||||||||||||||||||
Hong Kong Dollar |
MSCO | Sell | 2,762,300 | 354,886 | 11/02/21 | 16 | — | |||||||||||||||||||||
Israeli Shekel |
BOFA | Sell | 62,900 | 19,500 | 11/02/21 | — | (1 | ) | ||||||||||||||||||||
Japanese Yen |
BOFA | Sell | 538,270,200 | 4,825,103 | 11/02/21 | — | (136 | ) | ||||||||||||||||||||
New Zealand Dollar |
BOFA | Sell | 162,600 | 112,151 | 11/02/21 | — | (1 | ) | ||||||||||||||||||||
Norwegian Krone |
BOFA | Sell | 955,000 | 109,374 | 11/02/21 | — | (5 | ) | ||||||||||||||||||||
Singapore Dollar |
BOFA | Sell | 181,300 | 133,531 | 11/02/21 | — | (6 | ) | ||||||||||||||||||||
Swedish Krona |
BOFA | Sell | 4,562,500 | 521,624 | 11/02/21 | 3 | — | |||||||||||||||||||||
Swiss Franc |
MSCO | Sell | 1,535,900 | 1,647,638 | 11/02/21 | 24 | — | |||||||||||||||||||||
|
|
|||||||||||||||||||||||||||
Total Forward Exchange Contracts |
|
$ | 286,419 | $ | (372 | ) | ||||||||||||||||||||||
|
|
|||||||||||||||||||||||||||
Net unrealized appreciation (depreciation) |
|
$ | 286,047 | |||||||||||||||||||||||||
|
|
aMay be comprised of multiple contracts with the same counterparty, currency and settlement date.
76 |
Semiannual Report |
franklintempleton.com |
FRANKLIN TEMPLETON ETF TRUST
STATEMENT OF INVESTMENTS (UNAUDITED)
Franklin LibertyQ International Equity Hedged ETF (continued)
At September 30, 2021, the Fund had the following futures contracts outstanding. See Note 1(c).
Futures Contracts | ||||||||||||||||||||
Description | Type | Number of Contracts |
Notional Amount* |
Expiration Date |
Value/Unrealized Appreciation (Depreciation) |
|||||||||||||||
Equity Contracts | ||||||||||||||||||||
MSCI All Country World Index |
Long | 1 | $ | 113,350 | 12/17/21 | $ | (5,257 | ) |
*As of period end.
See Note 8 regarding other derivative information.
See Abbreviations on page 124.
franklintempleton.com |
The accompanying notes are an integral part of these financial statements. | Semiannual Report |
77 |
FRANKLIN TEMPLETON ETF TRUST
Financial Highlights
Franklin LibertyQ U.S. Equity ETF
Six Months Ended September 30, 2021 (unaudited) |
Year Ended March 31, | |||||||||||||||||||
2021 | 2020 | 2019 | 2018a | |||||||||||||||||
Per share operating performance |
| |||||||||||||||||||
(for a share outstanding throughout the period) |
| |||||||||||||||||||
Net asset value, beginning of period |
$ | 40.04 | $ | 27.61 | $ | 31.41 | $ | 28.51 | $ | 25.44 | ||||||||||
|
|
|||||||||||||||||||
Income from investment operationsb: |
| |||||||||||||||||||
Net investment incomec |
0.37 | 0.72 | 0.76 | 0.66 | 0.53 | |||||||||||||||
Net realized and unrealized gains (losses) |
2.18 | 12.49 | (3.89 | ) | 2.71 | 2.98 | ||||||||||||||
|
|
|||||||||||||||||||
Total from investment operations |
2.55 | 13.21 | (3.13 | ) | 3.37 | 3.51 | ||||||||||||||
|
|
|||||||||||||||||||
Less distributions from net investment income |
(0.40 | ) | (0.78 | ) | (0.67 | ) | (0.47 | ) | (0.44 | ) | ||||||||||
|
|
|||||||||||||||||||
Net asset value, end of period |
$42.19 | $40.04 | $27.61 | $31.41 | $28.51 | |||||||||||||||
|
|
|||||||||||||||||||
Total returnd |
6.35% | 48.22% | (10.27)% | 11.97% | 13.84% | |||||||||||||||
Ratios to average net assetse |
| |||||||||||||||||||
Expenses before waiver and payments by affiliates |
0.15% | 0.15% | 0.18% | 0.25% | 0.32% | f | ||||||||||||||
Expenses net of waiver and payments by affiliates |
0.15% | 0.15% | 0.18% | 0.25% | 0.25% | f | ||||||||||||||
Net investment income |
1.74% | 2.06% | 2.32% | 2.20% | 2.10% | |||||||||||||||
Supplemental data |
| |||||||||||||||||||
Net assets, end of period (000’s) |
$919,837 | $1,353,407 | $1,311,583 | $1,008,255 | $108,326 | |||||||||||||||
Portfolio turnover rateg |
10.64% | h | 25.05% | h | 19.44% | h | 18.04% | 20.80% |
aFor the period April 26, 2017 (commencement of operations) to March 31, 2018.
bThe amount shown for a share outstanding throughout the period may not correlate with the Statement of Operations for the period due to the timing of sales and repurchases of Creation Unit Fund shares in relation to income earned and/or fluctuating fair value of the investments of the Fund.
cBased on average daily shares outstanding.
dTotal return is not annualized for periods less than one year. Total return is calculated assuming an initial investment made at the net asset value at the beginning of the period, reinvestment of all dividends and distributions at net asset value during the period, and redemption at net asset value on the last day of the period.
eRatios are annualized for periods less than one year.
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: | 10.64% | 25.05% | 19.44% |
78 |
Semiannual Report | The accompanying notes are an integral part of these financial statements. |
franklintempleton.com |
FRANKLIN TEMPLETON ETF TRUST
Statement of Investments, September 30, 2021 (unaudited)
Franklin LibertyQ U.S. Equity ETF
Shares | Value | |||||||||
Common Stocks 99.9% | ||||||||||
Communication Services 6.3% | ||||||||||
Activision Blizzard Inc. |
63,656 | $ | 4,926,338 | |||||||
a |
Alphabet Inc., A |
2,029 | 5,424,572 | |||||||
AT&T Inc. |
312,176 | 8,431,874 | ||||||||
Comcast Corp., A |
160,448 | 8,973,857 | ||||||||
Electronic Arts Inc. |
24,416 | 3,473,176 | ||||||||
a |
Facebook Inc., A |
27,974 | 9,494,096 | |||||||
Fox Corp., A |
12,208 | 489,663 | ||||||||
Lumen Technologies Inc. |
67,144 | 831,914 | ||||||||
a |
Match Group Inc. |
19,184 | 3,011,696 | |||||||
Omnicom Group Inc. |
33,572 | 2,432,627 | ||||||||
The Interpublic Group of Cos. Inc. |
53,192 | 1,950,551 | ||||||||
Verizon Communications Inc. |
162,628 | 8,783,538 | ||||||||
World Wrestling Entertainment Inc., A |
1,744 | 98,117 | ||||||||
|
|
|||||||||
58,322,019 | ||||||||||
|
|
|||||||||
Consumer Discretionary 8.0% | ||||||||||
a |
AutoNation Inc. |
2,180 | 265,437 | |||||||
a |
AutoZone Inc. |
3,242 | 5,504,884 | |||||||
Best Buy Co. Inc. |
39,240 | 4,148,060 | ||||||||
Brunswick Corp. |
3,052 | 290,764 | ||||||||
Carter’s Inc. |
6,540 | 635,950 | ||||||||
D.R. Horton Inc. |
33,136 | 2,782,430 | ||||||||
Dick’s Sporting Goods Inc. |
2,616 | 313,318 | ||||||||
Dollar General Corp. |
37,060 | 7,861,908 | ||||||||
eBay Inc. |
46,216 | 3,219,869 | ||||||||
Foot Locker Inc. |
18,748 | 856,034 | ||||||||
Garmin Ltd. |
23,108 | 3,592,370 | ||||||||
Gentex Corp. |
42,292 | 1,394,790 | ||||||||
Genuine Parts Co. |
5,232 | 634,275 | ||||||||
a |
Grand Canyon Education Inc. |
3,924 | 345,155 | |||||||
H&R Block Inc. |
33,572 | 839,300 | ||||||||
Lennar Corp., A |
10,464 | 980,268 | ||||||||
McDonald’s Corp. |
39,240 | 9,461,156 | ||||||||
a |
NVR Inc. |
512 | 2,454,569 | |||||||
a |
O’Reilly Automotive Inc. |
11,515 | 7,036,356 | |||||||
Penske Automotive Group Inc. |
1,308 | 131,585 | ||||||||
Polaris Inc. |
2,180 | 260,859 | ||||||||
Pool Corp. |
6,574 | 2,855,811 | ||||||||
PulteGroup Inc. |
31,828 | 1,461,542 | ||||||||
Qurate Retail Inc., A |
26,596 | 271,013 | ||||||||
Target Corp. |
40,548 | 9,276,166 | ||||||||
Tractor Supply Co. |
19,620 | 3,975,208 | ||||||||
Whirlpool Corp. |
2,180 | 444,415 | ||||||||
Williams-Sonoma Inc. |
13,516 | 2,396,792 | ||||||||
|
|
|||||||||
73,690,284 | ||||||||||
|
|
|||||||||
Consumer Staples 13.4% | ||||||||||
Altria Group Inc. |
186,608 | 8,494,396 | ||||||||
Archer-Daniels-Midland Co. |
21,364 | 1,282,054 | ||||||||
a |
Boston Beer Inc., A |
896 | 456,736 | |||||||
Brown-Forman Corp., A |
7,412 | 464,510 | ||||||||
Bunge Ltd. |
5,232 | 425,466 | ||||||||
Campbell Soup Co. |
17,004 | 710,937 | ||||||||
Casey’s General Stores Inc. |
5,254 | 990,116 | ||||||||
Church & Dwight Co. Inc. |
38,368 | 3,168,046 | ||||||||
Clorox Co. |
22,672 | 3,754,710 | ||||||||
Conagra Brands Inc. |
17,876 | 605,460 | ||||||||
Costco Wholesale Corp. |
24,381 | 10,955,602 |
franklintempleton.com |
Semiannual Report |
79 |
FRANKLIN TEMPLETON ETF TRUST
STATEMENT OF INVESTMENTS (UNAUDITED)
Franklin LibertyQ U.S. Equity ETF (continued)
Shares | Value | |||||||||
Common Stocks (continued) | ||||||||||
Consumer Staples (continued) | ||||||||||
Estee Lauder Cos. Inc., A |
30,084 | $ | 9,023,094 | |||||||
Flowers Foods Inc. |
29,648 | 700,582 | ||||||||
General Mills Inc. |
99,408 | 5,946,587 | ||||||||
Hormel Foods Corp. |
45,344 | 1,859,104 | ||||||||
Ingredion Inc. |
10,028 | 892,592 | ||||||||
Kellogg Co. |
32,700 | 2,090,184 | ||||||||
Kimberly-Clark Corp. |
13,952 | 1,847,803 | ||||||||
a |
Monster Beverage Corp. |
54,500 | 4,841,235 | |||||||
PepsiCo Inc. |
61,912 | 9,312,184 | ||||||||
Philip Morris International Inc. |
95,484 | 9,050,928 | ||||||||
The Coca-Cola Co. |
166,116 | 8,716,107 | ||||||||
The Hershey Co. |
26,160 | 4,427,580 | ||||||||
The J.M. Smucker Co. |
15,260 | 1,831,658 | ||||||||
The Kroger Co. |
97,664 | 3,948,556 | ||||||||
The Procter & Gamble Co. |
68,016 | 9,508,637 | ||||||||
Tyson Foods Inc. |
43,164 | 3,407,366 | ||||||||
Walgreens Boots Alliance Inc. |
106,384 | 5,005,367 | ||||||||
Walmart Inc. |
64,528 | 8,993,913 | ||||||||
|
|
|||||||||
122,711,510 | ||||||||||
|
|
|||||||||
Energy 0.1% | ||||||||||
Cabot Oil & Gas Corp., A |
51,448 | 1,119,509 | ||||||||
|
|
|||||||||
Financials 3.8% | ||||||||||
Assured Guaranty Ltd. |
2,616 | 122,455 | ||||||||
Evercore Inc. |
3,488 | 466,241 | ||||||||
FactSet Research Systems Inc. |
5,928 | 2,340,256 | ||||||||
Invesco Ltd. |
47,088 | 1,135,292 | ||||||||
Jefferies Financial Group Inc. |
18,748 | 696,113 | ||||||||
Lazard Ltd., A |
16,132 | 738,845 | ||||||||
Moody’s Corp. |
19,620 | 6,967,258 | ||||||||
New York Community Bancorp Inc. |
17,004 | 218,841 | ||||||||
Old Republic International Corp. |
10,900 | 252,117 | ||||||||
People’s United Financial Inc. |
28,776 | 502,717 | ||||||||
S&P Global Inc. |
24,284 | 10,318,029 | ||||||||
SEI Investments Co. |
15,696 | 930,773 | ||||||||
Synchrony Financial |
23,108 | 1,129,519 | ||||||||
T. Rowe Price Group Inc. |
23,544 | 4,631,105 | ||||||||
The Progressive Corp. |
52,320 | 4,729,205 | ||||||||
|
|
|||||||||
35,178,766 | ||||||||||
|
|
|||||||||
Health Care 18.1% | ||||||||||
AbbVie Inc. |
81,096 | 8,747,825 | ||||||||
Amgen Inc. |
38,804 | 8,251,671 | ||||||||
a |
Bio-Rad Laboratories Inc., A |
1,378 | 1,027,919 | |||||||
a |
Biogen Inc. |
24,416 | 6,909,484 | |||||||
Bristol-Myers Squibb Co. |
139,956 | 8,281,196 | ||||||||
Cardinal Health Inc. |
11,336 | 560,679 | ||||||||
Cerner Corp. |
43,164 | 3,043,925 | ||||||||
Chemed Corp. |
2,315 | 1,076,753 | ||||||||
CVS Health Corp. |
50,576 | 4,291,879 | ||||||||
Eli Lilly & Co. |
46,216 | 10,678,207 | ||||||||
Gilead Sciences Inc. |
139,084 | 9,715,017 | ||||||||
Humana Inc. |
10,749 | 4,182,973 | ||||||||
a |
IDEXX Laboratories Inc. |
6,724 | 4,181,656 | |||||||
a |
Jazz Pharmaceuticals PLC |
2,180 | 283,858 | |||||||
Johnson & Johnson |
54,500 | 8,801,750 | ||||||||
a |
Laboratory Corp. of America Holdings |
3,488 | 981,663 |
80 |
Semiannual Report |
franklintempleton.com |
FRANKLIN TEMPLETON ETF TRUST
STATEMENT OF INVESTMENTS (UNAUDITED)
Franklin LibertyQ U.S. Equity ETF (continued)
Shares | Value | |||||||||
Common Stocks (continued) | ||||||||||
Health Care (continued) | ||||||||||
Merck & Co. Inc. |
126,876 | $ | 9,529,656 | |||||||
a |
Mettler-Toledo International Inc. |
3,895 | 5,364,817 | |||||||
a |
Moderna Inc. |
14,179 | 5,456,930 | |||||||
Organon & Co. |
11,336 | 371,707 | ||||||||
Pfizer Inc. |
237,184 | 10,201,284 | ||||||||
Premier Inc., A |
10,464 | 405,585 | ||||||||
Quest Diagnostics Inc. |
8,720 | 1,267,103 | ||||||||
a |
Quidel Corp. |
3,052 | 430,790 | |||||||
a |
Regeneron Pharmaceuticals Inc. |
10,696 | 6,473,005 | |||||||
ResMed Inc. |
21,364 | 5,630,482 | ||||||||
Thermo Fisher Scientific Inc. |
19,621 | 11,210,066 | ||||||||
a |
United Therapeutics Corp. |
1,744 | 321,908 | |||||||
UnitedHealth Group Inc. |
22,335 | 8,727,178 | ||||||||
a |
Veeva Systems Inc. |
11,336 | 3,266,695 | |||||||
a |
Vertex Pharmaceuticals Inc. |
23,544 | 4,270,646 | |||||||
a |
Waters Corp. |
5,578 | 1,993,019 | |||||||
West Pharmaceutical Services Inc. |
6,629 | 2,814,276 | ||||||||
Zoetis Inc. |
38,368 | 7,448,764 | ||||||||
|
|
|||||||||
166,200,366 | ||||||||||
|
|
|||||||||
Industrials 14.8% | ||||||||||
3M Co. |
45,344 | 7,954,245 | ||||||||
A O Smith Corp. |
11,772 | 718,916 | ||||||||
Acuity Brands Inc. |
1,308 | 226,768 | ||||||||
Allegion PLC |
9,156 | 1,210,240 | ||||||||
Allison Transmission Holdings Inc. |
14,388 | 508,184 | ||||||||
AMERCO |
434 | 280,377 | ||||||||
BWX Technologies Inc. |
7,848 | 422,693 | ||||||||
C.H. Robinson Worldwide Inc. |
22,236 | 1,934,532 | ||||||||
Cintas Corp. |
12,208 | 4,647,097 | ||||||||
a |
Copart Inc. |
31,828 | 4,415,180 | |||||||
Cummins Inc. |
23,980 | 5,384,949 | ||||||||
Eaton Corp. PLC |
25,288 | 3,775,751 | ||||||||
Emerson Electric Co. |
90,252 | 8,501,739 | ||||||||
Expeditors International of Washington Inc. |
27,468 | 3,272,263 | ||||||||
Fastenal Co. |
99,408 | 5,130,447 | ||||||||
a |
FTI Consulting Inc. |
2,616 | 352,375 | |||||||
a |
Generac Holdings Inc. |
5,241 | 2,141,840 | |||||||
General Dynamics Corp. |
10,028 | 1,965,789 | ||||||||
Graco Inc. |
25,737 | 1,800,818 | ||||||||
Honeywell International Inc. |
39,676 | 8,422,421 | ||||||||
Hubbell Inc., B |
3,488 | 630,177 | ||||||||
Huntington Ingalls Industries Inc. |
6,104 | 1,178,438 | ||||||||
Illinois Tool Works Inc. |
39,676 | 8,198,252 | ||||||||
JB Hunt Transport Services Inc. |
13,516 | 2,260,146 | ||||||||
Landstar System Inc. |
6,104 | 963,333 | ||||||||
Lennox International Inc. |
3,924 | 1,154,323 | ||||||||
Lincoln Electric Holdings Inc. |
4,796 | 617,677 | ||||||||
Lockheed Martin Corp. |
23,980 | 8,275,498 | ||||||||
ManpowerGroup Inc. |
2,180 | 236,050 | ||||||||
MSC Industrial Direct Co. Inc., A |
6,976 | 559,406 | ||||||||
Northrop Grumman Corp. |
16,132 | 5,809,940 | ||||||||
Old Dominion Freight Line Inc. |
10,900 | 3,117,182 | ||||||||
PACCAR Inc. |
37,945 | 2,994,620 | ||||||||
Quanta Services Inc. |
5,232 | 595,506 | ||||||||
Robert Half International Inc. |
20,492 | 2,055,962 | ||||||||
Rockwell Automation Inc. |
19,184 | 5,640,863 | ||||||||
Rollins Inc. |
36,188 | 1,278,522 |
franklintempleton.com |
Semiannual Report |
81 |
FRANKLIN TEMPLETON ETF TRUST
STATEMENT OF INVESTMENTS (UNAUDITED)
Franklin LibertyQ U.S. Equity ETF (continued)
Shares | Value | |||||||||
Common Stocks (continued) | ||||||||||
Industrials (continued) | ||||||||||
Schneider National Inc., B |
4,796 | $ | 109,061 | |||||||
Snap-on Inc. |
7,412 | 1,548,737 | ||||||||
Toro Co. |
17,440 | 1,698,830 | ||||||||
Trane Technologies PLC |
15,260 | 2,634,639 | ||||||||
a |
Trex Co. Inc. |
10,028 | 1,022,154 | |||||||
Union Pacific Corp. |
40,984 | 8,033,274 | ||||||||
United Parcel Service Inc., B |
42,728 | 7,780,769 | ||||||||
W.W. Grainger Inc. |
7,440 | 2,924,366 | ||||||||
Watsco Inc. |
5,232 | 1,384,492 | ||||||||
|
|
|||||||||
135,768,841 | ||||||||||
|
|
|||||||||
Information Technology 24.9% | ||||||||||
Accenture PLC, A |
32,700 | 10,461,384 | ||||||||
a |
Adobe Inc. |
18,303 | 10,537,403 | |||||||
a |
Akamai Technologies Inc. |
13,080 | 1,368,037 | |||||||
a |
Alphabet Inc., C |
1,920 | 5,117,395 | |||||||
Amdocs Ltd. |
20,928 | 1,584,459 | ||||||||
Apple Inc. |
73,684 | 10,426,286 | ||||||||
Applied Materials Inc. |
66,708 | 8,587,321 | ||||||||
a |
Arista Networks Inc. |
4,796 | 1,648,097 | |||||||
a |
Aspen Technology Inc. |
8,720 | 1,070,816 | |||||||
Automatic Data Processing Inc. |
47,088 | 9,413,833 | ||||||||
Booz Allen Hamilton Holding Corp. |
16,132 | 1,280,074 | ||||||||
Cisco Systems Inc. |
173,964 | 9,468,860 | ||||||||
Cognizant Technology Solutions Corp., A |
71,940 | 5,338,667 | ||||||||
a |
EPAM Systems Inc. |
2,234 | 1,274,452 | |||||||
a |
F5 Networks Inc. |
9,156 | 1,820,030 | |||||||
a |
Fair Isaac Corp. |
2,285 | 909,270 | |||||||
a |
Fortinet Inc. |
11,772 | 3,437,895 | |||||||
Hewlett Packard Enterprise Co. |
49,704 | 708,282 | ||||||||
HP Inc. |
242,852 | 6,644,431 | ||||||||
Intel Corp. |
160,884 | 8,571,900 | ||||||||
International Business Machines Corp. |
64,092 | 8,904,302 | ||||||||
Intuit Inc. |
20,936 | 11,295,181 | ||||||||
Jack Henry & Associates Inc. |
11,772 | 1,931,314 | ||||||||
KLA Corp. |
24,416 | 8,167,396 | ||||||||
Lam Research Corp. |
14,193 | 8,077,946 | ||||||||
Mastercard Inc., A |
25,288 | 8,792,132 | ||||||||
Microsoft Corp. |
36,624 | 10,325,038 | ||||||||
Monolithic Power Systems |
3,809 | 1,846,146 | ||||||||
Motorola Solutions Inc. |
24,852 | 5,773,617 | ||||||||
NetApp Inc. |
36,188 | 3,248,235 | ||||||||
NVIDIA Corp. |
56,693 | 11,744,522 | ||||||||
Oracle Corp. |
116,848 | 10,180,966 | ||||||||
Paychex Inc. |
54,500 | 6,128,525 | ||||||||
QUALCOMM Inc. |
68,465 | 8,830,616 | ||||||||
Skyworks Solutions Inc. |
28,776 | 4,741,709 | ||||||||
Teradyne Inc. |
10,464 | 1,142,355 | ||||||||
Texas Instruments Inc. |
48,396 | 9,302,195 | ||||||||
a,b |
VMware Inc., A |
6,104 | 907,665 | |||||||
Xerox Holdings Corp. |
13,080 | 263,824 | ||||||||
Xilinx Inc. |
38,804 | 5,859,016 | ||||||||
a |
Zoom Video Communications Inc., A |
8,284 | 2,166,266 | |||||||
|
|
|||||||||
229,297,858 | ||||||||||
|
|
|||||||||
Materials 3.8% | ||||||||||
Air Products and Chemicals Inc. |
25,724 | 6,588,174 | ||||||||
Amcor PLC |
60,168 | 697,347 |
82 |
Semiannual Report |
franklintempleton.com |
FRANKLIN TEMPLETON ETF TRUST
STATEMENT OF INVESTMENTS (UNAUDITED)
Franklin LibertyQ U.S. Equity ETF (continued)
Shares | Value | |||||||||
Common Stocks (continued) | ||||||||||
Materials (continued) | ||||||||||
Avery Dennison Corp. |
7,412 | $ | 1,535,840 | |||||||
Celanese Corp. |
13,952 | 2,101,729 | ||||||||
Dow Inc. |
28,776 | 1,656,347 | ||||||||
Eagle Materials Inc. |
1,744 | 228,743 | ||||||||
Eastman Chemical Co. |
17,004 | 1,712,983 | ||||||||
Huntsman Corp. |
17,004 | 503,148 | ||||||||
International Paper Co. |
27,032 | 1,511,629 | ||||||||
Louisiana-Pacific Corp. |
4,360 | 267,573 | ||||||||
LyondellBasell Industries NV, A |
47,960 | 4,501,046 | ||||||||
NewMarket Corp. |
1,292 | 437,691 | ||||||||
Newmont Corp. |
65,836 | 3,574,895 | ||||||||
Nucor Corp. |
35,752 | 3,521,214 | ||||||||
Packaging Corp. of America |
13,516 | 1,857,639 | ||||||||
Reliance Steel & Aluminum Co. |
6,976 | 993,522 | ||||||||
Silgan Holdings Inc. |
3,052 | 117,075 | ||||||||
Sonoco Products Co. |
15,260 | 909,191 | ||||||||
Southern Copper Corp. |
5,668 | 318,202 | ||||||||
Steel Dynamics Inc. |
27,032 | 1,580,831 | ||||||||
Valvoline Inc. |
20,492 | 638,941 | ||||||||
|
|
|||||||||
35,253,760 | ||||||||||
|
|
|||||||||
Real Estate 2.2% | ||||||||||
Coresite Realty Corp. |
3,488 | 483,228 | ||||||||
CubeSmart |
7,412 | 359,111 | ||||||||
Extra Space Storage Inc. |
8,284 | 1,391,629 | ||||||||
Life Storage Inc. |
3,052 | 350,186 | ||||||||
National Retail Properties Inc. |
27,468 | 1,186,343 | ||||||||
Public Storage |
27,727 | 8,237,692 | ||||||||
Realty Income Corp. |
51,012 | 3,308,638 | ||||||||
SL Green Realty Corp. |
3,052 | 216,204 | ||||||||
Spirit Realty Capital Inc. |
16,568 | 762,791 | ||||||||
STORE Capital Corp. |
33,136 | 1,061,346 | ||||||||
VICI Properties Inc. |
34,444 | 978,554 | ||||||||
WP Carey Inc. |
23,980 | 1,751,499 | ||||||||
|
|
|||||||||
20,087,221 | ||||||||||
|
|
|||||||||
Utilities 4.5% | ||||||||||
Alliant Energy Corp. |
34,008 | 1,903,768 | ||||||||
Ameren Corp. |
30,084 | 2,436,804 | ||||||||
American Electric Power Co. Inc. |
47,088 | 3,822,604 | ||||||||
Atmos Energy Corp. |
17,004 | 1,499,753 | ||||||||
Consolidated Edison Inc. |
47,960 | 3,481,416 | ||||||||
Dominion Energy Inc. |
89,816 | 6,558,364 | ||||||||
Evergy Inc. |
27,904 | 1,735,629 | ||||||||
Hawaiian Electric Industries Inc. |
15,696 | 640,868 | ||||||||
National Fuel Gas Co. |
3,488 | 183,190 | ||||||||
OGE Energy Corp. |
7,412 | 244,299 | ||||||||
Public Service Enterprise Group Inc. |
76,300 | 4,646,670 | ||||||||
The Southern Co. |
129,056 | 7,997,600 | ||||||||
UGI Corp. |
8,284 | 353,064 | ||||||||
WEC Energy Group Inc. |
25,724 | 2,268,857 | ||||||||
Xcel Energy Inc. |
50,576 | 3,161,000 | ||||||||
|
|
|||||||||
40,933,886 | ||||||||||
|
|
|||||||||
Total
Investments before Short Term |
918,564,020 | |||||||||
|
|
franklintempleton.com |
Semiannual Report |
83 |
FRANKLIN TEMPLETON ETF TRUST
STATEMENT OF INVESTMENTS (UNAUDITED)
Franklin LibertyQ U.S. Equity ETF (continued)
Shares | Value | |||||||||
Short Term Investments 0.1% | ||||||||||
Investments
from Cash Collateral Received for Loaned |
||||||||||
Money Market Funds 0.1% | ||||||||||
c,d |
Institutional Fiduciary Trust Portfolio, 0.01% |
881,025 | $ | 881,025 | ||||||
|
|
|||||||||
Total Short Term Investments (Cost $881,025) |
881,025 | |||||||||
|
|
|||||||||
Total Investments (Cost $816,185,108) 100.0% |
919,445,045 | |||||||||
Other Assets, less Liabilities 0.0%† |
391,790 | |||||||||
|
|
|||||||||
Net Assets 100.0% |
$ | 919,836,835 | ||||||||
|
|
aNon-income producing.
bA portion or all of the security is on loan at September 30, 2021 Note 1(d).
cThe rate shown is the annualized seven-day effective yield at period end.
dSee Note 3(c) regarding investments in affiliated management investment companies.
†Rounds to less than 0.1% of net assets.
At September 30, 2021, the Fund had the following futures contracts outstanding. See Note 1(c).
Futures Contracts | ||||||||||||||||||||
Description | Type | Number of Contracts |
Notional Amount* |
Expiration Date |
Value/Unrealized Appreciation (Depreciation) |
|||||||||||||||
Index Contracts | ||||||||||||||||||||
S&P 500 E-Mini |
Long | 6 | $ | 1,289,325 | 12/17/21 | $ | (48,881 | ) |
*As of period end.
See note 8 regarding other derivative information.
84 |
Semiannual Report | The accompanying notes are an integral part of these financial statements. |
franklintempleton.com |
FRANKLIN TEMPLETON ETF TRUST
Financial Highlights
Franklin LibertyQ U.S. Mid Cap Equity ETF
Six Months Ended September 30, 2021 (unaudited) |
Year Ended March 31, | |||||||||||||||||||
2021 | 2020 | 2019 | 2018a | |||||||||||||||||
Per share operating performance (for a share outstanding throughout the period) |
||||||||||||||||||||
Net asset value, beginning of period |
$ | 40.84 | $ | 24.94 | $ | 30.32 | $ | 27.70 | $ | 25.51 | ||||||||||
|
|
|||||||||||||||||||
Income from investment operationsb: |
| |||||||||||||||||||
Net investment incomec |
0.27 | 0.45 | 0.50 | 0.47 | 0.38 | |||||||||||||||
Net realized and unrealized gains (losses) |
2.88 | 15.86 | (5.41 | ) | 2.53 | 2.18 | ||||||||||||||
|
|
|||||||||||||||||||
Total from investment operations |
3.15 | 16.31 | (4.91 | ) | 3.00 | 2.56 | ||||||||||||||
|
|
|||||||||||||||||||
Less distributions from net investment income |
(0.22 | ) | (0.41 | ) | (0.47 | ) | (0.38 | ) | (0.37 | ) | ||||||||||
|
|
|||||||||||||||||||
Net asset value, end of period |
$ | 43.77 | $ | 40.84 | $ | 24.94 | $ | 30.32 | $ | 27.70 | ||||||||||
|
|
|||||||||||||||||||
Total returnd |
7.70% | 65.69% | (16.50)% | 10.92% | 10.09% | |||||||||||||||
Ratios to average net assetse |
| |||||||||||||||||||
Expenses before waiver and payments by affiliates |
0.30% | 0.30% | 0.30% | 0.30% | 0.99% | f | ||||||||||||||
Expenses net of waiver and payments by affiliates |
0.30% | 0.30% | 0.30% | 0.30% | 0.30% | f | ||||||||||||||
Net investment income |
1.21% | 1.30% | 1.60% | 1.65% | 1.58% | |||||||||||||||
Supplemental data |
| |||||||||||||||||||
Net assets, end of period (000’s) |
$52,521 | $36,759 | $13,718 | $10,612 | $2,770 | |||||||||||||||
Portfolio turnover rateg |
13.13% | h | 25.02% | h | 24.20% | h | 23.49% | 36.21% |
aFor the period April 26, 2017 (commencement of operations) to March 31, 2018.
bThe amount shown for a share outstanding throughout the period may not correlate with the Statement of Operations for the period due to the timing of sales and repurchases of Creation Unit Fund shares in relation to income earned and/or fluctuating fair value of the investments of the Fund.
cBased on average daily shares outstanding.
dTotal return is not annualized for periods less than one year. Total return is calculated assuming an initial investment made at the net asset value at the beginning of the period, reinvestment of all dividends and distributions at net asset value during the period, and redemption at net asset value on the last day of the period.
eRatios are annualized for periods less than one year.
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: | 13.13% | 25.02% | 24.20% |
franklintempleton.com |
The accompanying notes are an integral part of these financial statements. | Semiannual Report |
85 |
FRANKLIN TEMPLETON ETF TRUST
Statement of Investments, September 30, 2021 (unaudited)
Franklin LibertyQ U.S. Mid Cap Equity ETF
Shares | Value | |||||||||
Common Stocks 99.8% | ||||||||||
Communication Services 3.0% | ||||||||||
Lumen Technologies Inc. |
21,408 | $ | 265,245 | |||||||
a |
Match Group Inc. |
3,672 | 576,467 | |||||||
Omnicom Group Inc. |
5,040 | 365,198 | ||||||||
a |
Playtika Holding Corp. |
768 | 21,220 | |||||||
ViacomCBS Inc., A |
119 | 5,006 | ||||||||
ViacomCBS Inc., B |
8,160 | 322,402 | ||||||||
World Wrestling Entertainment Inc., A |
864 | 48,609 | ||||||||
|
|
|||||||||
1,604,147 | ||||||||||
|
|
|||||||||
Consumer Discretionary 14.8% | ||||||||||
Advance Auto Parts Inc. |
744 | 155,414 | ||||||||
a |
AutoNation Inc. |
480 | 58,445 | |||||||
a |
AutoZone Inc. |
373 | 633,350 | |||||||
Bath & Body Works Inc. |
5,016 | 316,158 | ||||||||
Best Buy Co. Inc. |
4,512 | 476,964 | ||||||||
Brunswick Corp. |
720 | 68,594 | ||||||||
Carter’s Inc. |
1,056 | 102,685 | ||||||||
Columbia Sportswear Co. |
600 | 57,504 | ||||||||
Dick’s Sporting Goods Inc. |
1,584 | 189,716 | ||||||||
a |
Dollar Tree Inc. |
2,207 | 211,254 | |||||||
a |
Etsy Inc. |
1,200 | 249,552 | |||||||
Foot Locker Inc. |
2,400 | 109,584 | ||||||||
Garmin Ltd. |
3,216 | 499,959 | ||||||||
Gentex Corp. |
4,704 | 155,138 | ||||||||
Genuine Parts Co. |
3,072 | 372,419 | ||||||||
H&R Block Inc. |
4,608 | 115,200 | ||||||||
Hanesbrands Inc. |
8,304 | 142,497 | ||||||||
Hasbro Inc. |
2,544 | 226,976 | ||||||||
a |
Leslie’s Inc. |
1,344 | 27,606 | |||||||
a |
LKQ Corp. |
2,928 | 147,337 | |||||||
a |
Mattel Inc. |
3,408 | 63,252 | |||||||
Newell Brands Inc. |
3,864 | 85,549 | ||||||||
a |
O’Reilly Automotive Inc. |
981 | 599,450 | |||||||
a |
Ollie’s Bargain Outlet Holdings Inc. |
1,176 | 70,889 | |||||||
Penske Automotive Group Inc. |
768 | 77,261 | ||||||||
Polaris Inc. |
696 | 83,283 | ||||||||
Pool Corp. |
1,193 | 518,251 | ||||||||
Qurate Retail Inc., A |
5,904 | 60,162 | ||||||||
a |
RH |
162 | 108,039 | |||||||
Tapestry Inc. |
6,480 | 239,890 | ||||||||
Tempur Sealy International Inc. |
4,272 | 198,264 | ||||||||
Tractor Supply Co. |
2,903 | 588,177 | ||||||||
a,b |
Victoria’s Secret & Co. |
1,680 | 92,837 | |||||||
Whirlpool Corp. |
1,272 | 259,310 | ||||||||
Williams-Sonoma Inc. |
2,040 | 361,753 | ||||||||
a |
YETI Holdings Inc. |
864 | 74,036 | |||||||
|
|
|||||||||
7,796,755 | ||||||||||
|
|
|||||||||
Consumer Staples 7.1% | ||||||||||
b |
Albertsons Cos Inc. |
2,304 | 71,724 | |||||||
a |
Boston Beer Inc., A |
170 | 86,658 | |||||||
Brown-Forman Corp., A |
984 | 61,667 | ||||||||
Brown-Forman Corp., B |
3,888 | 260,535 | ||||||||
Bunge Ltd. |
1,464 | 119,053 | ||||||||
Campbell Soup Co. |
4,056 | 169,581 | ||||||||
Casey’s General Stores Inc. |
360 | 67,842 | ||||||||
Church & Dwight Co. Inc. |
5,447 | 449,759 | ||||||||
Clorox Co. |
2,712 | 449,134 |
86 |
Semiannual Report |
franklintempleton.com |
FRANKLIN TEMPLETON ETF TRUST
STATEMENT OF INVESTMENTS (UNAUDITED)
Franklin LibertyQ U.S. Mid Cap Equity ETF (continued)
Shares | Value | |||||||||
Common Stocks (continued) | ||||||||||
Consumer Staples (continued) | ||||||||||
Flowers Foods Inc. |
5,424 | $ | 128,169 | |||||||
a |
Herbalife Ltd. |
2,208 | 93,575 | |||||||
Kellogg Co. |
5,687 | 363,513 | ||||||||
Reynolds Consumer Products Inc. |
744 | 20,341 | ||||||||
The Hershey Co. |
3,047 | 515,705 | ||||||||
The J.M. Smucker Co. |
2,280 | 273,668 | ||||||||
The Kroger Co. |
14,208 | 574,429 | ||||||||
|
|
|||||||||
3,705,353 | ||||||||||
|
|
|||||||||
Energy 0.2% | ||||||||||
Antero Midstream Corp. |
3,312 | 34,511 | ||||||||
Texas Pacific Land Corp. |
55 | 66,515 | ||||||||
|
|
|||||||||
101,026 | ||||||||||
|
|
|||||||||
Financials 10.4% | ||||||||||
Affiliated Managers Group Inc. |
936 | 141,420 | ||||||||
Ally Financial Inc. |
7,608 | 388,388 | ||||||||
Brown & Brown Inc. |
5,352 | 296,768 | ||||||||
Cincinnati Financial Corp. |
3,984 | 455,052 | ||||||||
CNA Financial Corp. |
624 | 26,183 | ||||||||
a,b |
Credit Acceptance Corp. |
242 | 141,643 | |||||||
Discover Financial Services |
4,488 | 551,351 | ||||||||
Erie Indemnity Co., A |
480 | 85,642 | ||||||||
Evercore Inc. |
888 | 118,699 | ||||||||
FactSet Research Systems Inc. |
864 | 341,090 | ||||||||
First American Financial Corp. |
2,232 | 149,656 | ||||||||
Globe Life Inc. |
2,112 | 188,031 | ||||||||
Hanover Insurance Group Inc. |
408 | 52,885 | ||||||||
Janus Henderson Group PLC |
1,704 | 70,426 | ||||||||
MarketAxess Holdings Inc. |
743 | 312,573 | ||||||||
Mercury General Corp. |
600 | 33,402 | ||||||||
MSCI Inc. |
1,122 | 682,557 | ||||||||
Nasdaq Inc. |
2,568 | 495,675 | ||||||||
PacWest Bancorp |
2,136 | 96,804 | ||||||||
Prosperity Bancshares Inc. |
1,800 | 128,034 | ||||||||
SEI Investments Co. |
3,096 | 183,593 | ||||||||
Synchrony Financial |
11,087 | 541,933 | ||||||||
|
|
|||||||||
5,481,805 | ||||||||||
|
|
|||||||||
Health Care 11.2% | ||||||||||
a |
ABIOMED Inc. |
792 | 257,812 | |||||||
a |
Acadia Healthcare Co. Inc. |
1,992 | 127,050 | |||||||
a |
Amedisys Inc. |
624 | 93,038 | |||||||
Bio-Techne Corp. |
643 | 311,578 | ||||||||
Cardinal Health Inc. |
4,896 | 242,156 | ||||||||
Cerner Corp. |
6,240 | 440,045 | ||||||||
b |
Chemed Corp. |
288 | 133,955 | |||||||
Encompass Health Corp. |
2,520 | 189,101 | ||||||||
a |
Hologic Inc. |
2,376 | 175,373 | |||||||
a |
IDEXX Laboratories Inc. |
942 | 585,830 | |||||||
a |
Incyte Corp. |
1,872 | 128,756 | |||||||
a |
Jazz Pharmaceuticals PLC |
576 | 75,001 | |||||||
a |
Masimo Corp. |
1,056 | 285,870 | |||||||
a |
Mettler-Toledo International Inc. |
403 | 555,076 | |||||||
a |
Molina Healthcare Inc. |
1,200 | 325,572 | |||||||
a |
Neurocrine Biosciences Inc. |
912 | 87,470 | |||||||
a |
Quidel Corp. |
720 | 101,628 | |||||||
ResMed Inc. |
2,448 | 645,170 |
franklintempleton.com |
Semiannual Report |
87 |
FRANKLIN TEMPLETON ETF TRUST
STATEMENT OF INVESTMENTS (UNAUDITED)
Franklin LibertyQ U.S. Mid Cap Equity ETF (continued)
Shares | Value | |||||||||
Common Stocks (continued) | ||||||||||
Health Care (continued) | ||||||||||
Royalty Pharma PLC |
3,912 | $ | 141,380 | |||||||
a |
United Therapeutics Corp. |
768 | 141,757 | |||||||
Universal Health Services Inc., B |
1,800 | 249,066 | ||||||||
a |
Waters Corp. |
1,608 | 574,538 | |||||||
|
|
|||||||||
5,867,222 | ||||||||||
|
|
|||||||||
Industrials 20.6% | ||||||||||
A O Smith Corp. |
1,944 | 118,720 | ||||||||
Allegion PLC |
2,232 | 295,026 | ||||||||
Allison Transmission Holdings Inc. |
2,400 | 84,768 | ||||||||
BWX Technologies Inc. |
1,920 | 103,411 | ||||||||
C.H. Robinson Worldwide Inc. |
3,144 | 273,528 | ||||||||
Carrier Global Corp. |
11,447 | 592,497 | ||||||||
Cintas Corp. |
1,488 | 566,422 | ||||||||
Cummins Inc. |
2,040 | 458,102 | ||||||||
Curtiss-Wright Corp. |
711 | 89,714 | ||||||||
Donaldson Co. Inc. |
2,856 | 163,963 | ||||||||
Dover Corp. |
2,928 | 455,304 | ||||||||
Expeditors International of Washington Inc. |
4,152 | 494,628 | ||||||||
Fastenal Co. |
9,911 | 511,507 | ||||||||
Fortune Brands Home & Security Inc. |
1,320 | 118,034 | ||||||||
Graco Inc. |
4,200 | 293,874 | ||||||||
Hubbell Inc., B |
1,056 | 190,787 | ||||||||
IHS Markit Ltd. |
3,552 | 414,234 | ||||||||
Landstar System Inc. |
840 | 132,569 | ||||||||
Lennox International Inc. |
768 | 225,923 | ||||||||
Lincoln Electric Holdings Inc. |
1,272 | 163,821 | ||||||||
ManpowerGroup Inc. |
1,272 | 137,732 | ||||||||
MSA Safety Inc. |
672 | 97,910 | ||||||||
MSC Industrial Direct Co. Inc., A |
1,128 | 90,454 | ||||||||
Nordson Corp. |
1,224 | 291,496 | ||||||||
Old Dominion Freight Line Inc. |
1,991 | 569,386 | ||||||||
Otis Worldwide Corp. |
6,719 | 552,839 | ||||||||
Robert Half International Inc. |
3,024 | 303,398 | ||||||||
Rockwell Automation Inc. |
1,992 | 585,728 | ||||||||
Rollins Inc. |
6,120 | 216,220 | ||||||||
Ryder System Inc. |
504 | 41,686 | ||||||||
Schneider National Inc., B |
1,320 | 30,017 | ||||||||
Snap-on Inc. |
1,320 | 275,814 | ||||||||
Toro Co. |
2,400 | 233,784 | ||||||||
Trane Technologies PLC |
2,831 | 488,772 | ||||||||
W.W. Grainger Inc. |
1,116 | 438,655 | ||||||||
Watsco Inc. |
912 | 241,333 | ||||||||
Xylem Inc. |
3,792 | 468,995 | ||||||||
|
|
|||||||||
10,811,051 | ||||||||||
|
|
|||||||||
Information Technology 18.3% | ||||||||||
a |
Akamai Technologies Inc. |
1,704 | 178,221 | |||||||
Amdocs Ltd. |
2,808 | 212,594 | ||||||||
a |
Arista Networks Inc. |
1,200 | 412,368 | |||||||
a |
Aspen Technology Inc. |
1,560 | 191,568 | |||||||
b |
Bentley Systems Inc., B |
1,320 | 80,045 | |||||||
Booz Allen Hamilton Holding Corp. |
4,008 | 318,035 | ||||||||
CDW Corp. |
3,168 | 576,639 | ||||||||
Citrix Systems Inc. |
3,095 | 332,310 | ||||||||
Dolby Laboratories Inc., A |
960 | 84,480 | ||||||||
a |
F5 Networks Inc. |
1,536 | 305,326 | |||||||
a |
Fair Isaac Corp. |
672 | 267,409 |
88 |
Semiannual Report |
franklintempleton.com |
FRANKLIN TEMPLETON ETF TRUST
STATEMENT OF INVESTMENTS (UNAUDITED)
Franklin LibertyQ U.S. Mid Cap Equity ETF (continued)
Shares | Value | |||||||||
Common Stocks (continued) | ||||||||||
Information Technology (continued) | ||||||||||
a |
Fortinet Inc. |
2,400 | $ | 700,896 | ||||||
Hewlett Packard Enterprise Co. |
13,224 | 188,442 | ||||||||
HP Inc. |
17,998 | 492,425 | ||||||||
Juniper Networks Inc. |
6,792 | 186,916 | ||||||||
a |
Manhattan Associates Inc. |
1,440 | 220,363 | |||||||
Monolithic Power Systems |
864 | 418,764 | ||||||||
Motorola Solutions Inc. |
1,608 | 373,571 | ||||||||
National Instruments Corp. |
2,976 | 116,748 | ||||||||
NetApp Inc. |
6,240 | 560,102 | ||||||||
NortonLifeLock Inc. |
5,136 | 129,941 | ||||||||
Paychex Inc. |
5,184 | 582,941 | ||||||||
a |
Paycom Software Inc. |
850 | 421,387 | |||||||
a |
Synopsys Inc. |
2,064 | 617,982 | |||||||
Teradyne Inc. |
2,448 | 267,248 | ||||||||
Ubiquiti Inc. |
168 | 50,177 | ||||||||
a |
VeriSign Inc. |
2,016 | 413,300 | |||||||
Vontier Corp. |
2,470 | 82,992 | ||||||||
Western Union Co. |
9,696 | 196,053 | ||||||||
Xerox Holdings Corp. |
1,416 | 28,561 | ||||||||
Xilinx Inc. |
3,912 | 590,673 | ||||||||
|
|
|||||||||
9,598,477 | ||||||||||
|
|
|||||||||
Materials 2.9% | ||||||||||
AptarGroup Inc. |
936 | 111,712 | ||||||||
Ardagh Group SA |
168 | 4,282 | ||||||||
Avery Dennison Corp. |
2,040 | 422,708 | ||||||||
b |
Element Solutions Inc. |
2,400 | 52,032 | |||||||
International Paper Co. |
3,767 | 210,651 | ||||||||
Louisiana-Pacific Corp. |
1,176 | 72,171 | ||||||||
NewMarket Corp. |
132 | 44,718 | ||||||||
Reliance Steel & Aluminum Co. |
1,224 | 174,322 | ||||||||
RPM International Inc. |
2,688 | 208,723 | ||||||||
Sonoco Products Co. |
2,015 | 120,054 | ||||||||
The Scotts Miracle-Gro Co., A |
840 | 122,942 | ||||||||
|
|
|||||||||
1,544,315 | ||||||||||
|
|
|||||||||
Real Estate 7.0% | ||||||||||
AvalonBay Communities Inc. |
2,544 | 563,852 | ||||||||
Camden Property Trust |
1,896 | 279,603 | ||||||||
Coresite Realty Corp. |
960 | 132,998 | ||||||||
CubeSmart |
3,816 | 184,885 | ||||||||
Duke Realty Corp. |
6,504 | 311,346 | ||||||||
Extra Space Storage Inc. |
1,440 | 241,906 | ||||||||
First Industrial Realty Trust Inc. |
2,208 | 114,993 | ||||||||
Healthcare Trust of America Inc., A |
2,016 | 59,795 | ||||||||
Highwoods Properties Inc. |
2,207 | 96,799 | ||||||||
a |
Host Hotels & Resorts Inc. |
16,944 | 276,696 | |||||||
Kimco Realty Corp. |
3,888 | 80,676 | ||||||||
Life Storage Inc. |
816 | 93,628 | ||||||||
National Retail Properties Inc. |
4,200 | 181,398 | ||||||||
Realty Income Corp. |
7,320 | 474,775 | ||||||||
STORE Capital Corp. |
4,176 | 133,757 | ||||||||
Ventas Inc. |
7,727 | 426,608 | ||||||||
|
|
|||||||||
3,653,715 | ||||||||||
|
|
|||||||||
Utilities 4.3% | ||||||||||
Ameren Corp. |
5,232 | 423,792 | ||||||||
American Water Works Co. Inc. |
3,192 | 539,575 |
franklintempleton.com |
Semiannual Report |
89 |
FRANKLIN TEMPLETON ETF TRUST
STATEMENT OF INVESTMENTS (UNAUDITED)
Franklin LibertyQ U.S. Mid Cap Equity ETF (continued)
Shares | Value | |||||||||
Common Stocks (continued) | ||||||||||
Utilities (continued) | ||||||||||
Consolidated Edison Inc. |
6,648 | $ | 482,578 | |||||||
FirstEnergy Corp. |
8,016 | 285,530 | ||||||||
National Fuel Gas Co. |
840 | 44,117 | ||||||||
PPL Corp. |
16,536 | 461,024 | ||||||||
|
|
|||||||||
2,236,616 | ||||||||||
|
|
|||||||||
Total
Investments before Short Term |
52,400,482 | |||||||||
|
|
|||||||||
Short Term Investments (Cost $295,905) 0.5% | ||||||||||
Investments
from Cash Collateral Received for Loaned |
||||||||||
Money Market Funds 0.5% | ||||||||||
c,d |
Institutional Fiduciary Trust Portfolio, 0.01% |
295,905 | 295,905 | |||||||
|
|
|||||||||
Total Investments (Cost $44,136,415) 100.3% |
52,696,387 | |||||||||
Other Assets, less Liabilities (0.3)% |
(175,564 | ) | ||||||||
|
|
|||||||||
Net Assets 100.0% |
$ | 52,520,823 | ||||||||
|
|
aNon-income producing.
bA portion or all of the security is on loan at September 30, 2021.
cSee Note 3(c) regarding investments in affiliated management investment companies.
dThe rate shown is the annualized seven-day effective yield at period end.
90 |
Semiannual Report | The accompanying notes are an integral part of these financial statements. |
franklintempleton.com |
FRANKLIN TEMPLETON ETF TRUST
Financial Highlights
Franklin LibertyQ U.S. Small Cap Equity ETF
Six Months Ended September 30, 2021 (unaudited) |
Year Ended March 31, | |||||||||||||||||||
2021 | 2020 | 2019 | 2018a | |||||||||||||||||
Per share operating performance (for a share outstanding throughout the period) |
||||||||||||||||||||
Net asset value, beginning of period |
$ | 36.53 | $ | 20.48 | $ | 27.66 | $ | 26.66 | $ | 25.36 | ||||||||||
|
|
|||||||||||||||||||
Income from investment operationsb: | ||||||||||||||||||||
Net investment incomec |
0.19 | 0.28 | 0.39 | 0.47 | 0.33 | |||||||||||||||
Net realized and unrealized gains (losses) |
1.12 | 16.15 | (7.15 | ) | 0.87 | 1.27 | ||||||||||||||
|
|
|||||||||||||||||||
Total from investment operations |
1.31 | 16.43 | (6.76 | ) | 1.34 | 1.60 | ||||||||||||||
|
|
|||||||||||||||||||
Less distributions from net investment income |
(0.13 | ) | (0.38 | ) | (0.42 | ) | (0.34 | ) | (0.30 | ) | ||||||||||
|
|
|||||||||||||||||||
Net asset value, end of period |
$ | 37.71 | $ | 36.53 | $ | 20.48 | $ | 27.66 | $ | 26.66 | ||||||||||
|
|
|||||||||||||||||||
Total returnd |
3.58% | 80.74% | (24.83)% | 5.05% | 6.34% | |||||||||||||||
Ratios to average net assetse | ||||||||||||||||||||
Expenses before waiver and payments by affiliates |
0.35% | 0.35% | 0.35% | 0.35% | 1.15% | f | ||||||||||||||
Expenses net of waiver and payments by affiliates |
0.35% | 0.35% | 0.35% | 0.35% | 0.35% | f | ||||||||||||||
Net investment income |
1.00% | 0.99% | 1.41% | 1.69% | 1.40% | |||||||||||||||
Supplemental data | ||||||||||||||||||||
Net assets, end of period (000’s) |
$18,854 | $14,613 | $13,310 | $17,979 | $2,666 | |||||||||||||||
Portfolio turnover rateg |
16.85% | h | 34.77% | h | 23.83% | h | 22.17% | 23.99% |
aFor the period April 26, 2017 (commencement of operations) to March 31, 2018.
bThe amount shown for a share outstanding throughout the period may not correlate with the Statement of Operations for the period due to the timing of sales and repurchases of Creation Unit Fund shares in relation to income earned and/or fluctuating fair value of the investments of the Fund.
cBased on average daily shares outstanding.
dTotal return is not annualized for periods less than one year. Total return is calculated assuming an initial investment made at the net asset value at the beginning of the period, reinvestment of all dividends and distributions at net asset value during the period, and redemption at net asset value on the last day of the period.
eRatios are annualized for periods less than one year.
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: | 16.85% | 34.77% | 23.83% |
franklintempleton.com |
The accompanying notes are an integral part of these financial statements. | Semiannual Report |
91 |
FRANKLIN TEMPLETON ETF TRUST
Statement of Investments, September 30, 2021 (unaudited)
Franklin LibertyQ U.S. Small Cap Equity ETF
Shares | Value | |||||||||
Common Stocks 99.9% | ||||||||||
Communication Services 3.8% | ||||||||||
a,b |
AMC Networks Inc., A |
760 | $ | 35,408 | ||||||
a |
CarGurus Inc. |
2,290 | 71,929 | |||||||
Cogent Communications Holdings Inc. |
1,150 | 81,466 | ||||||||
Entravision Communications Corp., A |
1,140 | 8,094 | ||||||||
a |
EverQuote Inc., A |
220 | 4,099 | |||||||
a |
Gannett Co. Inc. |
1,860 | 12,425 | |||||||
a |
IDT Corp., B |
400 | 16,780 | |||||||
John Wiley & Sons Inc., A |
600 | 31,326 | ||||||||
a,b |
Liberty Latin America Ltd. |
3,600 | 47,232 | |||||||
a |
Liberty Latin America Ltd., A |
1,090 | 14,257 | |||||||
a |
Media Alpha Inc. |
320 | 5,978 | |||||||
a |
Meredith Corp. |
1,080 | 60,156 | |||||||
Scholastic Corp. |
730 | 26,024 | ||||||||
a |
TechTarget Inc. |
580 | 47,804 | |||||||
TEGNA Inc. |
5,220 | 102,938 | ||||||||
Telephone and Data Systems Inc. |
1,370 | 26,715 | ||||||||
a |
Thryv Holdings Inc. |
80 | 2,403 | |||||||
a |
TrueCar Inc. |
2,980 | 12,397 | |||||||
a |
United States Cellular Corp. |
200 | 6,378 | |||||||
a |
WideOpenWest Inc. |
1,360 | 26,724 | |||||||
a |
Yelp Inc. |
2,010 | 74,852 | |||||||
|
|
|||||||||
715,385 | ||||||||||
|
|
|||||||||
Consumer Discretionary 23.1% | ||||||||||
a |
1-800-FLOWERS.Com Inc. |
800 | 24,408 | |||||||
a |
Abercrombie & Fitch Co., A |
1,960 | 73,755 | |||||||
a |
Academy Sports & Outdoors Inc. |
730 | 29,215 | |||||||
Acushnet Holdings Corp. |
1,010 | 47,167 | ||||||||
a |
America’s Car-Mart Inc. |
180 | 21,020 | |||||||
American Eagle Outfitters Inc. |
4,100 | 105,780 | ||||||||
a |
American Public Education Inc. |
460 | 11,781 | |||||||
a |
Asbury Automotive Group Inc. |
570 | 112,142 | |||||||
Bassett Furniture Industries Inc. |
120 | 2,173 | ||||||||
b |
Big 5 Sporting Goods Corp. |
300 | 6,912 | |||||||
Big Lots Inc. |
1,330 | 57,669 | ||||||||
a |
Bloomin’ Brands Inc. |
2,520 | 63,000 | |||||||
Buckle Inc. |
960 | 38,006 | ||||||||
a |
Carparts.com Inc. |
740 | 11,551 | |||||||
a |
Citi Trends Inc. |
320 | 23,347 | |||||||
Cracker Barrel Old Country Store Inc. |
740 | 103,482 | ||||||||
a |
Crocs Inc. |
1,800 | 258,264 | |||||||
Del Taco Restaurants Inc. |
770 | 6,722 | ||||||||
b |
Dillard’s Inc., A |
200 | 34,504 | |||||||
a |
Dorman Products Inc. |
650 | 61,536 | |||||||
a |
Duluth Holdings Inc. |
341 | 4,648 | |||||||
Escalade Inc. |
300 | 5,673 | ||||||||
Ethan Allen Interiors Inc. |
790 | 18,723 | ||||||||
a |
Fiesta Restaurant Group Inc. |
520 | 5,699 | |||||||
Franchise Group Inc. |
320 | 11,331 | ||||||||
a |
Funko Inc., A |
330 | 6,009 | |||||||
a |
Genesco Inc. |
390 | 22,515 | |||||||
a |
Green Brick Partners Inc. |
480 | 9,850 | |||||||
Group 1 Automotive Inc. |
460 | 86,425 | ||||||||
Hamilton Beach Brands Holding Co., A |
209 | 3,275 | ||||||||
Haverty Furniture Cos. Inc. |
590 | 19,889 | ||||||||
a |
Helen of Troy Ltd. |
630 | 141,548 | |||||||
Hibbett Sports Inc. |
470 | 33,248 | ||||||||
Hooker Furniture Corp. |
297 | 8,016 |
92 |
Semiannual Report |
franklintempleton.com |
FRANKLIN TEMPLETON ETF TRUST
STATEMENT OF INVESTMENTS (UNAUDITED)
Franklin LibertyQ U.S. Small Cap Equity ETF (continued)
Shares | Value | |||||||||
Common Stocks (continued) | ||||||||||
Consumer Discretionary (continued) | ||||||||||
Installed Building Products Inc. |
500 | $ | 53,575 | |||||||
a,b |
iRobot Corp. |
720 | 56,520 | |||||||
b |
JOANN Inc. |
160 | 1,782 | |||||||
Johnson Outdoors Inc., A |
154 | 16,293 | ||||||||
a,b |
Kirkland’s Inc. |
160 | 3,074 | |||||||
Kontoor Brands Inc. |
1,510 | 75,424 | ||||||||
La-Z-Boy Inc. |
1,250 | 40,288 | ||||||||
a |
Lazydays Holdings Inc. |
90 | 1,921 | |||||||
LCI Industries |
610 | 82,124 | ||||||||
a |
LGI Homes Inc. |
520 | 73,793 | |||||||
Lifetime Brands Inc. |
363 | 6,603 | ||||||||
a |
Liquidity Services Inc. |
540 | 11,669 | |||||||
a |
Lumber Liquidators Holdings Inc. |
530 | 9,900 | |||||||
Macy’s Inc. |
6,670 | 150,742 | ||||||||
a |
Malibu Boats Inc., A |
410 | 28,692 | |||||||
Marine Products Corp. |
231 | 2,890 | ||||||||
a |
MarineMax Inc. |
440 | 21,349 | |||||||
Monro Inc. |
810 | 46,583 | ||||||||
Movado Group Inc. |
510 | 16,060 | ||||||||
Murphy USA Inc. |
650 | 108,719 | ||||||||
Nathan’s Famous Inc. |
30 | 1,835 | ||||||||
a |
National Vision Holdings Inc. |
1,820 | 103,321 | |||||||
a,b |
Nautilus Inc. |
640 | 5,958 | |||||||
OneWater Marine Inc., A |
230 | 9,248 | ||||||||
Oxford Industries Inc. |
510 | 45,987 | ||||||||
Papa John’s International Inc. |
750 | 95,242 | ||||||||
a |
Perdoceo Education Corp. |
1,930 | 20,381 | |||||||
b |
PetMed Express Inc. |
570 | 15,316 | |||||||
a,b |
Purple Innovation Inc. |
580 | 12,192 | |||||||
Rent-A-Center Inc. |
1,920 | 107,923 | ||||||||
a |
Revolve Group Inc. |
470 | 29,032 | |||||||
Rocky Brands Inc. |
198 | 9,427 | ||||||||
a |
Sally Beauty Holdings Inc. |
3,280 | 55,268 | |||||||
Shoe Carnival Inc. |
550 | 17,831 | ||||||||
Shutterstock Inc. |
660 | 74,791 | ||||||||
Signet Jewelers Ltd. |
1,390 | 109,754 | ||||||||
a |
Sleep Number Corp. |
720 | 67,306 | |||||||
Smith & Wesson Brands Inc. |
1,020 | 21,175 | ||||||||
Sonic Automotive Inc. |
690 | 36,253 | ||||||||
a |
Sonos Inc. |
2,550 | 82,518 | |||||||
a |
Sportsman’s Warehouse Holdings Inc. |
1,440 | 25,344 | |||||||
a |
Stamps.com Inc. |
450 | 148,405 | |||||||
Standard Motor Products Inc. |
610 | 26,663 | ||||||||
Steven Madden Ltd. |
2,170 | 87,147 | ||||||||
a |
Stitch Fix Inc., A |
1,690 | 67,515 | |||||||
Strategic Education Inc. |
622 | 43,851 | ||||||||
a |
Stride Inc. |
980 | 35,221 | |||||||
Sturm Ruger & Co. Inc. |
490 | 36,152 | ||||||||
Superior Group of Cos. Inc. |
319 | 7,430 | ||||||||
Texas Roadhouse Inc., A |
1,910 | 174,440 | ||||||||
a |
The Cheesecake Factory Inc. |
1,370 | 64,390 | |||||||
a |
The Container Store Group Inc. |
760 | 7,235 | |||||||
a |
The Lovesac Co. |
250 | 16,523 | |||||||
a |
The ODP Corp. |
1,370 | 55,019 | |||||||
Tilly’s Inc., A |
630 | 8,826 | ||||||||
a |
Tupperware Brands Corp. |
1,580 | 33,370 | |||||||
a |
Turtle Beach Corp. |
300 | 8,346 |
franklintempleton.com |
Semiannual Report |
93 |
FRANKLIN TEMPLETON ETF TRUST
STATEMENT OF INVESTMENTS (UNAUDITED)
Franklin LibertyQ U.S. Small Cap Equity ETF (continued)
Shares | Value | |||||||||
Common Stocks (continued) | ||||||||||
Consumer Discretionary (continued) | ||||||||||
a |
Vera Bradley Inc. |
660 | $ | 6,211 | ||||||
a |
Vista Outdoor Inc. |
1,150 | 46,357 | |||||||
Wingstop Inc. |
780 | 127,865 | ||||||||
Winmark Corp. |
88 | 18,923 | ||||||||
Wolverine World Wide Inc. |
2,040 | 60,874 | ||||||||
a |
XPEL Inc. |
430 | 32,620 | |||||||
a |
Zumiez Inc. |
520 | 20,675 | |||||||
|
|
|||||||||
4,357,444 | ||||||||||
|
|
|||||||||
Consumer Staples 5.7% | ||||||||||
b |
B&G Foods Inc., A |
1,570 | 46,927 | |||||||
a |
BellRing Brands Inc., A |
836 | 25,707 | |||||||
a |
BJ’s Wholesale Club Holdings Inc. |
1,630 | 89,520 | |||||||
a |
Celsius Holdings Inc. |
750 | 67,567 | |||||||
a |
Central Garden & Pet Co. |
270 | 12,960 | |||||||
a |
Central Garden & Pet Co., A |
1,140 | 49,020 | |||||||
Coca-Cola Consolidated Inc. |
132 | 52,032 | ||||||||
Ingles Markets Inc., A |
480 | 31,694 | ||||||||
Inter Parfums Inc. |
490 | 36,637 | ||||||||
John B. Sanfilippo & Son Inc. |
250 | 20,430 | ||||||||
Lancaster Colony Corp. |
520 | 87,781 | ||||||||
Medifast Inc. |
380 | 73,203 | ||||||||
National Beverage Corp. |
700 | 36,743 | ||||||||
Natural Grocers by Vitamin Cottage Inc. |
275 | 3,085 | ||||||||
Natures Sunshine Products Inc. |
280 | 4,102 | ||||||||
b |
Nu Skin Enterprises Inc., A |
770 | 31,162 | |||||||
Oil-Dri Corp. of America |
110 | 3,850 | ||||||||
PriceSmart Inc. |
640 | 49,632 | ||||||||
SpartanNash Co. |
1,100 | 24,090 | ||||||||
a |
Sprouts Farmers Market Inc. |
1,610 | 37,304 | |||||||
Tootsie Roll Industries Inc. |
390 | 11,868 | ||||||||
a |
United Natural Foods Inc. |
680 | 32,926 | |||||||
Universal Corp. |
690 | 33,348 | ||||||||
a |
USANA Health Sciences Inc. |
300 | 27,660 | |||||||
Vector Group Ltd. |
3,960 | 50,490 | ||||||||
Village Super Market Inc., A |
270 | 5,854 | ||||||||
a |
Vital Farms Inc. |
320 | 5,622 | |||||||
WD-40 Co. |
450 | 104,166 | ||||||||
Weis Markets Inc. |
420 | 22,071 | ||||||||
|
|
|||||||||
1,077,451 | ||||||||||
|
|
|||||||||
Energy 0.5% | ||||||||||
a |
CONSOL Energy Inc. |
850 | 22,117 | |||||||
DHT Holdings Inc. |
2,650 | 17,304 | ||||||||
Equitrans Midstream Corp. |
4,940 | 50,092 | ||||||||
|
|
|||||||||
89,513 | ||||||||||
|
|
|||||||||
Financials 8.8% | ||||||||||
1st Source Corp. |
390 | 18,424 | ||||||||
b |
A-Mark Precious Metals Inc. |
140 | 8,403 | |||||||
Allegiance Bancshares Inc. |
220 | 8,393 | ||||||||
American National Group Inc. |
110 | 20,793 | ||||||||
Arrow Financial Corp. |
385 | 13,229 | ||||||||
Associated Banc-Corp |
1,850 | 39,627 | ||||||||
Banco Latinoamericano de Comercio Exterior SA |
780 | 13,681 | ||||||||
BanCorpSouth Bank |
2,170 | 64,623 | ||||||||
Blackstone Mortgage Trust Inc., A |
1,640 | 49,725 | ||||||||
Brookline Bancorp Inc. |
900 | 13,734 |
94 |
Semiannual Report |
franklintempleton.com |
FRANKLIN TEMPLETON ETF TRUST
STATEMENT OF INVESTMENTS (UNAUDITED)
Franklin LibertyQ U.S. Small Cap Equity ETF (continued)
Shares | Value | |||||||||
Common Stocks (continued) | ||||||||||
Financials (continued) | ||||||||||
Central Pacific Financial Corp. |
600 | $ | 15,408 | |||||||
Citizens & Northern Corp. |
330 | 8,336 | ||||||||
City Holding Co. |
180 | 14,024 | ||||||||
Community Trust Bancorp Inc. |
340 | 14,314 | ||||||||
Diamond Hill Investment Group Inc. |
60 | 10,540 | ||||||||
Donegal Group Inc. |
390 | 5,651 | ||||||||
a |
Donnelley Financial Solutions Inc. |
540 | 18,695 | |||||||
a |
Enova International Inc. |
430 | 14,856 | |||||||
Enterprise Bancorp Inc. |
200 | 7,190 | ||||||||
Essent Group Ltd. |
2,750 | 121,027 | ||||||||
a |
EZCORP Inc., A |
1,340 | 10,144 | |||||||
Farmers National Banc Corp. |
310 | 4,870 | ||||||||
Federated Hermes Inc., B |
2,580 | 83,850 | ||||||||
Financial Institutions Inc. |
380 | 11,647 | ||||||||
First Bancorp Inc. |
240 | 6,994 | ||||||||
First Community Bankshares Inc. |
200 | 6,344 | ||||||||
First Merchants Corp. |
630 | 26,359 | ||||||||
First of Long Island Corp. |
270 | 5,562 | ||||||||
a |
Genworth Financial Inc., A |
14,010 | 52,537 | |||||||
German American Bancorp Inc. |
520 | 20,088 | ||||||||
Guaranty Bancshares Inc. |
100 | 3,585 | ||||||||
Hanmi Financial Corp. |
638 | 12,798 | ||||||||
Heritage Financial Corp. |
880 | 22,440 | ||||||||
Heritage Insurance Holdings Inc. |
350 | 2,384 | ||||||||
Hope Bancorp Inc. |
2,160 | 31,190 | ||||||||
Houlihan Lokey Inc. |
1,190 | 109,599 | ||||||||
b |
Invesco Mortgage Capital Inc. |
3,170 | 9,985 | |||||||
Investors Title Co. |
20 | 3,652 | ||||||||
Kinsale Capital Group Inc. |
470 | 75,999 | ||||||||
Lakeland Bancorp Inc. |
590 | 10,402 | ||||||||
Meridian Bancorp Inc. |
610 | 12,664 | ||||||||
MFA Financial Inc. |
8,010 | 36,606 | ||||||||
National Western Life Group Inc., A |
80 | 16,847 | ||||||||
NBT Bancorp Inc. |
980 | 35,398 | ||||||||
Nelnet Inc., A |
450 | 35,658 | ||||||||
Northfield Bancorp Inc. |
1,360 | 23,338 | ||||||||
Northwest Bancshares Inc. |
3,140 | 41,699 | ||||||||
a |
Oportun Financial Corp. |
385 | 9,637 | |||||||
Peoples Bancorp Inc. |
668 | 21,115 | ||||||||
ProAssurance Corp. |
1,210 | 28,774 | ||||||||
Provident Financial Services Inc. |
1,720 | 40,368 | ||||||||
Pzena Investment Management Inc., A |
440 | 4,330 | ||||||||
RLI Corp. |
750 | 75,202 | ||||||||
Safety Insurance Group Inc. |
180 | 14,265 | ||||||||
a |
Selectquote Inc. |
1,520 | 19,654 | |||||||
Southern Missouri Bancorp Inc. |
198 | 8,888 | ||||||||
StepStone Group Inc. |
560 | 23,878 | ||||||||
Stewart Information Services Corp. |
620 | 39,221 | ||||||||
The Hingham Institution for Savings |
25 | 8,418 | ||||||||
Tompkins Financial Corp. |
400 | 32,364 | ||||||||
TPG RE Finance Trust Inc. |
780 | 9,656 | ||||||||
TrustCo Bank Corp. |
520 | 16,624 | ||||||||
UMB Financial Corp. |
510 | 49,322 | ||||||||
United Insurance Holdings Corp. |
297 | 1,078 | ||||||||
West Bancorp Inc. |
440 | 13,213 | ||||||||
Westamerica BanCorp |
590 | 33,193 | ||||||||
a |
World Acceptance Corp. |
60 | 11,375 | |||||||
|
|
|||||||||
1,653,887 | ||||||||||
|
|
franklintempleton.com |
Semiannual Report |
95 |
FRANKLIN TEMPLETON ETF TRUST
STATEMENT OF INVESTMENTS (UNAUDITED)
Franklin LibertyQ U.S. Small Cap Equity ETF (continued)
Shares | Value | |||||||||
Common Stocks (continued) | ||||||||||
Health Care 10.5% | ||||||||||
a |
AMN Healthcare Services Inc. |
1,380 | $ | 158,355 | ||||||
a |
Apria Inc. |
100 | 3,715 | |||||||
a |
AtriCure Inc. |
1,130 | 78,591 | |||||||
Atrion Corp. |
40 | 27,900 | ||||||||
a |
Axogen Inc. |
830 | 13,114 | |||||||
a |
Bioventus Inc., A |
100 | 1,416 | |||||||
a |
Blueprint Medicines Corp. |
1,020 | 104,866 | |||||||
a |
Brooklyn ImmunoTherapeutics Inc. |
280 | 2,604 | |||||||
a |
Cardiovascular Systems Inc. |
1,100 | 36,113 | |||||||
a |
Catalyst Pharmaceuticals Inc. |
2,400 | 12,720 | |||||||
a |
Community Health Systems Inc. |
3,090 | 36,153 | |||||||
a |
Computer Programs and Systems Inc. |
170 | 6,028 | |||||||
CONMED Corp. |
710 | 92,889 | ||||||||
a |
Corcept Therapeutics Inc. |
2,870 | 56,482 | |||||||
a |
CorVel Corp. |
210 | 39,106 | |||||||
a |
Cross Country Healthcare Inc. |
913 | 19,392 | |||||||
a |
Eagle Pharmaceuticals Inc. |
275 | 15,340 | |||||||
a |
Emergent BioSolutions Inc. |
980 | 49,069 | |||||||
a |
Enanta Pharmaceuticals Inc. |
460 | 26,133 | |||||||
a,b |
Fulgent Genetics Inc. |
290 | 26,086 | |||||||
a,b |
Hanger Inc. |
1,100 | 24,156 | |||||||
a |
Inari Medical Inc. |
430 | 34,873 | |||||||
a |
InfuSystem Holdings Inc. |
360 | 4,691 | |||||||
a |
Innoviva Inc. |
1,250 | 20,888 | |||||||
a |
iRadimed Corp. |
143 | 4,803 | |||||||
a |
Ironwood Pharmaceuticals Inc. |
3,650 | 47,669 | |||||||
LeMaitre Vascular Inc. |
470 | 24,952 | ||||||||
a |
LHC Group Inc. |
710 | 111,406 | |||||||
a |
Mednax Inc. |
1,590 | 45,204 | |||||||
a |
Meridian Bioscience Inc. |
1,170 | 22,511 | |||||||
a |
Merit Medical Systems Inc. |
1,310 | 94,058 | |||||||
National Healthcare Corp. |
380 | 26,592 | ||||||||
National Research Corp., A |
360 | 15,181 | ||||||||
a |
Neogen Corp. |
2,570 | 111,615 | |||||||
a |
NeuroPace Inc. |
80 | 1,268 | |||||||
a,b |
Omeros Corp. |
1,150 | 15,859 | |||||||
a |
Organogenesis Holdings Inc. |
480 | 6,835 | |||||||
a |
Orthofix International N.V. |
470 | 17,916 | |||||||
Owens & Minor Inc. |
1,470 | 45,996 | ||||||||
Patterson Cos. Inc. |
2,200 | 66,308 | ||||||||
Phibro Animal Health Corp. |
630 | 13,570 | ||||||||
a |
Prestige Consumer Healthcare Inc. |
1,260 | 70,699 | |||||||
a |
Retractable Technologies Inc. |
200 | 2,206 | |||||||
a |
Sharps Compliance Corp. |
264 | 2,183 | |||||||
a |
SIGA Technologies Inc. |
690 | 5,099 | |||||||
Simulations Plus Inc. |
360 | 14,220 | ||||||||
a |
STAAR Surgical Co. |
1,150 | 147,809 | |||||||
a |
Supernus Pharmaceuticals Inc. |
1,350 | 36,005 | |||||||
a |
Surmodics Inc. |
290 | 16,124 | |||||||
a |
Tactile Systems Technology Inc. |
540 | 24,003 | |||||||
a |
The Joint Corp. |
390 | 38,228 | |||||||
Utah Medical Products Inc. |
90 | 8,356 | ||||||||
a |
Viemed Healthcare Inc. |
860 | 4,773 | |||||||
a |
Vocera Communications Inc. |
840 | 38,438 | |||||||
a,b |
Zynex Inc. |
240 | 2,734 | |||||||
|
|
|||||||||
1,973,300 | ||||||||||
|
|
96 |
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FRANKLIN TEMPLETON ETF TRUST
STATEMENT OF INVESTMENTS (UNAUDITED)
Franklin LibertyQ U.S. Small Cap Equity ETF (continued)
Shares | Value | |||||||||
Common Stocks (continued) | ||||||||||
Industrials 18.8% | ||||||||||
ABM Industries Inc. |
1,660 | $ | 74,717 | |||||||
Acco Brands Corp. |
2,260 | 19,413 | ||||||||
a |
Air Transport Services Group Inc. |
1,166 | 30,094 | |||||||
Alamo Group Inc. |
230 | 32,092 | ||||||||
Allied Motion Technologies Inc. |
300 | 9,384 | ||||||||
Applied Industrial Technologies Inc. |
1,080 | 97,340 | ||||||||
a |
Atlas Air Worldwide Holdings Inc. |
510 | 41,657 | |||||||
a,b |
Atlas Technical Consultants Inc. |
170 | 1,729 | |||||||
a |
BlueLinx Holdings Inc. |
110 | 5,377 | |||||||
Boise Cascade Co. |
770 | 41,565 | ||||||||
Brady Corp., A |
1,490 | 75,543 | ||||||||
a |
Casella Waste Systems Inc., A |
1,080 | 82,015 | |||||||
a |
Cimpress PLC |
430 | 37,337 | |||||||
Comfort Systems USA Inc. |
650 | 46,358 | ||||||||
CompX International Inc. |
44 | 914 | ||||||||
Costamare Inc. |
1,230 | 19,053 | ||||||||
a |
Covenant Logistics Group Inc. |
363 | 10,037 | |||||||
CRA International Inc. |
165 | 16,391 | ||||||||
CSW Industrials Inc. |
340 | 43,418 | ||||||||
Deluxe Corp. |
1,320 | 47,375 | ||||||||
a |
DXP Enterprises Inc. |
220 | 6,505 | |||||||
a |
Energy Recovery Inc. |
490 | 9,325 | |||||||
Ennis Inc. |
690 | 13,006 | ||||||||
Exponent Inc. |
1,520 | 171,988 | ||||||||
Federal Signal Corp. |
760 | 29,351 | ||||||||
Forward Air Corp. |
770 | 63,925 | ||||||||
a |
Franklin Covey Co. |
300 | 12,237 | |||||||
Franklin Electric Co. Inc. |
1,150 | 91,827 | ||||||||
Global Industrial Co. |
380 | 14,398 | ||||||||
a |
GMS Inc. |
970 | 42,486 | |||||||
GrafTech International Ltd. |
1,940 | 20,021 | ||||||||
Griffon Corp. |
530 | 13,038 | ||||||||
H&E Equipment Services Inc. |
770 | 26,727 | ||||||||
Healthcare Services Group Inc. |
1,980 | 49,480 | ||||||||
Heartland Express Inc. |
1,320 | 21,146 | ||||||||
Heidrick & Struggles International Inc. |
660 | 29,456 | ||||||||
a |
Heritage-Crystal Clean Inc. |
490 | 14,200 | |||||||
Herman Miller Inc. |
2,030 | 76,450 | ||||||||
Hillenbrand Inc. |
1,720 | 73,358 | ||||||||
HireQuest Inc. |
60 | 1,160 | ||||||||
HNI Corp. |
1,330 | 48,838 | ||||||||
Hyster-Yale Materials Handling Inc. |
250 | 12,565 | ||||||||
a |
IBEX Ltd. |
120 | 2,040 | |||||||
ICF International Inc. |
470 | 41,966 | ||||||||
a |
IES Holdings Inc. |
190 | 8,681 | |||||||
Insperity Inc. |
940 | 104,096 | ||||||||
Interface Inc. |
1,350 | 20,452 | ||||||||
John Bean Technologies Corp. |
680 | 95,574 | ||||||||
Kadant Inc. |
280 | 57,148 | ||||||||
a |
Karat Packaging Inc. |
60 | 1,262 | |||||||
Kelly Services Inc., A |
900 | 16,992 | ||||||||
Kforce Inc. |
680 | 40,555 | ||||||||
Kimball International Inc., B |
1,090 | 12,208 | ||||||||
Korn Ferry |
1,780 | 128,801 | ||||||||
a |
Lawson Products Inc. |
143 | 7,151 | |||||||
b |
Luxfer Holdings PLC |
520 | 10,208 | |||||||
Marten Transport Ltd. |
1,353 | 21,229 |
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Semiannual Report |
97 |
FRANKLIN TEMPLETON ETF TRUST
STATEMENT OF INVESTMENTS (UNAUDITED)
Franklin LibertyQ U.S. Small Cap Equity ETF (continued)
Shares | Value | |||||||||
Common Stocks (continued) | ||||||||||
Industrials (continued) | ||||||||||
Matson Inc. |
500 | $ | 40,355 | |||||||
Matthews International Corp., A |
350 | 12,141 | ||||||||
McGrath RentCorp |
620 | 44,609 | ||||||||
Miller Industries Inc. |
280 | 9,531 | ||||||||
Mueller Water Products Inc., A |
1,880 | 28,614 | ||||||||
National Presto Industries Inc. |
130 | 10,670 | ||||||||
NL Industries Inc. |
110 | 634 | ||||||||
a |
NV5 Global Inc. |
150 | 14,785 | |||||||
Omega Flex Inc. |
88 | 12,557 | ||||||||
a |
P.A.M. Transportation Services Inc. |
110 | 4,948 | |||||||
Preformed Line Products Co. |
77 | 5,008 | ||||||||
a |
Radiant Logistics Inc. |
1,100 | 7,029 | |||||||
a |
RR Donnelley & Sons Co. |
840 | 4,318 | |||||||
Rush Enterprises Inc., A |
500 | 22,580 | ||||||||
Rush Enterprises Inc., B |
180 | 8,239 | ||||||||
a |
SAIA Inc. |
830 | 197,565 | |||||||
Simpson Manufacturing Co. Inc. |
1,200 | 128,364 | ||||||||
Standex International Corp. |
300 | 29,673 | ||||||||
Steelcase Inc., A |
2,460 | 31,193 | ||||||||
Tennant Co. |
480 | 35,496 | ||||||||
Tetra Tech Inc. |
1,150 | 171,741 | ||||||||
a |
Titan Machinery Inc. |
230 | 5,959 | |||||||
a |
Transcat Inc. |
180 | 11,606 | |||||||
Triton International Ltd. |
1,190 | 61,928 | ||||||||
a |
TrueBlue Inc. |
400 | 10,832 | |||||||
UFP Industries Inc. |
1,400 | 95,172 | ||||||||
UniFirst Corp. |
350 | 74,417 | ||||||||
Universal Logistics Holdings Inc. |
220 | 4,418 | ||||||||
a |
US Xpress Enterprises Inc., A |
649 | 5,601 | |||||||
a |
Vectrus Inc. |
230 | 11,564 | |||||||
a |
Veritiv Corp. |
280 | 25,077 | |||||||
a |
Vicor Corp. |
480 | 64,397 | |||||||
Watts Water Technologies Inc., A |
750 | 126,067 | ||||||||
Werner Enterprises Inc. |
2,070 | 91,639 | ||||||||
|
|
|||||||||
3,550,386 | ||||||||||
|
|
|||||||||
Information Technology 15.3% | ||||||||||
a |
A10 Networks Inc. |
1,750 | 23,590 | |||||||
ADTRAN Inc. |
550 | 10,318 | ||||||||
a |
Alarm.com Holdings Inc. |
1,410 | 110,248 | |||||||
a |
Altair Engineering Inc. |
1,120 | 77,213 | |||||||
American Software Inc., A |
750 | 17,813 | ||||||||
a |
Appfolio Inc. |
430 | 51,772 | |||||||
a |
Aviat Networks Inc. |
130 | 4,272 | |||||||
a |
Avid Technology Inc. |
960 | 27,763 | |||||||
Badger Meter Inc. |
800 | 80,912 | ||||||||
a |
BigCommerce Holdings Inc., Series 1 |
550 | 27,852 | |||||||
a |
Blackbaud Inc. |
600 | 42,210 | |||||||
a |
Brightcove Inc. |
760 | 8,770 | |||||||
a |
Calix Inc. |
1,180 | 58,327 | |||||||
a |
Cambium Networks Corp. |
160 | 5,790 | |||||||
a |
CEVA Inc. |
530 | 22,615 | |||||||
a |
ChannelAdvisor Corp. |
780 | 19,679 | |||||||
a |
Clearfield Inc. |
210 | 9,272 | |||||||
a |
CommVault Systems Inc. |
1,150 | 86,607 | |||||||
a,b |
Corsair Gaming Inc. |
370 | 9,594 | |||||||
CSG Systems International Inc. |
930 | 44,826 | ||||||||
a |
Daktronics Inc. |
1,012 | 5,495 |
98 |
Semiannual Report |
franklintempleton.com |
FRANKLIN TEMPLETON ETF TRUST
STATEMENT OF INVESTMENTS (UNAUDITED)
Franklin LibertyQ U.S. Small Cap Equity ETF (continued)
Shares | Value | |||||||||
Common Stocks (continued) | ||||||||||
Information Technology (continued) | ||||||||||
a |
eGain Corp. |
530 | $ | 5,406 | ||||||
a |
Envestnet Inc. |
650 | 52,156 | |||||||
a |
ePlus Inc. |
320 | 32,835 | |||||||
EVERTEC Inc. |
1,430 | 65,380 | ||||||||
a |
FARO Technologies Inc. |
210 | 13,820 | |||||||
Hackett Group Inc. |
670 | 13,145 | ||||||||
a |
Insight Enterprises Inc. |
880 | 79,271 | |||||||
a |
International Money Express Inc. |
420 | 7,014 | |||||||
a |
Iteris Inc. |
880 | 4,646 | |||||||
a |
J2 Global Inc. |
1,250 | 170,775 | |||||||
Kulicke & Soffa Industries Inc. |
860 | 50,121 | ||||||||
a |
Lattice Semiconductor Corp. |
2,740 | 177,141 | |||||||
ManTech International Corp., A |
720 | 54,662 | ||||||||
MAXIMUS Inc. |
1,530 | 127,296 | ||||||||
Methode Electronics Inc. |
960 | 40,368 | ||||||||
a,b |
MicroStrategy Inc. |
220 | 127,248 | |||||||
a |
Mimecast Ltd. |
1,330 | 84,588 | |||||||
a |
Napco Security Technologies Inc. |
341 | 14,690 | |||||||
a |
NETGEAR Inc. |
340 | 10,849 | |||||||
a |
NetScout Systems Inc. |
830 | 22,369 | |||||||
a |
Novanta Inc. |
970 | 149,865 | |||||||
NVE Corp. |
143 | 9,148 | ||||||||
a |
ON24 Inc. |
110 | 2,193 | |||||||
a |
OneSpan Inc. |
420 | 7,888 | |||||||
a |
OSI Systems Inc. |
380 | 36,024 | |||||||
a |
PagerDuty Inc. |
940 | 38,935 | |||||||
PC Connection Inc. |
260 | 11,448 | ||||||||
Power Integrations Inc. |
1,400 | 138,586 | ||||||||
Progress Software Corp. |
1,190 | 58,536 | ||||||||
QAD Inc., A |
280 | 24,469 | ||||||||
a |
Qualys Inc. |
990 | 110,177 | |||||||
a,b |
Quantum Corp. |
910 | 4,714 | |||||||
a |
Rimini Street Inc. |
920 | 8,878 | |||||||
a |
Smith Micro Software Inc. |
900 | 4,356 | |||||||
a |
SPS Commerce Inc. |
1,020 | 164,536 | |||||||
TTEC Holdings Inc. |
230 | 21,512 | ||||||||
Vishay Intertechnology Inc. |
3,010 | 60,471 | ||||||||
a |
Workiva Inc. |
680 | 95,853 | |||||||
Xperi Holding Corp. |
2,170 | 40,883 | ||||||||
|
|
|||||||||
2,887,190 | ||||||||||
|
|
|||||||||
Materials 2.9% | ||||||||||
Balchem Corp. |
410 | 59,479 | ||||||||
Commercial Metals Co. |
1,400 | 42,644 | ||||||||
Compass Minerals International Inc. |
600 | 38,640 | ||||||||
Greif Inc., A |
730 | 47,158 | ||||||||
Greif Inc., B |
176 | 11,405 | ||||||||
Kronos Worldwide Inc. |
400 | 4,964 | ||||||||
Myers Industries Inc. |
950 | 18,591 | ||||||||
Olympic Steel Inc. |
100 | 2,436 | ||||||||
Quaker Chemical Corp. |
300 | 71,316 | ||||||||
Schnitzer Steel Industries Inc., A |
320 | 14,019 | ||||||||
Schweitzer-Mauduit International Inc. |
860 | 29,808 | ||||||||
Sensient Technologies Corp. |
1,110 | 101,099 | ||||||||
Stepan Co. |
460 | 51,952 | ||||||||
SunCoke Energy Inc. |
930 | 5,840 | ||||||||
Tredegar Corp. |
300 | 3,654 | ||||||||
Worthington Industries Inc. |
650 | 34,255 | ||||||||
|
|
|||||||||
537,260 | ||||||||||
|
|
franklintempleton.com |
Semiannual Report |
99 |
FRANKLIN TEMPLETON ETF TRUST
STATEMENT OF INVESTMENTS (UNAUDITED)
Franklin LibertyQ U.S. Small Cap Equity ETF (continued)
Shares | Value | |||||||||
Common Stocks (continued) | ||||||||||
Professional Services 0.1% | ||||||||||
Resources Connection Inc. |
1,000 | $ | 15,780 | |||||||
|
|
|||||||||
Real Estate 5.6% | ||||||||||
American Assets Trust Inc. |
1,140 | 42,659 | ||||||||
American Finance Trust Inc. |
1,330 | 10,693 | ||||||||
Brandywine Realty Trust |
2,130 | 28,585 | ||||||||
Broadstone Net Lease Inc. |
2,380 | 59,048 | ||||||||
CareTrust REIT Inc. |
1,110 | 22,555 | ||||||||
Community Healthcare Trust Inc. |
270 | 12,201 | ||||||||
a |
CoreCivic Inc. |
3,110 | 27,679 | |||||||
Corporate Office Properties Trust |
1,380 | 37,232 | ||||||||
Franklin Street Properties Corp. |
2,794 | 12,964 | ||||||||
b |
GEO Group Inc. |
1,490 | 11,130 | |||||||
Gladstone Commercial Corp. |
420 | 8,833 | ||||||||
Healthcare Realty Trust Inc. |
2,940 | 87,553 | ||||||||
Kite Realty Group Trust |
1,683 | 34,266 | ||||||||
Lexington Realty Trust |
7,470 | 95,243 | ||||||||
a |
Marcus & Millichap Inc. |
470 | 19,091 | |||||||
Monmouth Real Estate Investment Corp., A |
2,409 | 44,928 | ||||||||
National Storage Affiliates Trust |
900 | 47,511 | ||||||||
Physicians Realty Trust |
2,810 | 49,512 | ||||||||
Piedmont Office Realty Trust Inc., A |
2,930 | 51,070 | ||||||||
PotlatchDeltic Corp. |
810 | 41,780 | ||||||||
Preferred Apartment Communities Inc., A |
1,280 | 15,654 | ||||||||
PS Business Parks Inc. |
550 | 86,207 | ||||||||
RE/MAX Holdings Inc., A |
550 | 17,138 | ||||||||
Retail Properties of America Inc., A |
4,430 | 57,059 | ||||||||
Retail Value Inc. |
200 | 5,266 | ||||||||
b |
Tanger Factory Outlet Centers Inc. |
2,520 | 41,076 | |||||||
Terreno Realty Corp. |
810 | 51,216 | ||||||||
The RMR Group Inc., A |
330 | 11,039 | ||||||||
Washington Real Estate Investment Trust |
1,020 | 25,245 | ||||||||
Whitestone REIT |
1,023 | 10,005 | ||||||||
|
|
|||||||||
1,064,438 | ||||||||||
|
|
|||||||||
Utilities 4.8% | ||||||||||
American States Water Co. |
1,030 | 88,086 | ||||||||
Artesian Resources Corp., A |
209 | 7,977 | ||||||||
Avista Corp. |
1,930 | 75,502 | ||||||||
Black Hills Corp. |
1,590 | 99,788 | ||||||||
California Water Service Group |
1,390 | 81,913 | ||||||||
Clearway Energy Inc., A |
820 | 23,124 | ||||||||
Clearway Energy Inc., C |
1,860 | 56,302 | ||||||||
Global Water Resources Inc. |
308 | 5,766 | ||||||||
MGE Energy Inc. |
980 | 72,030 | ||||||||
Northwest Natural Holding Co. |
360 | 16,556 | ||||||||
NorthWestern Corp. |
1,230 | 70,479 | ||||||||
Otter Tail Corp. |
470 | 26,306 | ||||||||
PNM Resources Inc. |
2,230 | 110,340 | ||||||||
SJW Group |
660 | 43,600 | ||||||||
a |
Southwest Gas Holdings Inc. |
1,520 | 101,658 | |||||||
Unitil Corp. |
370 | 15,829 | ||||||||
b |
Via Renewables Inc. |
363 | 3,699 | |||||||
York Water Co. |
340 | 14,851 | ||||||||
|
|
|||||||||
913,806 | ||||||||||
|
|
|||||||||
Total
Investments before Short Term |
18,835,840 | |||||||||
|
|
100 |
Semiannual Report |
franklintempleton.com |
FRANKLIN TEMPLETON ETF TRUST
STATEMENT OF INVESTMENTS (UNAUDITED)
Franklin LibertyQ U.S. Small Cap Equity ETF (continued)
Shares | Value | |||||||||
Short Term Investments (Cost $368,996) 2.0% | ||||||||||
Investments
from Cash Collateral Received for Loaned |
||||||||||
Money Market Funds 2.0% | ||||||||||
c,d |
Institutional Fiduciary Trust Portfolio, 0.01% |
368,996 | $ | 368,996 | ||||||
|
|
|||||||||
Total Short Term Investments |
368,996 | |||||||||
|
|
|||||||||
Total Investments (Cost $16,794,295) 101.9% |
19,204,836 | |||||||||
Other Assets, less Liabilities (1.9)% |
(351,091 | ) | ||||||||
|
|
|||||||||
Net Assets 100.0% |
$ | 18,853,745 | ||||||||
|
|
aNon-income producing.
bA portion or all of the security is on loan at September 30, 2021 Note 1(c).
cThe rate shown is the annualized seven-day effective yield at period end.
dSee Note 3(c) regarding investments in affiliated management investment companies.
franklintempleton.com |
The accompanying notes are an integral part of these financial statements. | Semiannual Report |
101 |
FRANKLIN TEMPLETON ETF TRUST
FINANCIAL STATEMENTS
Statements of Assets and Liabilities
September 30, 2021 (unaudited)
Franklin LibertyQ Emerging Markets ETF |
Franklin LibertyQ Global Dividend ETF |
Franklin LibertyQ Global Equity ETF |
Franklin LibertyQ International Equity Hedged ETF |
|||||||||||||
Assets: |
| |||||||||||||||
Investments in securities: |
| |||||||||||||||
Cost – Unaffiliated issuers |
$ | 21,139,569 | $ | 23,610,290 | $ | 12,599,867 | $ | 14,598,052 | ||||||||
Value – Unaffiliated issuers |
$ | 24,630,147 | $ | 27,277,961 | $ | 15,626,279 | $ | 16,608,775 | ||||||||
Cash |
6,936 | 7,704 | — | — | ||||||||||||
Foreign currency, at value (cost $28,462, $38,923, 12,905 and $7,262) |
52,332 | 28,690 | 56,184 | 146,032 | ||||||||||||
Receivables: |
| |||||||||||||||
Dividends and interest |
71,861 | 118,002 | 35,707 | 71,080 | ||||||||||||
Investment securities sold |
12 | — | — | — | ||||||||||||
Variation margin on futures contracts |
980 | — | 9 | — | ||||||||||||
Deposits with brokers for: |
||||||||||||||||
Futures contracts |
7,298 | 6,109 | 2,036 | 6,059 | ||||||||||||
Unrealized appreciation on OTC forward exchange contracts |
— | — | — | 286,419 | ||||||||||||
Other assets |
55 | — | 7 | — | ||||||||||||
|
|
|||||||||||||||
Total assets |
24,769,621 | 27,438,466 | 15,720,222 | 17,118,365 | ||||||||||||
|
|
|||||||||||||||
Liabilities: |
| |||||||||||||||
Payables: |
| |||||||||||||||
Investment securities purchased |
— | — | — | 386,038 | ||||||||||||
Management fees |
9,234 | 10,463 | 4,692 | 5,671 | ||||||||||||
Variation margin on futures contracts |
— | 32 | — | 417 | ||||||||||||
Funds advanced by custodian |
— | — | 35,380 | 24 | ||||||||||||
Deferred tax |
119,590 | — | 5,198 | — | ||||||||||||
Unrealized depreciation on OTC forward exchange contracts |
— | — | — | 372 | ||||||||||||
|
|
|||||||||||||||
Total liabilities |
128,824 | 10,495 | 45,270 | 392,522 | ||||||||||||
|
|
|||||||||||||||
Net assets, at value |
$ | 24,640,797 | $ | 27,427,971 | $ | 15,674,952 | $ | 16,725,843 | ||||||||
|
|
|||||||||||||||
Net assets consist of: |
||||||||||||||||
Paid-in capital |
$ | 51,851,991 | $ | 24,735,248 | $ | 12,986,976 | $ | 15,123,405 | ||||||||
Total distributable earnings (loss) |
(27,211,194 | ) | 2,692,723 | 2,687,976 | 1,602,438 | |||||||||||
|
|
|||||||||||||||
Net assets, at value |
$ | 24,640,797 | $ | 27,427,971 | $ | 15,674,952 | $ | 16,725,843 | ||||||||
|
|
|||||||||||||||
Shares outstanding |
800,000 | 800,000 | 400,000 | 600,000 | ||||||||||||
|
|
|||||||||||||||
Net asset value per share |
$ | 30.80 | $ | 34.28 | $ | 39.19 | $ | 27.88 | ||||||||
|
|
102 |
Semiannual Report | The accompanying notes are an integral part of these financial statements. |
franklintempleton.com |
FRANKLIN TEMPLETON ETF TRUST
FINANCIAL STATEMENTS
Statements of Assets and Liabilities
September 30, 2021 (unaudited)
Franklin LibertyQ U.S. Equity ETF |
Franklin LibertyQ U.S. Mid Cap Equity ETF |
Franklin LibertyQ U.S. Small Cap Equity ETF |
||||||||||
Assets: |
| |||||||||||
Investments in securities: |
| |||||||||||
Cost – Unaffiliated issuers |
$ | 815,304,083 | $ | 43,840,510 | $ | 16,425,299 | ||||||
Cost – Non-controlled affiliates (Note 3c) |
881,025 | 295,905 | 368,996 | |||||||||
|
|
|||||||||||
Value – Unaffiliated issuers+ |
$ | 918,564,020 | $ | 52,400,482 | $ | 18,835,840 | ||||||
Value – Non-controlled affiliates (Note 3c) |
881,025 | 295,905 | 368,996 | |||||||||
Cash |
985,406 | 17,042 | 9,319 | |||||||||
Receivables: |
||||||||||||
Dividends |
1,264,339 | 48,759 | 14,094 | |||||||||
Investment securities sold |
121,447,325 | 66,940 | — | |||||||||
Capital shares sold |
4,219,435 | — | — | |||||||||
Futures contracts |
69,000 | — | — | |||||||||
|
|
|||||||||||
Total assets |
1,047,430,550 | 52,829,128 | 19,228,249 | |||||||||
|
|
|||||||||||
Liabilities: |
| |||||||||||
Payables: |
| |||||||||||
Investment securities purchased |
4,187,816 | — | — | |||||||||
Capital shares redeemed |
122,363,615 | — | — | |||||||||
Management fees |
145,637 | 12,400 | 5,508 | |||||||||
Variation margin on futures contracts |
15,622 | — | — | |||||||||
Payable upon return of securities loaned |
881,025 | 295,905 | 368,996 | |||||||||
|
|
|||||||||||
Total liabilities |
127,593,715 | 308,305 | 374,504 | |||||||||
|
|
|||||||||||
Net assets, at value |
$ | 919,836,835 | $ | 52,520,823 | $ | 18,853,745 | ||||||
|
|
|||||||||||
Net assets consist of: |
| |||||||||||
Paid-in capital |
$ | 725,905,282 | $ | 42,716,177 | $ | 17,392,466 | ||||||
Total distributable earnings (loss) |
193,931,553 | 9,804,646 | 1,461,279 | |||||||||
|
|
|||||||||||
Net assets, at value |
$ | 919,836,835 | $ | 52,520,823 | $ | 18,853,745 | ||||||
|
|
|||||||||||
Shares outstanding |
21,800,000 | 1,200,000 | 500,000 | |||||||||
|
|
|||||||||||
Net asset value per share |
$ | 42.19 | $ | 43.77 | $ | 37.71 | ||||||
|
|
|||||||||||
+Includes securities loaned |
862,931 | 289,652 | 360,235 |
franklintempleton.com |
The accompanying notes are an integral part of these financial statements. | Semiannual Report |
103 |
FRANKLIN TEMPLETON ETF TRUST
FINANCIAL STATEMENTS
Statements of Operations
for the period ended September 30, 2021 (unaudited)
Franklin LibertyQ Emerging Markets ETF |
Franklin LibertyQ Global Dividend ETF |
Franklin LibertyQ Global Equity ETF |
Franklin LibertyQ International Equity Hedged ETF |
|||||||||||||
Investment income: |
| |||||||||||||||
Dividends: (net of foreign taxes)a |
||||||||||||||||
Unaffiliated issuers |
$ | 735,131 | $ | 468,147 | $ | 257,669 | $ | 306,735 | ||||||||
Non-cash dividends |
— | — | — | 39,663 | ||||||||||||
Interest: |
||||||||||||||||
Unaffiliated issuers |
55 | — | 43 | — | ||||||||||||
Interest from securities loaned: (Note 1d) |
||||||||||||||||
Unaffiliated issuers (net of fees and rebates) |
13 | 5 | 12 | — | ||||||||||||
|
|
|||||||||||||||
Total investment income |
735,199 | 468,152 | 257,724 | 346,398 | ||||||||||||
|
|
|||||||||||||||
Expenses: |
||||||||||||||||
Management fees (Note 3a) |
56,357 | 63,005 | 28,045 | 32,003 | ||||||||||||
Other |
— | 55 | — | — | ||||||||||||
|
|
|||||||||||||||
Total expenses |
56,357 | 63,060 | 28,045 | 32,003 | ||||||||||||
Expenses waived/paid by affiliates (Note 3c) |
(7 | ) | — | (460 | ) | — | ||||||||||
|
|
|||||||||||||||
Net expenses |
56,350 | 63,060 | 27,585 | 32,003 | ||||||||||||
|
|
|||||||||||||||
Net investment income |
678,849 | 405,092 | 230,139 | 314,395 | ||||||||||||
|
|
|||||||||||||||
Realized and unrealized gains (losses): |
||||||||||||||||
Net realized gain (loss) from: |
||||||||||||||||
Investments: |
| |||||||||||||||
Unaffiliated issuers |
345,416 | 512,683 | 297,666 | 109,638 | ||||||||||||
Foreign currency transactions |
(6,094 | ) | (1,202 | ) | (1,652 | ) | (2,282 | ) | ||||||||
Forwards exchange contracts |
— | — | — | 441,719 | ||||||||||||
Futures contracts |
(8,321 | ) | 9,258 | 2,985 | 5,102 | |||||||||||
|
|
|||||||||||||||
Net realized gain (loss) |
331,001 | 520,739 | 298,999 | 554,177 | ||||||||||||
|
|
|||||||||||||||
Net change in unrealized appreciation (depreciation) on: |
| |||||||||||||||
Investments: |
| |||||||||||||||
Unaffiliated issuers |
(749,548 | ) | 377,818 | 240,198 | (5,562 | ) | ||||||||||
Translation of other assets and liabilities denominated in foreign currencies |
2,346 | (247 | ) | 299 | (1,126 | ) | ||||||||||
Futures contracts |
(5,617 | ) | (2,418 | ) | (693 | ) | (5,257 | ) | ||||||||
Forward exchange contracts |
— | — | — | (51,654 | ) | |||||||||||
Change in deferred taxes on unrealized appreciation |
(58,831 | ) | — | (4,958 | ) | — | ||||||||||
|
|
|||||||||||||||
Net change in unrealized appreciation (depreciation) |
(811,650 | ) | 375,153 | 234,846 | (63,599 | ) | ||||||||||
|
|
|||||||||||||||
Net realized and unrealized gain (loss) |
(480,649 | ) | 895,892 | 533,845 | 490,578 | |||||||||||
|
|
|||||||||||||||
Net increase (decrease) in net assets resulting from operations |
$ | 198,200 | $ | 1,300,984 | $ | 763,984 | $ | 804,973 | ||||||||
|
|
aForeign taxes withheld on dividends |
$97,704 | $27,293 | $13,000 | $18,838 | ||||||||||||
|
|
104 |
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, 2021 (unaudited)
Franklin LibertyQ U.S. Equity ETF |
Franklin LibertyQ U.S. Mid Cap Equity ETF |
Franklin LibertyQ U.S. Small Cap Equity ETF |
||||||||||
Investment income: |
| |||||||||||
Dividends: (net of foreign taxes)a |
||||||||||||
Unaffiliated issuers |
$ | 12,430,459 | $ | 334,567 | $ | 126,436 | ||||||
Interest from securities loaned: (Note 1d) |
||||||||||||
Unaffiliated issuers (net of fees and rebates) |
6,511 | 134 | 650 | |||||||||
|
|
|||||||||||
Total investment income |
12,436,970 | 334,701 | 127,086 | |||||||||
|
|
|||||||||||
Expenses: |
||||||||||||
Management fees (Note 3a) |
986,921 | 66,563 | 32,884 | |||||||||
|
|
|||||||||||
Total expenses |
986,921 | 66,563 | 32,884 | |||||||||
Expenses waived/paid by affiliates (Note 3c) |
(296 | ) | (33 | ) | (134 | ) | ||||||
|
|
|||||||||||
Net expenses |
986,625 | 66,530 | 32,750 | |||||||||
|
|
|||||||||||
Net investment income |
11,450,345 | 268,171 | 94,336 | |||||||||
|
|
|||||||||||
Realized and unrealized gains (losses): |
||||||||||||
Net realized gain (loss) from: |
||||||||||||
Investments: |
||||||||||||
Unaffiliated issuers |
5,613,595 | 98,214 | (54,262 | ) | ||||||||
In-kind redemptions |
176,962,924 | 1,713,510 | 668,501 | |||||||||
Futures contracts |
204,572 | — | — | |||||||||
|
|
|||||||||||
Net realized gain (loss) |
182,781,091 | 1,811,724 | 614,239 | |||||||||
|
|
|||||||||||
Net change in unrealized appreciation (depreciation) on: |
||||||||||||
Investments: |
||||||||||||
Unaffiliated issuers |
(98,743,731 | ) | 572,361 | (97,522 | ) | |||||||
Futures contracts |
(64,391 | ) | — | — | ||||||||
|
|
|||||||||||
Net change in unrealized appreciation (depreciation) |
(98,808,122 | ) | 572,361 | (97,522 | ) | |||||||
|
|
|||||||||||
Net realized and unrealized gain (loss) |
83,972,969 | 2,384,085 | 516,717 | |||||||||
|
|
|||||||||||
Net increase (decrease) in net assets resulting from operations |
$ | 95,423,314 | $ | 2,652,256 | $ | 611,053 | ||||||
|
|
aForeign taxes withheld on dividends |
$15 | $4 | $32 | |||||||||
|
|
franklintempleton.com |
The accompanying notes are an integral part of these financial statements. | Semiannual Report |
105 |
FRANKLIN TEMPLETON ETF TRUST
FINANCIAL STATEMENTS
Statements of Changes in Net Assets
Franklin LibertyQ Emerging Markets ETF |
Franklin LibertyQ Global Dividend ETF |
|||||||||||||||
Six Months Ended September 30, 2021 (unaudited) |
Year Ended March 31, 2021 |
Six Months Ended September 30, 2021 (unaudited) |
Year Ended March 31, 2021 |
|||||||||||||
Increase (decrease) in net assets: |
||||||||||||||||
Operations: |
||||||||||||||||
Net investment income |
$ | 678,849 | $ | 792,672 | $ | 405,092 | $ | 739,346 | ||||||||
Net realized gain (loss) |
331,001 | (7,009,559 | ) | 520,739 | (889,558 | ) | ||||||||||
Net change in unrealized appreciation (depreciation) |
(811,650 | ) | 15,802,995 | 375,153 | 8,845,282 | |||||||||||
|
|
|||||||||||||||
Net increase (decrease) in net assets resulting from operations |
198,200 | 9,586,108 | 1,300,984 | 8,695,070 | ||||||||||||
|
|
|||||||||||||||
Distributions to shareholders |
(184,194 | ) | (652,807 | ) | (504,899 | ) | (716,542 | ) | ||||||||
|
|
|||||||||||||||
Capital share transactions: (Note 2) |
— | (42,017,238 | ) | — | — | |||||||||||
|
|
|||||||||||||||
Net increase (decrease) in net assets |
14,006 | (33,083,937 | ) | 796,085 | 7,978,528 | |||||||||||
Net assets: |
||||||||||||||||
Beginning of period |
24,626,791 | 57,710,728 | 26,631,886 | 18,653,358 | ||||||||||||
|
|
|||||||||||||||
End of Period |
$ | 24,640,797 | $ | 24,626,791 | $ | 27,427,971 | $ | 26,631,886 | ||||||||
|
|
106 |
Semiannual Report | The accompanying notes are an integral part of these financial statements. |
franklintempleton.com |
FRANKLIN TEMPLETON ETF TRUST
FINANCIAL STATEMENTS
Statements of Changes in Net Assets (continued)
Franklin LibertyQ Global Equity ETF |
Franklin LibertyQ International Equity Hedged ETF |
|||||||||||||||
Six Months Ended September 30, 2021 (unaudited) |
Year Ended March 31, 2021 |
Six Months Ended September 30, 2021 (unaudited) |
Year Ended March 31, 2021 |
|||||||||||||
Increase (decrease) in net assets: |
||||||||||||||||
Operations: |
||||||||||||||||
Net investment income |
$ | 230,139 | $ | 332,509 | $ | 314,395 | $ | 303,092 | ||||||||
Net realized gain (loss) |
298,999 | (403,151 | ) | 554,177 | (1,457,748 | ) | ||||||||||
Net change in unrealized appreciation (depreciation) |
234,846 | 5,088,079 | (63,599 | ) | 3,621,768 | |||||||||||
|
|
|||||||||||||||
Net increase (decrease) in net assets resulting from operations |
763,984 | 5,017,437 | 804,973 | 2,467,112 | ||||||||||||
|
|
|||||||||||||||
Distributions to shareholders |
(148,418 | ) | (359,864 | ) | (90,856 | ) | (813,573 | ) | ||||||||
|
|
|||||||||||||||
Capital share transactions: (Note 2) |
— | (5,657,628 | ) | 2,752,200 | 2,584,649 | |||||||||||
|
|
|||||||||||||||
Net increase (decrease) in net assets |
615,566 | (1,000,055 | ) | 3,466,317 | 4,238,188 | |||||||||||
Net assets: |
||||||||||||||||
Beginning of period |
15,059,386 | 16,059,441 | 13,259,526 | 9,021,338 | ||||||||||||
|
|
|||||||||||||||
End of Period |
$ | 15,674,952 | $ | 15,059,386 | $ | 16,725,843 | $ | 13,259,526 | ||||||||
|
|
franklintempleton.com |
The accompanying notes are an integral part of these financial statements. | Semiannual Report |
107 |
FRANKLIN TEMPLETON ETF TRUST
FINANCIAL STATEMENTS
Statements of Changes in Net Assets (continued)
Franklin LibertyQ U.S. Equity ETF |
Franklin LibertyQ U.S. Mid Cap Equity ETF |
|||||||||||||||
Six Months
Ended September 30, 2021 (unaudited) |
Year Ended March 31, 2021 |
Six Months
Ended September 30, 2021 (unaudited) |
Year Ended March 31, 2021 |
|||||||||||||
Increase (decrease) in net assets: |
||||||||||||||||
Operations: |
||||||||||||||||
Net investment income |
$ | 11,450,345 | $ | 28,048,990 | $ | 268,171 | $ | 326,764 | ||||||||
Net realized gain (loss) |
182,781,091 | 77,407,315 | 1,811,724 | 161,368 | ||||||||||||
Net change in unrealized appreciation (depreciation) |
(98,808,122 | ) | 419,757,126 | 572,361 | 10,818,121 | |||||||||||
|
|
|||||||||||||||
Net increase (decrease) in net assets resulting from operations |
95,423,314 | 525,213,431 | 2,652,256 | 11,306,253 | ||||||||||||
|
|
|||||||||||||||
Distributions to shareholders |
(11,796,963 | ) | (29,458,618 | ) | (225,866 | ) | (316,682 | ) | ||||||||
|
|
|||||||||||||||
Capital share transactions: (Note 2) |
(517,196,033 | ) | (453,931,621 | ) | 13,335,299 | 12,051,367 | ||||||||||
|
|
|||||||||||||||
Net increase (decrease) in net assets |
(433,569,682 | ) | 41,823,192 | 15,761,689 | 23,040,938 | |||||||||||
Net assets: |
||||||||||||||||
Beginning of period |
1,353,406,517 | 1,311,583,325 | 36,759,134 | 13,718,196 | ||||||||||||
|
|
|||||||||||||||
End of Period |
$ | 919,836,835 | $ | 1,353,406,517 | $ | 52,520,823 | $ | 36,759,134 | ||||||||
|
|
108 |
Semiannual Report | The accompanying notes are an integral part of these financial statements. |
franklintempleton.com |
FRANKLIN TEMPLETON ETF TRUST
FINANCIAL STATEMENTS
Statements of Changes in Net Assets (continued)
Franklin LibertyQ U.S. Small Cap Equity ETF |
||||||||
Six Months
Ended September 30, 2021 (unaudited) |
Year Ended March 31, 2021 |
|||||||
Increase (decrease) in net assets: |
| |||||||
Operations: |
||||||||
Net investment income |
$ | 94,336 | $ | 134,659 | ||||
Net realized gain (loss) |
614,239 | 255,383 | ||||||
Net change in unrealized appreciation (depreciation) |
(97,522 | ) | 7,366,599 | |||||
|
|
|||||||
Net increase (decrease) in net assets resulting from operations |
611,053 | 7,756,641 | ||||||
|
|
|||||||
Distributions to shareholders |
(64,561 | ) | (167,502 | ) | ||||
|
|
|||||||
Capital share transactions: (Note 2) |
3,694,206 | (6,285,768 | ) | |||||
|
|
|||||||
Net increase (decrease) in net assets |
4,240,698 | 1,303,371 | ||||||
Net assets: |
||||||||
Beginning of period |
14,613,047 | 13,309,676 | ||||||
|
|
|||||||
End of Period |
$ | 18,853,745 | $ | 14,613,047 | ||||
|
|
franklintempleton.com |
The accompanying notes are an integral part of these financial statements. | Semiannual Report |
109 |
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). Each of the Funds are an exchange traded fund (ETF) and seek to provide the investment results that closely correspond, before fees and expenses, to the performance of each Fund’s corresponding underlying index.
The following summarizes the Funds’ significant accounting policies.
a. Financial Instrument Valuation
The Funds’ 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 Funds calculate the net asset value (NAV) per share as of 4 p.m. Eastern time each day the New York Stock Exchange (NYSE) is open for trading. Under compliance policies and procedures approved by the Trust’s Board of Trustees (the Board), the Funds’ administrator has responsibility for oversight of valuation, including leading the cross-functional Valuation Committee (VC).
The Funds may utilize independent pricing services, quotations from securities and financial instrument dealers, and other market sources to determine fair value.
Equity securities, 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 Funds have procedures to determine the fair value of financial instruments for which market prices are not reliable or readily available. Under these procedures, the Funds primarily employ a market-based approach which may use related or comparable assets or liabilities, recent transactions, market multiples, book values, and other relevant information for the investment to determine the fair value of the investment. An income-based valuation approach may also be used in which the anticipated future cash flows of the investment are discounted to calculate fair value. Discounts may also be applied due to the nature or duration of any restrictions on the disposition of the investments. Due to the inherent uncertainty of valuations of such investments, the fair values may differ significantly from the values that would have been used had an active market existed.
Trading in securities on foreign securities stock exchanges and OTC markets may be completed before 4 p.m. Eastern time. In addition, trading in certain foreign markets may not take place on every Funds’ business day. Occasionally, events occur between the time at which trading in a foreign security is completed and 4 p.m. Eastern time that might call into question the reliability of the value of a portfolio security held by the Fund. As a result, differences may arise between the value of the Funds’ portfolio securities as determined at the foreign market close and the latest indications of value at 4 p.m. Eastern time. In order to minimize the potential for these differences, an independent pricing service may be used to adjust the Fund’s portfolio securities to the latest indications of fair value at 4 p.m. Eastern time on September 30, 2021. At September 30, 2021, certain securities may have been fair valued using these procedures, in which case the securities were categorized as Level 2 inputs within the fair value hierarchy (referred to as “market level fair value”).
When the last day of the reporting period is a non-business day, certain foreign markets may be open on those days that the Funds’ NAV is not calculated, which could result in
110 | Semiannual Report | franklintempleton.com |
FRANKLIN TEMPLETON ETF TRUST
NOTES TO FINANCIAL STATEMENTS (UNAUDITED)
1. Organization and Significant Accounting Policies (continued)
a. Financial Instrument Valuation (continued)
differences between the value of the Funds’ portfolio securities on the last business day and the last calendar day of the reporting period. Any significant security valuation changes due to an open foreign market are adjusted and reflected by the Funds for financial reporting purposes.
b. Foreign Currency Translation
Portfolio securities and other assets and liabilities denominated in foreign currencies are translated into U.S. dollars based on the exchange rate of such currencies against U.S. dollars on the date of valuation. The Funds may enter into foreign currency exchange contracts to facilitate transactions denominated in a foreign currency. Purchases and sales of securities, income and expense items denominated in foreign currencies are translated into U.S. dollars at the exchange rate in effect on the transaction date. Portfolio securities and assets and liabilities denominated in foreign currencies contain risks that those currencies will decline in value relative to the U.S. dollar. Occasionally, events may impact the availability or reliability of foreign exchange rates used to convert the U.S. dollar equivalent value. If such an event occurs, the foreign exchange rate will be valued at fair value using procedures established and approved by the Board.
The Funds do not separately report the effect of changes in foreign exchange rates from changes in market prices on securities held. Such changes are included in net realized and unrealized gain or loss from investments in the Statements of Operations.
Realized foreign exchange gains or losses arise from sales of foreign currencies, currency gains or losses realized between the trade and settlement dates on securities transactions and the difference between the recorded amounts of dividends, interest, and foreign withholding taxes and the U.S. dollar equivalent of the amounts actually received or paid. Net unrealized foreign exchange gains and losses arise from changes in foreign exchange rates on foreign denominated assets and liabilities other than investments in securities held at the end of the reporting period.
c. Derivative Financial Instruments
Certain or all Funds invested in derivative financial instruments in order to manage risk or gain exposure to various other investments or markets. Derivatives are financial contracts based on an underlying or notional amount, require
no initial investment or an initial net investment that is smaller than would normally be required to have a similar response to changes in market factors, and require or permit net settlement. Derivatives contain various risks including the potential inability of the counterparty to fulfill their obligations under the terms of the contract, the potential for an illiquid secondary market, and/or the potential for market movements which expose the Fund to gains or losses in excess of the amounts shown in the Statements of Assets and Liabilities. Realized gain and loss and unrealized appreciation and depreciation on these contracts for the period are included in the Statements of Operations.
Derivative counterparty credit risk is managed through a formal evaluation of the creditworthiness of all potential counterparties. Certain or all Funds attempt to reduce their exposure to counterparty credit risk on OTC derivatives, whenever possible, by entering into International Swaps and Derivatives Association (ISDA) master agreements with certain counterparties. These agreements contain various provisions, including but not limited to collateral requirements, events of default, or early termination. Termination events applicable to the counterparty include certain deteriorations in the credit quality of the counterparty.
Termination events applicable to the Funds include failure of the Funds to maintain certain net asset levels and/or limit the decline in net assets over various periods of time. In the event of default or early termination, the ISDA master agreement gives the non-defaulting party the right to net and close-out all transactions traded, whether or not arising under the ISDA agreement, to one net amount payable by one counterparty to the other. However, absent an event of default or early termination, OTC derivative assets and liabilities are presented gross and not offset in the Statements of Assets and Liabilities. Early termination by the counterparty may result in an immediate payment by the Funds of any net liability owed to that counterparty under the ISDA agreement.
Collateral requirements differ by type of derivative. Collateral terms are contract specific for OTC derivatives. For OTC derivatives traded under an ISDA master agreement, posting of collateral is required by either the Fund or the applicable counterparty if the total net exposure of all OTC derivatives with the applicable counterparty exceeds the minimum transfer amount, which typically ranges from $100,000 to $250,000, and can vary depending on the counterparty and the type of agreement. Generally, collateral is determined at the close of Fund business each day and any additional collateral required due to changes in derivative values may
franklintempleton.com |
Semiannual Report |
111 |
FRANKLIN TEMPLETON ETF TRUST
NOTES TO FINANCIAL STATEMENTS (UNAUDITED)
1. Organization and Significant Accounting Policies (continued)
c. Derivative Financial Instruments (continued)
be delivered by the Fund or the counterparty the next business day, or within a few business days. Collateral pledged and/or received by the Fund, if any, is held in segregated accounts with the Fund’s custodian/counterparty broker and can be in the form of cash and/or securities. Unrestricted cash may be invested according to the Funds’ investment objectives. To the extent that the amounts due to the Fund from its counterparties are not subject to collateralization or are not fully collateralized, the Fund bears the risk of loss from counterparty non-performance.
Certain or all Funds entered into exchange traded futures contracts primarily to manage and/or gain exposure to equity price risk. A futures contract is an agreement between the Fund and a counterparty to buy or sell an asset at a specified price on a future date. Required initial margins are pledged by the Fund, and the daily change in fair value is accounted for as a variation margin payable or receivable in the Statements of Assets and Liabilities.
Certain or all Funds entered into OTC forward exchange contracts primarily to manage and/or gain exposure to certain foreign currencies. A forward exchange contract is an agreement between the Fund and a counterparty to buy or sell a foreign currency at a specific exchange rate on a future date.
See Note 8 regarding other derivative information.
d. Securities Lending
Certain or all Funds participate in an agency based securities lending program to earn additional income. The Fund receives cash collateral against the loaned securities in an amount equal to at least 102% of the fair value of the loaned securities. Collateral is maintained over the life of the loan in an amount not less than 100% of the fair value of loaned securities, as determined at the close of Fund business each day; any additional collateral required due to changes in security values is delivered to the Fund on the next business day. The collateral is deposited into a joint cash account with other funds and is used to invest in a money market fund managed by Franklin Advisers, Inc., an affiliate of the Funds. These securities received as collateral are held in segregated accounts with the Funds’ custodian. The Fund cannot repledge or resell these securities received as collateral. As such, the non-cash collateral is excluded from the Statements of Assets and Liabilities. The Fund may receive
income from the investment of cash collateral, in addition to lending fees and rebates paid by the borrower. Income from securities loaned, net of fees paid to the securities lending agent and/or third-party vendor, is reported separately in the Statements of Operations. The Fund bears the market risk with respect to the collateral investment, securities loaned, and the risk that the agent may default on its obligations to the Fund. If the borrower defaults on its obligation to return the securities loaned, the Fund has the right to repurchase the securities in the open market using the collateral received. The securities lending agent has agreed to indemnify the Fund in the event of default by a third party borrower.
e. Income and Deferred Taxes
It is each Fund’s policy to qualify as a regulated investment company under the Internal Revenue Code. Each Fund intends to distribute to shareholders substantially all of its taxable income and net realized gains to relieve it from federal income and excise taxes. As a result, no provision for U.S. federal income taxes is required.
The Funds may be subject to foreign taxation related to income received, capital gains on the sale of securities and certain foreign currency transactions in the foreign jurisdictions in which the Funds invest. Foreign taxes, if any, are recorded based on the tax regulations and rates that exist in the foreign markets in which the Funds invest. When a capital gain tax is determined to apply, certain or all Funds record an estimated deferred tax liability in an amount that would be payable if the securities were disposed of on the valuation date.
Each Fund may recognize an income tax liability related to its uncertain tax positions under U.S. GAAP when the uncertain tax position has a less than 50% probability that it will be sustained upon examination by the tax authorities based on its technical merits. As of September 30, 2021, each Fund has determined that no tax liability is required in its financial statements related to uncertain tax positions for any open tax years (or expected to be taken in future tax years). Open tax years are those that remain subject to examination and are based on the statute of limitations in each jurisdiction in which the Fund invests.
f. Security Transactions, Investment Income, Expenses and Distributions
Security transactions are accounted for on trade date. Realized gains and losses on security transactions are determined on a specific identification basis. Interest Income and estimated expenses are accrued daily. Dividend income
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FRANKLIN TEMPLETON ETF TRUST
NOTES TO FINANCIAL STATEMENTS (UNAUDITED)
1. Organization and Significant Accounting Policies (continued)
f. Security Transactions, Investment Income, Expenses and Distributions (continued)
is recorded on the ex-dividend date except for certain dividends from securities where the dividend rate is not available. In such cases, the dividend is recorded as soon as the information is received by the Funds. Distributions to shareholders are recorded on the ex-dividend date. Distributable earnings are determined according to income tax regulations (tax basis) and may differ from earnings recorded in accordance with U.S. GAAP. These differences may be permanent or temporary. Permanent differences are reclassified among capital accounts to reflect their tax character. These reclassifications have no impact on net assets or the results of operations. Temporary differences are not reclassified, as they may reverse in subsequent periods.
Common expenses incurred by the Trust are allocated among the Funds based on the ratio of net assets of each Fund to the combined net assets of the Trust. Certain Fund specific expenses are allocated directly to the Fund that incurred the expense. These expenses are paid by the
Funds or by the investment manager, as applicable, according to the terms of the unified management fee agreement.
g. Accounting Estimates
The preparation of financial statements in accordance with U.S. GAAP requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities at the date of the financial statements and the amounts of income and expenses during the reporting period. Actual results could differ from those estimates.
h. Guarantees and Indemnifications
Under the Trust’s organizational documents, its officers and trustees are indemnified by the Trust against certain liabilities arising out of the performance of their duties to the Trust. Additionally, in the normal course of business, the Trust, on behalf of the Funds, enters into contracts with service providers that contain general indemnification clauses. The Trust’s maximum exposure under these arrangements is unknown as this would involve future claims that may be made against the Trust that have not yet occurred. Currently, the Trust expects the risk of loss to be remote.
2. Shares of Beneficial Interest
Shares of the Funds are issued and redeemed at their respective NAV only in aggregations of a specified number of shares or multiples thereof (Creation Units). Only certain large institutional investors (Authorized Participants) may engage in creation or redemption transactions directly with the Funds. Once created, shares of the Funds generally trade in the secondary market in amounts less than one Creation Unit. The market price of the Funds’ shares will be based on the price in the secondary market which may be at, above or below the most recent NAV. Creation Units may be issued and redeemed in exchange for a designated portfolio of securities and/or cash (which may include cash in lieu of certain securities).
Authorized participants pay a standard transaction fee to the shareholder servicing agent when purchasing or redeeming Creation Units of the Funds regardless of the number of Creation Units that are being created or redeemed on the same day by the Authorized Participant. The standard transaction fee is imposed to offset transfer and other transaction costs associated with the issuance and redemption of Creation Units and is not charged to or paid by the Funds.
In addition, for cash Creation Unit transactions, a variable fee for creation transactions and redemption transactions may be charged to the Authorized Participant to cover certain brokerage, tax, foreign exchange, execution, market impact and other costs and expenses related to the execution of trades. Variable fees, if any, are included in capital share transactions in the Statements of Changes in Net Assets.
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FRANKLIN TEMPLETON ETF TRUST
NOTES TO FINANCIAL STATEMENTS (UNAUDITED)
2. Shares of Beneficial Interest (continued)
At September 30, 2021, there were an unlimited number of shares authorized (without par value). Transactions in the Funds’ shares were as follows:
Franklin LibertyQ Emerging Markets ETF | ||||||||||||||||||||
Six Months Ended September 30, 2021 |
Year Ended March 31, 2021 |
|||||||||||||||||||
Shares | Amount | Shares | Amount | |||||||||||||||||
Shares sold |
— | $ | — | — | $ | 34,086 | ||||||||||||||
Shares redeemed |
— | — | (1,800,000 | ) | (42,051,324 | ) | ||||||||||||||
|
|
|||||||||||||||||||
Net increase (decrease) |
— | $ | — | (1,800,000 | ) | $ | (42,017,238 | ) | ||||||||||||
|
|
|||||||||||||||||||
Franklin LibertyQ Global Equity ETF | ||||||||||||||||||||
Six Months Ended September 30, 2021 |
Year Ended March 31, 2021 |
|||||||||||||||||||
Shares | Amount | Shares | Amount | |||||||||||||||||
Shares sold |
— | $ | — | — | $ | — | ||||||||||||||
Shares redeemed |
— | — | (200,000 | ) | (5,657,628 | ) | ||||||||||||||
|
|
|||||||||||||||||||
Net increase (decrease) |
— | $ | — | (200,000 | ) | $ | (5,657,628 | ) | ||||||||||||
|
|
|||||||||||||||||||
Franklin LibertyQ International Equity Hedged ETF | ||||||||||||||||||||
Six Months Ended September 30, 2021 |
Year Ended March 31, 2021 |
|||||||||||||||||||
Shares | Amount | Shares | Amount | |||||||||||||||||
Shares sold |
100,000 | $ | 2,752,200 | 100,000 | $ | 2,584,649 | ||||||||||||||
|
|
|||||||||||||||||||
Net increase (decrease) |
100,000 | $ | 2,752,200 | 100,000 | $ | 2,584,649 | ||||||||||||||
|
|
|||||||||||||||||||
Franklin LibertyQ U.S. Equity ETF | ||||||||||||||||||||
Six Months Ended September 30, 2021 |
Year Ended March 31, 2021 |
|||||||||||||||||||
Shares | Amount | Shares | Amount | |||||||||||||||||
Shares sold |
4,650,000 | $ | 197,972,431 | 11,400,000 | $ | 412,925,317 | ||||||||||||||
Shares redeemed |
(16,650,000 | ) | (715,168,464 | ) | (25,100,000 | ) | (866,856,938 | ) | ||||||||||||
|
|
|||||||||||||||||||
Net increase (decrease) |
(12,000,000 | ) | $ | (517,196,033 | ) | (13,700,000 | ) | $ | (453,931,621 | ) | ||||||||||
|
|
|||||||||||||||||||
Franklin LibertyQ U.S. Mid Cap Equity ETF | ||||||||||||||||||||
Six Months Ended September 30, 2021 |
Year Ended March 31, 2021 |
|||||||||||||||||||
Shares | Amount | Shares | Amount | |||||||||||||||||
Shares sold |
450,000 | $ | 19,936,128 | 400,000 | $ | 13,938,821 | ||||||||||||||
Shares redeemed |
(150,000 | ) | (6,600,829 | ) | (50,000 | ) | (1,887,454 | ) | ||||||||||||
|
|
|||||||||||||||||||
Net increase (decrease) |
300,000 | $ | 13,335,299 | 350,000 | $ | 12,051,367 | ||||||||||||||
|
|
114 | Semiannual Report | franklintempleton.com |
FRANKLIN TEMPLETON ETF TRUST
NOTES TO FINANCIAL STATEMENTS (UNAUDITED)
2. Shares of Beneficial Interest (continued)
Franklin LibertyQ U.S. Small Cap Equity ETF | ||||||||||||||||||||
Six Months Ended September 30, 2021 |
Year Ended March 31, 2021 |
|||||||||||||||||||
Shares | Amount | Shares | Amount | |||||||||||||||||
Shares sold |
150,000 | $ | 5,610,620 | 100,000 | $ | 2,973,184 | ||||||||||||||
Shares redeemed |
(50,000 | ) | (1,916,414 | ) | (350,000 | ) | (9,258,952 | ) | ||||||||||||
|
|
|||||||||||||||||||
Net increase (decrease) |
100,000 | $ | 3,694,206 | (250,000 | ) | $ | (6,285,768 | ) | ||||||||||||
|
|
3. Transactions with Affiliates
Franklin Resources, Inc. is the holding company for various subsidiaries that together are referred to as Franklin Templeton. Certain officers and trustees of the Funds are also officers and/or directors of the following subsidiaries:
Subsidiary | Affiliation | |
Franklin Advisers, Inc. (Advisers) |
Investment manager | |
Franklin Advisory Services, LLC (FASL) |
Investment manager | |
Franklin Templeton Services, LLC (FT Services) |
Administrative manager | |
Franklin Distributors, LLC (Distributors) (formerly Franklin Templeton Distributors, Inc.) |
Principal underwriter |
a. Management Fees
The Funds pay a unified management fee to Advisers whereby Advisers has agreed to reimburse the Funds’ acquired fund fees and expenses (if any) and pay all of the ordinary operating expenses of the Funds, including custody, transfer agency, and Trustee fees and expenses, among others, but excluding payments under the Funds’ Rule 12b-1 plan (if any), brokerage expenses (including any costs incidental to transactions in portfolio securities or instruments), taxes, interest (including borrowing costs and dividend expenses on securities sold short and overdraft charges), litigation expenses (including litigation to which the Trust or a Fund may be a party and indemnification of the Trustees and officers with respect thereto), and other non-routine or extraordinary expenses. The fees are based on the average daily net assets of each of the Funds as follows:
Annualized Fee Rate | ||
Franklin LibertyQ Emerging Markets ETF |
0.45% | |
Franklin LibertyQ Global Dividend ETF |
0.45% | |
Franklin LibertyQ Global Equity ETF |
0.34% | |
Franklin LibertyQ International Equity Hedged ETF |
0.40% | |
Franklin LibertyQ U.S. Equity ETF |
0.15% | |
Franklin LibertyQ U.S. Mid Cap Equity ETF |
0.30% | |
Franklin LibertyQ U.S. Small Cap Equity ETF |
0.35% |
b. Administrative Fees
Under an agreement with Advisers, FT Services provides administrative services to the Funds. The fee is paid by Advisers based on the Funds’ average daily net assets, and is not an additional expense of the Funds.
c. Investments in Affiliated Management Investment Companies
Certain or all Funds invest in one or more affiliated management investment companies. As defined in the 1940 Act, an investment is deemed to be a “Controlled Affiliate” of a fund when a fund owns, either directly or indirectly, 25% or more of the
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FRANKLIN TEMPLETON ETF TRUST
NOTES TO FINANCIAL STATEMENTS (UNAUDITED)
3. Transactions with Affiliates (continued)
c. Investments in Affiliated Management Investment Companies (continued)
affiliated fund’s outstanding shares or has the power to exercise control over management or policies of such fund. The Funds do not invest for purposes of exercising a controlling influence over the management or policies. Management fees paid by the Funds are waived on assets invested in the affiliated management investment companies, as noted in the Statements of Operations, in an amount not to exceed the management and administrative fees paid directly or indirectly by each affiliate. During the period ended September 30, 2021, investments in affiliated management investment companies were as follows:
Value at of Period |
Purchases | Sales |
Realized Gain |
Net Change in (Depreciation) |
Value at Period |
Number Period |
Investment Income |
|||||||||||||||||||||||||
Franklin LibertyQ U.S. Equity ETF | Income from securities loaned |
|||||||||||||||||||||||||||||||
Non-Controlled Affiliates | ||||||||||||||||||||||||||||||||
|
|
|||||||||||||||||||||||||||||||
Institutional Fiduciary Trust Money Market Portfolio 0.01% |
$ | 735,495 | $ | 8,246,742 | $ | (8,101,212 | ) | $ | — | $ | — | $ | 881,025 | 881,025 | $ | — | ||||||||||||||||
|
|
|||||||||||||||||||||||||||||||
Franklin LibertyQ U.S. Mid Cap Equity ETF |
Income from securities loaned |
|||||||||||||||||||||||||||||||
Non-Controlled Affiliates | ||||||||||||||||||||||||||||||||
|
|
|||||||||||||||||||||||||||||||
Institutional Fiduciary Trust Money Market Portfolio 0.01% |
$6,075 | $ | 2,877,428 | $ | (2,587,598 | ) | $ | — | $ | — | $ | 295,905 | 295,905 | $ | — | |||||||||||||||||
|
|
|||||||||||||||||||||||||||||||
Franklin LibertyQ U.S. Small
Cap Equity ETF |
Income from securities loaned |
|||||||||||||||||||||||||||||||
Non-Controlled Affiliates | ||||||||||||||||||||||||||||||||
|
|
|||||||||||||||||||||||||||||||
Institutional Fiduciary Trust Money Market Portfolio 0.01% |
$ | 209,649 | $ | 6,611,270 | $ | (6,451,923 | ) | $ | — | $ | — | $ | 368,996 | 368,996 | $ | — | ||||||||||||||||
|
|
d. Other Affiliated Transactions
At September 30, 2021, the shares of Franklin LibertyQ U.S. Equity ETF were owned by the following entities:
Shares |
Percentage of Outstanding Sharesa |
|||||||
Franklin LibertyQ U.S. Equity ETF | ||||||||
Franklin Moderate Allocation Fund |
1,804,578 | 8.3% | ||||||
Franklin Growth Allocation Fund |
1,856,003 | 8.5% | ||||||
Franklin 529 Portfolios |
7,675,950 | 35.2% | ||||||
|
|
|||||||
11,336,531 | 52.0% | |||||||
|
|
aInvestment activities of significant shareholders could have a material impact on the Funds.
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FRANKLIN TEMPLETON ETF TRUST
NOTES TO FINANCIAL STATEMENTS (UNAUDITED)
4. Income Taxes
For tax purposes, capital losses may be carried over to offset future capital gains, if any. At March 31, 2021, the capital loss carryforwards were as follows:
Franklin LibertyQ Emerging Markets ETF |
Franklin LibertyQ Global Dividend ETF |
Franklin LibertyQ Global Equity ETF |
Franklin LibertyQ International Equity Hedged ETF |
|||||||||||||
Capital loss carryforwards not subject to expiration: | ||||||||||||||||
Short term |
$ | 17,040,699 | $ | 474,389 | $ | 367,777 | $ | 402,906 | ||||||||
Long term |
13,874,667 | 1,004,341 | 422,506 | 802,614 | ||||||||||||
|
|
|||||||||||||||
Total capital loss carryforwards |
$ | 30,915,366 | $ | 1,478,730 | $ | 790,283 | $ | 1,205,520 | ||||||||
|
|
|||||||||||||||
Franklin LibertyQ U.S Equity ETF |
Franklin LibertyQ U.S. Mid Cap Equity ETF |
Franklin LibertyQ U.S. Small Cap Equity ETF |
||||||||||||||
Capital loss carryforwards not subject to expiration: | ||||||||||||||||
Short term |
$ | 45,674,804 | $ | 265,363 | $ | 635,288 | ||||||||||
Long term |
48,033,544 | 347,479 | 944,858 | |||||||||||||
|
|
|||||||||||||||
Total capital loss carryforwards |
$ | 93,708,348 | $ | 612,842 | $ | 1,580,146 | ||||||||||
|
|
At September 30, 2021, the cost of investments, net unrealized appreciation (depreciation) and undistributed ordinary income for income tax purposes were as follows:
Franklin LibertyQ Emerging Markets ETF |
Franklin LibertyQ Global Dividend ETF |
Franklin LibertyQ Global Equity ETF |
Franklin LibertyQ International Equity Hedged ETF |
|||||||||||||
Cost of investments | $ | 21,139,569 | $ | 23,610,290 | $ | 12,599,867 | $ | 14,598,052 | ||||||||
Unrealized appreciation |
$ | 5,629,359 | $ | 4,372,543 | $ | 3,521,155 | $ | 2,397,865 | ||||||||
Unrealized depreciation |
(2,138,781 | ) | (704,872 | ) | (494,743 | ) | (387,142 | ) | ||||||||
|
|
|||||||||||||||
Net unrealized appreciation (depreciation) |
$ | 3,490,578 | $ | 3,667,671 | $ | 3,026,412 | $ | 2,010,723 | ||||||||
|
|
|||||||||||||||
Franklin LibertyQ U.S. Equity ETF |
Franklin LibertyQ U.S. Mid Cap Equity ETF |
Franklin LibertyQ U.S. Small Cap Equity ETF |
||||||||||||||
Cost of investments |
$ | 816,185,108 | $ | 44,136,415 | $ | 16,794,295 | ||||||||||
|
|
|||||||||||||||
Unrealized appreciation |
$ | 127,744,737 | $ | 9,218,806 | $ | 3,197,847 | ||||||||||
Unrealized depreciation |
(24,484,800 | ) | (658,834 | ) | (787,306 | ) | ||||||||||
|
|
|||||||||||||||
Net unrealized appreciation (depreciation) |
$ | 103,259,937 | $ | 8,559,972 | $ | 2,410,541 | ||||||||||
|
|
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.
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117 |
FRANKLIN TEMPLETON ETF TRUST
NOTES TO FINANCIAL STATEMENTS (UNAUDITED)
5. Investment Transactions
Purchases and sales of investments (excluding short term securities and in-kind transactions, if any) for the period ended September 30, 2021, were as follows:
Franklin LibertyQ Emerging Markets ETF |
Franklin LibertyQ Global Dividend ETF |
Franklin LibertyQ Global Equity ETF |
Franklin LibertyQ International Equity Hedged ETF |
|||||||||||||
Purchases |
$ | 3,847,430 | $ | 4,397,254 | $ | 1,905,576 | $ | 3,000,627 | ||||||||
Sales |
$ | 3,407,391 | $ | 4,549,663 | $ | 1,828,706 | $ | 2,460,365 | ||||||||
Franklin LibertyQ U.S. Equity ETF |
Franklin LibertyQ ETF |
Franklin LibertyQ ETF |
||||||||||||||
Purchases |
$ | 136,198,749 | $ | 5,832,637 | $ | 3,181,551 | ||||||||||
Sales |
$ | 134,052,262 | $ | 5,800,980 | $ | 3,106,291 |
In-kind transactions associated with creation and redemptions for the period ended September 30, 2021, were as follows:
Franklin LibertyQ Emerging Markets ETF |
Franklin LibertyQ Global Dividend ETF |
Franklin LibertyQ ETF |
Franklin LibertyQ International Equity Hedged ETF |
|||||||||||||
Cost of Securities Received |
$ | — | $ | — | $ | — | $ | 2,722,375 | ||||||||
Value of Securities Delivereda |
$ | — | $ | — | $ | — | $ | — | ||||||||
Franklin LibertyQ ETF |
Franklin LibertyQ U.S. Mid Cap Equity ETF |
Franklin LibertyQ U.S. Small Cap Equity ETF |
||||||||||||||
Cost of Securities Received |
$ | 194,141,580 | $ | 19,851,328 | $ | 5,602,158 | ||||||||||
Value of Securities Delivereda |
$ | 711,950,740 | $ | 6,605,933 | $ | 1,940,731 |
aRealized gains and losses from in-kind redemptions, as shown on the Statement of Operations, are not recognized by the Funds for tax purposes.
At September 30, 2021, in connection with securities lending transactions, certain or all Funds loaned investments and received cash collateral as follows:
Franklin LibertyQ ETF |
Franklin LibertyQ U.S. Mid Cap Equity ETF |
Franklin LibertyQ Equity ETF |
|
|||||||||||||
Securities Lending transactionsa: | ||||||||||||||||
Equity investmentsb |
$ | 881,025 | $ | 295,905 | $ | 368,996 |
aThe agreements can be terminated at any time.
bThe gross amount of recognized liability for such transactions is included in payable upon return of securities loaned in the Statements of Assets and Liabilities.
6. Concentration of Risk
Investing in foreign securities may include certain risks and considerations not typically associated with investing in U.S. securities, such as fluctuating currency values and changing local, regional and global economic, political and social conditions, which may result in greater market volatility. Political and financial uncertainty in many foreign regions may increase market volatility and the economic risk of investing in foreign securities. In addition, certain foreign securities may
not be as liquid as U.S. securities.
The United States and other nations have imposed and could impose additional sanctions on certain issuers in Russia due to regional conflicts. These sanctions could result in the devaluation of Russia’s currency, a downgrade in Russian issuers’ credit
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FRANKLIN TEMPLETON ETF TRUST
NOTES TO FINANCIAL STATEMENTS (UNAUDITED)
6. Concentration of Risk (continued)
ratings, or a decline in the value and liquidity of Russian stocks or other securities. Such sanctions could also adversely affect Russia’s economy. Certain or all Funds may be prohibited from investing in securities issued by companies subject to such sanctions. In addition, if the Fund holds the securities of an issuer that is subject to such sanctions, an immediate freeze of that issuer’s securities could result, impairing the ability of the Fund to buy, sell, receive or deliver those securities. There is also the risk that countermeasures could be taken by Russia’s government, which could involve the seizure of the Fund’s assets. These risks could affect the value of the Funds’ portfolio. While the Funds hold securities of certain issuers impacted by the sanctions, existing investments do not presently violate the applicable terms and conditions of the sanctions. The sanctions currently do not affect the Fund’s ability to sell these securities. At September 30, 2021, Franklin LibertyQ Emerging Markets ETF had 11.0% of its net assets invested in Russia. The remaining Funds in the Trust did not have significant investment in Russia.
7. Novel Coronavirus Pandemic
The global outbreak of the novel coronavirus disease, known as COVID-19, has caused adverse effects on many companies, sectors, nations, regions and the markets in general, and may continue for an unpredictable duration. The effects of this pandemic may materially impact the value and performance of the Funds, their ability to buy and sell fund investments at appropriate valuations and their ability to achieve their investment objectives.
8. Other Derivative Information
At September 30, 2021, the Funds’ investments in derivative contracts are reflected in the Statements of Assets and Liabilities as follows
Asset Derivatives |
Liability Derivatives |
|||||||||||
Statements
of Assets and Liabilities Location |
Fair Value | Statements
of Assets and Liabilities Location |
Fair Value | |||||||||
Franklin LibertyQ Emerging Markets ETF |
||||||||||||
Equity contracts |
Variation margin on futures contracts |
$ | — |
Variation margin on futures contracts |
$ | 5,444 | a | |||||
|
|
|
|
|||||||||
Franklin LibertyQ Global Dividend ETF |
||||||||||||
Equity contracts |
Variation margin on futures contracts |
$ | — |
Variation margin on futures contracts |
$ | 3,101 | a | |||||
|
|
|
|
|||||||||
Franklin LibertyQ Global Equity ETF |
||||||||||||
Equity contracts |
Variation margin on futures contracts |
$ | — |
Variation margin on futures contracts |
$ | 1,034 | a | |||||
|
|
|
|
|||||||||
Franklin LibertyQ International Equity Hedged ETF |
||||||||||||
Equity contracts |
Variation margin on futures contracts |
$ | — |
Variation margin on futures contracts |
$ | 5,257 | a | |||||
Foreign exchange contracts |
Unrealized appreciation on OTC forward exchange contracts |
286,419 |
Unrealized depreciation on OTC forward exchange contracts |
372 | ||||||||
|
|
|
|
|||||||||
$ | 286,419 | $ | 5,629 | |||||||||
|
|
|
|
|||||||||
Franklin LibertyQ U.S. Equity ETF | ||||||||||||
Equity contracts |
Variation margin on futures contracts |
$ | — |
Variation margin on futures contracts |
$ | 48,881 | a | |||||
|
|
|
|
|||||||||
Totals |
$ | 286,419 | $ | 64,089 | ||||||||
|
|
|
|
aThis amount reflects the cumulative appreciation (depreciation) of futures contracts as reported in the Statement of Investments. Only the variation margin receivable/payable at period end is separately reported within the Statements of Assets and Liabilities. Prior variation margin movements were recorded to cash upon receipt or payment.
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NOTES TO FINANCIAL STATEMENTS (UNAUDITED)
8. Other Derivative Information (continued)
For the period ended September 30, 2021, the effect of derivative contracts in the Funds’ Statements of Operations was as follows:
Derivative
Contracts Not Accounted for as Hedging Instruments |
Statements
of Operations Locations |
Net Realized Gain (Loss) for the Period |
Statements
of Operations Locations |
Net Change in Unrealized Appreciation (Depreciation) for the Period |
||||||||
Franklin LibertyQ Emerging Markets ETF |
||||||||||||
Net realized gain (loss) from: |
Net
change in unrealized |
|||||||||||
Equity contract |
Futures contracts |
$ | (8,321 | ) |
Futures contracts |
$ | (5,617 | ) | ||||
|
|
|
|
|||||||||
Franklin LibertyQ Global Dividend ETF |
||||||||||||
Net realized gain (loss) from: |
Net
change in unrealized |
|||||||||||
Equity contract |
Futures contracts |
$ | 9,258 |
Futures contracts |
$ | (2,418 | ) | |||||
|
|
|
|
|||||||||
Franklin LibertyQ Global Equity ETF |
||||||||||||
Net realized gain (loss) from: |
Net
change in unrealized |
|||||||||||
Equity contract |
Futures contracts |
$ | 2,985 |
Futures contracts |
$ | (693 | ) | |||||
|
|
|
|
|||||||||
Franklin LibertyQ International Equity Hedged ETF |
||||||||||||
Net realized gain (loss) from: |
Net
change in unrealized |
|||||||||||
Equity contract |
Futures contracts |
$ | 5,102 |
Futures contracts |
$ | (5,257 | ) | |||||
Foreign exchange contracts |
Forward exchange contract |
$ | 441,719 |
Forward exchange contract |
$ | (51,654 | ) | |||||
|
|
|
|
|||||||||
Totals |
$ | 446,821 | $ | (56,911 | ) | |||||||
|
|
|
|
|||||||||
Franklin LibertyQ U.S. Equity ETF | ||||||||||||
Net realized gain (loss) from: |
Net
change in unrealized |
|||||||||||
Equity contract |
Futures contracts |
$ | 204,572 |
Futures contracts |
$ | (64,391 | ) | |||||
|
|
|
|
For the period ended September 30, 2021, the average month end notional amount of futures contracts and average month end contract value for forward exchange contracts were as follows:
Franklin LibertyQ ETF |
Franklin LibertyQ Global Dividend ETF |
Franklin LibertyQ ETF |
Franklin LibertyQ ETF |
|||||||||||||
Futures contracts |
$ | 121,694 | $ | 104,836 | $ | 36,476 | $ | 66,014 | ||||||||
Forward exchange contracts |
$ | — | $ | — | $ | — | $ | 46,972,939 | ||||||||
Franklin LibertyQ U.S. Equity ETF |
||||||||||||||||
Futures contracts |
$ | 1,510,394 | ||||||||||||||
Forward exchange contracts |
$ | — |
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NOTES TO FINANCIAL STATEMENTS (UNAUDITED)
8. Other Derivative Information (continued)
At September 30, 2021, the Funds’ OTC derivative assets and liabilities are as follows:
Gross and Net Amounts of Assets and Liabilities Presented in the Statements of Assets and Liabilities |
||||||||
Assetsa | Liabilitiesa | |||||||
Franklin LibertyQ International Equity Hedged ETF | ||||||||
Foreign exchange contracts |
$ | 286,419 | $ | 372 | ||||
|
|
aAbsent an event of default or early termination, OTC derivative assets and liabilities are presented gross and not offset in the Statements of Assets and Liabilities.
At September 30, 2021, the Funds’ OTC derivative assets, which may be offset against the Funds’ OTC derivative liabilities and collateral received from the counterparty, are as follows:
Amounts Not Offset in the Statements of Assets and Liabilities |
||||||||||||||||||||
Gross and Net Amounts of Assets Presented in the Statements of Assets and Liabilities |
Financial Instruments Available for Offset |
Financial Instruments Collateral Receiveda |
Cash Collateral Receiveda |
Net Amount (Not less than zero) |
||||||||||||||||
Franklin LibertyQ International Equity Hedged ETF |
||||||||||||||||||||
Counterparty | ||||||||||||||||||||
BOFA |
$ | 185,707 | $ | (270 | ) | $ | — | $ | — | $ | 185,437 | |||||||||
DBAB |
22,194 | (14 | ) | — | — | 22,180 | ||||||||||||||
HSBK |
22,575 | (16 | ) | — | — | 22,559 | ||||||||||||||
MSCO |
33,393 | (62 | ) | — | — | 33,331 | ||||||||||||||
UBS AG |
22,550 | (10 | ) | — | — | 22,540 | ||||||||||||||
|
|
|||||||||||||||||||
Total |
$ | 286,419 | $ | (372 | ) | $ | — | $ | — | $ | 286,047 | |||||||||
|
|
aIn some instances, the collateral amounts disclosed in the table above were adjusted due to the requirement to limit collateral amounts to avoid the effect of overcollateralization. Actual collateral received and/or pledged may be more than the amounts disclosed herein.
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NOTES TO FINANCIAL STATEMENTS (UNAUDITED)
8. Other Derivative Information (continued)
At September 30, 2021, the Funds’ OTC derivative liabilities, which may be offset against the Funds’ OTC derivative assets and collateral pledged to the counterparty, are as follows:
Amounts Not Offset in the Statements of Assets and Liabilities |
||||||||||||||||||||
Gross and Net Amounts of Liabilities Presented in the Statements of Assets and Liabilities |
Financial Instruments Available for Offset |
Financial Instruments Collateral Pledgeda |
Cash Collateral Pledgeda |
Net Amount (Not less than zero) |
||||||||||||||||
Franklin LibertyQ International Equity Hedged ETF |
||||||||||||||||||||
Counterparty | ||||||||||||||||||||
BOFA |
$ | 270 | $ | (270 | ) | $ | — | $ | — | $ | — | |||||||||
DBAB |
14 | (14 | ) | — | — | — | ||||||||||||||
HSBK |
16 | (16 | ) | — | — | — | ||||||||||||||
MSCO |
62 | (62 | ) | — | — | — | ||||||||||||||
UBS AG |
10 | (10 | ) | — | — | — | ||||||||||||||
|
|
|||||||||||||||||||
Total |
$ | 372 | $ | (372 | ) | $ | — | $ | — | $ | — | |||||||||
|
|
aIn some instances, the collateral amounts disclosed in the table above were adjusted due to the requirement to limit collateral amounts to avoid the effect of overcollateralization. Actual collateral received and/or pledged may be more than the amounts disclosed herein.
See Note 1(c) regarding derivative financial instruments.
9. Fair Value Measurements
The Funds follow a fair value hierarchy that distinguishes between market data obtained from independent sources (observable inputs) and the Funds’ own market assumptions (unobservable inputs). These inputs are used in determining the value of the Funds’ financial instruments and are summarized in the following fair value hierarchy:
• |
Level 1 – quoted prices in active markets for identical financial instruments |
• |
Level 2 – other significant observable inputs (including quoted prices for similar financial instruments, interest rates, prepayment speed, credit risk, etc.) |
• |
Level 3 – significant unobservable inputs (including the Funds’ own assumptions in determining the fair value of financial instruments) |
The input levels are not necessarily an indication of the risk or liquidity associated with financial instruments at that level.
A summary of inputs used as of September 30, 2021, in valuing the Funds’ assets and liabilities carried at fair value, is as follows:
Level 1 | Level 2 | Level 3 | Total | |||||||||||||
Franklin LibertyQ Emerging Markets ETF | ||||||||||||||||
Assets: | ||||||||||||||||
Investments in Securities:a |
| |||||||||||||||
Equity Investmentsb |
$ | 24,630,147 | $ | — | $ | — | $ | 24,630,147 | ||||||||
|
|
|||||||||||||||
Liabilities: | ||||||||||||||||
Other Financial Instruments: |
||||||||||||||||
Futures Contracts |
$ | 5,444 | $ | — | $ | — | $ | 5,444 | ||||||||
|
|
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NOTES TO FINANCIAL STATEMENTS (UNAUDITED)
9. Fair Value Measurements (continued)
Level 1 | Level 2 | Level 3 | Total | |||||||||||||
Franklin LibertyQ Global Dividend ETF | ||||||||||||||||
Assets: | ||||||||||||||||
Investments in Securities:a |
| |||||||||||||||
Equity Investmentsb |
$ | 27,277,961 | $ | — | $ | — | $ | 27,277,961 | ||||||||
|
|
|||||||||||||||
Liabilities: | ||||||||||||||||
Other Financial Instruments: |
||||||||||||||||
Futures Contracts |
$ | 3,101 | $ | — | $ | — | $ | 3,101 | ||||||||
|
|
|||||||||||||||
Franklin LibertyQ Global Equity ETF | ||||||||||||||||
Assets: | ||||||||||||||||
Investments in Securities:a |
| |||||||||||||||
Equity Investmentsb |
$ | 15,626,279 | $ | — | $ | — | $ | 15,626,279 | ||||||||
|
|
|||||||||||||||
Liabilities: | ||||||||||||||||
Other Financial Instruments: |
||||||||||||||||
Futures Contracts |
$ | 1,034 | $ | — | $ | — | $ | 1,034 | ||||||||
|
|
|||||||||||||||
Franklin LibertyQ International Equity Hedged ETF | ||||||||||||||||
Assets: | ||||||||||||||||
Investments in Securities:a |
||||||||||||||||
Equity Investmentsb |
$ | 16,608,775 | $ | — | $ | — | $ | 16,608,775 | ||||||||
|
|
|||||||||||||||
Other Financial Instruments: |
||||||||||||||||
Forward Exchange Contracts |
$ | — | $ | 286,419 | $ | — | $ | 286,419 | ||||||||
|
|
|||||||||||||||
Liabilities: | ||||||||||||||||
Other Financial Instruments: |
||||||||||||||||
Forward Exchange Contracts |
$ | — | $ | 372 | $ | — | $ | 372 | ||||||||
Futures Contracts |
$ | 5,257 | $ | — | $ | — | $ | 5,257 | ||||||||
|
|
|||||||||||||||
Total Other Financial Instruments |
$ | 5,257 | $ | 372 | $ | — | $ | 5,629 | ||||||||
|
|
|||||||||||||||
Franklin LibertyQ U.S Equity ETF | ||||||||||||||||
Assets: | ||||||||||||||||
Investments in Securities:a |
||||||||||||||||
Equity Investmentsb |
$ | 918,564,020 | $ | — | $ | — | $ | 918,564,020 | ||||||||
Short-Term Investments |
$ | 881,025 | $ | — | $ | — | $ | 881,025 | ||||||||
|
|
|||||||||||||||
Total Investments in Securities |
$ | 919,445,045 | $ | — | $ | — | $ | 919,445,045 | ||||||||
|
|
|||||||||||||||
Liabilities: | ||||||||||||||||
Other Financial Instruments: |
||||||||||||||||
Futures Contracts |
$ | 48,881 | $ | — | $ | — | $ | 48,881 | ||||||||
|
|
|||||||||||||||
Franklin LibertyQ U.S Mid Cap Equity ETF | ||||||||||||||||
Assets: | ||||||||||||||||
Investments in Securities:a |
||||||||||||||||
Equity Investmentsb |
$ | 52,400,482 | $ | — | $ | — | $ | 52,400,482 | ||||||||
Short-Term Investments |
$ | 295,905 | $ | — | $ | — | $ | 295,905 | ||||||||
|
|
|||||||||||||||
Total Investments in Securities |
$ | 52,696,387 | $ | — | $ | — | $ | 52,696,387 | ||||||||
|
|
|||||||||||||||
Franklin LibertyQ U.S Small Cap Equity ETF | ||||||||||||||||
Assets: | ||||||||||||||||
Investments in Securities:a |
||||||||||||||||
Equity Investmentsb |
$ | 18,835,840 | $ | — | $ | — | $ | 18,835,840 | ||||||||
Short-Term Investments |
$ | 368,996 | $ | — | $ | — | $ | 368,996 | ||||||||
|
|
|||||||||||||||
Total Investments in Securities |
$ | 19,204,836 | $ | — | $ | — | $ | 19,204,836 | ||||||||
|
|
aFor detailed categories, see the accompanying Statement of Investments.
bIncludes common and preferred stocks.
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NOTES TO FINANCIAL STATEMENTS (UNAUDITED)
10. Subsequent Events
The Funds have evaluated subsequent events through the issuance of the financial statements and determined that no events have occurred that require disclosure.
Selected Portfolio | ||
ADR | American Depositary Receipt | |
ETF | Exchange Traded Fund | |
GDR | Global Depositary Receipt | |
IDR | International Depository Receipt | |
NVDR | Non-Voting Depositary Receipt | |
REIT | Real Estate Investment Trust |
Counterparty | ||
BOFA | Bank of America Corp. | |
DBAB | Deutsche Bank AG | |
HSBK | HSBC Bank PLC | |
MSCO | Morgan Stanley | |
UBSW | UBS AG |
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Tax information (unaudited)
By mid-February, tax information related to a shareholder’s proportionate share of distributions paid during the preceding calendar year will be received, if applicable. Please also refer to www.franklintempleton.com for per share tax information related to any distributions paid during the preceding calendar year. Shareholders are advised to consult with their tax advisors for further information on the treatment of these amounts on their tax returns.
The following tax information for the Funds is required to be furnished to shareholders with respect to the income earned and distributions paid during their fiscal year.
Under Section 853 of the Internal Revenue Code, the Funds below intend to elect to pass through to their shareholders the following amounts, or amounts as finally determined, of foreign taxes paid and foreign source income earned by the Funds during the fiscal year ended March 31, 2021:
Fund | Foreign Taxes Paid | Foreign Source Income Earned | ||||||
Franklin LibertyQ Emerging Markets ETF |
$ | 115,976 | $ | 942,230 | ||||
Franklin LibertyQ Global Dividend ETF |
$ | 43,763 | $ | 535,776 | ||||
Franklin LibertyQ INTL Equity Hedged ETF |
$ | 20,834 | $ | 308,563 |
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Board Approval of Investment Management Agreements
FRANKLIN TEMPLETON ETF TRUST
Franklin LibertyQ Emerging Markets ETF
Franklin LibertyQ Global Dividend ETF
Franklin LibertyQ Global Equity ETF
Franklin LibertyQ International Equity Hedged ETF
Franklin LibertyQ U.S. Equity ETF
Franklin LibertyQ U.S. Mid Cap Equity ETF
Franklin LibertyQ U.S. Small Cap Equity ETF
(each a Fund)
At a meeting held on May 26, 2021 (Meeting), the Board of Trustees (Board) of Franklin Templeton ETF Trust (Trust), including a majority of the trustees who are not “interested persons” as defined in the Investment Company Act of 1940 (Independent Trustees), reviewed and approved the continuance of the investment management agreement between Franklin Advisory Services, LLC (Manager) and the Trust, on behalf of each Fund (each a Management Agreement) for an additional one-year period. The Independent Trustees received advice from and met separately with Independent Trustee counsel in considering whether to approve the continuation of each Management Agreement. Although the Management Agreements for the Funds were considered at the same Board meeting, the Board considered the information provided to it about the Funds together and with respect to each Fund separately as the Board deemed appropriate.
In considering the continuation of each Management Agreement, the Board reviewed and considered information provided by the Manager at the Meeting and throughout the year at meetings of the Board and its committees, including a number of special meetings during the pandemic to enhance Board oversight of Fund-related matters during this period. 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 telephonic contract renewal meeting at which the Independent Trustees conferred amongst themselves and Independent Trustee counsel about contract renewal matters and, in some cases, requested additional information from the Manager relating to the contract. 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 each Fund, as well as each Fund’s tracking error against a specified benchmark index as of a recent period; (iii) the costs of the services provided and profits realized by the Manager and its affiliates from the relationship with each Fund; (iv) the extent to which economies of scale are realized as each Fund grows; and (v) whether fee levels reflect these economies of scale for the benefit of Fund investors.
In approving the continuance of each Management Agreement, the Board, including a majority of the Independent Trustees, determined that the terms of each Management Agreement are fair and reasonable and that the continuance of such Management Agreement is in the best interests of the applicable Fund and its shareholders. While attention was given to all information furnished, the following discusses some primary factors relevant to the Board’s determination.
Nature, Extent and Quality of Services
The Board reviewed and considered information regarding the nature, extent and quality of investment management services provided by the Manager and its affiliates to the Funds and their shareholders. This information included, among other things, the qualifications, background and experience of the senior management and investment personnel of the Manager; as well as information on succession planning where appropriate; the structure of investment personnel compensation; oversight of third-party service providers; investment performance reports and related financial information for each Fund; reports on expenses; legal and compliance matters; risk controls; pricing and other services provided by the Manager and its affiliates; and management fees charged by the Manager and its affiliates to US funds and other accounts, including management’s explanation of differences among accounts where relevant. The Board noted management’s continuing efforts and expenditures in establishing effective business continuity plans, including the effectiveness of those plans during the pandemic, and developing strategies to address areas of heightened concern in the registered fund industry, such as cybersecurity in the current work-from-home environment and liquidity risk management.
The Board also reviewed and considered the benefits provided to Fund shareholders of investing in a fund that is part of the Franklin Templeton (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
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new funds, reassessment of the fund offerings in response to the market environment and project initiatives and capital investments relating to the services provided to the Funds by the FT organization. The Board specifically noted FT’s commitment to enhancing services and controlling costs, as reflected in its outsourcing of certain administrative functions, and growth opportunities, as evidenced by its recent acquisition of the Legg Mason companies. The Board also noted FT’s attention focused on expanding the distribution opportunities for all funds in the FT family of funds.
Following consideration of such information, the Board was satisfied with the nature, extent and quality of services provided by the Manager and its affiliates to the Funds and their shareholders.
Fund Performance
The Board reviewed and considered the performance results of each Fund for various time periods ended February 28, 2021. The Board considered the performance returns for each Fund in comparison to the performance returns of registered funds 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 funds included in a Performance Universe. The Board also considered the performance returns for the Franklin LibertyQ U.S. Mid Cap Equity ETF in comparison to the performance returns of a customized peer group (Performance Customized Peer Group) selected by the Manager. 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 the Manager about the performance of the Funds to date, particularly as compared to peers, the importance of performance to asset growth and growth of market share, and the performance of the Funds in periods of volatility. In addition, the Board acknowledged information provided regarding the Manager’s strategy behind the overall product line up, the sources of asset growth, the nature of the Manager’s research, potential use of innovative data and technology, and investments in marketing and distribution. Finally, the Board noted the Manager’s high level of client engagement and the strength of its compliance program. A summary of each Fund’s performance results is below.
Franklin LibertyQ Emerging Markets ETF, Franklin LibertyQ Global Equity ETF and Franklin LibertyQ International Equity Hedged ETF – The Performance Universe for the Franklin
LibertyQ Emerging Markets ETF included the Fund and all retail and institutional emerging markets funds and exchange-traded funds. The Performance Universe for the Franklin LibertyQ Global Equity ETF included the Fund and all retail and institutional global multi-cap core funds and exchange-traded funds. The Performance Universe for the Franklin LibertyQ International Equity Hedged ETF included the Fund and all retail and institutional international multi-cap growth funds and exchange-traded funds. The Funds commenced operations on June 1, 2016, and thus have been in operation for less than five years. The Board noted that the Funds’ annualized total returns for the one- and three-year periods were below the medians of their respective Performance Universes. The Board further noted that, in light of the Funds’ use of a “passive” or indexing investment approach, management evaluates the Funds based on their tracking error against a specified benchmark. The Board noted that for the one-year period ended February 28, 2021, each Fund’s tracking error was within the tolerance anticipated for such Fund. The Board concluded that the Funds’ performance was satisfactory.
Franklin LibertyQ Global Dividend ETF – The Performance Universe for the Fund included the Fund and all retail and institutional global equity income funds and exchange-traded funds. The Fund commenced operations on June 1, 2016, and thus has been in operation for less than five years. The Board noted that the Fund’s annualized total return for the one- and three-year periods was above 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, 2021, the Fund’s tracking error was within the tolerance anticipated for the Fund. The Board concluded that the Fund’s performance was satisfactory.
Franklin LibertyQ U.S. Equity ETF – The Performance Universe for the Fund included the Fund and all retail and institutional multi-cap core funds and exchange-traded funds. The Fund commenced operations on April 26, 2017. The Board noted that the Fund’s annualized total return for the one- and three-year periods 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, 2021, the Fund’s tracking error was within the tolerance anticipated
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for the Fund. The Board concluded that the Fund’s performance was satisfactory.
Franklin LibertyQ U.S. Mid Cap Equity ETF – The Performance Universe for the Fund included the Fund and all retail and institutional mid-cap growth funds and exchange-traded funds. The Performance Customized Peer Group for the Fund consisted of the Fund and all retail and institutional mid-cap core funds. The Fund commenced operations on April 26, 2017. The Board noted that the Fund’s annualized total return for the one- and three-year periods was below the median of its Performance Universe, but above the median of its Performance Customized Peer Group. 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, 2021, the Fund’s tracking error was within the tolerance anticipated for the Fund. The Board concluded that the Fund’s performance was satisfactory.
Franklin LibertyQ U.S. Small Cap Equity ETF – The Performance Universe for the Fund included the Fund and all retail and institutional small-cap core funds and exchange-traded funds. The Fund commenced operations on April 26, 2017. The Board noted that the Fund’s annualized total return for the one-year period was 1.35% below the median of its Performance Universe, but for the three-year period was above 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 also noted that for the one-year period ended February 28, 2021, the Fund’s tracking error exceeded the tolerance anticipated for the Fund by 11.7 basis points. The Board concluded that the Fund’s performance was acceptable given its short period of operation.
Comparative Fees and Expenses
The Board reviewed and considered information regarding each Fund’s actual total expense ratio, noting that each Fund pays a Unified Fee (as defined below). The Board considered the actual total expense ratio and, separately, the contractual management fee rate, without the effect of fee waivers, if any (Management Rate) of each Fund in comparison to the median expense ratio and median Management Rate, respectively, of other exchange-traded funds deemed comparable to and with a similar expense structure to the Fund selected by Broadridge (Expense Group). Broadridge fee and expense data is based upon information taken from each
fund’s most recent annual 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 LibertyQ Emerging Markets ETF – The Expense Group for the Fund was comprised of pure index and strategic beta exchange-traded funds, which included the Fund and seven other emerging markets funds. The Board noted that the Management Rate for the Fund was equal to the median of its Expense Group, and the actual total expense ratio for the Fund was only 0.001% above the median of its Expense Group. The Board further noted that effective December 1, 2017, the Fund implemented a unified management fee (Unified Fee). The Board also noted that pursuant to the Unified Fee arrangement the Manager reimburses the Fund for all of its acquired fund fees and expenses (if any) and pays all of the ordinary operating expenses of the Fund, except for (i) the Fund’s investment management fee, (ii) payments under the Fund’s Rule 12b-1 plan (if any), (iii) brokerage expenses, (iv) taxes, (v) interest (including borrowing costs and dividend expenses on securities sold short and overdraft charges), (vi) litigation expenses (including litigation to which the Trust or the Fund may be a party and indemnification of the Trustees and officers with respect thereto), and (vii) other non-routine or extraordinary expenses (Unified Fee Arrangement). The Board concluded that the Management Rate charged to the Fund is reasonable.
Franklin LibertyQ Global Dividend ETF and Franklin LibertyQ Global Equity ETF – The Expense Group for the Franklin LibertyQ Global Dividend ETF was comprised of pure index and strategic beta exchange-traded funds, which included the Fund and four other global equity income funds. The Expense Group for the Franklin LibertyQ Global Equity ETF was comprised of pure index and 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 each Fund was equal to the median of its Expense Group, and that the actual total expense ratio for each Fund was below the median of its respective Expense Group. The Board also
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noted the small size of each Expense Group. The Board further noted that effective December 1, 2017, each Fund implemented a Unified Fee. The Board also noted the terms of the Unified Fee Arrangement. The Board concluded that the Management Rate charged to each Fund is reasonable.
Franklin LibertyQ International Equity Hedged ETF – The Expense Group for the Fund was comprised of pure index and strategic beta exchange-traded funds, which included the Fund and four other international multi-cap growth funds. The Board noted that the Management Rate for the Fund was only one basis point above the median of its Expense Group, and the actual total expense ratio for the Fund was less than a basis point above the median of its Expense Group. The Board further noted that effective December 1, 2017, the Fund implemented a Unified Fee. The Board also noted the terms of the Unified Fee Arrangement. The Board concluded that the Management Rate charged to the Fund is reasonable.
Franklin LibertyQ U.S. Equity ETF – The Expense Group for the Fund was comprised of pure index and strategic beta exchange-traded funds, which included the Fund and 10 other multi-cap core funds. The Board noted that the Management Rate and the actual total expense ratio for the Fund were below the medians of its Expense Group. The Board also noted that effective December 1, 2017, the Fund implemented a unified management fee (Unified Fee). The Board further noted that pursuant to the Unified Fee arrangement the Manager reimburses the Fund for all of its acquired fund fees and expenses (if any) and pays all of the ordinary operating expenses of the Fund, except for (i) the Fund’s investment management fee, (ii) payments under the Fund’s Rule 12b-1 plan (if any), (iii) brokerage expenses, (iv) taxes, (v) interest (including borrowing costs and dividend expenses on securities sold short and overdraft charges), (vi) litigation expenses (including litigation to which the Trust or the Fund may be a party and indemnification of the Trustees and officers with respect thereto), and (vii) other non-routine or extraordinary expenses (Unified Fee Arrangement). The Board concluded that the Management Rate charged to the Fund is reasonable.
Franklin LibertyQ U.S. Mid Cap Equity ETF – The Expense Group for the Fund was comprised of pure index and strategic beta exchange-traded funds, which included the Fund and three other mid-cap growth funds. The Board noted that the Management Rate and actual total expense ratio for the Fund were below the medians of its Expense Group. The Board further noted the small size of the Fund’s Expense Group. The Board also noted that effective December 1,
2017, the Fund implemented a Unified Fee. The Board further noted the terms of the Unified Fee Arrangement. The Board concluded that the Management Rate charged to the Fund is reasonable.
Franklin LibertyQ U.S. Small Cap Equity ETF – The Expense Group for the Fund was comprised of pure index and strategic beta exchange-traded funds, which included the Fund and 11 other small-cap core funds. The Board noted that the Management Rate and the actual total expense ratio for the Fund were below the medians of its Expense Group. The Board also noted that effective December 1, 2017, the Fund implemented a Unified Fee. The Board further noted the terms of the Unified Fee Arrangement. The Board concluded that the Management Rate charged to the Fund is reasonable.
Profitability
The Board reviewed and considered information regarding the profits realized by the Manager and its affiliates in connection with the operation of each Fund. In this respect, the Board considered the Fund profitability analysis that addresses the overall profitability of FT’s US fund business, as well as its profits in providing investment management and other services to each of the individual funds during the 12-month period ended September 30, 2020, being the most recent fiscal year-end for FRI. The Board noted that although management continually makes refinements to its methodologies used in calculating profitability in response to organizational and product-related changes, the overall methodology has remained consistent with that used in the Funds’ profitability report presentations from prior years. The Board further noted management’s representation that the profitability analysis excluded the impact of the recent acquisition of the Legg Mason companies and that management expects to incorporate the legacy Legg Mason companies into the profitability analysis beginning next year. 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
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evaluation, the Board considered management’s outsourcing of certain operations, which effort has required considerable up-front expenditures by the Manager but, over the long run is expected to result in greater efficiencies. The Board also noted management’s expenditures in improving shareholder services provided to the Funds, as well as the need to implement systems and meet additional regulatory and compliance requirements resulting from recent US Securities and Exchange Commission and other regulatory requirements.
The Board also considered the extent to which the Manager and its affiliates might derive ancillary benefits from fund operations, including revenues generated from transfer agent services, potential benefits resulting from personnel and systems enhancements necessitated by fund growth, as well as increased leverage with service providers and counterparties. Based upon its consideration of all these factors, the Board concluded that the level of profits realized by the Manager and its affiliates from providing services to each Fund was not excessive in view of the nature, extent and quality of services provided to each Fund.
Economies of Scale
The Board reviewed and considered the extent to which the Manager may realize economies of scale, if any, as each Fund grows larger and whether each Fund’s management fee structure reflects any economies of scale for the benefit of shareholders. The Board considered that each Fund would likely experience benefits from the Unified Fee at the Fund’s projected asset levels because of the Manager’s contractual requirement to bear most of the Fund’s ordinary operating expenses. The Board noted that, under the Unified Fee, it is not anticipated that any of the Funds will generate significant, if any, profit for the Manager and/or its affiliates for some time. The Board also considered the Manager’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 the Franklin LibertyQ Emerging Markets ETF, Franklin LibertyQ Global Dividend ETF, Franklin LibertyQ Global Equity ETF and Franklin LibertyQ International Equity Hedged ETF commenced operations on June 1, 2016 and that, as of December 31, 2020, each Fund’s net assets were $25.3 million or below. The Board further noted that the Franklin LibertyQ U.S. Equity ETF, Franklin LibertyQ U.S. Mid Cap Equity ETF and Franklin LibertyQ U.S. Small Cap Equity ETF commenced operations on April 26, 2017 and that, as of December 31, 2020, the net assets of the Franklin LibertyQ U.S. Mid Cap Equity ETF and the Franklin LibertyQ U.S.
Small Cap Equity ETF were $30.4 million or below. 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
Franklin LibertyQ Emerging Markets ETF
Franklin LibertyQ Global Dividend ETF
Franklin LibertyQ Global Equity ETF
Each of the Funds has adopted and implemented a written Liquidity Risk Management Program (the “LRMP”) as required by Rule 22e-4 under the Investment Company Act of 1940 (the “Liquidity Rule”). The LRMP is designed to assess and manage each Fund’s liquidity risk, which is defined as the risk that the Fund could not meet requests to redeem shares issued by the Fund without significant dilution of remaining investors’ interests in the Fund. In accordance with the Liquidity Rule, the LRMP includes policies and procedures that provide for: (1) assessment, management, and review (no less frequently than annually) of each Fund’s liquidity risk; (2) classification of each Fund’s portfolio holdings into one of four liquidity categories (Highly Liquid, Moderately Liquid, Less Liquid, and Illiquid); (3) for Funds that do not primarily hold assets that are Highly Liquid, establishing and maintaining a minimum percentage of the Fund’s net assets in Highly Liquid investments (called a “Highly Liquid Investment Minimum” or “HLIM”); and (4) prohibiting the Fund’s acquisition of Illiquid investments that would result in the Fund holding more than 15% of its net assets in Illiquid assets. The LRMP also requires reporting to the Securities and Exchange Commission (“SEC”) (on a non-public basis) and to the Board if the Fund’s holdings of Illiquid assets exceed 15% of the Fund’s net assets. Funds with HLIMs must have procedures for addressing HLIM shortfalls, including reporting to the Board and, with respect to HLIM shortfalls lasting more than seven consecutive calendar days, reporting to the SEC (on a non-public basis).
The Funds’ Board of Trustees approved the appointment of the Director of Liquidity Risk within the Investment Risk Management Group (the “IRMG”) as the Administrator of the
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LRMP. The IRMG maintains the Investment Liquidity Committee (the “ILC”) to provide oversight and administration of policies and procedures governing liquidity risk management for FT products and portfolios. The ILC includes representatives from Franklin Templeton’s Risk, Trading, Global Compliance, Investment Compliance, Investment Operations, Valuation Committee, Product Management and Global Product Strategy.
In assessing and managing each Fund’s liquidity risk, the ILC considers, as relevant, a variety of factors, including (i) the Fund’s investment strategy and the liquidity of its portfolio investments during both normal and reasonably foreseeable stressed conditions; (ii) its short and long-term cash flow projections; (iii) its cash holdings and access to other funding sources including the Funds’ interfund lending facility and line of credit; (iv) the relationship between the Fund’s portfolio liquidity and the way in which, and the prices and spread at which, Fund shares trade, including the efficiency of the arbitrage function and the level of active participation by market participants, including authorized participants and (v) the effect of the composition of baskets on the overall liquidity of the Fund’s portfolio. Classification of the Fund’s portfolio holdings in the four liquidity categories is based on the number of days it is reasonably expected to take to convert the investment to cash (for Highly Liquid and Moderately Liquid holdings) or sell or dispose of the investment (for Less Liquid and Illiquid investments), in current market conditions without significantly changing the investment’s market value.
The Fund primarily holds liquid assets that are defined under the Liquidity Rule as “Highly Liquid Investments,” and therefore is not required to establish an HLIM. Highly Liquid Investments are defined as cash and any investment reasonably expected to be convertible to cash in current market conditions in three business days or less without the conversion to cash significantly changing the market value of the investment.
At meetings of the Funds’ Board of Trustees held in May 2021, the Program Administrator provided a written report to the Board addressing the adequacy and effectiveness of the program for the year ended December 31, 2020. The Program Administrator report concluded that (i.) the LRMP, as adopted and implemented, remains reasonably designed to assess and manage each Fund’s liquidity risk; (ii.) the LRMP, including the Highly Liquid Investment Minimum (“HLIM”) where applicable, was implemented and operated effectively to achieve the goal of assessing and managing each Fund’s liquidity risk; and (iii.) each Fund was able to meet requests
for redemption without significant dilution of remaining investors’ interests in the Fund.
Liquidity Risk Management Program – In-Kind ETFs
Franklin LibertyQ International Equity Hedged ETF
Franklin LibertyQ U.S. Equity ETF
Franklin LibertyQ U.S. Mid Cap Equity ETF
Franklin LibertyQ U.S. Small Cap Equity ETF
Each of the Funds has adopted and implemented a written Liquidity Risk Management Program (the “LRMP”) as required by Rule 22e-4 under the Investment Company Act of 1940 (the “Liquidity Rule”). The LRMP is designed to assess and manage each Fund’s liquidity risk, which is defined as the risk that the Fund could not meet requests to redeem shares issued by the Fund without significant dilution of remaining investors’ interests in the Fund. Each of the Funds is an exchange-traded fund (“ETF”) that is considered an “In-Kind ETF” under the Liquidity Rule, which means that the Fund satisfies requests for redemption through in-kind transfers of portfolio securities, positions, and other assets, except for a de minimis amount of cash, and publishes its portfolio holdings daily. In accordance with the Liquidity Rule, the LRMP includes policies and procedures that provide for: (1) assessment, management, and review (no less frequently than annually) of each Fund’s liquidity risk; (2) prohibiting the Fund’s acquisition of Illiquid investments that would result in the Fund holding more than 15% of its net assets in Illiquid assets. The LRMP also requires reporting to the SEC (on a non-public basis) and to the Board if the Fund’s holdings of Illiquid assets exceed 15% of the Fund’s net assets. As an In-Kind ETF, the Fund is not required to include in the LRMP policies and procedures relating to classification of portfolio holdings into four liquidity categories or establishing a highly liquid investment minimum (“HLIM”).
The Funds’ Board of Trustees approved the appointment of the Director of Liquidity Risk within the Investment Risk Management Group (the “IRMG”) as the Administrator of the LRMP. The IRMG maintains the Investment Liquidity Committee (the “ILC”) to provide oversight and administration of policies and procedures governing liquidity risk management for FT products and portfolios. The ILC includes representatives from Franklin Templeton’s Risk, Trading, Global Compliance, Investment Compliance, Investment Operations, Valuation Committee, Product Management and Global Product Strategy.
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In assessing and managing each Fund’s liquidity risk, the ILC considers, as relevant, a variety of factors, including the Fund’s investment strategy and the liquidity of its portfolio investments during both normal and reasonably foreseeable stressed conditions; its short and long-term cash flow projections; and its cash holdings and access to other funding sources including the Funds’ interfund lending facility and line of credit. Because the Funds are ETFs, the ILC also considers, as relevant, (1) the relationship between the Fund’s portfolio liquidity and the way in which, and the prices and spread at which, Fund shares trade, including the efficiency of the arbitrage function and the level of active participation by market participants, including authorized participants and (2) the effect of the composition of baskets on the overall liquidity of the Fund’s portfolio.
At meetings of the Funds’ Board of Trustees held in May 2021, the Program Administrator provided a written report to the Board addressing the adequacy and effectiveness of the program for the year ended December 31, 2020. The Program Administrator report concluded that (i.) the LRMP, as adopted and implemented, remains reasonably designed to assess and manage each Fund’s liquidity risk; (ii.) the LRMP, including the Highly Liquid Investment Minimum (“HLIM”) where applicable, was implemented and operated effectively to achieve the goal of assessing and managing each Fund’s liquidity risk; and (iii.) each Fund was able to meet requests for redemption without significant dilution of remaining investors’ interests in the Fund.
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 Statement of Investments
The Trust files a complete statement 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 the Fund’s website at franklintempleton.com.
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